John Moragne: Yes there’s still some sale leasebacks that we’re evaluating. The key thing for us is why is the company pursuing it? Do they have a growth objective? Is there an acquisition that they’re working on? We’re not necessarily interested in solving a capital structure problem if it’s not one that we feel really confident about going forward. If they’ve got limited access to alternative sources of capital and so they’re turning to the sale-leaseback market but it’s more limited now than it was. I think there’s a lot of corporate coffers that are pretty full cash right now. And so they’re not necessarily needing sale-leasebacks in the same way that they used to. But we’ll absolutely evaluate them when they come online and really hone into why, what is the point, what’s the purpose that they’re driving for the funds that they’re seeking?
Eric Borden: Helpful. I’ll leave it there. Thank you.
John Moragne: Thank you.
Operator: [Operator Instructions] The next question today comes from the line of Spenser Allaway from Green Street. Please go ahead, your line is now open.
Spenser Allaway: Thank you. And maybe just a bigger picture question just given the more cautious cost of capital signal that’s being provided by the market right now how has your thinking changed, if at all, regarding redeploying the disposition proceeds into new investments versus buying back shares, bringing down leverage further, or perhaps just sitting on dry powder until that cost of capital improves?
John Moragne: Yes. So, our job is to allocate capital in the — where possible and so we’re always evaluating all the alternatives that are in front of us and the ones that you’ve set out are really the ones that we’re thinking about, more in a great spot right now from a leverage standpoint. So, we have looked at paying down some debt but where our debt currently sits relative to what we can get on a straight-line yield basis from investing in new opportunities isn’t necessarily that attractive particularly given the additional cash proceeds that we have from healthcare sales. But if you take share repurchases, we have that tool in the toolkit for a reason. It’s something that we’ll evaluate and we’ll think about given where our shares are trading currently at an implied cap rate north of 8%.
The fact that we are in a low levered position, the fact that we have some additional dry powder relative to the health care sales, makes it an interesting conversation. So, it’s something that we’ll evaluate and make sure that we’re at allocating capital to the most advantageous space as possible.
Spenser Allaway: Thank you.
John Moragne: Thank you.
Operator: [Operator Instructions] There are no additional questions waiting at this time. So, I’d like to pass the call back over to John Moragne for any closing remarks.
John Moragne: Thank you and thanks everybody for joining us today. And I hope you can hear the confidence and the conviction that we have and the execution we’ve had so far this year and where we believe we’re headed over the course the rest of the year. We look forward to talking with you more about it at the upcoming conference season. Thanks all and have a great day.
Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.
