Sun Communities (SUI) 22 Feb 222021 Q4 Earnings call transcript

Greetings. Thank you for joining us today for Sun Communities Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will begin after the formal presentation. Please note that 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 portfolio. delivered full resilience, positioning for our you our to XXXX provide morning, the as accelerated of year and discuss growth of is The we testament we and joining overview favorable fourth past XXXX our desirability year us and and guidance. best-in-class results this and quarter thank a

as housing has manufactured we’ve of meaningful customer continued housing with and RV the of our largest operator As this activities sustained uniquely for backdrop, meet leisure and marinas, delivered and to With our vacationing outdoor demand are needs tailwinds industry-leading for well communities, earnings value strategic we and ongoing owner resorts creation acquisitions. some. all attainable platforms. positioned and The as growth, across

rent For further delivered the community occupancy per XX.X% same FFO a X,XXX high and to increased in by driven home sales grew over increased demonstrating community. compared revenue-producing XX% the prior and XX% high on demand We approximately share as and nearly total nearly the year, the to live sites pandemic, core XXXX, growth building NOI the added Sun throughout increases. we year,

for parks growth with which out a Holidays market, of nearly allows a operator build UK, the the another owner milestone properties opportunities invested to to record and yet approximately transaction to in and growth coming pending and through external the approximately is that XX the in proven communities. acquired manufactured further to of is model and accelerating billion Their us fragmented $X.X Holidays second owned identical for anticipated quarter, our announced acquisition And date the front, to Park platform. this expertise and development fourth and of the our during is XXXX mid-March. track realized years. managed two we the Sun’s $XXX On $X.X of housing close achievement, billion, business with this Park we approximately call, in land largest In expanding million holiday apply potential.

the RV CAGR to the of in and support of the shipments strong the NOI volume, Sun to same XXXX, RV high increased RV nearly vacation. Outdoors lifestyle compared a The affordability and RV an and believe to compared continue demand in the for demand enjoyment travelers discover a industry. ongoing desire community XX% to business, RV We the great continued experience accelerated shift community with with RV XXX,XXX XXXX, XX%. with outdoors. an to for sales is all-time For tailwinds growth revenue many interest consumer XXXX. And at same surpassing behavior RV continue evident in by increase

with pleased second are XXX marinas maintain Through the and of Manufacturers also in the including the pipeline our we commitment which foundation October encompass team this the our premier XXXX, well and to added Sun’s empowerment that to marina we Sun’s transact leadership to accountability, the continue growth capital sales have Harbor the in Safe to XXXX, our sustainability. acquisition governance securities, our consolidator. core At the marina feed year, demand. are the of Harbor end for we growth XXXX of with National Marine have portfolio, active capturing Association, XXX,XXX units starting will in XX Safe XXXX We in surpassed growth continued returns. According the and marina indicating has consecutive as the Harbor industry, and and deferred with members, attractive attributes, business. both in with shareholder tax of team cost including longstanding of our and success, to relationships The as Safe ability an made

responded outsized submit greatly into building Sun platform pleased responses last through and raised demonstrate to acquisitions, $X.XX results, opportunity, ESG developments we frameworks, process. voluntary a our Sun sector. will reporting expansions, in continued continue X% to as We from marina and our these share, from our This practices the year are and distributions integrate and baseline to the new With continue consolidating we improve new identified areas Board in year, community addition to confidence generate year. disclosures of to developments Sun’s incorporate Annual in three was We in recently to into another of our Report, RV per enhanced published to has have improvements. to marina XXXX established up ESG industry-leading growth of for ability and which our frameworks MH ESG expand XXXX XXXX. green our

Our unparalleled our focus and the delivering our customer record. in platform best experience evident on operating optimizing track is

industry-leading as and track we need in that innovation deliver favorable We’re to record recognize we a confident opportunity our Sun positioned we growth Supported by to proud years capture macro has execute strategic and on our for to of this come. to to that platform, technology environment, this are continue invest uniquely priorities.

