Alan Roth : Ki Bin, it’s Alan. I would look to our pipeline to answer that question and tell you that it’s still full with a tremendous amount of activity that’s following on the heels of a really strong 2022 year. So — by and large, as we said, at 95.1% leased, we’re setting our eyes higher, and we believe we can and will get back to 96%-plus and the quality space that remains will certainly allow us to do that coupled with the great merchandising activity that remains in our pipeline.
Ki Bin Kim : And as you’ve reached 95% and on your way to 96%, like you mentioned, what do you think that means for lease spreads going forward? I know it’s not always linear, meaning the more you’re occupied, the higher spreads you get, but just trying to understand that dynamic a little better.
Alan Roth : Yeah. I think we’re shooting for high single digits is kind of how we look at that, Ki Bin. Feel again, really confident in doing that. But as you know, there’s a lot of levers that also go into that cash rent spread and that includes embedded rent steps as well as our approach to how we spend our capital. And so collectively, again, I think we feel confident with the trajectory and the path that we’re going down.
Ki Bin Kim : Okay. Thank you.
Operator: Thank you. Our next question is from Greg McGinniss with Scotiabank. Please proceed with your question.
Greg McGinniss : Good morning. I realize it hasn’t been that long since the Bed Bath store closure announcement, but I’m hoping you might have a few points of clarification. One is on — you discussed higher rents, just curious how much higher? And then how many break backfills are you looking at versus demising and what type of downtime should we expect on those?
Alan Roth : Yeah, Greg. No fun to be talking about bankruptcies again. But we have 10 stores that do remain that represent 50 basis points of ABR. We have five stores that were on the closure list. And again, we feel really good not only about those five stores, but the totality of whatever may come of the Bed Bath portfolio. From a mark-to-market perspective, we think we’re in the 15% to 20% range. And I think when you think about bankruptcies that have happened in the past such as Sports Authority, Toys “R” Us, Stein Mart, those were 40,000 to 45,000 square foot stores, and the Bed Bath stores are generally in the 30,000 square foot range. And so that really provides a much wider pool of interested users that, for the most part, will not require downsizes or splits, which again, I think will play a part in your capital question.
We are negotiating deals for all of our known closures. And in some instances, we’re even running what I’ll call an RFP in the interest of appropriately managing demand and relationships. But time will tell. They obviously just recently announced that equity raise. So we’re staying close to it, and we’re staying active and aggressive on all of our spaces.
Greg McGinniss : Okay. And one follow-up on you mentioned the developers facing financing challenges and those who might end up doing deals with. I’m just curious kind of how big of an investment are you looking at on some of those assets? And how close are you to getting any of those deals done?
