Q4 2019 Earnings Call
Good morning, ladies and gentlemen, thank you for standing by welcome to the Sun communities fourth quarter 2019 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 meetings the private Securities Litigation Reform Act 1995.
Although the company believes the expectations reflected in any forward looking statements are based on reasonable assumptions. The company can provide no assurance.
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, many companies periodic filings with the FCC.
The company undertakes no obligation to advise or update any forward looking statements to reflect events or circumstances. After the date of this release.
Having said that I would like to introduce management with US today, Gary Shiffman, Chairman and Chief Executive Officer, John Mclaren, President and Chief operating Officer, and Karen Dearing, Chief Financial Officer.
Their remarks, there will be an opportunity to ask questions.
Now I'll turn the call over to Gary Shiffman.
Chairman and Chief Executive Officer, Mr. shift then you may begin.
Good morning, and thank you for joining us as we review, our 2019 fourth quarter and full year results.
Right, an overview of 2000, putting guidance for Sun communities.
During 2019, some continued with its track record of delivering industry, leading results for shareholders.
Generated same community NOI growth of 7.3%.
Nearly 2700 revenue producing sites.
And delivered annual core AFFO per share growth of 7.4%.
We had a very after then successful year sourcing and acquiring operating communities.
In 2019, we invested in 46 operating properties valued at $815 million, which added over 10300 sites to our portfolio.
Approximately 80% of our operating asset acquisitions in 2019 or manufactured home communities with the balance comprised of RV resorts.
Our largest transactions for the year, where the $115 million single asset acquisition of Hacienda del Rio in Florida, which closed in January.
31 property predominantly age restricted Johnson portfolio valued at approximately $344 million that closed in October.
We deployed additional capital through the construction of expansion sites and ground up development projects investing approximately $282 million.
Through our ground up developments of expansion activity, we completed the construction of 1050 sites and for Premier ground up development.
50 side redevelopment.
1200 expansion sites in 16 existing communities.
Well our acquisition pipeline remains strong across both manufactured housing in RV.
There are fewer large high quality portfolios for sale today.
Therefore, we expect our acquisitions activity in 2020 to be dominated by single asset and small portfolio transactions.
Subsequent to year end, we closed on the 230 site Cape Cod RV resort.
Okay, then east found with Massachusetts.
$14.5 million.
The sustained demand for high quality affordable housing in vacationing is once again evident in our portfolio in home sales results.
Total portfolio achieved 96.4% occupancy at the end of the year with her manufactured housing portfolio, finishing the year and I, 95.5% occupancy level.
We're pleased to share that our properties are highly sought after as evidenced by the number of applications, we receive each year to live in the Sun communities.
Over the last five years applications to live in a some community have averaged over 47000 per year.
This sustained new resident demand across the portfolio reinforces our confidence in the viability and success of executing on our expansion and select ground up development strategies.
As a reflection of our performance and the continued confidence in SUNS ability to generate an industry leading results.
Whatever directors has approved the 5.3% dividend increase for 2020.
This represents a fourth consecutive year at Sun has increased its dividend.
Our dividend will now be $3 or 16 cents per share stop from $3 per share in 2019.
In 2020, some communities is well positioned to continue executing on its sustainable business model, which is built on score core investment strategies.
First.
Reinvest in our existing communities.
Second.
Acquisition of accretive operating communities and resort.
Third the construction of expansion sites.
And fourth the development of select Greenfield projects.
Each pillar is intended to contribute to it sounds potential to generate a predictable and growing earnings stream.
Near and long term.
We are committed to the continued implementation of these core investment strategies, which in turn strengthens our business platform supporting our potential to generate industry leading cool.
With that I'll turn the call over to John and Karen to discuss our results and guidance in greater detail.
Thanks, Gary.
For 2019 Sun delivered robust fourth quarter and full year results demonstrating the strength through our platform and highlighting the quality of our properties.
