Maryland | 1-11718 | 36-3857664 | |||||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File No.) | (IRS Employer Identification Number) | |||||||||||||||
Two North Riverside Plaza | Chicago, | Illinois | 60606 | ||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
||||
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
||||
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
||||
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 Par Value | ELS | New York Stock Exchange |
EQUITY LIFESTYLE PROPERTIES, INC. | ||||||||
Date: October 17, 2023 | By: /s/ Paul Seavey | |||||||
Paul Seavey | ||||||||
Executive Vice President and Chief Financial Officer |
CONTACT: Paul Seavey | FOR IMMEDIATE RELEASE | ||||
(800) 247-5279 | October 16, 2023 |
($ in millions, except per share data) | |||||||||||||||||
FINANCIAL RESULTS | Q3 2023 | Q3 2022 | $ Change | ||||||||||||||
Total Revenues | $ | 388.8 | $ | 381.0 | $ | 7.8 | |||||||||||
Net Income available for Common Stockholders | $ | 77.0 | $ | 67.2 | $ | 9.8 | |||||||||||
Net Income per Common Share - Fully Diluted | $ | 0.41 | $ | 0.36 | $ | 0.05 | |||||||||||
NON-GAAP FINANCIAL MEASURES | Q3 2023 | Q3 2022 | $ Change | ||||||||||||||
Funds from Operations (“FFO”) per Common Share and OP Unit - Fully Diluted | $ | 0.71 | $ | 0.69 | $ | 0.02 | |||||||||||
Normalized Funds from Operations (“Normalized FFO”) per Common Share and OP Unit - Fully Diluted |
$ | 0.71 | $ | 0.70 | $ | 0.01 | |||||||||||
Property operating revenues, excluding deferrals | $ | 347.6 | $ | 332.8 | $ | 14.8 | |||||||||||
Income from property operations, excluding deferrals and property management | $ | 193.7 | $ | 183.9 | $ | 9.8 | |||||||||||
Core Portfolio Performance | Q3 2023 | Q3 2022 | % Change | ||||||||||||||
Core property operating revenues, excluding deferrals | $ | 335.7 | $ | 320.7 | 4.7 | % | |||||||||||
Core Income from property operations, excluding deferrals and property management | $ | 186.2 | $ | 178.4 | 4.4 | % |
i |
ii |
($ in millions, except per share data) | 2023 | ||||||||||||||||||||||
Fourth Quarter | Full Year | ||||||||||||||||||||||
Net Income per Common Share - Fully Diluted | $0.41 to $0.47 | $1.60 to $1.66 | |||||||||||||||||||||
FFO per Common Share and OP Unit - Fully Diluted | $0.70 to $0.76 | $2.78 to $2.84 | |||||||||||||||||||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $0.70 to $0.76 | $2.82 to $2.88 | |||||||||||||||||||||
2022 Actual | 2023 Growth Rates | ||||||||||||||||||||||
Core Portfolio: | Fourth Quarter | Full Year | Fourth Quarter | Full Year | |||||||||||||||||||
MH base rental income | $ | 158.8 | $ | 626.0 | 6.7% to 7.3% | 6.5% to 7.1% | |||||||||||||||||
RV and marina base rental income (3) |
$ | 91.2 | $ | 392.3 | 4.7% to 5.3% | 3.5% to 4.1% | |||||||||||||||||
Property operating revenues | $ | 302.5 | $ | 1,238.1 | 6.3% to 6.9% | 5.4% to 6.0% | |||||||||||||||||
Property operating expenses | $ | 122.0 | $ | 524.1 | 6.3% to 6.9% | 6.2% to 6.8% | |||||||||||||||||
Income from property operations, excluding deferrals and property management | $ | 180.5 | $ | 714.0 | 6.3% to 6.9% | 4.8% to 5.4% | |||||||||||||||||
Non-Core Portfolio: | 2023 Full Year | ||||||||||||||||||||||
Income from property operations, excluding deferrals and property management | $25.5 to $29.5 | ||||||||||||||||||||||
Other Guidance Assumptions: | 2023 Full Year | ||||||||||||||||||||||
Property management and general administrative (4) |
$121.4 to $127.4 | ||||||||||||||||||||||
Debt assumptions: (5) |
|||||||||||||||||||||||
Weighted average debt outstanding | $3,400 to $3,600 | ||||||||||||||||||||||
Interest and related amortization | $129.4 to $135.4 |
iii |
iv |
Financial Highlights |
As of and for the Quarters Ended | |||||||||||||||||
Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | |||||||||||||
Operating Information | |||||||||||||||||
Total revenues | $ | 388.8 | $ | 370.0 | $ | 370.0 | $ | 340.6 | $ | 381.0 | |||||||
Consolidated net income | $ | 80.7 | $ | 66.0 | $ | 86.5 | $ | 76.7 | $ | 70.5 | |||||||
Net income available for Common Stockholders | $ | 77.0 | $ | 62.9 | $ | 82.4 | $ | 73.0 | $ | 67.2 | |||||||
Adjusted EBITDAre (1) |
$ | 172.9 | $ | 162.5 | $ | 176.7 | $ | 159.2 | $ | 166.4 | |||||||
