Sun Communities (SUI) 28 Apr 212021 Q1 Earnings call transcript

Greetings. Thank you for joining us today for Sun Communities First Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. to Chairman conference and like host, to now Shiffman, Gary Chief would turn over the your I Executive Officer. you. Thank

begin. may You

Good range RV off second results. for our we you of has our country the morning The as as quarter all of X.X% and range discuss we third XXXX lines to by year we XXXX same is as performance this joining of and first a our to very growth core We're full us to XXXX experienced business $X.XX in pleased to XXXX our with a quarter momentum RV per thank transient $X.XX only guidance this high strong bookings, outperformance $X.XX. resorts of $X.XX, share start. accelerated annual FFO to core reopen. per of into the NOI visibility In year very are strong guidance expected exceeded and the end our the the XXX community our basis delivered Due continues share raising our and $X.XX first to quarter, to in we FFO X.X%. of for by points which

point NOI total the portfolio X.X% dictated occupancy of and achieved growth over same last selling a year, of first over improvement our basis XXX despite the XXXX closure sites. the by For quarter, California stay-at-home the early revenue-producing through continued We February. community closure border quarter which Canadian was the order California of XX resorts XX.X%,

Diego $XXX of resorts, into grand and and have RV site premier opening the the quarter, approximately the include housing six We Sun Bay the two million first deployed beginning Since XXX ground-up communities, we XXX of in our marinas. comprised sites Resort. four year, delivered acquisitions, manufactured also Outdoors San expansion of which

operations manufactured guests and continues our our growth quality foster high that our team brand, offerings earnings for revenues to housing of affordable our and housing, to enhance sustained our at Furthermore, are to and to a home this business, add pre-owned, assets time fundamentals up sales. over of portfolio benefiting over strength our find applications high XX% our record from irreplaceable remain reinforce community levels, evidenced to to Sun ways new, brokered In Our and live last by and serve the year. continued in demand time.

business, closures and XXXX RV the restrictions by Our with showing the during is XXXX. bookings both ahead forward impacted the the with associated quarter, travel of well while pandemic resilience and

pandemic resorts vaccinated and percentage anticipate population a our the option. preferred we As we the as from of the rises, best-in-class emerge to remain vacationing

we are population increased assertion interest the an XXXX during expectations the safety forward. preparing vacation Our for travel provides of Industry ahead seeing consumers to to of that RV RV the bookings class, benefit underwriting to back in our year's in is scarce industry year-over-year. of by and asset well demand we active increased leisure well-positioned are In normalcy, for the from this believe boating the environment quarters. demand increased after our slips of of to the as the and and travelers with boat have and and get A continue continued carry track multiple incremental Moreover, we an that our season. control. business, marina driven According resuming sought-after COVID, degree team to desire a results impacted sales last an being moorings. restrictions. demand by In by travel presence is third and With level for sources, strong for expanded broader sale unit segment stating Association our record-year advance as and XXXX is second outdoors supported rediscovered

announced growth for growing ago. continue the a open investment guests and ground-up deployment core It four nearly resilience expansion are Sun to March, these now delivering and further solidifying accretion includes our we pleased In and our opening to capital industry-leading strategies of results. Outdoors the of development. years we four first pipeline We other our fund are secure wanted to and meaningful of important from position raise equity activities. early relying is core An to on Bay San Diego to part billion platform, $X.X We opportunities. strategies of capital our long-term executed highlight realize our support to recent acquisition

match the state benefits and Together, the equity, to environment bias some with the with the at workplace. and physical we outdoor Sun initiatives franchise efforts wide a connect has ESG XX of are in organization accessibility expertise initiatives. inclusion, with of and committed mental RV we this to a Foundation's group assessing of to developing Park diversity, with support the and years with breaking its health new inclusion, social, equality in outdoor Key future our create discovery. foundation's and Park our importance consultancy unconscious attention said, diversity, strategy wanted mission to has parks launched resorts we the team commitment With national the of to experience of positive This social and our field with generations respect partnership an important fund This injustices updates equity, ecosystem to justice. of current engaged to in growth Sun, the are and in and toward provide will and the these change. that sustainability, our exploration through to contribute with We careful our National and Sun regard has this regard success ongoing governance. our equity. National contributors social Foundation to month, program. to of With deep

