Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities First Quarter 2020 Earnings Conference Call. At this time, management would like to inform you that certain statements made during this conference call, which are not historical facts, may be deemed forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations include the effects of the COVID-19 pandemic and others detailed in yesterday's press release and from time to time in the company's periodic filings with the SEC.
The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. Having said that, I would like to introduce management with us today. Gary Shiffman, Chairman and Chief Executive Officer, John McLaren, President and Chief Operating Officer, and Karen Dearing, Chief Financial Officer. After their remarks, there will be an opportunity to ask questions. I'll now turn the call over to Gary Shiffman, Chairman and Chief Executive Officer. Mr. Shiffman, you may begin.
Thank you, operator. Good morning, and thank you for joining us today as we discuss our first quarter results and provide an update on Sun's preparedness to navigate the COVID-19 pandemic. Since our fourth quarter call in mid-February, the environment has been dramatically challenged by a worldwide public health crisis, and before we begin, we wish to convey our sincere wishes for everyone's health and safety. We started the first quarter of 2020 ahead of expectations, reporting FFO per share of $1.22, 1% ahead of the high end of guidance. While everyone is focused on how the pandemic will affect their performance over the coming weeks and months, it's important to note that we entered the year from a position of strength, and because of the underlying fundamentals of providing affordable housing and vacationing options, we expect to sustain a relative position of strength as we navigate through the pandemic.
We began 2020 with total portfolio occupancy of 96.7%, are well-positioned from a balance sheet perspective with approximately $380 million of unrestricted cash as of quarter end, and a trailing net debt to EBITDA ratio of 5.6 times. We want to commend and recognize our team and acknowledge the incredible job they have done stepping up and responding during this challenging time. Our team acted swiftly to ensure that Sun was doing its part to stem the spread of coronavirus by adopting work-from-home practices at our main office and wherever possible at our communities. At our properties, we closed amenities where residents and guests gather and implemented recommended sanitation and hygiene protocols. While prioritizing health and safety by adhering to social distancing parameters, we are striving to provide Sun's trademark customer service.
Given current shelter-in-place and social distancing orders, we do not know, nor are we in control of the duration of the current changes in operating conditions brought on by the pandemic. We can adjust certain controllable operating expenses, modify our capital deployment plans, and manage our liquidity. On the expense side, Sun's directors and executive officers have set the tone by electing to forego their compensation for at least the second quarter. The balance of our main office team members have also taken salary reductions in recognizing that we are all in this together. Additionally, we have placed a number of our team members on furlough due to the closing of our amenities and the temporary reduction of transactions. The company will continue to pay both its share and the team member's share of costs associated with providing each furloughed team member uninterrupted healthcare benefits.
We have implemented a rent forbearance program for residents financially impacted by the virus, who have elected to apply and provide the necessary information related to their hardship in order to qualify for the program. Approximately 2.9% of our manufactured housing residents, inclusive of our rental home program, have applied and been approved. Requests from our annual RV guests have been minimal. In our manufactured housing portfolio, we have collected 98% of our rents as of April 22nd, which is on par with last month and prior year. In our RV portfolio, approximately 55% of our RV sites are leased annual sites. For annual RV rents currently due, collections are at 92% relative to the percent collected at the same time last year. Of the remaining 45% of RV sites which are transient, we are experiencing an impact from the pandemic with delayed resort openings and canceled reservations.
John will provide additional detail. Given limited visibility on the return to normal operating conditions and the duration of the current situation, we are suspending our 2020 financial and operating guidance. We have also determined it prudent to temporarily reduce or suspend certain capital spend on expansions and ground-up developments, and we continue to evaluate acquisitions with measured caution. John and Karen will provide further details on the unavoidable financial impact associated with the pandemic. However, we believe that even in the times of uncertainty or disruption, Sun's portfolio and the industry in which we operate are well-suited to withstand the impacts of a recession. Sun provides a high-quality, affordable housing option that has historically demonstrated stability and resilience during a downturn, and a stronger, earlier bounce-back through recovery as the macroeconomy improved.
