ELS - Earnings call transcript Q1 2022 | Equity LifeStyle Properties, Inc.

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Operator

00:02 Good day, everyone, and thank you for joining us to discuss Equity LifeStyle Properties' First Quarter 2022 Results.

Our featured speakers today are Marguerite Nader, our President and CEO; Paul Seavey, our Executive Vice President, CFO; and Patrick Waite, our Executive Vice President and COO. 00:19 In advance of today's call, management released earnings. Today's call will consist of opening remarks and a question-and-answer session with management relating to the company's earnings release. [Operator Instructions] As a reminder, this call is being recorded. during meanings call laws. of discussed statements contain matters the in the Certain this may conference forward-looking XX:XX federal securities

are included forward-looking addition, G. SEC obligation measures SEC to comparable The measures subject untrue non-GAAP Marguerite Regulation because any statements financial risk events. become call, CEO. Our time, uncertainty. XX:XX and of GAAP supplemental turn our to we financial these subsequent and filings. to our discuss In call statements the this historical certain that our to by measures in information company today's Reconciliations non-GAAP At update as I'd to economic our release, like President no Nader, defined over of earnings or financial and during supplement assumes XX:XX are will

Marguerite Nader

XX:XX thank Good first am us pleased for today. of report joining XXXX. I for the the results quarter morning, to you and

quality, with We flow we to continued growth ELS of operations FFO for The strong and capital our is in have core core of our high FFO record sustained result and share is commitment shared this the focus a the quarter. the strategy normalized of At XX% per in growth allocation. our members’, properties, residents, focused quality value on team built customers cash shareholders. organization and

concentration results historical annual seen flow Our high-quality our on the of strategy our in our demographic tailwinds population trends. in for for XX:XX create The population. outsized revenue increasing That is cash trends assets our ELS. states. see demand quality well reflected the our we as bear Our continues and where are our operating focus acquisition areas fruit boomer properties strategy growth in located demand in flows baby stream. We in and to markets are reported of cash high key

XX:XX revenue driven of of The sale average XX:XX customers our and West XX% quarter, we commitment customers sales campaign is pass Within That sales, and to increased new The of live home home cash manufactured hallmarks Florida the tenure these the increase resorts generations RV pride success. residence a home with with marinas is buyers. demand RV as domestic in our commitment as were for and as base. rebound home our consistent increased from of resident back Core majority the travel by home manufactured welcomed our ownership long-term volume new primary for were able our over Canadian quarter relationships the customers see the guests of South resorts, long-term of of its the made our and homeowners investment sales return are where XX%. demand one of our they increase of in we in our seasonal our an without in driver our Our a saw occupancy we saw capital residents seeing new the restrictions. and our lead Over over XX% in in the our results have XX-years. to living over communities, home RV flow. This along Florida tradition. the increased volume program buyers with and entire portfolio, vast the XXX%, is an increased During we our communities.

to with relationship seasonal us or transient showed a desire with XX time an their last from strengthen -- member. annual XX% becoming first Our customers year

natural and that that within support footprint be -- surveys camp. having gratitude properties The two well ELS affordability out a for express our among focus on desirable generations. great will to Our flexible work I are and We interesting indicating and the properties continue survey to natural that Our flexible forward ensure XX:XX the internal the camp spending quarter. and safety consider improving environment decision it an influence internal campaign year. industry our three are as has to to team we planning propelled the amenities in XX:XX surveys, to wish their the work outdoors view a RV this future great remote habitats remain with and operate environment destinations primary at our responsibility to entire another on to for looking and own biodiversity for RVs properties. customers our indicate and reasons outdoors my and our We preserving as our desire landscapes results properties. diverse to to more focus environment of lifestyle-oriented

will operating focus properties summer it on turn to delivering as residents, and season this their XX:XX they team our will towards over members to service customer the and properties in Our I explore numbers excellent detail. guests now will through to our turn the attention walk now summer. Paul

Paul Seavey

an will provide and of second review quarter and first I XXXX everyone. morning XXXX good and quarter Marguerite our Thanks, overview guidance. full-year our X:XX results

