SUI - Earnings call transcript Q3 2021

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Operator

Greetings. Thank you for joining us today for Sun Communities Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will begin after the formal presentation. Please note that this conference is being recorded. to Chairman conference and like host, to now Shiffman, Gary Chief would turn over the your I Executive Officer. you. Thank

begin. may You

Gary Shiffman

a Good XX.X% established. both results. The for led our you momentum quarter guidance and our share we outlook a morning, as demonstrated, us for points growth guidance. our potential for and to us the core of a and growth and and discuss which $X.XX by of the midpoint historically of growth, positive NOI acquisitions. are we reflects continuation end full-year XX.X% for combination joining of expansions third expected with stability third range share third the exceeded Strong these for organic us This the $X.XX core XXXX at have quarter the of beat, during again, is quarter to to of the growth at to a same XXXX in XX deliver basis high This platform community range raise per the FFO FFO and includes $X.XX per along the we a the allowed remainder XX.X%. once of have elements the year developments thank

by XX.X% For In RVs. our our grew quarter, for to the strong to results. same driven quarter sustained community community deliver the RV demand in continued RV increased over by capture NOI year, last XX.X% NOI as favorable exceptionally same the strategic transient positioning segment,

itself the demand to from customers. have outdoor resorts benefiting travelers, choice business at Resort seeking both RVing as at Sun Sun and positioned for vacation coming is we many RV existing this Our the and new capture scale. experiences is establishing people RV from

need another The the transient and are year of of in sales and were continues accelerate in for nearly Canadian welcome compared housing in applications to our Manufactured manufactured as bright the sales evidenced forward is up opening home our back Furthermore, portfolio prior by home our conversions. momentum first in The sales the continuing residents a quarter for for next XX% Canadian spot XX% volume Sun sales home show border quarter over volume the housing year quarter. well to to stability brokered that attainable the the to total of community. bookings from and momentum the of see the annual Snowbird third XXXX. up as as home November live to site in We quarter as expected we guests.

of pillars in core demand Our delivering that continue maintaining our option Marina superior Sun to strong continue community. live offering underwriting. of ahead track to high quality our are attainable housing and a results In create service, segment, we customer communities pleased an to

[indiscernible] increases storage for this the from members. demand our slips Our quarter for needs NOI continued wet primarily and dry

demand network, for wet slip part services. is best-in-class locations large Forward time were year and they our through in where this rental at ahead of dry marina last and storage

the third and capital In and of added adding also we earnings $XXX growing quarter this deploying sites. portfolio. our segments across call, and million over remained properties improving the in We through X,XXX have of three our over active date XX

and quality vacancies. of Midwest Portfolio high acquired nine existing expansion fill room Our X,XXX over with communities sites recently ample Four Leaf the opportunities housing in comprises to manufactured growth

the way assets. of all the network from largest now member del the Caribbean Puerto Caribbean. the traveling our acquisitions irreplaceable to down allows marina for in Puerto while Safe to strengthen the remain network the Puerto marina our of Rey the Northeast a Rey del side, Rico, Harbor On continues in to marina within

Sun segments. business have are we we remain about active integrate of and we platform, potential proprietary acquired acquisitions our teams maximizing value properties. repositioning seeing adding our our extremely are enthusiastic of includes technologies, operational Campspot them opportunities the booking through Sun's the track the platform. record a we marketing acquisition across Furthermore, This on including and from to value proven platforms, of and as scale Our each of

leading the we supported proactive activity ability our accretive believe cycle through value flexibility. As tested focus consolidator, the acquisitions attractive growth. financial to result This ongoing maintaining to will continue and industry is create in by

our growth portfolio. of are the third low our To continually $XXX further price portfolio million, that value Sun's a sales Xs, which objectives. longer end, six we long-term demonstrates no assets evaluating with assets for quarter, completed blended and Additionally, for of we total which a the disposition of representing of fit in strategic rate the cap

call a our operational ability to have to deliver on balance John deep members, opportunities team performance. pipeline over bench a We and talented performance objectives. turn external our incredibly discuss remain internal now healthy sheet, to growth we of of and a of John? optimistic the and well-positioned in I'll our each

John McLaren

Thank a you, strong our across Board previous quarter Gary. the outperforming third expectations. delivered Sun

portfolio, Our our the our stability three the as segments. business results best-in-class the contributions across combination from of as reflect all our well of of growth initiatives

to in quarter, the NOI a XX.X% supported and X.X% the NOI weighted gain by was basis point XXXX. average third same rental and manufactured XXX quarter third XX.X% occupancy The in For a rate combined RV XX.X% community revenue driven increase increased housing from a growth by increase.