FFO available for Common Stock and OP Unit holders (1)(2) |
$ | 139.7 | $ | 123.4 | $ | 144.1 | $ | 126.6 | $ | 134.4 | |||||||
Normalized FFO available for Common Stock and OP Unit holders (1)(2) |
$ | 139.7 | $ | 129.7 | $ | 144.3 | $ | 128.1 | $ | 136.8 | |||||||
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2) |
$ | 113.7 | $ | 103.1 | $ | 126.2 | $ | 106.9 | $ | 115.6 | |||||||
Common Shares and OP Units Outstanding (In thousands) and Per Share Data |
|||||||||||||||||
Common Shares and OP Units, end of the period | 195,525 | 195,514 | 195,446 | 195,386 | 195,380 | ||||||||||||
Weighted average Common Shares and OP Units outstanding - Fully Diluted | 195,440 | 195,430 | 195,369 | 195,281 | 195,269 | ||||||||||||
Net income per Common Share - Fully Diluted (3) |
$ | 0.41 | $ | 0.34 | $ | 0.44 | $ | 0.39 | $ | 0.36 | |||||||
FFO per Common Share and OP Unit - Fully Diluted | $ | 0.71 | $ | 0.63 | $ | 0.74 | $ | 0.65 | $ | 0.69 | |||||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $ | 0.71 | $ | 0.66 | $ | 0.74 | $ | 0.66 | $ | 0.70 | |||||||
Dividends per Common Share | $ | 0.4475 | $ | 0.4475 | $ | 0.4475 | $ | 0.4100 | $ | 0.4100 | |||||||
Balance Sheet | |||||||||||||||||
Total assets | $ | 5,626 | $ | 5,586 | $ | 5,519 | $ | 5,493 | $ | 5,405 | |||||||
Total liabilities | $ | 4,129 | $ | 4,083 | $ | 4,006 | $ | 3,975 | $ | 3,886 | |||||||
Market Capitalization | |||||||||||||||||
Total debt (4) |
$ | 3,533 | $ | 3,479 | $ | 3,414 | $ | 3,416 | $ | 3,329 | |||||||
Total market capitalization (5) |
$ | 15,990 | $ | 16,557 | $ | 16,534 | $ | 16,038 | $ | 15,607 | |||||||
Ratios | |||||||||||||||||
Total debt / total market capitalization | 22.1 | % | 21.0 | % | 20.6 | % | 21.3 | % | 21.3 | % | |||||||
Total debt / Adjusted EBITDAre (6) |
5.3 | 5.2 | 5.2 | 5.3 | 5.2 | ||||||||||||
Interest coverage (7) |
5.3 | 5.4 | 5.5 | 5.6 | 5.7 | ||||||||||||
Fixed charges(8) |
5.1 | 5.2 | 5.4 | 5.6 | 5.6 |
3Q 2023 Supplemental Financial Information | 1 |
Equity LifeStyle Properties, Inc. |
Consolidated Balance Sheets |
September 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Investment in real estate: | |||||||||||
Land | $ | 2,088,657 | $ | 2,084,532 | |||||||
Land improvements | 4,307,943 | 4,115,439 | |||||||||
Buildings and other depreciable property | 1,228,897 | 1,169,590 | |||||||||
7,625,497 | 7,369,561 | ||||||||||
Accumulated depreciation | (2,401,384) | (2,258,540) | |||||||||
Net investment in real estate | 5,224,113 | 5,111,021 | |||||||||
Cash and restricted cash | 59,680 | 22,347 | |||||||||
Notes receivable, net | 49,684 | 45,356 | |||||||||
Investment in unconsolidated joint ventures | 84,328 | 81,404 | |||||||||
Deferred commission expense | 53,180 | 50,441 | |||||||||
Other assets, net | 155,306 | 181,950 | |||||||||
Total Assets | $ | 5,626,291 | $ | 5,492,519 | |||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Mortgage notes payable, net | $ | 3,005,034 | $ | 2,693,167 | |||||||
Term loan, net | 497,422 | 496,817 | |||||||||
Unsecured line of credit | — | 198,000 | |||||||||
Accounts payable and other liabilities | 189,090 | 175,148 | |||||||||
Deferred membership revenue | 216,021 | 197,743 | |||||||||
Accrued interest payable | 12,296 | 11,739 | |||||||||
Rents and other customer payments received in advance and security deposits | 121,930 | 122,318 | |||||||||
Distributions payable | 87,491 | 80,102 | |||||||||
Total Liabilities | 4,129,284 | 3,975,034 | |||||||||
Equity: | |||||||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2023 and December 31, 2022; none issued and outstanding. |
— | — | |||||||||
Common stock, $0.01 par value, 600,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 186,390,612 and 186,120,298 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively. |
1,917 | 1,916 | |||||||||
Paid-in capital | 1,641,553 | 1,628,618 | |||||||||
Distributions in excess of accumulated earnings | (232,081) | (204,248) | |||||||||
Accumulated other comprehensive income | 15,564 | 19,119 | |||||||||
Total Stockholders’ Equity | 1,426,953 | 1,445,405 | |||||||||
Non-controlling interests – Common OP Units | 70,054 | 72,080 | |||||||||
Total Equity | 1,497,007 | 1,517,485 | |||||||||
