ELS - Earnings call 4 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 Fourth Quarter and Full Year 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.

For those who would like to participate in the question-and-answer session, management ask that you limit yourselves to 2 questions, so everyone who would like to participate has ample opportunity.

call recorded. this reminder, a is being As

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

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

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

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

Marguerite Nader

be joining report our of in morning, thank for all strength results business. Good I can am The us the you seen final pleased to for facets XXXX. and ELS today. of

in our FFO core record year FFO per strong with share. full increase normalized NOI of X% continued in operations of growth We and and X.X% a growth

occupied. Our MH XX% is portfolio

are demand Importantly, by by more than occupied XXXX revenue the solid, core X.X% underlying remains compared The for increased full homeowners. operating XX% XXXX. of year and our MH to sites customer

comparable During year-end increased quarter XXXX, levels sites, XX we XXXX. the fourth year stable occupancy by ended with the and occupancy to

demand robust continue to our XXXX. with communities provide new the We experience home for lifestyle XXX during sales

sales Our strategy individuals home home residents coming reside almost our our existing buyers to communities. from continues of with who converting of to be X/X successful in already

homes were fourth to online. and during technology the leads buying leveraging compared sale models our quarter of for awareness the X% home availability year, of expand to new Home by up last popular driven new

in homes communities demand markets, for operating $XXX,XXX. on where for our we of new continue we strength selling the to to approximately average are see our homes Due

$XXX,XXX. total home strongest than sales Florida, of price accounted communities with performing for for home of sales an over more sale XX% were new average which Our in

communities. options of the While on lower immediate than home housing significantly our average, $XXX,XXX remain other in prices are vicinity they

In XX%. seasonal the saw has RV mark-to-market been approximately compared annual XXXX, new increased Florida strength continued or to Arizona. We for and customers as our homeowners XXXX, from In X.X% rent in increase revenue XXXX.

business We transient and X,XXX large convert or important of over base stay driver transient an be revenue. our to annual to the seasonal for revenue our for to customer seasonal continued transient is both had an expose Our customers our Continuing to properties customer. new customers building block a through stream. annual new

next we increase. at The XXXX, to Turning have midpoint for communities demand continues $X.XX the to of issued year. our MH guidance for

have community showcased portfolio homes existing further homes Over look new over last communities. their ownership. X the of These of pride X,XXX new as we sold -- XX new homeowners throughout and homes years, the in the our enhance new the

in XXXX Our guidance strength business. reflects for our the

and the based communication residents. at built with operating guidance on Our each our is continuous property environment

underlying for continue growth our Next, a decision the million our XXXX we've $XX.X FFO is balance take dividend Board policy. stability The anticipated Historically, of are primary to dividend cash in flow, flow increase free due The has the and increase I and increase to equivalent approved increase. of drivers share, in update per That X.X% XXXX. strong cash annual our of generated advantage the to been opportunities would able like operations. sheet the to the will roughly this XXXX to dividend. from trends as in of dividend $X.XX you rate of solid on the our setting our our business

principal payments. to discretionary expect In million expenditures approximately our meeting after $XXX XXXX, payments, capital recurring capital we have obligations dividend of for and

average increased XXth have growth. dividend year, consecutive year annual XX marks our past of dividend per an of the the year's dividend by XX% and Over we years, this

who members express results for to moment dedicated the to now commitment am team about to drive to property worked to proud contributed have of provide it Patrick XXXX. a take to will and hard success. want operations. that their gratitude more details our work tirelessly I I I our my turn to over

Patrick Waite

residents to guests In Marguerite. rate and RV growth. long-term core at demand, our strong XXXX, consistent supported properties, Marinas demonstrate and MH, and Thanks, occupancy which continue

Florida, of Texas. peak As and our the some XX% winter we from residents color that properties of want approach additional the of guests sunbelt our February season, Sunbelt on revenue I our to comes provide California nearly in and drivers at the