A large part or our performance for the year comes from the consistent growth of our same community portfolio.
The fourth quarter same community NOI grew by 7.6%, primarily driven by a 4.5% increase in weighted average monthly rent continued occupancy gains and expense growth of 3.6%.
For the full year same Korean delivered 7.3% and why growth driven by 6.2% revenue growth and a 3.8% increase in operating expenses.
6.2% same community revenue increase for 2019 was driven by a 6.3% increase in manufactured housing revenues at 10.2% increase in annual RV income and a 2.3% increase in transient RV revenues.
Transient RV revenues continue to grow even with a 9% reduction available site nights due to our success in converting over 1100 transient RV sites Daniel leases over the course of 2019.
With respect to occupancy our same community portfolio gained 220 basis points. During 2019 and is now at 98.4% occupied adjusting for recently delivered and still make an expansion sites.
Without this adjustment our same community manufactured housing portfolio is 95.8% oxide and gives us confidence. So we still have 200 5300 basis points occupancy to gain given that 70% of our manufactured home communities are at 90% occupancy or greater.
Revenue producing site gains for the fourth quarter were 669 sites you totaled 20, 674 revenue producing say cans for all 2019.
2.8% increase over 2018.
Of our revenue producing site gains for the year, nearly 1100 or approximately 40% wherein our manufactured housing expansion communities.
As mentioned previously we had over 1100 conversions from transient RV sites and new leases, where we generally see a revenue pick up a 40% to 60% for the first year after conversion.
As has been our strategy in prior years once again built expansion sites to create additional growth opportunities. He communities on resorts that are near capacity I have perspective resident and guest man.
In 2019, we completed the construction over 1200 Bacon expansion sites across 16 communities and resorts.
Home sales activity totaled over 800 for the quarter and approximately 30 450 homes for the year.
So in also grew new home sales by 8.6% to 571.
Oh, no or average new home selling price was just over $142000 for the fourth quarter, largely driven by sales of Florida, where we've seen prices north of $200000 at our Ocean Breeze properties Jensen Beach Marathon key.
These two properties, we're repositioning opportunities one of which was the result of damages incurred during hurricane Hermine 2017.
They now feature best in class amenity packages, helping to drive record home prices for manufactured home community in their respective markets.
Our Greenfield development projects continue to progress and will allow us to drive incremental growth over the long term. This new basins are complete insights or Phil.
During the year, we delivered over a thousand sites across four communities.
Our line of Pines in South Carolina, Joe Stone Golden Valley in North Carolina, and our properties and Grammy, Colorado River run and Smith grade crossing.
We also delivered the first 50 sites and Ocean Breeze Marathon key which we discussed earlier.
[noise] pursuing ground up development not only enhances our risk adjusted returns, but also allows us to stay at the forefront of new trends and amenities for both manufactured home communities and RV resorts.
In these communities, we are incorporating stay the art efficient building methods and materials as part of our long term sustainability program.
The sector continues to enjoy great tailwinds, given the need for affordable housing vacationing across each spectrum.
We believe that our strategy coupled with our high quality communities, our resorts places us in a very competitive position to sustain our track record of industry leading growth.
We're proud of our accomplishments in 2019, and we're extremely motivated by what lies ahead.
I'll turn the call over to Karen to discuss our financial results and our guidance Aaron.
Thanks, John.
On reported core at the FFO per share of one dollar in 10 cents for the fourth quarter. Two cents ahead of the top end of our guidance range.
For the 12 months ended December 31st 2019 core FFO per share what sport Allergan 92 cents, which was so two sons ahead of the top end of our revised 2019 guidance.
Increase of 7.4% over 28 team.
During the year, we deployed a total of $1.2 billion and growth initiatives, including the acquisition of operating properties. The purchase a fully zoned and entitled land parcels and the construction of expansion sites and ground up development.
As Gary mentioned previously we purchased Cape Cod RV resort in Massachusetts for $13.5 million in January.
