Equity LifeStyle Properties (ELS) 23 Jul 242024 Q2 Earnings call transcript

Good day, everyone, and thank you for joining us to discuss Equity LifeStyle Properties Second Quarter 2024 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 meaning 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 SEC our discuss to and President SEC information will measures Regulation turn supplemental to to G. over historical time, this

results thank morning, of you quarter for and report XXXX. am Good the the for today. second us I joining pleased to

exceeded performance our Our expectations.

months X last compared as XXXX, growth to growth. of of seen normalized on NOI we to NOI in an translating first FFO the For increase X.X% year. focus We have

by and Our strength of normalized FFO full continued year. balance The results expenses our our the annual reduced sheet our portfolio strength to for time and second in portfolio. growth year us increase year-to-date our this throughout is X.X%, allow driven guidance revenue

year the XX are our generational million for strong the full long-term to and normalized and raised have our interest portfolio enjoying offerings. boomers all We Xers RV of Approximately demographics MH XXX MH $X.XX U.S. retirement travel for of baby by the at millennials. catering adults. RV demand nearly portfolio, years, seniors Gen million in older for among We and to their currently property midpoint. followed see population FFO our support guidance demand of The the with XX%

is our portfolio, comprises which XX% occupied. Our of overall MH revenue, XX% approximately

portfolio. Currently, we new contribute community. years, XX in stock sustainable. is of than increase high is communities. continue portfolio in we X,XXX the our believe sold X% we These homes in demand, our can occupancy homes. our to quality homes And the rental housing comprised less throughout based of have The of last to our over of new the level on Over occupancy occupancy

our in growth segment, which of well annual full of and our to represents we the performed our has respect XXXX, the of portion revenue quarter, revenue year an RV RV X% for rate stream, had our anticipate With core largest Since rates XXXX. total growth X.X%. the RV annual business,

will We X,XXX have by annuals behavior in shifts seen significant of portfolio an future be performance. our of base increased part we customer our sites. increase approximately number core as important This customer the stable in

share Choice received that approximately XX% are Each RV resorts We XXXX proud to of and listed XX Award. TripAdvisor announced recently on Traveler's is award given have this of businesses year, our TripAdvisor. to the the campgrounds

they from provide stay when positive teams guests of a property source top experiences our us with referrals and guests are Our with new customers.

engage and members to strategy. our guests, prospects through continue our We media social

platforms. We follower Instagram, fan have TikTok, across million over X Facebook to grown base social and other our and YouTube,

work details turn on key ongoing further this financial provide reason will behind the our I to my between summer success. that our We are is Patrick I contributions on their Day serving Their want in XXX Memorial quarter. the of days to days Camping to Labor now of our exceptional currently the gratitude call customers hard employees our campaign our in over performance. of and the middle for focuses for express Day.

across and homebuyers of the over our strong comes vacationers. residents country, value and our Marguerite. for The guests that each locations their our Thanks, property of consistency own including property. and mind is at finds of the Value time top results from consumers

particularly and customers in are challenging who looking economy, any economic well in environment. attractive are for a positioned value serve offerings we Our are to

long-term XXX new CAGR the are coupled for is sold find that occupancy occupancy compare high These by by with maintains of second year-over-year. at portfolio an XXXX, in an driven elsewhere increase quarter, is MH the growth. revenue high-quality Our an homes point alternatives rate submarkets value price provides cycles, homes X.X%. MH XX% consistent active the economic growth. during We total through and results revenue Since consistent residents that communities, demand is This our growth favorably our communities. the supported in lifestyle at ELS not opportunity available for and to offered

well. increases higher purchasing price portfolio facing or increasingly marked to housing as rent the constrained a of offer true for an increased Manufactured That interest value communities $X,XXX supply and who compared the apartment Today's interest ELS value new now Manufactured in value. new $XXX,XXX average a homebuyers cost is in homes. ELS home rates, by new home home compared Those less housing are of market, XX% value than any today's $XXX,XXX pressures economy. ELS average advantage our same rates. housing site-built exceptional But to and approximately manufactured in given and on focused cost communities purchasing offers renters holds in approximately site-built pay affordability in a and home costs The average submarkets. value present X-bedroom home.

