Equity LifeStyle Properties, inc (ELS) Q2 2021 Earnings Call Transcript

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Equity LifeStyle Properties, inc (ELS 0.64%)
Q2 2021 Earnings Call
Jul 20, 2021, 11:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, everyone and thank you all for joining us to discuss Equity LifeStyle Properties' Second Quarter 2021 Results. Our featured speakers today are Marguerite Nader, our President and CEO; Paul Seavey, our Executive Vice President and CFO; and Patrick Waite, our Executive Vice President and COO. In advance of today's call, management released earnings. Today's call will consist of opening remarks and a question-and-answer session with management relating to the Company's earnings release.

For those who would like to participate in the question-and-answer session, management asks that you limit yourself to two questions. So everyone, who would like to participate has ample opportunity. As a reminder, this call is being recorded. Certain matters discussed during this conference call may contain forward-looking statements in the meanings of the federal securities laws. All forward-looking statements are subject to certain economic risks and uncertainty. The company assumes no obligation to update or supplement any statements that become untrue because of subsequent events.

In addition, during today's call, we will discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release, our supplemental information and our historical SEC filings.

At this time, I would like to turn the call over to Marguerite Nader, our President and CEO.

Marguerite Nader -- President and Chief Executive Officer

Good morning and thank you for joining us today. I am pleased to report the results for the second quarter of 2021. Our properties experienced unprecedented demand in the quarter. Our MH revenue, RV revenue, home sales and subscription revenue exceeded our expectations. We continued our record of strong core operations and FFO growth with a 30% growth in normalized FFO per share in the quarter. While this great -- growth rate is significantly impacted by the negative comps from 2020, it represents 28% growth from the second quarter 2019. New customer growth in both MH and RV contributed to the positive results in the quarter. Year-to-date, new home sales grew by 122% contributing to the high quality of occupancy at our MH communities. Homeowners grew by 179 in the quarter, driven by a record number of new home sales. Our residents recognize the high quality and value of homes in our communities and are especially motivated to buy given trends in the broader real estate market. We continue to focus on digital marketing and our website experience as a catalyst for growing our home sales pipeline. The unique traffic to our website has grown over 35% compared to the same time prior to the pandemic. Within our RV platform, we saw increased demand during holidays and weekends, as well as strength in weekday activity. We saw an increase in customers committing to us on an annual basis. The resort LifeStyle appeals to our customers as they choose an ELS property for their second home.

We are attracting a larger number of new guests than in previous years and new customers look a lot like our pre-pandemic guests, indicating stability in our growing customer base. The number of new customers added to our database during the first half of 2021 is up 25% compared to 2019. These, first time our viewers are drawn to campaign because of an increased desire to spend time outside and the feeling that campaign is a safe activity. We see our new customers choosing to increase engagement with us. Our subscription-based Thousand Trails Camping Pass showed significant growth in the quarter. Over 8,000 new members purchase a campus, which was an increase of 40% over the second quarter of 2020. We reached a new high with almost 50% of all camp passes being sold online.

With increased RV sales, we saw our RV dealer past activations increased 39%. In our customer surveys, our new customers are indicating that they intend to camp more even after returning to other vacation travel including plane travel and hotel stays. In 2020 to help support the safety of our guests and team members, we launched a new online check-in option for our RV guests. Since launch, over 250,000 reservations were completed through the online check-in process allowing them to get to their site more quickly and with less direct interaction. The 2021 TripAdvisor Traveler's Choice Awards have been announced and we are pleased that 54 of our properties won this year, 26 of those properties are Hall of Fame winners as they have maintained a Travelers' Choice Award for 5 years.

Our guests reported high satisfaction levels based on the experience provided by our teams at our properties. Based on the second quarter survey results, guests responded to customer experience questions with a rating of 4.46 out of 5. In May, we released our Annual Sustainability Report, highlighting our commitments to American Forest and Marine Life as well as our ongoing project centered around energy efficiency at our properties. We have increased our efforts to bolster diversity through our CEO action pledge, expanded learning curriculum and recruitment efforts. The report highlights all the ways that we unite people, places and purpose within our communities. I want to thank our team members for continuing to focus on delivering excellent customer service to our residents, members and guests. We are halfway through our primary camping season and the feedback we've received is a testament to the hard work of our teams in the field and in the home and regional offices.

I will now turn it over to Paul to walk through the numbers in detail.