Growth quarter growth, rental to additional XX core last FFO growth First the growth of compared FFO our NOI core points per the X.X% XX:XX rent compared Core XX.X%. to in of MH year. rate for occupancy first per income generated generated of for based in increased share performance X.X% X% portfolio basis contributing strong quarter community our $X.XX XXXX, quarter, expectations. exceeded was normalized the growth share, to normalized

quarter homeowners. home strong core for sales focused available of XXX home on increase inventory growth included The as demand we occupancy gain first a rental for have in Our continued reduced sales. has occupancy from

rent which quarter and rental MH increased On quarter a quarter, to impacted consisting occupancy. from XX% rent Rent gains. the by compared customers are growth annual XXXX. core from seasonal annuals for X.X% represent base first currently compared customers. XX.X%, income closure annual border rent full-year than in travel from and First the core the Canadian stays was X.X% Core restrictions. our increased more X.X% XX:XX XX.X% of and from quarter is marina of first from X.X% our basis from with resort resort quarter of homes XX% base from marina rental and transient rate our from XX%, and increased increases long-term from RV and First rents other XX% was rate XX:XX occupancy. XXXX, Our generated of seasonal XX.X% occupancy to

For Trails which access in the to revenues the of our from XX% at to At same this a last first The the a to members end increase quarter, RV compares increase in the offset the time net introduction million, Collection impact XX%, following of the pass, revenues and XX% X.X% properties. quarter sales a subscription our increased of year. rate the increase base new contribution from the dues subscription The business XX:XX contribution rate provides Collection product, product upgrade our the of includes $XX.X to X.X%. last increase average was Trails adventure reflecting related last year the member membership reduced compared of held year. in

is tax with upgrades, increased that income pass-through’s. to than in XXXX and the our first core long-term expense historical increases upgrade system in repairs as product. core XXXX, upgrade experience. first in are following first and higher infrastructure, income and shows We first growth. utility to estate During the income attributed XX%, see repairs page property the utility added almost quarter quarter, of last operations recovery real consistent property Midwest snow to income and utility XX:XX table upgrade other removal compared contributor in the a X.X% common represented adventure building to price and rate sales. The from We've year. maintenance, expense, including operating largest compared a and the the adventure achieved Utility result recovery maintenance expense the utility was our steady of continue mainly Northeast. quarter average the to the year was year. for for in with The last we XX% Core supplemental Increases area sales last expense XX:XX to demand of the events quarter to and rate our

year. staffing of to core increases NOI a property this midpoint forma along while compared core expectations. overtime in of in associated positions. with our property property guidance with of XX.X%, increased properties of was before temporary non-core of our of of increase were the million X.X%, with of in mainly group the line increased terms the result midpoint underwriting modest wage compared operating of hours revenues expenses pro guidance quarter, compared growth in -- guidance In core payroll property open to consistent X.X%, cover Our has X.X%. X%, to properties expense in levels of X.X%, XX:XX $XX.X increase management the operating our our resulting payroll, to contributed staffing prior performed XX:XX midpoint and The with Core the

well press overview The full-year supplemental XXXX in million G&A and and $X.X release for which provide our income income and $XX.X quarter. and NOI XX:XX full-year expenses our management of XX% quarter, group corporate as the for quarter approximately properties. of other as interest first corporate interest million includes amortization operations, for represents quarter income, $XX.X Property other quarter in net expenses the and of first million was venture The earnings the package expectation an were joint this were second sales and guidance.

expense and ranges for my midpoint growth are results. in annual of for information range to mind X.X%. of estimate of our income As we've core current to be assumes RV for core the represent flat I midpoint $X.XX guidance provided the context rates guidance in X.X% provide of range intended first some quarter. X.X% future provide keep operating remarks All We and at included and MH rents. our property X.X% guidance projections assume our Our in our rate the is rent XX:XX press per are MH qualified in and stabilized to at X.X% $X.XX. share for project factors growth our release $X.XX the by and occupancy of full-year package. of to in growth to guidance the risk will XXXX midpoints to X.X% our Full-year of normalized We FFO supplemental portfolio range X.X% revenue

events model all our expect XX:XX we of assumptions other cash and generate supplemental earnings debt announced in acquisitions regarding events package. and we've flow the release Our disclosed to includes mix in of full-year impact free guidance no the guidance The the the of impact model use capital or XXXX. we capital

last in Core guidance expectations and our to annual quarter, year property $X.XX $X.XX. is represents by core shows available range and income our XX% seasonal growth respectively. sites in to second of which assumptions for quarter X% second longer-term reduced seasonal sites per for stays. stays XX% X% approximately stays, operating stable guidance growth our second XX% range NOI. demand guidance of include our as sites customer total midpoint Our inventory customers, full-year supplemental to projected our of Our normalized be quarter The as full-year at the has of approximately assumes expected occupied the transient for share FFO that to the available for showed transient a and combined and transient package comparison well for XX:XX

full-year months I'll now This income. expect rental transient generated We some provide seasonal six comments the will balance on first core compares to the and of transient approximately XX% of during generate market first financing core XX% sheet. the six rent full-year seasonal and approximately and when was XX:XX of XXXX our the XXXX, months.

