SUI - Earnings call transcript Q1 2020

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities First Quarter 2020 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 and 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 include the effects of COVID-19 pandemic and other 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 an questions. McLaren, management and Chief will to Shiffman, Having be and opportunity and After President would Karen their Officer; today; there Dearing, Chairman Officer; ask us Officer. Gary introduce Executive Chief Operating I that, Financial to with like remarks,

Officer. Mr. now Chairman Executive I'll the and to call you Shiffman, Gary Shiffman, turn over begin. may Chief

Gary Shiffman

Good you, joining update the Thank and first thank us navigate today morning, an Operator. and quarter you as on provide our to pandemic. for Sun's preparedness we discuss COVID-XX results

health mid-February, environment safety. begin, call our we dramatically our crisis. we quarter wish Since to public wishes has and And the health fourth for everyone's convey before challenged in been sincere worldwide by a

of $X.XX, share We of the quarter FFO started the first end per XXXX ahead reporting $X.XX ahead expectations, guidance. of of of high

is options; focused and months, we While the of pandemic. weeks sustain navigate housing will entered that because to note strength position performance important relative the strength to vacationing and providing coming on we our of fundamentals of pandemic everyone and as of from the it's we a over how expect underlying the year a affordable affect position the through

XX.X% million trailing positioned from EBITDA well a perspective, $XXX to of occupancy a are end approximately cash of unrestricted We ratio of began as portfolio debt with XXXX sheet with of net total X.Xx. and balance quarter

this stepping incredible our up acknowledge done job have commend challenging to We and the recognize and time. want and responding during they team

by stem of possible at that home swiftly doing Sun acted our its our main Coronavirus part to wherever the to work was communities. and at practices Our from office ensure spread adopting team

parameters, implemented safety we we're the and adhering to where while and recommended and distancing health At social residents by provide customer Sun's and gather trademark our properties, prioritizing amenities sanitation service. striving protocols, to guests close hygiene

not on know the the by current and Given brought in we of place current shelter are of operating nor orders, we changes conditions in the pandemic. in do control social distancing duration

adjust can plans controllable modify liquidity. manage deployment our and our capital we However, expenses, certain operating

expense Directors the set the tone Officers side, the electing compensation least Executive forego and quarter. their at On since for have to by second

our and The are recognizing reductions team all balance also this salary of together. main have that taken we office in members

furlough, both will in member reduction we our Additionally, placed members, providing our its due furloughed pay a team costs of temporary have team associated benefits. on uninterrupted healthcare continue and the to the the share number each company with The transactions. amenities closing of of team members to of share

the have by rent for forbearance program We a virus. residents implemented impacted financially

prior for our We order hardship qualify residence, have year. been home XX, RV of as have we the applied last program related on month XX% which approved. portfolio, and In have housing and to their housing to rents Requests is necessary program. elected X.X% par of minimal. in and inclusive from annual manufactured Approximately our of our manufactured collected to information of apply provide guests been have with the rental April our our

portfolio, leased are our sites In our sites. XX% RV approximately annual RV of

a transient, at we're of RV rents from XX% to XX% resort which remaining are an delayed RV year. experiencing due relative the time reservations. cancelled will pandemic provide impact collected annual currently additional collections last openings For the and with at percent same detail. Of sites, John the are

certain it and with and up normal reduce to the operating operating conditions to capital the continue developments or ground temporarily prudent We've expansions visibility situation, acquisitions spend suspending limited and and duration the we're suspend evaluate current guidance. of and determined our we XXXX Given return financial measured also in caution. to

on details unavoidable further Karen with the impact and pandemic. will associated financial provide the John

However, are portfolio operate, withstand Sun's suited which and we the we the industry to even times that in disruption, in recession. the well or uncertainty impacts of believe of a

Sun growth historically at to and the after in great five stability The financial provides and during earlier recovery affordable downturn stronger Sun business underlying in caused bounce XXXX. a crisis macro for back years which provides option improved and a affordable GFC. the resulted demonstrated model different a demand housing the resilience that as quality Sun economy housing has the high the significant circumstances or in

and RV it similar will business demonstrate our a pattern, proven similar affordability Resort provides limited demand a that anticipate as We supply. with strong in market

vacation affordable to provide an stay of without travel plane, an get a the in on a a vehicles own average can congregate safely or Our to in RV space. option public their where two in hotel guests Resorts hours three need

members during the the service to direction. and to and pandemic need They navigate now, has writing monitor mandates our operations us situation on the this ahead right literally local They place For stay are and to how compassion the receiving these team in shelter are galvanized playbook team steer in unparalleled ensure that guests of situation. Sun times. residents, and daily fluid

continues of world RV operator is but Sun We've to extremely is the some for to in had precedent or be premier, decisions ensure communities. manufacturer the no difficult to experiencing. housing owner the that necessary make nation's There what Sun

updates. operational John and provide Karen financial and John? will additional now