Paul Seavey -- Executive Vice President and Chief Financial Officer

Thank you, Marguerite and good morning everyone. I will review our second quarter results, highlight our guidance assumptions for the third quarter and full year 2021 and discuss our balance sheet and debt market conditions. For the second quarter, we reported $0.61 normalized FFO per share, $0.07 ahead of the midpoint of our guidance range. The main drivers of outperformance compared to our guidance were core RV rent revenues and membership revenues including upgrade sales. Our core MH rent growth of 4, 7% consists of approximately 4.1% rate growth and 60 basis points related to occupancy gains. We have increased occupancy 153 sites since December with an increase in owners of 283, while renters decreased by 130. While our occupied sites increased during the second quarter, our reported occupancy percentage reflects the impact of expansion sites we've added to our portfolio.

Core RV resort base rental income from annuals, increased 7.5% for the second quarter and 5.6% year-to-date compared to the same periods last year. Annual RV rate increases, continue to be in line with our expectations. Increased occupancy from annual RV residents in our Northern properties was higher than expected during the quarter. The average annual rates in these locations are lower than our Southern and Western Resorts, so the increased occupancy slightly reduced our core portfolio average rate.

For the quarter, RV rent from seasonal, increased 31% and rent from transients increased 180% compared to 2020. The comparison to prior year is impacted significantly by COVID-related property closures and shelter in place orders that were in effect during the second quarter 2020. Strong demand in the quarter is evidenced by seasonal and transient growth rates of 19% and 50% respectively over 2019. Membership dues revenue increased 10.1% and 7.2% for the quarter and year-to-date respectively compared to the prior year. Year-to-date, we've sold approximately 13,000 to 500,000 Trails Camping Pass memberships, this represents a 50% increase over the same period in 2020 and an increase of 32% over the same period in 2019.

The net contribution from membership upgrade sales year-to-date is $5 million higher than 2020. During the quarter, members purchase more than 1,200 upgrades at an average price of approximately $7,400. Core utility and other income was higher than expected during the quarter as a result of the receipt of insurance proceeds related to Hurricane Hanna in 2020. We recognized approximately $2.3 million of income in the quarter related to that storm event. Core property operating, maintenance and real estate tax expenses were generally in line with our expectations for the quarter, higher than expected utility expenses for offset by lower payroll expense as we faced challenges filling open positions across the portfolio. The comparison to second quarter 2020, shows an elevated expense growth rate as a result of the COVID-related limited operations conducted across our portfolio during the second quarter last year.

In summary, second quarter core property operating revenues increased 14.9% and Core property operating expenses increased 13.9%, resulting in an increase in core NOI before property management of 15.6%. For reference, the second quarter core NOI growth CAGR from 2019 is 8%. Income from property operations generated by our non-core portfolio was $5.2 million in the quarter. This result was higher than our expectations in part because of the NOI contributed by Pine Haven, the RV resorts we acquired during the quarter.

Revenues from annual customers at the marinas and other properties in the non-core portfolio generated more than 90% of total non-core revenues in the quarter and year-to-date periods. Property management and corporate G&A expenses were $26.8 million for the second quarter of 2021 and $52.7 million for the year-to-date period. Other income and expenses generated a net contribution of $5.7 million for the quarter. New home sales profits along with the recovery in our ancillary retail and restaurant operations contributed to an increase of $4 million in sales and ancillary NOI compared to the second quarter 2020. Interest and related loan cost amortization expense was $27.1 million for the quarter and $53.4 million for the year-to-date period.

The press release provides an overview of third quarter and full year 2021 earnings guidance. As I provide some context for the information we've provided, keep in mind my remarks are intended to provide our current estimate of future results. All growth rates and revenue and expense projections represent midpoints in our guidance range and are qualified by the risk factors included in our press release and supplemental financial information. A significant factor in our guidance assumptions for the remainder of 2021 is the level of demand for transient stays in our RV communities. We have developed guidance based on our current customer reservation trends. We provide no assurance that our actual results will be consistent with our guidance and we assume no obligation to update guidance as conditions change.

Our full year 2021 normalized FFO is $2.47 per share, at the midpoint of our range of $2.42 to $2.52 per share. Normalized FFO per share at the midpoint represents an estimated 13.4% growth rate compared to 2020. Core NOI is projected to increase 7.9% at the midpoint of our range of 7.4% to 8.4%. The core NOI growth rate increased from our prior guidance is mainly the result of our second quarter outperformance. Our expectation for the third and fourth quarters has been updated to include MH occupancy gains in the second quarter, current RV reservation trends and expense adjustments based on year-to-date activity. As a reminder, we make no assumptions for storm events or other uninsured property losses we may incur. Our guidance for the full year and third quarter includes the impact of the acquisition activity we've closed in the first and second quarters with no assumptions for additional acquisitions during the year. We've also included the impact of the financing activity we've disclosed including the recast of our unsecured credit facility. We expect third quarter normalized FFO at the midpoint of our range of approximately $119.5 million with a per share range of $0.59 to $0.65. We expect the third quarter to contribute 25% of full year normalized FFO. We project a core NOI growth rate range of 8.7% to 9.3%. MH and RV annual growth -- rate growth assumptions for the third quarter and full year remained consistent with our prior guidance. We've built our transient RV revenue assumptions for the third and fourth quarters using factors including current reservation pace compared to both 2020 and 2019.