amounts well earnings million a on and repay were as refinancing debt proceeds secured all As X.XX% have all credit. secured repay of $XXX maturing we Loan release the as to on supplemental line for term. at our to noted in package, amounts a used outstanding in closed XX-year -- ’XX, debt

the that XX% have XX% XX:XX of loan uncertainty, compares XX-year an and shows rate volatility next rock execution for you approximately coverage. also carries are we as is when solid average X.X REITs. X.XX% approximately this this refinancing; to XX% maturing loans sheet. fortifies further five service maturity it This of years. over only between of our to debt on of and value secured quoted fully XX% our our time with refinancing pleased schedule our times of In and amortizing our significantly we debt are outstanding outstanding to debt Current have times heightened X.X We I'll balance no current secured XX% debt that debt locked refinancing risk. moved and remind X.XX% terms to mid-February, the since

other during and on been financing see million the some terms CMBS of quarter credit instability. available age-qualified has relative to life to liquidity in assets lend market continue to understand XX-years quality our capacity. terms haven't command continue have $XXX High our of that our In experiencing MH has the position, to ATM we terms. options. we GSEs interest because of best $XXX pricing we line been Well, and time, We for some program solid companies our and tapped XX:XX million We provide expanded wide to longer. from market

adjusted I of weighted Our secured XX-years approximately mentioned. debt the impact average maturity for is the refinancing,

Our our interest EBITDA around adjusted X.X times X.X debt times. coverage to is and is

believe We for available place and high we open on multiple would Now we us. up it questions. like to continue to XX:XX capital sheet have flexibility sources to importance of we balance

Operator

XX:XX you. question our Our first comes Nick Thank of from [Operator question Instructions] first Citi. Joseph

open. Your line is

Nick Joseph

XX:XX much. Very morning. Good

guidance to So but I to higher how you And and recognize guess, gas ask relative assumed how bookings big the I assuming the previously part and was are have impact seasonal, and RV guidance? to it's to a annual the transient that not in business on from what trended? I of prices, those relative want and just trend marinas

Marguerite Nader

And of Yes, the our a I is of acquisition inactivity not XX:XX long revenue. gas, of time. North through indicate maybe those think more overall weather X% over as think of resorts think last we're and increased to down that our an we in In relates think than Paul, in and and far XX% not to the highest as this seasonal have did been pace it we as to helpful core with our customer third just really to we the our that to see model also pacing, you it's some customers and that XX:XX likely -- Nick. the -- helpful, and XXXX years XXXX relates volatility available things, within at couple California it transactions I Good that from of the between resorts. due vacation, for quarter see pace we number history focus the for transient helpful the sites that our will price are activity But RV then less in decline the to is convert the revenue pace, could really did sites always reservation. core that as differ patterns second A and it's have properties if reservation X,XXX annual. available and a sure. gas, portfolio than a culprit year break transient the it's the has saw see So we see I transient point in seeing you changes we really we is understand you the X% maybe out of our on transient Northeast as RV if demand, And that the in RV it's quarter that I in in as booking long-term of properties. And walk supplemental, changes? fewer in really morning,

Paul Seavey

XX:XX Sure.

