Scott Brinker: From my seat, like our lab business, even 2 years ago, we’re essentially at 98%, 99% occupancy, essentially nothing in redevelopment and a completely pre-leased development pipeline. From where we sit today, we’ve got some upside in occupancy on the operating portfolio. Scott and Mike are working on. We’ve got a pretty big redevelopment bucket that has a lot of NOI upside and then a fair amount of development that hasn’t been leased yet. So just on Amgen, Sorrento and Vantage alone, you’re talking about $50 million, $60 million of NOI upside. I don’t know if that’s 25% or 26%, but we do think it’s achievable. Those are all Class A assets. There is a cost of capital, so maybe subtract a little bit of that upside from an earnings standpoint but it’s substantial. So our lab business 2 years ago was kind of hit full utilization, for lack of a better word. And today, there is a fair amount of upside for us to go recapture.
Rich Anderson: Okay. Yes, fair. Thanks for that, Scott. The second question, shifting over to MOBs or outpatient medical, whatever we call them, so you guys are guiding to 3% same-store would combine with DOC. Your big pure play peer Healthcare Realty sees a path to same-store going up over the next couple of years beyond that through some occupancy lift and whatnot. I’m curious if you have a game plan is 3 – sort of like that’s your starting point, but do you see more growth out of medical office now representing the majority of your portfolio? Do you see more growth potential beyond that 3%, which has been sort of the legacy level of growth for medical office over the many several past years? Wondering where you see it going from here. Thanks.
Scott Brinker: Yes. I mean it’s really been a 2% to 3% growth business for the last decade. We do see that accelerating. It’s not going to 10%, but we do think it’s going to improve for the forward 5 to 10 years versus the previous 5 to 10 years, just given supply demand, construction cost and therefore, our ability to push rents. So our guidance this year is at the very high end, actually well above the high end of any guidance we’ve given in that segment historically. We have a pretty good track record of beating our same-store guidance and our earnings guidance. So you can assume that hopefully, there is some upside to the number that we gave. But it’s a combination of occupancy. Obviously, we were up 40 basis points quarter-over-quarter, I think like 60 basis points year-over-year. All-time high re-leasing spreads, all-time high retention. So yes, we do think that there is some upside to the historical outpatient medical growth rate.
Rich Anderson: How do you condition tenants to be okay with higher rents, right, because they have lived with this world and you got to be careful about sort of screwing up the system, so to speak. Is it there for the taking, you think? Or do you sort of have to sort of thread that needle?
Scott Brinker: Yes. And I’ll ask John and Tom to comment as well. They are both here today.
Tom Klaritch: Yes. If you look at, Rich, the rents, I mean, we’ve seen – what’s actually benefited us is the new developments because the market rents that are coming in on those is typically 20% or so higher than what the existing rates are. So it gives us a little room to grow. And then if you look at our tenancy back 20 years ago, it was 25% hospital leases and 75% third-party physicians. Today, that number is 65% hospital. So you do have a little more ability to push the rents up when you’re dealing with the institutions like that. John, if you have anything to add?
Shawn John: Yes. No, I agree with that, Tom. And I think we’ve seen six straight quarters of well above that in renewal spreads and then conditioning – your comment about conditioning tenants, the options, as Tom said, historically was to go to a new building, but the rents now are 20% higher than the new building. So it’s just – it’s much more, I guess, negotiating leverage. And if you’re raising the rents 5% to 10%, that’s better than the 20%, and that’s the conditioning. And then inflation increases, that’s more important, I think, than the renewal spread right now, we’re starting to get across the board annual increases that are fixed of 3% to 4% to 5%, people don’t want to do inflationary CPI increases.
So that just adds to that continuous stream. So it’s more and more of the portfolio roles, more and more of the rents are going up 3%, 4%, 5% on renewal spreads and then you’re adding a 3% to 4% annual increase. So the next 10 years, as Scott said, is very optimistic.
Rich Anderson: Great. Great color, thanks.
Operator: Your next question comes from the line of Wes Golladay with Baird. Please go ahead.
Wes Golladay: Hey, good morning, everyone. Can you comment on what’s going on with the pushout of collecting on the seller financing, if it was pushed out a few months?
