In 2023, the mark-to-market rent increase for new homeowners has been approximately 13%. In 2023, our RV revenue from annual or seasonal customers increased 7.2% as compared to 2022. We saw continued strength in Florida and Arizona. Our transient business continued to be a large driver of our new customer base for both annual and seasonal revenue. We had over 1,000 transient customers convert to an annual or seasonal customer. Continuing to expose new customers to our properties through the transient stay is an important building block for our revenue stream. Turning to 2024, we have issued guidance of $2.88 at the midpoint for next year. The demand for our MH communities continues to increase. Over the last 5 years, we have sold over 35 new homes -- 3,500 new homes in our communities.

These new homes further enhance the look of the community as new and existing homeowners throughout the portfolio showcased their pride of ownership. Our guidance for 2024 reflects the strength in our business. Our guidance is built based on the operating environment at each property and continuous communication with our residents. Next, I would like to update you on our 2024 dividend policy. The Board has approved setting the annual dividend rate of $1.91 per share, a 6.7% increase. The stability and growth of our cash flow, our solid balance sheet and the strong underlying trends in our business are the primary drivers of the decision to increase the dividend. Historically, we've been able to take advantage of opportunities due to the free cash flow generated from our operations.

That will continue in 2024 as this dividend increase of $23.5 million is roughly equivalent to our anticipated increase in FFO for 2024. In 2024, we expect to have approximately $100 million of discretionary capital after meeting our obligations for dividend payments, recurring capital expenditures and principal payments. Over the past 10 years, we have increased our dividend by an average of 11% per year, and this year's dividend marks the 20th consecutive year of annual dividend growth. I want to take a moment to express my gratitude to our dedicated team members who have worked tirelessly to drive our success. I am proud of their hard work and commitment that contributed to the results for 2023. I will now turn it over to Patrick to provide more details about property operations.

Patrick Waite : Thanks, Marguerite. In 2023, long-term residents and guests at our core MH, RV and Marina properties, continue to demonstrate consistent demand, which supported occupancy and strong rate growth. As we approach the February peak of our winter Sunbelt season, I want to provide some additional color on the drivers of the nearly 70% of our revenue that comes from residents and guests at our Sunbelt properties in Florida, California and Texas. Since our IPO in February 1993, we've been talking about the aging of the baby boomers and migration trends to the Sunbelt. In 2023, baby boomers celebrated birthdays, ranging from the ages of 59 to 77. And we're in the midst of 69 million baby boomers, supporting a pace of 10,000 people turning 65 every day in the U.S. That trend spans the 19-year period from 2010 to 2029.

Given our core residents and guests stay with us 10 years or more, we have another 15 to 20 years of engagement with the baby boomers, as a key driver of demand at our properties. I'd also point out that subsequent generational cohorts, Gen X, Millennials and Gen Z follow similar aging trends as the baby boomers. Note that millennials will start to retire in 20 years, and they represent a population of 74 million, or 5 million more than the baby boom generation. Overall, the U.S. population, 55 plus, is projected to increase 6.4% over the next 5 years. While our Sunbelt properties in Florida, California, Arizona and Texas are projected to increase 8.5%, outpacing the national growth rate by 200 basis points. The leader in our Sunbelt states is Florida, our largest state, with strong 55-plus population growth of 9.4% over the next 5 years, outpacing the national average by approximately 300 basis points.

Our second largest state is California with a 55 population projected to grow in line with the nation at 6.4% over the next 5 years. Two important points of -- about California. First, MH and RV properties offer great value to customers, given high-quality locations and high demand. And second, the submarkets where our properties are concentrated are projected to outpace the 55-plus population in California by 70 basis points, emphasizing the strength of our locations within the state. For these key Sunbelt markets that represent nearly 75% of ELS total property revenue, MH, RV and Marina annual customers comprise more than 90% of that revenue while seasonal and transient guests represent 10%, that makes us consistent with the balance of our portfolio.

These revenues in our Sunbelt markets benefit from baby boomer demand and associated population growth trends. Over the last 5 years across the Sunbelt, our MH portfolio has produced 6% revenue growth and our RV portfolio 6.3% revenue growth. Those stable long term revenue streams have consistently been our priority and have consistently provided year-over-year NOI growth. For perspective, our portfolio footprint and current operating characteristics as a result of an investment focus starting in 1993. We focus our acquisition strategy on key submarkets in Florida, California, Arizona and Texas, and those markets have represented 2/3 of our growth through acquisitions over the last 30 years. A couple of final key points to highlight. The contribution of our long-term Sunbelt investments.

Over the last 5 years, 70% of our new home sales and 2/3 of our completed development expansion have been from our Sunbelt portfolio. Those are among the many contributors to the stable operating results referenced above. I'll now turn it over to Paul.

Paul Seavey : Thanks, Patrick, and good morning, everyone. I will review our fourth quarter and full year 2023 results and provide an overview of our first quarter and full year 2024 guidance. We reported normalized FFO of $0.71 per share for the fourth quarter and $2.75 per share for the full year. Full year growth in normalized FFO was 4.7%. Strong core portfolio performance generated 5% NOI growth for the full year. Core community-based rental income increased 6.8% for the full year compared to 2022. Our rate growth was the result of increases to in-place residents as well as marketing rents to market on turnover at an average increase of 13% during 2023. Also during 2023, we increased homeowner occupancy by 554 sites. Full year core resort and marina-based rental income growth from annuals was 8.1%, with 7.6% from rate increases and 50 basis points from occupancy gains.

