Operator: And our next question comes from Michael Griffin from Citi. Go ahead, Michael.
Michael Griffin: Just maybe circling up on labor availability, in Conversations with your operators, do you have a sense of kind of where agency labor utilization is trending expectations for the back half of the year? And kind of where do you need to see occupancy to get to really ease a lot of those labor pressures?
Megan Krull: I mean, from an agency perspective, it’s definitely improving. That’s what we’re hearing anecdotally from our operators. And certain operators are able to get out of it completely, but it’s really geographically based. I mean, Florida tends to be one of the states, that’s having severe staffing shortages. So it really just depends on where you are. And in terms of occupancy, we always talk about that national 84% and getting back up close to there. I mean, we’re close to that 80%, but with agencies still high, we just need to work through some of the staffing issues to solve all those problems.
Michael Griffin: Great. That’s helpful. And then maybe switching to external growth opportunities. Can you give us a sense of what the forward pipeline is looking like? You’ve done a number of investments year-to-date. Just kind of can you quantify maybe that opportunity set and where relative to where they might have been previously?
Dan Booth: So I don’t want to naturally quantify, but I will say it’s quite active. We’re looking at a fair number of deals about here in the states and abroad in the U.K. I’d say the U.K. is particularly active. We’re seeing some opportunistic transactions here in the states, and we’re going to try to take advantage of some of those I think what we’ve done year-to-date is a pretty good proxy for what we hope to do in the next latter half of the year. As far as rates go, yes, we’re seeing cap rates move up, we’re starting to bid our deals, as you’ve seen high 9 low 10.
Operator: Thank you. And our next question comes from Joshua Dennerlein from Bank of America. Go ahead, Joshua.
Joshua Dennerlein: In the opening remarks, you mentioned there was a certain subset of the portfolio still covering low 1x, I didn’t hear them out. But just curious, is there any kind of big picture theme that’s causing that part of the portfolio to lag versus like the overall at 1.15?
Taylor Pickett: I don’t know that there’s necessarily a theme. When you break down those buckets, LaVie, the big piece, obviously, when we talk about that, we’re fixing that. But then you have another significant piece of that we’ll know that we have pretty good visibility that’s going to, that they’ll climb out of that below one bucket. And then you get back to the handful of operators where there’s not a lot of visibility. They’re small. It’s under 3%, and that’s where we’ve run historically for many, many years. So, I think there’s a pathway, honestly, to look at that below net bucket, and it’s going to take a little while, where we climb for that bucket and get back into less than 5% of our portfolio there. It’s not going to be next quarter, but we have visibility. It’s pretty good.
Joshua Dennerlein: And maybe just the part of the bucket that you expect to climb out of that, any kind of timeframe on that, is it — or — yes, I guess, maybe just time frame, just I’m trying to think through it.
Taylor Pickett: Well, I think I’ll give you the big two examples. LaVie is just subject to finishing the restructuring. And as Dan mentioned, it’s taking longer than any of us on either side of structuring table, but it will happen this year. And then you have 8.1% that are running currently above 1x. So that’s just a question in terms of how we report, waiting for the trailing 12 to catch up. So, you’ve got almost — you’ve got almost 18% right there in those two buckets. And then you have the restructuring activity. So, I think a lot of this will have reporting visibility going into Q1 that will make a lot of people more comfortable.