that disclosures. Karen, wanted over our we Before handing call out the have to John enhanced and financial to point I

the John will about now walk operational the we took With drivers the details provide to changes to through performance. of John. primary implemented Karen our the call I into you after Harbor, better turn Safe business. addition our the opportunity insight over we John? have of will shares

Gary. solid a year. you, the Sun strong stage first the for quarter setting Thank delivered a across board,

of the results stability benefits business our and as reflect business incremental same our MH, the lines. the and community Our marina our manufactured growth portfolio, RV, line housing of initiatives well of as combination across

quarter, increase first community offset a combined X.X%. XX.X% expense a average in the NOI gain, increased This weighted by For X.X% increase. occupancy same X.X driven by revenue was The by rent increase. X.X% growth and to X.X% a a was NOI supported in

our transient through and on and NOI RV revenue declined to our snowboard fully the housing ran order February. early to these and from are of border same California we of to significant during shelter-inplace in revenues as closure revenue, impacted a communicated same second providing by in million of we resorts $X respect $X businesses. beneficiaries community by Combined Same part community manufactured compared the for our RV season third now disclosures NOI same the rebound trade manufactured and were anticipate our revised RV RV the events reopening With RV $XX As quarter, million impact community participating. that which estimate two had previously are X%. affected a million. our quarters. are by X.X% housing the XXXX RV community we first NOI Canadian increased

and by forecast this to XXXX related comparable which over forecast be Likewise, and we XX% ahead of trending Our quarter second third by COVID is than transient of RV our disruptions given trending X%, believe transient almost quarter XXXX. higher original ahead the ahead original better a already budget is XXXX, budget our XX% currently in XX%. by of approximately

the In through community have total over our visibility as RV year great of just into same reservation Campspot, of rest years digital our to proprietary addition, portfolio XX%, and compared management we Today revenue reservations reservations comprise reservations two a ago. the software. of our for deal XX% our

a sites we the and and Moving in revenue In ground-up delivered is bringing development in on Diego occupancy expansion our first XXX with were as ground-up the to which XXX total contribute the key and four quarter communities. of an annual the XXXX were XXXX, XX.X% and expansion sites, of first our up MH added we of sites. sites in producing converted expansion and approximately RV to RPS A being XXX in compared sites core quarter San balance total XXX gains in XXX our gains component complete from development sites in XX.X% of transient ground-up portfolio, at Sunset the growth and over will in site stabilize. MH Texas. XXX gained portfolio Ridge ago. year housing they manufactured to our as revenue development These fill to to initiatives producing beyond, quarter leases the RV first expansion Of

XXXX, portfolio period quarter as market that XXX for throughout increasing same in rose respectively our a demand an respectively. strong of new of were compared of mix, benefits years. built as for homes equity and in in live up our last XXX in X.X% that XXXX. home prices well overall market in where were year, the home our of the X,XXX increase to the of vibrant over up and As communities Brokered to our by the year-over-year zone a entitled approximately homes contribute and XX% continues consistent reinvestment for underscoring and properties, strong. home as Sun's the to sites sales the geographic sustained homes, strength. value home demonstrates new for We these pre-owned our in both overall value quarter portfolio. we the show increased resale saw to XXX quarter, market of over versus pre-owned believe sales, the our of have in sold Average XX% first as sales communities home the product X.X% X.X% homeowners of XX% XX.X% compared We the end particularly portfolio to growth Average as the our resell desire prices will sales, Communities. coming Home the Sun brokered creating first and and quarter increase the once