XX. birthdays, ages In IPO celebrated aging the our been we've to and XXXX, to from baby boomers, U.S. period That February baby And XX-year the every in of XXXX, baby of trend Sunbelt. we're XX XX in pace a people from talking the in the of million the the Since about XXXX. supporting to day trends XXXX the ranging midst XX,XXX spans boomers of turning boomers XX migration

aging with of cohorts, with in boomers. they driver key the start and our out boomers, XX years, Gen stay Gen XX and Millennials the follow years years I'd Note as and Z we baby the boom generation. represent Given XX population million a a to that XX guests demand than subsequent our or X, XX will trends Millennials residents million, properties. more similar also of engagement as point us baby X core have retire that to more, baby of another at generational or

X is plus, next population, the increase U.S. the projected over XX years. to X.X% Overall,

the While national Texas points. is average Sunbelt X.X% Florida, approximately The our our XX-plus X in by XXX basis the Sunbelt Florida, points. XXX in largest years, increase by are California, our national basis projected growth growth X.X%, strong state, rate states of leader the properties over outpacing outpacing next and with to population Arizona

projected largest in at California XX state the with second nation X.X% to with line is years. grow Our population the X over next a

California. points important Two of -- about

customers, where basis to the state. MH points, And demand. submarkets concentrated properties population properties given First, the strength XX-plus great in of California XX within by to high-quality locations outpace are and RV are emphasizing the locations value and second, offer our high projected the our

that revenue transient consistent and revenue, XX% total comprise property Sunbelt growth guests nearly XX% portfolio. and associated our Sunbelt with customers represent ELS the of XX%, population these RV seasonal markets in represent For demand of boomer makes balance trends. Marinas benefit markets while us that and MH, revenues of from our These annual more baby than key that

Over have the growth NOI consistently revenue X priority last have growth. years across X% growth. our and X.X% portfolio, revenue our and provided revenue [indiscernible] Sunbelt, the portfolio our streams year-over-year produced been and consistently has RV Those stable MH

Arizona our those X/X markets We years. strategy Florida, the acquisition XX of last growth focus and through For Texas, have as in a footprint acquisitions XXXX. focus operating on and characteristics our starting and perspective, represented of our submarkets in portfolio California, investment current an result over key

investments. long-term our A couple points of to highlight. The contribution final key of Sunbelt

to Over among portfolio. referenced last and contributors our the of home many our Those X completed above. stable development the from operating sales of X/X XX% been results are new expansion Sunbelt years, the our have

I'll it over now turn to Paul.

Paul Seavey

Thanks, Patrick, fourth our year of year and provide an our and I good guidance. XXXX and first results review quarter overview everyone. will XXXX quarter morning, full and full

year portfolio the year. for growth $X.XX of normalized fourth Core was X.X% share in We community-based quarter reported year. full and per FFO for $X.XX NOI share to compared Strong for for year FFO performance increased Full growth XXXX. rental core full X.X%. per the the the X% full income generated normalized

rents market of to increases turnover average an during increased was result growth in-place to of homeowner as the during as residents rate on well XXXX. sites. at XXXX, XX% occupancy by Our Also XXX we marketing increase

seasonals and result as was increases with XX we've basis to throughout weather year. Base Full unfavorable from occupancy mainly of year X.X% X.X% from increased a from full growth the core XXXX. rate income and prior the transient annuals discussed was than resort from and year X.X%, rent marina-based from gains. for RV rental lower rental income points year, compared marina-based patterns

upgrade and expenses, impact For million. subscription sales consists net prior our from offset sales X.X% deferral the year year. increase to annual an full the full increased was year, X.X%. of was membership net of revenues business, to for which revenues million, Subscription the marketing $XX.X by The compared contribution $XX.X and

mainly X,XXX almost $X,XXX. sale an utility with of income. utility growth approximately upgrades in is average year result increases in During we income price the XXXX, core and other sold Full of

Other increased XX associated recovery displaced sites includes provide Our leased of housing approximately to to percentage $X.X revenue with for income of basis Florida. million XXXX. compared points Myers, residents XX.X% Fort in

millage X.X% expenses same result of to compared and XXXX period rates. higher than increased increases. values the quarter Florida in increased were operating as guidance core in Several tax counties and real Fourth assessed a our estate

of have pass-throughs The it. be where XXXX. appeals residents real recognized revenue in lease terms noticed taxes as estate and pass-throughs of We filed allow will increased

year. joint management the And and million which as Our the in the non-core includes $XX.X income as million venture year. for corporate the income well million was sales properties full were quarter operations, expenses $X.X full and G&A income $XXX year. other our corporate Property for net, for million and other contributed interest and $XX.X