John McLaren

Thank you, Gary.

impact and with which a pandemic on and start in performance financials specific actions the the on we've regarding quarter, operations, provide the I'll recap strong first of metrics the the details taken. after I'll

after from we're to of ordinances March. in expectations strongly place mid of growth, onset disruptions As ahead in Gary shelter mentioned, late quarter excellent delivered the for the and even community tracking same absorbing

first were ended revenue last added over producing in occupied, and quarter even portfolio place basis the year points improving we XXX shelter total put XX.X% XX effect. Our as into sites, restrictions

RV in felt annual the revenues NOI X% effects X.X%; orders Same year-over-year, X.X%; in X.X% grew a community revenues revenue increased as by related growth community transient community decreased we of Our March. same distancing by revenues driven first increase COVID-XX increase same and housing by social X.X% and in community X.X% same was expenses. manufactured RV

quarter XX.X% XX.X% in community from the In the increase we occupancy first first of quarter, saw XXXX. to same

to as distancing XXX which XXX Even of sales impact conversions. were quite are of homes home rental strong XXX traffic home homes at and social properties, with new our sales began

operations of place strength preparedness team the to contingency recovery on core emergency various circumstances. protocols, with A out rapidly the continual emphasis disaster Sun's and in deal and is refining which our are ordinary planning to

of are recommended of changes deploying By residents throughout the with how a began to field. the assessing implemented related and delivery the ensure the guests, can. extreme February, services in to safety balance number health late we team best assist our our the dictated steps and communities aimed wherever portfolio and to essential who challenges we and members guests which residents help our of financial and local support facing orders The our are compliance protocols residents, the team

we discontinued seamlessly of public terms safety, for cleaning protocols, gatherings. social positions and health home work implemented all be enhanced amenities can closed In that from and We remote. our

Our services. available for essential onsite offices remain

prospective also have options our servicing We and up stepped communications residents. virtual for and current

rate have by residents suspend certain to late forbearance and temporarily increase. under rental pandemic a financially the provide We financial evictions, program and impacted terms fees to adopted hardship

estimate and it units. be XX residents for deferred $X.X manufactured resident beginning May and the For sites rent payable each financial months on in of be rent for million homes XXXX. to to housing program, deferred installments in will two qualify the and through equal We rental equates the our includes hardship July owned

regard the Now our estimate frame I'll to of provide expectations of financial the best some actions that current with and related impact described quarter to details the will pandemic. help the just

the [indiscernible] indicated our with housing of collections, earlier, have are as portfolio rent pleased April manufactured our collected We very in today. we XX% rent Gary

with in demand lower place for expect would mandates, be communities during and this expected fewer time. traffic move While shelter movements seeing we're we're the experiencing outs actually as at still

count year-over-year web prior is while For XX% applications approximately XXX% total the are to the April compared down of month only on XX% April, XX% represent year. a basis, total and up applications application

Our to has online platform capture steer use residents Sun's capability web applications the services. and technology prospective

allowing home to showings and tours nimbly also evolving platform face in us capabilities provide of adapt has remote to the this landscape. Our the virtual

in Now portfolio. we perspective provide some to our would RV like

sites and these hardscaping and where what Our annual round, and in sites RVs located return and well are transient investments are so or annual are year made as their open nature. tied These in very home. of XX,XXX Park that resorts portfolio open sites vacation decks, sites down porches landscaping rooms, on our indoor RV guests are The that annual and resorts the making building consists typically significant guests of has is their models installing majority essentially are as by over approximately sites. The a year-after-year XX,XXX sites permanent outdoor either basis. seasonal personalizing

