Q2 2020 Equity LifeStyle Properties Inc Earnings Call
Then see essentially flat compared to the prior period.
Year to date core resorts.
Year to date core resort base rent from Seasonals increased 3.7% compared to 2019.
Core base rent from transients decreased 47.7% in the quarter as a result of the closures Margaret mentioned in her remarks.
Membership dues revenue increased 3% compared to the prior year.
During the quarter, we sold approximately 50 800000 trails camping pass memberships.
This represents a 12% decrease for the quarter, which we attribute to the impact of Cobot 19.
We experienced significant recovery in sales volume in June which showed an increase of 43% over June 2019.
The net contribution from membership upgrade sales in the quarter was flat compared to last year.
Sales volumes increased almost 12%, while the mix of products sold changed resulting in a lower average sales price.
Core utility and other income was about $400000 lower than second quarter 2019.
Increases in pass through and utility income, primarily resulting from pass throughs of real estate tax increases that were effective in late 2019 were offset by reduced revenue, resulting from our suspension of late fees as well as fees related to transient RV stayed.
For property operating expenses were flat compared to second quarter 2019.
The footnote disclosure included in our supplemental financial information package States that are core income from property operations includes approximately $1 million of nonrecurring coated 19 related expenses.
Excluding these expenses, we realized a 90 basis point decline in court property operating expenses in the quarter compared to last year.
In summary, second quarter core property operating revenues increased 60 basis points and core property operating expenses increased 10 basis points, resulting in an increasing core NOI before property management of 1%.
Core NOI before property management, excluding Coca 19 related expenses increased 1.8%.
Income from property operations generated by our non core portfolio, which includes our marine assets was $3 million in the quarter.
Revenues from annual customers at the marinas and other properties in the noncore portfolio generated more than 90% of total non core revenues in the quarter and year to date period.
Property management, and corporate DNA expenses were $25.4 million for the second quarter of 2020 and $51.3 million for the year to date period.
Other income and expenses generated a net contribution of $1.7 million for the quarter.
Ancillary retail and restaurant operations were impacted by Cobot, 19, and generated approximately $1.2 million less and allied during the quarter than last year.
In addition, our joint venture income was approximately $2.4 million lower because of a refinancing distribution we recognized in 2019.
Interest and related loan costs amortization expense of $26.2 million for the quarter and $53.2 million for the year to date period.
We included a cobot 19 update with our earnings release and supplemental financial information.
All of our MH RV and Marina locations are open, though some have limited access to certain amenities pursuant to state and local guideline.
Our rent deferral program was in place from April through June.
Through that program, we assisted 540 residents with a deferral of approximately half a million dollars of brands.
We also provided assistance in the form of rent credits to annual customers at certain of our RV resorts square openings were delayed because of shelter in place orders.
Those credits will be applied to future charges and total approximately $900000.
We've also continued suspension of late fees in the month of July.
Since the outset as a kid 19 endemic we have not experienced meaningful negative impact to our rate of rent collection.
For the second quarter, our overall collection rate for our MH RV and TT properties was 99% consistent with the second quarter of 2019.
Our month to date collections in July our consistent with the collections at this time in April May and June 2020.
Now some comments on debt markets on our balance sheet.
Market conditions has stabilized somewhat since our April call current secured financing terms available for MH and RV assets range from 55% to 75% LTV with rates from 2.75% to 3.5% for 10 year money.
We continue to see lenders place high value on sponsor strength Ngls continues to be highly regarded.
Hi quality age qualified MH assets will command preferred terms from participating lenders.
Our cash balance after funding our July dividended more than $50 million.
We have available capacity of $350 million from our unsecured line of credit we have approximately $141 million of capacity under our ATM program and we have no scheduled debt maturities for the next 12 months.
We continue to place high importance on balance sheet flexibility and we believe we have multiple sources of capital available to us.
Our interest coverage ratio was 4.9 time and our debt to adjusted EBITDA is five times.
The weighted average maturity of our outstanding secured debt at 12 and a half years.
Now we would like to open it up for questions.
Jonathan.
Ladies and gentlemen, if you have a question that this time. Please press Star then one you touched on telephone. If your question has been answered and we'd like to move yourself from the Q. Please press the pound key our first question comes from the line of John Kim from BMO capital markets. Your question. Please.
Thanks, Good morning.
Strong quarter as far as the collection rate and the RV parks are now almost fully open can you just discuss why you Didnt reinstitute earnings guidance for the year.
