Michael Haines: So, in terms of expirations, I think – yes, the 24s, I mean, obviously, as we have in our filings, we’re going to turn one to become unhedged in August of next year, which is about the same timeline that we addressed the ’23 maturities this year. It really depends on where the markets can be with interest rates. Obviously, depending on whether rates continue going up, if they start turning back down, if they start turning back down, you do want to have some level of floating red exposure to take advantage of that. So, right now, we’re pretty highly fixed, but at the end of the year, we’ll take out the 23s. We’ll be a little bit more floating, and we’re comfortable with that level. So, we just have to kind of watch and see where the market goes on the interest rate side of things.
Dori Kesten: Okay, thank you.
Operator: Thank you. One moment for our next question. And our next question comes from Michael Mueller of JPMorgan. Please proceed.
Stuart Tanz: Good morning, Mike.
Michael Mueller: Hey, good morning. Just a couple of quick ones here. I may have missed it, but can you talk about just a rough dollar volume of the near-term transaction that you think could happen? It sounds like it would happen in 2024, but the one that’s lined up. And from a higher level perspective, when we’re thinking about 2024, should we be thinking of a base case of roughly equal levels of acquisitions and dispositions?
Stuart Tanz: You want to — I mean, again, we’re going to give guidance in our next call, Mike. If you were to look out into ’24 at this point and look at the pipeline of what we have in front of us, including a potential OP transaction, you probably could be sitting in the $80 million to $100 million range right now. That could change, of course. On the disposition side, we’re probably ramping that up, probably in the $50 million to $75 million initially, but that’s where things sit out of this call. I don’t know, Mike.
Michael Haines: Yes, just to trim the portfolio around the edges of what we currently own and use those proceeds to buy some creative acquisitions.
Michael Mueller: Got it. And then, is there any update on the, I guess, the land sales tied to the redevelopment? Just maybe an update there?
Stuart Tanz: We continue to track the market in terms of the entitled land that we’ve got. We continue to speak with buyers. We continue to speak. We’ve had a lot of interest in strong operators coming to us to joint venture these assets or these opportunities. Once we see the market begin to get better, as you might say, we will push these assets to the market as well, and we’re still expecting to get, if we were to sell two of the three, around $25 million to $30 million. But the market, again has been very difficult, but we continue to monitor it very closely, and we’re in a very good position when things, we see things begin to change to move these properties very quickly to the market.
Michael Mueller: Got it. Thank you.
Stuart Tanz: Yes.
Operator: Thank you. One moment for our next question. And our next question comes from Linda Tsai of Jefferies. Please proceed.
Stuart Tanz: Good morning, Linda.
Michael Haines: Hey, Linda.
Linda Tsai: Hello. Just to clarify, given the discount where your stock is trading and, what you said about acquisition and disposition volumes for next year, you’ll be more focused on dispositions in your term rather than acquisitions?
Stuart Tanz: A combination of both.
Linda Tsai: Okay. And then it sounds like Rite Aid has announced 150 rejections, but the Rite Aid article, Juan referred to, says more are coming. I just wanted to confirm that the three leases are on the list of identified, the 500 identified, or would you expect an announcement of more closures from Rite Aid, from which the remaining 12 stores would also be considered?
Stuart Tanz: Well, it’s tough to look ahead in terms of that process. I think Rite Aid has had some time now to really evaluate their store count. I think that’s one of the reasons why it took a bit longer to see the bankruptcy. We have one store, I think, that Rich mentioned, that is closing, the other two are up for sale, they’re still operating. Talk to tell you anything beyond that. I mean, Rich, do you —
Richard Schoebel: No, I mean, I think, they’ve also, leading up to this, have exited a certain number of stores as well. Some of them we’ve already re-led at significant increases in rent, and so it’s really hard to predict, which ones may in the future come available, but as we touched on, the demand has, given the fact that there’s really no supply available in our markets, the demand’s been exceptional. And, I mean, a number of these locations have drive-throughs, and they’re located in what I would call the premier part of our shopping centers, which would be at the intersection of where the two, roadways or curios meet. So, that’s why we feel pretty confident that I don’t, I’m not saying that we won’t see more rejections, but I wouldn’t be surprised if, as we move… as Rite Aid moves to get out of bankruptcy that, what we have sitting there remains pretty well intact.
Linda Tsai: Thanks. And then just one last one. How do you, for next year, how do you think about the puts and takes of interest expense against the pricing power you’re seeing with, new spreads and releasing spreads?
Stuart Tanz: Well, we’ll put out the guidance for next year. The maturity is for ’24 to come up until December, so unless we pull the trigger early, we can pretty much model where it’s going to be for all of the year. Fourth quarter, we’re going to have the interest expense from both the 20 trees which we’ve refinanced already. We also have the benefit of the interest income, all the cash that’s sitting there. So, ’24, we’ll be able to give pretty solid guidance on that in February, and we’ll give guidance for the year.
Linda Tsai: Thanks.
Operator: Thank you. One moment for our next question. And our next question comes from Paulina Rojas Schmidt of Green Street. Please proceed.
Stuart Tanz: Early on the West Coast for you. How are you doing, Paulina?
Paulina Rojas Schmidt: Here I am awake and ready with my questions. So, I hope that’s good enough.
Stuart Tanz: Yes.
Paulina Rojas Schmidt: My question is, when you take a step back and look at the potential consequences of the current high interest rate environment on retailer balance sheet, how do you describe your level of concern? The side of what you’re seeing today, it’s more, I’m thinking about the future. It doesn’t seem like you’re particularly worried, especially given your attitude towards acquisitions?
Stuart Tanz: Well, look, the situation in terms of, the interest rate environment is something that none of us can control. So, as we look into ’24, I think most economists have been wrong in ’23. I think interest rates are going to stay elevated for longer than what most are anticipating. However, as we look into ’24, we had a very successful bond offering. So we have the ability and certainly to go back and deal with the financing. And more importantly, we do have some time now with some flexibility out there to really think about whether we want to accelerate some dispositions and use some of that to pay more debt down. And on top of that, potentially look at what might be out there to help alleviate the concern of high interest rates without giving you specifics.
