ELS - Earnings call transcript Q4 2024 | 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 2024 Results.

Our feature 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 any question-and-answer session, management ask that you limit yourself to 2 questions, so everyone who would like to participate has ample opportunity.

As a reminder, this call is being recorded. Certain matters discussed during this conference call may contain forward-looking statements in the meanings of the federal securities laws.

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

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

Marguerite Nader

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

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

report Our good our industry. reflect to our year-end and is business a on time

last normalized XX our the time. NOI nearly over core the industry average outpacing grew that both average FFO Over REIT X.X% and years, grew X%,

balance and through X% initial shape our not average for XX%. Last to of debt risk, due guidance issued in maturity the amortizing maturity debt of with years, only XXXX. is subject is great XX% Our term X and our we to compared REIT refinance an XXXX debt in shows schedule night, our sheet fully of coming of average

of a revenue each Our line strength guidance market including both showed environment residents. process based NOI. property, with in operating built and our and results The is the on survey robust communication top

growth. on translating focus growth have FFO continued into we our Importantly, NOI

evolved growth is overall properties well growth the because years. The year of possible has The efficient full impressively XXXX, our customer with the normalized our strength the to communities. we over the over plans purchasing The of bathrooms. The X%. centerpiece XX This that X have current landscape. as energy changes last communities have industry and bedrooms, FFO homes strengthened strong rate MH For floor our kitchens industry contemporary the as of are configurations. prospective bath increased homes base homes are our with are and generally for homes we X time anticipate

U.S., a our resale our ownership like from models, in their us our in RVs. home occupancy of us their stay RV an of and our annual in in our choose our develops considers revenue derived our results on the communities any activity annual residents sell Similar robust for own have event. Within level neighborhood second park where with We market focus property be footprint, our efforts the communities. operate resort another is existing to environment in create. our their is we residents maintaining we the high primary resident reasons communities the high-quality life home. Just sale to of of occupancy continues saw residents pride results we to important. in customers. sell RV year, a The our customer, to customers and and our homeowner our home. XX% our from as This helped nearly homes customer of MH roots residents These residents This have neighborhoods that homes in their X% in customers. XX% impressive our who cottages

at XXXX metros park in communities have sold in of average chance to offer model properties a $XX,XXX. home price an The affordable the a price. second Our near major was our

an stay, We block which our expose through longer-term properties stream. important is the to transient new our revenue customers continue building for to

balance $X.XX annual primary the after drivers dividend the dividend. In strong are our per million sheet cash recurring of has meeting underlying and on discretionary our we X% dividend approved decision flow, growth payments, $XXX of Next, to obligations setting of our our I dividend to would and policy. approximately you rate stability of increase. Board like to XXXX increase XXXX, an solid our share, CapEx capital have the the the payments. The and update trends The for expect in business principal

average have want Over the we X.X%, the out compared increased of another past our and year's for XX our of dividend years, per year. by thank team year annual XX% of successful XXst closing the marks this dividend dividend an average REIT members year to growth. I consecutive to

we in provide details dividend been turn property about the provide more our have in increase REIT-leading members. I We to by over hard announced work corporate to of and our regional post strength done team field, see and Patrick X,XXX offices XXXX into able growth, now to it operations. details because NOI the an the will to

Patrick Waite

Thanks, And XX effort since years IPO, lifestyle consistent the population deliberate Margarite. than we've provide more made years. growth In markets experienced our customers. those areas our our portfolio grow a to in over the for a have that quality

locations and Sunbelt and our and recycle in want capital markets live promising vacation. less the in properties guests divestive that have where in to residents We coastal

full some season states our it X are our these markets. in operations swing, detail And and Arizona. about largest Our would helpful Florida, be thought in I with California winter to provide

Our Sunbelt trends. population to locations continue growth see favorable

aged population those demographic years, Over the next are plus. growth, Arizona California of particularly expected X focused to and among XX steady Florida, experience our

