ELS - Earnings call transcript Q3 2024 | Equity LifeStyle Properties, Inc.

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

Operator

Good day, everyone, and thank you for joining us to discuss Equity LifeStyle Properties' Third Quarter 2024 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 company's earnings release. [Operator Instructions] As a reminder, this call is being recorded.

this of may the during in forward-looking discussed meaning 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

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

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

Marguerite Nader

into Good morning, in XXXX. strengths pleased on am to we and I report thank insights you the third us and the today. be today able joining see to quarter for some provide

results for third the of delivered quarter. growth FFO strong to Turning the normalized X.X%. We

seen years, home several last in the properties. we our a Over demand have for owning increased

comprised of our were homes. This pool new since homebuyers is occupancy cash point is at XX% these Over with from consistent our a lowest Our as investment homeowners rental the pride majority of of our with commitment commitment of to entire buyers. XXXX, X.X% in residents results portfolio long-term and live resident in the base. of communities. The made ownership a a our have vast capital our rental

annual drives stable price The Our the RV a annual revenue base. vacation our continues with growth point of attractive properties product to X.X% year-to-date. show of strength cottage at revenue

with showed desire Our customer first-time to strengthen last transient us. their relationship from a returning year

partnerships customers Canada. the last significant our access In to services and to for like our decade, investments with new in has target Internet publishers the turn reach listing would ELS and I leading to made U.S. points and developed on customers. focus

our digital customers. focus efforts of We the existing of similar that those our audiences lifestyle-driven customers. characteristics decisions Our on share to marketing seek

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

I the expectations would the in increases number the homes country, some to MH XX%. outside of demand for our over talk making manufactured Before to million housing. business. housing about you when highlight I for are that like people, go And XXXX, X% XX drivers of X areas, of up million There the metro the

construction and HUD XXXX, was updated manufactured and the In increased for it housing. code the safety standards

new of is Our about XX% homes of in home The approximately average in less a similar property the price fit the neighborhood. $XX,XXX, needs which home demographic. a core is our than our

million audience available boomers base. million and incredible our and nearly with offer value, our XX targeted Xers Gen XX We baby significant is included in

Our our properties product destination at for affordable locations, high-quality and out customers price sense the an vacation of community. seek the home

MH into an MH able portfolio, rate increase strength XXXX XXXX. increase notices X%. anticipate These sending see approximately by we We an in to to residents. our provide have average rent pleased end our be of we ahead insight Within growth to you are October, XX% the of with notices the rent of

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

long-term for continuing with areas set our us engaged are our track capital These appropriate within REIT-leading for the We revenue communities. growth. of up record residents our allocation results discussing

of communities Our new infrastructure, evident the Milton. homes supplemental Hurricanes, report and information the the included in storms. after on impact Helene of been strength has the the particularly The

sense from at of our and shown commitment reinforces the and community. resilience have and This community dedication the our incredible found residents teams to properties. residents Our employees

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

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

able our support We deliver statistics and and efforts who an X,XXX-plus needs today REIT-leading reason a are XXXX shareholder provide customers because our actively is view advanced are able to the meeting of value. on we operating and into our residents results report to about positive XX-plus Their from residents years. last the of over operations, to focus results the the cleanup customers team and the report are provide to members engaged update

over I will to Patrick call of provide now turn overview to the operations. an property

Patrick Waite

the days bit since Florida. toured efforts. of impact Marguerite. our have made detail the in of our strides more members a cleanup on regarding team restoration start have Thanks, properties seen properties, Milton landfall, I the storm and by Hurricane assessments and our in great I'll providing the made In I've

a Milton The debris, Florida wind-blown flood, wind, and Hurricane fallen branches. impacted properties number experienced properties our in of locations. affected tree trees

seen screen rooms have homes, ports, We damaged and onyx. car

at third-party towards projects impacted and operating properties, we're returning full in process quickly to the members the properties of are our contractors Our team working cleanup condition. and

ensure Our the members helping to prepared prior our weather. storm to plan were and was safe for team operation we're at ELS landfall, enacted the properties,

contractors vendors as reasonably This possible. as teams and the ready after staged were to to have Our storm. strategic work available normalization deployed that third-party ensures and we soon be start

visit, gather Florida of after large in stability as who properties their the they to time each storm others as our communities residents impressed have of well And the be as impact in I may infrastructure need. am the by properties I visited help I every event. storm-impacted throughout

to results. third quarter Turning our

our annual of and Our summer days camping season X holidays is punctuated XXX campaign. camping by by major supported

