(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification Number) | |||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
• | our ability to control costs and real estate market conditions, our ability to retain 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 attract and retain customers entering, renewing and upgrading membership subscriptions; |
• | our assumptions about rental and home sales markets; |
• | our ability to manage counterparty risk; |
• | our ability to renew our insurance policies at existing rates and on consistent terms; |
• | 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 effect from any breach of our, or any of our vendors', data management systems; |
• | the dilutive effects of issuing additional securities; |
• | 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. |
EQUITY LIFESTYLE PROPERTIES, INC. | ||
By: /s/ Paul Seavey | ||
Paul Seavey | ||
Executive Vice President and Chief Financial Officer |
CONTACT: Paul Seavey | FOR IMMEDIATE RELEASE |
(800) 247-5279 | April 20, 2020 |
i |
ii |
• | our ability to control costs and real estate market conditions, our ability to retain 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 attract and retain customers entering, renewing and upgrading membership subscriptions; |
• | our assumptions about rental and home sales markets; |
• | our ability to manage counterparty risk; |
• | our ability to renew our insurance policies at existing rates and on consistent terms; |
• | 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 effect from any breach of our, or any of our vendors', data management systems; |
• | the dilutive effects of issuing additional securities; |
• | 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. |
iii |
COVID-19 Update |
• | MH properties are open and complying with state and local shelter-in-place orders. |
• | RV properties are open and complying with state and local shelter-in-place orders, subject to the following: |
◦ | 46 northern RV resorts, which were otherwise scheduled to open in March or April, have delayed openings to comply with restrictions. Customers of these northern RV properties, which generated approximately 20% of 2019 Annual resort base rental income, have lease renewals in April and May. |
◦ | We stopped accepting reservations for RV Transient stays through April 30, 2020. In 2019, 23% of our Transient revenue for the second quarter was earned in April, 33% in May and 44% in June. |
• | Seven Loggerhead marinas are open and complying with state and local shelter-in-place orders and the remaining four are subject to boat launching restrictions. |
• | Implemented CDC and local public health department guidelines and developed protocols for social distancing and enhanced community/office cleaning. |
◦ | All indoor amenity areas, pools and playgrounds are closed. |
◦ | Office hours are by appointment only. |
• | Implemented measures to assist our residents and customers. |
◦ | Introduced rent deferral program for financial hardship related to COVID-19 to allow payment of April rent over subsequent three months. |
◦ | Suspended eviction proceedings and notice of MH rent increases. |
◦ | Waived April late fees and RV reservation cancellation fees. |
◦ | Allowing extended stays for Thousand Trails members to facilitate compliance with shelter-in-place orders. |
◦ | Provided guide for residents to identify available local, state and federal resources. |
• | Introduced Employee Time Off program to provide continuation of pay for up to two weeks during period of disruption caused by COVID-19. |
• | Transitioned our corporate, regional, contact center and sales employees to a remote workforce. |
• | Manufactured home portfolio – 96% of April 2020 rent is collected as compared to 97% at this time in April 2019. |
• | RV Annuals – 96% of April Annual 2020 rent is collected as compared to 98% at this time in April 2019. |
