SUI - Earnings call transcript Q2 2018

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Second Quarter 2018 Earnings Conference Call. At this time, management would like to inform you that certain statements made during this conference call, which are not historical facts, may be deemed forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995.

Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's periodic filings with the SEC. obligation events or date or release. no statements any of undertakes reflect to circumstances company to update advise forward-looking this The after the said Chief John McLaren, management and Chief to Shiffman, Having and and President would Karen Officer; today: Dearing, Chairman Officer; us Officer. Gary introduce Executive Chief Operating I that, Financial with like their remarks, questions. ask there After will to be an opportunity and call Chief turn would the over to Shiffman, now Officer. Executive Chairman I Gary Thank you.

You may begin.

Gary Shiffman

second XX.X% you our continued and were for Sun earnings once joining during Good growth ahead of quarter morning guidance our $X.XX, of platform range. XXXX call. of on again very Communities the and Operating RV platforms healthy. to both FFO in strength housing The thank achieving per results share with conference us evident manufactured second Sun quarter, end of the top across core be our

pipeline community Sun's residents X% our to communities ability XXX point reflecting accretive and a as basis indicated were guests quarter. our on continued XXrd $X.XX the the The our to performance, resorts. growth. first the the Same midpoint after mid per in quarter potential a to Community The raise new consecutive guidance convert XXXX occupancy call, FFO $X.XX. our quarter's quarter completed in able second quarter-end, digit combination active NOI is attract operational representing us NOI We coupled our of experienced core quarter, with rental subsequent of acquisition rate number and same same to high community to X.X% during and were at $X.XX NOI a second and the increase by growth growth to Additionally, share quite opportunities of largest increase, and we the allows and we of to of to contributors single investments

Sun add, value a investments XX% of repositioning we've opportunities are as and for a operating in to million one in owner-operator XXX-site developments offers in value housing quarter's $XXX owner opportunities. of under also offer with properties total construction North Northgate properties XX portfolio road. recognized front, ground-up It equity both well expansion expansion active, million. Sun RV portfolio heading a accretive engage a in operator development the highly The ground-up X On XXX X,XXX with Northgate with states. an been land sites manufactured RV a down a the Carolina. as and space. a day interest sites and Investments and $XXX.X investment opportunity operating very and includes Among from consists developed number investment both potential this of currently Resorts, additional operating The Northgate with premier unique transaction them was with resorts,

and X,XXX land of The and zoning quarter RV a on process, our core we parcel, Michigan quarter-end, are a wholly sites, times is an Northgate, closed Florida, to developed properties subsequent to sites Sun. call, In entitlement individual and basis, RV operating resorts on purchased addition during of previously expansion These parcel combination XXX and which in Oregon land X exciting we in site resorts completing ground-up X-year manufactured resort Colorado. operating Utah, and the owned development. we resort. land operating on discussed California. for for RV in portfolio After are The X X-RV Granby, our a included X located the commencing development first and and X,XXX regions with and housing

akin strengthen our a implementing operations of is To we to end, of continue balance formed the transformation continuous our produce team consistency industry-leading that and group We members results, flexible additional seasoned processes on tasked operations practices of result improvement. revenues, is comprised accounting maintaining team, from emphasis of procedures the with is and while The have sheet. improve to of The and teams. a pursuit to that and team Sun ways to aspects strong streamline all and an capture best and analyzing the strategy of and consulting business internal all our uncover the aspects platform.

With as Sun we investment to We position turn that, prior are to Karen strong John detail. future from call the over in to continued company are I and to for that as like as in on of embark making more would and discuss ensure this initiatives. our after performance strategic growth to a we results activities our period our hyper possible growth value extracting much

John McLaren

Gary. you, Thank

on XX.X% manufactured in Our quarter price emphasis points the on Sun RV RV sold. demonstrated up revenues to increase in a providing basis average at increase. second second grew in home XXX revenue new the by XX%, with up in XX.X%. with manufactured with home strength quarter, delivered to the a as sequential volume resorts quarter XX.X% sales a volumes housing both XX% The XX.X% to and XX.X%, the in growth of a portfolio this Sales NOI in total drive superior total to rose home sales as results. from Revenues new portfolio home ability customer experience XX.X%, communities the Occupancy increase at XX enhances homes to quarter sales the year-over-year $XXX,XXX was quarter. show basis. continue rose our quarter's our stable performance. contributed our portfolio