While different circumstances caused the great financial crisis in 2008, the underlying business model at Sun and the demand for affordable housing, which Sun provides, resulted in significant growth in the five years after the GFC. We anticipate that our RV resort business will demonstrate a similar pattern, as it provides similar affordability in a market with proven strong demand and limited supply. Our RV resorts provide an affordable vacation option where guests can travel an average of 2-3 hours safely in their own vehicles without the need to get on a plane, stay in a hotel, or congregate in a public space. For now, the pandemic has galvanized our operations team to stay ahead of the situation and steer us in the right direction. They meet daily to ensure that residents, guests, and Sun team members are receiving compassion and unparalleled service during these times.
They monitor local shelter-in-place mandates and are literally writing the playbook on how to navigate this fluid situation. There is no precedent for what the world or Sun is experiencing. We've had to make some extremely difficult but necessary decisions to ensure that Sun continues to be the nation's premier owner/operator of manufactured housing and RV communities. John and Karen will now provide additional operational and financial updates. John?
Thank you, Gary. I'll start with a recap on the strong performance and metrics in the first quarter, after which I'll provide specific details regarding the impact of the pandemic on operations, financials, and the actions we've taken. As Gary mentioned, we were tracking strongly ahead of expectations for the quarter and delivered excellent same-community growth even after observing disruptions from the onset of shelter-in-place ordinances in mid to late March. Our total portfolio ended the first quarter 96.7% occupied, improving 30 basis points over last year, and we added 300 revenue-producing sites even as shelter-in-place restrictions were put into effect. Our same community NOI increased 6.7% year-over-year, driven by a 5.2% increase in same-community revenues and a 1.8% increase in same-community expenses.
Same-community manufactured housing revenue growth was 6.2%, annual RV revenues grew by 9.6%, and transient RV revenues decreased by 6% as we felt the first effects of COVID-19-related social distancing orders in March. In the first quarter, we saw same-community occupancy increase to 98.4% from 96.6% in the first quarter of 2019. Even as social distancing began to impact traffic at our properties, home sales remained strong with sales of 763 homes, of which 119 were new homes and 234 were rent-to-home conversions. A core strength of Sun's operations team is the continual emphasis on refining our contingency planning and emergency preparedness and disaster recovery protocols, which are in place to rapidly deal with various out-of-the-ordinary circumstances.
By late February, the team began deploying recommended protocols throughout the portfolio and assessing how best to balance compliance with health-related orders and the delivery of essential services to our residents and guests, which dictated a number of changes in the field. The steps we implemented are aimed to help ensure the safety of our residents, guests, and team members, assist our residents who are facing extreme financial challenges, and to support our local communities wherever we can. In terms of health and safety, we seamlessly implemented work from home for all positions that can be remote. We enhanced our cleaning protocols, closed public amenities, and discontinued social gatherings. Our on-site offices remain available for essential services. We have also stepped up our communications and virtual servicing options for current and prospective residents.
We have adopted a financial hardship program to provide forbearance under certain terms to residents impacted financially by the pandemic and temporarily suspend evictions, late fees, and rental rate increases. For residents that qualify for the financial hardship program, rent will be deferred through May and be payable in 12 equal installments beginning in July 2020. We estimate the deferred rent equates to $1.9 million for each of the two months, and it includes resident-owned homes on sites and our manufactured housing rental units. Now I'll provide some details related to the current quarter that will help frame our best estimate of financial expectations with regard to the actions just described and the impact of the pandemic. We are very pleased with April rent collections. In our manufactured housing portfolio, as Gary indicated earlier, we have collected 98% of our April rent to date.
While we are experiencing lower traffic at the communities as would be expected with shelter-in-place mandates, we are still seeing demand for move-ins and actually expect fewer move-outs during this time. For the month of April, while our total application count is down approximately 13% on a year-over-year basis, web applications are up 111% and represent 45% of total applications compared to only 19% in April the prior year. Our technology platform has the capability to capture online applications and steer prospective residents to use Sun's web services. Our platform also has the capabilities to provide remote virtual home showings and tours, allowing us to nimbly adapt in the face of this evolving landscape. Now, we would like to provide some perspective on our RV portfolio. Our portfolio consists of over 26,000 annual sites and approximately 22,000 transient sites.
