Equity LifeStyle Properties (ELS) 18 Oct 222022 Q3 Earnings call transcript

Good day, everyone, and thank you for joining us to discuss Equity LifeStyle Properties' Third Quarter 2022 Results.

Our featured speakers today are Marguerite Nader, our President and CEO; Paul Seavey, our Executive Vice President and CFO; and Patrick Waite, our Executive Vice President and COO. In advance of today's call, management released earnings. Today's call will consist of opening remarks and a question-and-answer session with management relating to the company's earnings release. [Operator Instructions] As a reminder, this call is being recorded. this of may the during in forward-looking discussed meanings the federal matters conference contain call statements Certain securities laws.

are assumes update statements uncertainties. of subsequent that forward-looking subject economic because certain Our risks become The untrue company supplement no or to events. obligation any statements to and

earnings financial included comparable Reconciliations I'd our addition, non-GAAP of At release, CEO. In non-GAAP financial today's in GAAP by our defined measures filings. Marguerite the and we call, our as during the Nader, financial like call these are measures the our discuss to and President SEC information will measures SEC turn supplement to to regulations. over historical time, this

and thank morning the you Ian, made of about for which and Hurricane our impact afternoon, in ago. Good supplemental days additional Florida provided XX landfall today. information us Yesterday joining we issued

members, Our of less over have restore XX nothing tirelessly than to some suffered the and days the from extraordinary. The whom and residents storm team restoration personal are efforts worked clean-up our and guests. properties of our last losses assist the results

by infrastructure We storm. lack The our have of employees, hampered began the the newer in utility residents of safety communities’ and our homes clean-up the efforts, particular prioritized homes strength after some in cases guests of as service. in evident Florida and the we a in was

significant advanced years developed preparation have which a planning. we the includes hurricane Over detailed plan,

the as storm property and soon As our efforts clean-up restoration passes, commenced.

as damage to best operation winter restoring including XX possible. significant seen residents the cleaning we and passes arrive communities days, as progress as neighbors. at driven communities. have as the a for a spend increase After We neighbors return In storm the coordinated emergency months. storm, to to normal made helping location by program additional mitigate looking an we in as have We displaced vendors having the up well quickly just traffic call on workers in our customer with have see homeowners towards as our to soon and

with want those cover to adequate insurance. Hurricane We accommodate Our periods; will under expenses will of to we recognized at protecting business to team business the in a Ian restoration in deductible proceeds for Florida associated comments. during this the believe supporting subsequent payment the continue estimate RV result to work Patrick including across teams with residents communities additional the our The of in timing will our I provide revenue at those details Florida. applicable we timing our better the to have the time. have insurance coming parks impacted insurance my on subject customers interruption of of thank may months. and interruption conclusion efforts

we of third results for Turning normalized FFO X.X%. quarter, the growth to the strong delivered

MH grew Our by X.X%. revenue

Over for in a last our have years, property. home the several owning we seen increased demand

Our rental pool of the comprised since occupancy X.X% our of point XXXX at homes. with is rental lowest

base important. is quality of portfolio XX% our This Our is homeowners. of resident comprised

homes caused their Following the to resident by any we storm our quickly see addressing storm. base events, damage

annual after of Our line RV transient in site seasonal of This with our revenue last revenue sites is RV annual revenue. transient growth the converted expectations, year. decline a being in and to of performed of over with a a in X% decreased decline X.X% and result number available seen the an

Paul on in in showed Inflationary those more the or relationship annual returning returning, time our for our year provide first will transient impacted nearly the with expenses. costs specifically negatively coming a member. in their the drivers increase with last to Our a XX% respect from detail seasonal strengthen us, customer pressures with performance to desire quarter. specific of utility

homebuyers pride were majority in of This to homeowners long of resident made new XXX sold capital ownership in we our investment portfolio term of the consistent live with is new have Over cash communities. quarter, our a residents entire and our vast results from base. the a buyers. During our commitment homes. commitment these as XX% The

we anticipate continued into XXXX, growth our increase range an portfolio rent of sending within X.X%. XX% anticipate October, end year MH of notices to the to average MH XXXX residents. Turning demand X.X% the These in rate next increase rent to approximately notices we have our by of

annual rates growth for For average The our have portfolio, to we rate X%. of have RV our annual RV sites. XX% annual an set of rate increases X.X%

