Nicholas Yulico: Okay, understand, thanks. Thanks, Michael. Appreciate that. And then going back to 650 Madison. I know you talked about this a little bit. I mean, it looks like that asset got refinanced in 2019. I think there was a $1.2 billion appraisal on it. There’s 800 million of debt on the asset right now. And so if you’re saying the equity zero, basically, I guess the building’s worth 800 million. So that would be about a 35% asset value decline since 2019 when it was refinanced. So please correct me if I’m wrong, those numbers, but I guess I’m wondering is from that standpoint, if you talk about occupancy being down, I know, rates are higher as well. But how would you kind of frame out that level of an asset value decline for office and retail now versus 2019. Is that indicative of a lot of the portfolio or only the pieces where you do have some more structural vacancy right now.
Steven Roth: Yes. Like I think first of all, you referenced two or three things. We did refinance in 2019. It was pretty outstanding execution by our team, frankly, and pushing that loan out till 2029 and about 3.5%. So we have time is we talked about this impairment today, I think the most important thing to recognize is that the non cash charge, we continue to see the asset, we continue to work and we have time. Secondly, the appraisal that was done was a lender appraisal sort of a speech comments before is where the asset would have traded when the loan was made. I can’t comment. I can’t think back to 2018 the exact circumstances at that time. So it was an appraisal done at the time. There’s some specific facts that have changed since then, probably most notably we had a major tenant move out.
And the reality is rents, I think generally office and retail have declined since then to varying degrees. So I think all that’s reflected in there. And Steve talked about the impairment analysis, particularly for joint ventures is a very much accounting driven methodology. And that’s what the accounting produced today. And nothing that says that over time, that value can’t go back up. But as we sit here at the end of 2022, that’s the net result.
Operator: The next question is from Ronald Kamdem with Morgan Stanley. Please go ahead.
Unidentified Analyst: Hey, good morning, guys, this is Steve on for Ronald Kamdem. Just you guys laid out the some of the FFO headwinds next year pretty clearly in the prepared remarks, just as we think about PENN 1 and maybe some of the upside there in ’23 versus ’22, $76 a foot today. And that is what do you think that is yearend ’23? Thank you.
Glen Weiss: Hi, Glen Weiss. So we’re coming up rents in the high 60s, low 70s. We have leases out right now that are piercing 100 in the Tower of this building. So that gives you a feel of where we believe rents will go as we sign up leases for increased vacancy and for the exploration going forward.
Operator: The next question is a follow up from Steve Sakwa with Evercore ISI. Please go ahead.
Steve Sakwa: Yes, thanks. Just one follow up, Michael, on some of the swaps and caps that are maybe burning off or coming to maturity here in ’23 and ’24. Should we assume that you’re just going to let those kind of float? Are you going to put new caps in and swaps in? Or how should we be thinking about that as the Fed kind of nears the end of the tightening cycle?