in buyers lifestyle Homeowners same for site-build a buyers as and fixtures ELS XX% facing as monthly homebuyers communities of appealing communities as well, The expenses. living costs submarkets. higher homeowners factor maintenance lower comparable single-family and often in resort payments are is the for less in community homes another ELS the well which as enjoy approximately finishes a than in setting

our offerings market. housing communities The combination today's to attractive and home the in homebuyers of inventory our found availability affordability, very lifestyle resort makes in

Transient summer driven of big than or X with to portfolio, are XXXX weekends weather has RV holiday behind middle revenue of in the events. X the For is us. season of our the and less volatility, RV revenue by we the largely total RV X.X%

offerings, guests. Similar to real RV our stays transient our other to offer value

Our average is rolling $XX. stock nightly rate

average when their and options. longer-term travel this to including as hotel RV is our budget-friendly summer, premier destinations compared And $XXX in with consumers' vacations nightly value focus of resorts align looking value are our on Our Vacationers average rates considering rental affordability offer that $XXX. stays. cabin for rate

is average site customer their to month. exceptional Our brings that's approximately revenue of is locations from year-over-year a typically a a variety choose $X,XXX site The X-month RV $X,XXX, combination and who while offerings a translates customers property annual seasonal stay about consistent growth. a for to for of rent

to I'll RV around do horn performance. our a the quick highlight

coast. also revenue Marguerite our of As The the total market. supported with revenue That RV includes concentrated by largest RV strong leads growth portfolio revenue And the region, the XXXX, given produced is CAGR our in property our produced mentioned, a largest along our which in-migration X.X%. and Sunbelt Florida leading a and X.X%. X CAGR is locations X.X%. XXXX California of of a and it markets, CAGR RV trends economy, XXXX Arizona, West strong since next

it attractive from demand a ranging to Great results in X.X%. by for line Eastern now resident our consistently approaching and the to an provide RV Paul. continue value, offerings X%. meaning end portfolios [indiscernible] CAGR MH produced XXXX from the revenue region at customer to seeking The come lifestyle growth over CAGRs I'll consumers and high-quality Those are turn Coast price. Lakes are North Our we of both our and

year guidance morning, some our with will quarter good June assumptions and from and the and sheet. full everyone. of second a third XXXX and our review highlight for takeaways discussion year-to-date quarter I balance close Patrick, our Thanks, results,

than Second XXX per quarter $X.XX share, the our guidance. basis quarter, guidance growth normalized higher generated Strong higher of range. NOI FFO was points X.X% almost midpoint than performance $X.XX the portfolio in

quarter. FFO. share per $X.XX residents to primarily as and residents from increased and sites normalized was rent FFO million by X.X% has includes in resident that insurance income noticed of renewing market recovery community-based a paid of quarter for to the Core XXX by revenue rental increased been turnover. result homeowners compared We new after deducted $X.X increases XXXX, the

represents RV total and prior X/X income, of Marina portfolio, income, the rental rental in annual Core transient compared Year-to-date quarter seasonal year-to-date which X.X% Marina year. the to based in and X.X% increased X.X%. core decreased base and and rent decreased X.X% RV approximately

variable reductions expenses. see offsetting to continue We in

year-to-date For the million, business period, of $XX.X to X.X% net compared membership contribution our an increase the year. the June from was prior

XXXX. for of to average X.X% upgrades approximately memberships. $X,XXX. the pass-through Also increases XX,XXX estate prior utility real of other X% increased during sold price Year-to-date, Membership pass Camping income members at the tax year-to-date the X.X% respectively, trails year, prior dues for approximately we've June from compared XXX,XXX compared an and year. quarter X,XXX Core includes period to approximately and June increased year-to-date recovery which year-to-date, purchased second revenue the and period,

points income XXX utility higher was recovery about XXXX, XX.X% in than year-to-date in XXXX. Our basis the same period percentage

points tax June basis in savings and effective X.X% period as casualty XXXX, compared maintenance expense X.X% quarter the resulting Second and XXXX. same was mainly increases expenses late was increased and than X, core Expense in and estate includes in growth XXX our XXXX to insurance year-to-date operating property from well guidance, April expenses. growth renewal. payroll as of impact real repairs the lower

operating expenses in increased property in For while operating second growth management property X.X%, quarter, X.X%. core property the X.X%, increased revenues resulting of core core before NOI

from was $X.X NOI quarter core and in core X.X%. increased million million year-to-date. management year-to-date noncore the property generated For by Income property $X.X period, portfolio our the operations

estimate intended are in earnings supplemental release third The of year overview full projections expense supplemental provide factors an remarks our our qualified press risk following package and the All and current to and package. context ranges rate future by of results. growth and are XXXX press for provide and release quarter The guidance. revenue included

per estimated the per per rate midpoint year normalized XXXX normalized an $X.XX range year Full full at X.X% midpoint the share guidance to share our increased $X.XX at $X.XX FFO of share growth share. to represents compared to per We've our FFO XXXX. $X.XX of