XX.X% advantage XXXX X% up of X,XXX transient for actual effect late to of quarter’s second NOI When trailing and RV half took the XX.X% last quarter months. Annual of results up and RV of is X.X% our the to the the and were quarter same the XX began year. travelers increase we housing NOI to community for were growth Today was by XX.X%. we destinations. contribution, increased growth of This XX% increased the in over budget. from who accelerated conversions second on from top transient year. revenues issued it a XX.X% of year the manufactured the expenses quarter Our was has vacation shared result XXXX by a prior and transient rate compared of when leases annual ahead ahead over RV over for third community as the we drive-to Same experienced rental seeking desirable and resorts RV third in XXXX options the see were the original of the we revenue to budget. XX.X% original of July, accounting benefits X%

ahead our our earnings is compared website interaction of continue to following discussed and up million X.X this Facebook more fourth RV and last is and seen grow traffic increased TikTok. social As media original Year-to-date we quarter year of with followers last of major on the revenue to consumer RV XX.X% XXX% three to levels continued. XX% transient The budget. have quarter compared Instagram, XXXX and call, platforms, engagement have than the

through to Our their has amplified best salespeople have the been guests and been meaningfully reach spread social engagement. always word and our media our residents

continued early We strong to have In And initial very trends. sign of program. our days, in interest important short, while Resorts two seeing still members and evidence have also to feedback RV we its believe up it's pilots and are loyalty been we positive.

discovered are RV their vacation, becomes their First, learning an future up have second, out considerations. trying travelers part it once and that vacation, an and vacation of RV sunnier travelers side through many

revenue our and Of leases Sun gained additional in our revenue Additionally, enhances turn portfolio, to Sun MH RV balance quarter, vacancy RV of expansion third being producing and platform, reservation respect with manufactured transient site XXX filling we at expansion converted the were to annual opportunities With with the we simplified revenue producing producing added the XXX RV vacation through our conversions. pursue housing sites. demand to to Resorts. over the creating gains total In continue has process Campspot which communities. sites our RV for existing strategy our and

now figure conversion [indiscernible] execution which any transient annual year We The RV site of the sites almost this of an site converted average revenues rates. of in lever. increase growth leases with successful to RV transient an additional and site have internal first resulted full-year demonstrates in during X,XXX prior conversions exceeds XX% benefit year-to-date, the

expansions quarter, delivered third XXX new developments In to which remainder ground-up new were over Greenfield existing on sites, we were and to the XX% approximately Moving construction. of the communities.

of was a in housing phase delivered manufactured community quarter the Creek One next this ground-up Crossing, of developments Colorado. Granby, the Smith

the opening strength see in the to live value phase the value Applications been quarter. homes clear has the These area. offers up homes sales sites manufactured The maintained and XX MH than in home Total continue up communities. are and in also housing to filling our quality attainable Sun demand we was of year-to-date, to proposition ago, community anticipate in and since that attainable year we healthy sales manufactured these as will for market in to X,XXX the for for of demand more community demand we a rapidly the high housing home business, the a housing third continue given housing are is tight first Sun that year-over-year strong. next quarter phase were the our housing. this and we in results reflection XX.X% the see XX% anticipate up sold a volume

