Wes Golladay: Got it. And then when you look at the acquisition pipeline, we’re hearing a lot of sectors where there’s just not a lot of competition. It’s really down year-over-year. Are you seeing the same thing? I guess what’s driving the volume that you’re seeing now? Is it more volume? Is it a higher close rate a little of everything? There’s kind of a little bit of a snapshot of the competitive landscape today versus maybe a year ago.
Dave Dupuy: Yes. It’s — listen think that we’ve got a little bit of a tailwind in our business from an acquisition standpoint, Wes. I mean, if you think about our goal has always been to drive that high single-digit cap rate. And back when money was free during COVID it was really tough to find those attractive real estate acquisition opportunities in those — in that yield framework. Today we’re seeing a much different case where all of a sudden those high single-digit cap rates are really market. And the other thing, we’re seeing too because historically based on the size of the assets that we were acquiring to the extent we did have any acquisition it was there — any competition it was very little competition but it was usually 1040 exchange buyers and those buyers really are having difficulty getting any of their deals financed.
And so anyway, I wouldn’t point to one thing, but I think in general, we’re seeing more opportunities for the type of real estate that we like and less competition for those acquisition opportunities. So it’s been a nice overall tailwind to the business.
Wes Golladay: Got it. And then if I could squeeze in one more. I hope that CapEx is up a little bit year-over-year. Is that a function of the leasing that you’re doing? And then do you have an outlook for the second half of the year?
Bill Monroe: Yes. We don’t provide any, sort of, guidance with regard to CapEx. But yes I think some of that additional CapEx it’s a variety of things. I think obviously we’re looking to make improvements in some of our facilities. And often we’ll do that around some of the redevelopment projects that we have on the books. And so, I think you’re seeing a little bit of additional CapEx as it relates to some of those redevelopment projects by the way are around long-term leases. And in general, we’re looking to get our yield on top of a good portion of that CapEx. So anyway, I would say it’s that and just kind of the complexion of our assets today. And so anyway we’re not going to provide any guidance related to it, but I think it’s kind of just some of those issues that I just outlined.
Wes Golladay: Okay. And a quick follow-up on that. So you do have some redevelopment going on and I assume that comes when the facility open so you may have some I guess pent-up NOI coming maybe in 3Q or 4Q for the spin that you did in the first half. Is that a fair assessment?
Dave Dupuy: I think that’s right. I think that’s right. Those projects are coming in over time. But yeah, it’s — we hope that those will come online. We’ve had one of those projects come online in June and we expect to have other ones come online throughout the rest of the year.
Wes Golladay: Great. Thanks for the time everyone.
Dave Dupuy: Thank you.
Operator: The next question comes from Jim Kammert from Evercore. Please go ahead.
Jim Kammert: Hi. Good morning. Thank you. I hate to dwell on Genesis. But hope educate me, I apologize. In the event a new tenant takes over a new operator, they don’t have any ability to tweak the existing ongoing lease terms between yourselves and then do. There’s no way for them to cram down the new lease kind of parameter on you?
Dave Dupuy: No. There’s no ability for them to do that Jim.
Jim Kammert: Great. Great. And then again on the same topic, but I’m sure your team has been out there looking at the other eight locations with Genesis. Would you characterize sort of the utilization? I know you seem confident in the quality of the real estate location, but are patients coming into these properties, it’s a viable cancer treatment? I’m just trying to get a sense of what’s happening at the operational level if you have any color on that?
Dave Dupuy: Yeah. We actually — our asset management team specifically made sure that we went out and did some visuals on each of the buildings. And yes there — where they’re providing healthcare, it appears as though they’re open for business as usual. So we take — obviously we take comfort associated with that.
Jim Kammert: That’s helpful. Thank you very much.
Dave Dupuy: Thanks, Jim.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Dave Dupuy for any closing remarks.
Dave Dupuy: Thanks, Jason, and thanks everybody for their support and look forward to talking to everybody next time. Have a good week. Thank you.
Operator: Conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