Florida back season. for guests and to Our are to residents the anxious Arizona Snowbird and head

and Our to teams it Patrick provide their I on update. an customer will service. outstanding prepared providing for turn focus to operational over arrival are will to continue now

and everyone. you, good Marguerite, Thank morning,

weeks the Florida Hurricane as landfall, During two storm. properties making by following leverage Ian impacted to visit the

suffered center to at after After to level Our efforts a flooding restoration properties. closer are of soon properties storm. response ELS properties from team committed are for members the event storm prestaging by clean-up Several focused the primary limited as pre closed they for extent Property to and the in extraordinarily all the shortly storm, suffered majority storm damage and possible your underway the return and surge. the quickly the our removal were move of storm accessible were are storm. that They to damage vendors high and debris the on after clean-up was winds reopened There passed. efforts conditions. The as to storm properties.

power the are power or not hampered lack Our cases, restoration yet access of properties or restored bridge and property. capacity, by to the full partial efforts some at road or in

for where those Two over caused those properties are damages bridges, access need in reopening. from time, those or we properties have hurricanes, located we even the properties timeframe now some access restored early accessible bridges. areas when additional by the to estimate of properties by was mainland six have to We

food prepared groups. Through and Our served by to trucks were supporting organizations assistance restaurants, food teams guests. a providing storm difference is response while resident included make team, donations made and residents Bottled our and and our ELS program and our communities. we ELS coordinating local groups to water

on with difficult as to county consider for and wherever local result coordinate residents financial work And We for times. the suffered others residents necessary. charity and guests a our state through provides response storm, also of grants hardship the who ground

We to opportunity each property to the all hurricane. experienced on challenges this like are residents, and of take restoring storm. guests our focused residents I'd ELS turn properties the Paul and team our from in members and our communities results. the I'll other assisting members, thank especially to support it this to of offer over team, our process to guests losses of ELS

X.X% I'll sheet the respectively operating I'll our dues and for for periods year-to-date for the X.X% third year $X.XX X.X% comments balance were the assumptions property growth information to revenue our the X% operating Core our quarter for FFO rates guidance morning, conditions. some quarter with quarter. Thanks, prior earnings XX% per on also year-to-date and the considered provide revenue. of and RV Membership of debt and everyone. a and respectively. we increased X.X% Marguerite. normalized These for year. of drivers use quarter periods periods third operating in year-to-date respectively. compared and provide growth year. quarter during third In build including Patrick. driver increased of summary about expense I'll our XXXX. revenue third $X.XX, of and the close represent the quarter core Good the touch reported prior our results year-to-date release, the Growth our rents for remaining some market updated full and model we've discussed by MH the drivers to I'll on and share

the Camping memberships. quarter, approximately [ph] X,XXX,XXX During pass sold we Trails

quarter in the XX% the than our usage. last XX% almost Ian rate of notice, related rate I'll XX% elevated higher expense year, properties. expenses the quarter. was utility upgrade experienced accrue quarter an of increases timing and primary rate electric to caused expense more able restore compared income expenses utility making profitable comprised northeast year. sale expected as expense. predict in remainder our membership of landfall south utilities, during income a utility the not rates, increase in discuss the to experienced sale a have average than related While Utility average prior expense did quarter during and In it electric price. first we impact was the to a volume Electric note increased by to in the third primarily expected I'll expenses. was not Year-to-date, were given third the These estimate at expense increased end, compared approximately is increases offset recovery other sales restoration during XX%, in is making year. were in electricity. result on that average increases the clean-up Communities year. efforts. higher to increase utility in part from quarter in that ranging challenging was higher result by increase than Therefore It as advance quarter utility of to costs almost of rate been The implemented XX% of hurricane elevated increased last the of probable we expected to same RV of or than Core last upgrade lower XX%. months increases moment the driver affected third Property continued the particularly the nine quarter. the to we operating third

