Continued Strong Performance; Guidance
Increase
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, 2023. All per share results
are reported on a fully diluted basis unless otherwise noted.
($ in millions, except per share data)
FINANCIAL
RESULTS
Q2 2023
Q2 2022
$ Change
Total Revenues
$
370.0
$
365.3
$
4.7
Net Income available for Common
Stockholders
$
62.9
$
61.5
$
1.4
Net Income per Common Share - Fully
Diluted
$
0.34
$
0.33
$
0.01
NON-GAAP
FINANCIAL MEASURES
Q2 2023
Q2 2022
$ Change
Funds from Operations (“FFO”) per Common
Share and OP Unit - Fully Diluted
$
0.63
$
0.62
$
0.01
Normalized Funds from Operations
(“Normalized FFO”) per Common Share and
OP Unit - Fully Diluted
$
0.66
$
0.64
$
0.02
Property operating revenues, excluding
deferrals
$
333.3
$
315.8
$
17.5
Income from property operations, excluding
deferrals and property management
$
184.5
$
174.8
$
9.7
Core Portfolio
Performance
Q2 2023
Q2 2022
% Change
Core property operating revenues,
excluding deferrals
$
320.6
$
305.3
5.0
%
Core income from property operations,
excluding deferrals and property management
$
175.6
$
169.9
3.5
%
Operations Update
Normalized FFO for the quarter ended June 30, 2023 was $0.66 per
share, representing a 3.4% increase compared to the same period in
2022, outperforming the midpoint of our guidance expectation by
$3.2 million.
MH
Core MH base rental income for the quarter ended June 30, 2023
increased 6.7% compared to the same period in 2022, which reflects
7.0% growth from rate increases. We sold 226 new homes during the
quarter ended June 30, 2023, with an average sales price of
$102,000.
RV and Marina
Core RV and marina base rental income for the quarter ended June
30, 2023 increased 2.3% compared to the same period in 2022. Core
RV and marina annual base rental income for the quarter ended June
30, 2023 increased 7.8% compared to the same period in 2022, which
reflects 7.3% growth from rate increases and 0.5% from occupancy
gains. Demand from customers to visit our RV and Thousand Trails
properties remains strong as total site utilization throughout the
portfolio is in line compared to the quarter ended June 30, 2022
and increased 8% compared to the quarter ended June 30, 2019. Core
RV and marina transient base rental income for the quarter ended
June 30, 2023 decreased 13.9% compared to the same period in 2022.
We continue to see demand for annual sites and have increased our
Core RV and marina annual site count by approximately 240 since
December 31, 2022, which has reduced the number of transient sites
available for use. We experienced significant weather events during
the quarter ended June 30, 2023 in California, the Pacific
Northwest and along the East coast that impacted our results.
During the quarter ended June 30, 2023, we made a change to our
Core portfolio. Refer to page 19 for properties designated as
Non-Core.
Property Operating Expenses
Core property operating expenses for the quarter ended June 30,
2023 increased 7.0% compared to the same period in 2022. Property
operating and maintenance expenses for the quarter ended June 30,
2023 were favorable to our guidance expectations and the variance,
primarily related to utility and payroll expenses, demonstrated a
strong correlation to RV locations with lower than expected
Transient rent in the same period. See page 8 for details of the
Core property operating expenses.
Guidance (1)(2)
($ in millions, except per share data)
2023
Third Quarter
Full Year
Net Income per Common Share - Fully
Diluted
$0.38 to $0.44
$1.59 to $1.69
FFO per Common Share and OP Unit - Fully
Diluted
$0.68 to $0.74
$2.76 to $2.86
Normalized FFO per Common Share and OP
Unit - Fully Diluted
$0.68 to $0.74
$2.80 to $2.90
2022 Actual
2023 Growth Rates
Core Portfolio:
Third Quarter
Full Year
Third Quarter
Full Year
MH base rental income
$
157.0
$
626.0
6.5% to 7.1%
6.3% to 7.3%
RV and marina base rental income (3)
$
104.3
$
392.3
2.7% to 3.3%
4.1% to 5.1%
Property operating revenues
$
320.7
$
1,238.1
4.9% to 5.5%
5.5% to 6.5%
Property operating expenses
$
142.3
$
524.1
4.7% to 5.3%
6.3% to 7.3%
Income from property operations, excluding
deferrals and property management
$
178.4
$
714.0
5.2% to 5.8%
4.9% to 5.9%
Non-Core Portfolio:
2023 Full Year
Income from property operations, excluding
deferrals and property management
$22.8 to $26.8
Other Guidance Assumptions:
2023 Full Year
Property management and general
administrative (4)
$120.6 to $126.6
Debt Assumptions: (5)
Weighted average debt outstanding
$3,375 to $3,575
Interest and related amortization
$129.0 to $135.0
(1)
Third quarter and full year 2023 guidance
ranges represent a range of possible outcomes and the midpoint
reflects management's estimate of the most likely outcome. Actual
growth rates and per share amounts could vary materially from
growth rates and per share amounts 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 release for additional factors impacting our
2023 guidance assumptions. See Non-GAAP Financial Measures
Definitions and Reconciliations at the end of the supplemental
financial information.
