Farrell Granath: And also, I wanted to touch on tenant health or maybe tenant watch list, I think I saw in the news about Walgreens. Some Walgreens stores closing as well as last quarter, we had touched on Bed Bath & Beyond. So I’m curious if you can give an update.
Kevin Habicht: So yes, overall, I guess, globally, I would note that the size and the shape of our credit watch list, I view as largely unchanged from recent quarters. The specific tenants you mentioned, as you know, Bed Bath & Beyond, filed for bankruptcy. We had 3 stores with them. It was 0.2% of our annual base rent. We will be getting back 3 — those 3 stores. And so that — those leases are projected. And then as it relates to — what was the other one you asked about, sorry?
Farrell Granath: Walgreens?
Kevin Habicht: Yes, yes. Walgreens, I’m not worried at all about their ability to pay rent. I guess that’s the most important thing. They did announce store closures, none of ours are in that list. And so we don’t have any concerns at all on that front. And just a reminder, even to folks, investors, even if a tenant closes a store, the rents did — the first. It doesn’t change their obligation to pay us rent for those properties. And so — but — and this particular case, Walgreens, we don’t have any closed stores on their closure list.
Stephen Horn: Just really a follow-up on the Walgreens. That was a transaction we primarily did in the fourth quarter last year. So there was a self-selection process that Walgreens went through to sign 15-year leases.
Farrell Granath: Great. And also, if you have a few comments on Regal Cinemas.
Kevin Habicht: Yes. So Regal actually just exited, I guess, bankruptcy yesterday maybe, very recently. And so we only had one property with them. We’re going to come out fine there. We offered up a small rent reduction, but in exchange, got the ability to develop an outparcel on that property. So I think when the dust settles down the road, we think we’ll be pretty much even in terms of where we were. But it was a very small exposure, under 0.1% of rent, and A. And B, it was a very modest rent reduction offered up in exchange for this ability to develop an outparcel on the property, which is reasonably well located. So we kind of like our odds and all that. But yes, it won’t have any impact on our bottom line of note.
Operator: Our next question is coming from Eric Wolfe with Citi.
Eric Wolfe: If I look at your cap rate in the quarter of 7.2%, how wide was the CapEx range around that? And was there anything done, say, north of in the quarter?
Stephen Horn: Can you say that last part again? You kind of broke up on me.
Eric Wolfe: Well, just how — like if I think about the top end of where you’re buying is, was there anything done north of an 8? Like I’m just trying to understand how wide the cap rate range was with the quarter?
Stephen Horn: So the bandwidth in our cap rates on that 7.2% is fairly tight. As I kind of just looking at the overall list, it’s probably — we had a couple of legacy deals that we split funded deals that we priced midway through last year that kind of dragged their fee. We’re in the high 6s. And the highest cap rate deal we did was kind of mid-7s. So it’s pretty tight bandwidth.
Eric Wolfe: Got it. Yes. I mean the reason why I asked the question was I was just curious if you’re seeing any pockets of the market that are seeing a little bit more stressed, maybe a little bit less access to capital causing sort of acquisition yields to rise there in spite of a similar risk profile. And then you talked about the — I think you call it the split level acquisitions. I mean, I guess, I’d be curious how you underwrite those relative to a more normal type of acquisition where you’re getting all the income immediately.