growth X.X% property full Our to property X.X%. attributed an operating updates. year-to-date increase discuss property I’ll revenue NOI growth management in now X.X%, core XXXX operating guidance our of core year for of expense core

revenue homes potential provided increase income the for results, operating six related provided XXXX XXXX. remainder costs on the include also for closed. hurricane assumptions of net the possible to updated in and expense, normalized temporary FFO held of various FFO, in guidance core full impact guidance guidance certainly per of impacted Florida. bad growth withdrew and that the quarter full assumptions across rates of for our property, to loss we including to result rental a The the we impact damaged are debt made As currently include sale ranges the occupancy, income related interruption impacted year fourth We've communities hurricane. we remove or year operation from for expense of These share,

unable of including recognized to in but to are are gap into stated interruption, we release, interruption still we elements adequate to subjected have recovery upon We're predict earnings or be we of insurance insurance we insurance timing As as revenue amount business believe business recovery. receipt. coverage deductibles, our

Before This period than uncertainty, we of volatility schedule up years. compares years, In matures total sheets. an our of debt open outstanding of markets next outstanding X% ELS REITs and this that debt and debt our the balance over average our five a debt I'll and is questions, total for matures to of well call for less XX% five over approximately XX% maturity the positioned the over with the maturity last debt broad discuss three years. economic around shows next

outstanding our of XX% no secured debt addition amortizing is In risk. there fully refinancing is

year financing to terms some pricing. MH RV will available with companies high-quality express We debt occupancy lenders. to our $XXX high base in million access as for of for no capacity LTV on communities, well from continue best life annual a have command terms. assets certain MH when set matures. debt to from have XX-year in as XX% to and percentage assets CMBS companies range maturities. more limits XX% interest outstanding financing secured X% from RV have of schedule age-qualified Current Life X.X% than and High-quality,

place balance sources to sheet of We we we capital high multiple on us. believe have available continue and flexibility to importance

interest debt-to-EBITDA almost maturity Our is XX.X average is weighted our The our times X.X is coverage of X.X outstanding and secured years. debt times.

to it for would Now, like we open questions. up

[Operator Instructions] with from Michael Goldsmith comes question First UBS.

Your open. line is

where behind growth my would morning. kind inflation That thought question. rent rent more X.X%? below good can Thanks the factors increases the short, year of keep of time? so been through you falls this MH and Marguerite, at talk has for the of recently, inflation what where the that's and trending you talk more about the Good taking morning about -- X.X% to Can process

methodology. that process go a at arrive Sure, you a Michael, every through can I then through think October. It’s our in Patrick number walk September year we and and

you take can Patrick maybe that. So through

that the described, of their of the recommended around our we through views we about rent annual our we're owner statutory for to And each it with come includes respective and comparable increase. the They we things going we conversations so term the down up on towards homeowners priorities, also on the properties we MH back as market I where rate half Yes, surveys markets and of preparing the and alternative want improvements, and as budgets, process that basis of on view a where the includes and and forward. half you market page come That place is respect well as on-going in changes the to I'll through year, all Florida housing with with speak sit properties with properties are the settle the process to to as as an walk same increase just the in move with long discuss respect do well the HOA community see so like the activities, as our property. that about on and work in operations of they of our the there's a community. one portfolio. a sub the

market overall half the To of rate going the be would it's approximate across to rate our mix I have would the increases across that's overall CPI, portfolio. respect with your by of increases. although market expect rate that the to that we portfolio, forces increases, Just point, about driven

CPI that year. number we about CPI trends how going expectations. the typically XX% have the at process term that's I out to year may in And full mentioned And or for an earlier, three towards that we increases year what month-over-month and land long to HOA, may two depending two increases on exactly rate a Florida, to are that works Our drive as for and three overall rate view CPI quarter-over-quarter, portfolio. the And then of lag agreements.

