Financial Data and Key Metrics Changes - The company reported a normalized FFO growth of 4.6% for the third quarter, aligning with expectations [4] - Third quarter normalized FFO was $0.75 per share, consistent with guidance [14] - Full year 2025 normalized FFO guidance is maintained at $3.06 per share, representing an estimated growth rate of 4.9% compared to 2024 [17] Business Line Data and Key Metrics Changes - Core community-based rental income increased by 5.5% for the third quarter compared to the same period in 2024 [14] - Core RV and marina annual base rental income rose by 3.9% for the third quarter and year-to-date compared to the same periods last year [15] - Seasonal rent decreased by 7% and transient rent decreased by 8.4% year-to-date in the core portfolio [15] Market Data and Key Metrics Changes - The Florida manufactured housing portfolio reached 94% occupancy, with marked market rent increases of 13% for new home buyers [9][10] - Arizona and California markets are 95% occupied, attracting home buyers due to desirable locations and quality amenities [10] - Canadian reservations are down approximately 40% compared to the prior year, impacting seasonal and transient revenue [33][34] Company Strategy and Development Direction - The company is focused on expanding its manufactured housing portfolio, expecting to issue rent increase notices to 50% of residents by the end of October, with an average increase of 5.1% [7] - The strategy includes leveraging technology to enhance customer engagement and adapting to evolving preferences [6][7] - The company aims to add about 400 to 500 expansion sites this year, which is lower than previous years but deemed sustainable [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of property operations and FFO, with expectations for continued growth in 2026 [4][8] - The anticipated rent increases are expected to support long-term revenue growth, reflecting the commitment of the operational team [8] - Management acknowledged the impact of external factors, such as political issues affecting Canadian customers, but remains optimistic about future reservations as weather conditions change [26][76] Other Important Information - The company has no secured debt maturing before 2028, with a debt-to-EBITDA ratio of 4.5 times and interest coverage of 5.8 times [20] - The company is maintaining a focus on balance sheet flexibility and has access to over $1 billion in capital [21] Q&A Session Summary Question: Can you talk about the 2026 rent increases process? - Management explained that the process for setting MH and RV rate increases involves reviewing competitive sets and is consistent with previous years [24] Question: What is the success rate of reaching out to Canadian customers for reservations? - Management noted that the cold winter season typically drives reservations, and they expect an increase as winter approaches despite current political issues [26] Question: How does the guidance for seasonal transient revenue account for Canadian demand? - Management clarified that the current Canadian reservation pace is down 40%, impacting revenue expectations for the fourth quarter [34] Question: What is the outlook for occupancy trends in the MH portfolio? - Management indicated that occupancy has increased in the quarter, recovering from previous impacts of hurricanes [48] Question: How are expenses being managed in light of transient revenue declines? - Management highlighted successful expense containment strategies, particularly in payroll and insurance costs, while acknowledging fixed expenses at the property level [62]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.76 for the quarter, exceeding the high end of guidance [6][15] - Total North American same property NOI grew 4.9% in the second quarter, driven primarily by the manufactured housing portfolio [6][11] - The company paid down approximately $3.3 billion of debt, significantly improving its balance sheet position [4][15] Business Line Data and Key Metrics Changes - Same property manufactured housing NOI increased 7.7%, with occupancy up 60 basis points to 97.6% [12] - Same property RV NOI declined 1.1%, driven by a 0.9% revenue increase offset by a 3.1% expense increase [12] - In the UK, same property NOI increased 10.2%, with revenue up 9.5% [13] Market Data and Key Metrics Changes - The UK portfolio showed strong demand, with expenses up 8.8% due to a national minimum wage increase, partially mitigated by cost savings initiatives [13] - The company is evaluating acquisition opportunities in strong markets with attractive supply-demand dynamics [5][20] Company Strategy and Development Direction - The company completed the sale of Safe Harbor Marinas, repositioning itself as a pure play owner and operator of manufactured housing and RV communities [4] - The company is focusing on driving top-line growth while maintaining expense efficiency, with a disciplined approach to managing operating expenses [11][14] - The appointment of Charles Young as the new CEO is expected to guide the company through its next phase of growth [7][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong foundation and future growth potential, emphasizing the importance of operational excellence and team development [7][22] - The company raised its full-year 2025 guidance for FFO per share to a range of $6.51 to $6.67, reflecting second-quarter outperformance [19][20] Other Important Information - The company returned over $830 million to shareholders through special cash distributions and share repurchases [5][18] - The company received two credit rating upgrades during the quarter, reflecting its deleveraging progress and balance sheet strength [19] Q&A Session Summary Question: Expectations about 1031 acquisition volume and tax considerations - Management indicated no expected adverse tax impact from releasing funds out of the 1031 exchange accounts and identified approximately $565 million of potential acquisitions [25][26] Question: Trends in transient RV business - Management noted that transient RV revenue headwinds are mitigated by success in converting transient sites to annual sites, and they continue to flex operating expenses [28][30] Question: Annual membership renewals - Renewals are spread throughout the year, with peaks in early and summer seasons depending on the location [32] Question: Outlook for MH home sales - The company expects stability in long-term cash flows due to high occupancy and low resident turnover, similar to the first half of the year [34] Question: Economics of UK ground lease purchases - The acquisition of ground leases creates financial flexibility and eliminates future rent escalations, improving long-term economics [37] Question: Share repurchase program attractiveness - The share buyback program is one of several capital allocation tools, alongside strategic reinvestment and acquisitions [77] Question: Future development and expansion opportunities - The company is not pursuing new greenfield projects but is evaluating a few expansion projects that meet return hurdles [80][81]