ELS - Earnings call transcript Q3 2019 | Equity LifeStyle Properties, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and thank you for joining us to discuss Equity LifeStyle Properties' Third Quarter 2019 Results.

Our featured speakers today are Marguerite Nader, our President and CEO; Paul Seavey, our Executive Vice President and CFO; and Patrick Waite, our Executive Vice President and COO.

In advance of today's call, management released earnings. Today's call will consist of opening remarks and the question-and-answer session with management relating to the company's earnings release.

As a reminder, this call is being recorded. this the contain Federal during the statements discussed of meanings Securities matters conference forward-looking may in Certain Laws.

or no Our certain forward-looking subsequent to events. assumes because economic to statements update obligation risks and become statements uncertainties. The of are untrue supplement any subject that company

release, measures GAAP in of In financial these today's financial measures will supplemental financial SEC included by our to discuss we during defined our earnings Regulation filings. comparable measures and non-GAAP our are addition, non-GAAP the historical call, as information G. Reconciliations SEC

over I'd Marguerite At to this time, like our turn CEO. the and call to President Nader,

Marguerite Nader

quarter and thank guidance and our rationale morning, be our we initial for us for our will dividend XXXX the third third quarter focused on Good review increase. results, for call. detailed Today, you XXXX earnings a recommended joining our of

yesterday of results increased quarter quarter Our quarter consecutive occupancy released XXX year-to-date we marks sites, by third showed and this occupancy trends. XXth Year-to-date, strong quarter growth. our and

home sales was our by resale evidenced conversions as and rental activity. The strong market

XX%. RV activity online transaction our the camping quarter, sales website booked increased and through escalate. our passes by In online continued increased of to XX% Our revenue our

and Our converting XXX,XXX. in increase summer followers of loyal an marketing base to customers. These in campaigns current to fans a are resulted over followers

growth by annual revenue, of occupancy. RV The points our in growth annual rate fueled X.X% This including Trails and income of been revenue. X.X% Our Thousand our basis has Trails, year-to-date. has is X.X% growth XX and Thousand comprised grown of

upgrades. an in upgrades Year-to-date, revenue an of increased from XX%. seen sales Our increase the increase and both revenue portfolio Thousand and of dues Trails of XX% we've

and projections finish each in process the year. provide XXXX, year following our budget to Turning detailed for we October

is We have at per share. year, $X.XX of midpoint growth which the issued in next rate X.X% FFO for guidance

to be more activity and to Transient visibility additional forecast Seasonal able with require accuracy.

at about the have property as will guidance As each level. reservations we knowledge is our more quarter we update practice,

Our to seen and experience properties continue in demand RV occupancy heightened growth. MH and as rate

the investment Within owners of determine X.X% in by of with team have capital the home MH to rent each and use asset. work for will we anticipate residents increases of XX% best growth Our noticed October, members our our revenue. MH end portfolio, within

Our X.X%, RV RV projection. to revenue base anticipated Trails the performance in main with increase contributors our in is strong annual strength are this to along Thousand

online Our demand and relocating product are and states is demographic demand key to seen favor. trends in can in Baby the are activity. the and our on-property the increased be our in boomers

future increased who an We number grandchildren. at multi-generational of have This properties seeing are of demographic and half to combined their and now Gen will we millennial be X customers and customer our customers. pipeline. the Additionally, RV Millennials bringing exposure and filling long-term Gen helpful X of millennials XX% buyers. are RV children buyers, vacationed in represent than more represent now our

our of Board respect take operations. to I with we dividend. rationale our to to XXXX Board highlight it's have and meeting. that of would to helpful the is been you policy our opportunities in policy. cash recommendations free Directors We dividend The able advantage by generated management's Historically, flow to made typically update like decision fourth dividend on level feel quarter proposed the due

and in meeting Consistent and capital million financial our $XX expect recommendation, at payments. the recurring Each review we discretionary underlying growth to with the arrive obligations expenditures for excess we outstanding of our within projected FFO in of payments, goal past, a in our have principal dividend to of our flexibility. XXXX, year, obligations after maintaining capital

over sector sheet, the both the has we stress can expectations. XX obligations our the REIT balance test of future to with term and which continue our maturities. has test obligations The strength is years stress doubled maturity been reveals longer-term years, our our average. we addition, Currently, financial our ensure to fortified average meet In to customer which

on focused long-term are value We creation.

