Manufactured housing and RV operator reported a solid third quarter, achieving normalized funds from operations (FFO) growth of 4.6%, aligning with management’s expectations. The company reaffirmed its full-year guidance for normalized FFO at $3.06 per share, indicating a 4.9% growth rate. Notably, core net operating income (NOI) rose 5.3%, exceeding projections, while occupancy rates in key markets like Florida and California reached 94% and 95%, respectively.
Despite these positive indicators, the company faces challenges, particularly with a 40% decline in Canadian RV bookings, which has led to lowered expectations for seasonal and transient revenue. Management anticipates an 8.8% decrease in combined seasonal and transient revenue for the year, emphasizing the significant concentration risk associated with Canadian customers. This downturn may impact overall financial performance in the upcoming quarters.
Market professionals should note the company’s proactive approach to rent increases, averaging 5.1% for 2026, which could help offset revenue declines and support ongoing growth in its core portfolio.
Source: fool.com