Sun Communities (SUI) 23 Feb 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Fourth Quarter and Year End 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 the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that these 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 Officer. Officer; to John management Strategic Adviser; an to Shiffman, Having opportunity Castro-Caratini, ask President remarks, McLaren, would Chief there Fernando today: be Financial Chairman, Executive us their Gary introduce Chief and and I that, After questions. with like will

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

is As a reminder, recorded. this call being

I'll now turn you President to the Mr. begin. Executive may Gary Shiffman, and Shiffman, call Officer. Chairman, over Chief

joining Good guidance and discuss as our we and XXXX. for morning, for fourth XXXX and for thank us full you quarter year results

a our XXth record communities best-in-class marks of And dynamics have public This and decades, the and housing, supply diversifying past track properties. marinas. that established from and a stakeholders as underpin demand and RV year portfolio company. manufactured expanding Sun's have year we benefited our the three compelling We recession-resistant, of strategically over

Our strategic an attractive growth and balance delivered strong FFO approach share increases. a reliable per of has organic

grew throughout is and resilient. increased benefits In XXXX, NOI demand economic driven our have as FFO for in investment strong and XX.X%, segments share well XXXX by our activity. operating our of offerings rents accretive We in XXXX results perpetually as is outlook and constrained strong Property Same demand the for cycles, growth demonstrates where for per supply core

portfolio. solid nearly approximately gains and our our housing in RV RV growth. At MH housing consistently levels, year-end, occupancy our XX% evident Same occupancy manufactured is NOI and in our for was manufactured within reflecting communities Property Demand revenue-producing occupancy XX%, sites and combined high locations

nearly conversions we topped X,XXX annual more year's increase. a record year-over-year RV site the a represented driven of X,XXX During sites revenue-producing conversions last to and leases, X,XXX over XX% record than which of gains, of achieved transient year, by sites

tailwinds, In Same U.S. XX:X and marinas, leasable XXXX ratio of sticky our creates Property base to the supply-demand gives spaces. boats wet rents. supply slips the ability us storage continue registered the to very existing customer a of to with a demonstrate dry and This grow results in

of resilience can our over our full which grew total Property in results, and platform housing, year marina The RV XXXX. seen be NOI X.X% by manufactured Same

investments opportunistically focused U.K. parks These Holidays With we footprint external significant regard since Park in on ongoing as over our to growth remains used years, U.K. returns. to transaction, April holiday holiday acquiring we Subsequent in the as very parks going-in Holidays our the have U.K. well market believe best-in-class fragmented. yield have for will rates, cap scale and XXXX, highly And in accretive Park the The U.S. Park acquisitions. have and we the growth, to to we presence in strong in being done Holidays' XX selective as acquired we they the our deliver integration approach have

regard to with approach so and In do continue light we'll our to discipline we forward. have capital conditions, of to market shown current allocation, going

we and As expansions to ground-up through developments capital and revenue-producing our and accretive sites offer our funding alternatives, sharpen growing pencil returns. continues assess

revenue These growth the a for base provide begin new North X,XXX at delivered we of contributing was XXXX, end which will greenfield the in coming high new During expansion years. and sites XXXX in sites guidance. and America, development in our new

in development for over and representing We continued have sites XX,XXX inventory delivery fully-entitled growth. embedded years, future of

we long-term evaluate to Additionally, our our regularly for portfolio enhance recycling profile. opportunities capital growth

Sun recently target neutrality emissions and enhance corporate ways by citizenship. that identify XXXX. to achieve can our by XXXX continually we ESG, to respect a net-zero carbon set With we

our Board team. Jeff's to added we announced, be experience tremendous Related to leadership will and Jeff CEO of And a our previously Directors. as Blau, Companies, addition of

from X.X% has a Board year. XXXX per the $X.XX our our to share, distribution Lastly, raised prior increase

We're members success. XXXX very to contributed pleased with to our team who our achievements. collective our efforts extraordinary of I'd thank like all Sun

As expect to Property solid XXXX, again deliver look Same we to a ahead once of we year growth.

As our record model track business demonstrated, throughout we results have XX-year a by fundamentals. economic compelling that cycles, supported has delivers supply-demand

unparalleled growth activity, remain our will platform investment opportunity. a differentiated us in will continue development We disciplined with our and expansion provide to and

speak and to will John? call guidance to detail. I and the now results in John turn over to Fernando our

Thank you, Gary.