X.X% between Day last RV by of over and XX largely driven annual increased the X.X%. Day, Labor revenue Memorial year, total For weeks

shifted up Sunbelt are now discussed our We season to distance Resorts. seeing a schedules winter with space our Covid and experienced quarters, the RV we normalization flexible As we picks the we time focus group when desire and in demand the period have demand in of in one recent family spend peak the to activity from life of when friends. socially

portfolio, XX% MH stable the properties XX% MH portfolio California collectively consistent revenue. delivered are revenue our occupied Florida, and growth. of our represent and Arizona In about

see communities in to growth. leading our the stable been We long-term Sunbelt these strong continue state historically migration. markets, supporting net for Florida demand homes has rate for in and

opportunities future home in continues Our occupancy and than pipeline sales deliver and in sites development we expansion for program MH support the growth, to have Florida more to X,XXX growth.

meaningful benefit in alternatives cost to locations they properties California efforts. residents often demand Our MH tremendous California days, are at occupied. portfolios shows ELS Arizona that are commitment team while given last and markets. high properties the deal in ELS difficult strong locations, XX Arizona and Sunbelt Those to of The the XX% to of value customers offer progress high and over their in impacted at properties the the the thank to progress and like I'd under circumstances guests markets and properties. great from for teamwork is those a

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

Paul Seavey

Thanks, Patrick, a and third XXXX, the sheet. year-to-date will guidance assumptions fourth balance our good of our close and and quarter review morning, I for with discuss quarter our results, and discussion everyone. September full year

FFO XXX guidance. in generated X.X% the guidance. $X.XX normalized performance core and basis growth FFO quarter, share, our quarter NOI in with portfolio line higher Third were points Strong than

base to rental was XXXX. following a increased from renewing of quarter in in rental model. Core the secured income quarter market income, and new third X.X% Marina points income approximately year-to-date JV transient annual sites quarter loan to X.X% compared We the occupancy year. Core X/X same to increases decreased core compared was because quarter. by resulting represents the XXXX, in and homeowners the compared in rent increased in prior XX RV for our of marina income, that total rental refinancing and a paid X.X% after which resident residents basis the increased rent RV portfolio, included primarily Rent distribution from decreased X.X% turnover. and noticed seasonal Year-to-date Our the and period XXX include third based community-based X.X%. results guidance by to residents growth

offsetting continue variable reductions see in expenses. We to

increased Trails was period for Membership For contribution our Pass X% compared we've period, the business sold Thousand Camping year-to-date Year-to-date, the to prior year-to-date net September XX,XXX membership million. dues the year. $XX.X revenue memberships. approximately from the

X,XXX members approximately the upgrades approximately year-to-date price $X,XXX. average an period, of at During purchased

other increased to for real prior X.X% which September of the period pass-through XXXX. income compared includes year-to-date Core recovery from year, utility estate and tax increases

efforts in utility our unbundle of recovery to XX.X% utility year-to-date expense, a the basis As was our same about XXXX, points higher continuing XXX XXXX. percentage income result in than period

period compared Third in guidance, operating in XXXX. XXX increased lower expenses and quarter was from expenses. same savings growth Expense basis than maintenance repairs and resulting payroll, the mainly to utilities points core X.X%

was portfolio respectively. $XX.X property before X.X% $X.X and property quarter increased X.X% the generated operations quarter in Core periods, our third management million for by Non-Core NOI the Income from million year-to-date. and year-to-date and

accrual the expenses of of our charges, quarter, Helene, approximately an income million, presented the our casualty in expenses third the related net During line in statement. representing $X we Hurricane incurred recoveries, recorded following estimate

and release current supplemental revenue growth our quarter factors qualified an All earnings release context estimated and of in expense XXXX overview provide and full included are following The and by the results. package projections supplemental intended remarks are provide guidance. risk and press fourth year rate press for The to our future package. ranges

per our this share our narrowed share. use to at have full the range range with time of per the match we increased $X.XX guidance per we our have the per throughout updates practice of $X.XX at guidance $X.XX midpoint XXXX $X.XX to year. FFO to normalized share We range $X.XX year historical quarterly year for Consistent the guidance of share full year,

represents rate to share FFO midpoint at XXXX. Full an year growth per normalized estimated the X% compared

in assumptions expect $X.XX recent FFO The to impact range per of provided fourth We $X.XX. quarter we to includes guidance quarter storms. be normalized from no range share to fourth related the

we on assessing are early the the mentioned, Patrick in impact stages our of As portfolio.