The annual RV sites are located in resorts that are open year-round, as well as resorts that are open on a seasonal basis. The majority of our annual sites are either park models or sites where RVs are tied down and the guest has made significant investments in personalizing their sites by building decks, indoor/outdoor rooms, and porches, and installing landscaping and hardscaping, essentially making these very permanent in nature. These guests return year after year to what is typically their vacation home. On the transient side of our RV business, it has been our experience for more than 25 years that most of Sun's transient RV guests enjoy the convenience and safety of driving in their own vehicle to a vacation destination they are familiar with and comfortable at.
Based on many years of operating experience and engagement with our transient guests, we believe they are likely to return to our resorts when shelter-in-place and non-essential travel restrictions are lifted. Historically, over 50% of our transient RV guests return to the same resort each year, providing a predictable and steady income stream. For the time being, however, we have received an increased number of reservation cancellations related to shelter-in-place directives. Additionally, we have 44 RV resorts that would have been open on or around April 1st that are being prohibited from opening by local authorities. As of now, we expect these resorts to open at various points in May as restrictions are lifted. Thus far, for May and June, guests are calling frequently inquiring about our opening date and taking a wait-and-see approach with regard to their planned vacations.
Forecasting for what we know related to cancellations, bookings, resorts that are not currently open, and the fact Memorial Day weekend is included in this quarter, our best estimate for the second quarter includes a reduction of $10 million of transient revenue from our original budget expectations. In addition to this forecasted reduction of transient RV revenue just discussed, based on the current environment, there are a number of additional revenue sources that could be impacted temporarily. These include lower manufactured housing revenue due to rental increases being deferred and lower occupancy gains, lower annual RV revenue related to fewer transient-to-annual site conversions and the associated rent pickup, lower other and ancillary income due to various fees not being collected as a result of delayed resort openings, and lower home sales and brokerage fees as a result of stay-at-home orders and travel restrictions.
Despite the near-term disruption to our operations, we are confident in the long-term viability of our mission and business model, which has stood the test of time throughout many of the most difficult economic times and downturns over the life of the industry. During those periods, this industry has been characterized by its steady, predictable cash flow, fueled by strong consumer demand for home ownership as well as the demand for affordable vacationing. I would now like to turn the call over to Karen to discuss our financial results, balance sheet, and provide a summary of the potential impact to our second quarter as a result of the pandemic. Karen?
Thank you, John. I will begin by reviewing our financial results, followed by a discussion of our balance sheet, as well as the estimated financial implications the response to the COVID-19 pandemic has had on our business operations and of the actions we have taken to date. For the quarter ended March 31st, 2020, we reported $1.22 per share in core funds from operations, $0.01 ahead of the top end of our previously provided guidance range for the quarter. We ended the first quarter with approximately $380 million of unrestricted cash on hand after we completed a 15-year, $230 million term loan at a rate of 3% that closed at the end of March. The properties for this new financing had been encumbered by a $99.6 million term loan due to mature in 2021, with an interest rate of 5.84%. That was paid off at the end of February.
Additionally, we paid off four term loans totaling approximately $20 million that were set to mature this year. We have no material debt maturities until 2023. We ended the quarter with $3.9 billion in debt outstanding, with a weighted average interest rate of 3.64% and a weighted average maturity of 10.6 years. Our net debt to trailing 12-month recurring EBITDA ratio at March 31st was 5.6 times. We also have flexibility on our balance sheet to support our business operations. As of March 31st, we had $223 million of capacity on our revolving line of credit and have the ability to increase the size of our facility by $350 million- $1.1 billion. Also, our significant unencumbered asset base, comprised of 143 properties, provides us with additional potential funding capacity. We took decisive measures to reduce our cash spend for the remainder of 2020.
We have suspended non-essential capital expenditures of $240 million, including expansions, ground-up developments, home purchases, and other capital projects. From a corporate perspective, we've made compensation reductions at the board and executive management level and implemented other compensation savings throughout the company through salary reductions and furloughing certain team members. We have reviewed our general and administrative cost line items and reduced expenses where possible. From the operations perspective, we continue to maintain our properties at the highest level but may see a reduction in certain variable operating costs. More broadly, when taking into consideration the disruptions to our business in both our manufactured housing and RV resort operations discussed earlier by John, and including projected expense savings, the forecasted reduction to our original budget for the second quarter is between $15 million-$18 million. As we said earlier, the pandemic is a fluid situation.
