Continued Strong Performance
Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to
herein as “we,” “us,” and “our”) today announced results for the
quarter and nine months ended September 30, 2023. All per share
results are reported on a fully diluted basis unless otherwise
noted.
($ 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
%
Operations Update
Normalized FFO for the quarter ended September 30, 2023 was
$0.71 per share, representing a 2.1% increase compared to the same
period in 2022, outperforming the midpoint of our guidance
expectation by $0.5 million. Normalized FFO for the nine months
ended September 30, 2023 was $2.12 per share, representing a 2.4%
increase compared to the same period in 2022.
MH
Core MH base rental income for the quarter ended September 30,
2023 increased 6.8% compared to the same period in 2022. We sold
285 new homes during the quarter ended September 30, 2023, with an
average sales price of $97,000. Core MH occupancy increased by 42
sites during the quarter ended September 30, 2023, which included a
net gain of 225 homeowners. The average rent increase to market on
turnover was approximately 13% during the nine months ended
September 30, 2023.
RV and Marina
Core RV and marina base rental income for the quarter ended
September 30, 2023 increased 2.0% compared to the same period in
2022. Core RV and marina annual base rental income for the quarter
ended September 30, 2023 increased 8.0% compared to the same period
in 2022, which reflects 7.8% growth from rate increases and 0.2%
from occupancy gains.
Property Operating Expenses
Core property operating expenses for the quarter ended September
30, 2023 increased 5.1% compared to the same period in 2022 and was
in line with guidance. Combined Core utility and payroll expenses
represent 48.6% of Core property operating expenses and increased
1.2% during the quarter ended September 30, 2023, compared to the
same period in 2022. Core repair and maintenance expense for the
quarter ended September 30, 2023 increased 8.0%, compared to the
same period in 2022, which includes clean-up costs following local
storm events across the portfolio.
Balance Sheet Activity
During the quarter ended September 30, 2023, we closed on three
secured financing facilities totaling $375 million. The facilities
are secured by twenty MH and RV properties, and consistent with the
rates we had locked in May 2023, the facilities have a weighted
average interest rate of 5.05% per annum and a weighted average
term of approximately eight years. The proceeds were used to repay
all debt scheduled to mature in 2023 and 2024 and the remaining
balance on our unsecured line of credit.
2023 Guidance Update (1)(2)
($ 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
Preliminary 2024 Rent Rate Growth Assumptions (1)(2)
- By October month-end, we anticipate sending 2024 rent increase
notices to approximately 50% of our MH residents. The average rate
increase of these notices is approximately 5.4%.
- We have set RV annual rates for 2024 for approximately 95% of
our annual sites. The average rate increase for these annual sites
is approximately 7.0%.
___________________________
1.
Fourth quarter and full year 2023 guidance
represent management's estimate of a range of possible outcomes.
The midpoint of the ranges and the preliminary 2024 rent rate
growth assumptions reflect management's estimate of the most likely
outcome. 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, is incorrect. See Forward-Looking Statements in this press
release for additional factors impacting our 2023 and 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.
2.
Guidance assumptions do not include future
capital events (financing transactions, acquisitions or
dispositions) subsequent to those discussed in this press release
or the use of free cash flow.
3.
Core RV and marina annual revenue
represents approximately 75.3% and 68.4% of fourth quarter 2023 and
full year 2023 RV and marina base rental income, respectively. Core
RV and marina annual revenue fourth quarter 2023 growth rate range
is 8.5% to 9.1% and the full year 2023 growth rate range is 8.0% to
8.6%.
4.
Includes accelerated vesting of
stock-based compensation expense of $6.3 million recognized during
the quarter ended June 30, 2023 as a result of the passing of a
member of our Board of Directors.
5.
Includes financing transactions discussed
in this press release.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment
trust (“REIT”) with headquarters in Chicago. As of October 16,
2023, we own or have an interest in 450 properties in 35 states and
British Columbia consisting of 171,707 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, October 17, 2023, 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,”
“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, 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) our ability to integrate and operate recent
acquisitions in accordance with our estimates; (x) our ability to
execute expansion/development opportunities in the face of supply
chain delays/shortages; (xi) completion of pending transactions in
their entirety and on assumed schedule; (xii) our ability to
attract and retain property employees, particularly seasonal
employees; (xiii) ongoing legal matters and related fees; and (xiv)
costs to restore property operations and potential revenue losses
following storms or other unplanned events. 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
Financial Highlights
(In millions, except Common Shares and OP Units outstanding
and per share data, unaudited)
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
__________________________
1.
