Continued Strong Performance; Increases 2024
Earnings Guidance
CHICAGO, July 22,
2024 /PRNewswire/ -- Equity LifeStyle
Properties, Inc. (NYSE: ELS) (referred to herein as "we," "us," and
"our") today announced results for the quarter and six months ended
June 30, 2024. All per share results
are reported on a fully diluted basis unless otherwise noted.
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FINANCIAL
RESULTS
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($ in millions,
except per share data)
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Quarter Ended June
30,
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2024
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2023
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$
Change
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% Change
(1)
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Net Income per Common
Share
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$
0.42
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$
0.34
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$
0.08
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24.3 %
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Funds from Operations
("FFO") per Common Share and OP Unit
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$
0.69
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$
0.61
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$
0.08
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13.5 %
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Normalized Funds from
Operations ("Normalized FFO") per Common Share and OP
Unit
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$
0.66
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$
0.64
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$
0.02
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2.9 %
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Six Months Ended
June 30,
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2024
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2023
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$
Change
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% Change
(1)
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Net Income per Common
Share
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$
1.01
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$
0.78
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$
0.23
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29.4 %
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FFO per Common Share
and OP Unit
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$
1.55
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$
1.33
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$
0.22
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16.6 %
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Normalized FFO per
Common Share and OP Unit
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$
1.44
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$
1.36
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$
0.08
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5.9 %
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1. Calculations prepared
using actual results without rounding.
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Operations Update
Normalized FFO per Common Share and OP Unit for the quarter
ended June 30, 2024 was $0.66, representing a 2.9% increase compared to
the same period in 2023, outperforming the midpoint of our guidance
range of $0.64. Normalized FFO for
the six months ended June 30, 2024,
was $1.44 per Common Share and OP
Unit, representing a 5.9% increase compared to the same period in
2023. Core property operating revenues increased 4.6% and Core
income from property operations, excluding property management
increased 5.5% for the quarter ended June
30, 2024, compared to the same period in 2023. For the six
months ended June 30, 2024, Core
property operating revenues increased 5.2% and Core income from
property operations, excluding property management increased 6.4%
compared to the same period in 2023.
MH
Core MH base rental income for the quarter ended June 30, 2024 increased 6.2% compared to the same
period in 2023, which reflects 6.0% growth from rate increases and
0.2% from occupancy gains. Core MH homeowners increased by 171, and
we sold 255 new homes during the quarter ended June 30, 2024. The new homes sold had an average
sales price of approximately $89,000.
Core MH base rental income for the six months ended June 30, 2024 increased 6.3% compared to the same
period in 2023, which reflects 6.1% growth from rate increases and
0.2% from occupancy gains.
RV and Marina
Core RV and marina base rental income for the quarter ended
June 30, 2024 increased 2.0% compared
to the same period in 2023. Core RV and marina annual base rental
income increased 6.6% for the quarter ended June 30, 2024, compared to the same period in
2023. Core RV and marina base rental income for the six months
ended June 30, 2024 increased 4.0%
compared to the same period in 2023. Core RV and marina annual base
rental income increased 7.3% for the six months ended June 30, 2024, compared to the same period in
2023.
Property Operating Expenses
Core property operating expenses, excluding property management
for the quarter ended June 30, 2024
increased 3.4% compared to the same period in 2023. For the six
months ended June 30, 2024, Core
property operating expenses, excluding property management
increased 3.7% compared to same period in 2023.
Balance Sheet Activity
On July 18, 2024, we closed
on a modification of our $500 million
unsecured line of credit to extend the maturity date to
July 18, 2028 and add an option to
extend the maturity date on our $300
million senior unsecured term loan to April 16, 2027. All other material terms,
including interest rate terms, will remain the same.
Guidance Update (1)
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($ in millions,
except per share data)
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2024
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Third
quarter
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Full
Year
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Net Income per Common
Share
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$0.42 to
$0.48
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$1.89 to
$1.99
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FFO per Common Share
and OP Unit
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$0.69 to
$0.75
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$2.96 to
$3.06
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Normalized FFO per
Common Share and OP Unit
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$0.69 to
$0.75
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$2.86 to
$2.96
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2023
Actual
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2024 Growth
Rates
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Core
Portfolio:
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Third
quarter
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Full
Year
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Third
quarter
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Full
Year
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MH base rental
income
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$
167.8
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$
668.5
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5.7% to 6.3%
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5.6% to 6.6%
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RV and marina base
rental income (2)
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$
109.5
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$
413.5
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2.4% to 3.0%
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3.5% to 4.5%
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Property operating
revenues
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$
332.8
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$
1,297.7
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4.1% to 4.7%
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4.5% to 5.5%
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Property operating
expenses, excluding property management
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$
149.9
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$
562.3
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4.1% to 4.7%
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3.3% to 4.3%
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Income from property
operations, excluding property management
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$
182.9
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$
735.4
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4.2% to 4.8%
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5.4% to 6.4%
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Non-Core
Portfolio:
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2024 Full
Year
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Income from property
operations, excluding property management
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$14.0 to
$18.0
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Other Guidance
Assumptions:
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2024 Full
Year
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Property management and
general administrative
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$113.2 to
$119.2
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Debt
assumptions:
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Weighted average debt
outstanding
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$3,400 to
$3,600
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Interest and related
amortization
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$140.6 to
$146.6
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1.
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Third quarter and full
year 2024 guidance represent management's estimate of a range of
possible outcomes. The midpoint of the ranges reflect management's
estimate of the most likely outcome based on our current view of
existing market conditions and assumptions. Actual results could
vary materially from management's estimates presented above if any
of our assumptions, including occupancy and rate changes, our
ability to manage expenses in an inflationary environment, our
ability to integrate and operate recent acquisitions and costs to
restore property operations and potential revenue losses following
storms or other unplanned events, are incorrect. See
Forward-Looking Statements in this press release for additional
factors impacting our 2024 guidance assumptions. See Non-GAAP
Financial Measures Definitions and Reconciliations at the end of
the supplemental financial information for definitions of FFO and
Normalized FFO and a reconciliation of Net income per Common Share
- Fully Diluted to FFO per Common Share and OP Unit - Fully Diluted
and Normalized FFO per Common Share and OP Unit - Fully
Diluted.
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2.
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Core RV and marina
annual revenue represents approximately 67.4% and 69.9% of third
quarter 2024 and full year 2024 RV and marina base rental income
guidance, respectively. Core RV and marina annual revenue third
quarter 2024 growth rate range is 6.3% to 6.9% and the full year
2024 growth rate range is 6.5% to 7.5%.
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About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment
trust ("REIT") with headquarters in Chicago. As of July 22, 2024, we own or
have an interest in 452 properties in 35 states and British Columbia consisting of 172,866
sites.
For additional information, please contact our Investor
Relations Department at (800) 247-5279 or at
investor_relations@equitylifestyle.com.
Conference Call
A live audio webcast of our conference call discussing these
results will take place tomorrow, Tuesday, July 23, 2024, at
10:00 a.m. Central Time. Please visit
the Investor Relations section at www.equitylifestyleproperties.com
for the link. A replay of the webcast will be available for two
weeks at this site.
Forward-Looking Statements
In addition to historical information, this press release
includes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. When used,
words such as "anticipate," "expect," "believe," "project,"
"estimate," "guidance," "intend," "may be" and "will be" and
similar words or phrases, or the negative thereof, unless the
context requires otherwise, are intended to identify
forward-looking statements and may include, without limitation,
information regarding our expectations, goals or intentions
regarding the future, and the expected effect of our acquisitions.
