UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 19, 2017
EQUITY LIFESTYLE PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
Maryland | 1-11718 | 36-3857664 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (IRS Employer Identification Number) | ||
Two North Riverside Plaza, Chicago, Illinois | 60606 | |||
(Address of principal executive offices) | (Zip Code) | |||
(312) 279-1400
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition
On September 19, 2017, Equity LifeStyle Properties, Inc. (referred to herein as "we", "us", and "our") issued a press release providing an update on the impact of Hurricane Irma on our Florida properties. In connection with this press release we hereby reaffirm previously issued guidance for our Net Income per Common Share (fully diluted), for the three months ending September 30, 2017 and year ending December 31, 2017, to be between $0.52 and $0.58 and $2.14 and $2.24, respectively.
We also reaffirm previously issued guidance for our Funds from Operations (“FFO”) per Common Share (fully diluted), for the three months ending September 30, 2017 and year ending December 31, 2017, to be between $0.86 and $0.92 and $3.52 and $3.62, respectively.
We also reaffirm previously issued guidance for our Normalized Funds from Operations (“Normalized FFO”) per Common Share (fully diluted) for the three months ending September 30, 2017 and year ending December 31, 2017, to be between $0.86 and $0.92 and $3.52 and $3.62, respectively.
The projected 2017 per Common Share amounts represent a range of possible outcomes and the mid-point of each range reflects management’s best estimate of the most likely outcome. Actual figures could vary materially from these amounts if any of our assumptions are incorrect.
Item 8.01 Other Events
As described in the press release, all of our Florida mainland properties are open for business and have staff onsite. We have been onsite to assess our two RV resorts in the Florida Keys: Fiesta Key in Long Key and Sunshine Key in Big Pine Key. Electrical service has been restored to Fiesta Key, and we expect that both of these properties will be open for business once utility services are fully restored.
We are in the process of estimating costs associated with our cleanup and restoration efforts, and we believe we have adequate insurance, subject to deductibles, including business interruption coverage. At this time, we do not believe that Hurricane Irma will significantly impact our results of operations or our financial condition on a consolidated basis. A copy of the press release is filed with this Form 8-K as Exhibit 99.1, and incorporated by reference herein.
In accordance with General Instruction B.2. of Form 8-K, the information included in items 2.02 and 8.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any registration statement filed by Equity Lifestyle Properties, Inc. under the Securities Act of 1933, as amended. We disclaim any intention or obligation to update or revise this information.
This report 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. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
• | our ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of Sites by customers and our success in acquiring new customers at our Properties (including those that we may acquire); |
• | our ability to maintain historical or increase future rental rates and occupancy with respect to Properties currently owned or that we may acquire; |
• | our ability to retain and attract customers renewing, upgrading and entering right-to-use contracts; |
• | our assumptions and guidance concerning 2017 estimated net income, FFO and Normalized FFO; |
• | our assumptions about rental and home sales markets; |
• | our ability to manage counter-party risk; |
• | in the age-qualified Properties, home sales results could be impacted by the ability of potential home buyers to sell their existing residences as well as by financial, credit and capital markets volatility; |
• | results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; |
• | impact of government intervention to stabilize site-built single family housing and not manufactured housing; |
• | effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions; |
• | the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto; |
• | unanticipated costs or unforeseen liabilities associated with recent acquisitions; |
• | ability to obtain financing or refinance existing debt on favorable terms or at all; |
• | the effect of interest rates; |
• | the dilutive effects of issuing additional securities; |
• | the effect of accounting for the entry of contracts with customers representing a right-to-use the Properties under the Codification Topic "Revenue Recognition"; |
• | the outcome of pending or future lawsuits or actions brought against us, including those disclosed in our filings with the Securities and Exchange Commission; and |
• | other risks indicated from time to time in our filings with the Securities and Exchange Commission. |
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 “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent quarterly reports.
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.
Equity LifeStyle Properties, Inc. is a fully integrated owner and operator of lifestyle-oriented properties and owns or has an interest in 404 quality properties in 32 states and British Columbia consisting of 149,450 sites. We are a self-administered, self-managed, real estate investment trust with headquarters in Chicago.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
EQUITY LIFESTYLE PROPERTIES, INC.