future context guidance. in estimate qualified press for earnings by projections and to rate and supplemental average revenue XXXX, package. The provide year interest of full was were and included intended release growth of $XXX.X rate year X.X%. The the remarks balance The supplemental our weighted average current our release million expenses results. overview package Our full year, weighted the full and expense in risk are $X.X for was amortization first our billion. ranges factors provide following are All and press and debt an quarter

guidance X.X% million midpoint and to range between non-core XXXX million at XXXX. growth FFO the $X.XX X.X%. $X.XX of full for during range of per of $XX to We guidance property We Our NOI project year at $X.XX. of is will project midpoint share operating the normalized income our of $XX our properties X.X% generate of the core

lower reduced actual expense management assumptions XXXX and of as guidance our property administrative is slightly Our result G&A our for a range and expense, payroll primarily than expenses.

balance in supplemental or guidance year makes expense cash the no events provided acquisitions, regarding use we full debt capital expect generate guidance other and weighted for average also The interest in flow assumptions XXXX. package. free model ranges We've of to our the

growth rental and year we is X.X% portfolio X.X% Annual to We and annuals core over rent guidance occupancy X.X%. to year and X.X% X.X% our range growth will and core in rent, to in rent rate assumes of following X.X% expect Full the rent X.X%. Marinas expenses X.X% RV RV to In project for at core X.X% Marinas full XXXX. midpoint range. stabilized assume X% portfolio, the to Marinas represents year during the full our from X/X the of Full of in X.X% NOI. guidance growth growth be for year and we income just RV core flat MH combined core guidance the MH for for ranges. revenues,

that assumption growth core rate year consistent long-term our estate increase current for include projections with as real our full well assumptions experience. utility a increases expense is historical Our as tax future

first is Core FFO $X.XX quarter operating per to range assumes in represents guidance FFO range share per approximately XX% the of projected property year X.X% income normalized growth the share. Our of which $X.XX, to quarter. be of to for first in the X.X% normalized full

in Marinas the midpoint range. of to First and RV in annual our MH project rents Marinas leap quarter is We and combined be are approximately year our year. quarter $XX.X guidance first growth XXXX rent assumptions. a and generally with at full RV line million

result to basis So XXXX approximately extra X as incremental the years, a RV represents The XXX day. allocation rent a February quarter the will do points month first have every of growth. the of of as we slightly we rent annual higher of

seasonal and first guidance with reservation revenues current in our Our quarter RV line transient pacing. perform assumes

I'll financing market the and some our balance comments sheet. on provide now

We XXXX. in scheduled maturities have debt no

loan-to-value in-place to at $XXX all-in debt Our million cost of Current cost Current X.X% all-in coverage. an loan floating service secured fixes swap debt that terms at between swap at X.X term are to X.X% X.XX%, until X.Xx XX% XX% expiration years XX has coupons X.X%. is late and of March. the debt and

We continue financing terms. GSEs, for from strong and to lend best to lenders terms. life CMBS High-quality, continue see XX-year command interest age-qualified to companies assets MH

has approximately $XXX available. Our currently $XXX of line credit million million

We million have ATM. under capacity of our $XXX

years. secured Our is debt weighted maturity XX average approximately

is X.Xx, is EBITDA X.Xx. interest adjusted and to our debt Our coverage

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

would we to it up like open for Now questions.

Operator

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

Joshua Dennerlein

any I was X.X% know changes kind then just rate that there of if to a range Just go us you the into out I curious and end you more. what XXXX, out wanted is XQ. like And see XQ range MH Could X.X% increase us bit same-store gets walk high for to with guidance NOI results, end? low through little for the X.X%. the to put and for

to just So reconcile trying that.

