Sun Communities (SUI) 25 Oct 222022 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Third Quarter 2022 Earnings Conference Call. At this time, management would like me to inform you that certain statements made during this call, which are not historical facts, may be deemed forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995.

Although, the company believes expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's periodic filings with the SEC. obligation events or date or release. no statements any of undertakes reflect to circumstances company to update advise forward-looking this The after the said Chief John McLaren, management and Chief to Shiffman, Having and and President would Fernando Officer; today, Castro-Caratini, Chairman Officer; us Officer. Gary introduce Executive Chief Operating I that, Financial with like their remarks, questions. ask there After will to be an opportunity

everyone management who to asks would like those like participate two in questions, question-and-answer to who has so you that participate session, would limit to ample yourself For the opportunity.

turn being Shiffman, As Chairman to call this and call a Shiffman, may you reminder, recorded. is I Gary Mr. will now the Chief begin. Officer. Executive over

provide and us and the full for Sun joining our remarkable Hurricane team members thank first our year cleanup response as guidance. morning, the swift, was I third and everyone our to for you Ian. wishes update selfless. results from best and an The share hurricane my organized preparation would of discuss Good by and affected like support we quarter in XXXX of

our with our strength results properties operators. our quarter and our and pleased outperformance resilience demonstrates and are We as of year-to-date, both the this

is best-in-class cycles. stakeholders Our high portfolio value strategically assets positioned creating demand through of continue locations to economic in for varying

facilitated Our growth. continued provide an proven second operational record allows of Sun to by to track execution, platform, none, which is

was quarter guidance. third exceptionally Our our high strong, the of exceeding end

base ability quarter and site, results. manage of housing, compared raising the per supported are is midpoint we occupancy full FFO increased our detail, our to business increased our in X.X% will gains year, NOI last X.X% expenses. Same of Manufactured Fernando segment monthly by guidance. year As rent evident to in Property for Resilience each

the basis, XX% NOI combined first XXXX. Each in base our and with converted X,XXX Monthly over annual exceeds set stream been line the and of X,XXX quarter revenues U.S. are consistent year transient operations, which to Property has a through strong annual record year-to-date. total rent continued expectations, by continue to full value UK. quarter how demonstrating Park the the residents various to in X% economic and Year-to-date, revenue. third are having amid sites transient in with conversion are manufactured see portfolio blended creates and to third we demonstrated portfolio XXXX. RV increased execution conditions. have of annual sites was Importantly, housing a XX% recurring manufactured grew tested, performing and cycle Holidays revenue-producing the year-over-year. total increased basis, we RV XXXX leases our economic included leases, new revenue year uplift team demand uncertainty. operating and demand a the annual Similar XX% On we times to last per new compared continued holiday since to equates gained XX.X% approximately site as accelerated a RV segment, resilience our are during manufactured housing in housing UK compared high for homes conversions domestic RV communities economic in occupancy experience to challenges, Same which year. X.X% trading to XX.X%, into On experiencing creation of

waitlist for storage Marinas and housing XX% as continued to both rate boat RV midpoint, the revenue. and annual Harbor for Marina experience Marinas XXXX, the member. for and strong to increases year-over-year by realize we basis. storage of manufactured performance. of growth X.X% increased expect real ahead is Demand driven and X.X% slips in Safe NOI material over a and increases Same housing last annual slip rental organic in the RV third quarter have on property for year, Looking to to X.X% we compared revenue manufactured join increased are to as persistent positioned a continued represent average at

are and we earnings external have acquisitions. $XX very million quarter closed growth, on selective in July, our of terms will of In approaching remain we new Since in new call opportunities. second

community We RV also in California sold for one $XX million.

