Kenny Gunderman: Yes. I’m not sure where I got cut out, but really, I think I was agreeing with your question that we use our cost of capital and other costs as the baseline, and then our returns are a markup from that baseline cost to capital. And then from there, there’s obviously a lot of different levers to toggle using NRCs, MRCs, et cetera. So did that answer the part?
Bora Lee: Yes. I think there was an actual return hurdle that you’re referring to [indiscernible]?
Kenny Gunderman: Yes. Sure. We look at a variety of return metrics, we look at cash flow yields, we look at paybacks, we look at IRRs. And I think on cash flow yields, we’ve said consistently over time that we look to, look for 5% to 10%, yields for our anchor customers with a clear line of sight to 10% plus yields through lease-up, and we look for double-digit IRRs. And I think those targeted IRRs are a little different depending on which type of customer and customer segment, but they’re double-digit IRRs.
Bora Lee: Right. Thanks very much.
Operator: Thank you. Our next question or comment comes from the line of Alana Papa from Morgan Stanley. Ms. Papa, your line is now open.
Alana Papa: Hi. I’m calling for Simon Flannery. Just a question on how you’re thinking about CapEx for 2024. Any comments there? And maybe the pacing of the GCI program given Windstream finished, a bit sooner than expected this year? Thanks.
Paul Bullington: Yes. Hey, Alana, this is Paul. I’ll take that. With regard to CapEx for 2024, I mean, we’re not – we haven’t put out guidance and don’t usually put out guidance, until the first part of the year. But generally what we’ve said, I think continues to be true. So at our Uniti Fiber business, we expect capital – CapEx to remain about the same level that it’s been this year. And so that CapEx I think would be flat going into 2024 roughly as an expectation. And then with regard to GCI, the GCI program is specifically calibrated with maximums each year and some ability to roll over unused portions from previous years. So if we look out into 2024, the maximum amount of GCI for 2023 was 250 that we talked about in our comments.
But then going, looking at 2024 that maximum decreases to $225 million with rollover up to $250 million. But there’ll only be about $5 million of rollover that could apply to next year. So at max next year would be $225 million to $230 million. And in terms of the pacing for that for next year, we expect it to be kind of similar I would think to this year. But Windstream has to make those investments and complete those construction projects and submit them for reimbursement. So it really depends on the pace of their construction and the pace of resubmitting those expenses for reimbursement.
Alana Papa: Great. Thank you.
Operator: Thank you. I’m showing no additional questions in the queue at this time. I would like to turn the conference back over to Mr. Gunderman for any closing remarks.
Kenny Gunderman: Thank you. We appreciate your interest in Uniti Group and look forward to updating you further on future calls. Thank you for joining us today.
Operator: Ladies and gentlemen, thank you for participating in today’s conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.
