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els-20201019
EQUITY LIFESTYLE PROPERTIES INC0000895417false00008954172020-10-192020-10-19

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): October 19, 2020


EQUITY LIFESTYLE PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
Maryland1-1171836-3857664
(State or other jurisdiction of incorporation)
(Commission File No.)(IRS Employer Identification Number)
Two North Riverside PlazaChicago,Illinois60606
(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):
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueELSNew York Stock Exchange

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  

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.




Item 2.02    Results of Operations and Financial Condition
On October 19, 2020, Equity LifeStyle Properties, Inc. (referred to herein as “we,” “us,” and “our”) issued a news release announcing our results of operations for the three and nine months ended September 30, 2020 and our preliminary guidance on Core MH and Core RV annual rate growth for 2021.

The news release is furnished as Exhibit 99.1 to this report on Form 8-K. The news release was also posted on our website, www.equitylifestyleproperties.com, on October 19, 2020.

Item 7.01     Regulation FD Disclosure

In past years, management reported its annual dividend recommendation for the upcoming year in connection with the issuance of guidance for the upcoming year. Each year, to arrive at a recommendation, management reviewed our projected growth in FFO and our outstanding obligations with a goal of maintaining our underlying financial flexibility. At this time, our 2021 budget has not been completed. Accordingly, management intends to make a 2021 annual dividend recommendation to the Board of Directors upon completion of the 2021 budget process and intends to use a methodology consistent with past years to support the recommendation.

In accordance with General Instruction B.2. of Form 8-K, the information included in Items 2.02 and 9.01 of this 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.

    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 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 assumptions and guidance concerning 2021 Core MH and Core RV annual rate growth;
our ability to manage counter-party 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 homebuyers 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;
our 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 vendor's, 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.




    In addition, these forward-looking statements and our preliminary guidance on Core MH and Core RV annual rate growth are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers, and employees in particular, its impact on the employment rate and the economy, the extent and impact of governmental responses, and the impact of operational changes we have implemented and may implement in response to the pandemic.

    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 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.

    We are a fully integrated owner and operator of lifestyle-oriented properties and own or have an interest in 415 quality properties in 33 states and British Columbia consisting of 157,690 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

The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant's annual and quarterly reports filed with the Securities and Exchange Commission.


99.1 Equity LifeStyle Properties, Inc. press release dated October 19, 2020, “ELS Reports Third Quarter Results”
104 Cover Page Interactive Data File included as Exhibit 101 (embedded within the Inline XBRL document)






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 and Chief Financial Officer


Date: October 20, 2020


Document

N E W S R E L E A S E
https://cdn.kscope.io/15c4e3cb0aea09eceed9db4f33dd63f7-elslogoa341.jpg
CONTACT: Paul SeaveyFOR IMMEDIATE RELEASE
(800) 247-5279October 19, 2020
                                    
