Nick Joseph: Yes. No, that makes sense. And then just on your disposition guidance for $100 million to $120 million this year. How are you thinking about pricing for those, particularly maybe relative to where you are thinking acquisition cap rates trend going forward?
Steve Horn: So, when we look at dispositions, it’s kind of €“ you got the offensive dispositions that somebody offers us a cap rate that they just love the real estate a lot more. So, they will trade significantly of what we are deploying capital at. And then you have some defensive sales because of our relationships that we will sell because we know they are not going to renew in 5 years, 7 years from now. So, we will sell those. And those cap rates typically will be where we are deploying money at the time into new 15-year, 20-year leases. But the overall, just like this past year, we got kind of 5.9 exit cap, and we were at 6.4 acquisition cap. I would see the same spread going forward or expect the same spread.
Nick Joseph: Thanks. That’s helpful.
Operator: Thank you very much. The next question is coming from Linda Tsai of Jefferies. Linda, your line is live.
Linda Tsai: Yes. Hi. In terms of credit loss being relatively contained, what are you assuming for occupancy at year-end?
Kevin Habicht: We are assuming fairly flat occupancy. I mean it’s the 1%, gets fully utilized, I guess you would suggest maybe there is a 100 basis point loss there potentially. But assuming that doesn’t happen, we are assuming, like I say, fairly flat occupancy.
Linda Tsai: Thanks. And then beyond the drug stores, can you talk about some of the other tenants you invested in during the quarter?
Steve Horn: During the quarter, it’s kind of representative of what we did all year. Auto service sector for the year was roughly 35% of our deployment of capital. And within the auto service, it was €“ the car wash is a big year. And then we did some child daycare services as well.
Linda Tsai: And then how does the pipeline compared to what you invested in €˜22 in terms of make-up?
Steve Horn: The make-up, again, with the vast majority of our deals coming from our relationships, I think it’s fair to say we tend to represent what our current portfolio looks like going forward. That being said, our acquisition officers that team is continuously looking for the next opportunity. So, we will throw in one or two lines of trade in there historically that we haven’t done. But the vast majority, Linda, will look like our current portfolio makes up.
Linda Tsai: Thank you.
Operator: Thank you. The next question is coming from John Massocca of Ladenburg. John, your line is live.
John Massocca: Going back to the acquisition guidance, what’s driving the 30-70 split you are seeing in 1H versus 2H? Just trying to understand the kind of broad positivity on the pipeline, but a call for kind of less acquisitions in quarters where you theoretically should have more visibility into transaction flow.
Steve Horn: The 30-70 split is the approach that we are taking this year. We had a robust fourth quarter, and we have made the conscious decision to less the price discovery close the gap. So, we are planning to do a little bit less in the first half of the year close to that 40%, we typically would guide to. Just being a little bit more selective, no need to put the pedal down and go.