◦ | We have collected from customers in our Northern resorts with April and May lease renewals, 61% of installment rent payments as compared to 71% at this time in April 2019. |
• | RV Seasonals – At this time, seasonal RV customers have made $2.1 million in reservations for April, or 88% as compared to the $2.4 million in seasonal RV reservations for April as of this time in April 2019. |
• | Thousand Trails – 95% of cash receipts as compared to this time in April 2019. |
• | Marina – 93% of total April billing is collected. |
• | Liquidity position – $125.9 million available cash, $300.0 million available on line of credit (subject to certain conditions). |
1Q 2020 Supplemental Financial Information | 1 | Equity LifeStyle Properties, Inc. |
Investor Information |
Equity Research Coverage (1) | ||
Bank of America Securities | BMO Capital Markets | Citi Research |
Jeffrey Spector/ Joshua Dennerlein | John Kim | Michael Bilerman/ Nick Joseph |
Evercore ISI | Green Street Advisors | Robert W. Baird & Company |
Steve Sakwa/ Samir Khanal | John Pawlowski | Drew T. Babin |
Wells Fargo Securities | ||
Todd Stender | ||
1. | Any opinions, estimates or forecasts regarding our performance made by these analysts or agencies do not represent our opinions, forecasts or predictions. We do not by reference to these firms imply our endorsement of or concurrence with such information, conclusions or recommendations. |
1Q 2020 Supplemental Financial Information | 2 | Equity LifeStyle Properties, Inc. |
Financial Highlights |
As of and for the Three Months Ended | |||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sept 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||||||
Operating Information | |||||||||||||||
Total revenues | $ | 280.5 | $ | 258.6 | $ | 271.2 | $ | 248.4 | $ | 259.1 | |||||
Net income | $ | 70.7 | $ | 58.1 | $ | 68.2 | $ | 49.1 | $ | 120.5 | |||||
Net income available for Common Stockholders | $ | 66.9 | $ | 55.0 | $ | 64.5 | $ | 46.4 | $ | 113.3 | |||||
Adjusted EBITDAre (1) | $ | 138.2 | $ | 124.5 | $ | 127.0 | $ | 117.7 | $ | 133.3 | |||||
FFO available for Common Stock and OP Unit holders (1)(2) | $ | 112.3 | $ | 99.5 | $ | 108.6 | $ | 89.8 | $ | 108.0 | |||||
Normalized FFO available for Common Stock and OP Unit holders (1)(2) | $ | 113.3 | $ | 99.5 | $ | 102.7 | $ | 91.9 | $ | 107.7 | |||||
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2) | $ | 101.8 | $ | 84.6 | $ | 88.4 | $ | 79.1 | $ | 97.6 | |||||
Common Stock and OP Units Outstanding (In thousands) and Per Share Data | |||||||||||||||
Common Stock and OP Units, end of the period | 192,627 | 192,581 | 192,574 | 192,562 | 191,470 | ||||||||||
Weighted average Common Stock and OP Units outstanding - Fully Diluted | 192,564 | 192,458 | 192,400 | 191,860 | 191,248 | ||||||||||
Net income per Common Share - Fully Diluted (3) | $ | 0.37 | $ | 0.30 | $ | 0.35 | $ | 0.26 | $ | 0.63 | |||||
FFO per Common Share and OP Unit - Fully Diluted | $ | 0.58 | $ | 0.52 | $ | 0.56 | $ | 0.47 | $ | 0.56 | |||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $ | 0.59 | $ | 0.52 | $ | 0.53 | $ | 0.48 | $ | 0.56 | |||||
Dividends per Common Share | $ | 0.3425 | $ | 0.3063 | $ | 0.3063 | $ | 0.3063 | $ | 0.3063 | |||||
Balance Sheet | |||||||||||||||
Total assets | $ | 4,212 | $ | 4,151 | $ | 4,137 | $ | 4,014 | $ | 4,009 | |||||
Total liabilities | $ | 2,892 | $ | 2,829 | $ | 2,818 | $ | 2,707 | $ | 2,752 | |||||
Market Capitalization | |||||||||||||||
Total debt (4) | $ | 2,486 | $ | 2,432 | $ | 2,406 | $ | 2,300 | $ | 2,372 | |||||
Total market capitalization (5) | $ | 13,558 | $ | 15,988 | $ | 15,270 | $ | 13,983 | $ | 13,315 | |||||
Ratios | |||||||||||||||
Total debt / total market capitalization | 18.3 | % | 15.2 | % | 15.8 | % | 16.4 | % | 17.8 | % | |||||
Total debt / Adjusted EBITDAre (6) | 4.9 | 4.8 | 4.9 | 4.7 | 4.9 | ||||||||||
Interest coverage (7) | 4.9 | 4.9 | 4.8 | 4.7 | 4.6 | ||||||||||
Fixed charges(8) | 4.9 | 4.8 | 4.7 | 4.6 | 4.5 |