XXXX portfolio X.X% Better-than-expected since X.X% XX,XXX portfolio and dry the for to rental and spaces, spaces. XXX in start the of Same September of to the marina ended properties over CAGR approximately million XX.X% the This XXXX. revenue XXXX. storage rental by properties the six dry wet continues the in Turning which was come operated for the completed the storage the quarter XXXX year-to-date for properties for Marina revenue owned Marina through XX slips the slips quarter. from Harbor a of Safe includes third months demand for of comprising end nine of wet We acquisition $XXX quarter for nearly increase business. and performance is and with growth of

demand service have margins Center witnessed retention. higher growth In being Sun's the Riva, contributors on slip which engines summary, leading this Lauderdale Great higher deliver stronger creates to business member We service with the and continued strong to results. and rental also Marine outperformance.

of driven expansion levers deliveries. Sun's site by and fundamentals internal are Our platform by operating the

basis each additional more anticipate occupancy momentum at also expansion of demand and conversions potential growth MH over portfolio In by leases sites well total we us than occupancy, of continued providing adding time. robust points and continues, as Our annual upside as RV stands transient approximately year. transient further business, XX% with the XXX

record and of successful build on delivering We track filling to sites. expansion our expect

inventory we XX% XX% of an unlevered have which year each X,XXX intend sites, IRRs. portion deliver expansion to We strategically targeting to of

with addition, each In all robust pipeline opportunities as well across developments. external businesses to consolidate ground-up selective is continue pursuing to growth as three our industry

with our delivering and on year-to-date, in we our pleased discuss performance Karen results objectives. our are to financial will Karen? more We expect now continue detail.

Karen Dearing

Thanks, John.

guidance range. the per Sun FFO of marinas. ahead our XX.X% quarter, $X.XX, transient $X.XX was core of share quarter across Outperformance reported of and third the top-end and For year above RV achieved third the and annual prior

and pursue the Subsequent properties, sheet the subsequent to the acquired pipeline. activity, we with the year investment capital our to nearly quarter totaling ratings, bond notes and quarter, second properties, seven issued senior $X.X of us expectations, flexibility of billion, Last we source our and support XX-year an operating million to and grow in provide offering growth balance active markets operations additional To end provides and bringing of of received quarter, our financing. and which been third During our attractive XX XX,XXX we $XXX to our ongoing across sites. million unsecured grade maturities. total the we end, approximately in which have $XXX enhancing adding capacity year-to-date of

utilized we rate stock. of X.X We program maturity forward a of X.X% weighted and billion ended with and a at of outstanding common of years. shares average XX.X the $X.X second ATM average weighted of quarter Additionally, the million debt sale completed our

XX, had EBITDA September XX-month unrestricted on of debt to hand a and of million As X.Xx. we $XX trailing cash ratio net of recurring

$X.XX share, acquisitions We XXXX midpoint prior increased includes per outperformance from and core across guidance $X.XX of the at businesses. expectations the a our contributions range. remainder of in FFO due a are recent increase raising range to our with increase The our from the to third our each full-year $X.XX to quarter

fourth the range for to We of $X.XX in to the expect FFO share. $X.XX per be quarter core

guidance same increasing a X%. community XX.X%, growth of NOI also up quarter XX is full-year community fourth to are points of X.X% The of growth basis from XX.X%. guidance same XX.X% We NOI to range midpoint the to guidance previous

included our through reminder, acquisitions include capital in but of prospective the of maybe or activities, This call, not does guidance analyst markets As estimates. impact prepared acquisitions our completes the this which remarks. date a research includes

now for Operator? will the We open call questions.

Operator

Thank you.

proceed Nick be Citi. Please your with question We conducting [Operator will a now question. Our session. question-and-answer Instructions] is first Joseph with from

Nicholas Joseph

some more guidance a provide in expectations was updated what's versus you around underwriting, Thank XXXX, initial hoping Harbor? your commentary versus for the you. so I for could Safe contemplated marina performance full-year

Karen Dearing

our service marina been initial been portfolio outperforming slip Annual and storage has transient the and NOIs outperforming, have Overall, have underwriting. been rents boat outperforming.

a I the marina offset amount payroll end costs the of marina expenses portfolio. of the and little guidance does our think and But and the utility some year marina – incentive done impact outperformance in in there's that certainly the the portfolio. some we've acquisitions include for into that of the

