Matthew Erdner: So given the short-term loan — that looks like it’s going to be up kind of second half of the year. Are you expecting acquisitions to be in the second half of the year with dispositions kind of front loaded? And then also — what’s going to drive you to the higher range of that guidance towards the $150 million mark rather than the $100 million?
John Albright: Yes. So we basically have some acquisition activity going on right now. We hope to be kind of front ended, as you mentioned there. And so the timing could be on top of when the seller financing that we did for Sable gets monetized. And so that timing should match up fairly well. And so we have that going on, but I’ll let Matt talk about your other question.
Matthew Partridge: Yes, Matt, in terms of timing for transaction activity and to hit the top end of the range, like John said, we’re working on some stuff right now that would match fund some of the activity that has happened on the disposition side or what happened — but the rest of our guidance assumes that it’s pretty back-end weighted from an acquisition perspective. And so there is some timing drag between dispositions and acquisitions that comes through the guidance. And then as it relates to hitting the top end of that range, I think it’s going to be a function of finding good opportunities on the acquisition side. I think we feel pretty good about the liquidity of the assets that we would want to sell to match fund. So it’s really going to be opportunistic.
Matthew Erdner: Yes. Got you. And then can you talk about the opportunities that you’re currently seeing, whether it’s in markets where you’re already at or if you’re looking to expand into some new markets?
John Albright: A little bit of both. So finding opportunities within our markets and new markets.
Matthew Erdner: Got you. And then one last quick one for me. Do you know the cap rate on the acquisitions or the disposition, sorry, if you were to exclude the office transactions?
Matthew Partridge: I don’t have it off the top of my head, Matt, but it’s certainly inside of the blended cap rate given the more elevated cap rates on the two office dispositions.
Matthew Erdner: Got you. Thank you, guys.
Operator: Our next question will come from the line of John Massocca with B. Riley Securities.
John Massocca: Good morning.
John Albright: Good morning, John.
John Massocca: Can you hear me?
John Albright: Yes.
John Massocca: So maybe sticking with the theme of guidance and kind of the ranges in the investment activity, what could kind of cause you to be closer to the high end on the cap rate or the investment yield seen? And I guess, as you kind of contemplate that investment volume guidance, are there kind of some more of the structured investments you’ve been doing recently factored into that? Or is it kind of more typical equity investments in shopping center assets that would — that would be kind of making up the bulk of that guidance?
John Albright: Yes. We’re definitely looking at just right down the fairway as far as core sort of acquisitions of where the strategy is as far as buying larger format retail, where there’s different levers of increasing value with bringing in new tenancy, changing our tenancy, that sort of thing. And so we feel pretty good that we have our eyes on higher end of that guidance as far as cap rate without any structured finance investments. We don’t have any structured finance investments that we’re looking at right now.
John Massocca: Okay. And then with the employees portfolio, you kind of mentioned that the cash — give the increase in kind of cash rent was pretty broad-based. I mean, I guess, is that 17.9% level or somewhere around there, sustainable going forward as we look out into 2024? Or was that maybe an anomaly for specific leases that were renewed or put in place?
Matthew Partridge: Good question. I think on the 2024 leases expiring, there’s a pretty good opportunity to drive more rate. The average cash rent per square foot for the leases expiring in 2024 is $17.83, so that’s meaningfully below our average rent for the portfolio and obviously pretty significantly below our last 12 months of leasing activity, average rent. So I think there’ll be — there’ll continue to be a pretty substantial lift on a re-leasing effort. And then something that’s probably a little bit more specific to us in the space is the fact that we have been acquiring vacancy over the past few years. And so there’s a lot of runway to drive increased cash flow independent of the comparable lease spreads.
John Massocca: Okay. And then lastly, on the ground lease, can you maybe just provide a little more color on the counterparty there? What’s the likelihood that they in your mind that they would enact terminate the agreement during the feasibility period and utilize the purchase option. Just kind of any additional color there would be helpful?
