Q4 2024 CTO Realty Growth Inc Earnings Call
I don't have the initial term of 30 months and initial fixed interest rate of 12.15%. Additionally, this development neighbors are shopping center known as the collection of fore sight.
And we have the right of first refusal to purchase it.
In December we acquired were not apply there for $17 million expanding our presence in the <unk>.
Tampa market.
74000 square foot shopping center anchored by a high performing publix.
Is it a densely populated and growing retail market in Tampa Metro area.
Our investment activity over the full year of 2024 increased our portfolio by 1 million square feet or 26% to $4 7 million square feet significantly we were able to complete our first investment in Charlotte North Carolina market, while further expanding our presence in both Orlando and Tampa.
With our growth in 2024 I wanted to note that our total enterprise value rose by 33% to approximately $1 3 billion.
We ended the year with significantly reduced leverage and over $200 million liquidity.
Now transitioning to leasing during the fourth quarter, we signed 68000 square feet of new leases renewals and extensions, bringing full year leasing activity to more than 450000 square feet and an average rent of $24 seven per square foot on a comparable lease basis, we signed 300.
52000 square feet for the full year, 2024, and a positive cash lease spread of 23% and an average around a $23 36 per square foot.
We believe that our strong comparable leasing spreads are a further indication of the strong tenant demand for our high quality properties within our strategic markets.
Significantly our signed not opened leasing pipeline now stands at $5 $2 million.
Representing almost 6% of in place cash rents.
The rent commencement associated with this pipeline will be weighted towards the second half of 2025. Accordingly, we expect to recognize just over 50% of that in 2025 and for 2026 will receive the full benefit of it.
Moving to the recently announced retailer bankruptcies, given that all of our impacted leases were for spaces with meaningfully below market rents and embedded value. We have been proactive in working to quickly regain them late in the fourth quarter. We successfully worked through the court process and regain floor space.
They were occupied by our two big lots, one times and an American freight. Furthermore, we are now working on agreements to get possession of our three party city spaces and three Joanne spaces early in 2025.
Notably we already have LOI are negotiating leases with tenants for a majority of these spaces. We believe this is a testament to our favorable markets and locations with drive tenant demand.
Based on current lease negotiations, we currently estimate the potential re leasing spread for these spaces could be between 40% and 60%, while we're making rapid progress on leases with new tenants. It simply takes time for tenants to obtain permits complete their build out.
Accordingly, we expect rent from new tenants to commence during 2026.
We're also in negotiations with several anchor tenants for our 10 10 acres of undeveloped land adjacent to our shopping center and collection of foresight.
We're targeting to have this property contribute to earnings by late 2026.
The opportunity for this property combined with the re leasing opportunities related to the recent retailer bankruptcies and our signed not open pipeline should provide strong tailwind for 2026 earnings growth.
As we look ahead, our acquisition pipeline is robust and we currently anticipate closing one or two acquisitions in the near term. We're excited about these opportunities and the ability to continue our portfolio growth at the high quality investments at attractive yields in 2025 and look forward to providing more information to you soon.
Phil: And with that I will now hand, the call back over to Phil.
Phil: Thanks Scott.
Phil: As John discussed, we had an excellent fourth quarter, concluding a strong 2024, starting with the balance sheet. During the fourth quarter. We raised net proceeds of $33 million at a weighted average price of $19 77 per share.
Phil: It's part of our total net proceeds raised under our ATM program to $165 million for the full year at a weighted average price of $18 79 per share to place. This in context. The capital we raised represents over 40% of our common equity market capitalization at the beginning of 2024.
Phil: This capital help desk to improve net debt to EBITDA by over a full turn in the new year at six three times.
Phil: There are 2020 for ATM activity, along with closing $100 million term loan in September 2024.
Phil: And that's with capital to significantly grow the company and importantly.
Phil: Ended the year with $222 million of liquidity and a balance sheet to support continued growth.
Phil: In 2025, we do have one debt maturity, our convertible notes with an outstanding face amount of $51 million and the stated interest rate of $3 seven 8% mature on April 15.
Phil: Have recently sent notices to the holders of the convertible notes of our election Thats I believe noticing cash accordingly, but the terms I didnt note the cash settlement price or not fully fixed until maturity and will change primarily based on our common share price.
Phil: However for reference purposes, a $20 share price is equivalent to approximately a $75 million settlement of all of the outstanding notes at maturity.
Phil: Moving to operating results.
