Financial Data and Key Metrics Changes - Year-to-date NOI increased by 5% compared to the previous year, with normalized FFO growth per share at 5.7% [4][5] - Second quarter normalized FFO was $0.69 per share, aligning with the midpoint of guidance [17] - Core NOI growth for the second quarter was 6.4%, exceeding guidance by 70 basis points [18] - Year-to-date core property operating income growth is projected at 5% [22] Business Line Data and Key Metrics Changes - The manufactured housing (MH) portfolio generated revenue growth of 5.5% in the quarter, with occupancy over 94% [6][11] - Annual RV revenue grew by 3.9% year-to-date, driven by retention across various accommodations [7] - Core RV and Marina annual base rental income increased by 3.7% in the second quarter [19] Market Data and Key Metrics Changes - Approximately 70% of annual revenue comes from Sunbelt locations, catering primarily to active adults [8] - The company has seen a decline in seasonal and transient rental income, with decreases of 5.6% and 8.6% respectively [19] Company Strategy and Development Direction - The company maintains full-year guidance for FFO per share, supported by strong demographics for MH and RV portfolios [5] - Strategic investments are being made in communities to enhance long-term success, including adding new home inventory [11] - The company is focused on maintaining high occupancy rates and stable revenue streams through community engagement [6][10] Management Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model, particularly during periods of market uncertainty [5] - The company expects to see consistent demand across the MH portfolio, with rate increases planned for the upcoming year [40] - Management remains optimistic about the RV business, despite recent turnover and occupancy challenges [34][41] Other Important Information - The company has no secured debt maturing before 2028, with a well-positioned balance sheet [25] - The company closed on a $240 million unsecured term loan to enhance capital flexibility [26] Q&A Session Summary Question: What caused the revised outlook for core RV Marina revenue? - Management noted that occupancy was the primary driver of the miss, with higher attrition rates in the North and Northeast impacting results [34][35] Question: How does the weakness in RV growth affect pricing power for 2026? - Management indicated that consistent demand remains, and they will establish budget rates for 2026 in the upcoming months [40][41] Question: What is the impact of Canadian customers on demand? - Management observed a lower take rate on early bird reservations from Canadian customers but expects demand to pick up as the season changes [49][50] Question: Can you explain the turnover in the annual RV segment? - Management confirmed that turnover was elevated in specific properties, primarily due to storm damage and seasonal factors [60][61] Question: What is the outlook for home sales for the rest of the year? - Management noted that home sales are currently lower than pre-COVID levels but are in line with historical averages [76][78] Question: What is the expected timeline for backfilling lost occupancy in the annual RV segment? - Management indicated that lost occupancy would be targeted for recovery in the next year through marketing efforts [94] Question: What is driving the reduction in property management and G&A guidance? - The reduction is primarily due to compensation savings from open positions and expected savings from legal and administrative expenses [96]