Welcome to Episode 71 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Drew Babin is an equities analyst for Robert W. Baird & Co. Today’s show primarily focuses on Equity Lifestyle Properties and Sun Communities and how these two companies are performing in the marketing from a Wall Street perspective. Jefferson, Brad, and Drew discuss same-store sales, how Wall Street views certain revenue streams differently, and more!
Key Takeaways:
[3:35] How did Drew first get started in this industry?
[5:10] How does a company like Baird decide which stocks to follow and why?
[6:25] For Equity Lifestyle and Sun Communities stocks, what are the ratings on these stocks?
[9:25] Sun has not been as aggressive with acquiring properties over the last two years because they bought Green Courte Partners and CareFree Communities.
[12:40] How does Wall Street view the rental business vs. owning land as revenues streams? Do they see it the same way as the public firms do?
[17:15] Same-store sales are not a topic real estate people are very familiar with, but it is used as a metric for a company with already-existing assets vs. acquisitions.
[20:25] As there is no new competition in the mobile home park sector, what else drives the industry?
[23:00] Drew has noticed that there’s a bit of a misconception on what an RV really means vs. a mobile home park.
[26:30] Sun has a $6 million credit facility. How are they using/lending those funds?
[33:25] When analyzing these two companies, does Drew see how these stocks compare to the overall market? Any correlations?
[37:20] What are some of the risks to the industry?
[42:50] Park Street Partners uses a cash program from a Berkshire Hathaway subsidiary. Do Equity Lifestyle and Sun also use cash programs, or how are they filling in vacancies?
[46:50] If Drew had to retire in the next 30 years, which stock would he pick?
Mentioned in This Episode:
Park Street Partners Business Resources
LinkedIn: Mobile Home Park Investors Group
Send deals to Deals@parkstreetpartners.com
Email Drew: DBabin@Rwbaird.com