Our guidance for the third quarter assumes a growth rate of approximately 23% compared to 2019, this represents a core transient RV revenue increase of approximately $3.5 million compared to 2020. Our fourth quarter assumptions include a reopening of the Canadian border and return of those customers for the upcoming winter season. Now, some comments on debt markets and our balance sheet.

Current secured debt terms available for MH and RV assets range from 50% to 75% LTV with rates from 2.5% to 3.5% for 10-year maturities. High quality age-qualified MH will command best financing terms. RV assets with a high percentage of annual occupancy have access to financing from certain life companies as well as CMBS lenders. Life companies continue to quote competitively on longer term maturities. We continue to place high importance on balance sheet flexibility and we believe, we have multiple sources of capital available to us. Our debt-to-EBITDAre is 5.4 times and our interest coverage is 5.4 times. The weighted average maturity of our outstanding secured debt is approximately 12.5 years.

Now, we would like to open it up for questions.

Questions and Answers:

Operator

Thank you. [Operator Instructions] Our first question comes from Brad Heffern with RBC Capital Markets. You may proceed with your question.

Brad Heffern -- RBC Capital Markets -- Analyst

Hey, good morning everyone, thanks for taking my question. Just to start on the transient guidance, you have the $3.5 million increase. You have the strong 4th July, I know the first quarter was up about $2.5 million on a number there wasn't really COVID affected. So can you just walk through kind of what's behind that number and if there is upside to it?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Yeah, I think the $3.5 million for the quarter as I said, it's based on our current reservation pace, it doesn't incorporate 4th July, that 20% translates into about $400,000 of growth and -- as we look at the current pace compared to 2020 and 2019, that's the estimate that we have right now.

Brad Heffern -- RBC Capital Markets -- Analyst

Okay, got it. And then maybe switching to acquisitions. Can you talk about the cap rate on that Pine Haven acquisition. And then just any thoughts in general across the three businesses on how the acquisition market looks?

Marguerite Nader -- President and Chief Executive Officer

Sure. So, we closed on the property Pine Haven in Cape May, it's very well located near other ELS assets. And just to give you a sense of it, it's about 91% occupied by annuals and so the highly annualized revenue base and the cap rate for the transaction was 5%. With respect to going forward, this year we've deployed I think about over $350 million of capital into 14 properties and our acquisition team does a great job of underwriting all the deals, it's really difficult to say when properties are going to close. So as we -- we currently have them in various states in the acquisition process.

Brad Heffern -- RBC Capital Markets -- Analyst

Okay, thank you.

Marguerite Nader -- President and Chief Executive Officer

Thanks, Brad.

Operator

Thank you. Our next question comes from Keegan Carl with Berenberg. You may proceed with your question.

Keegan Carl -- Berenberg Bank -- Analyst

Hey guys, thanks for taking the questions. I know you touched on earlier, but can you just a little bit more color on what was driving the core RV annual rate growth guidance down, was it exclusively just hired than Northern bookings, was there something else in there?

Paul Seavey -- Executive Vice President and Chief Financial Officer

It's -- it really is the change in the occupancy mix. So, as I think, I explained maybe on the -- it was either the January or the April call, 90% of the residents in the -- annual residents in the RV footprint were notified of their rate increased by last fall. So that increase is pretty steady throughout the year, but as we noted in the quarter as we see kind of a change in the occupancy mix, it does have an impact on the weighted average rate.

Keegan Carl -- Berenberg Bank -- Analyst

Okay. So -- but there is nothing, we should be worried about as far as like downside or concerns occupancy in other regions, it's just because of the waiting to the North.

Paul Seavey -- Executive Vice President and Chief Financial Officer

That's correct. Yeah.

Marguerite Nader -- President and Chief Executive Officer

Right. And there is an increase in overall annual occupancy and it's just the waiting and the rate is different.

Keegan Carl -- Berenberg Bank -- Analyst

Yeah. Okay, great. And then, I think kind of going back to transient. Can you give us the breakout of what was a function of volume versus price in the quarter. Is it one or the other that's kind of standing out?

