Operator: [Operator Instructions]. Our next question comes from the line of Rob Stevenson with Janney Montgomery Scott.
Robert Stevenson: Can you talk a little bit about how extensive your tenant watch list is? And can you remind us, do you have any Genesis exposure at this point?
Robert Kiernan: So from Genesis exposure is extreme — I’ll start with the second question, second part. Genesis exposure is very limited, and there’s no — it’s 1 asset or 1 lease and it’s about 7,500 square feet, and there’s been no issues with that lease to today and none are expected. And in terms of the watch list, our properties are performing very well. I mean we go through a regular quarterly process to assess the portfolio and focusing on any significant — whenever there’s any significant items that are coming up relative to a particular property or lease. And to this point, our watch list of tenants is very limited.
Robert Stevenson: Okay. That’s helpful. And next year’s a big one for lease expirations. Any known move-outs of consequence? And how are those conversations going with the major tenants, what type of spread over expiring leases are you looking at today?
Jeffery Busch: Let me start on this. Yes, nothing spectacular in terms of move outs. The big tenants are pretty good, and it’s typical for ’24. We are targeting to try to get our leases up increase in — a little bit of increase more. Now being triple net, they pay most of the expenses. So you’ll see on most of our assets are triple or absolute net. So they’re paying most of these expenses. So to add on to the lease, it’s more negotiations, but we don’t really hit a lot of inflation in what we do because they’re paying the items that have heavy inflation. So we’re trying to get more of an increase as opposed to 2 points — that we got — we’re targeting to go to 2.75 or above.
Robert Stevenson: Okay. That’s helpful. And then, Bob, the revolvers, I guess, $665 million now given the drop in the spread, given the lower leverage, given the volatility in the debt markets, is this your best cost of debt right now?
Robert Kiernan: Right now? I mean it’s — we’ve looked at it as our most flexible cost of debt in terms of just being able to — we don’t want to increase our debt beyond where it is today. So from a longer-term planning perspective, we’re really looking to bring our leverage down. So not necessarily looking to add any more permanent debt or longer-term debt at this point. So I look at the credit facility as our best source in the near term as we, again, look to, again, run at a lower leverage point. Respectively, we would — again, as we get larger and would lock in debt for longer term, absolutely would look to term out additional debt to not be subject to the spike that we’re seeing here in the short term on the near-term rates.
Robert Stevenson: Okay. And then I know you don’t have any material debt maturities until ’26. But can you remind us the 2 big term loans? Do the swaps on those go out to ’26 and ’28 for the term? Or are they shorter term in nature?
Robert Kiernan: They do go out. They both go out — we have swaps that go out through the maturity of both of those term loans. And in fact, we’re going to start to see some of the benefit of forward starting swaps that we’ve put on in the past on the $350 million term loan. So as we extended that out in past years, we put additional swaps on as we add a term into that $350 million term loan. So I think the positive here is that the forward starting swaps are going to — they’ll start to kick in here in the third — one we’ll start to kick in here in the third quarter of this year and then next year similarly in the third quarter, we’ll see actual step down in the rate on that $350 million term loan. But both loans are swapped out till their maturities.
