ELS - Earnings call 3 2023 | Equity LifeStyle Properties, Inc.

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Operator

Good day, everyone, and thank you all for joining us to discuss Equity LifeStyle Properties Third Quarter 2023 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. reminder, is a recorded. As Instructions] this being call [Operator

may this statements federal Certain during call securities contain the matters discussed of conference forward-looking meanings in laws. the

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

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

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

Marguerite Nader

quarter streams continue to us of Good I results. results to sheet am of morning, and our quality balance to pleased us third the XXXX. our of the thank and The for strength revenue joining impressive report today. report allow the you for

portfolio occupied. is Our XX% approximately MH

the have Year-to-date, in We approximately in new new -- been increase and Year-to-date, communities in Arizona. continued for our for sales XX% homes. increase new homeowners the new XX% had have or home in Florida XX%. has mark-to-market been success quarter rent selling rent home

of selling currently team done exceptional of inventory our an Our near portfolio. and we in has are record homes available job at rental levels low

housing Our communities limited with market availability single-family a continues and a to offer price amid an purchase affordable option home high points. to

broader housing housing are RV to our with rising third homebuyers year. highlight our affordability by generated marina and increased quarter the of These national RV Today's homes that X% enhanced annual appeal compared trends our of is national grappling the of and a X/X driven homeowners. headlines revenue mortgage prospective customers. rates. annual Core marina for from last and have of communities lack income affordable

site reducing transient properties and the increase availability destruction. for an usage, and site seasonal in by was revenue quarter impacted annual weather-related Core

campaign, and reach expand year our with RV advertising of content, This boost members, of platforms, Day and we XXX Facebook. million which our partnerships Memorial prospects. TikTok, between media guests experienced social media impressions, Instagram ninth our Labor strategy camping The targeted engaging time leverages recorded marketing and the social and Day. celebrates XX the across customer highest days including Our to have engagement was campaign the ever summer and

demand anticipate Turning increase we sending to average anticipate X.X%. notices our year. increased XXXX. an have approximately of of portfolio, rent We XX% next our continued XXXX Within growth rent MH residents. rate to These notes MH into

rates an sites. XX% For rate The our rate increases annual of annual annual for RV of set our portfolio, RV have have we average growth X%.

and snowbird the Florida to guests Our for season. to Arizona head residents and back anxious are

on for focus Our and teams arrival are their providing we'll prepared to outstanding customer service. continue

year their this to would for our our like members and team thank all efforts guests. I support residents to

will turn I the operations. Patrick provide over on call portfolio to now to our further details

Patrick Waite

Marguerite. Thanks,

annual marina wind we our some total from resins the winter in into RV down and our I color As of additional summer properties. $X.X move on drivers XX% and revenue that to MH provide Sunbelt our of of our the wanted billion guests season, and comes season

or XX% typically Consistently with the high-quality long-term a increasing XX of occupancy more. of achieved years, trend has is driver our Today, with homeowners. business, are who portfolio through homeowners been the key a nearly by our MH us of years occupancy

markets portfolio. MH of horn representing collectively I'll our summary XX% around on do those a the

historical are E-submarkets Palm directly in Beach, leading Florida see our trends. demand Florida First, like the and and occupancy net Peak and is XX%. for and migration Clearwater with consistent Lauderdale St. Tampa, like West most in which Fort West is we markets state

the top Florida New and among migration. Jersey York, the Massachusetts, some New leading mainly which comes are from But U.S., of East out in Northeast states

comes the Florida are West Illinois from also migration. states in Minnesota, Midwest, like leading demand and on which While

our program. more an for sites this occupancy, MH have Florida in including to demand, pipeline. opportunity developed we X,XXX more continue the than We to expansion and XXX MH have grow development than Given sites in

last new consistent homes X,XXX Over we X Florida, sold have more years, demand. the than indicating in

Our Arizona. through portfolios as as we to markets run largest and homeowners, expansions. rental have XX% are next occupied, are opportunities rate and occupancy California convert increased to homes well Those marginally growth

from homes, MH over X,XXX years, quality new meeting last important for Portfolio-wide occupancy enhancing sold X demand we've by homebuyers. of the

marina Moving businesses. on and to the RV

MH that XX the added Over RV with and last a similarly revenue to years, focus portfolio behave we our annual marinas streams the portfolio. to long-term on

in are RV and Coastal marinas Florida Carolinas. And Sunbelt are our locations. Our predominantly located properties mostly Coastal

especially out season, demand consistent our the core from continue summer of RVers, our guests. annual see we Coming to

the noted is in our approximately XXXX annuals release, average rate guidance rate for press for And perspective, annual As $XXX month. X%. RV is a RV

translates options. X% to customers, for increase a relatively their $XX valuing leisure the So a long-term annual reasonable month or amount

