SUI - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen and thank you for standing by. Welcome to the Sun Communities First Quarter 2022 Earnings Conference Call. At this time, management would like me to inform you that certain statements made during this 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 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 Financial John and McLaren, management and Chief President, to Shiffman, Having Finance Karen Capital and Fernando President would Dearing, Castro-Caratini, Officer; today, Vice Chief Chairman Officer; us and Gary introduce Executive Chief Operating I that, Officer; Markets. with like Senior will we an to have After their remarks, ask opportunity questions. Shiffman, Chairman the turn will Gary Officer. over I Chief program and to now Executive Mr. Shiffman, you begin. may

Gary Shiffman

morning discuss and an results initiatives thank as Good you for provide our and us joining and update we outlook. XXXX on our first quarter growth

each delivered accretive and strong another as for and of anticipated, building on pillars, on developments. year another including organic our positioning we acquisitions growth growth, us XXXX’s momentum solid As execute quarter we

uplift XX% occupancy the of be quarter, to increased the RV for vacationing was housing is property same basis in the a approximately over time core the within increase year. $X.XX, Community is RV a leases, organic demand growth. which conversions annual XXX to a to Revenue-producing share of by revenue increased in and first first us points FFO last year. quarter those majority XX% affordable Applications attainable ongoing X.X% XXXX. For compelling to driving sites transient The evident and Sun live our X% The ongoing last same were platform increased over compared of provides which per continues year.

acquisition Park transactions, or completed acquisitions, we and Holidays. approximately billion terms including year-to-date of of in billion of through have quarter million first £XXX $X.X the call, In $X.X the this

on cost Park same with our which many these highly revenues record. expertise a have for The drivers, capital properties of addressable acquisition business key growth, of demand seaside acquisition market. Holidays highly of experienced with Sun’s Holidays and is relative image additional of within advantage takes an are driving pleased total mirror dedicated completed the of very a desirable Park UK track the our supply locations and We a and fragmented housing management portfolio, to team. market Sun and provides platform and the XX proven manufactured expands the our in

housing the manufactured total capture communities continuing ended portfolio demand tailwinds, a year. and XX.X% compelling we team played this increase Our basis opportunities. occupancy, over business point to platform with quarter, to over our developments pursue With are first expansion and we has Greenfield opportunity experienced XX Sun years developed that our ago. XX is since role important uniquely development positioned given an last

the as vacation, RV RV new robust joy the which and guests past of over X business, many continues years. affordability has demand an accelerated the only discover Within

outdoor XX.X% increased in leading campers already report revenue same-property for growth monthly Furthermore, vacation XXXX. quarter outdoor booked RV XX% an of March, in research First XXXX, industry have to the compared ongoing indicating indicated demand. trips that

with have first perform Marina our Our overall expectations. quarter well performance continued properties also to exceeding

year. X.X% marinas this quarter last same-property compared produced a increase to Our revenue

strengthened used first Safe in new new as States. It United network the marinas opportunities the of largest Harbor quarter, to we subsequent gives X our owners portfolio. marinas With join owners and members. operator Safe Turning locations added boat also to the to additional and as effect Harbor’s boat

to positioned announce both Lease, to integrating corporate CFO Park for and to solid recent these attainable positioned initiatives. Officer, staying UK Castro I key effective closing have expanding is the economic transition continue transactions, tailwinds of leading Sun the housing, Additionally, support as Holidays, the Land an such excited acquiring business, many Fernando American Executive results. any and on corporate I Chief strong presence integration is fragmented deep cycle and on look you record large role and and needs. pleased deliver tested will and slips to customer has acquisitions, UK establish the may press growth in we have today to marinas questions. May Air be cycles am the as Vice outdoor your and communities, Of including the Fernando to storage advising Sun will Financial to among efforts experience of President executive and Karen are other vacationing a with and promotion sustained to take forward as of with through the release, Freight us on the play uniquely demand Safe Karen officer meet this Karen favorably With X. am seen call in Furthermore, continuing macro market. across a we to of seeing operating, Harbor. has

