Marc Holliday: Yes, it’s a good question. Andrew sort of presided over the whole Company, which included an investment bench, probably 20 investment professionals led by Harry Sitomer, Brett Herschenfeld, Rob Schiffer, all of whom have worked on, I don’t know, countless billions and billions of debt and equity investments under Andrew’s and my tutelage over the years. Remember, we’ve been doing this business for well since 1998 or ’99, I forget. So it’s always been core to us, I would say, on average, anywhere between $1 billion to $3 billion a year of gross originations and backing up that team, we have Andrew Falk, who’s Head of Special Servicing and runs that business and has a team under him helping him. There are other young guys behind that with that Harry can elaborate on.
But the bench is deep. The bench is very experienced we are very much in a state in that business, like no illusion whatsoever that we’re not going to be in that business in what I hope will be a very, very big way in 2024, ’25 and ’26. I think there’s going to be three years of very solid opportunities. A year ago, I said 12 months, six months ago, I said six months. What you’re going to hear in December, I think, is the opportunities now and where you should expect that as we have settled out the other aspects of our business plan with respect to paying down debt, hedging, monetizing assets, then full focus is going to pivot to new investments and assume that we are in deep conversations with mid-capital partners about putting the capital together both in the discretionary and in a managed account situation for various ways of taking advantage of this market opportunity that I think is going to be nothing like what we’ve seen in probably 30 years.
I have to dial back to my first experiences in late ’80s, early ’90s to sort of get a comparable bench point. So yes, I mean, active or continuing the program, I’d say, is an understatement.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Camille Bonnel from Bank of America.
Camille Bonnel: Hello, can you talk about the drivers behind the update to full year guidance, which implies your midpoint has changed, excluding onetime items. And with only one more quarter to go, can you talk to the big swing factors that we should consider given you tap the range so wide?
Matthew DiLiberto: Yes, Camille, it’s Matt. You’re a little muffled. So I think the first question was just talking about the details — a little bit more of the details behind our guidance revision. We have to take a $0.25 — I’m sorry, $0.27 total non-recurring charge related to Andrew. That’s $0.10 of severance and $0.17 that’s accelerated stock-based comp that would have been recognized over the coming years. That, in part, contributes to the $10 million to $11 million of G&A savings on a run rate basis. Offsetting that, though, performance and the rest of the Company has been modestly better than expected. So we’re not for the charges, we would be taking up the rest of the range by a few pennies. And we still leave a fairly wide range because even with three months left to go, we do have a significant amount of execution left and in part depending on where the One Vanderbilt JV interest sale falls, whether it be in ’23 or ’24, that has an impact on FFO.
So we had to leave the range at the same $0.30 level it was previously while adjusting primarily for Andrew’s charges.
Camille Bonnel: Got it. And thinking about your operating model and continued transition to asset-light strategy, are there any further cost saving programs you’re considering to implement from an operating RD&A standpoint?
Marc Holliday: Could you repeat the question?
Matthew DiLiberto: Are there any cost savings or G&A or set to asset management?
