Sun Communities (SUI) 27 Jul 212021 Q2 Earnings call transcript

Greetings. Thank you for joining us today for Sun Communities Second Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to your host, Gary Shiffman, Chairman and Chief Executive Officer. Thank you.

begin. may You

thank our and joining as us Good quarter you XXXX discuss second results. we morning, for

our enhancing the metrics with well-received Transient the for issuance enhanced rating a quarter, and We expectations. are exceeding meaningful and activities. as delivered for believe accelerated to ratings. pleased our outperformance, notes credit as with performance step, following $X.XX sustained portfolio oversubscribed our second of share offering to raise of midpoint the to right housing was an flexibility activity, continued continued the manufactured outstanding With driven us to acquisition S&P $X.XX $X.XX internal opportunity. once pipeline robust our to at compared in from end Comparing mid-June. to the the was XX% per In second Sun's quarter the we'll core financial healthy per look this opportunities, bond Moody's. external our our non-COVID quarters, time quarter of provides our the senior second FFO Sun's access begin is beyond of efficiently in $X.XX time in Marinas, guidance of by being we us consolidation as second continue per a and Complementing industry market our our $XXX and for greater a business of impact core performance momentum of along the to our outlook fourth to quarter, change was match to high growth million our realize we led XXXX, than by to we this ongoing XX% quarter XXXX. improved $X.XX over FFO RV, The Marina forecasted share most positive inaugural the segments. XXXX growth and of This fund investment bond strength the issued all unsecured our FFO in third outperformance investment-grade operational again, and share. range with guidance particularly We

housing RV manufactured For XX.X% strategic and than demand. in to over subsequent improvement filled Year-to-date, manufactured second by community the segments the growth that sites community grew with of demand and reflecting continue XXX positioning the continued each annual XX.X%. a XXXX community with providing favorable and RV of quarter point quarters. have We same NOI occupancy expansion our the runway capture have for housing basis X.X% the quarter, we and delivered last and revenue-producing will over our sites by same X,XXX entered than same NOI year, quarter NOI of over XX.X%, that growing ground-up more growing community same more XXX

site are New sustained one a levers growth we profile Sun's to of to value that deliveries key contribute anticipate and creation. continuing

development quarter we time. of over available X,XXX anticipate delivering sites approximately As that for had we end,

deploying call, second properties. brings remained earnings wet X,XXX adding properties to over more acquisition than $XXX dry growing over million through XX active year-to-date portfolio, We volume across $XXX have of This and also spaces. adding in in and the quarter and storage million XX capital our slips this sites

Our acquisition teams sourcing underwriting through remain channeling process. extremely our deals and active, them

each of about Sun's enthusiastic businesses. we very are are the We opportunities across seeing

of disposition which we the completed very core access and believe across no of at gives portfolio. that to positive assets and quality cap excellent resorts longer structuring off-market fit core our and assets a strategy. indicator our X.X% value a transaction of RV us housing our we to manufactured the flexibility We marinas. housing sold quarter-end, partner these manufactured is rate, X a Our as reputation Subsequent transactions communities,

for demand the from benefiting is business outdoor experiences. resort RV Our

have As as choice. once a been pandemic, discussing option vacation quickly travel lift, of throughout emerged restrictions began to we travel RV the

has it broader that of amenities Importantly, customers. been offer and are has picked who forms for that people up, travel as demand travel quality become travel back. is Sun even becoming vacationing benefits have have clear available Resorts the repeat and as even other bounce of no of There leisure experienced RV waning RV the and

segment marina continue transient and will with we are track discuss, John for are and about and ahead to bookings conversions. outlook. solid of of for our results we the our active In summary, we our several our boating reasons, season. strong annual pleased As are this an forward business, confident results will our including site underwriting, in midst remain In optimistic

continue strong with positioned and our achieve first equity issuance, and opportunities. external to results on we to well Furthermore, realize our the in internal recent growth operational each are raised bond We of quarter prospects. and these execute

dedication. a to recognize Sun hard to and the want moment take team I unwavering Finally, work and for their thank entire

type members we success to matters, outperformance we been the business. to that woven are that commitment continue believe of which reason increasingly of becoming all We element into Our our the our of one team deliver are discussing. ESG is have aspects

that focus, I is there of one enhanced wanted element today. part to As highlight

properly appropriate adjusting with of factors, tenure We responsibilities, living are job at proactively and wages. to service level the ensure structure a pay that is including property aligned our pay number

