Q1 2020 Earnings Call
Good day, everyone and thank you all for joining us discuss equity lifestyle properties first quarter 2020 results.
Street speakers today, our Marguerite Nader <unk>, President and CEO.
Paul Seavey argue that could if vice president and CFO and Patrick Waite, our executive Vice President and COO.
As of today's call management released earnings.
This call will consist of opening remarks, and the question answer session with management relating to the company's earnings release.
As a reminder, this call is being recorded.
Certain matters discussed during this conference call may contain forward looking statements in the meaning of the federal Securities laws.
Forward looking statements are subject to certain economic risk and uncertainty.
The company assumes no obligation to update or supplement any statements that become on true because the subsequent events.
In addition, during today's call will discuss non-GAAP financial measures as defined by FCC regulation G.
Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release or supplemental information and our historical I see see filings.
At this time I would like to turn the call over to Marguerite Nader, our president and CEO.
Good morning, and thank you for joining us today.
To begin I wish everyone on the called.
Right.
Before we discuss our results I want to see thank you to the entire team for their work they have done and continue to do since the Kobin 19 crisis began.
We've adapted procedures with the safety of employees and customers in mind, while also continuing to serve our residents and customers in a difficult environment.
We have seamlessly transition to work from home in our corporate and regional offices.
Effort and dedication that our teams have shown during these past five weeks is admirable.
We have successfully navigating through new regulatory protocols and operating environments at an impressive pace, while maintaining our high quality standards I am proud of our team.
Our first quarter was strong with an N.Y. growth rate of 5.2%.
We saw strong demand on the m. each side of the business with a 4.9% increase in rental revenue.
We wrapped up our snowbird season, and have a total RV revenue growth rate of 4.8% the drivers of that revenue, where a 7.4% growth rate in annual revenue of 7% growth rate in seasonal revenue and a 7.6% decline in transient revenue.
Let me first address or in each business.
Since the middle of March we've taken steps to increase social distancing include clothing, the common areas amenities and opening our offices by appointment normally.
We have been and remain focused on ensuring the health and wellbeing being of our employees resonance members and get.
Our customers have appreciated the importance of these steps and if all the new guidelines.
We haven't occupancy rate of 95% in our core portfolio, we have often focus on the occupancy rate, but at this time I think it's important to focus on the quality of our resident base.
Our resident our homeowners who have generally pay cash for their home our resins are committed to their communities. They care about the community and they actively display display of pride of ownership in their home.
Our overall occupancy consists of less than 6% renters, we see our renters. Its future owners in 2019, 33% of all home sales were the result of a renter conversions.
In April we saw continued strength in RMH platform with 96% ever resins pain as timely.
I have a deferral plan in place for April rental payments for those regin, stating financial hardship due to the impact of cobot 19th.
Moving to our RV business, we have had an acquisition strategy over the years of buying RV resorts that are heavily focused on and you want seasonal revenue streams.
80% of RV revenue is longer term in nature, and 20% comes from our transient customers.
Our properties have been impacted by local shelter in place orders, which call for reduced or eliminated travel activity inside of jurisdiction.
Our RV annual customer generally has developed roots in the community.
The annual customer tends to own a park model resort cottage or has an RV out of the site they had to add on that create a more permanent footprint.
For the first quarter the annual revenue grew by 7.4% comprised of 5.8% rate and 1.6% occupancy.
Our northern RV resorts generally opened in April our annual customers that people at these locations pay a deposit in advance and then complete their payment when they arrive for the season. These are summer homes, and we can get a ways for our customers.
This year the opening of 46 of our RV resorts has been delayed until at least the end of April.
While we have begun collecting the annual rent due to delays in opening has caused the change in the normal payment pattern for these customers.
Our seasonal revenue stream comes from customers, who ever reservation of 30 days or more our seasonal revenue primarily comes from our sunbelt locations with 70% of the revenue generated between November in March.
The first quarter, which represents half of the full year anticipated seasonal revenue grew by 7%.
Second quarter seasonal revenue is generally our slowest quarter with approximately 15% of the overall seasonal revenue in 2019 occurring in the second quarter.
For April we have seen a decline in seasonal revenue as described in our press release.
Our transient business represents under 6% of our total revenue. We've always said that this piece is the most difficult to forecast are trending customer stays with us an average of three nights.
The transient business serves an important role for us as we seek to convert that transient customer to a seasonal or annual customer.