XX% portfolio, maintain marina both launches been of marina consistent long-term the evidencing our have and year-over-year, from continued to demand we occupancy For consistent customers. have

results Those at revenues. and property quality of and drivers with the as vertical they represent of Together, are more our ELS. operating highlights property MH, on detail marina revenue market the RV on portfolio well highest some the as than the revenue streams XX% our annual

the over results Paul in to it through turn now detail. I'll to walk

Paul Seavey

in third for conditions. provide Thank XXXX a comments and included with and results I'll sheet the summary our some guidance year balance information assumptions close some model year-to-date everyone. the the for of debt you, September and our quarter our provide updated on morning, full market about good Patrick, periods, and

same year-to-date reported we X.X% and in In respectively. X.X% increased $X.XX share the rent and year. MH the last and quarter per quarter compared period year-to-date third to our release, Core $X.XX, earnings normalized of third FFO

approximately as increases to a Rent growth resident our quarter new moves on X.X% mark-to-market in-place result XX% turnover in the includes our third of rent residents a growth in. and rate when

approximately marina the occupancy the compared approximately represents year-to-date points Annual prior with X.X% quarter and XX X.X% to marina basis RV annual XX% and customers core combined year. generated from X% in of increased Rent contributing the to and our RV in Core growth seasonal portfolio -- increases period, transient close base and rent core of third growth. revenue. basis on a rent year-to-date in

and rent to we've seasonal stays. year. combined rent X.X% longer-term X.X% as the a year-to-date, offsetting compared of experienced increased decline weather seasonal decreased increasing Core approximately of prior transient usage period in transient challenging site year-to-date Core some for result patterns and the

Membership dues increased X% the year-to-date revenue period. in

we recovery period, while quarter, the the other million associated utility the utility sites the rate X,XXX approximately somewhat income leased X.X% to period. core includes and last of offsetting third XX.X% same for volume during Florida Year-to-date, increased in in sale sold Camping income year-to-date to Trails year, average year-to-date Membership upgrade lower Total with our XX%. Fort year. is Pass the the displaced Thousand During in than period. the was expense. in X a approximately utility XX% price XX% slightly in compared memberships. sales provide approximately Utility quarter residents revenue income months increased housing $X.X of first X% increase during Other last increased Myers,

during in line operating expenses third quarter. the expectations were property with Core

and in items, to August and increased our basis. conditions favorability line expense and wet favorable was utility quarter September. for were the payroll third Utility combined the forecast of largest across a year the Northeast and and relatively mainly expense Midwest on result X.X% X over prior cool Our

areas in for below or The those XX-day long-term months mean at average. temperatures those were the

areas addition, XXXX. same many in in levels expense third X.X% record period rainfall. lower the In the of quarter experienced of Payroll Northeast was the than

staffing to on rationalizing Our team property meet focused remains operations demand. customer

expense Repairs to heavy and utility cost periods quarter across related expense incurred relative of the local the We brief storm events maintenance rainfall. portfolio, tree elevated to primarily cleanup our and systems was expectations. removal operate on-site during in to to

of core year-to-date property core X.X%. to NOI of growth and before increase core revenue growth property property operating Our an expense in operating X.X% X.X% contributed of management

guidance for continually XXXX, promoting As I topics like the some highlight quo approach challenging status I'd well-established remainder to which to illustrate business, our to switch involves innovation. initiatives of that managing our and the discuss

historical on to quarter trends continue Over the on focus strategic process the data. impressive objectives. and results weather enable focused and innovations we years, generates enhancements other housing many available after staffing that we've employee publicly data, These our that day-to-day improvements automation market-driven reporting as include and quarter implemented decision-making

and release press of XXXX year an provides overview quarter earnings fourth full guidance. The

share Our per to long-standing range. of practice has end been the of range from to report $X.XX high quarterly with guidance a low

guidance at per with in result, a a quarter guidance year $X.XX As each we year, we full this report year X similar time, only range. full report the guidance share year, when with remaining

range and release information and factors growth represent mind keep financial provide provided, qualified provide are included the rates estimate projections by of I remarks we've supplemental our context revenue information. current some press our intended for my and in midpoints guidance As in expense to future results. All the our and risk are in

our on will consistent was communities Our no fourth update actual change. obligation quarter developed assurance trends. with reservation guidance results assumption as for to stays guidance in RV guidance, current conditions our our based provide we be assume that We no and customer shorter-term

