ELS - Earnings call transcript Q2 2022 | Equity LifeStyle Properties, Inc.

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Operator

Good day, everyone and thank you for joining us to discuss Equity LifeStyle Properties' Second Quarter 2022 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 a question-and-answer session with management relating to the company's earnings release. [Operator Instructions] As a reminder, this call is being recorded. this of may the during in forward-looking discussed meanings the federal matters conference contain call statements Certain securities laws.

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

our financial are the G. time, release, addition, these Reconciliations filings. earnings and In non-GAAP non-GAAP today's included comparable by CEO. and defined financial SEC to turn President we call, Nader, as during to Marguerite GAAP I'd the of measures financial the in discuss measures information our historical supplement will measures SEC to our over like Regulation call our this At

Marguerite Nader

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

of We share FFO normalized core growth year-to-date. continued growth FFO and X.X% operations per X.X% a growth a record strong our with in in quarter the and

cash have often the our quality of We and discussed flow. our portfolio

our on Over demographic trends. focused operations for locations stay expressing positive long-term acquisition a flow our on with with and see basis. us buying desire the high property locations cash of strategy with our We demand from years, a customers quality longer-term in the been key to has

benefit and customers to residents a life an from quality us Our of see of the commitment increased standpoint.

our interest We Florida, are California. well-positioned and and influx key states into of of benefited customer from an and resident Arizona

our MH resulted operating XX% continued share. represents in disciplined Our and with revenue FFO practices, in The communities strong performance, revenue. our topline coupled of per normalized strength from growth

the past interest and in over a two locations seen have We increase our leads heightened years. in

growth. Florida has Over the last seen outsized years, population two

added advantage their northern location. Belt to taking are flexibility as accelerate as the customers Sun well their the of attracted climates. from to technology Our in move They schedules are the

well-positioned of movement. portfolio Our to this take advantage demographic key is

our sales results. is our product the Continued seen for offerings in evidence of demand new home

MH the of in majority new vast sales increase commitment a from watermark XX%. a the entire volume sales Over the commitment our live our this our produced with buyers. in of of were driver That quarter where for as a is We high the Core program, our sold our with residents saw was marina primary homeowners quarter, ELS. pride we XX%. base. in strength homebuyers these X%. of results strong revenue of home cash and stream quarter. have which homes ownership by capital made increased community. increase the increased new our increase of new in results was consistent new long-term XX% increase an our X.X% home The to resident RV driver which portfolio primary During XXX a Florida the This was and annual the sales of of an investment in revenue The over volume

Our provide saw and conversions rates in in market surveys support from we market and an for guests. transient increase seasonal an increase

Florida revenue decline seasonal locations. The portfolio. transient transient the half of customers pickup available well in We number sites and the difficult demand the stays was due on by rate April sites May to north. for transient who saw our some combat difficult the Roughly the grew to weather-related increase by increase key strong as conditions of impacted our in declines. We their to seasonal in the the X.X%. April and revenue in from were a revenue was longer-term reduced Our in able extended weather weather in stays demand has transient the seasonal continued of Strong across demand.

the of Hall our with our a XX more job properties. Travelers' XX properties Awards a demand Fame award TripAdvisor years. high great they properties done June, of Choice or of Our five are received since consecutive announced and operating teams have In received up for in the for have keeping that those

of continued have will customers, the and members safety exceeding dedicated in focus our customers. now to for through service over They the and Paul have to are I done guests team delivering on numbers turn employees. a ELS our to to Our needs it excellent great customer detail. walk job

Paul Seavey

as Marguerite. sheet. everyone. and our third and you, Thank Good results year XXXX and as for I year-to-date, will second discuss the our market review the conditions June quarter highlight assumptions full morning, quarter our well balance for debt guidance

profits in while second and Core noncore the normalized $X.XX delivered reported results our sales we property quarter, and home expected, quarter. FFO expectations the share. For per strong we exceeded volumes operations the

X.X% quarter core points growth second when and period same related Our to rate the to X.X% gains consists MH occupancy basis year. of approximately rent compared of last growth XX