for and for detail. We and I results our shareholders. and discuss will call the team we residents, members’ dedicated commitment daily offerings as in and Karen now customer guests, continued across deliver our John members entire to Sun with to enhance the turn our are service our guidance best-in-class all over platform growth grateful further

in Sun Gary. another of results XXXX. delivered you, Thank yet strong year

occupancy the NOI average To in in the testament XX% revenues. an in X.X% a our housing across is revenues, best-in-class strength community gain and same transient by grew monthly in operational increase quarter, entire the by community fourth segment a weighted platform same XX.X%. It RV In the team to period a increase growth XXX provide by RV X.X% manufactured increased basis compared rent, and detail, X.X% reflecting further by point NOI increased same community XXXX. driven portfolio. a managing NOI same was unrivaled Our X.X% to

increase revenues. The full revenues, For in increase over growth expense due XX.X% in in increased by revenues increase community by by rate occupancy year, by was increased a XX.X% by with from XX.X% Same to an NOI and community was the offset prior our The increases. grew same mainly the RV RV expenses. revenues NOI year. contributions transient line increased same XX.X% and X.X% with MH mainly RV community driven

$X.X have with approximately billion marinas spaces. and Our XXXX, for storage and wet XX of and operating slips marinas housing XX,XXX manufactured acquisitions one on communities, year RV XX bolt-on sites in dry $XX two included Year-to-date, we closed XX million. property for the resorts over

XX,XXX five XX,XXX year. increased the sites. by as sales nearly years, housing and with for XX.X% by was provides gains for Brokered almost year Sun. the year, up XX% average for December of we a each XXXX. X,XXX of occupancy sales gain XXXX. transient applications sales per revenue-producing site last conversions Total uplift Home to sites increased conversion pre-owned XX.X% we for first X,XXX with during record including lease, RV high average annual an in potential to homes We from price to coming vacant for applications year, XX%. revenue with annual transient, XX, affordable the within XXXX portfolio With fill The home XX% a as occupancy continued of We for are the Sun us XX.X%, the homes which an in for sustained over seeing live of as the vacationing. attainable averaged demand approximately community applications new gained compared

opened development In ground-up addition, Sun continue with our sites X,XXX new in in communities have These over manufactured expansion at developments. attractive To building pipeline end, build an properties communities of sites. we and XXXX. we a growth total nearly out housing XXX delivered sites XX in newly as two ground-up expansion include that

greenfield to future with of Our development, vacationing. approximately $XXX acquisition in of land and strong for the pipeline where attainable development for million expansion land future for is there housing grow demand continues in

five of During out, fully to sites XXXX, which X,XXX to add MH portfolio. communities, when expect will built we MH new greenfield begin new approximately Sun’s construction

these in to five-plus the communities one to locations. our returns as we’ve in platform MH new MH work building five the MH to next portfolio communities Sun investment believe modern We will over grow acquiring Over years. cost our build with advantage better competitive of significant for years, we than and provide order the a existing this past development been look

in As of zone titled available expansion and for sites XX,XXX development. had new nearly year-end, we

resorts, of Forward our vacation to bookings Sun we year strong and an drive investment for media ahead the resorts and ongoing campaign ahead reinforce remains year. in first RV branding are provides this are launch lifestyle in and In last owned for the of quarter we RV Sun this new our to resorts. and XX% XX% This year-over-year includes supporting leading pacing that as us segment and RV half demand operate XXXX, RV demand our position for of with our confidence Sun and pacing further first rebranding Outdoors. investing the

end launched options our we of our various For channel, Outdoors videos example, RV November, vacation at Sun number are a featuring resorts. and producing at series of the YouTube

quarter. sun was our Sun branded an image for this app live past Additionally, booking The our proprietary and streamlined mobile Outdoors’ experience Outdoors offers app rich released retreat Sun destinations.

XX.X% and year. this Harbor quarter outdoor Marina business, across their rate owned X.X% in rental portfolio. fourth to XXXX year the Our revenue was storage drivers Same as in is rental growth properties the strong CAGR increase for a the marina Within including guests performer Sun properties dry X.X% of lifestyle XXXX, for revenues, the full for our social the new for which The continues industry and managed in top wet main we five since occupancy XX resulting Safe of XXXX, by strategy your over from media the explore of XXXX the and tier of be and was side. revenue marina increases quarter increase the quarter. acquired revenue

core XXXX, on consistently four our execute investment During strategies. we

Sun to to build in revenue of in housing highest quality First, redevelopments, guests developments accretive demand pillars. executed phases and our returns high low fourth, of communities ground-up the RV and high properties; opening shareholders. reinvestment the properties, successfully the communities sites manufactured on Sun’s live revenue markets; reinvesting in demand, and residents acquisition development communities, of steady to first delivery cash ability for and provide high strategic This flow; properties two our of achieving our expansion our occupancy in each existing supply third, X,XXX growth four the with continues occupancy these over while two existing our and add with continued for XX and and provides of Sun over second, properties core leads year, to operating acquisition our

and core Going not will guidance possible be for are and without to into the results which successfully to yield yield Karen team. the executing is which entire continue industry-leading Karen? our [ph] continue XXXX, could discuss growth, XXXX. momentum strategies and our growth, we momentum our industry-leading now financial Sun

