We’ve certainly seen that in the past. And one of the things I think is important to point out, I mean, our assumptions is built around €“ for 2023, our guidance is built around the assumption of a $400 million acquisition volume. Now we are assuming that their initial yield on this $400 million of acquisition is only 3%, reflecting that non-stabilized status of these investments, so while that is weighing on FFO performance for the year, we think that it has great value proposition, value opportunity going forward long term. And so we’re €“ given the supply that’s coming into the market, given the difficult financing environment we find ourselves in, we think that, that area of opportunity is going to emerge over the course of this year, and that’s what we’ve kind of dialed into our guidance for the year.
Nick Joseph: Thanks. That’s very helpful. And then, I guess, we’ve spent a lot of time on kind of macro backdrop and the blended rent growth assumption and everything that goes into revenue. But if you think about from a market perspective in ’23, given your kind of new guidance, what does that imply for which markets are kind of the top performers and which you’re concerned about?
Tim Argo: Yes, Nick, this is Tim. I mean with the earned in, we talked about of our larger markets, I expect just rent growth or revenue growth should be pretty solid for several of our markets due to that earn-in. But if you think about some of the stronger ones that we think will continue into 2023, I mean, Orlando, continues to be a really strong market for us. It’s been strong now for a couple of years. In terms of demand, it’s our #1 job growth market that we’re expecting for 2023. It is getting a little bit of supply, but it’s not necessarily situated where our portfolio is in Orlando of some markets in our portfolio that are getting the most supply only one of those is in Orlando. So the demand, combined with the supply there expects Orlando to be strong.
It’s continued to have really strong blended pricing both in Q4 and January. And then Dallas is another one I’d point out that we think can show some strength in 2023. It’s one of our lower supply markets we would expect. There is a couple submarkets that we’re in, particularly in North Dallas, Frisco, Plano Allen, that will get some supply. But broadly, Dallas hasn’t seen as much supply pressure, and we’ve seen the pricing both in Q4 and January been a little bit higher than portfolio average. So those are a couple that we’ve kind of got our eye on from a strength standpoint. Austin is probably one that on the downside that we’re keeping our eye on more than anything. It’s kind of got the extremes on supply and demand. It’s one of the better indicators in terms of demand with job growth, migration, population, all that, but it also has absolute high supply coming into the market of any of our portfolios or any of the markets in our portfolio out of the various submarkets that we’re seeing supply, 4 out of the top 20 are in Austin.
So that’s one we do expect to moderate, though it does have pretty good earned in rate growth. So, those area couple that we’re kind of keeping our eye on.
Nick Joseph: Thanks. That’s helpful. So it sounds like maybe the large still outperformed the secondary markets in ’23 or maybe that spread narrows a bit?
Tim Argo: Yes, it probably narrows a bit just with moderating rent growth. We typically see the secondary markets holdup a little more if we get into softer economic environment. But I think broadly in terms of revenue growth, again, with the earn-in, I would expect that the large markets hold up pretty well.
Nick Joseph: Thank you very much.