By: /s/ Paul Seavey
Paul Seavey
Executive Vice President,
Chief Financial Officer and Treasurer
Date: September 19, 2017
N E W S R E L E A S E
CONTACT: Paul Seavey FOR IMMEDIATE RELEASE
(800) 247-5279 September 19, 2017
ELS UPDATES ON HURRICANE IRMA
2017 GUIDANCE REAFFIRMED
CHICAGO, IL – September 19, 2017 – Equity LifeStyle Properties, Inc. (NYSE: ELS;
the “Company”) today provided an update on the impact of Hurricane Irma on its Florida
properties.
Efforts to restore affected properties are underway, with some already substantially
complete. All of our Florida mainland properties are open for business and have staff onsite. We
have been onsite to assess our two RV resorts in the Florida Keys: Fiesta Key in Long Key and
Sunshine Key in Big Pine Key. Electrical service has been restored to Fiesta Key, and we expect
that both of these properties will be open for business once utility services are fully restored.
As previously reported, our properties have been affected by flooding, wind, wind-blown
debris, falling trees and tree branches. Overall, homes in our communities held up well with most
of the structural damage limited to carports, screen rooms and awnings. Structural damage to
common areas was also limited.
We are in the process of estimating costs associated with our cleanup and restoration
efforts, and the Company believes that it has adequate insurance, subject to deductibles, including
business interruption coverage. At this time, we do not believe that Hurricane Irma will
significantly impact our results of operations or our financial condition on a consolidated basis
and, accordingly, the Company reaffirms previously issued 2017 guidance.
President and Chief Executive Officer Marguerite Nader commented, “We continue to be
grateful that there were no reported injuries to our residents, guests or employees. Our employees
in Florida have shown the depths of their dedication to our customers and our communities as they
carried out our emergency response plans and coordinated property evacuations. They are now
focusing their efforts on quickly restoring our properties and addressing the needs of our residents
and guests.”
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. These
forward-looking statements are subject to numerous assumptions, risks and uncertainties,
including, but not limited to:
• our ability to control costs, real estate market conditions, the actual rate of decline in
customers, the actual use of Sites by customers and our success in acquiring new
customers at our Properties (including those that we may acquire);
• our ability to maintain historical or increase future rental rates and occupancy with
respect to Properties currently owned or that we may acquire;
• our ability to retain and attract customers renewing, upgrading and entering right-to-use
contracts;
• our assumptions and guidance concerning 2017 estimated net income, FFO and
Normalized FFO;
• our assumptions about rental and home sales markets;
• our ability to manage counter-party risk;
• in the age-qualified Properties, home sales results could be impacted by the ability of
potential home buyers to sell their existing residences as well as by financial, credit and
capital markets volatility;
• results from home sales and occupancy will continue to be impacted by local economic
conditions, lack of affordable manufactured home financing and competition from
alternative housing options including site-built single-family housing;
• impact of government intervention to stabilize site-built single family housing and not
manufactured housing;
• effective integration of recent acquisitions and our estimates regarding the future
performance of recent acquisitions;
• the completion of future transactions in their entirety, if any, and timing and effective
integration with respect thereto;
• unanticipated costs or unforeseen liabilities associated with recent acquisitions;
• ability to obtain financing or refinance existing debt on favorable terms or at all;
• the effect of interest rates;
• the dilutive effects of issuing additional securities;
• the effect of accounting for the entry of contracts with customers representing a right-to-
use the Properties under the Codification Topic "Revenue Recognition";
• the outcome of pending or future lawsuits or actions brought against us, including those
disclosed in our filings with the Securities and Exchange Commission; and
• other risks indicated from time to time in our filings with the Securities and Exchange
Commission.
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
“Risk Factors” in our most recent Annual Report on Form 10-K and subsequent quarterly reports.
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.
We are a fully integrated owner and operator of lifestyle-oriented properties and own or
have an interest in 404 quality properties in 32 states and British Columbia consisting of 149,450
sites. We are a self-administered, self-managed real estate investment trust with headquarters in
Chicago.
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