I Over in current the homeowner So that a That also, market range. of be homeowner those including date. rate renewal that market that anniversary in will impacts. time, trend Florida, new to be lease on CPIs that sells easily question. X%, X.X% touches And just the homeowner, of toward a could buckets. answers will recognition of all on new your hope an when upon pay reminder, kind the as the

raise usual future kind just rent that that in on a back rent in tenants, growth, in capital rents increases in or than the of that near looking that done are related these term, are with the your increases order maybe that lower kind to expectation your your rent is, future given are of would the higher some follow projects keep conversations with Maybe And or up certain would push maybe rent years? you as years? customers they have projects of to

been I mean, the think I is some Michael what we're that mark-to-market. seeing, in-place residents where there's

and happening do been what what so XX% some being people have that and of I willing the the talk property should incurred seen should capital are what's year, with about well think about discussions of rent that are. in of far, the that be. think coming the we cognizant able So where have CPI. we needs the the those I of type increases customers well, and very new to have increases about But spend And in for discussion to already increase, very rent so pay capital we've that going

second Got increase the was X.X% between time, year, it. And basis X.X% question, for then the X.X% rent increase points. of expected RV to X% XXX and of to my gap this the XXXX is rent XX basis annual points. at Last gap MH

the on to RV in And So you're sustainable the MH? is how that? that side difference power what's seeing the kind pricing of relative

and we an specifically come I to stay annual basis. they spend, wanting RV with the season the the us think mean, spend, I on spend see spend annual demand or have to on the people on side real down

at see that's happening market what's around And and We survey. communities. really rent driving formed that look really that's our look and forces. it. our that in around market increase. So what's We It's

much. Thank you very

moment question. One for our next

Our Citi. next question with comes from Nick Joseph

line open. Your is

interest capital this It's what most obviously a quarter. seeing the are broadly cap quiet the adjust you. Thank rate quarter as transaction higher across more volume in transaction for But rates recent costs? you market

Yes, Nick. Good morning

communities and over contract and in one we our home of last one two we those that properties the then near the manufactured one vacant over intend are, quiet was Those to the couple then quarter purchased next year, of to relatively in we pieces home manufactured that under of land develop Florida, years. I of right, put Chicago. are we our communities in required think adjacent you're

and kind I but owners that's notable real have take not what many are still relative what buyers, buying cap of the in And So the But, that owners are think tends rates. is very past, that what a in happened then owners of change less and pipeline they interested interested potential in bit rarely, we're in the properties. quarter. seen to seeing to little to just but a we've seeing similar their time,

So brokers great do a marketing deals. of job

owners rates a fear the I especially horizon. rising of an present incentive, refinancing may to really on sellers, there's think interest continued become for when term

So up I opportunities may think some in the of near future. come those

Thank forecast you. And very associated with and recoveries. storms, the recovery damages I timing, historically but the just on the That's other hard insurance to just it's with was recognize or the then helpful. that percentage clean-up? what

Nick Yes, our best.

in when mentioned Our example proceeds. to remarks back started to recovery interruption, the when the September recognized I from in XXXX. earlier quarter it’s interruption component, in the my the upon business first Hurricane as it experience those And which we that XXXX the of is And key is best have Irma think XXXX. occurred on recognize a of receipt, storm business even we about was we then, looking

we about it to, continue collected XX-month timeframe a those on quarterly basis. proceeds an that was We

Thank you.

moment One next question. you. for our Thank

with Our John next BMO. question from comes Kim

Your line open. is

came year impact operations. happened just hurricane your that on the your factors will -- the the surprise for a the of couple the as results Or wondering guidance of couple reduction you of the of lowering expected? saying you significantly of not there's The assessment given basically that just morning. the last weeks? ago, and than market hurricane besides stated Ian? worse a Good to Was I'm weeks originally other you. negative the in guidance assessment Thank what are of

I think John, a potentially, issue. have timing we

I think proceeds have insurance to that impact. there's we'll offset recovery an expectation on side our the of

we'll our our impact. that in a quarter you however, there's to is when a timing have the impact business certain I discussed that we timing relates There that about view of the of receipt fourth it the then experience the condition, overall, closure financial interruption significant of process. expense just the not as think to incur, relative properties. as or So is And

the Okay. fourth And just wondering component a timing of What something that the of in quarter guidance, You impact guidance? that fourth the on got the I'm versus rate else in quarter were inside also, much is that rates? much expense lower Ian, how other besides Hurricane what utility onetime factors expected. of utility what rising how due to on the RV interest the transient reduction that time, the is was over -- increase than costs. but versus came normalizes