(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 65.8% and 67.9% of third quarter 2023 and
full year 2023 RV and marina base rental income, respectively. Core
RV and marina annual revenue third quarter 2023 growth rate range
is 8.2% to 8.8% and the full year 2023 growth rate range is 7.8% to
8.8%.
(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.
Balance Sheet Activity
In June 2023, we closed on a secured refinancing transaction
generating gross proceeds of $89 million (the “June 2023
financing”). The loan represents an incremental borrowing from an
existing secured facility, has a fixed interest rate of 5.04% per
annum and matures in 10 years.
We also locked rate on a $375 million secured financing at a
weighted average interest rate of 5.05% secured by a pool of MH and
RV assets. The secured financing has a weighted average term to
maturity of 7.5 years. We expect to close in the third quarter of
2023.
In July 2023 we repaid all debt scheduled to mature in 2023 and
2024 with proceeds from the June 2023 financing and our unsecured
line of credit. Upon consummation of the $375 million secured
financing, which is subject to customary closing conditions, the
proceeds will be used to pay off the remaining balance on our
unsecured line of credit.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment
trust (“REIT”) with headquarters in Chicago. As of July 17, 2023,
we own or have an interest in 450 properties in 35 states and
British Columbia consisting of 171,706 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 18, 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
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Sep 30, 2022
Jun 30, 2022
Operating Information
Total revenues
$
370.0
$
370.0
$
340.6
$
381.0
$
365.3
Consolidated net income
$
66.0
$
86.5
$
76.7
$
70.5
$
64.6
Net income available for Common
Stockholders
$
62.9
$
82.4
$
73.0
$
67.2
$
61.5
Adjusted EBITDAre (1)
$
162.5
$
176.7
$
159.2
$
166.4
$
153.3
FFO available for Common Stock and OP Unit
holders (1)(2)
$
123.4
$
144.1
$
126.6
$
134.4
$
121.6
Normalized FFO available for Common Stock
and OP Unit holders (1)(2)
$
129.7
$
144.3
$
128.1
$
136.8
$
125.3
Funds Available for Distribution ("FAD")
for Common Stock and OP Unit holders (1)(2)
$
103.1
$
126.2
$
106.9
$
115.4
$
103.6
Common Shares and OP Units Outstanding
(In thousands) and Per Share Data
Common Shares and OP Units, end of the
period
195,514
195,446
195,386
195,380
195,373
Weighted average Common Shares and OP
Units outstanding - Fully Diluted
195,430
195,369
195,281
195,269
195,227
Net income per Common Share - Fully
Diluted (3)
$
0.34
$
0.44
$
0.39
$
0.36
$
0.33
FFO per Common Share and OP Unit - Fully
Diluted
$
0.63
$
0.74
$
0.65
$
0.69
$
0.62
Normalized FFO per Common Share and OP
Unit - Fully Diluted
$
0.66
$
0.74
$
0.66
$
0.70
$
0.64
Dividends per Common Share
$
0.4475
$
0.4475
$
0.4100
$
0.4100
$
0.4100
Balance Sheet
Total assets
$
5,586
$
5,519
$
5,493
$
5,405
$
5,400
Total liabilities
$
4,083
$
4,006
$
3,975
$
3,886
$
3,878
Market Capitalization
Total debt (4)
$
3,479
$
3,414
$
3,416
$
3,329
$
3,298
Total market capitalization (5)
$
16,557
$
16,534
$
16,038
$
15,607
$
17,066
Ratios
Total debt / total market
capitalization
21.0
%
20.6
%
21.3
%
21.3
%
19.3
%
Total debt / Adjusted EBITDAre (6)
5.2
5.2
5.3
5.2
5.3
Interest coverage (7)
5.4
5.5
5.6
5.7
5.7
Fixed charges(8)
5.2
5.4
5.6
5.6
5.6
_____________________________
- 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.
