Barry Gosin : Yeah. There’s still going to be enormous amount of equity requirements. The banks are going to try to do a different level of coverage. If interest rates go up 300 basis points, in theory, there’s a 20%-25% reduction in value. And if you want to retain a 65% loan to value, you’re going to provide less debt financing. So as these loans come due, people are going to need more equity. If they want to blend and extend, they’re not only need debt which will be temporary from their existing lenders, but they’re also going to need new sources of capital, new sources of debt. And some of it will be given back. Some of the keys will be given back. But I think the banks, as they learned in ’09 to a great degree that eventually, if they’re allowed to make money back in the spreads, they’ll hold on to the real estate, but they’re going to work with the existing borrowers.
And that’s a good place for us to be. They’ll still need more capital. The lenders will eventually get out. There will be new lenders taking their place and there will be new opportunities once cap rates stabilize and once interest rates actually normalize to a specific level. As soon as you think it’s coming back and the Fed raises 25 basis points and another 25 basis points, everyone just — it shuts down for a moment until it’s going to settle in. So we know it’s going to stop and I think it’s very shortly. And once you can — you have certainty in the debt and equity markets, you can start trading again.
Alexander Goldfarb : Okay. And then the second question is, on your investments, the acquisitions of different teams and such. A number of years ago, I think, pre-COVID, you guys restructured the amortization of the equity issuance that you gave to people for purposes of the P&L. So instead of all the shares vesting at day one and the brokers getting that coupon along the way, I think you staggered it, so it was like a four-year vest. So I’m guessing now we’re sort of all the way into all four years vesting every year. So as you guys buy new teams and prepare for the upcycle that hopefully is coming, how do you ensure — what are you looking at doing such that this time around, there’s more of a direct correlation from the top line growth to the bottom line, whereas before there was definitely some dilution that was going on?
Mike Rispoli : Yeah. So we have a stated target to keep our share count growth within 2% year-over-year. And this year, on a weighted average basis, we expect to be flat from where we are today. So we have a plan. We know we can manage it to the 2% and we’re watching it all the time. So we expect to be able to manage within that expectation.
Alexander Goldfarb : Thank you.
Operator: [Operator Instructions] We’ll now take our next question from Patrick O’Shaughnessy with Raymond James.
Patrick O’Shaughnessy : Hey, good morning. Your earnings release called out customer wins in Property and Facilities Management. Are these wins more on the property owner side or the occupier side and are they generally competitive wins?
Barry Gosin : They’re both. I mean we’re winning on the property management side and we’re winning on the facility side as well. We generally win facilities where it’s matched up with opportunities to make — to earn money in other aspects of the business. We don’t generally do pure-play facility management assignment.
Patrick O’Shaughnessy : Got it. And how do we think about the margin implications of growing the Property and Facilities Management business, certainly growing faster than the commission side of things? If you continue to grow that part of your business at a faster rate, does that weigh on the company’s overall margin profile?