East supported home with core sales. MH Sunbelt Mesa. In led the by revenue demographic, markets, MH Arizona and the consistent Angeles Global at and Northern growth California California for estimated S&P and growth Phoenix San St. Northern in Florida, RV Tampa, Palm result are within California, for the MH Florida Tampa, among occupied, demand. portfolio. Primary present occupancy, was CAGR During portfolios and Beach CAGR benefited San these and control. Pete projects. Arizona, new San Mesa, markets, on Francisco states California while X%, and and Note RV Southern there current Lauderdale, from West Fort of Los Sunbelt increase are this anchor and and and nearly emphasizes Southern the markets in these in X.X% rent Coast. that Diego. the is X%, in largely primary anchored expansion including as by opportunities XXX while our XX% Lauderdale, to California revenue than California these our X% primary and markets, Florida Beach of strength Arizona Pete respectively. Both Florida Phoenix, In markets that our above And the and while more occupancy have The time and in a estimates Arizona portfolio West San X.X% ongoing of is frame, mid-X%, X-year XX%, on our Jose by Fort Gulf Palm Coast market the was Americas of our

of the the I Arizona as by revenue consistent both was the For X-year submarkets mid-X%, referenced and A RV primary Florida in in future RV, markets and MH growth these key and as in growth CAGR primary driver that earlier, largely Arizona. same support our will that well expansion submarkets, population markets. growth the driven and opportunities our Florida in

last we from Arizona. and our XX%, of we are in-place of with development our XXX County and customers. X,XXX sites MH an mixed-use rates Both expansions construction. Two risk over X% the properties sites annual generated portfolio entitlement the land. expansion approach through XX% pipeline years, various business RV in operating Stabilized are have reward expansions, in have range Florida amenities, recognition, the with and our nearly MH in parcels XX projects of residents Expansions benefits with with part XX from and staffing, an per XXX the that acquisition to new referrals present Florida and RV additional our approximately an year. of MH our have that core projects across expansions a the sites Arizona. at than because property and examples and Cove yields name MH-RV half of we leads Over projects of represent our developed X X,XXX of been established attractive guests. Among for to of rather referrals to base new sites in sites additional of an properties Lease-up stages sites are customers. with these of good of MontaVista those

During customers of which is to process, conversions the source flexibility on book expansions to as generate reservations to revenue also the to stays. RV sites well best our property, new bacon introducing longer-term lease-up offer transient as

in-place see our for which demand consistent to as properties, well the as our continue business supports We expansions.

We as X of manufactured have of part streams our revenue provide leads that annual site RV results long-term annual XX% of and receive in for turn model home XXX,XXX or focused Paul. at demonstrated MH nearly new inquiry on revenues. Demand potential their customers from to it over contact we property properties. I'll by more for their is annually and RV now information who representing park stable, occupancy, total qualified than

Paul Seavey

per to for some generated of balance and compared quarter quarter fourth Strong NOI and for line the Thanks, morning, review in prior FFO year-to-date. portfolio guidance. year. the fourth Patrick. and periods, was discuss respectively, in guidance our share, including in X.X% with results, in X.X% normalized X.X% with share $X.XX and our per our close quarter everyone. quarter considerations Growth our and was first XXXX, discussion a year-to-date core assumptions will performance I FFO the quarter growth X.X% normal year Good full sheet. Fourth key

during sites Rent by year XXX income rental rental to the base Marina and resident XXXX, increases compared core occupancy new residents rental and for total notice represents XXXX because was based year RV prior the Marina year. Full increased homeowners annual X.X% RV to renewing from approximately increased increased we and points, of growth XX% X.X% income, after community-based compared XX paid Core rent primarily basis and turnover. year. which income of full to market residents

] and our was in recovery to property Our real which X.X% from year, decreased and upgrades XXXX. year prior trails approximately XXX,XXX increases full utility includes contribution approximately XXXX. Full business XXXX XX,XXX, $XX.X increased X.X% year net [ year the expenses decreased other camping members sold increased Core We the tax purchased compared from X,XXX during core pass pass-through same XXXX. X.X% compared XXXX. million X.X%. The seasonal transient and estate for rent memberships, membership operating full to in income period of

are provide and in included by remarks operations risk to current provide supplemental of noncore for intended year and for property projections growth qualified first $X.X in supplemental generated from and $XX full the following and earnings our the was results. ranges factors million All XXXX. The release rate quarter income and release full revenue Our package year and our expense of context XXXX quarter million by The our future package. overview are the guidance. press press portfolio an estimate