Forward-looking statements, including our guidance concerning Net
Income, FFO and Normalized FFO per share data, and certain growth
rates, by their nature, involve estimates, projections, goals,
forecasts and assumptions and are subject to risks and
uncertainties that could cause actual results or outcomes to differ
materially from those expressed in a forward-looking statement due
to a number of factors, which include, but are not limited to the
following: (i) the mix of site usage within the portfolio; (ii)
yield management on our short-term resort and marina sites; (iii)
scheduled or implemented rate increases on community, resort and
marina sites; (iv) scheduled or implemented rate increases in
annual payments under membership subscriptions; (v) occupancy
changes; (vi) our ability to attract and retain membership
customers; (vii) change in customer demand regarding travel and
outdoor vacation destinations; (viii) our ability to manage
expenses in an inflationary environment; (ix) changes in debt
service and interest rates; (x) our ability to integrate and
operate recent acquisitions in accordance with our estimates; (xi)
our ability to execute expansion/development opportunities in the
face of supply chain delays/shortages; (xii) completion of pending
transactions in their entirety and on assumed schedule; (xiii) our
ability to attract and retain property employees, particularly
seasonal employees; (xiv) ongoing legal matters and related fees;
(xv) costs to restore property operations and potential revenue
losses following storms or other unplanned events; and (xvi) the
potential impact of, and our ability to remediate, material
weaknesses in our internal control over financial reporting. For
further information on these and other factors that could impact us
and the statements contained herein, refer to our filings with the
Securities and Exchange Commission, including the "Risk Factors"
and "Forward-Looking Statements" sections in our most recent Annual
Report on Form 10-K and any subsequent Quarterly Reports on Form
10-Q. These forward-looking statements are based on management's
present expectations and beliefs about future events. As with any
projection or forecast, these statements are inherently susceptible
to uncertainty and changes in circumstances. We are under no
obligation to, and expressly disclaim any obligation to, update or
alter our forward-looking statements whether as a result of such
changes, new information, subsequent events or otherwise.
Supplemental Financial Information
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Financial Highlights
(1)(2)
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(In millions,
except Common Shares and OP Units outstanding and per share data,
unaudited)
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As of and for the
Quarters Ended
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June 30,
2024
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Mar 31,
2024
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Dec 31,
2023
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Sep 30,
2023
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Jun 30,
2023
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Operating
Information
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Total
revenues
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$
380.0
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$
386.6
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$
360.6
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$
388.8
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$
370.0
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Consolidated net
income
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$ 82.1
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$
115.3
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$ 96.4
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$ 80.7
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$ 66.0
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Net income available
for Common Stockholders
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$ 78.3
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$
109.9
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$ 91.9
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$ 77.0
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$ 62.9
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Adjusted
EBITDAre
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$
164.3
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$
186.3
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$
171.1
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$
167.0
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$
157.7
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FFO available for
Common Stock and OP Unit holders
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$
134.7
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$
167.4
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$
148.5
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$
133.8
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$
118.6
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Normalized FFO
available for Common Stock and OP Unit holders
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$
128.5
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$
152.7
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$
138.2
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$
133.9
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$
124.9
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Funds Available for
Distribution ("FAD") for Common Stock and OP Unit
holders
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$
108.3
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$
136.9
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$
109.2
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$
107.8
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$ 98.3
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Common Shares and OP
Units Outstanding (In thousands) and Per Share
Data
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Common Shares and OP
Units, end of the period
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195,621
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195,598
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195,531
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195,525
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195,514
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Weighted average Common
Shares and OP Units outstanding - Fully Diluted
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195,465
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195,545
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195,475
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195,440
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195,430
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Net income per Common
Share - Fully Diluted (3)
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$ 0.42
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$ 0.59
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$ 0.49
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$ 0.41
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$ 0.34
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FFO per Common Share
and OP Unit - Fully Diluted
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$ 0.69
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$ 0.86
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$ 0.76
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$ 0.68
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$ 0.61
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Normalized FFO per
Common Share and OP Unit - Fully Diluted
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$ 0.66
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$ 0.78
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$ 0.71
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$ 0.68
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$ 0.64
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Dividends per Common
Share
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$ 0.4775
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$ 0.4775
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$ 0.4475
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$ 0.4475
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$ 0.4475
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Balance
Sheet
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Total assets
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$
5,645
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$
5,630
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$
5,614
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$
5,626
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$
5,586
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Total
liabilities
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$
4,135
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$
4,110
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$
4,115
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$
4,129
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$
4,083
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Market
Capitalization
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Total debt
(4)
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$
3,499
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$
3,507
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$
3,548
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$
3,533
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$
3,479
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Total market
capitalization (5)
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$ 16,240
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$ 16,104
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$ 17,341
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$ 15,990
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$ 16,557
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Ratios
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Total debt / total
market capitalization
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21.5 %
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21.8 %
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20.5 %
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22.1 %
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21.0 %
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Total debt / Adjusted
EBITDAre (6)
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5.1
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5.1
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5.3
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5.4
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5.4
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Interest coverage
(7)
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5.1
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5.2
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5.2
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5.3
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5.4
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Fixed charges
(8)
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5.1
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5.1
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5.1
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5.1
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5.2
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1.
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See Non-GAAP Financial
Measures Definitions and Reconciliations at the end of the
supplemental financial information for definitions of Adjusted
EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of
Consolidated net income to Adjusted EBITDAre.
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2.
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See page 6 for a
reconciliation of Net income available for Common Stockholders to
Non-GAAP financial measures FFO available for Common Stock and
OP Unit holders, Normalized FFO available for Common Stock and OP
Unit holders and FAD for Common Stock and OP Unit
holders.
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3.
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Net income per Common
Share - Fully Diluted is calculated before Income allocated to
non-controlling interest - Common OP Units.
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4.
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Excludes deferred
financing costs of approximately $27.8 million as of June 30,
2024.
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5.
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See page 14 for the
calculation of market capitalization as of June 30,
2024.
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6.
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Calculated using
trailing twelve months Adjusted EBITDAre.
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7.
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Calculated by dividing
trailing twelve months Adjusted EBITDAre by the interest
expense incurred during the same period.
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8.
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See Non-GAAP Financial
Measures Definitions and Reconciliations at the end of the
supplemental financial information for a definition of fixed
charges. This ratio is calculated by dividing trailing twelve
months Adjusted EBITDAre by the sum of fixed charges and preferred
stock dividends, if any, during the same period.