I to organization and have detail. highly excited We Sun’s platform. across are a we and our in talented team will results the over our turn and Fernando John to now further opportunity experienced discuss to call best-in-class continue entire to build the and about

John McLaren

Thank you, Gary.

and a increase Our same-property increase for property operational basis operating results. offset RV XXX team MH quarter of the point growth increase in X.X% in revenues, over by high driven the a first a expenses. This an of delivered quarter NOI guidance. by Sun end excellent XX.X% was was X.X%,

X.X% quarter, annual of the quarter transient which driven X.X% weighted revenues, first increase quarter. RV average was revenues given and first was and increased rental Our snowbirds and The growth a from gains marina were during higher rental by the Marinas Canadian in by first rate increased our the strong X.X% RV benefited occupancy points. rate, were Same-property and NOI unseasonably conversions quarter certain transient full expenses and performance basis growth RV occupancy quarter. during revenues. the was for by as occupancy annual the driven up XXX revenues same-property for return

season That and into to strong current The expectations experienced a members. higher also seasonality visibility growth reaffirm perspective year to said, for NOI growth. from stronger therefore, leasing us disproportionate marina had lowest is summer Performance NOI activity demand full the for the to to we at contributor boating a helps start first by to the and quarter as NOI our service XX%, X% demand, guidance expenses platform X.X%. the impact overall the forward exceeded

Our of approximately and acquisitions with marinas the spaces. also and quarter the end with approximately Southern a out years. coming the of first X to $XXX sites additional over Bay, England’s manufactured to XXX community build during XXX XXX includes consisting we XX expansion Sandy slips subsequent sites million, housing with wet expect for occupied and that the This retirement approximately XX,XXX included of billion sites $X.X [indiscernible] popular dry storage UK properties, over nearly an

portfolio. disposed a Florida the total we assets $XX.X we to first Additionally, million the three in of quarter continue of optimize our for as

total of As throughout the the XXX platform United Canada our properties and States, United Kingdom. today, includes

As to Gary compared the of mentioned, increased applications X% quarter to live a Sun first XXXX. in community

XXX Sun quarter, and in the line with over sold For new homes year. last pre-owned

Our last selling home new and to year. price $XXX,XXX maintained increased compared XX% almost to almost we margins by

brokered home Sun value the proposition which in selling our a to XX.X% to community. increased by price for come Additionally, in quarter, residents live demonstrates the

of with And manufactured investment an as XX,XXX for RV March fuel total XXX our Our as sites revenue-producing inventory and nearly titled majority of pipeline RV on transient growth we we zone to conversions. quarter, being plans. Funds gained development occupancy XX many the during execute was and provides XX.X%. the Sun years housing lease with annual portfolio sites

attainable across In the communities country. a within housing development We plan X Colorado of significant land late housing to with increasing under to to with addition, today in phases start new X to of Greenfield for manufactured first development will this actively for that year we in XXXX, process in the anticipated pipeline us demand the have construction Florida. meet communities and open be future enable position entitlement a

for Forward Sun-owned and the for same ahead bookings time to resorts approximately last operated RV second are quarter. compared the our pacing X% year

the you for XXXX year. demand. delivered strong of second XX% of were open half the ahead second will results recall, all resorts very high in as are pacing As a the They quarter

the NOI vacationing, of There conversation the Our rising growth prices. a border open inflation continued RV which almost first quarter for Canadian potential from Residency outdoor lot of for and of benefited the demand being Snowbird around gas to S. same-property compared our impact the XXXX XX% shows is of

for of an indicator discuss also quarter the Sun see strong are to the results solid due effort continued financial detail. members. our Fernando? Operationally, will vacations positive had desirability. pleased now of remainder Fernando year, a bookings continued the diligent in to forward of We RV team believe is we very all more the a which