Most of our RV resorts have a small portion of their overall revenue stream focused on the transient business, which becomes a lead generator for the rest of the business.
Towards the end of March we stopped accepting transient reservations for the remainder of March and all of April.
As a result of following shelter in place orders, we reduced activity to protect our employees and red and for many potential risk associated with transient traffic at this point the shelter in place orders are limiting our ability to accept transient reservation.
With respect to remember she business, we have seen strong demand from the members. During this pandemic as shown in our supplemental cash receipts are similar to this year to last year at this time.
We made the decision to withdraw guidance because we are operating under unprecedented conditions and thought it would be more meaningful for us to provide an outlook. When there are updates to regulatory protocol.
Our business has held up extremely well during these circumstances, we are seeing the best of humanity from our employees residents guests and members. We have often described the sense of community at our properties and we have seen this in full display over the past month, we see neighbors caring for neighbors working together to support the greater community.
The demand is high for our properties as seen by our Eagle results.
Based on feedback that we have received our customers are very much looking forward to enjoy the outdoor lifestyle at our properties. This season.
We'd like to close by again thanking our employees, rather then think customers. The less team has reacted to an evolving climate in an impressive manner and for that I'm Grateful I will now turn it over to call to walk through the numbers in detail.
Thank you Marguerite good morning, everyone.
I will provide an overview of our first quarter results highlight operating performance in April including the results of our recent annual property and casualty insurance renewal and discuss our balance sheet and liquidity position.
For the first quarter, we reported 59 cents normalized AFFO per share our results reflect the initial impact of cobot, 19, which primarily affected our transient RV business.
For a major rent growth of 4.9% includes 4.4% rate growth and approximately 50 basis points related to occupancy gains.
Core RV rental income from annuals, and Seasonals outperformed expectations for the four.
Our transient revenues, which were pacing ahead of guidance through February ended the quarter down 7.6% compared to last year.
As Mary mentioned, we began closing our reservation grid to incoming customers in mid March.
First quarter membership dues revenue as both the net contribution from upgrade sales were higher than guidance.
Whose revenues increased 6.1% as a result of rate increases and an increase in our paid member count of 4.3%.
During the quarter, we sold approximately 30 200000 trails camping passes.
We upgraded 727 members during the quarter, 15% more than first quarter last year.
Core utility in other income was in line with guidance for the quarter and includes the year over year increase in real estate tax Passthroughs, resulting from the Florida Reassessments we discussed in January.
First quarter core property operating maintenance and real estate tax expenses were unfavorable to forecast mainly as a result higher than expected. Her name expenses, we incurred expenses to recover from storms in California uncertain northern properties.
In summary, first quarter for property operating revenues were up 5.4% and core NOI before property management increased 5.2%.
Property operating income from the non core portfolio, which includes our marina portfolio as well as assets acquired during 2019 was $2.8 million in the quarter.
Overall, the acquisition properties continue to perform in line with expectations.
Property management, corporate Gionee were higher than guidance in the quarter because of the timing of expenses related to certain administrative matters.
Other income and expenses generated a net contribution of $1.4 million for the quarter ancillary retail and restaurant operations were impacted by cobot 19 were lower than expected.
Interest in related amortization was $26.1 million and includes the impact of the refinancing we completed during the quarter.
I'll provide some detail on this transaction shortly when I discuss our balance sheet.
We included a cobot 19 update with our earnings release and supplemental financial information.
In addition to describing our operational response to the pandemic you update highlights cash collections and liquidity as indicators of April performance.
In our MH properties, we've collected 96% of April rent.
The collection rate is net of approximately $180000 of rent deferral requests we if approved.
Our largest population within the M. each portfolio age qualified properties at the highest collection rate 97% collected.
Our renter population, while a very small portion of our portfolio has the lowest rate of collection with approximately 91% collected.
At this time of year RV collection efforts are focused on the northern resorts annual customers as they typically are returning to begin their season of camping.
As detailed any update 46 of these properties have delayed openings, which has affected typical payment patterns.
Today, we have collected approximately 61% of the April and May annual RV renewals as compared to 71% collected at this time last year.
Our seasonal revenue in April was impacted by cancellations at certain customers chose to leave early.
However, we also saw customers extend their stays and are currently showing a revenue decline of 12% in April.
My last update relates to our recent property and casualty insurance renewal.
On April 1st we completed the renewal of our property general liability workers comp and other ancillary insurance programs.