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

Our X% for X.X% annuals X.X% and million of Marina in represents to property revenues, occupancy. Full rent the guidance guidance at combined to X.X%, X.X% to rental expect coming management RV midpoint $XXX in year rate and rent, growth rent project portfolio, for And core core $XXX year to is G&A growth our the million. In range for Marina core is of income growth year approximately from range. points X.X% from XX% assumes basis core for full X% year X.X% with to following RV to expense and the X.X%. and XX the full guidance Full Marina range we ranges, RV of and expenses X.X% guidance Annual MH NOI. the core and X.X% we growth

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

the X.X% our approximately growth to our annual quarter First growth midpoint at X.X% project at rent in first RV midpoint and of is the guidance range. We guidance Marina range. MH rent quarter of be

with financing balance guidance in the RV market. first assumes our provide our sheet transient some reservation performed on Our seasonal current now revenues quarter and and comments line pacing. I'll

execute opportunities. is sheet balance allocation well positioned capital to Our on

weighted average coverage is interest of a our In X.Xx for and X.X modest all debt near-term is debt-to-EBITDAre addition maturity to and X.Xx. maturities years,

We our combined access $X.X capital credit have line and billion ATM of to programs. of from

and and X.Xx many depending terms flexibility, and and quality. including capital We asset have Current continue to multiple sources sheet on X.Xx sponsor XX% type are secured X.XX%, to us. Current quoted of believe to balance service coverage. debt we XX-year X.XX% place high importance lender, factors, loans vary XX% on debt to borrower and available between we loan-to-value

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

open up to like for it Now questions. we would

Operator

[Operator Instructions] Our the Wolff first from question will line of Eric come from Citi.

Eric Wolfe

about and expense wondering a It's to buildup the talk your was controls number good low drivers in guidance if some I are. expense what following XXXX. key just could your you

Marguerite Nader

still Eric, can us? you with you hear -- are

Eric Wolfe

I'm Yes, here.

Marguerite Nader

will Paul walk Wonderful. Okay. through that. .

Paul Seavey

Sure. Sure.

to guided few generally CPI savings line expense track we've with So items. the anticipated to in growth a

past assumption assumed and Our real with line in mid-single-digit including line savings administrative in experience for certain have estate of membership commissions. our growth taxes expenses we items, is

guide to for us next Eric? the brings that So year,

Eric Wolfe

it Right. repeat that. just other a $X about to you're maybe distribution And -- wondering million that think items, because in income was a maybe I But like this million year. causing looks JV and what's could so that you guiding in line then I expenses. you $X won't had new confirm XXXX increase

if Again, basis. me . And the I'm sure increase million what's be causing know that's like not let if but if core a might right. So actual so, that? that's right, more on

Paul Seavey

Yes.

increase we So as and We said. periodically, the expectation when those have first were the anticipate about our primary ancillary is distributions, you of activity. as talking quarter million, do $X it And and we periodically, the third in a driver primary for the recognized the I distribution the that JV we year-over-year, of similar quarter mentioned, XXXX, is do, driver 'XX. distribution in of do, we about sales

Eric Wolfe

it. Got

in quarter? So about distribution first million the $X

Patrick Waite

Yes.

Operator

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

Michael Goldsmith

X%. what confident kind like through the seasonal of more first to My implies the your is you then visibility little transient in bit the then RV year, the balance First the improved for also first question The balance the on quarter year? quarter? about of down softness down question guidance Can X%, is And trends and makes walk the transient for a you that through it's first of RV.