Fernando Castro-Caratini

like to and to to and look and years to am to John. many I Karen CFO. the guidance her forward a drive for for tremendous you, assuming say forward the her would continuing collaborating is I years growth. come. role first be look our support to I’d Thank through help of company and I like Sun to mentorship thank honored with

For core XXXX $X.XX the of first of first our quarter over representing quarter FFO $X.XX quarter, Sun per top range. share of guidance reported X.X% and the growth end first the and ahead of

entirely We loan markets million, on was on have had approximately a revolving on credit an front, on Park billion transaction and Holidays £XXX closing of funded capital multicurrency term at new April year-to-date active which price the purchase the facility. our $X.X X

In U.S. were proceeds revolver. unsecured forward million X.X dollar X.X%. company for proceeds. pay the Sun interest U.S. $XXX XX-year million, on proceeds Net $XXX to million we credit used million pay were balance issued notes. lowering dollar effective facility. of approximately on shares of million the down early our $XX to remaining April, rate equity on four from $XXX a the senior Sun payment These to Additionally, settled with contracts notes on down X.X% net our notes locks conjunction to borrowings offering, settled used treasury the totaling rate of for In the unsecured

outstanding X.X million the or of the shares We XXX,XXX after million end have of equity first selling quarter. contracts approximately shares forward at $XXX

had average billion had Sun and of trailing rate a recurring X.X a outstanding cash of unrestricted weighted weighted XX, on March million hand of of ratio and maturity We of at average net X.Xx. a EBITDA X% years. debt $X.X XX-month to $XX debt As

forma loaded basis is on leverage activity acquisition to-date markets mid-Xx. pro the for and in fully all a Our capital

to $X.XX, year, first Given year increase full growth and share X.X% of same-property remainder housing manufactured we per our X.X%. year at RV full year to represents to are of FFO $X.XX Full marina a to same-property midpoint. X% outperformance and increasing we for NOI is affirm increasing our for and range range guidance the growth X.X% a the at outlook the to X.X% the which NOI quarter

see additional For supplemental second quarter expectations, disclosure. and our please details

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

Operator? will the open questions. We now up for call

Operator

from comes Carl with your line question first Our question. Instructions] the of [Operator proceed you. with Thank Berenberg. Please Keegan

Keegan Carl

driving Thanks bit us on for color first, growth NOI the you provisions. RV a same-property Maybe and taking more guys. behind little what’s Hi, it? question. just your give MH Can

Gary Shiffman

Keegan. first combined from RV and side annual the closure the Hi, outperformance outperformance home The to of in performance bit where as those against – quarter California as MH we stronger Canadian of quarter the was well little as exceeded well of for growth. expectations as X.X% performance state where RV same border sites really the by of led MH – property as Both to portfolio the transient driven leases we orders. on our side on were with by quarter and transient based our conversions both the from the on affected the we XXXX, comp of annual on of revenue, first a NOI the had the

Keegan Carl

it. Got

guidance? quick. it issued how the mean is on previously real trending versus I Just transient your

John McLaren

go It’s ahead, trading – Fernando.

Fernando Castro-Caratini

for remainder original the ahead budget the – our our expectations. the expectations trending for and It’s of original year of are

to year, transient For in the be first RV. is XX% somewhere XX% between inclusive this the forecasting would of quarter, growth we

Keegan Carl

it. And bit a here. gears shifting little then Got

As acquisition. MH Holiday classified Parks, as for as far thought disclosure them you guys your I

in the Just curious then we out mean, to this finally, kind going these And maybe a should what of as MH, breaking I be RV separate the forward? bucket entity? you’re expect not for rationale reported is

