Michael Carroll: Yes. Thanks. Dave, can we talk a little bit more about the 14 properties that you’re planning on retaining that were in the portfolio optimization plan? How many different operators are those going to and are those going to be new operators operating those facilities versus the ones that were in there previously?
Dave Sedgwick: So in the 14, we have a couple of operators that are coming in new, meaning transitioning from the prior operator. We have the two conversions to Behavioral Health. So those are going to landmark a new operator for us. And then among the eight properties that are retained that we classify as retained type, those are staying with the two operators there.
Michael Carroll: And then how many of these are seniors housing versus skilled nursing? It sounds like two of them are behavioral, but what’s the breakout?
Dave Sedgwick: Of the 14, they’re all seniors housing and the two behavioral are seniors housing that are converting into behavioral.
Michael Carroll: Okay. And then of the $3.5 million of rent that you expect from the , did that commence, or have they been paying that in the fourth quarter? And is that going to continue to be paid through January, or is there a different timing of that rent commencing or ramping up throughout the year?
Dave Sedgwick: That’s commenced as of January 01.
Michael Carroll: Did they pay that in the fourth quarter?
Dave Sedgwick: It’s a step down from what they paid in the fourth quarter.
Michael Carroll: What did they pay in the fourth quarter?
Dave Sedgwick: It’s a difference there on slide seven where we show 2022 contractual rent of 5.1%. That goes down to 3.48%.
Michael Carroll: Okay, great. And then on the 2.8% tenant, when did those — I guess how much of that security deposit was paid in the fourth quarter? Did that reflect their full contractual rent in the fourth quarter, or did they short pay their contractual ones in the fourth quarter even if you exhausted that security deposit?
Dave Sedgwick: Yeah. So this operator, they made a partial payment in the fourth quarter. So their last payment to us was in November.
Michael Carroll: And then you said, you applied and exhausted the $1.2 million security deposit. Did that reflect the full contractual rent payments in the entire fourth quarter?
Dave Sedgwick: No. Sorry for the confusion on that. In the fourth quarter, we applied about $700,000 — $750,000 of their security deposit to make up what was due. They still ended up a little bit short for the year, but security deposits for this operator was applied, if memory serves, in the first quarter, in the third quarter, and in the fourth quarter. And so what would happen is we would apply a security deposit in the first quarter, and then they would make up for that, they would replenish it, and then in the third quarter, same type of thing. They would make their payments, replenish part of it. And so it was sort of an ongoing late payment situation, which is why we started really talking about them in August last year, about being elevated risk.
Michael Carroll: Okay. And then, I guess I know you kind of talked a little bit about this on the call, so I’m not sure if you can answer any more details, but what’s the ultimate plan? I think we’re just waiting to see if they can recover, and we’re seeing if they can start repaying rent as soon as the results start to recover from that. Or is this a potential sale opportunity that you see in the marketplace?
Dave Sedgwick: Yes, sorry, Mike, it’s just too early to comment on it. The conversation is about a weekend.
Michael Carroll: Okay, great. Thanks. I appreciate it.
Operator: Our last question comes from Juan Sanabria with BMO Capital Markets.
Juan Sanabria: Hi. Just a follow up to Mike’s line of questioning. So what was the total amount of rents booked from the 2.8% tenant in the fourth quarter, realizing that 750K was from the security deposits?