to differentiating have the driver focused continues housing platform development and pipeline communities. development be the on Our growth are we a pleased and exciting manufactured long-term, to over John of

over sites. greenfield the During XXX development quarter, delivered we and expansion

a score with side, ESG year's This from last our to peers. scoring we be back GRESB are our range, are pleased which GRESB the participating On the year second came that only score. line in our proud and was to represents report mid-XX% XX% in of in we improvement

on to continues reporting. competitive our team and ESG along properties, gives To Our scale, unrivaled advantage Sun enhance Sun's clear of we economic quality this work the and our build as hard a locations momentum all with team, cycles. to through protocols

efforts, our Bruce and value the forward joining of manufactured team take ongoing team. We look Thelen, it consistently through their thank in Officer members worked the leadership. want and I company Chief Sun XXXX. our for Operating RV would detail. have Bruce delivering resilient makes Fernando operations. continued operations Bruce's third will are well in contributions John I to and and now has to quarter I to John in stakeholders the continue overseeing to Bruce team, been positioned the together to like will I to which to what grown has who is results vital to over his call our member our over today. housing platform. Sun's speak congratulate responsibilities and John? of turn Since leadership He also all a property XXXX, to proven role related

Thank you, Gary.

Sun's have resilience. results demonstrated quarter Third

in annual Same NOI recorded dry record transient The Notwithstanding conversions increased sites revenue increased during revenue quarter. translated into quarter quarter, X.X% to Same points for X% slips to was ahead space in XX the driven to points and and quarter. monthly guidance. we of fact, Gary a Same the third manufactured X.X% For X.X% transient Property rents occupancy. revenue wet site manufactured a conversions, the basis end in mentioned, have build increase number basis transient success increase XX rent third having Property increase basis fewer housing revenue to Marina's and quarter been we compared largely delivering. portfolio. increased and the the NOI which X.X% by increased in quarter, RV the X.X%, annual due Annual this on Property The XX.X% a the increase during expense across increased from driven almost operating communities period. RV was the savings and a high by continuing housing demand year base in outperformance lease the record storage of prior NOI point per by to RV the XXX for the of

Our and UK well experiencing portfolio are continued we strong performed for demand homes. holiday

integration costs growth. to and locked an residents. and and to XXXX, utility team synergies benefit systems, between over Development The to time. operations Additionally, Park continues proactively will Holidays which our advance methodologies smoothly technologies contributor our our long-term important through has our remains of UK in expansion we’ll continue realize activity

structural opportunity call, four of to provide sites. quarter manufactured a of and additional of future purchased in to to $XX million We approximately pipeline a we locations and growth. with the entitle fully this order land land total embedded housing an entitled develop Accordingly, high robust that demand the parcels XXX in continue through maintain date for

sold our and Sun quarter, the communities. pre-owned During new XXX homes in

Manufactured live prices home a also and is the sales live year. Sun Sun occupancy to quality the across average up prior is XX% the the between quarter rental MH X.X% high reached portfolio XXXX and X.X% from a where rate past range of community in X.X%. our $XXX,XXX increase we as UK an portfolio, New XX.X% reflects average Housing expected expect to for rent demand to increase the in $XX,XXX are the The for average in and as September to community. total demand evident excluding The This X.X% year RV in XX. be increases

rate range increases to RV, to a of X.X% Marina and increases X.X% expect rental annual For rents. X.X% of X.X% in we

and Myers, hurricane at landfall, acted Ian sea to at Marina Prior three Hurricane RV near the disclosed, properties our Florida. docks previously and flooding making and wind one caused we located all the plan. significant emergency Fort damage to damage As wall

along our and Florida to members, as contractors reorganized it party safe restoration cannot site, began travel as We return effectively and situation. third soon to work more team a trailers on entire food properties. through was proud team with convoys the Our challenging be of supplies, of managing

fully deductibles. will We expect casualty net of business flood cover insurance and property us that interrupt our

in are for over with the our pleased the financial team by to of turn more performance will We our Fernando? grateful humbled I call discuss members results the now company’s and detail. today. to dedication Fernando and

you, John. Thank

results guidance share The diluted income, a per high the increase of quarter, and exceeding and income, XX% Sun constant prior Marina above corporate operating corporate lower FFO net range. was core reported UK costs. currency total For a of end tax year interest basis our by Real quarterly Property, $X.XX, driven third favorability the outperformance on

had a average and of XX, September has of of carried $X.X X.X debt of interest Sun rate billion As that weighted outstanding years. a maturity weighted X.X% average

ratio to was debt quarter EBITDA month trailing As our recurring X.Xx. end, of XX net

