SUI - Earnings call transcript Q2 2020

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Second Quarter 2020 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 meaning 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 include the effects of the COVID-19 pandemic and other details -- others detailed in yesterday's press release and from time to time in the company's periodic filings within the SEC. obligation events or date or release. no statements any of undertakes reflect to circumstances company to update revise forward-looking the The after the said Financial McLaren, President with Chief Operating introduce Chairman Having Karen Chief and like Dearing, and Gary Chief and John today: Shiffman, management Officer; Executive Officer; I'd this, Officer. us to question. After there'll an be their opportunity remarks, to ask a Officer. over I'll Gary Shiffman, Executive the Chief call to turn now and Chairman Mr. Shiffman, ahead. please go

Gary Shiffman

we discuss of all for are Sun Thank open this housing but as and been you, the pandemic properties challenging, of across joining and provide to that and of and healthy happy RV and you Good is hope is everyone environment impact how second business through intensity country report Operator. us to our our an has time. I'm challenging morning, thank manufactured the COVID-XX. on results We that the performing. managing evolve, staying quarter today The update for continues and navigating the

We focused across hard a we come and expect members have perspective, team customer portfolio. signature service residents, safe. remain our have guests guests to delivering that Sun's From the to service residents worked the on and keep

of presented mitigate the for impact results second are with plans to served of financial pleased has skilled We our our on by The execution business. quarter the in team's the virus. light challenges the operating and our

was quarter approximately program our expense FFO million manufactured due quarter reported is business. the largely our of $XX of variable rental and quarter. net results For second were share and RV RV our million better $X.XX expectation transient a on driving FFO Offsets initial performance the to housing to Despite $XX.X below savings during personnel operating the our that core $XX our provided Factors strong second we primarily quarter, to virus, and obstacles positive budget due were our the for costs restrictions revenues, first than in impact the contributors COVID-related million resorts included original expenses per not which realized release. open. to to related

NOI growth addition, generated $XXX,XXX NOI been In Communities of X%. would expenses, of same X.X%. for have COVID-XX direct growth related positive Adjusting Sun community

XXXX, of with an our Board certain manufactured prior members, for work housing been set varying public team returned XX% As to degrees guidelines XX, are and RV occupancy in a our in the officers of portfolio unique our are last open all platform Total members basis Sun's health as team to resorts June amenities local compensation and sites, furloughed office have executive added of of comply year-over-year levels. points to communities by restored XXX Over base we limitations XX of XX% has governments. state seeing and revenue-producing and we second the over resilience year. quarter action. rose in main From operational increase the occupancy perspective, with of

sites. of We almost vacant the redevelopment development construction and ground-up also completed expansion, XXX

budgeted forward our pace steady the As have July for surpassed incremental bookings reopened, in August. pre improvement our and Moreover, has and expectations. reservation country experienced September we've for pandemic October

compared and vacation local in While improved Articles ability lifestyle amount inventory on Journal Wall other as Winnebago national York the trending reservation strong mode is many RV to the Expected are this of and June is limited travel option this and the safer growth the for mandates the media could in major to local thesis pent-up to by alternatives. Street reflects get potential to and easier this demand control Thor among and Times impact trend, beyond summer. RV preferred outlets. discussed by other only like perceived we supports offer available to RV pace sales for both New this and be and manufacturers state Industries. families believe our away a that as

gave pandemic site act forward such we optimistic expenditure cognizant this to in million we our the The a it underlying resume and in of up in deal confidence booking the the of trends, how on affect expansions the active very us must allows months May. remain raise strength growth us raise to current capital be This equity and to ahead. $XXX might of developments. travel ground While COVID-XX midst business projects, situation on and pipeline of related as

not While its position high-quality portfolio core now has that as and due is will ultimate a sheet. we nature commend as a know strength exemplary. and business, executing far, well of the operating been members results of beyond financial our thus balance It during our financially and do due on more year in in strength one been these duration and operationally challenging John of our principles to few pandemic know every discuss the the do Sun to offerings we the and I has Sun's for of our each impact team detail. the Sun's above going Their to months. commitment on our of of past