Paul Seavey

Sure.

reservation at quarter. I as first line our guidance both pacing current put with remarks, in mentioned and That's together used my Michael, for point for transient. They're for the quarter. budget our seasonal in our So to we've tracking the essentially this

I through Patrick region. walk can think color some by

Patrick Waite

seasonal Yes, highlight the and I'll component.

the or revenue are those Just first drive stock seasonal and of us customers. They And fly full store the for in their seasonal the down down as a north reminder, the customers half roughly they'll from really either to to Sunbelt they comes rolling year quarter. the full factors north. kind I RV during some leading really for the their The bookend of drive back Sunbelt own Sunbelt they'll in it of late QX. the or QX mean season, the off-season to destination up performance to the the QX. QX, season started starting

in impact Just now demand customers, what behind hurricanes uncertainty the disruption partially It's from led by driven from a reminder, the hearing have the presidential to a experienced around we some also in us. business. we're Florida. And lag our a Canadian of that's election our

Michael Goldsmith

in of more of home also like it. they basis particular, kind down And sort influence revenue a continued hurricanes. Got a were And home as follow-up my a any with per the to on materially then seemed basis. that? result on continuation volume the do the there on of disruption and Is any has pretty of is from financials there -- sales

So little on maybe touch can bit you that. a on

Patrick Waite

pointed as new was, that sales the little was hurricane. year-over-year. home disruptions the And significantly down the for the XX% you quarter result we're a from of Yes. That over out,

been through of and there up. sold we new COVID, start the expansions locations We And that in the consider as last pre-COVID profile normal that we to year couple also just And decline. And That's I that's well. home a normalizing. highlight rate were just MH was be Sunbelt had stable. neighborhood relatively We're impact season that to demand out it into contributed years talked where having the to had so an inventory, good demand I'd mild XXX. still the some that largely. of the for on getting sales have peak been we've would very over to XXX a the about run a business of filled

Marguerite Nader

of about been note right storm, another of properties all our operational are just Michael, and part And the your first in have after the Milton, question effectively.

Michael Goldsmith

it. Got

home fell the of sounds home continue quarter as of continue -- that are may as back fair? just it the So in like out kind the sales home come not like to is normalize, XXXX, sales sales like that fourth --

Patrick Waite

their that's hurricane guess that that delay disruption and comes right, can ultimate just highlight the also can for of but are something hurricane plans decision. when from I'd be I that in the It's comes Yes, the a the home in some weeks. the people who back a through, following shopping

Operator

next the from line Feldman will of Our question Fargo. Jamie come Wells from

James Feldman

total is RV implies Marina, guidance growth X.X% your core current your and rental guidance base revenue MH, income but for growth X.X%. So

So whether demand rental it's other X,XXX and trails home delta, what's income. that income, wondering, driving for utility we're slower or

Paul Seavey

it's of storms. other point I of other is interruption the -- utility the one recognition drivers And prior insurance income, business income. in and to think I there would from proceeds primarily timing the of

Michael Bilerman

Okay. X,XXX year-over-year. as a so in lower declined It's And than Trails 'XX levels. now membership XXXX count follow-up, your

from until sites either 'XX, in XX,XXX growth to long demand more see XX,XXX revenue RV XXXX in in Thousand increased or within the reinflection you've how While Trails in portfolio? a we

Marguerite Nader

Yes.

to those focus of revenue now membership X%, average we're I recurring seeing increased that the point beginning saw you the years. think, of by has members I in a Thousand changed a membership number members. But that decline revenue. some stable the Jamie, we of out an Dos saw -- at X spike the growing think last our Trails, And subscription our it's growth. over COVID, is absolute we on if of over look about during attrition Then important ownership with we and the years, has followed over and

line Thousand to portfolio. So Trails we'll within on the do focus continue that those items and

James Feldman

the if years, mind way RV I I market Or this about following declining think you up, me there's so we a mean, the is all levels? revenue next on better be looking about because mean, just much wrong? is think I few usage So do this at don't you if and maybe there just guess, you thinking should focus

Marguerite Nader

it think this. I guess I like would of

our if seen XXXX, And in X,XXX offering. you sold passes subscription growth membership I almost we passes. in impressive our think were at year, selling we of XX,XXX. been initial look In we've the offering last really Camp has

locations. camp I I they is product. think for a shows -- allows demand It will and many in really different the strong to people can think belong system I the continue. So the to very demand where that And