Paul Seavey

Yes, increased Josh, the of first of the our The increase. guidance. see to range, increase included anticipate overall the and is we that X.X% The that difference you noticed XXXX. we X.X% that in the respect to all, the with current we is in October in occupancy there that impact rate

And decelerating respect to notice line Primarily XXXX. do of going MH the MH I separately which last as then report it, we call we I rent year. stable that an throughout RV, the just increase not CPI, a We rate course is, to overall, of noticed following the did but and assumption later don't solid. that can about is tell the we result with I'll you 'XX the from increases for business, mean, as business, in the as just then it think

exposure us, that I side, some properties, for assumption but we expense the outsized storm as And expenses events have things for we incurred we the to about, then that in past might at weather related have the have our events. on talk always think

significant but it's be energy does And costs some of to very closely sort we've the in shift of expense. unclear volatility the in structural be or a we're bit experienced over couple thing that That to whether utility settling, seem volatility other overall that years seems just talked easing. quite we and there's is that watching of the whether last about a period

Joshua Dennerlein

One follow-up, Paul.

growth You XXXX. you've MH-based rental occupancy what mentioned uplift That's your in the just in income incurred rate.

a I include has on that... think Is your to basis. been policy not anything go-forward

Paul Seavey

flat, portfolio, assumed stabilized yes. to the be it's In correct. That's

Joshua Dennerlein

was that. Okay. missing I

those it. or to Got that customers, increase to ability expenses. I rate assessments about looks should pass think Is it's big was then real or taxes, estate anything. a in whether How think XQ like it driving increases And Okay. just up there through possible? we kind on your of

Paul Seavey

Yes.

XX% the primarily that we the the disproportionately experienced provisions properties, we So increases us through than the of had in to to increase which pass that large allow a lease MH exposure more experienced.

is course, to it, that those properties we XX XXXX into subject have of results of that to of before the are appeal. All residents appeals visibility under will that a the process. we in have And we'll would there to it be is success, the But be extent pass-through course, have during And to appeals. bit time adjusted. the of of the close

Marguerite Nader

notified increase of already. Josh, residents those been And have that

Operator

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

Brad Heffern

through today? talk reservation outlook here the Can sit and you as transient seasonal we

Paul Seavey

Yes.

tracking mentioned in reserved use I reservation we pacing rent, we're We the my generally expectations. our seasonal guidance our rent. quarter see seasonal remarks, the variability quarter line current with than reservation in and As prepare transient. in but Brad, for and of line, budget to is for more the is transient first more XX% pacing first in The

the the recurrence say of anticipating the in will severe particularly of the we're XXXX, I that California, that not of impacted weather impact first quarter first 'XX. quarter

a from pretty California effect meaningful of The impacted first had rivers that many few storms. atmospheric of and those

Brad Heffern

loan then fix it. expiration the clarify or again term out guidance, plan guidance? on any is that in And loan? to term included Got is the to the And rate swap that either just there Okay. take

Paul Seavey

and Yes no.

yes, no, flow. So included in the that it's there's is guidance. assumption we And

Operator

And our Wells the from comes Feldman of next question line from Jamie Fargo.

James Feldman

look through or tax that you what I to municipalities back interest going of here guardrails put that what give of like residential. this just real to more want counties be sure I I Is happened and -- haven't on read-through specific other getting make there's flow the increased Florida to what estate rest types property color on to hit? for forward? could think go you think could kind Can yet? real what increase. some counties to this this just we the Florida want do seem a

Paul Seavey

other I remarks, provisions think And Yes. MH County, RV ability were because to or leads increases the Charlotte as in lease of through I tend our our mentioned those a but them. provisions pass-through than There significant in and pass to I experienced outsized portfolio Lee to portfolio. in was County, We couple significant to more those some, that have impact a counties, counties. guess, higher that, my

Marguerite Nader

And X function in that over traded up acquisitions Jamie, the is are increase. of that that to last driving a some of past years X have recent that the

James Feldman

like gears, annual we like, the looks could I And it then came about more your And bit just little we it's Okay. full for RV a kind guess, I less if could guidance switching growth year what a than mean you slightly estimated below of rate. as talk growth. look X% business. in

on can color wondering, more just to give numbers? I'm So those how getting you're you

in the color weaker in next bigger provide the Or for Clearly, really past than weather. a the why Is you Are years. here? you past, been assumption baked year think look other of issue down has that? last any for can that for year? some the haven't few you this new any weather story I making might days part on outlook