John McLaren

report our quarter Despite revenue-producing boosting happy and challenges sites, by containment XX% financial efforts to XXXX, manufactured April total quarter our hardship period, XX.X%. emergency better-than-expected preparedness housing approximately a the and we their deferred financial presented implemented been From has now Thank our to with the residents we results. portfolio pleased mitigated deferred that the XX-month performance of program this occupancy full. rent already increase second second Quick business our very gained quarter. are implementation and collected in rent in Moreover, for total perspective, plan, to a XXX XX% over repayment Gary. rent paid pandemic, the is have the you, installment total we May are the to revenues of cost over XXX and

year-over-year of and portfolio RV of by portfolio-wide in variable resorts an in revenues a opening the to RV our to weighted a level resilience at last declined in Our a the property RV increased rental delayed expenses from demonstrated openings average decline transient measures and revenue community number due by X% during at the increased NOI by revenues Annual increase over decline and second reduce and to rate grew X.X% revenues due by largely as expenses. the XX%, previously. by months. XX resorts resulting X.X% same taken gains quarter. X%, delayed seasonal housing discussed occupancy Manufactured quarter driven X.X%, X.X%

payroll seasonal state quarter the not in certain of revenue-producing seasonal in as furloughed realized returned Variable maintenance second lower On half most benefits the be and team to local across and by expense second driven and over the gains restricted almost due utilities expected Same given savings months. work XX.X%, to year delayed to furloughs the amenities experienced amenities. members and we service. to reflecting that hiring, community access in the are to side, improved health X,XXX and expense restrictions reductions are last quarter the and second XX occupancy XXX site return points were to basis accessible items

and continued Total housing almost same in as program XX. demand balances, the percentages and as rent XX% hardship second with our the collections community. of home X% resilience applications Additionally, renewal July year-over-year. demonstrates a and the were to quarter up at line elevated regard live are platform With to the exhibited These in of Sun rental with rate for are strength of rent-a-home quarter. applications to an XX% XX.X% a collection, of averaged net in XXXX deferrals in Sun from the This rental XX% manufactured figures our collection of and prepaid increase dates.

site also resilience balanced Additionally, across the quarter, of XXXX. the collections over XX% and our second in collection These communities. portfolio rent, manufactured the for of housing line portfolio predictability indicative of strong with RV the and RV second averaged quarter annual are of approximately figures

year. compared Moving on sold physically homes sales, year-over-year inability home restrictions Shelter decline. XXX to XXX the homes as and homes quarter, to second in show in place we contributed the to to last the

XX%, While down, X% sales quarter, pre-owned grew margin by home by new our homes. expanded of were the gross the sale in sales driven and XXX home revenues new

to increased price the that to last of economy. over We affordable and home believe XX% in provider detached likely year manufactured post-COVID today Sun preferred price new average are $XXX,XXX. make housing Our point high-quality and communities home our a

particularly business travel lifted business, week steady after were week the shown transient RV restrictions as improvement has Our our RV throughout quarter.

We visits, reservations. have and call acceleration volume website seen an in

last Day RV Memorial weekend compared as revenues trends example, in for revenues July to were weekend For transient of year. down XX% just while compared RV last X.X% fourth year, were down the to

the RV of media addition, growth period same the year. than lifestyle strong bookings coverage month for are Gary to the and and past XX% over the few growth the sales greater demand referred trending for RV the figures September and In months. forward over last trending surrounding projected October

including from our on believe most have longer to could travel We seen pre-COVID bookings. forward to and travel take are the and bullish RV follow-through options, and return guests air We cruises, vacationing levels. that our other

Given are popularity the business and performance the of platform. we product importance lifestyle and reinforces RV offer we of own, benefit an increasing option. the our to our and vacation high-quality from well-positioned during excellent the overall this to of the resorts time breadth resort this We challenging

for priced our vacation of of are sheet the and We in has we long-term remain at view over experience forefront financial a consumers. turn model. affordable of to like our need. call to discuss many of the standard, mission and ways, The resolute our housing and quality and competitively our balance to viability of importance highlighted in I the has the the Sun, safer fulfill Karen the business pandemic now options would set providing desirability this results preparedness. to and

Karen Dearing

results, expectations by third balance you, sheet the begin our John. well reviewing discussion to as I'd as like by followed our of financial a quarter. our for Thank

