Ken Bernstein: So, and we had to benefit a couple weeks ago of getting together with a big chunk of our retailers for meetings in the west coast. There’s some retailers that got a huge COVID boost and probably are pausing think of some of the online home furnishing retailers and others. But for the most part, retailers in terms of their long-term expansion plans are full speed ahead. The struggles for the retailers is getting stores open, getting HVAC units dealing with supply chain issues. And that was really more of their concern than slowing down openings. But if I were to guess where you might see some of that slow down, it could be in home furnishings, possibly electronics, but then there’s a lot of other folks showing up.
Operator: Our next question comes from the line of Craig Mailman with Citi.
Craig Mailman: John, I just want to confirm a couple things. So you said 125 basis points for Bed Bath and Regal, right above and beyond the 150. And if Regal was already kind of money good, it seems like, and you already released Wilmington, so basically that 125 relates to just the 555 9th location. Is that a fair way to think about it?
John Gottfried: Yes. SoHo, Craig, what I would say is that when we look through all of our, and I wanted to make it simple. If we look at all known exposures, we look at inclusive with the 555 9th saying known exposures throughout our entire portfolio would make up that 125 on top of just the general reserve, so inclusive of the 555 9th plus those when we go through 10510 n in our portfolio. For instance, Wilmington, Delaware, John still will have, even though we have a signed lease, Greg, we’re going to have downtime. And that’s part of that number.
Craig Mailman: Because I thought that was a bad debt, I guess I wouldn’t consider that bad debt. So you’re including downtime in that as well, not just credit risk. So that’s right. If I think about 2.2% of ABR is — and the portfolio at the end of the year, kind of, what’s the breakout between 555 9th in Wilmington?
Ken Bernstein: And just to be clear, and to make things a bit foggier, it’s not just Bed Bath & Beyond. We have a de minimus amount, but it adds up of Circuit City and there are others. So, I don’t think it would be productive, John. You can take a stab at it, but I don’t think it’s productive to point to just one or two of the properties. It’s spread, it’s managed, and we’re thankfully, as evidenced by Brandywine, we have backup leases into it.
Craig Mailman: Well, I guess I’m just getting that Ken, what’s the breakout? Is it like 70:30, 60:40 between the 2.2 of ADR in those, the two leases for Bed Bath specifically?
Ken Bernstein: John, if you want, I don’t know that we want to get into that level of color bigger than a bread box. How do you
John Gottfried: Yes, no, and I think Craig, not just being elusive, I would just say that within the 275, we view that as very conservative between the two because we really don’t know in terms of when we’re getting it back. But as we’ve said, if we get it back, we will not be adjusting our guidance forward. I think, we’ll, rather getting into lease by lease. I think we’re very comfortable at the 275 all in.
Ken Bernstein: You should assume we have a conservative outlook, meaning we’re going to recapture Brandywine as soon as we can. We are going to recapture the upper level, if not the entirety of 555 9th is that those are in our forecast. If there are unforeseen bankruptcies, different story, but there we have 150 basis points, whether it’s mom and pops or otherwise. So, we think we’re prepared for whatever the next few quarters has in store.