Gary Shiffman

more and they As goes, view our will as permanent the here be the in than them, U.S. on I homes to down site, types bucket to they are far we’ve think axles do actually tied forward. in truck craned wheels not are that And shared, U.S. lower here they down housing the onto as RV going they and have we a manufacturing is have site and the reporting our in the the MH ground, the that that of a

we as they then land quintessential XX what lease And kind makes as it that the average consider not to be. them the type there can are around XX as opposed call of they they leases the So permanent licenses would fact years, to as community.

seen about to and in They do as order a must there. are they homes, be in primarily, second are we much housing we resonance licensed have compare can vacationing as we’ve So manufactured a they out as therefore, however, to and a as second – holiday business. park, acquire primary

Keegan Carl

clear. Very it. Got

Karen Dearing

going the as the Holiday for and future To But reporting through be the same community. and housing. manufactured reporting them included going Parks be like the see the create through, clear, of just Marinas, do and the will team they’ll our really be did and all way and considerations planning to regarding most going the particularly segments supplemental view in for transparent to truly all them of they we being into

Keegan Carl

guys. Thanks, clear. Very it. Got

Operator

BMO the your Markets. next question from comes Kim of proceed Please John with Our with Capital line question.

John Kim

to Marina you high if came a performance and wondering light I The due in guidance to. break Marina NOI XXXX. as Congratulations on revenue expenses little for morning. expense Fernando. and the was bit down Karen you alluded Good same-store could to

Fernando Castro-Caratini

John. is This Sure, Fernando.

This NOI the X% to on we of about guidance X% midpoint the to to X.X%. – – revenue growth at X%. affirmed translate side, about growth would are we of So expense and at

John Kim

was first high expenses? quarter So the why on unusually

Fernando Castro-Caratini

and higher adjustments quarter make standpoint, our a the quarter guidance the as with a we look – exceed had slip remainder expectations due us X.X%. we our stronger did will revenue service to costs line expense of in to from stronger little top We growth And visibility the overall, storage dry wet have hit But that unseasonably did was the bit of original Marina at the members. X% platform first demand higher. both on help and spaces. that from utility the the It as towards year, – we were

John Kim

year in Okay. quarter. trending X% then kind And second mentioned last John RVs remarks are that forward of prepared your bookings for the in

guidance RV for demand on you’re same-store the higher is midpoint. offset just MH What’s Your the and side? RV at X.X% to seeing the the

Fernando Castro-Caratini

– a we quarter we offset orders XXXX, would quarter from first that $X have California been have have would border comp less Canadian around we the John, did of of because closure offset had the it where expected. than standpoint, stay million and an the the home in at

the that – the revenue the we’re remainder on more the that – for RV for close side the to expecting So not given the comparables XX% perspective. year growth of in of rest year are the normalized from

John Kim

bookings schedule are RV. But Right. X% of for ahead

that fewer slowing doesn’t MH that? below just is guidance is transient? X.X%? higher Or So suggest something why than wondering the to down conversions it I’m Or

Fernando Castro-Caratini

function for we that the that of step year. increase first quarter first in before, and XXXX. normalize the that would have across quarter in the portfolio as the We is will of the shared we’ve year that half expect of instituted as have expense expenses in – we that the growth payroll increase the for in, second impacting the in We July second a don’t impact again in saw half went

John Kim

it. Okay, Thank got you.

Operator

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

John Pawlowski

Thank rate the you the growth on X% rental or RV in for here in accelerate steady side, quarter. hold John, from to Should X% kind the we time. of expect the range? that rent

John McLaren

the question. appreciate I John.

up be a little steady. going could think It hold I it’s to bit.