The reflects from core previously million XXXX, $XX.X ended per to $X.XX operations better was change which For expectations. than quarter share original mentioned in we June as last COVID-XX, FFO from impact XX, year-over-year funds our $X.XX year. reported compared the the

developed During resorts and located in X Oregon quarter with a home manufactured Florida and XXX subsequent California to in XXX sites sites. we acquired community totaling and RV end,

volume acquisition Our year-to-date million. is $XXX

community our sold weighted average proceeds acquisitions, In initiatives, offering XX.X use closed netting intend of billion At years. for $XX shares, X growth and outstanding expansion in interest Montana end, X.XX% weighted proceeds. rate with We and public to continue debt to quarter including we million a our had the maturity developments million. nearly average we to we $XXX of only $X.X fund an a in projects. ground-up underwritten of May, Additionally, million

and net EBITDA Our continue to financial debt The X.Xx. at to situation. ratio XX-month and implications its fluid operational be was a pandemic trailing recurring June XX

will reservations, cases may COVID-XX of new challenges not spike quarter have be an we we the in also recognize improvement our we and guidance. introduce seen is While third level reinstating transient in beyond, the which unforeseen why recent RV in

addition, In budgeted the are Based expense the XX% biggest a for on as year of our our original open. quarter budget, all be number approximately of of the year. third the realized not savings second in FFO remainder variable our contributor, representing will communities continue the to for expected the was quarter of now

we our decisive heightened of information contribution from includes ancillary sales. the have for flexibility challenges budget Sun of includes protective expected personal annual property additional react cleaning is real acquisition million to meaningful the transient and range we net between This from operational for of protocols. to during $XXX,XXX million income also across time. net financial RV manufactured the year-to-date of original and to expenses today, home equipment this to budget of related with $XX of million. and The contribution With $X.X reductions have housing, products available RV, taken provide quarter services third $X reduction $X.X forecasted actions million $XX from original million the to and It

to like they would that remarks. now us believe also We the to Operator? prepared opportunistically you respond well-positioned acquisitions for today. concludes to call This open we Thank for arise. questions. our are joining as We

Operator

[Operator Instructions].

Our first Citigroup. question Joseph Nick today from coming from is

Nicholas Joseph

color Karen, into quarter. I appreciate third the

the annual expectations? So break transient RV real the MH down RV $X.X million that between and please the property, can you impact to

Karen Dearing

Yes, sure, Nick.

RV. million. $XX due a to on As changes, property, piece seasons, of to $X.X there's is annual we rent small That's impact income included noted, it transient the a and million. MH about $XX million of increase you RV $X.X shortened on range million from

the X.X the split $X.X can between you and between difference RV. MH -- So categories, the probably X.X sorry, I'm annual million, two --

Nicholas Joseph

expectation the acquisition second then that the mentioned and raised you And the in for helpful. that. equity pipeline, the That's redeploy you quarter to

today. So can about are initial talk is pipeline you now? if any change from just then you've maybe And pricing, where yields And on seen the pre-COVID? where

Gary Shiffman

a with higher. with share everyone Gary. very of Sun. lot Inbound looking is would been to pipeline potential from Thanks, have that discuss never I Nick, the transactions calls attractive it's full for opportunities owner-operators

We have the estate of a to the discussions. to planning it, related up open XX-plus it driven years, and is the on, where over the going right relationships just factors those all by lot pandemic built directly timing

So strong pace acquisitions, result driving offering. we reason that expect to the continue and for of the a and the was equity

the Going and second $XXX year, date, quarter, were million into a million had of target on million. $XXX closed to to about we've closed $XXX we about subsequent quarter, about discussed and second acquisitions and

at of some there, on They've the have and rates platforms. of be advantage measure, communities, very quality, can than the I've available has industry, we're the million relief experience the trading today, X date. pricing today lower say where beginning spoke to an put of we said, work a there rates I well-located of segments. the lower cap and access opportunities have that share external think where interest provide somewhat being I you on the to that X.X been to a carefully, to able that be and recognition and seen in RV some for which going. Sun, range of pipeline manufactured give X.X% if will range will on $XXX interest Karen the sense a take the to cap transactions Having as resorts., marketplace cap we drive bit throughout transactions range. we closed lots be of That that where touch we and we're trying actually just continued we out more would rate would balance is transparent low rates to rate, would will, been opposite acquisitions. we have than with growth a acquisition we we closing up focused come of to to and give I thinking some deploy I at So very, sometimes the expect both to forward. And helpful that We're willing both me capital push in lot and everyone our that on contenders housing equity of been capital continue And the little as outsized of equity on have surprised. we looked cap in shareholders. And of manufactured cap to year. continue had to would continued a will our have our at that growth look be And allow both been be to up looking these move most growth RV below. the the properties Xs There's this our share the to not been that allows rate. would have of to call as We about rates, long-term the to down in a in less us expected and you we've to I expected might of When fundamentals that having more