The increase a in NOI in XXX-basis reflected MH Property leases. average monthly and platform stability related incoming quarter. rental and results point increase to turnover was a year. average by quarter higher X.X% rent costs. of higher our growth rents to the of was in expenses we shown revenues is costs through realize operating related gain. one X.X% able X% occupancy as consequence over in are these and the X.X% primarily stay now the units, increased our Same on RV turned therefore, refurbishment our for program, in in lengthened and Having the weighted pandemic

MH team irreplaceable our the X.X% and increase continued reinvestment in X.X% revenue X.X%, of work RV For a portfolio a is The and our expenses. Property grew result of communities. members locations, in our Same and NOI increase of our year, full the direct strength our in a driven hard by

annual MH portfolio in end set from during year XXXX RV available at rate XX.X%. the points to despite average we increasing XX.X%, Same conversions site XX% Full growth of strong, RV communities, sites by leases. conversion basis reduction of reflecting another XXX Same site grew annual the revenues to RV to an Occupancy almost an record of transient leases. strategic nights for year remained annual Property X.X%, our our transient Property At in and

an to The above and management job continued Park Holidays' quarter our integrating into done strength. performing portfolio Sun. excellent is underwriting, the team fourth show has original

average home year rates X.X%, properties since XX% in Full least XX at driving the has increased rose weighted For rental Holidays sales home revenues. a XXXX, XX%. Park owned January increase

demand in dry expectations our due increase MH to full slips the to for outperformance wet during spaces. XX.X% exceeded and demand same and Like X.X% storage favorable supply quarter continued for has the generate industry's the growth marina is NOI a to marinas reliable and higher dynamics. with a RV, The and increase due year. Marina

and and can for external terms through date this of and during sites. growth, of spent X,XXX acquired The acquired land land support for In future billion XXXX the $X.X million parcels. properties call, operating approximately Sun $XX over MH RV XX developable

DNA. Development is in Sun's

sites future For revenue-producing the U.S. the approximately at of sites development six year X,XXX over a delivered total sites. Sun X,XXX in XX full and communities expansion XXX at communities XXXX, existing for

a our we as and years and pipeline development well expansion can that proven accretive to sustain growth ahead, solid the have for platform growth. set Looking as skill deliver to come

we properties. forward, delivering MH focus two our Going as well three at to each will new expansions developments as existing on year continued

to the of MH new Total properties. for price at expansion we quarter, in selling average and RV high gained and was and the strategic reflecting regard sales, includes delivered our XX.X% over for Within locations home $XXX,XXX With sites. year. portfolio occupancy the U.S. X,XXX the sites our portfolio, development our newly home demand at revenue-producing

joy vacation received to this site customers were the over new home in annual in a opens uplift first year, gains full one an Sun who We three the revenue hours year in X,XXX for approximate to conversions from revenue-producing after long-term an conversion. Sun. Included a lease XX% RV or new of record our RV RV Value rediscover of discover proposition experience. transient

complete, as cleanup I many regard is other note Hurricane people by properties, three and members we process. properties the rebuilding to as the possible Ian, most to that including would We With team the in the directly our have started affected area. relocated

sales largely in and in second of set recently permit first have is reopening the place our home new of program new half received year. We sites homes, the anticipation to our

to entire Finally, I my years Officer the to serve eight the gratitude for want team as as President past express and Operating Sun for since XXXX. privilege our to Chief the

We has continues years results operating for that impressive that over delivered positioned future and are growth. best-in-class an unparalleled portfolio has assembled platform many a be to and team

focusing responsibilities efforts, Bruce the MH on to look forward our As development team. my entire I I assume and new supporting

discuss Fernando? I will to our now results it more Fernando to detail. financial turn over in

Thank John. you,

per XX.X% from reported share increase XXXX. Sun year, FFO a diluted the For of $X.XX, core

quarter, FFO from year. fourth outperformance favorability. $X.XX, interest was by driven share marina a prior X.X% NOI, to tax income diluted reported the the increase of per total this property quarter's For real we quarter, core Similar U.K. and last

with of December Sun rate XX-month carried rate As maturity times. basis, XX, of average X.X was ratio outstanding a net billion weighted a debt a average run of that X.X debt-to-EBITDA On weighted X.X%, years. of trailing our had interest $X.X

and average weighted we million were million repay million year, capital activity, issued during senior interest notes, completed an The of from our which subsequent X.X%. facility. an December secured $X.X in Pro existing we notes of markets January as issued decreased on $XXX of In with end, terms XX-year used to reduced revolving our XX% financing this a unsecured of fixed-rate achieved investment-grade debt, have XXXX. tranches. billion XX% Since for used we forma rating reduce to from activity, locks which our debt floating-rate XX, unsecured this credit has those to balance. we was line proceeds of treasury of In quarter benefited add-on to credit across $XXX of rate total to amounts $XXX now further XXXX, of of now proceeds a and four

to for Turning XXXX. guidance

establishing are guidance we full in per for the $X.XX core year release, share to press yesterday's in summarized $X.XX. range As FFO of

share establishing XXXX. We supplemental, operations, quarter in April $X.XX. acquired core as Note of quarter $X.XX expect of reflect for in that per guidance seasonality in U.K. XXXX we the first FFO first to range which results we to are also the outlined our

