Sun Communities, Inc. (NYSE:SUI) Q1 2024 Earnings Call Transcript

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Gary Shiffman: John, generally it’s been pretty much across the Board with just a slower pace. So we’re guiding a bit based on that year-over-year pacing if you will. Second quarter has been quiet. We’re approaching the seasonal communities that are opening up April, May and a little bit of weather issue impacts us a little bit if it did through the months but it is mostly just the pacing across the Board. So there’s no one thing that we can point to and we don’t want to put an expectation of outperformance there. But certainly, we’ll see if shorter and closer to normal visitations that the bookings don’t pick up a little bit. And – but for that we really don’t have anything to point to. We’d suggest we asked that question all the time of our management team.

There is a return to a lot of other forms of vacation as we all know taking place out there across the Board. But we will keep you posted as to any other specific change that we would see. So there’s nothing I could point to regionally or within a segment of our communities.

John Pawlowski: Okay. Final question from me. Fernando, the $0.14 you’re adding back in transaction costs and nonrecurring G&A, it’s not too far off from what the cost the magnitude of costs added back and in ’23 and ’22 during much more acquisitive years. And so, outside of Royale Life what else is in this specifically? What else is in this number? And I imagine Royale Life was known at the start of the year. So again what drove the $0.07 incremental add-back guide versus guide?

Fernando Castro-Caratini: Sure. So, it would be the activity that we saw in the first quarter that is largely driving that increase on a guide to guide basis. As we’ve shared with the market during February, we expected about $9.5 million of add-backs over the course of the year. We did surpass that in the first quarter and are now projecting that just above $18 million related to. As mentioned earlier, primarily these are debt deal costs of transactions that we have been underwriting. And we’ll walk away from or have walked away from the transaction costs as detailed earlier as well. We do have implementation expenses for our technology platforms that we amortize over a period of time and it’s the amount that we’ve spent to develop those technologies and implement them.

But at this time, that add back for the full year is expected to be $18.4 million as detailed in yesterday’s press release. So it would — that’s about $7 million of additional over the course of the rest of the year, but that can change.

John Pawlowski: All right. Thank you.

Operator: We have reached the end of the question-and-answer session. I’d now like to turn the call over to Chairman, President and CEO, Gary Shiffman for closing remarks.

Gary Shiffman: Thank you everybody. We just want to end and letting everyone know we are very, very focused on the concept of understanding closing the gap in valuation and we are working very, very hard with everything we do to move forward on that and I look forward to speaking to everybody on the next quarterly call. Thank you, operator.

Operator: You’re welcome. This concludes today’s conference. You may disconnect your lines at this time and we thank you for your participation. Goodbye.

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