XX.X%, which sales particular our manufactured portfolio in XX% in XX.X% XX% gains total communities. by of preowned the and almost Florida, XXX total producing gains new volumes Preowned South Michigan home We those in the Michigan these, our grew gained We home home our quarter, Carolina, sites of sales new in home quarter. XXX our sales. in and with expansion in revenue are seeing accounted home in for rose site strength Georgia. while Of predominantly revenue roughly communities, in were sales

RV the total bringing in XXX lease to annual conversions our year. had XXX quarter to also We the for RV transient conversions

sites have completed producing guidance the the revenue X,XXX expect our remain of X,XXX XXXX on of gained complete XXX the we second and Year-to-date in to with year and additional revenue-producing year. X,XXX expansion track the construction now for of to the range. the for sites during X,XXX expansion sites half approximately construction gains in site have We

and quarter. X.X% XXX for a Expenses X.X%. we delivered northern a the with quarter, vacation a continue remainder Day our and X.X% X% basis I For our as This with the will revenues big of Memorial remarks, X.X%. success, growth rose kickoff. in point discuss community NOI housing RV the over rose rate weekend of X.X%, second rental increased were weekend rose increase average Manufactured have increased a a second same Revenues we my revenue gain quarter. a revenues year-to-date season. X.X% translated to monthly the by revenues the Thus enter results, are summer in pleased we driven for which by occupancy basis, grow far, the was by last same by annual X.X% season expectations. the growth NOI On for quarter, RV to increase should summer very our line solid XX% Transient with while weighted into year. XX.X%.

conclusion, very with period XXXX. time. week, vacation same of growth season With Karen? we we year and external call the turn guidance. Karen growth execution updates July about summer In our that, the pace to overview rest of will for the our for are performance over during internal I of our the optimistic in last to on Reservations increase Xth saw at are our the XX% in this Additionally, line over revenue and a an opportunities. pacing results

Karen Dearing

per FFO ended core quarterly quarter of June above $X.XX end the share reported previously Sun provided top for XXXX, John. $X.XX XX, Thanks, the of guidance.

program $XXX valued during second in and funded release, quarter. line subsequent of credit. to hand, Sun advances and our equity from investments with we raised approximately cash As our million in at disclosed The our earnings through on were invested properties the ATM

details unrestricted average funding billion quarter, of weighted our X.X a we end had interest $X.X quarter-end, our can Additional At of be At of cash average on $XX section weighted outstanding, the and with of supplemental. X.XX% in million had debt portfolio of hand. found maturity the the we of rate on activity a years. acquisition

to EBITDA trailing net XX-month recurring Our was X.Xx. debt

forward basis, is in year-to-date low our the Xs. ratio our contribution from net-debt-to-EBITDA the a acquisitions, for on However, EBITDA accounting

we of X.XX%. $XXX rate the average million markets term we Subsequent X loan interest repaid in front, On collateralized a into to interest weighted capital a at X.X% quarter-end, rate. entered XX-year term with collateralized loans, a million, $XXX

quarter In related its acquisition activity. active financing addition, to second is the company in discussions

share. issued the equity disclosed program sales During a roughly $XX.XX our XXX,XXX through earnings to weighted of activity in price of previously we This at-the-market April’s average quarter-end, and release. stock ATM X.X common shares subsequent at includes share per million

of the the impact To additional core FFO our per Moving we per acquisitions. to to and $X.XX on to share. ATM $X.XX related financings from and contribution our share guidance, financing raising completed range $X.XX account into to share anticipated $X.XX are acquisitions, share to issuances per closed expectations the prior of take

