Joe Fisher: Yes. Right now, we’re thinking about it in terms of probably a little bit more like the MetLife joint venture. They have been a phenomenal partner to us for the last 12 years plus. And so finding a partner that thinks like us, views real estate and operations similar to us and as capital grow with us along a number of different avenues. So as we look at exposing a portfolio of assets to the market to potentially find a joint venture partner with, of course, we want to find a partner that will meet the market in terms of pricing and terms, but also then has the capital and the wherewithal to grow with us, both on operations, potential developments over time as well as DCP investments over time. And so we’d like to find that partner.
If it takes several partnerships to accomplish that, that would be okay. But it’s a way for us to continue to expand the enterprise, utilize our operational and transaction skill sets to grow accretively and continue to gain scale overall.
Austin Wurschmidt: Appreciate. Thank you.
Operator: Thank you. Our next question is from Michael Goldsmith with UBS. Please proceed with your question.
Michael Goldsmith: Good morning. Good afternoon. Thanks all for taking my question. The breakdown of the range of same-store revenue guidance was helpful. Can you break down the expense growth guidance of 4% to 5.5%? Where are you seeing pressure? And then how much more savings can you see from your centralization and property headcount reduction efforts?
Mike Lacy: Michael, I’ll start with that one, Joe, and can help clean it up if it needs to. But basically, we’re talking about 475 at the midpoint. And I think it’s important to break it down into those components of controllables and non-controllables. So first and foremost, controllable expenses make up just over 50% of the stack at around $250 million. We do expect between 4.5% to 5.5% growth, and we are seeing pressure points on utilities. We are seeing anywhere from about 6% to 6.5% growth in €˜23, and that’s coming off of nearly 8% growth in €˜22. R&M should continue to see a little bit of pressure around 6% to 7% growth for us this year, and that compares to 11% in 2022. Personnel continue to see some efficiencies there.
So we’re seeing around 2% to 3% growth, and we were flat in €˜22. As it relates to non-controllables, this is just under 50% of the stack. We expect around 4% to 5% growth, taxes being in that plus or minus 5% range as well as insurance in that 4% to 5% range. So a little bit of pressure there, but it’s what we are doing, and you asked a very good question, how much more is left. We think there is quite a bit. On the personnel side, we’ve been running with about 30 properties that are unmanned. We expect that to go around 35 to 40 this year. So we are finding efficiencies there. We’re putting in place some technology as it relates to maintenance, and we think we can compress our days vacant on the term side. So we think R&M will be benefiting from that.
And then on utilities, we are working on different ROIs that should make us a little bit more efficient with our vacant electric as well as just common area lighting. So we are doing plenty of things. We’re trying to compress these numbers, and we feel pretty good at our 4.75% range.