ELS REPORTS THIRD QUARTER RESULTS
Strong Operating Performance

CHICAGO, IL – October 19, 2020 Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and nine months ended September 30, 2020.
All Common Stock and OP Units as well as per share results reflect the two for one stock split that was completed on October 15, 2019. Additionally, all per share results are reported on a fully diluted basis unless otherwise noted.
Financial Results for the Quarter and Nine Months Ended September 30, 2020
For the quarter ended September 30, 2020, total revenues increased $13.8 million, or 5.1 percent, to $285.0 million compared to $271.2 million for the same period in 2019. For the quarter ended September 30, 2020, net income available for Common Stockholders decreased $13.9 million, or $0.07 per Common Share, to $50.6 million, or $0.28 per Common Share, compared to $64.5 million, or $0.35 per Common Share, for the same period in 2019.
For the nine months ended September 30, 2020, total revenues increased $41.0 million, or 5.3 percent, to $819.6 million compared to $778.6 million for the same period in 2019. For the nine months ended September 30, 2020, net income available for Common Stockholders decreased $60.6 million, or $0.34 per Common Share, to $163.6 million, or $0.90 per Common Share, compared to $224.2 million, or $1.24 per Common Share, for the same period in 2019. The financial results for 2019 included a gain of $52.5 million on the sale of five all-age MH communities.
Non-GAAP Financial Measures and Portfolio Performance
For the quarter ended September 30, 2020, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders decreased $12.8 million, or $0.06 per Common Share, to $95.8 million, or $0.50 per Common Share, compared to $108.6 million, or $0.56 per Common Share, for the same period in 2019. For the nine months ended September 30, 2020, FFO available for Common Stock and OP Unit holders decreased $8.8 million, or $0.05 per Common Share, to $297.6 million, or $1.55 per Common Share, compared to $306.4 million, or $1.60 per Common Share, for the same period in 2019.
For the quarter ended September 30, 2020, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $2.8 million, or $0.02 per Common Share, to $105.5 million, or $0.55 per Common Share, compared to $102.7 million, or $0.53 per Common Share, for the same period in 2019. For the nine months ended September 30, 2020, Normalized FFO available for Common Stock and OP Unit holders increased $7.5 million, or $0.03 per Common Share, to $309.8 million, or $1.61 per Common Share, compared to $302.3 million, or $1.58 per Common Share, for the same period in 2019.
For the quarter ended September 30, 2020, property operating revenues, excluding deferrals, increased $16.7 million to $272.9 million compared to $256.2 million for the same period in 2019. For the nine months ended September 30, 2020, property operating revenues, excluding deferrals, increased $41.7 million to $789.5 million compared to $747.8 million for the same period in 2019. For the quarter ended September 30, 2020, income from property operations, excluding deferrals and property management, increased $5.3 million to $150.6 million compared to $145.3 million for the same period in 2019. For the nine months ended September 30, 2020, income
i



from property operations, excluding deferrals and property management, increased $19.5 million to $453.9 million compared to $434.4 million for the same period in 2019.
For the quarter ended September 30, 2020, Core property operating revenues, excluding deferrals, increased approximately 4.9 percent and Core income from property operations, excluding deferrals and property management, increased approximately 1.8 percent compared to the same period in 2019. For the nine months ended September 30, 2020, Core property operating revenues, excluding deferrals, increased approximately 3.7 percent and Core income from property operations, excluding deferrals and property management, increased approximately 2.7 percent compared to the same period in 2019.
Business Updates
Page 1 of this Earnings Release and Supplemental Financial Information provides an operations update.
Balance Sheet Activity
During the quarter ended September 30, 2020, we closed on a financing transaction with Fannie Mae generating gross proceeds of $386.9 million. The loan is secured by ten manufactured home ("MH") communities and consists of two tranches with a weighted average interest rate of 2.55% per annum and a weighted average maturity of 13.4 years. The net proceeds from the transaction were primarily used to repay our $200.0 million unsecured term loan scheduled to mature in 2023 and secured loans scheduled to mature in 2021. We incurred early debt retirement costs of $9.7 million related to these financing transactions.
Investment Activity
In October 2020, we completed the acquisition of Marina Dunes RV Park, an 89-site RV community located in Marina, California, and we completed the acquisition of Acorn Campground, a 323-site RV community in Green Creek, New Jersey. The total aggregate purchase price for these properties was $36.0 million, which was funded with available cash.
In October 2020, we also completed the acquisitions of two development properties, The Resort at Tranquility Lake, a planned 500-site RV community located in Cape Coral, Florida and Bayport, a planned 900-site RV community located in Jamaica, Virginia, for a total aggregate purchase price of $16.3 million. These acquisitions were funded with available cash.
As part of our strategy to expand owned communities with additional developed sites, in September and October 2020, we completed the acquisitions of five parcels of land adjacent to four of our properties for a total aggregate purchase price of $6.4 million, which was funded with available cash.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of October 19, 2020, we own or have an interest in 415 quality properties in 33 states and British Columbia consisting of 157,690 sites.
For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.
Conference Call
A live webcast of our conference call discussing these results will take place tomorrow, Tuesday, October 20, 2020, 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.


ii



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. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
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 assumptions and guidance concerning 2021Core MH and Core RV annual rate growth;
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;
our 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.