At In X.X% our to Property summarized X.X% increase a growth from housing, release, from and Property housing, marinas XXXX, marinas. manufactured X% across this assumes the increase press NOI total ranges, between and we midpoint Same in Same RV of NOI and RV from total manufactured growth X.X%. X.X% expect growth the

provided and rate housing, average X.X% for in these rental ranges rental back manufactured At we RV marinas. for X.X% for increases, midpoint, are the the October. guidance X.X% increases Regarding reiterate

property in portfolio to between revenues this million expense increase between X.X% insurance and expected XX.X% property-related On is a increase an XXXX, expenses costs. X.X% from total Included and basis, expect in total real and increase we in approximately XX.X%. to $XX growth

our properties. NOI real resident, X.X% total between member X.X% XXXX demand and during property at expect to increase due strong We guest and to

NOI. are guidance total U.K. included for Our in operations our

We are investment certain Park to also help guidance community Holidays' data performance. track providing the points

we And by leases. come we of expect million XX% X,XXX XXXX. to Our annual sites our site X,XXX increase to RV and activity. to $XXX anticipate sites We about transient investing roughly these revenue-producing guidance ground-up development in conversions expansion in sites assumes revenue-producing from

between run efficiencies we for $XXX process to rationalization, Despite XXXX, at reducing to equates our over $XXX inflation Throughout minimal expect million, and high the growth including and office million environment, XXXX, to continue which corporate footprint. G&A focus XXXX we expense on the expense midpoint.

Importantly, we of our this percentage to G&A a revenue as expect decline year.

with rate increasing alone, note, of our exposure. the months down over XXXX million current on XXXX at a rate our We headwind to continuing managed guidance. believe of time final of fixed-rate rate time interest the variable-rate floating interest by in reduce long-term of in three interest in debt, our as actively call informed We the half headwind by the providing thereby paying growth and to FFO back be is The the rates forward rate past risk interest our reflects and this outlook curves debt guidance our a were continue $XXX of guidance.

cash positioned is flow our properties best-in-class continue to recession-resistant, strong growth for of of stakeholders. the generating platform benefit Our

capital include our of prospective activities, activity expected effect included reminder, acquisitions, XXXX. includes close the contract estimates. may a of and property through markets February in and XX, the analyst dispositions capital not acquisitions, to be or March XXXX, under markets disposition impact It does in dispositions research As guidance which a

prepared This concludes remarks. our

We for now open the will Operator? questions. call

you. Thank

Instructions] a is [Operator conducting first line Our with question be now the Goldsmith from will of We go question-and-answer Michael ahead. UBS. Please session.

my a morning. lot Good the insurance. taking Thanks My first on question. for question is

point a as percentage? like to -- try property-related your when basis million expenses XX% if your much insurance of the And to higher renewal is How increase in did it take XXX was would You called When insurance. it was insurance percentage than out is of anticipated, place? basis out, headwind. just to and XX% operating insurance to frame point XXX $XX that be XX% a

X% So, of drag, Thanks. the to like top-line growth and X% the expense matching ex that growth? kind is

Hi, Michael.

XXX November basis portfolio is -- year. year. renewal of occurred and about XX% That of and insurance and year Legal Our between this January taxes January points November an increase expected insurance represent our are to of of Same last over -- about represent this Property XXXX.

headwind perspective So, as far an growth math from as your the expense tracks.

you NOI second flow-through -- then, And of is the the And it. my on for then just question that. Got thank growth.

expected to is NOI grow to X.X%. Your X.X%

your be NOI Your X.X% is is guidance Property down for Same X.X%, XXXX. in yet calling growing to earnings to

So, see the of or pressure can flow some walk that Same you NOI not through are other the when growth the through to line FFO? the below you factors that's Property

Sure. The expense XXXX. our factor, expense as is interest for mentioned call, interest primary going the projected -- be to on for

becomes and of strategies on We reduce potential market as to to either interest far look neutral or are XXXX there's a years. a continue number heading actively expense programmatically for working and variable-rate from into baseline as as tailwind out debt. exposure perspective, a to certainly, our at future But that to expectations we then set

year. this luck Good much. very you Thank

Thank you, Micahel.

Thank you.

America. of ahead. the from is Please of question next go Bank Josh Dennerlein with Our line

fall, Hey, to with -- was line on me the the guys. I like wrong, the Correct you message sending throughout going expense messaging the of up if on got... rate that's I growth kind out feel I'm growth. were

In during the our with set the the of mentioned meetings with conversations investors, that year. and NAREIT fully for yet line fall, program our in rest certainly, of expense our we for had at the items over line fall do expectations time insurance our to the course

did was XXXX. the and realize from perspective, we remaining larger-than-expected for that increase So that item a

kind Or kind long of up in a like Okay. control it? over model little a this recover lot the guess year that like Like in think to obviously, it how I of And a is kind has bit. that is, real go-forward outside the as shifted is future? is insurance to you'll this I your you guys way jumped Is basis, a be of bit? my thinking able there question Like, of the term? about recover something -- something about are a