As shelter in place and travel restrictions are lifted, we expect to see an improvement in our level of transient RV reservations and our second quarter forecast. For now, we've shared what we believe to be our best estimate based on the information we have today. In summary, we've taken a number of actions to support the company should the impact of the pandemic persist. We are confident that we have the financial flexibility to ensure our ability to operate in this unprecedented time. Thank you for joining us today. This concludes our prepared remarks. We would like to open the call now for questions.
Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one to ask a question at this time. One moment while we poll for our first question. Our first question comes from John Kim with BMO Capital Markets. Please proceed with your question.
Thank you. I was wondering, John, if you could provide some more color on when you think the RV campgrounds will be open as far as the 44 that are not open yet, and how many of those 44 are going to be open by Memorial Day?
Hey, John. Thanks for the question. Yeah, that is going to be sort of aligned with the government mandates and as things start to lift along the way. I think we said in our prepared remarks, we expect that to sort of start happening in May. I think one of the important things with that, John, is the fact that we often talk about our playbook and the decades of refining that playbook, and all this situation is just a different version of operating conditions pre, during, post natural disasters and hurricanes and things like that that we deal with. As you might imagine, pretty much as soon as this all started to happen, we were preparing our plans for reopening at the same time.
Through that, we've developed a three-phase plan associated with reopening that will align with those government mandates that all you really have to do is drop in the open date, and it guides to prepare our team leading to opening all the way through to normal operation status. The plan itself includes proper sequencing of reopening the resorts and the amenities, starting with ones that provide better space for social distancing. We're really looking forward to welcoming our guests back. Again, that's going to be more along the lines of whatever the governmental authorities allow us to do.
With the $58 million range, is that just a wide range of outcomes for how many of those open by Memorial Day, just given that's a crucial date for you?
That's good. I think that we want to be cautious. We have been in touch with the counties, cities, and municipalities, who have asked us to extend our openings from generally April 1st with the anticipation that they would be opening up at some time in May. We haven't heard otherwise. As of right now, we do expect to get them all open within the month of May, but that's of course going to be dependent on any change that we hear from the municipalities.
Okay, once the RVs are open, is there anything you're going to do on your end to limit capacity just to, I guess, limit human interaction?
Well, one of the interesting things about an RV resort as opposed to other hospitality options is there's sort of some of that built-in spread because everybody has their own site that they're on, which promotes, all by itself, social distancing. Some of the things that we've done, some examples of some things, John, that we've already put into play to get ahead of that is we've actually already stocked social distancing signage for all entry points that we have within our communities, as well as we've seen those before at conferences where they put the stickers down on the floors, and we can do that in the more highly trafficked areas to promote that as well.
I think one of the really key things that we're able to do is utilize our online express check-in capabilities, which allows guests to check in and pay early, allowing them for a touchless arrival process as well. There's a lot of that sort of thing that's happening, but I think by its very nature, an RV resort promotes a lot of social distancing right out of the gate. I also think that Gary and I both agree that many people are going to want to get out of their houses.
Part of the question is just on your ability and confidence on demand for RVs, just given the amount of near-term cancellations that you've received so far.
I think we all sort of feel the same way. We can't brush aside or make light of the financial impact, especially to transient RV from the current pandemic. We really have to look through to the value of the fundamental business proposition and the platform itself, which as John sort of indicated, we're providing an affordable and cost-effective vacation experience in what really is a safe, self-contained RV, and we're doing it to all various demographics. We would expect really, on the other side of this unfortunate circumstance, that people that are looking for a unique and desirable experience like RV offers to both individuals, retirees, and families spending time in our rustic camping resorts or one of our high-end glamping experience, really should be in high demand.
Anecdotally, I've heard from at least a dozen people over the last two weeks or so looking to inquire on where to get an RV. Of course, if we can get them a discount, if we can assist them. As recent as yesterday, one of our board members wanted to let me know that they bought an RV. They've actually left Michigan, and they are on their way first to Colorado, traveling out to California. We really feel that the RV business could benefit strongly from this unfortunate situation. I think we'll see that rather rapidly when the impact of stay-at-home and travel bans are lifted.