In addition, these forward-looking statements and our preliminary guidance on Core MH and Core RV annual rate growth are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers, and employees in particular, its impact on the employment rate and the economy, the extent and impact of governmental responses, and the impact of operational changes we have implemented and may implement in response to the pandemic.

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” section in our most recent Annual Report on Form 10-K and 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.
iii
















Supplemental Financial Information



Operations Update

All properties continue to be open subject to state and local guidelines.
Some of the amenities at certain properties remain closed at this time due to state and local guidelines.
All RV properties continue to be open to transient customers.

Hurricanes Hanna and Isaias made landfall during the third quarter of 2020 and impacted some of our communities in Texas, North Carolina, Delaware, New Jersey and Pennsylvania. The affected properties resumed operations shortly after the storms passed. Our current aggregate property damage estimate is approximately $9.0 million. During the quarter ended September 30, 2020, we recorded expenses of $2.8 million with offsetting insurance recovery revenue of $2.3 million.


Preliminary 2021 rent rate growth assumptions
By October month-end we will have sent 2021 rent increase notices to 48% of our MH residents. The average rent increase of these notices support our preliminary expectations for 2021 Core MH rate growth of 4.0%.(1)
We have set RV annual rates for the 2021 season for 90% of our annual sites. These rates support our preliminary expectations for 2021 Core RV annual rate growth of 4.0%.(1)





















______________________
1.Actual results may differ. See Forward Looking Statements for risks that may impact our actual results.

3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Investor Information


Equity Research Coverage (1)
Bank of America SecuritiesBMO Capital MarketsCiti Research
Jeffrey Spector/ Joshua DennerleinJohn KimMichael Bilerman/ Nick Joseph
Evercore ISIGreen Street AdvisorsRobert W. Baird & Company
Steve Sakwa/ Samir KhanalJohn PawlowskiPeter Hermann
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.

3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Financial Highlights

(In millions, except Common Stock and OP Units outstanding and per share data (adjusted for stock split), unaudited)
As of and for the Three Months Ended
Sept 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sept 30, 2019
Operating Information
Total revenues$285.0 $254.1 $280.5 $258.6 $271.2 
Net income$53.5 $48.9 $70.7 $58.1 $68.2 
Net income available for Common Stockholders$50.6 $46.2 $66.9 $55.0 $64.5 
Adjusted EBITDAre (1)
$129.7 $116.2 $138.2 $124.5 $127.0 
FFO available for Common Stock and OP Unit holders (1)(2)
$95.8 $89.5 $112.3 $99.5 $108.6 
Normalized FFO available for Common Stock and OP Unit holders (1)(2)
$105.5 $90.9 $113.3 $99.5 $102.7 
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2)
$90.0 $75.6 $101.8 $84.6 $88.4 
Common Stock and OP Units Outstanding (In thousands) and Per Share Data
Common Stock and OP Units, end of the period192,704 192,636 192,627 192,581 192,574 
Weighted average Common Stock and OP Units outstanding - Fully Diluted192,537 192,542 192,564 192,458 192,400 
Net income per Common Share - Fully Diluted (3)
$0.28 $0.25 $0.37 $0.30 $0.35 
FFO per Common Share and OP Unit - Fully Diluted$0.50 $0.47 $0.58 $0.52 $0.56 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.55 $0.47 $0.59 $0.52 $0.53 
Dividends per Common Share$0.3425 $0.3425 $0.3425 $0.3063 $0.3063 
Balance Sheet
Total assets$4,260 $4,268 $4,212 $4,151 $4,137 
Total liabilities$2,961 $2,961 $2,892 $2,829 $2,818 
Market Capitalization
Total debt (4)
$2,529 $2,522 $2,486 $2,432 $2,406 
Total market capitalization (5)
$14,342 $14,558 $13,558 $15,988 $15,270 
Ratios
Total debt / total market capitalization17.6 %17.3 %18.3 %15.2 %15.8 %
Total debt / Adjusted EBITDAre (6)
5.0 5.0 4.9 4.8 4.9 
Interest coverage (7)
4.9 4.9 4.9 4.9 4.8 
Fixed charges(8)
4.9 4.9 4.9 4.8 4.7 




______________________
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 $28.3 million as of September 30, 2020.
5.See page 15 for the calculation of market capitalization as of September 30, 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.