1. | See Non-GAAP Financial Measures Definitions and Other Terms 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 8 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 $26.0 million as of March 31, 2020. |
5. | See page 15 for the calculation of market capitalization as of March 31, 2020. |
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 Other Terms 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. |
1Q 2020 Supplemental Financial Information | 3 | Equity LifeStyle Properties, Inc. |
Consolidated Balance Sheets |
March 31, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
Assets | |||||||
Investment in real estate: | |||||||
Land | $ | 1,526,225 | $ | 1,525,407 | |||
Land improvements | 3,362,287 | 3,336,070 | |||||
Buildings and other depreciable property | 892,816 | 881,572 | |||||
5,781,328 | 5,743,049 | ||||||
Accumulated depreciation | (1,812,822 | ) | (1,776,224 | ) | |||
Net investment in real estate | 3,968,506 | 3,966,825 | |||||
Cash and restricted cash | 96,921 | 28,860 | |||||
Notes receivable, net | 35,227 | 37,558 | |||||
Investment in unconsolidated joint ventures | 20,130 | 20,074 | |||||
Deferred commission expense | 41,230 | 41,149 | |||||
Other assets, net | 50,450 | 56,809 | |||||
Total Assets | $ | 4,212,464 | $ | 4,151,275 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Mortgage notes payable, net | $ | 2,260,819 | $ | 2,049,509 | |||
Term loan, net | 199,030 | 198,949 | |||||
Unsecured line of credit | — | 160,000 | |||||
Accounts payable and other liabilities | 124,396 | 124,665 | |||||
Deferred revenue – upfront payments from membership upgrade sales | 129,356 | 126,814 | |||||
Deferred revenue – annual membership subscriptions | 12,319 | 10,599 | |||||
Accrued interest payable | 8,627 | 8,639 | |||||
Rents and other customer payments received in advance and security deposits | 91,152 | 91,234 | |||||
Distributions payable | 65,858 | 58,978 | |||||
Total Liabilities | 2,891,557 | 2,829,387 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2020 and December 31, 2019; none issued and outstanding. | — | — | |||||
Common stock, $0.01 par value, 400,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 182,144,559 and 182,089,595 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively. | 1,812 | 1,812 | |||||
Paid-in capital | 1,402,514 | 1,402,696 | |||||
Distributions in excess of accumulated earnings | (153,703 | ) | (154,318 | ) | |||
Accumulated other comprehensive income (loss) | (1,713 | ) | (380 | ) | |||
Total Stockholders’ Equity | 1,248,910 | 1,249,810 | |||||
Non-controlling interests – Common OP Units | 71,997 | 72,078 | |||||
Total Equity | 1,320,907 | 1,321,888 | |||||
Total Liabilities and Equity | $ | 4,212,464 | $ | 4,151,275 |
1Q 2020 Supplemental Financial Information | 4 | Equity LifeStyle Properties, Inc. |
Consolidated Income Statements |
Quarters Ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues: | |||||||
Rental income | $ | 239,346 | $ | 223,566 | |||
Annual membership subscriptions | 13,073 | 12,316 | |||||
Membership upgrade sales current period, gross | 4,843 | 3,838 | |||||
Membership upgrade sales upfront payments, deferred, net | (2,542 | ) | (1,771 | ) | |||
Other income | 11,059 | 10,370 | |||||
Gross revenues from home sales | 11,309 | 6,475 | |||||
Brokered resale and ancillary services revenues, net | 938 | 1,559 | |||||
Interest income | 1,807 | 1,751 | |||||
Income from other investments, net | 643 | 986 | |||||
Total revenues | 280,476 | 259,090 | |||||
Expenses: | |||||||
Property operating and maintenance | 83,634 | 77,948 | |||||
Real estate taxes | 16,841 | 15,323 | |||||
Sales and marketing, gross | 3,978 | 3,409 | |||||
Membership sales commissions, deferred, net | (216 | ) | (191 | ) | |||
Property management | 15,004 | 13,685 | |||||
Depreciation and amortization | 39,024 | 37,977 | |||||
Cost of home sales | 11,911 | 6,632 | |||||