Moving onto our balance sheet. We ended 2019 was $3.4 billion a debt outstanding at a 4% weighted average rate at a weighted average maturity of 11.1 years.
We have extended our weighted average maturity by over two years. Since this time last year as we opportunistically refinance jumping $900 million of dad and 29 team.
Unrestricted cash on hand was $22.1 million and we had a net debt to trailing 12 months recurring EBITDA ratio of 5.5 times.
Turning to 2020 guidance for the full year, we expect core FFO per share in the range of $5 in $25 in 30 cents.
Core AFFO per share for the first quarter of $1.18 to $1.21 fat.
Our for internal growth drivers underlie our projections sustain high level results.
We expect a weighted average monthly rent increased 4% and occupancy gains of 2500 to 2700 revenue producing sites throughout the year of which over 900 are expected to be conversions that transient RV guests to annual lease holders.
We also expect another active development year as we plan to deliver 1000 to 1200, they can expansion sites and 550 to 750 ground up development sites.
These stable internal growth drivers are the primary basis for our anticipated same community NOI growth range of 6% to 6.8% in 2020, and our 5.7% to 7.7% core FFO per share growth over 29 team.
As a reminder, our guidance does not include the impact of prospective acquisitions, our capital markets activities, which may be included in analyst estimates.
Please refer to our earnings supplemental information for additional guidance on home sales seasonality by quarter General and administrative expenses and other details.
This completes our prepared remarks, we will now open up the call for questions operator.
Thank you we will now be conducting a question and answer session.
If you'd like to ask a question you May press star one on your telephone keypad a confirmation total indicate your line is in your question Q.
You May press Star too if you would like to remove your question from the Q4 participants using speaker equipment. It may be necessary to pick up your handset before pressing the star King.
Our first question comes from the line of Samir Khanal with Evercore ISI. Please proceed with your question.
Gary Good morning, you talked about the acquisition pipeline being full they expect a sort of single asset acquisitions, I mean last year was an outlier with the Jensen portfolio.
But could you could you even do something even close that's sort of 500 million. This year, what kind of put you closer to 2018 level just trying to understand what the opportunities.
You are seeing the U.S. or even internationally given that you know acquisitions had been a big part of your growth profile there.
Sure. Thanks, Mary I think what are our expectations are between 150 and $250 million of acquisitions for the year.
Certainly we were very very pleased.
With that what we're able to accomplish in 2019 that said the Oh.
Demand and the competition just continues to grow I think is there's a strong recognition or the cash close stability and the limited supply.
And this asset class.
We definitely rely heavily on or long term relationships, having been in this business.
For approximately 40 years now.
In addition, a the reputation that we're starting to receive out there with regard to transactions like a carefree Johnson.
Several others that we've done over the last five six years isn't really bringing put a four front a the fact that Oh. The first call comes in to Sun communities. So its an opportunity for us to a look at a lot of properties that are not necessarily widely.
Marketed.
At the same time withstand contact.
With all the relationships that we do have but because the supply is so limited our expectations are barring some unforeseen portfolio transaction that everything will be in the ones isn't Tuesdays that's here.
Great. Thanks for that and I guess for Karen you know real estate taxes or expect to be expected to be up I think about 7.6% at the midpoint.
When I calculated I mean, it's coming off at pretty low you know a lower pay so sort of 3% to 4%.
I mean, what's driving that I know, Florida is always a sort of an unknown factor, but is there something else we need to be considering.
Mothers, there's a couple of things going on there Samir.
So 2019 is it that lower than anticipated because we had some multiyear refunds unsuccessful appeals and assessments and the state of Texas without those refunds, which impacted 2019, I think we'd be for 2020, we'd be in line with.
Ah guidance that we gave last year I'm the second thing impacting is.
Certainly expansions as you know we continue to expand our existing communities and now we endeavor to put in real it realistic estimates for what.
