Nicholas Yulico: Bob, I guess maybe just going back to the cash on the balance sheet, trying to get a better feel for how we should think about how much of that could be earmarked for investments versus you did talk about the debt maturities you do have in April.
Bob Stephenson: Yes. Nick, again, take a big picture approach to that. I mean because cash is fungible. We’re sitting with $600 million today. If we could deploy that, the pipeline is choppy. It’s robust but choppy. We can deploy it right away in acquisitions. That would be the first dollar spent, absolutely. But again, we’ll sit down and look based on the pipeline and based on that, debt maturity coming up, how we want to fund it. I mean, right now, we have the cash and we have the availability and we do have the ATM.
Nicholas Yulico: Okay. And then second question is just going back to Levi. And if we think about, you’ve now moved through most of the transitions or asset sales, what — do you have a sense for — I know there’s still, I guess, some reinvestment that could happen with proceeds. But as we think about prior rents on Levi when it was sort of fully paying versus now what you’re going to get in terms of new rent equivalents. Is there any like percentage number you can give us on a rough feel about how that played out? Is it going to be 70%, 80%? I think you said 80% in the past about sort of the recapture rate on operators going through a transition and asset sales like this?
Taylor Pickett: Yes. You’re exactly right. We were pretty conservative in our thinking there. Nick, I think when this is a result, we’ll be pushing 90% or north.
Operator: Our next question comes from the line of Alex [ph] with Robert W. Baird.
Unidentified Analyst: Just a question on the Guardian assets. What’s the historical timing of releasing those senior housing assets?
Dan Booth: Do you mean just in general or specific to Guardian.
Unidentified Analyst: In general.
Dan Booth: In general, it could take anywhere from 3 to 12 months. It’s a pretty wide range depending on whether it’s a sale and the sale being financed or whether it’s just re-tenanting.
Unidentified Analyst: And second one is have labor cost/shortages actually gotten better? Or has it just stopped getting worse?
Megan Krull: I definitely think it’s getting better from what we hear from our operators. I mean we are seeing agency come down quarter-over-quarter which is a good sign. And operators are definitely feeling less tension there but it still exists, right? So it’s going to take some time before that rights itself. I definitely think it’s improving.
Unidentified Analyst: And last one. And how much did you guys buy the Levi assets for? And what’s the [indiscernible].
Dan Booth: Some of those assets date back to 1995, I think, 1998, I don’t know off the top of my head, the — some of those assets are been on our balance sheet for over 20 years.
Operator: Our next question comes from the line of John Pawlowski with Green Street.
John Pawlowski: Megan, a question for you on just sector-wide occupancy. Just curious, why occupancy you think hasn’t seen a bigger benefit from just the cumulative closures of facilities over the last several years.
Megan Krull: I think — look, we’ve seen a large percentage of our portfolio actually recover. So it is very specific to the region that you’re in. And if you look at Florida, for instance, the staffing issues there, just so strong that, that’s why the occupancy hasn’t recovered. So I think when you look at different places, you’re going to have a different story there.
John Pawlowski: As the months and years go along again with just supply being down, it would suggest kind of almost a structural change in demand if significant amount of regions aren’t back to a pre coven occupancy which, again, should be adjusted higher for closure. So are you incrementally more concerned about it’s broader than just labor issues delay in the recovery in occupancy.