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

quarter in of $X.XX to expect the $X.XX. share range normalized We FFO per fourth

a guidance the NOI. to projected NOI year X.X% midpoint range core core quarter X.X% our X.X%. increase to for expect project represent of almost rate and X.X% NOI is XX% core quarter NOI the the fourth growth year for Full at of range X.X% to to full We of of

of Full for to year growth rents. for ranges MH annual the RV guidance X.X% core X% X.X% assumes to rent in and X.X%

in Our occupancy for increase MH assumed guidance the gained with fourth in include fourth quarter third the quarter. no the quarter assumptions occupancy

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

decline X.X% decline year no events make fourth last for of storm we may for seasonal of assumptions reminder, for assumptions full periods combined a transient the and our a to a compared midpoints in the As The quarter guidance occur. of the year. show and X.X% that respective

year before includes for year-end. acquisitions fourth quarter closing and guidance Our no for assumption the full

full capital in model year to or the XXXX. events the The of other we free assumptions expect guidance remainder generate regarding no of makes cash flow use

call the market our questions, open balance sheet I'll we Before current and debt for conditions. discuss up

maturity of years. outstanding next debt our well of the is to for over schedule an a total years. approximately debt debt next X with that balance XX% over the of Our extremely debt next total XX% XX% REITs the X and around outstanding maturity compares sheet approximately matures years, X This shows over matures positioned our average

of in our year of no carries more fully outstanding debt XX% outstanding $XXX matures. addition, is we refinancing no schedule our amortizing have million And and In with secured debt risk. than

assets RV for range XX% and Current to XX-year MH LTV terms maturities. from secured debt X% from rates X.XX% XX% to available for with

High-quality, best access age-qualified and MH interest on CMBS occupancy as with will though a to of set in as to companies from command RV capacity have life assets financing have high well financing express some communities, Life certain continue companies limits pricing. high-quality lenders. annual percentage terms.

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

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

we to up for the would Now call like open questions.

Operator

of first comes question America. of line Bank Josh with Instructions] Our from Dennerlein [Operator the

Joshua Dennerlein

of the manufactured out Just kind of curious set on into just CPI remind send housing that? framework a all growth notices? Or timing the sending the the us on of at other that that what's function appreciate rate the factors you're time? when you out. XXXX of Could you XX% color for And Is you other rate rate? of on go it I then the -- the what how

Patrick Waite

Yes, Patrick. Josh, it's

be by in As his Paul increases will half covered sent the this time. commentary, about out

the we're been the hit by have noticed effect. into and of So the we go the -- quarter, first increases majority time rent

go balance we that year, year. extent through the it we then to the that that mostly ratable. a out through And there CPI-based of update process. extent a markets We'll as the move accordingly. of extent view And there we Over right the as it rate now To will CPI our the quarter-by-quarter. update budget have are it's to that appropriate market revisit increases, notices we'll the course lease, go you those to feel it's that likely is the updated reference

Joshua Dennerlein

too. us questions I appreciate of Is that, framework lot as any on we like you pretty of a like get forward, line provide any color effects? X, then And there of look can OpEx. just I can base Patrick. your insurance pieces kind as any kind I know renewal or And kind know of topical. far insurance is item, then booth you as April I moving

Patrick Waite

a we with would the utility forward -- moderation what expenses seen the view quarter I -- quarter rates. third XXXX, on quarter guess, in in respect and into second into I have also to Josh, say

respect the transient We to demand the also payroll, have variable demand, flex seen that payroll obviously, to based in ability have with the properties RV on our properties primarily. that

to the more to we going that a now. would respect to moment, With utilities the go-forward a seeing think level basis, on a -- steady what for back probably see we're I

So we the were third growth the about moderated that further second of X% the end at in quarter. at quarter

would that continuing. anticipate And so I think we

The R&M. is I'll on last touch thing

for of in easing labor remarks, of in think as think the I that of at that I for there in properties last well of that the seen couple but terms my opening mentioned pressure we've maintenance contract local as -- weather some is cost our supplies. events years I that the

Marguerite Nader

And respect year. property on our as you policies then, to next level X insurance, of renew with out, point insurance Josh, April

So months experience left behind we us X have of months to X go.