to as mean, weekend traditionally So, from those we’ve Memorial different, Southern winter shifts resorts. look quarter, off summer Within little year book days of we The stays the as a they is groups, that distinct that that two arrive. pretty XX-days kick there booking about gauge and are season. summer to I about transition shoulder think season second bit from Nick, Northern at to window when a advance for was And the but customer Day average average we it's demand before historically, those a been historically the few last focus a XX-days. book out those transient

book’s was quarter earlier last is The that higher pace second group, year. reservation it for that than

making, as the we that about But at that experienced at reflective the level not in the is how key same sure first where quarter. that, but when been of we impact mentioned I it's are, So think very driver it yesterday. weather so of a time you we're I'm mindful of weather Marguerite of mean, growth snowed it's and the in decision Chicago that, is the

to a bit of look and strong second then to in had So, know, April slow patterns we and and May start had quarter the our second weather that is June proving unfavorable to quarter, to a the impacted quarter be results. XXXX you start of negatively we back a the

the is lot the takeaway. on of there is a weather key dependence So

Nick Joseph

we too. Speakers] snow sense, had Makes unfortunately talked that… yesterday XX:XX [Multiple

Marguerite Nader

You XX:XX far culprit, you know. too

Nick Joseph

think compressed. as you on pipeline, on market across to about on the relationship cap the those know have and here? you RVs obviously XX:XX a Saturday XX snow and the rates rates How just But degrees I I rates? private rising How was relative do yes, Monday. acquisition transaction with they mean, rise, rates base to and MH marinas much it interest continue or in stay of do see if rise spread maybe

Marguerite Nader

rate but bit more hasn't yet, system too, from cap they it quite through trading at see a real meaningful end. and the hasn't yet high -- now seen may haven't and little in and I really at happened year quality our a -- X, time changed But a our end mean, rates work sellers and last higher of they've lower that ranging you result it to movement we of not to with may transient see it that the as more cap any cap think XX:XX the take this result this -- change, become the are we interest I RV rates much movement. X committed as year MH committed that may change rates

Nick Joseph

XX:XX Thank very you much.

Marguerite Nader

XX:XX Thanks, Nick.

Operator

XX:XX Thank you.

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

line open. is Your

Brad Heffern

trend people's been that XX:XX RVs you've freighter weekend everyone. quarters, talked extending given to change Hey, flexibility. the work all? any of days Has good into past there about morning at In the weak the trend

Marguerite Nader

XX:XX Sure, Brett.

But arrangements. work are weekday activity schedules. we vacation our we of increase to will have similar weekday Obviously, flexible terms attractive those nights for comparing an option who able their in now really of flexibility and an quarter, still periods first be time saw about work properties we're for the XX%. of For in believe

Brad Heffern

got Okay, OpEx quarter X.X%. And question XX:XX on guide, second X.X%, so the a guide and annual the XX.X%, was quarter first the is it. then number the guide

if that, math I that’s some correct sort of doing the there? I like to confirm X% confidence and the would you guess second and half? significant about number I'm think suggest deceleration in X% also gives a So growth right that talk what can

Paul Seavey

to focus revenues. that and R&M a review to generally think come at represent respect to What look we adjustments bottoms-up -- is We overall period we a process expense payroll I'd preparing of property seen back the almost then budget. I with our well to we to guide the it's assumptions in, coming out you we're those kind for at is our after growth I works, of math our the expenses, budget, that -- I'll think our for Well, we've be and say give with as your -- completed budget history expenses. XX:XX correlation overall specific level over two-thirds and expenses of the consolidated posts utility a And at for as our approach, it's level, expect what re-forecast long a what our those strong is figuring re-forecast our and Brad. three

comparison last a in the band that tight in our the fairly we our we percentage experience we at remaining revenues, trades at we look So look at percent and and full-year first to year-over-year in first look quarter, that the consistent. for quarter terms year as see of of had

Brad Heffern

you. thank Okay, XX:XX

Paul Seavey

Sure. XX:XX

Marguerite Nader

Brad. Thanks, XX:XX

Operator

you. XX:XX Thank

of Our next UBS. Goldsmith Michael from question comes

open. is Your line

Michael Goldsmith

taking lot XX:XX for morning. a Good my question. Thanks

the because so last a then year, And the occurs entering where, been to is on of get to expect of revenue, RV first be the as we us and to of, can how the rate fourth the over about the kind of the of through the of at how kind end for quarter, couple run the would are we of April? the third year? think half you you period, of in back how provide transient the And much able kind of it's underperformance cadence that weather, approach weeks? First, you like, relative much revenue it transient RV

Paul Seavey

beyond is based into we so you're clear say answer on short a to almost for booking guide our is given becomes of guidance give weather. as quarter, again understand, in in to diving out. us, windows it the provided rent is of in The for Yes, what says level that quarter have But quarter, we're I'll growth then for year be pace, it that terms second I'd we that. we our our represents second the the growth that and that X% core projecting may in give about mid happen the said as subject answer, is what previous Michael. can the my current have system XX-days third And a challenging I XX% transient our earlier I just detail of for XX:XX single-digit the

quite business. in So visibility largest the us good for for we that it's expect quarter what transient early the have have to into we

Michael Goldsmith

XX:XX Got it.

sort for cooperative. with rate has clarify, like you the so of, near-term that the on of it guidance right? quarter in that weather sounds based your been in your when less forward the second far X% bookings Just kind is Is of seen, combination have the

Paul Seavey

XX:XX That's accurate. Yes.