We it's definitely Gary. it's recoverable. feel Josh, Hey,

rental of One demand we've reliable our expenses about in of the the talked supply. really as key of factors pass strong of that the on, before, we because are about form short is business our able to And increases. growth business and

our So, is expenses. the we that can't expectation pass-through

been would seeing maybe regard point for at I others insurance, private standpoint, a bit said, before renewal will what with in years that. been to suggest we the and environment earlier seeing, else XX or forward. little we're from as It we've public a than that this be going time. But insurance really has everybody reflects for

that go and know, up can we As down.

is increases because our through we pass-through So, expectation will of that costs part operating these they're rental forward business. as we our go

can't increased we of said, the Property fact Same being the midpoint. $XX with X.X% Fernando at that that million, we're at still seeing But as underscore cost, this of growth mentioned

what our effort so. to have totally the the also through we insurance year, that's and of But in the we continue ability So, negotiating to, continue to do will guidance. have of gone in our being our is where transparent included costs

[under the] know one color, the marinas Gary. (ph) I from last safe the me. One Appreciate harbor.

are of are about you as that? payback, kind the thinking Like it payback thinking you annual reason a NOI there's program at you And the how year-over-year? dining membership rate that retail kind two-year the is where are you your side? of cost. -- guys on main How can You and Is about get declining increase [indiscernible] kind is annual now three-year? guys entertainment of the guys service a then,

to I does, and you correct. but don't of have get me, absolutely the or numbers we you're right Fernando in can front back perhaps

reflected the And in cost loss a we have off convert by of passing members. think to As of I while stickier we gas, we might attract leaders, marinas. fuel these business at to lower-margin everyone XX% side always now fact looking And it's waiting our strategically, that recall, are list our aren't over the to rent. are

the I now, growing we've think increases. side, it's that What rental from on there noticed right they Fernando? were marina

then, our member bulk we we're of those NOI fuel a active midpoint, mentioned, have the the expecting -- year-over-year eight-plus-year SRD&E XX% us really having SRD&E year. program we'll waitlist, through waitlist the strategies. continue The the side. working Gary yes, is for that this coming marinas. And service, now At of the from for were And X.X% is now right, at we as with a on period, of and that and there an Josh,

to difference, time, and over safe demand that marinas expect to these the for said, capture offer lower-margin on SRD&E for strategically, certainly, the is activities, feel stickiness basis occupancy a that than to and service. service, the especially very, the very harbor we compared of revenue as more don't being the the to marinas important stickiness So, versus the that That multiple we firmly rental business. the

you. Thank

next Sakwa ahead. ISI. is of Steve Evercore from Our go question the Please line with

good of kind weighing thanks, you're on by seeing U.K., morning. in you whether uncertainties the, general, product the of road Gary, region, economic home 'XX. I of how guess, by and U.S., curious point? maybe kind I whether any type, look Just price Yes, for just anything the are by it's in kind into you guess as seeing bumps on sales are sales

I Steve, go point, this let can as with into John of specific and sales. share I'll more you,

sales are Average home was New up. price about...

$XXX,XXX.

$XXX,XXX.

I points one we've the high think it's seen. that of

in totally quality, it think portfolio. of and value the assets reflects I location our

out reflects a don't we think we communities, stakeholders reinvest that I homeowners. in capital the clearly our before, our that shared from strip do if underneath with equity reinvestment right the we've it

we So, stringent a have policy there.

ironically, pre-owned XX period less used to -- of so we've side demand last inventory the seen able so. of that strong over been On buy a things, or that's home the we've months

used It that homes fact the so negative us, able but whatsoever. they're in period up their home little sales so people down have just And homes anything interruption inventory we're a demand, to no we little the rent of the see of being home over So, direct in bit, or there's staying pre-owned bit, a that the homes, time reflective to tracks we go our it's down longer. new into their as been. not that will to XX-year buy a and flip as don't selling

buying, more John, a particulars U.K. the about we're enormous home expensive I the end U.K. sales. talk the home strength the seeing overseeing bit little the more increasing. to side, of to on On that, who's higher of homes And turn

increase home sold year-over-year. which Yes. I U.K. over I to XXXX, respect XX% is with team there mean, houses our a mean over X,XXX sales, in

to think up before demand So, like out we've XXX shared the -- finishing sold said, that that expand we filled course continues I sites into end that built the much and season to up by will Gary almost of we which in the so all XXX XXXX, in the so very another be XXXX. strong, expansion XXXX, over be look this going year,

domestically demand. And a do there's earners higher has lot with that pensions to more strong caused homeowners to Europe. savings, holiday than the from savings really the in the meaning that for the We're with that, which their has fortunate -- that higher U.K. people really, higher their So costs the income U.K., items, they're that are in our I of which holiday pace on tracking to interest go rather basic inflation. benefiting portfolio, fact in bearing think are represent of

