Matthew Erdner: Got you. And then following that up, last one for me, is there any specific industry that you guys are targeting, or is it just investment grade tenants that you’re trying to recycle in?
John Albright: It’s definitely obviously investment grade kind of leads the way, but there’s – it won’t be really on the entertainment side, I guess. It’ll be more your traditional staples of sort of assets, good consistent industries.
Matthew Erdner: Awesome. Thank you, guys.
Operator: Thank you. Our next question or comment comes from the line of Michael Gorman from BTIG. Mr. Gorman, your line is now open.
Michael Gorman: Yes, thanks. Good morning. John, I was wondering if you could just spend a little bit more time talking about the acquisition market. I know you’ve talked about the investment grade cap rates. We’ve heard from some others that maybe there’s also some differentiation within the specific sectors. Are you seeing that play out as well too, that there’s more stratification between the sectors, even if they’re both investment grade tenants? And then I know you’ve talked previously before about seeing opportunities in shorter duration leases or assets with maybe some more near-term role. Is that still out there as well, or is that starting to get priced out too?
John Albright: Yes. I mean, that’s getting – there hasn’t been really any gap out in that kind of pricing for the shorter duration. It’s hanging in there. I wouldn’t say it’s – on the shorter duration, it’s not compressing more. The one thing I will say is, we’ve got to think about, on the inventory side, the merchant builders are not active – as active building new stores. So, you’re not getting that inventory. I mean, first of all, the lender market for construction is tougher obviously. Rates don’t make the performance look as good as they used to be. And then, obviously the construction costs are still elevated. They’re not going up further, but they’re not coming down like everyone had hoped. So, that kind of talks about the construction costs of these assets on a per square foot basis, makes the older product with low rents very attractive as far as the basis you’re able to buy these assets.
And so, that’s why you’re seeing a lot of capital come into these properties, whether they’re on the shorter duration because the basis is so attractive.
Michael Gorman: Got it. That’s helpful. And then Matt, maybe just quickly on your side, what are you seeing in terms of the debt markets or the optionality for you all? You don’t have any near-term maturities, no exposure to floating rate debt, but if you did start to see a pickup in maybe investment pipeline opportunities, how are you thinking about the debt markets here? What are the attractive products that would be available to you, or in terms of, would you be able to put on swaps at this point to keep fixed rate, or would it most likely need to be variable rate on the line?