- 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.
- Net income per Common Share - Fully Diluted is calculated
before Income allocated to non-controlling interest - Common OP
Units.
- Excludes deferred financing costs of approximately $28.0
million as of June 30, 2023.
- See page 14 for the calculation of market capitalization as of
June 30, 2023.
- Calculated using trailing twelve months Adjusted EBITDAre.
- Calculated by dividing trailing twelve months Adjusted EBITDAre
by the interest expense incurred during the same period.
- 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)
June 30, 2023
December 31, 2022
(unaudited)
Assets
Investment in real estate:
Land
$
2,088,511
$
2,084,532
Land improvements
4,237,327
4,115,439
Buildings and other depreciable
property
1,223,492
1,169,590
7,549,330
7,369,561
Accumulated depreciation
(2,355,031
)
(2,258,540
)
Net investment in real estate
5,194,299
5,111,021
Cash and restricted cash
28,107
22,347
Notes receivable, net
47,375
45,356
Investment in unconsolidated joint
ventures
82,423
81,404
Deferred commission expense
51,978
50,441
Other assets, net
181,805
181,950
Total Assets
$
5,585,987
$
5,492,519
Liabilities and Equity
Liabilities:
Mortgage notes payable, net
$
2,748,807
$
2,693,167
Term loan, net
497,195
496,817
Unsecured line of credit
205,000
198,000
Accounts payable and other liabilities
172,851
175,148
Deferred membership revenue
210,242
197,743
Accrued interest payable
12,305
11,739
Rents and other customer payments received
in advance and security deposits
148,989
122,318
Distributions payable
87,486
80,102
Total Liabilities
4,082,875
3,975,034
Equity:
Preferred stock, $0.01 par value,
10,000,000 shares authorized as of June 30, 2023 and December 31,
2022; none issued and outstanding.
—
—
Common stock, $0.01 par value, 600,000,000
shares authorized as of June 30, 2023 and December 31, 2022;
186,273,876 and 186,120,298 shares issued and outstanding as of
June 30, 2023 and December 31, 2022, respectively.
1,916
1,916
Paid-in capital
1,638,354
1,628,618
Distributions in excess of accumulated
earnings
(225,640
)
(204,248
)
Accumulated other comprehensive income
17,327
19,119
Total Stockholders’ Equity
1,431,957
1,445,405
Non-controlling interests – Common OP
Units
71,155
72,080
Total Equity
1,503,112
1,517,485
Total Liabilities and Equity
$
5,585,987
$
5,492,519
Consolidated Statements of
Income
(In thousands, unaudited)
Quarters Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues:
Rental income
$
288,655
$
275,330
$
585,106
$
560,395
Annual membership subscriptions
16,189
15,592
32,159
30,749
Membership upgrade sales (1)
3,614
3,168
7,119
6,235
Other income
17,911
14,195
35,625
27,736
Gross revenues from home sales, brokered
resales and ancillary services
38,913
52,681
71,046
92,390
Interest income
2,259
1,722
4,347
3,481
Income from other investments, net
2,473
2,617
4,564
4,521
Total revenues
370,014
365,305
739,966
725,507
Expenses:
Property operating and maintenance
122,214
114,307
234,697
218,299
Real estate taxes
18,832
19,182
37,148
38,639
Membership sales and marketing (2)
5,521
5,452
10,359
9,783
Property management
19,359
19,099
38,823
36,970
Depreciation and amortization
51,464
50,796
101,966
100,190
Cost of home sales, brokered resales and
ancillary services
29,268
40,971
52,409
71,670
Home selling expenses and ancillary
operating expenses
7,170
7,584
14,094
14,066
General and administrative (3)(4)
16,607
11,679
28,268
23,750
Casualty-related charges/(recoveries), net
(5)
—
—
—
—
Other expenses (4)
1,381
4,205
2,849
5,251
Early debt retirement
—
640
—
1,156
Interest and related amortization
33,122
28,053
65,710
55,517
Total expenses
304,938
301,968
586,323
575,291
Loss on sale of real estate and
impairment, net
—
—
(2,632
)
—
Income before equity in income of
unconsolidated joint ventures
65,076
63,337
151,011
150,216
Equity in income of unconsolidated joint
ventures
973
1,253
1,497
1,424
Consolidated net income
66,049
64,590
152,508
151,640
Income allocated to non-controlling
interests – Common OP Units
(3,121
)
(3,073
)
(7,209
)
(7,217
)
Redeemable perpetual preferred stock
dividends
(8
)
(8
)
(8
)
(8
)
Net income available for Common
Stockholders
$
62,920
$
61,509
$
145,291
$
144,415
________________________________
- Membership upgrade sales revenue is net of deferrals of $5.7
million and $6.4 million for the quarters ended June 30, 2023 and
June 30, 2022, respectively, and $10.1 million and $10.5 million
for the six months ended June 30, 2023 and June 30, 2022,
respectively.
