Matt Partridge: I think certainly there is an appetite for swaps in the bank market. And so, I think we could continue to sort of match fix acquisitions, whether that’s on the line or a new term loaner or some other piece of debt, we can maintain the fixed approach. On the interest rate side, in terms of capital available, there hasn’t been as much runoff of people’s balance sheets. And so, I think everybody in the real estate banking market is expecting some capacity to open up here into the second and third quarter, which should allow for longer duration term loans and better match funding with assets to pick up. It’s been pretty tight to start the year. For us, we’ve historically accessed the term loan bank market. We’re getting to a size where the private placement market is more attractive. So, I think both of those areas is where you could see us add incremental longer duration debt.
Michael Gorman: Okay, great. Thanks, guys.
Operator: Thank you. Our next question or comment comes from the line of Wes Golladay from Robert W. Baird. Mr. Golladay, your line is now open.
Wes Golladay: Hey good morning. Can you hear me?
John Albright: Yep.
Wes Golladay: Okay, great. Hey, are you guys seeing any OP unit deals out there?
John Albright: There’s certainly – I would say there have been discussions, but whether it’s not the right kind of purchase price for us. So, there’s folks that would like to take OP units, but I think the bid ask on the asset is too wide.
Wes Golladay: Okay. And then, you obviously articulated some dispositions planned for this year, but the cost of capital has been improving. So, I’m curious, how do you balance incremental dispositions versus scaling the business in light of the 400 basis points of improved efficiency this year or 2022?
John Albright: Yes. Well, on the disposition side, we’re using that capital to buy additional assets. So, it’s not – we’re not shrinking for sure. We’re just taking advantage of upgrading the portfolio and accretive recycling. But other than that, we’re definitely looking to grow beyond just the recycling. And so, we’re actively pursuing those opportunities.
Wes Golladay: Okay. And then one for Matt. I think the 6.6 times debt to EBITDA, at what point does this start to benefit you on having a lower spread on your floating rate debt? And then you did mention maybe doing some more fixed rate debt. Would there be a point where you are potentially over-swapped and maybe a long floating rate?
Matt Partridge: Yes, so with the 6.6 times, that’s probably a 15 basis point benefit to our spread on the revolver and the term loans. Going forward, it resets every quarter. So, it’ll take a little bit of time to get the benefit there once we head into the second quarter. But it certainly helps. On the longer duration debt, the swap that we did was a five-year swap. So, if and when we do a new term loan, it would effectively match up with that new term loan. Whether we go farther out on the swap rates to further hedge out, I think that’ll depend on where interest rates are and what kind of duration is available on the debt origination side.