Michael Goldsmith

as XX:XX then the what's about and Got in back think it half. implied we

play talk how little you side? You And trends that math just sounds I the strength of rate think you your of on can but Thank sites your into assumptions But the earlier impact plays kind of think call out. kind how talked are to you I guidance go the expect the much in that's down, it, more year of converting you the it from there? single—digit, mid Can of the talk the And out? like -- about you bit kind to the of the kind you. of mentioned, how transient perspective, about rest annual. sites then a what about expect like the

Marguerite Nader

to as tickets we you into similar sites up just and take are in similar do to I car transient as numbers to able those rates terms or I that alternative XX%, consider are with our convert power maybe could continue And Yes, happening our up airline we you us well and budget. built just think what's are annuals percentages vacation being options. hotel see up think see think activities, some alternative XX:XX have some we rooms of rental are travel pricing

think seeing you'll then and us seasonal and rate place we transient to see continue the sites annual. to converting I annual taking some market So in where see push that -- sites

Michael Goldsmith

very XX:XX you much. Thank

Operator

you. XX:XX Thank

comes of next Bank [indiscernible] Lizzy America. from Our of question

Your line is open.

Unidentified Analyst

Hi, good this trends for the how I'm within just NOI comment like XX:XX what portfolio? I growth think the growth morning portfolio? had marina’s came does everybody. or of you much wondering the the full-year, general you around from could all the quarter core you're past that look call? expectation if And in seeing mentioned X% marinas Just

Marguerite Nader

XX:XX [Olivia] Sure, (ph).

I take the us that think, thanks for Patrick today. joining on will call and

Patrick Waite

marinas well a of occupancy marina profile. like are XX:XX of, the customers surveys holding referenced to on we well, it as XXXX, quarter. had We're Sure, time slight calls plan peers we for and our pickup water in the than do We outreach I is consistently the demand good they XX% our is our kind the XX%, so on the in stable. profile a more that same, mean, customers that We across than XXXX demand for strong had more surveyed did earnings we've have spend to us. performing feel

and level like things estate same that the growth and rate expense the real see at insurance we about to and of pressures out subject has NOI the the in Our portfolio some X% been taxes. tracking the balance around of that's

Unidentified Analyst

my second just regulation. Okay, great. around is rent question XX:XX And

multi-family concern even of we're of is cap that manufactured or you're locations continue caps much or how you keeping property seeing single-family. rent and vary type for mind? more a around, more issue homes states become and certain as in [indiscernible] the to certain rent of a So you're portfolio Are

Marguerite Nader

Sure. Thanks, Lizzy. XX:XX

is and they is So the see of the you and implemented. relationships control our really over prospective multi-family the groups we've an like, be. impact the as before But the in years to really do net any been monthly of invest and affordable, think that regulations rent rent touch a we minds far the -- the our overall rate really up in of proposed option, and same they of housing resulting the prospectus. the for -- XXX we concerns I properties and other at are the and a control come the and are best successful should many under the incorporates we that But meeting homeowner around well the and a for over terms on the years, then to making over there's rental XX% We homeowner more had our we what rent rate control property think long-term homeowner to housing aware are have years space increases ends it rent increases states to reasonable residential -- have unique working opposed that in have approach that XX:XX properties with working the and in increasing the Florida price ongoing our not really base mandated home we as NH with others our house approximately decreased. homeowners' buyer. the the for really rate fair agree we've of associations with that's the have -- of base is

monitoring activity the working our closely about we're in and in accurate. So we associations that sure increases is the information all states industry the and with operate rent to national make

Unidentified Analyst

you. thank Great, XX:XX

Marguerite Nader

Lizzy. Thanks, XX:XX

Operator

you. Thank XX:XX

of comes question next Carl from Berenberg. Keegan Our

Your line is open.