Operator

will Steve ISI. from from come question Evercore Next Sakwa

Steve Sakwa

Just on income. to and kind Marine of zero RV base in rental the

you think bit I maybe had XX% reiterated the But the of that below sort annual on of which those X.X% X.X%, the it's imply a about said X.X%, and annual number you little last customers. call, midpoint growth of that the like so to would business. Marina is slower the increases here were on

marinas the So of seeing you talk could on 'XX? about just what you're and maybe kind pricing for

Patrick Waite

million moving occupancy attrition of And the customers. normalized, not just annual accelerated. by Yes. that the for pent-up of schedules historical million I'll some have guests was more COVID that a lower people I leisure that's for -- norm duration is the between of for as through of COVID RV trend for kind much, and kind guidance space driven It's XXXX. were of had through X% RV point annual attrition $X.X attrition that, of RV time on our accelerated above has time XXXX. Typical higher friends. And with a revenue the the spending as and the and some our family because around lower difference mean some in activities as around the largely in the for starting number the the $X.X is customers reference

having lower attrition. we've worked as a our way for that up through starting We point ended XXXX. So

Steve Sakwa

just is? it Marina line you kind with can comment pricing Patrick, on X.X%? Is of in that where

Patrick Waite

that. Pyes, line yes. with Yes, the sure. Yes, it's It's overall with in line in guide.

Steve Sakwa

a and your expense to And And of flat Eric's I There's question to R&M focus insurance. Paul, go down initially on on in Okay. just to that lot basically been then maybe, back 'XX. payroll guidance. also your noticed were the

did you on and you where thinking you maybe are you payroll? and take think mitigate insurance of 'XX, in are about how And speak to renewal about the to just labor? could what So you R&M labor steps sort as

Paul Seavey

mean things. I a of couple Sure.

we As it insurance, to growth assumption. an do relates have expense

that are we're to comparison 'XX, times are not that guidance respect because favorable the in the a in our we this that we a to difficult We R&M, had negotiations. With year-over-year comp make so disclosing active process expectation to start in a few that. I've don't of talked XXXX. had renewals, XXXX, We about public we during

kind payroll we CPI-type expenses. why And same reference growth broadly then see as I which is to And made normalizing, say of across the to well. our so applies I'd

Operator

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

John Kim

all was to wildfires as minds. impact kind I California But insurance, and have the your talk on And a there to mean, put Hurricane sure Milton will renewal this on wildfires on to that want about our wildfires just year? you back of the your impact Deep do I make no follow-up insurance Sea the operations. and questions an Steve's of think the

Marguerite Nader

Sure.

properties Southern properties any were and have instances, we're XX we and staging trucks rebuild ready applicable, fires, fire -- to of displaced residents in our of many not cities. some departments the accommodate but by and local thankfully. and provided Where and with worked the of our properties in emergency temporary impacted We workers, the kind as fire they any for areas California workers

as relates So California. it to that's

what relates to it's the tell will next impact to as mentioned, year. early it As too the to for insurance renewal, rates Paul be

too what's in Our important, of it's claims. it's to And level of think what happens of outside the tell claims. -- global and claims early inside the -- happening are global important California I the

John Kim

an guidance expense ignores X.X% the insurance assumption the So renewal includes or insurance? to of just impact increase on your clarify,

Marguerite Nader

of in negotiations. as we're includes assumption. But the it No, an Paul said, middle

let what we And are about assumptions we'll to everybody due generally negotiations. quarter And know call. on next so our those talk don't the

John Kim

get your year line delivered was returns, was XX lot ]which and a I [ was ] about your X-year last back mentioned and to talked you you of Patrick over the to guidance, expect [ X,XXX. average Do last with related. you expansion then site in level timing year? And below what high X,XXX know somewhat that expansion this Okay. X but year, science it

Patrick Waite

projects is some lines to related timing on It longer from related through Yes. entitlements and time completion. also getting

XXXX, to $XXX For the of $XXX million neighborhood in somewhere number million. I'd be to expect the

to continue time that line that I Florida. opening it develop We expansion that projects, in half of referenced and highlight and significant roughly a I'd comments, portion are our my pipeline, in

growth If offices and of you think down the some blockages, periodic way on the creating it then in going and Florida level slows up to through from about these City permitting our impact County from finish. works projects on hurricanes, that timing just its it entitlements ends the where activity start -- and

John Kim

And that of what typical between expansions is and MH breakdown RV?