Sun's driving RV convenience Based likely year, income of non-essential the Historically, our operating stream. resort our than our has years, for and of each vehicle resorts enjoy lifted. RV transient XX and they of providing guests travel side the destination return guests steady RV many own with in most predictable transient their On transient the are on vacation the transient in our we comfortable are and of to experience safety years experience guests, shelter at. believe with it engagement returns place same they're a familiar of to to been a more and over when our restrictions business, and XX%

shelter an received in of reservation directly. being, time related however, the increased place For cancellations to have number we

we being XX authorities. from that have X, have been local prohibited Additionally, opening are RV would open April on resorts by but around

to restrictions in As of now, we expect these lifted. points are at May various open as resorts

about for to approach vacations. and far inquiring and planned Thus our with taking and calling date May wait are frequently their opening guests June, a regard see

weekend to open what that in cancellations currently for Forecasting is know quarter. effect not that included related resorts in Memorial bookings, are Day we this

transient quarter for of expectations. our estimate best $XX million includes the original from second revenue reduction a budget Our

temporarily. Lower conversions fees associated being of occupancy to rental pickup. to revenue of rent the fewer transients various home RV reduction of just a a fees to income as to resort and site related and delayed there result could that orders stay result housing impacted being addition a deferred and home revenue as lower revenue restrictions. ancillary manufactured annual not the sales sources lower due based and and discussed forecasted at environment, Lower travel gains. are revenue transient brokerage number lower current other collected openings, in These and In include increases annual due be additional this on RV

the our near-term mission many and most industry. we has throughout which the difficult life over are of to disruption of of time test the the viability times model, our stood business downturns confident operations, Despite economic in and long-term of the the

predictable the as demand homeownership, well During by for those consumer strong by as vacationing. has characterized for flow, cash fueled steady, affordable this been industry its periods, demand

and sheet the I over to second a call to to turn would summary a impact the the now balance of discuss like as our Karen? our quarter result results, provide to of Karen pandemic. financial potential

Karen Dearing

you, Thank John.

of implications, by begin on as to-date. our well as sheet and by estimated we our results to has response a will actions the the taken reviewing discussion COVID-XX our had the operations financial I pandemic business the balance have financial followed

quarter we ended guidance March in range $X.XX per funds top-end provided ahead previously core the XXXX, of our For for XX, operations, from $X.XX reported of share the quarter. the

was quarter the approximately the had closed been unrestricted that this end paid XXXX, X% cash a first at million end loan of at of a million mature term $XXX million with We XX-year after at for on an completed $XX.X of March. the rate rate interest by we $XXX financing hand of in term loan new off properties of a ended with that to X.XX% due The February. encumbered

off year. mature this set million Additionally, were term loans that $XX approximately paid for we to totaling

the weighted debt in material quarter have with debt interest weighted $X.X a of average We We maturity XX.X average outstanding billion years. maturities and a rate of ended until no X.XX% with XXXX.

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

to We sheet support business also have flexibility operations. on our our balance

billion. by of had ability XX, million capacity of have $X.X on our $XXX and our million of we March to to As $XXX revolving the facility credit increase line of size the

reduce We took Also, base comprised asset with XXXX. potential measures us to funding additional our remainder properties the decisive of significant cash capacity. XXX spend for our of provides unencumbered

suspended We have expenditures including million, of other up projects. development, home purchases non-essential expansions capital $XXX and ground capital

furloughing and at From other the management line items a where through team reductions reduced and We've level and company savings certain the salary made general throughout implemented our cost reviewed corporate reductions members. compensation executive and expenses possible. and administrative perspective, board compensation we've

in we may perspective, and consideration John continue to original our properties projected when forecasted manufactured at discussed operations see earlier Resort for including million but business our the operating the our quarter costs. to and From disruptions between reduction the to level, housing a certain operations in the $XX second More $XX million. both our maintain variable reduction taking is highest to broadly, by expense RV savings, the budget into

pandemic As situation. a we fluid is earlier, the said

place in we for lifted, in we now, RV see shelter we have forecast. But believed and As reservations are our and level improvement be on an of to today. we've estimate to quarter travel information our our what best shared the expect transient restrictions based second

In the company of to pandemic actions support should summary, impact we've taken number the a of the persist.

are We time. have the our we in operate this ability ensure confident flexibility to financial unprecedented that to

our for like you to call remarks. prepared Thank would concludes open now us for joining today. We This the questions.