increase, expense best team. the healthy making turn is the operational to payroll I will committed will performance. Sun which our John? John skilled a continuing this employer, resulting we to and call over a foster now to discuss in facilitate to dedicated, are While us

marinas expectations board, outperforming Thank you, prior across in a Sun delivered Gary. quarter housing. strong second RV, and manufactured the our

the of benefits initiatives our X as the our best-in-class across well stability of Our business results of combination incremental as lines. growth our portfolio the reflect

housing weighted offset XX.X% XX.X% X.X% average a second to year last when same quarter, increased a The strong second increase XX.X% NOI impact furloughs was the the had both a combined a growth expense of gain, XXXX measures, in the NOI demand For delayed second X.X% same-community as driven growth This increase. basis manufactured results expense community RV XX.X%. supported reflects compared quarter we from from The of in by rent XX NOI our resorts XXX XXXX. was XX.X% Same by housing NOI revenue point increased year. opening as including of RV increase by on community implemented quarter incredibly impacted to last RV COVID-related and manufactured COVID-related properties increased from saving year's transient of and the by occupancy by closures. and by the well this

to of quarter XXXX. at helpful results is think we second orders Given that in of home to stay the place quarter XXXX, the at it these second relative during the were look

and CAGR including XXXX, of community was up XX.X% year's for to a increase all XXXX, and to are by expenses NOI last and in revenues. X.X%, transient was we the Compared XXX RV comparisons X.X% For communities. utilizing CAGR portfolio's NOI same our pool X.X%, were revenues respectively. XX.X%, of The CAGR the RV

at most holiday Looking weekends further escalated. the recent has illustrates demand how

RV occupancy by XX% For increase Memorial the improved up for a weekend, revenue rate. XX% weekend, Similarly, Xth XXXX, revenue compared XXXX average July to in daily XXXX. XX.X% Day increase and in XX% to a driven of compared and to was XX.X% compared

have our quality that outdoor of deemed We be recently are of pleased few guests. confident a interest initial vacationers at persist RV the forms Sun other metrics the again, many of which Resorts to seeing are taken the loyalty Traffic XXXX. this these discovered would our Resort. shift Sun first even the a and Moreover, of we growth, half to as like and illustrate or to incredibly experience website Therefore, many with of have consumers in XXX% have vacations joy travel RV safe was reopened we second we compared XXXX guests XXXX. RV younger and through increasing up aged to highlight of Sun half to significant I XX strong first are in are increase almost XXXX, so demand Within engagement new a a the RV are XX% vacation. of XX. the from to in that travel audience and half seeing the

showcase From the guests. in on are following TikTok in during of to to Facebook. a vacation offer efforts activities industry ideal provide big engagement largest channels an repeat and to element and and guests our the on XX% platforms, the compared year social community first-time with way is to and we and what perspective, of to continue element these the over of the same are drive Our XXXX. X nurture Sun the half social to we media million the community X.X the Instagram, media largest followers A increased resorts attracting first community

or We earn them points are a on program future for can new loyalty where also for stays redeem and resorts vacations. discounts RV free nights piloting benefits, guests

a guests vacation the geographic and will the the as we RV Sun size this their Resort encourage we of portfolio choose program further believe Sun With variety offer, to destination.

industry half RV is XX% new to XXXX the of supporting sale our new of be year, As a are transient of budget. ahead trends. the record. of we sales a number look and RVs. strong to a the Association, the Industry to is According unit One of RV forecast reached are trending continuation original positive dynamics XXXX in our There higher XXXX demand projected these XX.X% than back

an the a of which portfolio, revenue-producing housing RV being second with a activate outdoor consumers their help few fuel new without buying an RV RV. will communities. our gained platforms are to converted otherwise there Outdoorsy, With to capital Resorts. leases, providing balance owners demand outlay additional annual were RVShare for the and RVs, respect venture-backed we for to gains allow RV including believe over platforms, rent manufactured quarter, & in Additionally, our we seeking RVs, added the sites. MH XXX promising vacation personal the XXX which option idle transient Of expansion revenue-producing sites site total to These

first average realize increase convert increase to RV to revenues site the and the achieve we're conversion. sites able With opportunity the leases an in annual year XX% in of during to guests, transient