Marinas during over of Keys, continues the Florida and the and which two the NOI. our Marina portfolio Marinas for Martha's Moving quarter team on the Vineyard. million underwriting safe performing to and the irreplaceable source on ahead Islamorada quarter locations, $XX.X total acquisitions to to two contributed harbor; in Marinas The include on are first

business our across businesses. accelerated anticipating increasing growth of across underlying our lines trends We the are we and with about optimistic observing are are RV country rate we in vaccination the all Marina the

sharing well-positioned financial outperformance to and in We this Karen quarters. follow-through our will you quarter's look see in Karen? discuss results to are more detail. forward our progress now with of coming the

John. Thanks,

FFO of end our of top the prior first quarter and year X.X% the guidance For share ahead above reported the $X.XX, quarter Sun of first per core range. $X.XX

we manufactured home and two net raise million on we receiving six our our shares million X representing million During $X.X to end, our shares was down activities which To completed support X growth acquired operating RV approximately Marinas. of subsequent proceeds, resorts properties used To communities, of to have we borrowings of facility. quarter stock. million and equity $XXX date pay credit $XXX comprised settled in a billion four common

to at rate a X.X% million later quarter March settle We no average years. X.X first expect shares weighted of with X $X.X weighted the average than a the outstanding We ended and billion maturity remaining of XXXX. debt

other from ratio As and recurring million the basis a debt safe estimated On ratio $XXX is including EBITDA cash our the EBITDA to low-five recurring and full months XX times. of March contribution forma had the net XX-month on X.X of trailing harbor a we XXst, times. net of that pro in year unrestricted trailing acquisitions, EBITDA hand

result per of for expectations range FFO year $X.XX our a of XXXX full a we $X.XX As share. raising our quarter, the during are core to out-performance to

in We $X.XX of quarter FFO to to per the second share. expect core for $X.XX be the range

We growth to community range guidance year revising a X.X% are full of same also to NOI X.X%.

guidance reminder, prospective analyst markets call, does date acquisitions include activities, included this research the of includes the estimate. or not As acquisitions of which impact through our be capital in a but may

aspects performance how more into re-envision financial disclosures details us provide have same our each this The insight the and earlier, report business gave our Marina our key of Gary portfolio To our now which business. separately. of the enhanced a opportunity As of RV addition lines we by MH we mentioned portfolio to community quarter. we schedule,

operating these for program home costs for now vacation include Same community our property so rental entire revenues, these Additionally, home and payment revenues included home includes revenue real now now the rental property rental community the revenue. in rentals is programs. same expense related

are are We since Sun's against customers. passed are all also these through provides costs income utility view which the netting a of utility to expense, costs utility majority on direct better what our

portfolio. disclosures and page have reporting our the website investor added This illustration of for on of of our Marina relations a new our in document, contained changes XXXX changes. program the prepared these a is We summary an see and for information which the retained section remarks. legacy Please rental completes have additional

Operator? We will for call now open questions. up the

[Operator of line Thank Please first Instructions] Nick you. Our comes Joseph proceed with question. Citigroup. the with question from your

Gary, and best where you. pipeline the opportunities? look, does current acquisition Thank seeing you how the are

Nick. morning, Good

As that shared recently pipeline never full housing, marinas we've RV manufactured current as now. it as across has right been is and

with to moving I think as like even little uncertainty expected in administration, of bit where obviously discussion some to that match going. that and capital a capital be capital we by the and things the in pipeline the change fund that's match we're we aspects more than seeing we relatively funded near-term with gains current of of that about the outreach the forward utilize throughout three to business. believe But our right amount based out on all able that go do –

Thanks. or about I pipeline, in then equity funding end, plan know settle the settle you assume go acquisition as that line the do guidance you to or acquisitions you your the doesn't equity the funding, use and do think but any toward of terms volume? you as

Yes.

