Matthew Partridge: So a good question. Wesley, good morning. It does not include any buyback activity. That would be in addition to the investment guidance. And I mean, at $15 a share, we’re obviously well over – an 8% implied cap rate. So, I think that’s certainly something that we’ll have a discussion with the Board, about in terms of a potential new program.
Wesley Golladay: Okay. And then, Matt, you talked about signing some leases, and just kind of curious what do you have in guidance for assuming rent from the leasing of the properties?
Matthew Partridge: We have the two that we’ve signed so far and that’s it.
Wesley Golladay: Okay. I guess we’re trying to build the model and then to build dispositions in our model, I guess, what is the total upside in rent? Obviously, you’re going to sell them, but we need to put a – get it in the model and then exit the – and then monetize assets. So how much, I guess, from the current run rate, how much upside do you have in the rent from releasing the assets?
Matthew Partridge: Yes. So the current run rate includes the two we’ve signed, I would say, for now, assume nothing. And then obviously, as those come to fruition, we’ll report them, right? We’re we’ll call it, two months away from doing this again. And so, we’ll provide another update then and update the numbers then.
Wesley Golladay: Okay. And then last one for me. What do you have for assumed leverage throughout the year? And how does that impact your borrowing base looking at the spread?
Matthew Partridge: Yes. So, we’re assuming there’s some slight delevering well based on sort of the forecast and guidance we should end the year closer to seven times net debt to EBITDA, which should fit the interest rate spread going into 2025.
Wesley Golladay: Okay. Thanks.
Matthew Partridge: Thanks.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Matthew Erdner with JonesTrading. Your line is open. Please go ahead.
Matthew Erdner: Hi guys good morning thanks for taking the question. So the loans look like they provide some pretty solid risk adjusted returns. Are you seeing these more than acquisitions, dispositions at the moment? And if so, is there a certain amount of capital that you guys would be comfortable allocating to the strategy. I know that you don’t want to do this, kind of off the back, but I guess, what would you be comfortable getting up to for this two-year period?
John Albright: I mean, I think you’re seeing – that’s on the top level of kind of where we want to be on the loans. So what you’ll see is really loans either paying down, or we’re selling off pieces of the loan to do new loans. So I don’t think you’re going to see the portfolio of loans get any larger.
Matthew Erdner: Got you. Thank you. And then in terms of the transaction market, what do you think you need to see for it to kind of really get going again? Is it Fed rate cuts or kind of money coming off of the sidelines? What are you guys thinking there?
John Albright: So, I think you’re starting to see – or we’re starting to see a little bit more activity now. I think people have been hanging on for a rate cut in the higher interest costs, as debt rolling over, is starting to bite a little bit more. And so, people are just kind of making harder decisions now about selling assets that they don’t really want to sell. But it makes a lot of sense given high debt costs and so forth. So pretty much of the optimistic camp that as rates seem to be further out as far as rate cuts, you’re seeing more activity on the transaction market.
Matthew Erdner: Awesome thanks for taking the questions. Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is going to come from the line of R.J. Milligan with Raymond James. Your line is open. Please go ahead.
R.J. Milligan: Hi. Good morning guys most of my questions have been asked and answered. I’m just curious, John, on Walgreens. I think it’s a split rated in terms of credit rating – just can you talk about how you feel about that specific credit and maybe export pharmacies in general, given what we’ve been seeing in the industry?
John Albright: Yes. I mean, look, clearly, their company in the headlines. The properties we have are very good locations and obviously, with new management at Walgreens and cutting the dividend and selling off some divisions, they’re going to become a healthier credit, obviously, and so the good news is our locations, even if you found another tenant, there’s a lot of tenant demand out there for locations. I was with a developer two days ago, who’s a prolific developer of all kinds of various retailers and you can’t build a box for less than $330 these days. So — so you’re going to see tenant being very active in taking over other tenant spaces. So I think the backdrop is that there’s a lot of tenant demand out there if you had some issues with particular boxes.
So it’s all about basis. And I think with our basis, trading at $127 a square foot along the whole portfolio, we got a lot of room there. So we’re not kind of having sleepless nights over Walgreens, but we will be pruning the exposure for sure.