John Pawlowski

for then Okay. Great. last And me. one

In terms of UK G&A. Park the holiday

scalability beyond changes now owning around and expenses that this X of what’s to what saw similar are comfortable Harbor additional Safe expect hitting step to X right we get with and should come we year? trying the So business in to this of year the

Karen Dearing

that a a company us smaller from business held a I is think to company. them small Park are held changing privately of – publicly they that we are Holidays

of although they for we the dependent you So that there to And some that have reporting amount in on to holds. in increases along what things the their increase requirements and of G&A activity acquisition reporting just some to see XXXX, in need be to see order into placed their year nature, and following statutory provide of future those up the may bring of the of them all UK. really with the the timing they level reporting will

Gary Shiffman

the of Gary, right that taking looking under the sites place think point, to would It’s that. beyond we I XXX add are at John. to now, opportunity XXX expansion additional with G&A sites there. that I’ll there just commensurate with we’re construction outsized growth get Any be expect

scalability get into first the in to the certain to G&A So and would the expect really months, increased to here be adjustments as continued XX yet there. operate out as properly U.S. all the support get certain we their we for through reporting and growth of we

we with So able be you. think quarter-by-quarter will more to I share

John Pawlowski

But this Okay. for a as percent stable Park to expect of in G&A beyond terms should be Holidays, year? it revenues of we

Karen Dearing

be Yes, I case. think would the that

John Pawlowski

Okay, thank you.

Operator

question Nick Please comes with proceed of the question. Joseph next Our from the line from Citi.

Nick Joseph

I just wanted Thank just something. you. Maybe to starting clarify off,

first the some marina expectations. I portfolio? expenses the there kind wanted was but to to of around conversation right? the was expectations? Is remainder Because and the quarter Or relative that actually So obviously is the just of that clarify ahead performance same-store entire year, the exceeded of

John McLaren

with portfolio, stronger Nick, from to our members. the entire demand for exceeded relative we our expectations service

same-property – explained perspective. the seasonality from is below slightly X.X% first original the during was remarks, Our have the side, John did growth, a which contributor expectations. our the the we But lowest on quarter prepared as

rest being visibility northern performed So, start for of the us has the on the a for very the outsized and dollars the line extremely That the the can excited of performance what hundred quarter. season said, deliver impact into boating thousand few top have an for year. we well

Nick Joseph

of Safe How compare articles their its owners just And were acquisition? portfolio to there on new the future for increased sources And then Harbor? considering company some does then the Marina yesterday large maybe one competition would press marinas, capital on Thanks. for plans.

John McLaren

Nick. Gary, It’s

strategic years very that over Marina IPO a size has been an an harbor think period are safe considering as they that fact been change that increase in in one business. rates their the to we There the Safe able filed scale Suntex I market, And we influential the has last network, with so patriotic’s in XX, they regardless through as Harbor should X current been filed business fragmented for little the alternatives. have XX-month by of acquisitions through appreciate very to we cap to footprint, be growing as of industry expectation the its to of Harbor to be the Suntex of to XX% continue general would Sun certainly, like networking carefully that. continue my the the the or with time, at to do thought to membership Safe a reside pull over Securities to grow that the improve or that and very, IPO availability the anything grow an able that to and

for So to has future, it’s the the proceed been foreseeable really Harbor ability Safe as proceeding.

Nick Joseph

Thank you.

Operator

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

Joshua Dennerlein

Hi, everyone.

same-store, property include curious Marina operating you it expenses. Just like – just on the what looks

understanding, it in for my what’s it’s And the please like and not me if it’s does rationale not correct doesn’t, including expenses? if think same-store I that if wrong, then if and waiver? waiver I’m Marina include outside that but

Fernando Castro-Caratini

Marina is basis. same-store we Josh, real a on our property

includes and the update We on time. that the at a report evaluating But service, go and expenses into could well, the dining of all the as entertainment we potentially retail, basis market are same-store can and it marina. operating in future, that

Karen Dearing

the Including Marina. operate payroll to

Joshua Dennerlein

expenses else? All that’s the included like stock including in somewhere payroll, hands property mechanic, or operating so

Fernando Castro-Caratini

labor vessel, servicing SR that If included expenses a in is for working that D&E. is on

Joshua Dennerlein

Okay.