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Consolidated Balance
Sheets
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(In thousands,
except share and per share data)
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June 30,
2024
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December 31,
2023
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(unaudited)
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Assets
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Investment in real
estate:
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Land
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$
2,088,682
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$
2,088,657
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Land
improvements
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4,490,978
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4,380,649
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Buildings and other
depreciable property
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1,225,474
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1,236,985
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7,805,134
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7,706,291
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Accumulated
depreciation
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(2,544,276)
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(2,448,876)
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Net investment in real
estate
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5,260,858
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5,257,415
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Cash and restricted
cash
|
35,658
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29,937
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Notes receivable,
net
|
51,504
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49,937
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Investment in
unconsolidated joint ventures
|
86,439
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85,304
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Deferred commission
expense
|
54,882
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53,641
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Other assets,
net
|
156,134
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|
137,499
|
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Total
Assets
|
$
5,645,475
|
|
$
5,613,733
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Mortgage notes
payable, net
|
$
2,959,443
|
|
$
2,989,959
|
|
Term loans,
net
|
498,007
|
|
497,648
|
|
Unsecured line of
credit
|
14,000
|
|
31,000
|
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Accounts payable and
other liabilities
|
177,819
|
|
151,567
|
|
Deferred membership
revenue
|
228,099
|
|
218,337
|
|
Accrued interest
payable
|
11,978
|
|
12,657
|
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Rents and other
customer payments received in advance and security
deposits
|
152,433
|
|
126,451
|
|
Distributions
payable
|
93,402
|
|
87,493
|
|
Total
Liabilities
|
4,135,181
|
|
4,115,112
|
|
Equity:
|
|
|
|
|
Preferred stock, $0.01
par value, 10,000,000 shares authorized as of June 30, 2024 and
December 31, 2023; none issued and outstanding
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—
|
|
—
|
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Common stock, $0.01 par
value, 600,000,000 shares authorized as of June 30, 2024 and
December 31, 2023; 186,516,405 and 186,426,281 shares issued and
outstanding as of June 30, 2024 and December 31, 2023,
respectively
|
1,917
|
|
1,917
|
|
Paid-in
capital
|
1,646,160
|
|
1,644,319
|
|
Distributions in
excess of accumulated earnings
|
(213,486)
|
|
(223,576)
|
|
Accumulated other
comprehensive income
|
5,292
|
|
6,061
|
|
Total Stockholders'
Equity
|
1,439,883
|
|
1,428,721
|
|
Non-controlling
interests – Common OP Units
|
70,411
|
|
69,900
|
|
Total
Equity
|
1,510,294
|
|
1,498,621
|
|
Total Liabilities
and Equity
|
$
5,645,475
|
|
$
5,613,733
|
|
Consolidated
Statements of Income
|
|
|
(In thousands,
unaudited)
|
|
|
Quarters Ended June
30,
|
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Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rental
income
|
$ 300,788
|
|
$ 288,655
|
|
$ 617,386
|
|
$ 585,106
|
|
Annual membership
subscriptions
|
16,369
|
|
16,189
|
|
32,584
|
|
32,159
|
|
Membership upgrade
sales (1)
|
4,050
|
|
3,614
|
|
7,997
|
|
7,119
|
|
Other income
|
16,197
|
|
17,911
|
|
31,746
|
|
35,625
|
|
Gross revenues from
home sales, brokered resales and ancillary services
|
37,565
|
|
38,913
|
|
67,618
|
|
71,046
|
|
Interest
income
|
2,420
|
|
2,259
|
|
4,588
|
|
4,347
|
|
Income from other
investments, net
|
2,630
|
|
2,473
|
|
4,668
|
|
4,564
|
|
Total
revenues
|
380,019
|
|
370,014
|
|
766,587
|
|
739,966
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Property operating and
maintenance
|
126,105
|
|
122,214
|
|
240,888
|
|
234,697
|
|
Real estate
taxes
|
20,099
|
|
18,832
|
|
40,886
|
|
37,148
|
|
Membership sales and
marketing (2)
|
6,126
|
|
5,521
|
|
11,423
|
|
10,359
|
|
Property
management
|
19,436
|
|
19,359
|
|
39,146
|
|
38,823
|
|
Depreciation and
amortization
|
51,344
|
|
51,464
|
|
102,452
|
|
101,966
|
|
Cost of home sales,
brokered resales and ancillary services
|
27,650
|
|
29,268
|
|
49,617
|
|
52,409
|
|
Home selling expenses
and ancillary operating expenses
|
7,472
|
|
7,170
|
|
13,619
|
|
14,094
|
|
General and
administrative
|
8,985
|
|
16,607
|
|
20,974
|
|
28,268
|
|
Casualty-related
charges/(recoveries), net (3)
|
(6,170)
|
|
—
|
|
(21,013)
|
|
—
|
|
Other
expenses
|
1,387
|
|
1,381
|
|
2,718
|
|
2,849
|
|
Interest and related
amortization
|
36,037
|
|
33,122
|
|
69,580
|
|
65,710
|
|
Total
expenses
|
298,471
|
|
304,938
|
|
570,290
|
|
586,323
|
|
Income before income
taxes and other items
|
81,548
|
|
65,076
|
|
196,297
|
|
153,643
|
|
Gain/(Loss) on sale of
real estate and impairment, net
|
—
|
|
—
|
|
—
|
|
(2,632)
|
|
Income tax
benefit
|
—
|
|
—
|
|
239
|
|
—
|
|
Equity in income of
unconsolidated joint ventures
|
579
|
|
973
|
|
862
|
|
1,497
|
|
Consolidated net
income
|
82,127
|
|
66,049
|
|
197,398
|
|
152,508
|
|
|
|
|
|
|
|
|
|
Income allocated to
non-controlling interests – Common OP Units
|
(3,822)
|
|
(3,121)
|
|
(9,188)
|
|
(7,209)
|
|
Redeemable perpetual
preferred stock dividends
|
(8)
|
|
(8)
|
|
(8)
|
|
(8)
|
|
Net income available
for Common Stockholders
|
$
78,297
|
|
$
62,920
|
|
$
188,202
|
|
$
145,291
|
|
|
|
|
|
|
1.
|
Membership upgrade
sales revenue is net of deferrals of $4.7 million and $5.7 million
for the quarters ended June 30, 2024 and June 30, 2023,
respectively. See page 13 for details of membership sales
activity.
|
|
2.
|
Membership sales and
marketing expense is net of sales commission deferrals of $0.9
million for both quarters ended June 30, 2024 and June 30, 2023.
See page 13 for details of membership sales activity.
|
|
3.
|
Casualty-related
charges/(recoveries), net for the quarter ended June 30, 2024
includes debris removal and cleanup costs related to Hurricane Ian
of $0.7 million and insurance recovery revenue of $6.9 million
including $6.2 million for reimbursement of capital expenditures
related to Hurricane Ian. Casualty-related charges/(recoveries),
net for the six months ended June 30, 2024 includes debris removal
and cleanup costs related to Hurricane Ian of $1.2 million and
insurance recovery revenue of $22.3 million including $21.0 million
for reimbursement of capital expenditures related to Hurricane
Ian.
|
Non-GAAP Financial Measures
This document contains certain Non-GAAP measures used by
management that we believe are helpful to understand our business.
We believe investors should review these Non-GAAP measures along
with GAAP net income and cash flows from operating activities,
investing activities and financing activities, when evaluating an
equity REIT's operating performance. Our definitions and
calculations of these Non-GAAP financial and operating measures and
other terms may differ from the definitions and methodologies used
by other REITs and, accordingly, may not be comparable. These
Non-GAAP financial and operating measures do not represent cash
generated from operating activities in accordance with GAAP, nor do
they represent cash available to pay distributions and should not
be considered as an alternative to net income, determined in
accordance with GAAP, as an indication of our financial
performance, or to cash flows from operating activities, determined
in accordance with GAAP, as a measure of our liquidity, nor are
they indicative of funds available to fund our cash needs,
including our ability to make cash distributions. For definitions
and reconciliations of Non-GAAP measures to our financial
statements as prepared under GAAP, refer to both Reconciliation of
Net Income to Non-GAAP Financial Measures on page 6 and Non-GAAP
Financial Measures Definitions and Reconciliations on pages
16-19.
|
Selected Non-GAAP
Financial Measures (1)
|
|
|
(In millions,
except per share data, unaudited)
|
|
|
Quarter
Ended
|
|
June 30,
2024
|
|
Income from property
operations, excluding property management - Core
(2)
|
$
181.8
|
|
Income from property
operations, excluding property management - Non-Core
(2)
|
3.3
|
|
Property management and
general and administrative
|
(28.4)
|
|
Other income and
expenses
|
7.8
|
|
Interest and related
amortization
|
(36.0)
|
|
Normalized FFO
available for Common Stock and OP Unit holders (3)
|
$
128.5
|
|
Insurance proceeds due
to catastrophic weather event (4)
|
6.2
|
|
FFO available for
Common Stock and OP Unit holders
|
$
134.7
|
|
|
|
FFO per Common Share
and OP Unit
|
$
0.69
|
|
Normalized FFO per
Common Share and OP Unit
|
$
0.66
|
|
|
|
Normalized FFO
available for Common Stock and OP Unit holders
|
$
128.5
|
|
Non-revenue producing
improvements to real estate
|
(20.2)
|
|
FAD for Common
Stock and OP Unit holders
|
$
108.3
|
|
|
|
Weighted average Common
Shares and OP Units - Fully Diluted
|
195.5
|
|
|
|
|
|
|
1.
