Leslie Swanson : Good morning, Todd, I wanted to make a couple of comments. It’s Leslie Swanson, Chief Operating Officer. The good news about Nashville is we had a phenomenal brand opening weekend with very strong traffic and remarkable sales volumes done by all the retailers at Nashville. Throughout the week after grand opening into this past weekend, we continued that momentum. We did not have a lull at all. We have top performing retailers who are saying their best in their class when it comes to their sales volumes in Nashville. We’re excited to see the future. We have a strong holiday schedule where we’ll continue to have new and improvement of traffic and shopping at the center. So we’re excited to offer that to the Nashville community.
Todd Thomas: Okay, are there any updates at all even over the last several months around where sales productivity might sort of shake out or settle out? Have you had those conversations with tenants around any updated budgets or reforecasts around what they might be anticipating and where that might sort of shake out within the portfolio?
Leslie Swanson : For the portfolio or for Nashville?
Todd Thomas: For Nashville.
Leslie Swanson : We talk to our retailers every day. Our head of leasing, Justin Stein, has met with them personally one-on-one. Again, we’re hearing about remarkable sales volumes happening and we’ll continue to work with them on what their ongoing outlook is from a volume perspective in Nashville.
Stephen Yalof : Look at, Todd, I had just one thought as we curated that shopping center there’s the retailers that are in that shopping center have average sales performance, some of the highest average sales performance per square foot in our center in the $500, $600, $700 per square foot range. So we’re pretty optimistic if these stores are outperforming their plan and their sales performance is some of the highest in our other portfolio. We’re optimistic about what those sales perform, what the sales performance in Nashville will do.
Todd Thomas: Okay, that’s helpful. And then just my last question, I guess circling back to just the tenant sales environment more broadly and just thinking about the portfolio overall, not just Nashville. You continue to raise rents and drive expense recoveries higher too and mentioned the portfolio’s occupancy cost ratio increased just slightly, so it’s still 9.1%, which is healthy. But at what point do tenant sales come into greater focus? We’ve seen I think a couple quarters now where sales have moderated a little bit. And where should we be thinking about the OCRs being sort of a pressure point as it pertains to leasing discussions that you’re having?
Stephen Yalof : Well, I think there’s plenty of our portfolio that has not yet been touched as you look at that OCR growth. We’ve got some turn coming up next year. We think that there’s opportunity to continue to press rents. You said that there’s been sales moderating for the last couple of quarters yet our rent spreads and our activity continues to grow. It goes back to Lizzy’s question. The utility of an outlet store is slightly different than the utility of another store in the bricks and mortar ecosystem, where off price is something that retailers, they value. It’s an important part of their distribution channel. And they look at this store as adding great utility to what it is that they’re doing from clearance point of view.
I just think it’s important to keep in mind, as you look at the renewals, again, 95% of our retailers are renewing historically higher than what we’ve ever renewed in the past. And they’re doing so at plus 10% in the case of trailing 12%, 13% increase. So the retailers are voting. They’re saying that the store is important to us. We want to stay here. We want to continue our positive cash flow. And although the top line sales week gets all the headlines, at the end of the day, the utility of the store is in its ability to turn over goods.
Operator: Our next question comes from the line of Greg McGinnis with Scotiabank.
Greg McGinnis: Hey, good morning, everyone. And just quick message for Steve Tanger. You were the first CEO I ever asked a question too on an earnings call. And I’ve appreciated your presence on the call ever since. Hopefully stepping back from these just means more time to actually enjoy yourself instead of dealing with sell side analysts. So thanks, thank you very much.
Steven Tanger: Thank you for your comment. I always enjoyed chatting with you and we appreciate how well-prepared you always came to the meeting. So I wish you a lot of success.
Greg McGinnis: Thanks, Steve. All right, so onto some questions on the quarter here. The cash base rents increased 4.7% from last quarter. There’s 80 basis points of occupancy increase. Could you just outline the other drivers of that quarter-over-quarter increase and how much of that was a conversion of tenants to permanent occupancy?
Michael Bilerman: Thanks, Greg. So if we think about that year-over-year growth, all of the growth in occupancy has been permanent, right? Our temporary occupancies have remained relatively flattish at around 10 percentage points. And so with 150 basis points, year-over-year growth in permanent occupancy combined with the rent spread activity of 14.5% on average and over 20% of our portfolio, when you combine those two pieces together, and you can look at our percentage rents, which a lot of that is also being swept up until that base minimum, in totality, that’s what’s driving our revenue growth. And so it’s very — go ahead. Sorry, Greg.
Greg McGinnis: Yes, Michael, this is the quarter-over-quarter. So from last quarter, you’re up 5%.
Michael Bilerman: Right, so part of that is sequentially, we had an 80 basis point increase in our occupancy. We also continue to have rent spreads. And as we talked about in the release, we had a small amount of out-of-period rent collections sequentially, where we picked up a few hundred thousand dollars up in that line item.
Greg McGinnis: Okay. Maybe something we can dig into a bit later. On the same store NOI guidance, I think it implies a pretty dramatic slowdown into Q4. Just curious if that’s just tougher comps or what the expectation is there for the slowdown.
Michael Bilerman: Sure. As we talk about, our expenses are variable. And so you do have a little bit of a year-over-year impact on a quarterly basis. On an annual basis, we feel very pleased that we’ve been able to move the midpoint of our same-center range from 3% where we started the year at 2% to 4%, up to over 5%. So the business, on an annual basis, is performing. There’s always going to be some volatility quarter-to-quarter, but that’s really the impact. Overall, and I would point out that our FFO is still growing on a year-over-year basis.
Greg McGinnis: Okay. On the sign and occupied spread that everyone loves talking about these days, could you just — could you give that amount and also what it represents from a base-run standpoint?