Total Liabilities and Equity | $ | 5,626,291 | $ | 5,492,519 |
3Q 2023 Supplemental Financial Information | 2 |
Equity LifeStyle Properties, Inc. |
Consolidated Statements of Income |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 303,334 | $ | 289,016 | $ | 888,440 | $ | 849,411 | |||||||||||||||
Annual membership subscriptions | 16,673 | 16,254 | 48,832 | 47,003 | |||||||||||||||||||
Membership upgrade sales (1) |
3,744 | 3,308 | 10,863 | 9,543 | |||||||||||||||||||
Other income | 15,658 | 15,580 | 51,283 | 43,316 | |||||||||||||||||||
Gross revenues from home sales, brokered resales and ancillary services | 44,795 | 52,547 | 115,841 | 144,937 | |||||||||||||||||||
Interest income | 2,276 | 1,865 | 6,623 | 5,346 | |||||||||||||||||||
Income from other investments, net | 2,333 | 2,399 | 6,897 | 6,920 | |||||||||||||||||||
Total revenues | 388,813 | 380,969 | 1,128,779 | 1,106,476 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating and maintenance | 126,846 | 123,181 | 361,543 | 341,480 | |||||||||||||||||||
Real estate taxes | 19,017 | 17,734 | 56,165 | 56,373 | |||||||||||||||||||
Membership sales and marketing (2) |
5,696 | 5,937 | 16,055 | 15,720 | |||||||||||||||||||
Property management | 19,887 | 19,003 | 58,710 | 55,973 | |||||||||||||||||||
Depreciation and amortization | 50,968 | 52,547 | 152,934 | 152,737 | |||||||||||||||||||
Cost of home sales, brokered resales and ancillary services | 33,471 | 40,224 | 85,880 | 111,894 | |||||||||||||||||||
Home selling expenses and ancillary operating expenses | 7,164 | 7,080 | 21,258 | 21,146 | |||||||||||||||||||
General and administrative (3)(4) |
9,895 | 11,086 | 38,163 | 34,834 | |||||||||||||||||||
Casualty-related charges/(recoveries), net (5) |
— | — | — | — | |||||||||||||||||||
Other expenses (4) |
1,338 | 1,627 | 4,187 | 6,880 | |||||||||||||||||||
Early debt retirement | 68 | — | 68 | 1,156 | |||||||||||||||||||
Interest and related amortization | 33,434 | 29,759 | 99,144 | 85,276 | |||||||||||||||||||
Total expenses | 307,784 | 308,178 | 894,107 | 883,469 | |||||||||||||||||||
Loss on sale of real estate and impairment, net | (949) | (3,747) | (3,581) | (3,747) | |||||||||||||||||||
Income before equity in income of unconsolidated joint ventures | 80,080 | 69,044 | 231,091 | 219,260 | |||||||||||||||||||
Equity in income of unconsolidated joint ventures | 661 | 1,465 | 2,158 | 2,889 | |||||||||||||||||||
Consolidated net income | 80,741 | 70,509 | 233,249 | 222,149 | |||||||||||||||||||
Income allocated to non-controlling interests – Common OP Units | (3,772) | (3,346) | (10,981) | (10,563) | |||||||||||||||||||
Redeemable perpetual preferred stock dividends | — | — | (8) | (8) | |||||||||||||||||||
Net income available for Common Stockholders | $ | 76,969 | $ | 67,163 | $ | 222,260 | $ | 211,578 |
3Q 2023 Supplemental Financial Information | 3 |
Equity LifeStyle Properties, Inc. |
3Q 2023 Supplemental Financial Information | 4 |
Equity LifeStyle Properties, Inc. |
Selected Non-GAAP Financial Measures |
Quarter Ended | |||||
September 30, 2023 | |||||
Income from property operations, excluding deferrals and property management - 2023 Core (1) |
$ | 186.2 | |||
Income from property operations, excluding deferrals and property management - Non-Core (1) |
7.5 | ||||
Property management and general and administrative | (29.8) | ||||
Other income and expenses | 9.2 | ||||
Interest and related amortization | (33.4) | ||||
Normalized FFO available for Common Stock and OP Unit holders (2) |
$ | 139.7 | |||
Early debt retirement | (0.1) | ||||
FFO available for Common Stock and OP Unit holders (2) (3) |
$ | 139.7 | |||
FFO per Common Share and OP Unit - Fully Diluted | $0.71 | ||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $0.71 | ||||
Normalized FFO available for Common Stock and OP Unit holders (2) |
$ | 139.7 | |||
Non-revenue producing improvements to real estate | (26.1) | ||||
FAD for Common Stock and OP Unit holders (2)(3) |
$ | 113.7 | |||
Weighted average Common Shares and OP Units - Fully Diluted | 195.4 |
3Q 2023 Supplemental Financial Information | 5 |
Equity LifeStyle Properties, Inc. |
