Ross Cooper: A lot of it is event-driven as well. So when you get a number of spaces back at once, and then you have a lot of leasing activity to backfill those, you can elevate the SNO pipeline, but if you don’t have an event that gives you back a lot of space that you can release quickly, it should compress. So with the Joann bankruptcy coming out of bankruptcy and emerging with no leases rejected, no boxes coming back sort of showcasing that even they said it’s about market share and they wouldn’t want to give any of those spaces back because they would lose market share it. So it showcases the supply and demand dynamic that we’re experiencing today, where with no new development going on in our sector and demand being so robust, the existing leases are worth more than they have been in a very long time.
And so when you see that there’s unlikely going to be a slew of boxes coming back at the same time that would then cause a spike in the SNO pipeline. It’s going to be more blocking and tackling, filling up the small shops that we have left to go and filling up the remaining vacancies on the anchor side, which we have good activity on.
Linda Tsai: Thanks for that color. And then I think you mentioned —
Operator: Our next question comes from Ronald Kamdem of Morgan Stanley. Please go ahead.
Ronald Kamdem: Hey, great, just a quick two-parter for you guys. So on the same-store NOI guide raise, is it fair to say that it’s basically earlier commencement that drove the upside and what is driving sort of the expected deceleration in the rest of the year? It’s part one. And then part two on the acquisition guidance, just how much of that is identified already versus speculative. Thanks.
Conor Flynn: Sure. So as it looks through the rest of the year, we’re still comping against some of the bad debts in the second quarter. So that’s going to have some impact as we go there. The credit — the guide increase really is, we have further commencements that came online quicker, as Dave alluded to. And again, the credit loss has been performing very well so far. So again, we are more comfortable towards the lower end of the range. So that’s really what’s built into the guide.
Ross Cooper: And related to your acquisition question, we’re always hesitant to talk about yields before they’re really firmed up and closed. But what I can tell you is on the core acquisitions, we do not have anything under contract today. We are pursuing a few opportunities that we hope will move ahead, but stay tuned on that. And as it relates to structured investments, by nature, those deals are really driven by other parties, whether it be buyers, sellers, owners, senior lenders. So those deals are always a little bit fluid until the very end of the process. But as I mentioned earlier, we’re seeing a lot of demand for our capital and having some really dynamic conversations with owners and buyers that are looking for us to help secure a piece of the capital stack in those deals. So we’re pretty confident that there’s going to be some more activity there as the year progresses.
Operator: The next question comes from Tayo Okusanya of Deutsche Bank. Please go ahead.
Tayo Okusanya: Hi, yes, good morning, everyone. I wanted to go back to Wes’ question, but rather I talk about multi-family talk a little bit more about just the retail redevelopment. You do have in your stock a fairly expansive list of potential new redevs you could start and just kind of curious about potentially starting those up, just kind of given the overall redev development pipeline, it’s probably not as large as some of your peers, but everyone’s getting really good yields on that.
Conor Flynn: Yes. I mean, we always look at it as opportunistic in nature. Those are entitlements that we have in our back pocket that we can pull off the shelf when the timing is right. And honestly, when we look at all of our use of fund opportunities in determining where the best use of capital is at any given point in time. So we look at it holistically and that’s how we’ve always approached the multi-family entitlement program. We selectively activate them. As you know, we have a couple underway right now, but just to be very prudent on when we activate the next tranche, we’re seeing great returns right now on retail repositioning, retail redevelopments, that’s the core. You’re seeing double-digit yields on those investments and then obviously leasing.
When you look at the elevated activity on the leasing side, it’s the best use of our capital. And if we can continue to do that and drive high returns and yields for the investor base, we continue to do that all day long. So for us, it’s just another tool in the toolkit and we’ll activate it when timing is appropriate and market cycle makes sense.
Operator: The next question comes from Paulina Rojas of Green Street. Please go ahead.
Paulina Rojas: Good morning. You talked about tight pricing in the transaction market for certain assets, and I’m thinking more about geographies. Are there any markets or regions standing out for being less crowded, but that in your opinion, could offer some opportunities? I’m basically thinking that with regions such as the Southeast being so hard, I wonder if that is opening opportunities somewhere else, even in markets that traditionally have not been sought after by most investors even the Midwest, for example?
Conor Flynn: Yes, it’s a good question. And we always do look at new markets that might make sense for us. As you know, San Antonio is a relatively new market for us that we continue to lean into. Nashville is a market that we really weren’t in before that we’ve acquired a few assets via the RPT transaction. So we’re open-minded as it relates to new markets. Even in the Midwest, which over the last decade you’ve seen a lot of institutional capital sort of outflowing. You are seeing more demand in some of those markets and pricing that is getting tighter than where it’s been compared to some other markets. So we really have the benefit of our geographic diversity that we can look for opportunities really anywhere in the country where we have boots on the ground and we have conviction.
So we’re keeping an open mind for those markets. We have our structured investment program, which also allows us to be a little bit more creative and opportunistic, as opposed to just core acquisitions. So we’ll continue to keep our eyes open.
Operator: The next question comes from Jeff Spector of Bank of America. Please go ahead.
Jeff Spector: Great. Thank you. Maybe let’s turn back to the transaction market, Ross, you said at the top of the call, just given what’s happening with the Fed’s view on rates, there’s a dampening in the transaction market. Has anything changed, let’s say, in the last couple of weeks, and maybe you could touch on the structured investment pipeline?