RV and marina-base rental income from seasonals increased 2.6% for the full year compared to 2022. Base rent from transient was lower than prior year, mainly as a result of unfavorable weather patterns we've discussed throughout the year. For the full year, net contribution from our membership business, which consists of annual subscription and upgrade sales revenues offset by sales and marketing expenses, was $57.2 million, an increase of 6.7% compared to the prior year. The net deferral impact for the full year was $17.7 million. Subscription revenues increased 3.7%. During 2023, we sold almost 3,900 upgrades with an average sale price of approximately $9,250. Full year growth in core utility and other income is mainly the result of increases in utility income.

Our recovery percentage of 44.9% increased approximately 90 basis points compared to 2022. Other income includes $3.1 million of revenue associated with sites leased to provide housing for displaced residents in Fort Myers, Florida. Fourth quarter core operating expenses increased 8.7% compared to the same period in 2022 and were higher than our guidance as a result of real estate tax increases. Several counties in Florida increased assessed values and millage rates. We have filed appeals and noticed residents of pass-throughs of increased real estate taxes where lease terms allow it. The pass-throughs will be recognized as revenue in 2024. Our noncore properties contributed $5.2 million in the quarter and $27.6 million for the full year. Property management and corporate G&A were $117 million for the full year.

And other income and expenses net, which includes our sales operations, joint venture income as well as interest and other corporate income was $29.8 million for the year. Our interest and amortization expenses were $132.3 million for the full year, and our full year weighted average debt balance was $3.5 billion. The weighted average rate was 3.8%. The press release and supplemental package provide an overview of 2024, 1st quarter and full year earnings guidance. The following remarks are intended to provide context for our current estimate of future results. All growth rate ranges in revenue and expense projections are qualified by the risk factors included in our press release and supplemental package. Our guidance for 2024 full year normalized FFO is $2.88 per share at the midpoint of our guidance range of $2.83 to $2.93.

We project core property operating income growth of 5.6% at the midpoint of our range of 5.1% to 6.1%. We project the noncore properties will generate between $14 million and $18 million of NOI during 2024. Our property management and G&A expense guidance range is slightly lower than our 2023 actual expense, primarily as a result of our assumptions for reduced administrative and payroll expenses. We've also provided guidance ranges for our weighted average debt balance and interest expense in the supplemental package. The full year guidance model makes no assumptions regarding acquisitions, other capital events or the use of free cash flow we expect to generate in 2024. In the core portfolio, we project the following full year growth rate ranges.

4.8% to 5.8% for core revenues, 4.5% to 5.5% for core expenses and 5.1% to 6.1% for core rev NOI. Full year guidance assumes core MH rent growth in the range of 5.5% to 6.5%. We assume occupancy in our stabilized MH portfolio will be flat during 2024. Full year guidance for combined RV and marina rent growth is 4.9% to 5.9%. Annual RV and marina rent represents just over 2/3 of the full year RV and marina rent, and we expect 7% growth in rental income from annuals at the midpoint of our guidance range. Our full year core expense growth assumptions include our current projections for future utility rate increases as well as a real estate tax increase assumption that is consistent with our long-term historical experience. Our first quarter guidance assumes normalized FFO per share in the range of $0.75 to $0.81, which represents approximately 27% of full year normalized FFO per share.

Core property operating income growth is projected to be in the range of 6.7% to 7.3% for the first quarter. First quarter growth in MH and combined RV and marina rents are generally in line with our full year assumptions. We project first quarter annual RV and Marina rent to be approximately $72.9 million at the midpoint of our guidance range. 2024 is a leap year. So as we do every 4 years, we will have a slightly higher allocation of annual RV rent to the month of February as a result of the extra day. The incremental rent represents approximately 100 basis points of the first quarter 2024 growth. Our guidance assumes first quarter seasonal and transient RV revenues perform in line with our current reservation pacing. I'll now provide some comments on the financing market and our balance sheet.

We have no scheduled debt maturities in 2024. Our $300 million term loan has an in-place swap that fixes the all-in cost of debt at 1.8% until late March. Current all-in cost of floating at swap expiration is 6.7%. Current secured debt terms are 10 years at coupons between 5.5% and 6.25%, 60% to 75% loan-to-value and 1.4 to 1.6x debt service coverage. We continue to see strong interest from GSEs, life companies and CMBS lenders to lend for 10-year terms. High-quality, age-qualified MH assets continue to command best financing terms. Our $500 million line of credit currently has approximately $435 million available. We have $500 million of capacity under our ATM. Our weighted average secured debt maturity is approximately 10 years. Our debt to adjusted EBITDA is 5.3x, and our interest coverage is 5.2x.

We continue to place high importance on balance sheet flexibility, and we believe we have multiple sources of capital available to us. Now we would like to open it up for questions.

Operator: [Operator Instructions] Our first question comes from the line of Josh Dennerlein from Bank of America.

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