We share of core at MH growth and X.X% of guidance X.X% Full rent to RV assumes the base project in range income X.X% range normalized for X.X% growth core $X.XX. of per to to FFO ranges to quarter of property $X.XX year for and the full We expect our X.X%. of in Marina. X.X% the X.X% operating midpoint third year

decline guidance to to year X.X% periods projected seasonal quarter, expenses X.X%. property our year. show assumptions of the decline a are combined transient a X.X% increase the Core midpoints in operating to The compared of full last X.X% third for respective of for and the

during as savings the and of insurance year X expense maintenance Our assumption renewal as first X months the in our of XXXX April and of expense the for well payroll full impact repairs benefit growth XXXX. includes

that no of we event reminder, make to year assumption makes no for assumptions use in XXXX. full of a material cash the expect impact free a the flow we slum may occur. generate regarding The As model guidance

expenses and core our our guidance revenues is projected property of increase at midpoint growth at projected Our midpoint guidance to operating the increase property projected income X.X% operating guidance the range. third of the assumes portfolio, quarter range. are X.X% be In to core to both X.X%, are

I'll the now provide some and comments financing on market. sheet balance our

pleased a package, noted As in and on $XXX release our We're the of line modification modification earnings substantially as same. extends and with the extension X-year supplemental unsecured loan. we million the option group terms XXXX maturity bank with term our a million July related modification of credit this to provides and that of $XXX remains execution material to unsecured no the the closed closed

quoted debt on coverage. asset terms including service loans XX% quality. to and are type lender, X.X% borrower debt vary and XX% and between X.Xx X.Xx to secured X%, loan-to-value Current Current sponsor factors, many depending XX-year and

MH for solid XX-year from and to financing lend continue continue to assets to see command We age-qualified life interest terms. best High-quality, companies terms. GSEs

$XXX our available capacity. our In position, of of ATM credit, has on our approximately line and we of million million $XXX have terms liquidity program

maturity years. almost secured Our XX debt is weighted average

coverage X.Xx. Our debt adjusted X.Xx and interest to is EBITDA is

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

would Now open for questions. up we it to like

Dennerlein our [Operator from Josh Instructions] line question first And of the comes from BofA.

weak during just you how define you the seasonal can us customer? remind was Could additional the revenue any then provide? And quarter. seasonal detail Saw you

a longer Yes. X Josh, and shorter a seasonal than months. stays than us with customer month customer who is a

for that the or going was just I apply Marina to ask, [indiscernible]. and just is Okay. RV RV

both, customers the is we predominantly day are have but use. it annual very some apply would practical shorter-term Well, Marina with limited that customers the to answer

Okay.

Okay.

Sorry. I cut Did you off?

no. No,

the saw what that? color I there? kind kind bps Okay. annual And And of outlook, like looks Any Like then the revision the Marina lowered midpoint. RV XX then on revenue particular the differences then the RV and of drove between on side? Marina the any at and you

impact -- to I'll of think a XXXX that. comment I a the I little tricky of the leap on I just made mean April go is and bit the because back year call.

the direction. impacted quarter, and have fourth issue day opposite the second, and first we this then X that So in impacts third quarters it the

moving movement think that basis year. So as XX refining slight attributed mostly the to point the we're that's it's really I through

it's then difference. And to with Marina not any and a meaningful RV and there, the differential respect

I Marina think maybe higher close that rates the the than RV being rates XX RV with basis relatively increases. and Marina are points the rate

line next the our question from of Eric from comes And Wolfe Citi.

on follow up RV. to that Maybe annual

You're X% revenue growth. guiding to

X% I growth like of offset think you're some there, an Because I there that above Is RV. if conversions with that transient rates you be think annual know impact? ET increasing I didn't for last year, would but there I revenue X% remember kind the offset. to going mentioned to conversion the annual from was