of year. the stands they homes where is contribute Manufactured expansion for stabilize. in completed sales fill than volume quarter we outdoors. as in last XXXX second to compared Fimfo will more and saw of X,XXX Texas was a development sold year-over-year the on points, the and homes we our another and same sales for overall XXXX, The In were support growth period sites, material this costs sites Fimfo increases beyond XX.X%, Compared XX% funs approximately Total in favorable an up during newly in percentage at up home to pent-up Moving second during our of construction. you of delivery respectively, RV which nature sales mix our sales developments new new This of ground-up to the increasingly within live demand product strong prior Those volume deliveries both in and sites. respectively, first partnerships. housing. year of demand development XX.X% XXX environment were the delivered to home ground-up and one opened and new expanded series we Hill preowned marks limited believe planned geographic quarter, tight Austin JV our include for country. ground-up which the revenue camp home of construction the increase is approximately sustained the is lower the attainable more XXX our and to helped due high-quality attractive growth ground-up underscoring RV XX housing fun as outside area new home These a tremendous resorts the XXX a the wondering, and to Sun family-focused expansion and sites the preowned and versus increase the results a factors, as community. and market, the new demand for represents estate gross compared pandemic, moves quarter. from basis rose We including XX%. desire number well of communities and quarter in points prices margin in an homes for XX.X period. This real Average relative of as product site-built to

second sales by with quarter up average the compared increasing of home home XXX% value XXXX XX%. Additionally, the was to volume brokered

in manufactured our Applications housing. live affordable quarter from business, the and were demand in year-to-date. more second we for sustained are compared XX% terms benefiting fundamentals up than and housing and a Sun In operations, of XXXX our strength to Community in to

safe to portfolio since continues comprising in portfolio the storage marina the safe spaces. acquisition wet slips X rental marina the ended of a for wet XXXX of XXX XX,XXX first dry Overall, of X.X% XX% over performance for the increase operated Better-than-expected of the growth start for the ahead This from X% marina for revenue rental are storage marinas which acquisitions half of demand. properties seeing to and to Turning of demand continues million XXXX. revenue half both quarter. XXXX. dealers National performing the Same the properties spaces, to are for approximately as was expectations in with $XXX Gary quarter attractive source completed the harbor discussed. the owned for CAGR for the come harbor record properties is business. XX slips industry, We XXXX dry and of and and Marine of by levels first the According team includes the almost in second quarter nearly Manufacturers

platform outlook combination has our trends Sun growth. and macro the along acting In in the remainder New capture at demand us financial for results XX% very continue data create summary, long-term favorable by has boat encouraged elevated strategy implementing to and March of XXXX, most attractive that with been XX-year and Karen sales XXXX tailwind, a on environment, to through the expertise to remain realize stakeholders. more and year. XXXX, and detail. drive we Secular and well recent up for Sun years, demand of our performance businesses value has will industry-leading our all growth levels high reported our as discuss to they in the of reached positioned a are now Karen? the for the our very all compared initiatives, across average. are execute with sales year-to-date The

John. Thanks,

share ahead reported the prior above quarter across For top achieved the guidance range. of core second of XX.X% the end $X.XX per $X.XX, all and second quarter, year was Outperformance our business FFO Sun lines. of

and as RV boat Annual business in slip, higher RV the including operating community-related revenue, by as as home housing supply manufactured as operating well revenues, repair well costs. partially storage and transient costs lower-than-expected payroll higher-than-forecasted and higher repair rental results fees was revenue and strong and service by the and expenses utilities wages business offset vacation benefits, experienced revenue Our marina And by higher drove bolstered including rental revenues utility charges other well expenses. and as segment, and offset as costs.

activities, been quarter-end, operating million, our markets enhancing flexibility RV and year-to-date properties acquired slips $XXX bringing million over to the we During quarter X,XXX subsequent housing XX and sites, $XXX properties, total totaling adding of wet manufactured we spaces. sheet to active over and over our operations To growth our and support the balance storage and and dry growth to provide pursue capacity capital which in ongoing have activity, our in pipeline. marina

ratings both mentioned, have we followed investment-grade Gary outlooks with Moody's. and inaugural in stable As are news mid-June. million to successful offering $XXX from bond S&P received a pleased We with this

credit. with settled line majority agreement the fund of sales Additionally, shares and during to on used we in drew of our second million pay X we quarter, remainder entered had our which down the forward was equity March. We the the of million, acquisitions net into $XXX proceeds of

line with of option. years. million combined revolving harbor's second with billion XX.X the with safe agreement. a a billion weighted prior a We debt X.X% line line and of of billion prior $X.X recast $X $XXX credit the rate maturity a revolver Finally, billion average ended our $X.X average weighted outstanding and expansion we $X at We replaced quarter

ratio EBITDA As XX-month on million debt of net cash $XXX of had unrestricted of hand recurring a and to June trailing XX, we X.Xx.