Nicholas Joseph

the Thanks. Can outperformance? you quantify

Gary Shiffman

I think I we have broken think out. Hey, John…

Nicholas Joseph

might guys the move closer microphone. You to hard you. very to It's hear

Gary Shiffman

sure. Yes,

having on end Sun's are bit We a difficulties today. audio little of

for now? we beginning the got I as So Can hear those of me okay at apologize you meeting. started the

Nicholas Joseph

Yes, a little bit better.

on be Harbor. must Safe at You a boat

Gary Shiffman

do. Southfield, here tell was always doing up could floating on I we you in I are waves. down and what wish the we But Michigan, I

it I think have don't up out. we broken

and and little strong the and similar especially X.X%. boat with to point that we're dry in discuss bit more they've at X.X% what XXXX is thing from the follow But understand year-over-year level of that compared You as slips quarter the results been. highest sales can demand slips wet Karen. RV getting those could boat a I we growth large Karen best to with increasing, to year-to-date up as that for And sales indicated, the third CAGR

Just and times XX-month, of and end month, more since one-year period demand Safe at Harbor. the we on with the we'll closed this the transaction mark more of

acquisitions our very once that on as have outperforming there we've been outperforming Harbor also As pleased is underwriting, Safe the the well. indicated, platform we're put or underwriting operating but it initial

extracting XX So we at have have a Harbor, put side exactly years. and in we're plus underwritten. what best-in-class on they do marina experience initially in than as last Once are and returns Safe professional very for MH the RV we experiencing the been greater platform

So same kind of outperformance.

Nicholas Joseph

there? and your additional what's additional marina of appetite then international for you rationale And any through Thanks. acquisitions strategic expansion, talk can the

Gary Shiffman

on Nick, Yes. I shared think it calls before. our we've

a able looking few a about has will The networking We to the relates benefit in be of we're Safe to of team acquisitions. strategic footprint what been lot management that talked part design. the it Harbor and in at the marina international points seeing my with remarks. outperformance and I

down and network. You in start Harbor little Maine Caribbean all the Maine to in north even the can today, Safe travel a staying marina of being the way a

of able network and other to particular our ocean we for one Safe half like year, we'd the half and what stay of will, Trans-Atlantic, had who for a to side look if that other Now the and the couple year the in side Harbor to you do for points of the be will keep is of of where Atlantic network. in the larger vessels the

Trans-Atlantic. yet, diligently that couple So working nothing we on are a to share points to of at but find

Nicholas Joseph

Thank you.

Operator

your question. Our next question Please with comes proceed from with Berenberg. Keegan Carl

Keegan Carl

Hey, for guys. Thanks questions. the taking

how on growth. you was function a of First, by labor side current volume And pricing? of community just then versus on NOI the much same do improved color things, labor guess NOI of I a little think more your the RV bit the actually was shortage? it

John McLaren

John. is This Yes.

a we in increase over XX on side X% about little the and XX% quarter, So the rate saw – about increase a in occupancy. bit

kind missed of that's What question? I'm was the splits that. I So that. for sorry, second the

Keegan Carl

NOI for there's have growth guys probably anticipated? current On working a shortage think people a and labor you was just Yes. actually you tailwind so do than it labor, given less

John McLaren

the with mean, bit we help much that beginning the we we shortage, a at our have of significant. seasonal like of but I nothing else, just No. had at communities, particularly everybody the season little

Keegan Carl

Okay.

Gary Shiffman

first to new guidance and to raise be was how year, personnel one incorporated our you last had attract of that started took from the to XXXX. level. that, on existing got at into also the the that incorporated savings that and wages. wages is have our personnel, our higher your with any through was to actually by call of regard And expect we might eroded quarter to when to in we discussed shortage the think end really we people you've second them increase things I of up And and we new up those

Keegan Carl

goes marinas. what adding What it? on transform? a determining larger smaller are color into anticipate how uplift to take it little does And how on it. do best the locations specific additional certain removing associated the and completed, for typical Got Can are costs assets? it then as reconfiguration this slips, with give What us long it's ones? of much And revenue you on you

Gary Shiffman

of is specifically that that Is platforms? our marinas to all or to

Keegan Carl

Yes.

to Specifically marinas.