adjusted had the there's that a I'll rest months. seen the day third the At in for situation talking quarter about, quarter, where forecast potential every a is because the them to expenses, we we think model. would it decline a had equivalent in adjustments revenues in line for reduction it. mini influence into compared our hurricane, have the is likely on and that but of the a the both say, almost and other three would the may team impact impact our say to model. prepare potential have and appreciate guidance. may saw trends this year-to-date, might the the items. of expectations of prior on end the on we they identify for hypothetical And we're the core changes decrease And And NOI have ourselves our would potential have in quarter and It's in though, as And to we fourth I'll our in we we've based of I also every the all have And the results, guidance resulted likely assumptions increasing. I in the our No, year. prior NOI. review a that our the based the of hypothetical Sure. about have of quarter for model, find made hurricane. we to goes like budget potential lot of that hurricane offset mean, a conducts to a

majority So just of of ballpark to to due and reduction moving can you or what the I there's a realize percentage lot Hurricane is? Ian, that clarify, parts, is the

occupancy. after I closure I I my I, the potential think and I forth. [Indiscernible] those the reduction us, said The about as loss bad so the of revenues, think lost the for the When too, of for think about when properties and potential during opening about, incur impact debt remarks, as

All of to is guidance. that together is the reduction the rolled our

written The right.

John, the reduction So to the of hurricane. FFO because is

helpful. It's you. Thank very

One for moment our next question.

Our Khanal next Samir ISI. with question from comes Evercore

Your open. is line

about above next of for Hey, expense about XX, the my how are mean, hurricane I'm expense these we're year. clearly next expenses sticky range out sort trying figure into year? trying higher think think the question you're Marguerite, you've as should to Paul, XX we year, That maybe that. to is good guess guided everybody. I to we around growth, aside, growth. how morning, I putting

our expense So growth is the year-to-date, X.X% in core.

in the year-to-date. increase quarter reported both averaged the for think CPI and I X.X%

we're all in So in, line CPI. with essentially

are in Now And that the repairs maintenance utilities utilities, been have and line year-to-date me XX.X% thirds excuse and has really two with about our payroll essentially been categories, and CPI. of elevated about it's increased repairs in payroll, maintenance Those expenses. period. have and

increases in in was September outsize CPI between somewhere showed year-over-year that almost electricity, are expenses The increases electric XX% the expense, and our component XX% the year-to-date of line utility For driven by largest CPI. total our core component the electric XX%. more rate. is annual utilities leads seen increased up of The of And of XX% XX% electric expenses. it's we've represents than with expense

we're Included long year. or that usage. these is have in advance And remarks, guests recover residents and about utility unbundle But an rate for increases XX% and volatility. that with to the related to history, that the rain in term category to of see such respect terms strategy often in storms, But have result Well, experienced or we significant. not don't unplanned we be costs experiencing customers. experienced expenses. arrives. rise mitigate the recover clean-up this we've annual our no in is rate to And my before utilities expense challenging significant maintenance expenses of and notes are to occur range uninsured over that costs bill little notice their they the level transient then mentioned R&M XX% certainly you I expenses past, Overall, and The because guests. in most charge our in with have the suddenly, the As in events, fluctuation loss. this core the to of don't quarter-to-quarter time, utility local expenses do wind RV basis, can from other somewhere XX% transient RV you'll increases in properties on some rapid events

related damage. R&M as kind at it, those expenses our which that see wind annual include As plans and following X% mitigation rain reduces investment Long trimming, about significant costs, an landscaping, we so look in tree of basis. on affected exposure as events, those infrastructure, to term mitigate well the forth representing of to that we expense our

that, earnings about expenses gone helpful as of our really expenses. the has core additional think of which in composition Samir model components create seen the Paul and the we've we you've so XXXX, through we've a an you to provided very is that see think can I lot And detail of

to right. I just eight. mean, understand four model expenses, with it I difficult year started a bit finding No, you the We're of Right. little that. kind

how think X% I that. XX, X% year? reason then trying for the of about it mean, guidance kind think question. thinking tracking remodel was to this I for are year figure seven you five we're the now So to kind where we up, I and you to you're I next to a And how close in rates model your out is follow as as X% just of you next the guess and that's another and another get mean, can about for year electricity to

too it's I to early for the mean, I much talk us about think XXXX.