Home selling expenses | 1,213 | 1,083 | |||||
General and administrative | 10,855 | 9,909 | |||||
Other expenses | 588 | 427 | |||||
Early debt retirement | 1,054 | — | |||||
Interest and related amortization | 26,073 | 26,393 | |||||
Total expenses | 209,959 | 192,595 | |||||
Gain on sale of real estate, net | — | 52,507 | |||||
Income before equity in income of unconsolidated joint ventures | 70,517 | 119,002 | |||||
Equity in income of unconsolidated joint ventures | 207 | 1,533 | |||||
Consolidated net income | 70,724 | 120,535 | |||||
Income allocated to non-controlling interests – Common OP Units | (3,849 | ) | (7,226 | ) | |||
Net income available for Common Stockholders | $ | 66,875 | $ | 113,309 |
1Q 2020 Supplemental Financial Information | 5 | Equity LifeStyle Properties, Inc. |
1Q 2020 Supplemental Financial Information | 6 | Equity LifeStyle Properties, Inc. |
Selected Non-GAAP Financial Measures |
Quarter Ended | |||
March 31, 2020 | |||
Income from property operations, excluding deferrals and property management - 2020 Core (1) | $ | 161.1 | |
Income from property operations, excluding deferrals and property management - Non-Core (1) | 2.8 | ||
Property management and general and administrative | (25.9 | ) | |
Other income and expenses | 1.4 | ||
Interest and related amortization | (26.1 | ) | |
Normalized FFO available for Common Stock and OP Unit holders (2) | 113.3 | ||
Early debt retirement | (1.0 | ) | |
FFO available for Common Stock and OP Unit holders (2) | $ | 112.3 | |
Normalized FFO per Common Share and OP Unit - Fully Diluted | $0.59 | ||
FFO per Common Share and OP Unit - Fully Diluted | $0.58 | ||
Normalized FFO available for Common Stock and OP Unit holders (2) | $ | 113.3 | |
Non-revenue producing improvements to real estate (2) | (11.5 | ) | |
FAD for Common Stock and OP Unit holders (2) | $ | 101.8 | |
Weighted average Common Stock and OP Units - Fully Diluted | 192.6 |
1. | See page 10 for details of the Core Income from Property Operations, excluding deferrals and property management. See page 11 for details of the Non-Core Income from Property Operations, excluding deferrals and property management. |
2. | See page 8 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. |
1Q 2020 Supplemental Financial Information | 7 | Equity LifeStyle Properties, Inc. |
Reconciliation of Net Income to Non-GAAP Financial Measures |
Quarters Ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income available for Common Stockholders | $ | 66,875 | $ | 113,309 | ||||
Income allocated to non-controlling interests – Common OP Units | 3,849 | 7,226 | ||||||
Membership upgrade sales upfront payments, deferred, net | 2,542 | 1,771 | ||||||
Membership sales commissions, deferred, net | (216 | ) | (191 | ) | ||||
Depreciation and amortization | 39,024 | 37,977 | ||||||
Depreciation on unconsolidated joint ventures | 177 | 433 | ||||||
Gain on sale of real estate, net | — | (52,507 | ) | |||||
FFO available for Common Stock and OP Unit holders | 112,251 | 108,018 | ||||||
Early debt retirement | 1,054 | — | ||||||
Insurance proceeds due to catastrophic weather event (1) | — | (349 | ) | |||||
Normalized FFO available for Common Stock and OP Unit holders | 113,305 | 107,669 | ||||||
Non-revenue producing improvements to real estate | (11,467 | ) | (10,064 | ) | ||||
FAD for Common Stock and OP Unit holders | $ | 101,838 | $ | 97,605 | ||||
Net income available per Common Share - Basic | $ | 0.37 | $ | 0.63 | ||||
Net income available per Common Share - Fully Diluted (2) | $ | 0.37 | $ | 0.63 | ||||
FFO per Common Share and OP Unit - Basic | $ | 0.58 | $ | 0.57 | ||||
FFO per Common Share and OP Unit - Fully Diluted | $ | 0.58 | $ | 0.56 | ||||
Normalized FFO per Common Share and OP Unit - Basic | $ | 0.59 | $ | 0.56 | ||||
Normalized FFO per Common Share and OP Unit - Fully Diluted | $ | 0.59 | $ | 0.56 | ||||
Average Common Stock - Basic | 181,729 | 179,560 | ||||||