Paul Seavey

a guess our is I I basis a experience. on third we fourth say first the than kind quarter, second, through quarters, past and flat the That of the is to transient. will moment for just walked for for then somewhat regarding different is And that closer quarter. assumptions and combined our the -- first ago seasonal I assumption what

transient quarter we've visibility I the lot And a booked short in think lion's and we seasonal the seasonal, earned with first of the into that revenue is rent. of a about the that's amount lack of talked very to business result respect that window. the the a of share booking the as have significant

So second, the fourth than closer third are again, the we've the quarters flat remainder and historically. year, of had to

James Feldman

to lack just more of that's like sounds it no -- visibility reason that's And reach. Okay. and

year that that? right to the Is kind as cut. the of than progresses rather way bump think You'd about rather

Paul Seavey

it last trying that kind seen it's the of acknowledging much over know as is the of to in the of expectations couple I years. volatility in manage what terms so we've business don't

Operator

of question comes Wolfe And line from our the Citi. next Eric from

Eric Wolfe

spend mentioned much million you you your expect this I in in of give you prepared was to how that year. CapEx incremental revenue-producing spend to return. think that I you us the us this in CapEx non-revenue-producing could curious if around sense just then you $XXX a remarks as free cash year, expect that to far as flow expected tell And if for can get number. the

Paul Seavey

Eric. I'll do the first part,

$XXX the of CapEx. So million, in to an spend assumption we have million recurring to come of $XX

Marguerite Nader

touch maybe, rest. on you And Patrick, the could

Patrick Waite

walk just That's me improvements And in the mean the buckets, next upgrades us is spend, The spend. renovations. Yes. more is bucket on CapEx than recurring and through our a I asset and total preservation just about development. let total recurring our X/X bit really but into piece. little half of X spend falls Paul for property touched us for

important about just then to out And I'd in CapEx, disclosures. homes our to be that site improvements the And in that, balance and would that to expansion and spend. total to revenue-producing, mind. our keep And that point MH new note last bucket development, we of that's would But hurricane property development, our XX% includes and site, with respect in is And be the going repositioning. is and communities. upgrades

we full in, of a X,XXX guess, just shy the year. That we year the year on expectations. the developments, We delivered The I and was of up touch sites that for and in think current line I'll current with last view from the see XXXX. year coming what

a double-digit projects to about on and yields MH those a tend was low stabilized digits X/X Just be to That basis single mix the X/X our high RV. yields. in from reminder,

MH will the visibility believe this least, the that sites of balanced deliver we XXXX, to in in that's a to forward point. we position we're more look we RV at and X,XXX be evenly have at between neighborhood But again. As

Eric Wolfe

the Got it. Thanks That's for helpful. very detail.

the my guess same-store there think being sort is contributing there spend to you an of to not just, any contributing follow-up I that capitalized. way about if spend of sort that's how So versus just much is year, average maybe quantify is

year. Just trying a typical it earnings to understand impacts in how

Paul Seavey

Yes.

in portfolio, Eric, stabilized terms in to inside way XX basis a of think And incremental you call the it, that want I think, terms stabilized for is core the and to contribution to the, I if expansions core of those of Patrick that mean year-to-year. it's there's XX growth, points it portion percentage we've though reach generated level. few Appreciate takes in NOI, that then an seen that I'm years terms expansions. yields, in projects NOI overall, the several about of about stabilized. aren't was that it a points those talking fully by giving

Operator

from UBS. question next our Michael from comes line Goldsmith of And the

Michael Goldsmith

What when of vesting property accounting are XXXX the in essentially expense compensation that management the for G&A stock-based and keep factors in the XXXX? flat accelerated

Paul Seavey

payroll Yes. year-over-year. remarks, primarily, my expenses, primarily administrative mentioned It's just managing those and Michael, closely in as I

Michael Goldsmith

Got it.

