Hilton Howell: Thanks Aaron.
Operator: Our next question is going to come from Dan Kurnos from Benchmark. Dan your line is open.
Daniel Kurnos: Great. Thanks. Good morning. Hilton, can I just go back to some of the comments around assembly. I just want to make sure that we understand that the writer strike is not causing any necessarily delays in revenue recognition. It sounds like NBC still moving in. And separately, in the release, there’s a $90 million in additional cash proceeds from a quasi-governmental authority or limited land sales later in 2023. I don’t know if that’s part of the value on model that’s incremental. Can you guys just kind of talk to that and sort of thoughts on future value unlock there for the real estate?
Hilton Howell: In terms of revenue, Dan, please know that the vast majority of we get is going to be rental income from NBCU as they take possession. And literally a couple of days ago, there were dozens of 18-wheeler trucks that were arriving here from all over the country, bringing in lights, cameras, growth stuff and everything else. And so that will begin. And then there are some things that are backed up that are talking to us about also leasing the studios that we have kept. So I believe that we will start seeing revenue — I know that we will start seeing revenue in the fourth quarter of this year. With regards to the reimbursement, we — there is a community improvement district that we have that overlays the entirety of the project.
Both Pat and I are on that Board, and it has north of $100 million in liquidity and in the CID and as issues that are public, i.e., streets utilities, various other things. As those are complete and then are assumed by the local municipalities. Gray is reimbursed from the CID proportionately. And so I think we received about $39 million-ish year-to-date, and we anticipate more as things kind of mature out and get completed.
Daniel Kurnos: Got it. So that’s just incremental reimbursement. That has nothing to do with additional [indiscernible] or sale leasebacks or any other incremental value unlock you could achieve with the real estate, correct?
James Ryan: Correct. That is purely a balance sheet activity. It is not a P&L activity.
Daniel Kurnos: Okay. Got it. And then just going back to the guide for a second. Jim, I just also want to double click on maybe lapping the Meredith Station acquisitions. I know you said we expect the goodness as it’s been, you guys have outperformed the broader industry by a few points now on core. Is that something else that we should be factoring into kind of the Q3 guide that sort of goodness starts to fade a little bit?
Kevin Latek: We closed two years ago, not one year ago.
James Ryan: So yes, I mean we have — we closed on Meredith in Quincy two years ago. We said consistently starting sometime last year through every call to since then that we had thought that there was revenue upside in — especially in certain Meredith markets. We have consistently said for several quarters that we are reaping the benefit of that assumption, that assumption was never into the synergies of the deal we announced. We see continuing benefit from the Meredith markets. They are making tremendous progress that’s in part why we outperformed, I think, the industry in Q2, but not by a few points, but what I’m reading is by probably close to eight to 10 points. So please give us credit to do. And that will continue for the reasonably foreseeable future in garnering benefit.
We’ve commented that, that’s both on the local side and on the digital side, also, to some extent, on the national side. But also the entire rest of the portfolio is performing very strongly. So part of it’s the Meredith revenue upside story that we’ve been talking about for a while, but the rest of the portfolio is doing very well, too.
Daniel Kurnos: Certainly wasn’t a negative comment. I’m just trying to understand any lapping elements going into Q3. So that…
James Ryan: I didn’t take it as a negative. I just want to get some credit.
Daniel Kurnos: Fair enough. Last one for Mr. Kevin, obviously, just a question on re-trans. I just want to make sure that the Q2 number, is that be mostly because sub-churn came in below what you expected? Or was there any kind of true-up noise? I know most of your trips happened in Q1, so to make sure?
