Financial Data and Key Metrics Changes - Year-to-date NOI increased by 5% compared to the previous year, with normalized per share FFO growth of 5.7% [5][6] - Second quarter normalized FFO was $0.69 per share, aligning with the midpoint of guidance [18] - Core NOI growth for the second quarter was 6.4%, exceeding guidance by 70 basis points [19] - Full year normalized FFO guidance maintained at $3.06 per share, representing an estimated 0.9% growth compared to 2024 [22][23] 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% [7][12] - Annual RV revenue grew by 3.9% year-to-date, driven by retention across park models and RV accommodations [8][15] - 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 to active adults, primarily retirees [9] - The company reported a decline in seasonal rent by 5.6% and transient rent by 8.6% year-to-date [19] Company Strategy and Development Direction - The company focuses on maintaining high occupancy and revenue growth through strategic investments in new home inventory [12][13] - Continued development of MH and RV sites, with 1,500 MH sites and 2,900 RV sites delivered over the last five years [17] - Emphasis on community engagement and customer retention to support long-term value creation [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model amid broader market uncertainties, supported by strong demographics [6] - The company expects to see consistent demand across the MH portfolio, with a focus on rate increases in the upcoming quarters [42] - Management acknowledged challenges in the RV segment due to higher turnover rates in specific regions but remains optimistic about future demand [36][44] Other Important Information - The company has no secured debt maturing before 2028, with a well-positioned balance sheet [26] - The company closed on an unsecured term loan of $240 million, enhancing liquidity [27] Q&A Session Summary Question: What caused the revised outlook for core RV Marina revenue? - Management noted that the annual customer base is split between winter and summer seasons, with occupancy impacting guidance for the remainder of the year [31][32] Question: How does the weakness in RV growth affect pricing power for 2026? - Management indicated consistent demand across the MH portfolio and expects to establish budget rates for 2026 in the upcoming months [41][42] Question: What is the impact of occupancy loss on future revenue? - Management clarified that the occupancy change was negligible, with low delinquency rates maintained [46][47] Question: What are the expectations for home sales moving forward? - Management acknowledged lower sales but indicated that this aligns with pre-COVID levels and is influenced by inventory mix [77][78] Question: How is the transient RV Marina business expected to stabilize? - Management stated that the transient business is volatile but remains a feeder for the annual business, with new properties being added [113][114] Question: What is driving the reduction in expense guidance? - The reduction is primarily due to compensation savings from open positions and expected savings from legal and administrative expenses [98][99]