Patrick McIlwee: Okay, great. Thanks, Neil. And then, just more quickly. So, you pushed out your debt maturities to 2030 last year. So, with this capital structure and liquidity that’s looking pretty solid at this point, can you just share any thoughts on what you feel the best use of that liquidity will be, whether it’s leaning more towards debt repayment or M&A in this environment?
Michelle MacKay: Sure. I mean, we’re very focused on the allocation of capital, but we need to be making decisions to your point all the time about deleveraging and growth, and we’re going to be doing both, right? And that’s what you saw us do in the first quarter. I’m not going to share any specifics with you on how we’re going to be allocating that capital, but I want you to understand that we’re not just having a deleveraging conversation here. We’re having a growth conversation here and making sure that we’re investing enough to put ourselves in the best position to take advantage of the recovery.
Patrick McIlwee: Understood. Thanks, Michelle. Thanks, Neil.
Michelle MacKay: Yes.
Operator: [Operator Instructions] The next question comes from Patrick O’Shaughnessy with Raymond James. Please go ahead.
Patrick O’Shaughnessy: Hey, good afternoon. So, obviously rates have moved higher, but I think in concert with that, economic growth has generally remained resilient and recession fears, at least for now seem to have abated. To what extent is an improving growth outlook driving client behavior and leasing and your services businesses?
Michelle MacKay: Yes, I think that there’s — it’s interesting, because we’re having these conversations with people who are really focused on the Fed cut conversation. And even though that’s obviously important, solid GDP performance is very correlated to leasing decisions and decisions in our servicing businesses. So, if one prong is not firing, meaning if the Fed is not cutting, we do have the solid GDP prong. And what we’re looking forward to is over the course of the next year or two, those two firing at the same time. And when they’re more connected, you’ll start to see much higher growth rates in leasing and capital markets together.
Patrick O’Shaughnessy: Got it. Appreciate that. And then, I want to touch on project management. What’s your outlook for that as 2024 progresses? And does improving leasing activity for Shadow improving project management down the road?
Neil Johnston: Yes, I think that’s exactly right. We certainly will see an improvement there as usual starts picking up. And that will — that should be similar than our sales as we move through the back-half of the year.
Patrick O’Shaughnessy: Perfect. Thank you.
Operator: The next question comes from Alex Kramm with UBS. Please go ahead.
Alex Kramm: Yes. Hey, hello again. Just quick follow-up to my earlier capital markets question. I mean, totally hear you on 2Q, maybe a little bit softer, but then still confident in the recovery. So, maybe to speak to that, maybe I’ve missed it. Can you maybe talk about the pipeline a little bit? How that’s changed over the last quarter or so, to just get a sense for how the business is building for when we have a better environment? Thanks.
Michelle MacKay: Yes, I mean the business continues to build, and I was out in one of our offices this past Friday. The capital markets people are really focused and there’s a lot of volume in here in terms of pipeline and it’s just about decision making. So, I would say anything that’s been in process is closing. I think anything that would have been under consideration to start or transacting in the last couple of weeks is probably put on hold for a bit. But I just want to reiterate, when I say that there’s a pause, that pause could be four weeks long before the market resets and the tone resets and people really start to move forward again.
Alex Kramm: Okay. And anything in terms of quantitative? Some of your peers sometimes talk about the growth in the pipeline. Any of that you can share with us or not ready to?
Neil Johnston: Look, Alex, what I can say is that we expect sequentially the second quarter to be bigger than the first quarter. So, that sort of puts almost a floor on what we’re thinking about in the second quarter. It’s still early in the second quarter. So, really, it’s difficult to know exactly where it’s going to be. But certainly as Michelle said, pipelines are looking good, and sequentially we feel good.
Alex Kramm: Fair enough. I’ll follow-up. Thanks.
Neil Johnston: Great. Thanks, Alex.
Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Michelle MacKay for any closing remarks.
Michelle MacKay: Thank you, operator and thank you everyone for dialing in today. We look forward to speaking with you all again on our second quarter earnings call.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