Paul Seavey -- Executive Vice President and Chief Financial Officer

I think similar to what we just discussed on the annual side, what we've seen on the transient side is a shift in the mix as well. So the demand in the transient was very strong in some of our higher priced locations, like the Florida Keys and so the rates contribution is a pretty heady number frankly, but it's a function of where people stayed rather than an increase in the rate implemented at individual location.

Marguerite Nader -- President and Chief Executive Officer

And it was also a function of increased in cottage stays, which is a higher price point.

Keegan Carl -- Berenberg Bank -- Analyst

Okay, great. And then, I mean, just kind of a follow-up [Phonetic] on transient. Can you give us kind of a feel for bookings quarter-to-date, outside of the 4th. Do you guys feel like, it's trending well above 2019 or how should we think about that?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Yeah, I think -- I mean just at the end, the 20% number that we talked about for July 4th, the $3.5 million represents 23% over 2019 for the quarter. And as we've thought about the third quarter guidance and looked at actual results for Q3 2019, as we took a look at the percentage of full quarter revenues essentially they've looked at the same time in each point in the year and think that we're tracking to those results.

Keegan Carl -- Berenberg Bank -- Analyst

Okay, that's it from me. Thanks for your time guys.

Paul Seavey -- Executive Vice President and Chief Financial Officer

Thanks.

Marguerite Nader -- President and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from Nick Joseph with Citi. You may proceed with your question.

Michael Bilerman -- Citi Research -- Analyst

Hey, good morning. It's Michael Bilerman here with Nick. So, I had a question either to Marguerite or Paul. You talked a lot about sort of the new customer activity and you mentioned that the new customers look a lot like your existing customers. And so I'm wondering if you can maybe spend a little bit of time talking about the new customers that are different. Are you tapping into any new segments either on the RV or the MH side, either customer types, customer demographics, customer incomes that is different from what you're seeing before and potentially could be stickier or not, maybe they're not having to rate experience and they're not going to continue. So, I'm just trying to really understand sort of the customer dynamics going on?

Marguerite Nader -- President and Chief Executive Officer

Okay. Sure. Thanks, Michael. Patrick can talk a little bit about the millennial customer. But why don't I just focus a little bit on the customers, the new customers that did come to us this year, that came to us during the pandemic in terms of how they acted. The first-timer as we call them, they returned and they have future reservation on the books right now. I think it's one in every seven are currently a seasonal or annual member, this percentage is in line with what we've seen before. It's just an overall number, it's higher, it's generating a higher revenue. But the first-timer, who return they become either Thousand Trails member focused on the Southeast through the Southwest. And then the first-timer is returning is seasonals and annuals, they're concentrated in Florida, California and the Northeast.

Patrick Waite -- Executive Vice President and Chief Operating Officer

Yeah, Michael. [Indecipherable] that.

Michael Bilerman -- Citi Research -- Analyst

And then just before, we switch the millennial, those customers acting the same as like other first-timers. Are you getting a better sort of recapture rate?

Marguerite Nader -- President and Chief Executive Officer

No, actually the percentage that I quoted there was in line, although that the overall number is higher. So there -- if they're acting similar to kind of the pre-pandemic. So just a kind of point out the stickiness of the new customers.

Michael Bilerman -- Citi Research -- Analyst

Right. So, the sheer amount of customers has increased and that's was and they're acting the same in terms of continuing with you, which is then just driving that overall stability in that rental stream?

Paul Seavey -- Executive Vice President and Chief Financial Officer

So, Patrick. Go ahead.

Patrick Waite -- Executive Vice President and Chief Operating Officer

No, that's right and I guess to reiterate, it's a shift that's having an effect on a significant base in our core customer. But just with respect to those new customers in particular, the younger generations in nearly two out of three first-time campers, who are under age 40 that's just high level in the industry itself as well as millennials making up but the largest generation of camping households, it's almost 40% of camping households. In the United States today, at based on annual survey by KOI, they cover a lot of key demographics in the asset class. So that reflects what we're seeing in our campgrounds, based on surveys of campers, new campers in particular. We're seeing younger campers, younger families, a number of them traveling with younger children and something that frequently comes up in the RV space their pets, when by pets that typically means dogs. So, that's just qualitatively what we're seeing in our new customers and it also touch on our engagement on social media. We grew our new fans and followers in social media by almost 30% that's to a total base of fans and followers of more than 900,000 on Facebook, Instagram, Twitter and Pinterest.