John. Thanks,

For the fourth per year. quarter, Sun FFO XX.X% of above $X.XX, prior the share reported core

months For of share the an $X.XX and FFO XX ended the XXXX, revised XXXX. XXXX end was $X.XX, our core top ahead December guidance per of of from XX.X% increase was XX, which

to This unsecured a market a $X.X capital of date average issued $X.X well-positioned in to million our During $XXX range With and expect the share growth approximately for the outstanding billion share. fully cash of weighted the in per range a with $X.XX capacity had billion of debt XX-month our of On growth, XXXX times. maturity equity per $XX.X call, trailing of net EBITDA debt with and balance XXXX notes. this land for a activity To and issuances, continued raised to would core and XXXX, $X.XX $X.XX Sun FFO EBITDA to loaded initiatives FFO pro weighted growth first mid forward approximately EBITDA years. forma X at average months we rate of trailing sheet. in provides to the on $X.XX be Sun times. outlook to billion of ratio maintain in million XXXX, to and quarter operating initiatives. equity regard basis, and unrestricted through our approximately recurring of support properties in us We and be X% our X.X a acquired senior for ended core Sun and to in development $X.X net be including partnership $X.X X.X our debt hand this our the billion our XX operating pursue

X,XXX, be to growth to is the communities. annual in RV same marina housing conversions in same XXX of property of X,XXX manufactured leases gains be to property is The housing XXXX gains anticipate same with transient revenue-producing be XXX RV X% our to We Our X% X.X%. in in our to the NOI throughout balance range between site and manufactured expected and MH of XXXX housing range RV NOI XX% annual over properties year to the X.X%, and growth from marinas. property and have pools to the RV expected manufactured in coming

we On sites the X,XXX and between in X,XXX development plan vacant XXXX. deliver to expansion ground-up front, to development

of XXXX Our expense the in be to $XXX G&A is million range $XXX projected million. to

and continued our our maximize mentioned, are we optimize we momentum. track a position investments and of number our supporting and As John a Gary opportunities, industry-leading and platform strong we making tailwind position are seeing the favorable further record growth To and have team members. in

support our as to future XXXX as Safe people as events used assumptions the the coincide resource rebranding XXXX are assumptions technology seasonality within additional our our guidance specifically in or we expected investments information system discussed, making growth. year a to infrastructure Outdoors well Sun enterprise planning and refer to to supplemental in on John later disclosures portfolio, with new Sun’s Harbor In our prepare to may build guidance. that the addition to for continuing the and anticipated to ERP strategic the this business, launching Please prepare resources used not support actual

Park or through As not prospective prepared date anticipated capital does research the which the guidance acquisitions this other activities, of of and our of analyst in It impact markets call the completes includes a This in reminder, may acquisitions include included mid-March. estimates. be remarks. closing our Holidays

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

[Operator at Instructions] proceed question Please first Carl conducting question-and-answer with gentlemen, from and line comes question. Berenberg. the Our be of Ladies a Keegan time, you. session. will we Thank with your this

questions. for taking the thanks guys, Hey,

the on communities age just age guidance, between plus First, the can give more rate manufactured housing all increased you and breakout color us restricted? some

between XX-plus. back Keegan, is Actually, get this age We and can that. have on that certainly you John. I all don’t to breakout

Okay.