Reconciliation of Net Income to Non-GAAP Financial Measures |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income available for Common Stockholders | $ | 76,969 | $ | 67,163 | $ | 222,260 | $ | 211,578 | |||||||||||||||
Income allocated to non-controlling interests – Common OP Units | 3,772 | 3,346 | 10,981 | 10,563 | |||||||||||||||||||
Membership upgrade sales upfront payments, deferred, net (1) |
7,044 | 7,777 | 17,178 | 18,228 | |||||||||||||||||||
Membership sales commissions, deferred, net (1) |
(1,178) | (1,206) | (2,728) | (2,746) | |||||||||||||||||||
Depreciation and amortization | 50,968 | 52,547 | 152,934 | 152,737 | |||||||||||||||||||
Depreciation on unconsolidated joint ventures | 1,141 | 1,035 | 3,357 | 2,811 | |||||||||||||||||||
Gain on unconsolidated joint ventures | — | — | (416) | — | |||||||||||||||||||
Loss on sale of real estate and impairment, net | 949 | 3,747 | 3,581 | 3,747 | |||||||||||||||||||
FFO available for Common Stock and OP Unit holders | 139,665 | 134,409 | 407,147 | 396,918 | |||||||||||||||||||
Accelerated vesting of stock-based compensation expense (2) |
— | — | 6,320 | — | |||||||||||||||||||
Early debt retirement | 68 | — | 68 | 1,156 | |||||||||||||||||||
Transaction/pursuit costs | — | 302 | 117 | 3,384 | |||||||||||||||||||
Lease termination expenses |
— | 2,073 | 90 | 2,073 | |||||||||||||||||||
Normalized FFO available for Common Stock and OP Unit holders | 139,733 | 136,784 | 413,742 | 403,531 | |||||||||||||||||||
Non-revenue producing improvements to real estate | (26,065) | (21,145) | (70,751) | (59,252) | |||||||||||||||||||
FAD for Common Stock and OP Unit holders | $ | 113,668 | $ | 115,639 | $ | 342,991 | $ | 344,279 | |||||||||||||||
Net income per Common Share - Basic | $ | 0.41 | $ | 0.36 | $ | 1.19 | $ | 1.14 | |||||||||||||||
Net income per Common Share - Fully Diluted (3) |
$ | 0.41 | $ | 0.36 | $ | 1.19 | $ | 1.14 | |||||||||||||||
FFO per Common Share and OP Unit - Basic | $ | 0.72 | $ | 0.69 | $ | 2.09 | $ | 2.03 | |||||||||||||||
FFO per Common Share and OP Unit - Fully Diluted | $ | 0.71 | $ | 0.69 | $ | 2.08 | $ | 2.03 | |||||||||||||||
Normalized FFO per Common Share and OP Unit - Basic | $ | 0.72 | $ | 0.70 | $ | 2.12 | $ | 2.07 | |||||||||||||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $ | 0.71 | $ | 0.70 | $ | 2.12 | $ | 2.07 | |||||||||||||||
Weighted average Common Shares outstanding - Basic | 186,100 | 185,814 | 186,008 | 185,758 | |||||||||||||||||||
Weighted average Common Shares and OP Units outstanding - Basic | 195,335 | 195,102 | 195,254 | 195,053 | |||||||||||||||||||
Weighted average Common Shares and OP Units outstanding - Fully Diluted | 195,440 | 195,269 | 195,414 | 195,248 |
3Q 2023 Supplemental Financial Information | 6 |
Equity LifeStyle Properties, Inc. |
Consolidated Income from Property Operations (1) |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
MH base rental income (2) |
$ | 167.9 | $ | 159.0 | $ | 498.9 | $ | 475.1 | |||||||||||||||
Rental home income (2) |
3.6 | 3.7 | 11.1 | 11.5 | |||||||||||||||||||
RV and marina base rental income (2) |
112.8 | 109.9 | 326.3 | 317.0 | |||||||||||||||||||
Annual membership subscriptions | 16.7 | 16.3 | 48.8 | 47.0 | |||||||||||||||||||
Membership upgrade sales current period, gross (3) |
10.8 | 11.1 | 28.0 | 27.8 | |||||||||||||||||||
Utility and other income (2)(4) |
35.8 | 32.8 | 107.1 | 92.6 | |||||||||||||||||||
Property operating revenues | 347.6 | 332.8 | 1,020.2 | 971.0 | |||||||||||||||||||
Property operating, maintenance and real estate taxes (2) |
147.0 | 141.8 | 421.3 | 401.3 | |||||||||||||||||||
Membership sales and marketing, gross (3) |
6.9 | 7.1 | 18.8 | 18.5 | |||||||||||||||||||
Property operating expenses | 153.9 | 148.9 | 440.1 | 419.8 | |||||||||||||||||||
Income from property operations, excluding deferrals and property management (1) |
$ | 193.7 | $ | 183.9 | $ | 580.1 | $ | 551.2 | |||||||||||||||
Manufactured home site figures and occupancy averages: | |||||||||||||||||||||||
Total sites | 72,736 | 73,198 | 72,727 | 73,368 | |||||||||||||||||||
Occupied sites | 68,818 | 69,489 | 68,819 | 69,610 | |||||||||||||||||||
Occupancy % | 94.6 | % | 94.9 | % | 94.6 | % | 94.9 | % | |||||||||||||||
Monthly base rent per site | $ | 813 | $ | 763 | $ | 806 | $ | 758 | |||||||||||||||
