Q2 2021 Equity LifeStyle Properties Inc Earnings Call
Good day everyone.
Thank you all for joining us to discuss equity lifestyle properties second quarter 2021 results. Our featured speakers today are Marguerite Nader, our president and CEO on C D. Our executive Vice President and CFO and Patrick Waite, Our executive Vice President and C. O O in advance on today's call.
Oh Man had been released earnings today's call will consist of opening remarks, and a question and answer session with management relating to the company's earnings release for those who would like to participate in the question and answer session management assets that you limit yourself to 2 questions. So everyone, who would like to participate has ample opportunity.
As a reminder, this call is being recorded certain matters discussed during this conference call may contain forward looking statements in the meetings of the federal Securities laws.
Our forward looking statements are subject to certain economic risk and uncertainty the company assumes no obligation to update or supplement any statements that become untrue because of subsequent events. In addition, during today's call. We will discuss non-GAAP financial measures as defined by SEC regulation G.
Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release, our supplemental information and our historical FCC funds at this time I would like to turn the call over to Marguerite Nader, our president and CEO.
Yeah.
Good morning, and thank you for joining us today.
I am pleased to report the results for the second quarter of 2021, our properties experienced unprecedented demand in the quarter, our MH revenue RV revenue home sales and subscription revenue exceeded our expectation.
We continued our record of strong core operations and <unk> growth with a 30% growth in normalized <unk> per share in the quarter.
While this great growth rate is significantly impacted by the negative comps from 2020, it represents 28% growth from the second quarter 2019.
New customer growth in both MH and RV contributed to the positive results in the quarter year to date, New home sales grew by 122% contributing to the high quality of occupancy at our MH communities.
Homeowners grew by 179 in the quarter driven by a record number of new home sales.
Our residents recognize the high quality and value of homes in our communities and our especially motivated to buy given trends in the broader real estate market.
We continue to focus on digital marketing and our web site experience as a catalyst for growing our home sales pipeline.
The unique traffic to our website has grown over 35 per cent compared to the same time prior to the pandemic.
Within our RV platform, we saw increased demand during holidays and weekends as well as strength in weekday activity, we saw on increasing customers committing to us on an annual basis.
The resort lifestyle appeal appeals to our customers as they choose and E. L F property for their second home.
We are attracting a larger number of new guests than in previous years, and new customers will look a lot like our pre pandemic guests, indicating stability and our growing customer base.
The number of new customers added to our database during the first half of 2021 is up 25 per cent compared to 2019.
These first time, our viewers are drawn to campaign because of an increased desire to spend time on site and the feeling that camping is a safe activity.
We see our new customers choosing to increase engagement with us.
Our subscription based thousand trails camping pass showed significant growth in the quarter over 8000, new members purchase a campus, which was an increase of 40% over the second quarter of 2020.
We reached a new high with almost 50% of all camp passes being sold online.
With increased RV sales, we saw our RV dealer past Activations increased 39%.
In our customer surveys, our new customers are indicating that they intend to camp more even after returning to other vacation travel, including plane travel and hotel stays.
In 2020 to help support the safety of our guests and team members, we launched a new online checking option for our RV guests since launch over 250000 reservations were completed through the online checking process, allowing them to get to their site more quickly and with less direct interaction.
The 2021, Tripadvisor Traveler's choice awards have been announced and we are pleased that 54 of our properties..1 this year.
26 of those properties our hall of Fame winners as they have maintained a traveler's choice award for 5 years, our guests reported high satisfaction levels based on the experience provided by our teams at our properties.
Based on the second quarter survey results guests responded to customer experience questions with a rating of 4.46 out of 5.
In May we released our annual sustainability report highlighting our commitment to American forest and Marine life as well as our ongoing projects centered around energy efficiency at our properties.
We have increased our efforts to bolster diversity through our CEO action pledge expanded learning curriculum and recruitment effort. The report highlights all the ways that we unite people places and purpose within our communities.
I want to thank our team members for continuing to focus on delivering excellent customer service to our residents members and guests. We are halfway through our primary campaign season and the feedback. We've received is a testament to the hard work from our teams in the field and in the home and regional offices.
I'll now turn it over to Paul to walk through the numbers in detail.
Thank you Marguerite and good morning, everyone I will review, our second quarter results highlight our guidance assumptions for the third quarter and full year, 2021, and discuss our balance sheet and debt market conditions.