Appreciate the comment. Thank you.
Our next question comes from Nicholas Joseph with Citi. Please proceed with your question.
Thanks. I appreciate the details on April MH collections but I'm just curious, as we go forward over the next few months, if you expect any performance differential given different demand drivers between the all-age and the age-restricted MH portfolios and then maybe within owned versus rental as well?
Yeah. Nick, this is John. I think the way I'd characterize is that with the April rent collections that the all-age portfolio showed its resilience. I think it also benefits along with the rest of the portfolio, sort of the proactive nature of our culture. One of the things that we've said as a company for a decade or longer has been the best revenue producing site you can gain is the one you never lose. I think everybody knows that our average residency in our communities is 14 years, and there's a value proposition. There's a reason why people want to be there. From a rent collection standpoint in April, rent collections for all age communities is on par with last month.
I think that that really kind of shows, coming right into this when there was a lot of uncertainty coming into this pandemic, that that value proposition that people see is realized. The other thing I'd add as a component of the all-age portfolio is a bit of a reminder that we shared before that from a retiree standpoint, where you compare 55 plus versus all age, not every person who is over 55 wants to live in a retirement community. We have a healthy component of residents within our all-age communities that are retirees. Those folks are going to be less impacted by things like job loss than others. I think looking out, looking into May, I would add that I think that our hardship program did what it was designed to do, and that takes the pressure off as well.
I would like to think that some of the things that our government has done to help promote what people's needs are with the stimulus plan and the checks that are starting to arrive, that I would hope that the experience for May rent collection will be similar to that of April.
Thanks. Anything on the rental program versus owned in terms of different risk profiles going forward?
No, it's pretty much about 50/50 as far as the utilization of the hardship program. It's very similar in nature. I will tell you that an interesting thing that's happened during this terrible crisis has been that with the rental home program, our applications in April are actually up versus where they were of April last year.
Thanks. Just, you mentioned the change to expansion and development spend. How does that impact the Australian JV, or were those comments just for the U.S.?
Well, speaking to the U.S., really, I think one of the things on our expansion development spend has been the fact that. I think we might've shared this before as well. I apologize if I'm repeating myself, but we're fortunate that we're always in a position, thinking ahead and staying a year and a half ahead of what the supply needs are for expansion sites. As we shared on other calls, we had 2,100 sites built in 2017, 1,200 sites in 2018, 1,200 in 2019. We've got a good supply of sites. Tinkering it down for a bit really shouldn't have an impact.
Yeah, as to John's remarks, did reflect what's taking place in the U.S. With regard to Ingenia in Australia, it's a little bit of a different business proposition. They've been a little bit less impacted. I'd like to think maybe that social distancing, the size of the country versus the population allows them a little bit more natural barrier to what we're experiencing here in the U.S. Demand has remained strong. There's been, as John said, a tendency for people who maybe were going to move out of Sun Communities to kind of postpone those moves. In the sort of opposite way in Australia, they queue up what they refer to as their settlements or their home closings long in advance. That's dictated by a resident's home sale, primary home sale, as they're downsizing.
They look to downsize to release equity to be used in their retirement. It's very, very important to them to understand and know that as they sell their home, they have a place to go. If anything, there's been a little bit of an acceleration, those who have reservations and plan to move into the Ingenia community. That's been a positive thing there.
Thank you.
Our next question comes from Drew Babin with Baird. Please proceed with the question.
Hey, good morning.
Morning, Drew.
Quick question just related to the transient reopenings. I know a lot of the rent premium that you're able to command associated with just upgraded amenities, things like that at the properties. Can you give a little more detail on kind of what amenities might be available upon the opening? Which amenities may kind of lag, and whether, as far as there are bookings or any clarity, is that affecting pricing at all?
Yeah, the natural sequence, Drew, with amenity openings is going to start with ones that are more social distancing promoting. We'll call it more of the outdoor type stuff that we have out there where there can be less contact. I think some of the things that we're doing in terms of signage, one of the things that we're also doing, we're starting to secure a supply of infrared thermometers where we can check temperatures as our team comes in for the day and as well as when our guests check in, and those sorts of things. We're actually going to be providing wristbands to everybody indicated that they've been cleared. Again, just out of an abundance of caution that we do this and helping to build confidence for our guests coming back because they're excited to come back, and they want to be there.