deal, get original hours to to on it's travel difficult comparison year, Brexit -- information And we is in properties. this within the we devalued still with to people makes time expensive. in shared travel continent. last pound gotten The the still two more it most and to It's as the the provided

have fees is perspective, And thing a our would other direct add into owners strength out debit. full so that and their are XXXX of from on pitch -- already in XXXX then XX% paid I committed the looking

rock-solid. So, things are

years. time last That of and year ahead XX% the previous is same the

in constructed it Obviously, more a balance you have about maybe guess balance it to sheet just basis and for versus impact. think how Great. the not in one hindsight, fixed on but caught terms you had the I powerful negative Thanks answer. been the in for floating? of guess Fernando and a lot floating-rate a that maybe get I thought by surprise, people about wants philosophically go-forward of debts sheet. on certainly way bigger

market. of still January million think we've billion we XXXX. I of existing that up about of mortgages, on still our because that a done financings also programmatic over with since that achieving strong able taken We've fact our December rating or $XXX of investment-grade pretty and of borrow advantage couple Steve, have secured under and of been their bonds the the closed summer are public Hey, at we're over did $X.X Today, floating-rate between performance, We've last one assets financing IG the XX% that course in the months. debt. stand unsecured to

and assets be and investment we front, selectively we able and there, his that capital will portfolio, are at to a at we As also in look remarks, -- strategically in our mentioned investment the as debt. activity look we on and can can our opportunities expansion, Gary at we XXXX, there's practically program the -- our recycling here right, of variable-rate ground-up looking at time self-fund reduce couple over look development

would have I the course the looming the couple years. no next And towers of maturities, very market, remind manageable of we over

$XXX last But we've exposure We certainly, couple being today, $XXX are have second course our due programmatic cost the looking of to half of about over year in to coming of the years. debt. done in floating-rate that and locking manage the as the actively about million million,

it That's Thanks. me. Great. from

Steve. you, Thank

Thank you.

question next BMO ahead. from Markets. is Please the line John Kim go with Capital of Our

rates Thank necessarily not you. few the surprise, to I rising wanted in months. to the alluded follow is he question. especially it, on And a Steve's last

post just can floating-rate guessing, you it you fourth allowed refinance and I'm during quarter debt why the increase through to quarter? So, walk us

actually one quarter. these second John, in as on through. the to we July the take side that some of financings up on as far started It's work secured time

debt fourth our development of of that ground-up deliveries expansion and -- a of significant we amount As some quarter right, far into increasing as of year, sites. had the last

then, amount. that the of -- on would the income as on primary to So the the that perspective. reasons course over debt And Those the some will inventory the XXXX. right, side produce is as from the be -- is XX% that debt that it purchasing start increase is, about we of of ultimately XX%, well explains FX

end the from So, end significantly. appreciate did December, of the the of September pound to

So of increase. million that about for accounts that would -- $XX an that quarter-to-quarter additional

rate the then or are And to floating reduce rate utilize looking swaps interest debt? further fixed-rate you exposure, use to

quite to XXXX We've perspective December programmatic the issuance over treasury from and since swaps. of We support bond our been that market. in about XXX of unsecured locks did

We swap the our XXX pound sterling also did million term in loan U.K. of

factor our So toolbox. yes, that does into

Okay. A follow-up question this on different geographic if be a insurance. How much is exposure would your insurance increase let's in Florida? moderate to more say, mix, insurance had, your due to And your cost year? you

to Yes. great size, It's speak, we're to And a best-in-class so we question John, pricing, and a think question. that is get and I certainly the scale it able asked.

at we We're insurance this the of is that the when they've and seeing they've underwriting look the overall. asset referred And versus paid competitors what's going and there the And other and participants talks fact that of have to to heard majority out premiums about syndicate from think I think reality the the out taken classes. than they where reflect claims we're hurricane and damage. that I different and in. a not hurricanes, our graph storm our freezing I in the what flooding, costs

a package. more Florida, challenging broken have coverage to get negotiate we difficult it as We Florida. more getting was Florida. specifically to in when and down We don't But individually

through we to in occupancies, by the XXX target by stronger point to will so California insurance. over never speaks for is rental markets, go that those is geographic and evaluate focus we overall Texas affordable just evaluate operate right the There's design. And forward. Florida, The our has we increases. our to to in. housing as increase million that in in closely and people push ability markets the the the insurance fact and continue to it footprint And would high been demand I inflationary exposure there, So, we're and impacted

a whether of sort form or more at in and it's that of what class of lack is I I the just issue, the taking a is so that's Turkey okay? anything his are better higher that mean And everybody This costs. earthquakes -- has those the that of that. Gary this made you to of answer, that's asset place lot point look Sun And with issue which like the across would insurance I really, everybody. do an events the in world, less events words, cost impacting happening everything, for think is, beneficiary of for in emphasize forth

of wondering just your factors. all may Midwest changes that some view whether alleviate where on markets or forward, going other allocate it I'm at capital if U.K., it's you where these some

matter talking in we Florida. I think that but things million have year. be up, there moved at last and happen look of I we is how people it about it we in you absolutely does XX And bearing how think, not on XXX,XXX, the that things. there's think about talked we to and about bring long ago, the fact

we're do would strategically, have do to proposition So cost I strategically, everywhere. suggest in And we the we very return looking think it that carefully. state at as about that