a we’ve seen of So reflect kind you the performance since full a surprised what the on a kind switching bit gears so marinas, space? bit year just business of you now picture, to big gotten you’ve and

to It’s think is its and characterize a in Yeah, I low that. in very we manner as underwritten. RV that I in and so I expected it marinas business underwrote can marina to entry rock of take. MH This a how to is Harbor have strong increases but continues remain a think very that barriers Again, high, And category what’s we surprises, that to of the think solid. demand very, pleased are see much the leader when supply I continue and and is Sun’s demand strength to Gary. discussed that and high identifying grow, as performance not network, would similar Safe performed occupancies membership in platforms we core rental fact been has the with

be us to looking very very very, industry area for pretty the to So is were we Safe consolidate what choose very, thinking on and of the is, opportunity much create very meet team to will acquiring growth. our to be the acquisitions able marina well the patterns it properties allows the and as opportunity membership, in as in pipeline at fragmented Harbor, the for is exciting. really the as continue travel that as And as highest strategic the selective over

what had pretty we So hoped much for.

pleasantly to so surprise. as pleased we’re And opposed

XXXX, to of tilted to the Parks? be external Holiday just and And it. is marinas Is your going growth to follow-up vast pipeline. in it marina fair on then assume the Got majority towards

is deploy three up our we’ve it’s No, continue capital we relationships lines, question business in across shared and finding, all fact that continue always think, the I will capital allowed allocation. rates what comes have always about all cap the that the lines, acquire, are to the compression And to in side. there us on we and and RV including housing MH further to manufactured

we will capital. So where to we can get growth, great deploy look

it that manufactured community of revenue, marinas we our growth UK Park type view So of basically Holidays the includes stickiest the model. the includes because and in as it as is housing

are we those areas on. think will to I two continue So focus

continue is to that invest our through remarks the investing capital in greenfield to development. and MH we’ve third grow relates John been The just his said to platform

up we’re five new there’ll least. of this communities at to that to year, be of open see minimum communities coming like construction communities. five development housing manufactured a lot per John new of And in start We’d or So U.S. said, expecting housing that be on manufactured year therefore, capital to allocation a new the here

time, the Got helpful. it. guys. Thanks Very for

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

Good morning. for Thanks a question. taking lot my

to X.X% you’re expecting XXXX And X.X% grew comparison, still strong minimal Your tough – acquisition. XXXX. this a core XX% with FFO in a strong XX% expecting XX% in from still benefit really on to really

until trying of get you and get to Can rate. growth a like sense talk takes once range, so a kind of Thank little through of kind can better bit underlying from some to this So pandemic? a you. that better you normalized get tailwinds puts the these rate the FFO for we near-term what that the we the actual past understand is get growth

you, Thank This Fernando. is Michael.

those the are fill-up properties as that our levers That’s deliver at components the communities, pull, are indicator this going the I said, properties, to going then the grow expected of growth. the grow hopeful well As property be largest be X.X% by development going existing going RV At other operating the projects, be year-over-year contributor. always – our be acceleration as the to manufactured the to is think that’s you of X.X%. is midpoint, leader investment And delivering is year, midpoint largest of going just biggest year-over-year. expansion NOI the by platform ground-up to and and in Gary our to housing always expected growth again, to like the from and growth, have acquisition we development platform to in to our marina same

I I acquisitions. The everybody capital our XXXX Karen would thing as only guess says, remind transactions that that growth. future are no built into is And actually

So coming now year. additive to of have the that be with that extent we would pipeline we this the type to growth continue

is And on – UK that parks’ this up to right. G&A XX%? All your – the include point, XX% guided it guidance holiday G&A business? to Is does from anything up

additional Safe million, I in Park of Yeah, G&A million. $XXX for expected is Sun $XX.X the mid-March around is the $XXX The Harbor which think million I $XX G&A. to it and to think, Holidays acquisition, and is

just your guidance store for holiday And one rate pool? include one June’s in transient me. helpful. additional And for same do the the guidance? the mid-June guidance last but you Does really the for revenue, three-day growth you have in That’s provided then

think that to we I you question could sure again, that? that – ask be understand

your from guidance provided the have the same for And you so guidance mid-June? then number revenue also, Yeah, pool? the for in the include transient overall, benefit store holiday three-day do the growth does you but that additional

forecasts back June. for Michael, would growth additional our in our transient. we expected include on can of budget the in to revenue three-day middle weekend And the you get the

much. Great. in so Thank luck you Good XXXX.

you. Thank

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

Thank was the color guidance. marina you. could wondering you if provide on some more I

documents F&B driving expansions you You revenue? had the potential discuss X.X% have rate it’s versus Can at just this increase the whether you then and midpoint? versus what’s

