Michael Goldsmith: Thank you very much.
Marguerite Nader: Yes, Michael.
Operator: Our next question will come from the line of Keegan Carl with Wolfe Research.
Keegan Carl: Yes. Thanks for the time guys. Maybe first just your non-core portfolio outlook was increased. Just curious what’s driving that?
Paul Seavey: Yes. Keegan, I mean, the non-core primarily it’s the mix of performance. The non-core is a little bit tricky frankly, because of the business interruption proceeds and the restoration of the properties that were impacted by the hurricane. So there’s a bit of an uptick just in terms of the return to normalized business operations.
Keegan Carl: Got it. And then bigger picture. If I take a look at your rental loan portfolio pretty material decline on a year-over-year basis and down over 100 units sequentially. I guess I’m just curious what’s driving this and how we should think about this relative to the mix of home sales versus the potential for you to add homes that you don’t sell to your rental portfolio this year?
Marguerite Nader: Yes. Certainly, what’s driving that activity is people buying the home. So they’re either in the home and renting it and want to buy it or there is somebody else that is interested maybe inside of the community that wants to buy that home. So you’ve seen over the last few years a significant conversion of the rental homes to owned homes. And I think we’ve been very successful in reducing our rental program from a high of about 9% to down to now 3%. So I think that’s really a function of the demand for our properties and for people wanting to enjoy that lifestyle.
Keegan Carl: Got it. Thanks for the time guys.
Marguerite Nader: Thank you.
Operator: Our next question will come from the line of Samir Khanal with Evercore ISI.
Samir Khanal: Hi. Good morning everyone. Hey, Marguerite, maybe expand on the property and casualty insurance renewals. I know it was up 9%. And I guess to a question earlier, I mean, it is less than what you were sort of maybe baking in. Maybe walk us through the process and conversations you had to maybe get sort of a lower increase in the premium, because it is surprising based on kind of what the peers have been sort of reporting. So maybe walk us through that process.
Marguerite Nader: Sure. I think we have a pretty robust disclosure included in our filings about what makes up our insurance program. It’s difficult to determine and see what others in the REIT space or in general have for coverage because there isn’t as much detail. So I think we have a pretty detailed analysis of where we end up. And the process is really a buildup of a lot of time and effort focused on making sure the carriers appreciate our properties, understand what we have to offer at the property level. And then, of course, the experience and the claim experience is a big part of the discussions as we head over to London to have the discussions. And we had a very good year from a claims perspective. And that certainly helps us as we go into the discussions with the carriers.
Samir Khanal: Okay. Got it. And I guess my second question is around the transient business. I guess Paul or Patrick, what are you expecting for transient to be down this year? I mean, how much — I know the combined number seasonal and transient because you can do the math and maybe that sort of flat to down, but I’m trying to understand if you were to break down seasonal and transient sort of what is that projection for this year? Thanks.
Paul Seavey: Yeah. I think Samir, as we think about those revenue streams and the volatility associated with them, we’ve adopted a practice over the last couple of years of combining for guidance purposes those two. And we think that the value in that is that it helps to kind of reduced to a degree some of the volatility that we see from quarter-to-quarter. So we don’t have a transient number to quote independent of the seasonal.
Samir Khanal: Okay. Thank you.
Paul Seavey: Thanks.
Marguerite Nader: Thank you.
Operator: Our next question comes from the line of John Kim with BMO Capital Markets.
John Kim: Good morning.
Marguerite Nader: Good morning.
John Kim: Just had one question on expansion sites. I know historically, you’d like to guide or deliver about 1000 per year. Last year, it was a little bit lower than that. But I was wondering if you could talk about the constraints to doing more as far as delivering expansion sites.
Patrick Waite: Yeah, sure. As you pointed out last year, we were just shy of 1,000 and that’s been a goal of ours. But noting that there are going to be some timing constraints on any particular calendar year for the current year, we’re expecting the number of sites to be developed in the neighborhood of 700 to 800. And one of the variables that get some pressure on the delivery time line is just the cadence of getting plans through approval, which can also frequently be a multistep process. You submit plans for development, you need to pull a permit to the extent that there are comments, you need to resubmit that is happening frequently and the time line for the review of each one of those submittals is also running along. We’re finding that in particular in the higher activity markets where we’re doing expansions.
Florida has continued to see some pressure with respect to those approvals and working through those agencies that’s in part due to continued build back from Ian in the state overall but also just the high level of construction activity initiative.
John Kim: And do you think that’s a structural headwind? In other words, are you going to be delivering in the number you said 700, 800 going forward? Or is it some — is it just timing in the next year?