Gary Shiffman

of time the can again. numbers RV big in reconfigure is will just invested the Gary. XX%, of share returns long-term only I plan look and COVID that not specific double-digit permitting But for entitlement boats on low I months. to and MH length have to type but ground the well combine marinas, to XX% docks case there, XX%, it It's certainly world be Average for That those for sizes. the of capital the sites, the part with it the slows environment. you. a more is as larger RV well, And can if just perhaps don't the slip community down, them and it's oftentimes efficient repositioning. is make we it's get reconfiguring mostly zoning approximately all and can to that not the XX in MH be and if longer the beginning is just build things That's the up over great

Keegan Carl

time. your for Thanks Great.

Operator

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

Joshua Dennerlein

a quarter the asset dropped, sales driven or morning, throughout of Yes. bit. quarter? homes it well. did that seem I doing conversions everyone. higher Hope you saw the everyone's the that drop just over Was to Good fair rental number by the

Karen Dearing

Josh. Hi,

of You the reasons. picked both

of the properties. dispositions impact those of the seeing you're six So

Within XXX XXX was those are them, on and rental things about impacting year-over-year there and owner-occupied, both so we more converted rental a homes, of about program. to homes rental basis, the

Joshua Dennerlein

curious that Regatta a that Awesome. for I'd love an then of the Okay. update year, business in initiatives And expand just on this Is you I launched then to other marina that markets? to to of went. XXXX. on hear in front, side the And possibility kind Newport. there how new any on know August also

Gary Shiffman

beginning beginning the missed initiatives to was was with Just the what question? regard of new it marina the of –

Joshua Dennerlein

Yes.

are there front if on curious the Just new XXXX? marina on for any initiatives

Gary Shiffman

Yes.

them say at the the reference the the new, Harbor I quality that just of so to mean, Safe the I look any of Safe up best all networks, and best. unique continuation focus of of network. management I the we think, would you keep is I very members as opportunity marinas, wouldn't roll of a when membership and within can quality existing the really of the Harbor

So about really footprint. it's geographic the

get earlier, ability the As to the lakes I west. into oftentimes east Seaway Lawrence from we lakes, north mentioned for St. like to When one things of that. the inland the inland to travel south, oceans of the to one

very planning even a Sun up able management for So state that has sell tax lot of is security owners longstanding Safe Harbor might the have relationships usage team not mom-and-pop opening very, like to. they been and regard – The to is though the network planning with remains important. again for doors to with

as selective going only acquire think have we best out – the lot I refer of as that the we you'll enormously see same, best the of be we'll and continue platform the to the So ability really but to forward. the build to a what

already, the Harbor growth same the acquiring remain opportunity to I marina harness economies here. we putting on the applying management platform, Again, accelerated and technology. able the ability the the skills, enormously be scale, excited touched to of about it Safe by a on it's So

as and also what billion XX% RV So platform, when XX% $X a to a was today since acquired it opportunity exactly realize platform well. place. of very, I'd than exciting the just acquisition percentage was is ago, even the very to we've Harbor acquired really we interesting where within rental less indicates that add MH year and revenue continued almost after Safe

see. So we're pleased really year out. one what We're of we

Joshua Dennerlein

Gary. Thanks, Awesome.

Operator

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

Wesley Golladay

a marina and Hey. do point, the your had everyone. Good you targeted on how I morning, of Safe just follow-up Harbor network much At marina this have the today? acquisitions.