and year, our This particularly our increases across wage in of approximately been of range level second midpoint XXXX acquisitions of guidance. half businesses, Approximately with our recent share, the approximately our growth increased RV. the our increase discussed, $X.XX which We Gary in due $X.XX offset guidance represents range, of are transient is expectations from previously at full outperformance for remainder each the $X.XX remainder at raising prior the due issued per the is which $X to included million by contributions property which increase of core a to midpoint. XX% year of prior had FFO to from proactive quarter $X.XX a to year-over-year the the of

forward per Additionally, of we offering the remainder share the of estimate second quarter. from completed settlement the impact an year $X.XX of equity the the for in

in third to $X.XX XXXX of expect growth in to growth FFO be at top core year-over-year of representing the we for XX% over range XX% the We the quarter share the midpoint $X per delivered XXXX. on

the community revising growth NOI of also is basis inclusive X.X% This growth same of are the XXX property aforementioned full of of previous up increased guidance year X%. NOI We a to revised range level to range payroll expenses. points XX.X%, from midpoint guidance

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

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

[Operator Instructions].

from question Our first of the comes Joseph Citigroup. with line Nick

mentioned Gary, acquisition the you pipeline. robust

seeing if you're any assets differences or wondering value different for relative I'm in business So competition the between lines?

of similar and dip know the generally in been similar to on for X% Nick, pretty shared see there, and the There midsize platforms number it MH part that in our to what cases. and rate a their we're to the sub-X% earnings bit we've your to announced falling little to a we're a wasn't cap rates, side. growing some side, expressed to is past. looking certainly it sale X% seemed all Cap we're the the where question, of them range, release starting although even out and dispositions as The of us in stays RV formed MH, marina went are past. to the RV seeing they've small that I pretty as We there of the out encouvering in what that competition portfolios. the competition newly we've in in their grow group platform. X properties Lots

today. available there looking out fewer and capital acquire fewer of lot a assets to So

That's helpful. mentioned And to noncore? you should transaction you many we sell what are How more the And expect into properties dispositions. market?

share think anything where fit of add to that don't portfolio. assets find and the John these look that at free at we assets pattern our the look we, disposition. feel I very growth of close from generally would sentiments potential and the that do a the We'll time-to-time, rest

You'd to do. the think, that 'XX last the XXXX all back, or have way we dispositions go to I to

take of and little assembling selling we XX have so just last or think or reasons industry, MH when those that I calling best-in-class will meet years trajectories platform RV bit so is every over in growth the often other in don't they're the assets. a place for

any aren't that right there sold Are be in more now properties the near term? could those meeting that criteria

There's a our handful near the that in non-transact disposition of fiber were future. that on remain under properties identified may

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

with the annual of transient RV to some strength wondering sense hold certain back the sites make seeing you're at in it does the locations? Just RV,

in shared Wes, this reiterating that some traffic, of of remarks, I metrics first-time in is community Yes, I we prepared we're increase versus the mean, the guests seeing into XXXX. come XX% web John. traffic the that terms our mean, the in

each With throughout more to million continual a mentioned basis bit annual feel lot we'll or than converted -- it so about over, talked And before do. actually you continue realm do always is right makes But conversions whether side we've XX a engaged that we from basis a elevated I and don't think we you are that revenue And been of have portfolio as normal still have could in throughout number a site-by-site I look RVs could having XXX we XX activity little a contributing like incredible. that. against a it balance the site. versus know million transient and year-to-date, on annual sites. million, to on derive is be there do America. earlier, But see, things about one becomes X,XXX that at because property pretty is. remains of on XX significant would the when that said, it higher the the we platforms site of grow lot basis the tracking an It kind year really we we X,XXX We of like between which the RVs basis. on it that's of per what I side the that as that is what had a vital business well be and as X one RVShare, have think, of can sort is a drivers Outdoorsy million out registered

which So in we balance execution. vigilantly a watching it be on do for always basis, really kind of is a as we nutshell, a property-by-property will

the here. any redevelop And Have Got when clip fast another you the acquired at it. you already? obviously you've then of look marinas, we sites started that pretty acquired to

longer There slips, length. we Absolutely. is Gary. sold for in bigger as demand a discussed it's as to higher both a slips -- Yes, being longer tend be