- Membership sales and marketing expense is net of sales
commission deferrals of $0.9 million and $1.0 million for the
quarters ended June 30, 2023 and June 30, 2022, respectively, and
$1.6 million and $1.5 million for the six months ended June 30,
2023 and June 30, 2022, respectively.
- Includes accelerated vesting of stock-based compensation
expense of $6.3 million recognized during the quarter and six
months ended June 30, 2023 as a result of the passing of a member
of our Board of Directors.
- Prior period amounts have been reclassified to conform to the
current period presentation.
- Casualty-related charges/(recoveries), net for the quarter
ended June 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 six months ended June 30, 2023 includes debris removal and
cleanup costs related to Hurricane Ian of $10.3 million and
insurance recovery revenue of $10.3 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
June 30, 2023
Income from property operations, excluding
deferrals and property management - 2023 Core (1)
$
175.6
Income from property operations, excluding
deferrals and property management - Non-Core (1)
9.0
Property management and general and
administrative
(36.0
)
Other income and expenses
14.2
Interest and related amortization
(33.1
)
Normalized FFO available for Common
Stock and OP Unit holders (2)
$
129.7
Accelerated vesting of stock-based
compensation expense(3)
(6.3
)
FFO available for Common Stock and OP
Unit holders (2)
$
123.4
FFO per Common Share and OP Unit - Fully
Diluted
$
0.63
Normalized FFO per Common Share and OP
Unit - Fully Diluted
$
0.66
Normalized FFO available for Common
Stock and OP Unit holders (2)
$
129.7
Non-revenue producing improvements to real
estate
(26.6
)
FAD for Common Stock and OP Unit
holders (2)
$
103.1
Weighted average Common Shares and OP
Units - Fully Diluted
195.4
______________________________________
- 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.
- 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.
- Represents 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.
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,
2023
2022
2023
2022
Net income available for Common
Stockholders
$
62,920
$
61,509
$
145,291
$
144,415
Income allocated to non-controlling
interests – Common OP Units
3,121
3,073
7,209
7,217
Membership upgrade sales upfront payments,
deferred, net (1)
5,664
6,367
10,134
10,451
Membership sales commissions, deferred,
net (1)
(871
)
(957
)
(1,550
)
(1,540
)
Depreciation and amortization
51,464
50,796
101,966
100,190
Depreciation on unconsolidated joint
ventures
1,081
835
2,216
1,776
Gain on unconsolidated joint ventures
—
—
(416
)
—
Loss on sale of real estate and
impairment, net
—
—
2,632
—
FFO available for Common Stock and OP
Unit holders
123,379
121,623
267,482
262,509
Accelerated vesting of stock-based
compensation expense (2)
6,320
—
6,320
—
Early debt retirement
—
640
—
1,156
Transaction/pursuit costs
—
3,082
117
3,082
Lease termination expenses
—
—
90
—
Normalized FFO available for Common
Stock and OP Unit holders
129,699
125,345
274,009
266,747
Non-revenue producing improvements to real
estate
(26,573
)
(21,738
)
(44,685
)
(38,106
)
FAD for Common Stock and OP Unit
holders
$
103,126
$
103,607
$
229,324
$
228,641
Net income per Common Share -
Basic
$
0.34
$
0.33
$
0.78
$
0.78
Net income per Common Share - Fully
Diluted (3)
$
0.34
$
0.33
$
0.78
$
0.78
FFO per Common Share and OP Unit -
Basic
$
0.63
$
0.62
$
1.37
$
1.35
FFO per Common Share and OP Unit -
Fully Diluted
$
0.63
$
0.62
$
1.37
$
1.34
Normalized FFO per Common Share and OP
Unit - Basic
$
0.66
$
0.64
$
1.40
$
1.37
Normalized FFO per Common Share and OP
Unit - Fully Diluted
$
0.66
$
0.64
$
1.40
$
1.37
Weighted average Common Shares outstanding
- Basic
186,023
185,767
185,962
185,729
Weighted average Common Shares and OP
Units outstanding - Basic
195,263
195,064
195,213
195,028
Weighted average Common Shares and OP
Units outstanding - Fully Diluted
195,430
195,227
195,388
195,253
____________________________
- See page 13 for details of Membership upgrade sales and related
commissions.
