Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the key drivers behind your expense guidance for 2025, given the low growth following strong expense controls in 2024? A: Paul Seavey, CFO, explained that the expense growth is expected to generally track the CPI, with anticipated savings in certain line items such as administrative expenses and membership commissions. Real estate taxes are assumed to grow in the mid-single digits, consistent with past experience.
Q: What is causing the expected $4 million increase in other income and expenses for 2025? A: Paul Seavey, CFO, noted that the primary driver is the expectation for sales and ancillary activity. Additionally, there is an anticipated similar distribution from a joint venture in the first quarter of 2025, similar to the $5 million distribution recognized in 2024.
Q: Can you provide insights into the transient and seasonal RV guidance, particularly the expected softness in the first quarter and improvement throughout the year? A: Paul Seavey, CFO, stated that the guidance is based on current reservation pacing, which is tracking in line with the budget. Patrick Waite, COO, added that the seasonal component is influenced by factors such as hurricanes and a lag in Canadian business, but they expect improvement as these factors normalize.
Q: How are the California wildfires and Hurricane Milton expected to impact your insurance renewal and operations? A: Marguerite Nader, CEO, confirmed that their properties were not impacted by the California wildfires. Regarding insurance, it's too early to determine the impact on rates, but the expense guidance includes an assumption for insurance renewal increases.
Q: What is the outlook for expansion sites in 2025, given the lower number delivered in 2024 compared to the five-year average? A: Patrick Waite, COO, expects the number of expansion sites in 2025 to be between 400 to 600, influenced by timing and longer timelines for project completion. A significant portion of expansion projects is in Florida, where permitting and entitlement processes can cause delays.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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