Sure John So every year you know as you know we issued guidance well in advance of the started the year I think we've historically been among the first two to released guidance and then we're really focused on making certain that down that the investors. Appreciate the assumptions that go into the range. We provide we feel very good about our business going forward it really.
As shown in the truth strengths in during this pandemic, but we did feel that with the uncertainty in the regulatory and specifically the health environment. It was prudent to wait to reissue guidance and provided at a time when there is more clarity with respect to that environment.
Our MH and RV annual revenue line items have per more performed remarkably well.
During these tough time, but the part of our revenue with more moving pieces like seasonal and transient revenue there more difficult to forecast and that really factored into our decision to wait on reissuing guidance.
How much of this decision.
Was based on concerns of the unemployment benefits expiring and additional Guinean government stimulus.
As long as does that factor into your decision until now I mean, I think what I just want to kind of covered there at the end with the seasonal and transient was really the drivers of the decision as you've seen in our in our MH platform.
Really really good collection high occupancy rate.
Great great sales, so so that wasn't.
But that wasn't really a factor.
Okay, and then last quarter you funded.
Now that the rent increase has been MH I'm just wondering if that has.
Thats continued on a few now you're you are increasing ramp.
Yes.
John if you.
Referred to our June Investor presentation, we had talked about the fact that weve reinstating them in June.
And in fact, we did do that at the end of June. So there was a very brief suspension for the month of April and May on those rate increases, but we effectively had a catch up those notices in June.
Great. Thank you thanks, Jeff.
Thank you. Our next question comes on line estimator can all from Evercore. Your question. Please.
Yeah, Hi, good morning Margory.
I just can you talk about the changes you're seeing.
Maybe trends in the per properties in Florida.
Arizona, even California, we've seen from.
News report to sort of flare ups and requires any notable changes those properties.
Yeah, I mean, those properties right now for us are in they.
Not as busy season. So you really we have our annual our RV annual there and our RV and our MH. There. So it's not as busy of a season. So it's not not impacting US currently we're certainly looking towards that towards how that how that changes and how.
How the virus changes over time, and how that impacts and that's why touchsense impacts our transient and seasonal reservations.
Into the third and fourth quarter.
Okay, and I guess my second question or is it just on kind of just a general market in terms of opportunities that you're seeing.
The acquisition side portfolios, one almost whether its rvs are and manage it gets what is out there today and.
And our expectation sort of on the other side of over the levers here. Thanks for the six to 12 months, Yeah. I mean, I think there if we didnt close on any new communities in the quarter. We are in due diligence on deals and we'll update you on the kind of the timing of the closing.
Theres certainly transactions that are happening some transactions are happening in our in that kind of the the all HMH space, which we have expressed that were not not necessarily interested in.
But but I see that Theres I think there there are some deals that are coming to market now where people are interested in selling.
I think can that's consistent with the years past, where it's just kind of but the timing is right im not necessarily having anything to do with the with the pandemic.
Got it okay. Thanks, so much thanks Amir.
Thank you. Our next question comes on line, though John Lasky from.
Greenstreet Advisors your question please.
Hi, Thanks, Thanks for taking my question just curious on the the uncertainty around the U.S., Canada border being closed.
You know closure being extended is that impacting.
On your early indications are snowbird traffic down will come down into the southern southern stage or intend to come down any any risk to the seasonal RV demand in the back end of this year.
Sure. So let me give you a little just overview of.
Our Canada, our Canadian customers I think our Canadian overall Canadian revenue of $18 million and a little more than half of that is annual.
And the largest portion of those Canadian customers stay with us in Florida, Arizona and Texas.
It's basically about 7% of our total revenue.
And the first half a year I think represents about 60% of the full year revenue, so thats kind of already.
Collected in an accrued.
We do have approximately I think it's 98% of the annual RV customer is already has their park modeler RV on site in the South. So then and now we're just kind of dealing with the seasonal and the uncertainty on track on the around that travel.
So it's something that we're we're watching I don't think it's something that we'll have clarity on until.
The border.
With that board to closure was extended to I believe August 22nd or the end of August.
So, we'll see and we're watching that closely.
But but it's something that something that we're paying attention to it and effects really.
On December and into next year January and February.
Right, but if the borders closed on the annual aside I understand the than individual homes years still in place, but in terms of rent refunds and pro rated ran that would be a risk to the annual bucket as well right. We haven't we haven't kind of gotten there yet I mean at this point the dealing some.
