So I don’t have a precise number, because it’s all across the board. Everything from ground leases where you have none of the construction costs to some of the larger facilities that are brand new where you’re bearing a majority of the construction costs, but not all. But it’s something that we focus on in our underwriting. I would draw a distinction of medical retail to some other forms of net lease where you’re in at a substantial premium to any reuse scenario and sometimes maybe double what any reuse would be. And those are the kinds of transactions we’ve really stayed away from. And maybe to circle back to Rob’s question about the distinction between restaurant and other forms of net lease we look at, what I would say is where we’ve seen the most cap rate move is in the buildings that we were not buying before.
Experiential retail, new concepts, brand spanking new brands with no track record, highly specialized used buildings, things of that nature.
Jim Kammert: Okay, very good. Thank you. And just circling back, clean up on the red lobsters, are you pretty much done on that sort of culling? And can you remind me, aren’t there remaining assets largely under a master lease?
Bill Lenehan: They are, and the ones that aren’t are very well covered. We have a couple of properties still on the market, but I don’t think it’s a major item. We had success selling what we wanted to sell. There’s a couple more out there, but again, what remains is a very high quality and mostly in a mass release. And Red Lobster’s doing better.
Operator: Thank you. Our next question comes Connor Siversky from Wells Fargo. Connor, please go ahead.
Connor Siversky: Good morning out there. Thanks for the time. Maybe just another one on the medical retail presentation. Appreciate the detail in that presentation. So, you know, you describe the scoring criteria you use for restaurant and other net lease assets. You know, I’m wondering if you applied this same kind of scoring system to these assets which might be a little more esoteric in nature? And then with that scoring system in play, is this potentially where you think you could find maybe higher yields on acquisition that would screen more favorably against the cost of capital as it sits today?
Bill Lenehan: Yes, Great question. So I would say that our scoring model for restaurants has a north of 80% overlap with how we think about medical. Lease term, credit, rent per square foot, rent growth, is the lease truly triple net, et cetera, et cetera. Those are very similar between the different property types. The locations are similar between the property types. As far as finding higher yield, you know, we’re really not focused on thinking about the world that way. We are trying to find high-quality properties at a yield that pencils, not here’s our cost of capital today and Pat and Josh go find things that are north of that and we’ll convince ourselves that the risk is acceptable. So we really look at the world a different way, which is focusing on quality and making sure that what we buy, we’re very happy with because we’re going to live with it for a long time.
Connor Siversky: Got it. Understood, and I know it was touched on earlier, again, in the context of the cost of capital as it sits today, but at the margin for any acquisition, how should we be looking at that funding mix or modeling that funding mix?
Bill Lenehan: Well, I think for now, equity would be the primary. We have 1031 exchange proceeds, as Gerry mentioned, sitting on our books, so those need to be used. We’ve obviously considered that and made appropriate, you know, high-quality acquisitions in our pipeline. But what I would say, as Patrick alluded to, this is the most target-rich acquisition environment that we’ve had since inception. There’s very good stuff to do. Pricing is coming our way. It’s just not there yet with the stock price that we have. So, to the extent that you see our stock price rebound, you will see us aggressively torque the business to take advantage of very attractive acquisitions. But today, if we acquired assets at our stock price, we would be buying buildings for practice. And we’ve bought 700 buildings since inception. We don’t need to practice.
