Thomas Klaritch: Yes. This is Tom. This year, we did benefit, as I said earlier, from the 3.1% escalators. So we didn’t anticipate that higher number last year when we started out. So we would expect that to continue given where CPI is and the fact that our fixed escalators jumped up about 10, 15 basis points to the 2.8% range. So that’s, again, the biggest driver of growth. The other thing we benefited from in ’22 is our recovery percentage jumped up about 150 to 200 basis points as we were able to shift some more leasing to net leases from gross. So we were expecting to be at about a little over 50% recovery percentage in ’22. We ended up at 52%. We don’t expect that kind of growth again next year, but we expect that higher number.
So that’s why we were more confident in putting out the 2% to 3% this year. And obviously, we can benefit from some of the other drivers we hit in ’23. And Medical City does much better than we expected. We’ll get some growth there. Parking income we still have some opportunity. Most of our markets are back up to pre-pandemic levels, but we still have two that are below. So we could see some pickup there. So it could be a little conservative, but I think we’re pretty comfortable with that right now.
Operator: The next question comes from Steven Valiquette with Barclays. Please go ahead.
Steven Valiquette: Thanks everyone. Thanks for taking my questions here. And then last one, you might have just touched on this. I might have just missed it, but the — again, within the model portfolio and the growth guidance, was there any assumption for higher occupancy or that still one of the drivers of upside relative to the guidance? And then a separate question. You have the $0.05 FFO headwind in ’23 versus ’22 from the assumption of no CARES Act grants for this year. I guess the question is, is it pretty much set in stone that you’re probably not going to receive any grants in ’23? Or is there still some potential to receive some, and you just haven’t baked it into the guidance. Just wanted to get your thoughts around that? Thanks.
Peter Scott: Steve, we’ll tag team this. This is Pete. I’ll take the CCR — excuse me, the CARES Act grant question. So we had $8 million last year in CARES Act grants, which was about 0.015 benefit to FFO that we are assuming we do not receive any CARES Act grants this year. which is a roll down. I know you said $0.05. I just wanted to confirm that the 1.5 could we get some? Sure, we could, but that’s not baked into our guidance. And our expectation is that, that program is winding down at this point in time. So it would just be upside to our numbers. With regards to MOBs, I’ll turn it to Tom Klaritch.
Thomas Klaritch: Sure. On the occupancy, if you look at our historic occupancy percentages, we kind of run that 91% to 93% range. Same-store occupancy right now is at 91.5%, give or take. So I think we have some opportunity to see a little bit of an increase from occupancy. But Overall, when you look at our growth each year, occupancy has a slight benefit, but it’s typically only 30, 40 basis points, either up or down. So — but as I said earlier, the bulk of our growth really comes from the pricing either in escalators or mark-to-market on renewals.
Steven Valiquette: Okay. That $0.05 on the CARES Act grant, that’s the live transcript. So hopefully, that will get corrected in the final version of the transcript. I just want to mention that. So I’m glad you corrected that. Thanks.
Peter Scott: I appreciate that. So the 0.05 just with regards to the interest expense roll down, but we’ll make sure on the final transcript it’s accurately reflected.
Steven Valiquette: Okay. Got it. Thanks.
Operator: The next question is from Tayo Okusanya with Credit Suisse.