So have this far, but year year. claims only XX% the has through we're been experienced good,

So into in and XXXX to brokers a January able our our incorporate we'll better guide. meet with after we have idea be

Operator

comes question with line the Feldman James Wells from of next Our Fargo.

James Feldman

opportunity just want entities. So guess talking a about lot I investors big I here. for picture been think the kind to with private of recapitalization of We've

space, You've -- capital Windows in one forever. better got don't the cost stay open of last open forever. of the don't don't opportunities

might past, impairments, of bank couple where is of trade might do work to buy have your kind lot remains where pretty your where hard are a how what on you how you could years? opportunity? a able returns. capital? stuff and the those head I assets I balance next picture, find in on we'll know you've and cost guess over focus of Just we sheet, of to the window at you just communities. about here thinking this it's long and you like or really be see But big where expanding put to window capital of see your think open to this What's to kind year attractive you said

Marguerite Nader

Sure.

really deliberate ELS's on in -- stable long-term focus my our years obviously, cash We've in meets think -- of annual with want the on So portfolio. the is the focus own needs over our flow, destination really adding who like own so it years to very and the portfolio many been we the business and MH Americans their to RV a business. home We it -- the a vacation in location.

the work as eye business want We to to that portfolio assets an grow unique there's fact reasons, we own, think for do with the great with continue a supply. know we'll no lot And same MH owners that and have new to of because flow buying of towards characteristics existing portfolio. is really properties the we our the cash really and it's our

with line the approach our business. disciplined we've to growing keeping be always we'll think in I what and So done

James Feldman

so of contacts, commentary West is coming then mean and mean are up Coast. work both how markets to the the That's on insurance keeps That's over in the going there's helpful. around even that that I balance industry you to where in how or estate staying Coast being commercial East about X you this long market putting Florida on our of going the Florida real fresh scratching and term. think do those strong, work Florida ahead forward. markets? And when capital real to I speaking Okay. people even some questions your

Marguerite Nader

that to and so we people Northeast get the we've just come experience to of what and that and affordable the Midwest, have out out demand is the to the for continuing. to I Florida of is strong think get lifestyle seen see we

that large while have As insurance. our of we insurance as keep insurance an who who homeowners kind it over have as far homeowners, not our relates we the idea doesn't, residents and residents, a our to of track of don't percentage has years,

James Feldman

next commercial I know of but just of that just rates year, think you itself insurance you find work out? your you are the then in terms side, comfortable guess kind until going? on out you April And like don't where estate real said I it'll

Marguerite Nader

I in certainly, claims months, experience big our is our over renewal is know, going a last think I we'll few what to be Well, as said be. to the factor going

just So as experience renewal. I have but far we go before to the more mentioned, we've so good months had this claim year, still

Operator

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

John Kim

Your MH rate 'XX growth.

achieve quarter. and third Now the security to Or base rate you that just able in in that confident only? can And that X.X% you of really that stalled any wins X.X% are on pass-through the X.X% remaining social expenses. have lending came the leases? remind is and that us, on How of push include change cost you're adjustment at the out multifamily does

Paul Seavey

rate. January. So base the residents does in upon and leases to would in-place the It moved X.X% include go that is market on the they in understanding renewal assumed that

it that of Patrick we've But more does impact think for talked some I include has XX% color. residents. So the the mark-to-market those about

Patrick Waite

Yes.

we John, literally review our includes of property So review other home other communities, worked the and but manufactured the as direct that submarkets. respective property way competitive a process, our through in a only competitive not and set, housing by in submarkets budget those

in a cost one touched very on, to just our our we locations. Marguerite As of moving and with respect gets the to compare favorably value that the resident all-in communities

through So point the while as CPI. our -- fair way a worked it's we in the

in that XXX to kind historical the And points. that just to basis that we're We're were through Paul -- going our with residents. point long-term mark-to-market to the particularly increases, XXX with we basis kind as mind have been for has increases, XXX as historically our to working we respect XXX spread rate where of to set were range CPI of in Our front spread referenced. did in-place we in

it's and good proposition that those rents will through. pretty feel So we value confident a that come

John Kim

the of sense of or Any the marinas? quantum no increases timing in rate

Patrick Waite

The of over the marinas year. course ratable the are basically

over through come they'll So quarter quarter. by the

Paul Seavey

are annual included marina John, quoted renewals, RV in And those that X% the annual rent. we for the

Operator

next Our from Citi. the Wolfe line Eric with of comes question

Eric Wolfe

increase you're of driving an to to well it's your in a in increase RV growth X%. annual looks as I think It those? What's from guiding XQ as sequential X.X% like FFO in both

Paul Seavey

Yes.

