David Simon: Sure. Yeah, I think the — it’s a little bit dependent upon the real estate. So, and what we’re trying to accomplish and what the benefits of that real estate are and where the market is for that. So, for instance, when we build a new residential apartment house, we look at kind of where the value and the cap rates for that are. They may be obviously lower than our own, but to the extent that we feel like we might sell it and make the arbitrage, we’ll do that. Again, if we’ve got an asset that’s a 6% cap rate, we’re building to an 8%, that’s creating value. On the other hand, if we have an 8% asset that we’re building to a 6%, it ain’t going to happen. So there’s no — we have themes. We have points of view. But just like anything else, every transaction we do, every redevelopment we do really is grounded by what we’re trying to accomplish with that real estate.
So — but overall, again, like I said earlier, we’ve got to push it higher because, our cost of capital regardless is up across the board. So we don’t have the luxury to build dilutive deals. And as you know, we’ve never really bought dilutive. We’ve never really built dilutive. And we certainly don’t anticipate in doing that today. We’ve always had a spread to our financing and to the quality of what we built. We expect that to continue but that — obviously those thresholds have been raised.
Haendel St. Juste: Thank you.
David Simon: Thank you.
Operator: Our final question is from Juan Sanabria with BMO Capital Markets. Please proceed.
Juan Sanabria: Saving the best for last. I love it. Thanks for the time. I’m just curious if you could comment on kind of the watch list you’ve commented about the consumer, but maybe what the bad debt has been here to date with the historical levels is in your perspective as you think about ‘24.
David Simon: The watch list on retailers?
Juan Sanabria: Yes sir.
David Simon: Yeah, it’s relatively low. There are a couple that were there today that probably weren’t there last year. Obviously I’m not going to name those. So it certainly hasn’t grown all that much, but there are one or two retailers that we’re paying close attention to. And I probably wouldn’t have said that last year. So I think that — I mean it’s not a very good answer, but it’s probably the best way to explain it without naming names. But there are a couple on that list today that didn’t exist yesterday. But they’re not 10 names, they’re a couple. Brian, you want to add anything?
Brian McDade: No, I think that’s right, David. It is certainly expanded, but by only two or three names. And it’s at a relatively low point relative to history.
David Simon: Yeah, and I want to just confirm with everyone that that is, as you look at our, what page is our top tenant list on?
Brian McDade: It’s on 22.
David Simon: 22? It’s certainly none of the category that is in our top 10 or top 20. So — and as you know, our department stores don’t pay — really don’t pay all that much. Well, you have the rent there in terms of what they pay.
Juan Sanabria: Thank you.
David Simon: Thank you.
Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Mr. Simon for closing comments.
David Simon: Well, thank you, and we finished a little bit earlier. So I think, enjoy the rest of the evening.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
