Tom O’Hern: There’s still pretty significant demand, Alex. I mean these are great locations. They have already got the amenities that a lot of the multifamily developers really seek and they’re great locations. So there’s been no shortage. In fact, it’s just the opposite. We’ve got to figure out who the right partner is. So there’s still plenty of demand there and we haven’t seen that abate given even what’s going on in the debt markets today.
Alexander Goldfarb : And then the second question is just on the debt markets overall. Obviously, you guys have coming up Tysons and the Philly mortgages, both of those coming up early in ’24. Scott, the recent commentary by sort of everyone this quarter almost suggests like the debt markets are tougher than they were just a few months ago. I don’t know if that’s a correct interpretation or not. So, in your view, how do the debt markets compare now versus the summer versus earlier in the year? Are they getting better? Have they stalled? Have they gone backwards? Just sort of trying to get an understanding of how the progress in the healing in the debt markets is going.
Scott Kingsmore: Just to level set, there’s been over $5 billion of mall financings just in CMBS space alone, we’ve accounted for just over 20% of that. There is liquidity today. Obviously, liquidity comes at a price with the rise in the treasury benchmarks and swap rates, the cost of capital has gone up. But there is liquidity in the market and there’s been a significant amount of large and modest sized deals that have been getting done over the last several weeks. Tysons Corner, we do anticipate closing in the fourth quarter very solid asset, very well positioned, and we are very optimistic about the prospects for closing that deal. So liquidity is there, I guess, I would say in summation. It’s just there at a relatively higher price.
Operator: The next question comes from Michael Mueller with JPMorgan.
Hongliang Zhang: This is Hong on for Mike. I guess, my first question would be, would you be able to quantify your exposure to Express?
Scott Kingsmore: They’re not in our top 10. We’re not at liberty to provide specifics. I will say that we have numerous stores throughout the portfolio. But as far as specific exposures, we’re not at liberty to provide that right now.
Hongliang Zhang: And if I understand your guidance correctly, your lease termination guidance implies a pretty significant step up in the fourth quarter. Is that tied to any tenant in particular?
Scott Kingsmore: Yes, I think that question was raised, perhaps you missed it. There is a single transaction that was not contemplated, a few months ago when we updated guidance, that we do expect to close in the fourth quarter, and that’s what’s driving the change.
Operator: The next question comes from Caitlin Burrows with Goldman Sachs.
Caitlin Burrows: I think this is actually similar to a question I asked in the past but still wondering. So if I look at the minimum rents in 3Q and strip out the termination income and the straight line rents, it looks like it went down sequentially. And if it wasn’t, then we can follow-up on that. But in any case, with the strong leasing spreads and higher occupancy, I would have expected minimum rents to have increased more. So I was just wondering if there’s any additional color you can give on why that minimum rent increase wasn’t more in the third quarter? Maybe it was just mix of anchor space or timing of openings or taking space offline?
Scott Kingsmore: Yes, Caitlin. Minimum rents, as I think I mentioned in my opening remarks, minimum rents were up $7 million when taken both for wholly-owned assets as well as joint ventures at share. So we did see an increase in the third quarter. It was consistent with what we saw in the second quarter driven by a variety of factors, obviously space coming online and starting to pay rent, a bit from leasing spreads and certainly from the conversion of variable rent to top line rent.
Caitlin Burrows: Okay. I think I’ll follow-up first more on that. And then maybe you could just talk about — you talked a little bit about the depth of demand and the strength you saw in ’22 being even stronger this year. So wondering if you could just talk about the different types of categories and how kind of deep that is and how long it could continue for?
Doug Healey : Hey, Caitlin, it’s Doug. Yes, we’re seeing unprecedented demand. And again, I get asked the question all the time, how long is it going to continue? And quite frankly, we’re not seeing any kind of slowdown at all. I mean, our signed leases are really indicative of what we’ve done in the past, but then kind of looking forward, you look at the deals that we approve. We have leasing committee every two weeks, which is much more forward looking than our signed leases. And I think year-to-date, we are just about where we were maybe a little bit ahead of where we were last year at this time in approving new deals. So, that’s kind of a go forward lift. But I do think a lot of this demand comes from — as I said before, it’s a testament to our portfolio, but we just have innumerous depth and breadth of uses that we didn’t have before.
I mean, you think about digitally native and emerging brands, F&B, restaurants. Tom alluded to some of the large format, the fitness, the grocers, home furnishings, entertainment, health, wellness, beauty, the list goes on and on. So, we’ve got uses that we’ve never had in the past and I think that coupled with our portfolio is really driving the demand.
Operator: The next question comes from Craig Mailman with Citi.
Unidentified Analyst: This is [Seth Bergey] on for Craig. Going back to some of your negotiations. In the past, you’ve kind of talked about new uses for your space in terms of medical coworker — co-working grocery and lifestyle. I guess how much of your negotiations are — like what’s the mix between kind of those new uses for your space versus traditional?
