Nick Wibbenmeyer : Yeah. Juan, I would just add, as Alan alluded to, there’s just — there’s a lot of demand from a lot of our grocers right now to continue to expand around the country. And so that’s a lot of what’s driving our excitement about future development opportunities is key grocers such as Whole Foods do want to expand. They’re performing really well, and we’re excited about continuing to grow our portfolio with them and others.
Juan Sanabria : Thank you.
Operator: Thank you. Our next question is from Anthony Powell with Barclays. Please proceed with your question.
Anthony Powell : Good morning. I guess a question on the bad debt assumptions for the year. How much of the 75 to 100 basis points is tied to known situations like Bed Bath & Beyond? And how much more cushion is there in that number?
Michael Mas : Sure. Anthony, it’s Mike. Let’s talk through maybe scenarios is how I like to think about it from a midpoint, low end and high end. And also, when we think about credit loss reserve, I think it’s important to remind everyone, that’s a combination of uncollectible lease income or bad debt expense, together with the impact on base rent that could come from a rejection of a lease in the bankruptcy. So it’s a combination of base rent in assets as well as the expense line item. From a scenario standpoint, let’s start with the midpoint and go from there. We are anticipating what I would call more of a classic reorganization scenario at the midpoint of our range. So in the middle of that 75 to 100 basis points. And by the way, that 75 to 100 is really encapsulating the top to bottom.
So a classic reorganization, Alan gave us some intel and some clarity on what stores have been identified for closure at least. That does not mean that they’ve been identified for rejection. Nothing’s happened at this point. But that scenario would be in the midpoint. You can also be certain to know that a full liquidation scenario of this name would be captured by the low end of our guidance. So we are very comfortable that even with a relatively — soon to follow filing if that were to happen and a relatively quickly paced liquidation process, we are pretty comfortable here that the low end of our range would capture that scenario. And then the — and then I’d say, I’d actually extend that midpoint scenario into the upper end. So what may be an unlikely scenario that a lot of good happens and Bed Bath is if there are no closures at all and that they continue as a going concern, frankly, that would be a little bit of an upside to our guided range.
Now also recall it’s credit loss, so there’s bad debt expense. I mentioned in the call, we are a little bit of an increase with respect to 2023 outlook versus 2022 actual performance. So just a little bit more cushion in the plan from a classic bad debt expense perspective. And we’ll see how the year progresses. I feel really good, again, about our tenancy, feeling really good about the quality of our merchandising but we all are aware of what potential headwinds there may be out there.
Anthony Powell : And maybe one more on acquisitions. I think, Lisa, you mentioned that you’re seeing more bidding processes play out. How do you view your potential to be acquired this year of assets given what you see in cap rates, transaction volume, your own cost of capital?