RV and marina base rental income: | |||||||||||||||||||||||
Annual | $ | 74.1 | $ | 68.0 | $ | 216.2 | $ | 199.0 | |||||||||||||||
Seasonal | 8.5 | 9.5 | 45.9 | 45.6 | |||||||||||||||||||
Transient | 30.2 | 32.4 | 64.2 | 72.4 | |||||||||||||||||||
Total RV and marina base rental income | $ | 112.8 | $ | 109.9 | $ | 326.3 | $ | 317.0 |
3Q 2023 Supplemental Financial Information | 7 |
Equity LifeStyle Properties, Inc. |
Core Income from Property Operations (1) |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change (2) |
2023 | 2022 | Change (2) |
||||||||||||||||||||||||||||||
MH base rental income | $ | 167.8 | $ | 157.0 | 6.8% | $ | 498.5 | $ | 467.2 | 6.7 | % | ||||||||||||||||||||||||
Rental home income | 3.5 | 3.7 | (5.0)% | 11.1 | 11.5 | (3.4) | % | ||||||||||||||||||||||||||||
RV and marina base rental income | 106.4 | 104.3 | 2.0% | 311.2 | 301.1 | 3.4 | % | ||||||||||||||||||||||||||||
Annual membership subscriptions | 16.2 | 15.8 | 2.6% | 47.7 | 45.9 | 4.0 | % | ||||||||||||||||||||||||||||
Membership upgrade sales current period, gross | 10.4 | 10.2 | 1.7% | 27.3 | 26.4 | 3.3 | % | ||||||||||||||||||||||||||||
Utility and other income | 31.4 | 29.7 | 6.0% | 90.1 | 83.5 | 7.9 | % | ||||||||||||||||||||||||||||
Property operating revenues | 335.7 | 320.7 | 4.7% | 985.9 | 935.6 | 5.4 | % | ||||||||||||||||||||||||||||
Utility expense | 41.4 | 40.0 | 3.4% | 115.9 | 108.3 | 7.1 | % | ||||||||||||||||||||||||||||
Payroll | 31.3 | 31.8 | (1.7)% | 89.8 | 86.9 | 3.3 | % | ||||||||||||||||||||||||||||
Repair & maintenance | 25.0 | 23.1 | 8.0% | 72.8 | 66.3 | 9.8 | % | ||||||||||||||||||||||||||||
Insurance and other (3) |
26.5 | 24.2 | 9.6% | 76.6 | 70.7 | 8.4 | % | ||||||||||||||||||||||||||||
Real estate taxes | 18.5 | 16.6 | 11.8% | 54.4 | 52.0 | 4.6 | % | ||||||||||||||||||||||||||||
Membership sales and marketing, gross | 6.7 | 6.6 | 2.3% | 18.6 | 17.8 | 4.2 | % | ||||||||||||||||||||||||||||
Property operating expenses | 149.4 | 142.3 | 5.1% | 428.1 | 402.0 | 6.5 | % | ||||||||||||||||||||||||||||
Income from property operations, excluding deferrals and property management (1) |
$ | 186.2 | $ | 178.4 | 4.4% | $ | 557.7 | $ | 533.5 | 4.5 | % | ||||||||||||||||||||||||
Occupied sites (4) |
68,820 | 69,014 |
3Q 2023 Supplemental Financial Information | 8 |
Equity LifeStyle Properties, Inc. |
Core Income from Property Operations (continued) |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change (1) |
2023 | 2022 | Change (1) |
||||||||||||||||||||||||||||||
Core manufactured home site figures and occupancy averages: | |||||||||||||||||||||||||||||||||||
Total sites | 72,475 | 72,455 | 72,466 | 72,464 | |||||||||||||||||||||||||||||||
Occupied sites | 68,760 | 68,950 | 68,761 | 68,914 | |||||||||||||||||||||||||||||||
Occupancy % | 94.9 | % | 95.2 | % | 94.9 | % | 95.1 | % | |||||||||||||||||||||||||||
Monthly base rent per site | $ | 813 | $ | 759 | $ | 805 | $ | 753 | |||||||||||||||||||||||||||
Core RV and marina base rental income: | |||||||||||||||||||||||||||||||||||
Annual (2) |
$ | 70.4 | $ | 65.2 | 8.0% | $ | 206.4 | $ | 191.0 | 8.1% | |||||||||||||||||||||||||
Seasonal | 8.0 | 8.8 | (8.5)% | 44.5 | 42.2 | 5.5% | |||||||||||||||||||||||||||||
Transient | 28.0 | 30.3 | (7.6)% | 60.3 | 67.9 | (11.2)% | |||||||||||||||||||||||||||||
Total Seasonal and Transient | $ | 36.0 | $ | 39.1 | (7.8)% | $ | 104.8 | $ | 110.1 | (4.8)% | |||||||||||||||||||||||||
Total RV and marina base rental income | $ | 106.4 | $ | 104.3 | 2.0% | $ | 311.2 | $ | 301.1 | 3.4% | |||||||||||||||||||||||||
Core utility information: | |||||||||||||||||||||||||||||||||||
Income | $ | 18.0 | $ | 16.6 | 8.1% | $ | 52.0 | $ | 47.2 | 10.2% | |||||||||||||||||||||||||
Expense | 41.4 | 40.0 | 3.4% | 115.9 | 108.4 | 6.9% | |||||||||||||||||||||||||||||
Expense, net | $ | 23.4 | $ | 23.4 | —% | $ | 63.9 | $ | 61.2 | 4.4% | |||||||||||||||||||||||||
Utility recovery rate (3) |
43.5 | % | 41.5 | % | 44.9 | % | 43.5 | % |
3Q 2023 Supplemental Financial Information | 9 |
Equity LifeStyle Properties, Inc. |
Non-Core Income from Property Operations (1) |
Quarter Ended | Nine Months Ended | ||||||||||
September 30, 2023 | September 30, 2023 | ||||||||||
