Steven Hamner: Well, I think we’ve given the range. We don’t expect the worst case. It’s possible that the $1.65, which, as you point out, is basically collection of the California rent and six months of Connecticut, assuming we sell Connecticut at the end of the six months.
Edward Aldag: And those are cash not freight .
John Pawlowski: Okay. But do you — so is I right to interpret that there’s going to be a shortfall in the California rent collection as well?
Edward Aldag: That’s quite possible, yes.
John Pawlowski: Okay. Are they paying rent currently under the California for hospitals?
Steven Hamner: No. For — as I mentioned a little earlier, very little of January, February rent has been paid.
John Pawlowski: Okay. Last one for me. I assume the repayment of the upsized mortgage loans didn’t occur in the fourth quarter. Can you give us a sense for when you expect that mortgage loan to be repaid in the California properties?
Steven Hamner: Along with the recovery from primarily the sale of the managed care business although there are other restructuring options with respect to that particular facility. That facility, obviously, as you point out, is mortgage now. We are considering a number of options that could include acquisition of that facility for the mortgage balance, but there’s nothing definitive or binding with respect to that possible strategy.
John Pawlowski: Okay. Thank you.
Operator: Our next question comes from Andrew Rosivach from Wolfe Research. Please go ahead with your question.
Andrew Rosivach: Hey good morning guys. How are you?
Edward Aldag: Hey Andrew, fine. Thank you.
Andrew Rosivach: I was thinking maybe something that might help if you — would you be able to translate kind of your FFO into an AFFO guidance? Because I’m guessing some of the puts and takes related to Prospect are probably related to cash basis versus straight line?
Steven Hamner: I got lost in that question. I’m sorry.
Andrew Rosivach: Sorry, Steve. So — so you have an FFO of $1.50 to $1.65. And I think a lot of us are trying to back into dividend coverage. And I’m guessing that if we took a step from 2022 to 2023, the difference in AFFO is less than the difference in FFO.
Steven Hamner: Yes. So, if you take that worst-case scenario again at $1.50, and you make necessary adjustments for AFFO, we’re at about $1.29.
Andrew Rosivach: Got it. Okay. Thank you very much. And then my second one is really nerdy, and I know — some of these numbers are estimated, but your schedule for tenant disclosures, you used to have EBITDAR and EBITDARM you now have EBITDA. I’m just curious why you went to one column.
Edward Aldag: Yes. And Andrew, you may remember that we stopped doing EBITDAR a long time ago because it was confusing because a lot of that are assumptions that everyone has to make, including us about what the M part of the EBITDARM is. For example, if you look at that page, which is page 14 in the supplement. A number of those operators EBITDARM and the EBITDAR is the same thing. So, what we did a long time ago when we were trying to show EBITDAR, we used an arbitrary number for us from — that we got from what the management fee may be — many times, those were much higher than actual numbers. Another example, we have a couple of operators who prefer not to be named in this report, although it doesn’t take a genius to figure out which ones those are.
