Devin Murphy: Sure. Ravi, thanks for the question. Again, we’re not seeing anything that causes us to believe that those spreads are not achievable, at least in the near to midterm. And I know that number at 30% when you see it seems shocking, but you have to realize that these retailers are entering into leases between five and six years and the CAGR we’re getting is less than 3%. And the way we think about it is when we look at our overall ABR, our overall in-line ABR increased approximately 5% year-over-year. And when you think about how retail sales are growing, particularly in the categories that we have large exposure to, so food, health, et cetera, those retail sales have been growing at mid-single digits to low double digits.
And so the fact that our average ABR is growing at mid-single digits makes us comfortable that we can continue to sustain these kinds of spreads. And at the end of the day, the ultimate tail of the tape is the fact that we don’t see any slowdown in the demand coming from the retailers to lease space in our centers.
Ravi Vaidya: Got it. Thank you. Thanks so much.
Jeffrey Edison: In addition to that, we also — and our retention rates are staying really strong. And so that would be an indicator that rents are moving. And they — if anything, they’re higher than they’ve been. So with what Devin said in that, we’re — we do feel that there is — this is a long-term sustainable model to be able to increase rents in that 4% to 6% range that overall in terms of rental, the retailers will stay healthy and can absorb that kind of cost increase.
Ravi Vaidya: Thank you. Appreciated.
Operator: We go next now to Tayo Okusanya at Credit Suisse.
Tayo Okusanya: Hi, good afternoon everyone. Just a quick one on interest rates. The swaps that are coming due September ’23. Just kind of curious what the thoughts are on that and how that’s built into your guidance?
Jeffrey Edison: John, do you want to take that?
John Caulfield: Sure. Thanks, Tayo. So as we look at it, we have positioned ourselves to be patient and with flexibility. So we do have a maturity of swapped in September. We also are looking at the debt maturities that we have in 2024. And as I mentioned in the prepared remarks, we anticipate addressing those ’24 maturities later this year with incremental long-term funding, and we would anticipate that we would sell for it at that time. So we are looking at extending but at this time, we don’t have — we do have assumptions in there that we’re refinancing the debt related to ’24 as well as taking care of that at that time. And that could be in the bank market, it could be in the bone market. It’s really going to be dependent upon our cost of capital and maintaining attractive cost of capital as we can.
Tayo Okusanya: That’s helpful. The second question, I mean, you started the season since inflation coming down. I mean, I think there’s one a view out here that after a while, maybe like food prices, could actually go into a discretionary type scenario, which typically hasn’t been — typically is on a very good environment for grocers. Just think — are you hearing some of that from your grocery neighbors at this point? And how do they kind of prepare for such a scenario be those kind of current in the next 9 to 12 months?