XX% have income year-to-date marina to X.X% quarter rental year-to-date it increases occupancy compared year. an since compared than prior the generated growth the represents occupancy sites more increase in last total year-to-date of marina contributing based points basis XXX XX.X% of growth. to and owners periods quarter We increased X% XXX. increased second RV Annual XXX rental year. rental of RV and for Base approximately and base decreased XX close approximately from December to renters income period, and Core rate with second increased RV in X.X% in while the and in by annuals with income

compared transient to and combined we've prior of increased income. quarter of quarter the increased seasonal to prior pass and during following Thousand quarter recovery Membership our at year-to-date, results was actual first XX% quarter rental second Trails quarter rates Year-to-date, year. growth Demand RV and business respectively, sold resulted a and the for the seasonal dues for of to during approximately the combined approximately offset $XXX,XXX. Camping almost XX.X% revenue compared year, the extended seasonal XXXX. variance range. for Year-to-date, rent included lower-than-expected XX,XXX transient was X.X% memberships. midpoint a better-than-expected the for for The growth, X.X% the range and seasonal second rents of income stays transient the of guidance X% in Our

is a XXXX. of end in represents XX% excluding the second the over same RV XXXX, period second represents a quarter decrease increase count, dealer the X% the quarter of this during X.X% $X,XXX. at membership At our it over the our in member sales during XXXX, While free quarter, purchased was price income income the six X,XXX higher utility year. the second an members of average than than last we second utility rate decrease upgrades and higher-than-expected Also, million expected same Core approximately expense approximately higher compared in trials, time was a other the of in and as X% the the result result our year in X.X% hurricane-related months year-to-date. expense. of the in year. same utility proceeds XXXX. offset that $X.X quarter rate insurance we XX%, quarter The income recovery experienced utility to first other utility and in last Year-to-date, approximately of of property recognized operating Core is was quarter prior growth that

growth number core year we The reflects payroll expense, $XXX,XXX. contractors growth. quarter guidance and was XX employees compared expense increase In the $X maintenance higher is more and engage rate driven than operating landscaping. a for be in and quarter, services Property increase property than electric specifically caused to attributed across growth guidance. expense is to inflationary the third-party in our effects second year modest higher electric percentage maintenance repair on of the of to of the X.X% portfolio. mainly The expense property midpoint and California second quarter second wage operating property rate The additional was Florida expense management cover X.X%. of million increased core and to changes largest the some than our positions. in variance revenues result of our property increased open NOI utility with last the last overtime for Rate contributor points core increases basis expense, approximately In range, summary, before a to

portfolio the For acquired generated assets our X.X% X.X%. $XX.X year-to-date. and was our from generated and the our increased property management results operating recently expectations. reflect with core in long-term period, NOI streams. our property before by $X.X million in by were million revenue strategic line core operations Revenues year-to-date on quarter Income These property revenues focus increased noncore

million X% only period. from operating noncore and transaction contribution and a pursuit XXXX excluding income our were generated quarter. and costs corporate Property the generated of year-to-date of $XX $XX.X property rent. Other for the quarter management net During year-to-date were revenues for expenses, for million the and G&A the expenses of period, million transient second $X.X

quarter with profits, an earnings along and and $X.X press $XX.X for sales restaurant overview was year operations, million period. the $X.X $XX.X quarter and full million and provides ancillary year-to-date million home retail expense approximately release generated for guidance. the second the our Interest related amortization New XXXX The third of and million quarter in year-to-date.

qualified risk and factors our guidance results. future communities. XXXX our my financial mind, information in in RV demand information. is are to As remainder estimates provided, assumptions intended and expense shorter-term the guidance I of the current our the of the by revenue in significant represent supplemental growth release in of press level context provide projections included we've and A provide for factor some range our for are rates and stays our remarks keep All for midpoints in

actual developed have be our We We guidance that conditions to obligation consistent results trends. guidance we change. reservation with based guidance provide and update will no on no as assume assurance current our customer

an FFO $X.XX year year per per range to at FFO of share of midpoint XXXX $X.XX rate represents full normalized the XXXX. to estimated X.X% Full compared growth midpoint is at guidance Our our the share normalized $X.XX.