So payroll or offset growth through CPI that it seems management reduced line it Or just angles? like to G&A? other still in and property despite is within wage with you're able

Paul Seavey

I been And the year. think we've efficient respect think projection for next staffing. in it's that I with that our to just reflected

Marguerite Nader

And that Paul administrative fees mentioned. driven those by

Michael Goldsmith

then properties? as then supply of seen around Got change any municipalities -- anecdotes MH? have also year. MH demand Does there demand impact potential municipalities you adding a affordable this component a more be it. becoming from the potential the in tone in communities for your and any an administration Have supply the change And the the may election on housing. more of of is And accepting

Marguerite Nader

And I any as second level or years the the to And question a coming each take respect change and we first. seeing the over either or at I'll environment seen result in the the state. change we year. at much individual haven't don't much, looked cycle, anticipate federal in Yes. whether we have this see a of election with really at not

with to continue MH we and of municipalities conversions As vacant work to relates it RV. land on municipalities, to

We seen and land. successful, to see to we the develop where able activity to we be uptick continuing in resistance where an we've haven't continue We're were seen resistance.

in of acceptance So that the we're wide not as coming what permits, seeing we the but spread change years. development may would a see

Operator

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

Samir Khanal

of about that we looking at guess, business. the in 'XX. you how year? there down And transient? side? mean to the guess, I is break RV on of what you the were that transient you I think, are for business Paul, -- sort XX%, about way over assuming But the about in talked course think a here down I seasonal I should

a this that sort turns this of is us positive in point at business this think Help So through 'XX? process.

Paul Seavey

Well, for the generally building speaking, I blocks guess, QX. given

So quarter you And can business. and transient as seasonal is we first in what again, see combined the the largest is. quarter -- the and seasonal then terms of that

So year. essentially to it's X more transient quarters close the assumption in as combined, far earlier, modest The a X. said seasonal of and remainder the I have X, and we flat for

Samir Khanal

of more to Right. seasonal/transient. trying -- saying right? you're it's But the transient ahead. It's I -- business, was go because into yes, sort dig

Paul Seavey

Yes.

our been given together. consistency that I in guess seasonal in Sorry, volatility seen, talked there's about view, how the Samir. we've we've and transient

so information. presented And that's how the we

Samir Khanal

insurance think we've embedded but I I sort don't and Okay. -- the an maybe is guidance? second on my you sort of X I had of sort know touched question that this, around what's talk in of but then on And you've providers conversations renewals. April with date have, guess it's

Marguerite Nader

Sure.

of right you're property year. this on renew policies our insurance April So level that X

Our which is so claims good far policy been experience has year, positive. this a

negotiating with but that. renewal. we're to point, within our into have our built continue work carriers this And we're guidance We an at the assumption still not as on guidance in disclosing

our the next will updating indications our on and of and practice no issue, on -- past we'll an coverage call. that continue have be We with

Operator

of And Lu from question Robin our from next Green comes ] Street. line the [

Unknown Analyst

property taxes. on Just

I you last sort Florida which think as in well? is markets. higher you you on give update of of concerned from you saw counties some the there markets trend other tax probably where whether few headwind the probably obviously about years, other earlier Can in a mentioned are values the an that that are trades us saw

Paul Seavey

I X the Well, of counties mentioned -- counties. the

impact had County. Sarasota in also some We

X So Florida Lee that and in Charlotte, counties were Sarasota were counties significant.

exposure seen we in It's your change of values other the of question, that's less see. way Florida of terms of that's if the primarily the of country, we've direction other country. activity driving that or in areas less In increased the parts the assessed

Unknown Analyst

you're on the transaction now And an the then cap rates across in update provide segments? on what seeing you terms X market, of can

Marguerite Nader

Sure, Robin.

there XXXX, on really very the in deals few market. were So

saw, a stress kind say, generally broaden we balance active a in they I XX have we to out X% more in only on and the the on rates to time market. very have aggressively. ranging transaction. have ability time of you trading the seen transaction. I'd closed period quality on property, the of market they to based quality, very and their the the MH conservative talking As think sheets you last X% Sellers, X not lot We're owners, months, much of if to XX from the cap to with high age-qualified take

that So XXXX. in data not a may that, anticipate I lot of points out there, change but

Unknown Analyst

you, at the year. any a that? portfolio end that of know participate Did traded by last in chance, sizable I MH

Marguerite Nader

small Well, we very -- a industry. it's

really roll But are closing announce the and about at we come, looking about all look knowledgeable our what in industry. that around at are So and that talk we through we as don't on we're and -- when the close all something, the the we deals transactions process. the

Operator

the of John next line our BMO comes question Kim And from Capital from Markets.

