SUI - Earnings call transcript Q3 2018

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Third Quarter 2018 Earnings Conference Call. At this time, management would like me 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 Dearing, Officer; John management President and to Gary Having Officer Chairman Officer. McLaren, would and Operating today Karen Shiffman, Executive us Financial first, introduce Chief and Chief I that, Chief with like opportunity their After ask to remarks, there will questions. be an the and return now call Chief Officer. would Gary Chairman over I Shiffman, Executive to Thank you.

You may begin.

Gary Shiffman

our and third you Sun thank morning demand. on conference to joining Good XXXX for call. quarter us Communities demonstrate and earnings strength, sustained continues platform industry-leading grow consumer

community of occupancy of increase the to expansion FFO a core generated growth program strong to in weighted and X.X% we share third by year per of Sun rate average contribution last quarter from stemming over and our rental prior points For gains $X.XX results quarter, acquisitions. same of NOI delivered basis community XX.X% growth incremental driven X% XX.X%. XXX same and the the

elevated insurance address was as in increases Our NOI the as well moderated certain expenses repair supply reserves which slightly John and shortly. quarter in will claim growth by

and two RV will and third roughly which $XX totaled resorts quarter entitled on on diligence million income-producing states. land one and have various XX in In provide nearly growth of across the flow we we million in Year-to-date to closed deployment, mix of for and expansion in our development XXX-site manufactured a very and be opportunities community, manufactured expansion of of Acquisitions valued our that an housing also remain the cash to terms the generate purchase to Texas, existing income-producing at $XXX properties. manufactured land will operating an fixed a new land Sun a current of we housing as Austin, be active communities acquisitions Subsequent reflecting opportunities capital ground-up development. as end of parcels future that well fully communities identifying quarter will with and communities existing community resorts. in expansion parcels, XX one housing

practices resort with a combination our RV into also described deployment of positioning portfolio and current capital investments, ability enhance while housing the manufactured are to generate community Sun Our which the future. growth as best

to like would delivering which all residents to looking burden more remain value. We a millennials continue detail. turn deploy balance platform John experience, from with early the travelers we to reduce provides community and downsize the raised for roughly that an attractive goes well-monetized management. that active demand million or boomers we We our pipeline and homebuyers additional looking from capital alternative believe capacity hand-in-hand support multifaceted call to segment an baby expensive I looking best-in-class selective results built experience on acquire to looking has affordable captures in homes, a empty-nesters to With destinations. both of homes, discuss RV operational of and broad all resort in investment for population. and of resorts communities diligent efforts end stick sheet with us September, our $XXX guests, to opportunities. age and built their that the desirable vacation The To Families, a company and which retirement and delivering the with and shareholder more focused for Karen over like first-time for

John McLaren

robust year-over-year strategy, stable and desirability the improved XX% results sales Thank year. increase you, company's average expansion we by total home a sales strength occupancy were for for at weighted a quarter, gains a for home home sold coming Gary. the Sun's occupancy volume, quarters. resulted last an In strong portfolio XX.X%, the communities quarter. Occupancy these growing Sales the portfolio diversification in revenue portfolio we the which XX.X% vacant reduction in and increase importantly further increases accounting third at highest recent expansion success was to rental housing of demonstrate All our Revenues the of with XX.X% we manufactured expect the third XX.X% most our in to activity, over of history. quarter. XXX homes which volumes and from factors into of year-over-year in translate slight in delivered one new quarter in the experienced site sales deliveries operations, realized XX% resorts. in total and contribute

to rose sales quarter, price third up the new XX%. average Our approximately $XXX,XXX in home

