But as we said, we’re still chopping the wood with Levi. Where that ultimately falls is a positive timing, not predictable over the next couple of quarters. Then Maplewood is a little — is more predictable. We’ll have rate increases normal rate increases in January. That covers a big part of the gap but you could continue to have expense pressures in this industry. And we continue to look at the fill of Second Avenue which is hugely important on an incremental basis. And that’s really the driver. But as Dan mentioned, we can map that out principally driven off of the occupancy fill-up in Second Avenue at some point in ’24, maybe was going to have sufficient cash flow to pay the contractual rent but that timing is a little bit questionable as well.
Longer term, we’re really comfortable with both sets of assets.
Unidentified Analyst: That’s helpful. And just a second question. Can you provide like more color what has seen on the labor side and how states are preparing for the minimum staffing? And if you can highlight any states that have the potential to increase Medicaid rates or like address minimum staffing with funding, that would be very helpful.
Megan Krull: Yes. I mean, look, I don’t know that any states are really addressing the minimum staffing at this point because it’s a little too soon to tell what’s going to happen there. Comment period is up next week. And so we’re just waiting to see what ends up coming out of it. As you know, there’s a delayed implementation for most of it. But certainly, the rural areas are going to be hit a little bit harder than the urban areas once it does kick in. In terms of rate setting, again, none of these rates are impacted by the staffing mandate at this point but we do watch especially our top 10 states really carefully and have seen positive things over the last several months, thinking in, in July and October; talked a little bit about Florida and Texas.
Last quarter, we did hear from one of our operators that the California 10% FMAP increase is going to continue until they have a rebasing of that rate which typically happens in January but might be a little bit delayed. And North Carolina FMAP got put into their rate as well. So feeling decent on the reimbursement perspective but still too soon to tell what’s happening with the staffing mandate.
Operator: Our next question comes from the line of Michael Griffin with Citi.
Unidentified Analyst: This is Avery [ph] on for Michael Griffin. A question on the Levi’s sales. I’m wondering if you can give us a sense of the per bed valuation on those sales? And how many more of the Levi assets are targeted for sale, if any?
Dan Booth: So as I mentioned, we’ve got six more assets targeted for either sale or release and the price per bed over the course of the 48 that we talked about is in a range of between 90 and 100 permits.
Unidentified Analyst: Great. And just a follow up, how are you guys thinking about future equity issuances to fund investment activity versus continue to tap the debt market? And I know you want to keep leverage below that 5x. So just how are you thinking about funding needs for investment opportunities.
Bob Stephenson: Yes. We sit down and we take an 18-month approach looking at the capital markets and our needs. So as I said, we have over $2 billion of current liquidity with the combination of the $600 million of cash on our balance sheet as well as the untapped credit facility. We have access to the ATM and again, we don’t look at it any day by day but we have a longer-term approach looking at that. We know we have two debt maturities coming up, one in April of 24 and early in ’25. So we will be opportunistic if it calls for that.
