Lance Parker: So that mortgage is currently fixed rate. What we do have though is a — that’s the other forward starting interest rate swap which is for a notional amount of $70 million. And so where we stand right now is we are considering a number of options. We’ve been in discussions with banks. And so at the end of the day, what we could pursue is either a refinance with the existing lender. So effectively haven’t a form of secured debt, we could also pursue unsecured debt. And so at this point, we’re in discussions and we’ll provide more additional information as we proceed down this path and are able to do so.
Mitch Germain: Got you. Last question. The move out that was referenced in late January. What type of space is that or what type of tenant?
Kit Millan: So I would — it’s more a mid-box top type space. The previous tenant was more of a community type use. And so our goal is to reposition that with more of a traditional midbox space.
Mitch Germain: Got you. I was just curious if it was a restaurant or something like that, that’s why. I appreciate you. Thank you.
Operator: And your last question comes from the line of Brendan McCarthy from Sidoti. Please go ahead.
Brendan McCarthy: Congrats on the results. And thanks for taking my question. I just wanted to start off with the 300 just want to start off with the 300-acre sale to the owner of Nan. I guess, are you able to disclose the financial details of that sale and, I guess, the cost basis?
Lance Parker: We have not disclosed the specifics of the deal for competitive purposes. But obviously, that along with a couple of other land sales, you can see the results from an FFO standpoint. And my comments earlier in reference to a buyer that we had a strong pre-existing relationship. They were the buyer of Grace Pacific late last year. And so we were able to really parlay that relationship into another opportunity for us.
Brendan McCarthy: Got it. And probably fair to assume that relationship was what caused that sale to, I guess, maybe get pulled forward a little bit from a timing perspective?
Lance Parker: It was. And quite frankly, another driver is to why it happens so quickly.
Brendan McCarthy: Yes. Okay. And then looking at the balance sheet, nice move down in net leverage, 3.8 times, I believe. Can you just talk about what leverage number you’re comfortable with? I think I remember seeing a 5 to 6 times range might be a target. But maybe just kind of your outlook there for 2024?
Clayton Chun: Brendan, it’s Clayton. So you have to write that in terms of our long-term target, we are shooting for 5 to 6 times net debt-to-EBITDA. And so we’re in really good shape from a balance sheet perspective and what this does is provide us the dry powder for growth opportunities.
Brendan McCarthy: Got it. That makes sense. That’s all for me. Thank you.
Operator: That concludes our question-and-answer session for today. I will now hand the call back to the management for closing remarks.
Lance Parker: Thank you, operator, and thank you all for joining us today. If you have any follow-up questions, please feel free to call us at (808) 525-8475 or e-mail us at investorrelations@abhi.com. Aloha, and have a great day.
Operator: Thank you. This concludes today’s call. Thank you all for participating. You may all disconnect.