Operator

from question-and-answer Instructions] John this be with conducting At session. proceed question your comes Please question. time, Kim we will Capital. a first you. Thank BMO [Operator Our with

John Kim

when think could some if far open the as yet. RV John, wondering, of XX the more those that as on you And many open could by be color was XX be I are Memorial opened you. you how not Day? Thank will campgrounds provide

John McLaren

the Hey, I it's, I in that prepared as lift John. start question. sort of the for the along think to way, things Thanks mean, mandates said is we to and Yes, remarks. government aligned our with going be

important we start all sort decades different that, with. and we is the our this we're one and think version we natural and during hurricanes operating of conditions finding and post in John, playbook just that things a things that of disasters like I And of situation the deal playbook, that happening about that May. talk So often with is expect the fact that, of

So, as plan guides with as for phased we at reopening with imagine, to were align way operations open to three leading the in you all will preparing it that this our started happen, team our through drop to to all date, do that, time. same reopening much pretty soon those through developed and as is prepare that all the government associated the plants might you the status. And mandates opening really normal we've have

And and better includes that ones the distancing. starting reopening resorts space itself plan with so sequencing proper the of amenities, the or social provide

So we're the But of the be along allow really back. guests again, to going authorities to forward welcoming lines to governmental more looking whatever that's us our do.

John Kim

Day crucial million to range range given just many $XX for by that's million is your? wide the just Did $XX of how outcomes that a of for a those date open Memorial

Gary Shiffman

Gary. It's

be that think I cautious. to we want

counties, cities municipalities up they our been have asked openings with and sometime to We who extend in from touch have with May. X, the anticipation April and generally us the that opening would in be

otherwise. We heard haven't

right of from all going get we as May. So, course do the any dependent expect to municipalities. change to we be that's the on But of in them hear that opened now, of month

John Kim

Okay.

open, limit there anything So I on to, to once are end is you're to human the going guess RVs just capacity limit do interaction? your

John McLaren

own hospitality distancing. spread, has which promotes options that their site about Well, by that social one everybody of to other of sort on, of some itself, things built-in all interesting Resort the opposed is an because as RV there's they're

we've the to stocked of put things, get actually done some distancing we've already entry things points. signage already ahead into -- some examples all that play Some for John, social of is, that of that we've

areas we to have where put So as those more promote can the in we stickers the as as do our highly well. in well you've before And communities, down floors. what's trafficked the that conferences on seen that they

a things is them And utilize Online I that guests allowing in the as checking really capabilities, which pay do early process we're of well. Express our and check think to key touchless one able arrival allows for to

But of nature distancing, people Resort social by promotes Gary also to get that, to that its the very right going think and of sort both I houses. So, and gate. And thing many their lot are out that's there's think of of a agree out of I I RV happening. a lot want that

John Kim

question is, your and bit the just for on demand a RVs. Final on ability confidence

far? so that cancellations character given amount you've of Just and the received

Gary Shiffman

Yes.

of what the I the vacation look RV impact, is, the experience platform business affordable to We indicated proposition fundamental have the and effective especially RV think aside make or of light of we to providing brush we the it really we're in same through -- of all but feel pandemic, all way. value current we're financial to the is a transient really can't sort doing the itself, and sort John various self-contained safe, which an and cost demographics. from

really RV looking resorts So this our in to we spending that time our people and the in on like are demand. would desirable that high-end high camping for circumstance individuals, experience expect really or experience rustic glamping and retirees of other side should both one unfortunate offers of unique be families,

from as them. or can to inquire and But if dozen California. people get over their so, know bought a to They've I've we RV. a if we to them first don't they wanted an Members are where Colorado and looking actually get can RV, on weeks Board an to least recent Anecdotally, way two traveling course, a yesterday, left the they heard discount, last as of to let one Michigan that our me of out assist

when So situation. RV feel we'll see we stay I rather lifted. the this from of rapidly and that travel are think home unfortunate really at that bans benefit could business impact strongly And the

Operator

Nicholas Please with next comes with question. proceed Joseph from Our question Citi. your

Nicholas Joseph

demand as April maybe and if on the over MH Thanks. collections, curious drivers the differential next the restricted between age age Appreciate but performance the MH versus expect rental any as different then just months within owned few well. we details all you I'm forward go given portfolios,

