Samir Khanal: Got it. And I guess, Mark, on the same-store NOI growth, the 3% to 5%, I mean, it’s still a pretty wide range there. Maybe talk us through, what needs to happen to sort of get us to the top end and the low end there. Thanks.
Mark Langer: Sure. Good morning, Samir. So really, the main pillars, when we look at our NOI growth in that range, it gets down to the pace and rate at which the incoming leases get executed and filled. So from an RCD space basis, you saw my comments on the S&O and the timing of that. So that’s one element. And another big element, of course, is the tenant credit loss provision, which has its own range. So in order to get to the high and low end, it’s really a function of taking for the low end, the more conservative levels of bad debt, some tenant fallout and some slowdown in the pace of the rent commencements. And on the upper end of that range, Samir, it’s really getting to low levels of reserve, low fallout, and getting full execution on the S&O. So those are the really the biggest drivers.
Samir Khanal: And maybe as a follow-up, I mean, is it taking longer to open up open tenants these days, given some of the approvals you need, maybe talk around that a little bit? Thanks.
Jeff Mooallem: Samir, you’re hitting on all my hot buttons today. Yeah. Listen, I mean, it’s just the nature of the business where we are today. Things take a little bit longer to negotiate. Things take a little bit longer to get approved. There’s more municipality involvement than there has historically been in the past. We are in some very high density, good income demographic locations, and generally, those are the places that have towns that get very involved in a permitting process. So you get the bad along with the good of these kinds of first-ranked suburban locations. It is taking longer than we’d like. We’ve had a couple of deals where we’ve pushed delivery back a quarter or two quarters. We are getting it done, but certainly, we’d love to expedite the process.
Samir Khanal: Thank you.
Operator: Our next question is from the line of Ronald Kamdem with Morgan Stanley. Please proceed with your question.
Ronald Kamdem: Hey. Just two quick ones for me. Just on the same-store on why, both sort of the 4Q number, you talked about sort of the, I think, there was some out-of-period stuff that happened in there. Maybe can you just provide a little bit more color on what happened in 4Q and why and the diversion between the first half versus second half in the 2024 guidance as well?
Mark Langer: Sure. Good morning, Ron. It’s Mark. 4Q was — the specific answer was really the timing. We — as we noted in the press release, the deferred maintenance. The big dollars really come from some parking lot and paving projects. That was the big driver. So it was just a function of timing. If you look on a full year basis, as I said in my comment, the NOI number for the year was in line or even behind of our guidance. In particular, when you exclude the other big variable in this quarter, Ron, on a year-over-year basis was the collections from out-of- period receivables. I mean, that was a meaningful difference of about a $1.3 million and that we had expected as well. So the combination of just the timing of spend, and so I just say, if you look at it more on a full year basis, you’d get a better picture than just looking individually at Q4, which is evident when you look at our guide for next year.
Ronald Kamdem: Right. And then so for the guide for next year, I think, you talked about the first half potentially being lower before wrapping in the second half of the year. Is that sort of similar timing? Is it lease commencements? What’s sort of driving that?
Mark Langer: Yeah. Two factors driving that. One is just seasonality on the OpEx side. Snow removal costs, obviously, much more pronounced in 1Q and sometimes even a little in Q2. And then, secondly and importantly, what I commented on in the opening remarks about the cadence and pace of the S&O delivery, Ron, 75% of that S&O amount that we disclosed this year is really coming in the back half of the year. So NOI and FFO will be a gradual build and not ratable for those two factors, both on the expense side and just the timing of rent commencements.
Ronald Kamdem: Great. And so just my last one, if I may, is just on, so I saw the Heritage Square deal. Let me just talk just broad strokes about the acquisition market, are you seeing sort of more opportunities, less opportunities, how are you guys thinking about that pipeline this year?
Jeff Olson: Yeah. I mean, I think, we’re seeing more opportunities. We do have a nice pipeline that’s building. We closed on Heritage. We’ve got probably another $80-ish million under serious negotiation at the time and we do hope to close on more acquisitions this year. We’re finding that, the market is tough to find an asset that meets all of the characteristics that we’re looking for, so maybe every one out of 100 deals sort of fits our profile, but Heritage Square certainly was one of those and the one that we have — that we’re negotiating fits that as well. Jeff, do you want to add anything to that?
Jeff Mooallem: No. I would echo that the market is a little bit — it’s still tough, it’s still tight, but what is a little different, Ron, from maybe in past cycles is, because interest rates are not at historic lows anymore, the highly levered buyers or the buyers who are maybe dependent on raising capital for investment deals don’t show up at the table quite as often, and when they do, they don’t have quite the same credibility and certainty with the sellers that we do as a well-capitalized all cash buyer, so we are seeing some competitive advantages as a buyer in the market today versus where it might have been a few years ago.
