We also, as we look at the plan, we expect to sell, as I mentioned, between $100 million and $125 million of properties. In addition to partially liquidating exiting a couple of joint ventures, operating joint ventures. So some of those sales may generate losses, but we also anticipate some gains that could certainly impact our taxable income. So we felt with the baseline cash flow in place, the variable of potential sale gains we felt that it might be premature to take a look at cutting the dividend. And also, we — as Tom has outlined and you’ve seen from our announcements, our liquidity is in very good shape. So looking ahead, and certainly subject to change based upon economic circumstances. Right now, we’re very confident that our cash flow will continue to grow from this baseline forecast.
So quantitatively, we assess that the dividend coverage wallet will be tight, should be adequately covered. And qualitatively, honestly, it’s been a very challenging year for office company shareholders. So the Board after getting very comfortable with the baseline cash flow numbers wants to make sure that we really keep our folks on returning as much value as we can pragmatically and conservatively to our shareholder base. So the decision was made to keep the dividend in place. Certainly, the Board as they always do, will monitor that during the course of the year, make any adjustments as appropriate. But that was kind of the thought process. So hopefully, that answers your question.
Tayo Okusanya : That’s very helpful. And then just a follow-up on the JV debt side. Could you just give us a general sense at this point of where you think you could raise debt for a lot of the upcoming debt maturities and if you would consider kind of putting any kind of swaps on some of the outstanding variable rate debt?
Tom Wirth: Sure, Tayo, this is Tom. I’ll jump in on that. I just wanted to follow up on Jerry’s comment on the dividend. As we looked at our dividend this year, our dividend because of our gains on the sales that we did have, we ended up having full utilization of the dividend between operating income as well as the gains. Our goal has always been to kind of keep it monitored and stable rather than giving out sort of onetime dividend or special dividends to the extent we have gained. So I thought we monitored that this year and basically came in right on top of our actual dividend. And so we’ll monitor that again as we look at the sales, we have quite a bit in the market. That may generate gains that we know will happen and would certainly dictate whether we would keep the dividend in place for those reasons as well.
As we look at the debt on the JVs, we are looking at probably executing on maybe a couple more swaps for the debt that’s in place. So there may be increases to that from where they are right now. And then on the rates, we are looking a little further out. The rate seems to dip as we get into ’24. We are talking to a couple of banks about extensions to those loans. So to the extent we can get those extensions, most of the properties are performing well. The occupancy in general is about 80% on the whole portfolio but they’re still performing pretty well, leaving good leasing activity. So we would hope that if we can get some extensions on the debt, we may then talk to our partners about fixing the debt looking out on the curve at something that might be lower than where that curve is today.