Gary Shiffman

Wes. It's great question,

to the XX%, portfolio. also Safe approach that rental would to take with entire when XX% of We up the of perhaps a acquired Harbor percentage the said revenues shared platform. had market we We we look

As we're still I with billion of acquisitions. $X indicated, currently XX% XX%, at

shared So at network the XXX the their the we effect, points RV, the really than and benefit family is the being and founders, Safe The in one to cases XXX from have We've our some great relationships rates refer greater Brewer basis patriarchs often more. of networking Harbor, MH opportunity. bright effect. to the builders the cap we

a do really with acquisitions. potential really regard bright have future we ahead us So to of

so So expect selectively moving above discipline. to what's of XX% we We're go probably of lot be really a really reviewed, forward. acquiring being headroom to

Wesley Golladay

Is Okay. at And Harbor, lightest. be that where of the footprint a Coast when to like we harder then the buildup? bit your West look going it Safe to little guess looks is I

Gary Shiffman

I to a bit expensive Coast. would on the seems everything suggest West little more be

for the will greatest our So carefully creation there's But the is are growth stakeholders. that. and value about focused where on lead slip demand greatest no to sales that out doubt we

but of So east country lot Coast, side. selectively, more demand West the side west we than working the on on would a I now are right suggest the the very

Wesley Golladay

many if for sites party you then platform in third how can gears third And affiliated the us now it. Campspot. were Got update quarter? with switch what And the Can on then bookings to I are application? the real quick

John McLaren

RV the you, Yes. reservation on got we've we've the thousand universe. folks can side, over that got system – are tell a that using I throughout

Gary Shiffman

more excited us fact new Campspot. we front is and there. a other has of in this been with really than in about think excited place place taken at that information the we're have time what's don't extraordinarily put we're updated the I any about CEO And opportunity

Wesley Golladay

Okay. Thanks everyone.

Gary Shiffman

RV world like it out the there nothing now. right There's in

kind. first its of So it's the

Wesley Golladay

Thanks. right. All

Operator

Street. is proceed question Green with question. next your John from with Our Please Pawlowski

John Pawlowski

items Karen, expect us drove provide line or we just a sense major a long double-digit Thank that and continue? in growth of the growth could the you. XX% should expense give expense breakdown quarter, the how John to you for

Karen Dearing

John. Sure, RV. between break housing it manufactured down I'll and

expenses MH period wage repair expense. we to notably think due discussed the to were we’re quarter, higher. increases believe operations the XXXX I payroll, be last obviously So comparable was in low. so that would the and I higher proactive last that quarter, in full supply don't growth up

Finally, and assessment we had expected assessments. notices Florida Texas – in increases, TRIM they tax estate came higher than had real we significant had some also. some

a Although assessments. the third those higher quarter assessments, of months nine impact really those cumulative reflects we're appealing number of the

utilities So we was that's really also things and higher discussed. MH. up impacted by wage on to the activity, RV that variable like activity, vacation expense were it transient due just higher the supply based and the expenses repair, rental really transient increase that's

X% think, same X.X% X.X% I to what I at X.X% with looking revenues to and think that implying to you're are X% we in think you growth, in as looking range. about – at community OpEx for NOI you're X.X% fourth the quarter, growth, maybe

John Pawlowski

And increasing you bracket just reasonable labor year? proactive and help market understand repair on scenarios and expense pressure in the worst case inning help and maintenance in what the repair next right we're just of over on and and kind the and expense growth? of Just and for terms growth labor on now side your Okay. going maintenance. Can best the what's stance then us wages in in us

Karen Dearing

any tough we one – don't have have Yes. guidance really next year. kind – out to we don't put is That for of

tough wage pretty that for on wage you to I it's see that wage we with think place something would was So increase, you specifics the that. in standard did give that increase increases. put proactive that

if potential inflation renewing got, our and you we're now. we've insurance since property in I right think – the let's expenses about think wages, that did of process overall impacts already we just say,

So estate pricing, and very about dependent talked idea we near-term. already taxes We on how and a they are hope successful we'll better appeals. assessments have on real

that our no any XX% And than repairs OpEx. expenses potential different have business. that to supply So XX% pressure any repair and company, that are the other inflationary about supply leads of operating and

So as year. that's I for I something you can on much color next as think provide

John Pawlowski

those Okay. Understand. now another expect we payroll But large are of year? the costs payroll, done batch largely increases to next increases or the should

Karen Dearing

put fourth them be in, and quarter, to expected whole because third the about $XX we Well, impact we in million. the

$X so million anticipated And we year. would that hit next would have

Gary Shiffman

For the total year.