I case-by-case and line foreseeable on the think I a future, quick think to rely close. basis. our the on for for ability But that's certainty, access we

is listings, that due the if and of utilizing why that underwriting off so basis in process get fund facility finally first there. to Sun don't market fact had for our from the lead purchase pocket and the things the our is the is of part work that will, known many then deferred credit through to rapid then close be through the One to would of to and to agreements an through would tax believe you such acquisitive we a me structuring and the go on period forward reason we diligence

Thank you.

next line question comes with of Please your Keegan from proceed Our the with Carl question. Berenberg.

the for questions. Hey, guys. taking Thanks

first, inflation a think point. obviously I is big talking

seeing for projects? way So expansion the impacting that case, plans on new your guys any And that's are in you inflation the and year? is any if development

but Maybe – had this is year. our has on it John. bit, for Maybe a plans no little the no, impact

specialization required? Anything given on labor, in especially the just marina business, the

management going process we and we budgeting that a think that look Safe one minimum properly did team Harbor of that at over the I did allocate is take the pricing labor. things for at into with the wage pressure on

we over Safe lumber, the we're that pricing everything were for the steel, XX pretty all that exceed have comfortable strong pleased There So into to for products feel is on homebuilding, doubt which drivers. under material quarter past budget, growth months pressure very in no on this been XX Harbor they to now. built other able side

an build than our now incremental delivered housing and small seeing what perhaps might smaller for many there. bit they against nature site we're obtainable are a increases even site the in continue manufactured being the the give at little more But out So, Communities price us housing experiencing is homes edge make communities. customers and I think of build Sun in on housing right affordable and increases manufactured to to

So, for could a us. it be trend positive

cap further Got are two cap just quick your And one. guys the space? you What seeing transactions? in rates rate one from more marina any it. the were And compression

competition time quality in cap the of Harbor even or a Safe for being things existing space competitor estate, governed of past all There this quarter. portfolio. industry, bolt-on is this transaction the doubt, private demand, ability in to rates, announced there very the equity no it's by is continued marinas public who our and to a sometimes unconsolidated small the from coming real location, But typical

XXX the to So share that. quarter, range, and the the right it's and around ranged of a that cap average RV above housing basis points and since I manufactured have would marinas acquired points the rate basis X.X% yes, communities the XXX probably beginning

look very cap value that very, rate a to And in when So particular there's the below to replacement exceptions then, is difficult for might always the marinas on X% down a come of set we X% marina there that. continue course range.

for it me. That's Alright. Thanks, guys.

Thank you.

Brad comes your of the from with line RBC next Our with question. Please Capital proceed Heffern question Markets.

everyone. question. advanced high balance morning you the the you've good I sheet about had category the taking appreciate for I the and level the and for Thanks second advanced deposits Hey, on dramatically. that the was that reservations up the in noticing really reservation that quarter. commentary of rent is seen quarter third

reflective more year, strength? trying they the just that higher? million last delta I'm large that So underlying would reserving driving of at the that's of Is of end now. advance normally $XXX that it Are whether $XXX of that a was than you're and feel million be its represents the sort to in get number people strength seeing?

of that from the I and about there it's there it, bit impact to a deposits Harbor. Safe there of $XX think, But Harbor million the is their reservations so $XX of is billings, advanced RV of sure seasonality what think about our from rest the There million, more there and their in around is and impact when seasonality do Safe portfolio. advanced they Harbor just advanced portfolio seasonality and Safe in it's our reservations I'm we're from is some seeing. on I and

about that. Thanks Okay, then the just for guide. got talking And it.

in it like has, for upside? portfolio is full-year if more you or strength in you're to being original or guide's quarter like up how beat guide guide $X.XX. into You quarter quarter that by of first all the curious first really much and first just the read the did and it perform that the saw the the expecting see continues quarter second about the I'm the $X.XX you if

that in raise, RV about transient the the that in midpoint, – would FFO date, progresses. those outperformance additional reflects equity that characterize all those we QX, into it guess I we offset I raised have and the are acquisitions think which will outperformance deploy business if – $X.XX year I increases which to and settled by plus the the offset is expected at the as