- Represents accelerated vesting of stock-based compensation
expense of $6.3 million recognized during the quarter and six
months ended June 30, 2023 as a result of the passing of a member
of our Board of Directors.
- 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,
2023
2022
2023
2022
MH base rental income (2)
$
166.4
$
158.7
$
331.0
$
316.0
Rental home income (2)
3.7
3.8
7.6
7.8
RV and marina base rental income (2)
101.9
98.3
213.5
207.1
Annual membership subscriptions
16.2
15.6
32.1
30.7
Membership upgrade sales current period,
gross (3)
9.3
9.5
17.2
16.7
Utility and other income (2)(4)
35.8
29.9
71.2
59.9
Property operating revenues
333.3
315.8
672.6
638.2
Property operating, maintenance and real
estate taxes (2)
142.4
134.6
274.3
259.6
Membership sales and marketing, gross
(3)
6.4
6.4
11.9
11.3
Property operating expenses
148.8
141.0
286.2
270.9
Income from property operations,
excluding deferrals and property management (1)
$
184.5
$
174.8
$
386.4
$
367.3
Manufactured home site figures and
occupancy averages:
Total sites
72,729
73,442
72,723
73,505
Occupied sites
68,792
69,693
68,820
69,723
Occupancy %
94.6
%
94.9
%
94.6
%
94.9
%
Monthly base rent per site
$
806
$
759
$
802
$
756
RV and marina base rental
income:
Annual
$
72.7
$
66.6
$
142.1
$
131.0
Seasonal
9.5
9.5
37.4
36.1
Transient
19.7
22.2
34.0
40.0
Total RV and marina base rental income
$
101.9
$
98.3
$
213.5
$
207.1
___________________________
- Excludes property management and the GAAP deferral of
membership upgrade sales upfront payments and membership sales
commissions, net.
- 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.
- See page 13 for details of Membership upgrade sales and related
commissions.
- Includes approximately $4.0 million and $8.0 million of
business interruption income from Hurricane Ian during the quarter
ended June 30, 2023 and six months ended June 30, 2023,
respectively.
Core Income from Property
Operations (1)
(In millions, except home site and
occupancy figures, unaudited)
Quarters Ended June
30,
Six Months Ended June
30,
2023
2022
Change (2)
2023
2022
Change (2)
MH base rental income
$
166.3
$
155.8
6.7
%
$
330.7
$
310.2
6.6
%
Rental home income
3.7
3.8
(2.9
)%
7.5
7.8
(2.6
)%
RV and marina base rental income
96.5
94.2
2.3
%
204.8
196.8
4.1
%
Annual membership subscriptions
15.9
15.2
4.7
%
31.5
30.1
4.8
%
Membership upgrade sales current period,
gross
9.0
9.3
(2.8
)%
16.9
16.2
4.2
%
Utility and other income
29.2
27.0
8.6
%
58.7
53.9
9.0
%
Property operating revenues
320.6
305.3
5.0
%
650.1
615.0
5.7
%
Utility expense
36.3
34.2
6.2
%
74.5
68.4
8.9
%
Payroll
30.7
29.7
3.3
%
58.5
55.1
6.2
%
Repair & maintenance
26.2
24.0
8.9
%
47.9
43.1
11.0
%
Insurance and other (3)
27.3
23.6
15.5
%
50.0
46.5
7.4
%
Real estate taxes
18.2
17.5
4.2
%
35.9
35.4
1.2
%
Membership sales and marketing, gross
6.3
6.3
(0.9
)%
11.8
11.2
5.3
%
Property operating expenses
145.0
135.3
7.0
%
278.6
259.7
7.2
%
Income from property operations,
excluding deferrals and property management (1)
$
175.6
$
169.9
3.5
%
$
371.5
$
355.2
4.6
%
Occupied sites (4)
68,778
68,992
__________________________________
- Excludes property management and the GAAP deferral of
membership upgrades sales upfront payments and membership sales
commissions, net.
- Calculations prepared using actual results without
rounding.
- Includes bad debt expense for the periods presented.