Cases the.
Customer is in within Florida, right now are in Arizona right now so it's not something that it's not something that we've discussed certainly not something we discussed with our customers yet.
And unlike in you as you remember John in the North there was.
We were not able to open the properties.
And so people couldn't have access the properties. This is not the same people can have access certainly to these properties.
Okay.
Last one from me I apologize if I missed this in your opening remarks, but could you share how the July transient RV reservation pace.
Shaking out versus a year ago sure I.
I didnt share it, though a happy too.
Our July.
I think just.
Not providing guidance, but I want to kind of touch on a couple items relative to what we've seen already not not where we're seeing in the future which is July month to date transient results.
And to put some parameters on that which in 2019 I think that represented about 40% of the third of the third quarter.
It's in line with last year, So we're tracking last year.
Our online camping pass sales in June.
They increased 100% and then since the beginning of June we've seen an increase in leads from our RV dealer program of about 71% and then our RV dealer Activations increased 20% so some.
Pretty pretty significant kind of demand indicators that we've seen really since the start of June.
Okay. Thank you thanks, Jeff.
Thank you. Our next question comes from the line Joseph definitely from Bank of America. Your question. Please.
Martin and Paul Automotive just a follow up on John's question there on the transient.
Any color you can provide us on maybe forward indicators on that on the R&D side.
Okay.
Bookings that you're seeing come through on the Internet.
Sure I mean, we've seen we seen I think over the last four or five weeks, we've seen significant increases to our booking channels I think in some cases, a 100% increase over the last I think three or four weeks now.
You know along with those records. We also were also seeing some cancellations that that is offsetting some of that some of that new revenue in in some locations, where we're able to operate Ed for where we were able to operate a full capacity, but the surrounding area and attractions are problematic, we're seeing that we're seeing some.
Issues there.
But at but though so those are the kind of the demand indicators that where that we're seeing.
Okay. Thanks, and then in the second quarter, you had elevated costs from co bid of I think there was a million dollars.
Is that.
Is that pass those now or is that kind of going to travel through into the third quarter kind of continue at that run rate until the pandemics over or does it throttled down.
I think what we highlighted the total of 1.4 million a million of which impacted the core expense base those really represents the.
The nonrecurring expenses related to coded we focus very closely on the FCC growth guidance around cobot disclosure and and seen worked very hard to differentiate between.
Really what are onetime.
Costs related to development of the protocols are ground operations of the properties at this time as well as.
The employee time off program the property employee appreciation bonuses. So that's not really indicative of excuse me of run rate.
Now the incremental costs that we incurred associated with cleaning, meaning supplies and so forth. Those are included in our expenses and weren't.
Separated or or or excluded as cobot related expenses.
The little bit difficult at the moment to kind of project what those will be on a go forward basis, primarily because a lot of is driven by the experience at the property the timing of the opening of the amenities and so forth.
Okay did you disclose that somewhere in the boat the level kind of the increase suppliers that and then yes.
Domestic though.
We did not separately disclose that it's not a significant amount there was a couple of hundred thousand dollars in the quarter.
Okay. All right. Thank you. Thank you both sure thanks to us.
Thank you. Our next question comes from the line of RJ Milligan from Baird. Your question. Please.
Hey, good morning.
Are you one of the little bit more color. If you could on the rent increases you guys mentioned that you restated them at the into June and that there would be a catch up so does that imply that third quarter, you're going to see outsized growth from.
Increases.
We won't see outsized growth I think the way that we framed it on the call in April was the suspension to the extent that it continued through the end of the year the impact would be about 50 basis points just doing the math.
Impact would have been about 50 basis points in rent growth.
I think the brief suspension for those couple of months that changes that impact to to being just about 10 basis points on growth.
Okay. That's helpful. Thats, all I have thanks, Thanks Vijay.
Thank you. Our next question comes from the line of Nick Joseph from Citi. Your question. Please.
Thanks, just a question on the amenities that are not open up.
Some of the state local guidelines does that impact pricing or respond.
At all.
Okay sounds like you remember these just won't be open for use.
Let me let me this Patrick NAECA, let me touch first on a nation only because the RV.
On them each fronts.
It's not.
Impacted.
Any sort of concession.
On rents.
We have managed through that process of first closing those amenities and then reopening predominantly across our portfolio amenities are open, particularly on the I make side of the portfolio.