MH base rental income | $ | 0.2 | $ | 0.5 | |||||||
RV and marina base rental income | 6.4 | 15.1 | |||||||||
Annual membership subscriptions | 0.4 | 1.1 | |||||||||
Utility and other income | 4.5 | 17.0 | |||||||||
Membership upgrade sales current period, gross | 0.4 | 0.7 | |||||||||
Property operating revenues | 11.9 | 34.4 | |||||||||
Property operating expenses (2) |
4.4 | 12.0 | |||||||||
Income from property operations, excluding deferrals and property management (1) |
$ | 7.5 | $ | 22.4 | |||||||
3Q 2023 Supplemental Financial Information | 10 |
Equity LifeStyle Properties, Inc. |
Home Sales and Rental Home Operations |
Home Sales - Select Data | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total new home sales volume (1) |
285 | 331 | 687 | 957 | |||||||||||||||||||
New home sales gross revenues (1) |
$ | 27,684 | $ | 32,850 | $ | 69,036 | $ | 92,228 | |||||||||||||||
Total used home sales volume | 84 | 81 | 252 | 250 | |||||||||||||||||||
Used home sales gross revenues | $ | 1,020 | $ | 972 | $ | 3,229 | $ | 3,337 | |||||||||||||||
Brokered home resales volume | 160 | 223 | 495 | 674 | |||||||||||||||||||
Brokered home resales gross revenues | $ | 704 | $ | 931 | $ | 2,255 | $ | 2,591 |
Rental Homes - Select Data | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Rental operations revenues (2) |
$ | 9,406 | $ | 10,420 | $ | 29,491 | $ | 32,635 | |||||||||||||||
Rental home operations expense (3) |
1,762 | 1,483 | 3,879 | 4,094 | |||||||||||||||||||
Depreciation on rental homes (4) |
2,726 | 2,521 | 8,275 | 7,538 | |||||||||||||||||||
Occupied rentals: (5) |
|||||||||||||||||||||||
New | 2,086 | 2,594 | |||||||||||||||||||||
Used | 259 | 355 | |||||||||||||||||||||
Total occupied rental sites | 2,345 | 2,949 |
As of September 30, 2023 | As of September 30, 2022 | ||||||||||||||||||||||
Cost basis in rental homes: (6) |
Gross | Net of Depreciation | Gross | Net of Depreciation | |||||||||||||||||||
New | $ | 249,568 | $ | 207,303 | $ | 221,840 | $ | 180,299 | |||||||||||||||
Used | 12,606 | 7,481 | 15,226 | 8,657 | |||||||||||||||||||
Total rental homes | $ | 262,174 | $ | 214,784 | $ | 237,066 | $ | 188,956 |
3Q 2023 Supplemental Financial Information | 11 |
Equity LifeStyle Properties, Inc. |
Total Sites |
Summary of Total Sites as of September 30, 2023 | |||||
Sites (1) |
|||||
MH sites | 72,700 | ||||
RV sites: | |||||
Annual | 35,300 | ||||
Seasonal | 12,500 | ||||
Transient | 14,900 | ||||
Marina slips | 6,900 | ||||
Membership (2) |
25,800 | ||||
Joint Ventures (3) |
3,600 | ||||
Total | 171,700 |
3Q 2023 Supplemental Financial Information | 12 |
Equity LifeStyle Properties, Inc. |
Memberships - Select Data |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||
Member Count (1) |
115,680 | 116,169 | 125,149 | 128,439 | 125,339 | ||||||||||||||||||||||||
Thousand Trails Camping Pass (TTC) Origination | 41,484 | 44,129 | 50,523 | 51,415 | 37,936 | ||||||||||||||||||||||||
TTC Sales | 19,267 | 20,587 | 23,923 | 23,237 | 17,434 | ||||||||||||||||||||||||
RV Dealer TTC Activations | 22,217 | 23,542 | 26,600 | 28,178 | 20,502 | ||||||||||||||||||||||||
Number of annuals (2) |
5,938 | 5,986 | 6,320 | 6,390 | 6,217 | ||||||||||||||||||||||||
Number of upgrade sales (3) |
2,919 | 3,373 | 4,863 | 4,068 | 3,022 | ||||||||||||||||||||||||
(In thousands, unaudited) | |||||||||||||||||||||||||||||
Annual membership subscriptions | $ | 51,015 | $ | 53,085 | $ | 58,251 | $ | 63,215 | $ | 48,832 | |||||||||||||||||||
RV base rental income from annuals | $ | 19,634 | $ | 20,761 | $ | 23,127 | $ | 25,945 | $ | 20,691 | |||||||||||||||||||
RV base rental income from seasonals/transients | $ | 20,181 | $ | 18,126 | $ | 25,562 | $ | 24,316 | $ | 17,562 | |||||||||||||||||||
Membership upgrade sales current period, gross | $ | 19,111 | $ | 21,739 | $ | 36,270 | $ | 34,661 | $ | 28,041 | |||||||||||||||||||
Utility and other income | $ | 2,422 | $ | 2,426 | $ | 2,735 | $ | 2,626 | $ | 1,979 | |||||||||||||||||||
Membership Sales Activity | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Membership upgrade sales current period, gross | $ | 10,788 | $ | 11,085 | $ | 28,041 | $ | 27,771 | |||||||||||||||
Membership upgrade sales upfront payments, deferred, net | (7,044) | (7,777) | (17,178) | (18,228) | |||||||||||||||||||