Gary Shiffman

slips that’s related of everything is wet dry included The to else actual operating and storage fuel the everything. docs, the

Joshua Dennerlein

in it $XX.X is – same-store? in Or... for included million Included that

Gary Shiffman

reported. included the It’s that in same-store we

Joshua Dennerlein

you offline. is government that will Is mentioned I that the then Park get has owner? Okay. the from my And have resident related question as that to the license other or to to follow-up you Holidays, as a home.

John McLaren

anywhere terminology basically XX from least to is that that’s the years on XX the license site having a – is to guarantees have them equates basically our Josh. This to No. years, side and at ability

Park Holidays. from it’s So,

Joshua Dennerlein

Okay.

So, you you be Would would set to to. of that’s up? wanted that if you would could something kind something change you change, or willing like be this

Gary Shiffman

it, a saw change it, change reason If to we could we yes.

Joshua Dennerlein

Okay. Awesome…

Fernando Castro-Caratini

forward, going Yes, yes.

Joshua Dennerlein

guys. Alright. Okay. you, Thank

Operator

Golladay Our next from question. line with Robert Please your question Wes W. of the proceed with comes Baird.

Wes Golladay

the was Hi the XX%. it this is everyone. much believe do driven time, mostly the want books I At at And half second you pace. you have for said occupancy? I just rate to up how on by half? that or look second

Fernando Castro-Caratini

I rate but pretty seen the books it’s figure Wes, both. we a me, what both the again, even of of on don’t have occupancy. front think in have mean between right balance I between a balance actually I typically, we have and

those picking Saturday more been picking extensions shoulder One to have things of have that might Thursdays up normal the extend a on the are bit. into the up that we you more focused really days. stay around is Mondays, and way that They the along

Wes Golladay

update And now? it. right can on provide you program your Got an loyalty initiatives

Fernando Castro-Caratini

properties Sure. that a number of have It’s got that program. in – still we are so

keep We been to the process. if in for next months learnings to probably mode, have continue the you because pilot are six going will, the through enlightening obviously, it

members go are it learnings in back it’s, and said, picking along are program are important the spend until we them the loyalty program. the And than keep guests We that gather the rather to up the what towards within the stage have properties we of approximately loyalty I way. just like to of it’s and got, pilot think benefit to full that the launch getting geared the program I within X,XXX bringing today. the the our growing Much properties outside from within pilot a

Wes Golladay

then acquisition – And the it. front Got on sorry.

Fernando Castro-Caratini

the we along closer. too, calls subsequent get as you updating way to forward look will I as

Wes Golladay

Maybe then at is looking there assets? slips about are of what you Bay those front, thinking acquisition not the of And the can assets, Jarrett lot on you talk Okay. there. a

Gary Shiffman

our does on have network It’s and centers and the traveling between East and other is situated Marina in and all to of few south really Bay Marinas. one for Jarrett close potential Georgia. for addition, of north very Safe But large the Cove, and it’s Gary. service perfect vessels I one Harbor. proximity for Maryland Marina, expansion. Safe it’s Beach strategic said, to Wes, very way Charleston a south City very acquisition up large and Lauderdale the It split the our between port as a Southern old in is Northern Marina Coast our Harbor members Rivet Newport for

So, we opportunity that a we it’s just from network think the of is great strategy for and the the our expand that underlying of any to part members, capabilities think differentiates Safe Harbor competition.

Wes Golladay

Thanks a lot.

