Hamid Moghadam: Yeah. The only category that is significantly below the trend and is likely to be that way is housing, because the starts are slowing. But with respect to other detail, Chris, do you want to take that?
Chris Caton: Yeah. It’s absolutely right. Generally, Nick, it was diverse. So whether we look at consumer products, whether we look at apparel, food and beverage customers, we have a diverse range of customers leasing space from us beyond the housing categories, which would include construction, it could include home goods and alike.
Hamid Moghadam: Yeah. And retail sales on a real basis, notwithstanding the weaker for instance December and November are good. I think it’s between 2.5% and 3% up compared to the year before. So, yeah, you do hear the headlines of the weaker with retailers, but I think if you look at it overall, it’s actually pretty positive. It’s more positive than the headlines. I wouldn’t say, it’s super positive, but it’s much better than the headlines.
Operator: Our next question comes from Michael Goldsmith with UBS. Please state your question.
Michael Goldsmith: Good morning. Good afternoon. Thanks a lot for taking my question. You clearly laid out the building blocks of your same-store NOI growth of 8.5% to 9.5% in 2023, where you have a high level of visibility, obviously, a lot of macro uncertainty out there. Can you provide the specific assumptions you have used for your initial 2023 outlook and then just where and how a change in the macro environment could provide upside or downside to your initial guidance? Thanks.
Hamid Moghadam: Macro environment other than, call it, defaults or something that has an immediate effect are not going to drive the numbers big time in 2023, because a lot of the leasing that needs to take place in 2023 is already in progress or been dealt with. We are dealing with very high occupancy levels. To start with, there is not a whole lot of space to lease and the real driver of those same-store numbers is the huge mark-to-market in the portfolio that already exists. So that’s — so don’t expect, even if we change the assumptions by a lot, the numbers for 2023 are not going to move that much. They will, obviously, move as you get further along into the future. So that’s one comment I would make. The second comment I would make is that in every year in the last three years or four years, we started the year with rental assumptions that we have exceeded sometimes by a factor of 3x to 4x.
So I am not saying that’s going to happen this year, but there is absolutely no reason in the world to go crazy on our assumptions with respect to rental rates, particularly they don’t have an effect in 2023 anyway. So we will see how it plays and if we see evidence of stronger rental growth and my bet would be a surprise on the upside of our assumptions, not the other way around, then we will let you know and you can adjust the numbers accordingly. Tim?
Tim Arndt: Yeah. Just building on that, Michael, if you, within the supplemental, you can see our lease expiration schedule. Out of that, you will see we have about 13% rolling and that’s a mix of what is stated as expiring, which is another 9%, but also things that we have already addressed ahead of entering the year here. So the footnotes will tell you that. You get to 13% there. SME said, start with the 67% lease mark-to-market. You have got 10% market rent growth for the year. You assume we will get that halfway through the year. One thing we see people get wrong is that will take you to a certain amount of rent change. You actually get half that rent change this year, you get half of 2022’s rent change as well. There is a mathematic thing that you need to be mindful of given the quantum of rent change we are talking about lately.
