Stephen Yalof : Yes, I don’t know what the proportion is, but there’s definitely some that won’t be renewed because they’re either too big or sitting in locations in the shopping center that will command higher rents and give us the opportunity to diversify the portfolio. It would over half the portfolio in the high 90s on an occupancy, we have the opportunity to proactively asset manage our shopping center and pick and choose who we want to put in what strategic locations.
Operator: Our next question comes from the line of Emily with Green Street Advisors.
Emily Arft: Hi there. I wanted to touch on tenant allowances. So it looks like the number jumped from about $40 per square foot to $60 per square foot. So would you be able to describe what’s going on kind of behind the scenes to drive that number higher? And where do you see that number settling?
Michael Bilerman: Sure, Emily. It’s – -a lot of our leasing activity is on renewals, right? When we talk about 95% of our leases, which having minimal CapEx, that 113,000 square feet where we get eight years duration, those deals make sense from an economic basis where we’re achieving high spreads. And so it’s just a factor of the deals that came through this quarter and what they’re adding, 6% of our total leasing activity. And when you take the CapEx in totality, it’s a pretty small amount relative to the aggregate rent that we’re getting, but importantly, the increased rent overall. And the duration I would add is, these are long duration leases on average about eight years.
Emily Arft: Great, thanks. And then I’m sorry if I missed this in the opening remarks, but the term fee collected in the third quarter, is that from a single tenant or several tenants and do the tenants fall within your top 25 tenant list?
Michael Bilerman: Emily, that’s actually related to most of that’s related to bankruptcy from COVID era, there were some bankruptcies claim distributions that had to flow through that line. It was very minimal in terms of any current tenants.
Operator: Our next question is a follow-up from the line of Greg McGinnis with Scotiabank.
Greg McGinnis: Hey, thanks for the follow-up. Just with regards to the equity issuance, you mentioned that money was spent on accretive investment. Could you provide any details on that investment or the magnitude of potential more investments there and whether that might be a good opportunity for additional equity issuances to fund?
Michael Bilerman: Yes, thanks, Greg. I mean, if we look at our sources and uses of capital, a little bit fungible and being able to raise $2.7 million of equity at almost $25, given all of the investments we’ve been making in our portfolio, whether there’s out parcels and things that we are looking at, we felt the cost of that capital would be accretive ultimately to our bottom line and always just trying to maintain as much optionality in our balance sheet as possible. And so we were just conscious of where the cost was and how we’re deploying that money to ensure that it was accretive for our stakeholders.
Greg McGinnis: Okay, thanks. And sorry if this was covered before, but how many out parcels are currently under development and what’s the expected outlay on those?
Michael Bilerman: Yes, we haven’t guided to what the — or what the cash outlay.
Stephen Yalof : Yes, I don’t know if we have that number like handy. All I can say is that the out parcels are primarily real estate that we’ve controlled for some time as we’ve owned most of the shopping centers that we have open are 40, 30, 20 years old. So the land is at an extremely low basis and our investment relative to the rents that we will collect is typically in the hot, well, I would say double digits the teens, high teens as far as a return. So we make the decisions to move forward on an individual deal basis, but the returns are very significant.
Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session. And thus concludes our call today. We thank you for your interest and participation. You may now disconnect your lines.