|
See page 6 for a
reconciliation of Net income available for Common Stockholders
to FFO available for Common Stock and OP Unit holders,
Normalized FFO available for Common Stock and OP Unit holders and
FAD for Common Stock and OP Unit holders.
|
|
2.
|
See pages 8-9 for
details of the Core Income from Property Operations, excluding
property management. See page 10 for details of the Non-Core Income
from Property Operations, excluding property management.
|
|
3.
|
Amounts may not foot
due to rounding.
|
|
4.
|
Represents insurance
recovery revenue for reimbursement of capital expenditures related
to Hurricane Ian.
|
|
Reconciliation of
Net Income to Non-GAAP Financial Measures
|
|
|
(In thousands,
except per share data, unaudited)
|
|
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income available
for Common Stockholders
|
$
78,297
|
|
$
62,920
|
|
$ 188,202
|
|
$ 145,291
|
|
Income allocated to
non-controlling interests – Common OP Units
|
3,822
|
|
3,121
|
|
9,188
|
|
7,209
|
|
Depreciation and
amortization
|
51,344
|
|
51,464
|
|
102,452
|
|
101,966
|
|
Depreciation on
unconsolidated joint ventures
|
1,200
|
|
1,081
|
|
2,251
|
|
2,216
|
|
(Gain)/Loss on
unconsolidated joint ventures
|
—
|
|
—
|
|
—
|
|
(416)
|
|
(Gain)/Loss on sale of
real estate and impairment, net
|
—
|
|
—
|
|
—
|
|
2,632
|
|
FFO available for
Common Stock and OP Unit holders
|
134,663
|
|
118,586
|
|
302,093
|
|
258,898
|
|
Deferred income tax
benefit
|
—
|
|
—
|
|
(239)
|
|
—
|
|
Accelerated vesting of
stock-based compensation expense
|
—
|
|
6,320
|
|
—
|
|
6,320
|
|
Transaction/pursuit
costs and other (1)
|
—
|
|
—
|
|
383
|
|
207
|
|
Insurance proceeds due
to catastrophic weather event (2)
|
(6,170)
|
|
—
|
|
(21,013)
|
|
—
|
|
Normalized FFO
available for Common Stock and OP Unit holders
|
128,493
|
|
124,906
|
|
281,224
|
|
265,425
|
|
Non-revenue producing
improvements to real estate
|
(20,220)
|
|
(26,573)
|
|
(36,042)
|
|
(44,685)
|
|
FAD for Common Stock
and OP Unit holders
|
$
108,273
|
|
$
98,333
|
|
$
245,182
|
|
$
220,740
|
|
|
|
|
|
|
|
|
|
Net income per
Common Share - Basic
|
$
0.42
|
|
$
0.34
|
|
$
1.01
|
|
$
0.78
|
|
Net income per
Common Share - Fully Diluted (3)
|
$
0.42
|
|
$
0.34
|
|
$
1.01
|
|
$
0.78
|
|
|
|
|
|
|
|
|
|
FFO per Common Share
and OP Unit - Basic
|
$
0.69
|
|
$
0.61
|
|
$
1.55
|
|
$
1.33
|
|
FFO per Common Share
and OP Unit - Fully Diluted
|
$
0.69
|
|
$
0.61
|
|
$
1.55
|
|
$
1.33
|
|
|
|
|
|
|
|
|
|
Normalized FFO per
Common Share and OP Unit - Basic
|
$
0.66
|
|
$
0.64
|
|
$
1.44
|
|
$
1.36
|
|
Normalized FFO per
Common Share and OP Unit - Fully Diluted
|
$
0.66
|
|
$
0.64
|
|
$
1.44
|
|
$
1.36
|
|
|
|
|
|
|
|
|
|
Weighted average Common
Shares outstanding - Basic
|
186,318
|
|
186,023
|
|
186,303
|
|
185,962
|
|
Weighted average Common
Shares and OP Units outstanding - Basic
|
195,423
|
|
195,263
|
|
195,408
|
|
195,213
|
|
Weighted average Common
Shares and OP Units outstanding - Fully Diluted
|
195,465
|
|
195,430
|
|
195,505
|
|
195,388
|
|
|
|
|
|
|
|
1.
|
Prior period amounts
have been reclassified to conform to the current period
presentation.
|
|
2.
|
Represents insurance
recovery revenue for reimbursement of capital expenditures related
to Hurricane Ian.
|
|
3.
|
Net income per Common
Share - Fully Diluted is calculated before Income allocated to
non-controlling interest - Common OP Units.
|
|
Consolidated Income
from Property Operations (1)
|
|
|
(In millions,
except home site and occupancy figures,
unaudited)
|
|
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
MH base rental
income(2)
|
$
176.7
|
|
$
166.4
|
|
$
351.8
|
|
$
331.0
|
|
Rental home income
(2)
|
3.4
|
|
3.7
|
|
6.9
|
|
7.6
|
|
RV and marina base
rental income (2)
|
103.4
|
|
101.9
|
|
223.5
|
|
213.5
|
|
Annual membership
subscriptions
|
16.4
|
|
16.2
|
|
32.6
|
|
32.1
|
|
Membership upgrade
sales (3)
|
4.1
|
|
3.6
|
|
8.0
|
|
7.1
|
|
Utility and other
income (2)(4)
|
34.6
|
|
35.9
|
|
69.5
|
|
71.2
|
|
Property operating
revenues
|
338.6
|
|
327.7
|
|
692.3
|
|
662.5
|
|
|
|
|
|
|
|
|
|
Property operating,
maintenance and real estate taxes (2)
|
147.4
|
|
142.4
|
|
284.4
|
|
274.3
|
|
Membership sales and
marketing (3)
|
6.1
|
|
5.5
|
|
11.4
|
|
10.4
|
|
Property operating
expenses, excluding property management (1)
|
153.5
|
|
147.9
|
|
295.8
|
|
284.7
|
|
Income from property
operations, excluding property management
(1)
|
$
185.1
|
|
$
179.8
|
|
$
396.5
|
|
$
377.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufactured home
site figures and occupancy averages:
|
|
|
|
|
|
|
|
|
Total sites
(5)
|
73,006
|
|
72,729
|
|
73,007
|
|
72,723
|
|
Occupied
sites
|
68,928
|
|
68,792
|
|
68,922
|
|
68,820
|
|
Occupancy %
|
94.4 %
|
|
94.6 %
|
|
94.4 %
|
|
94.6 %
|
|
Monthly base rent per
site
|
$
854
|
|
$
806
|
|
$
851
|
|
$
802
|
|
|
|
|
|
|
|
|
|
RV and marina base
rental income:
|
|
|
|
|
|
|
|
|
Annual
|
$
76.6
|
|
$
72.7
|
|
$
152.0
|
|
$
142.1
|
|
Seasonal
|
8.0
|
|
9.5
|
|
37.5
|
|
37.4
|
|
Transient
|
18.8
|
|
19.7
|
|
34.0
|
|
34.0
|
|
Total RV and marina
base rental income
|
$
103.4
|
|
$
101.9
|
|
$
223.5
|
|
$
213.5
|
|
|
|
|
|
|
|
|
1.
|
Excludes property
management expenses.
|
|
2.
|
MH base rental income,
Rental home income, RV and marina base rental income and Utility
income, net of bad debt expense, are presented in Rental income in
the Consolidated Statements of Income on page 3. Bad debt expense
is presented in Property operating, maintenance and real estate
taxes in this table.
|
|
3.
|
See page 13 for details
of membership sales activity.
|
|
4.
|
Includes approximately
$1.9 million and $4.0 million of business interruption income from
Hurricane Ian during the quarters ended June 30, 2024 and June 30,
2023, respectively and $3.8 million and $8.0 million for the six
months ended June 30, 2024 and June 30, 2023,
respectively.