- 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,
2023
2022
Change (1)
2023
2022
Change (1)
Core manufactured home site figures and
occupancy averages:
Total sites
72,468
72,458
72,462
72,521
Occupied sites
68,734
68,915
68,762
68,948
Occupancy %
94.8
%
95.1
%
94.9
%
95.1
%
Monthly base rent per site
$
806
$
753
$
801
$
750
Core RV and marina base rental
income:
Annual (2)
$
69.1
$
64.0
7.8
%
$
136.1
$
125.8
8.1
%
Seasonal
9.1
9.0
1.6
%
36.5
33.3
9.2
%
Transient
18.3
21.3
(13.9
)%
32.3
37.6
(14.2
)%
Total Seasonal and Transient
$
27.4
$
30.3
(9.3
)%
$
68.8
$
70.9
(3.2
)%
Total RV and marina base rental income
$
96.5
$
94.3
2.3
%
$
204.9
$
196.7
4.1
%
Core utility information:
Income
$
16.4
$
15.0
9.6
%
$
34.0
$
30.6
11.1
%
Expense
36.3
34.1
6.2
%
74.6
68.4
9.1
%
Expense, net
$
19.9
$
19.1
4.2
%
$
40.6
$
37.8
7.4
%
Utility recovery rate (3)
45.2
%
44.0
%
45.6
%
44.7
%
___________________________
- Calculations prepared using actual results without
rounding.
- Core Annual marina base rental income represents approximately
99% of the total Core marina base rental income for all periods
presented.
- 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, 2023
June 30, 2023
MH base rental income
$
0.2
$
0.3
RV and marina base rental income
5.4
8.7
Annual membership subscriptions
0.3
0.7
Utility and other income
6.6
12.5
Membership upgrade sales current period,
gross
0.3
0.3
Property operating revenues
12.8
22.5
Property operating expenses (2)
3.8
7.6
Income from property operations,
excluding deferrals and property management (1)
$
9.0
$
14.9
________________________________
- Excludes property management and the GAAP deferral of
membership upgrade sales upfront payments and membership sales
commissions, net.
- 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,
2023
2022
2023
2022
Total new home sales volume (1)
226
365
402
626
New home sales gross revenues (1)
$
23,038
$
33,848
$
41,352
$
59,378
Total used home sales volume
66
97
168
169
Used home sales gross revenues
$
1,034
$
1,367
$
2,209
$
2,364
Brokered home resales volume
201
263
335
451
Brokered home resales gross revenues
$
876
$
1,049
$
1,551
$
1,660
Rental Homes - Select Data
Quarters Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Rental operations revenues (2)
$
9,827
$
10,868
$
20,085
$
22,216
Rental home operations expense (3)
1,158
1,220
2,117
2,611
Depreciation on rental homes (4)
2,802
2,500
5,549
5,017
Occupied rentals: (5)
New
2,236
2,742
Used
292
375
Total occupied rental sites
2,528
3,117
As of June 30, 2023
As of June 30, 2022
Cost basis in rental homes: (6)
Gross
Net of Depreciation
Gross
Net of Depreciation
New
$
257,978
$
215,087
$
221,251
$
191,048
Used
13,491
7,806
14,571
7,673
Total rental homes
$
271,469
$
222,893
$
235,822
$
198,721
_________________________
- For 2022, total new home sales volume includes 29 home sales
from our ECHO Financing LLC ("ECHO joint venture"). New home sales
gross revenues does not include the revenues associated with the
ECHO joint venture.
- For the quarters ended June 30, 2023 and 2022, approximately
$6.1 million and $7.1 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, 2023
and 2022 is included in Rental home income in the Core Income from
Property Operations on pages 8-9.
- 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.
- Depreciation on rental homes in our Core portfolio is presented
in Depreciation and amortization in the Consolidated Statements of
Income on page 3.
- Occupied rentals as of the end of the period in our Core
portfolio. Included in occupied rentals as of June 30, 2022 were
185 homes rented through our ECHO joint venture. On December 22,
2022, we completed the purchase of all homes held by the ECHO joint
venture.
- 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 June 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
____________________________
- 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.
- Sites primarily utilized by approximately 126,900 members.
Includes approximately 6,200 sites rented on an annual basis.
- Joint ventures have approximately 2,000 annual sites and 1,600
transient.