Okay, you. thank

question Robert of Please Golladay with the W. question. Wes Baird. comes your next with from Our proceed line

just the strength good Hey, seeing at everyone. now? to morning, look you incremental want conversions RV Are business. on annual I right

talked think had, with I I before, X,XXX XXX great see a I a about that all about that that's strength back is mean, the year, I in We've quarter us – shared of of call into communities, the goes and new as we've little which is the well. over seasonality XXX with aiding we we really the usually first [indiscernible] they going outdoors. There the we're range that Yes, many of for conversions of that and in taken is – number guests the a exact of year in the – had number so of was plus lot the it, our way characterize everything the our of that so a discover well. bit we've year little I to as rest but I bit see kind elevated. It I'd last conversion the communities to it rediscovery as into think

in pickup year this a make, that's is we time that – a do to So time each a that. XX% we revenue every that get XX% have reminder, and we we conversion

thus had So very about results positive far. and the very excited we've

everybody? maybe or then is you last what that me, website I just And from that you guess, it believe maybe can give was context mentioned can Communities open of Campspot? is discuss year? XX% I Sun application. of that And that You Got and or come to bookings;

Great question.

the Northgate – Campspot remarks, management and on thing system. as and the originally that's year efficient and really a literally it's algorithm the each way. and coupled developed built-in Northgate I my equation, And is the in system rate the is rate and that reservation interesting at multi-faceted occupancy in proprietary the represents said jointly portfolio in partners of and I revenue day optimizes equation each about it's a its it Campspot most So occupancy by it's, our core was Sun with every resort most think of the the a our

been through think, reservation driving today. really well our us said big we a about to, you that's back XXXX, and XX% if brought it the online what's been behind aiding contributor. some two as XXXX it in XX% ago, force of is book; it's And years go happening I was [ph] So as versus back

OTA, So our but on there are certainly, now, awesome. entire it's portfolio other users of it Campspot is just the – through

now. being across That's right marketed country the

excited how for it we're So to performs pretty everybody. see

Yes.

And maybe selling that it And and a this year on San include Yes. Is Diego. be? development NOI just one benefit stabilized then, deliver positive? going yield, or stabilization in homes? to you Got will do when the that does the negative when set of

Yes.

development And San time. RV So the an would RV can RV It's we that RV and three-year already period within benefits and Sun the the is Outdoors stabilization see Bay, resort on of resort. a sites an guests is are. we got typically we accept of rentals. And Diego one vacation development, of ground-up

heading positive Monday for will I'm the with close grand to the fact, years for night worked in on opening we've NOI [indiscernible] four it In on XXXX. that generate and official there out on

Got Thank you. it.

the of Street Please from proceed Advisors. Green line Our comes John Pawlowski with your question next question. with

X%, think guess on wanted regions – housing side. you'd there push where Thanks. the rents of X% X% follow-up certain had? you any typical any John, the the are the coming you the think? increase in pivot policy there maybe where markets, X%, you've markets second more rent inflation on in X% or to other years kind Is but you'd to are alternatives there the demand – as price I conversation, skyrocketed of

many in XX-plus from certain say business across housing We rent But the Todd, We range attainable, it's higher affordable you are a and in know, we that of increases long-term always real that value level, to keep growth that portfolio right overall. take on the so X% as to there do. because our to years portfolio to a is equity our stated broker where seeing the sort rent well of within real having average of always, the that view X% to across very as kind our everything sales – with communities, are customers, we're can come achieved. at the we the the not in portfolio. value for that benefits increase okay, we've as markets Well, be in try which on inclusive

So some strength typically look your above to question, to certainly we the be and that answer might then areas range in places, happen. would that more country that where have would

And one Gary. thanks. Great, for then me, last Okay.

