Laura Clark : In terms of the mark-to-market over the next several years, we actually provided a disclosure around the projected portfolio net effective market by year, assuming current rents and no further rent growth. So that by the end of 2023, so I think next quarter, it’s 52% by the end of 2024, it’s 42%. Now as a reminder, there’s — and I talked about earlier, there’s a lot of different components, right, that can impact that, the leases that we’re executing, repositioning and redevelopment opportunities, so acquisitions that we’re acquiring. But based on the current portfolio and where it sits today, the end of 2024, we would be at a 42% projected portfolio net effective mark-to-market.
Vikram Malhotra : Okay. But just to clarify that negative 1% market rent growth, if I just flow that through the forward projections that you have made, I’m just still — it’s still hard to get to such like the 600-point change in, say, ’25. So I’m wondering the sort of variability in that negative 1% to market rent growth.
Laura Clark : There’s some variability. And that’s obviously driven by — because the change in market rents is not straight line across the portfolio. So there’s durability in terms of submarkets, there’s durability in terms of the size of basis. But as I mentioned before, there’s many other factors that are driving the mark-to-market besides the change in end market run.
Vikram Malhotra : Okay. Fair enough. And then just a follow-up on the — your largest tenant, the Tireco acquisition or expiration. Can you just clarify — I think you said the automatic renewals? Or is it just highly likely they’re going to renew? I only ask because it seems like in ’25, there is a step down. And I’m wondering what you have sort of embedded on renewal for that lease?
Laura Clark : Yes. Yes, they have an option to extend their option to renew the lease, and that’s a fixed option at 3%. So they — that is impacting our mark-to-market in 2025 because we’re capturing that option at 3% and not what would be the embedded mark-to-market if we were to get that space back.
Vikram Malhotra : And — sorry, just as it stands today, is that a rollout or a roll down if nothing changes?
Laura Clark : In terms of if we were to get the space back, would that roll up or down? Is that your question?
Vikram Malhotra : Yes. I guess you’re saying you’re not getting the full mark-to-market because of the 3%.
Laura Clark : It would roll up.
Vikram Malhotra : It would roll up. Okay.
Laura Clark : It would roll up that base is below market today.
Operator: [Operator Instructions]. Our next question comes from the line of Nate Crossett with BNP.
Nathan Crossett : A quick one on just recurring CapEx. It’s up quite a bit the last couple of quarters. Just wanted to know if you can maybe unpack that. Is there anything we should know going forward for maybe recurring CapEx expenditures? And then also G&A, I think the guidance for the year implies a significant ramp into 4Q. And maybe you can just kind of unpack what that is?
Laura Clark : Hi, Nate, thanks so much for your questions today. So in terms of recurring CapEx, it’s really largely driven by seasonality especially related to exterior work within the third quarter and some into the second quarter, we do take advantage of some of the hotter dryer web conditions for that exterior work such as roof and exterior painting. So that really drove our third quarter capital expenditures higher. As we look forward, we would expect fourth quarter to be more in line with prior quarters. And to your question around G&A, I’ll note this is the first increase in G&A in 2023. We do continue to realize really significant operating synergies. Our G&A as a percentage of revenue for the full year is expected to be 9.6%, and that compares to 10.2% in the prior year.