Most of that growth for the quarter came from Instagram video content and we've also reached out and I think our team is a very nice job in connecting with celebrities. We've had guys here, who stay at our properties as well as the celebrity couple Michael Trevino and Bregje Heinen, they stayed with us recently and that helps to just kind of firm up the status of our brand.

Marguerite Nader -- President and Chief Executive Officer

But to be honest, we had to look up who those people are they [Speech Overlap] But they are celebrities, nonetheless.

Nick Joseph -- Citi Research -- Analyst

Thanks. And just one other question, just wanted to go back to the transaction market. Marguerite if you're seeing the entrants into the space at all and how that's impacting either bidding or how many people are showing up with these opportunities?

Marguerite Nader -- President and Chief Executive Officer

We haven't seen new major players in the last year. So I would say, of course, we've talked in the past about all of the new players that have shown up over the last five or six years. But nothing new in the recent past. There are a -- there is -- these assets are highly sought after and highly marketed.

Nick Joseph -- Citi Research -- Analyst

Thanks.

Marguerite Nader -- President and Chief Executive Officer

Thank you, Nick.

Operator

Our next question comes from Samir Khanal with Evercore ISI. You may proceed with your question.

Samir Khanal -- Evercore ISI -- Analyst

Hi everyone. Good morning. So I guess Marguerite, can you provide a little bit more color around with growth has been like I guess in the marina business, year-to-date as things are starting to reopen and normalized here. I think you have close to 25 marinas today with the acquisition. Just trying to figure out how that segment is tracking versus our shares in nature?

Marguerite Nader -- President and Chief Executive Officer

Sure. So our marina portfolio in the quarter performed in line with our expectations. We generally have long-term revenue streams, we've updated the technology for our customers. And what we're seeing is about 4% growth in revenue on the marina side.

Samir Khanal -- Evercore ISI -- Analyst

Okay, got it. Thank you. And then I guess my second question is around transactions. Clearly, it's -- bidding is very aggressive on that front. I mean, where is the opportunity set for you today when you, kind of look at maybe over the next year, is that the marina side, is it the RV side, I mean how should we be thinking about that?

Marguerite Nader -- President and Chief Executive Officer

Yeah. I mean, I think that we certainly as we look at our acquisition pipeline, we certainly have opportunities on MH, RV and marina side, like I mentioned earlier, difficult to know when particular asset is going to close. I think that -- certainly there are a lot more people that are interested in general over the last five years, new entrants into the market. But we have long-term relationships with owners, which certainly gives us an advantage to at least starting the conversation in many instances that still ends up in a bidding process. But I think there are still opportunities -- there are certainly still a lot of opportunities out there as you can see from what we've done year-to-date.

Samir Khanal -- Evercore ISI -- Analyst

Got it. And I guess my final question is. Have you seen any sort of inflationary pressures in the business today?

Paul Seavey -- Executive Vice President and Chief Financial Officer

I think that overall for the year, we have seen inflationary pressures, we've seen pressure on wages, it's offset somewhat by the challenge in attracting, recruiting employees. We're facing similar challenges to many, who are trying to recruit hourly employees today, but wages are definitely increasing, and that is also translating into R&M expense with those third parties that we engaged for landscaping and other activities at our properties. And then just overall energy costs are pretty volatile, especially given the severe weather patterns that we've been seen, the demand on energy is significant across the country and we're seeing that play out in our utility expense.

Samir Khanal -- Evercore ISI -- Analyst

Okay, got it. Thank you.

Marguerite Nader -- President and Chief Executive Officer

Thank you, Samir.

Operator

Thank you. Our next question comes from Michael Goldsmith with UBS. You may proceed with your question.

Michael Goldsmith -- UBS -- Analyst

Good morning. Thanks a lot for taking my question. My first question kind of on the guidance, you beat the high-end of your FFO guidance in the quarter, your full year went up by more than, so what are the changes in your assumptions for the back half of the year. Anything else there other than on the transient RV side?

Paul Seavey -- Executive Vice President and Chief Financial Officer

It's the second half of the year as I mentioned, the core occupancy. So we don't make an assumption, just in our standard guidance, we don't make an assumption for future occupancy gains, but on a quarterly basis, we do update for occupancy that we have gained during the prior quarter. So we've done that, we've adjusted our RV revenue growth assumptions. And as I mentioned, that's expected to be $3.5 million higher than last year. And then we did have some adjustments to expenses, but I'd say the revenue drivers are most significant.