be impairment resulting operational the At we any consider disruption have an continue any identified significant noncore Milton. to with designation. this property accrued, identify we expenses we Hurricane including a not from to time, process, As enough may write-off

Property the of for transient a to X.X%. operating of base in X.X% the MH year. We rent respective of of to the X.X% income The to in decline year and Core of and show of X.X% combined compared Full growth RV guidance our the year assumptions periods X.X% for X.X% midpoints at fourth X.X% growth midpoint project our a and full range full assumes year last X.X% seasonal for for guidance range decline of the X% Marina. quarter, to Core

the Core projected to increase property full X.X% are for to year. operating X.X% expenses

expect we of expense year Our XXXX. guidance growth full first the payroll in the cash use X model well savings of and X repairs XXXX. assumption and generate for as April full the the XXXX, impact the The maintenance during of assumptions regarding months free makes as to in flow of insurance includes remainder our year expense of benefit renewal no

to Our property our X.X%, projected assumes revenues growth property Core X.X% midpoint of income fourth X.X% expenses to Core guidance at guidance range. operating quarter projected are range. our the portfolio, projected operating the increase the increase of is to In at midpoint guidance and both are be

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

the date repayment unsecured swaps the XXXX. in interest using gross terminated our ATM supplemental the this $XXX million with we of with fixed In at the the net earlier with share we used proceeds We approximately noted package, to maturity. per sale million, rate and $XXX from April a loan, program. of The term month, price in our earnings repay term shares As interest proceeds sale X.XX% loan the connection was through release $XX. maturity raised of

this all this On would be and basis. rate be year accretive execution, X.Xx, it project to per X.XX% a X share coverage pro FFO we weighted is $X.XX interest debt-to-EBITDAre we average will for would years. will maturity a weighted transaction, for average on share forma estimate with be per interest X.Xx, pleased and basis full We're normalized be debt

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

loan-to-value X.Xx and borrower, Current X%, loans debt and Current type secured XX% X.Xx and XX% debt coverage. and terms XX-year between sponsor quality. including X.XX% lender, quoted to are factors, on asset many vary depending service to

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

position, of $XXX has liquidity million $XXX our our on of million program In approximately credit, and ATM of available have line our capacity. approximately terms we

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

Operator

[Operator Instructions]

from the question Bank Spector Jeffrey America of first Securities. comes our from line And of

Joshua Dennerlein

guess. It's not Spector, actually Dennerlein, Josh with I Jeff

the into thinking out, year just how guidance rate notices, coming course just across of guess I -- could that put mark-to-market the what would over like growth So sent the of tie-in think be customers the do what of out XXXX is uplift remind portfolio? just preliminary about a you trying like you where us much the from saw new the the like you kind gauge you Just and to to kind that you XXXX portfolio? then maybe today

Paul Seavey

the seeing back we XXXX. in residents a we're -- terms to in after but rents is to what We was XX%. the is in turnover, What year year about bit first quarter, charged of moderated it new XXXX. saw moderated It's which that's closer to during the XX%, started XX%,

We in our X. the received for estimate growth of adjustment have who included rate impact the preliminary January notices residents on that

So that an potential included on in that to point you're is that correct a have impact. go-forward XX% of to out the But that residents basis, estimate. there's for

Marguerite Nader

that is the including similar last way And it was year. to

methodology. same the So that's with keeping

Joshua Dennerlein

Okay.

of maybe mean, the the know. Okay. And pretty the side have No, expense. good year-to-date equation, low, been other just especially on I the expenses, payroll to then

was take you lower inflation how of growth this of guys And go it to of we front? that are wage forward? through, out like forward? there kind there should going just about is on adjustments making think Or any can towards the should something normalize it kind standard then inflation? you kind do Just as Like payroll you than just a keep

Patrick Waite

Well, yes, year. me the touch trends this that just we're Josh, on experiencing let

favorability with we quarter, properties. on at was largely on X% our favorability of the the employees payroll staff number respect based For our that had to

our driven season. RV -- properties, you it's and through So moving by we're comp RV a that's about summer year-over-year, think the largely if

partly payroll, positions some And property. very are at by on through Those to job open positions driven -- market degree. focused schedules But the driven we're are those also competitive managing that's temporary the coming sharing payroll. but we're through and overall overtime to count, favorability, head only responsibilities. not to That also cross-training and and that the in favorability, contribute achieving in in in helps our

RV through managing schedule scores. adjustments we're customer while those in that high we're experience highlight very I'd maintaining also the properties, consistently

Operator

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

Brad Heffern

be the MH increases, the guided seen figure. base past than noticed rate the the higher growth income For years few have rate growth rental