[indiscernible]... offset of kind Some in the

above customers increase from get X%. revenue If you to you're to And X% if that converting you're then annual, alone increasing that rate would also transient growth. by X%, would right,

I'm how from a increase growth impact from get rate plus incremental sort So the just understand to you annual? the X% converting customers to X% revenue of guess I trying with transient

And -- annual some there hurricane cetera. are longer that cleanup, basis some of that also was no offset there's also to workers Eric, et us on us from an were for with with that the

rate annual So you saw offset that reduction increase. of account that some that in

Got talked determinant. main sense. as then far as the the you've performance, And weather the how it. about past Makes transient is in

of would had you define the I'm year this consistent transient it, or is if or weather much see either that want or the maybe business If consecutive having business? how you just this curious out things however transient weather the bad is how way strip there your that some weather had trying locations to through X estimate growing? you to different think years you if to impact on look quarter

we drag where In you probably impact, base. a XX is that issues transient transient the the by to don't to as areas what increase and an properties then we've think the see impacted I revenue. have seen of XX weather that our resulting see weather in you the that are

I there up it's way guess, growth it understand much like Like quantify X%, possible? Just weather just X%? taking be to a rate might is that that down is that if what to pricing trying how is?

night the on about overall those would I not staying not And weather. us People issue. if the it's rate Yes, aren't nights. a with you're Yes. that are It's say X% just on by weather, by it's that impacted a impacted issue. those

of RBC. next question And Brad from our comes from line Heffern the

savings. lower you is expectations? expense overall it then is operating much I in that more how guidance? give comments, you much a Can adjustment around said the of how savings? just prepared think color true RV to the But payroll and an lower of R&M And

Yes.

and our think look our almost assumptions, I payroll so and growth increasing you that's full those X.X% year, think we're range. Utility when if are the I X%. just expense of the the X/X Brad, midpoint of about R&M at roughly overall, at expenses,

mainly year-over-year comp results Now we that, that basis have that's in And print. July a the from that lower say about I'll than R&M. XXX CPI points favorable

had call scale, storm them, the first of I'll So the X events some year. smaller throughout months XXXX, we

that And so include And real expenses favorable and estate are X/X insurance, over taxes going of then X%. the up and we have remaining impact. those our

So of to the point. transient Inside think we that's well, business your the of kind of how is that it. mix impact as

adjustment living obviously it than higher. mid-X% to or right cost the reason it growth, lag then MH And was it. COLA would Got that like expectation there of any 'XX the differential for adjustment to higher the normal? a now Is range. of the in when There's rent looks the be lower moving that Okay. is think

if as well. when down also curious it moves there's a So lag I'm

presentation adjustments a I of our annual at that highlights outperformance latest couple investor COLA Page I ago, term. the it's think months if look long rate compared we increases out put think XX. that It on you the over of to

So if XXX XXXX, of basis see you an you back spread go to average points. about

year. residents, rent to later feedback then with dialogue we'll be which the give update increases and those Our focus negotiating on in residents annual that our an open the an is you include on from on really able and

you, that had residents increases that benefit we recent of who also new in market. And year-to-date into in Brad, increase has been I remind the are have to XXXX, XX%. about years coming would And the

question next Keegan Research. comes of line from from the our Wolfe And Carl

Maybe on your to it guess, business? two-part what's year-over-year first on view your a your home envision I one, of of question down here. then tick for the portion how balance rental sales do year? homes impacting And you basis? Is the that

[indiscernible] Patrick?

a Yes. Well, referenced down load. of sites. homes down to and respect broader as number our opening continue rental that's we're a to number slightly sales. position in her may that if occupied in than we're down more below overall touch X% priority continue we'll the sure to But go housing and I'll to following any Marguerite That market we've the a -- of just to seen that down respond shocks that around manage to be high able reminder, total a GFC, becomes comments, rental go slightly, from the first home and the on to trend it we've to X% that managed of with make --

sales, XXX XX% up quarter, mentioned home year-over-year. my respect in I in to With sales comments, as the our that

consistent we to demand. see So continue

we still call a And pre-COVID it, reference be would over outcome. communities. that considered have moderation we XXX see homes just for selling, manufactured a the year, to course new in price at XXX While where full point, the some of a seen as consistent higher favorable year points, homes our we're the demand