Operator

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

Samir Khanal

good you you can color what market of Yes. about little the are the you sort in the that talk side, just know of up? And seeing provided Gary, talk of and Hi, maybe on bifurcate morning MH I everyone. bit a marina of bit seeing? on little moving you kind sort to at in RV more? but yield expand looking light a a the market and of way overall there demand about bond are transaction is of kind of sort

Gary Shiffman

It’s cap space an no far. we tell the here thus MH/RV and have Samir. question, that sit and seen Sure. can or marina everybody I impact either rates interesting to

assets. cap that quarter communities fact example trailing three with I we of last housing our trophy basis on obviously is not in think the and that These X.X%. that you the a disposed was shared John best of the rate were manufactured

of that’s there. sense the some you gives out demand it So,

relationships pipeline manufactured have what And had forward side the is bit that pretty interest looking little some by what now or tax make a can’t have And now we housing on we have to focus relationship-oriented. for deferral is strictly to. on talked in use I for Sun that oftentimes, securities more continued transactions. much and think and I people there reflects think right the we time we

environment the We are interest seeing change. rate

we twosies housing been capture consolidated. that recognizing manufactured in acquisition to property. At housing has the onesies to that able be so type same time, suspect and So, manufactured

X to housing geared yields we shared or and new have ratcheted year we communities X where approximately up of you, to We five build be that increase Park look can new last than to an to manufactured years. And forward expect for seeing higher XXX rates to the in then desire the XXX per the John years points acquisitions. what have be housing side for than our in to we on definitely for are buy. cap their are higher going development opportunity to developing manufactured we with for Those continue points really additional up the Holiday both that expand U.S. communities to UK exciting look appear and

So, the marina very a with I side, still you great competition. then there. earlier, opportunity And with industry limited shared on as fragmented

So, we to expect continue in well. on to deploy as capital through marina external acquisitions growth

Samir Khanal

right, for I gears And million Thanks $XX like I And color. to the the wide the Great. same-store growth. marina just switching million. know second NOI range, have for guess on quarter, you $XX provided a pretty

talk left months you get end to kind and can that kind two range? low swing of the in sort the basically what you is of understand, end about quarter, the of to trying factor the top Just of

Gary Shiffman

are is early it a into Certainly Well. wide and we the range, season.

the are seeing that Fernando, demand, the some perhaps the leases shared we his John in situation are overseas, would seeing or of been Atlantic certain extension of remarks but for some vessels taking across of traveling there. think that I strong the we have geopolitical

able are be the what about So, will share of and towards actual next the we see, call we look to we to results. kind excited

Fernando Castro-Caratini

It’s Samir, smaller a just marina for a reference, standpoint. portfolio, standalone And from portfolio right.

both or down. greater shift few a So dollars impact has of a a again, up

a just standpoint. doesn’t the it amount why range from slightly a dollar to So, amount – is range that’s large

Samir Khanal

cadence of the for year? the the Got it. the think about And may, balance here? of my quarters how on last the remaining I expense question, if we should growth I mean that in Fernando,

Fernando Castro-Caratini

are a growth expense expecting we range the on X% somewhere full basis. earlier, shared be year around to As

is from deceleration saw expected. a we the So, what first quarter in

Samir Khanal

much. very Thanks Okay.

Operator

Please comes Our UBS. Goldsmith the from Michael proceed with with your question. next question of line

Michael Goldsmith

morning. a congratulations taking and lot Karen for Thanks and Good roles, Fernando. my new question on your

of your And keeping site the per As quarter initial of about MH X.X%. came below end guidance MH first pace with X% think inflation, rent to range in in – low we same-property rents the as finish forward of kind should run that we above rate X.X%? progresses, about year the above how become and through the does And going of end the accelerate think that high range? that the

John McLaren

is for question answer This question. is John. Thanks your quick to yes. The the

at you rent range. which our guided know, XXXX is, as above increase MH midpoint Our historical the is X.X%, already for

such I opportunity the we range to are increases those in achieve going Florida even course I across and going expect more California, good the CPI, MH XXXX of rent into some portfolio re-sales and year are to higher as the forward then some see tied many think take where over as of to increases move-ins locations and to progresses of than as place potentially XXXX. have higher balance And year. that the the form over of

mean the it quick yes, we answer So, I expect accelerate. is yes, to again,

Michael Goldsmith

about RV, where expectations That’s quarter. forward of think kind the in seems change level year? It And last ahead first about you of transient really ultimate pre-COVID then helpful. you of demand as was Does levels? relative RV think bookings? like we falls transient Have like it ahead the this of to how