Appreciate Thank you. it.

you. Thank

with Research. Wolfe Please question line Carl Keegan next from ahead. go the of Our is

same first a They just few Hey, Maybe expectations store came questions. 'XX. definitely pretty strong, for guys. revenue so on looking in

how much on First, do across get the rate pushback segments you guys elevated increases? increases your given

because I boat second, deteriorate you can for going elevated the outsized to think much checks break past channel concern power a that it's how there's on is an done, longer eventually do And going pricing owners. you while specifically to level? marinas, at push think we've

for thoughts there. So curious your

the slips. registered for when wet supply/demand, XXX,XXX, about talk of marine vessels talk we can and I'll about address as XXX,XXX we about talk And rest the over part, the I XX think as intentionally you portfolio, But John. and million or sites stays value memberships, slips opportunities. lower-margin proposition open transient a other discounted spoke rental available increases support attributes as shifting we're such there's fuel, by membership the we such will continued other and that offering earlier, when dry

So, experiencing. with to similar we've supply/demand continue balance, and growth very a to out that expecting we're what of comfortable been kind of

in suggesting see So, we marina type currently headwinds you're the don't that those business. of

manufactured And a I'll really XX-year of let talk history about John housing.

which really but say, to I to it's what to our view mean sprint. -- is conversation, we rent a expense that it's Keegan, on looking it's residents, versus passing obviously, a a balanced and applying at Yes. is increases like marathon growth

shared have think it portfolio is we I time. folks test the the we've stood times site most has our say have And of our that me expensive vacant a strategy As is think I heard in before, really one. XXX

seen every For and growth have ups delivered XX-plus downs. we've NOI year when others years, positive revenue and

our maintain is We continue to course the We also brings growth sales stability. industry-leading XXXX. with force. solid X,XXX relationship our resident deliver It the flow gained sites we a occupancy like of base, long-term over record cash us which

$XXX,XXX asset at commanding our which the home communities average and value virtually represent. in prices all I unmatched quality think exceed our class, illustrates So, the competitors that

we across live that So create summary, balanced, strategy really, our is homes. in their in residents well-maintained communities stakeholders, value and well our in believe, all including

we can both something closely think on what MH and it's RV. And further and and so, watch how increases very that we about talk about as push we

right groceries residence it cost XX% you at foot between it up our offer I'd of the space single-family and your the thing housing many, and in is communities while be be difference cetera. the garage, option the of house, manufactured have square to many only more XX% build due manufactured delta deck lot the will headwinds our of between we posted per being cost home of pull car for especially overall of your single-family housing that to we the know alternatives, certainly available advantages in ownership. is in one site still being residential, provide et for there then, a And do able a mortgage to And bring the rates, on, whether such then where housing, living Americans, whether on only carport, are add multifamily, covered delta a difference a

in is alternative again, record, the to in think, for on we the growth private, the XX-year I certainly, in U.K. XX-year RV will the the correct get track more vacationing vacationing. XX-year as continue to So, Same home, And that value second to the able be vacation based an U.K. true public, indicates expensive proposition.

then, your and shake expectations like-for-like And 'XX, so it. back, on expect of transient compare the conversion for real Because obviously if property, on lower. a for about which numbers we a is transient both step sites, -- your going a Got right? would exclude excluding think transient basis, your the both we then lot where transient, excluding much means pool a whole, taking you comparative transient as to be if out, transient to

of a X.X% you comparative We to year-over-year transient Same point revenue give I'll XX-basis is were base from on X% in site expecting nights. Keegan, fewer Property. That the RV. a approximately about increase for

five-or-plus strong the in resident of you than the a very another like-for-like site, the -- converted X,XXX is high XX% be can script, that the community leases. -- up would sites end, expecting this the there side. value on at a are would right, X%. hyper-focused over annual section annual mentioned basis itself to side. making right, a it site or bringing to during likely is as mentioned That John the RV on year my So, maybe from that you once that of of to on conversions period year I have But time. continuing of program Of very improvements we you've on and much or for conversion average is higher the the transient And expected being

there's excluding the a exclude on portion bit would right, what too, transient be you range just to if the going uplift? of your expectations, be And because an

can here me. front out with in broken very the that We follow call. have after follow-up quick a don't of that's you I up,

Thanks, Great. guys.

you. Thank

Our from go Please with Golladay ahead. Wes Baird. next the line question of is

I going I'm at Hi, we sure like how this guide. going look does question dining looking and And line forward. it the everyone. a correctly. on want just think just more It make have I down about on so it's bit should to modeling retail question item little service a a year-over-year.