Michael Goldsmith -- UBS -- Analyst

Thanks for that. And then clearly, there is a lot of strength in the transient RV business and the membership subscriptions. As you look back historically at times with elevated RV demands. How sustainable or captive this is group, so it drive the business in future years and looking forward, does that show up through your annual revenues. I guess, say another way, can RV revenues remain at these new elevated levels going forward?

Marguerite Nader -- President and Chief Executive Officer

Sure. So well, Michael, welcome to the call by the way.

Michael Goldsmith -- UBS -- Analyst

Thanks for that.

Marguerite Nader -- President and Chief Executive Officer

And thanks for joining us on the call. I -- as we look ahead, years ago -- few years ago, it was installed base was nine million RV viewers, now it's 11 million and in total across the United States there is about 1 million RV sites. So that's -- that ratio bodes very well for us and we really see it's a transition going from transient to a seasonal to an annual and you'll see that throughout our portfolio. We certainly seeing an increase in members over the last Thousand Trails members and subscription-based revenue over the last couple of years and I think that just comes from the demand in RVs overall and the demand for kind of getting out and about in being outdoors with your family.

Michael Goldsmith -- UBS -- Analyst

And just if I could squeeze one last one. And it's maybe it's a word of Brad's question in the beginning, but is there anything to read into July for weekend being up 21% relative to 2019, well Memorial Day was up 30%. Are you starting to see a deceleration here?

Marguerite Nader -- President and Chief Executive Officer

I think what you saw there is, more of a weekend last year was effectively closed in many areas of the country. July 4, last year we were way more, open and where people were moving about the country much more. They are much more able to move about the country.

Michael Goldsmith -- UBS -- Analyst

Thank you.

Marguerite Nader -- President and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from Wes Golladay with Baird. You may proceed with your question.

Wes Golladay -- Baird & Co. -- Analyst

Hey, good morning to everyone. Just a quick question on how much of your business is on the books now for the quarter for the transient segment?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Certainly, 4th July, as I said, is up about $400,000 just in terms of the way that we think about it. Labor Day is a big weekend for us as well. The interesting thing about it is how August and September will develop, whether is a huge factor. And so to the extent that we have or whether there is going to be impact on the next couple of months. So, I think that -- it's not quite a third, or third, or third, in terms of the three months in the quarter because September typically drops off, but I have to say last year in September was a very strong month for us because the weather was good and people were able to be out at our properties.

Marguerite Nader -- President and Chief Executive Officer

And when the booking window can be pretty tight. So you know -- as you we can fill that there may be Thursday or Friday before you know how it's shaping up.

Wes Golladay -- Baird & Co. -- Analyst

Yeah, I guess, I'm kind of -- my question, I guess, is trying to get at -- is that where the surprise is coming in the last two quarters as those like near-term bookings. Is that what you're seeing it?

Marguerite Nader -- President and Chief Executive Officer

Right. That's exactly where it is and we're seeing an increase as I mentioned in weekday traffic that we hadn't seen on a pre-pandemic days.

Wes Golladay -- Baird & Co. -- Analyst

Got it. And then you can get. I guess, would you have a number of, what the revenue uplift is taken a transient to a seasonal and then seasonal to an annual?

Marguerite Nader -- President and Chief Executive Officer

I mean, I think that -- it depends on a property-by-property basis, because it really depends where you are in the area of the country. We can circle back with you and kind of provide some guideposts on a kind of around the horn basis, we don't have that in front of us right now.

Wes Golladay -- Baird & Co. -- Analyst

Okay, thanks. I'll follow up. And then, have you started any developments year-to-date and do you have many going on right now?

Patrick Waite -- Executive Vice President and Chief Operating Officer

Yeah, when we're tracking to -- mentioned in previous calls, our 1,000 to 1,100 sites to be delivered for the full year and that represents roughly a dozen projects that's tracking basically in line with our previous year, which is around 10 or 11 projects and about the same number of sites?

Wes Golladay -- Baird & Co. -- Analyst

Are those mostly expansions, are those any ground up in there?

Patrick Waite -- Executive Vice President and Chief Operating Officer

Those are mostly expansion, there is initial phase of one ground up but predominantly those are driven by expansions and it's skewing a little bit toward for RV for 2021.

Wes Golladay -- Baird & Co. -- Analyst

Okay, thanks a lot.

Patrick Waite -- Executive Vice President and Chief Operating Officer

Sure.

Marguerite Nader -- President and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from John Kim with BMO Capital Markets. You may proceed with your question.

John Kim -- BMO Capital Markets -- Analyst

Thank you. On Thousand Trails, it looks like your membership increase was the most in at least a decade. Can you remind us what the typical renewal rate is for members?