Keegan Carl

your any of are thanks you prices, year? trips of, impact this all? kind seeing pricing resorts? stay kind you of XX:XX your Do given If just the impact think elevated Hey of will so, guys how earlier you number for theater do guys, off going taken it the extended at question, time, gas Nick's at think of algorithms will take it

Marguerite Nader

XX:XX Yes.

of planned, bit if I think I've think everybody are this here. that I little maybe getting on we're think a could trips go feedback the mute, I mentioned that before,

RV our So average in trips, trip. I about takes -- a about terms XX-mile of it's think,

you So gas demand do think basis going of rates the I our prices that to we to to to terms see we a and that them going up see have on cost as the regular us do in ability $X increasing. travel locations. isn't dramatically impact raise

see I see that's and as market-by-market quarter for basis. quarter a so of what And we the on the next in -- you'll changes rest think for

Keegan Carl

it. Got XX:XX

changing labor last kind see your I do at demand And the inflation, year, summer your coming guys on shaking across any out gears Just business what of, here you to in material happened your time are part I months? mean seeing you how guess, lines? similar situation impact

Paul Seavey

the market XX:XX expenses assumptions of well employment, terms as for our and labor into levels I as dialed guidance at remainder think our properties. in for of we've year, full the

I consistent experienced across to-date property but number what some of positions, type kind at think per the has position it's fairly we've been open portfolio, level. one a that been of

significant So that expecting operations a impact the over not to have on summer.

Marguerite Nader

think, cash our and consistent Keegan, rates quarter on terms in rates, are think thinking first mortgage touching we in have I rising about think just cash buyers, throughout I community. four buyers you’re our and and and of the portfolio of And XX:XX in pay throughout rapidly the that's XX% I majority our the --

big participant market. not financing the in they're So a

Operator

XX:XX you. Thank

of Our Evercore. comes next Khanal question from Samir

line open. is Your

Samir Khanal

on Hey, Paul -- XX:XX

Marguerite Nader

XX:XX Good morning, Samir.

Samir Khanal

XX:XX Hey, good morning.

to about rate it, that Is to to you expenses I front, quarter. close about here? right on of the know and for talked On sort trying think upward the the run $X the G&A pressure we just million run about forward rate did right going think

Paul Seavey

that It's as our call XX% it range growth about in look staffing primarily over at that well we've investments -- more we’re I technology, basis we and Yes, and combined XX% management a in that the Samir, corporate I combined, the think on and to function the some those think year. think last a I as I think way increase costs. in of property XX:XX about had of,

Samir Khanal

XX:XX year, going not thinking it's will balance the So of you're be kind kind saying? $XX of so be forward, that, million of sort of, lower going the to you're that slightly

Paul Seavey

Right, right. XX:XX

Samir Khanal

saw XX:XX Okay, occupied then from but that? down I about it color the income home down, you looking ELS down were around got this were sites site. some it. total operations, And provide XXX at just the Can rental of rental number think year-over-year, was

Patrick Waite

six quarters, where quarters say let’s renters. in think we've XX:XX Sure, really our it's had increased I Patrick trend the over -- we've last, XX

so to the down were trend part across were purchasing of were So what increasing is opposed and is a our community. in their portfolio current of homeowners to of occupancy or rental there homeowners, are long-term long-term our and are of the who home homes to sales of the quarter in seen business renters decreasing we've renters downsizing down quarter homeowners either either residents almost for upsizing view XX% or X,XXX converting who those and and success rentals, our homeowners, renters the and new -- emphasizing that in used year-over-year roughly home quality to XXX renters as are that overall, current home

Samir Khanal

XX:XX Got much. so it. Thanks

Marguerite Nader

Amir. Thanks, XX:XX

Operator

XX:XX Thank you.

