Adam Kramer: Got it. Okay. That’s helpful. And the implication would be there’s fewer renters within your tenant base from those government and other service teacher types of industries. Would that be the kind of implication?
Angela Kleiman: Well, Adam, I think what I was trying to say is that our tenant pool is pretty well diverse and there’s employers from all job sectors. It mirrors the U.S. pretty well with the exception of higher professional services, generally speaking. And so we’re not going to be that different. And of course, with the Northern region having a higher concentration in tech, that’s the one benefit.
Adam Kramer: Got it. That’s really helpful, Angela. Maybe just switching gears. Look, I think your commentary around — I think you kind of mentioned you didn’t buy back any shares, but also an issue in your equity. Maybe just walk us through how you kind of view your equity cost of capital today and kind of the other potential cost of the other potential capital sources and cost of capital there, whether it’s fair, whether it’s JVs. And again, financial a little bit, but just kind of capital allocation strategy from here? Is this more kind of an asset-light approach in asset late year, if you will?
Barb Pak: Yes. This is Barb. No, it’s a good question. I mean you have seen us in the past, buy back stock when we’re trading at significant discounts to NAV. And we can accretively sell an asset and ARP the difference between public and private market pricing. I think today, we don’t love our stock. We haven’t issued a stock or common stock in many years because of where we’re trading relative to where we think the value is trading. And to Ryland’s point, where we’re seeing private markets trade our cost of equity capital is not an attractive source for us, and we will look to other alternatives. We have free cash flow, the preferred redemptions and then we’ll look at where we can sell assets or JVs, if our stock price is still not where we like it, if there’s an alternative acquisition opportunity or alternative source of use of those proceeds.
So we’ve done this for — since the founding of the company, we’ve always looked at all the sources of capital and will remain disciplined on that front.
Adam Kramer: Great. Thanks so much.
Operator: Our next question comes from the line of Brad Heffern with RBC Capital Markets. Please proceed with your question.
Brad Heffern: Yes, thanks everybody. A couple on the press book. Can you give the yield that you ended up at on Sunnyvale and also say how much debt you paid off as a part of that process?
Barb Pak: Yes. So our yield is 4.75%. It is a high quality condo style property. And Essex because we own the property next store, we can operate it much more efficiently than the prior owner. And then in terms of the debt payoff, it was about $32 million in debt that was paid off.
Brad Heffern: Okay. Got it. And then, Barb, can you give the interest income that’s associated with the assets that are not being accrued? Just what that would be if they paid?
Barb Pak: If — for the four assets that are non-accrual, I don’t have that in front of me. I would have to — I have to follow-up with you offline on that.
Brad Heffern: Okay. Sounds good. Thanks.
Operator: And our next question comes from the line of Rich Anderson with SMBC. Please proceed with your question.
Richard Anderson: No, no. Wedbush. So I have a question on the dividend increase. I know you guys are a dividend aristocrat, which sounds great. But you also are counting on free cash flow as a source of capital in the absence of raising equity, you mentioned that upfront. I’m curious how married you are to this annual increase to the dividend, particularly now when cash is king and free cash flow is important to you more now so than ever, perhaps. So if you can comment on the dividend policy going forward and staying on this aristocrat list? Thanks.