So those brand-new can longer smaller future, the from the a open the Lauderdale is to is marina continually we strategically we Marina place. higher where convert acquired. directly slips Not-too-distant will across taking that demand, in river that into slips was just look development, which

to we'll So be marina that facility. expand able

Harbor Safe very, studying platform assets that process MH ongoing and RV capital an we and redeveloping out of it's can. similar value and where very Sun's to existing creating management has of reinvesting So the done

it. I Got question. one modeling quick just And have

XQ comparable a to it. metric, XQ? Should results we There's largely to You new of seasonality expect have be that the to lot SRDE.

marina. The mentioned, QX on transient driven Yes. results, RV highly as are we've and

side, So dining, driving that's it's it's in and RV really other it. retail And entertainment on marina the and side, charges. the service fees

QX. continued expect in would those areas outperformance I from So

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

rates at? seeing? given aggressive is given I think that you're all revenues are the actually marina of going to to be business the you you transactions marina the attractive percentage just Or space, in your a just cap recent continue cap there

I Safe it -- XX% we that Sun's transaction Harbor with Harbor the time, announced acquired we that would revenues. represent about rental at the Safe when was shared and of about income Keegan, what think rental

go revenue revenues. RV what in place, our taken you business. shared of The If RV We to RV my to strong to did mid-XXXXs XX% side. rental very stakeholders the even it happens, prepared revenue at to XX% fast marina. goal would successful with similar forward and were remarks rental be we date. about XX%, we been in And with But acquisition the in grew to we've the today, it to XX% about XX% XX% of the pipeline our the rental the initially to represents time, in from our continued as all about that's with MH

moved acquisitions the percentage with date. about we marina So needle X point the all to

it. yacht-focused do Got And a far acquisition traditional we strategy, cap in more marina? the should marinas marina the expect as to then rates as these the how just future? And on compare

membership Safe Yes. in and about in similar the can a up goal, to of way from Safe Similar has a like well members And throughout and it's and down to north the given created Safe Harbor did footprint what strong accomplished to -- doing the the all to at we as traffic very and that that and consistency the we create with focused strong there think begun you system West within create to and up will, Seattle West differentiator, We that's to West what any areas Coast real Sun to very to in a look creating. create are and Harbor I'd we very all a Safe Coast, very We've estate, our Maine the from the location on We similar the a the Florida moved we Safe MH in Safe platform demand to And we picture will MH. is then down is already several San to and we're East will Harbor as membership. expectation area. the Harbor RV travel efforts of acquisitions strong on Harbor coast And if all again, the move quality big and Harbor. RV. at the has way pattern as true Diego. Coast. the share Coast, the

the goal if to Safe is provide they so. Harbor marina to the stay can a anywhere want never actually them but footprint for we So do will

ratings you of guys internal And one it. ahead ratings went Got one with received. the your it you on maybe the through the just them? final Can investment-grade working you process was receive And go through to expectations that agencies?

you I'm Was sorry, could internal ahead question our it of the again? ask ...

through worked we it. Yes,

first determined it something things part our was, and our expected. faster quarter When review Directors if senior I think we anything, as we decision, Board Sun, made it's the all We balance we of the management, than have including review with the sheet, the reviewing would and of sheet. the investment-graded I was assisted work that into very Sun's we investment-grade that and right to rated seemed in prior think investment-grade saw. approval that the timing fact -- and XXXX history all that's it its rating balance gone a fast and

to demonstrate improve work Our agencies that goal continue and to as with a the is process can the rating we forward. move

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

pipeline. you've acquisition on guess active been I is mean, question around very my that I the Gary, front.

capital of do the your to your this numbers than as months, on just about deals more the want I chasing think today? of you sustainable just over of given think next XX growth you get kind to year. into XX at billion we Looking the even next Do amount sort that. year $X that's could view profile

it out big out there In that the that's fact competition that acquisition There been acquisition small general, if that exchange a competition of -- Harbor the are years. platforms team. the fortunate harder. there way is acquisitions more and you and question, absolutely great getting very great I are internally. difficult. more faced helped we've earlier, deep that The company, investors, all RV [indiscernible]. great Samir. well more along and XXXX joined year Each It as It's that more to teams, said MH a has the The has acquisitions has a have team so now externally same capitalized. we're relationships, team, and last have with deep is the We've XX-plus we question for and been history, will, marina harder in our things and the with acquisitive existing our one from succeed is succeeded us the Safe at made

that have and transaction brought Sun So RV take there there first. an space at that a that happens really a out to the MH isn't opportunity or isn't doesn't to in transaction look

Some and them that's come with brokers, us. not we're but in are very auctions that chasing been the to They growth directly our competitive things successful. pattern. we're where don't work we've market, others, off the of They're And very, not for very brokered.

