Operator: Our next question comes from the line of Connor Siversky with Wells Fargo.
Connor Siversky: Thanks for having me on the call. Broadly speaking on acquisitions, external activities. So we’ve seen a lot of activity in the past 3 weeks or so. And some transactions have been received better than others. And at the same time, we’re fielding a lot of questions for some REITs with the cost of capital on the margin of generating accretion of whether or not they kind of take the jump here and continue to invest. Whereas OHI doesn’t have that problem, your cost of capital is very strong. I mean, do you look at the current environment as an opportunity to really get aggressive and chase acquisitions? Or do you look at something like the minimum staffing requirement and work on those parameters of risk in your underwriting framework and try to be more cautious given what you’re seeing right now?
Taylor Pickett: So it’s a little bit of — it’s a great question. It’s a little bit of both, right? We we’re prepared to allocate as much capital as possible to our existing operators and opportunities. But the underwriting has to include some risk adjustment for a variety of things, including minimum staffing. But that from my perspective, we don’t take our foot off the pedal. It’s just incorporating those risks into how we think about allocating capital. As Dan mentioned, we’re close to $0.5 billion year-to-date and the pipeline is pretty robust. So we’ll continue to look at very opportunistically at what’s out there.
Connor Siversky: Okay. And then just to follow up on that point. So earlier in the call, Megan mentioned that the labor environment remains more challenged in the rural areas versus the urban areas. I mean, does this also imply a willingness for OHI maybe to sell out of those rural assets in favor of concentration in urban areas?
Taylor Pickett: Well, you’ve seen us sort the portfolio pretty actively for a number of years and obviously through COVID, we’ve done a lot of that. I would say that there’s not a whole lot more to do but when you think about much of our disposition activity, it has followed that pathway, a little more, a little more labor challenged. So I don’t have an expectation of big dispositions but we’ll continue to sort the portfolio as we always have.
Operator: Our next question comes from the line of Juan Sanabria with BMO. Juan your line is live. Our next question comes from the line of Michael Carroll with RBC Capital Markets.
Michael Carroll: I just want to circle back on Guardian. I mean how much interest did you receive when those assets kind of came to the market? And I mean, did you it sounds like you have one specific operator you’re pretty far along with right now. But did you run a process? Or did you target a few operators? I guess how did that initially work?
Dan Booth: Yes. So we have existing operators in the state of Pennsylvania and then of course, we know other operators in the state. So — and also in the state of West Virginia. So we reached out to operators that we know, first and foremost, that we do business with and also operators that we know are in the state of Pennsylvania and still doing business. So there’s a pretty broad net that we grow out there looking for new operators. And it’s just as a matter of narrowing it down to the right one.
Michael Carroll: And then I guess how much interest when you started offering up those assets to potential operators? How much interest were they in those properties? And then kind of off of that, I mean can you provide some color on how those assets are performing today? And will these new operators be willing to step in at a stabilized rent rate? Or do you need to have some type of ramp-up as operations kind of stabilize and improve?
Dan Booth: Those are the discussions that we’re having as we speak. It’s a good question. Those facilities are not performing exceedingly well. And I would say there was interest but it wasn’t an overwhelming amount of bids that were put in at the end of the day.
Operator: Our next question comes from the line of Nicholas Yulico with Scotiabank.