Well terms and conditions are substantially similar to the existing did the expiring policies adverse market conditions resulted in a higher than expected premium increase of 27%.
The resulting insurance expense for the remainder of the year is approximately $1.1 million higher than our expectations.
Now I'll discuss our refinancing activity in the first quarter I like current secured debt market conditions and provide some comments on our balance sheet, including our current liquidity position.
During the quarter, we close to $275.4 million secured facility with Fannie Mae.
The loan is a fixed interest rate of 2.69%, which is the lowest coupon we've seen on a secured tenure deal in the M. HRP space.
The proceeds we prepaid our secured debt maturing in 2020, which carried a weighted average interest rate of 5.2% and the outstanding balance on our line of credit.
The remaining proceeds funded working capital primarily our expansion activity.
As I provide an update on the secured debt market bear in mind that the current environment is quite volatile.
Conditions have been changing rapidly and we anticipate they'll continue to do so for sometime.
That said current secured financing terms available for MH and RV assets range from 55% to 75% LTV with rates from three to three in three quarters per cent for 10 year money.
As we've seen in challenging times in the past sponsor strengths is highly valued by lenders Ngls continues to be highly regarded.
Hi quality age qualified M. age will command preferred terms from participating lenders.
As mentioned in our earnings release subsequent to quarter end, we borrowed $100 million from our line of credit.
These uncertain times, we decided [noise] decided it was prudent to increase our available cash balance.
As noted on our Cobot 19 up the page we had a current available cash balance of $126 million with no debt maturing in 2020.
We continue to place high importance on balance sheet flexibility and we believe we have multiple sources of capital available to us.
Our debt to EBITDA, and our interest coverage or both around 4.9 times.
The weighted average maturity of our outstanding secured debt is almost 13 years.
Now we would like to open it all my questions.
Ladies and gentlemen, if you'd like to ask your question. Please press Star then one on your touched on telephone to withdraw your question from the Q. Please press the pound key.
Extend by what we can power the Q1 day roster.
Our first question comes from Nicholas Joseph with Citi. Your line is now open.
Thank you.
Transient RV revenue was wondering if you could break out the percentage of the total year, That's memorial Memorial day and on July 4th.
We can.
I think Nick as we laid it out in the supplemental you can see the contribution.
From prior year, but at this point I think that.
I think that you would look to to those numbers as the indicator of Oh.
<unk> mounts and I think as we as we said in the past so not talking about the future here as we said in the past.
Maybe a memorial day represents about a third of our overall memorial day.
Our <unk>, our overall may transient drag.
Okay Memorial there's a third of the May and I back from the stuff about goal in terms of each of them off for the second quarter.
Right.
Great. Thanks, I'm just wondering.
You have a sense.
On the private side of.
If youre.
Experience so far both on the I mentioned the RV similar to what what do you expect on the private side or do you expect additional stress. There you know that may ultimately leads to different acquisition opportunities on the other side of this.
Yeah, it's interesting Nick one of the things that happened during that it's a pandemic. It theres been a lot of discussion with operators, we've kind of gotten together to talk about what's happening. So that we have an appreciation since we're kind of all in this together and ER and from that and certainly some of the smaller operators I I think a there there.
Maybe an opportunity, but right now it's it's more about kind of the exchanging best practices and really being just good that community stewards at this point and should there be something that comes out as a result of that because people are a you know <unk> hey are interested in selling that that could be interesting.
Thanks.
Exactly.
Thank you when our next question comes from Josh Dennerlein with Bank of America. Your line is now open.
Hey, Marguerite Hey, Paul Oh jobs are doing well.
Yeah curious.
It looks like you cancelled, but April noticed we've got an h. increase.
What percent of the portfolio subject to that kind of April notice and kind of you have any expectations on going forward if.
If that's something like that as a pandemic passes you'd be able to push through.
Yeah, Yeah, so the [noise] the suspension yes.
Took place in April when you think about our renting to increase process. Overall those notices are generally sent 90 days prior to the effective date. So the April notices generally suspended increases that would have been effective August 1st and just keep in mind that rent increase calendar. Therefore, it is kind of it.
Fiscal calendar so September through August or the notice dates for increases that would be effective January through December we had sense notices to more than 70% of RMH residents are the time, we've got to April.
And April the month itself is a relatively small percentage you know kind of single digits type a percentage. The notice is that we had sent it prior to April were consistent with the 4% rate growth that we had expected.