The trends in our XX%. the give has this dividend to significantly increase business and team led few that flow, we over the dividend management Board $X.XX management's recommendation. stability increased last growth little to history, increased the our our while of underlying not XX% the sheet XXXX. years, strong approved To have our recommend this past a is years. have over balance a recommendation, five our our We've in note cash dividend solid our for yet Please and

work, Our season. to team as look hard our customers. start appreciate welcome our for members continue we the I their deliver to guests winter of back season forward residents experience the I great the and and a to snowbird

turn now will detail. through to the in Paul it numbers walk over I to

Paul Seavey

per Marguerite. our reported FFO two-for-one remarks We've our will as per share well split. Thanks, comments $X.XX guidance review recent our third quarter our XXXX $XXX.X discuss Please remainder guidance or about all I that third preliminary of everyone. results, quarter better-than-expected Good sheet. the for and provide reflect stock million assumptions some balance XXXX as share. our morning, for normalized of note

the As was of other the a Marina Loggerhead higher acquisition, than from preferred joint expected investment. of income venture result completion our distributions because of

claim. normalized the calculation $X.X settled deducted we've of our During approximately of of FFO. remainder quarter, that recognized Hurricane million insurance the We've we revenue our from also Irma

We last XX. rental and income occupied sites quarter base count with to the points occupancy by a as occupancy. up XX result from from in basis our X.X% reducing XX was compared coming gained increasing year homeowner and X.X% XX coming by of rate Core rental

with in-line quarter. Our core RV the were guidance in revenues

Annual Rate gains contributed and our generated growth customers the with respectively. revenue increases growth X.X% and across X.X% from X.X% remainder annual showed our portfolio. occupancy of of seasonal for the strong revenues

evidenced growth and our Our transient by as membership our remains demand strong resort transient revenues subscriptions. of combined the

did in quarter. revenue our guidance perform by In addition, compared locations transient up footprint not A during members XX% expected, of usage the the than RV quarter resulting year. to more was number than in transient site as last limited within lower

upgrade guidance and higher were than quarter. sales subscriptions revenues in the Membership

average the compared the Upgrade Thousand to XX% Trails camping volume During quarter volume year. was has $X,XXX. sales in sales units our sold we as price expenses higher at of quarter, and increased XXX guidance, our of memberships. Year-to-date, from a was last result approximately camping sales X,XXX contribution cost mainly pass upgrade membership pass The higher than of an net sales product.

utility quarter income insurance core the is and of with real than other property, utility related In system the lower and utility quarter, and were operating, water expenses mainly repairs resulted XXXX. last estate and because maintenance expenses. maintenance Utility variances maintenance of in received portion guidance expenses and line proceeds usage. than from and and higher repairs the third from in and A year in forecast, repairs tax

all forecast than in demand. addition, patterns expenses In higher regions increased as electric resulted were weather in

the while $XXX,XXX close core quarter was expected. guidance. periods. of non-core This NOI the in in performed mid-September. our $X.X we to quarter mild Finally, grew on -the NOI related property the properties Overall, from storm in in to the expenses million and year-to-date the contributed that was variance includes relatively quarter. did before properties the we storm incur front, Year-to-date, to acquisition have X.X% from NOI management portfolio as non-core announced Marina closing

we've the had Other our Marina $XX.X joint $XX.X related million interest include to Property recognized was Financing from were acquisition investment guidance. in that closing deferred. previously of to expense than distributions activity. costs higher G&A million and our income income Upon venture expenses management quarter. acquisition, been and preferred corporate of borrowings the fund

as and press share, of release year normalized X.X% Year-to-date, supplemental package as well XXXX. guidance. over growth FFO a in The XXXX was detail and full guidance quarter preliminary $X.XX rate provides fourth per XXXX

mind projections growth in represent As I guidance, of range. midpoint intended and expense remarks discuss our my estimate to in keep our are current results. revenue future in All rates guidance provide