Patrick Waite

XX-XX going I And to line of leaning it come to roughly towards I the XXXX, was side think In more in that's into coming RV. think MH years.

the a have way their through be pipeline. larger to couple that projects of working going are We

Marguerite Nader

our a And land of about reminder, RV XX% footprint. John, is as excess the on

sense that. a you give to just of So

Operator

Our will from from the come next question of Securities. Anthony Hau Truist line

Anthony Hau

the Can provide little color more guidance NOI assumed year? than why noncore bit you guys lower on a last

Paul Seavey

Sure, Anthony.

properties to returning associated timing and assumptions operations. is 'XX received stabilized $XX.X is to in the million at That in remainder a the There's over noncore from for difference. with NOI guidance $XX properties at XXXX, million just we that to $X XXXX. 'XX, noncore for recovery of the Really, from change for moving certain insurance impact slight core. our So million of compares midpoint the

Anthony Hau

Okay.

the to this by assume that fully operational all that affected stabilized be it Ian properties does by were So year? and Hurricane

Paul Seavey

guess, yet I They remain we're level. in fully operations. -- stabilized to stabilized, but they bold that's reached noncore do statement, return because a I them haven't working to that

Anthony Hau

business then $XX And what Got XXXX? collected for you I in interruption guidance around income guys XXXX. think assume in you. the does million

Paul Seavey

normalized assumption, XXXX. did to by million number embedded We the of essentially in impacted collect our $XX operations. in timing but the is is That around return

really So we a to business then receive because as operations I NOI, less disclose toggles and don't interruption. we it generate improve have number

Operator

of the from line come Golladay will question from Baird. next Wesley Our

Wesley Golladay

over sites. seasonality want just I throughout like any attrition, throughout And did XX,XXX, the attrition? did annual the the sites. the number, have some year if decreasing And or guidance you just It I to annual guess, there's your year? just curious mention to go about you increasing looks XX,XXX embed that to

Patrick Waite

I mean, to driven the question largely and earlier a Yes. I guess attrition. answer, back little by is which

negatively we in transitional and Some Florida Florida that And impacted a mentioned to respect year-over-year. transition had particularly factors, and I business of workforce the contributing the with turnover from in related present housing Hurricane Hurricanes Northeast Milton in North to attrition Helene Ian. The was through turnover COVID we'll would those normal in the we And base. a had expected that been that as normalization. slows, and to But build I that's reduction that then expect has of levels, really the in continue the pre-COVID. build of business as annual driver

Wesley Golladay

maybe be the way the membership, good power of like way members? and I it tiers different higher it business. share to [ paying I'm churning sounds it seeing you mean, to users. segment the people a be Okay. And some your looking Maybe business the maybe be that thousand you tire the could at it? maybe That to at maybe going the tiers, are back or even I'm that ] the free then have lower more may you stable. growing It may of business of look Is seems is,

Marguerite Nader

Yes.

the the originations. -- the in see that you membership reduction shows supplemental I the think on promotional in can

talk transient isn't passes memberships. level. And if lower the there and some we've RV there activity seen see those comes from isn't we just that the are the if -- reduction at we and that a sell property, initial a property about, those you those is transient line happening a and at leads of how inside -- item if impacts dealer in that activity So portfolio, reduction of the activity the that which in transient lot the of

Operator

Okusanya Our from Deutsche next question from line will Bank. Omotayo come

Omotayo Okusanya

Just and with wanted that in seasonality the to just again the base associated obviously, membership decrease membership touch business. again, sequential on the in total

seasonality. purely little was felt the So like we just looks than wait probably decrease a just from higher we expected

curious grow kind during for if going of have implement in the what Just memberships quarter there XXXX? total indications been any on and how those may may