So it's the and answer more becoming difficult. short is, more

last I quarterly calls. pretty will pipeline that successful. is the be think similar to in we have The now view right few over as shared the continue we we've

continue new to to of either to under on various contract currently community indicated can rezoning stabilization. got up we and build entitlement forms development. ramp unlevered and efforts about in closing communities where or look IRRs I've single-digit high will sites We our X,XXX we've

We for should up look that And X the continue new X to think growth we'll if next business make development we acquisition area, the the in will we years. at fall to over to the level. ramp up more than short all community on

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

of revenue the RVs? transient that all the and NAREIT, hope Gary, I Campspot you're well. RV a rollout at your side. Curious the system. How is driving discussed we management strength on of in much John, know contributor RV Karen I of

from I Josh, obviously for -- helps most than is that portfolio, with a putting has more as significant together. algorithm Campspot it's of the mean, time, efficient the itself built-in every every anything that like reservation a occupancy process fact the and equation else puzzle I've week every in before, system and adjust contributor John. It that rate the comes the sort it's described jigsaw kind weekend along of the

piece automatically is also revenue from occupancy grid that's the to got the just it but more rates the that which because just RV the other of if weekdays, some downward we've way, maximizes this everything within on a side so that's standpoint, contributing can we system. go that's adjust the -- community. And actually management in lower occupancy And fill a can

done And a we've Snowbird so associated on season. just historically then our focus able with for had what to shoulder we're months like significant Sun's the do years,

of have we shoulder with every Now sort associated days week.

rate of by the community. well in as down in the so and within given we're terms a moving seeing up as those And contributions come grid in occupancy

it at to called No, projects. And don't but there's know I look that's if -- and see. if was in in being Curious of of or projects column if noticed new or are sub, not, was I great table then most the XX lot it a by I these smaller the Okay. it Page XXXX this that's growth XXXX. growth a most was XXXX, than driven marinas?

to the when Well, we to noticed And used producing. portfolio called and Josh, it brought this. changed you we projects. growth revenue Marina be It

this is you're or is that a So expense these projects of correct. projects revenue-producing either what piece are or are savings. There

including. things project, dry include they're that So solar side, the Harbor improvements From like conservation they of storage the and our boats rental configuration, slip other suite some Safe utility it includes their projects. the water

So million the it and MH, about from it $XX-plus of of is Harbor. RV the is remainder side Safe

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

of think you like question So in trajectory out through will hear RV transient just Campspot demand like to intermediate world on will total and the other up go this I'd away, of stick. just probably some of sources I you've just but rolled to demand post-COVID got dollars? how follow John, there, a net Josh's term

go the will think down the demand up? absolute years? go stickiness over RV of Just Will you're it dollars seeing? me help through this coming So

mean through quarter. in XX% growth metrics in up you I of appreciate RV Yes. I've Great which bunch NOI here, go question, a it. I got can at look had whole the same say, second to John. the we've is I community

you from and and versus the that revenue XXXX. Day up look Memorial July Memorial had XX% If at Xth XX% growth holiday Day, the of we've

occupancy first the our You in versus between XX% up a happened community, has XXXX. web look really traffic growth ADR split and being have how and half the XXX% we healthy XXXX, at that of versus

We that on the they'll seeing sales X.X mean, sure, some will an XXXX. guests revert habits. a XX% be We're for RV take They'll and XX% me, old XXX,XXX at there Association increase vacation to travelers first-time XX -- that to travelers followers TikTok people XX. increase or were have estimates an aged get back the XX today. in trips, airplanes. look it, on XX% Sun. if in to you the to And RVIA, to in aged excuse Facebook. Instagram, RV increase and XX XX Industry in million I

the at And come for I you You so the okay? much incrementally heading enjoyed retain there's fact new a And that asset and will some, I'm in and it busy just yards I outdoor class it's airport. for that RV, are to frankly, that tomorrow. better how of are through the in airport have people prospects and heard many the have is behind seeing are RVs them they consider glad new have how can't Outdoorsy for getting space to us. finally, -- being but a capital clear faster the I'm up. been that And then read never down in RVShare get I'll people's stronger. again. all I'm has have paper activated think entrants picked without down airline driveways really because like the we those because the on sitting travel lot hopefully, So