So when you think about math, a if you want to kind of figure out what it might translate into just a math would suggest maybe 50 basis points on our expected rate growth.
Okay. Thank you appreciate that and then.
You enacted a renter for old program was that for MH and RV or just a major side and has anyone at this point requested to defer April right.
Yes, Patrick ER and referral program I was rolled out a 44 rent.
Provided the opportunity initially.
For a restaurant to request a deferral of.
Hardware all of April rent.
Paid over the following three months.
We have a small number of requests from our army annual base across the portfolio.
But that's a small number oh relative total which on average size.
About 180, $20000, which represents a few basis points 30, 40 basis points a total collections.
And and the way, we kind of what kinda got to that policy wasn't really in a harkening back to my convert to my hats and answering the last questions just having conversations with owners and operators and trying to have it an understanding of of what others were doing how we thought it was going to impact our.
Properties, and we think it's worked out very well and and it is for those who who have been impacted by Kobe, 19, which which where you know I didn't know what those are the result of the of what we've seen so far.
Okay. Thank you.
Just one follow up on that have you guys thought about.
Having a same program for Mary.
Too early at this point, Yeah, I think it's I think it's a little bit early you know as we thought about booked a you know coming out with our call. We wanted to come out at the same time, we normally do but we'll certainly you know provide update as we as we have update.
Okay. Thank you everyone who's remain static stress.
Thank you Wanna next question comes from John Kim with BMO capital markets. Your line is now open.
Thank you can you just clarify your decision.
In the northern RV resorts and also to accept transient RV reservation would that be based solely on the state and local children picks regulations or will this be in any case.
You know more of a company like decision no I mean this state shelter in place orders were really the large part of the impetus for the decisions we made regarding reducing traffic at our RV parts of the transient traffic and we're working with local counties I'm on their particular order because in some cases, they may be more restrictive than the states. So it's it's it's all.
Well regulatory protocol, so we're working with state and local counties Oh for for that for them to allow that activity.
We're ready we're ready to go once that once that happens then in and then you know instances like I said there. Some are pushed to the end of April which is only a you know 10 days away or.
Nine days away whatever that is.
So do you didn't anticipate potentially being more conservative than the state regulations opening later than their recommendations.
Yeah, we would anticipate going along with the regulatory protocol similar to what we've done in every aspect of this during the last five weeks in terms of a you know that our systems that we put in place and where operating under the guidelines that we've been given and we would continue to do that we would see that they would be open.
Any as soon as there is that daylight for it for that to happen from the standpoint on the states are those county.
Okay [laughter], the 7.6% decline in transient revenue that you experienced in the first quarter, how much of that with demand driven versus your decisions for the vision.
It was it was primarily our decision in that it was toward Patrick correct I think its towards the middle of March or they mark.
18th or something where we just said this this is seems like a an opportunity for us that that we would prefer to kind of stopped the traffic going in and out and then we made that we made that decision and I think it proved to be absolute right decision for our customers and for our employees.
And ER and and so that and then it was oh. So a couple of weeks after that that it that decision was made you know the shelter in place orders were put in place across the across the state.
Once it's started accepting reservations are going in transient do you anticipate demand being there or I'm just wondering if there's any way to do you could track.
You know customer demand or lead yeah, and transient RV <unk> I mean, we're seeing a real desire to get out and can't we're seeing desire for people to be outdoors, Oh, what what's holding them back is that is the shelter in place. So we don't.
See any decrease in demand if anything it an increase to and then excitement of that of getting outside getting out of the four walls of their home.
Hi, Great you mentioned that the strong demand it doesnt trailed during the pandemic.
Can you remind us what the customer experiences like today or are members allowed to go physically.
Coming to your immigrants.
Sure. So there's many team members right now we've been able to use system and they're actually currently sheltering placed at our property.
So that's I think that's been positive and they've they've been very pleased about being able to do that in some instances and all instances, we've actually a reduced the regulation or rules around the amount of time that one can spend in a particular property and that has been very well received.
So that we that was it just another way for us to reduce the movement around the system in around the country.
Okay. Thank you.
Thanks, John.
Thank you Wanna next question comes from Todd Stender with Wells Fargo. Your line is now open.
Hi, Thanks.
Yes. Thank you too good morning, good morning, Thanks, I guess kind of moving.
Towards home sales.
Especially with new homes were pretty solid.
Speak to March.
Certainly.
Looking back at rental conversion.
Okay.