Phil: <unk> was $14 2 million for the fourth quarter at $3 3 million increase compared to the $10 $8 million, we put it in the fourth quarter of 2023.
Phil: On a per share basis core <unk> was <unk> 46 in the fourth quarter of 2024 compared to 48 in the fourth quarter of 2023. This change of <unk> <unk> per share is primarily the result of.
Phil: A significant reduction in leverage that I discussed earlier for the full year 2024 core <unk> was $1 88 per share compared to $1 77 per share in 2023, representing 6% growth.
Phil: Now on the guidance for 2025, we are establishing a core <unk> range of $1 80 to $1.86 per share and a <unk> range of $1 93 to $1 98 per share.
Phil: The assumptions that support our guidance are detailed in our earnings press release, but I would like to provide additional context regarding two matters.
Phil: First settling our convertible notes for cash will cost approximately <unk> <unk> per share in 2025.
Phil: Due to this settlement price being at a premium to the face them out and rolling the relatively low coupon rate at the convertible notes to our revolving credit facility right.
Phil: Second page eight of our updated Investor presentation posted last night includes a summary of the tenths basis, John discussed earlier on the call.
Phil: Our guidance includes a <unk> 10 per share impact related to these phases based on the assumptions that we have a gain possession of all of them around the end of the first quarter of 2025.
Phil: With that operator, please open the line for questions.
Phil: Thank you if you'd like to ask a question. Please press star one one.
Phil: Your question has been answered and you'd like to remove yourself from the queue. Please press star one again.
Speaker Change: Our first question comes from Gaurav Mehta with Alliance Global Partners. Your line is open.
Gaurav Mehta: Thank you good morning.
Gaurav Mehta: I wanted to follow up on your comments around convertible notes and gets clarified so that settlement you guys are expecting that with cash and debt.
Gaurav Mehta: The expectation of share issuance with that conversion rate.
Gaurav Mehta: Yeah, Hey, this is Phil we have given notice that our intention to settle in cash.
Gaurav Mehta: So contractually that's the only REIT, we have if we wanted to settle some in shares that generally that note holders would still be open to that and we could do an exchange with them, but at this point, we anticipate settling it in cash.
Gaurav Mehta: Okay, and so the cash the source would be the line of credit. Yes. Initially go on the line and then we'd be turned out later.
Gaurav Mehta: Okay.
Gaurav Mehta: Second question on the guidance I was hoping if you could provide some more color on your 2025 outlook between acquisition than structural investments what kind of mixture of expecting.
Gaurav Mehta: Yes, so right now presently we're seeing just a core acquisition opportunities.
Gaurav Mehta: Don't have any structured investment opt.
Gaurav Mehta: Opportunities kind of in front of US right now, but we expect to see some later in the year, but right now.
Primarily core acquisitions.
Gaurav Mehta: Okay, and then lastly on the same property NOI guidance Kenny.
Gaurav Mehta: Can you provide some color on how you expect that good trend from quarter to quarter.
Gaurav Mehta: Yeah, I mean first I would just say I would always kind of focus on the annual number there because like 150000 Thats a small pool of 150001 quarter is like 1%, but generally pretty even its going to bump up and down a little but it'll be generally pretty even and then hopefully in the fourth quarter. It will start to pick up a little more.
Gaurav Mehta: Okay. Thank you that's all I had.
Speaker Change: Thank you.
Gaurav Mehta: Yes.
Speaker Change: Thank you. Our next question comes from Rob Stevenson with Janney Montgomery Scott. Your line is open hi, good.
Rob Stevenson: Good morning, guys.
Rob Stevenson: Slide eight in the deck was very helpful but.
Speaker Change: Question for you John I understand you say that half of the re leasing would impact 25, and it should get the full impact of the four to $4 5 billion of new rent in 'twenty six just trying to jive that with the 10 cents a share in the guidance.
Bill: It's bill.
Speaker Change: And but what he was talking about 50% in <unk>.
Speaker Change: 25 talking about our signed not open pipeline, which is separate from page eight page eight is just these recent retailer.
Speaker Change: Bankruptcies and vacancies and that's separate from that on page eight all of that we're anticipating.
Speaker Change: Come on line in 2006, and then separately the signed not opened pipeline participating on picking up about half of that in 'twenty five and then the full impact of that in 2006 to add okay.
Speaker Change: The pickup of these vacancies.
Speaker Change: Okay. That's helpful.