'XX, about quarter think of you when happened kind have that Eric, the think, 'XX. of to all the in fourth fourth quarter I remember of

respect RV, loss first. 'XX. Really, in take the Ian benefit is to we're of are the that following with what quarter in quarter. occupancy effective that So that the primarily That's also that's in it year. impact fourth rate QX I'll from is contribution of of fourth 'XX The seeing the Hurricane is. increases there the what the some we of last in coming gained

the terms million contribution, And the didn't then I noncore year-over-year change, year at about of in from that's look the noncore properties have. there's when coming FFO this we $X that

-- We we we and of some were then contribution had some the adjustments. following hurricane not offline business from from 'XX most locations. in sorry, And 'XX X acquisitions that have contribution and properties last as NOI, any did any as onetime were well year not did that generate those on that -- interruption had

number year. that make this were a comp of a last were favorable things that the happening in fourth quarter there of year So

Eric Wolfe

which as assuming think business Do referenced we for this adjustments thinking NOI any we [indiscernible] sort very this with those insurance how And the And a onetime guess XXXX, going from we are I sort into there year. interruption next then of rate X you that That's next that should in there that of about make the model showing you proceeds or can meaning is you're that the fourth guess for it. ago, for any second should things use run that Got base a other good to year you grow I properties. into quarter. total a helpful. year

Paul Seavey

interruption switch bit the specifically, that think it's the little will receiving part Yes. the from the maybe just when into quarter business because periods. noncore I at from we a year. about Returning And mean interruption was that those properties for next have business that in we of offline were do outperformance challenging core properties properties I prior third noncore time year that are the to operations mentioned. the last you same

issue receipt of So the timing we interruption of we've before this cash. the terms have that about business talked in

taper will will those operations. that to properties think and return I normal off

really what expecting year. that's we're So next

Operator

Our next with question from RBC. the of Brad line Heffern comes

Brad Heffern

on Just when proceeds kind the having BI the from you where as a the on or cross over? prior In position a does little you're fourth over-earning quarter, that's business follow-up to maybe bit periods that in of are Or a getting that same question interruption. positive impact earnings? last

Paul Seavey

fourth Florida. the the I for lighter summer think bit little season fourth quarter to is the a looks because properties quarter back in

so So of speak, out, fourth quarter. itself it kind the in evens to

Brad Heffern

the have it. a the Got for there that not? Okay. And noticed are XX% of has already, is been of Or the is difference then MH in other priced? those that XX% how communities that representative

Paul Seavey

to the bit about. talked tend January Those we've renewals. a weighted to heavily It's more long-term agreements have little that

mentioned XXXX. call, impact XX% So of influence we CPI move market Patrick the as the greater the in have increases, through the as rest they during of the in earlier the

Brad Heffern

the would just through is currently of be you're seeing is talk then if I wondering no, suspect cap you're you cost color And Xs. in could But Okay. great. anything there transacting, any if across rates saying it. I what was Got is debt that if And business? the answer the

Marguerite Nader

Certainly.

this in we industry, kind owners as sales. from lot of become stress of all refinancing seen So transactions. in point, outbound efforts a a connected as continuing well owners, at waiting distressed haven't them to We lot terms with an really as sellers. Up of deals staying been all haven't look there or of to of for marketed our

think before a I really activity. on will pickup the the that in turn calendar really I page there's

lot a to difficult it's when So cap haven't quote of rates really transactions. just been there

Operator

with the Evercore. next Our from of question line Samir Khanal comes

Samir Khanal

last of at math, thinking for Paul the year X business, you X% guess year now. how it's do next quarters you're sort growth that are of COVID or down hard sort that year? into do may when mean, you been picture, seasonal about for sort turns I earned you have couple segment Or you of to seasonal/transient another the did model year? still look of sort think of you I where been sort next giving back big that's the that the years? year about kind It's what over do of here. Marguerite, of I positive think you that's over

