Wes Golladay: Yeah. No. I get all that. Just maybe looking at the transient forecast, so it did come down about 6% — 5% or 6%. And I’m just wondering if there’s a rate pressure or is it just occupancy? And is it mainly just the current trends that you’re seeing, and are you extrapolating that into the second half of your forecast? Just trying to get a sense of maybe how conservative the guide is maybe a little too conservative as weather potentially impacting the guide at the moment?
Gary Shiffman: Yeah. I would just suggest as Fernando mentioned, certainly pace has a lot to do with it. We’re seeing it 8% down year-over-year. There is concept that says the shorting booking windows will yield, the potential for upside, but in our efforts to give the best guidance that we can going forward. We’re looking at outpacing is right now. I don’t know, if Fernando, of you have anything to add.
Wes Golladay: Okay. And then maybe going to the UK is there any onetime items that hit the first quarter and then anything in the forward guidance? And maybe just can you confirm that there’s the price is lowering, the pricing to build those, sticky income on the real property that’s nothing new that you changed this year year-to-date is something that you’ve been doing all along.
Gary Shiffman: Yeah. I’ll answer the first part and Fernando, can talk about guiding forward. But the strategy of shifting margin for occupancy gain has been our strategy all along. As I indicated before it more rapidly accelerated in 2023, as we brought margins down due to the headwinds of the economy. But what you’re seeing right now is continued strong demand for the Park Holidays community. And a management team that from day one, understood the concept of being able to increase occupancy and increase real property contribution over the concept of the one-time sales margin, that probably worked much better for them as the portfolio was owned by private equity firms in the past. So it’s pretty much it exactly where we want it to be now .Sand we’re hoping to continue it and really make a difference in how we’re going to look long-term at the value creation if you will of the real property contribution.
Fernando Castro-Caratini: And then, Wes, on aggregate the total FFO contribution from Park Holidays for 2024 is in line with original expectations. Park Holidays contribution to core FFO also includes SRD&E through retail and F&B operations and head office personnel and corporate activities on the G&A side. In the first quarter and for the year, included in the overall contribution to core FFO was an expected payroll tax withholding, that refund and third-party costs related to securing this refund. These various items had a net impact of about $2 million to our aggregate $153 million of core FFO in the first quarter or much larger for the rest of the year. These changes are similar and consistent with call it it’s akin to real estate tax or sales tax or other expense changes that are periodically reflected, updated treatment of revenue or expense. These changes are sometimes favorable or unfavorable to the current period.
Wes Golladay: Okay. And so just the bottom line that is a contract expense you had. And so the UK real property revenue is just a true upward lift in on the full year?
Fernando Castro-Caratini: Yeah. It was on same property is — and that is detailed during the call is primarily driven by the higher rental rates, higher retention than expected and we did see a stronger Easter break, which also the comp on a year-over-year basis where Easter was during the second quarter in 2023.
Wes Golladay: Got it. Thanks for the time everyone.
Operator: Our next question comes from Keegan Carl with Wolfe Research. Please proceed with your question.
Keegan Carl: Yes. Thanks for the time guys. Maybe first, I guess just on your acquisition of the land parcels. It was a bit surprising given your comments on development and expansion last quarter. So I guess I’m just curious what changed on this front?
Gary Shiffman: Yeah. I think we’ve talked about being very, very strategic in our thinking with use of capital. And we’ve also shared the plan that we’re looking to both recycle capital and dispositions, as well as through cash flow by shutting down development and using that cap will pay down more costly debt on a rate basis. I think that when you have 500 to 600 properties that are very, very strategically located and the strategic piece of land or opportunity comes about, we take advantage of that, thinking about the long-term nature of Sun. And all you’re seeing there is as you saw in the Marinas. There are just some bolt-on opportunities where we have a very, very low cost, a great deal of potential value creation in the future and those are just one-off strategic opportunities small in nature.
Keegan Carl: And then shifting gears here on home sales, I guess both in the US and UK, maybe UK first. I know you mentioned margin. Is it just a function of mix? Like are you selling more used homes to new homes? Or is it just lower general pricing. Is there any update on Sandy Bay as well as those are higher priced homes? And then in the US, I know that outlook was reduced too. Is it explicitly tied to existing home sales? Or is there something else we should be aware of?
Fernando Castro-Caratini: Keegan on the UK side that’s a mix of both of pricing and mix shifting more towards the pre-owned side of sales. Sandy Bay is ramping up well as it relates to marketing efforts for sales, heading into a busier season over the course of the next couple of months.
Gary Shiffman: Yeah. On the US home side, Keegan, really given the high occupancy of which our MH properties operate and our strategic shift away from deploying capital into that development and expansion. We did guide towards much lower home sales this particular year. And that is something I think that just demonstrates a little bit of the strength that we’re seeing at nearly 98% occupancy in the MH and annual communities.
Keegan Carl: Great. Thanks for the time guys.
Operator: Our next question is from Eric Wolfe with Citibank. Please proceed with your question.
Eric Wolfe: Hey, thanks. As you look at your guidance, I was just wondering if there’s anything in the core numbers that is sort of onetime in nature one way or the other. So, for instance, it seems like there might have been a tax refund in the UK same-store NOI this quarter. Just trying to understand if there’s anything in this year’s core FFO that won’t be repeated next year, as we think about the right sort of base from which to project things in 2025.
