Brian Finnegan: Yeah, Anthony, this is Brian. It’s something that we continue to be encouraged by, I noted in my opening remarks, the depth of the new operators that we’re seeing in the restaurant space, real quality operators that have been focused on expanding their suburban footprint operators like Mendocino Farms, Urban Plates, CAVA, so we’ve seen a lot of depth of demand there. The mall side, we continue to see a significant number of tenants looking for off-mall, support is upping their off-mall program. JD Sports, who we signed this quarter in a former Tuesday morning space, Lululemon is expanding as well. So we’ve been pretty encouraged in terms of the new tenant pipeline that we’re seeing overall, as well as our core tenants, which continue to add significant store counts like those in the off price, general merchandise, home accessory sector.
So the demand overall has been fairly broad based, but we’ve been encouraged by what we’re seeing on the new tenant front.
Anthony Powell: Thanks. And maybe on revenues deemed uncollectible, as you noted, it was lower than expected this year. Why can’t it be below that, 70 basis points to 100 basis points next year, given kind of the strong environment we’re seeing?
Angela Aman: Yeah, I mean, look, we’re incredibly encouraged by what we’re seeing as it relates to collections across the portfolio. I think we are cognizant as we go into 2024, as Brian pointed out earlier, very healthy and resilient consumer. But there are lots of pressures in the current environment, including interest expense and capital availability and other things. But tell us, next year probably looks pretty similar to a normalized run rate, and that’s probably where we’re going to start the year, from an expectation perspective.
Anthony Powell: Okay. Got it. Thank you.
Operator: Next question, Ari Klein with BMO Capital Markets. Please go ahead.
Juan Sanabria: Hi, it’s Juan, not Ari. How are you? Just a question on yields in what you’d be looking to underwrite for stabilized yields for grocery-anchored or power centers in light of the increase in capital costs.
James Taylor: It’s a great question. And I think it’s really a two-part question. It’s not only the going in yields, but what you see is the growth and upside in those yields. So thinking about it from an IRR perspective, you really need to see IRRs on an unlevered basis with great visibility on growth with conservative assumptions as it relates to reversion, cap rates, and values. You need to see those in the high- single- low-double-digits to clear, we think, where the cost of capital was.
Juan Sanabria: And then just a quick follow-up, where do you think small shop occupancy can gravitate towards in your portfolio? And what’s the drag that the redevelopment is having on kind of the latest stats for the third quarter?
James Taylor: Yeah, the redevelopment has a drag of 10, 20 basis points overall on the portfolio. We think that as you deliver those reinvestment projects that you will get higher small shop occupancy than where the portfolio average is, we have a pretty clear view that that small shop occupancy can go well into the low-90s.
Juan Sanabria: Thank you.
James Taylor: Thank you, Bet.
Operator: Next question, Craig Mailman with Citi. Please go ahead.
Craig Mailman: Hi, guys. I just want to go back to the acquisition commentary. One of your peers has sold a significant amount of assets under contract. What they say is a 6.5. It seems like what’s in the market today is kind of what’s sellable? So I’m just kind of curious from your standpoint, what do you think timing is going to be when some of these assets kind of break loose that pricing starts to adjust to where maybe the public market is pricing market cap rates versus where the private market is kind of stuck at on maybe some of the better quality deals that can be sold today.
James Taylor: Mark?
