Tal Woolley: Hi, good morning. Just wanted to start on the fundraising side, you mentioned you’re optimistic that you should be able to re-up with your partners for another joint venture on the single-family rental side. Just wondering, longer term given that there is been such a sort of few change in credit markets over the last year. How you’re seeing — is there still much dry powder as you hoped in the private markets longer term?
Gary Berman: There is — no, there some puts and takes to that. The biggest issue in the private capital markets is, if you have an allocation of real estate alternatives, you’re now dealing with. Where do you allocate your comp capital, given extreme uncertainty and dislocation in office, obviously in retail as well. And so, what that’s meant overtime and we think that’s going to continue to happen and that’s certainly what we’re hearing from our JV partners, it’s more and more capital has to find its way into beds and sheds. And a lot of investors are underweighted or adversely no allocation of single-family rental. So that’s a tremendous long-term opportunity for our industry and certainly Tricon to be much, much bigger and for us to raise a lot more third-party capital.
In the short term, for some pension funds where there is a denominator effect issue. So as the value of equities comes down, they have to adjust real estate allocations. So for some — there is some short-term pressure but for others they’re just underweighted to one real estate and certainly underrated to single-family rental or resi. So we think there’ll be a lot of opportunists for raise — more money at the end of this year and obviously over time.
Tal Woolley: Okay, that’s helpful. And then I guess just lastly market selection in the single-family rental business. Are there markets now where you’re kind of like at the size, you want to be? And you’re not that interested in growing unit count and are there sort of markets where you’re really looking to add homes?
Gary Berman: Jon, I’m going to turn that over to you.
Jonathan Ellenzweig: Sure. So, for the first part, I would say, from a scale perspective, we’re happy to grow in all of our markets. Even if you look at our largest market, Atlanta, we’re just a fraction of the size of where we think the opportunity is. So there is no market right now or even sub-market within those larger markets where we’ve reached any kind of concentration limit. Within the markets where we do, I’m sure there are certainly places where we’re seeing stronger performance and others where we’re seeing a bit of softening. We continue to view Atlanta, Charlotte, Dallas, Tampa and Nashville, are extremely strong. Those are places where we continue to grow. I would say, if you look at rent growth and demand we are seeing some softening in particular in Phoenix and Vegas.
And those are really markets where there was such a strong run-up in rent growth at the beginning of the pandemic. And home price appreciation, we’re really just giving a little bit back in those places. So we’re seeing a little bit lower cap rates and slower rent growth there. So, we’re biasing our acquisitions little bit elsewhere right now.
Tal Woolley: Okay. I’m glad you brought up Atlanta, I’m sure you probably saw the piece in the general constitution a few weeks ago. Just talking about what they thought the impact of single-family rental in the city. This is going to be an ongoing question I’m sure for the next few years. Are you seeing any sort of shifting signs on the politics around single-family rental and some of your major markets?