Memberships - Select
Data
(Unaudited)
Years Ended December
31,
2019
2020
2021
2022
Six Months Ended June 30,
2023
Member Count (1)
115,680
116,169
125,149
128,439
126,945
Thousand Trails Camping Pass (TTC)
Origination
41,484
44,129
50,523
51,415
24,576
TTC Sales
19,267
20,587
23,923
23,237
11,294
RV Dealer TTC Activations
22,217
23,542
26,600
28,178
13,282
Number of annuals (2)
5,938
5,986
6,320
6,390
6,175
Number of upgrade sales (3)
2,919
3,373
4,863
4,068
1,877
(In thousands, unaudited)
Annual membership subscriptions
$
51,015
$
53,085
$
58,251
$
63,215
$
32,159
RV base rental income from annuals
$
19,634
$
20,761
$
23,127
$
25,945
$
13,578
RV base rental income from
seasonals/transients
$
20,181
$
18,126
$
25,562
$
24,316
$
8,507
Membership upgrade sales current period,
gross
$
19,111
$
21,739
$
36,270
$
34,661
$
17,253
Utility and other income
$
2,422
$
2,426
$
2,735
$
2,626
$
1,129
Membership Upgrade Sales
Activity
Quarters Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Membership upgrade sales current period,
gross
$
9,278
$
9,535
$
17,253
$
16,686
Membership upgrade sales upfront payments,
deferred, net
(5,664
)
(6,367
)
(10,134
)
(10,451
)
Membership upgrade sales
$
3,614
$
3,168
$
7,119
$
6,235
Membership sales and marketing, gross
$
(6,392
)
$
(6,409
)
$
(11,909
)
$
(11,323
)
Membership sales commissions, deferred,
net
871
957
1,550
1,540
Membership sales and marketing
$
(5,521
)
$
(5,452
)
$
(10,359
)
$
(9,783
)
________________________________
- 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.
- Members who rent a specific site for an entire year in
connection with their membership subscriptions.
- 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 June 30,
2023
Total Common
Shares/Units
% of Total Common
Shares/Units
Total
% of Total
% of Total Market
Capitalization
Secured Debt
$
2,774
79.7
%
Unsecured Debt
705
20.3
%
Total Debt (1)
$
3,479
100.0
%
21.0
%
Common Shares
186,273,876
95.3
%
OP Units
9,240,069
4.7
%
Total Common Shares and OP Units
195,513,945
100.0
%
Common Stock price at June 30, 2023
$
66.89
Fair Value of Common Shares and OP
Units
$
13,078
100.0
%
Total Equity
$
13,078
100.0
%
79.0
%
Total Market Capitalization
$
16,557
100.0
%
________________________
1. Excludes deferred financing costs of
approximately $28.0 million.
Debt Maturity Schedule
Debt Maturity Schedule as of June 30, 2023
(In thousands, unaudited)
Year
Outstanding Debt
Weighted Average Interest
Rate
% of Total Debt
Weighted Average Years to
Maturity
Secured Debt
2023
$
90,597
4.88
%
2.60
%
0.02
2024
9,887
5.49
%
0.28
%
0.95
2025
91,841
3.45
%
2.64
%
1.79
2026
—
—
%
—
%
—
2027
—
—
%
—
%
—
2028
204,491
4.19
%
5.88
%
5.22
2029
38,905
4.10
%
1.12
%
6.01
2030
275,385
2.69
%
7.92
%
6.77
2031
255,210
2.46
%
7.34
%
7.91
2032
202,000
2.47
%
5.81
%
9.22
Thereafter
1,605,601
3.99
%
46.15
%
13.93
Total
$
2,773,917
3.64
%
79.74
%
10.7
Unsecured Term Loans
2023
$
—
—
%
—
%
—
2024
—
—
%
—
%
—
2025
—
—
%
—
%
—
2026
300,000
1.81
%
8.62
%
2.84
2027
200,000
4.88
%
5.75
%
3.61
Thereafter
—
—
%
—
%
—
Total
$
500,000
3.04
%
14.37
%
3.2
Total Secured and
Unsecured
$
3,273,917
3.55
%
94.11
%
9.5
Line of Credit Borrowing
(1)
205,000
6.29
%
5.89
%
—
Note Premiums and Unamortized
loan costs
(27,915
)
Total Debt, Net
$
3,451,002
3.92% (2)
100
%
______________________
- Our floating interest rate exposure is limited to line of
credit borrowing.