3Q 2020 Supplemental Financial Information
3
Equity LifeStyle Properties, Inc.



Consolidated Balance Sheets

(In thousands, except share and per share data)
September 30, 2020December 31, 2019
(unaudited)
Assets
Investment in real estate:
Land$1,531,313 $1,525,407 
Land improvements3,434,393 3,336,070 
Buildings and other depreciable property905,679 881,572 
5,871,385 5,743,049 
Accumulated depreciation(1,886,768)(1,776,224)
Net investment in real estate3,984,617 3,966,825 
Cash and restricted cash114,218 28,860 
Notes receivable, net36,230 37,558 
Investment in unconsolidated joint ventures19,933 20,074 
Deferred commission expense42,220 41,149 
Other assets, net63,195 56,809 
Total Assets$4,260,413 $4,151,275 
Liabilities and Equity
Liabilities:
Mortgage notes payable, net$2,450,783 $2,049,509 
Term loan, net— 198,949 
Unsecured line of credit50,000 160,000 
Accounts payable and other liabilities148,034 124,665 
Deferred revenue – upfront payments from membership upgrade sales136,194 126,814 
Deferred revenue – annual membership subscriptions12,035 10,599 
Accrued interest payable8,055 8,639 
Rents and other customer payments received in advance and security deposits90,219 91,234 
Distributions payable66,001 58,978 
Total Liabilities2,961,321 2,829,387 
Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2020 and December 31, 2019; none issued and outstanding.
— — 
Common stock, $0.01 par value, 600,000,000 and 400,000,000 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 182,222,007 and 182,089,595 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively.
1,812 1,812 
Paid-in capital1,408,253 1,402,696 
Distributions in excess of accumulated earnings(181,754)(154,318)
Accumulated other comprehensive income (loss)— (380)
Total Stockholders’ Equity1,228,311 1,249,810 
Non-controlling interests – Common OP Units70,781 72,078 
Total Equity1,299,092 1,321,888 
Total Liabilities and Equity$4,260,413 $4,151,275 


3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Consolidated Income Statements

(In thousands, unaudited)
Quarters Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenues:
Rental income$238,869 $225,116 $696,178 $660,689 
Annual membership subscriptions13,442 13,150 39,476 38,052 
Membership upgrade sales current period, gross6,631 5,730 16,522 14,609 
Membership upgrade sales upfront payments, deferred, net(4,171)(3,530)(9,379)(8,213)
Other income12,268 11,263 33,007 31,898 
Gross revenues from home sales13,070 8,438 33,245 22,738 
Brokered resale and ancillary services revenues, net1,648 2,133 2,011 4,564 
Interest income1,801 1,831 5,399 5,385 
Income from other investments, net1,428 7,029 3,093 8,894 
Total revenues284,986 271,160 819,552 778,616 
Expenses:
Property operating and maintenance99,566 90,765 268,465 253,581 
Real estate taxes15,981 15,166 49,490 45,596 
Sales and marketing, gross5,054 4,063 13,308 11,686 
Membership sales commissions, deferred, net(630)(313)(1,327)(893)
Property management14,527 14,605 44,344 42,675 
Depreciation and amortization38,581 37,032 115,937 112,785 
Cost of home sales12,866 8,434 33,627 23,230 
Home selling expenses1,241 1,033 3,535 3,218 
General and administrative9,692 8,710 31,156 27,844 
Other expenses658 1,460 1,885 2,427 
Early debt retirement9,732 — 10,786 1,491 
Interest and related amortization25,218 25,547 77,540 77,964 
Total expenses232,486 206,502 648,746 601,604 
Gain on sale of real estate, net— — — 52,507 
Income before equity in income of unconsolidated joint ventures52,500 64,658 170,806 229,519 
Equity in income of unconsolidated joint ventures968 3,518 2,239 8,277 
Consolidated net income53,468 68,176 173,045 237,796 
Income allocated to non-controlling interests – Common OP Units(2,908)(3,715)(9,415)(13,617)
Redeemable perpetual preferred stock dividends— — (8)(8)
Net income available for Common Stockholders$50,560 $64,461 $163,622 $224,171 




3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



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 8 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 17 - 19.