quarter guidance RV core X.X% growth We Full We core to core the NOI. of X.X%. X.X% expect at rate rate NOI our year NOI and ranges in for year quarter the third of $X.XX range quarter of of annual rents. Full of expect the NOI the is guidance to and to represent a of X.X% growth to normalized MH for year assumes $X.XX. full X.X% increase X.X% share X.X% core per third range for X.X% XX% to in to rent for X.X% the projected midpoint project to FFO range

second no Our the for MH the third guidance second assumed with quarters quarter of in gained the assumptions half include occupancy increase occupancy in and the year. fourth

our expense year. based consolidated Our activity reflects growth level projections expense expectations year-to-date and the of assumptions property for for the of and current review remainder on

decline quarter for make events our guidance incur. As periods assumptions uninsured combined third of and compared a and last to X% losses may The show year transient in we of a storm the no reminder, the midpoints respective assumptions year. we or the XX.X% property growth full for seasonal of for other

third closed second year Our we've additional guidance for acquisitions the quarter no assumptions the of for during the year. acquisition impact and includes and activity in first with the the full quarters,

on other have flow cash debt free markets remainder all we repaid model assumptions comments full of in XXXX. the guidance And regarding balance The to capital use our events expect no makes We in of sheet. and the dates now, with year debt maturity XXXX. or some generate

the a moved were around X.XX% Shortly XX-year X.X%. fixed we that June. $XXX XX the carried we after debt observed at in significant quarter, In rate X.X% capital During began to rate to million XXX out basis for the it loan, rate used previously years. treasuries weighted secured of Proceeds topped markets. The announced middle close that volatility on the a average April repay to before XXXX maturities in we closed of rise. of locked points loan

During varied time new on lending manner behaved capacity spreads we limiting period, but that generally same they similar sources for from loans by in and reactions deals. increasing a noted

and the approximately the face April compares debt shows debt only In of schedule basis XXX REITs. rate around points ELS would that next of if an matures we locked loan the This to XX% for five of with volatility higher comparison, years. closed we likely in over is XX% well-positioned outstanding extreme average our a maturity today. price uncertainty, For

high-quality to In secured RV of fully carries from addition, risk. amortizing rates X% outstanding range debt well pricing. communities, financing assets companies is certain with and express MH lenders. financing XX% XX-year command set as for to terms occupancy percentage with for life Life XX% maturities. companies X.XX% refinancing assets high best though a as MH on capacity interest to some have from terms. limits from High-quality, age-qualified have XX% debt to continue CMBS RV of LTV Current will in and available our access secured no and annual

on balance we importance We have we to us. sources high place of capital to and believe multiple flexibility available sheet continue

is coverage average The and X.Xx secured interest maturity is X.Xx. debt-to-EBITDA debt of years. is outstanding Our weighted our approximately XX our

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

Operator

line the Berenberg. of Our [Operator Instructions] from first comes from question Carl Keegan

KeeganCarl

something function larger? performance Maybe of you first, rental site or RV the the can reconcile a income? just a slower the growth? mix the on what bit help seasonal base it Maybe core drove us Was transient

Paul Seavey

Yes.

in I as we the Keegan, we spend to our its development strong our April interest quarter, what customers quite seasonals of part of time more we we May think demand the stays. in a transient quite was saw, strengthen June, very the terms bit shorter-term into as the through and way and our And weather about on the for that certainly impact And made see business. expected didn't we on the in talked those properties. the

Marguerite Nader

And in comments but mentioned were the Florida longer in they it that my people beneficiaries the time weather period extended north was tough then days I think wanting just I of because Florida, also, which seasonal in which it in to a of for stay seasonal area. we were up the caused

