Josh Dennerlein: Okay. And then, I guess, over the years, what’s kind of the range? Is that 30 bps the lowest you kind of ever saw. And then like maybe what’s kind of the highest trying to think through a cycle.
Mike Hughes: Yes. That was definitely the lowest. I mean, since the spin-off, it’s generally been lower than 1%. I’d say the exception of that would be 2020. I have to go back and look. I think it was a little above 1% in 2020, obviously, that was a rough year. But in all years since the spin-off outside of the COVID year, it’s been sub 1%. But last year, it was definitely the best year we’ve ever had.
Josh Dennerlein: Okay. Awesome. And then, maybe just kind of turning to competition for assets. I guess, are you guys seeing more or less competition out there for assets that you’re looking at?
Jackson Hsieh: I would say right now, in the fourth quarter, obviously, you can see the results. First quarter, we feel really comfortable with our current pipeline. It seems like there’s a little drop in deal flow, to be honest with you, like you probably heard that from other management teams. We’re still picking and finding opportunities. The volume of things that kind of meet our criteria just seem to be less than, say, last quarter. I’m not sure what’s causing that right now. But that being said, I think we’re really comfortable with the guidance that we put out here that we’ll be able to achieve really good opportunities in that 7.25%, 7.5% range. And like I said, we’ve got a good runway of revenue producing CapEx that we have already buttoned down basically this year through the course this year.
So we feel very comfortable with that right now. And look, if things change where there is more opportunity, more attractive cap rates. Obviously, we haven’t factored any capital markets activity in our guidance, obviously, we can pivot if that happens if that makes sense. But right now, we think we’ve sized the right opportunity for our targets this year given kind of what’s happening in the market.
Josh Dennerlein: Jackson, if I reading into your comments, is that kind of lighter kind of slow right now for things you’re interested and imply that guidance is more back half loaded for acquisitions?
Jackson Hsieh: I’d tell you, like it’s probably equally weighted, I mean, from what we can tell right now. I mean, look, interest rates are still pretty volatile right now, right? But as we started the year, the forward curve has continued to increase. When that happens and sort of the corporate markets get more interjection, I think that kind of gives us a better opportunity to lean into industrial sale leasebacks. If corporate debt becomes more favorable, that creates competition for us as well as just people that compete with us on the sale-leaseback front. So I think right now, we feel pretty comfortable with our pipeline and what we put out there. And if things change for the positive that make us accelerate acquisitions, we’ll clearly take advantage of that if the opportunity presents itself. But we think this is a reasonable way to approach the marketplace given some of the economic uncertainty that’s still out there.
Operator: Our next question comes from Rob Stevenson with Janney.
Rob Stevenson: Can you talk about how the theater assets are performing today given the box office? And are there other looming near-term operator issues beyond Regal? And if you need to retenant anything today, how is the market for that today versus when you did the last batch of retenanting that you did well on?