comments and think it maybe leader. you I like a mentioned the loss in prepared that was almost

a see part, second I did income. impacting termination termination guide should And anything So, grow this only a this year lease? Is then from the acquisitions? with of the there

just Yes, to in form it think as the shift loss leader. smaller don't to We've over not because of I higher anyone Wes, sticky want it's a valuation it's leader, margin elected Gary. a to rent. of loss

talk the passing it So, a elsewhere. we're to cost when have at subsidizing to delivering big at advantage losing that not it's cost, about the on other cost we not anything. associated with we just pumper And But profits our owners truck, it's buy the money or the guests but it's would it. paying pay boat

did got floors of in termination, main offices our some Southfield. mention in office the we here space and my lease we on two out in And did rationalize in our remarks,

were to preference did buy have to it. and debt? if debt variable-rate And noncore down mention recycling. debt, assets? assets repay down a potentially proceeds, Okay. And Do you Got pay or you or asset from variable-rate sell the down you to accretively pay could then, whether it's you recycle to

everything is think I review. under

we big parts redeploy the today, our continue We we think capital Certainly interest focus, with is Wes. with of evaluate to can rates growth. of where portfolio one greater headwinds the that

running very to as we're portfolio. we've as our developments to think create and them the growth. and us Sun I ground-up of are opportunity differentiates gives new shared, that one not So, expand again, manufactured the to shed ability the housing but And very, reviewing areas is we that assets, greatest carefully today,

is So, elect because are if we bought not with interest to return, lost XX,XXX debt, of what paid we that that's by that over do, carry any already that and there associated rate. that recapture down paying yielding we sites And debt. cost we've obviously for, on a

that So is area. one

funding for increasing the certainly portfolio. development so create returns is our housing manufactured and area costs by we second stakeholders can value the the The that generate high

number that all difficult a and of nothing is opportunities is course, nothing up different or is yet looking from And that are of often economies But third, the platforms. identified of believe we at opportunities, There I turn meaningful. of opportunities across available as capital. before, people refinance of a current things our that accretive in new new periods are to cost rate whole these at in have I become may there times, world, whole as a said

So, or something allows greater us accretive, future paying in at we that down create look if growth variable debt is the there's very as to probably would that opportunity well. something

specific no plan. there's So,

we variable I think that think about how debt. stewardship reducing good of just general

I a appreciate. Thanks lot.

Thank you.

line with Street. Green Luu Please is next Robyn the Our ahead. go of from question

sale up Hi, and to U.K. trends good the the follow on morning. wanted previous I home in on question U.S.

by fell XX% from last was the in prices but sale flat home U.K., in quarter So, U.S. MH business.

typically you prices? slow So, prices? XX% reflect -- the the pushing does Or you the U.K. can the seasonally in maybe fourth weakness market I understand to volume? get period is the discounts a the but Is perhaps are U.K., talk in to quarter

we the on to No. I mean ongoing we little investment gain discounts walked more a sites. might that and gain the was sites more it's not we that but part bit beginning I in, think the margin really thin volume, the fact thesis push shared those in I think when revenue, the of to okay,

basically, we're executing we plan set to out so And just the do. that

Yes. the rent over the the one-time home We stickiness margin sales. prefer on of the

you see that continue to go will on strategy So, an we emphasis as forward.

that reflect to XX%? prices market doesn't So,

was Robyn, question? what the Sorry,

U.K. prices not the market So, clarify, XX%, reflect sales? XX% for home does just the to

No.

the is what seen on we're higher lodges and growth referred reflects interesting, smaller homes. to our of strategic there that's management. margins And on area pointed we've some plan are an are end out, the lower-based it there as on, I they focusing that the But the think higher as lodges. on with than it John also

Yes. Thanks.

in bookings how U.K.? my sales And is so, second are question holiday trending -- the forward on the second for the holiday -- rentals

we trending is as bit actually year, great before, because more a of is that ahead the rent holiday and for which feeder more home little this course, of shared sales They're sites. paying past

Holidays XX% I'm holiday of buyers park, getting] all have Park wrong, rental, in the in stayed homebuyers in So, in this stayed rentals and correct of property. a one of [if the (ph) a all in XX% a portfolio, have in the property

So, you it feeder, will. is really if the

So, it now, is seeing the very encouraging is for where us. demand,

with much I properties. There Park parks, to of have the there amount discounting they properties, Holidays driving of is I those addition a quality out will add place to but did of it's the outside fair and high Park more them ownership we end are a taking think people of inferior Holidays. that's really the some vacation that speak Leisure, and lower other expect holiday day. the home of percent Park And which the fleet at XX in competition

none. Almost

Almost none, yes.