call the located, that properties in the we'll in talk prices spot our pricing the natural continue certainly areas Northeast, electric to highlighted Our particular, our and the in about for be south, budget. we've But, where January, gas where drives in the for pressures energy are that elevated.

to monthly that that'll key we're think gas. how XXXX. budgets develop closely quickly natural significantly we CPI rates electric think be as have I a I changed, that reports, basis. subject and particularly energy the Again, component given factor and And a watching volatility we the that our are on for these go-forward

the talked your primary hurricane. Got of did come reason you it. was And you then I about down the FFO at guess at and look $X.XX as midpoint, a follow-up I for me. guide, When sort

on did think around of Hurricane Was $XX how Irma get about, So mean recover? hurricane, of you to about expect you impact it impact much was you maybe if I XX%, I -- the was time? think, how Irma. guidance that Were is able the it recover but the to XX%? do you over -- much hit, million I of $XX fully of mean So million sort right? some -- which provide Hurricane

Yes.

I the through see $XX of total million walk in that you range I you'll $XX filings, about think you'll around -- think to about see recovery a estimate million, the our think overall public that If is claim, million. and when the $XX see total, you you'll that noted we

I'm impact, the of terms cash talking in and Now recovery. spend P&L

lion's by of In we -- terms share of percent was the plus the expense XX-ish that lion's the the P&L recovered. impact, I share, mean, recognized of

Got very it. you. helpful. Thank That’s

for our question. One next moment

Brad Our RBC. from comes next question with Heffern

line Your is open

morning, good everyone. Hey Thanks.

the from hurricane. mismatch timing the about talked You

in, to interruption clarify, you once So would insurance just the on-going financial expect kicks impact? meaningful any business

I that, answer lag. recovered guess will be Well, the way I'll a the interruption on business Brad, is likely

But recover it. in a time, so law. is necessarily would won't -- to over it period be be time it the perfect And be equivalent to receive match we proceeds the expectation won't the that

back getting interruption But we the on is that the and on running business properties plan. up rely That's the focus insurance. so the don't

Yes.

Okay.

of broadly, And Got seeing but can take on guess take want side, I of bad like anything it. You unusual maybe it, to kind sort you are any debt, Okay. like that? RV of I'm you where stress the in that then, signs thinking levels about the things of portfolio? cancellations

very we -- showed I No, increases the MH mean rent a increases, RV side. we the as rate just we're then that the annual that's sent recent the I out on seeing mean, finding and for terms of side in

real sale demand So home perspective. real there, from a strength

you're as buy I think we to happens our demand biggest a for watch our comfortable It's the business do people feel signs to come waiting about now that's our of first there. for continued have the homes heading is first strength want in talking quarter, for And big list We a been what part as there, our weakness. stay people get very homes. them. overall, wanting -- difficult look us and is basis, So -- down quarter on season with people the our we're and seeing we're to positive. quickly into homes seasonal buy for to as But to very continue we of just seasonal

demand So the overall, characteristics portfolio. our feeling very about positive for

Thank you. Okay.

our question. next for moment One

Bank Our of comes America. Joshua from next Dennerlein question with

open. is line Your

was I of to Like resi implemented labor peers control and do you the kind doing anything of I post the help of the hey near guys you that front? Marguerite, there on to do changes that guess just well. on kind Hope can you the I that curious Patrick. the of on on guess, in in side. expense I COVID Anything term, is Paul, Hey maybe expenses platform? hey front. COVID know some kind the during particular of kind can are have

Yes.