For the second quarter, we reported 61 cents normalized <unk> per share <unk> <unk> ahead of the midpoint of our guidance range.
The main drivers of outperformance compared to our guidance, where core RV rent revenues and membership revenues, including upgrade sales.
Our core MH rent growth of 4.7% consists of approximately 4.1% rate growth and 60 basis points related to occupancy gains.
We have increased occupancy of 153 sites since December with an increase on the owners of 283, while renters decreased by 130.
While our occupied sites increased during the second quarter, our reported occupancy percentage reflects the impact of expansion sites, we've added to our portfolio.
Core RV resort base rental income from annuals increased 7.5% for the second quarter and 5.6% year to date compared to the same periods last year.
Annual RV rate increases continued to be in line with our expectations.
Increased occupancy from annual RV residents in our northern properties with higher than expected during the quarter.
The average annual rates in these locations are lower than our southern and western resorts. So the increased occupancy slightly reduced our core portfolio average rate.
For the quarter RV rent from seasonal increased 31% and rent from transients increased 180% compared to 2020.
The comparison to prior year is impacted significantly by Covid related property closures and shelter in place orders that were in effect during the second quarter 2020.
Strong demand in the quarter as evidenced by seasonal and transient growth rates of 19% and 50% respectively over 2019.
Membership dues revenue increased 10, 1% from 7.2% for the quarter and year to date, respectively compared to the prior year.
Year to date, we've sold approximately 13000.500000 trails camping pass memberships.
This represents a 50% increase over the same period in 2020, and an increase of 30% to 32% over the same period in 2019.
The net contribution from membership upgrade sales year to date is $5 million higher than 2020.
During the quarter members purchased more than 200 upgrades at an average price of approximately $7400.
Core utility and other income was higher than expected during the quarter as a result of the receipt of insurance proceeds related to hurricane Hana in 2020, we.
We recognized approximately $2.3 million of income in the quarter related to that storm events.
Core property operating maintenance and real estate tax expenses were generally in line with our expectations for the quarter.
Higher than expected utility expenses were offset by lower payroll expense as we face challenges filling open positions across the portfolio.
The comparison to second quarter 2020 shows an elevated expense growth rate as a result of the Covid related limited operations conducted across our portfolio during the second quarter last year.
In summary, second quarter core property operating revenues increased 14, 9% and core property operating expenses increased 13, 9%, resulting in an increase in core NOI before property management of 15, 6% for.
For reference the second quarter core NOI growth CAGR from 2019 is 8%.
Income from property operations generated by our noncore portfolio was $5.2 million in the quarter.
This result was higher than our expectations in part because of the NOI contributed by Pine Haven, the RV resort, we acquired during the quarter.
Revenues from annual customers at the marinas and other properties in the non core portfolio generated more than 90% of total non core revenues in the quarter and year to date periods.
Property management and corporate G&A expenses were $26.8 million for the second quarter of 2021, and $52.7 million for the year to date period.
Other income and expenses generated a net contribution of $5.7 million for the quarter.
New home sales profits along with a recovery in our ancillary retail and restaurant operations contributed to an increase of $4 million in sales and ancillary NOI compared to the second quarter 2020.
Interest and related loan cost amortization expense was $27.1 million for the quarter and $53.4 million for the year to date period.
The press release provides an overview of third quarter and full year 2021 earnings guidance as.
As I provide some context for the information we provided keep in mind. My remarks are intended to provide our current estimate of future results all growth rates and revenue and expense projections represent mid points in our guidance range and are qualified by the risk factors included in our press release and supplemental financial information.
A significant factor in our guidance assumptions for the remainder of 2021 is the level of demand for transient stays in our RV communities.
We have developed guidance based on our current customer reservation trends.
We provide no assurance that our actual results will be consistent with our guidance and we assume no obligation to update guidance as conditions change.
Our full year 2021 normalized <unk> is $2.47 per share at the midpoint of our range of $2.42 to $2.52 per share.
Normalized <unk> per share at the midpoint represents an estimated 13, 4% growth rate compared to 2020.
Core NOI is projected to increase 7.9% at the midpoint of our range of 7.4% to 8.4%.
The core NOI growth rate increase from our prior guidance is mainly the result of our second quarter outperformance.
Our expectation for the third and fourth quarters has been updated to include MH occupancy gains in the second quarter current RV reservation trends and expense adjustments based on year to date activity.