I think the seen X% presumably first than go figure can next But hasn't the be some which on linkage, would won't XX% a you of obviously that's the and you notices expect tailwind composition year. of through the the XX%? be higher other those CPI to whether lower that or

Paul Seavey

Yes.

keep a to that think I are things there couple of in mind.

about rate. First, we are talking

So let's overall, are that rate components there growth X and just to revenue occupancy. understand

So the component. this rate is only

receiving When more the received bit population. we the XX% we population look at January it, notices of the a as remaining XX%, longer-term the for is that weighted to notices -- heavily agreements, or are call X

CPI remaining heavily and the a are associated increases control. XX% with to more weighted So bit the market rent

Brad Heffern

move activity? with you through that then to for, off talk can trying term Is a sheet just to balance building equity? the level And to loan potential decision capacity maybe acquisition Okay. overall? pay leverage are the lower you Or

Paul Seavey

week we the that opportunity. sold October, to in the of mentioned, in the with price are and course we that execution the the the million I shares We at enhancement X.X financial first $XX our flexibility. and -- think I pleased ordinary had

Operator

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

Eric Wolfe

mean, Maybe follow-up just entered think, swaps, them. termination around wrong. there. early a if was April. me the an correct there just payment I'm Maybe you into I'm for I assuming I

is this you've of the quarter since, trying again, $XXX think raised the I fourth to largest just, understand raising million, I'm the So amount XXXX.

to just sense a it's trying you're for. deleverage, is better because just So it to accretive, trying get

now why million? $XXX So raising

Paul Seavey

unwind if renewed our and up to the kind attractive, market we our that our loan interest with just off perspective, create something shows And was stack, pull. an when capital to future cost that associated associated costs I position flexibility. the we there yes, And bank opportunity of think then facility tap the the XXXX debt thinking unamortized in it. We of able Well, July, look to found million the opportunity first out can levers the that It about until $X that in just was with with from the ourselves be at take to we X.XX% about that, opportunity write credit group. it. and was part a carrying was to

Marguerite Nader

Paul had opening to exposure increasing our debt statistics term and mentioned important as our balance looked decreasing to for us. to his maturity comments, sheet at in Eric, we and And X XXXX our maturing through to was X% years

Eric Wolfe

be of mentioned some I Yes, second It's a for And makes more guess I signs was interesting that really while to sort opportunities quiet pretty it now. and mean been that do time arise Right. sense. at you are could there It that a ago in point, more you case me. seeing was opportunities. the

just that suggests we're you're see starting curious the transactions going so to if And in future. to see larger something

Marguerite Nader

Sure.

made position I it to us, think in in to acquisition act debt we don't sense the to been for recent opportunities. rather the able there's general, but a limits years. slowdown addressing think transaction market respect and a With XXXX improve significant quickly on be

institutional assets for there's I think transactions and lack of is the volume quality a what we're low, available inventory. of for looking very just like

We they're that some seller financing. are sold portfolio, our using and seeing smaller fit really don't into often deals

kind of own we point of X,XXX and X,XXX you parks. owned That in of of of about own X,XXX assets, metrics, the maybe manufactured acquisition Half States. But consider then those are of about using the State government. it's you those. by set and same side, And assets home and leaves -- RV those And campgrounds. noninvestment-grade assets, XX,XXX United helpful our those. investment RV Federal private of to are kind about the grade, the XXX communities to with we out just available XX,XXX on remove XXX it's we get kind the when about smaller on

said we've set acquisition kind continue. market the opportunity large, always that of and we're the is seeing that lumpy, and can be So

Operator

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

John Kim

the isn't seems may Ian, as impact how bad as play we -- wondering Milton. what Milton you. versus if aftermath Hurricane Thank happened was and I out Thankfully, what at the Ian it could just like but review with

So do from X year. time, recollection, would full my this the during years guidance for you ago,

if I'm not assets and but same-store have them. your in pool. You all sure assets X reopened, they're not identified closed those

think and I cleanup costs have interruption. $XX million of you like business

earnings. Hurricane receive you your proceeds it's You proceeds included see only of early given the how out playing Milton from got see to still into the relatively damage. you and that I when back them wanted insurance the assessment But in

Marguerite Nader

Sure.

point you Paul absolutely any think see I after what taking there days pointed point, We're the the But at difference that we and you aren't just out in it's and true. what what early. the That's between that that saw in Ian relatively saw Milton can Core. of this out we properties out storm XX hit. we're

release first Ian, right with hit, was able our And or assess that. after to soon storm that we the were

-- So has great of our residents are a the doing we've in done Patrick customers the Chicago that. safe that course, pointed on our been team tirelessly has place, as been Florida and a good and they've make certain ground. to out, People working we've in and and are job

for to removed the you isn't But that after. on think take final say, there impact a what the XX But to of the a differences, good just and there give you focus So of thing us it be. it from Ian to significant I time properties storm. days work relates are Milton. bit as between to would highlighting little would It's is core and through numbers being going probably the I is

John Kim

closed Are And what or reopened? from X are those assets Ian? they happened to they permanently

Marguerite Nader

No.

