Whats the priority now—paying down debt or buying new properties?
Michael Glimcher: We’re looking at them equally. We want to continue to deleverage, to be in the middle of a 50 percent to 60 percent debt-to-capital range. We’re at the higher end of that range now. If we were going to raise equity to do a new acquisition, ideally half the money would go into the new opportunity and half would go to pay down debt. You recently bought out your partner’s 50 percent interest in the Scottsdale Quarter shopping mall in Arizona and completed the $245 million acquisition of Pearlridge Center in Honolulu. [Glimcher has a 20 percent equity stake in Pearlridge; the rest is owned by Blackstone Real Estate Advisors.] Are these joint ventures the model for future growth? I see us growing with partners, like we did with Pearlridge. We’re an equity investor, but we’re also the manager of the assets. We can leverage our platform by getting management fees and leasing fees, and we’re getting higher-quality assets with sales of $500 per square foot and 99 percent occup
