Sunstone Hotel Investors, Inc. (NYSE:SHO) Q3 2023 Earnings Call Transcript

If it doesn’t then we will let the 1031 expire. We have the option to use the NOLs to hold on to that capital but then we’ll also most likely be deploying that capital into our own stock depending on where our price is. And that I think over the last two years we’ve given a lot of data points of where we think that that price is. So that’s something where I think we’ve been as active as anyone and have demonstrated that we are absolutely not shy of deploying money through our, into our own currency. So, the answer to your question, yes, it can be multiple assets, it may be multiple assets, it may be one asset. We will have more information as time goes on and we will absolutely update investors and the market on that.

Floris Van Dijkum: And maybe if I can have the follow-on, on that. What we’re hearing from the market obviously, is that larger assets because the financing markets are more difficult, tend to trade at bigger discounts than smaller assets. How do you weigh those two if you’re potentially buying smaller assets that might where the bite size is maybe $100 million or less versus maybe getting a perhaps slightly more attractive yield on something that is a larger size?

Aaron Reyes: It is like everything, it’s a balance. And it depends on the opportunity. And is there a size that while it could be a good deal, might start to get too large or create concentration risks in the portfolio? And that’s something we would to evaluate. I think our, sweet spot here of what we would be looking for would be something to deploy a portion of the proceeds into and leave some remaining proceeds to deploy through stock or through another asset at a later time. But if you look at what we’ve done in the past, I think we’ve been pretty balanced. So that’s what we’ll continue to look to achieve.

Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. I will now turn the call back over to Bryan Giglia, Chief Executive Officer, for closing remarks. Please go ahead.

Bryan Giglia: Thank you everyone for your interest and we look forward to seeing you at upcoming conferences and meetings over the next month or two. Thank you.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining and you may now disconnect your lines.