of million. amortization guidance reflects to we to of which and onetime a to plan, in third earlier, $X.XX $X.XX to the range current of increase as expense changes FFO XXXX. in incurred our through per of proxy considers year and G&A nonrecurring to long-term the staffing certain increase per million executive Our in the team transformation also incentive as expenses core The revision well an anticipate the the training share half and first $XX.X discussed quarter, increased Gary as $XX G&A outlined strategy our share. company's the In

as properties recent in specifically is open full activities discussion Operator? important Due acquisitions from guidance second contribution XXXX these the acquisitions This like Our and to FFO annual our the quarters. in and second to the seasonality a the realized same first NOI outlined their up given our X.XX% growth unchanged. to guidance X.XX% these guidance. NOI community aforementioned majority these vast acquisitions the nature Said third in is and of that be In remarks, it of our to increase. And to call excluded acquisitions, markets in differently, are FFO our remains expected questions. the to seasonal year additional potential XXXX, the we'd is prepared contribution accretion note or neutral, of from not from completes results. capital the reminder, fully of make quarters the revised

Operator

a [Operator is question question-and-answer be We would Andrew Baird. W. session. Great, conducting Instructions] you. Robert go from ahead. first Our Babin Please now from thank

Andrew Babin

And is was depend considering it? good a And and from about acquisitions we components permanently and a substantial gates I especially about question, that, quarter. of the that from yield classify maintaining you early on kind third guess, the is quarter still various furthermore, it deal. the could a hoping relatively of a level think that way Hey, second to hinge talk on you of should on as does there at the through financed? morning. balance element the I see just of follow elevated once wondering from accretion if it's out to development sort perspective? revolver carry it the How accretion Does kind the or of the the

Gary Shiffman

There that. the missed acquisitions subsequent that is asked I Hi, sure something them were that. Andrew. quarter sure of might we pieces the some make you want we to I made wasn't I have before a on looking cover for then and after lot for and all. you to comments

Andrew Babin

starting a with will be the start? acquisitions guess, yields I on the good

Gary Shiffman

sure. sure, Okay,

break And think if operating the cap rate component, be properties, average cap take the of Northgate you that to you were if which to X.X%. would all rate I the XX would were properties, X.X%. is significant XX be out that

So to lot build there. a we have on

just full had think we've them it on approached commenting the the with to large acquisition structure we Northgate necessary a actually I Northgate's structure, with acquired When very another manufactured relationship long-term and participation. was that and housing under-managed years have structure building that ago, a the expansion properties, them felt and wouldn't community the in repositioning benefit of they similar properties. extracting out value the the with they many realized from sites

a the we'll allows in access buy So basis can not pipeline, And and portfolio being mentioned and participate to other properties opportunities Then to elect the or of agreement that think small that in to our Northgate the and Sun to on a we able at on participate we acquisitions. that that flow stakeholders. a want to participate exist that transaction side. other were we value the other opportunity strong hand, benefit that was them the willingness us on was the by prior win-win today's acquisition X just upside see had the And then value would future. we in a created that so single-asset there to felt continue to we X-property finally,

Andrew Babin

question front. I and, the more part Okay, second the my on guess, financing was of secondly,

assumed Given that obviously, the is where a with But revolver little down there is I as quarter-end. guess, has new are being bit in guidance, balance financing. financing secured come an that kind healthy? there And it be that to assumptions of blend the given of going just in do fairly leverage secured for Xs, Or you money? loan, mostly low that run of sources rate is a it's think is which large the

Karen Dearing

so Drew, includes assumptions – financing the that for definitely are guidance the we have for acquisitions. We longer-term

line are how But be – that one-time, it's balance in million our it $XXX will of of And of line would negotiations. looking it replace We still sort our will determined credit – to will that's up. ultimately, one wind on a be currently balance. loan

Andrew Babin

acquisition. expansions. pretty a the And transient And little it. talk I the New geography. clear be in about up transient a – convert finally, I large could locations” guess, of more with of also wanted sites bit where that's just plans to there's and I occurring. those which RV noticed talk Georgia Okay. I possibly guess, of But tick to And that can about annual? seasonal kind that quite York "other California you be long-term obviously, to but count up, a I were also just in site and guess,

John McLaren

Yes. is Drew, John. this

within are So on very opportunities a levers annual portfolio. on between site have. to conversions, to know, we'll for we're the maximize of that maintaining and as look of that always you convert With to the continue from balance correct said, core basis. transient generated site revenue focused And annual to we sort transient one that per

months next will adjustments portfolio, XX the the that Now with appropriate this make we same do over the that return. to maximize analysis

Andrew Babin

Okay, great. Thank you. That’s all for me.