Our FFO guidance quarter of share fourth our the $XX.X $X.XX guidance is approximately million at midpoint normalized or per range.

to in X.X% growth of core no fourth NOI growth year. the during full X.X% gain contribute NOI occupancy core quarter. expect core assume quarter the We MH for the to We

to business, line in and reservation quarter RV our our in expectations. annual our the seasonal current transient with pace ahead is fourth Looking

release earnings business. revenues and historical our membership shows projected of XX from Page our

We expect rate million total growth revenues XXXX, of in over XXXX. $XXX.X of X.X% a

core revenue from has expense been increase impact non-core can X.X% no partially The the year, in offset full expect we and and X.X%. of we in growth the by the reduced seen is be which acquisition For will income core NOI, JV. Marina NOI distributions of Other growth preferred increased as of receive the expense. interest Marina longer

share. per or the per Full range a guidance year $X.XX per range about normalized increase of of share. year The of growth normalized is XXXX preliminary or X.X% guidance approximately represents million midpoint $XXX.X $XXX a X.X%. FFO over share, normalized million XXXX for rate at FFO full FFO our is $X.XX This midpoint our

Growth management be in X.X%. core NOI before expected to is property approximately

XXXX, normalized results past may Consistent be results assume items our FFO finalized projections after quarter with fourth XXXX. guidance. to NOI we adjust core stated of for plan we and certain Our with January practice, rates and XXXX growth on update we line guidance will on call our growth our consistent for

and X.X% occupancy may X% X.X%, XXXX. a from in is of during our XXXX. we've so XX grow expected expect in gain MH In occupancy We assume business, the to we RV REIT no growth in core as points result from core properties we coming XXXX. Resort sites incremental rent our basis from built Base growth

revenues expected result and represent portfolio. a XX% expect than to are Our increases RV we annual X.X% growth rates more of as total of in our across our mainly revenues

seasonal transient revenue X.X% and We growth in project X.X% revenues growth.

of revenue. for quarter, than During the revenue more our we seasonal generate to the XX% transient more XX% our expect year and first than of

season quarter seasonal pace developing winter transient the the is considered and away, we guidance first when our assumption. reservation for So still weeks XXXX our

beyond have into trends. guidance We As as throughout visibility quarter. transient XXXX continue seasonal better updating limited the and have mentioned, we we revenues Marguerite coming intend under to visibility reservation

XX,XXX We earnings volume of assumes We as membership average generated will increase of Page and sales next of budget of assume business upgrade an passes assume camping $XXX.X membership be revenue $X,XXX. on exceed will XX year, our the shown by around Thousand Our Trails X.X%. X,XXX an price activations release. total million at

operating maintenance expenses XXXX. to Core and estate in assumed tax are increase property X.X% real

assumes Our and run maintenance expense rate budget operations. normal for repairs

or have our that quarterly unexpected increase to and intend our property We and guidance. these maintain have on We impact to events seen other one-time provide maintained assumed an events, our years, in assets properties few items weather to do the to related historical expenses practice we've past and not occur. repair damage result. over continue the to We cost related as volatility a when in updates note

contribution Our properties the guidance guidance we've no includes during XXXX. model. our the other in We acquisition properties for assume XXXX from activity expected non-core acquired

run joint MH our Our by other generated income RV income and and expense budget rate reflects normal ventures.

one from As a we our $X million XXXX, approximately joint recognized JV distribution ventures. income in related refinancing of of reminder, to

financing for guidance the acquisition other Our includes capital to assume does of fund impact from debt Marina other any the but cost events. costs and not future

on comment our I'll Now sheet. balance

X.XX% debt during have years XX year. at the deals no CMBS. at in rates to continue and we have XXXX. second $XX times In range, XXXX, in terms financing Current secure XX% million MH the companies debt remainder command to loan-to-value coverage. of MH to debt age-qualified maturing We X.X% of are XX% maturing X.XX of to well the coupons the X.X terms. service inside secured half quality approximately GSEs RV life and quote High assets to continue best debt and

place balance sheet to continue importance high flexibility. on We

$XXX an and is accordion has with Our times of our credit additional million of interest line capacity. provides availability X.X million $XXX feature that coverage of

to Now, like we up for would it questions. open

Operator

[Operator Nicholas with Joseph first Citi. comes question from Instructions] Our

is Your open. line

Nicholas Joseph

versus What performed the RV NOI has to NOI and then, Thanks. growth? MH And decision your relative your JV acquire Marina partner's in that portfolio? to and how drove expectations interest