Operator

next is from RBC Markets. from coming Our Golladay question Wes Capital

Wesley Golladay

you talk you're for Can conversion what demand RV perspective? about a from annual seeing

John McLaren

Sure. This is John.

we of challenging has see -- social standpoint, will can we've the of and because in respect that end that not interact So conversions. had guests on that's of March, a had with the and temporarily XXXX most results, July. and happen how of secure which conversions, bit healthy distancing, I maybe I we tell mean been, Many had -- face-to-face, conversion June much RV a conversions we've as to you generally you and the the with for southern in our much our at happen those northern early mid-April RV happen to so very temporarily is early lot

transient because timing the to wasn't annual reason well. successful converting as is coming been that great But why So to our the love so said, guests resorts. we've

things and will think down again, normal once we resume. closer I settle that conversion get Yes. So activity to

Wesley Golladay

I mentioned then transient see, guests. open And the were know -- you there the just all that all looking all had And just it the -- sites they RV if sites, I certain let's is to say curious, your restrictions were are think that at Okay. clarify length But was period some open. earlier, you sites everybody want of of a to open. the RV for I year open all now. are to

John McLaren

are the some communities sites or Ontario California guests open. where got a not some is as have that any limitations have available resort transient time. -- are Every you that can transient for in in given number few We guests. do we've there out short-term they're at And still of just

So bit that now. little a going we still on of got right

Wesley Golladay

later Got you. year? expect one, And you any developments do to start last this

John McLaren

the some second in had solidly we very we ground. ups those it's quarter, last just in up which we'd Larkspur, to of for to are that sites phases actually I the added Well, south actually opened is -- am of quarter, deliveries we us this over to year. that we ground opened of And the in we Colorado, say a developments big additional will their excited And done that sites in additional year. up up from in Denver. the add is course because thing ground site which for well-located look the

ago saw is as ground I of just a San at myself Vista opening early as Costa out far should Diego, next coming In the year week in it fact, be concerned.

Operator

coming Our America. Dennerlein Bank next today from of Joshua is question from

Joshua Dennerlein

additional enacts the seems forward if it, affordable you kind Gary, everyone. kind unemployment long-term, about probably How nature those legislation. the like out, run occupancy thinking all-age of it like from just or of just but benefits benefit new Congress expanded near unless Good expires MH kind big morning, thinking of soon going just picture, what of are term.

Gary Shiffman

you We is give for mean can only we an period then have here, you feel after can being years, And And asset is time. the I in It's Gary. XX-plus all proof, with communities the the not is with in our time, and experienced free we growth everyone. with intentionally communities I long talked when add that manufactured in anything of look in balance. for the as because business think particularly designed long but but resilient estate. typically This balance period of find it's a housing. I've we our affordable recession of of of We're what about best class portfolio, age John, to real as age-restricted that I perspective share housing over

when you just get at periods so economic. do communities, are more we look there the when very turnover challenging age-restricted And of

Karen Dearing

All age.

Gary Shiffman

sorry, downturns, housing. more increased affordable it's I'm the desire for age. by but all-age All up made economic than