Marguerite Nader -- President and Chief Executive Officer

Sure. We have about a 90% renewal rate on members. So we have 10% of the members fall off in any given year.

John Kim -- BMO Capital Markets -- Analyst

Do you expect that rate to continue over the next 12 months or do you think they'll be more volatility. Just given, so many new members joined this year?

Marguerite Nader -- President and Chief Executive Officer

Yeah, I don't see that really -- that attrition rate hasn't changed much and we've gone through many different cycles and it hasn't changed, it doesn't vary very much over time, that we sold a lot of camp passes as I mentioned in the quarter and that marks -- that also marks the high watermark for sales since we started at this 10 years ago. But it's been great that the 50% of those deals were online, it's really efficient method for sales method. It still continues to be a very sticky customer base.

John Kim -- BMO Capital Markets -- Analyst

And Marguerite, can you remind us, is there seasonality. When you add members and in past years, you've provided guidance for the year, at this time you providing real up-to-date member accounts. But do you typically have more members in the second, third quarter of the year?

Marguerite Nader -- President and Chief Executive Officer

As the summer is a big season for us for adding new members. And then it trails off a little bit in the -- as you head into the winter.

John Kim -- BMO Capital Markets -- Analyst

Okay. looking at your marina business, is it fair to assume that most of the leases are annual leases in that seasonal and transient. I'm just comparing your core versus your total RV and marina business?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Yes. More than 90% of the revenue comes from annual customers in the marina portfolio that we have.

John Kim -- BMO Capital Markets -- Analyst

And so what was the occupancy on the marinas?

Paul Seavey -- Executive Vice President and Chief Financial Officer

I think, we're like 90% or 91%.

John Kim -- BMO Capital Markets -- Analyst

Okay. On the topic of the occupancy. Can you provide the occupancy for the transient RV business in the second quarter. And what you expect it to be for the remainder of the year?

Paul Seavey -- Executive Vice President and Chief Financial Officer

We don't really quote and occupancy statistic on the transient, John, because the mix of site changes that we use sites for seasonal they may become transient and we may fill a site that is a transient with annual. So that's not a metric or statistic that we track or provide.

Marguerite Nader -- President and Chief Executive Officer

Which is what you saw, John, us doing in the first quarter when we had difficulty filling the seasonals from the Canadian aspect or Canadian customer base and then they became transient. So that's one of the reasons, it's difficult to quote that number.

John Kim -- BMO Capital Markets -- Analyst

What about like a total occupancy number, then for RFPs?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Yeah. Same thing, we don't track, we don't quote a number for that purpose.

Marguerite Nader -- President and Chief Executive Officer

But we provide John, in the supplemental, it shows the number of sites that are transient. And that does adjust every quarter.

John Kim -- BMO Capital Markets -- Analyst

Okay. I might have missed this, but have you provided, or can you provide an update on your expansion site delivery expectations for this year?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Yeah, it should be around 1,000 to 1,100 sites for the full year.

John Kim -- BMO Capital Markets -- Analyst

Okay. Great, thank you.

Marguerite Nader -- President and Chief Executive Officer

Thanks, John.

Operator

Thank you. Our next question comes from Joshua Dennerlein with Bank of America. You may proceed with your question.

Joshua Dennerlein -- Bank of America -- Analyst

Yeah. Hey, Marguerite. Hey, Paul.

Marguerite Nader -- President and Chief Executive Officer

Hey, Dennerlein.

Joshua Dennerlein -- Bank of America -- Analyst

I saw the new home sales, looks -- the volume looks like it was up a lot. And then gross revenues were up as well. Curious, if there is any underlying theme that you're seeing driving that and if you expect to continue to kind of quote across the rest of the year?

Patrick Waite -- Executive Vice President and Chief Operating Officer

Yeah, I mean -- let me, I'll take the volume first. The volume obviously was up significantly more than double over the same time last year. So what we're really seeing is strong demand from home buyers. So, a big driver of that increase was selling homes to meet increase buyer demand. And some of that is just a mix of sales and rentals. If you look at Q1, our rentals were for the most part in total, flat year-over-year. For Q2, they were down more than 100 and a piece of that is really just more buyers coming through the door, interested in purchasing the home as opposed to renting. So that said, kind of a high level on the unit counts. And then just with respect to sale price, sale price was up almost 30% year-over-year, some of that is really driven by mix of some higher priced units and that will happen just depending on where transactions are happening in any particular quarter. If we look at similar models year-over-year, they're up roughly 10% from a sales price perspective.