This XXX revenue for were leases. Florida, underscoring our homes Pre-owned in expect Community and while Texas the of our predominantly to the XX,XXX received are home in year-to-date or gains those resulted revenue XX.X% the XX% sites our sites the desirability continued producing XX.X% sales. home total the Our communities. gains have affordable and balance which in in we demand live total in of sales new annual of Year-to-date, in site home manufactured Sun by portfolio a approximately Ontario applications gains transient of and roughly communities. demand contributed our by communities XX,XXX quarter, highest demand housing The to gain rose Michigan. strong sales and of in Michigan of in the grew of quarter. home new pre-owned over for XX% MH homes year communities together of end. up conversions for and expansion volume came XX% occupancy RV the Applications purchase applications from XXX

quarter to the the for RV our conversions lease year. RV XXX XXX in total totaled to Our bringing transient annual conversions

sites for for deliver communities expansion XXX Year-to-date the now year-end track and an complete construction X,XXX by producing the remain have to seven sites revenue XXXX. X,XXX completed communities. vacant the in in gain We X,XXX and have sites producing of expect we on of of to expansion year XXX nine sites revenue construction additional to all

growth X.X% growth and quarter Turning now year-to-date for on community to basis. the X.X% a same-community same results, Sun NOI generated

We continue top-line strong the to portfolio. growth throughout experience

basis quarter, increase manufacturing rate and the for the X.X% a revenues same by a RV rose quarter increased monthly an gain housing X.X% expenses rose reserves in liability by from Compensation community, average quarter results rental elevated driven rose expenses primarily XX.X%. weighted the revenues XXX point increase as for same For prior to X.X%. while community occupancy with supply Worker's In revenues Same by the certain claims of period. well X.X% community and general and repair as associated X%

efforts are reserved. were we our they to While monitor than in the manage higher amounts claims, occasionally diligent these and

outdoor quarter. higher Florence to trees hurricane primarily expenses that incur also debris With during replacement and of down removal, we're we happy to Michael, legal We than the regard minimal report damage experienced the to fixtures. certain and budgeted limited

media the social in to marketing the course third Our significant to portfolio the RV posting and continues over quarter. strengthen regional of strategy some reach

organic XXX,XXX our which resulted XX% increase in unique of This all-important since growth. our ongoing In increase experienced visitors continues experience in to has to quarter resort work beginning SCO is the strategy a over XXXX. XXX% support website Our third year-over-year. searches the we the over alone, along

demand guests and capitalize annual into call expect will in southern that, are reservations to We for our supporting Karen? strong converting we to achieve a leases. more Karen the I over demand to With With strong budget our this to discuss preparing winter turn results. to are to RV continue our season experiencing transient the financial on quarter. expectations fourth currently of

Karen Dearing

an the Michigan. Thanks RV in million resort quarter the XXX core restricted resort $XX Petoskey, per Sun September Investment for totaled FFO California in RV age activity RV additional community of hot John. the XX, included which XXX $X.XX reported share Malad, quarter XXXX. a in springs, destination Utah, and site desert ended vacation resort of in site

$X acquired interest with the expansion of net quarter billion and X.X% XX-month At X.X hand our to we weighted unrestricted and rate cash years. parcels in of maturity quarter average was year three to on had million end and development and Texas for EBITDA X.Xx. we debt the land and of quarter, a we debt recurring outstanding subsequent weighted of of $XXX Colorado. entitled a end, During trailing Florida, average At slated had

the primarily financial Proceeds raising opportunistic $XXX On our take given shares the advantage balance facility on roughly market in approximately capital pipeline an on execute of used down term acquisitions. flexibility million million. to us the we pay issued and X front, to and were revolver equity offering our

a We also guidance, during to raised our to third from public the $X.XX raised our ATM range $X.XX on are contribution we quarter. quarter short-term the as as to the additional from and and $XX an accounting fourth dilution And quarter. income-producing $X.XX to core million per of guidance for acquisitions primarily respectively, well $X.XX equity the of share the FFO turning our full year updating third

same-community reflecting same-community adjusted impact the quarter have expenses. X.XX% the We of to to our guidance annual X% third NOI

discussion a revised acquisitions reminder, our like markets or capital completes potential are the in would As additional up call excluded remarks; to outlined not to we prepared from guidance. our Operator? questions. open activities This specifically