Paul Seavey

our have appear XXXX. resumed We've operations, that XXXX, the of didn't Those partial the way just that assets we we Core which until in beginning return portfolio. condition properties. operations They're manage Core is at earliest No. the would that resumed to No. means those but they the

Marguerite Nader

But operation. the in properties are back

John Kim

early. know it's I And really

after around insurance Ian, given the X renewal this it and year's think renewal the increase. out, less, So time but do Where years X last that you play this occurrences there last just one? was a damages year, had XX% rate, following does how were you were

Marguerite Nader

Yes.

as tell. the early it's process our we out, first after it's pointed an I I renewal and John, think too months Xst because don't better you X what just you remember April quarter we as -- impact go that because think We'll through the in will know will obviously, renewal. we be already XXXX be to know --

what through But main working of and history. not driver the happened of highlighted unlike the past, the amount Helene years is claims rate And Milton. during we've we're

that's to be based on still determined So claim. the yet

Operator

Wolfe next line Carl question of from the And Keegan comes Research. from our

Keegan Carl

geographic there over events reduce just at had and head expansion maybe in mean years? all? be where big X maybe are given development is the the X just appetite state but on Florida? called at picture, know reconsidering, your we've your you you I pretty And your I to time, exposure sites, any out catastrophic now would exposure to

Marguerite Nader

Yes. Thanks.

storm I probably think just history the of think it's recency when appreciate long our But about someone's effect a happened. and with certainly that event inside storm about good portfolio. asked our events applies to

a diverse weather -- buy the events that's assets properties economic We all different That results. do more those for specifically, with the us. years. look been been geographically REIT-leading each able XX in always outperformed subject over we've Florida And have continue and to Florida, to been country. even properties events, to weather last times to post in outperformed. has strong have in We a Florida state year Florida the have for portfolio

call a average included on NOI when break highlighted shows over our then in with storm But and the couple X.X%, and years every of I has that industry. NOI we investor in that is down you that's an REIT a couple years. a think I basis our as overall Florida XXX portfolio Florida event shows that that's points, which company you the and calls of it further, analysis, by presentation, our consider the the to compares have last last for or XX ago about chart it favorably outperformed

kind ahead. of team has to at taken to other makes it election the economic and tick out years, like Florida what get analysis just try the events, come a impactfuls and storm -- understanding look times, to an of of so And continues

Keegan Carl

And pivoting really business, questions portion That's but to much a your it's Look, it. I I of helpful. transient. there's guess know always just smaller guys' around

gauge So but relative it guess was how on your a part quarter? It's does I weather? how here. expectations, perform within to much to few impact tough expectations question there an always the And of

And Do then views look given some and we annual Or just should what year, you general transient? have ability always if we next start sites? expect mean, your on to we pressure transient might accelerate? out think I trough see we are to downward it could hit to a to just your convert relative

Paul Seavey

about quarter, just the in variance individual that inclement the in in lose by speaking, Northeast just our and impact some Keegan, traction, And forecast. September, the September, performed large did certain of through In properties terms our almost transient Yes. about in the I caused line, caused talked properties in performance represented think be results say, generally in XX% the variance to the of can in because we the of I'd past North locations. areas. We've the the and August. when rent in weather X them September

we've small as type again, driven can weather effect. typically was number talked a it have and about, So that relatively of

Keegan Carl

we big just about to mean, starting business? Or be it trough? I thinking assume picture how 'XX the outlook, should is fair that a to guess on transient hit I just I like maybe that And mean,

Paul Seavey

talked of about demand. I this normalizing concept mean we've

in mind the the the impact is keep thing think to that weather. I of

favorable, the expect season. much as have, historically that So we about now year's That's we will it will can won't about is I summer well -- weather isn't. right as as be next perform say the and weather when the I same when we

Operator

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

Samir Khanal

more on to you both bit Marguerite, down, understanding or I'm like Paul and XX% maybe the were the a get trying color around seasonal quarter. of, RV just for provide better was that Marina? in side, it a

