Michael Gorman: And then maybe last one, Chris, and just a mechanical one, I guess, maybe I’m just curious. So you sold about $75 million in assets in the quarter — in the fourth quarter. But when I look through the sub, it looks like net debt went up by about $80 million in aggregate. And I’m just kind of curious like what the puts and takes are there with the asset sales, but ultimately with the debt moving higher?
Chris Masterson: So in the fourth quarter with the sales, we did pay down a portion of outstanding CMBS debt. It was also draw early in the period for some funding purposes. And I think that really is probably the key of what increased the net debt during the quarter.
Michael Gorman: Yes. So maybe we can follow up with that off-line because I’m just still not quite there yet the puts and takes.
Operator: Ladies and gentlemen, our final question today comes from Mitch Germain from Citizens JMP.
Mitch Germain: Michael, it seems like some really good progress that you’re planning to make on deleveraging this year. But you’re still well off your goals. So do we consider this the start of what will be like a multiyear plan? Is that kind of the way we should think about this?
Mike Weil: I think that’s fair.
Mitch Germain: So as you go through the portfolio, identify assets to sell, is this going to be kind of something you’ll consider to do next year? Or are there methods to do some more organic deleveraging that you’re kind of going to consider as you approach 2025?
Mike Weil: Well, Mitch, it’s a great question, and I appreciate it. As — at the end of February of 2024, I’m not quite ready to talk about obviously, our thoughts on 2025. We’ve got really good work ahead with what we’ve put out for guidance and dispositions and the lowering of net debt to EBITDA. As you know, there are several levers that can drive lowering net debt to EBITDA, and we hope and expect that more than dispositions is available to us before the end of 2024 based on our execution. Organic is great. Dispositions is great, and we will continue to watch the performance and execute on what we’ve disclosed for our guidance. And that — one of our goals is to have a better cost of capital going into 2025, and that’s what we’re really excited about.
Mitch Germain: On the credit facility, is there any swaps or hedges that could prevent you from redeeming some of that debt? Chris, is there anything there that can’t be touched right now or it’s too expensive to redeem? Is that just a small portion of it? Is it a large portion of it? How should we think about that?
Chris Masterson: There is no portion of it that’s restricted from us at this point.
Mitch Germain: And then I guess last question for me. I’m just curious in terms of your — I appreciate the color that you guys have been giving on the sector by sector. And in multi-tenant, I’m curious about the conversion percentage that you’ve got on your leasing pipeline. I know you’ve got a good portion of that, that’s still under consideration or in some sort of state of discussion. What have you guys been seeing in terms of, I guess, is 289,000 square feet today. What does you guys have been seeing in terms of the ability to convert that over the last couple of quarters?
Mike Weil: And just so I make sure I understand your question. You’re asking when it’s in our pipeline, what is our conversion percentage of
Mitch Germain: Yes. So if I’m looking at your slide on the multi-tenant, obviously, some of that has already been completed. Some of that you’re calling expected. And then some of that is your pipeline. So I guess between your expected and your pipeline, I’m just trying to understand kind of how have you been witnessing conversion of that over the last couple of quarters?
Mike Weil: We have, for many quarters, been at or near 100% when we put it in public disclosure as pipeline. As I said earlier, those are lease negotiations that are very far along that maybe are not yet at a negotiated lease form, but there is an executed NOI. There is a tenant that is fully engaged and moving forward. So those numbers are very — we’re very confident in.
Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to management for any closing remarks.
Mike Weil: Great. Jim, before I end with a couple of closing remarks. Is there anything that you’d like to add?
Jim Nelson: Yes. Yes, I just want to thank everybody for joining us on this call. I mean it’s been my pleasure interfacing with you all for the last almost 7 years, and we want to thank you for your continued support of the company. And it’s been a great 7 years. I’m very pleased to be leaving with the firm in very capable hands with Mike and Chris and the rest of the team. It’s a great team, and I think there’s a lot of great things to come. So thank you.
Mike Weil: Great. Well, thank you, Jim. And speaking on behalf of everybody here, we appreciate you, and I want to wrap this up. I hope everybody had a chance to see the press release that came out this morning. The Global Net Lease board has been expanded by one very qualified director. The Board has been doing their work, and we were pleased to be able to get this announcement out today. Michael Monahan, Vice Chairman at CB Richard Ellis joins the Board with a very successful and long career in commercial real estate, and it’s just a great enhancement to an already very strong and capable board. So we thank you all for your time, and we look forward to hearing any follow-up questions that you may have, please reach out, and we are always happy to discuss further. So thank you all very much.
End of Q&A:
Operator: Ladies and gentlemen, with that, we’ll conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.