Excluding and X.X our maturity weighted revolving a $X.X of a interest X.X% credit average billion loan bank weighted rate years. remaining and facilities, of the has term average debt of

our million unencumbered of we debt activity to assets total markets to capital XX%. asset of increasing secured repaid by nearly terms In quarter, properties, during ratio XX $XXX the

debt We refinancings which variable to executing rate portfolio are process million approximately approximately also XX%. exposure reduce of of $XXX for mortgage is in to expected a of on properties, our the

we variable last through our July, our As to swapped debt XXXX. rate fixed term on our call mentioned outstanding from loan GBPXXX of million in on million rate GBPXXX

agreements the approximately settled our million million net pay facility. shares to on our total shares proceeds. that we down XXX,XXX borrowings forward In $XXX million of all quarter, proceeds in call, on credit netted remaining quarter since used second for equity Lastly, approximately for settled $XX we X.X

guidance. to Turning

are range $X.XX As increasing of $X.XX on summarized we constant release, year to by revised to the share a per in guidance FFO $X.XX. yesterday’s midpoint of currency press full

implies share We midpoint midpoint the same the reflecting and are year quarter. by Housing represents property fourth for level, new range the At revised Manufactured we core RV quarter. X% the transient establishing NOI $X.XX. the basis full fourth expectations $X.XX primarily FFO at revenue XX fourth RV the our in of currency quarter The full X.X% points, XXXX per the growth growth are the year in constant at for to growth moderating range guidance expectations and

are the X.X% prior midpoint. guidance In a from we increase we same-property full range. For same-property, the Marina point Marina the growth of year the XX midpoint at expect basis increasing of to quarter, fourth X.X%,

but closing, activity our dispositions financing include included markets of reminder, This prepared we in approximately October a of or it XX be of acquisitions, in the not research million and dispositions As and markets does debt analyst through our prospective impact remarks. may includes activities, the capital estimates. the concludes are guidance acquisitions, capital $XXX process which

call for will open questions. We Operator? now the

Thank first you. comes [Operator Instructions] Nick Please Our with Joseph go Citigroup. ahead. from question

Thank you.

declined home obviously look about you So indicator maybe at the a If year-over-year. at overall the Is they starting the How U.S. that portfolio leading are on MH of demand we sales. for all? that? thinking

answer you’re Nick, that The Hey, well. it’s no. Hope is John. Good morning. to

On the hurricane, of associated saw was the home new happened what primarily on actually the which side, we XX with timing September.

anticipated into closing the out up the quarter. as it and that – lined third pushed just we it’s the for had out fourth we Florida were quarter in So closings

margin also had associated since up sales pick It those impact sales, expect an quarter. fourth So the so some to of we those closed. margin are in those back on those the we’re with higher seeing

with pre-owned their broker do to homes, gives really has fewer resell the us side, the sell – who On to that with fewer residents tracks less want inventory which same to transaction. it

have it increase. speaks that class homes communities. quality the they’re longer their onto think as our best lifestyles residents holding to The and again, is home I continue staying values in of really our to even

So whatsoever. no indicator

Just a little bit of timing.

is just What’s average price… And add. Nick the Gary. It’s would I Gary. this

industry home is leading $XXX,XXX, which prices.

It’s timing that’s think I a a good of issue. indicator. So more

on question and there you resets impact the higher home and helpful. for side some of and Holidays? And the mortgage sales Park rates That’s that will UK similar just then the impact think how

demand first the year-over-year I the through XX%, very Park year strong is and continues. sales so months home Holidays Well, can Nick of tell you that growth nine

what’s then debt, just the on million the finally, And Thanks. rate that? mortgage expected for of $XXX

that’s to X.X% and Nick, be X.X%. going between

you. Thank

you. Thank

UBS. with next Your question from Goldsmith Michael comes

which a on the mentioned Good RV points, property morning. as Thanks a lot question. that through for the you last as Can the basis think you like MH revenue touching factors my are up XX transient revenue looks while same just us NOI quarter. taking guidance? bringing same factor. And down was revenue, is transient same property I transient and walk it

transient peak kind have can strong a transient after of year, revenue So kind of flattish year in – we flat revenue where this and of of XXXX be? hit the

it’s Michael, Hi Fernando.