with spread peers a to hasn't compared I we to will centers that have our efficiencies nature across think say think Josh; as able their oversight have operations think the expenses service some on. experience. shared savings on of and automate guest the some so about because time, is and terms decentralized function in I I the maybe see cost technology our costs able that in are things resulted resident that talked of you properties But reduce And and structure. result we've overall some in that, and initiatives. all the do labor our resi of to improving I focus responsibility for should we're as a that some like of of administration, over ours of a leverage implemented

on utility And of business. then also focused we're piece the recovery that

to collect revenue, certain submarine just which So will the standpoint we utility maximizing that the billing from a doing that we're making on and that standpoint can whatever side. expense offset from a and

just on way the like term? try put like any spiking, utility near when surcharge there the to Is like right volatility you side to see to it like more a to on like get

the what we around can and There's we do you side. within always and get There's some utility possible. that, sub-meter then rates and can, the you transient called. a revenue, sub-meter have the read increased charge that that handle increased you around where rate kind Right. here to is appropriate and regulations of of the cannot what we expense But have have ability where on we the charge it we -- can

of to like have hedging least spice I -- guess about it so it's fake too and kind swings at about at utilities out, you expensive? smooth just all What or not thought

challenging relevant been contracts in has it where opportunities fix our the that to we enter can more into guess, although markets focus deregulated somewhat relevant the to on certainly have has in economics. costs. Texas. It That's in of terms those Northeast, find been I worked is

guys. Thanks

question. One moment next our for

question Street. next comes with Green from Lu Our [ph] Robin

open. is line Your

to Hi, increases morning. want ask again. rent just the MH about I

the on to next MH expect average of mid-X% above batch increases stock? see or the you half or below the that residents based next rate in do trends, So disclosed current you the

Yes, Patrick. in a trend would it's it's going to I continue fashion. similar to expect

gap difficulty] market one I'll plus and to the XX% addressed is a trending with as I the earlier incoming batch. a Just make year-over-year. been resident a extent little that that has to next the in respect to that point [Technical new is there rate, market coming

to, I around guess, that. just context So some

have what XX%, a that few it's say, would months So been, ago?

been It's seen on mark-to-market. year, pretty what the XX% we've much the throughout

seen we've XX% turnover. we Robin, about -- So have

market XXX point uptick So to of those seen related about basis pickup we've increases. an

it. Got

towards to wanted shift just transaction market. So the

and the seasonal RV relative transient So has annual rates just in in cap recent any to widening seen properties months? RVs

been of I'd have there lot -- that say, been haven't a transactions haven't happened. Robin, There

In to call transactions that. that that difficult always even of X over have the points. to income say because just that at have trade the those would or months So it's data said for But really of past, I've kind to volatility year-to-date happened don't parks should inside it, together relative to I stream. pull general, I that transient cap RV of point a higher rate anything

you. Thank Great.

Thank you Robin.

for our question. moment One next

with Our comes Anthony question Powell from next Barclays.

Your open. line is

a good on Hi, morning. I've home question sales.

the hard you new you're sell Could I the homes that of seeing get sell to elsewhere maybe you talk the prospective and in just what maybe the to for-sale residential to it across to given market mentioned was availability market, trends customers. that about homes country? think the in

and Sure, pretty to do been able consistent call is occupancy we to a maintain XX that, it's Patrick. it, XX in acquire to to seen, homes been quarter new this What has we've in growth normal a on post-COVID from the that with manufacturer seen range have have chain basis. get supply more than other been we've we occupancy respect more as the our could we could There on side be many challenges industries. and growing to homes. net And in labor manufacturers if

shifts moving continue of there pace at some So volume until going or is to I up ways the to point that expect manufacturing. pick this some the we're structural would are structural that

in happen and for provide When something year this in? you let in XXXX and be insurance Thanks you maybe FFO on of that it. prospective kind the receipts more, for guidance next. Got just year comes that full BI as guidance? that numbers is one January, you the on it would including Or maybe guidance will report

we It's a be determine little would including. early to what

a call. January then we certainly into the be in quarter will a in update head proceeds better have but we'll first and receiving certainly the as NAREIT probably certainly XXXX, We

you. Thank Great.

Thank you Anthony.

next our question. for moment One

Our next question comes from Mason [indiscernible] with R.W. Baird.