Keegan Carl

one on to just clarify And thing that. it. Got

Or up. more were people are shift transient? week? So is I'm spent the of you less that seeing seasonal how trips the a the sales staying maybe that curious, it's extended parks actually just but stays less function going and I are a into with further and in saw days in

Marguerite Nader

I transient by overall which up think a nights. is additional But day. from and is seeing the is shift seasonal what making that up to annual about transient you're half the slightly

Keegan Carl

just any the on Maybe one were there? then sort weekend? rent July cancellations or X the there And here. elevated kind weaker more it And of the weekend, volume what it. into price? Got maybe Was of to coming particularly drove income

Paul Seavey

customers is end make in their terms XX% window, period. that of we overall, have what -- XX about who when about I seen our with the sorry, look the those the cancellations, advance, the days customers think reservations in booking we think you at reservations represents of when of

or arrival. That days XX% So portion eight we are nine have that a their within significant represents of XX%. making to decision

And property. transient, happening they're time really coming to so dependency weather what's of so with an we've short-term is the that indication that to forth. kind that long But the customer we have talked and as that when frame and about

Keegan Carl

Got it.

So it's Day into going I you that's there's just primarily there's guess weather. seat, going your from And concern anything -- not necessarily then to Labor weekend?

Paul Seavey

the making reservation As who are I eight in comes to nine just those advance. XX% from the of days said, customers revenue

But we're up... Day ways Labor is yes, a So out.

Operator

Lizzy And our next of of Doykan comes question from Bank from the line America.

Lizzy Doykan

XQ? has just I down which of utility these wanted through how the Historically, residents? recovery rate costs that been number What specific just down you utility to a costs? passing you you're understand more if quarter. that to are bit what break pressure measures ticked for to guys the this And taking to could some exactly relieve

Paul Seavey

Yes.

So we our recovery with and focus With but activity, to quarter-to-quarter what definitely just our history consistent in overall, full I of really think saw and the on of is XX% range quarter. it kind we unbundling. the regard focus it's not so midpoint the practices, the really we much on, we long-term year call

we rent in separate and charge get are there expense, the chance to reimbursing in separately are for that the from every the So that them we utility extent that that to essentially. customers charges nature us that are the

factors RV limiting business. for relates to utility transient the us of recovery One in our

very that for that not infrastructure Just of customers. the and period stay, there short-term measure brief is charge activity to those time a

So when able bill have stays those utility not back or those shorter-term we customers annual in RV but are for usage longer-term them stays. are their communities, to

Marguerite Nader

that that find helps standpoint. submetered, also standpoint. a energy we just that an will Lizzy, if helps conservation And less And they from are conservation use people and from

Lizzy Doykan

third the we nature it. demand. expect And as quarter I the fourth we for trending just go given visibility the you of mean, heaviest period second into What for to quarter, half second third bookings? be that the and Got the is the do transient? my Okay. around the quarter do question have into transient

Paul Seavey

Yes.

to to what particularly it guidance, reservation about compared window pace, that I'll in weekend, call really the and to X% looks the our down, that percentage of XXXX, than the mean experience transient about by I in reflect kind a mid-teens that quarter, arrival. third a in is fourth I the those on it's continues and the again, X%. had just combined our advance mentioned years, more over the XX So about seasonal category about and say stays. transient, it, to third the we seasonal ago quarter, seasonal by minute That's of for rents. we of saw XX% represented booking think transient longer-term we of booked the quarter important. pace end third in were in for reservations second of days year. X.X% July X.X% to showing XXXX Transient When pace XX%. growth made the The in the based decline last similar planned pace demand evidenced current But that's quarter

a and step more short-term reservation ago end ahead eight reservations, made as represents the into of that's XX% So to ends that representing those up it in than quarter, arrival, significantly they days we nine representing while up total. kind of because

Operator

comes question from And of ISI. Samir line the our from Evercore next Khanal

Samir Khanal

just conversions I'm much where quantify that. is slowing quantify things -- to deeper here? versus bit not transient we're to guess down forecast the to a here, that there basis last is right? if You I'm dig figure comps I of brought out year, growth over-earned into what little sure related trying way this weather sort points. between are you just by Is you a trying how XXX tougher or to of transient can