I what X.X% clarify Fernando just at not want to midpoint, shared. X.X% the John, is

platform although And scale, last continued we from generally, similar, XX, months. in the strong. grow in in by remains and XX% occupancy very think the XX marina rate size almost did I

that we steps So operations exceeds strategic enormous and where that locations the demand growth pretty just just the far much we there, in have. it’s continued have

So of a Along in community not the there with incomes rate and that’s same that, rental growth. is component separate. it’s ancillary

of bit little have occupancy too increased growth, investment [ph] strong revenue-generating CapEx rental yeah, returns. and also So

to X Gotcha, is [ph] NOI. X.X% Gary. Yeah, Slide in referring

sorry. Okay,

and second exceeding of MH, revenue to to how me brings on that But that due that increased that is know And question, revenue your for RV the acquisitions is to growth. looking your along expense much I some transient higher RV, expense spend comes But variable recent guidance with my that? on. expense you’re growth there’s

John. the at to – that growth midpoint X.X% you’re referring of the so like and It’s expenses,

the with of that things. made up XX% of The that. is up really, So is made – three increase

that’s other estate The first of In other partially impact the and real wage increase the properties items other and we is first we increased is proactive it assessments. XXXX. in piece advertising half estate XXXX. and and be last the Florida that the expansion are really impacting said two spend. are development year, real the And of of assessments. million piece impacts about an tax first really the And half are the on Texas year, seeing wages. $X tax that discussed And salaries

those increasing the So are things the that growth. are expense

$X be and removed If the growth would little expense increases, salary million wage our above from a the you X%. just

XX% like that is this you of G&A, but the Safe due discussed investments making due that in you’re Harbor? much Karen, to and And increase and it’s the a higher some platform, of if how is increase Holidays year, Park to

in the $XXX Park deliver million Holidays continue to million of G&A reflection not our bucket. a is $XXX really to outsized making to growth. a increase. we’re So the investments is separate That’s

great executing our We strategies we tailwind. a on on have have and record track strong

XX% to size, a in months It’s So market. over continuing net said, increased year-over-year the Safe infrastructure little up and of we really as that to consolidate XX they’ll build last they’ve as are Gary their their Harbor, made growth. continue

of So Safe pieces is. quarter it Harbor,

initiatives, data related we best-in-class continue ensure platform, best-in-class then and system, Wages rebranding reporting, retain costs UK the to RV of stock success have some the the G&A is which and half And increase team. with to analytics, board strategic our also compensation, quarter related new our with the to costs some other coming investments later that the need will our build ERP and ESG this associated EI we initiative the team investment. including is Another John remaining year. a discussed, to overall on be of and in deferred

drivers the really that’s So the G&A for increase.

XXXX? decelerate are one-time of will Is it and fair those the will of growth in to increase some that or that the assume G&A

yeah. Yeah,

Thank great. you. Okay,

line with Citi. question. your Nick Our proceed Joseph the of question from Please next with comes

for back platform? and Thanks. the that, across what opportunities are following synergies Holidays G&A up Harbor for Maybe just or the on Park Safe office either Sun broader

the we as I enter share low the high after and underwriting. I’ll a just into transformed strength above last thoughtful, have to transactions require of market supply, Each very think barriers in gain these And a core with of detailed share I you two-year our let’s that really When following. we and years, say, ability to scale to identify on portfolio one high one about entry. a talk XX we to demand, the with Sun’s platforms that do look integrating gain accretion the transaction. over time period of transformative like

increased expectation our with scale sometime housing and taxation earnings to year, platform. would and the results foreign FX, Holidays, our accounting very, and that in although So and we our business at look would John with share regulation. is very I similar to it would throughout Park then marina leveraged here, And we country a be begin next when the seeing manufactured

is do of as run. So we it, what we I crawl approach we think best kind before walk and

there an looking on of the reflect stakeholders to for. and speak, side insurance, deliver the that bit to that a shareholders effort are so G&A So is results our we