Marguerite Nader

Sure.

have So, we've how kind our we've included marinas Florida, the tier the Loggerhead provide years. XX JV rent. cash were able annual been top really in Florida ownership. performed take to had we chance of stable the JV to really over a assets side-by-side revenue high they cash operate to two these to be happy plan a XXX% and of properties with site portfolio and they And coastal That in over these a – includes the that flow from over last annual with XX% have We properties, flow. degree of long-term they location, see these

the And and each assets What pleased been we've over to that. so the in XXXX, pleased growth of an seen taking about of NOI. it's X% in we growth healthy year, to from NOI able we're are I'm some do be overall, increase and operations

Nicholas Joseph

Thanks.

is So growing your how opportunity an acquire Could marinas, there exposure. large to you additional marina of to? exposure see

Marguerite Nader

quality. institutional the in United about would we marinas XXX No, States, X,XXX there that are consider

there's the – So space. about X% for in and of large overall marina account less three than the owners that revenue

highly fragmented. it's So

there's like like, makes RV much what are buy. that have that in you space us marinas see the and do for in to locations continue I us that where that you've us long-term seen sense flow cash think, we

Nicholas Joseph

Thanks.

Marguerite Nader

Thanks, Nick.

Operator

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

Your line is open.

John Kim

Thank you.

interest sticking what a of do and you refinance keep the was it rate Loggerhead, Just it the with venture comfort? plan joint on or to debt

Paul Seavey

at be The off paid closing. debt had to

was select the we At And familiar The And put same underwriting with this together educating so of the to of developing to marinas a RV when in that that the network RV group do manner that time the portfolio. that resorts and were there so, a credit. a objective at our that quality partner was use we lenders the to we really brokers really time, available marinas, XXXX that execute to with in have and line what we similar of expand we did to and the similar those plan had finance time we plan at to could experience is saw as I've with brokers what relationships of lenders. respect the have business. secured lending to plan you and lenders entered characteristics others

space lending A in key relationships space the that's for streams to MH helped similar term plan that assets. really marina backed to with I past revenues, the are analogous capital think think us sticky that exist characteristics to build the network experience institutional and factor the RV with showing we longer expand that on and and customers revenue for these debt that

John Kim

interest marina rate So what asset RV? MH could today you or finance versus

Paul Seavey

I think, that. it's a little say early to

we're mentioned, space a that to X.XX% talk I it's as that specifics to a spread pricing of to would now. bit what probably And early I'd in X.X% the of but that little think there's kind pricing, I on bit a say right be.

John Kim

MH XX not increases in occupancy on any which of at assuming last you're question how on growth assume consistent think Okay. occupancy. I which occupancy do had occupancy And guess, in flat been getting much you is I has potential and it then, XXXX from a growth, straight front any the quarters is year from year-over-year, room XX.X% you your guidance, left but today? sequentially,

Patrick Waite

XXX% Yes, occupied. Patrick. XX% If XX% of currently our are to properties

got Vegas our Florida, occupancy we're and in So portfolio. opportunity migration Half demand secondary continue us. well across a the profile markets an to grow good really example, Minneapolis. see we has performed in the is seeing in to for like of vacancy as which has Las And strength even

So with good perhaps at our XX% more. up to XX% profile, and grow looking an profile properties with and to opportunity a of demand occupancy we're that

Marguerite Nader

for that And ones in as it relates have to are XX% the range that that occupied been XX-plus years. XX%,

to get once you So, at that can certainly level, that it level. stay

John Kim

this year many how on through comment XXXX? expansions add you expect Can and sites you to in

Marguerite Nader

X,XXX In of Sure. a to number and XXXX. in about XXXX, sites similar X,XXX X,XXX

John Kim

you. Thank Great.

