Haendel St. Juste: Good evening out there. So Don, I was intrigued by your comments on the Federal rent bumps and the superior long-term core growth profile of the portfolio. I remember while back you provide a buildup of what you thought the portfolio could do over a longer-term basis in terms of that core internally generated growth, I think it was like 3% to 4%, which included some of the bump spreads redevs. So I guess I was curious if you could give us an updated sense of what do you think the long-term core growth profile looks like now or could look like now with the improved bumps you’re referencing as well as maybe factoring some of the various deal rent tailwinds coming online here
Donald Wood: That’s fair, Haendel. I mean the — look, the business, the general business and the shopping center business, allows the portfolio to grow with common occupancy of a typical shopping center of 1.5% and 1.25%, what they do. We’ve been able to have long-term growth of 3%, 3.5%, something like that, on an occupancy neutral basis. I feel very good about that. And with respect to the comment I was making about the about the rent bumps, it’s really — we’ve talked about this in the past, a little bit of inflation is a really good thing in our business. So much inflation certainly isn’t. But to the extent we get to a normalized level of inflation, it allows us to push more. And Wendy and that team is having success effectively with the ability of increasing or improving the economics for longer-term deals because inflation is real, and everybody knows it.
You’re not trying to push a noodle uphill. So that long-term growth rate of 3%, 3.5%, I feel very good about.
Operator: And our next question is from Floris Van Dijkum with Compass Point. Please proceed with your question.
Floris Van Dijkum: Thanks. Guys, I appreciate you throwing out guidance that is a little bit more adventuresome than some of the your retail partner. And maybe if you can talk a little bit, as you know, not all space is created equal. And I know you’ve been saying that for a long time, Don. But one of the things that intrigued me about your portfolio and where I think people might be underestimating the growth potential, particularly in your small shop space because your rents are double your anchor tenants, you talked a little bit about your lease percentage. How much of that is occupied? How much more do you expect to gain in terms of lease growth in ’23? And then maybe if you can — if we walk through the elements of your growth for ’23, you talked a little bit about — Dan, you talked about the 2.25% fixed bumps, you have an element of leases that you signed in ’23 that were — where you got a partial year, and obviously, those are going to contribute in ’23 as well.
And then you got your SNO and you get your spreads. If you do the math, I mean, it looks like you’re going to be well north of NOI growth, if I’m adding it up correctly.
Daniel Guglielmone: Yes. I appreciate the question, Floris. Look, we — if you add all those things up, yes, it gets beyond the 4%, but then you apply a credit reserve, you’ve got some headwinds and so forth. And so look, we’re hopeful that our 2% to 4% net comparable growth is a conservative estimate. And we hope that the strong rollover we’re expecting in 2023, continued contractual rent bumps, continuing to be able to push occupancy, will continue to drive a strong core portfolio growth profile in 2023. But there are headwinds out there, and so the 2% to 4% reflects that.
Operator: Our next question is from Derek Johnston with Deutsche Bank. Please proceed with your question.