Speaker Change: And then you have one of your restructured investments for waters Creek matures.
Speaker Change: Maturing in April.
Speaker Change: What is that looking like in terms of Conversate recent conversations with borrowers that have repay is that an extend how is that likely to be resolved and if you are getting the money back expected to get the money back then.
Speaker Change: How is that market. These days to replace that or are you going to windup, bringing the structure investment portfolio down a little bit in size.
Speaker Change: Thank you.
Speaker Change: With the borrower.
We go in.
Speaker Change: Yes, they are.
Speaker Change: They are doing great on that property and we're hoping that we stay in there that we expect that we'll have probably a short term extension.
Speaker Change: So what it means short term, maybe a year or something like that but we'll see but.
Speaker Change: Having said that given it's a high quality grocery anchored center.
Speaker Change: Our pricing there if we werent to get it back we anticipate that we'd be able to reinvest at a higher yield.
Speaker Change: And I guess.
Speaker Change: If that staying if that's likely to stay in the portfolio and nothing else comes out in the interim.
Speaker Change: How aggressive should we expect you guys to be in expanding the $107 million portfolio today is that likely to end 2025, and 150 pushing 200 is this the sort.
Speaker Change: Sort of upper end.
Speaker Change: Say you know maybe add 42, the balance is something to expect.
Speaker Change: Yes.
Speaker Change: It's something that.
Speaker Change: We got it we got to imagine we can kind of grow that by.
Speaker Change: Our bounds of $50 million this year and sort of.
Our process.
Speaker Change: Okay. That's helpful. And then last one for me can you talk about how your Amcs are performing these days is that youre starting to get back to some more robust releases with the Captain America movie and stuff like that how are they performing versus where they were in the <unk>.
Speaker Change: Past and.
Speaker Change: How much of a concern are they for you at this point in the cycle.
Speaker Change: Yes.
Speaker Change: A lot less concern because they've had they had a good year last year and as you mentioned and the Captain America has been doing very well.
Speaker Change: Especially in these locations.
Speaker Change: So these the agencies that we have our top performers in their market.
So.
Speaker Change: We're actually in Charlotte the last acquisition.
Speaker Change: See it is not.
Speaker Change: Something that you would find to be exciting experience when you drive up to it.
Speaker Change: Going to page and add lighting everything even though.
Speaker Change: It doesn't look great it does terrific.
Speaker Change: With someone that lives in the Charlotte area and they mentioned that they go to the state or even though it is out of the way because let's say.
Speaker Change: The most kind of convenient for them.
Speaker Change: To get in and out and so.
So long story short all of them are performing very well.
Speaker Change: The box office, just as the macro backdrop has been very good for them.
Speaker Change: Hey, Thanks, guys I appreciate the time have a great weekend.
Speaker Change: Great.
Speaker Change: Thank you. Our next question comes from Matthew <unk> with Jones trading your line is open.
Matthew: Hey, good morning, guys. Thanks for taking the question John I believe you mentioned something about those 10 additional acres next year for sites that are up in that area could you remind me again, what the plan was with that.
Speaker Change: Yes so.
Speaker Change: Originally when we bought it we had a tenant right off the bat, who started paying us sort of a licensing fee is it really an option sort of fee.
Speaker Change: They dropped it as they were having trouble with their other operations in other locations I wanted to scale back their expansions and so we obviously took it back and now we are discussing with several different large tenants that would be very.
Speaker Change: Yes.
Speaker Change: And very complementary to the collection as far as you know a great draw and bringing a lot of visitors to the location. So we're we're in negotiations right now so hopefully and expect something and let's just say in the next three months.
Speaker Change: And then this is something that would probably come online.
Speaker Change: Whether it's late 2026 or 2027.
Speaker Change: But yes, it's something that we wanted to highlight because we're starting to kind of get closer to a deal there.
Speaker Change: Yeah. That's helpful. And then I'm guessing that would kind of include the first right of refusal similar to others and then as a follow up to that.
Speaker Change: It's probably a little ways away, but do you ever anticipate closing on some of those right to refusals and taking those properties.
Speaker Change: Yes, so on that one just to be clear on the 10 acres, we own that property. So we would we could build it and have the lease ourselves and not have a virtual RFP it'll it's not.
Speaker Change: An outside developer.
