Ken Heimlich: Yes. This is Ken. The theaters had a phenomenal third quarter. Fourth quarter was not as great, but they held the line, whatnot, 2023, a big driver for the theaters is the release slate. 2023 looks pretty good and consistently throughout the year. Right now, that slate, you don’t see any big gaps. So they’ve got a consistent release dates for the tentpole films. And that’s what’s the big driver for theaters nowadays. It’s interesting on the reuse front, it’s public knowledge. Regal did reject one of our theaters. We’ve been pleasantly surprised with the inbound activity we’ve seen right now. It’s very early days on that front, but it’s not cricket. Whether it’s other operators or other uses for that real estate. So we’ll see as the year unfolds. But right now, we see a very stable outlook.
Rob Stevenson: Okay. And then, how are you guys thinking about indoor farming and the potential returns and risk there versus owning the traditional 500 acres of farmland leased to a large farmer?
Jackson Hsieh: I mean, Rob, we don’t have any farm exposure right now. And I think right now, to be honest with you, like our current lines of business are keeping us really busy right now. So I don’t have a real comment on that. Yes.
Operator: Our next question comes from Harsh Hemnani with Green Street.
Harsh Hemnani: Mike, you mentioned targeting a 200-basis point spread for 2023. Can you give us a rough ballpark estimate for what kind of nominal cap rate you will have to achieve when your acquisition to roughly make that spread?
Mike Hughes: Yes. I mean, as Jackson mentioned, we’re targeting 7.25%, 7.5% cash cap rate for 2023. So at that cap rate, we can achieve that 200 basis points of spread based on the way we’re funding, which is free cash flow, accretive dispositions and balance sheet debt.
Harsh Hemnani: That’s helpful. And then, Jackson, in the past couple of quarters, you mentioned that this is really the best opportunities you’re seeing in a long time in the net lease space. Is that still the case? And what’s played out in your pipeline over the first part of this year. And just given the favorable market environment, given how good the sale-leaseback market is for you today. Why do you think the public market has given you not the best cost of capital relative to your peers who aren’t even as leaseback focus as you are? And I guess in internal discussions, what can you do to maybe improve that cost of capital to be able to capitalize on this opportunity that might be upcoming in ’23? Because it seems like you’re more constrained on the cost of capital side than you’re able to source deals but maybe not have it be accretive because of the cost of capital?
Jackson Hsieh: Yes. I think you had a lot of questions there. I’ll try to start with this one. Since 2019, post the wind up of SMTA. If you look at the midpoint of our AFFO guidance for this year. Our CAGR has been close to 5%. And that’s been with a lot of economic macro headwinds, COVID and invasion, inflation, increase in interest rates. So we’ve been able to accomplish, I think, a reasonable growth rate since 2019. I think if you look at our tenancy, look, I think people have, for whatever reason, associated a higher risk to our tenancy. So Party City is going to prove out. We’re very, very confident we’re going to be able to show proof of concept there, and the asset is worth a lot of money, more than what we paid for it.