John Pawlowski

John, you approaching could MH just renewal how for you'll one Last next color be provide on rental increases some months? sending the settings you're rate me. these Okay. for that few out

John McLaren

Sure.

as you a very as John, before. occupancy increases long-term year. important well approach increase rate as our that we But Certainly take we average think our the is really of to It's know, which XX that saves live big of do. remember on shared have the And levers our a it's the one a given in part predictability it's of have. everything really this act, the might any into balancing growth with as sort I cost we of turnover, And is is piece. As our an is not reinvestment big in just much I growth continued of communities, of why rent reason probably residents a you years. virtually know, the communities

As their years, homes in growth resident improve over and to that maintain time and pricing we've at the and same seen equity it’s actually there. the it important margins home helps to see our

consistent. of the performance hopefully our that years the COVID. we've it’s consistency and very of We kind shared really of all with on social rent in has had But been about are before, stages the of the increase, things across side as stakeholders last especially, XX later over the responsibility keenly NOI focused we've our

said And year out we're that we increase had. finished we year. I about think X.X% a weighted so at at last for that average my And in think remarks this X.X% I I

guide in So a really But anything But I to see trajectory not I'm we're can XXXX you position time. that expand think it's this to moving. once of sort bit. really at seeing a where again, the in of

John Pawlowski

Okay. That much. very Thank you helps.

Operator

Our Powell Anthony with proceed with your question. from Barclays. Please next question is

Anthony Powell

morning. good Hi,

that's and interested between converting you the good in to You and pricing do transient helping mentioned How balance more spaces. the and versus in any progress mix getting transient making new you optimal side customers annual that RVing sites the transient pricing on what's you're annual RV community? sites RV RV on given in

John McLaren

Yes. Good question.

just months we through internally RV NOI again, over growth saw the revenue you're RV going in last transient travels at RV look to ever. portfolio of way is overall the and think we've overall. lot year. opened XX% drivers that one transient X,XXX resort customers performance quarter, stronger to – this the in of supporting over to in outdoors is to continue even the There's the we've your XXX,XXX And has had RV air Sun question XX.X% the first answer the been indicators over off, first the over to. course referring three I new drawn We RV seen I in of mean, vacations growth that unpack quarters that all continue conversions is that what back with be those and is as of on XXXX. numbers the to than a XX kind that, annual that up the RV stayed

then that to media that year. there. increase last up XX are across a Our another out high followers the platforms million we're to and lot younger of And major XX XX% And XX in the social doing from are from three ages XX buckets. web-based is guests X.X traffic historical on with everything

to really that at conversion getting sort mix, a and we it's we do. having per that's overarching a that would lower on portfolio. converted if not the sites how an going be be to a on a being within annually just is revenue revenue have, to going $XX,XXX the XX, But the basis it's but it function determined site if much that resort. of balance something on really based And say single a of it's even sites those in are And versus perspective, looking it's that community resort. the resort annual of let's resort, are across per it's so converting of of and derived would first, site the we're sort we optimal Certainly, really by a getting, revenue, within from function then

Anthony Powell

And them? to there once you it. that? you a way Got those you do convert Is replenish do transient how for loss sites

John McLaren

one Can more you say that time?

Anthony Powell

how new to you I those into community. guess into sites site a Well, converted, that replenish want to attract the continue transit you customers do if –

aim community? site do guess, one a So transient elsewhere to, add you into transit site if in that then annual, you new I convert

John McLaren

Yes. If our it's all possible, to I mean, over prevalent. and we existing our look communities add portfolio expansions