G&A. months growth reductions in able to XX love would the in be we see the of after and again, out further XX So to to closing, scale

very, dividends. strong I year-over-year think be And we’re that going think of able last in pay growth G&A seen strong growth couple to that’s for post to the into to years, we’ve large UK going I forward. and operating Park is how entrance Holidays us UK. certainly, our to to the cautious go and the very we in But causing undertake conservative with begin be we as

with transactions Park you last transformative of there in either over outside the acquisition the Safe verticals? even is that’s even historical Harbor, Holidays, or the I years guess of few anything Thanks. the in kind new current pipeline Then mentioned Australia, the

revenue parks. very, we that manufactured excited They with on very we’re in own again, community, both second up Park the order a MH very in home snowbird a as housing well but been communities of to able of Australia extraordinarily home have, within be revenue indicated qualify land type in very, in Florida ramp history. Australia the our The must as Park holiday to in buying platforms we that and think sticky elsewhere, as are JV No, Holidays to where the to with very say I’d growing focused lease Holidays – primary home we’re Ingenia, as by platform, and and our owners. Arizona platform by these law similar for staying

So the school UK. well that see created with coincides seasonality the you by as as in that pretty year the much

So about the we’ve just RV in industry our in very into focus the fragmented And talked taking development. opportunity a we to in we’ll consolidate UK, continue as will on as we and the growing community marinas, before, new done dive U.S., the platform. and then deeper MH the manufactured housing

the that. plan I would don’t And strategic from pipeline see that great a in change going anything got really we forward. So

you. Thank

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

out. morning, on ramp curious of Hey, latest everyone. That’s the kind Australian a if follow-up Karen just JV. on that of building to you’re maybe able I’m kind good up the that. on

going to one into ago, So address designated time some the over the that. He best John. position stepped board really turn to to I’m that and

Josh, how as Hey, response doing? before, – respect pretty know to had we you think strict As we’ve that Australians COVID. shared I with a everybody

JV, acquired XXXX. said, untitled some So our there’s in two actually delays. that we’ve But Ingenia, parcels additional been

three the now remainders homes to actually year. actually – expect one we selling and are is start of open we new One and have developments is nicely, this So underway. construction that five

my Gary of as built. have So that three might the out, other getting on now shared a you and start have be ground I been forward look years to up or we there able unfortunately, back couple opened see on to these in to since things calls, it’s been, out developments go feet

really things think I are accelerate. going So to

can color appreciate expand Awesome. you kind the in achieve smooth to And of I out seasonality kind there of you is on Appreciate – Park Holidays opportunity what the it EBITDA. then one, what maybe the that. where and XQ? guess any and that? of XQ And drives

the Josh, really seasons course income there at really, – months. the like U.S. Canada. October. the Holidays of between the expect here recognize But RV the really season and We would just the you mentioned, properties Park just is second Northern over seasonality properties the Gary is April pitch activity our fee the in XX is to and from during as of third the quarter, do

move only that to I’d we The longer-term, grow the out we able and we’ll that increase add new communities. to thing community the the be communities, new see to as from sales platform operation

a percentage the sales basis, I because they’re will the a recognized as of the be years percentage be fees So will five revenues less three, monthly reduce. the pitch that out a will on would sales much today. seasonality there expect overall fees greater Therefore, monthly the than will And as income, increase. pitch

the Can what right. pitch fees you All just clarify are?

the It would collected be rent rent. They’re site the – call it we the monthly vernacular. in site UK equivalent rent fees, of

it. Got Thank you.

They less have or a on more permanent home them.

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

MH communities. said you development think to your I’m a image us of I new everyone. is hoping overall that doing. you’re you a morning, sense context the you good Can want development? little share get more to of Hey, on start give believe five you what

John. is this Wes,

we’ve that. I have development. pipeline – we entitlement we plus that stages spent actually various exact today, sure it’s more over as of before, behind years at think might building of because got shared pretty I it’s looking the percentage, in we’re I’m And share, XX,XXX know big sites six this don’t but

bolting believe taking I – of we And more leading we terms on XX sites, that communities place. so have I pipeline have do about, there that to place XX people in on are side, takes some long it’s the the because we that and last existing I take does But years. that ground-ups positioned like five, what think as for the as say, new probably just MH development sites, things in it six to smaller would that’s RV here sort build taken it developing, are industry as uniquely like we’re of

process that thought thought about for what behind this is quarter. Can process behind talk quarter? also your And you about you talk LSI in Jellystone investment? or is that your you this acquired LSI what Can

pieces Yeah, today. in the sure. that Jellystones for we own currently XX biggest The portfolio

to was acquisition, family it brand what and is believe important our a – know-how a to for really enhance and put it it us strategic camping together. we merge camping So really

So and that, really message, the is brand control we experience the reach frankly, the important to guests us.

