Wilbur Paes: Sure. And in 2024 obviously the big move out for us which is known is Clifford Chance. That’s 329,000 square feet and that’s going to impact occupancy. It’s going to impact cash flow significantly. You also have Kasowitz at 1633. That’s a 50,000 square foot lease. That floor comes due I believe in May of ’24 as well. You have that. So those are the two really large things. And then in San Francisco you also have the impact of some of the space that was atoned after JPMorgan gave back some of the space that was subleased to tenants. That space we had outlined in the 8-K also comes back that was short term in 2024. So those are the large moving pieces on the downside. And Peter outlined Vikram, his pipeline of fourth quarter activity and leases out for signature, a majority of which is on currently vacant space. So we’ve not formulated our 2024 guidance, but we wanted to be helpful to you to have the big moving pieces here.
Vikram Malhotra: Okay. That’s helpful. I guess just, Albert, you do have optionality through your funds obviously on balance sheet stuff, but a lot of your peers, yourself are talking about renewed activity, perhaps some signs of tour activity, it’s picking up, et cetera. I’m wondering if these are truly signs of inflection or more stabilization and how that may tie into your decision to deploy either debt or equity capital over here, just from perhaps a first-mover advantage.
Albert Behler: Vikram, I’ve said it over and over again and I will repeat it here. We will be very careful not to invest Paramount’s capital. We will go into a recovery just with the asset-light model. That means we get some inbound questions by investors, to your question. We get some questions about is the market going to change? Those questions normally come not from institutional investors, more from ultra-high net worth investors from various parts of the world, and I think there will be opportunities in 2024. But so far, we haven’t seen anything that would really whet our appetite and really get us excited. But very clearly, there were very, very little of PGRE’s equity capital being invested here.
Vikram Malhotra: Okay. That’s helpful. Just I guess, Wilbur, last one. Can you just maybe update us on perhaps any potential dispositions or any capital sourcing that you may do and then utilize this buybacks? I’m just wondering, kind of given where the stock is, given sort of the broader markets, how are you thinking about buybacks and sources of those buybacks?
Wilbur Paes: Look, Vikram, I think it makes less sense for us to be executing buybacks today given that we cut the dividend to protect the balance sheet. That’s our number one focus right now, is protecting the company’s balance sheet and maintaining ample liquidity. We are still in this period of economic uncertainty and we have debt maturities coming due. Peter talked about the amenity center, capital that is going to be needed there as well. So we’re trying to be very, very prudent in terms of capital allocation. We certainly appreciate the disconnect between value and stock price, but we’re sitting with cash on balance sheet at $2 and our stock is trading at $4. But our goal is to continue to protect our balance sheet for the timing until we see the future getting clearer.
Operator: Thank you. [Operator Instructions] Our next question comes from Jay Poskitt with Evercore ISI. Please go ahead.
Jay Poskitt: I was hoping you could just bridge the gap a bit between, I know you mentioned that for the same-store lease percentage and some of those leases were probably going to slip into ’24. So I’m just curious the gap there between the reduced lease percentage guidance but then maintaining your leasing velocity for the year. Would you mind just helping bridge the gap there?
Wilbur Paes: Sure. I think we touched upon it a little bit earlier. A large portion of the activity was preleasing and renewal activity, so effectively what has happened is Peter has brought forward future lease expirations and renewed them. So that has an impact on the velocity but doesn’t have an impact on occupancy because that lease was currently already in occupancy. So we’ve derisked future roll, and so we’re hitting the leasing volume target, but the vacant space discussions have taken longer to come to fruition and that’s why we reduced the lease occupancy target.
Jay Poskitt: Okay. That’s helpful. Thank you. And then just another question. I know you said that you can’t say much about the refinancing coming in February, but I’m just curious, in discussions with the lenders, are they taking a similar stance as what you were able to negotiate with 300 Mission, or just given the different characteristics of the asset are those conversations kind of independent of each other?
Wilbur Paes: They’re very independent of each other. You cannot look at two financings and two executions the same way. It’s not a one-size-fits-all model. You’ve got to understand your lending partners. One Market Plaza is a CMBS loan, it’s different people that you’re dealing with. The characteristics of the asset matters. The characteristics of the sponsor matters. So I would not be thinking of the execution at 300 Mission and trying to apply that towards every other debt maturity that’s coming. It’s a bespoke process. Each one is treated differently.
Operator: Thank you. As there are no further questions, I will now hand the conference over to Albert Behler, CEO, for closing comments.
Albert Behler: Thank you all for joining us here today. We look forward to providing an update on our continued progress when we report our fourth quarter 2023 results. Good-bye.
Operator: Thank you. The conference of Paramount Group has now concluded. Thank you for your participation. You may now disconnect your lines.