As a reminder, we make no assumptions for storm events or other uninsured property losses, we may incur.
Our guidance for the full year and third quarter includes the impact of the acquisition activity. We've closed in the first and second quarters with no assumptions for additional acquisitions during the year.
We've also included the impact of the financing activity, we've disclosed including the recast of our unsecured credit facility.
We expect third quarter normalized <unk> at the midpoint of our range of approximately $119.5 million with a per share range of 59 to 65.
We expect the third quarter to contribute 25% of full year normalized <unk>.
We project a core NOI growth rate range of $8.7 to 9.3%.
MH and RV annual growth.
Rate growth assumptions for the third quarter and full year remain consistent with our prior guidance.
We've built our transient RV revenue assumptions for the third and fourth quarters using factors, including current reservation pace compared to both 2020 in 2019.
Our guidance for the third quarter assumes a growth rate of approximately 23% compared to 2019.
This represents a core transient RV revenue increase of approximately $3.5 million compared to 2020.
Our fourth quarter assumptions include a reopening of the Canadian border and return of those customers for the upcoming winter season.
Now some comments on debt markets on our balance sheet.
Current secured debt terms available for MH and RV assets range from $50 to 75% LTV with rates from 2.5% to 3.5% for 10 year maturities.
High quality age qualified MH will command best financing terms.
RV assets with a high percentage of annual occupancy have access to financing from certain life companies as well as the MBS lenders.
Life companies continue to quote competitively on longer term maturities.
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 is 5.4 times and our interest coverage is 5.4 times.
The weighted average maturity of our outstanding secured debt is approximately 12.5 years.
Now we would like to open it up for questions.
Thank you.
Binder to ask a question you will need to press star 1 on your telephone to withdraw your question press the bundle Keith Please standby, while we compile the Q&A roster.
Our first question comes from Brad Heffern with RBC capital markets. You May proceed with your question.
Hey, good morning, everyone. Thanks for taking my question.
Just to start on the transient guidance you have the $3.5 million increase.
You have the strong fourth of July I know the first quarter was up about $2.5 million on a number that wasn't really COVID-19 affected. So can you just walk through.
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Kind of what's behind that number and if there's upside to it.
Yes, I think the.
The $3.5 million.
For the quarter as I said, it's based on our current reservation pace does incorporate the fourth of July that 20% translates into about $400000 of of growth.
And as we look at the current pace compared to 2020 in 2019.
That's that's the estimate that we have right now.
Okay got it and then maybe switching to acquisitions can you talk about the cap rate on that Pine Pine Haven acquisition, and then just any thoughts on general across the 3 businesses on on how the acquisition market looks.
Sure. So we closed on the property Pine Haven in Cape May.
It's very well located near other E L F assets and.
And just to give you a sense of it hits about 91% occupied biannual.
And so with that highly annualized revenue base and the cap rate for the transaction with 5%.
With respect to going forward. This year, we've deployed I think about over $350 million of capital into 14 properties.
And our acquisition tank team does a great job of underwriting all the deals.
It's really difficult to say when properties are going to close but as we currently have them in various states in the acquisition process.
Okay. Thank you.
Thanks, Brad.
Okay.
Thank you. Our next question comes from Keegan call with Bahrenburg. You May proceed with your question.
Hey, guys. Thanks for taking the questions I know this was touched on earlier, but could you give us a little bit more color on what was driving the core RV annual rate growth guidance down was it exclusively just.
Gordon Northern bookings was there something else on there.
Yes.
It really is the change in the occupancy mix. So as as I think I explained maybe on the it was either the January of the April call, 90% of the residents in the annual residents in the RV footprint.
Notified of their rate increased by last fall so that that increases is pretty steady throughout the year.
But as we noted in the quarter as we see kind of a change in the occupancy mix. It does have an impact on the weighted average rate.
Okay, but theres not theres nothing we should be worried about as far as like downside or concerns out since in other and.
In other regions, it's just because of the weighting to the north.
That's correct, yes, right and there is an increase in overall annual occupancy and it's just waiting on the rates is different.
Yep, Okay great.
And then I.
I think kind of going back to transient could you give us the breakout of what was a function of volume versus price in the quarter.
Is it 1 or the other that's kind of standing out.
I think similar to what we just discussed on the annual side, what we've seen on the transient side is a shift in the mix as well so the demand.