Average Common Stock and OP Units - Basic | 192,220 | 191,042 | ||||||
Average Common Stock and OP Units - Fully Diluted | 192,564 | 191,248 |
1. | Represents insurance recovery revenue from reimbursement for capital expenditures related to Hurricane Irma. |
2. | Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest - Common OP Units. |
1Q 2020 Supplemental Financial Information | 8 | Equity LifeStyle Properties, Inc. |
Consolidated Income from Property Operations (1) |
Quarters Ended March 31, | |||||||
2020 | 2019 | ||||||
MH base rental income (2) | $ | 141.4 | $ | 135.3 | |||
Rental home income | 4.0 | 3.6 | |||||
RV and marina base rental income (3) | 81.1 | 72.1 | |||||
Annual membership subscriptions | 13.1 | 12.3 | |||||
Membership upgrade sales current period, gross | 4.8 | 3.8 | |||||
Utility and other income (4) | 25.3 | 23.8 | |||||
Property operating revenues | 269.7 | 250.9 | |||||
Property operating, maintenance and real estate taxes (5) | 100.5 | 92.9 | |||||
Rental home operating and maintenance | 1.3 | 1.2 | |||||
Sales and marketing, gross | 4.0 | 3.4 | |||||
Property operating expenses | 105.8 | 97.5 | |||||
Income from property operations, excluding deferrals and property management (1) | $ | 163.9 | $ | 153.4 | |||
Manufactured home site figures and occupancy averages: | |||||||
Total sites | 72,251 | 72,370 | |||||
Occupied sites | 68,495 | 68,590 | |||||
Occupancy % | 94.8 | % | 94.8 | % | |||
Monthly base rent per site | $ | 688 | $ | 657 | |||
RV and marina base rental income: | |||||||
Annual | $ | 47.3 | $ | 39.0 | |||
Seasonal | 22.6 | 21.1 | |||||
Transient | 11.2 | 12.0 | |||||
Total RV and marina base rental income | $ | 81.1 | $ | 72.1 |
1. | Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net. |
2. | See the manufactured home site figures and occupancy averages included below within this table. |
3. | See RV and marina base rental income detail included below within this table. |
4. | Includes Hurricane Irma insurance recovery revenues of $0.6 million, which we have identified as business interruption, for the quarter ended March 31, 2019. |
5. | Includes bad debt expense for the periods presented. |
1Q 2020 Supplemental Financial Information | 9 | Equity LifeStyle Properties, Inc. |
Core Income from Property Operations (1) |
Quarters Ended March 31, | ||||||||||
2020 | 2019 | Change (2) | ||||||||
MH base rental income (3) | $ | 141.4 | $ | 134.9 | 4.9 | % | ||||
Rental home income | 4.0 | 3.5 | 14.1 | % | ||||||
RV base rental income (4) | 75.6 | 72.1 | 4.8 | % | ||||||
Annual membership subscriptions | 13.1 | 12.3 | 6.1 | % | ||||||
Membership upgrade sales current period, gross | 4.8 | 3.8 | 26.2 | % | ||||||
Utility and other income (5) | 24.9 | 23.7 | 5.1 | % | ||||||
Property operating revenues | 263.8 | 250.3 | 5.4 | % | ||||||
Property operating, maintenance and real estate taxes (6) | 97.5 | 92.6 | 5.3 | % | ||||||
Rental home operating and maintenance | 1.3 | 1.2 | 13.4 | % | ||||||
Sales and marketing, gross | 3.9 | 3.4 | 16.7 | % | ||||||
Property operating expenses | 102.7 | 97.2 | 5.8 | % | ||||||
Income from property operations, excluding deferrals and property management (1) | $ | 161.1 | $ | 153.1 | 5.2 | % | ||||
Occupied sites (7) | 68,589 | 68,254 | ||||||||
Core manufactured home site figures and occupancy averages: | ||||||||||
Total sites | 71,979 | 71,754 | ||||||||
Occupied sites | 68,486 | 68,171 | ||||||||
Occupancy % | 95.1 | % | 95.0 | % | ||||||
Monthly base rent per site | $ | 688 | $ | 659 | ||||||
Core RV base rental income: | ||||||||||
Annual | $ | 41.9 | $ | 39.0 | 7.4 | % | ||||
Seasonal | 22.6 | 21.1 | 7.0 | % | ||||||
Transient | 11.1 | 12.0 | (7.6 | )% | ||||||
Total RV base rental income | $ | 75.6 | $ | 72.1 | 4.8 | % |
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. | See Core manufactured home site figures and occupancy averages included below within this table. |
