It seemed to be the prudent thing, not very specific other than the Party City and Bed Bath that we called out separately. Heath, do you have anything to add to that?
Heath Fear: No, I think you did a great job answering that.
R.J. Milligan: Thanks. And then my second question is what are the expectations for paying occupancy? And how does that trend quarter-to-quarter throughout the year?
Heath Fear: In terms of how the leases turn on, R.J., is that what you’re asking?
R.J. Milligan: Right. In combination with potential…
Heath Fear: I think a proxy for that question based on so much SNO that we have is what’s the trajectory of our same-store NOI. And I’ll tell you that it’s going to look a lot like it did last year. It will be strong in the first quarter, and it will decelerate a little bit into the second quarter and then ramp up to the back half of the year as we’re opening up more tenants. So again, last year was a big year of opening up tenants. This year is the same thing. So it’s going to look a lot alike as it did last year.
John Kite: Yes. And some of that is going to be subject. Obviously, that’s what we’re modeling R.J., but we also €“ in that, we’ve modeled that bad debt reserve to be higher than it was last year with the idea that if there was some, if the economy did have less of a soft landing, we’d be able to absorb that handily. So look, if the economy continues on its current path, that feels like a very safe, safe number.
R.J. Milligan: Thanks for that, guys.
John Kite: Thank you.
Operator: Thank you. And our next question comes from the line of Alexander Goldfarb from Piper Sandler. Your question, please.
Alexander Goldfarb: Hi, good afternoon out there. Two questions. First, Tom, a lot of the shopping center companies, including you guys have spoken about a lot of this preemptive demand for space that could be given back from potential troubled retailers. And just curious, over your decades of retail leasing, how common is this? Is this just something that normally we’ve never really asked about, but it’s always been there? Or is this truly a different point in the retail cycle to see so much proactive demand from the retailers themselves saying, hey, whatever space you have, we want, we want.
Tom McGowan: Yes, I would say this is a fairly unique period of time, Alex. I think it’s simply driven by the lack of supply and you have these major retail formats that are growing. And they’re wanting to locate in the best shopping centers as possible. So I think when we’re dealing with both Bed Bath & Beyond, Party City, there will likely be some discussions that go the other way, where, hey, where can we work with you to get spaces back and they’re going to be very aggressive with us in terms of trying to stay in the location. So I think this will be as interesting a process as any one we’ve gone through. We’ve been through quite a few of these, whether it’s Toys “R” Us, which are oversized boxes or others that are more difficult, we’re in the perfect wheelhouse right now where we have a situation from a sizing standpoint that Bed Bath is around 27,000 square feet, Party City at 15,000.
We just have a great stable of tenants to deal with that. So it is, to your point, a very unique situation because of those factors that we have a lot of people taking a look at these opportunities.