- Reflects effective interest rate for the quarter ended June 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 and defeasance
costs, 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, sales and marketing expenses,
excluding property management expenses and the impact of 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 June
30,
Six Months Ended June
30,
(amounts in thousands)
2023
2022
2023
2022
Net income available for Common
Stockholders
$
62,920
$
61,509
$
145,291
$
144,415
Redeemable perpetual preferred stock
dividends
8
8
8
8
Income allocated to non-controlling
interests – Common OP Units
3,121
3,073
7,209
7,217
Equity in income of unconsolidated joint
ventures
(973
)
(1,253
)
(1,497
)
(1,424
)
Income before equity in income of
unconsolidated joint ventures
65,076
63,337
151,011
150,216
Loss on sale of real estate and
impairment, net
—
—
2,632
—
Membership upgrade sales upfront payments,
deferred, net
5,664
6,367
10,134
10,451
Gross revenues from home sales, brokered
resales and ancillary services
(38,913
)
(52,681
)
(71,046
)
(92,390
)
Interest income
(2,259
)
(1,722
)
(4,347
)
(3,481
)
Income from other investments, net
(2,473
)
(2,617
)
(4,564
)
(4,521
)
Membership sales commissions, deferred,
net
(871
)
(957
)
(1,550
)
(1,540
)
Property management
19,359
19,099
38,823
36,970
Depreciation and amortization
51,464
50,796
101,966
100,190
Cost of home sales, brokered resales and
ancillary services
29,268
40,971
52,409
71,670
Home selling expenses and ancillary
operating expenses
7,170
7,584
14,094
14,066
General and administrative (1)(2)
16,607
11,679
28,268
23,750
Casualty-related charges/(recoveries), net
(3)
—
—
—
—
Other expenses (1)
1,381
4,205
2,849
5,251
Early debt retirement
—
640
—
1,156
Interest and related amortization
33,122
28,053
65,710
55,517
Income from property operations, excluding
deferrals and property management
184,595
174,754
386,389
367,305
Membership upgrade sales upfront payments,
and membership sales commissions, deferred, net
(4,793
)
(5,410
)
(8,584
)
(8,911
)
Property management
(19,359
)
(19,099
)
(38,823
)
(36,970
)
Income from property operations
$
160,443
$
150,245
$
338,982
$
321,424
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.
_____________________
- Prior period amounts have been reclassified to conform to the
current period presentation.
- Represents accelerated vesting of stock-based compensation
expense of $6.3 million recognized during the quarter and six
months ended June 30, 2023 as a result of the passing of a member
of our Board of Directors.
- Casualty-related charges/(recoveries), net for the quarter
ended June 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 six months ended June 30, 2023 includes debris removal and
cleanup costs related to Hurricane Ian of $10.3 million and
insurance recovery revenue of $10.3 million.
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 June
30,
Six Months Ended June
30,
(amounts in thousands)
2023
2022
2023
2022
Consolidated net income
$
66,049
$
64,590
$
152,508
$
151,640
Interest income
(2,259
)
(1,722
)
(4,347
)
(3,481
)
Membership upgrade sales upfront payments,
deferred, net (1)
5,664
6,367
10,134
10,451
Membership sales commissions, deferred,
net (1)
(871
)
(957
)
(1,550
)
(1,540
)
Real estate depreciation and
amortization
51,464
50,796
101,966
100,190
Other depreciation and amortization
1,339
1,119
2,690
1,946
Interest and related amortization
33,122
28,053
65,710
55,517
Loss on sale of real estate and
impairment, net
—
—
2,632
—
Adjustments to our share of EBITDAre of
unconsolidated joint ventures
1,684
1,361
2,991
2,817
EBITDAre
156,192
149,607
332,734
317,540
Stock-based compensation expense
6,320
—
6,320
—
Early debt retirement
—
640
—
1,156
Transaction/pursuit costs
—
3,082
117
3,082
Lease termination expenses
—
—
90
—
Adjusted EBITDAre
$
162,512
$
153,329
$
339,261
$
321,778
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, three 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, and Ramblers Rest. During the quarter ended June 30, 2023,
we designated Rancho Oso and Turtle Beach as Non-Core properties as
operations at these properties have been suspended due to storms
and flooding events in California.
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.
______________________
- See page 13 for details of Membership upgrade sales and related
commissions.
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 2023
Full Year 2023
Net income per Common Share - Fully
Diluted
$0.38 to $0.44
$1.59 to $1.69
Membership upgrade sales deferred, net and
membership sales commissions deferred, net
0.27
1.06
Depreciation and amortization
0.03
0.10
Loss on sale of real estate and
impairment, net
—
0.01
FFO per Common Share and OP Unit -
Fully Diluted
$0.68 to $0.74
$2.76 to $2.86
Normalized adjustment
—
0.04
Normalized FFO per Common Share and OP
Unit - Fully Diluted
$0.68 to $0.74
$2.80 to $2.90
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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version on businesswire.com: https://www.businesswire.com/news/home/20230716545511/en/
Paul Seavey (800) 247-5279
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