That's sort of the sequencing of it. We've not to date made any adjustments in terms of rate.
Okay. Appreciate the color there. Just one follow-up from me, just on the pace of expansions and development deliveries. I know you mentioned that online traffic is up. Obviously, on-site traffic has been down amidst all of this. Is there any kind of update on the pacing of the delivery of revenue-producing sites throughout this year, whether it's sites that were put in place kind of coming into the year at the end of last year, or ones that you may be planning on adding later this year? Any update there as we model it out?
Yeah. As far as the expansion site deliveries, again, I don't think that there's a lot of impact from an availability or supply standpoint. It really is, from an application standpoint, as we shared in the remarks, the apps are down only 13% thus far. We've got excellent web-based connectivity to be able to continue to collect applications and as well as do virtual showings and that sort of thing. Frankly, I've seen a lot of great creativity out of our teams out in the field.
Again, it's going to line up more with, without being able to tell you exactly what's going to happen, it's all going to line up with as these things start to ease up a little bit, but in the end, we are still building a pipeline that we will remain engaged with those prospects and customers that when the time comes and we can sort of be at the pace we're used to being at, it's all really about the throughput that we do after that.
Thanks, John, and appreciate the transparency on the transient reopening plans. It's very helpful. Thank you.
Thank you.
Our next question comes from John Pawlowski with Green Street Advisors. Please proceed with the question.
Hey, thanks for the time. Maybe just a clarification on the first question. It sounds like, and correct me if I'm wrong, it sounds like the $10 million in transient revenue impact assumes basically zero revenue coming in during April, and the vast majority of May revenue is still achievable. Is that fair?
I would say there's somewhere in between there. [crosstalk]
It ramps up to our highest level in June, obviously. You're correct. There's a minimal amount of revenues expected in April, and it ramping up from there.
Okay. The 98% collections on the MH side in April, is that a cash or GAAP basis? Roughly 3% of rents are deferred. Is the cash collection 95 or is the cash collection actually 98?
98.
Okay. Final one from me. $15 million-$18 million of 2Q impact on NOI, $10 million of it coming from the transient side. What kind of impact are you assuming on the MH portfolio in 2Q?
Okay. John, we knew that providing that estimated impact, impacted dollar amount, was going to lead you to be wanting some more details. We felt it was the right thing to do. So we've done it. Our effort is to provide as much detail as we could. Therefore, these are the things that we have included. A transient revenue reduction of $10 million. That makes up the majority of the range. The remaining $5 million-$8 million is split between home sales and brokerage, other and ancillary annual revenues, and MH revenues. It's net of expense reductions.
Okay. Understood. Are you assuming at this point that you see any diminution in occupancy on the MH portfolio?
No.
All right. Sounds good. Thanks for the time.
Yeah. Thank you.
Our next question comes from Wes Golladay with RBC. Please proceed with your question.
Hey. Good morning, everyone. How is financing availability changing for home sales? Are you seeing any changes on that?
No, I haven't.
It hasn't been good before. It hasn't gotten any better. It hasn't gotten any worse.
Fair to say there's not going to be doing any more on that front?
I think that we actually have a subcommittee on our board of directors that is really focused on improving availability of home financing. They were on track to be able to work through probably the first manufactured housing loan securitization at the end of second quarter. I know John's worked very hard on it. Do we have any more color at this, John?
Not at this time. [inaudible]
Yep. We will keep everybody posted, but the home financing today is pretty much the same as it was two months ago.
Got you. Okay. Looking at the CARES Act, the increased unemployment benefits that many of the tenants should receive, will you need to extend that hardship program beyond May and hold off on rent increases? A quick addition to that one is how many leases in MH expire in 2Q?
Well, it's a good question because that's precisely why we designed the program to include April and May, because the thought process was the hardship program, that it was going to be very difficult for people to go out and find jobs in April. We wanted to kind of wrap it over both of those months, and as we talked about in our prepared remarks, begin the lighter payments starting over a 12-month period of time in July. I think that provides a lot of support for our residents. My hope would be that that will, one, promote, like I said earlier on this call, good May rent collections as well as put some things at ease for people as they're kind of putting things back together when the pandemic starts to hopefully taper down.