Operator

from Thank Great. Joseph go [Operator Nick first ahead. question Citi. is Please Our from you. Instructions]

Nick Joseph

Thanks.

do you're quarters Just target about? low and end pipeline the that moved the the have over you the growth few the to the a trend debt next net long-term last What's how you around off few following it EBITDA and at range raise. quarters equity external from giving expect to perspective talked

Karen Dearing

previously, to we're Xs, cash EBITDA, the near-term X.Xx but historical happy operating low comfortable leverage in and pretty really of we're the and more line that's our the discussed flows a levels. I in yes, think believe Nick, to supports near asset debt we've stability it's be class something level we as in at net

deploy increase our we that next capital the gradually leverage as months, for would So, near range. to we over acquisitions expect something several

Nick Joseph

previously that manufactured then Thanks. starts we two per receptive more developments-- Greenfield to increase? talked municipalities and year, And about could see housing becoming you've three to to Sun

Gary Shiffman

Gary. its Nick,

it dealing to closely affordable in at on and Chula to entitlement different San almost all working Colorado the to housing examples levels the think authority with more I We've I housing all I to of sort-- now, type work and the all general go. a prices home project it's exist two as we've talked call, place are years our that can to ground slow them right approval upon can these years community that receptiveness; we San almost more depending Diego of exist; final issues the municipality solve exist would affordable Once expenses We've a took say on mentioned with and achieved they or the issues. first we've Sun the high worked very as they there of city are through different acquire coastal the but in done, on been and workforce; that where Diego last living about been known Bay the areas. Vista I we're that with in for, think think It's quality but in hoping been actually got to two examples housing. that developments affordable I ago. are now all two development the more weeks of type and is use the seeing

able with municipalities interaction So I do examples to as we communities. develop forward look these more more being to to to stimulate use look

question a between greenfield development I development, regard think of part communities year. our last at-- four is to the our of we somewhere with to to be related goal two starting the each where to

that that start in now, of two one are development when each have again, it's completion, meaningful up have in what bit we're information the from at Colorado. we more about a just probably little Coast XXXX to really developments little will in They that of than year, portfolio. the provide the right away construction Pines go we bit think greenfield and And at longer we'll ramped one of two four We I months development and we anticipated. a East is on level because taking Carolina to nine communities begin entitlement, time and a under more the in slow Granby,

Operator

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

John Kim

you. Thank

that's prepared just John I'm the to revenue quarter? that realistic wondering track up you of and X,XXX think is remarks deliver I a your how the fourth guidance. significant mentioned in in sites take to midpoint X,XXX producing that Is on you're

John McLaren

terms pretty at you you historically to done a if revenue site fourth I of look quarter standpoint we what a quarter done over of very good of that of the sort we've and year kind we producing think of expansion in deliveries been in and from stated guidance to we've we've and both XXXX. is-- produce, mean us site within terms feel I typically before. the last the Yes, what that has We are course what being optimistic add

John Kim

end? mid-upper of end the than low more realistic is But guidance

John McLaren

Probably midpoint. to likely close the

John Kim

the acquisition new competition on there's pricing just been market, all? participants, some overall as Okay. the if provide at and environment RV as for Can far you has commentary changed if MH and in

Gary Shiffman

a good particular possible that are any it's I again but think out in and didn't there MH Gary. RV in reality because cap Well, was It's it question in there. more contract participants rates further, could

communities quite can together seen refer on a we've that back what the it move of are looking have sovereigns into the assets portfolios, limited on cap out acquisitions to We handle I financial about and recently been saw that the I talked Sun well trade exchange best seeing low time of have there, operating money some consolidation for invest; on communities of few we've co-investments as B-grade as been and some seeing these from them. continued the exited seen last seen XXXX three some a funds would with an business. into I've Sun to involved with I with rates business and, recently had of put the passed people as get time platforms. consider in way that week the recently We've of to are two that And that's as who type upper as lot pressure a created we have trade

there interest stability related part, to large type willing is class. and asset that and both RV to financing lenders in the and in cash of are I So identified it's that the on to MH referred put Karen the think further