favorable. if consider home to quarter new sales in XXX the a we be we're that So range,

at curious if a transaction the you movement just in maybe cap market guys rates? what are all more there's general to gears, shifting but then in see and And just it. seeing any Got question,

volume The has cap as the know, down to transaction over been smaller Sellers there's last into a lack financing. have trading expectations Transaction that for with strong significantly command assets is of to increased. buyers in fit slowed often interested few for The but slow you These years. rate continued that assets. lot acquisition quality set There our don't sale. are the adjust. assets. low are really still are a market, cap rates, Sure. seller the of have really deals really institutional seeing product buyers, very We're

of Samir from our line And next Evercore. comes question Khanal from the

wanted just Marguerite, here. I to a ask follow-up

I growth by think hurt transient you X%. weather said

want X% in you're you So make the when would X% way down to that Is about ex weather. quarter, down the sure think kind roughly I right to mean it? were just of that

No. What I saying you'd event, weather X%. good that weather a ones be about for was the up that ex had

Okay.

sort opportunity in year. of mean Okay. just terms on Got And should right follow-up, acquisitions, your much it. kind Got you half there that to first the of then a think the what side. of as of set? there out the active understand been about acquisition it. now I you terms isn't opportunities know acquisition in the but haven't said seeing in Trying we I the how you're

Sure.

time on which we're shape in So keeping is been acquisition find internal for comes to to positioned really The market. to to balance an years us from able acquisition transact interesting focused XXX our when not ago we've sheet ourselves great to conducive be to transact, why XX XX always we've growth really market grown over properties has expansion from operations and when properties.

on not continuing with timing aren't their sale. quite we're whether their sellers or to So determined talk who

we're And transaction And talk group to a to able transaction, a know own. properties on We we'll it. want we to basis. very continues about acquisition with on the -- meet regular a when report our owners

the comes from Wells our Jamie question Feldman of from And line Fargo. next

and segment, transient seasonal transient the Northwest due and I could seems versus it detail? -- seasonal those seasonal But bit in talk Pacific growth XQ. know that of mix better implies more the on to versus Arizona transient. much in current the of those a versus guide fundamentals you is So in and the Florida Northeast, for about

and that's the I I Florida Sure. as largely by mean, QX we a The portfolio, today. a our that more guess, and -- QX predominantly, the of -- it's is component can QX on driver. results and a I are consistent you our the markets, business. the to the seasonal with annual Northern mean touch that. balance When I driven -- look referenced, of middle portfolio of we're smaller driven by in season That's the much number,

But year transient, business driven last be customer is you're to demands some largely going on transient challenges in summer what normalization in Spoken that those season, on few we Marguerite in seen as on this we to submarkets. if seasonal -- and it's well. through continue the while by come highlighted, we've at those across And properties. as the as move we to looking And this to demand. our see some calls the face markets weather,

such to X rates just are a a there? the just assets they Okay. to can election, of is transient Is And for lower catalyst them Or nothing to there people mean the see the just the one what's of then, back, flowing of transact? interesting what to just back all anything just to just the is tough sidelines. it's of go out where people on time. moment actually get want hold expectations waiting you regardless to really see be and more to not. or I on them? an seller out I have I because kind such stay -- cycle, in get if -- with market this low are mean we'll and think been don't typical the generation you would rates are there trading really guess, talk if happens We point if hold the even there just tough that about rates,

patriarch maybe either light life are or a the a family There an be owner. of for event we've think the is away. sell that a are is over some time of to interested we've I What of about talked the that or retirement of transactions indication desire majority matriarch in that result sellers long Certainly, transacting. an Right. could in seen the a

seen we've happen. And that so

owners interested So for that these engaged is to were with just us keep owning. in the assets we're key -- in interested that the

of real that. mentioned of thing them. on these to change not any debt. have interested that are many you free assets we no So They're rates, in I do the mean financing

that distress assets is to really have for driver at these no anything a So in isn't all. to There refinance owner the that. or like

If could Okay. just ask each I really many are how that you type? property assets in tracking

say Well, tracking? mean, have that's in target been when we the because a been XX list same you for years last there I has list the supply the target roughly marketplace. really no new

we with. we smaller course, right assets that So a we'd have to a list then, opportunities that teams And have looking that target now on of our focus that like own. engage we of and we're subset at

