And so, I think, it would be what we’ve done, what we’ve demonstrated probably really across not only the last three to five years, but really going back, I think, our last common equity issuance was in 2012. So it’s been 11 years. And we have instead €“ now you know we’ve transformed the portfolio a couple of times since then and we’ve demonstrated consistently that recycling is a way to €“ you can achieve the same end with recycling and our portfolio is very liquid and highly attractive, even our non-strategic assets will be very attractive on the sale market. So short-term it would be cash on hand, mid-term it would be kind of recycling as we sell hotels. And we are still so far away from our NAV being reflected in our stock price, that’s very hard for us to think of common equity.
Chris Woronka: Okay. Very helpful. Thanks guys.
Operator: Thank you. Our next question comes from Josiah Choy of Baird. Your line is all open. Please go ahead.
Unidentified Analyst: Hi, thanks for taking my question. I’m on for Mike. I guess just the first one at a high level, now that the balance sheet is in a better place. How do you guys think of the best ways to create shareholder value going forward?
Neil H. Shah: Mike, there’s €“ with our balance sheet in good shape, we think the €“ in the short term, it’s organic growth from this portfolio. And demonstrating to the marketplace, the quality, the composition, the segmentation of this portfolio and demonstrating the earnings growth profile of it, I think is step number one. Step number two is being opportunistic. We think of uses of our capital in €“ we’ve looked at a lot of different opportunities that we talked earlier €“ with some of the earlier questions about acquisitions. We’re also always looking throughout our portfolio, what the €“ for opportunities to reinvest in the existing portfolio to drive meaningful returns. And we’ve had now across the last five to seven years, we’ve transformed nearly nine hotels on the balance sheet kind of timing it in seasonally slow quarters and getting it done and then creating a lot of value from that.
That’s the growth that we’re achieving in Annapolis and Mystic and South Florida is a function of those kinds of upgrades. And so we see a lot of opportunities throughout our portfolio. Ash mentioned, the work we’re doing at the Western right now or the new restaurant at Mystic and St. Gregory, we have some great projects starting at the Sanctuary Beach Resort. So there’s some great opportunities to reinvest in the existing portfolio to drive incremental EBITDA. We also look at pay downs of debt. We are fortunate to have a primarily fixed or capped capital structure. But we do have about 20% to 30% of our financing is floating rate, and today floating rate financing is north of 7%. So that’s always easy use of capital for us. But the world’s so uncertain today.
We’re not in a rush to do that just yet. But we’re seeing what opportunities are out there relative to the paydown of debt. I know some of our €“ some investors have asked about our preferred and I know some of our peers have bought that back. Ours was issued kind of in the 6.5% range. Maybe today it’s trading at 7.5%, 8%. But relative to where debt financing is for lodging. Perpetual preferred with no covenants at 6.5% feels very good €“ feels like very good paper. So we’re really not looking at that. If we were able to buy it at a discount in a meaningful size that it made sense to go through all the costs of that effort, we would consider it. But today we lean more towards paying down floating rate debt or acquisitions, and what we’re doing right now is reinvesting in our portfolio with the extra flexibility.
Unidentified Analyst: Got you. Thank you for that. And then one just quick follow-up, can you remind us again how you guys think of your JV interest going forward?