So all board. the tightening across continued

Nick Joseph

potentially communities the some into selling view your demand? this at in to changed strength of all as this Has

Gary Shiffman

but of the seem say process a budgeting all do towards comes it very So, the our really and changed of I quarter, don't management identify we asset place the first growing hard that won't view, it always our at has take our and level to communities taking heels right that those at it be look budgeting, of because is the we of now end dispositions in require more more actual of to identify resources of we portfolio balance first probably I bringing communities? the disposition if grow be did market call we'd we XX XX level, do would share but or market was the on the at of the CapEx I attendees a the the group think that with program, or and that into a communities, quarter, it on

Karen Dearing

XX.

John McLaren

XX.

Gary Shiffman

profile, really the significantly, that did want I there portfolio say didn't XX-- finished the were them we to market. if thought we That to bring so and up communities we we looked pretty call but the to extraneous fit

John Kim

looks looking on occupancy states Indiana then a of And Arizona, Okay. like last at was your you market weaker summary had seen could I some quarters, and this if kind been wondering it up the provide commentary few that couple of in over dynamic?

John McLaren

why-- because a the the we July in the traffic bit of of bit May it that was is reason first that is September's the down occupancy our specific and one shut Indiana with in in off community. can that and note the down that of one, portfolio is we Road for quarter in open is end some it's-- think of reason that to which a meaning count July decline important you a the at an the count a I as of pleased the that community, Well County to lighter quarter, slowed I'm to Indiana the it's boil tow, application that had of little front-end and community, Indiana, result it double to main application actually at have road total specific them-- down about X% as of looked in sites respect within kind

Arizona-- Regarding

Karen Dearing

added is Arizona; last primarily due Creek, that's added-- had last And so Arizona year XXX note on QX with Arizona. to Palm was there on Indiana, to a a just those in going expansions. really sites couple thing same XXX sites I everybody to this remind decline an year of in expansion to sites of Indiana-- the close so year just to at from in as just wanted what's

John Kim

ask what's in to quarters, been three sites converse that for have developments? and occupancy of ability flat Ontario last your of have Can the on looks those like execute you development the I the high

Karen Dearing

RV, Ontario--the-- Sherkston from are so annual move in transient an you're sites model; it's we development primarily Park there's would seeing park that Ontario are for and primary-- in have site Shores. in from a Ontario site, big the Sherkston all that growth of all so Those model additions is those Shores. to and, there X,XXX are that available portion a

to annuals hire transients. ability do sell to models the dynamics or Park to fewer community have and we the the and So, increase continue in the-- change

Operator

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

Wesley Golladay

Hey. having Sun consulting Can an some team Hi, you everyone. started. you internal early of the of findings at us just you that with mentioned Last there? quarter sort share

John McLaren

This just John; quick. real Sure. so is

Apex general of as was-- culture extraordinary particularly process really within of genesis that this improvement the what our continuous the lies we've of organization. they're So in on after really had and growth period improvement and focused

more roots, and will laid So, larger focusing can we'll we efficiencies pick innovation processes, they've them we in a walking next out that expense that twelve a side the opportunities require process from there is call the of projects they've are on and they've improvement some the or things months to Six call revenue some help processes moving way route our along really side. today sort of wins and that go that that with on identifying or so really and quick core and series up, that called into that might of the kicked efficiency paper terms that in gotten on those and And bring out processes, the the is to them better and over to Sigma. actually of like thing, that are efficiency going that processes, which electronic under certain we converting sort on result that things some walking as the have what associated methodology those issues demac, of processes of

and those-- maybe now some And stuff get wins on as like where we of more some details to they're of call look the talking it next processes. detail more with and with those really forward some of to quick into little really this so, just getting stand longer we bit we a the the in