Okay. of or amount? But account in dollar terms like

Well, that the broader about never we're the set interested we The we opportunities we talk subset. that have -- -- don't in. don't is X,XXX-plus talk

And the our line comes question Golladay from next of from Wes Baird.

cleanup the Can the in hurricane if people? you on out you RV annual strip comment change retention

similar our Yes. the very turnover long-term is I MH mean to portfolio.

years. So XX customers staying are with us

turnover a roughly number. it's So XX%

Or Okay. on just night seasonal RV the they fewer up? the to seen then And guests any days? side? you you the Is impact that issue. supply on fewer And staying have showing mentioned and just are transient,

impact, take there's developed, In I'll than been the well, markets, -- and communities a that's across the portfolio. in some been certain locations of latter question think less there handful of part I have first. but the new

it the portfolio, impacts specific impact the a that location. So broadly one may isn't supply question

some further of of And have the as end those the length in then from nights, the of and we transient seen terms to pandemic people's pullback kind of we've ultimate the period with progressed flexibility. respect stays

benefit think if had point? or that burned all we've of And pandemic at would you off estimate, -- you to this would kind you guess, work-from-home that

through we're burning last of the we seems the -- if already, this through summer burning season. we're It like haven't it

And comes UBS. of Michael from line our the from Goldsmith next question

about from weather, wondering We've talked I customer your any seen sensitivity incremental you've or annual transient if the RV but the membership on was price RV business. bit a little

rate just average of time? that to get of now. trying the called think the average sensitivity Is cabin of over right is out been hotel compared price of sense rental $XXX rate to the where night I it's gap the a you I'm customer $XXX. consistent

I and -- it's say seen our both have we consistent I'll rates the MH with guess, -- -- in first, like Patrick. business opportunity our our Michael, to seasonal the Yes, customers be transient that very annual -- has has predictable.

stability business strength you you to, and couple across of combine very view, And say that would I CAGRs I total business which roll a have all lines. guess, the X revenue. up when been I mentioned consistent on just if touch rate the longer-term the So take a lines. components RV into earlier, the

us, season as as for transient, some seems North But summer is QX some of a markets as beginning including reminder, and with started but quite Northeast time which in the transient front, like California. cool seasonal well for wet April, throughout and on our the the ago, weather in very major

of from Sunbelt. where front, into stay the wanted we winter. a up that had winter in And of seasonal pick QX seasonal would mild we some some where up a people expect the we to would On North, usually extensions usually beginning through benefit cold relatively the

still that not or that mentioned, respect same et that from we've with transition construction, the also, of we workers, in and further cetera, [inlet] as have be as whether And a Marguerite had hurricane we'll have didn't the period. pickup. we're but traveling away that We nurses, comp receive, getting level further to

trying get follow-up, a transient sense as -- was RV expense just due to adjust expense I'm lower of nice to I'm ability RV? lower much of lower to just how trying transient I a to lower of of of some to associated much of think with the adjusted usage? the expenses. it. Got due sense some to lower the the get demand was job offsetting in RV savings transient of ability guidance of you've And the pressure same-store how your done a reduction kind a

Yes.

to think, what storm transient the expenses about from as in significant other events, periods. smaller favorable I variability the a we this the the with seen on maintenance we've compared that's Michael, -- in and relatively associated what the year-over-year that comp contributor I have activity those earlier mentioned repairs and year

So than transient. the change the seen larger it's from in in a piece we've past coming

one Got bit a weekend if you Can Memorial compared July about talk it. Day? to I more that And in. can and you how saw X maybe squeeze little trends over the that

Yes.

Tuesday of up comp Thursday a the The a of Xth opposed just drivers And weather XX% we've year-over-year holiday year, off Wednesday spoken also consistent this plans this the very had fell as well customers, saw holiday weekend. pretty And couple last time performance to from including the outperformed Rentals we with Northeast, year. are weather. July, on the as and well weekend very a And to on vacation finished California. Sunday year perspective, obviously, left favorable about for transient. we stock. performing when the stock we some focused, well. the as holiday across portfolio even performed last year. Overall rolling broadly, For from Friday to than better the the A rolling Tuesday fits

