Gary Shiffman: Yeah. I can’t comment too much on RoyaleLife other than the same things that everyone is aware of that they have been taken under certain aspects of it have been taken under receivership and the recapitalization, as I understand it, is certainly stalled, if not terminated at this time.
Operator: And our next question comes from the line of Michael Goldsmith with UBS. Please proceed with your question.
Michael Goldsmith: Good afternoon. Thanks a lot for taking my question. My first question is on the guidance and some of the moving pieces there. I am not sure if we touched on this earlier, but it seems like the NOI guidance moves higher and then that would be kind of offset by the higher interest expense, as a result of not using the proceeds of this note to pay that down. So what were the moving pieces kind of like below the line that drove the FFO guidance lower, was that the Ingenia piece?
Fernando Castro-Caratini: Hi, Michael. No. Ingenia would have nothing to do as it relates. Only as it relates to the pay down the $9 million loss recognized is essentially marking the value of the shares at the end of the third quarter at A$4.20 to our ultimate sale price of A$3.90. So that would not impact our guidance. As it relates to the guide, certainly higher interest expense, as it relates to the note not being repaid. There’s some additional interest expense in there as well, but it’s primarily the note on the Park Holiday side from a home sales perspective, we provided guidance in July with the high end of about US$75 million. We are expecting that to be closer to the midpoint. And frankly, we give guidance and we provide ranges and some outcomes, right?
We have parts of the business that outperform and others that performs at the midpoint or to the low end. And transient mentioned in my remarks, transient revenue is down on a guide to guide standpoint where — when we spoke in July, we were expecting about a 4% decline in transient revenues and we are now expecting about a 7% on for the full year. We will look to offset and mitigate some of that impact with expense savings as we have done in the third quarter.
Michael Goldsmith: Okay. Thanks for that. My second question is a little bit more strategic in nature. What is the profile of the properties that you are looking for sale, like is there anything specific about the Sandy Bay property that made it a good candidate, was it the fact that had these development sites in like the additional capital into it? And then, finally, allowing the same line, do you have a target leverage ratio, which you are looking to move down to through the sale of some of these properties? Thank you.
Gary Shiffman: Yeah. On the Sandy Bay, I think, it — as we have shared, it just was, it’s very high quality, very high-profile property. The fact of the matter is that we determined we did not want to increase our capital exposure in the U.K., and therefore, took the offer and the opportunity to put it up for sale and we will continue to market it, and as I said during the income, as that process goes forward. So nothing particular about that. In North America, I think, what we shared before is, we did sort of a deep dive looking for where we can recycle capital. We looked at all of our properties, and the fact of the matter, we have some properties, where they are in a single location, we probably expected to be able to acquire more properties in the area, but the fact of the matter is, they are not efficient to operate without more properties in the area.
So those are the candidates. And then we have some smaller properties, that really don’t fit the size of the company right now in the way that we operate. So those are the types of things that fall in the bucket. They are all performing, they are not cats and dogs, and we just selectively bucketed those opportunities to recycle capital.
Fernando Castro-Caratini: And then, Michael, as it relates to long-term leverage targets. We stated our goal is to be at 5.5 times and below from a leverage perspective. Pro forma for the Ingenia stock sale, we are — on a trailing basis we are now at 6 times. So we will through free cash flow and then through these episodic sales we will look to get to and within that range.
Michael Goldsmith: Thank you very much. Good luck on the fourth quarter.
Operator: Our next question comes from the line of John Kim with BMO Capital Markets. Please proceed with your question.
John Kim: Thank you. In the U.K., can you just comment on, who drove the decision to move forward with 2 separate transactions with RoyaleLife? Was it the local Park Holidays team or was it your team in Michigan?
Gary Shiffman: As I said before, they are not related to Park Holidays. They are separate and distinct and it was management.
John Kim: Okay. Yes. I mean I am sure you are aware of this and you can hear this on the call, but in meetings you have had. But the performance of Sun is getting completely dominated by the U.K. business and I know you are looking to simplify and improve your balance sheet. But I am just wondering how much longer you could stomach having this much exposure to the U.K. and have you contemplated exiting the business? I know you don’t want to buy high and sell low, but looking at the forward growth prospects of all your different businesses, why not contemplate exiting the U.K.?
Gary Shiffman: Well, John, I think, it’s important to understand that, first of all, the management team is doing very well there. And the growth and reliability the real property income is achieving management’s goals, although home sales and the challenging environment aren’t and there’s been a big focus by stakeholders. Who clearly are focused on home sales and how they are lower than we originally guided to and the fact that it’s not the business or the percentage that we wanted to be able to contributing income. But we acquired the portfolio in a much different economic environment. When we took the opportunity in what was a strong economy to increase our manufactured home holdings by acquiring Park Holidays. The properties are themselves are excellent and we do believe in the business and the team.