The rent collection is by quarter. Does someone have those available? Rent increases? [inaudible]
Do you want-
The expirations.
I'm sorry, what was the last part of your question, Wes?
Yeah. It was, yeah, sorry, it's just the expirations. Like how many expired this quarter?
I don't have the detail of that number.
No problem. Maybe one last one. What is the typical booking window for transient RV?
It's a pretty wide range. It can be anywhere from a year in advance, and a lot of people that are booking before they even leave the resort from the year before, could be the day of.
Okay, thanks a lot.
Yep.
Our next question comes from Joshua Dennerlein with Bank of America. Please proceed with your question.
Hey, guys. Thanks for the question. Just to follow up on the last question. For MH rent increases, do those all go through on January 1, or are they staggered throughout the year? If so, have you considered maybe not pushing through any rent increase for people this year?
Yeah. The increases that are already out there are about 50%, is what happens in the first quarter. Those are already out, Josh. We have put a hold on further rent increases until things start to open up or ease up a little bit. I think, when you look at this sort of overall, it'll have about maybe a 50 basis point impact on the guided rent increase for 2020. That's our best estimate at this point in time.
Okay, that's all related to MH communities, or is that also with RV communities for annuals?
It's both.
Both. Okay.
Yep.
Okay. If the pandemic goes on for longer and maybe if things can't start opening up in May on the RV side, has there been any thought given to how you would respond as far as if people can't access their sites on the RV side, maybe reducing their rent for the year? Anything on that front?
Yeah, I think it's something that we talk about and something that we're just going to have to watch and continue to see what does take place, just like across the country. We have been conservative in our thought process through the quarter, slowly ramping up, as we indicated earlier. We have deferred rental increases for the time being. We have eliminated all fees related to late charges and various other fees that we often do collect, and tried to be there for our residents. As John said, our residents are there long-term. It'll just be a work in process. If things continue on, we're going to have to be able to provide additional transparency to you and to the market.
We do think that we really did take a really good hard look at our best estimates, and that's what we put forward with the concept of letting them know.
Great. Thank you, guys.
Thank you.
Thank you.
Our next question comes from Todd Stender with Wells Fargo. Please proceed with your question.
Hi, everyone. I hope you're all well.
Same to you too, Todd.
Thanks. Back to the hardship program. You guys are talking about April and May tenants then pick up payments in July. What about June? It seems like they jumped over June, but maybe not.
Yeah. It's sort of like what Gary said just a minute ago. I think that we launched the program even before April rent was due, trying to think ahead of it. We are thinking about that, but the thought process was just to cover April and May based on the data that we had at the time that's out there to try and set up the program so it sort of fits with the various models that are out there, and to provide some space between when things hopefully start to slow down and when people have to start making payments back. I would say, as far as June is concerned, Todd, it's something that we will closely monitor as things evolve or emerge as we need to.
If they were to start making their first rental payment in June, we didn't want to burden them with the forbearance payback. That's why we delayed it an additional 30 days.
Right.
That's also why we took the route of 12 equal payments to extend it over the longest period of time to make it easiest on the residents.
All right, I get it. Thank you. April and May will begin being paid back in July-
Sure.
-but June will be just your standard June payment?
That's correct.
Got it. Thank you. Appreciate that.
Yep.
Foregoing base compensation for the board and executives. Do you have any numbers around this, just for us to start looking at our G&A estimate going forward?
We don't really have numbers.
I'd have to add them up really quickly in my head here. They just came out in a proxy, Todd. I think you can add them up and take a quarter of that.
Okay, it's one quarter's worth for now.
Yeah.
Depending on the duration of this.
Yeah, correct.
Okay.
We were very pleased proactively. Our board of directors reached out to us very early on in this situation and wanted to do whatever they could. Obviously, from a distance and strategically, they've done some, but they continue to do some, but they were able to contribute financially in this way.
Okay. Just for Karen, your line of credit balance ramped but also so did your cash balance. Have you spelled out how much you've tapped to just kind of sit on cash t o preserve liquidity right now?
I'm sorry, I missed the last part, Todd.