Increased assessments may be we really can't be certain when or if those increases will actually Chris. The we pride tried to be conservative and we'll just update estimates on real estate taxes this year progressive.
As we learn a little bit more.
Great. Thanks, so much.
Our next question comes from the line of Nick Joseph with Citi. Please proceed with your question.
Thanks, Gary appreciate the comments on fewer larger portfolios on the market today, what is the typical lead time for for larger deals in terms of when they begin to be marketed to wind acquisition is actually executed.
Yeah.
Yeah.
Good I suggest a.
You know, it's a few months period of time before you're really able to engage a when things are marketed or they tend to have a oh process, where there's a professional advisory and and so there's a definite or cadence in process.
How that moves along obviously into a indicative bids in through a second round in a third round and one other things isn't that great advantages that we've been able to utilize is the ability to use various security is to defer tax.
Situations and that again requires more time to really educate a the seller the sellers a financial advisors.
And ER that often times they have to go to their investors on a case of Ah Johnson, which was a marketing process.
There were 60 family members.
That Uh huh.
[noise] Committee had to go too so definitely yes, you can imagine going to 60 family members certainly put a lengthy or period of time in being able to move forward. There. So, but I think a 90 day period or roughly to get to a the selection process and then Oh closing.
I was on from there as well as a confirmatory third party reports that you have to get and.
So.
You know three to five months to get to an actual closely.
Thanks, that's helpful that or do you just provide an update on and GGR any updated thoughts in terms of SUNS involvement there.
Sure.
We're obviously very pleased with a what's taking place what appreciation of the had stock.
When we transacted or.
ER acquisition of a about 10% of the had stock there the stock based on closing yesterday, I think was up somewhere in the high 70, 577% from a one we bought our position or we did pay a little bit of a premium.
So we're up just about 60% or in a little over a year. So we're really pleased with that.
The other thing that's been nice aside from a seeing how well they performed and.
Working together with them as that they were admitted to the a FX a 200 and December much earlier than they anticipated and that gives them access to a oh.
A much larger Ah qualified group of investors who.
Could not begin to invest in that public company until they reach or the FX 200. So it's been positive for a market liquidity and volume and then one way look a specific to the JV or we've closed the two deals a one in may.
In June of 2019.
One in Brazil, and a we actually have a developed out and acquired additional contiguous land.
For another 20 to 30 sites, but we're building 233 sites there with our partners in GGR, a 22 homes are under construction or currently and we actually are now have four contracts and one deposit so I'd like to thing it's going right on.
I am a second property, we acquired a was in the New Castle area, It's 120 site development.
Purchase price was about $5.5 million and where before console right now the entitlement is there for manufactured housing, but we want to modify the plan a little bit.
And then lastly.
We have a 500 site or community or under contract with Sun GGR its a.
Contingent upon getting council's approval for a manufactured housing.
Lifestyle community, there and I imagine a that will take three to six months.
The proceeds so.
It's been slow, but steady and that's been our a approach from day one.
We're very pleased.
To be working with us on junior folks I think it's been a great. A there are many many things that we've learned in Australia that they do that we brought back and are looking forward to implementing into our a process of development here and we've been able to share a lot of things without there and Oh look forward to continue relationship there.
Yeah.
Thank you.
Our next question comes on line of drew Babin with Robert W. Baird [laughter] either question [noise].
Hi, good morning.
On June one quick question following on the the enjoying your question that gas I know in Australia. The on the income flowing in can often be contingent on the timing Obama homesales closing so I guess, it's hard to kids go through 2020, where can we expect that didn't come to flow into the income statement as.
That's come in is it going to be recognized as home sales is gonna be other income.
Where in sort of when can we expect to see those inflows.
True that that income will flow and true our.
Equity indefinite line item.
[noise] okay.
And then a quick question on a recurring capex going into this year its not uniquely to your story certainly it's been happening across the retail sector, but recurring capex per year, it's been trending upward to pretty robust pace.
