Floris Van Dijkum: Hey, guys. Thanks for taking my questions. So obviously, a good set of results. They’re starting to become some partial recognition of the transformation, I believe that you guys have undergone in terms of your balance sheet. And obviously, portfolio with the RPAI transaction, but there appears to be some left. I’m just curious, last year, you beat €“ your guidance by, call it, 10%. Where do you think €“ if you were to beat this year, where would that be? Where could you be? And does that €“ have you in your numbers assumed term fees for space that you get back from troubled tenants and how much more scope do you think there is in the small shop occupancy? Is that part of your SNO pipeline? Is there more scope there?
Presumably, those take €“ they are quicker to take occupancy of that space as well? And then maybe are there any other merger benefits that you’ve clearly hit your 2-year plan in almost a year. What other merger benefits could we expect potentially to come down the road?
John Kite: Floris, I guess that’s another way of you asking, would you like to see our corporate model through 2027. No, I’m kidding, kidding. But €“ let me back it up a little bit. So look, I mean, we’re €“ just like last year in terms of guidance, we’re early €“ obviously very early in the year. There’s a lot of moving parts. We tried to be as thoughtful as possible around potential impacts from the known tenant challenges that are out there and really kind of going above and beyond and actually breaking out the impact that we thought was out there from Bed Bath and Party City. In addition to that, having basically an extra 25 basis points above where we were last year in terms of bad debt. So how that parlays into potential outperformance down the road, it’s really too early to say.
If €“ clearly, if things go better than the forecast, I mean, you’re looking at the opportunity to outperform and you’re looking at the opportunity certainly be in the higher end of your range versus the lower end of your range. But I just think it’s too early for us to point to these individual things. I mean, even when we were sitting down going over the budget at the end of the year and then the model creation, Bed Bath in particular, has ebbed and flowed and now currently has a new capital source. That’s a new thing. We will see how that goes. So I just think it’s too early to say, hey, we think we could outperform to a very specific number. In terms of the leasing side of the equation, well, let me back up. You said something at the beginning that we appreciate, which was the beginning of people seeing the €“ just the spectacular results of the combination of the companies.
And I want to make sure that everybody looks closely at the investor presentation. In particular, when you go through Pages 6, 7, 8, 9, 10, not that the rest of it isn’t outstanding, but those are really, really important pages because it covers what you’re talking about, and there is a page in there in terms of the merger and what we laid out at the time that we did the merger and that we communicated with the Street, and then the actual results that occurred, which literally no one can deny that we did a very complicated, tough transaction, and we did it extremely well. And it’s only because of the team that we have, the way everybody came together. And frankly, that’s why one of the pages says 1 plus 1 equals 3 because the results were at least threefold better in terms of total output.