Paul Seavey

in exists I had we customers' XXXX certainly variable think set in you the of and to level ability work place comparison I aside I'll XXXX any most think when when live outsized of year, way about they XXXX that in and business. that this of weather year We to terms a But of that to think I drove our the our because about just mean, and And comparison think guess last it, demand. kind -- I maximum you're about you chose. certainly the in flexibility right.

that thing impact. say comparison inflationary I'll other overall last year, to this the The in certainly, year

a there's lot really are gas costs have response think think And I I our it's are I that all we activity potentially discussion prices. customers that year behavior of around that and a to all think we're compared kind is causing to been that of questions and question to the patterns rising think this of or you But relative about continued last their it as as showing pause year. year. and compared all change strength roll base that to to and when XXXX, up

Marguerite Nader

think, annual the the I you that experienced our -- if we've Samir, focus outsized We've -- growth really most And last look I growth, the think have revenue volatility to avoid operating has saw at basis XX-year time, period points annual on quarter. our transient we through But quarters. results of been contributed in when we NOI come a by time, far. has And XX XX seasonal and that continued of stream and the parks periods flat overall the rental seen negative over about, transient that of to RV volatility over the approximately and business you growth. transient over you you think, When growth. then

our of way and So large we results it's not by our driver design the portfolio. built a operating

Samir Khanal

sort a side. to back that at is and Trying today there your the low Okay. increases. point upside you're what get rate I how say, next to X% I mean, XX start pushed more And seeing up inflation what guess, as the that the forecasting Trying let's much push see Got past my is you growth. is to and ability question MH is customers? rate of where over Marguerite, to you're which there from growth I months? guess on is -- well, to given further, next it.

Patrick Waite

Yes. Samir, it's Patrick.

through to X/X to our into CPI Just enter rents of work about of process process. as some and a tie CPI. have budget for XXXX our have impact that reminder, About better as visibility we're way our we we'll the

track tend our large, and pace we of time, MH line an with impact. that I and we're by highlight Yes, given with and has would with going we'll track is very driver Over just keep is with a of So XX,XXX portfolio history, prospectuses do in our our business. to And CPI recognize customers. market that would Based that long-term closely market-driven. the sites market. But to leases expect relationship the we to our And favorably. on extent of tends the role without the Florida in in structure residents that have increases The on -- play CPI they are submarket, have with were Florida, thing very results there. CPI that experienced roughly CPI-linked based leases CPI watch and on be so first-time resulting incidents. a prospectuses our the that XX% does year-to-date, closely rolled and is it so our on rent increases versed surprise about they a the Those it sites increases. to CPI. respect Roughly well have not to impact through X,XXX I --

Marguerite Nader

And is I security be going to helpful that think there increase. social also it's

So that our will as benefit well. customers

Operator

from our question the David of next Toti from And line comes Colliers.

David Toti

terms quickly, to might can is you MH from in next maybe different differences of patterns you sales? that MH from Do the sales expected Just home any comment be single-family which expect housing cycle Marguerite, sales? the cool? differ how And to that on obviously might of expect you

Marguerite Nader

think Florida Florida are our ability a is to market. -- I of really No in XX% about, the sites I think put our high and demand vacant and homes

in product as quarter And is that which We the I our you've increased priced been have really, home that sales. beneficial. seen attractively a we've has think

significantly. positioned sell be well very in were and and sales. we home that good done And So to that sell would I rental to I it's see some their in have decline for able to sell caution in robust would reduced over our homes -- I years. we one that demand to would in continue we've it time thought When see think we've to up position difficult you when the well-positioned a pool ourselves homes, may north, tend could our home thought portfolio. we

confident need we pool, in feel some to is we rental as to the year. there rest So that right But that out increase. the very of look should now, room

David Toti

And with Great. to among volumes? there strategic increased relative price follow-up shifts lower segments, of so forth, and to or meet any Are sensitivity customer changes the one That's just you price of planning points some coming higher your in gasoline, or housing more terms sensitive those helpful. are strategy. around Obviously, product any customers anticipations?