the revenue right? that side. bringing the item. we’ve last that growth a to that the downward in to moderating So portfolio had had stated the question, and you in We XXXX XX%, for we are our record fourth there with year’s conversions the line two quarter. – full year-to-date, the main almost expect And That of conversions to on surpasses record to range X,XXX it’s it the year by – climb almost effects XXXX transient your for is continue number year which in the component record – increased that. into revenue for for full is transient One, the expectations

or moderation, that a item that’s into, – line levels, transient moving where, settling the at year. growth basis, expecting of same-property say, right, And a X% revenue pre-pandemic about forward. was – So per growing on

year X.X% XXXX. for Our of inclusive growth be would quarter, transient now the expectations, around fourth full

sticking growth, And X.X% from the it. growth X% quarter. controlled in quarter the with very it well topic was from with of down deceleration Got last Fernando, to expense a – on

the of levels? And are – this growth went I a expense how are single-digit of So, into growth the importantly, sustainable maybe factor? more Was elevated is kind what low it guess last kind that at like factors control? year

Thanks, Sure. Michael.

lower rolled would the the that be due in in July growth would operating of be two increase the second payroll, is end the the primary One off expense put which on factors. driver that for the and roll-off So at quarter. to of of place XXXX, we

strategies across X.X% quarter, MH, place So is And growth and from third in the that some year-to-date RV at the a on did and the the On put same side. Marina. and from then containment payroll expense RV increase. that Marina our for basis, more moderate side on the side onetime in MH, perspective percentage growth a we cost for now utility

to we forward, expecting, a basis some So say, year-over-year seeing on growth X% at strategies combat in did the place that inflationary not put but certainly portfolio. were say moving pressures

very much. you Thank

Thank you.

next Your Golladay from Baird. with comes question Wes

Hey. everyone Good morning [Technical Difficulty].

apples-to-apples that’s expenses, you the look a then more maybe to segment? With X.X% if you but strip revenue of the a high single-digit the year number some And of savings on still conversion, looking to growth at basis. single-digit the be kind – were utility looking that in long-term out guess, can that You’ve would you to factor these what you of an I I’m average, I you gauge high next you from implement? referred when at when are guess trying at if

On the, let’s transient. basis for say, third quarter same-site the in

Growth would stripping the X%. – the quarter. and somewhere between X% removing So the impact for have conversions of been

have LED. power put to side, we helps put and place over other in utilities in arrays the to put the first converting XX also be We’ve From portfolio additional arrays place XX arrays So arrays XX entire perspective, standpoint the from in on solar a in Arizona Texas in containment arrays CapEx we that California environmental XX a and are and evaluating answers a states. that that few question. – to –

investments utility the to that of we’re contain So some moving those forward. costs are at looking

weekends while made all settings, static the nine controls and significant difference. or rentals club new thermostat can add, we I’d states The control WiFi has other the where a Fernando, vacation actually over one our the houses of on remote the

on. are I’d John. our cases, Wes, portfolio add, The most costs In passed this utility only thing is other

Our one homes have in from residents, as the they single frankly, a boat less frankly, family, typically cost any an advantage but because same and our are are perspective. smaller utility

for that that, that’s up bring we of think formal those as transient point the increases I we So, as side rates on in charge to important business, an sites. capture those well

guess, that. Okay. UK then, asset are at to would marinas this markets consider you more today, stepping fund And the and where of guess, your I point? Thanks capital for properties up acquisitions I recycling

Sorry, Wes, I this the beginning is the question. of missed Gary.

at is MH obviously properties. where few the with sell appetite the the a in I’m now, where and is is still MH sale venture UK the an to they’re today, fund saying selling marinas? markets, more attractive not stock you but equity What to capital are your in growth price new more

Sure.

cost would that I company rates. But well capital center think has front there and of is that capital this I suggest Certainly, today on allocation I – sheet great stronger. and are the our never been platforms many as of think as as what question. that the out balance is

annual We strong cash flow. have

see I think, asset cap expect due to in demand. the classes in our less we higher just general, rate to expansion

have economic the stability, We’re demonstrated they that cash fact interested cycles. the strength assets and resilience in flow through all historically through