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.
2.
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.
3.
Net income per Common Share - Fully
Diluted is calculated before Income allocated to non-controlling
interest - Common OP Units.
4.
Excludes deferred financing costs of
approximately $30.5 million as of September 30, 2023.
5.
See page 14 for the calculation of market
capitalization as of September 30, 2023.
6.
Calculated using trailing twelve months
Adjusted EBITDAre.
7.
Calculated by dividing trailing twelve
months Adjusted EBITDAre by the interest expense incurred during
the same period.
8.
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.
Consolidated Balance
Sheets
(In thousands, except share and per share data)
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
Consolidated Statements of
Income
(In thousands, unaudited)
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
___________________________
1.
Membership upgrade sales revenue is net of
deferrals of $7.0 million and $7.8 million for the quarters ended
September 30, 2023 and September 30, 2022, respectively, and $17.2
million and $18.2 million for the nine months ended September 30,
2023 and September 30, 2022, respectively.
2.
Membership sales and marketing expense is
net of sales commission deferrals of $1.2 million for both the
quarters ended September 30, 2023 and September 30, 2022 and $2.7
million for both the nine months ended September 30, 2023 and
September 30, 2022.
3.
Includes accelerated vesting of
stock-based compensation expense of $6.3 million recognized during
the nine months ended September 30, 2023 as a result of the passing
of a member of our Board of Directors.
4.
Prior period amounts have been
reclassified to conform to the current period presentation.
5.
Casualty-related charges/(recoveries), net
for the quarter ended September 30, 2023 includes debris removal
and cleanup costs related to Hurricane Ian of $1.8 million and
insurance recovery revenue of $1.8 million. Casualty-related
charges/(recoveries), net for the nine months ended September 30,
2023 includes debris removal and cleanup costs related to Hurricane
Ian of $12.1 million and insurance recovery revenue of $12.1
million.
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
(In millions, except per share data, unaudited)
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
___________________________
1.
See pages 8-9 for details of the Core
Income from Property Operations, excluding deferrals and property
management. See page 10 for details of the Non-Core Income from
Property Operations, excluding deferrals and property
management.
2.
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.
3.
Total does not foot due to rounding.
Reconciliation of Net Income
to Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
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
_________________________
1.
See page 13 for details of membership
sales activity.
2.
Represents accelerated vesting of
stock-based compensation expense of $6.3 million recognized during
the nine months ended September 30, 2023 as a result of the passing
of a member of our Board of Directors.
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 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
_________________________
1.
Excludes property management and the GAAP
deferral of membership upgrade sales upfront payments and
membership sales commissions, net.
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 $1.6 million and
$9.6 million of business interruption income from Hurricane Ian
during the quarter and nine months ended September 30, 2023,
respectively.
Core Income from Property
Operations (1)
(In millions, except home site and occupancy figures,
unaudited)
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
__________________________
1.
Excludes property management and the GAAP
deferral of membership upgrades sales upfront payments and
membership sales commissions, net.
2.
Calculations prepared using actual results
without rounding.
3.
Includes bad debt expense for the periods
presented.
4.
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 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
%
_________________________
1.
Calculations prepared using actual results
without rounding.
2.
Core Annual marina base rental income
represents approximately 99% 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
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
_________________________ 1.
Excludes property management and the GAAP
deferral of membership upgrade sales upfront payments and
membership sales commissions, net.
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 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
___________________________
1.
For the quarter and nine months ended
September 30, 2022, total new home sales volume includes 21 and 72
home sales, respectively, from our ECHO Financing LLC ("ECHO joint
venture"). New home sales gross revenues does not include the
revenues associated with the ECHO joint venture.
2.
For the quarters ended September 30, 2023
and 2022, approximately $5.9 million and $6.7 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 September 30, 2023 and 2022 is included in
Rental home income in the Core Income from Property Operations on
pages 8-9.
