Andrew Mathias: We’re currently in an arbitration process to determine that rent as leaseholder. And with respect to the rest, unfortunately, as we’ve said on prior calls, there’s a lot of controversy and litigation surrounding that asset, and we’re not really able to comment further.
Stephen Sakwa: I can appreciate you can’t give a lot of detail, but I guess, would it be your expectation that, that gets resolved sometime in ’23? Or is it too difficult to end handicap that kind of timing?
Andrew Mathias: We would expect the rent on the leasehold to be resolved in 2023, yes.
Operator: Our next question comment comes from the line of Camil Bonnel from Bank of America.
Unidentified Analyst: Is a follow up on the capital structure and strategy behind it. Do you see any difference in the longer-term leverage levels between your consolidated and JV portfolios?
Matthew DiLiberto: So our view of leverage is, first one of LTV, not debt to EBITDA because that’s how real estate leverage is measured. And we look at it, obviously, at a corporate level, rolled up combined basis and are comfortable where we are. We’re a little higher than typical right now because of some asset acquisitions we did. And so that’s part of the reason we’re targeting debt repayment over the course of this year. But where we were prior to that and where we’ll be at the end of this year based on the plan we have in place, we are completely comfortable with. As it relates to consolidated, unconsolidated, we tend to have — as we move more into this asset management model, more unconsolidated JVs than we have in the past.
I’m sure it will continue to move that way. That leverage level will be taken on a case-by-case basis based on the asset that the JV invested in and then rolled up through the company to make sure that we maintain a prudent amount of leverage as a company. So where it sits is not necessarily something we’re as focused on as the overall leverage profile.
Unidentified Analyst: Okay. And just taking another angle on the transaction market. More of our conversations with brokers seem to indicate that we won’t see pricing discovery over the next 12 months. Can you update us on how you think about this in the context of opportunistic investments? And how much of your pipeline is based on distressed opportunities?
Marc Holliday: Well, we hope to have price discovery on 5 of our assets, certainly within 12 months. So that doesn’t dictate the market, but certainly is sufficient for us. I mean we definitely pride ourselves on having a good pulse on where pricing is. I would not call this a market where pricing is undiscoverable. I mean we’ve seen those markets. I don’t think that’s this market. This market I think there will be trades done this year. Certainly, we anticipate doing trades. You have to have — bring a realism to the table as to current values. And I think we’re good about that because we constantly are refreshing our internal NAVs throughout the year, asset by asset, lease by lease, and making adjustments for market factors like growth and cap rates and required returns, et cetera.