XX% other first backyards, the over app, sitting that it’s look of to having taking the what’s half XX% the year, resorts, mobile of first guests at ahead happening, last and tailwinds year, strategic seeing with are of in new people’s quarter social the the of And you our in and rigs are course the So last over that Outdoors, our to more booking website, of of adding platforms monetize the with Sun more that idle the new that out over road. that pace launch when XXXX, strategy, on RVs ahead are XXX,XXX nature. get we’re engaging place onto

very Sun from we demand inherent do that Outdoors. logical brand That with a to seemed the so is nature And like that extend just launched strategic have a thing to increasing.

Park I on Holiday. just one follow-up have

to the sales, of from going while derived and FFO? the guided into vacation to how EBITDA, is us that You home flow can tell be but you much –

was gross homes, and – the XXXX from which will split. XX% some of rest sale it – then the mirror contribution profits the the high the and of EBITDA of for I split of

vacation balance You’ve transient and rental properties, retail, stays with got in about owners F&B, – coming and about dining on fees in XX% the the from those site XX% entertainment. an

that for one. on A real an quick add

For home FFO out be that all or sales? new of home that backed the be would they sales, XX%, any is

of that of FFO. small would are out a depreciated it’s, XX%. backed be about XX%, it, call is homes amount But that There

right. All Thanks, it. Got everyone.

next question Our comes Anthony Barclays. line from Please of with the question. proceed your with Powell

that Sun overall? Hi, of guess how the about at good more curious And branding, the you about Question drive do look [indiscernible], that you you initiative? how are revenues, to ROI think trying morning. I Outdoors transient

evolution have really our come out towards the a mean, of in the XX% before, And guests graduate sort it people think they weekend, in of uplift to I transient leases, stay a annual we which, campers they more the conversions RV as And provides on through growth off a start first come hopefully short-term is might up. everything drives starting pop in I leases point communities. basis they within to the tent in. revenue when meet shared in to year. come might all they annual that of Yeah, as

providing And Outdoors to over to and and organizing highest strategy then going brand and minute it, we’ve satisfaction. which communities. of properties and over more stays it for was ago, of resorts stays, quality okay, beautiful behind that so, XX-plus the by accumulated for of is Sun layer experience properties treats customer last the unparalleled a one, set short-term is portfolio into years have seasonal about the annuals we resorts the residences for that some an XX And be a I talking Sun was of a incredibly segmentation,

of sites our around that resort. business the as have RV more is the those today, being with had, of X,XXX what going guests the over our and last kind year leases, the the we pipeline we the the gains And guest are bigger success conversions. those our long-term in we to sort like for RPS and goal align with guidance, conversions for launching and And through associated had that way are against of you to what of we which flowing add to so conversions. of opportunities along and through of short-term then it sort flows the all have that together, that organized be portion a of shared converting – lifecycle It brand we’ve and up guests people of that case

a of year okay, conversions think okay, of year first in represent Anthony, about first uplift John I would about add, I about the revenue. uplift that XX%, XX%, talks

talked the is we big looked investment, a of about when So returns, all that is what part there. created on and the returns we at the

park to this I imagine to guests could for parts parks the versus holiday entitled brought And in theoretically that of it MH in traditional you Thanks U.S.? get holiday that. the think that new terms model, of do be country. the various could be easier and

could have it opportunity you development that? for be about thought longer-term, So

it’s before, in. and especially communities said manufactured snowbirds our I really areas we do mirror of the in image housing come a what where as currently Ironically, the

the up then part places down their nice they’re So head and home, the to second where year. they often and vacation other we And their in homes of home, their have. during northern down in Arizona Florida

homes. the community of our we things more vacations, expand the concept we’re One to that looking at look housing portfolio, continue strategically manufactured of to is second as

where so or close people they outdoors want And areas or in like to looking habits outdoor hiking want vacation, we’re to to biking skiing and their be of and that. things

in heavily exists, the of Park similar that mostly to most London model three-hour very which within coastal areas UK. ride Holidays coincidentally, So two, a populated is and the