Wes of next Our comes Baird. question from Golladay

open. Your line is

Wes Golladay

go like they I'd is a buy when home Difficulty] them Are to cash just by dependent to go cash comment. back that house curious primary home? with second was largely [Technical that XX:XX on your I these selling is purchases? their

Marguerite Nader

a and years decide and want also visit they now kind down home down It so come just for coming maybe to Midwest kind or rent might North, XX:XX they're of for, have the It’s a with that two-step they rent stay in a the of the will Northeast from their that month resident in North. up a or up beginning, their fee. the a mentioned. will come you know, and generally bit Arizona, to years they couple And Patrick to homes our of make of person a as process, isn't but later us permanent Florida or either buy they five

in So or move primary have various those stages a of that to decision and maybe their in move they little -- -- younger a our bit residents continue down either already on the two, are curve of are of having they're to our residency made residents of it's side. all the if

Wes Golladay

XX:XX balance it now? the at to Okay, thanks occupancy year? at look of at Or the the forward? maybe then occupancy that. a is a right we when push the transient when do buckets. room still of Are occupancy, record combined seasonal lot full in you maybe structurally you for have you look going And And

Paul Seavey

room feeder optimize we portion to think continue transient occupancy, some see a have to sites we lot but business, as as longer-term of our will I strategy I and push overall still wouldn't room, our the a as business. retain XX:XX of that it our to of rental characterize to part

Marguerite Nader

things increased, And level, weekday activity transient low weekdays. coming the basis, I highlighted we've for of that room so we think on camping of from that in has the it's increase have one but the terms XX:XX on the very in still -- in

Wes Golladay

Thanks everyone. it. Got XX:XX

Marguerite Nader

XX:XX Wes. Thanks,

Paul Seavey

XX:XX Thank you.

Operator

XX:XX Thank you.

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

open. Your line is

John Kim

you. XX:XX Thank

for remainder trends quarter, seasonal You year. backdrop. guidance suggest in RV pretty talked a the very the had about the significantly for you But X% to strong the a of deceleration your favorable year

transient this just wondering would I'm this still why the convert -- So wouldn't ability to if see higher seasonal? you why be

Paul Seavey

about if recovered part seasonal and the end XX:XX year, year-over-year. all you'll our of remember a seasonal the it, short that that big first Last year-over-year business I seasonal rent of we quarter. to think in were in comparison is, million the John you We think up in flat $X business.

so we in So that with representing seasonality experienced quarter, our full-year of historically speak, the two-thirds total there to of have XX%, seasonal. is the close first first a recovery, almost to the trend quarter

John Kim

the XX:XX And if as so RV And additional seasonal remind expect what from you in can you customer? -- turnover far us transient seasonal? you typical where to and your conversions rate what as annual do

Paul Seavey

into seeing XX% turnover dependent The going rate I is really we're summer have typical season. with respect a the XX:XX we conversion, what on that conversion to and that think is the

think in driving our we is greater the in fill annual seasonal a talent a our to season gain season when be season greater season -- tends business we'll for the portfolio. winter and I that summer a

Marguerite Nader

guess our where level in in I really an during using properties the northern a resorts that especially in is interested increase pandemic pandemic home, this heightened post resulted And vacation of annuals. which John their XX:XX people in are more home seen or we've the second activity as

John Kim

I Okay. you. got it. XX:XX Thank

Marguerite Nader

John. Thanks, XX:XX

Paul Seavey

XX:XX Thanks.

Operator

XX:XX Thank you.

Anthony next Barclays. Powell Our comes from question of

open. is line Your

Anthony Powell

Hi, at probably XX points rent up growth pretty basis morning. rate guidance Question is year. morning. healthy had was late some from visibility or -- last have It last should you your given on on quarter. have on as increase XX:XX your your good good Question the midpoint to relative

in So drove what guidance? increase that your I'm curious

Paul Seavey

placed to rent in pay to our leases we rates with the are who at are their we an residents, of key have We the rent XX% the making investment home based rents, XX% discussed they as to we they Therefore charge the consistent on our on sent approximately remaining in-place of will walk Patrick the market value the our And and residents, compared subject to are of discretion increased rents long-term the XX:XX appreciation end our our for approximately our rate XX:XX to. land in new have of increases leases We respect we us. and a guidance interplay and market-driven. the exercised maybe XX% Sure, to X.X%. notices April, with charge CPI Anthony. you're setting residents. market current full those circumstances. which that growth have between economic relationships with the previously about process prior of have can through is By decision we referring residents been tied driver Those place and the

Patrick Waite

in in starts rates you the with the Yes, home covers XX:XX our our it’s resident. a establishing single-family of housing a competing business customer we're -- costs, long-term that's And discussions our we're condos and property manufactured those it multi-family, process core know, having submarkets that coming housing Paul monitoring On residents existing others. a a one into our market residents rental they're in communities, shopping home our at when the competing the is in new home and for and to existing of Those that And comparables. described with a market that looking recurring earlier at agreeing the call. they're that's alternatives, XX% they're that year our course which we as turnover and roughly properties as open the Marguerite market purchasing incoming kept are throughout review current pay in mentioned those market, of typically customers that and other rate, mentioned purchase as moving choosing for cash.