Marguerite Nader

We'll the side on through -- sales costs of the pushing We're -- always from manufacturers. on look MH MH really getting our from that the some we're side. home the

So we'll can always certain look anything that I then -- we to we ways to best maximize manufacturer But then highlight the than our for through -- that get don't pass I everything would customer. that can the now other for that that our have customer. right making to price the

Operator

our question the RBC. next comes of line And Heffern Brad from from

Brad Heffern

demand in you guide Is you this consistent erosion the sort Or the relatively point? I that visibility small down limited transient, largely guess, of day-to-day? are based some the Given of why on seeing forward have at proportion bookings?

Paul Seavey

reservation and practice, our update our I our think, look available the pace we take custom it's based information our historical guidance. on to the time that at that's -- adjust Brad, a at what

practice. we followed our historical So

Brad Heffern

Okay.

the And so something is like X% that's reservation basically just pace that? suggesting that or down

Paul Seavey

right. Right,

Brad Heffern

can businesses? terms And of the it. in acquisition on talk you across just rates you've what the about Got then front, seen Okay. cap

Marguerite Nader

Sure.

kind Oceanside one think Coast. types resorts, Coast, parks. RV rate I on seen perspective the we about cap East from of on a West properties quarter, closed for that's are The And we've a of cap rates purchases in those is of these two in types the X% assets. cap. of blend on line the with So one Both the

Brad Heffern

on Okay. marinas well? And as on any then or color that seen MH anything you've

Marguerite Nader

pricing change haven't the in a -- I cap in think seen that rates noticeable general. for we

the rates in than a I real that, There very are cap haven't with change rates. we in exceptions X% seen somewhere aggressively. age-qualified really to X%. more high-quality, other But cap trading think are MH

Operator

And of Golladay from our comes from Wes question Baird. next the line

Wes Golladay

both over And And confirm up the think missed my lags the you you have XXXX understanding year? CPI It's I will the capture tied to can that just will the you spilling pick event? and guess, And some annual a RV. rent RV. side churn it maybe The of that guess transient I how I in the you softness year a annual and be question end increase any into that. do quick the all for may follow-up up? portfolio maybe either you for on annual see this the MH then you this that? a

Paul Seavey

Yes.

guess I So question the go of process. to part latter I'll our rate terms first of the increase in

residents MH started MH the the On side, first our process we'll XXXX. September, for earlier By Patrick have of increases notices end mentioned, sent as January we've XXXX. our to for rent effective X,

sent. As before, by residents our leases will I have XX% think And XX% of overall remaining a CPI, of tighter of market-driven. our we've reminder, the been our the talked XX% call, time are a about have October earnings notices MH to

a take out. of and look figure kind that we'll So

also of side the XX% It's percentage. It's by RV business, to greater will November. a been rates the On much the have noticed. closer

related significant there's to So the three become next a in rates period XXXX. that effective in this time amount activity months, now, right of setting

Marguerite Nader

we considering the about think only continue miles a -- become there. it transient from cottage and opportunity summer are if you And to northern that from will will to more And from attractive for the location, our the resort we spend properties really their to think I -- that seasonal anticipate home, just have people a attractive. then their that vacation XX transition that an see so we And would just continue annual.

Wes Golladay

that it that Labor we still show being imply to I for sites much how quarter? Would demand then and having Day, that the of when And how then fewer people down? is low guidance, just is the maybe the guess it. because look important digits up? rate to conversions just And mid-single then is that Got for the for of at that, you

Paul Seavey

Yes.

rate rate -- the terms yes, think in increase. of I that right you're

In of be weekend, number the terms holiday contribution. million kind of our weekends the $X-ish for the a impact tend to of

something Labor So Day. for we similar anticipate

Operator

Green John question line And the next from comes Pawlowski of from Street. our

John Pawlowski

quarter second beat have reduction incremental to Paul, you after driven lines Or Is transient? over? concern are XXXX expectations. the by any some business other that solely that revenue guidance the there growth