3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Selected Non-GAAP Financial Measures

(In millions, except per share data, unaudited)
Quarter Ended
September 30, 2020
Income from property operations, excluding deferrals and property management - 2020 Core (1)
$146.5 
Income from property operations, excluding deferrals and property management - Non-Core (1)
4.1 
Property management and general and administrative(24.2)
Other income and expenses4.3 
Interest and related amortization(25.2)
Normalized FFO available for Common Stock and OP Unit holders (2)
105.5 
Early debt retirement(9.7)
FFO available for Common Stock and OP Unit holders (2)
$95.8 
FFO per Common Share and OP Unit - Fully Diluted$0.50
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.55
Normalized FFO available for Common Stock and OP Unit holders (2)
$105.5 
Non-revenue producing improvements to real estate (15.5)
FAD for Common Stock and OP Unit holders (2)
$90.0 
Weighted average Common Stock and OP Units - Fully Diluted192.5 
























______________________
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.

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Equity LifeStyle Properties, Inc.



Reconciliation of Net Income to Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)
Quarters Ended September 30,Nine Months Ended September 30,
2020201920202019
Net income available for Common Stockholders$50,560 $64,461 $163,622 $224,171 
Income allocated to non-controlling interests – Common OP Units2,908 3,715 9,415 13,617 
Membership upgrade sales upfront payments, deferred, net4,171 3,530 9,379 8,213 
Membership sales commissions, deferred, net(630)(313)(1,327)(893)
Depreciation and amortization38,581 37,032 115,937 112,785 
Depreciation on unconsolidated joint ventures183 174 544 1,047 
Gain on sale of real estate, net— — — (52,507)
FFO available for Common Stock and OP Unit holders95,773 108,599 297,570 306,433 
Early debt retirement9,732 — 10,786 2,085 
Insurance proceeds due to catastrophic weather event (1)
— (5,856)— (6,205)
COVID-19 expenses (2)
— — 1,446 — 
Normalized FFO available for Common Stock and OP Unit holders105,505 102,743 309,802 302,313 
Non-revenue producing improvements to real estate(15,481)(14,357)(42,277)(37,270)
FAD for Common Stock and OP Unit holders$90,024 $88,386 $267,525 $265,043 
Net income available per Common Share - Basic$0.28 $0.35 $0.90 $1.24 
Net income available per Common Share - Fully Diluted (3)
$0.28 $0.35 $0.90 $1.24 
FFO per Common Share and OP Unit - Basic$0.50 $0.57 $1.55 $1.60 
FFO per Common Share and OP Unit - Fully Diluted$0.50 $0.56 $1.55 $1.60 
Normalized FFO per Common Share and OP Unit - Basic$0.55 $0.53 $1.61 $1.58 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.55 $0.53 $1.61 $1.58 
Average Common Stock - Basic181,869 181,649 181,811 180,515 
Average Common Stock and OP Units - Basic192,351 192,145 192,296 191,599 
Average Common Stock and OP Units - Fully Diluted192,537 192,400 192,548 191,840 











______________________
1.Represents insurance recovery revenue from reimbursement for capital expenditures related to Hurricane Irma.
2.Includes expenses incurred related to the development and implementation of Center of Disease Control ("CDC") and public health guidelines for social distancing and enhanced cleaning, property employee appreciation bonuses and emergency time-off pay. These COVID-19 expenses are considered incremental to our normal operations and are nonrecurring. As such, they have been excluded from the calculation of Normalized FFO.
3.Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest - Common OP Units.

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Equity LifeStyle Properties, Inc.