John McLaren

Yes. John. is Nick, this

it showed is the its portfolio, the the the our they I benefits age resilience. that of rent And with is of way nature I'd sort April culture. characterize of with think proactive portfolio along I think also all that rest collections

for And as that. company decade been you everybody as we've the knows or gain has think a of the the revenue best said producing site you lose. things One one longer a I can never that

residency there's is value want be Our a in there. to there's our average communities proposition, a reason why XX years, people

on with this think shows there From that for this, standpoint April, of proposition last and value rent is age realized. into lot uncertainty of when is rent see par in that right coming a into I kind collection coming communities that I collections a really that people pandemic all was month. mean, that so

is before of portfolio XX standpoint, component add over community. we've The you not versus a retiree wants to that, from a that, a person XX age shared or all other when is thing that I'd who reminder a bit is age of all a plus the retirement in compare live every

our we within a healthy age So have communities residents retirees. of that are all component

so be And going than those are things to loss job by folks impacted like less others.

takes has with And the experience think the think pressure I to the designed to would are the think of of stimulus that promote like our and to hope the things do needs looking some out starting May that May, hardship our and that, would I government as And I collection April. checks from that what plan that into well. looking so, that are that I it what off similar done will be help people's would that add arrive did was -- to that I program rent to

Nicholas Joseph

then program forward? rental anything on risk the versus going in owned terms of Thanks. different profiles And

John McLaren

it's the program. of XX:XX the it's utilization about as much, mean, I it's hardship No, far as really, pretty

that interesting where it's happened up this that April that's an year. -- the in our last terrible was versus it has tell rental April will of they thing been program applications similar in during were crisis I very you actually with are So home nature.

Nicholas Joseph

Thanks.

the mentioned comments and JV to you spend Australian for impact development or those that change and how U.S.? just does just were then So, the expansion the

John McLaren

supply our ahead year, a development and fortunate stay in speaking we're of think for the the expansion on year spend in and and a Well, U.S., shared for needs expansion this the before we apologize I I But we're really, position the sites. one myself. has been might my think have of thinking repeating well, fact as half a always what ahead that to are things that I

another we XXXX. cause XXXX built sites 'XX, sites in XXXX shared in As 'XX, had XXXX we in

And a so we've got site. supply of good

it tapering impact. an shouldn't So down a for have bit, really

Gary Shiffman

impacted. U.S. in what's been reflect Ingenious It's a little a different remarks Gary. John's little the With I'd Australia, place of distancing maybe of more taking that to business size to versus regard and a They've them we're U.S. bit the population little the thank it's proposition. a bit did social to less natural bit what the here experiencing the of allows like barrier country in

and as they in of going Communities Sun's has to But strong, equity home be or were to maybe advanced. people said, dictated what Australia, kind settlements to they they opposite the if downsizing, used downsize primary for that's closings sale, -- demand move up residence, And and tendency refer those to remained as to in their been they're John there's of to sort home the by way sale, out postpone home long relief who look retirement. a moves of their in queue

understand and very they have very, important to home, to them to it's know go. place a as they sell their that So

anything, if a been little into Ingenious acceleration communities. reservations and the of move bit who to and those plan an So there's have

So that's thing a been positive there.

Operator

comes question with Babin proceed next Baird. with your from Andrew question. Please Our

Andrew Babin

as amenities lot as Can there the things kind more to whether you're kind available at you pricing able related upgraded any of the that reopenings. a know even amenities lag premium on a clarity, be just properties. might affecting little all? far the of transient detail just and amenities, or are command that upon is of may opening question give bookings rent which I like to at Quick that with associated

John McLaren

that ones have of out Yes. more there promoting, I more with stuff contact. mean where it less of natural so to is there be Drew start call we the outdoor sort going the distancing type are can social openings many with sequence that

can of of doing, secure the of infrared some terms check temperatures we think we're we're that we're in also where starting I one things of doing supply that a things thermometers, signage, to the well our And check day guests for things. sorts as when of our be indicated to as providing the in been cleared. those in we're going and they've everybody and wristbands comes as actually team

do an of and back that abundance want of help be they they're guests coming our excited back out for come and Just build this there. to to them because we to confidence caution

not that's in of made so, We've the adjustments of any it. terms to-date rate. And sort sequencing of

Andrew Babin

the color just Appreciate there. Okay. And for follow-up one me.