Paul Seavey

driven by Yes. It's really our business. transient

John Pawlowski

Okay. us remind or during And within turnover recent could then turnover average Maybe the Trails rate, total how attrition change? rate Marguerite, program? Thousand do the soft membership you times, that Paul years historically, economic rate the you and just see then in

Paul Seavey

Yes. inside we of -- have have kind pieces business. -- we well, two we that

rate have the legacy with We attrition them pass is they rate. The higher a cabin members XX%. That the about is attrition members, have and associated about closer XX%. to

legacy that really the that they -- desire we've the their kind of built the seen to their the I memories through with really is have at camp. think membership, decision-making our during and around members, properties legacy on cycles

them at we see our Camp of so the to indicator retention economy. focus so at their changes has of perhaps sensitivity encouraging to in in properties the that than The And more kind membership greatest a as circumstances Pass is economic bit a more on the time. camp because point

Operator

And our Hau of Truist. from from line next question comes Anthony the

Anthony Hau

homeowner rent there is on turnover is mark-to-market a What lot premium today? the when MH the

Paul Seavey

major a for been to XX%. and vary With seeing to driver XX% us to growth we've strong it's going market broadly. that a respect for portfolio. It's of Florida, It's obviously

Marguerite Nader

survey, market those around them single-family multifamily, what of increase out looking components important borne be. market MH community, at that the should happening and and provides in rental, basically, that's the And what's are which

Anthony Hau

up and XX%? will be Do what by you like do year-end? will XX% it think think you And to that number go

Marguerite Nader

I really XX% think up definitely going don't So XX%. or to it's

certain we we're our we basis. relationship look evaluating it a perspective. to want and base in long-term with happening properties a have resident our base on understand monthly make and what's We and at fare at look at I resident it also that from look and our around a that think

Operator

of And comes from our the line next Barclays. Powell from Anthony question

Anthony Powell

a more some with softness? thoughts experiences? this I just baseline just on the maybe have where year? for sense What know alternate right we transient, the to look guess, it rate what quarters, us Actually, some think an that's think be of several maybe -- On what I do driving think you may is impacted business in And do it's you customers? qualitative, guess, it some the the is at on should but as I be Is next availability inflation trying Is above customer of on 'XX run travel going not basis. there? the we the get a you of

Marguerite Nader

in put the inflationary pressures last volatile as Paul areas on to line The men transient line based are It's on decisions. item which pressure deciding, I begin forward walked through, I bookings. or think mean, Yes. incremental there's that all is a people has something item.

seen the year. the I area out us to we've think over what can rest happening the for or this within we is positive. happen best quarters do guess for So we've said of business. lay that particular you've you long on a of But the that what is And our that negative tried and see the last the surprise XX

Anthony Powell

seasonal besides the does they your how next customer maybe on geographic over and and demographically, that what's maybe And differ income And view several just transient similar quarters? in seasonal what origin? the Are not? customer

Marguerite Nader

stays of Texas, XX days and north. spending that with Arizona customer out weather it that because seasonal us good they April the was in group Arizona XX, us, good is so the snow and of up -- getting longer we with birders. with get quarter, in XX, and the Florida, And stay the wasn't into out primary, customer us. good in us cold the saw stay Florida, the South, they're They The they're in with Sure.

Operator

next from question Joseph from our And the line of comes Citi. Nick

Nick Joseph

moved to much and haven't markets. it much the actually would rates before capital It commentary you cap they Marguerite, on I maybe the in about want cap impact Paul's volatility transaction would tie back the sounds your to an that market? rates. they then interest from comments go the would like How much to think need see to -- move rates? you higher impact expect How to to when

Marguerite Nader

It's difficult to that answer question.

bidders really as of did so think seeing six I they have in years the are seeing still number financing decrease back many still bidders to are ago. a potential twice due buyers pulling interested sellers they're environment, as but owners the seen --