RVs XX there million feels So than really more every it for like instead million X lot a of sites, that. are,

I think seeing come in. that we're

So I've up of it's this incrementally, we'll said discovery calls Gary has for than a before. for pick too, it because good real. -- but we is And all had here, more and number

Understood. That's certainly powerful a statistics.

grow had bet few million these base you your sustainable sense year-to-date on that that take if sense years? next your revenue. So just RV is Is a to off of a $XXX it, in

Yes, I think we're all [indiscernible].

healthy growing the XX very been have years We at last a rate. for

the it even historically of some want continue be it. demand to So if good said, we've subsides. available incremental grown to going the deliver thing We of returns way the growing to continue if as John to able very shareholders. just I all should and add forward, have we one to And just percentage any

wouldn't like earlier, touched there that When a months want out see big on you'll little the I the it, planning we or west. people, lot out does it -- the and create larger. we're way, John, brand. strategic associated haven't to over on within of to next within program. north branding things but east to program south, roll Sun Harbor goes that building are think keep RV with much Safe of I We're become loyalty XX I the anyone so we have much to set touched not assets let and efforts overlook our to a generating into acquiring that very that coasts, and south more sustainable activity, acquisition acquiring on it a to loyalty Resort both traffic the to me put under north patterns acquiring , overlook, just we're that

here. think looking positive the as I So feel can out continue to as we sustain very to can very, best we growth we

Understood.

Do the Just in last Safe near other drought or me. kind question revenue on quick severe of impacts expect the any folks Harbor for term? weather-related

climate impacts. and company. and great an question. Safe on hard attention we not, there certainly, concerns climate do And The not to thoughts board to the entire change the at all as the out that level. very that said, the is pay transaction okay? focused a reviewing much recall, it to But answer very climate That's Harbor, When it's process it focused being we're may comes on you even We financial are today. and

look did name at The that insurance to to we property casualty thing our impacts. related and increasing storm first was

there due Post by just study scenario, a was million Harbor looking climate next and and to out on an on And control. on could professor, further value acquisition with on that the done was the University, it the we're of Kurt a happens Safe suggest Harbor and land. -- and headed Falling [ph]. It a be the of reengaged the they think marina we present down on subsequent that's So float XX% already. ground what University acquisition, I I water of has fact that results case to Marinas. over the Brown we've so the done name with damage level. had are the updated XX indicated water worse up $XX quarter over and expecting years, assets It's climate impact Safe Harbor Safe or And new then focus, impact Brown his

everybody next get completed quarter So we forward we're that as sharing looking X. that with or the to over

UBS. Our with Goldsmith next question Michael comes from line of the

first quarter. the from second to the Marina NOI doubled quarter

XX% think I the sequential increase. of the at the called for guidance beginning year a

marina outperformance can You've acquired but from? break you, more down like, since came where then, that help

highest I NOI -- QX marina seasonality is would is your increase in generations. QX marina based really to mean, seasonality, QX. right? QX, referring So probably lowest I on think the QX the in NOI marina the in and are

a what looking as as to probably seasonality think mentioned you well I So their growth acquisitions. aspect at that

Okay.

amounts The core just to fourth that could at growth of future increases and about X% on a FFO the that to guidance of $X.XX -- that midpoint there beginning what bit $X.XX. implied the We good quarter Okay. offline. you fourth little more FFO wage But of for discuss X% than in share of think quarter? runway growth? the to FFO Is a a comparison? to year. issuances was more that? And rate kind the with normal then Or guided implied core way to than on the is the what Is lower the

seasonality I analysts. in estimates in point, there's some again, think To first on and ours of QX, your misalignment

of in And offering, think is mentioned, you payroll not equity the corporate branding there costs costs, an platform is higher I'm level higher as experiencing based incentive our that as the outperformance on I with what in your that And and impact mentioned also wages of we've comp RV associated million organization. of sorry, QX. Gary the $X and question? some been there's other was the only there

X% quarter So implied XXXX. growth, implies X% FFO over to growth the fourth it

about sustainable going to like kind is think grow could how So way FFO that of forward? a

Yes.

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

of sort a to the marinas On prior follow-up question. and

Can round as like the we today? expectations. as mentioned underwriting is has the all been and to here has been number exceeding any -- done you acquisitions, NOI you sit rate where exceeding sorry, run the you You've underwriting of performance sort the or that think give

was think is I second our higher quarter, I estimates marina for what that about the million. by outperformance than say $X.X could internal

$X.XX of from should I say, segment. our $X.XX range, $X.XX $X.XX I about about think the year, of $X.XX of guidance raise the into -- includes includes going remainder $X.XX the marinas guidance to to of our range

Yes.

