Operator: Thank you. Our next question or comment comes from the line of RJ Milligan from Raymond James. Mr. Milligan, your line is now open.
RJ Milligan: Hey, good morning, guys. John, I just wanted to revisit your comments on sort of the cap rate compression for investment grade, and I’m just curious what terms you’re seeing out there from lenders to lend on that type of investment?
John Albright: Yes, it’s really high net worth, all cash. There’s no lender involvement in where we’re seeing the activity taking place right now. So, whether it’s a smaller asset that it’s really a 1031 and there’s no lender need, or it’s high net worth, just very comfortable with the stability of net lease, and there’s no problem on pricing. They just want to place the capital in with particular credits and locations.
RJ Milligan: So, I guess per your comments, it’s more a function of the lack of available product and that’s sort of keeping cap rates relatively low. I guess the question is, if we were to see volume increase, would you expect cap rates to maybe expand a little bit?
John Albright: Yes, I would definitely – you’re absolutely right. It’s because there’s not inventory out there. If you had a forced seller out there of assets or portfolio or motivated seller, I think you would see cap rate expand a bit because that’s what we’re all waiting for, is opportunities to deploy at higher yields. And so, if people know that they have to sell, you’re not going to basically be very aggressive. That’s kind of what we’re all waiting for. So, yes, if you all of a sudden saw a lot more activity happen, I think cap rates would expand a bit.
RJ Milligan: That’s helpful. And then Matt, a question on the guidance for the outstanding share count. Obviously implies a little bit more equity through the year. How should we think about the cadence of that?
Matt Partridge: Yes, so with the pro forma leverage that the Gaurav mentioned earlier and that’s in our investor presentation, you can see we did a little bit of activity on the ATM to start the year before we went into blackout. So, a good chunk of that implied equity in the guidance has already been issued. The balance of that amount, I would expect to be more backend-weighted, and I think that would track transaction activity within the guidance as well.
RJ Milligan: And then, do you expect for the transaction activity, is there – do you expect a mismatch in terms of dispositions versus acquisitions, or do you think they’ll be pretty equally timed throughout the year?
Matt Partridge: I think from John’s comments, you can probably expect this to be a little bit more active on the disposition side in the second quarter, and there’d be a good match funding from that perspective, but then the balance of the acquisitions is probably backend-weighted to the second half of the year.
RJ Milligan: Great. That’s it for me, guys. Thank you.
Operator: Thank you. Our next question or comment comes from the line of Matthew Erdner from JonesTrading. Mr. Erdner, your line is now open.
Matthew Erdner: Hey, guys. Matthew on for Jason. Are there any specific regions throughout the country where cap rates are expanding or kind of holding steady rather than compressing, or is it kind of compression all around?
John Albright: Yes, I would say it’s – I don’t think there’s a geographic area that is exhibiting something different than really the national new wave. I mean, I don’t see a particular area that’s expanding. Maybe some of the areas that are lower growth like as far as in Oregons or Californias, may be people that just don’t have a bigger – as big a buyer pull, but it’s pretty steady all across.