So they still very popular. they're like seem

who I a and committed not may move think along. quite an them incentive to interest to rising sellers to could were rate the environment present transaction get maybe that

lot trees the and just just for to more home are know reaching more how who closed demand manufactured high developed don't that wanted timing to really in similar might of I and we think the them. see a XXXX of it the a to of I property just to strong opportunities demand long when a in period was of assets we These park rates built. the was RV a freedom. he the that cap because were his where takes rely be One in and be for change life continue had deals affected. and And quarter seller there

the no really cap in there's rates. change So

Michael Bilerman

transient Bilerman. Marguerite, on and to wanted and couple RVs topics. back just it's explore of just a I Michael come

of the front you of You down is travel. all at of a this air the levels summer. journal breaking look when about alternative little sort travel page bit morning, And talked at

driven travel to I for that their business. the thought you down cars, broken. are in seeing online was travel peak Why if the could their prices are I your air think get off and XX%, people the air was would not car. transient costs bad? travel was experience -- wanted so opposite have that XX% getting have your More gas

Marguerite Nader

I a that there. you're not and going in lot the a to about not sure and flight everything here going we've is you're -- get you're to that take whether talked paper No, and or

there. book better two days days advance in You -- try two to leave to get

So, a should be I that agree that driver.

difficult. at want are are Disney think I that's World are want -- But and they it they for to the at XXXX our from planned the year-over-year comparisons transient significant trip to from XXXX traffic, to people looking and -- do drive go their to Chicago. increases. just some don't have It's Although that comparison where

Operator

Our of comes next UBS. Goldsmith from from line question Michael the

Michael Goldsmith

year? be back Core are is growth inflation? right of expense growing operating slow second half My calls of factors slow year. half. you then of first about rate the way look back of And the back kind question for of expenses the of as the the it? expense the expectations the in in that it help up the the in Like for out, on can to like, half the kind the think Is should in X% what that to quarter. Biden was expense

Paul Seavey

Sure.

quarter level, our the reflect part full the to any So of use guidance, information increase our process in expectations, We updates any identify well year for rapidly we our CPI for property saw we've projection increasing determining that as make in growth. review that. and results year. the remaining our consolidated the then outliers to as that expenses operating our expected expense and so each they for XXXX; periods quarter in to year-to-date our second property refine we the as terms environment the our throughout expense And quarter quarters been of we

reviewing we our million of XXXX terms by other and in latter $X the And incurred to the our we R&M, forecasted deceleration, growth in expect that Now legal, results. last in some half test actual almost also don't recur. utility we of expenses year,

if rates see expense growth you mentioned. deceleration the you'd less So were that adjusted, of that

Michael Goldsmith

the guess helpful. to in perspective. the the In core it. try put up July revenues just I this the weekend question impact year-over-year? were ex weekend into the conversions, season, were is second weekend, transient revenue. Xth those of transient the my surrounding holiday That's Got travel And summer on performance the of

Paul Seavey

revenue core ex Michael, transient conversion... the sorry, I'm

Michael Goldsmith

trying weekends -- X up like it is transient you were XX% surrounding and was by the to which RV among RV out revenues other converted if of were Just of to number But things, some core guess sites, impact understand weather, July of transient were impacted types. -- annual I back Essentially, you've other the to a like seems what conversions? I'm

Paul Seavey

not some that in a transient your have about, are of but talked customer again, question I decision. there been also a is That transient that weather transient pressures, who or the is reason think the the the year there transient before customer factors customer this conversions they the inflationary pace. for their we sole the year to just is as the year last are answer then decline the would impacting wasn't -- factor and impacting the

Operator

This back Marguerite conclude today's the comments. of for to Nader session program. program to I'd question-and-answer the hand like does closing

Marguerite Nader

are in available for today. you We and any you Thank Take have. questions next quarter joining forward you for us to may look updating care.

Operator

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

You now day. Good disconnect. may

Equity LifeStyle Properties (ELS) 19 Jul 222022 Q2 Earnings call transcript