So those various all of through when others, look our economic downturns. downturns, post we economic growth strongest financial great the some is the crisis,

but in strong. look So bad asset not like again, resilient we things recession like similar XX has annually And pretty back then points, we think, high range debt to very, has to the how a opportunity, from pretty XXX XX I great other low that's proof, during and period at, recently. when go which classes -- debt, did of XX-year bounce look I a about we talk to we back And very that basis it basis other averaged about my unlike years, points if XXX And basis goes. bad that points time. basis of notes, back -- of a averaged XXX points around

add might you some seeing. you're to want to color what John, So

John McLaren

we've on Josh, overwhelming it communities, people that number I'd coming seeing mean, is add, only the our already the are as quarter-over-quarter rental up quarter The we're Yes. I meaning of in total just side, far the applications counts that apps the this home for of color XX%. of having midst sort second gotten Gary, as to as well up the as X% that application a being

street Our the are XX%. up applications sales off

experience time. our a recession that maybe lose standpoint, okay, are end, the come but time, coming than product Gary the been of because that good people way we That's different into occupancy to forms characterize seen over like talking people period over XX few to it we Yes, from with of in be marginally an product. that Gary we've offset what of And it about. are the a so people that number is is there into years, overwhelmingly said, going the our are in resistance housing,

we the respect. -- feel that about what holds it's optimistic future so And from pretty

Gary Shiffman

And we ago. XX why McLaren, Chief Operating Officer, our years did choose started John Because XX years? here

Karen Dearing

the From door. the in walked moment he

John McLaren

in in cut this I my business. teeth collections

Joshua Dennerlein

for Awesome. one maybe more And then me. just

You was through today, sense in benefits XX% of Or mentioned Any -- quarter? at back. have the teammates -- XQ? where same happened I recently? of start said of trend XX% how kind furlough your all fully the you think community Like they payroll will that come just of and back the that

Karen Dearing

pretty were by of Josh. they No, back first start the the much quarter,

payroll we're that really So real from perspective for the expecting not in any reductions third quarter.

Joshua Dennerlein

Would for decent Okay. that a to for run then? item use line XQ be XQ rate

Karen Dearing

it's Well, to tough of say because seasonality.

You've RV, in members it. of a team higher has which level got

a take to back. have I'd So look

probably make Josh, You now. comparison I Fernando on with can't but right follow-up that that,

Operator

Our question from coming John Capital Markets. from Kim BMO next is

Piljung Kim

quarter I realize was you same in if But segment RV the second could rate has I periods transient last the was and the the since second occupancy what today wondering RV up transient versus the share year. for quarter. picked

Gary Shiffman

that Actually, that after have It's you don't that. of the can we up John, for right on call. me. front figure I something follow back with unfortunately, in apologize I

John McLaren

transient your Is But RV X that Okay. prepared was the trending weekend. of sounded like remarks, excluding it in year, last ahead July correct?

Gary Shiffman

it the has the been had. picking result of each to and clearly a And pent-up quarter, those that's been a months. Yes. the and for looking we that's April, stay I what said think of the the sequentially characterize done Gary I if there -- at the and look it's June, at which -- is consistently lifting it speaks I I as and it to out limitations May up, the see revenue been of home get between demand And of people what at we've would that that and course we've the over lot -- out. orders times, mean many

And the on ticked occupancy can, figures those again, actual so see has I figure, you. the and without for the revenue, but know circle that I back having in up, we

John McLaren

who all be time look our downturns question because, have helpful This how we we've I those approaching business have through in far we John, our sales. remember can period manufactured one XX in might platform that we of to XXX RV over a XX, as as of a at XX, and historically, you the studying year about time. back that is $X measures, an housing when of your back, Those we're the our been it. question resilience can. approaching on points economy, in annual basis grown greater communities talk discovered Swings prices gas than But business look average we're thing revenues that XX a gallon, if RV

word portfolio XX-month they their of it's Australia, which in mandates. pandemic, borders, pretty and restrictions fundamentally, over both much the our the our that of period through the other Australia, the are the and And day, think impact of time, both for up aside where not John we're in forward stay-at-home internal in going transient reviewed of RV forward reservations closures struggled resilient we're in also investment demand I and that XX% seeing travel really as brushing is used and we're annual here as be I the So strong back. the bullish, how comes business to while proponents

like daily business very of on feel the that changing good the think the our cognizant about I very, to pandemic things and environment uncertainty how And perform we're of also subject going RV that will and we as virus. governmental actions So the with annual goes what's of forward. transient

Piljung Kim

your Or transient you that But budget X in reduction of million of mentioned, in from some purely July quarter? $X.X back versus that baking was conservatism are half real some the the property, the as weekend? in Karen to RV, is

Karen Dearing

represents to of is. a There's don't a what's bit there. That's RV transient Obviously, going what reduction XX.X% of Yes. budget know conservatism our on. we little

So it's pretty of conservatism amount small there.

