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Operator
the Fed really stops, you know, raising. Each time the Fed literally, there was a feeling that the Fed's going to stop raising and possibly bring it down. Our stock shot up several times. It happened historically, in the recent historically, shot up in towards the 11s and even towards the 12s not that long ago. So I think when we come back to a normal number, which will be there, we could get back into the buying, growing. But right now I want to reduce debt, reduce the floating debt, get our leverage in order. And when we start buying again, I like to buy for more equity than debt to keep us very focused on reducing our debt in the company going forward. So I want to have deals that are mostly equity out there and with some debt, but mostly equity at a higher percentage to keep Keep reducing the debt.
Keep
Okay. That's helpful. And then, Bob, if I'm looking at it and doing my math correctly, I think your line's at SOFR plus 150. So call it six and a quarter, six and a half, depending on the day, which is roughly in line where the expected disposition proceeds are being. So there shouldn't be really any sort of earnings impact from the dispositions at this point?
Bob
That's fair, Rob. Yes.
Keep
Okay. And then last one for me, you guys talked earlier about 85% to 90% expected retention on the 23 rollover. That would apply sort of 35,000, 40,000 square feet not renewed. Is that one or two bigger tenants not renewing, or a bunch of little 3,000, 5,000, 7,000 square foot guys that encompass those 66 leases that are expiring this year?
Bob
It's more of a lot of smaller ones than any individually significant tenant that's making up that delta. And I think with that forecast that we've said, and it's consistent with what we talked about in our Q4 call, I think we are obviously looking at opportunities to improve on that and to, again, do better than what we're forecasting. But I think that's how we're looking at it today. But it is It is predominantly a lot of smaller leases, 5,000, 10,000, 15,000 square feet, you know, individually that make up those ins and outs.
Keep
Okay. And are those, the 5,000 to 15,000, are those easier for you guys to lease to find a replacement tenant for than the bigger leases or people wanting the entire building type of thing? And if you had an empty building, that would be easier to lease than... a bunch of 5,000 blocks.
Operator
The little, the little ones, the little ones have more turnover, uh, because they haven't had as much investment in them as the big ones. And the indications from our big ones is, you know, right now we're doing very well and we're doing very well into 24. Many of them are even talking to us now on the big side, on the little side. Uh, yeah, you, you could replace those easier. Um, But they also leave easier because when you have a full building, they put a lot of money into their full building, and it makes it very difficult economically to really move. Whereas for a smaller one, economically, it's much easier to move. And we have some multi-tenants now, a little bit more than we had before. But we expect to get them leased up, and we expect to stay within the target range that we set.
Keep
Okay, that's helpful, guys.
spk05
Thank you. Appreciate the time. Our next question comes from the line of Austin Werschmitt with KeyBank Capital Markets.
Austin Werschmitt
Please proceed.
spk02
Great. Good morning, everybody. Apologies if anybody, if any of this has been covered, the line dropped a little bit ago. But I'm just curious on the disposition front and sort of these deals you're seeing in that low six, even sub six percent range. Who are the active buyers that are – what types of buyers are paying for deals in sort of that low-6, sub-6, 6% range today?
spk05
It's the private equity buyers for the most part.
Austin Werschmitt
In some instances, they're the net lease REITs, but for the most part, it's the private equity buyers.
spk02
Got it. And any sense how much leverage they're putting on deals today?
Austin Werschmitt
My sense of it is they're getting – so there is a decision that they're making whether or not or how much interest only they want to have. They are able to get 70%, but you don't get a lot of interest only term with that. So some are choosing lower, so 50%. And some have a strategy of even lower or even some are coming in with a lot of equity with the thought of refinancing later. But for the most part, everyone's sort of shooting for that 50, 60%. Got it.
spk02
No, that's helpful. And then just curious, given sort of the progress you've made at this point on the disposition front, are you still evaluating joint venture opportunities and does it make sense to have a vehicle in place to the extent, um, you're in a position that, you know, there, there are attractive deals that come up and that would be a better vehicle maybe to, to execute, you know, through and, and limit the amount of equity that you're, you're putting into deals.
Austin Werschmitt
Sure. I mean, those conversations are ongoing. Uh, you know, we've been having those conversations, uh, for the past three, four months. Um, but you know, it's, it takes a while to put these things together and, uh, we're, uh, We're still early in that process, but it's something that we're definitely entertaining and having active discussions on that front.
spk02
And then just last one for me, you know, on the OP unit front, you know, given you've kind of changed your, you know, tone a little bit on the acquisition side for this year, recognize the cost of capital isn't as favorable as it was at one point last year, but what are those conversations like on potential OP unit deals? I mean, are, are, you know, sellers receptive to doing OP unit deals or, um, you know, what, what, what kind of, can you give a little bit of flavor of, um, you know, the willingness of sellers to take OP units?
Austin Werschmitt
Uh, it, it, it tends, you know, I, I find it hard to predict. Uh, it seems that, um, I'm inclined to think that in this environment, there's going to be more interest and more demand for transacting with us with OP units, as evidenced by the fact that we just did a transaction with OP units. It ultimately comes down to very unique and idiosyncratic decisions and context of the seller. It's a wealth management strategy for them. So there's no situation is the same is what I'm trying to say. But I am inclined to think that right now the 1031 exchange market is not what it was before and the financing is more difficult for these sellers. So I don't think it's Something that's going to happen quickly, but I would expect to see some more transactions given the fact that it's a very seamless transaction and one that makes sense for these doctors that are looking to find a tax strategy that works for them. But I mean, thus far, there has been no clear trend.
spk02
Is there any deal size that you're seeing available in the market that you're targeting today?
Austin Werschmitt
So we continue looking for the same types of deals that we've bought in the past. I'm not sure I totally understood the question.
spk02
Given the nature of OP units, I'm just curious if those are smaller deals today that are more attractive or, as you said, more consistent maybe with what you've done historically.
Austin Werschmitt
It would be more consistent with what we've done historically. I mean, to the extent that there's an opportunity to transact larger deals with OP units, I mean, of course, we would be interested in doing that. Those tend to be more rare. Historically, it's been the smaller $5 million, $10 million deal where the physicians have a very low tax basis and they're attracted to the OP unit structure for that reason.
spk05
Understood. Thanks for taking the questions. Yes. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. There are no further questions at this time. I'd like to turn the call back to management for closing remarks. I'd like to thank everybody for joining us and have a good day. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation and have a great day.
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