Pete Scott: We will do. We will certainly do. Look, on the synergy, what I would say on the $40 million, we said the vast majority of that is actually on G&A savings, and we would expect to achieve pretty much all of that at closing. Some of those G&A savings are difficult. We have to have conversations with employees on our side. DOC has to have those on their side. Those conversations have been had, never fun, but I would expect the vast majority of that to hit right away. As we talked about on the balance, on the internalization, most of that really is the three markets that we have said we have internalized already. So, those are really tangible, but those will hit kind of quarterly as we get NOI benefits within our portfolio throughout the year.
But again, we feel confident that we are going to hit all of those numbers. That’s why it’s in our $40 million estimate that’s really just 10 months as opposed to hitting that in a year, so hitting those numbers a little bit earlier on. As to the additional $20 million, I think those are really kind of 2025 numbers, and a lot of that is really internalization focused, although there could be a modest amount more of G&A. And where we sit today, we feel confident that we can hit those numbers. But again, those will be ‘25 numbers, and that will flow through that to all the years beyond that.
Austin Wurschmidt: Yes. No, that’s great. Green thumbs on the answer. Appreciate the detail.
Pete Scott: Okay. Thanks.
Operator: Our final question will come from the line of John Pawlowski with Green Street. Please go ahead.
John Pawlowski: Thanks for the time. I was hoping you can provide just a very rough range of disposition volume that you would look to close on this year if your public market valuation is still depressed.
Scott Brinker: I mean it could be zero if the market is tighter, it could be a couple of billion dollars if the market opens up. I mean we will see, John, we are having all sorts of discussions, but we have them. We have been saying that on a couple of quarters in a row of earnings call. So, we will just have to see how the market plays out. But there is a lot of active discussions across the portfolio today.
John Pawlowski: Okay. I know like the market is not completely liquid right now, but there is still such a massive gap in where your stock is trading and where you are able to close some deals, and I know not everything is going to trade at a low 5% cap rate. But even if it’s well north of that, there – it still seems like a very interesting trade right now to try to narrow the public to private valuation gap. So, are you – how much are you actively like on the market looking to sell right now in life science and other lease?
Scott Brinker: Yes. I don’t really have a different answer than what I gave in active discussions across the portfolio. I mean it could be a very material number if the markets open up.
Pete Scott: Yes. I think the other thing I would add, John, is obviously, we don’t have any acquisitions dialed into our forecast as well. And then on top of that, we did actually bake in, and hopefully, this was something that everyone got from our prepared remarks is that we have baked in potential dilution from if we wanted to sell non-core assets, the likely use of proceeds immediately would be to repay debt, right. And that’s got a dilutive impact to it. That’s not to say that we are going to look to further de-lever. We would like to recycle that capital over time into our core business segments, but we have dialed in some flexibility within our forecast to allow us to recycle capital.
John Pawlowski: Okay. And maybe a follow-up, can you just help us understand the two development starts $90 million. I know it’s a small volume, but 7% to 8% development yield on a risk-adjusted basis seems pretty thin relative to again, where the stock is trading or even debt repayment, again, on a risk-adjusted basis. So, why is development winning out of the use of proceeds right now?
Scott Brinker: Yes. I mean it’s with a top partner in HCA. One of them is in Dallas, where we have had tremendous success. We have got assets on that campus. It’s bursting at the seams. We are obviously highly pre-leased. We are signing long-term leases with no CapEx for the foreseeable future. So, the cash flow returns are still quite attractive in our view, and we are selling assets to fund it at an accretive level. So, I still find those to be an attractive use of capital for our shareholders, John.
John Pawlowski: Okay. Thank you for your time.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Scott Brinker for any closing remarks.
Scott Brinker: Yes. I want to thank everybody for their interest. The team here is completely focused, hard at work on beating our earnings guidance again. I think we delivered really strong AFFO growth this year at more than 5%, we grew FFO more than 7% the year before that, and we expect to continue that. So, in any of that, I appreciate you tuning in today, call with any questions. Thanks everyone.
Operator: The conference call has now concluded. Thank you for attending today’s presentation. You may now disconnect.