The demand on the transient was very strong in some of our higher price locations like the Florida keys.
And so the the rates contribution is a pretty heady number frankly, but it is a function of where people stayed rather than an increase in the rate implemented at.
Individual locations.
And it was also a function of increased in cottage stays which is a higher price point.
Okay, Great and then just kind of fully come on transient.
Can you give us kind of a feel for bookings quarter to date outside of the fourth do you guys feel like its trending well above 2019, or how should we think about that.
Yes, I think I mean, just again to the 20% number that we talked about for the fourth of July.
The $3.5 million represents 23% over 2019 for the quarter.
And as we've thought about the third quarter guidance and looked at actual results for Q3.2019, as we took a look at the percentage of full quarter revenues essentially day.
It looked at the same time in each point in the year.
<unk>, where we're tracking to those to those results.
Okay. That's it from me thanks for your time guys.
Thank you.
Thank you. Our next question comes from Nick Joseph with Citi. You May proceed with your question.
Hey, good morning, it's Michael Bilerman here with Nick.
So just had a question either Marguerite or Paul you talked a lot about sort of on the new customer activity and you mentioned that the new customers look a lot like your existing customers.
So I'm wondering if you can maybe spend a little bit of time talking about new customers that are different are you tapping into any new segments.
On the RV or MH side, either customer type customer demographics customer incomes debt is different from what you are seeing before and potentially could be stickier or or not maybe theyre not having a great experience and they're not going to continue so just trying to really understand sort of the customer dynamics going on.
On.
Okay sure. Thanks, Michael.
Patrick can talk a little bit about the millennial customer, but why don't I just focus a little bit on the customers the new customers that did come to us this year.
That came to us during the pandemic in terms of.
How they acted the first timers, we call them they've returned and they have on future reservation on the books right now I think it's 1 in every 7 are currently a seasonal or annual or a member.
This percentage is in line with what we've seen before it's shifting overall number is higher its generating a higher revenue.
But the first timers, who return they've become either a thousand trails member focused on the southeast or the southwest and then the first timers, returning is seasonal and annual Theyre concentrated in Florida, California, and the northeast.
Yes, Michael So as Ed and then just before we switched the millennials is there are those customers are acting the same.
Your other first timers are you getting a better sort of.
Sort of recapture rate.
They're actually the percentage that I quoted there was in line. Although the number is higher so they're if they're acting similar to kind of a pre pandemic. So just just to kind of point out the stickiness of the of the new customer.
Alright, so the sheer amount of customers has increased and that's what's in there and theyre acting the same in terms of continuing with you, which should then just driving that overall stability in that rental stream sorry, Patrick go ahead.
No that's all right.
I guess to reiterate it.
It's a shift.
It's having an effect on a significant base on our core customer.
But just with respect to those new customers and in particular.
Yogurt generations.
Nearly 2 out of 3 firsthand campers were under age 40 that just high level in the in the industry itself as well as millennials, making up the largest generation of camping households, it's almost 40% of camping households in the United States today Thats based on a annual survey by KLA. They cover a lot of the.
The key demographics in the asset class so that reflects what we're seeing in our cam per ounce based on surveys.
Campers new campers in particular, we're seeing younger campers younger families.
Of them traveling with younger children and something that frequently comes up in the RV space their pets when by patch that typically means dogs. So.
Thats.
Just qualitatively what we're seeing in our new customers and then also touch on our engagement on so.
Actual media, we grew our new fans and followers on social media by almost 30%. That's due a total base of fans and followers of more than 900000 on Facebook Instagram Twitter and Pinterest on most of that growth for the quarter came from Instagram video content.
And we've also reached out and I think our team does a very nice job in connecting with celebrities we've had guy fieri stay at our properties as well as the celebrity couple Michael Trevino in greater China, and these stayed with US recently and that helps to just kind of firm up the status of our brand.
But to be honest, we had to look up who the people at the end.
Yes.
Okay.
But they are celebrities nonetheless.
Thanks.
Mike just 1 other question I just wanted to go back to the transaction market.
Im wondering if youre seeing new entrants into the space at all and how that's impacting.
Maybe you know how many people are showing up for these opportunities.
We haven't seen new a new major players in the last in the last year or so I would say of course, we've talked in the past about all of the day, new players that have shown up over the last 5 or 6 years, but nothing new in the recent in the recent past.
There are a.
These assets are highly sought after and highly marketed.