John McLaren

thanks. All right,

Operator

from go is ahead. next Nick Joseph from Citigroup. Our question Please

Nick Joseph

of today? following just What's credit first balance up on Thanks. the line Maybe Drew's question. on the

Karen Dearing

so million, million. quarter ended I would it the minus We at yesterday, And at financing the $XXX think. $XXX was transacted

Nick Joseph

Okay, but would on that there since have further? line XXth are the June no increased it additional acquisitions

Karen Dearing

that the there one [indiscernible] end was was Yeah, $XX quarter acquisition after million.

Nick Joseph

Okay.

guidance sales more is line? does Or assume pay with just terming debt? so it And longer-term equity any after down it out or to the additional

Karen Dearing

out just assumption the – with terming It’s debt. is longer-term

Nick Joseph

the NOI same-store the have it. looks And Okay. maintained you'd reach you see ramp midpoint, in then back to just half significant XXXX on guidance, like to the of It year. a

guidance? What something that that gives it driven? to maintain expense revenue Is is So Is driven? you confidence about the NOI same-store comps?

Karen Dearing

So, right. acceleration you’re an second We growth. do in the absolutely NOI expect half

as second lower first On the on the half we’re expecting similar the growth in revenue half expenses. year of

And so if – that on guidance. you X.XX% to X.X% I think

If you X.X% it about X% and would expense of had X.X imply similar expense growth, X.X, between growth Nick. to

Nick Joseph

Thanks.

Operator

from comes Advisors. Our Street Pawlowski Green next from go question John ahead. Please

John Pawlowski

pipeline? investment give little Northgate you own for a could of through they what with opportunities more Gary, and additional their detail currently and acquisition Thanks. sense size

Gary Shiffman

transaction did efforts not, They entitled to a out attractive entitlement of to community. done Sure, will years, that They and in focusing presented we for to underlying the see us opportunities on And previously. manufactured have as additional participate I assets the number as and basis we least next be what an or on at ago reviewing for maintained and XX we said, be zoning. years fact, participate agreed we've a locations first several when them reposition opportunities, them relationship and excellent two and other are to a been they years. they’re and, with with to we've similar housing opportunities. have excellent underlining elect with that their together underperforming developers – opportunities really XX-plus It what's was owner turned operators

John Pawlowski

a Did offer refusal? first right to you first get

Gary Shiffman

just I'm yes, remember did. believe that is And to trying agreement. we operating the yes. I correct,

John Pawlowski

RV across Move a bit. traffic's obviously, very and John, outs Okay. are healthy accelerating MH platforms. little

are driving Just what curious, outs? do reasons if for are any you that? move slightly And few markets think elevated the

John McLaren

cycle. the The move annual mean, Yes. in the I regarding – lease a related move is outs, change the to out on really change

the we've in that say portfolio the and So just that's match required the cycle. overall to mainly resorts past RV that

move you tracking MH are much line and at things, the that with outs XXXX. those exactly side if pretty you kind of So of apart split look in

John Pawlowski

best the particularly think best markets look and you wand one in shift are current excited geographically, you do are where the next patterns, within about? the me. markets on returns of flow your cash bearish if a from vacation RV migration years? What overnight What footprint? your When and and the trends, you markets with Last you really across at you could couple business look are portfolio you wave