We have protocols in place to ensure that our employees are seasoned seasonally interact with one another and our customers all of our employees are required to wear masks went in proximity to one another our offices by our my appointment only and we have clean protocols in place and as I mentioned the last call we have a relationship.
With a national vendor that specialists and industrial hygiene to ensure that we're following CDC guidelines.
On the RV side of the World and just on the.
Expected as the previous quarter.
The the amenities and then were closed were really part of.
Properties that were closed.
And that was the driver of the refunds in those instances for animals in the northern camp grounds.
Across the south.
We are out of season right now so it's a lower demand at this point.
It's not impacting any sort of rent payments for any of the annual seasonal and transient.
Okay, great. Thanks, and I'm just back to the acquisition environment I was wondering specific rvs.
Has there been any disruption or.
Increased opportunities given what happened in the second quarter or on the private side have many owners been able to whether that spot.
I think I think that most have been able to weather the storm I. There there may be some opportunities just people like I said I think it's just that the time is right in their life time and their cycle.
I I don't see a lot of opportunities coming as a result of of of people seeing me in effect, because I think the F. The effects were really good.
Both on the MH and the RV business save for the transient for a couple of months and I think people thought that as a once in a lifetime kind of thing and not to be repeated and so so I don't know that there'll be opportunities come at the result of that it's more of a personal kind of preference and people a willingness to sell now.
Thank you.
Thanks, Nick.
Thank you. Our next question is a follow up from a line of Czaplewski from Green Street Advisors. Your question. Please.
Thanks, Paul curious how municipalities are approaching property taxes. This year, it's less about the impact from 2020, and just more from a real estate lens any color from on the ground conversations with municipalities.
No direct color.
I don't think for us that translates into.
Delays in timing, although there could be extensions of time for payment.
Not seeing that happen, yes, and.
Not seeing we're not seeing just it's a little bit hard.
The timeframe, though it feels like this has been going on for such a long time, the timeframe really isn't that long and so when you think about the at the typical assessment cycle and so for us that results in the bills that that any any impact on income that may drive evaluations for purposes of the assessors that's not.
Had time to make its way through the through the system.
Okay. There's no there's no chatter in the next call 12 months, where municipalities have to fulfill a bigger hole in their budgets to kind of come after residential little harder and particularly when other property types really can't carried away.
I mean.
There is there's there's chatter there has been that type of chatter for sometime now I don't I don't.
Don't hear it on the ground being louder than it's been before.
I will say, obviously, California has the the issues that that they're working through.
I'm kind of setting that aside and thinking about the rest of the country.
And then John we also have are at the level of Florida for instance, where we have the ability to pass through real estate taxes, we have a lot more kind of help in front of local municipalities to did not do that so that it's not the it's not just a big kind of corporate transaction right.
At the at the level of the property.
Okay. Thank you.
Thanks, Jeff.
Thank you and this does conclude be question and answer session of today's program I'd like to hand, the program back to Marguerite Nader for any further remarks.
Great. Thank you for joining us today, we look forward to updating you on the next quarter's call.
Thank you, ladies and gentlemen for your participation in todays conference. This does conclude the program you may now disconnect good day.
[music].
[music].
Property management, and corporate DNA expenses were $25.4 million for the second quarter, 2020, and $51.3 million for the year to date period.
Other income and expenses generated a net contribution of $1.7 million for the quarter.
Ancillary retail and restaurant operations were impacted by covert 19 and generated approximately $1.2 million less analyze during the quarter than last year.
In addition, our joint venture income was approximately $2.4 million lower because of a refinancing distribution we recognized in 2019.
Interesting related loan costs amortization expense of $26.2 million for the quarter and $53.2 million for the year to date period.
We included a cobot 19 update with our earnings release, a supplemental financial information.
All of our MH RV and Marina locations are open, though some have limited access to certain amenities pursuant to state and local guideline.
Our rent deferral program was in place for April through June.
Through that program, we assist at 540 residents with a deferral of approximately half a million dollars Brent.
We also provided assistance in the form a rent credit to annual customers at certain of our RV resorts, where openings were delayed because of shelter and placed orders.
Those credits will be applied to future charges and total approximately $900000.
We've also continued suspension of late fees in the month of July.
Since the outside of the Cobot 19 endemic we have not experienced meaningful negative impact to our rate of rent collection.