Gary Shiffman

we I at portfolio-wide basis. it a community-by-community think on more look basis, but on a don't

do the a So his look transient is convert transient that happened. team acquisition year where site. and when shared we opportunities XX% can to the – We revenue first annual, approximately for in pipeline in we've pickup as convert John two on things

time. transient of So acquisitions of when sites to acquisitions period the be quarters RV we've Right level want will first that we guided from to want – on focus team and highest when it seen. members we the conversions X,XXX three now, shut off is for the

to would we RV mentioned, so then transient adjacent oftentimes focus the conversion is last So seek acquire that able expansion, that to probably at amount acquire have it. this then we as And that have replenish we to quarter us ground communities see being conversions. opportunity on And John expansion we'd property reduce finding did or the time, opportunity. the as what can the naturally more by of

Anthony Powell

numbers in just migration? home further? very bump of there new a of one can Got The be strong. kind all is Any sales kind been And you of home me. there Is would COVID more due or color any increased demand it. one-time have sales Maybe you great. given dislocation run this for for home the rate sales to grow

John McLaren

more a it's it can and too. front little in rate with we growth think bit I a of expect maybe run

housing in each the that's frankly, we It's I do for quality and that's margin aim mean lot the year. for just it's to affordable really pickup we incremental and of some what to And what got demand once price it then again, and is price and terms of the offer. out with all speaks really that's on a the So quant’s side, the of there high it, communities margin.

it bit. little to expect a grow I'd So

Gary Shiffman

Yes. add, one I'd vacancy. restrictors The of the where only thing Anthony, – we is

able And up example shared secondly, we is expansion being in this fill sell So Four of within accretive quarter that. us. that can buy very we Leaf acquisition closed years, which that to XX for an great over strategy, so we and plus Portfolio is build last then really sites community our the we've them homes. vacancy existing a on

in the have the properties. accelerate We opportunity enhance to occupancy as take those and capitalized a and the and and manager experienced vacancies well of early the opportunity sales growth those

to are of something So focus on. those like really we'd kinds opportunities

John McLaren

and also that transactions, broker up higher I'd sales picking vehicle then as have just that resident to in seeing growth occupancy, nice our well. – residents properties and a we're And add, resale

Anthony Powell

Thank you. Great.

Operator

from Our Michael UBS. question is question. your proceed next with Goldsmith with Please

Michael Goldsmith

you properties? my tilted little reflection seem more question. relative that effort or of Good be can the Is a properties development a developed. returns that a towards land to can get quarter morning. development for maybe from Acquisitions lot opportunities or a bit Thanks with this to taking be matured conscious

John McLaren

at. can – operating Absolutely. accretive like we Yes. ones was are just talking upside we something as we're it. like That occupancy vacancy mean yield of it’s I and exactly on very to for pick the good Gary years about up that we've many well that that all of Acquiring where our expand those wheelhouse gains. as the assets is in demonstrated combination through

Michael Goldsmith

becomes Do that going bigger a part of growth you algorithm the think forward?

John McLaren

Yes.

Michael Goldsmith

– you in and communities COVID prior your year, then between amenities year it kind new mentioned look to That's last question, pick that communities, for and with kind And age all are said you separately, of does had communities. the rate are communities have age off bit How or up that upcoming these post helpful. And accelerated building from a of for as could they little growth conversations a world? different asking restricted more. breakout a you

John McLaren

Yes.

do I think, restricted community you're I to a in higher to on average, community. you're going going age all than increase see in typically mean, you age – see

so that's the again, from And improvement a as process, trade okay, capital that part beautiful we standpoint. far the of And continual just is anyway. we to not as us that do, levers we with for we it's the keep thing a of grow have addition something different have. that them amenities As as as the can a much it's communities long-term what – all that just continue perspective really

Michael Goldsmith

much. it. very Got Thank you

Operator

further this remarks. questions would at the back There time. turn are floor like Shiffman no for to I over closing to Gary

Gary Shiffman

to for results. team be for portfolio any This quarter today. look is that and Well, reporting everybody We're expectations. to a going continue new And you, year-end excited to ever thank as apologize fourth is system management the the to meet as everybody. audio I'll We look this certainly able participating. to we we to installed. into difficulties grow stakeholders’ Thank forward

Operator

This concludes teleconference. today's

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

Sun Communities (SUI) 26 Oct 212021 Q3 Earnings call transcript