And those properties have — if you look at our disclosure talking about occupancy that’s closer to 50%. So a lot of upside there. And Rob touched on the signed that occupied potential there where there’s 630 basis points of difference between occupied and leasing. So we’re seeing some momentum there. That’s a more volatile group of properties where major shifts are going on. We’re repositioning and reinvesting capital as well as TI to change that occupancy. So a lot of pent-up opportunity there as well.
Mike Mueller: Got it. And then what’s the current thinking on dispositions outside of the JV formation and outside of what’s expected to close in Q4 and Q1? So if we’re thinking beyond what’s been announced so far how significant can dispositions be in 2024?
Todd Meredith: Yes. It’s a balance. Kris talked about $138 million that are under contract and scheduled to close this year another 180 behind that that could kind of flip on either side of the fourth and first quarter. I would tend to think and this is our view currently which we’ll continue to adjust as interest rates and cap rates evolve, but I would say we are still net sellers and we will continue to lean into non-strategic asset sales. And we haven’t put out guidance for 2024, but I think directionally you could expect to see us putting out something that is in the neighborhood of what we did this year which is maybe starting at $300 million and going up as we get more visibility through the year. So, certainly continuing to push that refining the portfolio trying to — as Kris articulated at Investor Day trying to do two things.
One is use that incrementally to refine the portfolio, generate proceeds pay down debt and so forth but it also improves the quality of the portfolio. And frankly the focus of our team on where we have that upside. So we’ll continue to lean into that in this environment for sure.
Mike Mueller: Got it. And just one clarification. When you’re talking about a starting point potentially being a similar number to this year is that inclusive of thinking of the JV as being effectively a disposition? Or are you talking about ignoring the JV this is all separate from the JV?
Todd Meredith: Ignoring the JV. So just completely separate. I really think about it non-strategic asset sales whereas the JV would be much more about strategic assets in a seed portfolio.
Mike Mueller: Got it. Okay. Thank you.
Todd Meredith: Thanks.
Operator: [Operator Instructions] And our next question today is from the line of Juan Sanabria of BMO Capital Markets. Juan, please go ahead.
Regan Sweeney: Great. Thank you. It’s Regan Sweeney on for Juan. Most of my questions have been addressed in the prepared remarks and some of the better questions here now. Also I appreciate the NOI bridge. I just wanted to follow up on the signed but not occupied delta multi-tenants are at 210 basis points with HTA at 250? What’s the historical spread just to kind of help contextualize this opportunity here?
Todd Meredith: The historical spread for HR premerger was really more around 100 or less than 100 basis points. So, today Healthcare the Healthcare Realty piece of the portfolio is about $140 million. So, that’s trending above our historical norms. And obviously as you just touched on the HTA side at 260 is well above — more than double our historical trends. So, that gives a little context to it.
Regan Sweeney: Okay. Thank you. And then just on the pipeline of the 1.7 million square feet obviously up from the Investor Day how does this compare to historical levels? And then what’s your historical conversion rate on the pipeline? Thank you.