For the second quarter, our overall collection rate for our MH RV and Cc properties was 99% consistent with the second quarter of 2019.
Our month to date collections in July our consistent with the collections at this time in April May and June 2020.
Now some comments on debt markets on our balance sheet.
Market conditions stabilize somewhat since our April call current secured financing terms available for MH and RV assets range from 55% to 75% LTV with rates for 2.75 to three and half first ask for 10 year money.
We continue to see lenders place high value on fonts are strength Ngls continues to be highly regarded.
High quality age qualified MH assets will command preferred terms from participating lenders.
Our cash balance after funding our July dividend more than $50 million.
We have available capacity of $350 million from our unsecured line of credit we have approximately $141 million capacity under our ATM program and we have no scheduled debt maturities for the next 12 months.
We continue to place high importance on balance sheet flexibility and we believe we have multiple sources of capital available to us.
Our interest coverage ratio was 4.9 time and our debt to adjusted EBITDAR is five times.
The weighted average maturity of our outstanding secured debt 12, and a half year.
Now we would like to open it up for questions.
Yes.
Certainly ladies and gentlemen, if you have a question at this time. Please press Star then one on your touched on telephone. If your question has been answered and you'd like to move yourself from the Q. Please press the pound key our first question comes from the line of John Kim from BMO capital markets. Your question. Please.
Thanks, Good morning.
I had a strong quarter as far as the collection rate and the RV parks are now almost fully open can you just got why you Didnt reinstitute earnings guidance for the year.
Sure John.
So every year you know as you know we issued guidance well advanced the started the year I think we've historically been among the first two released guidance.
And we're really focused on making certain that.
But the investors appreciate the assumptions that go into the range. We provide we feel very good about our business going forward. It really has shown the true strengths in during this pandemic, but we did feel that with the uncertainty in the regulatory and specifically the health environment. It was prudent your weight to reissue guidance and provided at a time when there is more clarity with risk.
Back to that environment.
Our MH and RV annual revenue line items have per more performed remarkably well.
During these tough time, but the part of our revenue with more moving pieces like seasonal and transient revenue there more difficult to forecast and that really factored into our decision to wait on reissuing guidance.
How much of this decision.
Was based on concerns over the unemployment benefit.
Firing and additional Ghanaian government stimulus.
As long Tibet factor into your decision at all no I mean, I think what I just want to kind of cover there at the end with the seasonal and transient was really the drivers of the decision as you've seen in our in our MH platform.
Really really good collections high occupancy rate.
Great great sales, so so that wasn't.
Well that wasn't really a factor.
Okay, and then last quarter you funded.
Not at the rent increases an unmatched I'm just wondering if that has the that's continued or a few now you're you are increasing ramp.
Yes.
John.
You.
Refer to our June Investor presentation, we had talked about the fact that were reinstating them in June.
In fact, we didn't do that at the end of June. So there was a very brief suspension for the month of April and May on those rent increases, but we effectively how to catch up of those notices in June.
Great. Thank you.
Thanks, Jeff.
Thank you. Our next question comes on line of Samir Khanal from Evercore. Your question. Please.
Yes, hi, good morning Mercury.
Can you talk about the changes you're seeing.
Maybe trends in the properties in Florida.
Arizona, even California, we've seen some.
News report to sort of flare ups and requires any notable changes those properties.
Yeah, I mean, those properties right now for us are in they.
Not as busy season. So you really we have our annual our RV annual there and our RV and our MH. There. So it's not as busy of US season. So it's not not impacting US currently we're certainly looking towards that towards you know how that how that changes and how.
How the virus changes over time, and how that impacts and that's why I touched on impacts our transient and seasonal reservations.
The third and fourth quarter.
Okay, and I guess my second question or is it just on kind of just a general marketing service opportunities that you're seeing.
The acquisition side portfolios, one offs, whether its rvs are and manage I guess what is out there today.
And our expectation sort of on the other side of the blogosphere like sort of six to 12 months, Yes, I mean, I think there if we didnt close on any new communities in the quarter. We are in due diligence on deals and we'll update you on the kind of the timing of the closing.
There is certainly transactions that are happening some transactions are happening in our in that kind of beat the Ali I made space, which we have expressed that were not not necessarily interested in.
But but I see that Theres I think there there are some deals that are coming to market now where people are interested in selling.
I think can you know thats consistent with the in years past, where it's just kind of the timing is right not necessarily having anything that do with the with the pandemic.