I assume that that's going to continue with by yes. Some degree this year, where do you spending per unit for 2020 years budget for the year.
[noise] odd you I, Oh, I'll start that and then maybe John can add something to that but first of all I've just to clarify the and ingenious or the Sangeen Yeah home sales profit would come in on the income a loss from non consolidated affiliates that see exact line at an enterprise and line but.
Okay recurring cap Capex, we've talked about this a lot in all of our meetings with our investors that we we we firmly believe in the continued upkeep upkeep of our communities.
And the value that it creates far rather an entire gas and our shareholders. So as we've discussed in the past and I think even last year. We think we haven't ongoing ROE improvement program, particularly at the properties that are subject to harsh winters, but for 29 team that roads bond was 11.39.
In dollars.
And our Korean Capex would have been a $215 a site if you adjusted that road work out.
For 2020, our recurring Capex is expected to be about 322 to $340 a site and that does include another eight $9 million road work and about $3 million in our truck fleet program.
Yeah true. This is John I was just add to that them in the road projects actually are really interesting thing because it's really.
Sort of fits within our culture in terms of being a proactive step and what can really far down the road no pun intended.
For the company and a [noise].
So we undertook an assessment project a couple of years ago that literally looked at every single road and every one of our communities and we assess them graded them. We had a third party that we worked with literally knows [noise].
Everything about roads, they build race tracks all over the world and it was really a pretty fascinating process and what I've learned and what we learned through that process. When we started looking at the models that everything was plugged into.
And we graded the quality of every road that we have in our communities, but there was an opportunity over the life of roads to improve the life for the roads through various measures not just replacing the roads, but other things that you can do and so when we looked at that and then kind of come up the other end on the long term did.
Actually is pretty big value creation in terms of our spend and what we can save over the long term life for the roads. So it's it's really it was a pretty fascinating experience to go through it and I'm really we're obviously very excited to have the program and plus.
Great appreciate the color there and then one more for me [noise].
Mentioned that the guided increasing occupancy.
It was a phrase does kind of just an increase in non revenue producing sites I know in the past you've talked about increasing kind of the baseline our same store occupancy rate at the end each portfolio I think as high as 98%.
I understand that writers are sort of you know a true kind of.
Same store increase going on as well in addition to the I'd be expansion sites being added that all those supplement revenue growth and 20.
Yeah, I think that.
We talk about 70% of our communities.
98% or greater than there are more and more at 99% and greater is we know the high demand for affordable housing continues but we do have some room at our existing portfolio and one of our big focus is a aside from expansions actually creating.
That occupancy a ability is to acquire properties that have occupancy.
And then when we can buy them, yeah, they oh credo cap rate and by the occupancy at the vacancy I'm, sorry, I keep saying occupancy a the vacancy sort of along with them.
That's even better so we look for three places we look for a grading vacancy through the expansions we look for the vacancy that's existing owners and existing portfolio and then acquisitions. We've always had a focused of course it look for a accretive opportunities for that growth, but a lot of that grow too.
Driven through a filling up the vacancy.
Great appreciate all the color it's already.
Our next question comes from the line of Josh Colosky with Green Street Advisors.
Your question.
Thanks, Karen is the unsecured market, becoming more interesting to you in the team has no capital needs are pretty light right now, but just putting more optionality in place for the next three to five years for the balance sheet of the company.
You know John we we meet with their ratings agencies on a regular basis just stay updated on the market and we really just deal or the potential for unsecured borrowing it's just another option to consider when evaluating.
Data sources of capital that we have an whenever the capital is needed.
I guess, a follow up or some of your residential comps are coming to market with some pretty eye opening writes a 10 year money into mid twos, There's there's 30 year paper out there and the three so I guess, how do you weigh that versus at the term loans that you're doing I'm a bit higher.
Higher higher rate I guess, why why isn't that big only March active [noise].
