Operator: And our next question today comes from Haendel St. Juste with Mizuho.
Ravi Vaidya: This is Ravi Vaidya on the line for Haendel St. Juste. Last quarter, you commented that your watch list is about of 4% of total ABR. Just wondering what that is right now? And what other categories outside of the theaters are you monitoring or have a negative view on .
Sumit Roy : Yes. Good question. Our watch list today is right around 4.4%. As you correctly pointed out, it is largely dominated by the theater industry. Some of the other areas that we are continuing to look at. And keep in mind that our watch list is not always a credit issue. It is just our view on the real estate, the location of that real estate and what the ultimate outcome is going to look like. So it’s a combination of credit. It’s a combination of real estate underwriting. But ultimately, the watch list is dictated by the long-term desirability of those locations and operators. So along with the theaters, I would say, restaurants are in the some of the more discretionary type concepts out there like home furnishing. There are very few day care centers and some of the other businesses that are not very well capitalized that you’ll find there. But that’s the mists of what you will find on the on the watch list.
Ravi Vaidya : That’s helpful. One more here. One of your peers sold movie theaters at , regarding your — would you consider selling theaters in that range? Or what other — what are your conversations been like in terms of pricing and regarding the theaters, as you said it was such a large component of the watch list?
Sumit Roy : Yes. That’s actually a very good pricing. And I suspect that the person that bought it is probably a developer. And we’ve done our own analysis. And for us, we feel like the best way to create value would be to hold on to these assets and then especially the ones where we have a view that can be redeveloped et cetera, and capture that view once we have full control of that asset. We truly told there is so much discussion that we are having with Cineworld at this point that I don’t want to get into the details, but that discussion needs to be behind us. And my understanding is that a lot of these assets that are now going to be put out there for sale, et cetera, have already had their rents renegotiated, everything has already been priced in.
And those cap rates that are being shared are being shared off of those new adjusted rent numbers. And in our view, if we feel like, hey, let’s just hold on to these assets, we’d much rather get these assets back and reposition it perhaps with some additional capital, but create much more value for our investors, then that’s what we choose to do. And we haven’t engaged in trying to go out and try to find the market we’ve had a lot of unsolicited calls. I can tell you that, but we really haven’t engaged in trying to sell any of our theater assets. We want to resolve the Cineworld situation. And I think with the news today, I think that date is certainly getting closer before we start to figure out what the best economic outcome is.
Operator: And our next question today comes from Ronald Kamdem with Morgan Stanley.
Ronald Kamdem : A couple of quick ones. Just going back to the opening comments on the international portfolio at 11.7%. Just thinking about where could that number go? Obviously, there’s different tax it so forth. But in your mind, how can that number trend in the next couple of years, obviously, opportunity driven.
Sumit Roy : Well, these last couple of quarters, they have still represented 20%, 25% of our transaction volume. So clearly, that over time should continue to drift up. It was drifting up at a much higher clip when we were doing a lot more transactions. And I do expect for us to get back into that more normalized 30%, 35%, maybe even more if certain situations play out. So I’m hopeful to keep growing our pie. Look, we continue to look at new geographies, and especially at a time like this, new geographies that seemed a bit out of our reach are starting to become a little bit more within our reach and more compelling today. So as we keep adding new geographies, as we continue to enhance our relationships, et cetera, I see this number 11% continue to grow and be a bigger part of the overall portfolio.
Ronald Kamdem : Great. And then if I could just touch on sort of two verticals: one, consumer-centric medical to gaming, which I don’t think has been mentioned before, but just a quick update on what the opportunity set is looking like? Has it slowed down with the events over the past couple of weeks and so forth? And how are you guys thinking about those?
Sumit Roy : So gaming continues to be of tremendous interest to us, Ron. It’s just hard to replicate what we got with the Boston asset. And we have an amazing partner in Craig at Wynn, and we will continue to try to work on trying to find new transactions that I don’t know if we’ll ever be able to replicate the one in Boston, but of a similar type of a similar dominance in particular markets. So we are looking at transactions. We are looking at transactions every day. And the pricing expectations is perhaps something that we are still trying to work through. And if we can get to and understanding which works for parties involved, I think, and I hope we are able to grow that part of our business, but it’s not a fait accompli.
I mean it is — the bar for us is higher. But the good news is there is a product out there that meets that bar. So we are very hopeful. With consumer-centric, we — that’s a business we love. We’ve been in that business. We’ve just coined the phrase to sort of define an area of our portfolio that we’ve obviously been very interested in. And with the dental transaction that we did in the fourth quarter of last year, that helped accelerate that part of the business. Look — and I don’t want to get into the thesis again. I think we’ve shared that already for a variety of reasons, we like that business. And I think in some ways, this is a business that is getting defined right in front of our eyes, and we want to participate in the potential upside that I see on the real estate side.
And so again, partnering with the right operators, forward-thinking operators who share a similar philosophy of delivery of health care, I think will, I hope, result in a slew of transactions for us on the consumer-centric side. So both those areas remain of high interest to us, Ron.
Operator: And our next question comes from John Massoca with Ladenburg Thalmann.
