Nick Mah: Yes, I mean, look so I think overall, I think it would be helpful to just provide a little bit of backdrop on the 13. I know you mentioned the three. All, the entire portfolio is a portfolio that we are looking to monetize over time, that we just think there’s different time lines related to the three versus the remainder. And this is a portfolio where these were mostly that added value programs that we bought about three years ago. And unfortunately, the timing of the lease up activity on those added value, which I’ve mentioned earlier, there’s this J-CURVE phenomenon where you’re fixing units up, putting back a market, getting the units to be released at higher rental rates, is the goal we faced in the markets, which is part of the impairment and unrealized losses we took in the quarter.
We faced a market where you have also new supply in the market that’s also going through absorption, and that depressed expected rents in the near term. We held that basically part of the impairment on unrealized losses was reflecting the weakness in rents. We see in these markets the absorption rate we expect to be to alleviate the rental pressure over the course of the year. So we expect to see, hopefully gains related to that in the rental rates. But overall, the timing of it is very difficult. It’s been a really challenging experience here with respect to the market. And our timing, which obviously was unknown back three years ago, that we’d be facing is higher cap rate environment at this type of level, and then the step back of demand in the multifamily market.
So we’re going through that. We think we are appropriately marked on our assets using fair value analysis. And we’re expecting our book to be stable, more stable over time than we’ve had. And it is less than 5% of our capital, less than 1% of our portfolio. So that the impact to our earnings will be, is just less meaningful than it was nine and two quarters ago. So our asset management team is working hard to get these assets disposed. But we have to take in light the fact that there’s these kind of short term pressures that have impacted valuations, and we’re looking for some release related to that.
Eric Hagen: That’s helpful. Thanks for flushing that out. Appreciate you guys.
Operator: This concludes the question-and-answer session. I would now like to turn it back to Jason Serrano for closing remarks.
Jason Serrano: Yes, thank you for joining our first quarter earnings call. Our second quarter call will be done, will be conducted in August, and we look forward to talking to you. Thank you.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