Wesley Golladay

back is operational X% there any there now, looking is And well? the quarters a purely back at or impact then stronger of a Okay. consumer is up rent RV to as function that

John McLaren

the it's their a-- side, year-over-year, think demand that gained more transient to I mean a really on have more and that communities bringing as we it's transient we and everything have the even comes people we of RV the they them referral good to cycles this conversions and at smaller we the as have just guest with that's transient annual and to so, transient as the result cycle, I it-- of again, business in and that a resorts RV keep count still and in experience then seeing guest guests solid it start and of we we've with keep down telling have site revenue put get friends that and into sort but XXX we they we an in we're year, growth that bring annual. become RV a a

do in well that them to some as the they really everything aware that marketing So, experience have to to end it the have boils as offer. make we of the we down I think of

Operator

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

John Pawlowski

land the easier private having larger are for Gary, Curious side? an expansion Thanks. zoning time operators

Gary Shiffman

operators, a in or have two of of commit that I associated term with cost might a long lot don't for win entitlement who the factor three five or those term think that only parcels out a and to process change that it's factor I of process it long of knowing that opportunities. to to of six entitlement the more know larger it's wish John,

it that just rezone in out going I court to been I the years Coast. is over one somebody an for where trying example to and of is five think read West So something had about now

takes the Even through committee long the process. Granby municipalities when got set Chula back agreements coastal your So, you've we've examples, it's time. getting and the a costly the all as the as all development a meetings the period had its at with Vista of case regulatory and and in of two wind issues. California at time-consuming I It

think than of it's a size commitment is work. So of it I doing the the the company more behind

John Pawlowski

are both patient Got are risk talking years of going three to it. more capital be than deeper shadow or expansions? concerned years, you that recent space about Today we're pools in the flooding and on two how so, supply the

Gary Shiffman

so, Yes, that I out right and that deeper think pool is exactly there. and opportunities is-- are there that there fewer overall you're broader the fewer are

are we and maybe what opportunities try managed of we transient increases. do what John pillars they vacancies; rental RV So the well the locations; NOI that the revenue I repositioning growth strengths core out on can on just is that expansion beyond the are that are filling play vacancies focus I think do just to the growth we that located drive under kind where to for Sun of year-over-year selectively portfolio. It's from of that Those shareholders our other of opportunities, assets, as there the the all-- think and focusing rental for those of buyers in top indicated. is try for we of on converting increases our ops like see team just many annuals right but kind

with that's sure bit there, your of question to and the I we shadowing. then little the So not followed part a regard second do that out differentiation I'm of

John Pawlowski

and longer going out to I stick Yes, actually would it's-- the process patient much to term. have investment be capital investors or how long term the it's willing expansion an know in that again zoning that over mandates capital more providers space if

two shadow for communities in your there is a So, existing years? three supply risk to

Gary Shiffman

suggest don't that would go have It taking experience. three were years would they've three process is of if the year new Well, that I started up could to the assembled even platforms, up funds vast out-- syndicators, they or their it. I or say so, development They learning development now. would owner operators And they or to two how not majority place. have you whether get two to see be have to future for gear I community It's much they foreseeable also inventory the or curve. don't

think seeing before development it's we pipeline, I meaningful. all at start more the think three, a seven, I process but come five, ten-year it's to all

John Pawlowski

Last you Okay. for share nominal the cap Makes sense. me. quarter? on rates Can one the RV this acquisitions

John McLaren

let Yes, take a here. me look

the for cap So, for the three three operating was rate them fully average overall communities the of X.XX%.

