Gary Shiffman: Sure. I think I’d share and really reiterate the thoughts related specifically to that, which the goal to create simplification up and down throughout the company. The company has grown a lot, complexities certainly crept in. And as we’ve discussed previously, we’re really making good progress along those lines. With regard to the Board, we’re pleased with the addition of the new Board members. We’re pleased with the setup of the committees going forward. We’re doing well through our disposition program and recycling that capital. We’ve talked about one of the JVs that we’ve been able to simplify greatly that we shared the Northgate properties last quarter. We’ve talked about stepping out of the headstock in Australia.
And we’ve sold off our interest in the proprietary software for managing our RV communities. Although, we still use it great software Campspot. And at the same time the conversions that are taking place that we’ve spent a lot of time talking about today and other days, allow us to manage our business much better to bring the cost margins are greater in the annual properties than they are in the transient properties which will translate to future growth as well. I think that the strategy that is working well in the UK right now with regard to moving more of the volatile home sales margin into real property income. The fact that we’ve been able to get through the foreclosure process on the assets in the UK and have Park Holidays, manage them.
In particular the great job they’re doing at Sandy Bay. We’re excited to share the results of how things are shaping up over there. So these are all the things that the Board. And the managed team — our management team are focused on. It also gives me the opportunity to mention that, we have Aaron Weiss, sitting in on our call today we brought in, two years ago. So as an effort to broaden our executive team and our bench, I think that we’re really excited to be able to demonstrate how the simplification and approach to everything is going to translate into FFO growth as Sun has been known for it historically. But of course, we realize that we have a ways to go to demonstrate it through 2024, gain some of that lost credibility back. And we’re working very, very hard and very, very diligently to do so.
And I think it’s just underpinned by the really outstanding performance of the business platform. And we continue to work hard and share more of that information quarter-by-quarter with you.
Jamie Feldman: Thank you, Gary. This is very helpful and lots to think about. I guess just one quick follow-up if you don’t mind, just because we get asked this a lot. I mean how long does it take for whatever initiatives even if all the initiatives you’ve put in place at year-end or all the initiatives you’re going to do? Like, how long does it really take for it to have the full impact?
Gary Shiffman: Well, I’m going to suggest what we talked about at NAREIT and some of the conferences in our calls that 2024 isn’t without its headwinds. We talked a lot about the specific financial headwinds and the simplification paths that were taking place. Our real goal is to look at 2025 when most of these headwinds that we can identify are behind us and we can really, really begin to translate the very strong core business growth into growth to our shareholders. So while there is upside and there is a risk to everything as we go through the year we all know it’s still a challenged economy with a lot of uncertainty in there. As far as what we can control in the company, we feel like we’ll be in a very, very good position finishing out 2024 and going into 2025.
Jamie Feldman: Okay. Great. Thank you. Appreciate your thoughts.
Operator: Our next question is from Anthony Hau with Truist Securities. Please proceed with your question.
Anthony Hau: Good afternoon guys. Thanks for taking my questions. Given that you brought sales margin down in the U.K. are you seeing more buyers homeowners buying premium lodges compared to before? And what percentage of buyers are buying standard versus premium today?
Fernando Castro-Caratini: Anthony, our — we have brought margin expectations down for the year by about $2600 that is helping drive more pre-owned lodge sales that premiumization or those upgrade sales is something that we will continue to work with our customers that have bought a pre-owned home over the course of the last couple of years and are looking to upgrade. So that is part of the strategy as it relates to that higher retention that we’ve been discussing as it relates to our homeowners across the portfolio.
Anthony Hau: And when you upgrade a home from like standard to premium you increased your pitch fee by three times, right?
Fernando Castro-Caratini: It’s going to depend Anthony on the size of that home and that site and where that site is in the portfolio. But yes, there is usually a premiumization not just from the sale of the home but also on the pitch fee side.
Anthony Hau: Okay. And just one quick question about revenue for using sites gain. I think the initial guidance assumed 2400 to 2700 site gains, has the underlying assumption for this metric change for the current guidance? And how confident are you to achieve this target, given that only 233 sites were gained in the first quarter?
Fernando Castro-Caratini: Anthony, no change to the expectations for the full year as it relates to the revenue-producing site gains across manufactured housing and RV for the year.
Anthony Hau: Okay. Thank you.
Operator: Our next question comes from John Pawlowski with Green Street. Please proceed with your question.
John Pawlowski: Thanks for the time. I have two questions on the RV business. One just a clarifying question on the comments made. So is it that the 8% shortfall in reservation pace is that revenues for the second quarter and third quarter are trending 8% below a year ago? Is that just a number of reservations. Could you just be more specific on that stat?
Fernando Castro-Caratini: Sure, John. The 8% number that I quoted is expected year-over-year decline in revenue growth for the full year. Currently as it relates to the second quarter we are expecting about an 8.6% decline in revenue year-over-year.
John Pawlowski: Okay. And then can you give me some on-the-ground details of what’s going on with consumer demand right now? Which regions are you seeing the most pronounced softness? Is it – or is it a property-type divergence for highly amenitized resorts are suffering? Is it camping? Can you just help me understand what your local teams are seeing so we have a sense of consumer price sensitivity right now?