We call have same when properties the the and not the the would feel of look those that institutional I’d properties be part portfolio. dispositions what in, amount Oftentimes, some properties in we cannot we a as seen cap rate towards than a to larger quality of growth come interested expansion less transaction. balance as us of contribute

won’t but the to In Holidays and at that sell always in bought think acquire inclination the We’ve since our cherry-pick, Park properties asset actually if acquisitions been this you time no property XX to properties I So, managing lose properties, there looking able at any the is UK, we’re will, platform. opportunities. we UK. we

there yields, opportunity opportunities. higher higher with plenty So of

specifically down is I the there. look capital, always not giving nothing things that the now. at basis, of reallocation dollar, something that take looking as our the a on take fact Including, currency advantage power that matter point that’s we us we right buying of. a and are So, against to while there’s to we theoretical dispositions is pound of over look would at But greater

see We’re capital forward. cost going really matching very, opportunity disciplined to watching and up and invest of very it

thing opportunities. our we is executed We on XX, got XX this we’ve months. had to more acquisitions on approach. add for at a from an come watching the the that the down amount growth pencils Last that’s over I’d when of were if extract abundance large time So the fact of to sideline last

of the and a John’s opportunity that as internal to as development expansion well So opportunities working on. lot related

everyone. great. Thanks Yes, the time, for

Thank you.

Green Street. John next with Your question from comes Pawlowski

just you sales Good morning. I year-to-date. for third up you home same business. have the mentioned few statistic John, us were the XX% questions the Could UK time. on Thanks for follow-up a quarter? give that

Actually, John, front of Apologize. right follow up around the it revenue can for in quarter. The the don’t sale have We that for that. figure call up same me. to – figure you XX% same store back third was home on

Okay.

quarter, guidance the can basis? currency sense, give guidance the us Fernando reduced right. third you the And NOI For that the all then constant what John, even a on – for just UK on drove a or

a think there I primary driver adjustment of transaction. John, the to So Leisure the Park the would seasonality small be

closed quarter quarter. second shifting we million in remember, expectations. perform the the to about line from that for the our you’ll And the with the on $X quarter, of third As that’s at currency a constant end second third. But basis did

from nothing So perspective. more that

the record business, every just Park of two long-term track curious, grow cash the want for one recession me, different. home sales. holiday Last volatile sales. Okay. Holidays I’m just holiday is UK, I’m team they more the UK of home the strains aware to rentals and flow on the of

and they when a are we the home team sales bear of talk cases rentals, for on recession? So precipice NOI if where reasonable the Park Holidays you to streams management holiday say

I know tailwind. out it John, I macro a view a lot I’d But I there’s that that’s be of think the discussion way that kind is, there. it of the headwinds are about answer

for Okay. continent. acquisition that to the And of the thesis when it an of originally to us, and because as we the travel example, more then shared difficult before announce we is Brexit

properties. fragmented, form takes there the going most vacation, affordable very of and people get place within devaluation. of more the still vacation a of to It’s still in a Now two-hour it’s easy to it’s UK. traveling it’s that gotten And pound still because radius common the because established expensive for

we’re we I things and sales And face inflation so, in growing think UK. that, the that, in seeing home the that. started higher of like But

But road, when So that we down in thesis we’ll acquired I holds mean, obviously, in with guidance the we portfolio everything I think fourth I think come when our the April. for looking thought quarter have the out results we that February. back

All the right. time. Thank for you

Thank you.

BMO with Your next go Please question comes ahead, from Capital John Kim Markets. sir.

wanted store by operational I pool, morning. same of Good is four taken out not there’s case? impacted just clarify the that and the properties Ian the Thanks. are to

Hi, same standpoint. John. operational not three out The store performance RV taken be are the from a of would properties currently pool and

We will consistent with prior practice.

