Stephen Horn: So we’re always in the market talking to developers, but our split-funded program is usually with a tenant. And what we find is we can talk about a lot of capitalized interest, and we’re a little bit above our historical averages. And that’s a result of there’s not as much M&A in the market, and our retailers still want to grow organically. So they’re finding good opportunities redeveloping existing sites. So that’s why we’ve kind of leaned into it a little bit more than historically. But no, as far as new developer because they can get — now we typically shied away from the developer because there’s a lot of risks when you’re doing those deals because the developer is negotiating the lease, and they don’t look to hold it long term. So there’s a lot of unknown risks that are very difficult to underwrite within that lease. So we’d like to go back to our tenant relationships and find a lot of good opportunities there.
Alec Feygin: Outside of the capitalized interest being a drag on FFO. Is there any other onetime items in the quarter we should be aware of or going forward?
Kevin Habicht: No, nothing beyond that. I mean, I mentioned the lease termination income amount, which can be lumpy, and it was elevated in the first quarter and was not in the second. That was kind of — but that’s kind of an ongoing thing. And then the — like I said, the deferred rent repayments, which are detailed on Page 13 of the press release, give you kind of all the numbers fit the print on that topic. And so those are really the elements. But I think the broad answer to your question is no, we don’t see any onetime pluses or minuses going forward.
Operator: We do have a question from Ronald Kamdem with Morgan Stanley.
Ronald Kamdem: Sorry, I jumped on a little late. Just — can you just take a big step back, just give us an update on maybe the watch list, the bad debt that’s baked into the guidance and how that’s trended year-to-date? And any sort of particular, whether it’s Bed Bath or any other sort of exposures you haven’t touched already would be great?
Kevin Habicht: So yes, I think our — as you know, our assumption at the beginning of the year in terms of guidance is we assume we’ll lose 100 basis points of rent, 1% of our rent will be lost for some reason or the other related to tenant issues. That’s our typical rent loss assumption in our guidance. Historically, we’ve not realize that level. Normally, it’s probably 0.5%, 50 basis points or less. I would say this year is trending to be normal, meaning probably over the scope of the year, it will be closer to that 50 basis points. And so nothing unusual in that regard. And I would say nothing changed in terms of the quantity and the quality of the credit watch list, if you will. It doesn’t feel like there’s any big changes brewing there.
We’ve alluded to already, 2 tenants that were bankrupt have exited bankruptcy — or not exited, but that bankruptcy is close. So Bed Bath and Beyond is gone. So we had 3 stores there, and that was 0.2% of our rent. So those are new vacancies, if you will, that will release. I think I’ve mentioned in prior calls, the rent on those properties were $12, $13 a square foot. So that’s something that we think will create a big challenge to replace. And then we have one, Regal Cinema property. Regal did exit bankruptcy, I believe, yesterday. And that won’t create any notable impact on our revenue or bottom line. There’s — but the list still has AMC on its question mark. It still has some fridges, restaurants on their question mark, Rite Aid drug. But those have not changed in my opinion, notably in recent quarters.
