Michael Bilerman: Sure. So, sign-not open is really used by the big-box landlords. Why? Because it takes so long for those boxes to be replaced. And so, they’re always going to have this large sign-not open pipeline. Our portfolio is a small tenant of portfolio. We average 2 million square feet of space over 500 transactions. The average size is 4,000 square feet. Our sign-not open pipeline is part of our temp strategy where we’re collecting rent in a vacant space before we turn it over to a permanent tenant. And that’s the way we’re sort of using it. We, with 95% of our deals being renewals, there’s no downtime and there’s no CapEx. The tenet is paying us higher rents to stay in the centers that they’re already producing. So, I think we’ve talked before, 25, 50 basis points of sign-not open. And that’s, it is just not a material amount where we’re seeing that an ally growth on a consistent basis rather than waiting for the sign-not open to come.
Greg McGinnis: Right. Fair point. Thank you. Final question. So, you talked about temp tenants being around that 10% number or stable around that 10% number. But curious how much temp tenancy has been converted to permanent tenancy maybe over the last quarter or the last year. Just so we have some idea of how to think about the increase in rent that’s associated with converting those tenants and how frequently it’s happening.
Stephen Yalof : Well, first of all, it’s happening with great frequency. In temp tenants, the cheapest real estate deal you can make is a tenant deal because you have no lease rent. We have the ability to control the space and we have the ability to move you on 30 days’ notice. So what will happen in the shopping center that has some occupancy, if I have a 10 tenant that’s sitting next to another retailer that either wants to expand or it’s a great space that somebody wants to go into, I’m going to make that new deal. I’ll increase that rent three times, maybe four times and then I’ll say to the 10 tenants, I’ve got another space for you which would like to move to the right a couple of store fronts and continue your occupancy.
So at the end of the day, I’m building my occupancy by adding permanent, but I’m also maintaining that temp level because I’m taking that temp retail, I’m not throwing them out of the shopping center. I’m just putting in a less desirable space, but allowing them to stay there.
Operator: Our next question comes from the line of Caitlin Burrows with Goldman Sachs.
Caitlin Burrows: Hi, everyone. I was wondering if you could talk about the new tenants at Nashville or even broadly, kind of who they are and to what extent they may be interested in opening an additional center and for those that are new to the outlet concept overall. Is that something that’s like a little bit more difficult and takes longer for them to establish or is there a way that they can kind of expand just as well as somebody who’s more established kind of thing?
Stephen Yalof : Well, sure. So let’s start with Ulta. Now Ulta is not brand new to the — they’re new to us, they’re not brand new to the outlet business, they’re starting to grow in that business. A large retailer, large format store and one that, yes, we’ll take, who’s now discovered that there’s a great customer base in the outlet shopper that they want to get their product in front of. Others is let’s go to Hollie Ray Boutique, which is a local retailer from 12 South, who is a Nashville retailer that decided to put their first outlet store in the shopping center because they like the complement of tenants that they get to sit alongside of. Others are in the food and beverage category. We’ve got Prince’s Hot Chicken which is a Nashville staple that has chosen to come with us in our shopping center because they see this location is one that will have great traffic on the weekends, but also great weekday traffic by virtue of its positioning on this 300 acre mega parcel that we share with Tiger Woods’ PopStroke and the Nashville Soccer Club.
So there’s a number of great draws to that particular area that have been part of our pitch as we start to go out and diversify with different retailers, particularly in this shopping center.
Caitlin Burrows: Got it. Okay, and then sorry just following up on one of the modeling questions from earlier maybe asked another way Michael, so the base rents in the quarter you guys showed there. Hope to exact the number 76.5 or 76.9 million and the sequential increases just larger than expected over 3 million. Seems like it’s more than just occupancy in rate. Actually, you mentioned the part of it might be converting the percent rent tenants to minimum base rents. But just wondering if there was anything else one time in that and if not, then yes, that’s just the way it is.
Michael Bilerman: Yes, I mean that’s effectively all the levers that we’re pulling up into our basement rents. The out of period is not a significant amount of that year-over-year. It’s part of it, but not something of significance that would have grown that number larger than it has, all of the initiatives that we’ve been putting forth of growing our occupancy. Increasing our rent spreads converting our percentage rents to fix where we’d prefer to have fixed rent and variable rent and all of that’s translating into that base red line.
Operator: Our next question comes from line of Mike Mueller with JPMorgan.
Mike Mueller: Yes, hi. So going back to cash on hand, it looks like it’s going to be in the high 100s after the rest of the Nashville spend. And so is there any other near term use of proceeds other than potential acquisitions and normal CapEx spend and on that acquisition point? Is there a near term pipeline of opportunities that you’re currently evaluating?
Michael Bilerman: Thanks, Mike. I say we’re in the market looking at a lot of things. And outside of the Nashville spend. Yes, that’s what the optionality that our balance sheet projects. And it’s not only the cash on hand, but we’ve been maintaining this below average leverage level. And so combined with being in the low five times level and then having that $200 million to be able to deploy accretively into transactions, we think the combination positions us very well so that when we see an opportunity that we are excited about, we’ll take the swing and try to hit it out of the park.
Mike Mueller: Got it. Okay, and then one quick one. On the leasing front for the 20 some percent, I think it’s 21% of leases expiring next year. Is there a portion of that that you proactively just won’t renew because you want to sit there and adjust the mix? And what’s a rough percentage of that proportion?