Well, tapping your line. How much of that are you just sitting on cash just to preserve liquidity right now?
Yeah. You're right. We had $380 million of unrestricted cash on hand. We just finished a $230 million financing. We drew about $200 million additionally on our line, and we haven't drawn subsequent to quarter end. We feel like that is enough to meet our near-term needs. We did our distribution in April. We think that that balance less distributions, I think we did about $70 million-$75 million in distributions, puts us in a good position to have the flexibility we need at this point in time.
Got it. Thank you.
Our next question comes from Samir Khanal with Evercore. Please proceed with your question.
Yeah. Good afternoon, guys. I guess for Gary, for you, do you have any early read as to what the impact has done to maybe underwriting for new deals or kind of unlevered IRRs, cap rates? I mean, you've acquired a lot over the last few years, and on the other side of this, could you see the opportunity to maybe pick up any assets? I just want to kind of get your initial thoughts here.
That's an excellent question. I would state the following, that we have seen significant interest in three different areas. We're seeing several types of communities that, until recent events, were not likely to be for sale. That's been probably the biggest surprise. Properties that were or have been for sale but were not priced appropriately. We're getting a lot of inbound traffic, and entering in dialogue and discussions as to whether or not those are things we want to look at right now. Properties that could have been acquired, but we didn't act on, or we weren't proactive to getting to them, they're starting to surface. I think the overall response is that we are seeing kind of a turned up interest in acquisition offerings. As I said in my earlier remarks, we're taking a very cautious approach to those acquisitions.
I think that for the time being, we're seeing a more realistic approach to how sellers might be thinking about their valuations.
Okay. All right. Thanks for that. Appreciate it.
Mm-hmm. Yep.
Our next question comes from John Kim with BMO. Please proceed with the question.
Thanks. Just a follow-up. On your suspension of rent increases in MH, what would be the catalyst or catalysts to return back to your projected escalations? Would they be macroeconomic factors or metrics tied specifically within your portfolio?
Yeah. I think we've talked about this. I think the metrics specifically tied to our portfolio. Sitting in March, along with the rest of the world, we had no idea how our residents or when our residents would be paying April rent. We've gotten through April rent really pleasantly pleased. We've now got a look at May. Assuming that we see continued strength with our residents and the desire to stay in the communities, we'll take it one month at a time. I think it will be a combination of what we see in the macro world, as well as how we feel about the quality of what we're offering against other opportunities and being compassionate to our residents who have stuck by us and who we want to continue sticking by us.
It's a fluid situation and just something that John and the ops team will have to present to management here in making a full decision as we step forward, really month by month. The first thing we'd like to accomplish, as we've shared with everybody, is to get our transient business back and our seasonal communities open. I think having that step behind us will be a positive thing on how we approach when or if we put in rent increases.
Great. Thank you.
Our next question comes from Nicholas Joseph with Citi. Please proceed with the question.
Thanks. Just want to follow up on, I guess, the transient and seasonal revenues. Appreciate the color for the second quarter expectations, but just curious what the scope of revenue that's been received that could be potentially refunded if the properties open later than expected or if the closures remain longer than expected. Thanks.
I don't think the concept of refunding has been anything that we are expecting. I think that if anything were to approach that magnitude or discussion.
I think it's also, Nick, important to note that the vast majority of on the seasonal or the annual side in these seasonal resorts, those sites remain occupied 12 months of the year. Like we shared in the script, where it's either a park model or it's a tied-down unit where they've done significant investment in their sites. Similar to MH, there's a very significant investment that's been made by them. I think that in a lot of frankly, they expect to pay the rent.
It's not something we've been actually contemplating at this time.
Thanks.
Yep.
At this time, I would like to turn the call back to management for closing comments.
I just want to wrap it up by thanking everybody for participating on this call. We've shared and firmly believe that Sun is well-positioned to navigate the COVID-19 pandemic. We provide a highly desirable experience at our communities and our resorts, and we continue to have access to capital and are dedicated to see this through. As always, Karen, John, myself, and others in the company remain around to follow up with any questions that you have, and we look forward to updating you in the near future. Thank you, operator.
Thank you. This does conclude today's teleconference. You may disconnect your lines at this time and have a good night.