I I think Oh, we do view at all and we'd consider a the possibility of some shadow rating and an understanding of where that pricing may come out for us and then we have to weigh that against our existing debt schedule and balance sheet and what that means.
And I guess that is an ongoing process, China and most recently a we were in front of or one of the rating agencies and we are expecting some information back on it.
Okay.
One last one for me its question on the obsolescence of competing privately owned MH communities that you see out in the market I'm curious if there's any interesting trends on the closure of parks and re purposing into other uses and essentially do you think theres been negative net supply.
An h. out there in the country last few years.
Hi, it's scary and John or could add anything it's got but I think the only thing that I would point to is a real.
Interesting case study to that effect, a we're looking at a a new development and.
Colorado in Fort Collins, and they're very proactive about porting sun for.
The because there's a fair that to manufactured housing communities have been close down there.
For re purpose a use of the lab.
And they currently have moratorium in place.
Preventing the removal of any of the manufactured housing a zone land for any other purpose as they study it for a year and Oh, one of the a strong suits. The Sun has come in and suggested is that we'd be happy to replace anything they got removed.
And right now we are looking at a 300 site opportunity there.
So that's how I when I know better off John I would just add to that Gary John that.
I think one of the sort of unique advantages that we have is that we've actually completed projects now and so what we present.
In this arena around.
Maintaining sustaining building affordable housing, we can actually present things that are no longer renderings their actual work that we've done and a one project that we're looking at the carrying are looking at right now in Florida.
As a repurchasing but maintain see entitlements.
That are survival. So we're.
Focused on making sure that we're absolutely part of the conversation, where we where we find out about it.
Okay, great. Thank you.
Yep.
Our next question comes from the line of John Kim with BMO Capital markets. Please proceed with your question.
Thanks, Good morning couple of questions on your ground up activity development activity on stage.
Three of your press release.
I have the 284 completed.
Can you.
Like all around.
Right.
How long and say Hey, Mike [noise].
Sure.
This is John again, just kinda give you sort of the overall on the.
Ground ups.
We actually completed over.
1100 sites approximately on the ground up developments in 2019.
It's going really well, okay. What we shared previously for development, we deal with target basically a 300 say community in our model with a high single digit unlevered I or our upon stabilization, which in the case of RV. There's approximately three years in the case of manufactured housing is five years on the RV side you get some acts.
Celleration because once you open those sites every one of those available to be lease that days. It's the same thing animates. It's just the lease up because there's a longer period of time [noise].
Just give me a little bit of color on what we built thus far I'm I'm, especially pleased with the performance of copper Robles, which is in central California wine country.
We open that up that was 332 sides. So we opened up and you know mid to mid to later 2018. So it really had its first full year of operation in 2019.
But what's what's.
Awesome as a cow cabos tracking significantly ahead of the return target. Thus far so it's been it's been a good success, it's an RV resort and again its open for transient stays vacation cod stays and those sorts of things.
We also opened up a Carolina pines in Myrtle Beach, and Joe just on Golden Valley in North Carolina last year midway through the year as well.
And really their first full year of operations gonna be this year. So I think that reporting those results next year old bring delight some of the answers to the question that you asked as well Smith Creek and River run, which opened later in 2019, but those communities are also on their growth path for 2020.
Finally, I'd add that you know our development continues.
As we're in the ground constructing a kosta Vista RV resort, which will be approximately 300 sites that are on San Diego Bay.
As well as whitewater, RV resort, which will be approximately 300 sites and the hill country in Austin, Texas.
And soon to be in ground with a new a 500 plus site manufactured home community development I'm, just south of Austin So.
What's great is that causes performances has exceeded our expectations. We've got new projects that came online last year that we look forward to their first full years this year.
As well as the pipeline of what we have that's either in the ground or close to being in the ground I just described.
Additionally, in the pipeline that we have you know beyond that of various parcels that we're looking at to get untitled over the course of 2020 and 21.