|
|
5.
|
For June 30, 2024,
includes 293 MH expansion sites added during the quarter ended
December 31, 2023.
|
|
Core Income from
Property Operations (1)
|
|
|
(In millions,
except occupancy figures, unaudited)
|
|
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Change
(2)
|
|
2024
|
|
2023
|
|
Change
(2)
|
|
MH base rental
income
|
$ 176.5
|
|
$ 166.3
|
|
6.2 %
|
|
$ 351.5
|
|
$ 330.7
|
|
6.3 %
|
|
Rental home
income
|
3.4
|
|
3.7
|
|
(8.7) %
|
|
6.9
|
|
7.5
|
|
(9.0) %
|
|
RV and marina base
rental income
|
100.6
|
|
98.6
|
|
2.0 %
|
|
216.2
|
|
208.0
|
|
4.0 %
|
|
Annual membership
subscriptions
|
16.3
|
|
16.1
|
|
1.3 %
|
|
32.6
|
|
31.9
|
|
2.0 %
|
|
Membership upgrade
sales (3)
|
4.0
|
|
3.6
|
|
12.0 %
|
|
8.0
|
|
7.1
|
|
12.9 %
|
|
Utility and other
income
|
31.4
|
|
29.4
|
|
6.6 %
|
|
62.5
|
|
58.9
|
|
6.1 %
|
|
Property operating
revenues
|
332.2
|
|
317.7
|
|
4.6 %
|
|
677.7
|
|
644.1
|
|
5.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
expense
|
38.0
|
|
36.5
|
|
4.2 %
|
|
76.7
|
|
74.9
|
|
2.4 %
|
|
Payroll
|
30.9
|
|
31.1
|
|
(0.6) %
|
|
58.6
|
|
59.2
|
|
(1.0) %
|
|
Repair &
maintenance
|
26.6
|
|
26.4
|
|
0.6 %
|
|
47.4
|
|
48.3
|
|
(1.7) %
|
|
Insurance and other
(4)
|
29.1
|
|
27.5
|
|
5.9 %
|
|
55.5
|
|
50.5
|
|
9.9 %
|
|
Real estate
taxes
|
19.7
|
|
18.4
|
|
6.8 %
|
|
40.1
|
|
36.3
|
|
10.5 %
|
|
Membership sales and
marketing (3)
|
6.1
|
|
5.5
|
|
10.8 %
|
|
11.4
|
|
10.3
|
|
10.4 %
|
|
Property operating
expenses, excluding property management (1)
|
150.4
|
|
145.4
|
|
3.4 %
|
|
289.7
|
|
279.5
|
|
3.7 %
|
|
Income from property
operations, excluding property management
(1)
|
$
181.8
|
|
$
172.3
|
|
5.5 %
|
|
$
388.0
|
|
$
364.7
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupied sites
(5)
|
68,933
|
|
68,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Excludes property
management expenses.
|
|
2.
|
Calculations prepared
using actual results without rounding.
|
|
3.
|
See page 13 for details
of membership sales activity.
|
|
4.
|
Includes bad debt
expense for the periods presented.
|
|
5.
|
Occupied sites are
presented as of the end of the period.
|
|
Core Income from
Property Operations (continued)
|
|
|
(In millions,
except home site and occupancy figures,
unaudited)
|
|
|
Quarters Ended June
30,
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2024
|
|
2023
|
|
|
|
2024
|
|
2023
|
|
|
|
Core manufactured
home site figures and occupancy averages:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sites
|
72,592
|
|
72,468
|
|
|
|
72,593
|
|
72,462
|
|
|
|
Occupied
sites
|
68,870
|
|
68,734
|
|
|
|
68,864
|
|
68,762
|
|
|
|
Occupancy %
|
94.9 %
|
|
94.8 %
|
|
|
|
94.9 %
|
|
94.9 %
|
|
|
|
Monthly base rent per
site
|
$
854
|
|
$
806
|
|
|
|
$
850
|
|
$
801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Change
(1)
|
|
2024
|
|
2023
|
|
Change
(1)
|
|
Core RV and marina
base rental income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
(2)
|
$
74.4
|
|
$
69.7
|
|
6.6 %
|
|
$
147.3
|
|
$
137.3
|
|
7.3 %
|
|
Seasonal
|
7.7
|
|
9.3
|
|
(16.7) %
|
|
36.1
|
|
36.9
|
|
(2.4) %
|
|
Transient
|
18.5
|
|
19.6
|
|
(5.6) %
|
|
32.8
|
|
33.8
|
|
(2.7) %
|
|
Total Seasonal and
Transient
|
$
26.2
|
|
$
28.9
|
|
(9.2) %
|
|
$
68.9
|
|
$
70.7
|
|
(2.5) %
|
|
Total RV and marina
base rental income
|
$
100.6
|
|
$
98.6
|
|
2.0 %
|
|
$
216.2
|
|
$
208.0
|
|
4.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Change
(1)
|
|
2024
|
|
2023
|
|
Change
(1)
|
|
Core utility
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
$
17.6
|
|
$
16.4
|
|
7.2 %
|
|
$
35.6
|
|
$
34.0
|
|
4.7 %
|
|
Expense
|
38.0
|
|
36.5
|
|
4.2 %
|
|
76.7
|
|
74.9
|
|
2.4 %
|
|
Expense, net
|
$
20.4
|
|
$
20.1
|
|
1.5 %
|
|
$
41.1
|
|
$
40.9
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility recovery rate
(3)
|
46.3 %
|
|
44.9 %
|
|
|
|
46.4 %
|
|
45.4 %
|
|
|
|
|
|
|
|
|
1.
|
Calculations prepared
using actual results without rounding.
|
|
2.
|
Core Annual marina base
rental income represents approximately 99.2% of the total Core
marina base rental income for all periods presented.
|
|
3.
|
Calculated by dividing
the utility income by utility expense.
|
|
Non-Core Income from
Property Operations (1)
|
|
|
|
|
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
June 30,
2024
|
|
MH base rental
income
|
$
0.2
|
|
$
0.3
|
|
RV and marina base
rental income
|
2.8
|
|
7.3
|
|
Utility and other
income
|
3.4
|
|
7.0
|
|
Property operating
revenues
|
6.4
|
|
14.6
|
|
|
|
|
|
Property operating
expenses, excluding property management
(1)(2)
|
3.1
|
|
6.1
|
|
Income from property
operations, excluding property management (1)
|
$
3.3
|
|
$
8.5
|
|
|
|
|
|
|
|
|
1.
|
Excludes property
management expenses.
|
|
2.
|
Includes bad debt
expense for the periods presented.