be fourth we We expected to expect an the in properties those for will that receive interruption the putting in three for quarter. adjustment business proceeds

they of point business would property. would be proceeds be on But same productivity out of the deductibles actually any from We at in would the the net expected the then future or interruption. So productivity earnings. our some in collect

on have I it’s one-time interruption out charge netted Florida. item, kind in ask had on clarification you’ve deemed seem similar the like the of the I you business a to as kind payment while insurance? for charge I hurricanes that know of wanted ad to a also back of occurring question a FFO? But but your on the on quarter. than any that the on once realize you it’s Core in more And

of doing business rather than considered So more I’m item? one-time of just this if cost a a wondering, had you

ago. And Yes, of don’t magnitude John, as very this often. last a events deal I we dealt the storm one-time – time view We with was five this I the of view John. it this years is with item. magnitude

decade the one probably I was [indiscernible]. or mean, dealt more, I first that with Ian a Before

proceeds? how $XX.X insurance then you confident on this are And of million

to time, change. that update what our insurance will We’ll perspective. of is estimates were best from recover – an That is we estimate this the those market at if

Okay. Great. you. Thank

you. Thank

Please Samir go next Your from with question Khanal ahead, sir. Evercore ISI. comes

and the is there on CPI the over residents on John. Was front, to the time? have social push X% MH getting Maybe that security. or running maybe us guess higher you then of the sort to walk through given this push kind Hey, adjustment side? process even at the your of ability to of I X.X% rates where Gary MH

Samir, the John. it’s Yes. Thanks Hey, Appreciate question. for it.

it. versus a Here’s view a rent marathon We like sprint. increases about how we think

that think shared a time. this our times, has site the I I And probably I test strategy that vacant but the Gary in of is think portfolio of have we a our stood one. expensive lot most

XX while each years over For we’ve and downs. the and delivered positive every revenue growth ups and NOI seen have year, others

maintain to command we’ve continue long-term class. we our us an our We We average home solid exceed base, occupancy cash virtually that at add And industry deliver with our that stability. home brings price all is resident in competitors far will $XXX,XXX that, leading flow a which sale force I relationship had. that a sales growth also asset

I think communities our that value of and illustrates represent. the unmatched quality

our increases maintained the why and range across our our including live But over XXXX. who comfortable as homes. value we our strategy I view is we’re we’re at stakeholders, just community bottom the of to we XX% the of all match at share I balanced have where is MH ability for reasons with sites. well a think for the expense line And their residents see well our in So in creation

or maturities address refinancing you million it primarily Got Is Kind of just sheet balance I through plan just about it. I to XXX the in paying that? what’s down Fernando, address supplement, looking guess, XXXX. on at that? can And the the maybe debt, think the then

no question. that would, we our towers years, we – Thanks, the as Samir. say, debt over let’s the maturities last looming, Yes, we of we have have stack. course next look couple couple out at of maturity Good years, our have, no large rerate the

facility previously growth to due. credit mentioned can down on used be very Gary from in the have term As cash that or these short the anything coming strong a pay flow maturities we call, free revolving

time, We about future also million locked this XXX rate the below looked X% XX-year treasury. walk for issuances. the to have At time-to-time in treasury have on over in we from

in be looking you more capital we’ll part strategy. advantageous at But what the So get today. than pricing that’s all it's market our of would

or believe do with investments So maturities course that over make the we that next year. the our to any great we regard of would flexibility

much. Got it. Thank you very

you, Samir. Thank

Thank you.

Heffern comes with Capital Your Brad next ahead question from sir. RBC Please Markets. go

Thank Operator. you, Yes.

stronger compare how do on does rate was guidance UK the we with So had weaker given I the growth? just the at to the you the historical how with X.X% balancing rates rate backdrop about least, than guess think demand growth in UK? X.X% And outlook anticipated. higher economic

think a higher. been have Xs. midpoint typically X.X% mean with I is they we're I the what seeing of in

higher So year than it's markedly last it was historically.

The second the part of question, Brad?

Just how in recessionary obviously UK? given with balancing the demand of think do there's about higher you rates a lot pressures

drives, places and UK pound, devaluation XXXX, in terms year, I that as as for what we're a the home year difficulty sales. considerable go I And and more with to well the think, say I'd pretty demand course the in of sales that again, domestic that growth was last a vacationing. record that the of it home bit other as of once little shared earlier frankly, them produced I I they've with over that drives over the think on seeing think the what's even which going

it. And is business? Okay. then anything Got there booking forward can the RV you share in trends that on

slightly I and into facing second time look maybe quarter in to of this quarter or first bookings our pacing, like last below close tracking in around. when terms pretty and forward guidance, release We'll but Fernando guidance the provide what think earnings same. the next we bookings range for shared QX year,

Okay, thanks.

