Fernando Castro-Caratini: Eric, has detailed a little bit earlier in the quarter and budgeted this way contribution in the UK, included a VAT refund on the real property side. It included additional expenses or higher expenses, given payroll tax withholding and costs associated with securing that refund. The net of those figures is about $2 million for the quarter or for the year. But consistent with this is akin to say, real estate tax assessments right where we may pay, a little bit more given the assessment that we get from the state. And if there’s — if we are able to work through that assessment, we might be at a refund in a later period. It’s similar and consistent with that practice.
Eric Wolfe: Yes, that makes sense. I guess, I was just trying to make sure there was nothing else. I mean so it sounds like just net, like maybe $2 million and understood, on the reason for it I just want to make sure that when we’re projecting out to 2025 there’s nothing else that would sort of distort those numbers. I guess second question, on the recurring CapEx. It looks a little bit high relative to last year’s quarterly average. Just wondering, if we should expect it to come down? And then also I saw that there’s a decrease in sort of acquisition CapEx, but still a bit of this sort of bolt-on investment to former acquisitions. I guess, when should we expect that to come down as well? Thanks.
Fernando Castro-Caratini: Thank you, Eric. The spend on the recurring CapEx side is consistent, and we do have higher CapEx — recurring CapEx on the Marina side and on the UK side, during the first quarter of the year. So that spend is expected to moderate over the rest of the year, as it relates to total nonrecurring CapEx for the quarter, it does represent about a 45% reduction as compared to the first quarter of last year. And is expected to ramp up, as we’ve discussed with the market, our spend on CapEx is expected to be somewhere around 55% reduction to the figures that you saw spend in 2023.
Eric Wolfe: Got it. Thank you.
Operator: Our next question comes from Anthony Powell with Barclays. Please proceed with your question.
Q – Anthony Powell: Hi, good afternoon. I guess another question on transient RV. I understand that you’re trying to convert many of those sites to annual, but you still have a meaningful amount of transient sites. So I’m curious, are there any trends that you can employ to maybe improve growth there? And what’s your optimal annual transient split in that business?
Gary Shiffman: I think answering the second part of your question first. We talked about reducing transient from high 20,000s to about 14,000 15,000 over a three- four- five-year period of time, transient sites to be our best in transient properties as well as the feeder to continue to feed annual RV guests as they move out. So we’re making good, good progress there. And with regard to other opportunities, I think on the social media side, on the marketing side, we’ve been very, very focused. I think that there’s been a lot of talk about the incredible growth through COVID and the return to pre-COVID periods of time. We’re really just focused if you will, growing from where we are and we have engaged a number of third parties who have hospitality experience looking at different forms of revenue management, different forms of looking for business activity in the shorter parts of the week in the shorter seasons.
So we’re very, very focused. And I do believe that there is opportunity than near to long-term to really enhance the transient pool of properties and sites that we have. We’re also what is left in the portfolio becomes the best of the best of the transient. So there’s an opportunity, as well as we continue to convert to see longer to mid-term improvements in growth than we’re seeing right now. But there’s nothing specific that I could point to that would tell you that it’s leading directly to an anticipated change.
Anthony Powell: Okay. Thank you.
Operator: Our next question is from Jamie Feldman with Wells Fargo. Please proceed with your question.
Jamie Feldman: Great. Thank you, and thanks for taking my question. I guess, just focusing on the balance sheet. Can you just remind us your deleveraging or leverage objectives and floating rate debt objectives in terms of those metrics? And can you also give us some thoughts on the glide path to get there? What do you think it takes to get to your goal? And how long do you think it takes to get to your goals for both of those items?
Fernando Castro-Caratini: Sure Jamie. As we’ve stated previously, our long-term leverage targets are to be at 5.5 times and below. Today we are at 6.1 times from a leverage perspective. Growth in EBITDA over the course of the year should provide deleveraging by the end of the year, as well as Gary had stated before, we have multiple opportunities from a capital recycling standpoint that we trust, we’ll update the market with over the course of the next couple of months and quarters that should also contribute towards reaching and surpassing that goal of 5.5 times. Floating rate debt today as of the end of the quarter was just above 11%, we will look to manage that percentage to be below 10%. So that’s something that we can do here over the course of the short-term.
Jamie Feldman: Okay. And just to confirm the 5.5, you’re saying by year-end? Or no that’s going to take much longer?
Fernando Castro-Caratini: That takes us into 2025 from that standpoint.
Jamie Feldman: Okay. And then I guess just taking a step back over the last nine months, year, a lot of new initiatives at the company. You added two new Board members. You took the plan to simplify earnings. I think whether it was NAREIT meetings in November or end of year conference call discussions, it seemed like you had ring-fenced a lot of the concerns on the UK and some of the problems that certainly the market was concerned about. So you look today you guys maintained your guidance. Your core business actually seems a little bit better than expected when we started the year, but the stock is underperforming by almost 600 basis points to REITs. Can you just talk about maybe looking behind the curtain of what’s going on at the company and some of the initiatives that your Board is debating, your management team is debating, your company is debating about ways to address the problem, fix the problem.
Just maybe things that we on this side of the fence don’t necessarily have a view on that people can look forward to as they think about this company and what’s to come the year ahead.