Just there the has of whether year? sites sites that were may you update on this at year, online coming expansions the end put I or of of later all mentioned on it delivery we update pace kind year any that is Is traffic that in deliveries. obviously last of be throughout adding the down model out? traffic of as and into kind development of its this the producing up, ones onsite of there, this. been year, know Any planning amidst place on the pacing revenue you

John McLaren

Yes.

thus got frankly, I teams As in lot connectivity of to seen our really far excellent far. sort mean, shared We've creativity out I've of out as collect do think supply impact well of virtual application as continue only it and standpoint. the to and to from an thing. field. we've apps And expansion from site great the able standpoint, applications be availability web-based delivers, a in that showings that again, the of an XX% down the is, as I a don't or remarks, as are lot there's

going customers no can up of in we these line be able used building exactly a still as tell after about bit, we the the in but with pace really to going we engaged then being to so, and at, you all to And with the little when a all that. of kind comes it up up prospects that start more what's It's we we be in things going time that pipeline remain sort it's will to it's are again, that to and those line ease do are without end, throughput happen. to

Andrew Babin

Thanks, the the helpful. transient john. on It's Thank I appreciate reopening you. transparency very plans.

Operator

Please Green proceed question. the Pawlowski comes next John with Advisors. with from Our question Street

John Pawlowski

the Maybe just clarification a on first question.

April transient $XX May like, me I'm like it is that coming can fair? It door of million wrong. sounds revenue you assumes, revenue in So the vast Is the zero correct the majority in sounds achievable. revenue still basically impact in if and

Gary Shiffman

I there. somewhere would between in say that's

Karen Dearing

up That there's there. obviously, in April to revenues June a ramping minimal amount Yes. of but up in of there level sort and ramps you're highest -- correct expected from

John Pawlowski

on the cash collections X% MH of that XX% deferred. the is collection then collection April. XX? Or side Is GAAP rents in or is or the So a basis? And cash cash Okay. roughly are XX the actually

John McLaren

XX.

John Pawlowski

me. Okay. Final one for

$XX of are transient side. So you. in it million of NOI, the What from on to million XQ assuming XX impact XQ? million coming Thank kind impact $XX the you on MH portfolio

Karen Dearing

Okay.

we wanting amount providing that that be John, So going to details. knew lead to to impacted dollar some We you do. was more estimated was felt it the right thing

Therefore, reduction we of was much transient the detail as effort that have of these as revenue are that makes million our up it, XX could. things to we range. majority the done we've so provide And the included,

and home and split the million $X MH ancillary, between other to And net expense million It's revenues. sales is remaining $X and reductions. annual brokerage, of revenues

John Pawlowski

at assuming portfolio? point any Are see that in Understood. on occupancy diminution this the MH you you Okay.

John McLaren

No.

John Pawlowski

All right.

Thanks the good. for Sounds time.

Operator

RBC. Our next proceed Wes question question. Please Golladay from comes with your with

Wes Golladay

How home was financing sells? for changes availability you changing on Are any seeing that?

John McLaren

haven't. I No,

Gary Shiffman

been hasn't better. gotten gotten But It worse. before. it any hasn't any hasn't good It

Wes Golladay

on on still doing that front any helping Will enough. be in more that Fair it?

Gary Shiffman

have track work Do more housing, be we the financing. the second subcommittee any at color quarter. worked first manufacturer end home we our on to on hard They improving that the focused at through on loan probably on availability of securitization actually were it. is a to think I of Board very able time? this know John's really have of that Directors I

John McLaren

time. Not this at

Gary Shiffman

Yes.

So will home as financing it posted, but the was months same two ago. pretty much everybody we is the today keep

Wes Golladay

Got you.

in tenant the leases increased receive? that, benefits a XQ? addition should May the how Will to hardship increases? extend expire And that you of the one at that off then [indiscernible] unemployment on Then Okay. is in quick looking beyond to need many hold many MH rent program and

John McLaren

to a was a good very precisely jobs we process be because and hardship to go April designed and out for in that's difficult program it why the Well, to because thought May find question, program and with the that's people include going April. was

July. And so, in begin months. both talked kind wrap XX-month we And of time remarks, prepared payments, as wanted to period we a lighter the our about those of over payments in starting it over of

So good earlier said I some residents. starts at the people, together will well when putting lot call, I would taper hopefully to hope think as things ease of on May kind as that as that our back that promote, things provides they're pandemic of put support this for My down. one rent be a like for collections

Gary Shiffman

The have increases does those rent collections or quarter, by rank available someone renewals?