|
|
Home Sales and
Rental Home Operations
|
|
|
(In thousands,
except home sale volumes and occupied rentals,
unaudited)
|
|
|
|
Home Sales - Select
Data
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total new home sales
volume
|
255
|
|
226
|
|
446
|
|
402
|
|
New home sales gross
revenues
|
$
22,706
|
|
$
23,038
|
|
$
40,406
|
|
$
41,352
|
|
|
|
|
|
|
|
|
|
Total used home sales
volume
|
59
|
|
66
|
|
113
|
|
168
|
|
Used home sales gross
revenues
|
$
1,240
|
|
$
1,034
|
|
$
2,078
|
|
$
2,209
|
|
|
|
|
|
|
|
|
|
Brokered home resales
volume
|
152
|
|
201
|
|
261
|
|
335
|
|
Brokered home resales
gross revenues
|
$
649
|
|
$
876
|
|
$
1,221
|
|
$
1,551
|
|
|
Rental Homes -
Select Data
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Rental operations
revenues (1)
|
$
8,597
|
|
$
9,827
|
|
$
17,655
|
|
$
20,085
|
|
Rental home operations
expense (2)
|
1,557
|
|
1,158
|
|
2,926
|
|
2,117
|
|
Depreciation on rental
homes (3)
|
2,492
|
|
2,802
|
|
5,060
|
|
5,549
|
|
|
|
|
|
|
|
|
|
Occupied rentals:
(4)
|
|
|
|
|
|
|
|
|
New
|
1,790
|
|
2,236
|
|
|
|
|
|
Used
|
226
|
|
292
|
|
|
|
|
|
Total occupied
rental sites
|
2,016
|
|
2,528
|
|
|
|
|
|
|
As of June 30,
2024
|
|
As of June 30,
2023
|
|
Cost basis in rental
homes: (5)
|
Gross
|
|
Net of
Depreciation
|
|
Gross
|
|
Net of
Depreciation
|
|
New
|
$
227,569
|
|
$
187,382
|
|
$
257,978
|
|
$
226,759
|
|
Used
|
11,521
|
|
7,124
|
|
13,491
|
|
9,616
|
|
Total rental
homes
|
$
239,090
|
|
$
194,506
|
|
$
271,469
|
|
$
236,375
|
|
|
|
|
|
1.
|
For the quarters ended
June 30, 2024 and 2023, approximately $5.2 million and $6.1
million, respectively, of the rental operations revenue is included
in the MH base rental income in the Core Income from Property
Operations on pages 8-9. The remainder of the rental operations
revenue for the quarters ended June 30, 2024 and 2023 is included
in Rental home income in the Core Income from Property Operations
on pages 8-9.
|
|
2.
|
Rental home operations
expense is included in Property operating, maintenance and real
estate taxes in the Consolidated Income from Property Operations on
page 7. Rental home operations expense is included in Insurance and
other in the Core Income from Property Operations on pages
8-9.
|
|
3.
|
Depreciation on rental
homes in our Core portfolio is presented in Depreciation and
amortization in the Consolidated Statements of Income on page
3.
|
|
4.
|
Includes occupied
rental sites as of the end of the period in our Core
portfolio.
|
|
5.
|
Includes both occupied
and unoccupied rental homes in our Core portfolio.
|
|
|
|
Total
Sites
|
|
|
(Unaudited)
|
|
|
Summary of Total
Sites as of June 30, 2024
|
|
|
Sites (1)
|
|
MH sites
|
73,000
|
|
RV sites:
|
|
|
Annual
|
34,500
|
|
Seasonal
|
11,800
|
|
Transient
|
16,900
|
|
Marina slips
|
6,900
|
|
Membership
(2)
|
26,000
|
|
Joint Ventures
(3)
|
3,800
|
|
Total
|
172,900
|
|
|
|
|
|
1.
|
MH sites are generally
leased on an annual basis to residents who own or lease
factory-built homes, including manufactured homes. Annual RV and
marina sites are leased on an annual basis to customers who
generally have an RV, factory-built cottage, boat or other unit
placed on the site, including those Northern properties that are
open for the summer season. Seasonal RV and marina sites are
leased to customers generally for one to six months. Transient RV
and marina sites are leased to customers on a short-term
basis.
|
|
2.
|
Sites primarily
utilized by approximately 117,100 members. Includes approximately
5,900 sites rented on an annual basis.
|
|
3.
|
Joint ventures have
approximately 2,000 annual sites and 1,800 transient
sites.
|
|
Membership
Campgrounds - Select Data
|
|
|
|
Years Ended December
31,
|
|
Six Months
Ended June 30,
|
|
Campground and
Membership Revenue
($ in thousands,
unaudited)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Annual membership
subscriptions
|
$ 53,085
|
|
$ 58,251
|
|
$ 63,215
|
|
$ 65,379
|
|
$
32,584
|
|
Annual RV base rental
income
|
$ 20,761
|
|
$ 23,127
|
|
$ 25,945
|
|
$ 27,842
|
|
$
14,336
|
|
Seasonal/Transient RV
base rental income
|
$ 18,126
|
|
$ 25,562
|
|
$ 24,316
|
|
$ 20,996
|
|
$
8,893
|
|
Membership upgrade
sales
|
$
9,677
|
|
$ 11,191
|
|
$ 12,958
|
|
$ 14,719
|
|
$
7,997
|
|
Utility and other
income
|
$
2,426
|
|
$
2,735
|
|
$
2,626
|
|
$
2,544
|
|
$
993
|
|
|
|
|
|
|
|
|
|
|
|
Membership
Count
|
|
|
|
|
|
|
|
|
|
|
Total Memberships
(1)
|
116,169
|
|
125,149
|
|
128,439
|
|
121,002
|
|
117,115
|
|
Paid Membership
Origination
|
20,587
|
|
23,923
|
|
23,237
|
|
20,758
|
|
10,524
|
|
Promotional Membership
Origination
|
23,542
|
|
26,600
|
|
28,178
|
|
25,232
|
|
12,283
|
|
Membership Upgrade
Sales Volume (2)
|
3,373
|
|
4,863
|
|
4,068
|
|
3,858
|
|
1,776
|
|
|
|
|
|
|
|
|
|
|
|
Campground
Metrics
|
|
|
|
|
|
|
|
|
|
|
Membership Campground
Count
|
81
|
|
81
|
|
82
|
|
82
|
|
82
|
|
Membership Campground
RV Site Count
|
24,800
|
|
25,100
|
|
25,800
|
|
26,000
|
|
26,000
|
|
Annual Site Count
(3)
|
5,986
|
|
6,320
|
|
6,390
|
|
6,154
|
|
5,891
|
|
Membership Sales Activity
($ in thousands, unaudited)
|
Quarters Ended June 30,
|
|
2024
|
|
2023
|
|
|
|
|
|
Membership upgrade
sales current period, gross
|
$
8,785
|
|
$
9,278
|
|
Membership upgrade
sales upfront payments, deferred, net
|
(4,735)
|
|
(5,664)
|
|
Membership upgrade
sales
|
$
4,050
|
|
$
3,614
|
|
|
|
|
|
Membership sales and
marketing, gross
|
$
(6,979)
|
|
$
(6,392)
|
|
Membership sales
commissions, deferred, net
|
853
|
|
871
|
|
Membership sales and
marketing
|
$
(6,126)
|
|
$
(5,521)
|
|
|
|
|
|
1.
|
Members who have
entered into annual subscriptions with us that entitle them to use
certain properties on a continuous basis for up to 21
days.
|
|
2.
|
Existing members who
have upgraded memberships are eligible for enhanced benefits,
including but not limited to longer stays, the ability to make
earlier reservations, potential discounts on rental units, and
potential access to additional properties. Upgrades require a
non-refundable upfront payment.
|
|
3.
|
Sites that have been
rented by members for an entire year.
|
|
Market
Capitalization
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except share and OP Unit data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Structure as
of June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Common
Shares/Units
|
|
% of Total
Common
Shares/Units
|
|
Total
|
|
% of
Total
|
|
% of Total
Market
Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
Secured Debt
|
|
|
|
|
$
2,985
|
|
85.3 %
|
|
|
|
Unsecured
Debt
|
|
|
|
|
514
|
|
14.7 %
|
|
|
|
Total Debt
(1)
|
|
|
|
|
$
3,499
|
|
100.0 %
|
|
21.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Common
Shares
|
186,516,405
|
|
95.3 %
|
|
|
|
|
|
|
|
OP Units
|
9,104,654
|
|
4.7 %
|
|
|
|
|
|
|
|
Total Common Shares and
OP Units
|
195,621,059
|
|
100.0 %
|
|
|
|
|
|
|
|
Common Stock price at
June 30, 2024
|
$
65.13
|
|
|
|
|
|
|
|
|
|
Fair Value of Common
Shares and OP Units
|
|
|
|
|
$
12,741
|
|
100.0 %
|
|
|
|
Total
Equity
|
|
|
|
|
$
12,741
|
|
100.0 %
|
|
78.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Market
Capitalization
|
|
|
|
|
$
16,240
|
|
|
|
100.0 %
|
|
|
|
|
1.