Let me Oh, just comment on the quarter firsts, a it wasn't solid quarter for new home sales up 70% year over year ends and we saw broad strength across the portfolio, Florida had a very good quarter as in Arizona, Nevada, and really across all of our northern markets as well.
From a demand perspective coming out of quarter has been very favorable.
From a renter conversion perspective, and keep in mind. We also look at existing residents either upsizing to do a new home or downsizing or smaller home total conversions were 27% for the quarter.
That's kind of in the range has been consistent over the last several quarters called 25% to 30% in three quarters of those weren't conversions of renters, who were either renting aneel XOMA rents in another home sites and sold very sticky customer and up and very much interested in buying homes and setting up long term residency our communities.
You know how that's many translate.
Into like you know shelter in place and see how to shelter in place it's difficult to say.
We do continue to see.
That solid demand profile coming out of the coming out of core.
And your time, we were pretty you were pretty excited originally to talk about about the new home sales because I think our team did a great job in new home sales in the quarter, but obviously there were other things that that took precedented discussing but the team did a great job on new home sales in the quarter.
Okay. That's helpful and then Paul I'm, just what the rents deferrals. How are you accounting for that we certainly see if with retail over the triple net lease space. So.
With a certain level of certainty. If you think you can collect rent you certainly book it.
Yeah. So how do you look at that from from a resident standpoint, and their cash right I mean [noise].
That's that's certainly a relevant question I'd say for US Todd It is extremely small number as we've talked about so we're evaluating it just in the ordinary course, as we take a look at collectability and would otherwise or otherwise offset our revenues what you know if and when we determine if not collect.
So, but you know again its its.
30 to 40 basis point, and I think it will be important as we turn the calendar to May certainly each one of these deferrals signed a an agreement and so as we turn the a they.
They calendar to made to see how that may payments are coming in that will be that will inform our views as well.
Got it just last one when it comes to business interruption insurance certainly we see this with you guys when hurricanes hit and events like that but.
Policies generally don't cover or they only applied a property damage and they don't apply that maybe pandemics do you have any context there with this applies to you guys.
Yeah, I think I I think generally speaking [noise].
On your comments are accurate I do think this is an area that has been the subject up quite a bit of discussion. So it remains to be seen.
With respect to the policies bound April 1st I think there was clarification in a language, but you know as to as to policies in place prior to the pandemic it'll probably continue to be a topic of discussion.
Got it thank you.
With that.
Thank you and our next question comes from jump Philosophy with Green Street. Your line is now open.
Thanks, Good morning, Paul just maybe a follow up question on the impact of the suspension of the MH rent increases is it 50 bed, Sean total portfolio and H rate growth for for 2020 is.
Interpreting that correctly.
That's that's what the math again again, it's right and I'm I'm trying to be careful with respect to guidance since we lived through it but just the math based on the number of notices remaining and those and the timing of the their effectiveness in 2020, yeah. It's about 50 basis points from our expected growth of 4%.
Got it.
Okay, and then a Patrick curious for some commentary on what you're seeing on the occupancy side on the M. age and split between.
Age restricted and family are you seeing any markets and either segments or you know in April as occupancy declining anywhere in any sense magnitude. It so.
I think it's and it's early to say with respect to April, but maybe just going awful level and then you just looking at the the composition of our all age gender age qualified portfolio up overall were 70% each qualified the average age that resident is a in the early seventies.
I have to baby boomer their entire the average age and are all age portfolio is in early fifties I've skews, a little higher because of the locations, we have and retirement destinations are interested amenities.
At each one of our properties.
Overall, so you know even any age qualified we tend to skew towards baby boomers retirees, who.
Oh, just yet income is really based on retirement savings social security and less so on and employment and you don't pay checks.
Yeah, Yeah, that'd be very resilience.
And in periods of a job disruption.
I did and in my previous company, a rather large all each portfolio and a job disruption.
In the great recession and ended up resulting in increasing vacancy over a period of time. It was then replenished overtime as the economy stabilized and we had a you know residents either relocating to different market square in different states.
In order to seek employments and we also saw people I'm kind of moving down to a more to a horrible.
Housing choice.
For <unk>.
Our portfolio again, 70% qualified properties.
All age properties are behaving in many ways similar age qualified.
Just don't.
I don't seem to try and her up then jobs rocks and having a training impact.
Yes.
Okay understood, but I guess.
At the quick or is this just maybe this distinct question is just given the sheer number layoffs you see today is it reasonable to expect that your your family can be see some diminishing in occupancy are you really wouldn't underwrite that at a from what you see on the ground today.