Patrick Waite

we Florida their to however, Patrick. headwinds about winding that a respect key seasonals. And the consistent out Throughout workers to that activity performed have transition, particularly the has well. transitional factor. with of construction been number overall, by Hurricane California and Pacific driven given point Yes, key have and really that West talked been been the responding really the Samir, that in it's then some to respect had Northwest other state. That's a I'd of been and the shifts, with on we've markets the Ian We've seen. Florida, the

Paul Seavey

I'll majority on just particular, ago and at at revenue Keegan. minute piggybacking we by When in year. at follow minority really third the the our look I driving Samir, of the And we what kind seasonal the quarter, overall to on in look locations, saw compared The prior to property decline. of a said growth a we growth is

that of caused remaining that, kind performance. negative drove walk variance just to the properties It was XX% So that really year-over-year of XX% the through the our generated X.X% growth in seasonal revenue.

Samir Khanal

transient to start as least just I from expense sort And And I at stabilize do lower into a you guess, heard we but the the next hit the more on starts 'XX? question, done can you then or year how is in or how business of and trying it. Paul, segment, normalize as job at expense trough previous RV we that a mean, if Payroll to much about next much do the Got primarily on year? can think a Payroll Okay. of plus good function understand on point? I'm the to side, you've Payroll this

Patrick Waite

businesses. on I'll employment to right, summer along of particularly is is some to employees RV a this been question, where challenges filling able earlier to Yes. manage which driven those add able we've with we're we've guess competing couple Samir, high business, Patrick. for competitive variables. One manage, in it's had the and component, by We've seasonal been the I has some other positions. markets a seasonal

like to cross-training managing types efficiencies property efficiencies sharing in But the also gained. continue labor. I to that temporary for at very and looking operations technology run to that those and responsibilities reflective diligent in approach some that modify us expenses efficiencies, think further are the always business, our has and that managing as drivers to I property and the but by you've at that's of focus we've So are well overtime of being of responded level. say on improve as the to XXXX. us helped hesitate this Certainly, to other business, level year help we're periodic there and would responding created to we'll the opportunities be results that seen the rate

Operator

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

James Feldman

on annual color Just comment rates? broad-based? you better Could RV geographic on And you regions? the in those Marina for specific additionally, renewal pricing Or power any X trying Great. worse how expectation and to between is compare? difference annual renewal are any thinking X.X% rates get RV or annual then some

Patrick Waite

be tends successive to out a a calendar more would of you Yes. with as -- our the a each front, turnover. section business of the a pro it's Marina of Marina XX% it, revenue cadence with that and tends in start the business. equally the me RV rata it's annual months the the the smaller business annual of And more high the on more point as let have very over -- granular say portfolio to I component first respect to out, the It's stream. That quarters. spread where has to or

So the it's XXXX consistent about Jersey, talking are the drivers renewal. the digits, a rates the New the season: mid-single the RV, we've the we're and overall kind York, customer in a consistent summer really that we've is of northern respect X The respect forward. With with consistent RV talked the New RV seen for normalization the very to to that, is between a are in annual Maine, slightly we're way our turnover but business segments. Wisconsin, through experienced of Illinois, the the rates. elevated some turnover, peak demand rebuilding consistent across as markets. with We've consistently we that And acquisition with pre-COVID working those about relatively new

of metro some respect and point the with area, kind very some the the the the areas strong submarkets, that's Chicago fairly occupancy with I'd to of locations, in outside key respect widespread it's Eastern the just strength to up in Seaboard the particularly out front. With So of locations key Wisconsin. on properties outside overall. in strength

strength with the So mid-X%, of to some of desirable more consistent our we see some points but locations. in it respect

James Feldman

bigger it Okay. really you more term, guess noise. and growing? creating presenting just you to you you? of feel be I especially up a just shrink do core it the you're mean, completely? conservative lot then like time your upside on guiding super Would asset than for transient rid how what there's lot RV I sure next what to even seems the for mean change business? I longer it, get this a guess are you worth Like is do the mean a And on it about make might to then Is I I business? And business, thoughts of taking downside. think really just picture, calls RV year, of Or

Marguerite Nader

for we and on because annual the and So had hallmarks with continue to Jamie, results efforts has the strong the into the focus really business transient, you've it, like business, years. focused it base, we seen business. the of in on XX-plus the has numbers. The absolutely the and annual RV volatility base, we those and housing We all got really it of manufactured annual

new nothing there's there. So

I transient to and the lead. the a think remember base that it's paying customer transient important is