Just considerably than RV in years times RV more of in the on not a terms longer not of traditional pencils is an or hitting an recent and more of more that MH for side, acquisition you? no market indication is indication mix tilted active traditional toward the MH volume acquisition where the just as

asset it's RV way Yes, is a latter. chronology understood. I prized the that think really were former, housing definitely The before manufactured the resorts sequence not became in consolidation

case, of of business I'd housing then like really for I to companies. deep So, you there. portfolio a determine there public RV team kind a available housing. sequence, manufactured – just dive give in we And and Sun that the credit how Sun, three, actually the NOI at so, in that similar the very that our what And to stronger was we going increase last some and RV communities manufactured there the rates because now a cap into are to there in it's strategically housing were a were And in understanding grew of as looked UMI. we are steady Sun's may Holdings taking the in now just ELS doing scarcity manufactured factor four and, saw think recall, five growth following out revenues, than years, RV and it over to then and XX determining and the

recapitalization ELS. acquired then Sunteck, and So there are aware, further in marinas, another and to you follow at And begun that you as of restructuring pursued even was the portfolio that followed aggressively as small holder second asset – as into largest class has acquisitions portfolio RVs, many and consolidate. marina by we

there And garner that MH marinas are for I are I as cap investors. rates, while indicated them in anticipate So RV, to to points to see absolutely able Sun basis and beginning on a we'll by acquire and and earlier opportunity buy MH, now above pressure right but them some RV. and other is XXX spread we interest

we here is on but the there call won't marketed, to someone what personal it's and for the isn't department relationship from what acquired, levels out. phone acquiring that occasionally being housing acquisitions most a manufactured So, into pursue broadly that the we're seeing our they're reaching just or part, we're team

Okay. Thank the for you time.

Our next the with proceed question your with Please BMO Capital Kim Markets. comes from line John of question.

potentially is feel in for going flying this Thank and I was increase you're the people when you next more you, demand receive and wondering and much temporary phenomenon the thanks increases? disclosure. think on will RV a year increased seeing year, how comfortable of do that

John. never COVID a and question, been really, but have good marina been the growth has Definitely, Yes, RV that, prospects for of both part stronger.

– said the year the a okay, I seen happened was guests notable in I mean in particularly couple fall. the as that we've we fall, saw growth of really rebook, think that that's well. parts rediscovery many I just those is is the thing into of which time, of other like we many, And the what never okay, saw as times during

a radius. The the guests are our within that with other two thing to of majority the resorts coming our that XX-mile visitors that provides vast come and our some is strength

they that other the in on radius with the experience some back will we had XXXX So will the of have for to be guests vacation. and naturally, because travel it But moving of forms most retain the point new many of take, communities can back of an if the add our to our do something we guests that they weekend, easy affordable do of on and on. even vacation other come can forms that's to can travel, it's or they they to we go it

So it back. go if add-on it they of sort can of an it's be sort – even

incremental the would that add remarks to impact. what is we're Yeah, think for residual John, I I John's looking

we a demand So, positive. I share we experience increased portion result of that retain a out with that won't retain can the residual you of has been but the as everybody, will there

would for in So think on we it what resort incremental expect business. I naturally growth bodes well the RV

between And this? Is just what that which it and has this past really shipment, a high for indicator month? RV the best been were I hasn't but leading your on significantly is I'm your thoughts do you increased think occupancy, correlation historically, think what wondering it demand? shipments

asked you for Well, it. Okay.

So here is. it

with resorts always the you features amenities have the the best electric family vacations are COVID indicator continue to as several a is of to echoed we're the analyst out shared hookups and experiences amount pool us. the we pretty our related RV There to to RV resorts. this will to call a the my XX RVs on finding registered RVs leading million have so surveys, today. water those be And like are utility taking those some to point people COVID business. I why great about RV be and think do the indicator even what consumer we exit and being model their able it continue existing property And indication the there, enjoyment post that able have don't new as But And time Airbnb that think sewer see anecdotal increase available for this individual an our to and of that there just referenced estimated on that's to are very where I options guest who opposed to much we myself inspections of limited residual in boondocking around then John ramp RV by resorts. or this had. just hookups, and be as increase to out to generally

that very think just we So it's time the its be to in very, growth. RV a exciting business of part

