Financial Data and Key Metrics Changes - The company reported a full-year growth in NOI of 4.8% and a 5% increase in normalized FFO per share for 2025 [3][15] - Fourth quarter normalized FFO was $0.79 per share, and full-year normalized FFO was $3.06 per share, representing 4.2% and 5% growth respectively compared to the prior year [15][16] - The annual dividend rate was set at $2.17 per share, marking a 5.3% increase and the 22nd consecutive year of annual dividend growth [7] Business Line Data and Key Metrics Changes - The MH business generated over $1 billion in revenue in 2025, with a combined revenue CAGR of 5.9% over the last five years [9] - Core community-based rental income increased by 5.5% for the full year 2025 compared to 2024, driven by rent increases for renewing residents and new residents [16] - Core RV and marina annual base rental income increased by 4.1% compared to the prior year, while core seasonal and transient rent combined decreased by 9.1% [16] Market Data and Key Metrics Changes - Approximately half of the MH revenue comes from Florida, with 20% from California and Arizona, and the rest from the North Central and Northeast US [9] - The average occupancy in California properties is 96%, reflecting strong demand in high-cost markets [11] - The company noted strong demand for MH communities, particularly in Florida and Arizona, supported by favorable economic conditions and demographic trends [10][11] Company Strategy and Development Direction - The company focuses on internal growth and operational expansions, particularly in the Sunbelt markets, while maintaining a strong balance sheet for potential acquisition opportunities [52] - The management emphasized the importance of community engagement and the value proposition of manufactured housing in addressing housing affordability issues [42] - The company plans to continue investing in its communities to support long-term growth and resident retention [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, anticipating normalized FFO growth of 3.7% for 2026 and core property operating income growth of 5.6% [7][18] - The company highlighted the positive demographic trends, with a significant portion of the population aging into their target market [11] - Management acknowledged challenges in the investment market due to fragmented ownership and limited transaction activity, focusing on internal growth instead [52][53] Other Important Information - The company reported a utility recovery rate of 48.7%, a 220 basis point increase from 2024 [17] - The balance sheet is well-positioned with no secured debt maturing before 2028 and access to $1.2 billion in capital [21][22] Q&A Session Summary Question: Seasonal and transient business expectations for the year - Management provided insights on the seasonal and transient revenue streams, indicating a positive outlook based on early booking trends and favorable holiday timing [24][30] Question: Progress on marina repairs - Management confirmed that repairs on three marinas affected by storm damage are expected to be completed by the latter half of 2026 [40] Question: Canadian customer demand - Management noted that Canadian customers represent 10% of total RV revenue, with no significant increase in home sales from this group, maintaining a strong demand profile [48] Question: Impact of cold weather on RV demand - Management indicated that cold weather has historically driven demand for RVs, with marketing efforts focused on encouraging customers to escape to warmer locations [93] Question: Non-core income decline - Management explained that the decline in non-core income is attributed to timing differences in insurance proceeds and recovery from storm-affected properties [121] Question: Strategy for rental home business - Management stated that the rental home business will continue to grow based on demand, with a focus on selling homes to current renters [99]