Yeah.
Thanks.
Thank you Nick.
Yeah.
Thank you. Our next question comes from Samir Khanal with.
Evercore ISI you May proceed with your question.
Hi, everyone. Good morning, So I guess Marguerite can you provide a little bit more color around what growth has been like I guess in the Marina business year to day.
As things have started to reopen and normalize here.
I think you have close to 25 marinas today with the acquisition just trying to figure out how that segment is tracking.
Versus our share either MH.
Sure so our more our marina portfolio in the quarter.
Performed in line with our expectations and we generally have long term revenue streams.
Updating the technology for our.
For our customers and what we're seeing is at.
About.
4% growth in in revenue on the Marina side.
Okay.
Got it. Thank you and then I guess my second question is around transactions.
Clearly.
Bidding is very aggressive on on that front I mean, where is the opportunity set for you today. When you kind of look at maybe over the next year or is it the Marina side is it the RV side I mean, how should we how should we be thinking about that yes.
I mean, I think debt that we certainly as we look at our acquisition pipeline, we certainly have opportunity on.
MH RV and marine aside.
Like I mentioned earlier difficult to know when a particular asset is going to close.
I think that certainly there are there are a lot more people that are interested in general over the last 5 years on.
New.
New entrants into the market, but we have long term relationships with with owners, which certainly gives us an advantage to at least starting the conversation in many instances that still ends up in a in a bidding process, but I think there are still opportunities. There is certainly still a lot of opportunities out there as you can see from.
What we've done year to date.
Got it and then I guess my final question is have you seen any sort of inflationary pressures.
In the business today.
I think that.
Overall, Samir we have seen.
Inflationary pressures, we've seen pressure on wages.
It's offset somewhat by the challenge in attracting.
Recruiting employees.
We are facing similar challenges to many who are trying to recruit hourly employees today.
Wages are definitely increasing.
And that is also translating into R&M expense and with those.
Third parties that we engage for landscaping and other activities at our properties.
And then just overall energy costs.
Are pretty volatile.
Especially given the severe weather patterns that we've been seeing the demand on energy.
Significant across the country and we're seeing that play out in our utility expense.
Okay got it thank you.
Thank you from here.
Thank you. Our next question comes from Michael Goldsmith with UBS. You May proceed with your question.
Good morning, Thanks, a lot for taking my question.
Question on kind of on the guidance.
You beat the high end of your guidance in the quarter. Your full year went up by more than that so what are the changes in your assumptions for the back half of the year is there anything else there other than on the transient RV side.
It's.
The second half of the year as I mentioned.
Core occupancy so we don't make an assumption just in our standard guidance, we don't make an assumption for future occupancy gains, but on a quarterly basis, we do update for occupancy that we have gained during the prior quarter. So we've done that.
We've adjusted our RV.
Revenue growth assumptions.
As I mentioned, that's expected to be $3.5 million higher than last year and then we did have some adjustments to expenses, but I'd say the revenue drivers are the most significant.
Thanks for that and then clearly there is a lot of strength on the transient RV business and the membership subscriptions.
If you look back historically at times with elevated RV demand how sustainable are captive as this group so it drives the business in future years.
Looking forward does that does that show up through your annual revenues I guess.
Said another way like 10, RV revenues remain at these new elevated levels.
Going forward.
Sure So Michael welcome to the call by the way. Thanks for thanks for joining us on the call.
Yes.
Hi.
As we look ahead years ago, a few years ago. It was our installed base was $9 million on <unk> now, it's 11 million.
And in total across the United States, there's about $1 million RV sites.
So that's it.
Debt ratio bodes very well for us.
And we really see it as a transition going from transient to seasonal to an annual and youll see that throughout our portfolio.
And we've certainly seen an increase in members over the last thousand trails members in subscription based revenue over the last couple of years and I think that just comes from the demand in rvs overall and the demand.
For kind of getting out and getting out and about <unk> been on being outdoors with your family.
And just if I could squeeze 1 last 1.
Maybe it's similar to Brad's question at the beginning but is there anything to read into the July 4 weekend being up 21% relative to 2019, while on Memorial day was up 30% on because you're starting to see a deceleration here.
I think what you saw there is moral day weekend last year was effectively closed in many areas of the country July 4th last year, we were way more open and where people were moving about the country much more much more able to move about the country.
Thank you.
Thank you.