I would I'll the ask a love question for that on separate Maybe see to superyacht same demand. discussion.

electronic quite the I've in and get powered. to to but hasn't was tell glimpse – to from like in battery boating of development boat, fuel superyachts, electric would the fascinating electric on however, expanded happened regard future what I I offerings it's yet. and actually business it moving been a you, be might now some on boats fossil with to and research the

acquisition activity remind with us quality topic, institutional currently what parks few of past Separate percentage years, the image all just you and you've had communities you in on? the can RV

manufactured and again, have private quality been of communities not other the with the majority or or what as three a referenced related that the and them. to are communities best-in-class today vast four the we manufactured items high-quality I institutional there is unfortunately, repository public Gary and it's out housing housing companies that Yeah, the suggest national referencing indexes would there companies consolidated information by portfolios. you're of

XX% not XX% would represents to probably overall percentage, able be XX% necessarily and from closer to I've I to would quality. manufactured So, we competitors anywhere of institutional from our give of what probably that and a resorts but you heard RV consider housing

a real Okay, that's year-over-year your business, then home single-family had have rental rental or market? any down of potentially increasing given question growth, basis. this proportion on it's property updated on And business, which rental the strong the revenue helpful. my views of its your views you on strength Do but coming final is

our of growth. mean accelerate an I to the occupancy rental excellent absolutely. program, It's home as revenue test has tool stood Yeah, know, you time.

the continue that acquisitions will into converting That So, for and use acquisitions align use way share though, lease-up, development the new be move strategy and and with and we development along it the for of that to as expansions, we John, going forward okay we to it homeowners. kind have faster. forward to renters ultimately, would do the

Great. it. you. Got Thank

question of the question. with proceed next Bank your Dennerlein from comes Joshua America. of Our with line Please

you're John Hope Gary, doing and Hey, well. Karen.

Safe the your What's Just than something how like it John's about underwriting. remarks something driving in wanted curious? that? comments portfolios touch Harbor else, Is better base to revenue just on side doing opening expense the on side, or

southern We're what bit in in little what with but and most pretty seeing portion we've much is the That's reviewed Coast portfolio. of as notably, last of a the look demand we Again, great probably in East is as are where what budget we're drivers were the growth I rate expectations place a marina would line the strong we're performance year. summer limited key that seeing and in ahead really and seeing what's first taking Josh. regions portfolio. budget, growth occupancy, quarter we increase seen on revenue question, in demand, are suggest supply And against Florida

growth our guidance is So business. good baked of into our solid continued marina or part guidance the expecting in

thing, it's demand. one So, just no

we're the talked we the those think out RV seeing I the and being challenges escaping like water, very about it the into enjoying are air, things on monotony a lot, the of types of in similar. COVID very, boats, getting the fresh on environment,

to I you. get wait there. out can't hear back I

your know We like you your Question do boat. you marina? like is,

at year, I That tried and in. That's questions. for could, getting for check I a they summer. this but I'll me for next Safe years, let Prime, go it into was Vineyard. few on Harbors I won't maybe the me out. was I just

Thanks, Josh.

Thanks, Josh.

Fargo. the of your question. Our comes proceed line Wells with next Please question from Stender with Todd

Hi, thanks.

average, on new on point what's $XXX,XXX. like see What's and looking at they're homes Just footage price that? highest on the home that sales, exceeding something square new you the

Yes.

environment, be price what to highest in [indiscernible]. is in in our down above Run I push again, on manufactured you're our well is $XXX,XXX point talking our Colorado the And the thing in Colorado, about as doing to River But affordable a new as basis home, location we're important think on sits very when that's going going So that note the the development, relative where... which in to $XXX,XXX.