Paul Seavey

I guess thinking about XX% quarter. for the a seasonal. the those What month we're seeing quarter is When of comes that look in revenue the talk comes the and roughly seasonal, and to the minute. month XX% particularly December. October just of you in the fourth third seasonal at of in I'll rent

you'll months are business for the have and that historically we and remember had by customers the it's to seasonal quarter significant quarter, be the winter the been we first that driven spending biggest quarter, in that and the in has those the continues And first South. growth

activity pandemic was the modest, summer other growth. the it a we the was in or parts month country during That South during What the did a months. contributor of but experience in even was that of more activity was or

demand historical business, leveling to XXXX. XXXX, leading of quarters a first that's XXXX. kind return with into off degree the strong primarily to that that I our and think what think in I see for we'll And the seasonal which is fourth we a business, saw for

Marguerite Nader

about to how lot. we heavily business a lot to we We've it's respect too dependent is business for focus would early talk think with weather. XXXX, about where talked transient transient the on And a

guidance that when into report January and to So out, in project 'XX. we'll go year we a obviously, have that's clarification difficult we as but our -- provide on better for

Samir Khanal

guidance that, follow-up know of way as you a to off but year. year, at think haven't transient right? in for terms kind because, down you to change of seasonal the be will I up, the you number there that provided X% now you're So the I and guidance, I look I and when mean, you expecting were sort be slightly again, in guess a of that, started

of January? thinking as or going mentality into I'm next guidance about to you're get as year there sort in So is change think a you provide you how

Paul Seavey

view there's the continue perform. my is guess on I that business expectation to it an we across

there's said, that specific great business deal to transient Marguerite variability of from the a comes weather. As

I expectation has growth, been, growth I we enter transient we don't has see to reason would think that mid-single-digit thought change of that basis. a of on level our low that an as kind business a historical for that, or annual baseline a year that modest -- practice.

we'll stream, which, about will think have total that historically provide as revenue again, of that I we updates basis a on quarterly X% we on represents continue our and revenues.

Operator

question next Our comes Powell with line Barclays. from Anthony of the

Anthony Powell

on RV. one more Maybe transient

and just any any commentary weakening? be strip demand would in how impact relative site Just great. see directional out you any of weather did If improvement, the impact conversions, quarter in of you the -- the trend also Do to earlier the year?

Paul Seavey

what for increases in to think properties. that support through to demand would point customers again, if as the overall think that I to going north, stays we for the our in I qualify mean, from put I it the that weather, demand. by saw ability in is And rates I we're

transient when increase time the in would I to is ability weather nightly achieve our even in stays So to. a the properties those challenging our indicator rates and look is that

Anthony Powell

in compare like XX% homeowners. And MH that any overall? one do maybe It you And seems history? How about how that more business is increase business. supporter pretty to segment good higher? even growth does push And new Perfect. a opportunity that in in rent your of think to to on there the

So I time. wanted to see kind of should how over trend that

Patrick Waite

higher demand period setting over evidenced record locations, demand, level by, really and increases a sales, rate of stage CPI the over over been including you are from years. and customers our last the So comp level But moderating. been set right? in rate start increases last Well, of home higher which of has about been We've been guess, just the through couple base that Yes. the market the Sunbelt. higher That's our I think me years. our new have the for of for couple let the properties couple been years, if particularly especially of last higher, high have

changed more, the is think our summarized. resident high into we've us of demand right, of those typically periods CPI. escalated in years call long-term is or hasn't to XX And But XX%, what the, And range, increase Paul about the reason and it, that market of that which way. kind through on or you a XX% come there's to customers if base lease, bump our high number that's any why turnover, is with net because an turnover meaningful loss embedded

to time, that over to the has seeing And market X% call now. to to expect digits tend historically, would opposed it, been, the market we're in to double that bump to moderate. as range I bump that So X%

Anthony Powell

Okay.

