Jim Taylor: Yes, certainly. But there is no real surprises. The weaker and struggling retailers are known to all, you can see their issues coming well in advance, part of why Brian and the team are way ahead of that and working with tenants to pre-lease a lot of this space that we expect to get back. But there is no kind of persistent categories, it’s really more retailers who had persistent problems. And the great merchants continue to thrive and not only are they thriving, but they are putting more-and-more importance on the central role of the store plays in a multi-channel format. So it’s less category driven other than perhaps movie theaters and much more participants driven.
Operator: The next question comes from Linda Tsai with Jefferies. Please proceed. Linda, your line is live.
Linda Tsai: Sorry about that. What’s your view on TIs in ’23 and versus ’22?
Jim Taylor: We’re going to stay disciplined. I mean, look at our net effective rents, we’re going to use that tenant competition to not only drive rate, but to drive lower TI. So that’s been our approach and we do actually disclosed here, what the net effective rents have been, which sum down. But I think that, that’s important and you can see, there’ll be a quarter or two of movement, some looks high, some looks low, but when you look at it over several quarters, you can see that we’re holding pretty firm there.
Linda Tsai: Got it and then on grocers with Amazon closing some fresh and go stores, will you see any impact and then to the extent, Kroger and Albertson’s sell 250, 300 stores. What’s the read-through for your portfolio?
Brian Finnegan: Linda, Hey, this is Brian. So I just on Amazon, they’ve been a great partner of ours and we were really excited. In the fourth-quarter, we were able to add and we announced our WholeFoods in suburban Philadelphia, we’re seeing great leasing traction on the WholeFoods locations that we purchased in Houston and Chicago. Last year, they’re a great operator, they drive a tonne of traffic. On the fresh side, look Amazon has publicly announced a pause, which we think is prudent for them to get it right, they did open this chain in the middle of the pandemic. But overall, we’re really pleased with the partnership that we have with both Amazon and WholeFoods. And then as it relates to Kroger Albertsons, look, there’s not much new to report.
I know there was a media report out there regarding a number of store closures, there was always going to be a certain number of divestitures as part of this. But I’ll just remind everybody is, even Kroger and Albertson’s said this is going to be a long regulatory process, they said in the initial announcement it’s going to be early 2024. And we feel-good about our fleet of stores no matter what the outcome is, if you look at our Kroger and Albertson’s fleets across the portfolio, we’ve got great locations in places like Atlanta and Denver and Dallas, Southern California, Cincinnati, just a great fleet and both fleets have been significantly reinvested in over the years. So we think a merger would be good for both companies will allow them to continue to reinvest in those stores.
But again, we feel pretty good about our fleet no matter what the outcome is.
Operator: Thank you. At this time I would like to turn the floor back over to Stacy Slater for closing comments.
Stacy Slater: Thank you everyone and have a great week.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. And thank you for your participation and have a great day.