John McLaren

leases to which year, XXX,XXX of is Yes. it which transient increase this outstanding, put I XX% we over year. a nothing of record over in will our other led had the annual way. performance high guests X,XXX, had in okay. any part conversions resorts to new last like short We RV was was that

alone. in first as XXX conversions to quarter in the close had we as well So, conversions

year the a half a upon – the being have. we okay, pace second record ahead booking represents record that that XX% last of of So,

to for other calls, like grow And so baseline that continue established grow. as on a it’s new to we from, I and look we said to

Michael Goldsmith

transaction twosies valuations if announced It’s evolved? competition market you a Have been on? Holidays. five more And kind roll-up then? has can And Park or since you Thanks. of portfolios, the on for How changed? of from the here one then months Has that yourself of and see onesies evolved larger this squeeze the is since bidding I in. do some

Gary Shiffman

in lot there. can a working and of space. I lot a at we onesies the to place John onesies of communities apply existing is to think twosies when of focus new a build and there look new sales levering interest I in that’s we grow of and mostly country doing with the see off this to the and looking move we in are been skills communities out to pretty and He class. Obviously, as everything asset twosies. consolidate first add. ground, There XX-year really is But management a Group makes as steady out their entered – things the closely Gary are acquire and like the when Park as saw But Sun that. in think well the there expertise at important force we really new people would their an we has

So, that our focus. would be

so know, larger far are that attractive involved to business simple make but see the because increasing obviously, look stickiness that of real it which they for we the all the characteristics rent we from are think I that housing we and growth. communities presented the portfolios there, is complexities the us, of our the for manufactured

the and onesies So, be portfolio, now. do like right in small we much here maybe will twosies, it

Michael Goldsmith

Thank you much. very

Operator

of question. your Barclays. Powell question Please with with proceed comes the next from Our Anthony line

Anthony Powell

Hi. Maybe an U.S.? portfolio what rates UK and rate? the cap both for compare in morning. to are to compared for twosies are a onesies How And Good to how to question. you in MH follow-up seeing that cap the the

Gary Shiffman

that people say careful XXX am points going way we rates by because – pipeline the is the so at negotiating are be here I full, I I suggest want basis there. least. more what here exceed and over proprietary with so a in rates But than cap to to cap many

Anthony Powell

that. gears to Thanks Alright. it. development. maybe And switching the just Got for

there options We MH seen mentioned over you portable Is opportunity have concern more increase opportunity has for the a five to communities an an per with that? development? is doing maybe new conversation lot long housing in that local run? year. changed are You regarding with communities And U.S., you the the

John McLaren

starts couple that MH by Hi. shared respect that This to are before, developing account year, a two taken in them with actually more is others were that taken projects. John. those have we answer Thanks. Interesting over MH in five are ground-up we is that to place, happening Yes, this ground. to have are new that we the Like the thing added projects that’s that we yes. have we flight

MH start to expect going we a year as be seven the result eight what of really, of communities so this to to range And is in that. more

to that that will have look add continue year opportunities a So, we to shared we to to do. those for that five we expect

Anthony Powell

Thank you. Alright.

Operator

is the to like all management back hand to That the questions. for closing time call we have would for remarks. I

John McLaren

you too, your all like to I and Karen. Thank This is congratulate and participation. for – Fernando would Gary

close, always for questions. we all are any available I follow-up As

we for next are reporting us to everyone. the look front excited of forward very you opportunity We have Thank and quarter. growth in

Operator

and you teleconference. conclude Ladies today’s participation. Thank your this gentlemen, does for

day. your You at a time, have this may disconnect wonderful and lines

Sun Communities (SUI) 26 Apr 222022 Q1 Earnings call transcript