John Kim

the about to of around ask transient transient sites sites by and available that reason number I -- X% about I wanted by revenue. maybe X%. There's about saying sequentially up visibility. year-over-year The know you're I went it's lower some know given why flat. the just grow shouldn't a number or number revenue bit. But there amount, a quite is this transient increased? is jump have this could of

Paul Seavey

from we have in expansion Florida. transient an change So that site part of is the

that So acquired. property a and that -- we it's newer at

the roughly site is increase site than been rather the as the non-core that that saw. And the component we the anticipate back had as other quarter of spring through annuals increase in sites of flowing that's season. annuals we half So head of transient that That's renew think into the transient the we and then core. shifting those occupied I will

the in at the time. northern sites to expected sites as refill these to not have they're next year are decline of that period us to, a of starts. transient sites then the referring long for I'm end for and sites So spring -- a those those It's in refill transient remain the year typical properties season

John Kim

makes That your FAD on a I question second Okay. sense. adjustments. had just

CapEx. of first non-revenue-enhancing that part The was

I think number of expect same versus adjustment? CapEx recurring on you mentioned what million this basis million you that the an year. $XX.X is that Paul, Is the apples-to-apples $XX

part Is that change last from we added if should contemplating, week you something that basis sales back the your back to on adding that should this you the the upgrade membership is And and something second cash And AFFO? why to be announcement non-GAAP not, had that a not? is FAD measures. on made in be previously

Marguerite Nader

and exact first part? don't the standpoint cash from operational and I Why you really we're membership then with address can But flow to Yes. a standpoint, upgrades. an same just the membership take in the respect Paul, the position

our of doesn't view operations the valuation, is company. So it the it and doesn't impact impact

So the And -- we're position. page, in I it's... the same we don't I think provide know

Paul Seavey

It's page XX.

Marguerite Nader

membership on we Page the the past. And XX in have upgrades like then, just maybe? detail the Paul, provides

Paul Seavey

for on XXXX. million the to that the $XXX yes, reported CapEx, total the recurring comparable we $XX then And million is

John Kim

Okay.

reason? once any On that any back that membership upgrade ever to risk stream capital it, you do the is for return sales, income members you there get

Marguerite Nader

No, it is nonrefundable.

Operator

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

David Toti

quarter? average. that pressure are that of last were of these the a say you the And ongoing It Would year. question. that a in are on just quick seems the these lower in aberrational in homes there's sold from Or average inventory had segment? that were I buildup of period the price signs bit

Patrick Waite

been ongoing of Yes, a home that have pressure. XX. age signs The it's -- customer it's consistent our remarkably say us consistently just FICO is and touch been I'll fundamentals on stable. Patrick. of average for XXX. the over have of leads core maybe I scores buyer are And new wouldn't

that occurred One new from home that's state this a COVID pre-COVID relocated of is at and thing about change have direct is bit out sales, around who people was a I'll getting XX% of point out, we're little our XX%. of purchases running through more from that

demand a shift in consistent. been shift. customer and overall, a nevertheless, been behavior. like consistently like So -- I the has stable And it's the feel But core sounds that has has it very been [indiscernible] it

David Toti

Great. know with home of have home ratio conversion you sales renters or follow-up And I which question, then terms sales? do you that inventors, one in the just capture is the

Patrick Waite

of it's XX% current between residents. XX% our sales, to and are home Yes,

include manageable is that Now house can also highly to a amenitized a moving to a renter, more smaller more scale to but down either space looking for and home. are typically or up who existing maybe a homeowners looking

Marguerite Nader

shorter-term great a on capitalizing job on lead getting think and team convert. focusing but in or years customers and properties us, flow a existing And that's them important over last a for of the are X our done basis the has on very the X I that residents and to

years. So the over doing that last we've in been few successful

Operator

question our the And Feldman line next from a is Fargo. follow-up of from Wells Jamie

James Feldman

how year And outlook you rent for growth the combined? was assumptions. next it I just for know for Marinas But looking year? on any some talk can about to specifically RV the within you this Marinas changes full Marinas detail more and more can year I line. growth what compares sits versus on the provide you color X maybe think just your the

Patrick Waite

I with more for It's on annual on to business trends anything maybe us to performance on mean for almost of revenue. very portfolio seeing and has slip annual sure. what our overwhelmingly relevant similar customers guidance. the and a we But Paul RV. see been the XXX% we're up in It's I'll consistent. long-term us are that Marinas that's are Yes, those follows on the very -- in what typically touch

full for Our launches have year consistent. been both the

on growth consistent demand And family don't a core We that and business has with our or been friends. currently at of market to get don't the water evidencing any. continue our be the that's out and rate from see that reflective to really their customers headwinds see that they any would So least challenge consistent.