4. | See Core RV base rental income detail included below within this table. |
5. | Includes Hurricane Irma insurance recovery revenues of $0.6 million, which we have identified as business interruption, for the quarter ended March 31, 2019. |
6. | Includes bad debt expense for the periods presented. |
7. | Occupied sites are presented as of the end of the period. Occupied sites have increased by 13 from 68,576 at December 31, 2019. |
1Q 2020 Supplemental Financial Information | 10 | Equity LifeStyle Properties, Inc. |
Non-Core Income from Property Operations (1) |
Quarter Ended | |||
March 31, 2020 | |||
MH base rental income | $ | — | |
Rental home income | — | ||
RV and marina base rental income | 5.5 | ||
Utility and other income | 0.4 | ||
Property operating revenues | 5.9 | ||
Property operating expenses (2) | 3.1 | ||
Income from property operations, excluding deferrals and property management (1) | $ | 2.8 |
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. |
1Q 2020 Supplemental Financial Information | 11 | Equity LifeStyle Properties, Inc. |
Income from Rental Home Operations |
Quarters Ended March 31, | |||||||
2020 | 2019 | ||||||
Manufactured homes: | |||||||
Rental operations revenues (1) | $ | 11.7 | $ | 11.2 | |||
Rental operations expense | 1.3 | 1.2 | |||||
Income from rental operations | 10.4 | 10.0 | |||||
Depreciation on rental homes (2) | 2.8 | 2.4 | |||||
Income from rental operations, net of depreciation | $ | 7.6 | $ | 7.6 | |||
Occupied rentals: (3) | |||||||
New | 3,226 | 2,860 | |||||
Used | 687 | 1,106 | |||||
Total occupied rental sites | 3,913 | 3,966 |
As of March 31, 2020 | As of March 31, 2019 | ||||||||||||||
Cost basis in rental homes: (4) | Gross | Net of Depreciation | Gross | Net of Depreciation | |||||||||||
New | $ | 233.7 | $ | 197.3 | $ | 174.6 | $ | 151.6 | |||||||
Used | 19.6 | 9.0 | 27.3 | 13.5 | |||||||||||
Total rental homes | $ | 253.3 | $ | 206.3 | $ | 201.9 | $ | 165.1 |
1. | For the quarters ended March 31, 2020 and 2019, approximately $7.8 million and $7.7 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 10. The remainder of the rental operations revenue is included in Rental home income for the quarters ended March 31, 2020 and 2019 in the Core Income from Property Operations on page 10. |
2. | Depreciation on rental homes in our Core portfolio is included in Depreciation and amortization in the Consolidated Income Statements on page 5. |
3. | Occupied rentals as of the end of the period in our Core portfolio. Included in the quarters ended March 31, 2020 and 2019 were 286 and 290 homes rented through our ECHO joint venture, respectively. For the quarters ended March 31, 2020 and 2019, the rental home investment associated with our ECHO joint venture totaled approximately $11.1 million and $10.5 million, respectively. |
4. | 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. At March 31, 2020 and 2019, our investment in the ECHO joint venture was approximately $17.0 million and $16.4 million, respectively. |
1Q 2020 Supplemental Financial Information | 12 | Equity LifeStyle Properties, Inc. |
Total Sites and Home Sales |
Summary of Total Sites as of March 31, 2020 | ||
Sites (1) | ||
MH sites | 72,200 | |
RV sites: | ||
Annual | 29,700 | |
Seasonal | 10,200 | |
Transient | 13,900 | |
Marina slips | 2,300 | |
Membership (2) | 24,600 | |
Joint Ventures (3) | 3,600 | |
Total (4) | 156,700 |
Home Sales - Select Data | |||||||
Quarters Ended March 31, | |||||||
2020 | 2019 | ||||||
Total New Home Sales Volume (5) | 155 | 91 | |||||
New Home Sales Volume - ECHO joint venture | 12 | 13 | |||||
New Home Sales Gross Revenues (5) | $ | 9,382 | $ | 4,564 | |||
Total Used Home Sales Volume | 194 | 219 | |||||
Used Home Sales Gross Revenues | $ | 1,927 | $ | 1,911 | |||
Brokered Home Resales Volume | 176 | 168 | |||||
Brokered Home Resale Revenues, net | $ | 261 | $ | 278 |