Gary Shiffman

it. I'll can answer else you – anyone it John, to first add and

is that the certainly I location. RV important in thing single the think most

destinations, equally lakes and be ocean, areas, but to whether Some they in snowbird activities alike. to geographically retirement for definitely patterned, communities. beachfront, RV warmer of Hiking mountains, is the we important water, up coming resort location have the weather. be most wanting they area, And interest vacation related it’s actual demand then additionally, in whether the of the they make component, down

a acquiring turndown When diligence we So we'll strategic because at due RV many discussed. don't it's many think the look great turndown strategically. communities, locations question as have just we factors as just I that put into I probably as

be It don't you it's area believe want an demand, I be if there's add enough where think has to of to going And part the John, one to country. So we any anything? just

John McLaren

through of that on. we will the thing thing, I demographics, us of And – it frankly development, more emerge embarked we only I And previously time as that we help to you're goes think of think be. announced a to think decide some migration processes, data on I the detailed and are. would on habits very helps where places that is that areas want as John of the with advance went that see – of starting greenfield add you know the I in study and the to sort we sort

Gary Shiffman

where discover four demographic think groups So between that four-hour rings patterns upon. that lot would with that a his determines those us population and put nature the it. average how I really draw time and add anything in I hours three-to populated think team to within period, transient about there the the studies and on And is areas the the we in helps we three around acquisition the together to able drive out enough rings John be are

John Pawlowski

Okay, thank you.

Operator

Merrill America ahead. is Bank next Joshua go Please from question Our of from Dennerlein Lynch.

Joshua Dennerlein

with relation of they at same was kind over on as a much XX had also assets, overlap You've Like, there bid the looking assets Northgate are When years. you did for the you? years? how

Gary Shiffman

on Interestingly enough, has lot REITs overlap. a a they And lot family they on pass ground-up really in I three of that to been last now. never over any the a is been what organization. over and assets said It couple a And that years. them. been do right the are forms on continuing recently repositioning development four value earlier, to I I underperforming what as that's there on focused that's, They focused have strategically it's assets and the think think their And by we've focus other watching original creating run them a of consolidated years. to more

Joshua Dennerlein

Okay. Are ground-up partner? guys you any an Is can where that more development? area they doing

Gary Shiffman

venture as in and It already And participate there. it. the in interest very on when – percentage interested where reacquainted it's we to ground, for Chula where this it's forward on that is. And really years move – put likely we a in if a And same shovel with will We ago out put a request us. again considered they had Vista transaction. basis they participating the few were actually as they being expressed got San we – Diego,

Joshua Dennerlein

you. thank interesting Okay,

Operator

go BMO question is next ahead. from John from please Kim Capital Markets, Our

John Kim

income your between does acquisitions your And RV are developments, With do breakdown you you. feel planned exposure – RV Thank this and where and how MH? taking high taking to? how comfortable comfortable recent take you

Gary Shiffman

much opportunity audience to RV due as Karen not the through our I’ll with I Northgate that manufactured percentages. let pipeline, advantage unusual discussed shareholders think this as is the than took look that the and of today housing there actually coming strategic we the diligence through I recently But that was if suggest and a now, more we add, resorts.

I much balance out continue So to a of period or portfolio pretty the and side two-thirds basis we for that's would do. in expect one-third time, or but might expect generally one the other increase to what to

Karen Dearing

and are XX% got so about revenue sites is manufactured basically and housing sites, – John, of the RV. follow just would XX% we've the

John Kim

assuming partnership? up And just the assets, Okay. the then on venture, and following you're joint the Northgate not managing

Gary Shiffman

I the XX keep with done in as very invested, They've alluded think now, more to really million plan management great We has and able an place. – job said last job more I in Northgate they'll do They've pleased And I I been properties. earlier, property turning CapEx a achieve. right that what for to we're Northgate the excellent than them. than earlier, these think around managing months. $XX to in acquiring over

how However, and be Communities. support accounting to transferred every watch as we'll communities Sun these financial all has we in And the been there grow. them work effort over to

John Kim

And X.X% quoted a that yield that acquisition for this yield stabilized a one like is year you or yield? the

Gary Shiffman

based on was trailing XX That months.