I to these financing maybe kind points cash Those guess, increasing but edge comments we're of – regarding used them? financing price buyers as seeing any the are higher? most points buyers, of price just

coming they generally local XX% Yeah, cash cash, points, a it's or are Usually, that's bank. for in go price buyer those. at to those a Todd,

Got it.

to of the that X or a right X shares to for million debt million once? Okay. a for the switching and is at Karen, purposes feature kind just at call next balance looking all to fair shares at clip four sheet the times, Maybe for EBITDA modeling X is with quarters, for it around just forward equity, assume

for No, call that all match volume doing. I feature and as line shortly suggested we're doesn't with then on the the And for think thereafter X draw million the acquisition Gary acquisitions, fund shares we we'll once. initially will at

a so EBITDA, to assuming And have forward debt a you the forma then pro basis, do equity? on

Without low the at to forward times. equity, going we be are X

we will be I think with equity, below. the forward

for And looking you could on share? modeling, Okay. debt at you just are debt right what now kind or side, then the of in coupon duration any

really We from no debt maturities have basis. a

very, been active have very refinancing debt. on We

with So, and would XX-year for I to year debt market typical is this X.X% we do what take a next Also than – year. sense size look side there's a past. at the the for money makes the needs, Company's – X.X% at done and we this GSEs say, XX% increased borrowing. time, companies. unsecured in little that unsecured capital we've look really in from do the at refinance the evaluate nothing more for on and to life At

currently So evaluating we are unsecured market. the

it. to development. the John, one, Are more Got completed? in Last were San sites that the coming just for Diego probably RV there addition XXX

Potentially.

at are Todd. that we sites to that, XX looking We another can add

you. thank Great,

you. Thank

proceed line Khanal comes of question with Evercore. Please the with question. Samir next from Our your

Yeah. Good morning, everyone.

it's due marinas? few the back, going margin John I been it trend just business, When at last a in Harbor, did I margin the NOI to the possibly seasonality When know with the I guess, Karen. And what's what's to here, look about? the think maybe just Safe NOI for quarter. right bit again, or So light I math years mean, here, but looked marina for the you

accurate I on is think So, – see typically all-in the seasonality your you'd margins comment the high-XX%s, business, Sameer, marina still I mean, QX QX and low-XX%. regarding in

last just missed apologize, you Okay, And did remind $XXX that update marina I if quarter? but NOI, million I to million the it. guidance guess, I me this, got and for $XXX provided you

guidance. update marina not the did we No,

trending which higher sort million of if marina million, And $XX of your tracking that the is suggests kind side, kind $XXX $XXX ahead the million in assume on you're that point? kind was this of fair of of it the commentary to to high of in you're sort trending you're that at

been would in into we're outperformance line and I it our likely expectations, the has our high-end say – FFO been in included with has guidance. that

quarter see for final question my And how expense maybe of this various maybe on line did are for how mean, the trending line those on a breakdown it. expenses about thinking items? you not operating for the items. the the Got I remainder and you year side. is I are

of the COVID a right. impact, tough one that's Well, because

use So – the very are sort comparatives I'll for of term, year the a prior wonky. technical

I increase. that to the comparative costs for an utilities what those increases expense quarters. some that But saw of advertising also I expect lower-than-expected future higher basis. So and on advertising quarter, expenses mean, we and into for you was for will shift see

Okay, got it. All right. Thanks much. so

of Green proceed a Advisors. Street line John Please your the question We follow-up question. have with from with Pawlowski

the for taking full-year break follow-up. expense? Hi, guidance could between the Maybe, thanks growth in revenue just NOI Karen, you out and

– previously, presented John. don't I haven't that Yeah, we have we not –

So I'm going to decline to respond.

right. care. Take All

further back remarks. for the no questions closing hand I'd are the to There call like management to in queue.

look Well, participating us and you, after follow-up all forward any for for available call we second is quarter and all the with Thank you complete. we on thank of to everybody are getting operator. together

this teleconference. you does participation. conclude Ladies for you. today's gentlemen, Thank and Thank your

lines this disconnect your a wonderful at have time may and You day.