Thank you. Our next question comes from Wes Golladay with Baird. You May proceed with your questions.
Hey, good morning to everyone. Just a quick question on how much of your business is on the books now for the quarter for the transient segment.
Okay.
Certainly fourth of July as I said is up about $400000 just in terms of the way that we think about it.
Labor day is a big weekend for us as well.
Yes.
The interesting thing about it is how August and September will develop.
Weather is a huge factor.
And so to the extent that we have.
We have.
Or whether there's going to be impact on on.
On the next couple of months, so I think that.
It's not it's not quite a third a third a third.
In terms of the 3 months in the quarter because September typically drops off but I have to say last year in September was a very strong month for us because the weather was good and people were able to be out at our properties and west of the booking window can be pretty tight so.
<unk>.
We can fill that they may be Thursday, or Friday before you know how it's how it's shaping up.
Yes, I guess I'm trying to find my question I guess is the I'm trying to get out is that where the surprises come on the last 2 quarters as those near term bookings is that where youre seeing it.
Right, that's exactly that's exactly where it is and we're seeing an increase as I mentioned in weekday traffic that we hadn't seen.
On a pre pandemic basis.
Got it and then can I get.
I guess would you have the number of what the revenue uplift is taken a transient to seasonal and then seasonable too on annual.
I mean, I think that it depends on a property by property basis, because it really does.
And where you are in the air.
Area of the country and we can circle back with you and kind of provide some guideposts on a on a.
Kind of around the horn basis, we don't have that in front of us right now.
Okay. Thanks, I'll follow up and then have you started any developments year to date and do you have many going on right now.
Yes, and we're tracking to mentioned on previous calls our 1000.1100 sites.
To be delivered for the full year.
On that will represent roughly a dozen projects.
Thats tracking basically in line with our previous share, which is around debt 10, or 11 projects and about the same number of sites.
And are those mostly expansions are those ground up in there.
Those are mostly expansion there is initial.
The initial phase of 1 ground up but predominantly those those are driven by expansions and it's skewing a little bit towards for RV for debt for 2021.
Thanks, a lot.
Sure. Thank you.
Thank you. Our next question comes from John Kim with BMO Capital markets. You May proceed with your question.
Thank you.
On thousand trails, it looks like your membership.
Increase was the most in at least a decade.
Can you remind us what the typical renewal rate is from members.
Sure we have about a.
90% renewal rate on members. So we have 10% of the members falloff in any given year.
Do you expect that rate to continue on.
On the next 12 months or do you think it will be more volatility just given.
How many new members joined.
Sure.
I don't see that debt rate really that attrition rate hasnt changed much from and we've gone through many different cycles and it hasnt changed it doesn't vary very much over time.
On.
That we sold a lot of campuses as I mentioned.
In the quarter and that marks that also marks a high watermark for sales since we started this 10 years ago.
And but it's been great debt net 50% of those deals where online is really efficient method.
First day sales method and it still continues to be a very sticky customer base.
And Marguerite can you remind us is there seasonality when you add members I know in past years, you provided a guidance for the year at this time you providing real on.
Date member accounts, but do you typically add more members in the second third quarter per year.
Is this.
The summer is a big season for us for adding new members and then it trails off a little bit in the as you head into the winter.
Yes.
Okay.
Looking at your Marina business is it fair to assume debt most of the leases are annual leases and that seasonal and transient I'm.
Im just comparing your core versus your total.
Brian a business.
Yes, more than more than 90% of the revenue comes from annual customers in the Marina portfolio that we have.
And so what was the occupancy on the Marina.
I think we're like 90% or 91%.
Okay.
On the topic of the occupancy can you provide the occupancy for the transient RV.
Business on the second quarter and would you expect it to be for the remainder of the year.
We don't really quote on occupancy statistic on the transient John because the mix of sites changes as we use sites for seasonal they may become transient and we may fill a site that is a transient with annual.
So that's a that's not a metric or a statistic that we that we track or provide which is what you saw in China is doing in the first quarter when we had.
Difficulty filling the seasonal.
From the Canadian aspect that Canadian customer base, and then they became transient.
That's 1 of the reasons, it's difficult to quote that number what about like a total occupancy number then from RBC.
Yes same.
Same thing we don't we don't.
We don't track or we don't we don't quote a number for that purpose, but we provide johnny on the in the supplemental it shows the number of sites that are transient and that does adjust every quarter.