Got it okay. Thanks, so much thanks Amir.
Thank you. Our next question comes on line, though John Klatsky from.
Greenstreet Advisors your question please.
Hi, Thanks, Thanks for taking my question just curious on the the uncertainty around the U.S., Canada border being closed.
You know closure being extended is that impacting.
Your early indications are snowbird traffic down will come down into the the southern southern stage or intent to come down any any risk to the seasonal RV demand in the back end of this year.
Sure. So let me give you a little just overview of.
Our Canada, our Canadian customers I think our Canadian overall Canadian revenue of $18 million and a little more than half of that is annual.
And the largest portion of those Canadian customers stay with us in Florida, Arizona and Texas.
It's basically about 7% of our total revenue.
And the first half of the year I think represents about 60% of the full year revenue, so thats kind of already.
Collected in and accrued.
We do have approximately I think it's 98% of the annual RV customer is already has their park bottle RV on site in the South. So then and now we're just kind of dealing with that the seasonal.
Uncertainty on track on the around that travel.
So it's something that where we're watching I don't think it's something that we'll have clarity on until.
The border.
With that border closure with extended to I believe August 22nd or the end of August.
So we'll see in we're watching that closely.
But that but if it's something that something that we're paying attention to it and effects really.
On December and into next year January and February.
Right, but if the borders close.
On the annual aside I understand the than individual homes years still in place, but in terms of rent refunds and pro rated ran that wouldn't be risks to the annual bucket as well right. We haven't we haven't kind of gotten there yet I mean at this point.
In some cases, the big customer and then within Florida right now are in Arizona right now so it's not something that it's not something that we've discussed certainly not something we discussed with our customers yet.
Unlike in your as you remember John in the North there was.
We were not able to open the properties.
And so people couldn't have access the properties. This is not the same people can have access certainly to these properties.
Okay.
And then last one from me I apologize if I missed this in your opening remarks, but could you share how the July transient RV reservation pace.
Taken out versus a year ago sure.
Didnt share at though a happy to.
So our July and I think just.
Not providing guidance, but I want to kind of touch on a couple items relative to what we've seen already not not what we're seeing in the future which is July month to date transient result.
And to put some parameters on that which in 2019 I think that represented about 40% of the third the third quarter.
Inline with last year, so we're tracking last year.
Our online camping pass sales in June.
Increased 100% and then since the beginning of June we've seen an increase in leads from our RV dealer program of about 71% and then our RV dealer Activations increased 20%, so some pretty pretty significant kind of demand indicators that we've seen.
Really since the start of June.
Okay. Thank you thanks, Jeff.
Thank you. Our next question comes from the line Joseph gentlemen from Bank of America. Your question. Please.
Hey, Paul automotive just a follow up on.
Ron's question there on the transient.
Any color you can provide us on maybe forward indicators on that.
These side.
Bookings that you're seeing come through on the Internet.
Sure I mean, we've seen we've seen I think over the last four or five weeks as we've seen significant increases to our booking channels I think in some cases, a 100% increase over the last I think three or four weeks now.
Ill along with those records. We are also seeing some cancellations that that is offsetting some of that some of that new revenue in some locations where were able to operate Ed for where we were able to operate a full capacity, but the surrounding area and attractions are problematic. So we're seeing that we're seeing.
Some issues there.
But at that though so those are the kind of that demand indicators that where that we're seeing.
Okay. Thanks, and then.
In the second quarter, you had elevated costs from co bid of I think there is a million dollars.
Is that.
Is that passed us now or is that kind of going to travel through into the third quarter.
Can you at that run rate until the pandemics over or does with throttled down.
I think what we highlighted the total of 1.4 million a million of which impacted the core.
Space those really represents the.
The nonrecurring.
Fences related to coated.
We focus very closely on the SEC guidance around cobot disclosure and as the team worked very hard to differentiate between.
Really what are one time.
Costs related to development of the protocols are ground operations of the properties at this time as well as.
The employee time off program the property employee appreciation bonuses. So that's not really indicative of excuse me up run rate.
Now the incremental costs that we incurred associated with cleaning, meaning supplies and so forth. Those are included in our expenses and weren't separated or or excluded as cobot related expenses.
The little bit difficult at the moment to kind of project what those will be on a go forward basis, primarily because a lot of it is driven by the experience at the property the timing of the opening of the amenities and so forth.
Okay did you disclose that somewhere in the boat the level of kind of the increased supply.