Trying to just.
Yeah, and then give me some sort of color you know having done this for many many years because of their routes where developers and getting back into the development business now where we can.
Build for we think a much better returns for our shareholders then or buying in certain markets that are just too costly. It does take two years for the entitlement in zoning process from start to finish till we closed on a property.
So where are we look two or three or four developments per year to start we are working on a many more than that and only a few of them succeed all the way through entitlement and many of them are rejected a basically for the same them be reasons.
That ever existed a and I'm biased against often times I was viewed as a the old trailer park tarnished image or a the transient nature of the RV communities. So there's a lot of work that goes into our development pipeline.
And we're very very selective or where we actually would pull the trigger on a new ground up development.
There's still a significant amount of remaining construction sites of those projects do you have entitlements for them already and what do these timing as far as completing.
That's a great question.
And ER entitlements are good.
Before we close on a property for all the sites.
So they are fully title entitled in Zone, and we will bring them.
As demand is there.
It takes anywhere from a nine to 12 months they actually bring one of these Ah second and third phase sites online, we treat them as much as we do our expansion sites one of the great benefits from these additional phases is that the.
[noise] upfront.
Loaded a cost and <unk> are born in the first phase in phase two three and four might look very much like our expansion sites, where a greater margin of the revenue falls down to the bottom line. So we look at these additional phases as almost builder.
Inventory.
I'll quote cat potential expansion sites for the future. So I guess, a little bit of a added benefit a we're building the initial returns to high single digit.
And in the case of a river run for example, that's 1100 sites I think.
Well, we'd be up building it out over the next five six years and as each one of those phases gets filled out it will look more and more like an expansion from a profitability standpoint.
Okay, you provided guidance on your revenue producing five deliveries for this year, but.
Can you provide any any color on expansion and development Capex in 2020, where that would fall in relative.
$282 million you had last year.
I think.
We look at it to be a little bit similar to two.
2019.
The ratios may change, a little bad or development costs might go up a little bit and expansion down or vice versa, but it's more a matter or when we actually get the site plan approval as to which will get done a faster in 2020, but very similar to.
What it looked like in 2019.
And is the engineering JV in this figure is that a separate line item.
That would be a separate line item.
Yeah.
My last question is just given the limited investment opportunities in the U.S.
Coupled with the U.S. dollar basically being at 17 year highs versus the Aussie dollar enriches the Looney.
Are you more proactive or aggressive underwriting acquisition in either Australia, and Canada today.
Yeah, I'd like to suggest that were not necessarily a more active we certainly are also know that that swing and.
Value can go either way, but while we are doing is really just continuing to try and focus on the right opportunities and a I often time <unk> talk about the right opportunities to be.
Opportunities that are certainly can create accretion, but can benefit from being placed on the sun platform. So when we're outside of areas or that we can actually utilize the sun operations platform. We're just very very conservative and a cautious with how we think about.
Thanks.
Alright, Thank you <unk>.
<unk>.
Our next question comes from the line of Wes Golladay with RBC capital markets. Please proceed with your question [noise].
Good morning, everyone looking at the transient revenue last year. It looks like a you know the CCOP revenue per site was up 2%. Despite all the child that though the units that went to permanent or is that growing it a revenue per transient sat around high single digits does that seem accurate.
Yes.
Okay, and then a follow up to that why does that mean, the occupancy driven or are you getting a lot of rate there.
It's both okay, but it's primarily it's weighted more towards rate.
Okay. So do you think much more room to push occupancy there.
Yes for sure Okay.
Okay. Thank you.
Yep.
There are no further questions in the queue I'd like to hand, the call back to management for closing comments.
Well on behalf of a the management team, a where I'm pleased to be able to report these earnings and we look forward to Oh reporting on first quarter and as always a invite anyone to reach out to anyone of us if there any follow up questions. Thank you.
Ladies and gentlemen, this does conclude todays teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.