|
Excludes deferred
financing costs of approximately $27.8 million.
|
|
Debt Maturity
Schedule
|
|
|
Debt Maturity
Schedule as of June 30, 2024
|
|
|
(In thousands,
unaudited)
|
|
|
Year
|
Outstanding
Debt
|
|
Weighted
Average
Interest Rate
|
|
% of Total
Debt
|
|
Weighted
Average
Years to
Maturity
|
|
|
|
|
|
|
|
|
|
Secured
Debt
|
|
|
|
|
|
|
|
|
2024
|
$
—
|
|
— %
|
|
— %
|
|
—
|
|
2025
|
89,056
|
|
3.45 %
|
|
2.55 %
|
|
0.77
|
|
2026
|
—
|
|
— %
|
|
— %
|
|
—
|
|
2027
|
—
|
|
— %
|
|
— %
|
|
—
|
|
2028
|
199,098
|
|
4.19 %
|
|
5.69 %
|
|
4.20
|
|
2029
|
272,049
|
|
4.92 %
|
|
7.77 %
|
|
5.18
|
|
2030
|
275,385
|
|
2.69 %
|
|
7.87 %
|
|
5.75
|
|
2031
|
246,576
|
|
2.46 %
|
|
7.05 %
|
|
6.89
|
|
2032
|
202,000
|
|
2.47 %
|
|
5.77 %
|
|
8.21
|
|
2033
|
345,019
|
|
4.83 %
|
|
9.86 %
|
|
9.31
|
|
Thereafter
|
1,356,053
|
|
3.88 %
|
|
38.75 %
|
|
13.43
|
|
Total
|
$
2,985,236
|
|
3.77 %
|
|
85.31 %
|
|
9.59
|
|
|
|
|
|
|
|
|
|
Unsecured Term
Loans
|
|
|
|
|
|
|
|
|
2024
|
$
—
|
|
— %
|
|
— %
|
|
—
|
|
2025
|
—
|
|
— %
|
|
— %
|
|
—
|
|
2026
|
300,000
|
|
6.05 %
|
|
8.57 %
|
|
1.82
|
|
2027
|
200,000
|
|
4.88 %
|
|
5.72 %
|
|
2.60
|
|
2028
|
—
|
|
— %
|
|
— %
|
|
—
|
|
Thereafter
|
—
|
|
— %
|
|
— %
|
|
—
|
|
Total
|
$
500,000
|
|
5.58 %
|
|
14.29 %
|
|
2.13
|
|
|
|
|
|
|
|
|
|
Total Secured and
Unsecured
|
$
3,485,236
|
|
4.03 %
|
|
99.60 %
|
|
8.50
|
|
|
|
|
|
|
|
|
|
Line of Credit
Borrowing (1)
|
14,000
|
|
6.65 %
|
|
0.40 %
|
|
—
|
|
|
|
|
|
|
|
|
|
Note Premiums and
Unamortized loan costs
|
(27,786)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt,
Net
|
$
3,471,449
|
|
4.21% (2)
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
The floating interest
rate on the line of credit is SOFR plus 0.10% plus 1.25% to
1.65%. During the quarter ended June 30, 2024, the effective
interest rate on the line of credit borrowings was
6.65%.
|
|
2.
|
Reflects effective
interest rate for the quarter ended June 30, 2024, including
interest associated with the line of credit and amortization of
deferred financing costs.
|
Non-GAAP Financial Measures Definitions and
Reconciliations
The following Non-GAAP financial measures definitions have been
revised and do not include adjustments in respect to membership
upgrade sales: (i) FFO; (ii) Normalized FFO; (iii) EBITDAre; (iv)
Adjusted EBITDAre; (v) Property operating revenues; (vi) Property
operating expenses, excluding property management; and (vii) Income
from property operations, excluding property management. For
comparability, prior periods' non-GAAP financial measures have also
been updated.
FUNDS FROM OPERATIONS (FFO). We define FFO as net
income, computed in accordance with GAAP, excluding gains or losses
from sales of properties, depreciation and amortization related to
real estate, impairment charges and adjustments to reflect our
share of FFO of unconsolidated joint ventures. Adjustments for
unconsolidated joint ventures are calculated to reflect FFO on the
same basis. We compute FFO in accordance with our interpretation of
standards established by the National Association of Real Estate
Investment Trusts ("NAREIT"), which may not be comparable to FFO
reported by other REITs that do not define the term in accordance
with the current NAREIT definition or that interpret the current
NAREIT definition differently than we do.
We believe FFO, as defined by the Board of Governors of NAREIT,
is generally a measure of performance for an equity REIT. While FFO
is a relevant and widely used measure of operating performance for
equity REITs, it does not represent cash flow from operations or
net income as defined by GAAP, and it should not be considered as
an alternative to these indicators in evaluating liquidity or
operating performance.
NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED
FFO). We define Normalized FFO as FFO excluding
non-operating income and expense items, such as gains and losses
from early debt extinguishment, including prepayment penalties,
defeasance costs, transaction/pursuit costs and other, and other
miscellaneous non-comparable items. Normalized FFO presented herein
is not necessarily comparable to Normalized FFO presented by other
real estate companies due to the fact that not all real estate
companies use the same methodology for computing this amount.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as
Normalized FFO less non-revenue producing capital expenditures.
We believe that FFO, Normalized FFO and FAD are helpful to
investors as supplemental measures of the performance of an equity
REIT. We believe that by excluding the effect of gains or losses
from sales of properties, depreciation and amortization related to
real estate and impairment charges, which are based on historical
costs and may be of limited relevance in evaluating current
performance, FFO can facilitate comparisons of operating
performance between periods and among other equity REITs. We
further believe that Normalized FFO provides useful information to
investors, analysts and our management because it allows them to
compare our operating performance to the operating performance of
other real estate companies and between periods on a consistent
basis without having to account for differences not related to our
normal operations. For example, we believe that excluding the early
extinguishment of debt and other miscellaneous non-comparable items
from FFO allows investors, analysts and our management to assess
the sustainability of operating performance in future periods
because these costs do not affect the future operations of the
properties. In some cases, we provide information about identified
non-cash components of FFO and Normalized FFO because it allows
investors, analysts and our management to assess the impact of
those items.
INCOME FROM PROPERTY OPERATIONS, EXCLUDING PROPERTY
MANAGEMENT. We define Income from property operations,
excluding property management as rental income, membership
subscriptions and upgrade sales, utility and other income less
property and rental home operating and maintenance expenses, real
estate taxes, membership sales and marketing expenses, excluding
property management expenses. Property management represents the
expenses associated with indirect costs such as off-site payroll
and certain administrative and professional expenses. We believe
exclusion of property management expenses is helpful to investors
and analysts as a measure of the operating results of our
properties, excluding items that are not directly related to the
operation of the properties. For comparative purposes, we present
bad debt expense within Property operating, maintenance and real
estate taxes in the current and prior periods. We believe that this
Non-GAAP financial measure is helpful to investors and analysts as
a measure of the operating results of our properties.