So a and an customer then the to that's it's able way properties experience our become annual. us opposed paying to lead that be other us, as to a pays around,

function So of with we a else our the going and so to the transient in is really amount of call I company. business, RV like discussion on the business respect everything the think, well

Operator

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

Michael Goldsmith

First that base year base kind and last while of down bit where the points, the came basis on inflation it more seems increase, XXXX is and RV coming like rent from XX points a that. basis rent is XXX MH down question the is, than down increase

of is are at more kind I is that is bit where you're that of So RV the question little some pressure. prior markets with some a annual there the guess, getting what facing

came base rider 'XX? later why for And MH? annual much for there some rent base so with more increases than our the Are down implications other rent went the RV so you increase

Patrick Waite

level competitive somewhat. of we saw the We mean rate It I transient. speak correlation, in all the a Yes. increase but that's period between lines, growth, we highlight seeing demand the rate guess property and business still come mid-X% we're the normalizing strong and relationship did with would to I pretty demand, is COVID very as and the that in say growth, is our and we growth there CPI, RV demand seems set. And annual seasonal good. I across a largely at through as what the in it's by I'd very saw an highlighted that rent -- we've for and the strong range driven space the

So the is of with portfolio, periods acknowledges more think, mid-X% it that increases reflective I of demand. annual opposed our rate moderate rate a across we're demand period consistent peak as to in but also growth,

Michael Goldsmith

it. versus debt? Is process a in of And pressures equity think leverage about to how and Do follow-up issuing dilutive do short my thought of that you nature question sort then the have about you equity equity still is target potentially just ratio? versus issuing of longer term accretive that? Got term like related play? issuing And the

Paul Seavey

Michael, we a not don't. leverage target. We have do

have one. history, We our not, had in

Our focus are we ready has making opportunities. financial historically flexibility, sure that for been on

And first the the to so of that. part answer that's

about with thinking to of kind part in a just That's higher-cost the associated second the The remove been and our opportunity remove stack. debt of that. debt managing of of long strategy hallmark terms uncertainty

So...

Operator

Bank. line from Deutsche the next Our from question Omotayo Okusanya of comes

Omotayo Okusanya

nature us distribution? the million JV distribution the just of that on bit a you Could the to $X question talk Quick little side. on about

Paul Seavey

Sure.

million It's Just as own aggregate a joint an There's less reminder, those JVs. interests across investment. X than $XXX we ventures. in

quarter guidance course JV refinancing our contribution generate GAAP guidance and of of the income income ordinary one included with loans consistent of assets. In transactions the of from in recognized income the ownership, past of secured quarter. this and Our JV we like this third type practice, by our distribution

Omotayo Okusanya

Okay.

was debt to led and distribution? that the a So refinanced

Paul Seavey

Correct.

the the applied the investment X. states reaches X, basis And are when guidance And then as until income. reaches book basis so that GAAP to distributions your excess cash recognized is

Omotayo Okusanya

Okay.

that's So happening. what's

So the not below is basis X.

to a Okay, me. that sense helpful. of lot is makes That

Operator

comes Advisors. And from Street Green our line next the David from of Siegel question

John Pawlowski

on or actually. revenue right and leading see growth? quarter, do expect This Based first year-over-year for indicators, is seasonal seasonal you now on you John Quick for on, quarter declines RVs. fourth RV season in winter question

Paul Seavey

is is quarter. I'm transient That's we the in XX% for slightly the guidance quarter our Well, flat fourth the I tuck-in year. have are I'll higher last just that forecast speak the for can this rent. topic. pacing. slightly first there the ahead to than reservation time tracking since Seasonal of in to of quarter, we essentially Transient reserved fourth and terms

John Pawlowski

the is the But just out Okay. any color, shaking of indicators the seasonal quarter? leading given year quarter the a weight revenue, quarter, busy in very first How is? on for Paul, first full how first demand business much

Paul Seavey

Yes.

think the first that quarter, it's to with respect I early.

flat we're year. up I to slightly. end will the think down continue of the the And leading indicators maybe anticipating that, are pick as we that through

John Pawlowski

probably boosted Okay. short-term from the hasn't more And just revenue RV conversions But of annual translating I've to of think side workers growth this surprised RV the some a know transit's then modest revenue that rate question from how there's annual drag a growth. to rate been growth. bit growth year. the above on on kind through leaving annual I

expect year? on to annuals rate revenue? So to above from X.X% of additional you some drags next X.X% any Or the we rate that do flow accretion assumed, conversions expect transients from growth should through the from

