Robert Stevenson: Okay. And then how should we be thinking about those five projects today? Are you viewing any of these as likely purchases for the REIT? And do you get a prepayment penalty if they refi early? Because it seems like that the completion date for the construction is much closer than the expiration of the debt. And I would assume that they’d want to refi at more modest rates if rates come down than your 13% to 15%.
Louis S. Haddad: Well, to start with your first question, we’d love to own all of them. It’s, but our eyes are a bit bigger than our stomach. So, the expectation is that, as Shawn mentioned, at least one of these will end up on our balance sheet. They do carry a minimum interest line so that we have protection against an early refinance. So, that’s going to be a great avenue for us to continue to add to the portfolio without having the drag of the development process.
Robert Stevenson: Okay. And then speaking of the development process, do you guys anticipate starting any new on balance sheet developments in 2024 at this point?
Louis S. Haddad: We anticipate starting a re-development of the Bed Bath site that we’ve been talking about for a while. Right now, developments don’t pencil, don’t pencil with our cost of capital. That’s why we’re going to be reliant more on the preferred equity and the mezz platform in order to grow the portfolio. But right now, construction costs have not come back in-line. Interest rates remain elevated and you don’t have a ton of rent growth. Ironically, where we would have the most room is in office space, but obviously it’s just because we’re completely full in the locations that we have. And under normal circumstances, you’d be launching new office with anchor tenants. Obviously, that’s not going to be the case right now and as we wait to see how the office market on a macro level shakes out.
Robert Stevenson: Okay. And one last one for me for, Matt. How should I be thinking about the $1.7 million of JV property income drag from Allied | Harbor Point this year? Is that going to be significantly larger than that in the first half of the year and as that comes online goes to zero and then closer to positive territory? Is that ratably throughout most of the year? How should that be you thinking about timing as it impacts earnings?
Matthew T. Barnes-Smith: Yes. Good morning, Rob. All of that negative drag or income depending on what JV you’re looking at, whether it’s T. Rowe or parcel for the Allied, comes in, in the last quarter of 2024. So, that’s a very, very small portion. Obviously, T. Rowe Price will occupy and be nearly 100% for renting there. So, we’ll get income or our share of the income day one. And then obviously, as we go lease up through stabilization on the Allied, there’ll be a negative drag that is offset. So, as Shawn mentioned in the guidance presentation, we expect that to be positive in that last quarter, to the extent of roughly around a $1 million worth of FFO.
Robert Stevenson: Okay. So, all in the fourth quarter, nothing earlier in the year. All right. Thanks, guys. Appreciate the time this morning.
Louis S. Haddad: Thank you, Rob.
Operator: Thank you. [Operator Instructions] Your next question comes from Camille Bonnel from BMO. Please go ahead.
Andrew Berger: Hi, this is Andrew Berger on behalf of Camille Bonnel from Bank of America. Just wanted to touch real quick on guidance. If you could maybe give some more color on, the part about funding a new real estate project in the second half of 2024, I guess, what are you seeing today in the market? Where would your preference be?
Shawn J. Tibbetts: Sure. Thank you for the question. So, this our preference, let’s start with the preference. Our preference would be as we have been in the multifamily space in a growth market in the Carolinas or in Georgia. So, we have a couple of prospects, we’re in discussions with our partner, and our intent would be to ladder these in. As you could imagine, one, the oldest deal is closer to rolling off. We expect the sale of that deal. And therefore a payback of our principal and obviously the interest, and our intent would be to redeploy that capital in order to keep consistent fee coming in the door and also keep our program at the size that we’ve committed to roughly $80 million outstanding. So again, probably similar to something you would see on the other five deals.
If you could imagine just copying and pasting one, as one removes off, we would add another back. So, that’s our intent. We’ve seen a lot of high-quality deals out there and a lot of interest in our program given the constraints in the kind of senior markets.
Andrew Berger: Got you. That’s very helpful. Thank you. And then, I guess turning to the piece on the ATM program, just wondering any color there maybe what we should expect from a timing standpoint, if you’re able to talk to that?
Matthew T. Barnes-Smith: Yes. Good morning, Andrew. We anticipate, as soon as we come out of blackout period here and we file the 10-K that we will go into the ATM. Obviously, the equity price is not exactly where we want it to be, so we will be somewhat conservative with that. But in order to grow, we need to add some equity to the model, and we anticipate doing that throughout the whole of this year.
Andrew Berger: Got it. Thank you. And, if I could just squeeze in one more, just turning to the debt side. So, I know you discussed replacing the derivatives as they expire. It looks like there’s a pretty big one, I think, $200 million coming up in March. Just wondering, how is the cost of replacing these slops and caps maybe versus, call it, six months ago or a year ago?