Consolidated Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)
Quarters Ended September 30,Nine Months Ended September 30,
2020201920202019
MH base rental income (2) (3)
$143.5 $137.6 $427.5 $409.1 
Rental home income (3)
4.2 3.8 12.2 11.0 
RV and marina base rental income (3) (4)
79.0 71.7 220.1 204.8 
Annual membership subscriptions13.4 13.1 39.5 38.0 
Membership upgrade sales current period, gross6.6 5.7 16.5 14.6 
Utility and other income (3) (5)
26.2 24.3 73.7 70.3 
Property operating revenues272.9 256.2 789.5 747.8 
Property operating, maintenance and real estate taxes (3) (6)
115.5 105.3 318.0 297.7 
Rental home operating and maintenance1.7 1.6 4.3 4.1 
Sales and marketing, gross5.1 4.0 13.3 11.6 
Property operating expenses122.3 110.9 335.6 313.4 
Income from property operations, excluding deferrals and property management (1) (6)
$150.6 $145.3 $453.9 $434.4 
Manufactured home site figures and occupancy averages:
Total sites72,372 72,008 72,328 72,121 
Occupied sites68,712 68,352 68,607 68,419 
Occupancy %94.9 %94.9 %94.9 %94.9 %
Monthly base rent per site$696 $671 $692 $664 
RV and marina base rental income:
Annual$48.2 $42.6 $142.6 $122.4 
Seasonal5.2 5.4 32.9 32.2 
Transient25.6 23.7 44.6 50.2 
Total RV and marina base rental income$79.0 $71.7 $220.1 $204.8 




______________________
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.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 Income Statements on page 5. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.
4.See RV and marina base rental income detail included below within this table.
5.Utility and other income includes $2.3 million of insurance recovery revenue for Hurricane Hanna and Hurricane Isaias for the quarter and nine months ended September 30, 2020.
6.Includes debris removal and cleanup costs of approximately $2.8 million related to Hurricane Hanna and Hurricane Isaias for the quarter and nine months ended September 30, 2020. Results for the quarter include an increase compared to prior year in utility expense, including distribution system infrastructure repairs, of approximately $2.9 million. Results for the nine months ended September 30, 2020 include $1.0 million related to the development and implementation of CDC and public health guidelines for social distancing and enhanced cleaning, property employee appreciation bonuses and emergency time-off pay for the nine months ended September 30, 2020. These COVID-19 expenses are considered incremental to our normal operations and are nonrecurring.

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Equity LifeStyle Properties, Inc.



Core Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)
Quarters Ended September 30,Nine Months Ended September 30,
20202019
Change (2)
20202019
Change (2)
MH base rental income (3)
$143.5 $137.6 4.3 %$427.4 $408.7 4.6 %
Rental home income4.2 3.8 9.0 %12.2 10.9 11.7 %
RV base rental income (4)
72.3 68.8 5.2 %202.3 200.5 0.9 %
Annual membership subscriptions13.4 13.2 2.0 %39.4 38.1 3.7 %
Membership upgrade sales current period, gross6.6 5.7 15.7 %16.5 14.6 13.1 %
Utility and other income (5)
25.5 23.9 6.5 %72.2 69.8 3.3 %
Property operating revenues265.5 253.0 4.9 %770.0 742.6 3.7 %
Property operating, maintenance and real estate taxes (6) (7)
112.2 103.4 8.5 %308.5 294.7 4.7 %
Rental home operating and maintenance1.7 1.6 6.7 %4.3 4.1 5.3 %
Sales and marketing, gross5.1 4.1 24.5 %13.3 11.7 13.9 %
Property operating expenses 119.0 109.1 9.1 %326.1 310.5 5.0 %
Income from property operations, excluding deferrals and property management (1) (7)
$146.5 $143.9 1.8 %$443.9 $432.1 2.7 %
Occupied sites (8)
68,772 68,442 
Core manufactured home site figures and occupancy averages:
Total sites72,097 71,875 72,054 71,816 
Occupied sites68,690 68,352 68,592 68,266 
Occupancy %95.3 %95.1 %95.2 %95.1 %
Monthly base rent per site$696 $671 $692 $665 
Core RV base rental income:
Annual$42.8 $40.8 5.2 %$126.7 $119.8 5.8 %
Seasonal5.1 5.3 (4.5)%32.8 32.1 2.3 %
Transient24.4 22.7 7.3 %42.8 48.6 (12.2)%
Total RV base rental income$72.3 $68.8 5.2 %$202.3 $200.5 0.9 %