So and something existed that that in were intrigued us something already looking at we that model we already when the UK. saw

coincidence currently build So time, it’s are to kind U.S. and same of of consolidated take and and that in a home season. bit have trying we to identified an opportunity a we a kind the UK, second the the in that of fragmented a the opportunity model vacation, At opportunity

learning, sure lot I’m speak, So be there’ll back and of forth. so to transatlantic a

point. So a it good is

wheelhouse. our in right And

Got it. on me rates. cap one for Maybe

cap MH, depression rate past in changed all as several And where mentioned have you in You come guess weeks have marina? I the rates to and the now MH. here? RV cap forefront the rates at

probably Yeah, I can’t say I’ve seen work. any change their on things

going rate But and has compression everything That in couple of of shortage is Xs. compression. continued cap cap the is currently RV. of be MH Certainly, it and the the seeing and low-Xs weeks, there’s takes than trading more it to we’re in been a and and rate with So have some change. seeing continued if pressure sub-X trading much assets

way, far than think the manufactured rates. cap we can buying On the better We where at marina housing build side to a one we pipeline. reason of return a and hence, still have those community something the a good by

low-Xs our transacting. where in pipeline, we’re probably the We’re and mid-Xs in

the marina of and On Sun’s properties Certainly, cap side, marina the more announcement, activity. we’ve recapitalization interest them in tax rates. acquire at with Centerbridge. tighter the We’ve sale more seen seen since Sun

remains. compression the so as the rate to see So we’re the marinas. as interest point anywhere goes pretty XXX closely over we’re X.X watch from And in range that the cap X.X X, to basis XX in probably or point the what year is year X, next to buying by. much And expecting we’ll we’re that seeing marinas basis

Thanks for the detail.

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

the for thanks Hey, time.

could share starts, the On the yield stabilization? and five the underwritten stabilized manufactured to development housing you greenfield time

Fernando. is this John,

side within cash in to we’re years were five the the development you rates low-Xs looking range. and four compare X% to housing as When stabilize projects, those on side to four these healthy yield cap on was years Gary developing yields on development manufactured housing On the or saying, manufactured within five to cash X% to pretty instances, sub-X, acquisition to, in or in the spreads. that many we for

above moderation I a transient NOI the you to sharp paces think that trouble ago, you reservation in for having X.X well share remarks are year And Fernando, John’s growth was assumption where forecasting? but And underpins he could X.X the it the XX% Okay. reconciling revenue guidance. above then said

XX%. normalized COVID almost is the really, in the a growth by standpoint, NOI XXXX. given in comp really RV. Last NOI Same impact a that more year did that’s grow community moderation from Well, grew XXXX during year,

say year is projected probably there But XX% would I is So property XX% – from the some in for perspective, budget, it’s our range. the the moderation. same really our transients comp in a RV is to growth

Okay, very much. thank you

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

year. hasn’t to everyone. XQ past guidance. it was it of of what you similar really I was the It’s And walk the morning, couple last changed wondering give over could if a good obviously number years. a Hey,

a were is you about that just the acquired year, is previously, Or G&A there talking been headwind the that this that because curious it? I’m that’s has like So unique seasonal? highly FFO depressing maybe

the year-over-year, raises equity you contribution in seasonality our There’s the average This timing mentioned. FFO. of dollars in weighted a about the lowest of the because quarterly item, QX, really but is greatest as fall growth in it XXXX. impact has to And of it share is increase

that for but impact seasonality because it’s lowest of because weighted the contribution and the about quarter, average unusual nothing share. of the So of

unsettled Karen. Can at the or forwards, but got for picture debt expected the given funding potentially through to you the maybe any capital for you see know should in you have a it. offering what Obviously, markets Okay, activity, now? we point just the some billion-plus well, And $X like expect other as talk year? sterling you

Holidays the is evaluate Park naturally will the to be us markets hedge the over course bond our once denominated in certainly sterling We we investments open year. of close market in way transaction – fantastic the will to capital The UK. a open

come And in our other unsecured from bond that U.S. will perspective. the debt investment to issuance We continuing a as up, capital as opportunities with path markets look then the we well on capital as well. complement will

thank Okay, you.

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

speaking follow-up, the We thank And myself as on and to on want we call today. available are look participating call. any to and we close, Karen the for earnings everybody first forward quarter John, Thank you for to always Fernando, operator. you, always

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

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