Pete Scott: Yes. The seller financing, I mean, we actually did quite well off of providing that on our senior housing sales, which were 3, 4 years ago. So it’s a business that we actually like if we provide the right LTV to the counterparty. With these loans, we’ve gotten repaid a lot over the last few years. I mean the balance was, I think, $600 million, $700 million. It was pretty high, down now to about $175 million. And our guidance for this year, call it, outlook, we had zero to $100 million getting repaid. So $50 million at the midpoint, could be a little bit higher than that. And obviously, that’s probably more front of the year weighted as well. I think our expectation is if it gets repaid, it will get repaid in the very near-term, if not, it would get extended, which obviously, if it gets extended versus repaid, then there is an earnings benefit to that.
But again, the expectation given where the LTVs of those are is that as the counterparty sell assets, we’d expect to get those loans repaid and probably more towards the front end of the year.
Wes Golladay: Okay, thanks for that. And then I guess, can you comment on maybe how the conversations are going on, on leasing lab space? I think you had a new lease just under 300,000 square feet in the fourth quarter. It looks like some good activity in the first half in January. And maybe there is a little bit of a lag effect, but there is been some M&A in this space. There is the biotech in that that’s had nice balance. Any noticeable change in your conversations?
Scott Bohn: Yes. Wes, this is Scott. Scott Bohn I think from a demand perspective, we’re in line with pre-COVID levels across all three portfolios. Boards are still cautious, as Pete mentioned, is taking new space and expansions and things like that. We are seeing some groups who have been on the sidelines are kind of – have been floating around in the market, really kind of starting to dig in on space plans and getting real as they approach fundings at some of the capital markets, both private and public open up. So, I think that we are off to a strong start for the year. We like the way that the pipeline is shaping up. The underlying fundamentals that Scott mentioned in his prepared remarks are strong indicators of future demand.
Wes Golladay: Got it. Thanks for the time.
Operator: Your next question comes from the line of Jim Kammert with Evercore. Please go ahead.
Jim Kammert: Good morning. Thank you. The Q&A is kind of built on some of this, but could you provide a little bit more detail regarding the $700 million to $800 million of development or re-dev and CapEx guidance that you provided because I ask you kind of reconcile to a known development and redevelopments and what remains to be spent. And even if that were all spent in ‘24, I think that’s roughly half of kind of a $700 million kind of target. So, is this other activity at AOI, Vantage, Sorrento, etcetera, if you could just help kind of what are the major components of that in terms of that total spend for ‘24, please?
Pete Scott: Yes. Happy to take that, Jim. I mean obviously on the development side, we still have to finish out the Vantage project, which is pretty significant. We have also got some new HCA developments that are kicking off. I mean that’s a great program for us, and we would like to continue to recycle capital and keep that program going and the yields are starting to increase on that, which is great. I would say what has gone up pretty significantly year-over-year as you look at 2023 versus 2024 is the larger redevelopment bucket. I mean we are still redeveloping our Pointe Grand campus. We have got another asset given the Astellas [indiscernible] space there as they took on the lease at Vantage. So, we have got another large building there.
Plus we will have the Portside buildings Yale [ph] as well as Sorrento. So, I would say that the biggest components of that are finishing out the current development pipeline as well as the redevelopment ticking up. And that was always our expectation was that we would have to redevelop the specialty Portside when those leases expired. I mean Amgen was on that campus for 20 years and really, we had to put zero CapEx into that over that period of time. So, we did really, really well on that investment. But 20 years later, there is some capital that has to go into that. Those are really the biggest drivers of that spend this year.
Scott Brinker: Yes. There is no new starts in lab in that forecast. There is a couple of new starts in outpatient medical. Some are from legacy Healthpeak, others from legacy DOC just commitments that were made in some cases, 2 years ago. Any new commitments, though on development, it’s because the yields are attractive, 7%, 8%, highly pre-leased. So, we continue to find those very attractive and would recycle capital so that we can go ahead and move forward with those.
Jim Kammert: Great. So, basically, as this unfolds, the lease opportunity becomes more apparent, that’s when those shift to become more explicit redevelopment or CIP activities, is what you are saying?
Scott Brinker: Yes. Correct.
Jim Kammert: That’s fine. And secondly, if I could, you mentioned, I think Scott Brinker that you are looking at all capital alternatives. What are the latest thoughts on the CCRC portfolio? Is that still a potential, or is it still room to grow on the NOI and FFO contribution, or is that nearing maturity that might be a capital event for you?
