I grew up in that part of the business. So we feel comfortable going after some of these businesses but I’m going to tell you it’s still an interesting thing going on in the marketplace. I really don’t expect us to go back anytime soon to really cheap interest rates. We lived for probably 7 years with wonderful low interest rate. May not be that way now because the government continues to spend so much money there, pushing up everything that’s tied to any kind of interest rates. So as we look at the world going forward, I think we can continue just to go along like this. Hopefully, we can increase our dividend at some point. But it’s not dependent on interest rates coming back to where they were. We’ve got a strong balance sheet and we’ve got a good producing of income.
So hopefully, it just continues on this way and then go into a bust kind of atmosphere. So Latoya, we have anyone else who wants to ask a question.
Operator: The next question comes from John Massocca with B. Riley Securities.
John Massocca: Can you just provide any update on re-leasing outlook for the 3 leases that are expiring over the remainder of 2024?
Buzz Cooper: Sure. We have 1 that we are in deep discussions with that will provide a significant upside. It represents, I think, approximately — of the 4.6 we have that is expiring, it has upwards to 3% of it. So we’re looking forward to having that behind us here very quickly. The others are, we have 1 that’s 6,000 square feet. That’s not of a great concern and we’re hopeful the current tenant will take that over. And we have another that we are in talks with as it relates to a lease. So we feel comfortable. We have 1 other small vacancy of 3,000 square feet with these leases, obviously very manageable. And again, the majority is going to — hopefully, we’ll have something to announce on that in the not-too-distant future as it relates to a nice plus up and long-term lease.
John Massocca: Okay. And then in terms of the incentive fee credits, can you maybe walk us through how the size of the credit in the quarter was determined? I mean, is there any — I’m just trying to think of why that specific number was credited back?
Buzz Cooper: Obviously, in discussions, we felt it was a correct number, if you will, as we are aligned with the stockholder also relative for the company itself and our employees that it was not — it kept us aligned with the stockholder but it was something that we felt we should do and could do relative to proceeding with our staff and the stockholder.
John Massocca: Is it based on like a percentage of the incentive fee in the quarter or a gross number? I’m just trying to think of why $700,000-something versus the whole amount, half of it, et cetera?
Gary Gerson: John, this is Gary. What we’re trying to do is we want to turn on the incentive fee but not to a degree that would significantly affect income and FFO. And so although we’re going to look at how much we would take over the next couple of quarters, it’s going to be at a reduced capacity, as we’ve stated, as Buzz has stated. And the idea here being that although we’re going to take some, it’s going to be at a rate that doesn’t really — we’re trying not to affect FFO because, again, we understand we’re trying to be in alignment with the shareholders. So we can’t give you an exact amount. This amount, I mean, to be quite honest with you, it’s not really quite scientific. But we did take, I mean, basically 1/3 this time around and that’s a significant rebate. And if — I would assume that going forward, that would be the case in the next quarter too.
John Massocca: Okay. That’s very helpful. And then lastly, I know you talked a little bit about dispositions and the ability of some office properties. Maybe looking back on the dispositions that were completed, in the first quarter and quarter-to-date, I mean who is maybe the buyer for these assets? Is it more of a redevelopment play? Is it financial owners? Just trying to get a little color on who’s the other counterparty in that market today.
Buzz Cooper: Sure. And they don’t have to tell us coming in the door but generally what we have seen and heard is, yes, they’re being redeveloped. Some are turning into multifamily apartment types. We’ve seen one that at least states they are going to turn an office building into a pickleball facility. So it’s across the gamut. There obviously is a value-add play for them. But we’re — as long as they can perform, we’re not concerned as much as what they’re going to do with the property.
