Brian Donley: Thanks, Yael and good morning everyone. We reported normalized FFO of $38.3 million or $0.79 per share for the quarter, which was in line with our guidance range. This compares to a normalized FFO of $45.9 million, or $0.95 per share for the fourth quarter of 2023. The decrease on a sequential quarter basis was driven by higher interest expense and lower NOI as a result of tenant vacates. Same-property cash basis NOI decreased 12%, compared to the first quarter of 2023, which came in better than our guidance range of a 14% to 16 decline. The year-over-year decrease is mainly driven by elevated free rent concessions, vacancies, and higher operating expenses. We generated CAD of $0.46 per share during the first quarter and $1.32 per share on a rolling full quarter basis.
First quarter CAD includes $10.5 million, or $0.22 per share, of early termination revenue related to the sale of the Tyson’s Food property in Chicago. Turning to our outlook of normalized FFO and same property cash basis NOI expectations for the second quarter of 2024. We expect normalized FFO to be between $0.62 and $0.64 per share The decrease sequentially from Q1 is primarily driven by lower rental income. We expect same property cash basis NOI to be down 15% to 17% as compared to the second quarter of 2023, driven by elevated free rent and tenant vacancies. Turning to our investing activities, as Yael mentioned, during the first quarter, we sold one property for $38.5 million and we have one property under agreement for sale for $7.8 million.
We spent $21.2 million on recurring capital and $6.9 million on redevelopment capital during the first quarter. In 2024, we continue to expect our total capital spend to be approximately $100 million, comprised of $25 million of building capital and $75 million of leasing capital. Turning to the balance sheet, as we discussed on our last call, we made significant progress to begin the year in addressing our debt maturities. We recast our revolving credit facility with a new three-year $425 million secured credit agreement and issued $300 million or 9% senior secured notes. Using the proceeds from the notes, offering and borrowing under our revolving credit facility, we redeemed all of our $350 million of 4.25% unsecured senior notes scheduled to mature in May 2024.
I would also like to highlight that we have enhanced our disclosures and provided additional visibility into the collateral pools securing our various debt transactions within our earnings presentation and in our investor presentation posted to our website. We entered the quarter with $2.6 billion of outstanding debt with a weighted average interest rate of 5.4% and a weighted average maturity of 4.9 years. We had $159 million of total liquidity, including $135 million of availability under our credit facility. We have been focused on evaluating strategies to navigate our upcoming debt maturities, including our $650 million of senior notes due in February 2025. Last night, we commenced debt exchange offers pursuant to which OPI will issue up to $610 million of new 9% senior secured notes in exchange for certain of its outstanding unsecured senior notes with priority given to holders of OPI’s 4.5% senior notes due 2025.
The offer is subject to a number of conditions, including that a minimum of 15% or $98 million of our 4.5% unsecured notes due 2025 were validly tendered, and at least $488 million of the new senior secured notes would be issued. The exchange offers are only being made as certain eligible holders in accordance with the terms of an offer memorandum as noted in the press release OPI issued last night. We look forward to providing updates about our progress in the future. Thank you for joining us today. This concludes our conference call.
Operator: Thank you very much for attending today’s presentation. You may now disconnect. Have a good day.
End of Q&A:
