Nick Thillman: That’s helpful. Maybe just on FedEx or some of these larger boxes, obviously a lot in the news on just new supply being in bigger box. Maybe what’s in place rents relative to just say what development rents would be?
Jim Connolly: On the big box we are you know we’re still lower than the new product coming online. I think that is an advantage for us. Of course, most of our portfolio is well positioned against the new supply coming online being much probably up to like a 20% discount.
Nick Thillman: And then maybe for Anthony, you guys in prior quarters had mentioned maybe refinancing the AG Loan with more secure debt. Was that more a factor of just working towards this investment grade balance sheet or what’s the pricing on maybe secure debt not as great as you initially had thought?
Anthony Saladino: Both factors played into the decision. So there clearly is heightened pricing with respect to secure debt. We also didn’t like the lack of optionality with respect to secured. We think when we hedge the portion of the line, that we should come in around 6.5, that equates to a hedge rate of, call it, 4.8 plus our facility spread. So we do think that’s well priced vis-a-vis today’s alternatives. Yes, it’s short-term, but it serves as a bridge to get us to hopefully a less volatile interest rate environment two years from now.
Operator: The next question comes from John Kim with BMO Capital Markets. Please go ahead.
John Kim: Thank you. Your ‘23 guidance implies a fourth quarter increase in FFO and same store NOI $0.48 and 9.5% on the NOI front. I know you have some developments that may help with earnings, but can you just walk us through some of the drivers to get through your fourth quarter implied guidance?
Jeff Witherell: Yes, certainly John. There is going to be a little lift in top line. We had some temporary vacancy that fills up in the fourth quarter, but the big story is really recovery. As we mentioned, there was a dampening effect on same store, which is attributable to higher-than-anticipated real estate taxes and maintenance expenses, and to a lesser extent, insurance, all of which are largely recoverable. And, you know, as we’ve been rolling these legacy leases, Jim’s team has been doing a really good job of converting those to more favorable lease types. And so we’re going to see that pick up as we complete our final [Indiscernible] in the fourth quarter. And then, prospectively, we’re going to see improvement in recoveries in 2024 and beyond.
John Kim: On your discussion of ‘24 leasing activities so far and the lease spreads that you’ve achieved, you guys mentioned that in ‘23 you started off at a more modest level and then those cash leasing spreads accelerated during the year. I was wondering if you could comment on that dynamic. Is that a function of the mix of renewals versus new leases a year ago? And do you see a similar acceleration in ‘24 mark-to-market?
Jim Connolly: Yes, that is exactly it. Most of the renewals kick in, and some of them have fixed rate renewals. I think the number is around 40%-something of the existing renewals had fixed rate leases. So those kick in early and they start the rate off at a low level and then as we get more market rates included the overall rate goes up. Thank you.
John Kim: Okay if I could squeeze one more in, the 4.9% cap rate you got on your disposition, I know that went to a user, but what was the mark-to-market of that asset?
Jim Connolly: Mark-to-Market in Chicago is in the mid-teens.