Okay.
I might've missed this but have you provided or can you provide an update on your expansion site.
Delivery expectations for this year.
Yeah, it should be around 1.
100.100 sites.
For the full year.
Okay great.
Great. Thank you.
Thanks, John.
Thank you. Our next question comes from Joshua <unk> with Bank of America. You May proceed with your question.
Yeah, Hey, Marguerite Hey, Paul.
You guys are doing well on.
I saw the new home sales the volume looks like it was up a lot and then the gross revenues were up as well.
Curious if there's any underlying theme that you're seeing driving that and if you expect it to kind of continue to tick higher core across the rest of the year.
Yes, let me I'll take the volume first.
The volume obviously was up significantly.
More than double over the same time last year.
So we're really seeing is strong demand from homebuyers.
So a big driver of debt increase was us selling homes to meet increased buyer demand.
Some of that is just a mix of sales and rentals.
You look at Q1, our rentals were for the most part in total flat year over year.
For Q2, they were down more than 100.
And a piece of that is really just more buyers coming through the door interested in purchasing a home as opposed to renting.
So that's kind of a high level on.
On the unit Count and then just with respect to sale price.
Price was up almost 30% year over year on.
Some of that is really driven by mix of some higher priced units and that will happen just depending on where transactions are happening in a particular quarter.
If we look at similar models year over year, Theyre up roughly 10% from a sales price perspective.
Thanks, Patrick and I apologize for not saying hi to you at.
At the beginning.
Okay.
Yeah.
<unk> cash.
Curious.
Curious like that 10% kind of same.
I guess same kind of unit.
Number you quoted like do those.
Those unit price is kind of track the overall home price price market.
From that basis, I know, we've seen significant gains so I guess from my perspective, I'm trying to say.
Keep seeing.
Built homes.
<unk> go up and it becomes Super competitive maybe you end up with more customers.
Yes.
I would say that in any particular submarket at a minimum that will be directional.
Just high level. The case Shiller was up 16% for the quarter was up 12% for the quarter look in Q1.
So we're seeing it kind of a similar trend.
When I said, 10% were actually up 11% for the second quarter and in Q1, we were up 6%. So youre seeing an acceleration in net pricing.
Just based on that high level of demand.
Okay Awesome and then.
I noticed that if I look at if I look at your annual RV same.
Same store versus 2019 levels it looks like.
A fair bit I'm, assuming some of that might be just the same store pool change but is there.
Something else starting net like conversions.
The big increase in conversions from 2019, or maybe just like it did great growth.
Okay.
Is there anything to that or.
Macro.
Well there is.
Certainly an uptick in occupancy Josh there is also in part of that is the contribution from the expansion sites that we've added.
Thanks for that.
That's driving that.
Okay.
Awesome.
Thank you guys appreciate the time.
Thanks, Josh.
Thank you and as a reminder that day.
You will need to press on 1 on your telephone.
Our next question comes from John Pawlowski with Green Street, You May proceed with your question.
Hey, Thank you for the time Patrick are Marguerite could you give me a sense for how meaningful the shift in weekday bookings have been in if it's enough of a needle mover to change how you think through the risk of the transient business because ostensibly that would put a little bit more put a little less pressure on we then.
We even the needle on a on.
On a on weather.
Right.
Yes, I mean, we've seen increase it's probably been a for a 5% increase overall in the Inc.
The Knights and occupancy so thats.
So I don't think that changes.
Changes the metric is how we think about transient overall and we also think that there is some amount of.
Work flexibility thats factoring into that and that seems to be changing over time here as people return to office.
Okay. So in the past you've kind of made the claim that are the statement that transient RV parks youre kind of mispriced relative to annual or relative to MH in a post COVID-19 world with more work from home flexibility.
You still standby that are transient RV is becoming more interesting at current pricing.
Well I think that I think that we will always.
Tend to want to invest in assets, where you have.
Long term, our long term customer base.
You don't have to kind of go out and market every weekend for.
So I would still standby the annual seasonal business stickier business more high quality cash flow.
What you see on the transient side on the transient side in certain locations, where it's extremely well located.
And.
There may be there may be an opportunity there, but but for the most part.
We will be sticking with the annual seasonal business debt.
Yes, very well.
Okay.
Thanks very much.
Thanks, John.
Thank you all for joining US today, we are available for any additional questions have a great rest of the summer.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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