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 116,500 members. Includes approximately 5,900 sites rented on an annual basis. |
3. | Joint ventures have approximately 2,900 annual Sites, 500 seasonal Sites, and 200 transient Sites. |
4. | Total does not foot due to rounding. |
5. | Total new home sales volume includes home sales from our ECHO joint venture. New home sales gross revenues does not include the revenues associated with our ECHO joint venture. |
1Q 2020 Supplemental Financial Information | 13 | Equity LifeStyle Properties, Inc. |
Memberships - Select Data |
2016 | 2017 | 2018 | 2019 | 2020 Q1 (1) | |||||||||||||||||
Member Count (2) | 104,728 | 106,456 | 111,094 | 115,680 | 116,547 | ||||||||||||||||
Thousand Trails Camping Pass (TTC) Origination | 29,576 | 31,618 | 37,528 | 41,484 | 8,238 | ||||||||||||||||
TTC Sales | 12,856 | 14,128 | 17,194 | 19,267 | 3,202 | ||||||||||||||||
RV Dealer TTC Activations | 16,720 | 17,490 | 20,334 | 22,217 | 5,036 | ||||||||||||||||
Number of annuals (3) | 5,756 | 5,843 | 5,888 | 5,938 | 5,903 | ||||||||||||||||
Number of upgrade sales (4) | 2,477 | 2,514 | 2,500 | 2,919 | 727 | ||||||||||||||||
(In thousands, unaudited) | |||||||||||||||||||||
Annual membership subscriptions | $ | 45,036 | $ | 45,798 | $ | 47,778 | $ | 51,015 | $ | 13,073 | |||||||||||
RV base rental income from annuals | $ | 15,413 | $ | 16,841 | $ | 18,363 | $ | 19,634 | $ | 5,044 | |||||||||||
RV base rental income from seasonals/transients | $ | 17,344 | $ | 18,231 | $ | 19,840 | $ | 20,181 | $ | 2,366 | |||||||||||
Upgrade contract initiations (5) | $ | 12,312 | $ | 14,130 | $ | 15,191 | $ | 19,111 | $ | 4,843 | |||||||||||
Utility and other income | $ | 2,442 | $ | 2,254 | $ | 2,410 | $ | 2,422 | $ | 427 | |||||||||||
1. | Activity through March 31, 2020. |
2. | Members have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days. |
3. | Members who rent a specific site for an entire year in connection with their membership subscriptions. |
4. | 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. |
5. | Revenues associated with membership upgrades are included in membership upgrade sales current period, gross on our Consolidated Income Statements on page 5. |
1Q 2020 Supplemental Financial Information | 14 | Equity LifeStyle Properties, Inc. |
Market Capitalization |
Capital Structure as of March 31, 2020 | |||||||||||||||||
Total Common Stock/Units | % of Total Common Stock/Units | Total | % of Total | % of Total Market Capitalization | |||||||||||||
Secured Debt | $ | 2,286 | 92.0 | % | |||||||||||||
Unsecured Debt | 200 | 8.0 | % | ||||||||||||||
Total Debt (1) | $ | 2,486 | 100.0 | % | 18.3 | % | |||||||||||
Common Stock | 182,144,559 | 94.6 | % | ||||||||||||||
OP Units | 10,481,994 | 5.4 | % | ||||||||||||||
Total Common Stock and OP Units | 192,626,553 | 100.0 | % | ||||||||||||||
Common Stock price at March 31, 2020 | $ | 57.48 | |||||||||||||||
Fair Value of Common Stock and OP Units | $ | 11,072 | 100.0 | % | |||||||||||||
Total Equity | $ | 11,072 | 100.0 | % | 81.7 | % | |||||||||||
Total Market Capitalization | $ | 13,558 | 100.0 | % |
1Q 2020 Supplemental Financial Information | 15 | Equity LifeStyle Properties, Inc. |
Debt Maturity Schedule |
Year | Secured Debt | Weighted Average Interest Rate | Unsecured Debt | Weighted Average Interest Rate | Total Debt | % of Total Debt | Weighted Average Interest Rate | ||||||||||||||||||
2020 | $ | — | — | % | $ | — | — | % | $ | — | — | % | — | % | |||||||||||
2021 | 168,034 | 5.01 | % | — | — | % | 168,034 | 6.76 | % | 5.01 | % | ||||||||||||||
2022 | 144,889 | 4.62 | % | — | — | % | 144,889 | 5.83 | % | 4.62 | % | ||||||||||||||
2023 | 101,987 | 5.03 | % | 200,000 | 3.05 | % | 301,987 | 12.15 | % | 3.72 | % | ||||||||||||||
2024 | 10,585 | 5.49 | % | — | — | % | 10,585 | 0.43 | % | 5.49 | % | ||||||||||||||
2025 | 100,267 | 3.45 | % | — | — | % | 100,267 | 4.04 | % | 3.45 | % | ||||||||||||||
2026 | — | — | % | — | — | % | — | — | % | — | % | ||||||||||||||