Karen Dearing

the I'm question sorry, last your was? what of was part

Wes Golladay

I'm that this can't expirations expired sorry be just quarter. the

Karen Dearing

I the that of number. don't detail have

Wes Golladay

No transient one. for maybe one the is What typical problem. booking And RV? last then, window

John McLaren

are a day from anywhere it leave It's be in be of. advance of can pretty a could they before range. wide I and year the mean, the before that booking year a people it lot resort even from the

Operator

Joshua Dennerlein America. comes of with question. with Bank Please question proceed next Our from your

Joshua Dennerlein

people if or up are go maybe you pushing those do on considered follow any the for question, X, through so, this through on the they a last January staggered for year? throughout increase all year? just rent And Maybe not increases, MH have rent

John McLaren

Yes.

the that is there increases about XX% So first quarter. happens the in are out what

to we until little open further rent a those up or so put on start are have bit. ease things And Josh. a already up hole out then, increases And

best basis have think, of look impact XXXX. could in it at rent for this sort time. point overall, about you this on maybe And when guided XX estimate increase the a at our That's point so I

Joshua Dennerlein

communities that's with all for communities, MH Okay. where also that RV annuals? to is And related

John McLaren

It's both.

Joshua Dennerlein

And May on anything start if goes that thought given longer for access in can you can't reducing like, okay. there things RV how the pandemic if the would Has rent as if opening on and on Both, side, then people their for far front? year, like up their maybe RV maybe been the as on sites side. to respond any the

Gary Shiffman

ramping across what the for our it's just deferred increases country. place something take talked indicated to -- as But being. the have we're that continue earlier, and conservative in we like process have watch we through we think that quarter I been to time going see something slowly the and up we just thought does about have rental

related be for fees to and other charges, our often collect all that various eliminated residents. have fees We try delay there do we

concept our said, provide it'll so transparency on, there work we're additional of think be long-term be the look we we take now. what hard and to very market. have that our If know a in to you and do residents best forward But that's just with able to john did And to what process. a As estimates. are put things we really the to continue going at we good

Operator

Our comes Fargo. with next Stender question you’re Wells Please from your question. proceed Todd

Todd Stender

you're hope all Hi, well. everyone. I

Gary Shiffman

Thanks.

Todd Stender

Thanks.

the to hardship program. back So

about How like What July. You guys up talking tenants about they pick are does April over in maybe June? May it and June but seems then jumped not.

John McLaren

Yes.

of think was minute trying due ahead So before I said think just I sort mean, of rent like that a program launched to it. April Gary what we the of even ago.

about but some between there fits program, to to time, And that there. making so try payments had people data that, of are out So thinking various it back. to down, on space to start and models to hopefully that when have slow cover set we sort when provide at that's based start things with the the was the the up out and April just the May process are thought we

or And concerned it's so evolve we say need as to. that June will things I is emerge mean, monitor closely as would and tied, we far something as I as

Gary Shiffman

So burden if the equal took over back, why extend that's of we of in residents. to June, the payments why that's And their forbearance rental they easiest to the payment didn't pay an route to first days. were the we also XX delayed on them it so it period want additional XX to start we time make with making longest

Todd Stender

Thank right. you. All

June and begin paid back be just April will standard July, May So your payment. in being will but June

John McLaren

Absolutely right.

Todd Stender

numbers Appreciate compensation around going for looking estimate you. and G&A start give us any just And for forward. our then Thank the to at it. Got going that. this for and look executives based board

Gary Shiffman

really have numbers don't We and…

Karen Dearing

them add that. the They just take I can a out my add of in you proxy Had up quickly really think them to quarter up head. Todd, and came in

Todd Stender

Okay.

[indiscernible]. one now So worth for it's quarters

Karen Dearing

Yes.

Todd Stender

Okay.

Gary Shiffman

and Board they in done of strategically they situation a reached whatever pleased to Directors they've but early financially some, on wanted able to We proactively, the were continue in very distance obviously, some, us out and but from to to contribute and do our they very do way. could were this

Todd Stender

Okay.