I mean, I think that what you're seeing on our family communities skew towards the older you know it as a as Patrick mentioned, but certainly a when you look at a you look at Nevada for instance, I mean, you're seeing you're seeing currently high unemployment rate there and we have a we have property.
The there so I I pay by by region, you would look at its I think that there certainly will be some impact in those locations, but we do skew towards the older demographic even on the family side. So I think that's what will decrease the and the impact and just to frame.
John I mean, Nevada as an example is right around 5% delinquent for April So it's Patrick says, it's early and you know, we're trying to read Tvs here, but but yes.
There's a lot to watch and then the timing with bad is a function of the you know the casinos et cetera, coming back and when that happens then and and that type of thing. So all you know we're focused on all of it but it's it's a relatively small piece of our business.
Okay, No I understood maybe one last one from me Paul or you know I know expense savings are probably getting minimal and at least in the first half of the year. What does can you give us a sense a magnitude what is the playbook look like in the second half a 20 and 2021.
You know if demand remains low and the RV business like what kind of expense levers are there to pool and the second half and you can you give humorous with a rough dollar number of.
Cost savings that you are proactively looking to.
Grabbing the back half of this you're only 2021.
Can I can focus on the first part of your question. The last part of your question I'll, probably set aside for for another day, but just broadly when you think about our overall property operating and maintenance expenses. When you exclude the real estate taxes, that's about 80% of hub our expense base.
Inside of that about 10% or fixed so insurance premiums software and other expenses that support the business. So when you think about the remaining 90% that have some level of variability.
I think if you focus on the RV, which I think it's right because to the extent the m. each portfolio maintains a consistent level of occupancy we wouldn't see much variability there, but inside RV, depending on the date when the normal operations resume you know there's something of a built in hedge in expense line items like payroll and Utah.
Chili's, and then arent m. and admin they could see reductions as well there could be just lower spend on supplies and other items that are needed for run rate operations. So that's that's how I'd frame it but I'm I'm going to stop before I try to suggest a dollar amount or impact and I think John.
You just and I think we've talked about this before just from the considering an example, a highly transients property a highly transient RV property comes with it a a higher level of payroll just because there's generally more activities. There's a there's more people checking in and checking out you need more people to do that.
So there was a direct correlation if you're not seeing that I I wouldn't say if nothing because the demand I think it's definitely there if we're not April okay. And then a then you have that kind of an immediate adjustment to payroll just because you you know there should not be activity level. There I'm, so that's where I would.
See it being able to impact with that with the staffing.
Okay, great. Thank you for inside Alright, Thanks, John.
Thank you enter next question comes from some American all with Evercore ISI airline is now open.
Hi, Good morning, Mercury I guess, just a clarification I I got on the call little bit late so I apologize on the RV animals.
I think in the press release, he said for the April and May lease renewals, you've collected 61% of sort of installment rent payments. We grew 10% lower same time last year I mean, I'm just trying to clarify does that mean, you're sort of losing customers here does that mean collections are coming in do you anticipate collections become insert a little later date there.
I think that I think what it highlights is Ah the payment schedules for the RV annual customers that differ based on their renewal date. So the focus at this time of the years. Some areas those April and May renewals, mainly consists of the northern RV resorts.
And those customers tend to make their installment payments when they arrive at the beginning of the summer season. So the closures that we noted has affected the timing of those payments, but we are pleased to be in a place where we've collected more than 85% of what we had collected last year at this time and just to follow up and that this was I kind of touching this in the beginning but.
When they when our customers leave after the summer they the <unk> they provided deposit as Paul mentioned, but they leave their park model. The resort carded there are be onsite at the property in return for the following season and the first few weeks of every season are really generally a time chip for our customer to prepare for their second you know prepare their second home for the summer season.
The activity at the property really starts to accelerate as the summer weather moves in and so that's kind of what we're seeing a as we are making calls or to our to our customers were seeing a lot of people very anxious to come and.
Get out of their locations, where they are and a income to our property.
Okay. Thanks for that.
Okay. Thanks Amir.
Yeah.
Thank you.
At this time I'd like to turn it back over to Marguerite Nader for closing comments.
Thank you for joining us on the call today I look forward at providing further updates about her business, thanks and stay well.
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Ladies and gentlemen, thank you for your participation on today's conference. This does conclude your programming you may now disconnect.
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