Bryan Maher: I am sorry, I didn’t catch that. Did you say you want to get leverage down to 10 before you rethink that?
Yael Duffy: Yes, I think the board is looking at it. Brian, but I think right now, really, we need we need to have liquidity to make sure that we have liquidity to buy the caps and then also to run the business. I mean, if we have some leasing that’s coming up and then if Fedex comes to us and wants to do a building expansion or a parking lot project, we want to make sure that we have the liquidity to partner with our tenants to meet their needs.
Bryan Maher: Right. But to the extent that 10 is the bogie before the board starts to think about it, that’s helpful from our standpoint as we model out the company kind of now through 2026, kind of where you hit that and where there could be thought process of a slight dividend increase, nothing crazy, but anyways, food for thought and thank you for all those comments.
Operator: Our next question comes from Mitch Germain with JMP Securities. Please go ahead. Please proceed with your question.
Mitch Germain: Hi. Can you hear me?
Operator: Yes. Please proceed with your question.
Mitch Germain: Yeah. You had mentioned that there were some Fedex move outs in 2024. Are there any other known move outs for the year?
Yael Duffy: So we have the one property that we had under agreement to sell in Indiana. That’s a 535,000 square feet property and that lease expires in June of 2024. So we know that tenant is moving to a build to suit location. We are in discussions with them potentially for a short term renewal because I think their construction has been delayed, but that’s really the major one on the mainland and then as we have talked about in the past, the parcel in Hawaii, the 2.2 million square feet that was previously leased to Home Depot, that one will be coming back to us at the end of Q1.
Mitch Germain: On that, y’all, I think last quarter you had mentioned that there was some activity on that.Is there any update?
Yael Duffy: We continue to see good activity. Nothing far enough along to announce, but we do feel confident that we will be able to lease that with minimal downtime.
Mitch Germain: Okay and last one, I think you explained the shorter term on the new leasing during the quarter. Is there anything we can attribute the new leaserental changes to because that has also changed quarter over quarter here?
Yael Duffy: No, I think it’s just, you know, in some of the past quarters, we have had really long lease terms, which have resulted in bigger gap rent increases and so with the shorter watch we are not seeing that same robust strike, increase, but I would also say, we did release one property, which negatively impacted our results at a roll down in rent because it was previously leased to Fedex and it had amortizing TI, which was inflating their rent numbers.So without that property kind of we excluded that, we would be 17%, 18% roll up. So that was part of the outlier this quarter.
Mitch Germain: Okay got it. Thank you.
Yael Duffy: Thank you.
Operator: This concludes our question and answer session. I would like to turn the conference back over to Yael Duffy for any closing remarks.
Yael Duffy: Thanks for joining us. Have a good day.
Operator: The conference is now concluded. [Operator Closing Remarks].