Finally, now? on Have you preserve sit just to cash of liquidity line much of your balance. also credit for kind how you've tapped out Karen, right your balance ramped, but spelled just certainly

Karen Dearing

I'm the Todd. sorry, missed part. last I

Todd Stender

on to line? just now? is you sitting Well, taping that? your just liquidity preserve right much How Are cash

Karen Dearing

$XXX and We million right, about And like near our We We finished meet also, We cash financing. in subsequent feel additionally distribution is enough needs. line, million million unrestricted of quarter drawn haven't our on we $XXX just end. to April. we hand. the that you're to our $XXX term on had drew did

think a million, we did point in about to have balance, need position in distributions, time. $XX So this I good we distributions that at we in less million $XX puts flexibility think us the

Operator

from comes proceed Evercore. question question. Khanal your next Our with Samir Please with

Samir Khanal

for early what Do or guess the your few any last the have years to and rates new to a get the on you to side of maybe you initial lot of up other you've here. to thoughts this, pick just see deals unlevered for Gary I is acquired in of asset? cap kind any could want IRS and opportunity maybe, the done kind as I reads underwriting for impact you.

Gary Shiffman

likely events interest three to following the That's areas. state We're until different several I seen question. in were excellent not that of have we be for sale. would seeing that recent communities significant types

properties whether We're look but biggest that traffic to that's or to in appropriately. dialogue at priced for as been or discussions not lot sale, getting surprise, we right the now. were a those have and and probably we're things of inbound So entering are been not want

we to starting them. to And been didn't then we have They're on but that proactive or weren't to getting surface. act acquired, could properties

cautious are being, we're time valuations. how that the remarks, to we're And that to sellers turned be very earlier kind thinking acquisitions. a realistic the as But about overall responses seeing taking might think more seeing we of I said So a up those offerings. I a in interest approach approach for my think I acquisition their in

Operator

proceed question with the from question. Our comes next Kim BMO. John Please with

John Kim

Thanks.

rent suspension catalyst escalations? Would in they portfolio? Just a macro would or the or your tied within be be follow catalysts On to MH, your increases of factors up. what return metrics to your specifically economic projected back

Gary Shiffman

about we've this. Anyways, Yes. talked

communities. us. have to our what in us what the macro the had in residents with it along think We've who time. rest month take by tied I paying we it we no as opportunities got against a Sitting of strength we our to And I compassionate specifically stuck We've a the and stay May well combination to We'll one now would that idea with our feel to March residents continue residents rent. through will be and of we pleased. our be really other the sticking as metrics at desire see how our assuming at think their pleasantly world, when offering the look portfolio. in see quality how or world we gotten April the a and continued about rent, residents we're April by want of being

forward a get fluid the present back seasonal with by transient month we'd and everybody we like in here to thing -- full month. to John our situation our a something is the transients accomplish, first and will decision shared as our have And to open. So business to communities making management seasonal it's as team ops really and we step

how we I approach be put step in increases. will behind rental positive us when that or thing think and having if a we

Operator

with question. Next proceed question comes from with Nicholas your Joseph Please Citi.

Nicholas Joseph

Appreciate seasonal quarter potentially longer remained and there that's the scope the expected curious what just on could for of the color I up revenue follow to refunded than want second received, than but if open Just the expectations, properties that guess the revenues. be been expected. later transient [indiscernible] Thanks.

Gary Shiffman

And the are magnitude if anything, or anything refunding discussion. don't think I to we're that approach concept that has that we expecting. been I think of

John McLaren

of the either occupied a we months XX it's it's and where think in the the also Nick significant resorts, vast investment they've that the sites. important done of seasonal to their note or site year. or majority park unit the in seasonal the Like remain tied down sites I those where shared annual model a it's script

And MH, made been significant very them. investment to that's it's so similar by a

pay expect So I they rent. think the that a lot of to -- frankly,

Gary Shiffman

kind at it's something we've So, not actually been planning of this time.

Operator

like to to for the back call comment. would this turn At management closing I time,

Garry Shiffman

is participating We we thanking have communities believe call. to well up pandemic. see our shared our for resorts COVID-XX a by and provide I We've navigate access through. this just and it Sun desirable wrap on that highly to to are dedicated capital everybody continue and positioned want that this firmly to to and the experience

to Karen, to have. myself others future. you And near around in forward John, always, the Thank and that with the As questions in you company Operator. you, any remain look follow-up we updating

Operator

today's This conclude does you. Thank teleconference.

your this may at You lines time. disconnect

Sun Communities (SUI) 23 Apr 202020 Q1 Earnings call transcript