Joshua Dennerlein -- Bank of America -- Analyst

Thanks, Patrick and apologize, we're not saying how do you at the beginning.

Marguerite Nader -- President and Chief Executive Officer

[Indecipherable] feel like Josh.

Joshua Dennerlein -- Bank of America -- Analyst

Curious like that 10% kind of phase, I guess same kind of unit number you quoted like. Do those unit price has kind of track that overall home priced market from that basis. I know we've seen significant gain. So I guess from my perspective, I'm trying to think, if you keep seeing stick-built homes, prices go up and become super competitive, maybe you going to end up with more customers?

Patrick Waite -- Executive Vice President and Chief Operating Officer

Yeah. I mean, I would say that in any particular submarket at a minimum, it will be directional. Just high level, the Case-Shiller was up 16% for the quarter, was up 12% for the quarter in Q1. So, we're seeing it kind of a similar trend. When I said 10% were actually up 11% for the second quarter. And in Q1, we were up 6%. So you're seeing an acceleration in that pricing just based on that high level of demand.

Joshua Dennerlein -- Bank of America -- Analyst

Okay, awesome. And then I noticed, if I look at your annual RV same-store versus 2019 levels, it looks like, it's up a fair bit. I'm assuming some of that might be just the same-store pool change. But is there something else driving that like conversions, the big increase in conversions from 2019 or maybe just like a growth? Is there anything to that or maybe I'm doing that wrong?

Paul Seavey -- Executive Vice President and Chief Financial Officer

Well, there is certainly an uptick in occupancy, Josh. There is also -- at the end part of that is the contribution from the expansion sites that we've added, that's driving that.

Joshua Dennerlein -- Bank of America -- Analyst

Okay. Awesome. Thank you, guys, I appreciate the time.

Marguerite Nader -- President and Chief Executive Officer

Thanks, Josh.

Patrick Waite -- Executive Vice President and Chief Operating Officer

Thanks, Josh.

Operator

Thank you. [Operator Instructions] Our next question comes from John Pawlowski with Green Street. You may proceed with your question.

John Pawlowski -- Green Street -- Analyst

Hey, thank you for the time. Patrick and Marguerite, could you give me a sense for how meaningful the shift in weekday bookings have been. And if it's enough of a needle mover to change how you think through the risk of the transient business, because ostensibly that would put a little bit more. But a lot less pressure on we even the needle on weather?

Marguerite Nader -- President and Chief Executive Officer

Yeah. I mean -- we've seen an increase is probably been 4% or 5% increase overall in the nights, in occupancy. So that's -- so I don't think that changes the metric as how we think about transient overall. And we also think that there is some amount of work flexibility that's factoring into that and that's seems to be changing over time here as people return to office.

John Pawlowski -- Green Street -- Analyst

Great. So in the past you've kind of made the claim that -- the statement that transient RV parks are kind of mispriced relative to the annual or relative to MH and a post-COVID world, with more work from home flexibility. Do you still stand by -- are trending RVs is becoming more interesting at current pricing?

Marguerite Nader -- President and Chief Executive Officer

Well, I think that we will always tend to want to invest in assets where you have a long-term customer base. But you don't have to kind of go out and end-market every weekend for. So, I would still standby the annual seasonal business is a stickier business, a more high-quality cash flow. Then what you see on the transient side, on the transient side, in certain locations where it's extremely well located and there may be an opportunity there. But for the most part of it were, we will be sticking with the annual seasonal business that's gets very well.

John Pawlowski -- Green Street -- Analyst

Okay, thanks very much.

Paul Seavey -- Executive Vice President and Chief Financial Officer

Thanks, John.

Marguerite Nader -- President and Chief Executive Officer

Thanks, John.

Thank you all for joining us today. We're available for any additional questions. Have a great rest of the summer.

Operator

Thank you [Operator Closing Remarks].

Duration: 31 minutes

Call participants:

Marguerite Nader -- President and Chief Executive Officer

Paul Seavey -- Executive Vice President and Chief Financial Officer

Patrick Waite -- Executive Vice President and Chief Operating Officer

Brad Heffern -- RBC Capital Markets -- Analyst

Keegan Carl -- Berenberg Bank -- Analyst

Michael Bilerman -- Citi Research -- Analyst

Nick Joseph -- Citi Research -- Analyst

Samir Khanal -- Evercore ISI -- Analyst

Michael Goldsmith -- UBS -- Analyst

Wes Golladay -- Baird & Co. -- Analyst

John Kim -- BMO Capital Markets -- Analyst

Joshua Dennerlein -- Bank of America -- Analyst

John Pawlowski -- Green Street -- Analyst

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