Michael Griffin: Got you. And then, Steve, you also mentioned about strategic sales. I was just wondering if we should read into that. Obviously, you don’t need any equity funding to fund the development pipeline this year, but could we read into that as the potential exit of some of the regional office assets, just given maybe a softer bid or less demand for those relative to your core portfolio?
Steve Budorick: Yes. The message was intended to advise shareholders that we will consider recycling capital in the future. We just simply don’t need to, to fund our development and the obvious candidates when the opportunities are accretive at the regional office assets in our portfolio.
Michael Griffin: Alright. That’s it from me. Thanks for the time.
Steve Budorick: Thanks, Griff.
Operator: Thank you. One moment for our next question please. From Camille Bonnel with Bank of America. Please proceed.
Camille Bonnel: Hi, good morning. Steve, you mentioned that the 7.5% year-over-year increase in the defense budget should fuel demand for space in the portfolio through 2024. Is there a way you can quantify or help us better understand the relationship between the increase in defense spending and what you’ve seen on how it translates to new leasing?
Steve Budorick: Well, I don’t have algebra to help you estimate the volumes, but we have deep experience over a long period of time. The larger increases manifest themselves in higher levels of leasing, and the delay between funding and demand being recognized in our portfolio is 12 months to 15 months. So, the comment was intended to suggest that our demand that we’re going to experience in 2023 will be funded €“ will be fueled by the increases in the 2022 defense budget, and the recent 2023 passage will manifest itself in demand in 2024, intending to suggest we anticipate a strong demand environment for the next two years.
Camille Bonnel: And just based on that demand outlook and opportunity here, are you seeing any change in the competitive landscape?
Steve Budorick: No, we really haven’t seen any change. We have advantaged land positions in most of our regions, and we tend to not have much demand from new development, or competition is inferior property or locations. And that advantaged position continues today.
Camille Bonnel: Thank you. And just a final question. You mentioned earnings growing at a compounded rate of 4% or higher throughout 2026. Do you see limited risk of this changing for the foreseeable future or what could change this outlook, either higher or lower?
Steve Budorick: Well, the exact words I used was roughly 4%. And I can tell you that 12 months ago, 4% or higher was a very comfortable number for us to put in because we had significant cushion in that. Currently, our model suggests 4% or better, but as we start to apply scenario stress and even higher SOFR rates or a more material decline in demand in regional office, that could move a bit. But the key point is the developments, we’ve already achieved, and the future NOI that we can deliver will generate approximately 4% compound growth in a variety of stress scenarios.
Camille Bonnel: Thank you.
Steve Budorick: Thank you.
Operator: Thanks. One moment for our next question please. And it comes from the line of Anthony Paolone with JPMorgan. Please proceed.
Anthony Paolone: Thank you. I guess first question is on the data center shells that you just announced the new starts. Can you give us the yields on those? Because I think you said last quarter, you’d have a better indication as to how they’ve changed.
