Mike Mueller: Yes. Hi. For the 350 Prime sales, I guess, why isn’t using — why is it looking at the 8.8% cap rate just on that rent stream going away the right way to look at it versus netting the rent escalator in there. And then just on top of that, are the transactions you’re looking at going forward the economics are more similar to that net number in the 7s? Or the standalone number in the high 8s?.
Edward Aldag : Well, the first answer to that question is that very simple it was all done in one transaction. Second part of that question is that, yes, it’s — they are more similar to the number that we quoted.
Mike Mueller: Okay. Thank you.
Operator: The next question comes from Vikram Malhotra from Mizuho. Please go ahead.
Vikram Malhotra: Good morning. Thanks. Just maybe first one. I wanted to understand the — maybe if you can give us a little bit more color on the $2 billion of plan sales. You mentioned there’s a bunch it on LOIs as well. I’m just trying to understand can you give us a flavor of what type of buyers these are timing-wise let’s just say things get delayed. Is there a plan B in terms of addressing the debt coming due?
Steven Hamner: Well, we’ve addressed the debt all the way through this year and significantly we expect 2025 also. And you broke up a little bit Vikram, but I think the question was what type of buyers and timing. And from the beginning going back to last October, we said this was a three to four-quarter transition. And so in the first of those three to four quarters, we’ve done 25%. That’s not to predict that the next transactions will be done as rapidly. But again just to reiterate we do have a significant amount of the $2 billion on the LOI. We’re actively negotiating with highly capable counterparties and we’re encouraged by the terms that we’ve negotiated, which again are very consistent with what you saw with the Prime transaction.
Edward Aldag: And Vikram to answer the rest of the question everything that Steve mentioned that we’re working on actively either in the LOI stage or definitive documents all have backups with them.
Vikram Malhotra: Okay. And then just sort of clarify on Steward, I think you said on the call, correct me, but last payment was I think about 25% of the contractual rent. But what about the prior period where they’ve made partial payments. Like just maybe back up and give us a sense of what’s the backlog of far? Or is it just that they’ve been delayed on those months and that’s all going to be paid when things get resolved? And just related to that are you given your comments on full payment, are you linking that sort of — there must be a link but I’m just trying to bridge that between where you see the dividend going because it feels like at this point, the proceeds for the dividend or not paying the dividend would probably be beneficial. So, I’m just trying to think about like what have they actually paid and what’s the backlog?
Edward Aldag: Okay. I’ll start with the end part of that question and the dividend is not dependent on Steward’s rent. It’s more dependent on our ability to close some of these liquidity transactions.
Steven Hamner: And again if I heard the question correctly about 25% of the rent that Steward owes on two master leases, one is the Massachusetts joint venture and the other is everything else. In total, about 25% of that was paid in the fourth quarter. I think that’s your question.
Vikram Malhotra: If I remember correctly the shortfall started was it October or was it prior to October?
Steven Hamner: Yes. It was in October. All rent was 100% paid as of the end of the third quarter. And any rent that is not paid was October and thereafter.
Vikram Malhotra: Okay. Got it. Okay, thank you.
Operator: The next question comes from Connor Siversky from Wells Fargo. Please go ahead.
Connor Siversky: Hi, thank you for the time. In the context of some of the write-downs related to Steward that were outlined today in the press release, has your equity stake in Steward already been written down or any of the loans that have been provided to Steward, have those already been written down or are those still sitting at full value?
Steven Hamner: Connor, yes, they have been written down. I mean, we look at it on a combined basis, the operator loans as well as the equity, and we wrote down in combination around $90 million for the non-operator investments, we’ll call it.
Connor Siversky: Does that include loans?
Steven Hamner : Yes, it’s a combination. Again, we look at them together. So it’s a $90 million reduction for all to combine.
Connor Siversky: Okay. Thank you. And then in the press release, in the comments that outlines $5 billion worth of assets that are in the cash accounting pool. And then in the detail, it states $4.6 billion. I’m wondering if Steward and Prospect are the only operators currently subject to cash accounting? Or is there anything else in there?
Kevin Hanna: Yeah. We have three, I would call them small operators. They represent about less than 1.5% of our total assets that we’ve been accounting for them on a cash basis. One’s been there since day 1, just very small.
Connor Siversky: Okay. Thank you.
Operator: The next question comes from John Pawlowski from Green Street. Please go ahead.
