Adam Portnoy: Sure. No, thanks for that question. We are — we continue to evaluate opportunities as they present themselves. There are — have been anecdotally a couple more opportunities that have presented themselves in the last couple of months that were opportunities that have sort of come around again where we were involved in discussions, and they’ve presented — and they have reappeared. I think it’s a pretty interesting environment we are entering into in 2023. There — I anticipate that there will be some — I don’t know if it’s going to be distressed sales, but there’s going to be opportunities where people are going to be looking to perhaps exit or, more importantly, join a larger firm, because it’s a difficult operating environment.
And to give you an example, a firm that might have, let’s say, a larger portion of their assets in and around office real estate, which is not a favorite asset class at the moment, might be more inclined to join a larger firm that’s more diversified. And there could be opportunities, for example, around that sort of theoretical situation. So, I think there’s nothing imminent that is to be announced certainly. But we have sort of ongoing regular dialogue with folks, and I anticipate that to continue. And I’m hopeful that as we get later into 2023, that some of that dialogue will turn into actionable items, and we could see some M&A activity, which would be one of the primary earmarked uses for our cash on our balance sheet. And so, we are hopeful that something like that will materialize in the coming year.
Ronald Kamdem: Great. And then my last one would just be, if you could just comment on sort of the — sort of on the office side. Sort of talked about the return to office, got a couple of data points about job losses and tenants potentially reducing space. Just curious where — what you guys are hearing, what you guys are seeing on the office side? Thanks.
Adam Portnoy: Yeah. We spend an enormous amount of time thinking in discussing and talking about what’s going on in our office portfolio. It’s a very large portion of the real estate we manage across, not just OPI, but other vehicles as well. At a high level, I’m going to — it’s almost like an analogy to — we are — the waters are calm today, meaning occupancy is pretty high, people are paying their rents. We’ve been leasing space at a pretty regular clip. Things are okay. But that all being said, we are looking to 2020 later this year, 2023, 2024, and all the signs are, from a macro perspective that things are going to slow. And it’s almost like you’re looking into the horizon, you see storm clouds. You just don’t know if we’re going into a Category 1 storm or a Category 5 storm.
And the market, if you look at the office sector, office REITs, I think investors are assuming going into a Category 5 storm. They’re just assuming the worst. I will tell you, from a planning perspective, we are obviously planning. As we think about our office portfolio, we do the best we can to plan for it. It’s going to be a very rough environment and hope that it’s not as rough as we’re planning for. You sort of plan for the worst and hope for the best. We know it’s going to be a difficult operating environment because you have the triple threat of a slowing economy, rising interest rates and work-from-home that’s just sort of not abating in a major way. And so that’s having an impact across the whole industry. Even if you have a portfolio of properties that have higher occupancy or utilization than the industry as a whole, which we do, nonetheless, because the whole market sort of recedes or go backward, we get affected by that.