Speaker Change: It could be an outside developer, but right now we're talking to tenants on a primary basis and then with regard to your question on other deals where we've done loans, where we have a furniture a refusal yes, I think the whole foods would be that that is across the street. There a collection would be high likely that we would buy that.
Speaker Change: Because it's such a complement to collection.
Speaker Change: Got it that's helpful. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question comes from RJ Milligan with Raymond James Your line is open.
RJ Milligan: Hey, good morning, guys.
RJ Milligan: I appreciate the detail on slide eight that's helpful.
Phil: Curious Phil for the guidance.
Phil: <unk> is baked into additional potential bad debt sort of you obviously highlight the known or expected vacancies, but I'm curious what you are baking into guidance for unknown.
Phil: Yes.
Phil: At all of the known largely that's on slide eight and that's just exclude it from 25 and then after that as far as the tenants that are in place, it's pretty much our general 1%.
Nothing different from.
Phil: A historical run rate on that.
Phil: <unk>.
Phil: To answer your question.
Phil: Okay.
Phil: And then for the I know you guys mentioned for those 10 boxes do you expect the rent to commence in 2026 can you just give me an idea of the expected timing of that rent commencement in 'twenty six.
Phil: Yeah.
Phil: We're hoping to have most of them online.
Phil: In the first half of 'twenty.
Phil: The majority of them there might be two or three depending on timing that could be the latter half.
Phil: But assuming we can I mean, we are working really hard to get them back as soon as possible and get them released.
Phil: And if we can get them back sooner than we would hope to have them all.
Phil: Early in the first half or in the first half, but there could be a few boxes that might take a little longer to get a hold of it and then those could be delayed to getting them online in the second half.
Phil: But we would hope to have a majority of them on up and paying rent in the first half and a little bit of a J as you know we do have opportunities to do 10.
Phil: That could come in faster, but would not be as accretive to the whole center.
Speaker Change: Not us.
Phil: Good.
Phil: And so where we're willing to kind of take a longer.
Phil: Lease delivery rent commencement for higher quality tenants that just takes a lot longer.
Phil: That's great.
Phil: Hey.
Phil: And thats helpful and that sort of leads into my last question, Jon which as you know.
Speaker Change: Who are the tenants that you're talking to that are interested in those spaces and I'm. Just curious how you think about the overall value creation as you get those new tenants into the space.
Speaker Change: Information is definitely low hanging fruit for sure I mean think about.
Speaker Change: Sanford in Orlando that we bought a year ago.
Speaker Change: Roughly an eight cap.
Speaker Change: You have a big lots coming back.
Speaker Change: Roughly $12 a square foot and we're talking to a tenant that is investment grade at basically double that so I mean, just the not only the income accretion, but jen the cap rate compression of having that credit versus when we bought it with big lots. So.
Speaker Change: That's across the board on a party city.
Speaker Change: <unk> fills.
Speaker Change: Our enterprising tenants that are growing that.
Speaker Change: Kind of darlings of wall Street's sort of thing. So we're very excited about the mix that we'll be able to backfill here.
Speaker Change: That's helpful. Thank you guys.
Speaker Change: Thanks.
Speaker Change: Thank you. Our next question comes from John Masako with B Riley Securities. Your line is open.
John Masako: Good morning, maybe kind of going back to slide eight the $9 million to $12 million of Capex.
John Masako: I mean, how does that kind of impact the capex outlook for <unk>.
John Masako: <unk> 25 versus stay with kind of more run rate or what you were doing in 2020.
John Masako: Five versus what you're doing.
John Masako: 2024.
John Masako: Yes, I mean, so thats incremental.
John Masako: So what we are kind of a regular run rate there.
John Masako: So it would be on top of that.
John Masako: John and the way to think about that Capex to as it were on the lower end of that will be on the lower end of the spreads there like 40% and if we're on the higher end.
John Masako: <unk> will be on the higher ends of the spreads there.
John Masako: A much larger and mark to market, but that is kind of a onetime incremental to get these boxes up and running again.
Speaker Change: Okay, and how is that in mind, I mean, what lease duration that youre kind of talking about today with potential replacement tenants just given there is a decent amount of capex going into these boxes.
Roughly 10 to 15 years.
Speaker Change: So the so good good lease duration and good credit behind.
Speaker Change: Behind them.
Speaker Change: Okay appreciate that and then.
Speaker Change: On the.
Speaker Change: On the kind of.
Speaker Change: Okay.
The re leasing side of things.
Speaker Change: The timing Youre seeing.