Membership upgrade sales | $ | 3,744 | $ | 3,308 | $ | 10,863 | $ | 9,543 | |||||||||||||||
Membership sales and marketing, gross | $ | (6,874) | $ | (7,143) | $ | (18,783) | $ | (18,466) | |||||||||||||||
Membership sales commissions, deferred, net | 1,178 | 1,206 | 2,728 | 2,746 | |||||||||||||||||||
Membership sales and marketing | $ | (5,696) | $ | (5,937) | $ | (16,055) | $ | (15,720) |
3Q 2023 Supplemental Financial Information | 13 |
Equity LifeStyle Properties, Inc. |
Market Capitalization |
Capital Structure as of September 30, 2023 | |||||||||||||||||||||||||||||
Total Common Shares/Units | % of Total Common Shares/Units | Total | % of Total | % of Total Market Capitalization | |||||||||||||||||||||||||
Secured Debt | $ | 3,033 | 85.8 | % | |||||||||||||||||||||||||
Unsecured Debt | 500 | 14.2 | % | ||||||||||||||||||||||||||
Total Debt (1) |
$ | 3,533 | 100.0 | % | 22.1 | % | |||||||||||||||||||||||
Common Shares | 186,390,612 | 95.3 | % | ||||||||||||||||||||||||||
OP Units | 9,134,373 | 4.7 | % | ||||||||||||||||||||||||||
Total Common Shares and OP Units | 195,524,985 | 100.0 | % | ||||||||||||||||||||||||||
Common Stock price at September 30, 2023 | $ | 63.71 | |||||||||||||||||||||||||||
Fair Value of Common Shares and OP Units | $ | 12,457 | 100.0 | % | |||||||||||||||||||||||||
Total Equity | $ | 12,457 | 100.0 | % | 77.9 | % | |||||||||||||||||||||||
Total Market Capitalization | $ | 15,990 | 100.0 | % |
3Q 2023 Supplemental Financial Information | 14 |
Equity LifeStyle Properties, Inc. |
Debt Maturity Schedule |
Year | Outstanding Debt | Weighted Average Interest Rate | % of Total Debt | Weighted Average Years to Maturity | |||||||||||||||||||
Secured Debt | |||||||||||||||||||||||
2023 | $ | — | — | % | — | % | — | ||||||||||||||||
2024 | — | — | % | — | % | — | |||||||||||||||||
2025 | 91,158 | 3.45 | % | 2.58 | % | 1.53 | |||||||||||||||||
2026 | — | — | % | — | % | — | |||||||||||||||||
2027 | — | — | % | — | % | — | |||||||||||||||||
2028 | 203,171 | 4.19 | % | 5.75 | % | 4.96 | |||||||||||||||||
2029 | 272,694 | 4.92 | % | 7.72 | % | 5.94 | |||||||||||||||||
2030 | 275,385 | 2.69 | % | 7.79 | % | 6.51 | |||||||||||||||||
2031 | 253,082 | 2.46 | % | 7.16 | % | 7.65 | |||||||||||||||||
2032 | 202,000 | 2.47 | % | 5.72 | % | 8.97 | |||||||||||||||||
Thereafter | 1,735,430 | 4.07 | % | 49.12 | % | 13.38 | |||||||||||||||||
Total | $ | 3,032,920 | 3.77 | % | 85.85 | % | 10.4 | ||||||||||||||||
Unsecured Term Loans | |||||||||||||||||||||||
2023 | $ | — | — | % | — | % | — | ||||||||||||||||
2024 | — | — | % | — | % | — | |||||||||||||||||
2025 | — | — | % | — | % | — | |||||||||||||||||
2026 | 300,000 | 1.81 | % | 8.49 | % | 2.58 | |||||||||||||||||
2027 | 200,000 | 4.88 | % | 5.66 | % | 3.36 | |||||||||||||||||
Thereafter | — | — | % | — | % | — | |||||||||||||||||
Total | $ | 500,000 | 3.04 | % | 14.15 | % | 2.9 | ||||||||||||||||
Total Secured and Unsecured | $ | 3,532,920 | 3.67 | % | 100.00 | % | 9.3 | ||||||||||||||||
Line of Credit Borrowing (1) |
— | — | % | — | % | — | |||||||||||||||||
Note Premiums and Unamortized loan costs | (30,465) | ||||||||||||||||||||||
Total Debt, Net | $ | 3,502,455 | 3.95% (2) |
100% | |||||||||||||||||||
3Q 2023 Supplemental Financial Information | 15 |
Equity LifeStyle Properties, Inc. |
Non-GAAP Financial Measures Definitions and Reconciliations |
3Q 2023 Supplemental Financial Information | 16 |
Equity LifeStyle Properties, Inc. |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(amounts in thousands) |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income available for Common Stockholders | $ | 76,969 | $ | 67,163 | $ | 222,260 | $ | 211,578 | |||||||||||||||
Redeemable perpetual preferred stock dividends | — | — | 8 | 8 | |||||||||||||||||||
Income allocated to non-controlling interests – Common OP Units | 3,772 | 3,346 | 10,981 | 10,563 | |||||||||||||||||||
Equity in income of unconsolidated joint ventures | (661) | (1,465) | (2,158) | (2,889) | |||||||||||||||||||
Income before equity in income of unconsolidated joint ventures | 80,080 | 69,044 | 231,091 | 219,260 | |||||||||||||||||||