Marguerite Nader

John. Thanks,

Operator

comes Drew question Babin next from Our Baird. of

open. is line Your

Drew Babin

morning. Hey, good

Marguerite Nader

Good morning, Drew.

Drew Babin

trending MH the versus your to maybe the like in X% X%s It looks been kind upper on rate past. it's toward growth. of closer Question

has Just curious just little contribution a decompose you that been being product occupied CapEx properties more of and or there kind from of to having your whether a maybe there that traction ROI bit? drive a rate? just Could more is

Marguerite Nader

past bit just meet and amenity what is they down the talk rate – what and think them when we're increase, things I are at what property association, survey the to about with we homeowners sit seeing there. happen we would about them with we is, with that the have events, how talked And the a we've so like increase market little them, we there about time in and between upgrades, their to our Yes, we what proposed is, interested what did that sit the rate share they're we in. at same we get talk

has discussing capital getting then you've of think, of allocated to feature that we're we where that that but in or effectively kind I and CapEx result us of to residents a helpful just the with that And amenity seen best adding the and had CapEx as it kind is. post, numbers that use the our taking dollars of additional been

Drew Babin

to XXXX guidance anything mentioned it's that X%. guess of early, behind follow-up I environment? of growth the given it And kind that. caution you rate the when assumptions in than overall other of Is there reverts Okay. to kind one that looks of CapEx assumes like to assume just projects It can we that sort same kind the comes

Paul Seavey

your one. think is observation a I reasonable

I think just in turnover that discussions contributed dial-in in and potentially the increase because occupancy also we forth There's rate the don't past. of the increased the are Marguerite – that some the contributors so an has in uptick that result of mentioned. growth on to that

a going there's So, forward. contribute would that possibility those

Drew Babin

business works with than And that. from challenges the possibly Appreciate a things nuances color. hoping within sales accounting that it little some it the sounds as where that income one could that I this more just or and to grows, need fuel dealt into in any expand Okay. business with marina secured talk MH just differently of unique and/or be business if are potentially Maybe like me, some on come the it. potentially maybe little anything expanding there's looking bit about, that you're that maybe you was grows, larger or plans coming like there from a RV business? that non-REIT debt,

Paul Seavey

there's the the attention to to for course. pay structure marinas business, at revenue an marinas see the that are structure activity those similar what we RV of is requalifying say, that as we ownership the similar fuel we that have not to in that The businesses ancillary of we Yes. business, streams. example at I'd the close in sales have and quite is RV operations very and

But I that for are RV that the and mentioned. really program, we and to that to a marina Marguerite on That's anticipate underwriting, around, educate the our the the is revenue long-term success really working what developing that debt continue part purposes in we think streams lenders develop was – of of hallmark program of on program. really

Marguerite Nader

think, like you that lot unlike a And the transient you see and revenue, Drew, us a that RV you inside ancillary the in could the see that, you interested side side could just side. marina highly marina of I has RV have not what of what see would just on

Drew Babin

detail. Appreciate you. Great. Thank the

Marguerite Nader

Thanks, Drew.

Operator

from Wells next Our of Fargo. comes Stender Todd question

open. Your line is

Todd Stender

Paul, And That's marinas theme, on to just agency that Thanks. to debt. able stay to guessing I'm tap aren't right? say, fair

Paul Seavey

is it say, yes. to fair Yes,

Todd Stender

Yes.

So, this you'll expand the in unsecured side, the side? at if this secured mean, up property eventually looking possibility stay I does of type can you open more

Paul Seavey

has I'd say, in mean, a caution of of I it's this about part total our been invested. terms something business. we're I remember, than million less that's to that everybody small would $XXX just evolving. is quite value, talking

be think And have we're are so, developing you future going progress. we can as opportunities working what I exploring and to these make provide success anticipate that. we the relationships, updates with But on quarters we'll in that

Todd Stender

And piece million, cost Thanks. spent far, just what of as you that to highlight the then the million million right. $XX original $XX All your you've in plus $XX debt? the so invested is just base so

Paul Seavey

funding you $XX mentioned. was pieces that million. earn there was Look, the then the out, so there and plus was an the original million $XX There was initial

