David Simon: Thank you, Jeff. So look, I think we have the ability to develop and redevelop because we’re not — essentially what I said earlier, we’re not — listen, we’ve got to be stewards of capital, we’ve got to be very focused but we’re not capital constrained the way some others might be. And our ability to invest in our portfolio is unmatched. So we intend to do that. Now at the same time, Jeff, rates are up. Returns for us have to be up. And so you haven’t seen a really big change in our 8-K redevelopment, but that takes time because a lot of the stuff was put in place. But when we build something new or we redevelop, we’re going to have to do a better job of leasing and returns and to warrant that capital because just about everything we do, I mean we still want to maintain our leadership position, but just about every amount of capital we spend, I have to measure it in my own mind against buying our stock back.
And, I mean our stock, as you saw we bought stock back, so our stock is pretty compelling. So we want to redevelop, we want to new develop, but we’ve got a high hurdle that we’ve got to jump over. So like we’ve done historically, I expect us to find the right balance between continuing and to maintain our leadership position, investing in our properties for the benefit of shareholders, communities, retailers alike, but at the same time, we’ve got to be economic animals. And that’s what — everybody here understands that process, and that’s what we try and achieve.
Operator: Our next question is from Michael Goldsmith with UBS. Please proceed.
Michael Goldsmith: Good evening. Thanks a lot for taking my question. David, you specifically mentioned the performance of the real estate business on this call several times, which has been strong. At the same time this quarter you sold off some of SPARC. So how can you continue to refine some of the ancillary parts of the business so that the strength that we’re seeing and that you’re talking about on the core business can continue to shine through?
David Simon: Well, listen, it’s a very good question and it’s less and less of our business. As you know, it’s under 5% of our earnings. You also have to understand that, when we add to the — when we add it to our FFO, it’s net income, which in many of these cases, you don’t add — well, all of these cases, you don’t add back depreciation. So EBITDA and our FFO contribution are much different. Importantly, these have all been profitable endeavors. But we understand that even this small amount of earnings that we get in comparison to our total earnings power is volatile. People don’t like the volatility. We’ll, like we did with SPARC earlier, we’re going to continue to harvest our investments over time. And as we do that, we’re going to — if you ask me today, we’ll monetize things over time and we’re going to buy our stock back because it’s wildly accreted because let’s look at it.
You know what I trade at as a multiple of FFO and you know I have investment value in these investments, but they give us very little earnings because of GAAP. And if you do the math, you can see the accretion we would get on a buyback. So they’re basically, I get no earnings from them, but I’ve got value and it’s our job to get the value into cash, take the cash, buy our stock back or invest in properties and have it a bygone era of the time. But with an asterisk that said, attaboy, you made a lot of money. So that’s the strategy. I hope that answers your question.
Operator: Our next question is from Floris van Dijkum with Compass Point. Please proceed.