So over market maybe moderate how a bump that would Is next be moderate? something that that great. should the to time year just frame quickly will or

Patrick Waite

in on head I don't know that base an turnover quickly, the basis. my math basic I our can annual a how would do XX% have we in but be construct resident

moderate would over it time. So

Operator

Wolfe comes Our of from the next question line Research. Carl with Keegan

Keegan Carl

start going basis to the guess, trending portfolio. occupancy points in it your core higher? that year-over-year take is What's to get MH number first, to I down XX

Patrick Waite

XXX submarkets Florida, comments, putting a little that of high and my units in we'll start context demand. just are stock. in seeing replenishing from Ian, consistent Well, let of opening that bit touched housing roughly I have headwinds period very And as there, through we still by of a on me work those Hurricane

little XX reflective would occupancy business. the or units forward increased we out saw to historical And expect at the increases just of start that see a equation that you're looking quarter. taking of going are I XXXX, net that over in more you to to the So

Marguerite Nader

over are XX% to properties a think I it's stay And of making to a and out our number been point -- that for making long-term just years. XX% important commitment in are of occupied, customers residents community. the have These our are

properties XX-plus for fully seen periods of So we've time, occupied years. long stay

Keegan Carl

it's to slowing gears shifting then obviously, sales. home And down. I mean,

sales home queries interesting if be you're think curious I'm the the to see something to home sales sales of lack because opposed in it is seem that leveling But new or declining. I the used home to as there's existing out thereof. kind seeing else the

Marguerite Nader

available just is of sales home have. inventory used a function we The Yes. what

selling demand it's of property. not more, be function If a we had So really we'd the more. at

So just new sales pre but the the key I back home levels, is strong very on demand, moderating used side. And the really our to of way think COVID home markets. in that's it especially

Operator

Our next Truist. line with Anthony question from comes the Hau of

Anthony Hau

the the is that decline? what's slowdown? color sales Can also this down is is this little is quarter. Or noticed camping a it cabin driving more membership provide TTC TTC pass? again this which pass? experiencing on pass year, and Is the down XX% And bit it you I

Marguerite Nader

It's reduction the camping path. We've seen RV activations. in a dealer

a from point we've seen reduced I XX% then also which about property sale decline coming at of a And at think decline it's means in the RV activation, it's activity the the to due dealer. level. transient

So if there's through, in not reduction just a people you see sales. a coming lot of

Anthony Hau

with these using like data talk using reports automated Got guys you. using are weren't And that Can can are data? you how helping also what you are before? you historical market-driven -- decision-making? How weather provide publicly guys like you available closing the like about you

Paul Seavey

Well, Anthony, enhance over on mentioning kind years, the using we've was done that reporting. want to that that. it's to clear the not of before. things we our I it I weren't be

as that out that in that and we about patterns, as depending as our we've we them of the of implemented sales of might are properties. Those mentioned, reporting So and we'll around on commentary of amount take weather used, to enhancements in I of the to that just of and years weather by data forth. are the in I the remarks, our of going information to so I'll the kind focus, our so. And had weather in to a weekend those share nice the some operations decisions the impact locations way the or target as forecast my drive direct weather to flows the patterns, just marketing and regular and marketing, historical have activity the year. example, internally That's the is to how rainfall to our leaders be customers team far visit -- encourage continue to communicate with the time over where when do how our the one to reporting example

Marguerite Nader

sale. e-mail posts sales improve kind develop available our website, for our to home media time. social that we're could the of homes we've -- using of we within that AI kind And also descriptions are headlines also And alternate use seen strengthen and of that performance, and well work over

Anthony Hau

I as that that then impression, those the Like we costs your driving this you what that mentioned on think is Great. what the like And on leads? year. about like impression click-through should down is like how Like rate media, number? rate Is per conversion XX marketing also you think social well? million had

Marguerite Nader

are Yes. seen. our was total I I the look number the at is mean way would times impressions content really it just of the

So get see in really target positive time, of increase that our over that us. and message our for out so measures ability front And we to that's gauge a it audience. we our

of a increasingly ends goal, have our what overall the of course, to where over number up through it's XX% center or high click-throughs of time, focus call online which activity. booked that's increased is. And reservation, it's and and the now So reservations being an the we our what then significantly are is

Operator

Our Green of line Street. the next comes Pawlowski with John question from

John Pawlowski

follow-up retention sales? camping as a there. upgrade membership levels. revenues I was membership curious business near-term the to the Can annual speak in membership you towards question declines in normalizes and trends just expect demand you as pre-COVID to Do the

Marguerite Nader

Yes.

with we their is our camping that we journey that kind as It pass still to offer think an low-cost really camping demand us. strong of for I our very a incentive see product. product start members to

as head strong see stopping I see that we year. into don't we demand. So next

of -- moderation I of believe very result just strong. a happened kind COVID think But post in it's is environment. the there that I still that as