Marguerite Nader

is touched Yes. a activity, kind really think number really then Actually, in reduce camp overall dealer and of it I I on the in X count reduction things little the change member member of just the sales. transient the that is pass reduced RV bit

So that drivers saw. X we those are the

as And member of members RV those so transient the and conversion paid then members and base. see an the up RV pick traffic increase to memberships as you'd picks in up dealer dealer

Samir Khanal

there there it's rental the business -- RV Okay. in for That's in slowdown more helpful. sound little kind income kind 'XX base of anything you just stick even like bit some of annual regards in Is of Marina little showing MH number. Could is in in kind be you little harder to bit a of to 'XX? harder talk trying understand about, kind Is It in push kind business. to annual year-over-year a business, for bit versus to comps? that a just a demand? a the both of growth slowdown that regards on was rents? 'XX business change growth itself, the baseline Just invested bit if the does income of of seems that of expectations to a with And then of and just just

Patrick Waite

it's our business. to locations and Yes. MH. strength I the supported with the that that start fundamentals I'll of mean rate of I growth that just just and achieve, driven highlight the by I we're really guess able And

aging to in highlighted U.S. really have I that tailwinds the only baby cohorts work opening but some demographic their strong comments, boomers, my we not the way through are going in success As

And CPI, the very specifically, kind rate a been reflect in just us to demand. pertains slowdown points a I'd highlight can we're the achieving spread point respect in strong with that to occupancy -- Is to really the basis kind that's So But gains like 'XX. of good loadout. curious just versus XX, and a as we're there? long-term relationship versus you to of And XXX 'XX 'XX anything like about Or why 'XX? -- less that's over our now a spot it favorable history. increases in for specifically, it

Paul Seavey

you think, demand And are that tied in turnover we in the market drives if increase. at portion keep XX%. in made true, I when is resident points do continue which that to to 'XX 'XX the Tayo, MH the increase you all increases of CPI composition we have are a leases, see CPI. mind was lower absolutely do composition drove which think rents, the But the the 'XX, are 'XX, to it that Patrick look and I of on the than

Operator

from question of Street Next will Siegel Advisors. line from David come the Green

Unknown Analyst

the annual just assuming clarify the X% a I are that churn. Are on to want that for levels RV historical bit you 'XX churn back to level?

Paul Seavey

The that of Yes, a attrition years as there in of as last a is we're the our impacts. normalizing business to the Florida. housing mentioned, associated projecting consistent of it, disruptions part going other way I in hurricanes that's well couple of different on history. with some transition workforce -- the the Certainly, a course our we're that's over our with run couple But in just had and components as business. transitional ordinary as also we were

Unknown Analyst

XQ. over can transient an expectations to regards XQ versus us from the with demand. that easier for beyond of to is guidance and the to improvements help And seasonal balance breakout of attributable the improvement the curious if just the you how in versus -- period comp underlying an and of year, And seems much I'm Great. understand imply

Paul Seavey

Yes.

process, think, I it David, our essentially. goes to

we a and amount our we And basis about, we first quarterly transient, on think all, put then for of so forecast and the when our that are seasonal budget in. together update we

The earn of year by to the year full quarter, seasonal we third that of a and have rent our of short shift we're we it amount is business about transient that and XX% we such about And when transient. a business then almost earned. But we're our full of our has than that and at the booking what so XX% earn XX% visibility. talking we window, more of don't significant about starts a first anticipated seasonal quarter, talk transient end

into flat don't the period. And just that pacing weather we we're using drive based each on slightly better a variables we business. presentation then because visibility see the quarter as the information we for reservation to such assumption revenues for beyond as have components the up the those So of into head that is that, that of

Operator

the time, have Marguerite like Nader at this line, to closing would we back turn questions on And comments. I no to over since it more for

Marguerite Nader

very your today's participation care. you updates providing in for forward much for Thank to call. We look next Take you quarter.

Equity LifeStyle Properties (ELS) 28 Jan 252024 Q4 Earnings call transcript