Todd Meredith : Sure. Thanks, Rich. Fair question. We’re all wanting to be able to answer Nick’s question about where interest rate is going. But like everyone, we’re using heuristics and just trying to manage appropriately. But I think the short answer is we are confident that the operational improvements we’re seeing that will read through are very strong in near term. And we think those can go a great deal to offset what might be, hopefully, short-term rising interest rates. And then like everybody looking at forward curves, seeing not if, but when the rates start to come down. So we feel very good about that momentum. And even if, as you just said, we found ourselves right at triple digits. I think we’re very comfortable that the operational improvements are real in near term in ’23, but also in ’24.
So we feel very comfortable that, that should drive down fairly quickly just through operational improvement. So we do not, at this point, anticipate any notion of any cut. Obviously, we’re all watching the markets and looking at the extent of this. So that’s something we re-evaluate as a Board and as a management team every quarter, every year. But for now, that’s our outlook is that we feel very comfortable with where it’s at.
Kris Douglas : One thing I would add to that, Rich, is that one of the things that is putting some pressure there has to do with the capital for the absorption that we’re seeing across the portfolio. So that’s a good problem to have. And we look at that as growth capital that will enhance long-term cash flow and value. But that’s something that if you’re dealing with that in the short term, that doesn’t point to a long-term dividend issue.
Rich Anderson : Okay. And maybe — I don’t know if it’s an obvious question, but if you’re — that was 80% of payout would you have bothered doing the swaps at this point? Or was that — was the tail wagging the dog there in terms of $600 million in swaps recently at this level in today’s market?
Kris Douglas : Yes. No. I mean if you really look at, historically, the way we’ve handled our floating rate exposure is that we’ve tried to take a pretty neutral view on rates by swapping about 50%. And that’s where we ended up with the changes that we had with the $600 million of new and the $300 million that’s expiring. So we’re still trying to take a balanced view on where rates are right now.
Rich Anderson : Okay. And then I just had kind of weird question. I live dangerously what is very last moment reporting. What had to get done in your mind that caused you to be so late in the reporting season? Is it obviously merger related, but is there anything specific you can point to? Or was Todd just taking his kids to Disney World so you guys weren’t available. What’s the reason for that?
Todd Meredith : That’s a fair point. We’re trying to have a little more normalized post-merger frenzy. No, I think, Rich, for us, it was really — I mean this was not a change we made recently. We anticipated that and put that out well ahead. And that was kind of just the plan that said, hey, let’s give ourselves really the maximum amount of time given the lift post-merger in the 10-K and audit, first full audit post-merger. So easy for me to say, but I think we could have certainly managed an earlier timeframe, but we were just trying to give ourselves the benefit of the doubt. And I think you’ll see us kind of return to a more normal schedule throughout the year. So I wouldn’t expect that this trend continues.
Operator: We now have Michael Griffin of Citi.