Your line is open.

for Hey how to guests for rebuilding? the of seen following my taking you question. the be will area year Ian? good Hurricane seasonal I morning all with surrounding expect any be guess more unsure Have you to bookings everyone. do change doing Thanks next

out gets an if another we storm get the impacted are there's down. get in through because in hurricane November, where to season, the impacted what really on people no that's that areas and able specifically. phones Chicago, going passes Yes. start out in come gets Obviously, the go it impacted hurricane getting reservations is hurricane seasonal just really to -- and to York, in forget area New is cold -- seen the they cold in about longer us focused area month the increase of the tend cold of we but they to tend season, winter, is which we We've hurricane season, was hurricane has generally staying general, stay see particular that and where March. February be and Florida, January, for there winter on sun They with Arizona, the to ringing,

from all you. Thank That’s me.

our for moment next One question.

BMO. Our with next question Kim comes from John

open. is line Your

follow Thanks up. the for taking

I anonymous. charge know those not an carrying footnote a value a items X this you $X.X I amount, that's thought were quarter, million. reduced but just huge the not about impairment had You taking but by

you that. So I wondering was could clarify if

Yes.

or into much you think I me too category much, let through. but I might walk just knowing of learning too maybe John, fall

impacted policy identifies value net look our indicator exercise through at as we properties result, disasters natural test flows. and a future potential we So And took of cash have to a as estimated there's impairment an accounting the a book the for of recoverability impairment.

those the net are All values show of book tests recoverable.

the that properties there's impairment part were of extensive the condition the the impairment the an from we there the based assets conducted to So of perspective, that analysis, hurricane. was by days, long-lived which second past XX Then a on over impacted recoverability. no review of

and parties visiting damage were any the during their asset extent relevant team did management third on teams, ops from in line other significant statements. the to opinions information reduced we the the is the the item that assets identify on of informed assets impairment that damaged properties of mask damage assets expense, that that the suffered and effectively internal from that the review, that damage current we Based the condition. Our and our you to the And have, storm. of income carrying the those currently see value

those homes sell rent? the are it damages that? to on planned had on wider than or new you Or is that And

we properties. held a of assets that portion and homes the Yes. There in for that sale is are were rent damaged our

and of homes the those sale appropriate. getting in So we're in ready for if process the process repairing and rental rental, them is of for -- we're

you on increasing as you homeowner Do Okay. if homeowner in XX% second Or similar much to that I'm remind in us your there's question out estimates some on impacts a And in how year. And there insurance? Florida you an more as My increase insured your entity is ensured been ELS? next have how insurance by Florida? insurance have are tenants if level? they typically could wondering expect are

Sure.

the take of just in of the half homeowners. last I don't terms first, that why So

are residents I of homeowners, mentioned that opening own versus our remarks my XX% I renting. think in they home the

and pay homes. We have homeowners. that of with track in or they they those homes don't equity for vast cash, majority the therefore, group, for their and our pride of insurance For ownership require

the we since storms, through We over their in out the has work year. our London they come as of go at Lloyd's of next We and storm adjustors April lot that through out, as weeks there's MH-RV the lot now, seeing claim. their think -- mutually are properties have insurance beneficial properties of of have XXXX. normal last of an really through repairing as going a seen homes insurance our expire respect current But right they things in to led through passes. through our insurance, property relationship. the activity the a program people prior you there couple With work and programs awful drive

and is that and the for depend things a off, market, experience, April And portfolio which a on events. happen, XXXX -- risks and lot composition way pricing of Some hurricane the hurricane markets that will of our a the long long loss experience although underwriters, portfolio assess by loss then XXXX. think of XXXX the the season. other way, assess impact the kind the can real it is will and determines I insured the each their But the is they

markets the our Irma, wasn't it we an program, Hurricane and issue. adjusted and Following renewed

New as start that we the to come Year. So more on

the was Do you recall increase what Irma? after

Yes. We've years past in been XX% per year. look over increase back When a Irma, increases you expense. it's seen XX% about since X the insurance our

Got it. Great.

Thank you John.

over Since we I'd on closing have to Marguerite line, time, more back like to no this at call the Nader for the turn questions comments.

you joining updating for call. us joining you on Take to look us today. forward next for We care. Thank --

gentlemen, today's does this conclude presentation. Well, and ladies

You a disconnect, day. have may and now wonderful