So we’re hopeful the building will be CO-ed and we may get a lease or two done, and that’ll give us enough room to then get a financing done. Again, the project looks great, and the lenders that we showed it to previously were very interested. They just think that the prelease will help them get it financed internally.
Omotayo Okusanya: That’s helpful. And then could you just talk a little bit about how you are thinking about the dividend at this point, just kind of given some of the capital needs versus sources of capital as well.
Tom Wirth: Yes. Look, certainly I think the board reviews that on a regular basis along with management, and we did reduce it down to $0.60 per share so that $80 million a year in total payments. I think as we looked at the decision back then, and certainly as we view it today, one of the key variables was ensuring that we had clear runway on the loan maturity front. And I think the bond transaction did a couple of things when it reinforced the fact that we can run the company with ample liquidity for the foreseeable future, keeping that line of credit close to zero. Second, it really did reinforce to all of our fixed income stakeholders on the unsecured side that Brandywine is committed to the unsecured marketplace. And our hope is as the conditions improve, as the debt mark-to-market becomes positive versus negative, we’ll be able to restore our investment grade rating and that we wind up in a very good position, both from a liquidity and a balance sheet improving standpoint.
So I think one of the key issues we take a look at is with that liquidity, second was portfolio stability, what is going to be the ongoing consumption of capital. And as we’ve talked with other questions on the call, we have very little rollover going forward and we think a very stable platform. And then when we look at the development pipeline, there’s really very little left to fund. And even to the question on the 3151 construction loan, I mean, the vast majority of money is already invested to kind of deliver that build into core and shell condition. The additional capital required is, as we say in the business, good news capital tied to leasing activity. So I think those three elements are top of mind for the board as they think about how to balance delivering a good quarterly return to our shareholders despite the travails of the capital markets and its impact on our stock price, as well as what the visibility is on liquidity and alternative investment opportunities within the company.
Omotayo Okusanya: Great. Thank you.
Tom Wirth: Thank you.
Jerry Sweeney: Thanks, Omotayo.
Operator: One moment for our next question. Our next question comes from you Upal Rana with KeyBanc. Your line is open.
Upal Rana: All right. Thanks for taking the question. Could you give us some color on how the lease up at 3025 JFK Resi is going and what you anticipate for One Uptown when it comes online in 3Q?
Jerry Sweeney: Yes, great question. I think we’re pretty pleased with the acceleration of activity at the 3025 residential project. I mean, we’re kind of doing 20 units a month, which is very much aligned with our plan, effective rents are holding and the demographic of the tenant mix we’re seeing that building is pretty much aligned with we were hoping for. So we think that that demographic will continue to view the project very favorably. And we do anticipate that by the end of this year we’ll kind of be in the 80% to 85% lease range. And that’s going to our financial plan. Down at Uptown ATX, those units won’t really start coming online until later in the second quarter, early third quarter. The marketing plan and marketing launch has taken place.
We’re already starting to do hard hat tours, we have a couple of leases out for signature already. But we do anticipate, given the delivery, excuse me, delivery timeline of that project, that will be kind of in that 50% occupied range by the end of the year. Both the residential market in Philadelphia as well as in Austin is very competitive. So we’re keeping a close eye on concession packages. And I mentioned up at here in Avira, we seem to be doing very well versus our budget. We’ll keep a close eye on that down in Austin. We do think we have the quality advantage based on some of our direct competition both in Philadelphia and in Austin. But we’ll have to see how the actual traction and the lease executions go on both properties going forward.
Upal Rana: Great, that was helpful. And then going back to your renewals and your retention rate, you felt comfortable increasing that expectation. And what’s really driving the comfort that you have? And do you anticipate the higher levels of renewals to get you to positive net absorption in the near-term? I know you mentioned you expect occupancy to bottom at some point this year, but maybe a little timing or when do you expect on timing?
Jerry Sweeney: Yes, I think our ability to move the retention range was really based on the fact that we’ve executed the renewals necessary to make that change. So very little speculative renewal left to kind of get to that new target. It was primarily driven by a couple of leases where early indications were that the tenant may not renew. And that’s kind of how our original business plan was compiled. And then when we got clarity on the fact that they did in fact renew, we obviously were able to make the adjustment. So even moving that range just further solidifies our comfort that we deliver year end occupancy within the original business plan range.
Upal Rana: Great. Thank you. That’s all for me.
Jerry Sweeney: Thank you.
Operator: And I’m not showing any further questions at this time. I’d like to turn the call back over to Jerry for any closing remarks.
Jerry Sweeney: Great. Kevin, thank you. Look, thank you all again for participating in our first quarter ’24 earnings call. We look forward to updating you on our business plan activities on our second quarter earnings call in the summer. So have a great day, and thank you again for participating.
Operator: Ladies and gentlemen, that concludes today’s presentation. You may now disconnect. And have a wonderful day.