The following table reconciles Net income available for Common
Stockholders to Income from property operations:
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(amounts in
thousands)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income available
for Common Stockholders
|
$
78,297
|
|
$
62,920
|
|
$ 188,202
|
|
$ 145,291
|
|
Redeemable perpetual
preferred stock dividends
|
8
|
|
8
|
|
8
|
|
8
|
|
Income allocated to
non-controlling interests – Common OP Units
|
3,822
|
|
3,121
|
|
9,188
|
|
7,209
|
|
Consolidated net
income
|
82,127
|
|
66,049
|
|
197,398
|
|
152,508
|
|
Equity in income of
unconsolidated joint ventures
|
(579)
|
|
(973)
|
|
(862)
|
|
(1,497)
|
|
Income tax
benefit
|
—
|
|
—
|
|
(239)
|
|
—
|
|
(Gain)/Loss on sale of
real estate and impairment, net
|
—
|
|
—
|
|
—
|
|
2,632
|
|
Gross revenues from
home sales, brokered resales and ancillary services
|
(37,565)
|
|
(38,913)
|
|
(67,618)
|
|
(71,046)
|
|
Interest
income
|
(2,420)
|
|
(2,259)
|
|
(4,588)
|
|
(4,347)
|
|
Income from other
investments, net
|
(2,630)
|
|
(2,473)
|
|
(4,668)
|
|
(4,564)
|
|
Property
management
|
19,436
|
|
19,359
|
|
39,146
|
|
38,823
|
|
Depreciation and
amortization
|
51,344
|
|
51,464
|
|
102,452
|
|
101,966
|
|
Cost of home sales,
brokered resales and ancillary services
|
27,650
|
|
29,268
|
|
49,617
|
|
52,409
|
|
Home selling expenses
and ancillary operating expenses
|
7,472
|
|
7,170
|
|
13,619
|
|
14,094
|
|
General and
administrative
|
8,985
|
|
16,607
|
|
20,974
|
|
28,268
|
|
Casualty-related
charges/(recoveries), net (1)
|
(6,170)
|
|
—
|
|
(21,013)
|
|
—
|
|
Other
expenses
|
1,387
|
|
1,381
|
|
2,718
|
|
2,849
|
|
Interest and related
amortization
|
36,037
|
|
33,122
|
|
69,580
|
|
65,710
|
|
Income from property
operations, excluding property management
|
185,074
|
|
179,802
|
|
396,516
|
|
377,805
|
|
Property
management
|
(19,436)
|
|
(19,359)
|
|
(39,146)
|
|
(38,823)
|
|
Income from property
operations
|
$ 165,638
|
|
$ 160,443
|
|
$ 357,370
|
|
$ 338,982
|
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION
FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre. We
define EBITDAre as net income or loss excluding interest income and
expense, income taxes, depreciation and amortization, gains or
losses from sales of properties, impairments charges, and
adjustments to reflect our share of EBITDAre of unconsolidated
joint ventures. We compute EBITDAre in accordance with our
interpretation of the standards established by NAREIT, which may
not be comparable to EBITDAre reported by other REITs that do not
define the term in accordance with the current NAREIT definition or
that interpret the current NAREIT definition differently than we
do.
We define Adjusted EBITDAre as EBITDAre excluding non-operating
income and expense items, such as gains and losses from early debt
extinguishment, including prepayment penalties and defeasance
costs, transaction/pursuit costs and other, and other miscellaneous
non-comparable items.
We believe that EBITDAre and Adjusted EBITDAre may be useful to
an investor in evaluating our operating performance and liquidity
because the measures are widely used to measure the operating
performance of an equity REIT.
|
|
|
|
|
|
1.
|
Represents insurance
recovery revenue for reimbursement of capital expenditures related
to Hurricane Ian.
|
The following table reconciles Consolidated net income to
EBITDAre and Adjusted EBITDAre:
|
Quarters Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(amounts in
thousands)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Consolidated net
income
|
$
82,127
|
|
$
66,049
|
|
$ 197,398
|
|
$ 152,508
|
|
Interest
income
|
(2,420)
|
|
(2,259)
|
|
(4,588)
|
|
(4,347)
|
|
Real estate
depreciation and amortization
|
51,344
|
|
51,464
|
|
102,452
|
|
101,966
|
|
Other depreciation and
amortization
|
1,387
|
|
1,339
|
|
2,705
|
|
2,690
|
|
Interest and related
amortization
|
36,037
|
|
33,122
|
|
69,580
|
|
65,710
|
|
Income tax
benefit
|
—
|
|
—
|
|
(239)
|
|
—
|
|
Loss on sale of real
estate and impairment, net
|
—
|
|
—
|
|
—
|
|
2,632
|
|
Adjustments to our
share of EBITDAre of unconsolidated joint ventures
|
2,027
|
|
1,268
|
|
3,907
|
|
2,991
|
|
EBITDAre
|
170,502
|
|
150,983
|
|
371,215
|
|
324,150
|
|
Stock-based
compensation expense
|
—
|
|
6,320
|
|
—
|
|
6,320
|
|
Transaction/pursuit
costs and other (1)
|
—
|
|
—
|
|
383
|
|
207
|
|
Insurance proceeds due
to catastrophic weather event (2)
|
(6,170)
|
|
—
|
|
(21,013)
|
|
—
|
|
Adjusted
EBITDAre
|
$ 164,332
|
|
$ 157,303
|
|
$ 350,585
|
|
$ 330,677
|
CORE. The Core properties include properties we owned and
operated during all of 2023 and 2024. We believe Core is a measure
that is useful to investors for annual comparison as it removes the
fluctuations associated with acquisitions, dispositions and
significant transactions or unique situations.
NON-CORE. The Non-Core properties in 2024 include
properties that were not owned and operated during all of 2023 and
2024, including six properties in Florida impacted by Hurricane Ian and two
properties in California that were
impacted by storm and flooding events. The 2024 guidance reflects
Non-Core properties in 2024, which includes properties not owned
and operated during all of 2023 and 2024.
NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital
expenditures that do not directly result in increased revenue or
expense savings and are primarily comprised of common area
improvements, furniture and mechanical improvements.
FIXED CHARGES. Fixed charges consist of interest expense,
amortization of note premiums and debt issuance costs.
|
|
|
|
|
1.
|
Prior period amounts
have been reclassified to conform to the current period
presentation.
|
|
2.
|
Represents insurance
recovery revenue for reimbursement of capital expenditures related
to Hurricane Ian.
|
FORWARD-LOOKING NON-GAAP MEASURES. The following
table reconciles Net Income per Common Share - Fully Diluted
guidance to FFO per Common Share and OP Unit - Fully Diluted
guidance and Normalized FFO per Common Share and OP Unit - Fully
diluted guidance:
|
(Unaudited)
|
Third
Quarter
2024
|
|
Full
Year
2024
|
|
Net income per
Common Share
|
$0.42 to
$0.48
|
|
$1.89 to
$1.99
|
|
Depreciation and
amortization
|
0.27
|
|
1.07
|
|
FFO per Common Share
and OP Unit - Fully Diluted
|
$0.69 to
$0.75
|
|
$2.96 to
$3.06
|
|
Other
|
$—
|
|
$(0.11)
|
|
Normalized FFO per
Common Share and OP Unit - Fully Diluted
|
$0.69 to
$0.75
|
|
$2.86 to
$2.96
|
This press release includes certain forward-looking information,
including Core and Non-Core Income from property operations,
excluding property management, that is not presented in accordance
with GAAP. In reliance on the exception in Item 10(e)(1)(i)(B) of
Regulation S-K, we do not provide a quantitative reconciliation of
such forward-looking information to the most directly comparable
financial measure calculated and presented in accordance with GAAP,
where we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This includes, for example,
(i) scheduled or implemented rate increases on community, resort
and marina sites; (ii) scheduled or implemented rate increases in
annual payments under membership subscriptions; (iii) occupancy
changes; (iv) costs to restore property operations and potential
revenue losses following storms or other unplanned events; and (v)
other nonrecurring/unplanned income or expense items, which may not
be within our control, may vary between periods and cannot be
reasonably predicted. These unavailable reconciling items could
significantly impact our future financial results.
View original
content:https://www.prnewswire.com/news-releases/els-reports-second-quarter-results-302203144.html
SOURCE Equity Lifestyle Properties, Inc.