Thank you.

ahead Your America. Please sir. next question comes from with Joshua Bank go of Dennerlein

that the question, drove acquisition-related expense costs other quick what business and Everyone and Yes. $X.XX guidance? incremental of a combination revised

a the from be transaction Hi the a the came Josh, business combination of in that away deal quarter; did well would include through we that walk combination of as number UK related that in costs. as transactions to would expenses

Walking from to was that? just those or something deals, away related Okay. capital driving or – it else of just the cost

a other over cost changed. to of The closing our the through debt, capital cost due directly to expectations with related and period of many diligence very fact negotiated as that to sellers. We're the capital increased. are of getting transactions of deal these and with cetera forms the disciplined We getting costs months et of

at As I numerous months, returns deals. based shared will those to back the come a ago. get of satisfactory negotiations through disciplined future, this and in of walk us the it things. and the of with of earlier, away opportunities the transactions capital, when do away the will XX in can't adjustments expectations based we from on to still we months manner. sellers' from on we are returns, six But as capital a we walk the on And lot the up don't on time cost but cost some the are justify we existed yield in cases, believe us price transactions. caused the And In matching we world side

for then of it $X other like G&A that was increased uptick? What Appreciate driving And one million looks kind quarter-over-quarter. me, that.

Uptick, costs in Josh, deal would be that are G&A. recognized

primary the So be that increase. would quarter-over-quarter in sequential driver the

Okay.

and for million So think reverses. thinking Is it? about that I of kind beyond, $X the that to about XQ way guess

correct. That's

thank you. Okay,

Thank you.

go with Your Securities. next ahead Truist question comes from Please sir. Anthony Hau

terms for expect And portfolio? years Can in question. over site the cost Good in line? underwriting the you annually time sites the morning couple taking and Holiday remind per guys guys. of expansions my many UK next assumptions return, me for of lease-up you develop Thanks of do how to Park

previously John. XXX stay for sites Thanks This we for up with this we've that the And question. the we'll Anthony, demand expect to already in as think Obviously, development expansion go. stated we that I of that year, I think in UK. roughly year, completed we – it's match range. so

with which terms of happy be back sites, I with returns circle the have to economics the in – associated we think those with would to you do. associated I

would returns for expected they from Anthony, mirror an expansions – it the low the would teens the call our in so returns perspective. IRR here U.S., in

U.S.? those how usually Is the to And Okay. to it long MH portfolio it you like take to the similar sites lease up? does in

the year. think year that the have along I developed sites, they've the they sites with of a over given vacant those up, see over leased to that in get course other portfolio we'd

last my is question for like And Okay. G&A.

initial be excludes expected out think it Park the million, $XXX when G&A year, guidance was to the So came but Holidays. I last

from G&A Holidays to think around $XX I is million $XX Park million.

XXXX. be it So like G&A will mid will that pace, like in million. in At million $XXX current $XXX this seems total, be

now? the is the and between guidance So initial what difference

Anthony, XXX level. million perspective if the would on And in basis, save at XXXs. from of of $X low Holidays is some at our did the analyze inclusive we we end on when translation we low – the of at our to the $X Park the a currency an There G&A rest, have you around corporate UK, translation. over quarter are be million. payroll to of figure, from about year-to-date annualized guidance, about million the with we range, – $XXX was gave the and tune third course we The

So we things measures are some from with nature. that that delayed of perspective taking some and hiring

thanks. Okay,

you, Anthony. Thank

Shiffman floor for Thank over further back are this sir. questions to no to Please Gary ahead, now go like you. turn closing comments. There would at I the time.

available I on and for certainly year-end to call everyone follow-up you. we want Fernando all myself any you sharing And look remind quarter. questions everyone participating results and Thank John, for to fourth that forward Stephanie that are and might the have. thank today

conclude does teleconference. This today's

You your may time. for Thank you at participation. lines this disconnect