Todd Stender

Got it.

you basis in do IRR yield – you if marinas? going look the have your at maybe you looking then, guess, for what have on an two do guess, – years I how at last and – do yield, on a you And I Okay. if

Marguerite Nader

time we preferred our get. what X% it cap the piece we X% it, at we a that these and and discussed had is marinas Yes, which that this we entered rate into a had preferred was on we the transaction on

Todd Stender

it. but be out Got small, you I expenses grow And the if it's marinas? do you NOI revenues will know it, breaking for

Paul Seavey

to should the we RV – annual similar that say, would I business, I the reports, the business marina revenue seasonal think streams to transient. similar look to

Todd Stender

got it. Okay, you. Thank

Paul Seavey

Yes.

Marguerite Nader

Todd. Thanks,

Operator

Dennerlein from comes of Lynch. of Joshua next Bank Merrill question America Our

Your open. line is

Joshua Dennerlein

guys. Hey,

Marguerite Nader

Hello, Josh.

Joshua Dennerlein

marinas. follow-up one Just on the

was driven How You of gains? versus mentioned by growth. X% occupancy much that rate NOI

Marguerite Nader

It was roughly half and half.

Joshua Dennerlein

Okay.

Marguerite Nader

half-half. roughly it's so yes, And

Joshua Dennerlein

like it X.X% increase per year that’s of… kind rate is So a

Marguerite Nader

That's all.

Joshua Dennerlein

Okay. was And kind something storm-related those R&M then you Was else or higher as of I think on were than forecasting. that there expenses well? all there mentioned what the going on were you

Patrick Waite

No.

mentioned, As really, expenses, related had I just that then expenses utility we coming and as electric and elevated water – storm in system to I – demand some million was elevated the expenses the and from related repairs about well, $X.X activity. quarter

Joshua Dennerlein

that expect to guess I kind Okay. forward? And normalize of you going

Paul Seavey

our in our QX. We've adjustment of on experienced utility that's the QX we dialed already QX, into to what but kind in dialed assumptions into guidance expenses an based

Joshua Dennerlein

pushing And kind the down continue there Okay. costs guys to have to utility paid of for is tenant that any the having you at ability it the community kind of level?

Paul Seavey

do active unbundling, definitely focused in we RV we been the we that. to residents we've on how communities area not charging on that customers their how something that think focusing the we're for usage, to separately is might as able call like we I are that one that utility it, be billing can in – extent

Marguerite Nader

And we of on so focus that just kind that a see our resources then that residents and also have to get and to down trying word conservation customers. of we'll just just

Joshua Dennerlein

Thank Awesome. guys. you,

Paul Seavey

Thanks.

Operator

question of ISI. next Khanal comes from Samir Our Evercore

open. is line Your

Samir Khanal

estate sort have as know think us considering some upside. tax there about XX this but next can think of Florida, pressure are are as expense sort about the taxes, going morning. about year? which Good I talk that which last next assessment Paul, could might as to months, real sort from we we there of surprise valuations year where to growth was any hit of property well, are property you states year the

Paul Seavey

increase our appeals We've to I them in the The real particular and range have in they adjusted about we of of generally increase on received rates annual TRIM real present of consistent expense with estate they low-to-high Most not that potential notices, county So proposed I'll amounts. our range. in QX high-end that, one from notices. initiated our Florida tax a in, come tax this significant related outcome when first think was There's expectations. taxes. those Florida. or those estate are We've the reflect at the there talk appeals. that guidance of the But pending county a notices

for estate real the final process through the come our of on year, receiving a mid single-digit where mentioned. understand with year, the the back making and January as the taxes progress Overall core go we increase update we we'll this expect in in an on low-and-high-end out just we're to range county bill of exactly falls that each and appeals I how the on progress

Broadly points across real taxes we pockets increases, the where say, consistently just I not there levels country, I'd elevated see we're mid increase at but kind that are in mentioned. estate beyond time seeing single-digit of that of

Samir Khanal

Okay.

at it's So, one X% line, for you're about sorry, it's right into estate real is now. tax sort with or kind I'm sort I a of now, the of X% which right guess XXXX of, lumped –

is kind what – what Is Florida. risk on there you So there that saying? back could to of get some you're upside, be from depending the

Paul Seavey

higher, the Well, X%. it's is number estate to embedded closer tax real X-ish% that in growth

We expectations other our have activity XXXX. related some to of some line in items of savings in

So...

