Richard Schoebel: Yes, right now, in terms of fallout, only one lease has been rejected by Rite Aid. The other two leases are in their sale process. And as you know they are required to pay the rent until they reject any leases. So we don’t anticipate any financial fallout as it relates to Rite Aid or any other major tenant.
Michael Haines: Yes. As far as same-store NOI for the balance of the year, given that we’re already at 3.6 for the nine months here, I feel pretty comfortable between three and four. The other income items kind of contributed to that in the third quarter, but fourth quarters should be back in line with kind of our normal historical. So the 3% to 4% range we feel pretty comfortable with.
Unidentified Analyst: Okay, thank you. And second, I was just curious if you could give, the latest temperature check on small-shop tenant health, just given like the 96% lease rate you spoke to seems fairly consistent if you could just give the latest on the health of tenants there?
Stuart Tanz: Sure. Yes, I mean, the shop tenants continue to be very active. And our leasing team has been capitalizing on that. They are fielding multiple NOIs for the spaces that we do have available. And it is coming from a broad range of, local, regional, and national tenants.
Unidentified Analyst: Okay, great. Thank you.
Operator: Thank you. One moment for our next question. And our next question comes from Wesley Golladay of Baird. Please proceed.
Stuart Tanz: Good morning Wes.
Wesley Golladay: Hey, Stuart, follow up to the funding question for acquisitions. I mean, can you give us your appetite for selling stock at today’s level? It’s like you’re at mid to high sevens, depending on where we open the day. And then where can you sell assets today?
Stuart Tanz: Well, in terms of selling shares, we don’t have a set price in mind. We consider a number of factors when contemplating raising equity to fund our investment activity, including our current stock price and the acquisition yields. In terms of cap rates, there’s been, I think, as you’ve heard in my remarks, very few transactions for high quality, gross, or anchored centers on the West Coast. What we have seen more recently has a couple of widely marketed deals in the fives, one in the low fives, one in the mid fives. And again, as we sit here today, a bit more activity over the last several weeks on the West Coast, primarily related to ICSC, which is occurring tomorrow and Friday in San Diego. You usually get a number of assets to come to market when you have this size of a gathering of retail experts.
But cap rates today are still sitting in that, let’s call it 6% range, give or take, depending on the profile of the asset, some are below the six, some are at the six or a bit above, but six on average still.
Wesley Golladay: Got it. And then maybe on the right, I think you did a comprehensive review at ICSC with the management team over there. Overall, it sounds like you also feel pretty good about your portfolio. They’re contemplating both asking for rent cuts and then also closing stores. Would it be safe to say that you have no appetite for rent cuts with considering where your market to market is on these assets?
Stuart Tanz: Absolutely. The demand has been a bit overwhelming to tell you the truth. We’ve only been in the market with these locations probably a couple of weeks, Rich, and we’ve got a number of LOIs that have hit our table already, even on the locations that haven’t been rejected. So we’re pretty confident, certainly sitting here today, that we’ll be able to create some good value over time in terms of what we see on the ground with the Rite Aid situation. And the mark-to-market depending on the location is quite large depending on, again, the location of the actual space. But very encouraging in terms of what we’re seeing right now on the ground. I don’t know if you want to add anything to that, Rich.
Richard Schoebel: No, I mean, I think as you see from other bankruptcy situations, normally we’ve been coming out ahead on those, whether the lease is accepted and there’s no downtime or when we get the space back and we’re able to bring that space up to market rent. So we would expect a very similar situation here with Rite Aid.
Wesley Golladay: Got it. Can I just get one more on this other income line item? It looks like it’s a combination of maybe, correct me if I’m wrong, about $2 million of term income called a little $300,000 of interest income just from the cash position you held. Does that seem correct? And it also looks like you’ve got about maybe one year’s worth of rent for free or interim income. Is that a good way to look at it?
Michael Haines: The other income details of the $3.5 million of other income in the third quarter, $2.5 million of us, to say, was lease termination, settlement income, and connection with those leases that we recaptured that I mentioned, which we’ve already, as I’ve already talked about, have already landed on the tenants at higher rents. The balance, it was just a mix of other miscellaneous income items and a touch of interest income on the cash from the bond offering that’s sitting in the money market.
Wesley Golladay: Got it. Thanks, everyone.
Stuart Tanz: Yes, thanks a lot.
Operator: Thank you. One moment for our next question. And our next question comes from Dori Kesten of Wells Fargo Securities. Please proceed.
Stuart Tanz: Good morning, Dori.
Dori Kesten: Good morning, guys. Given the improvement you’ve noted in the transaction environment, is it fair to assume that your prior disposition guidance would be pushed into ’24? We will assume that your prior disposition guidance would be pushed into ’24.
Stuart Tanz: We will probably increase that guidance in ’24 in terms of dispositions as we ramp up on the acquisition side, although I can’t give you any specifics for a second. We believe that the market is so tight as it relates to looking at high-quality grocery-anchored assets that we believe that there will be a nice window that will be opening up that will give us the ability to accelerate some of the disposition side of that equation, again as we move into ’24. But again, we’ll give you firm guidance in our next call.
Dori Kesten: Okay. And then with the ’23 maturities addressed, what are your initial thoughts and the timeline for addressing your ’24s? I know you mentioned kind of annual offerings going forward. And I guess just part of that, can you give us an update on your views regarding fixed versus floating exposure in this environment?