Speaker Change: Typical of what you would see from vacancies may be kind of smaller vacancies you're seeing in that portfolio. Historically I know you talked a little bit of a variance.
Speaker Change: Versus maybe some smaller tenants can come in faster, but the music.
Speaker Change: Indicative of anything in the kind of macro environment or are specific to these assets or is that timing just kind of typical if you were to see other vacancies going forward.
Speaker Change: Yes, it's definitely typical of the macro environment.
Speaker Change: With.
Speaker Change: These.
Speaker Change: Highly desired boxes.
Speaker Change: <unk> national tenants that we're talking to just have their normal pipeline of what they are delivering this year next year year's al. So it's yes, yes.
Speaker Change: If you want the higher quality tenants youre, just kind of getting into their pipeline and they just have a process. So it just takes more time now if you want to go the local route with a smaller operator, certainly it's a lot faster but.
Certainly we were looking at the total value creation of having higher credits in there.
Speaker Change: These centers.
Speaker Change: Okay, and then last one from me maybe broad strokes. If you don't have the exact number in front of me, but what we kind of same store NOI growth expectations have been for 2025.
Speaker Change: You weren't dealing with these vacancies.
Speaker Change: Yes.
Speaker Change: Three we're putting guidance out of one but.
Speaker Change: Would have been more in the two to three range.
Speaker Change: Perfect Thats very helpful and Thats it from me.
Speaker Change: Thanks.
Speaker Change: Thank you. Our next question comes from Craig Sarah with Lucid capital markets. Your line is open.
Craig Sarah: Yeah, Hey, good morning, guys.
Craig Sarah: Is that a lot of activity planned in 25 without any dispositions and I know youre comfortable running the company at higher leverage but is the plan to be leverage neutral or did you maybe frontload some equity in 'twenty four and you are willing to lever up.
Craig Sarah: Yes, I mean look where we want to have a trajectory on the leverage to go down clearly the converts are kind of.
Craig Sarah: <unk> unique situation this year.
Craig Sarah: Given that.
Craig Sarah: What we have kind of in front of us we feel like the acquisitions that we are seeing right now.
Craig Sarah: Our accretive even at the lower stock price levels. So.
Craig Sarah: Just depending on how things go remember when we say.
Craig Sarah: <unk> converts they are.
Craig Sarah: They are basically hedged against our stock so they will be covering on the stock. So so there should be a good backdrop and then hopefully.
Craig Sarah: Given the size of the company and the growth of what we did last year, we're getting closer to.
Craig Sarah: REIT index inclusion so if you look at the.
Craig Sarah: The Investor base that came in in December we're starting to get more of that.
Craig Sarah: Index buying as you can see <unk>.
Craig Sarah: Blackrock bought a lot in the quarter.
Craig Sarah: <unk> had some new rig dedicated come in so so we're starting to get that traction that we always wanted so I think the backdrop is really good for this year and so looking forward to kind of executing on on acquisitions that are going to be complementary and accretive.
Craig Sarah: See what we have in front of us.
Craig Sarah: Okay great.
Craig Sarah: Changing gears you know at the time of the Carolina Pavilion acquisition I think it was 93% occupied.
Craig Sarah: I guess as part of our underwriting process, where you are where you would lose.
Craig Sarah: Number of tenants in the fourth quarter or want to kick them out and was that mark to market opportunity part of the attractiveness of the purchase.
Craig Sarah: Yes, so I think.
Craig Sarah: <unk> mentioned that in the last.
Craig Sarah: Earnings call that.
Craig Sarah: When we put under contract Carolina Pavilion and by the time, we close we had three tenants basically go bankrupt and close their stores, which is highly unusual and most people would maybe.
Craig Sarah: That would be detrimental you dropped the contract, but actually it was in our underwriting that it came sooner of course on the closings, but the mark to market opportunity to have happened faster, which is so extraordinary for us that the excitement level for what that prop.
Craig Sarah: Bertie can do is pretty exciting so so.
Craig Sarah: And we have great activity as we mentioned on these boxes and in the process of.
Craig Sarah: Getting those tenants to backfill so.
Craig Sarah: The economics of those property area a totally different here.
Craig Sarah: 12 to 24 months.
Craig Sarah: Right.
Craig Sarah: And just one more for me.
Craig Sarah: Given the changes in the current administration and some job losses in these DC, how the folks that <unk> communicated any change you see regarding their development schedule or any of that thinking that sort.
