Jeff Mooallem: Good morning, Paulina. Well, with 75 properties all in sort of dense markets, there’s a lot of different things we can activate, right? But it all kind of comes down to what is, I think, an inherently strong land value at an attractive basis. So, on certain properties, I do think there’s going to be an opportunity through entitlements and the municipal approval processes to increase the size of the assets. On other properties, it might be renovations where we can possibly grow rents from adding new tenants as a result of a better looking property. In some cases, there might be out parcels to dispose or adjacent land to acquire. And then certainly across the board, leasing is our main focus. But for me, it all comes down to, having worked on several portfolios at different parts of the country over my career, it all really comes down to your basis in the land and your ability to do things at an attractive land value.
And I think the Urban Edge portfolio is really second to none in the REIT space at that. So, I’m really kind of excited to get into the specific weeds on each of these assets and see where we’re going to pull these different buttons, but there’s certainly a lot of opportunities.
Paulina Rojas: Thank you. And then regarding the transaction market and what are you seeing? Any change at the margin? How are you seeing the pool of buyers and how deep is that today?
Jeff Olson: I’d say there’s still not that much liquidity in the market. There’s a wide ask between what sellers want and what buyers are willing to pay. And I think a lot of that just has to do with where interest rates are. I mean, if you can get financing in the 5.5% to 6.25% range for strip – for high quality strip shopping centers, most buyers, including us, are going to want to spread above that. And then when you look at the REIT sector in particular, and UE in particular, where I think according to your numbers, Paulina, we’re probably trading at an implied cap rate of around 7.5%t’s really hard to make the numbers work.
Paulina Rojas: And what’s your appetite to disposed assets today?
Jeff Olson: I think we’re open-minded to it, but again, I think because of the lack of liquidity, we want to make sure that we would be smart sellers.
Paulina Rojas: That makes sense.
Jeff Olson: But there are a handful of assets – I think it’s safe to assume that we’ll probably dispose of about $50 million a year.
Paulina Rojas: Okay. Thank you. And then one maybe modeling question. So, this year, your same-property NOI, including redevelopment, grew less than excluding redevelopments. I assume that the contribution of redevelopments for next year should be positive given everything that you have leased and scheduled to come online. Is that a fair read through of what you’re saying?
Mark Langer: Yes. Following – you’re exactly right. Next year it would be a contributor.
Paulina Rojas: Is there any ballpark number for that contribution?
Mark Langer: No, we haven’t broken it out separately, but it’s flipping positive and even more so as you go to €˜24 and €˜25.
Paulina Rojas: Okay. Thank you.
Operator: . Ladies and gentlemen, there are no further questions at this time. I would like to turn the floor back over to Jeff Olson for closing comments.
Jeff Olson: Oh, great. I hope everyone has a great Valentine’s Day, and we’ll look forward to seeing you at the Citi conference and then at our upcoming Investor Day. Thank you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
