Paul Pittman: No. The renewable energy demand across the country for ag properties is high and probably accelerating. It’s really got to be looked at on a kind of a state-by-state basis because each state sort of has its own set of policies about that. But the states that have really become aggressive there is just endless demand. I don’t have the exact statistic my fingertips. We have an immense amount of auctioned acres at this point with solar and wind potential. Auctioned acres, as you probably understand, means they’re basically paying you to stand still while they do a three to five-year study of the property to see if it’s feasible. The percentage that end up from auction into permanent projects has gradually grown through time.
Early in this process, six, seven years ago, kind of people were throwing mud against the wall and auctioning every property. Now, they are — because of the size of the auction fees, which are often $50, $60, $70 an acre per year, the solar developers are actually doing quite a bit of due diligence before they even put it under auction. So I — we’re not seeing really any pullback there. As you know, it’s very driven by government policy more than economics. And as long as those policies don’t change, I think there’ll still be quite a bit of demand for that.
Tousley Hyde: Got it. Thanks. That’s all I had. Congrats on the quarter.
Luca Fabbri: Thank you.
Paul Pittman: Thank you.
Operator: Your next question comes from the line of John Massocca with B. Riley. Your line is open.
John Massocca: So quick question on the disposition front. Sorry if I missed this in the prepared remarks, but what was kind of the rough split between row crops and kind of permanent crops in terms of maybe assets that were capital recycled out of?
Paul Pittman: Luca, do you know, in dollar terms, because that’s what’s relevant, not acres.
Luca Fabbri: Yes. I would say it’s a relative minority of permanent crops, although we did sell some and we have some under contract still. James is trying to quickly kind of pull some numbers together.
James Gilligan: Yes. As Luca said, it’s mostly row crops that we sold; probably on the order of $25 million of permanent crops is what we sold year-to-date. So the vast majority has been in the row crop side of the portfolio.
Paul Pittman: Yes, that’s largely reflective of the overall portfolio to just put it in context right. We’re talking — we’re about a 25% to 30% specialty crop portfolio, and that’s roughly what we’ve sold of specialty crops.
John Massocca: Okay. And I know most of kind of disposition proceeds are going into kind of paying down debt and buying back stock. But is there a significant difference or a meaningful difference in terms of the yield on dispositions versus what you’re maybe seeing in the acquisition market or the acquisitions you have closed recently?
James Gilligan: Yes, I can take that one. So when we think about sort of what we’re selling and plan to sell this year, we’re looking at, again, if everything closes, we’re looking at selling kind of NOI yield that’s approximately 3%, 3.1%. And we think what we’ve got in the portfolio today, given where we’re at today. We’re sort of trading at a higher yield. And our new acquisitions, we’re targeting stuff that’s north of that. Again, it depends on the region. We’re being very selective, but we’re generally looking at 4% or higher where we can find it.
John Massocca: Okay.