Piljung Kim

Okay.

expansion the delivered revenue-producing XXX On this you've sites quarter. front,

the first was quarterly to probably year? for close the how figure the is this a Some of quarter. that delayed in run of rate But rest

John McLaren

sites, revenue-producing John? for mean You

Piljung Kim

Yes.

John McLaren

the puts year-to-date. sites that -- X,XXX us think I gained for we've X,XXX or that plus Well, actually, at year minus roughly

somewhere original I was So think we had what -- our X,XXX think guidance. is was I in guidance it about original

going good and way to the had really as I'd be second a -- shared guess question the is it's gaining quarter I front in was the than on It we that we answer last sites. of RPS So year, some remarks. higher

but I am on I John, at. with just mentioned, I -- some subject think of really in would forward everything that now. time. sort to happens were. of But is is right pleased think that going it of dependent upon, It's guidance application the what early, to what that as it's close it where we're you to where Gary at But be yes. this pandemic, bit based to just It I me we it's for give the a counts, number think still is provide little a difficult

XXX sites last about shorter think we time. I this at year than were it's where

the range. striking in being distance we're So of in

Operator

today Street is Advisors. from from Pawlowski Green question next John Our coming

John Pawlowski

years portfolio high is the just and quality unemployment now. high today? and from to debt darn pretty everything betting Is over see geographically bps bad but watermark XXX Because over back situated today, line on wanted conversation average from you on a is I coming the right last collections the better what referenced circle you I these The a reasonable ground XX that the or earlier. believe, high XXX, XXX years there. of,

a is that XXX XXX debt bad reasonable So bad bps just everything you consumer of strain bps, numbers, see your in the on terms kind debt, net of bogey? today

Gary Shiffman

way. by post-XXXX, bet. an that in possibly can we've of But don't little it's it's as Well, bit. a to see operating as range. you okay, for though, a that is I the period And share been you, scary, with we time, unprecedented. difficult didn't that's have environment We we to pretty bet And clarity, in spike can. We range. used beyond a tend precise the And like word be to

I bit we out it's don't a you have accruing think share anything far of thought debt, through for that metrics can the that with that think that because of reserve but I little and of some Karen bad range.

Karen Dearing

million Okay. far we uncertainty really Yes. bad being that, The conservatively -- on an additional the with have, par. just as accrue That did including QX. we -- debt said, has saying as in hardship $X repayments, that we Gary of

is million, So debt about bps. bps that $X revenue XX think, QX without bad XXX of I

John Pawlowski

I deferral unemployment mean remained -- is a relief, or in reinstate coming you asking June? you've coming have it it you to you've cut With program? to the though there elevated, Or are or Okay. is -- you still stopped for there renters consumers even to that chance

John McLaren

This Yes. is John.

So why in -- cut June the but that off trailed we -- we those of significantly. part was because have off actually end not requests program of in June, and for a we reason lot the had it it had we did

reengage point expectations in we have So again, I hard time, would in don't at time, have point But to it's -- that any say. we program. this to that this at

Gary Shiffman

nothing with nothing if you on the vulnerability, to conservative what's that with small what's be the going with is than we've do unemployment. piece there's like you, wondering all of that side, there it fluid, discuss some because happen Karen with we will, you shared we happen on is stimulus could package, And to share shared out going collections. very to the seeing of but But John, unemployment we we what can are discuss and we're where other this. now you

us deferral. In the the we to fact, percentage was in received that? it was John, the prepayment for full rent receive of for request what of somewhat unusual that

John McLaren

XX%.

Gary Shiffman

they to back. really pay months Whereby XX%. XX this had

some if by conservatism that that as uncertain can going to residents some pay almost times. bit you back deferral us will, that these it's who little of they want enough, there's interestingly we're know navigate our currently comfort, So and gives if to how a

John McLaren

it's of business. a affordable I so history -- terms we affordable grew, we have crisis. goes is doesn't to to tough And again, matter still it resilience what it's still too, think a we shared went it's is, XXXXs have needed our the what that is fairly the doesn't it grew. we're product go to it times And times global on housing, just vacation, we at things of really to again, early the financial so also look that were economic the the through shared need the just the tough what in it's I mean of cycles, us, important, in along that were of resistant through back because through, matter always okay? in economic with in the and that seeing application the fact other We kind cycle -- back we they There come we have all of way, John. all counts there. is it have, we've And okay?