Samir Khanal

right. Okay. Thank it. All Got you.

Paul Seavey

Sure.

Marguerite Nader

you. Thank

Operator

question Green John of next Pawlowski from comes Our Street.

line Your is open.

John Pawlowski

a just number to closer for real for a is question, rate maybe growth that XXXX growth was X% similar the XXXX, that taxes, fair? estate Paul, Thanks. follow-up to last

Paul Seavey

there as comments an is to do in moment we in I mentioned Yes. properties. in for The a ago spoke that the estate pass-throughs those one opportunity I extent Florida, should've taxes, see certain real to my thing increases

in in successful. of event that aren't some increase of potentially, recovery tax the XXXX that – the completely So there it’s appeals

John Pawlowski

Marguerite, geographic I'm Okay. acquisition if the criteria? quality met Jensen's the front, your curious on and portfolio

Marguerite Nader

Just there's lot of at looking look so buy at a it's it, those lot look not industry And talked assets. did around like we it. – – past, did and of a underwrite at we've the a in we people small we will obviously and

John Pawlowski

hundred Okay. trade in XX next expect large the range another several to you million the dollar in portfolio months? Do

Marguerite Nader

predict will would say, years, back at that really say out, what to going if time you history XX you any happen year a in and to can't when over I happen. point Difficult in the go it's

So, out going I answer, they're there types don't whether I portfolios certainly some know. not the those don't there or of trade know to as are of

John Pawlowski

are gets. coming mom-and-pop Are approached prices good record staggering Okay. folks like, indicator that indicators as Is it into more willing they're is fragmented that there being where suddenly the there's there okay, markets fold? this sellers any any and leading as leading just

Marguerite Nader

really personal kids, in It's mean very going work or making it's a into lot pass decision, along they I mean, to a decision. that a out to health on of basis many and difficult to their it it's case-by-case there's their a thought instances didn't tell. they're then to I were it. they comes – times

it so, And we impact I and of thought reasons a comes think it's very may to kind change may very that tax often other maybe impacting there be personal down decision or it a personal decision.

John Pawlowski

does sales year building the X,XXX beyond to line keep still five X,XXX this insights years? site over are range next X,XXX that pace Got one years is that to of XXXX, in betting the that me, for it. or expansions or Last three reasonable

Marguerite Nader

have nearly when we think X,XXX certainly I look out big we acres.

that's X,XXX goes next range, X,XXX something years, few what the look to it's you out, five-year it look where or that but are, we over like that probably at, we look effectively range. that's at and if in So up three maybe we to

John Pawlowski

Okay, thank you.

Marguerite Nader

John. Thanks,

Operator

next Nicholas Citi. Joseph Instructions] question [Operator of is Our from

line Your is open.

Michael Bilerman

of you're talk can Bilerman change, certainly Marguerite that marina water here risk levels was as little with how you Michael rising underwrite about you by could the buying that. of for sort climate a in the bit wondering it's obviously business business sense Nick. that and long-term, if a I impacted the Hey, be

Marguerite Nader

Certainly.

purchased, the what's is marinas, in in there and a is the there's and areas, are are look and look whether the generating there. lake those also is and on determination it there, or change not, we'll we'll past, look the marinas but the that also versus from to impact for look to marinas the at where make look marinas lakes and happened the annual the in coastal that transient water that their at we So, we'll levels, to and what at are view with that certainly basis happened revenue. climate we look What's we

Michael Bilerman

And you any? just to to looking to real draw improve adjacent – how be site, site, more control not the if far, purchase, I'm in site the estate, terms of to of if wondering to the boats the it's being... marina, – that's be able yeah, the able are to to I mean, if

Marguerite Nader

Yes, Michael. certainly,

Michael Bilerman

around Owning of estate it. real more the

Marguerite Nader

Yes.