James Feldman

Okay. the were And guidance then was Paul, piece? able there you -- comment to on

Paul Seavey

we not annual the RV. There's between in from differential RV It's expectations increase essentially line or right much in the see. the for Marinas space our with what the rate

James Feldman

know Okay. more you yields that Can transaction you on small X RV. deal, your the I can you I and you cap appreciate talk on And types color opportunities then talk X maybe about in say generally? in then where mean -- but it's also I bought versus a market. about think Marinas, there's those 'XX? MH And And rates property there's more on opportunity would pricing RV? are in you do

Marguerite Nader

rates space, that mean in as would that location. I look to on a we property, RV a based roughly X the is you on disparity wide I Yes. the bought the cap the in there's year It's Marinas small cap. say a

lot hard There been So a haven't it's one pin transactions. to also down. of

to difficult point it's relevant. find So data that's a

work -- be own in you'd those So in and assets And this I continue sellers where the sell already think locations tell guess, to willing think, on whether those I the I the we or of in terms see I and we're to in, what not cap assets come buying us look interested around XXXX think are -- acquisitions out time you'll to will point. how want are at we to areas. because rates

James Feldman

financing could one MH? I quick If where on you rates, sneak peg in GSE Okay. would one. today them just

Paul Seavey

On a that the probably I end range they're as lower for secured a us the of at borrower. quoted basis,

So XX-year. sponsor a pricing. Generally, I like X.X% to preferred does X.XX% for command quoted ELS

X.XX%. it X.X%, I'd So peg probably

Operator

follow-up Wolfe from question And the Eric Citi. line our a from next is of

Nicholas Joseph

real thinking I'm there Florida in but you the just insurance Nick how transitory here about had Actually allocation headwinds? Eric. are with those you're Obviously, capital and forward? more you've curious exposure the taxes, as estate higher Marguerite, of thinking going

maybe something changes and more goes it is of permanent some your that priorities Or there? underwriting into

Marguerite Nader

Sure, Nick. Thanks.

I in think is Florida demand. really high

are people the There's think their XX you As million about there. Florida. States, flooding people that just United across to it, live about

then last fastest-growing of I winters. of populous get And population age climate a chance state most XX-plus. the was state to Third demographic it large it the is course, year. of really out portion and And offers of tax then, Northern the and the our favorable think a also

a want at it as look year, there. And Florida each really shown overall then in we're NOI the when continue you NOI we'll how consider So that to where our invest analysis, years Citi our Florida and is And shows better chart to Florida. we favorably on only that the be XX NOI than people our and to very company we've positive. It's that just as view doing REIT for industry. -- in you average last and the in compiles actually compare it's

So we're long in Florida.

Nicholas Joseph

insurance going Yes, go-forward there? demand you're recognizing real the outpacing impact Florida keep that makes growth elsewhere. I NOI seeing guess if the sense. in costs much taxes forward, estate Does or that it's

Marguerite Nader

Right.

real the impact. the the go through, that's positive in because us with very always tax to to That's assessor the able us powerful talk to primarily tax and really as ability message. Paul about think the state, I residents mentioned estate pass for about thing a been a the to are

tax been keep in insurance, kind have to helps we there's respect an increase that storm as seen moderation insurance with check. So to where And in moderate. a premiums and rates of times events there's then

everyone sunshine. that. But looking out wants be take Florida, see able get to storms as in we'll is we floor storm are out the to active So the clears, and relates in to there be after if thing, advantage and to of to it main the

I continue. will So that think

Operator

Nader time. at are there and does further no I'd the the program session, back for hand further this questions conclude Since any Marguerite the to like line question-and-answer This to on remarks.

Marguerite Nader

all to our you forward quarter's look today. Take much care. We you for joining Thank on next updating call. very

Operator

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

You now may day. Good disconnect.

Equity LifeStyle Properties (ELS) 30 Jan 242023 Q4 Earnings call transcript