Paul Seavey

kind gain of to There of other annual. we'll have the RV annual And think we're occupying continue drag. as spaces about occupancy in that be don't might to we operations locations at transition stabilized some words, we that revenue. could do We've offset incremental those or in displaced otherwise the I a portfolio. to talked the year core residents across some next a that that have bit

a anticipate otherwise. as up, significantly as not but would net I basis, on we being think

John Pawlowski

question. And one of essentially hole on to Is recent the more increase you of transient with in tenants Have some in me. recently -- annual for that that Thanks noticed years. of attrition have Okay. follow-up bearing from an the bucket? converted recent

Patrick Waite

Patrick. it's John,

that's reasonable it. think characterize think it a guess way I a I I about bit little would to differently.

still through walking period that with moved post-COVID but degree and and around, was social of were we a that where lifestyle. the RV group well up very kind lines there through people kind was I camping high As isolating family earlier, focus own of able to your within on move of

isn't more significant as very we're So at growth higher a we strong point where build of saw well demand with as that the rate pace in occupancy back keeping just attrition to growth. occupancy. led really normalized now the And

up. occupancy went So

It's a of fair level working be through point we're higher level new a group. But attrition speak I of might building a on to point, that pace. and customer attrition. a That's broader detail. level have of back the pre-COVID acquisition consistent although with we're We fair can't that any of business that, there

work kind we'd Paul an business of occupancy rate more to highlighted, looks respect we the expect of pre-COVID it's that like interaction process, with way and X. So that something as And run our turnover. to through as would our I revert

Operator

next of Our comes the Guell Baird. Mason from from question line

Mason P. Guell

rate, you Or are changes but insurance and any plan make are on Less more to insurance. on question at? limits? comfortable Another your maybe where structure. you you to in the Do deductibles

Marguerite Nader

Yes.

it's tell. -- to that's think too I early

time every job think our out detailing good we renewal. of I coverage do a after pretty every

process early coverage. -- we're to the not to continue what's haven't yet. it's So change pretty of a It's in do function we'll that, and in in any have really available the we started conversations but those determine to market

Mason P. Guell

hurricane And do uptick in a meaningful you from demand workers? expect relief

Marguerite Nader

It for just to result occupancy as through the and you an do see historically look increase, situated what out. have that. a you of of If of understanding an determine after hurricane weeks and people and are, it work kind takes a in how while after help of seen are needed an to many needs the get kind as as what at or a their few events we've increase storm after people system the -- people

Operator

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

Anthony Hau

year? drag quantify the you Paul, earlier. displaced can that you next for residents I mentioned from think

Paul Seavey

in a was XXXX. over little million It Yes. $X.X

Anthony Hau

And do you drag that XXXX? think continue another XXXX, million $X will like in in

Paul Seavey

No. what I we in is $X.X million mean earned XXXX.

X to eases over time. that potentially, So

Anthony Hau

at But last mentioned year. new guys at mark-to-market time, the XX%, leases X%, from remained like are unchanged at right, same you And X%. the tenants renewing like then you for that

your higher that? are portfolio? what So guys market of rent in much mean you And in than market just growth like curious that that growth doesn't the terms seeing rent is

Paul Seavey

your that sure XX% a resident was they're rent paying I'm is higher not who a one tracking Anthony. the a there. new question, customer When comes I'm in, than leaves and

Patrick Waite

think about to helps maybe Anthony, way. it this

in on As and the we in reached our clearly, charging occupancy, business the there's across And that MH and a period a correlation as a lines. We in inflation, we've in inflation, saw we demand based we increases inflation were well. space market of demand. move rates growth higher to period from or significant low-to-moderate of sequential all saw

of period, demand. at was just went inflationary So our a we've higher Rates up years a history. than that couple higher rate seen higher in

mid-single less market the full So we that, than rates be that getting sometimes higher long-term particular taking property. those increases something X%, X%, And we'll our in residents, on very to significantly depending the view, of an led increase have X%, long-term a digits.

mark-to-market. residents a you our and our customer a years go That's long-term or it, new an couple customer buyer, earn-in create of a rate really or of that's to call of charged double-digit between used home if through gap one what you drove the, properties. incoming that, So start run a homebuyer, larger rate the the to MH of

Operator

question-and-answer comments. the for Nader concludes like program any Marguerite to to the turn I'd this This back At time, session. closing

Marguerite Nader

us call. you you forward quarter's to our on for today. We look Thank updating next joining

Operator

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

You disconnect. day. Good may now

Equity LifeStyle Properties (ELS) 22 Oct 242024 Q3 Earnings call transcript