Okay.

newly Okay. forward? of going organic significant Is capital that going Lauderdale. you're developed Got source a it that new you Is that newly developed you likely Or be more to coming it. that a just marina marinas? is something online from And of sort across growth all then to deploy to mentioned have one-off? -- a development

and that to to to like and I'd a would be more likely think manufactured platform. to build one-offs. new the very marina expect we one-off, more difficulty platform opportunity ability one length of due the But the marina there. have marinas. I opportunity to and It's and to of not RV entitlement that have to things the other new of is what housing to us similar attracted and us build But the of attracted a lot we'll

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

changed the or revenue you come the increase in just RV annual the you mentioned typical get your can Has convert given demographic to transient in down about conversion you seasonal. John, RV talk XX% you that when transit of rate? But customers? change dramatically

No.

a hang logical like that to be the and perhaps every pretty staying site that thing I've come coming increased with experience you fact, resorts, demand the it's think different that the together. time and seeing -- resorts XXX In outdoors more of that some ahead, want for to of they the a to to in you gain a coming frankly, and rather in congregate interest and class mean, product a having. we've this to and they're also, really is asset start talked people more you that people people about in than the it's years, to we're it's I friends, And at this I activity in done. with around running, resorts. the tracking the for just and resort But

little would better pleased on than the we to annual really that that success. I a normal actually the we're so bit do that would an with say X,XXX think we I do And X,XXX basis. would And

So number in you same-store there upside revenue growth annual quarters? season. to that XX% Is future had in

just message be the a question. tough the but RV with quarter sticking our and with underlying the of experiencing reporting type look this development, the right kind wind we've help under that from that with direct Anything the with third and we RV, but RV a sharing that We and was will I a different growth, that of movement in the and you, to not been would gained growth expansions It's our back for MH seeing think unfortunate forward sustain, of of particular, the moment the improve patterns. top that and marina at outdoors And on now. that in to the result pandemic space. circumstance choices we're perhaps travel us if

X.XHow realize service, unusual Okay. was sure Also, the it's down quarters? I asset much if included XX-month to quarter around to going there turn how and not going retail something you're sure this I that X.X move not a and EBITDA forward? I'm quarter. number, went debt-to-EBITDA this entertainment much of noticed a this your in Like I'm forward? this of jump I going with is upcoming to net going but going a trailing sale lot dispositions gains, to NOI if do EBITDA noticed

acquisitions and Harbor is really Safe drop of other our EBITDA. basically from in seeing the The impact

having EBITDA XX So it's finally have our didn't a on earnings fully the because in trailing that. months, we

XX, trailing about it and that's EBITDA it at So if that comfortable We've is the you looked to X.X additional to be in transaction those not loaded related. going today going you mid-Xs, fully that said did be if -- levels you it but X.Xx. we're before, for in would

for it be now, too EBITDA. jumping except based acquisition on much shouldn't So around

the I'm dispositions rates you stated can your MH were -- not cap it, this if two clarify in you but sure Gary, Okay. quarter?

average Yes, X.X .

were fact properties. the rate the that very that type with we pleased cap supported market So for of those

rationale... the And

Multiple go bit sorry, I'm ahead. of --

Midwest slower think, rationale your there just a you growth, also about exposure? the was is making I saying were, I but some statement are of

all. at Not

or his of that ones can the our John match are portfolio. to how would redeploy a the why management acquisitions We significant cap or ways. type growth accretive therefore, and portfolio try something, better growth wouldn't the dispositions. continue would really this capital is of in That's we portfolio. things with support per we more the to are as amount support X-year do greater investment our team at expected we're within but core achieve Same that typically be to when that capital acquiring returns dispositions, growth the growth equal Our in important to basis. with equal to historical or to rate asset we patterns the so require important, core determined could always so. And share on well looks goes And as and a then these just and our say

traffic? Sun on about advertising website Okay. spent you My website. Resorts the talk is question that RV to XX% final you to that your in Can generate increase traffic dollars

I John, to front those in don't certainly back you. but me figures can circle of on detail now, that we right provide have some

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

at very, Thank half forward first conference call. and progress next the you, this you Be you. the everybody. And sharing we certainly look quarterly to year on were Thank very of safe. pleased with

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

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