John Pawlowski

RV between to on roughly Okay. me. for I transient. think appreciate last one MH for the Circling the Maybe X all and coming the split other $XX annual Nick's on back thoughts. property I And and first half you it's million impact just question the mentioned quarter. roughly real Karen, income

on the rents again? to Or when a rents increasing not is up have date a it on you're start come annual MH, month-by-month going a increasing is -- there with you or process? the RVs So

John McLaren

is Yes. This John.

So we've already rent increase process John. again, implemented the

the never said can things important is the revenue-producing site gain that One we've is that best the the one -- always of lose. you most you

of increase we've the Sun's goal with careful in what's terms been rent stakeholders. of of for so XXXX And for all doing the very right very thoughtful,

process. -- So we but that have engaged

Karen Dearing

place mid-March. to of And increases reminder, about just XXXX prior as a our in rent XX% were

our to sort in around So XXXX rather that implementing we'd X% with of to them rent increase raising be of expected our adjustment X.X-month guided halt -- We after is weighted to rent to our that than increases, that X% we originally now. average end by adjustment MH the are year. the XXXX think rents the

Operator

Our next ISI. Evercore question is today Samir from Khanal from coming

Samir Khanal

but a I year's further that of in if sorry 'XX timing this more of of this the raise? Gary, more that you missed $XXX of and acquisitions? the story? what is million more Or at -- those equity bulk that looking here? of Is of was it Is earlier, are that deployment the

Gary Shiffman

don't significantly with what with we Well, based would last million I this. previous other be pipeline simply into closed glad next should that acquisitions the able our share now, forecast overlaps we we portfolio. extremely we'll so than Jensen be if to done year. closed exceed we've be of far year's on what full. I this that to anything this And ahead on refer of And right is pace expected year, in well for year, But we only years. where can say We're to with volume state generally, exemption to the the acquisition to $XXX

potential and up growth are to raised We able match we pleased will equity that capital really to is we the to that timing acquisitions, forecast. the very be hard the

Samir Khanal

maybe second provide that my sort JV, up I guess has to COVID-XX through address update how -- on business just, holding here? can question an of your is Australian been you

Gary Shiffman

quarter, I borders, with certainly little over similar Ingenia really how expected really total perform it their $XXX been. another Last tight But to Australia million June these well business to has and were to Sure. year-end, in prior referenced that has year-to-date XX. RV which during close bit restrictions continued with within they a challenging internal announced XX despite their times. was their home sales

if they closed. have should XXX close So home sales around those

our Sun are over due development to entitlement there delayed slower original as been the we've situation in Ingenia part capital approvals delayed our some deploy goal On that there wait to we venture, some than continue but COVID the for well. to joint

new additional gross homes, an deposit which place AUD a generating now homes million X X.X closed with in contract in about We've Freshwater Burpengary. XX project, called of first being are proceeds constructed. Our under

Similar development. we've forward, travel with everything the results increase before. and a the are that they're lifted over U.S., in deliver have that returns delay but COVID of just looking open, the been then RV, that bookings a restrictions on one of hope year-over-year we I kind XX%. indicating few is the mentioned now XX-month area. revenue track strong, for and of exception what Some in to experienced again comments And to but through

to the I'm well. of looking much ready to They're getting to perform market forward So they're them seeing continuing is. report and on their as year-end results,

Operator

of our the or comments. reached turn have to session. back question-and-answer over further We like for I'd closing the any floor Gary to end

Gary Shiffman

time strong all to us is ensure this join Well, today. through the to response believe you we the of time this to We want in of of out on for side and other taking unprecedented business that our Sun's thank actions period pandemic.

of for So we follow-up operator. you, And questions. conclude, and available always end look Fernando, are to Karen the forward at speaking you always Thank as I any next John, quarter. myself to

Operator

teleconference. That conclude Thank does today's you.

at this today. You day. participation and a may have for We thank you disconnect wonderful lines time your your

Sun Communities (SUI) 23 Jul 202020 Q2 Earnings call transcript