R.J. Milligan: That’s helpful. And then, John, maybe you could just elaborate a little bit more on the acquisition environment. Obviously, there’s been some adjustment in this higher for longer interest rate environment. I’m just curious what you’re seeing out there in terms of sellers and seller expectations.
John Albright: Yes. So the good news is we’re seeing plenty of opportunities. And so we’re kind of being patient and bidding appropriately for where we think there’s value. But there are clearly other buyers out there. But it’s really finding given that we’re an all-cash buyer, we’re seeing a lot of the competition on the buyer side, needing financing. So it’s really the sellers who they kind of go through the analysis. Do they want to take a risk going with a buyer that needs financing, subject to financing, which that buyer is typically higher than us or do they just want to go with an all-cash more certainty buyer at a lower price. And so it’s really waiting for those good opportunities for us. So the good news is there’s plenty of opportunity out there.
So I think sellers are — if they’re in the market now, it’s really part of their plan to sell, whether there’s financing that’s coming due, whether there’s redemption queues and the funds that own these properties or it was just basically partners looking for time to sale sort of thing. So it’s a good environment, and we’re just trying to be patient.
R.J. Milligan: Thanks, John, just to add to that, I’m curious what is the interest rate environment where you think that there’s going to be more transactions? Is it stability in interest rates? Or is it lower interest rates? Because obviously, this morning, we’re seeing the 10-year come down and just there’s been a lot of sellers who said, we think rates are going to come down later, so we’re going to stay on the sidelines. So I’m just curious, is it — are you looking more for stability or just for lower rates in general?
John Albright: I think from the sell side, people are not really waiting. If they’re in the market now, they need to sell in the next six months or so. I think that as far as your general question there, I think with stability and kind of knowing that there’s going to be some rate cuts in the future. I think you’re going to see more buyers come off the sideline. And so that’s not going to be good for us. But we’re all trying to kind of get some transactions while the getting is good. So we are surprised to see some transactions happen at cap rates that are just slightly above the 10-year. And so it’s just like how does that math ever work. But there are some buyers that that kind of fits in their model. So I think any kind of stability in interest rates is really kind of does the trick.
R.J. Milligan: Thanks so much. That’s it for me.
John Albright: Thank you.
Operator: Thank you. One moment for the next question. And our next question is coming from Matthew Erdner of Jones Trading. Your line is open.
Matthew Erdner: Hey, good morning, guys. Thanks for taking the question. Could you talk a little bit about acquisition timing? Should we expect that to kind of happen more so in the near-term? Or is it back half ended? And then — can you also talk about the difference in opportunities that you’re seeing between the loans and just overall asset acquisitions?
John Albright: Yes. So the acquisitions are more kind of back half of the year. We were hoping to have something in the first half of the year, but didn’t work out. With regards to loans, there are certainly some acquisitions that we weren’t the winner, and we felt like there would be buyers that would need some help on the financing side. So we’ve offered it up, but so far, no takers. But I think we’re hopeful that we’ll have a little opportunity there as there are some really some great basis sort of property value add, a lot of heavy lift. So the financing market is not going to be very productive for these buyers, and it will be a pretty big gap in the capital structure, which we hope to fill.
Matthew Erdner: Yes, that’s helpful. Thank you, guys.
John Albright: Thank you.
Operator: Thank you. One moment for the next question. And our next question will be coming from John Massocca of B. Riley Securities.
John Massocca: Good morning. Just kind of quickly on the old Regal box. You mentioned those — the rents are kind of higher versus what Regal is paying. I guess how do they compare to Regal’s rents, maybe pre-bankruptcy?
John Albright: Yes. So pre-bankruptcy, it’s basically double-digits percentage up from their previous rent.
John Massocca: Okay. Very helpful. And then the Lake Worth loan investment or loan you put in place. Are there any kind of options on that to purchase the property or any kind of other kind of moving pieces to that loan besides just obviously, the interest income and the drawdown?
John Albright: Yes. There’s definitely, we do have a right of first refusal if certain cap rates are above a certain level. So we do have the right to acquire if the yields get to a level of interest to us.
John Massocca: Okay. That’s very helpful. And then kind of last kind of quick detail question. As we think about disposition guidance, I mean, the seller loan repayment included in that? Or to Sabal? Or is that kind of excluded just given the transaction occurred last year?
John Albright: Yes, it does not include that.
John Massocca: Okay, that’s it for me. Thank you very much.
John Albright: Great, Thank you.
Operator: Thank you. This concludes our Q&A session. As well, this concludes the meeting for today. Thank you all for joining. You may disconnect.
