Operator: Our next question comes from Mike Mueller with JPMorgan.
Michael Mueller: So for the two questions. The first one is, for the development leases you signed in 3Q and 4Q, how did the rents compare to the original underwriting? And the second question is a little bit more of a clarification. When you were talking about ’24 leasing, did you say 56% of the remaining expirations were in Southern California? And if so, how does that compare to what the mix was of what you signed already?
Peter Baccile: Chris, take the first part [ph].
Chris Schneider: Yes. So correct. The remaining 2024 lease expirations at 56%. And again, the ones that have been signed already, the mix with Southern California was only 5%. So obviously, it’s going up quite a bit.
Peter Baccile: Do you want to cover the first part of that question? Do you remember the first part of the question?
Peter Schultz: Give the first part of the question again, please.
Michael Mueller: Yes. It’s — for the development leases signed in 3Q and 4Q, how are the rents versus what you originally underwrote?
Peter Schultz: Significantly ahead of what we underwrote.
Operator: The next question comes from Anthony Powell with Barclays.
Anthony Powell: Just a question on data centers. And as you look at your land bank, are there any obvious opportunities for you to do additional joint ventures or development deals in the space?
Peter Baccile: So we are land positions and…
Jojo Yap: Well, in terms of — we’re — we’re very pleased that we were able to get the highest and best use for this piece of land that we have in Phoenix. So we’re very excited about that. When you look at all across the board in terms of what we do, we’re always looking for higher and better use. So if we come to a situation we’re in — we are offered a price that it doesn’t make any sense to build an industrial building or exceeds our profit potential — margin potential and product potential and development, we would consider selling. So that’s basically a rule and a practice that we do in FR. Now in terms of obvious candidates for future data centers right now, I will say that we don’t have any pending offers or pursuits of additional data center situations.
Anthony Powell: Got it. And I guess with all these sales or joint ventures, you wouldn’t do development on your own balance sheet data centers. Is that fair?
Peter Baccile: It’s fair to say, yes, we’re going to stick to our bread and butter.
Operator: Our next question comes from Caitlin Burrows with Goldman Sachs.
Caitlin Burrows: Sorry, just 1 follow-up which is similar to the question that was just asked. But in terms of the mix of expirations in ’24, I think you had previously said on other calls that 2024 would have less SoCal than 2023. So I’m wondering, as you compare ’24 to ’23, if that changed or just that kind of exposure that you were talking about — that might be confusing. I’m just wondering how the ’24 SoCal exposure compares to ’23.
Chris Schneider: Yes. Caitlin, this is Chris. So if you — because there was a couple of leases that originally were going to — they expire in 2023 are not going to lease up in 2024, the allocation between the 2 years is both around 25%-plus.
Peter Baccile: Yes. We’re talking about a couple of month’s difference. So…
Chris Schneider: Right. So very similar between the 2 years.
Caitlin Burrows: Got it. So it was some that had originally been thought of ’23 but now they will be ’24, making them more even?
Chris Schneider: Correct.
Operator: Our final question comes from Craig Mailman with Citi.
