Dave Holeman: It’s just a handful of tenants that we’re working to re-tenant and really upgrade and better serve. It gives us an opportunity also to better serve the community around the properties. It’s not a pervasive issue across tenant base. It’s really just probably three or four tenants.
Scott Hogan: Yes, really, this has been something that I think overall, we’ve really improved this in our portfolio. And also as a team, as we’ve talked about this in the past that if we do have tenants out there that are weaker tenants, we’d rather re-merchandise them in a strong market. So we’ve taken a very active stand towards that. And quite frankly, the team knows that we look at bad debt is something that is part of how we operate is something that is to be taken seriously and not to have a lingering number out there. So we’ve been very active at managing towards reducing what I would consider some challenges in the past. And as we talked about, we really look for quality of revenue going forward and the type of tenancy that we bring in.
So I think the team has done a really good job with us, and we continue to see improvement of that in the future. But I’m not – I look for tenant weakness all the time, and we also look through our portfolio to figure out where we need to be careful in leasing efforts in the future. And so far, we’ve seen the market is really, really strong towards all tenant types, and I haven’t seen like a significant amount of weakness in a certain type of tenant since COVID. So…
Dave Holeman: Okay. And then maybe bigger picture, as you kind of think about capital recycling beyond the transactions that you completed or that are kind of in the pipeline. Is that impacted at all by the ongoing proxy contest? I mean do you kind of take a pause on any strategic initiatives until that’s completed? Or is it – we’ll see the results of that and then adjust as need be.
Scott Hogan: I think I would say, John [ph] absolutely not. Our business is frankly firing on all cylinders. Our tenant demand is strong. We’ve got great locations. You’ve got a team that’s synced in executing. We intend to keep delivering and keep laying down a track record.
Dave Holeman: That’s it for me. Thank you very much.
Scott Hogan: Thank you.
Operator: Thank you. [Operator Instructions] The next question we have comes from Michael Diana, Maxim Group – of Maxim Group, LLC. Please go ahead.
Michael Diana: Okay. Thank you. Christine, you mentioned that in one of the two recent acquisitions you re-tenanted a lot or there’s a lot of re-tenanting. Can you just give us some more detail why would the new tenants better than the old, what were you doing there?
Christine Mastandrea: I wouldn’t consider it a lot of re-tenanting. It’s just that what we look at when we buy a center. We – so we have an approach, a couple of different approaches that we take. First of all, is it’s serving – successfully serving the community. And we look for opportunities that maybe there are some tenants that have been just rolling forward in portfolios or properties that haven’t been actively managed. And those types of test maybe not serving the community as well as they could be. Their sales numbers aren’t there. The management of the business is not as active as it should be. We take those opportunities to re-merchandise because we think, first of all, again, our goal is to successfully serve the community.
And in doing so, we look for those types of businesses that do that and have the strong sales to match that. So an example is, I think, is a really good one is when we bought the one in Woodlands, which has been really a phenomenal property. It’s a really well-located property. We’ve been able to re-tenant two of the operators in there and significantly raise the rents at the same time. So we’ve gotten stronger operators and have been able to raise the rents. And again, we look at that because the area is such a strong area, why shouldn’t we move in that direction, especially with the strong market that we have today. The same – and we always have that look at every other acquisition that we take a look at the same type of point of view. We get an understanding of who’s in there, are they meeting the community needs.
Is there an opportunity to re-tenant? And then again, I would say that Las Colinas, which is an example that we used at one that was several years ago. There was a significant re-tenanting in that center. But with that, we — the traffic levels are much higher. Again, the quality of revenue is much better, and we’ve been able to raise the rents as well. So that’s always been our approach and acquisition. I think it’s been very successful, and we’ll continue doing it in the future.