Thank you.

strength are we Yes, positive there. seeing

Thank you.

next Heffern Capital of Our Markets. is with RBC the Please from Brad go question line ahead.

year-to-date demand on seeing on are would happened year, Yes. but it's RV? What of for I demand bookings in any forward you low Good morning, leading-edge the great. know the time be the everyone. transient obviously what color

Sure.

last little we I of are pace just ahead think now, from year, great. the perspective, a right booking is trending which bit

nearly we for time QX. than at are We XX% this booked, better is were year which last

bit have this out running we're in total pace, a ahead. in booking if point But year, bit year. So, you a into that little were where the look last at we're we meaning little whole versus actually ahead happened bookings time

of going pre-COVID normal remind to pattern. I'd back everybody, think a we're more I

during likes COVID lot it as a harder work. John a Tuesday was say, to Wednesday than back to a or to As to people it's school, book are back

experiencing this coming surveys RV done, of expectation and our is positive expectation outdoor our and an are People that about still stay transient camping has increase year-over-year more done competitor with so, normalized There is And that in the a growth. vacation. year. we've

think. So, to it's I more normal, back

effective picking our expect And we that focus last increase an forward, going solid annual. And cost It we X.X% transient there growth basis per to on year, coming almost that about, transient for that has a of a more about in conversions a XX% good really years up when first now big and a is been this forecast of to for site year. easier the year lot talk we convert conversions XX is it the annual. to

So, have will reduction we be problem as inventory of now that from we're to transient, years of nice going to to an to three rethink how start five and annual, a transient which maybe we'll to to of out a about we're see to solve. thinking convert have

Is MH explanation? for Thanks Or seasonal? U.K., that it the points that. the Is like And quarter. basis down some other is Okay. was there occupancy in a on that then, almost fourth looked demand XXX impact?

expansion. portfolio the of through result adding sites a to That's

you. Thank it. Got Okay.

you. Thank

Barclays. Powell ahead. next of question the line from is Our go Please Anthony with

afternoon. good Hi,

you Just of to volume expect And in in one quick the would deals XXXX? you in acquisitions. acquisitions terms MH, of higher rate on one sourcing? be from than marina maybe RV, you XXXX into your go did cap Could me or December, lower three

here. the Trying paperwork to grab

thin. has guidance don't the I fact course, that don't believe we capital we'll have marketplace provide typically always pencil because activities. lose a of We've is any I Sun opportunities that We to to a sharpened discussed towards cost razor seat of capital table we acquisitions such our think and, the brokerage. and at of bringing stronger our a sheet, or through value directly growth balance either the just very, very Sun, out but and on opportunity shareholders. we're sellers had or reach focused about never that all relationship will

trade to assets a changes is currently, or the cap competition seeing quality any some institutional X%-s of sort heard at. of still X%-s. rates in range currently housing is America, we're or of And there's and in been high-quality the trade X% where North RV not few below them to in and major very just lot quality X% of have in low plus for minus Marinas, where a case those assets seen of institutional in we I the -- manufactured one

environment to. and real it's this in deliver can to So, growth take justify going embedded opportunity. It of has accretiveness stakeholders the are growth capital a used and our where kind we deploying

I shareholders, the that housing to return at in but certainly portfolio. term, properly selective we'll think in short our our So, looking expansion investing developments be acquisitions and manufactured

follow-up that in past XX the ROI the a kind on of evolved Maybe development of changed And how the development it. is Got construction sites those? of on costs months? profile terms your How sites.

Yes, spike that's supply, et development the through short of We great chain, saw cetera. pandemic, cost question. supply certainly up the a

double to CPI increases part because low of We single-digit high inflation. build the looking our unlevered in have decline. of IRR reflection rental a Currently, we've it We're our developments new returns begun to to digit, stabilization. a and large upon see as to adjusted

So, as out. going higher originally we going-in rents we forward, modeled them model our are than out

one course, largest has investors cap -- the we in rates acquisition more because you than have we housing, if of marketplace a as really there manufactured because not believe out still of the acquire of that opportunity (ph) we beneficially Sun, a the manufactured see fundamentals housing. in develop, and quite manufactured lot consolidator, So, being can can of will, [dearth] in adjusted created housing, for

Thank color. the you for

Yes.

you. Thank

no are back there over further turn this the questions As time, I Gary to Shiffman for to at floor comments. like would closing

for to XX-year I calls John's appreciate special the opportunity since always got want in operating able particular, to to forward believe take Today we being us and business. Operating President these there, we go marks to XXXX, the our benefit and opportunity and this his to our really direction the now speak and Officer for by. about to manufactured derive his transfer and from in have as look our class. stewardship, John We in a asset very over housing will thank to over if both day, really forward all that we others And correct. Chief in differentiates XX,XXX-site communities, that unbelievable area really shareholders as stewardship an And we inventory have that great grow

management executive do I to senior extend appreciation to So, to entire from the John. team, the well and want on company, behalf our up on of communities Job done.

Thank you.

his We anyone and to follow-up call next team out look invite forward to everybody. with and Fernando our to you, certainly Thank any reach questions.

remarks. does This conclude for your today's Thank conference. you participation in the company's

disconnect now your may You lines.