Craig Sarah: No there there.
Craig Sarah: I mean, great activity on.
Craig Sarah: On the multifamily front on that project.
Craig Sarah: They are.
Craig Sarah: Do they have incredible amount of activity and demand for that land.
Craig Sarah: The Northern Virginia area as you know.
Craig Sarah: Loudoun County, the data center market has just been extraordinary.
Speaker Change: A lot of that contractors are out in the market to your to your point, but they are still such housing demand.
Speaker Change: There are no pumps at all along the road.
Speaker Change: Okay. That's it from me thanks, guys.
Great. Thank you.
Speaker Change: Okay.
Speaker Change: Our next question comes from Michael Gorman with BTG. Your line is open.
Speaker Change: Yeah. Thanks, John maybe just sticking with some of the discussions around acquisitions and some of your underwriting I'm curious if.
Michael Gorman: Maybe not yet, but if you think there'll be some additional opportunities in the acquisition market shaken loose by some of these recent retailer bankruptcies, where may be smaller landlords don't want to have to go through a re tenant them or don't want I'd have to go through another capex cycle are you seeing are starting to see any opportunities.
Michael Gorman: Because of these new vacancies in the marketplace for acquisitions.
Michael Gorman: We're not we're not seeing that I think were seeing almost the opposite I mean youre seeing.
Michael Gorman: And a lot of institutional capital starting to creep into this market and we expect.
Michael Gorman: It's kind of gotten out there in the market a little bit theres going to be probably a large trade that's going to be very complementary.
Michael Gorman: To one of our assets in the market.
Michael Gorman: Youre going to see some sort of dramatic acquisitions as youre seeing.
Michael Gorman: <unk>.
Michael Gorman: Pension sovereign capital migrate into the shopping center space I mean, obviously you saw the Blackstone ROIC.
Michael Gorman: Position closed and that was.
Michael Gorman: And I think we're all kind of lucky with the horrible Palisades fire and everything going on in California, you know, whether there be a situation there where that close like clockwork.
Michael Gorman: So youre starting to see.
Michael Gorman: Really that sort of way of a capital come in for the long term and as I mentioned that party cities in the big lots and all kinds kind of.
Michael Gorman: That's really opportunity versus headwinds because those tenants are at such a low low rents and did really nothing for.
Michael Gorman: Shopping centers and actually probably was a deterrent for some of the shopping centers. So there's more of an opportunity than a headwind.
Michael Gorman: Got it great and then I think I could probably tell just based on the capex expectations, but for any of the LOI as youre discussing with any of that add a grocer to an existing center or are these all non grocery tenants.
Michael Gorman: These are all non grocer, we had a grocer opportunity which.
Michael Gorman: But the grocer, we've just got to deliver it longer than we wanted to really sit around and wait for they they had a lot of a lot of things in their pipeline to to kind of get done first in and even though having a grocer in one of our shopping center have been great.
Michael Gorman: We felt like.
Michael Gorman: We're not buying green bananas.
Michael Gorman: Perfect. Thanks, so much thank you.
Michael Gorman: <unk>.
Speaker Change: Thank you. Our next question is a follow up from John Masako with B Riley Securities. Your line is open.
John Masako: Hi, just a quick one for me given some of the conversations on mark to market with rents whats the outlook for 2025 lease explorations I mean, just kind of noting.
Speaker Change: It's above your average cash rent per square foot, but everything's kind of a scope and a portfolio like this.
Speaker Change: Theres nothing Theres, nothing where there was a roll down situation everything's a positive and it's definitely not kind of the.
Speaker Change: The Mark to market, we're seeing in our in the page eight of our presentation, but there.
Speaker Change: Everything the trajectory is definitely up but theres no theres, no kind of drawdown as far as having.
Speaker Change: Higher rents rolling.
Speaker Change: Okay.
Speaker Change: Any like any kind of broad stroke ranges youre kind of looking at for this year.
Speaker Change: And lease expirations.
Speaker Change: I would say kind of the 10% range is kind of a good range to say plus or minus where those tenants are rolling too.
Speaker Change: If theyre coming if theyre coming out there.
Speaker Change: Market rents are at least 10% higher okay.
Okay.
Speaker Change: Very helpful. That's it for me thanks.
Speaker Change: Thanks.
Speaker Change: Thank you there are no further questions at this time. This does conclude the program. Thank you for your participation and you may now disconnect everyone have a great day.
Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
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