in communities So, customer around our standpoint look regional human certainly management we that, a opportunities also in that – from our a for where helps at helps so is interested from be – our from uplands that standpoint we'll and purchases, resource and and managers close marinas our are for – there and teams. also would that

Michael Bilerman

the recognize seasonal and RVers, we shipments would impact to next still what there but pace be as a some pretty and could while expected is sales point think this the feel, or and to down could imagine if business, start year. but of comes then, do of certainly installed to at be year, elevated you And annual. down transient impacting significantly, down at down expect I RV are I base the that side large point declines, one about that guess,

be on how spending to maybe that you there So need how do is – much risk you of? we a that are and time conscious

Marguerite Nader

we look certainly Yes, at it.

XX%, numbers sales XXX,XXX increased high XXXX, really shipments industry be there Shipments have XXXX are decline sales each to up to think, year year. when put previous think year there's in perspective shipments. from Year-to-date, watermark RV last into X%. The I I But RV in those believe, XXX,XXX. increase was about was XXXX, in to been X%. the down for predicted a I the of saw an to

there been have in XXX,XXX shipments. So excess there – really of

the at high decline, numbers. while showing historically numbers they're are So really

ELS, primarily for customers. comprised it's really portfolio is our But longer-term – of

Our and RV average on an a at road they seasonal committing also annual their XX and cycle. with stay into normal they'll the kind then, life customers off stay annual in longer-term communities. of made customers, the of course to us of decision an the develop roots years. the And for kind They've our move

view X the tool. represents as It and on really But important, RVers new business healthy a our really So, they're revenue million the of on you of focused good that roughly say funnel the our the we're base, is really it's existing into our just X% part of it's new road focus RVers overall installed on coming that as for number. we marketing the business. but RVers already transient business,

of I favorable available is think the ratio site very our business. RV to for

Michael Bilerman

pretty guess Got a topic there's how big across more it. before, more I from that in with dealt affordable impacting people, pretty are up movement moved your more the able the your know lot recognize multi-family rents, you've have you a rents it where rent states. for product? over perspective but thinking just business is MH me. look for the U.S., Last your question significantly been you've to product I control obviously last the for dramatically I about is a business over lot land push years a And but Obviously a decade.

and today evaluating sort of bit So, talk how about a can the you landscape stand? you where you are little

Marguerite Nader

Sure. Sure.

we've operating been So said, for long in environment time. a rent-controlled you a as

have that's properties in to that primarily California. rent-control, mandated We are XX subjected

in our of control. been opposition And vocal very rent so, we've

as XX some rate we've we're as our operating operating in last some environment. that environment rent-controlled we healthy in of to and environment generate results won others the cases a even see – Over result in years, an able very and you still the rent-controlled growth are

be that instance, with land and actual prospectus the the increases, runs are continues the beyond terms for our we meeting spent control, time states buy This residents, then, there trying that rent increases. of the under rent focused needs have of to the rent rent and to operate annual important selling and the around actually But our and we with prospectus of like We established Florida the fair we're governs residents homeowners regulations them a to strict – an on for properties. relationship a association considering increases. point achieve

our rent in the where to tenant. from general, transfer in so, a landlord communities see have we we mandated And the the control, economics of

does for really to the are there rates governor of seen in a environment payment the housing from that, is more affordable. that no rental the and overall home, monthly monthly suppressed, rate our where shift control site doesn't firsthand payment They the price the not of sale but home. rent So, that make – the we've

operate is that our we and in, we monitor activity industry make – So, national the – of closely it working for kind with to of now. also the been know sure the represented. for the association I But kind that dealing states same, it's us, dealing for we've we're all while a more of our are others it's time, but first it with for with

Michael Bilerman

Great, thanks.

Marguerite Nader

Michael. Thanks,

Operator

at like line, over questions turn closing Marguerite have more to to Nader comments. call back the would for I we the no on time, this Since

Marguerite Nader

you you very I to all next forward call. the much. Thank quarter's on updating look

Operator

Thank participation now you concludes program This in does a the conference. day. your great disconnect. for you today's Everyone, and have may

Equity LifeStyle Properties (ELS) 22 Oct 192019 Q3 Earnings call transcript