Paul Seavey: Well, certainly, the transient RV business is the line item has the greatest exposure to us. After that, I would point to our membership upgrade. And our — just our home sale activity at the level of the properties. As we look at the economic landscape and we kind of think about projections for 2023 and talk of potential recession, it harkens back a bit to 2008, and we certainly saw impact from the slowdown in the single-family home sales market on our business and specific despite the fact that we continue to see very strong demand for our home sales in our properties today, I’d indiscernible that as an area.
Michael Goldsmith: So, would you say you have less visibility into kind of like the top line than you do to the expense growth for the year?
Paul Seavey: Well, I think that, as I mentioned earlier, there — we have refined the way that we review our utility expense, which created a significant amount of exposure in the expense line item in 2022. So, I think that to ask whether we have greater visibility, I think that we have a model that looks to different sources of information. And based on the recent experience that we have had, and our testing of that model, we think we’ll be more reliable than our method.
Michael Goldsmith: Got it. That’s helpful. And then on — are you seeing any change in bad debt? Was there a change infrastructure in the fourth quarter? Or are you expecting any change in 2023? Is that built into the guidance in any way?
Paul Seavey: So, our rent collection rates are — they remain strong in the MH and RV properties. There were a diction moratorium following the onset of the pandemic that did cause a slight increase in our delinquent MH rents. As those restrictions have begun to ease, we’ve been collecting past due rents from residents interested in resolving their debates. Our reserve policy takes a look at debt collectability. And we’ve seen an increase in the gross receivables resulting from the delay in processing addictions across the MH portfolio, since the beginning of the pandemic, that pressure started to ease in 2022. So, our bad debt expense moderated to be in line with historical levels. And our historical levels are about 40 — call it, 40 to 50 basis points of base rent. So, I think that kind of turn to historical normal is what I would otherwise expect in 2023, absent some legislative impact that extends moratoriums or challenges our ability to collect rent.
Michael Goldsmith: One last one for me is you’ve been acquiring land and you’ve been looking at expansion sites which given the current backdrop, is this a good time to continue to push on that? And then how have expected yields on expansion sites changed? Is there any difference for ’23 versus maybe in the past?
Marguerite Nader: Yes. We purchased land — a fair amount of land during the pandemic and last year. I think we’ll continue to do that where it makes sense. Certainly, land that’s adjacent to our properties is something that is highly accretive. There have been cost pressures placed just on construction, in general. But we think that we’re acquiring the land at a price that makes sense, and we’ll continue to do that, and you’ll see us do that this year and beyond. SP-15
Michael Goldsmith: Thank you very much.