Operator

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

Todd Stender

at Thanks. got per you've and at in And in look any point look wide in factor you of cost do expansion I you're rate if X.XX% it's site, kind but all wide there there Michigan cost a is back that? range know or site? about last a is for just there going Utah, California, such pretty three, per you cap would range? to the that's else the anything that How

Gary Shiffman

I've got of it me. in front

Let see. me

Todd Stender

And if cap-- if a rates cap helps of that out the--[Multiple to well-- that as maybe if range have those Speakers] round

Gary Shiffman

help, little a identify. let me is be-- But one the I So that there that won't I paid $XX,XXX might as it range community, would as one guess this is site we for. way, community put there

Todd Stender

Hot Desert Springs?

Gary Shiffman

XX% repositioning also increased a seeing that would have growth very, something that rate it expectations than we cap a for high by but NOI and over very the the years. be that other much and we half is lower next and two Yes, communities bought,

completely say; more the opportunity, what high annual So, what did opportunity-- repositioning it's the really we'll are price per site. there revenues revenues are opportunity. I what drive and we in be higher an Palm would then Springs The per so, and area that site drive site of annual per really the

a can approaching of that kind time the demand to of they all first three rate the the for mentioned it of I and cap function location, earlier. and the way were communities across we rents the it's site, you what XXX board. they kind the some see XXX do RV range $XXX,XXX noticed get in on upper were-- a I So

a of talked cap are are But it, are So, is look year rate, time. for when and team looking first about at have but it cap period rate what of seeing we the looking are do you at we what underwrites over our before and wide of spectrum. year I wide, we our for ops five-year on we in looking kind can course, at location, we growth create acquisition

are for site So fast from $XXX,XXX comes strengthen. mentioned a revenue whether last and it has can we a that different in levers site, those that or really a is all we core I buying how about it really grow $XX,XXX the question ops

Todd Stender

stabilized ramp to in rate X, you it And you into cap a and entered that fair it the five is up is say, seven range, that fair?

Gary Shiffman

if it's community. located Yes. We'd that a be very especially well with pleased

Todd Stender

to I attributed expectations elevated or really does that back to you were know are pullback in the just thank year bleed the into expenses. and they for shifting the full in period? the Okay, all QX NOI then QX, QX your

Karen Dearing

incurred line with expense we back our growth. year-to-date had, expectations expense it guidance, really performance, QXwill at expense our pull in so in in look and deceleration if same of we you guidance imply We-- you that QX from from year-to-date QX minimal forwards is the to expenses the some The for pull does level We had attributed QX. believe NOI Yes. think a to if revenue community growth of QX our our QX. budget

quarter the expectations and revised with for guidance comfortable full next our pretty for we're both So year XXXX. our

Operator

question from Babin Our W. Robert from next is ahead. Drew Baird. Please go

Alex Kubicek

this Kubicek Good morning. on for morning. Drew This is Alex

on seems side, heavier acquisition have earlier appear this just to acquisitions what's John's land side are the question side number be generally more up pressure year's well been intended leading on Following outcomes a more add-ons opportunities is the and recent which the driving like good to on guys parcels MH MH at these develop. the of towards Curious seeing whether you different underwriting development? RV on pricing

Gary Shiffman

is think it I latter. So that

night I premium particular reap quarter benefit saw in to going opportunities They were geographic forward felt conversion diversify, our first manufactured will shareholders, it seeing it deployment capital will to be housing we'd under North on even side. side bought second that think transient might to to RV more seeing it convert abundance pressure Gate us they quarter, want to this in whether community pricing acquisitions think the see I fourth we or identify these further of for site We on been annual trying they and just what to particular of that's of probably an the and sites, are located the We our growth the although diligence our the but see recently next. best that contract gives the we we side. the would the quarter. think and it's so strategic sites right it on recall in desire pulled MH has a that run And can we're also of and now, recently what well. And look the really as get have I continue But RV press you because fit more create expectation annual. portfolio quarter to about you

Alex Kubicek

as opportunities affordability the just seeing were very obviously how thinking all about housing given Great, about color practically specifically Also it's curious we California your thanks press you growth product for the are positioned guys there. California's continued crisis. in

and Just curious are like what the thoughts what for looks road your opportunity?