Anthony Powell

residents affordability time? that by more XX:XX more driven and guess over [indiscernible] further coming a look your at of see more I to upsides desirability market understand, a rate, product you could and it's new there’s in basically given residents

Marguerite Nader

potentially level in XX:XX true, Yes, that's focused the think I on what's market properties. really that, at the it's those local within happening

Anthony Powell

Thank everyone just on there XX:XX availability, competitive segments. I current was volume you be would I buying I for just can that year-over-year, if willing the market what is the you. understand is transaction environment there it's the curious us mark sell, great? all environment down And people's acquisitions, is, to to guess remind

Marguerite Nader

seen rounds. deal I to year, and new marketed term the auctions, bidding past, in with think highly final This really starting there's Sure. a we've similar what XX:XX is the best including now pattern multiple many

But think I an start have great seeing we're relationships environment the could to throughout consistent the rate to interest demand incentive the But provide sellers. evolving assets. for industry. we

coming deals be as look able to MH, continue in you to we continue we'll close So RV the and and at update quarters. them marina to

Anthony Powell

you. thank right, All XX:XX

Marguerite Nader

XX:XX Anthony. Thank you,

Operator

XX:XX Thank you.

[indiscernible] from Street. Green of comes question next Our

Your line open. is

Unidentified Analyst

interest good rate my the environment on question. Hi, taking the rising everyone, [Technical given as Difficulty] business, MH morning, XX:XX as for now. Difficulty] margins [Technical

[Technical appetite upon what levels? views further the your the So [Technical that is occupancy is to expand Difficulty] Difficulty] -- what

Marguerite Nader

XX:XX [indiscernible] thanks us. for joining

feedback our a little know, as maybe mute on that's don't possible. could we end, think thought if I you I if

Unidentified Analyst

XX:XX Yes.

Marguerite Nader

hear. Can can you you us XX:XX hear okay? [indiscernible]

Unidentified Analyst

Yes. XX:XX

Marguerite Nader

on ability I proven want pools. that operating always a rental say to will operational have But a I but looked we've great. there that we a okay, we a to as we have do would believe to occupancy for certainly scale large rental where we through focus the component [indiscernible], Okay, the the and think increase plan that market sales, shown we to year extent locations. and at the at XX:XX is long way as particular that

adventure our is an B operating times we and other factors pool. make areas difficult to -- kind inability the sell, would there’s in to it some So to of so the sell plan or will have when on we that

Unidentified Analyst

then in that of that Thanks. so cost, That’s you increase And [Technical pass Difficulty] pressure the makes wanted operational to that on cost your cost to ways utility those share you offset, utility sense. to are can XX:XX I customers you on to line? guess I are expenses, seeing

Paul Seavey

we process your of mute able But there do I'll have a to sure to I’m although in full opportunities not the and pursued do that still rents you're respect fewer amount [ph] we XX:XX direct feedback across utilities, if ask, been far -- if opportunities, is past. have line, portfolio separate we there charges resident, to tremendous from whereby coming. some the utility we a they've review and than and There are Robin with our are

to showing do think But want that business. that our quarter recovery we recovery that started regarding the I average. remains historical long-term is that is area with consistent made XX% to refer in potentially focus show, transient we're that the one shorter that in I stays the just I to our overall remarks of term back that

Unidentified Analyst

you. Thank XX:XX

Paul Seavey

Thank XX:XX you.

Marguerite Nader

you, Thank Robin. XX:XX

Operator

for more XX:XX questions on Since line, comments. I’d the to Thank it like time, no there Marguerite you. turn Nader is at closing this back to over

Marguerite Nader

XX:XX Thank NAREIT, you you call. joining you us seeing at to very look for quarter our on Thank and forward We next much. today. updating you

Operator

participating. this ladies conclude XX:XX gentlemen Thank you Thank does and all conference. you, today's

a day. great Have disconnect. now may You

Equity LifeStyle Properties (ELS) 19 Apr 222022 Q1 Earnings call transcript