John Kim

get transient transient that converted? Are going could far have portfolio percentage strategy annual? the there you same to converting as in a high to Okay. that is of And you as

Gary Shiffman

you is I and earlier mentioned reiterate, There it know high. can I John said. which

John McLaren

– mean, that complement I generated we're No. opportunity, revenue a basis. it's a we focusing sure mentioned mean, it's that want at as the earlier, have the said, high transient site maximizing look basically, per to of make we John. a portfolio there's I I on, to That on sites.

that. So that make that's the inspecting necessary XX to first we that over we're actively adjustments this be months on something with Northgate as those maximize and will

John Kim

joint to in included on in going And statements and these income finally assets same-store eventually your your be metrics? results? then be the venture. included they consolidated and Are Okay, will

Karen Dearing

sheet included fully they'll balance statement. consolidated and be in are our income And in same-store They XXXX. in

John Kim

Okay, great. you. Thank

John McLaren

you. Thank

Operator

Jason Green ISI, go from ahead. from next is Our Evercore question please

Jason Green

like of you It recently. image have willingness if more acquainting done out been and kind in not markets. sellers RV broader Good And could sell there of larger on seems broader deals comment to MH or the is some if I private I'm force? that market sure was some because morning. wondering from

Gary Shiffman

Yes, great question. it’s a

think of is we industry compression interesting things last been. a what high-quality cap to range and continue the The kind communities to in see do that compression the were high-quality after, happening the to And lot We're I've out on assets. very, five matter dip further sought In there’s the we I of highly that compression the our of cap the rate of fact things seeing has there. large call, usually timing mid-quality cap or dip fours. rates in the low very the our further very for communities each interesting is four in now through for coastal seeing calls, shared range. and

asset typical three We funds have interested you from as are justify as in, of with competition both A that I private the assets lower we have lot taking from have think sovereigns attracted price. returns yielding would the that from walked that that the well is to the transactions expect There but two, away satisfied been place capital. would class. not purchase XXXX could been steady

the is use doors, being advantage have. Like that long-term we we year for develop go with And areas very to very, ground-up tax knock where shareholders. our and two rely relationships everybody, rocks. and harder opportunity in on in we've of ahead too the existing on as consequences. to that we it will, to have to can if able we develop turn over you defer to cases, useful. the and to That's And communities the we think we communities is work So more more securities really our have competitor, cost returns acquire better some a just shared great and three

very rates I a now. impact competitive seen any And environment debt interest to haven't from out financing. So right there

pretty a long-term opportunities available quality the much so ones lot try in it's over good X.X% the debt cap going of range. the add on five – really right matter an to certain rate X% grow a are find turning years. we forward. rate And how and over expanded assets in value create, how to into moving to remained a So three unchanged we X% and period just but – And pipeline can for us, of it's high just we a not can for much take cap of price, it

Jason Green

what question the Great, the I in But mentioned loan apologize this. on one already you the thanks. was rate more if And temporary just acquisition?

Karen Dearing

X%.

Jason Green

Great, thanks. X%.

Operator

next Our Fargo. Todd ahead. from question is Please Wells Stender from go

Todd Stender

Hi thanks.

Just back talk that venture? loan joint can on that to Is you that? of the duration mechanics what's made to And of focus loan a the that? the about

Karen Dearing

loan the a we are in It's secure that financing entity the JV. to Yes. level on It the we made venture. joint will be place negotiations permanent until in for

Todd Stender

– to going to are Is that happens lien equity? What that? going does maintain to you a against it or that convert to

Karen Dearing

credit will on our of a our be the as takes out loan. it It'll sheet. our consolidated balance reduce and piece It line of JV just

Todd Stender

loan? As a

Karen Dearing

As a loan.

Todd Stender

that? think you use medium- is do do – that? this finance a equity How – finance loan? you'll And Okay. how you How you to

Karen Dearing

bankers, No. to We're seeking loan X-year a a around be facility. looking from our

Todd Stender

venture, you guys are Are then it? joint the on fee that? going you a to a And it. got earn for managing Okay,

Gary Shiffman

of Northgate So as and that I that excited we're it. before management indicated really thrilled having kind team managing the continue

course, Of already accounting all the financials to the switched over has and of oversight careful Sun. been

support they those at pleased on to the efforts being, ground are that the we're real communities. for time the performing So

Todd Stender

There’s XXX right, think what And that's I states. Is a available across the it's estimate Alright. expansions. acquired, you your that resorts separately, you you're years? you five RV this coming – X can sites given? number that of think expand that for just that over the the to is Or

Gary Shiffman

entitled already assets. XXX are those Those sites acquired that exists when the within portfolio we

Todd Stender

maybe Is then, to that some there's that fair? And upside number.