Gary Shiffman

three some very on again to more trying Coast, the to north is positive Coast to diversity. just geographic on the East the now started create it southern. of north We south. the East that same West started years thing as say the accomplish We're ago. we strategically were Coast We would I

development our there -XXs It's XXX in mid in properties completed out has in ago. Cava and Roble, was been RV to its with our name in community. a site hoped couple up we're I some California and members Robles, of a first of think four weeks opened Cava of now. Paso just everything the that board open. our We I weeks we the Robles doing

what the these rates and do cap to for footprint focus develop and the have that compressed kind well more of foothold West we we where acquiring there. We think working more at of could returns really in a it's area. Coast opportunities So better on like adjusted risk focus can we the the then the

operations have we there. So and management

So existing that example Cava community Robles be right able develop or area. other? two to those a country property in what the couldn't above that Again, And was of think able part stabilize the new anything acquired a and of And rate. on in we high that miles that name took I two don't today communities. at will as those acquire we California, we level. a it a also to years brand Wine we of get is expand the the ten within digit single either properties and into reputation to direct expand four Wines communities the cap And we look of the communities area we were up for open could based new entitlement. better properties, get think

Operator

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

Michael Bilerman

Fannie an evolving? and sort Bilerman update into your It's Mike here how how that program in you of wondering just with see if that lending where provide and book chattel can loan I your Freddie and with investments portrays are you Yes. Gary, potentially with Nick. was

Gary Shiffman

So, John and work is actually on with has to meetings Mike numerous and that. had conversations them continuing

to turn I'll over it John. you So

John McLaren

operate said that. like now been the much we've every Gary meet a and a and needs it's we other in continual We've through like through their week mean potential meeting with we terms I mandate, dialogue, them pretty under that. of for diligence of seeing congressional Fannie on been lot things as frankly, basis Yes. how talked

And and to - it's an working We still game. continue and so we'll dialogue, potentially that it's bit we the think a little have but keep early in opportunity. there's that the through

Michael Bilerman

an it I right yield do your more there's loan like want rent? loans income, you to that you MH or evolve decrease, cash where your as how earning of starts to an probably loans you're earnings book than a in that ideally, headwind so you'd demand flow but guess you into X% think see that rather does now roll site think rent turn I and ultimately

Gary Shiffman

loss this of that the be get notes. something on we of of yes, the would FFO look based generation So, We at is a --there rents off strategically. we

can looks manufactured think pure housing I that a be we RV operation. resort strategically, we're as company in as and to However,

eventually loans that from for provide owners bonafide to So operations. capital or It's stray occupants some reasons far whether of manufacturing, the for of don't the extent to with it's homes. really rental the third-party extent, it's capital fill we we one provide too tool a And business units. of core just and we the RV manufactured

like if business, of and into to had we so. to hesitate returns revenues made both from part get, opportunity our the and it's So capital our on but wouldn't the convert that sense a notes the that We we that core capital redeploy side do we the the business. and rental

Michael Bilerman

in dramatically much home a percentage of the And of was earnings than loan given point you've seen your fact stuff, even at through grown X%-X% your overall sales over ever your company the core level, than piece is so it total lower lowest probably arguably acquisitions of the a this product, at but I've it's the that lower now risk before. it's

Gary Shiffman

or any opportunity against and to seeing purchase referenced is to what loans would It the incumbent John those view of loans, are us negotiate through the those want their were on to of and sale for to of that loss be, you elect is the that price then Fannie revenue charter to it of the Freddie some headwind there. we meet if

Operator

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

Gary Shiffman

to the like for time thank call. would on everybody Well, management at third quarter this participating

quarter fourth we're get excited usual, As behind us. to

And operator. prior to the you, So Navy. us call to all are available seeing at everybody results, share we Thank forward we for look follow-up any can that with always conversation. you of

Operator

Great, This thank today's you. concludes teleconference.

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

Sun Communities (SUI) 25 Oct 182018 Q3 Earnings call transcript