3.
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.
4.
Depreciation on rental homes in our Core
portfolio is presented in Depreciation and amortization in the
Consolidated Statements of Income on page 3.
5.
Occupied rentals as of the end of the
period in our Core portfolio. Included in occupied rentals as of
September 30, 2022 were 165 homes rented through our ECHO joint
venture. On December 22, 2022, we completed the purchase of all
homes held by the ECHO joint venture.
6.
Includes both occupied and unoccupied
rental homes in our Core portfolio. New home cost basis does not
include the costs associated with our ECHO joint venture for
2022.
Total Sites
(Unaudited)
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
___________________________
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
125,300 members. Includes approximately 6,200 sites rented on an
annual basis.
3.
Joint ventures have approximately 2,000
annual sites and 1,600 transient.
Memberships - Select
Data
(Unaudited)
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
)
___________________________
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.
Members who rent a specific site for an
entire year in connection with their membership subscriptions.
3.
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.
Market Capitalization
(In millions, except share and OP Unit data,
unaudited)
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
%
____________________________
1.
Excludes deferred financing costs of
approximately $30.5 million.
Debt Maturity Schedule
Debt Maturity Schedule as of September 30, 2023
(In thousands, unaudited)
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
%
__________________________
1.
The floating interest rate on the line of
credit is daily SOFR plus 1.25% to 1.65%. During the quarter ended
September 30, 2023, the effective interest rate on the line of
credit borrowings was 6.44%.
2.
Reflects effective interest rate for the
quarter ended September 30, 2023, including interest associated
with the line of credit and amortization of note premiums and
deferred financing costs.
Non-GAAP Financial Measures
Definitions and Reconciliations
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 receive non-refundable
upfront payments from membership upgrade contracts. In accordance
with GAAP, the non-refundable upfront payments and related
commissions are deferred and amortized over the estimated
membership upgrade contract term. Although the NAREIT definition of
FFO does not address the treatment of non-refundable upfront
payments, we believe that it is appropriate to adjust for the
impact of the deferral activity in our calculation of FFO.
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
and transaction/pursuit costs, 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 DEFERRALS AND
PROPERTY MANAGEMENT. We define Income from property operations,
excluding deferrals and 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 and the impact of
the GAAP deferrals of membership upgrade sales upfront payments and
membership sales commissions, net. 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 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
__________________________
1.
Prior period amounts have been
reclassified to conform to the current period presentation.
2.
Represents accelerated vesting of
stock-based compensation expense of $6.3 million recognized during
the nine months ended September 30, 2023 as a result of the passing
of a member of our Board of Directors.
3.
Casualty-related charges/(recoveries), net
for the quarter ended September 30, 2023 includes debris removal
and cleanup costs related to Hurricane Ian of $1.8 million and
insurance recovery revenue of $1.8 million. Casualty-related
charges/(recoveries), net for the nine months ended September 30,
2023 includes debris removal and cleanup costs related to Hurricane
Ian of $12.1 million and insurance recovery revenue of $12.1
million.
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 receive non-refundable upfront payments from membership
upgrade contracts. In accordance with GAAP, the non-refundable
upfront payments and related commissions are deferred and amortized
over the estimated customer life. Although the NAREIT definition of
EBITDAre does not address the treatment of non-refundable upfront
payments, we believe that it is appropriate to adjust for the
impact of the deferral activity in our calculation of EBITDAre.
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 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.
The following table reconciles Consolidated net income to
EBITDAre and Adjusted EBITDAre:
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
____________________________
1.
See page 13 for details of membership
sales activity.
CORE. The Core properties include properties we owned and
operated during all of 2022 and 2023. 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 include properties that
were not owned and operated during all of 2022 and 2023. This
includes, but is not limited to, four RV communities and one
membership RV community acquired during 2022 and one RV community
acquired during 2023. The Non-Core properties also include Fish
Tale Marina, Fort Myers Beach, Gulf Air, Palm Harbour Marina, Pine
Island, Ramblers Rest, Rancho Oso and Turtle Beach.
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.
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)
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
This press release includes certain forward-looking information,
including Core and Non-Core Income from property operations,
excluding deferrals and 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.
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Paul Seavey (800) 247-5279
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