Ronald Camden: Hey, just two quick ones. Staying on the balance sheet. So, the — if I look at the $66 million plus or minus equity issuance post Q, just trying to get a sense of what that was put towards? And sort of the related question to that is, so if I annualized your interest costs for Q, I get to sort of an $80 million number. Is that sort of the right ballpark, or it’s some debt get paid down? Hopefully that makes sense.
Jeff Theiler: It does. Hey, Ron, it’s Jeff. So yeah, we put that towards paying down the revolving line of credit. So, obviously we’re €“ we expect eventually to redeploy those proceeds into acquisitions, but in the meantime, we pay down the line of credit with it. So it’ll bring the interest expense down a bit.
Ronald Camden: Got it. And then just on the acquisition, I know you guys are not providing guidance given sort of what you’ve talked about and €“ can you talk a little bit more about just what the competition is like why are cap rate thing so tight, who’s sort of stepping up and still buying here and why haven’t we seen sort of more widening? Thanks.
John Thomas: Yeah, it’s JT. I think €“ I think it’s just a seller’s holding out and hoping. So essentially hope, conflicts with, rising interest rates on short term loans that were used to acquire for four cap, five cap assets in 2017 to 2020 range. But, I think €“ I think until we see kind of more distress on the ownership side of the capital side, medical office billings. We won’t see a lot of trades occurring. So it’s moving in the right direction. It just takes time for the market to kind of €“ kind of rationalize between cost of capital and it’s been a 20 year bull run, and in medical office, and the 10 year treasury, and kind of other things. So it’s €“ it just takes time for the €“ when interest rates rise 400 500 basis points like they have in the last six to nine months.
It just takes time for them €“ in the kind of the market to reconcile itself. So it’ll get there and, we expect to €“ we expect a pretty good backup €“ backup €“ back half of the year. But the market is going to get there.
Ronald Camden: Got it. That’s it for me. Thanks so much.
John Thomas: Yeah. Thanks.
Operator: Next question comes from Michael Carroll with RBC. Please go ahead.
Michael Carroll: Yeah. Thanks. JT, just staying on the MOB private market valuations, I think you highlighted that assets were being marketed in the mid 6% cap rate right now. Is that a fair valuation or do you think it needs to go higher from that mid 6% type cap rate?
John Thomas: Yeah, Mike, great question. I think that’s when they’re marketed that rate. Almost by definition, that means the price should be better €“ from a €“ shouldn’t move up from that range. And so, frankly, the fact that assets are even marketed, above six is a dramatic change from where they were marketed six months ago, and they still need to move a little higher. So, we’re waiting patiently. We’re not €“ we’re not out of the market, as far as, you know, exploring opportunities. But, when we €“ when we make an offer on a Class A asset that we’re really excited about it’s €“ it’s going to be higher than, mid 6%.
Michael Carroll: So we’re thinking more of like a high 6%, are we talking about 7% type range, or I guess, like mid 6%, obviously, pretty wide range? I mean, are we talking higher than that?