John Pawlowski

right, the not second I should the we MH of higher that the expect increases a sure Okay. the I because rate the mark-to-market and first Did Paul, I'm Is accurate? on X.X%. than one And of XX% then stays the represented portfolio. elevated total at about question that longer-term to X.X% understood batch the interpret response was batch the first to lower be it the

Paul Seavey

X to during XXXX existing it's go remaining specific assume Florida, renews. turnover Well, market I in think you occurred those and lease lease, when things increases their -- the so that Florida, those those January residents happening. in on the for can term for to they'll of One, have

So that cohort is moving to market come January X.

well. During mark-to-market XXXX in states, we'll as a other see

So we'll have of benefit the that.

was more toward is The that other X. I the long-term agreements January heavily weighted thing saying are

given is than and market have now. CPI -- increase CPI right to lower tend a the the increases, actually that So those where average

So balancing X little of bit factors. a a between those

So of I would anticipate consistency a level year. relative across the

Marguerite Nader

type the John, think, if you I at the the basically information look last and time, same And this is just year of same. at portfolio given

that of If Paul and year kind a similar you look this see out year-over-year, is to at that played take what saying. -- how

John Pawlowski

Makes you seasonal share quarter quarter RV Okay. sense. for the compared first ago. year and bookings just a to one Last how for fourth Can me. the

Paul Seavey

the But year the in a of -- I in of ago, seeing say in to seasonal have fourth mentioned that activity the front month Compared what earlier, builds that the we're percentage each as don't can me, for quarter. John. terms is I I

the or move And a over that part the of out that us in quarter. month that increasing country we move first time those that season, the pace customers the northern into are southern and of season, we period. following see as longer toward And increase that with

Operator

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

Michael Goldsmith

different right? the setup Am it a more up marketing talked was just a particularly to a creates that favorable off was is in transient that. this less for wrap season of the because of up about to weaker conversational We things driven I transient forecasting -- potentially sum interpreting just But and weather. Maybe guess I that favorable lot and weather XXXX.

Paul Seavey

this the next obviously that was challenging extremely How it's out year. very weather is year yes, think I pretty next entirely on it dependent plays weather was patterns clear summer. in XXXX. an year But challenging that the

Michael Goldsmith

forward? for like you And going to the my getting you to that the from of this up, rent trying pieces most as conversations year, expenses elevated. able trying wondering XXXX environment, up, for kind I'm kind areas are a hard how as the if there on are moderating had to pushback are residents is you've of rents size understanding CPI question were the follow-up is insurance just last push costs like and residents to of were this moving -- but residents reacted continue ability costs the about increases. where expenses was -- better understand to with elevated Are weren't I'm residents. to I the to rent outpace

Paul Seavey

historical with me and and homeowners a there's have similar start out, have before referenced particularly just that residents the our associations. practices up by rate a we'll with And a let that increases. conversations it's well-organized in historical Well, to our be to Yes. saying discussion and of gone more rates a statutory there's shaping Florida, very recently kind process of I for review feedback.

our We to for properties the rent on opportunity resident in broader and a have base priorities homeowners take the that increase. with addition conversation to

full our with it's typical view. process experience. so So little in historical But pretty give a to what's is early you a the far shaping up

Michael Goldsmith

quite Did you the then in me. and commences takes I that? XX% that think And of for bit We over clarification over start which XXXX. increase, properties kind a are final turning -- it. receive a Got are getting about of of talked percentage just what properties turning going one provide which to

Paul Seavey

turnover. generally, It's across And XX% about the portfolio, our we have resident turnover.

So that...

Marguerite Nader

Individual not properties. residents,

Paul Seavey

Right.

Michael Goldsmith

Yes. Got it.

are the XX% of something XX% received be about that to similar upon -- MH So the to the increase your year? will of see start residents -- going of

Paul Seavey

will course XXXX the have. Over of that

Marguerite Nader

Right.

Paul Seavey

to the the states, throughout Specific it the But happens year. of course in other Florida, effective X. it's January

Operator

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

Marguerite Nader

for you look We Thank today. care. at forward to seeing us joining Take all NAREIT. you

Operator

for today's conference your you and participation. this call. Thank gentlemen, concludes Ladies

You may wonderful have now disconnect. Everyone, day. a

Equity LifeStyle Properties (ELS) 17 Oct 232023 Q3 Earnings call transcript