Capital question of from BMO Markets. Kim comes John our And the next line from

seasonal and XXXX membership, below back and So level, huge now RV Thousand Trails got they're at been above boost a like those revenue RV COVID. have still of you levels. transient a XXXX they're lot during both but when looks demand look given It gains

the leg side? next both the that's Do goes. revenue if to wondering I'm all on retrench XXXX, the and it membership back So where we way

XXXX we trend is I retrenching back normalization COVID which growth business in characterization, peak, period a fact if in of as I'll occupancy Patrick. don't question. the The our to But a and in rates. we to I in our fair that both we're Well, through the off that trend to revenue. and appreciate XXXX, from that across lines, yes, coming comes business. it's look speak the a of through see XXXX, see and

So term, I business would the to, a we're I use to of say the comparison back back periods, through bear normalization as XXXX going opposed a fundamentals I'll to guess, retrenchment a level. pre-COVID and your

John, to And I Trails about, is think Thousand also just relates think to thing the the portfolio. it as

team that a great the base on growing of I think properties. has the done annual focus job at

the total revenue. represented portfolio, it's base the And I think about the about of today, Thousand XX%. we when Trails annual X% bought

grow would the we strong in So fundamentals that envision RV business. and continuing support to

sites at sites indicators up looking It's high. At all-time now or the get goes both? drivers an the expectation that annual this is sequentially at the point? down sites, where sequentially. for Are be time, going transient sites Or of on some at quarter, revenue -- the those same RV converted your went leading transient to went

continue that annual. I to Well, see customers conversion longer-term to customer and of we'll seasonal think transient

ability So attract has any been annual that change yes. think -- there shift, and long-term don't the a customers But the business there's properties. to I suggests a the in to that think I

forward? but if question sites going company ability me. of for a integrated, talk the for history MH? wondering communities or Can your you are realize some some about I'm Final both to and I potential converting have RV that's

Yes. those say it's across multiple percentage. a I portfolio, have to respect that to would broadly respect the with relatively But properties, your with low question uses.

were the number, in site When ago. with units. together property. it's units least XXX purchasers at those we few is have of MH MH end, a through front the which now went the Those the at respect digits on Arizona, our property I expansion, believe on existing that You XXX viewpoint double RV the in MH and sites customers. of was the so particular, coming years RV to to from Phoenix, [Envied] into full, same a

The the familiar in more are use for relationship better you're you opportunity we us MH. when your There's So community, embedded location. an already the a your to that the there, to you with convert to the are proximity there. opportunity proximate of RV location, customer families that there, where like shared the friends in you're have more use property, RV opportunity, is there's particularly MH there's have a

or And entitlements different MH. for John, RV are the

So is I may would sometimes that that to a loosen of some to -- envision put can the able in barrier be those future RV. But up. on an barriers MH being

comes David And our next question line from from of [indiscernible] the Street Green Advisors.

of increases rent we've going are talk seen if where as see living context could wondering decelerate cost in slightly? you them was and I about the MH trending? of And where CPI perhaps adjustments you

just slide history Yes, COLA and our -- the a in go points kind rent of investor that's increase, been the roughly XXX higher increases. have I'll rent basis increases than the sure. the of Historically, presentation. through recent

the period experienced now of which inflation, we a single went high normalizing and into digits, point. to high through and is we COVID higher increases As reached demand your our

more And the inflation, being I XXX higher basis to rent moderate. our of that increases XXX that COLA were see us periods points of adjustment expectation that in would range expect can you of the On expectation. long term, the in inflation or of a is slide, reasonable

the So in come don't really that us. trend long-term through for a peaks

to many rent As manage long-term we times, of more to moderate how we've time. tend spoken have over view increases we a

we've good you my And second Great. was still those churn what origination on as had curious, I do very the memberships the declined, volumes? level is that seen typical question, but think

Sure.

we members that attrition, us more, we excuse think years have pass X%. who've customers, about attrition in XX%. we when been that or our member with about I'm have our XX see we -- about Camping legacy base, that So it's sorry, that And me, then is attrition --

those the customers X/X higher customers much about a retention of turnover. So rate. But other have

Does that your questions? answer

Yes.

the This like closing the program I'd to today's to question-and-answer of does program. comments. for Nader Marguerite conclude hand any session back

quarter very on for forward our look call. We you today. much you updating to Thank us third joining

and Thank you, the participation today's This in conclude program. ladies your conference. for does gentlemen,

may now You Good day. disconnect.