Loss on sale of real estate and impairment, net | 949 | 3,747 | 3,581 | 3,747 | |||||||||||||||||||
Membership upgrade sales upfront payments, deferred, net | 7,044 | 7,777 | 17,178 | 18,228 | |||||||||||||||||||
Gross revenues from home sales, brokered resales and ancillary services | (44,795) | (52,547) | (115,841) | (144,937) | |||||||||||||||||||
Interest income | (2,276) | (1,865) | (6,623) | (5,346) | |||||||||||||||||||
Income from other investments, net | (2,333) | (2,399) | (6,897) | (6,920) | |||||||||||||||||||
Membership sales commissions, deferred, net | (1,178) | (1,206) | (2,728) | (2,746) | |||||||||||||||||||
Property management | 19,887 | 19,003 | 58,710 | 55,973 | |||||||||||||||||||
Depreciation and amortization | 50,968 | 52,547 | 152,934 | 152,737 | |||||||||||||||||||
Cost of home sales, brokered resales and ancillary services | 33,471 | 40,224 | 85,880 | 111,894 | |||||||||||||||||||
Home selling expenses and ancillary operating expenses | 7,164 | 7,080 | 21,258 | 21,146 | |||||||||||||||||||
General and administrative (1)(2) |
9,895 | 11,086 | 38,163 | 34,834 | |||||||||||||||||||
Casualty-related charges/(recoveries), net (3) |
— | — | — | — | |||||||||||||||||||
Other expenses (1) |
1,338 | 1,627 | 4,187 | 6,880 | |||||||||||||||||||
Early debt retirement | 68 | — | 68 | 1,156 | |||||||||||||||||||
Interest and related amortization | 33,434 | 29,759 | 99,144 | 85,276 | |||||||||||||||||||
Income from property operations, excluding deferrals and property management |
193,716 | 183,877 | 580,105 | 551,182 | |||||||||||||||||||
Membership upgrade sales upfront payments, and membership sales commissions, deferred, net | (5,866) | (6,571) | (14,450) | (15,482) | |||||||||||||||||||
Property management | (19,887) | (19,003) | (58,710) | (55,973) | |||||||||||||||||||
Income from property operations | $ | 167,963 | $ | 158,303 | $ | 506,945 | $ | 479,727 |
3Q 2023 Supplemental Financial Information | 17 |
Equity LifeStyle Properties, Inc. |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(amounts in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Consolidated net income | $ | 80,741 | $ | 70,509 | $ | 233,249 | $ | 222,149 | |||||||||||||||
Interest income | (2,276) | (1,865) | (6,623) | (5,346) | |||||||||||||||||||
Membership upgrade sales upfront payments, deferred, net (1) |
7,044 | 7,777 | 17,178 | 18,228 | |||||||||||||||||||
Membership sales commissions, deferred, net (1) |
(1,178) | (1,206) | (2,728) | (2,746) | |||||||||||||||||||
Real estate depreciation and amortization | 50,968 | 52,547 | 152,934 | 152,737 | |||||||||||||||||||
Other depreciation and amortization | 1,338 | 1,327 | 4,028 | 3,273 | |||||||||||||||||||
Interest and related amortization | 33,434 | 29,759 | 99,144 | 85,276 | |||||||||||||||||||
Loss on sale of real estate and impairment, net | 949 | 3,747 | 3,581 | 3,747 | |||||||||||||||||||
Adjustments to our share of EBITDAre of unconsolidated joint ventures | 1,795 | 1,439 | 5,201 | 4,256 | |||||||||||||||||||
EBITDAre | 172,815 | 164,034 | 505,964 | 481,574 | |||||||||||||||||||
Stock-based compensation expense | — | — | 6,320 | — | |||||||||||||||||||
Early debt retirement | 68 | — | 68 | 1,156 | |||||||||||||||||||
Transaction/pursuit costs | — | 302 | 117 | 3,384 | |||||||||||||||||||
Lease termination expenses | — | 2,073 | 90 | 2,073 | |||||||||||||||||||
Adjusted EBITDAre | $ | 172,883 | $ | 166,409 | $ | 512,559 | $ | 488,187 |
3Q 2023 Supplemental Financial Information | 18 |
Equity LifeStyle Properties, Inc. |
(Unaudited) | Fourth Quarter 2023 | Full Year 2023 | |||||||||
Net income per Common Share - Fully Diluted | $0.41 to $0.47 | $1.60 to $1.66 | |||||||||
Depreciation and amortization | 0.27 | 1.07 | |||||||||
Membership upgrade sales deferred, net and membership sales commissions deferred, net | 0.02 | 0.09 | |||||||||
Loss on sale of real estate and impairment, net | — | 0.02 | |||||||||
FFO per Common Share and OP Unit - Fully Diluted | $0.70 to $0.76 | $2.78 to $2.84 | |||||||||
Accelerated vesting of stock-based compensation expense | — | 0.04 | |||||||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $0.70 to $0.76 | $2.82 to $2.88 |
3Q 2023 Supplemental Financial Information | 19 |
Equity LifeStyle Properties, Inc. |