Conor Flynn: Sure happy to. Good question, Ki Bin. So it’s a long-term strategy for us. As I mentioned in the €“ in my prepared remarks, we want to activate these entitlements using a CapEx-light strategy, meaning that we really want to increase the value of the asset, unlock that highest and best use without putting a tremendous amount of capital out that doesn’t necessarily return a high yield during the construction and development process. So what we’ve done is tried to entitle as much as we possibly can across the portfolio, layering in projects each year, so that we can activate €“ we’ve been running around 1,000 units a year of how much we have in the active pipeline. We’ve built over 2,000. We’ve got a little over 1,000 in the pipeline today.
We continue to want to set this up for a long-term value creation. So it gives us optionality and flexibility to look at each asset and look at those entitlements and say, which should we monetize, which should we ground lease and which should we contribute to a joint venture? And so the way we’ve been doing it is we’ve been monetizing the office entitlements. We’ve been ground leasing assets where we have multi-family rights filled, but we think that, that market may need a little time to mature. So in essence, the ground lease gives us time to activate the project without having a lot of capital at risk, but then having a right of first refusal on it to bring it into the core upon the right time and place or the contribution to a joint venture where we see the project is right to participate in the economics and the cash flow growth.
So that’s the way we’ve set up the program. We continue to think that long term, it’s a great way to create value on the asset, and we’ll continue to monitor which of the €“ what’s the right time to monetize those if we see fit. But that’s the way the projects continue to evolve and we’ve seen great results in terms of being able to actually create an environment, a mixed-use environment, where the multifamily feeds the retail and the retail feeds the multifamily. And that’s the flywheel you’re trying to create because you’re actually generating higher than market rents on the retail and even higher than market rents on the residential when the environment is complementary.
Operator: Our next question comes from Ronald Kamdem from Morgan Stanley. Please go ahead.
Ronald Kamdem: Great. Thanks. Let me try to sneak in two really quickly. Really appreciate the cash flow statement you put in the supplement, I think you guys are one of the only ones that do that. So it’s really helpful. So I see cash from operations here at $861 million and presumably, that’s being held back by the large tax bill that you sort of incurred this year, so you can maybe get to a $900 million number. When I am thinking about sort of sources and uses, you’ve got a dividend that you got to pay out $550 million, maybe another $150 million to $200 million for CapEx. Is it I think about it right that presumably next year, you are in the $150 million to $200 million range of just free cash flow that you could use for whatever? Is that the right thinking? That’s number one. And then the second was just would love an update on your thoughts on Albertsons, Kroger.
Conor Flynn: I’ll take the first part, for sure. Yes, the free cash flow expectation is around $150 million for 2024. And again, kind of hit on all the €“ I am sorry, for 2023. You’ve kind of hit on all the points, right? We have really the free cash flow after dividends, FX, TIs and leasing commissions. And then that’s based on the current dividend level at $0.23 a quarter or $0.92 a share for the common. You’re right on track with that.
