Mark Theine: Yeah, the obvious ones would be snow removal and markets — North Dakota was hit pretty hard with our snow removal costs in the fourth quarter, but really don’t have a lot of seasonality in our operating expenses outside those obvious ones. And again, our highly occupied triple net lease portfolio help insulate the overall NOI same-store numbers there. But, clearly, we watch that carefully for our healthcare tenants and partners, because it’s the overall occupancy cost that matters when we talk to them about lease renewals.
Steven Valiquette: Got it. Okay. All right. Thanks.
Operator: The next question comes from Mike Miller with JPMorgan. Please, go ahead.
Mike Miller: Yes. Hi. So, for two questions. The first one, on the $200 million of development funding that’s under discussion, I guess, if all that comes to fruition, how much capital do you think could go out the door in 2023 and generate a return on it? That’s the first question. Second one is what’s the return profile on piecing these smaller condos together, like in Atlanta, versus a typical building acquisition that you would make?
John Thomas: I can’t help but laugh at the second question, because it’s a great question. Actually, it’s — the long term return profile there is much better than about anything else we do. It just — it’s just taking time. It’s a very strategic location. For some reason, 20 years ago — 25 years ago, physicians and hospitals thought condo projects for the right way to build buildings and invest in buildings. And in this particular case, a kind that was built in a incredibly strategic location, across the street from three health systems. And so, we’re really excited about the long term — and maybe the — maybe the best, kind of, IRR cash yield we’ll ever get from individual investments. It just takes time to accumulate the condos over time.
So, a great question. We know it looks odd, but at the same time, on the back end, we’re going to have fantastic returns from those investments. On the on the development, that’s a good question. It takes 18 months to build these buildings. So the ones under construction or about to begin construction, those will — it just plays out over time, over the 18 month construction cycle. So of that $200 million — for your model averaged out over 18 months, but it’s something like that. So it’s — and frankly, that’s the projects we know we will probably finance this year, or contractually commit to financing this year. And we’re working on others. So I think there’s — I think there are opportunities for kind of outsized investment on the development side.
Mike Miller: Got it. Okay. Thank you
Operator: There are no further questions at this time. I would like to turn the floor back over to John Thomas for closing comments. Please, go ahead.
John Thomas: Yes, Maria. Thank you. And thanks, everyone for joining us on the call today. We’re really excited about 2023. It’s a different markets and at a different time. But we think a 20-year bull run and seller’s market has turned into outsized opportunity for DOC, Physicians Realty Trust this year, and we look forward to seeing you at some of the investor conferences coming up soon. Thank you.
