Jonathan Hughes : Okay. That’s helpful. I guess maybe on the operational side then. Is there some expected vacancy in the portfolio that’s maybe preventing absorption from running a little higher? I think the midpoint is what, 60 bps. I think it was 50 bps of absorption last year. So I’m just trying to — it is improving. I’m just trying to square some of the bullish comments for the strength of the outpatient business that you mentioned earlier with just that what I would have thought maybe was more absorption upside.
Todd Meredith : Yes. One comment there on the guidance is that, that is overall same-store. So that’s multi-tenant and single tenant. We are — you’re somewhat diluted by the fact that your single tenant tends to run closer to 100% occupancy, and you don’t expect a lot of changes. So it gets a little diluted by that if you look at the ratio, so it’s really a more bullish sentiment on just multi-tenant, which is where the opportunity lies. So I think to your point, there’s a little more than what I would call 40 to 80 as our guide is for the total behind the multi-tenant, more 50 to 100-plus basis points. The only other comment, though, that I would add is that we’re very bullish. We see a lot of early signs. We’re getting the leasing momentum underway.
But it takes — there’s a process for build-out. We’ve got this pent-up square feet, plus of occupied but not yet — or excuse me, leased but not yet occupied. And building that up over time — it takes a little time, and then it might take six months plus build off the space, convert it to occupancy. So it does take a little time to deliver it, but obviously, we’re seeing the right trends in place to really see that coming through in the second half and certainly moving into ’24.
Jonathan Hughes : All right. And then just one more for me. Just back on the kind of run rate FAD and dividend coverage, and you answered most of it with the prior questions. But can — I don’t think — can you just remind us of what’s the target payout ratio? Kris, then you said it hit kind of high 90s this year, but where can we expect that over the longer term?
Kris Douglas : Yes. I would say we will continue to drive that lower. And you actually have seen that in our history. We were at a point in time going back eight, 10 years ago, we were over 100%. And through the improvement in the portfolio and growth, we were able to drive that down into the mid- to high 80s. And — but our expectation from there was to continue to drive it lower. That was before some of these interest expense pressures and things that we’ve talked about. So long term, our goal is to continue to drive that lower with — at the same time, being able to provide some growth in the underlying dividend.
Todd Meredith : Yes. I think in simple terms, below 90 is certainly directionally where we want to get back to. But we’re obviously navigating the current environment and certainly want to see it go into the 80s in the not-too-distant future.
Operator: We now have Mike Mueller of JPM.
Mike Mueller : Kris, I think you talked about some of the swaps not being in the $0.41 run rate. So when you layer everything into it, the full impact of swaps and then looking at what you’re expecting for acquisitions, dispositions, do you think you’ll end the year with a run rate that’s similar, higher or lower to that $0.41 now?
