Mark Harding: You’ve got a particularly good point there. When you take a look at the — one of the things that we sought to do to accelerate that recurring revenue is through the single-family rental side, and that continues to grow and become meaningful. And really, when we’re adding new customers, new connections, each month on both the water side as well as the single-family rentals, that gets us a whole lot closer to that determination. And it is — I will tell you, it is a component of the Board discussion. Each Board meeting is the appropriate benchmark and it’s two-fold. It is that recurring revenue stream, but then it’s also capital needs and how we’re starting each individual project to accelerate the development of both the land — excuse me, land and the water utility side as well as the single-family rentals.
I think maybe some of the pause that we’re looking at on that is that we’ve got a pretty aggressive start for some of the single-family rentals. So, we’ve moved from where we originally anticipated 40 single-family rentals in Phase 2 to 90. So, we more than doubled that capacity. And it’s very — it’s a very — not only very attractive for us on the income side, but on how we’re able to leverage that, and we’re able to put in place mortgage-type debt instruments, they’re not actual mortgages, because the company can’t hold an actual mortgage. But, a mortgage type instrument in there to give us the capacity to keep that off balance sheet, but it’s in the delivery of those that become a little bit challenging for us. And quarter-over-quarter, year-over-year, that gets — once we complete the units and we like to complete those by phase and then roll the financing instrument by each of those units, I think you’ll probably see that be a little bit different in our second phase as we continue to mature that relationship with our bank, where they’re able to finance this at each individual closing and we get an instrument, a loan instrument that delivers each quarter.
So, instead of us financing set the construction of 17 homes and then refinancing that all at once, what we’re looking to do is say each time we deliver you a CO, we’ll drop down what would be that 17 home financing. So, we want to see that work for us and make sure that, that doesn’t constrain our capital side and then deliver those next 17 units and probably take a look at it after that.
Elliot Knight: And what would the timing of that be?
Mark Harding: Probably, I would say, we’ll bring this to a serious consideration of the Board at the January Board meeting next year.
Elliot Knight: Okay. Thank you. That’s very helpful.
Mark Harding: I know that, that will put you on a little sour note, but give you the expectation that it is part of our agenda, but I think it’s also a component of making sure that we build each of these segments up appropriately with our capital commitments on the balance sheet. So, we’re going to continue to protect that.
Elliot Knight: I think that’s a very fair answer and your candor as always is appreciated. I’d like to make one other comment. I really thought the slide that you put on, I don’t know what number it is, about the stock repurchases, I have never seen a company put up a slide such as that. I think it’s wonderful and thank you for showing it. I hope you’ll continue to show it. Thank you. That’s all I have, Mark.
Mark Harding: You bet. I appreciate that. We’re really trying to balance competing with you all to buy those shares at those attractive prices. We understand that. But [buying token] (ph), I think that if the stock doesn’t trade appropriately, we continue to believe that that’s a worthwhile return for our shareholders.
Elliot Knight: Well, that gives us a wonderful sense of what you’re thinking is an undervalued and attractive price at which to buy the stock. So, it’s very helpful, and thank you.
Mark Harding: You bet.
Operator: We have reached the end of the question-and-answer session. And I will now turn the call over to management for closing remarks.
Mark Harding: Thank you. Again, if you’re listening to this on a rebroadcast or if you had a technical challenge or it was just too early and too cold to get on this call live and something comes up as you work through the deck or you work through the comments, don’t hesitate to give us a call. Happy to drill down on any of the specifics. And I want to continue to thank you all for your continued support, and we will continue to add value and do the best we can with these assets of yours. So with that, I’ll bid you all a good day.
Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.