2027 | — | — | % | — | — | % | — | — | % | — | % | ||||||||||||||
2028 | 220,606 | 4.19 | % | — | — | % | 220,606 | 8.88 | % | 4.19 | % | ||||||||||||||
2029 | — | — | % | — | — | % | — | — | % | — | % | ||||||||||||||
Thereafter | 1,538,533 | 3.96 | % | — | — | % | 1,538,533 | 61.92 | % | 3.96 | % | ||||||||||||||
Total | $ | 2,284,901 | 4.13 | % | $ | 200,000 | 3.05 | % | $ | 2,484,901 | 100.0 | % | 4.05 | % | |||||||||||
Unsecured Line of Credit | — | — | — | ||||||||||||||||||||||
Note Premiums | 946 | — | 946 | ||||||||||||||||||||||
Total Debt | 2,285,847 | 200,000 | 2,485,847 | ||||||||||||||||||||||
Deferred Financing Costs | (25,028 | ) | (970 | ) | (25,998 | ) | |||||||||||||||||||
Total Debt, net | $ | 2,260,819 | $ | 199,030 | $ | 2,459,849 | 4.24 | % | (1) | ||||||||||||||||
Average Years to Maturity | 12.8 | 3.1 | 12.0 |
1. | Reflects effective interest rate for the quarter ended March 31, 2020, including amortization of note premiums and deferred financing costs. |
1Q 2020 Supplemental Financial Information | 16 | Equity LifeStyle Properties, Inc. |
Non-GAAP Financial Measures Definitions and Reconciliations |
1Q 2020 Supplemental Financial Information | 17 | Equity LifeStyle Properties, Inc. |
Quarters Ended March 31, | ||||||||
(amounts in thousands) | 2020 | 2019 | ||||||
Net income available for Common Stockholders | $ | 66,875 | $ | 113,309 | ||||
Income allocated to non-controlling interests – Common OP Units | 3,849 | 7,226 | ||||||
Equity in income of unconsolidated joint ventures | (207 | ) | (1,533 | ) | ||||
Income before equity in income of unconsolidated joint ventures | 70,517 | 119,002 | ||||||
Gain on sale of real estate, net | — | (52,507 | ) | |||||
Membership upgrade sales upfront payments, deferred, net | 2,542 | 1,771 | ||||||
Gross revenues from home sales | (11,309 | ) | (6,475 | ) | ||||
Brokered resale and ancillary services revenues, net | (938 | ) | (1,559 | ) | ||||
Interest income | (1,807 | ) | (1,751 | ) | ||||
Income from other investments, net | (643 | ) | (986 | ) | ||||
Membership sales commissions, deferred, net | (216 | ) | (191 | ) | ||||
Property management | 15,004 | 13,685 | ||||||
Depreciation and amortization | 39,024 | 37,977 | ||||||
Cost of home sales | 11,911 | 6,632 | ||||||
Home selling expenses | 1,213 | 1,083 | ||||||
General and administrative | 10,855 | 9,909 | ||||||
Other expenses | 588 | 427 | ||||||
Early debt retirement | 1,054 | — | ||||||
Interest and related amortization | 26,073 | 26,393 | ||||||
Income from property operations, excluding deferrals and property management | 163,868 | 153,410 | ||||||
Membership upgrade sales upfront payments, and membership sales commissions, deferred, net | (2,326 | ) | (1,580 | ) | ||||
Property management | (15,004 | ) | (13,685 | ) | ||||
Income from property operations | $ | 146,538 | $ | 138,145 |
1Q 2020 Supplemental Financial Information | 18 | Equity LifeStyle Properties, Inc. |
Quarters Ended March 31, | ||||||||
(amounts in thousands) | 2020 | 2019 | ||||||
Consolidated net income | $ | 70,724 | $ | 120,535 | ||||
Interest income | (1,807 | ) | (1,751 | ) | ||||
Membership upgrade sales upfront payments, deferred, net | 2,542 | 1,771 | ||||||
Membership sales commissions, deferred, net | (216 | ) | (191 | ) | ||||
Real estate depreciation and amortization | 39,024 | 37,977 | ||||||
Other depreciation and amortization | 588 | 427 | ||||||
Interest and related amortization | 26,073 | 26,393 | ||||||
Gain on sale of real estate, net | — | (52,507 | ) | |||||
Adjustments to our share of EBITDAre of unconsolidated joint ventures | 263 | 1,001 | ||||||
EBITDAre | 137,191 | 133,655 | ||||||
Early debt retirement | 1,054 | — | ||||||
Insurance proceeds due to catastrophic weather event | — | (349 | ) | |||||
Adjusted EBITDAre | $ | 138,245 | $ | 133,306 |
1Q 2020 Supplemental Financial Information | 19 | Equity LifeStyle Properties, Inc. |