Peter Coughenour: Sure. I guess just to recap 2022 first. We recorded about $400,000 of bad debt expense in 2022. That’s call it roughly 10 basis points of revenue. And that’s slightly below our longer term average, which is probably closer to call it 20 or 25 basis points of revenue. But as you mentioned, we specifically identify tenants or instances of bad debt. And so, predicting bad debt on a go forward basis can be difficult. With the current macroeconomic environment, where it is, I think that obviously presents some challenges for retailers. But we certainly feel with our portfolio and 68% of rents coming from investment grade tenants that it’s very well positioned to withstand the current environment, and wouldn’t really anticipate any significant deviation from what we’ve seen historically.
Operator: Our next question comes from Josh Dennerlein from Bank of America.
Josh Dennerlein: Joey, just kind of curious how you think about dispositions as a potential source of capital in today’s environment?
Joey Agree: Yes. We didn’t give disposition guidance this year, because, frankly, entering into the world of dispositions outside of the seller who — or sorry, a buyer, excuse me, who is pre screen is an all cash buyer, is frankly an inefficient use of our time. We went through the 1031 gyrations. This portfolio is nearly in pristine position, if anyone wants to buy a couple AMCs, please tell them to call. But it’s effectively a near pristine — in pristine position here. And so, I’m just hesitant to waste our time out there in the 1031 market. We’ve got 77ish team members here that are extremely busy. There is just so many stops and starts in that space today. And given the nature of this portfolio, I don’t think we need to execute any significant amount of dispositions this year.
Josh Dennerlein: Okay. I appreciate that. And has the competitive landscape for acquisitions in your spaces, has it shifted at all? Are you seeing less competition or maybe are the certain asset classes, people are really gravitating towards — to that?
Joey Agree: No. I appreciate the question. We’ve seen less competition. We see less competition for the assets that fit within the context of our portfolio. 1031 buyers continue to wane as transactions grind slower in the country overall. And so, we see less competition. If you talk to brokers, transactional volume is down 60% in the space, right now. In the month of January, they’re effectively down 60% where — my most recent conversations. Where that will go, nobody knows. And so, there’s less downloads of 1031 buyers. Obviously, you remove leverage out of the equation or leverage the frankly, doesn’t do much for you and negative leverage almost into the equation, it will be inhibit some buyers from entering the space. And so, we’re seeing tons of opportunities.
We just won’t pay up for them. So, we’re not going to take $1 and break it into four quarters at the end of the day. We’re not a change machine. We want to earn money on our capital, just not cycle it. And so, less competition, we’re counting capitulations and we hope that continues to accelerate.
Operator: Our next question comes from Haendel St. Juste from Mizuho.
Ravi Vaidya: This is Ravi Vaidya on the line for Haendel St. Juste. Hope you guys are doing well. I just wanted to follow up here. Given that there’s less competition for the assets that you’re targeting, are you able to secure better terms, maybe better annual escalators?
