Jeff Theiler: Hey, Tayo. This is Jeff. Good question. So what we think we’ll get a good return out of that investment just on a monetary basis. But really, the investment is also designed to help us stay in front of the latest technology, the latest real estate technology. And to your point, I mean, help us manage our operating expenses going forward. So we think it is going to be a good return on the investment side. But it also gives us front row access to all these new companies that are coming out with innovative real estate solutions, and really helps us be at the forefront of, having the best possible management of our properties and keep our operating expenses low for our tenants and which, you know, of course helps the company itself.
Tayo Okusanya: Are you partnering with any of those companies at this point and seeing any kind of result?
Jeff Theiler: You know, Tayo I think it’s JT€“ I think, I think part of the opportunity, you know, in this PropTech investment we made is to work with other REITs to kind of identify and benefit from some of the best IT minds out there. So I don’t think our shareholders are looking for us to create our own IT platform. I think benefit is we’re investing alongside other REITs and other institutional real estate owners to kind of develop IT tools that we will benefit from and at the same time, have a great IRR or return on investment from those €“ that direct investment. So, we haven’t seen anything directly but we get to explore these tools, which is part of the opportunity that are under development or that are kind of leading-edge technology. So, we’ll see some long term benefits eventually.
Tayo Okusanya: Right. And then one more for me if you can indulge me, just some capital allocation question. So some of the recent equity issuances again, what again are going to be the use of the funds, especially this kind of given the issuance of that your current kind of implied cap rate. And lastly, how do we think about the dividend outlook going forward, given like the 96% EFFO payout ratio?
John Thomas: Yes, Jeff?
Jeff Theiler: I’d be happy. Hey, Tayo so €“ yes, we did some equity issuance on the ATM, we’re trading at an implied cap rate in the mid 6% range. That’s consistent with where we’ve seen Class A medical office buildings being marketed. We haven’t seen many transactions closing still. And cap rates have really only been moving in one direction which is up, so we thought it was prudent to strengthen our balance sheet at these levels, which we think is going give us a great opportunity when the market stabilizes at what we think the right numbers are to really be an active investor and to really generate strong earnings accretion, which is a certainly a departure from the previous times when cap rates were so low, it’s hard to generate earnings accretion, we think we’re going to be able to get best-in-class, Class A MOB’s at really good pricing.
So, we feel good about the strengthening of the balance sheet. You know, obviously in the meantime, it also pays down our variable rate debt, which is seems to €“ also seem to be only moving in one direction, which is higher with the Feds increases. So, we think it’s a smart capital allocation decision.
Tayo Okusanya: Great. Thank you.
John Thomas: Thanks Tayo.
Jeff Theiler: Thanks Tayo.
Operator: Our next question comes from Michael Griffin with Citi. Please go ahead.