[music].
Our domestic though.
We did not separately disclose that if it's not a significant amount there was a couple of $100000 in the quarter.
Okay.
Thank you. Thank you both sure thanks Jess.
Thank you. Our next question comes from the line of R.J. Milligan from Baird. Your question. Please.
Hey, good morning.
One of the little bit more color. If you could on the rent increases you guys mentioned that you restated them at the into June and that there would be a catch up so does that imply that third quarter, you're going to see outsized growth from.
Increases.
We won't see outsize growth I think the way that we bring that on the call in April was the suspension to the extent that it continues through the end of the year the impact would be about 50 basis points just doing the math the impact would have been about 50 basis points in rent growth.
I think the three suspension for those couple of months that changes that impact to to being just about 10 basis points on growth.
Okay. That's helpful. Thats, all I have thanks, Thanks Jay.
Thank you. Our next question comes from the line of Nick Joseph from Citi. Your question. Please.
Thanks, just a question on the amenities that are not open up due to some of this state local guideline.
Does that impact pricing or respond.
At all.
Okay. Some of your matter. These just won't be open for use.
Let me let me this Patrick Decker, let me touch first on a nation I'll give that to RV.
On MH fronts.
It's not.
Impacted.
Any sort of.
Session.
On rents.
We have managed through that process at first closing those amenities and then reopening.
We have protocols in place to ensure that youre employees are safe and safely interact with one another and our customers all of our employees are required to wear masks went in proximity to one another our offices by ROI appointment only.
We have clean protocols in place and as I mentioned in the last call we have.
Relationship with a national vendor that specialists and industrial hygiene to ensure that are falling CDC guidelines.
On the RV side of the World and just on the.
Back to the previous quarter.
Yes.
Entities that we are closing really part of.
Properties that were closed.
And that was the driver of the refunds in those instances for animals in the northern campgrounds.
Across the south.
We are out of season right now so it's a lower demand and then at this point.
It's not impacting any sort of rent payments for any of the annual seasonal and transient.
Okay, great. Thanks, and I am just back to the acquisition environment I was wondering specific to our views.
Has there been any disruption or.
Increased opportunities given what happened in the second quarter or on the private side have many owners been able to whether that slot.
I think I think that most have been able to weather the storm.
Hi, there there may be some opportunities just people like I said I think it's just that the time is right in their life time in their cycle.
I don't see a lot of opportunities coming as a result of of of people seeing me in effect because I think the effects were really good.
Both on the MH and RV business save for the transient for a couple of months, then I think people thought that as a once in a lifetime kind of thing and not to be repeated and so so I don't know that there'll be opportunities come at the result of that it's more of a personal kind of preference and people willingness to sell now.
Thank you.
Thanks, Nick.
Thank you. Our next question is a follow up from the line of jump Lasky from Green Street Advisors. Your question. Please.
Thanks, Paul curious how municipalities are approaching property taxes. This year less about the impact from 2020, and just more from a real estate lens any color from on the ground conversations with municipalities.
No direct color.
I don't I don't think for us that translates into.
Delays in timing, although there could be extensions of time for payment.
Not seeing that happen, yes, and.
Not seeing we're not seeing.
Just it's a little bit hard.
The timeframe, though it feels like this has been going on for such a long time, the timeframe really isn't that long and so when you think about the at the typical assessment cycle and so for us that results in the bill that that any any impact on income that may drive evaluations for purposes of the assessors that's no.
Had time to make its way through the through the system.
Okay Theres no there's no chatter in the next call 12 months, where municipalities have default fill a bigger hole in their budgets to kind of come after residential little harder and particularly when other property types really can't carried away.
I mean.
There is there's there's chatter they've been that type of chatter for sometime now I don't I don't.
Don't hear as on the ground being louder than it's been before.
I will say, obviously, California has the the issues that they are working through.
I'm going to setting that aside and thinking about the rest of the country.
And then John we also have are at the level of Florida for instance, where we have the ability to pass through real estate taxes, we have a lot more kind of help.
Yes, I mean in front of local municipalities to did not do that so that it's not that it's not just the big kind of corporate.
Transaction right at the at the level of the property.
Okay. Thank you.
Thanks, Jeff.
Thank you and this does conclude be question and answer session of today's program I'd like to hand, the program back to Marguerite Nader for any further remarks.
Great. Thank you for joining us today, we look forward to updating you on the next quarter's call.
Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.