Gary Shiffman

the would look with we typically is acquisition communities. for do what contiguous with So we existing ground as any will

does We in have the and and those that process now. a before that to right staff whole that's moment properties. identify that Even that group closed, we up department move they're properties

Todd Stender

home to finally back then new sales. And the

of that? financing eclipsed sale Any Is changes point that Now price pretty the that do to now $XXX,XXX, seems more has see it high? average your still cash? price that you

John McLaren

a more fact is home – I excited terms I'm of not all to Yes Todd. out is the related coming is Michigan, of that that of seeing home say – we're Obviously, towards of this of new side coming John, out of are more think so and things growth these they're one all-age new the and in in most shift our places that's Florida. out sales of new sales out communities, They're there and South of okay? about where are that, homes. financing happening Carolina, frankly, they're coming in should like – sort our coming or Ohio And portfolio I

And higher are supported Arizona. percentage Florida that that transactions in see what or has you typically so of a typically than financed

Todd Stender

any around XX-year loan Whether value, a loan? specifics a numbers [indiscernible] on to term that? Any And it's

John McLaren

mean, the XX are on and XX those. from years I term basis, typically to terms a going run between

they're XX% the tight. is that usually of range. XX% on that average from between kept financings we down So to our pretty think upfront an most percentage, I And payments see

Todd Stender

Okay, you. thank

Operator

from question Capital Wesley RBC from go Golladay Markets. Please final is Our ahead.

may you un-mute accident. I’m Sorry by be Wes

Wesley Golladay

sorry about Hey that.

Maybe this stuff. seems that game housing. go plan? wants Is everyone to something going permit the to wondering much seems to So to passed. years be California area, bigger in the And and allocate I'm to have a resources looking the if it be good to that at cost a affordable more deal versus and you're more [indiscernible], me try it time will in

Gary Shiffman

It’s Gary.

a communities we in of we as moving the area on in to I focused to we're to completed focus portfolio. that are of is After that, part California Coast. very began that place East more began interest the is area company. we Coast. coverage And the that West and very, the growing think our strategically, that XXXX

be very, that We to certainly cautious in RV balance and just new growth long-term there have this went careful cost have with We completed very of the last several one development online opportunities. And season. to the operating that we identified area.

looking in continue Chula and that We the before quarter. two as ground Vista San have to municipalities. do as Diego, else. evaluate times in developments or operating Diego. last will the We're San new discussed And it with we two just potential Colorado that, have to development closes we've very we launched everywhere the will area forward closely Granby first with getting in we experience in And

affordable opportunities, California they We more elsewhere, lead affordable we are meet be needs challenging of case to issues. will And those to really their in hope solve looking the to studies whether housing or two housing.

certainly we one area it's So look will at.

Wesley Golladay

the And acquisition. Okay. up? of When that the open development part recent then as current regarding will

John McLaren

end of got should happening season, of it it be to next that's soft fully – northern sort season, month. will but it's the I of well, going the It call for operational Day. it's the a right mean, sort be around – tail next actually opening Memorial so

Wesley Golladay

you. thank Okay,

John McLaren

Yes.

Operator

back management like This the any floor for comments. concludes closing the turn session. question-and-answer over to I’d

Gary Shiffman

and I just this for we you certainly thank questions forward all today us joining call, talking the on year want are to quarter and look results. available conference everybody third Thank for any follow-up to to you.

Operator

concludes teleconference. today’s This

participation. you, Thank your You for this your lines again, may at disconnect time.

Sun Communities (SUI) 26 Jul 182018 Q2 Earnings call transcript