Brian Finnegan: Hey. This is Brian. It’s a great question. Look, we’re proud of what the team has been able to do. As you mentioned, we were over 13% last year. That’s now 8 consecutive quarters of renewal growth over 10%. As we continue to make improvements across the portfolio, as the environment continues to be strong, we expect to be able to drive renewals higher. But as I mentioned earlier on the call, it’s not just that initial renewal growth that we’re getting. We’re also renegotiating CAM clauses. We’re getting annual growth in those renewals. We’re getting flexibility in those renewals as well. So I think as you look on the whole, we continue to make improvements. But if you look at where we’ve been, I mean, we’ve continued to drive those renewal rates higher, you may see some fluctuations in a given quarter. But long term, we’re pretty encouraged by what we’re seeing overall, just in the rent growth space but particularly on renewals.
Anthony Powell: And one more maybe on anchor contractual ramp-ups. In another call, I think one of the other companies said that they’re still trying to make progress there and getting more anchors agree of those bumps. Where are you kind of in that process?
Brian Finnegan: It’s incremental progress. It’s maybe you’re not getting the 3% annual increases on every deal. Although, we’re getting it with some, with national tenants that we may not have gotten with before. But if tenants were used to that 10% initial increase, maybe you’re pushing that to 12.5%, maybe you’re pushing that to 15%. And the competition for space is allowing us to make those improvements outside of the very strong initial rate that we’re getting with our anchors. We signed anchor leases last year at the highest rates that we ever have. That rate continues to trend higher. So we are making marginal improvement. And again, I would hit to those kind of non-rent lease terms that we’re able to get in our leases with anchor tenants, whether that is freeing up our parcels, whether that is freeing up restrictions to allow more of the fitness uses or medical uses into the space.
So I think we continue to make marginal improvement. And the environment is allowing us to do that.
Operator: Our next question comes from the line of Ki Bin Kim with Truist.
Ki Bin Kim: When I look at your ’24 lease expirations, the average rent is a little bit lower than other years. Is that just a mix or should we think the lease price could be a little bit better in ’24 than normal?
Brian Finnegan: Yes, it’s somewhat of a mix issue. But if you look, keeping out the next few years, we have leases expiring, particularly for anchors in the high single digits, around $8 to $9. We’ve been signing those deals at $15 a square foot. So that gives us really good visibility in terms of our ability to continue to drive rate.
Ki Bin Kim: Okay. And just not to beat a dead horse here but going back to the credit loss reserves of 100 basis points, I think, in general, people just want to understand if some of these more high-profile at-risk tenants like a Big Lots or [Joe Ann’s] [ph], if they end up going bankrupt, if there is further downside to FFO. I think that’s ultimately what we’re trying to gauge. If you could provide any commentary on that?
Jim Taylor: Yes. As I mentioned before, just as we’ve always done, we believe we’re adequately provisioned for a wide variety of outcomes. So as Steve talked about, we do a space-by-space buildup and make certain assumptions as to non-renewal and move outs, et cetera. And then on top of that, we look across the portfolio and the industry to assess tenant risk and make educated decisions about where to set those reserve levels. Again, all with the point of view that what we’re delivering is still incredibly strong, with that top line provision.
Operator: Our next question comes from the line of Mike Mueller with JPMorgan.
Mike Mueller: It looks like you had about a little over $160 million in leasing CapEx and maintenance CapEx in ’22 and ’23? Just curious where you see that trending in ’24 and ’25, given the SNO pipeline?
Brian Finnegan: Yes. I’d say in CapEx overall, we talked about, Mike, that we expected maintenance CapEx to trend down over time. You started to see that last year, and we expect to continue to see that as the improvements in our portfolio are continuing to pay off. As Jim mentioned, we do expect about $150 million to $200 million a year in consistent reinvestment CapEx. And then from a leasing CapEx perspective, just expect us to be among a similar level as we were a year ago. But our team is being incredibly disciplined. We’re using the competition for space to, as I mentioned, get tenants to take on more existing conditions to keep those scope levels down. But I would expect that to trend at a similar level with the maintenance CapEx number ultimately trending down.
Operator: Our next question comes from the line of Linda Tsai with Jefferies.
Linda Tsai: I realize there is retailer demand for open-air across the board, but maybe just talk about what [Technical Difficulty].
Jim Taylor: You broke up there, Linda, I’m sorry.
Linda Yu Tsai: Oh, sorry. I said, I realize there is retailer demand for open-air across the board. But could you just talk about for individual faces, like what sizes you’re seeing the greatest demand for?
Brian Finnegan: We had talked about it earlier in the call, Linda, and you look, we have our lowest box availability that we ever have. So I think in that kind of mid-20s box size range, whether those are tenants in the value apparel, specialty grocery, home, wellness segments, we’re definitely seeing strong demand there. You look in that 10,000 square foot, kind of that junior anchor range, and whether that’s the 5 belows of the world, the footwear tenants, the Sephoras, Ulta, in that size range, there’s a lot of demand there as well. And then the third one I’d point to is in the outparcel space. We have a tremendous amount of competition for available outparcels from just really, really strong tenants, whether it’s the [indiscernible] of the world, the Chipotles that are expanding, bank branches like Chase, which is still looking at new opportunities in existing and new markets.