______________________
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.Utility and other income includes $2.3 million of insurance recovery revenue for Hurricane Hanna and Hurricane Isaias for the quarter and nine months ended September 30, 2020.
6.Includes bad debt expense for the periods presented.
7.Includes debris removal and cleanup costs of $2.8 million related to Hurricane Hanna and Hurricane Isaias for the quarter and nine months ended September 30, 2020. Results for the quarter include an increase compared to prior year in utility expense, including distribution system infrastructure repairs, of approximately $2.9 million. Results for the nine months ended September 30, 2020 includes $1.0 million related to expenses incurred related to the development and implementation of CDC and public health guidelines for social distancing and enhanced cleaning, property employee appreciation bonuses and emergency time-off pay for the nine months ended September 30, 2020. These COVID-19 expenses are considered incremental to our normal operations and are nonrecurring.
8.Occupied sites are presented as of the end of the period. Occupied sites have increased by 196 from 68,576 at December 31, 2019.

3Q 2020 Supplemental Financial Information
10
Equity LifeStyle Properties, Inc.



Non-Core Income from Property Operations (1)

(In millions, unaudited)
Quarter EndedNine Months Ended
September 30, 2020September 30, 2020
MH base rental income$— $0.1 
Rental home income— — 
RV and marina base rental income6.7 17.9 
Utility and other income0.7 1.6 
Property operating revenues7.4 19.6 
Property operating expenses (2)
3.3 9.6 
Income from property operations, excluding deferrals and property management (1)
$4.1 $10.0 




































______________________
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.

3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Income from Rental Home Operations

(In millions, except occupied rentals, unaudited)
Quarters Ended September 30,Nine Months Ended September 30,
2020201920202019
Manufactured homes:
Rental operations revenues (1)
$12.0 $11.7 $35.7 $34.3 
Rental operations expense1.7 1.6 4.3 4.1 
Income from rental operations10.3 10.1 31.4 30.2 
Depreciation on rental homes (2)
2.7 2.8 8.2 7.8 
Income from rental operations, net of depreciation$7.6 $7.3 $23.2 $22.4 
Occupied rentals: (3)
New3,314 3,079 
Used588 914 
Total occupied rental sites3,902 3,993 
As of September 30, 2020As of September 30, 2019
Cost basis in rental homes: (4)
GrossNet of DepreciationGrossNet of Depreciation
New$232.0 $193.1 $220.7 $195.6 
Used16.7 7.2 23.5 10.4 
Total rental homes$248.7 $200.3 $244.2 $206.0 



















______________________
1.For the quarters ended September 30, 2020 and 2019, approximately $7.8 million and $7.9 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. For the nine months ended September 30, 2020 and 2019, approximately $23.5 million and $23.4 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 and nine months ended September 30, 2020 and 2019 in the Core Income from Property Operations on page 10.
2.Depreciation on rental homes in our Core portfolio is presented 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 September 30, 2020 and 2019 were 286 and 294 homes rented through our ECHO joint venture, respectively. As of September 30, 2020 and 2019, the rental home investment associated with our ECHO joint venture totaled approximately $11.3 million and $10.7 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. As of September 30, 2020 and 2019, our investment in the ECHO joint venture was approximately $17.2 million and $16.7 million, respectively.

3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Total Sites and Home Sales

(In thousands, except sites and home sale volumes, unaudited)
Summary of Total Sites as of September 30, 2020
Sites (1)
MH sites72,500 
RV sites:
Annual29,900 
Seasonal10,200 
Transient14,100 
Marina slips2,300 
Membership (2)
24,600 
Joint Ventures (3)
3,600 
Total (4)
157,300 


Home Sales - Select Data
Quarters Ended September 30,Nine Months Ended September 30,
2020201920202019
Total New Home Sales Volume (5)
183 128 471 336 
New Home Sales Volume - ECHO joint venture15 19 38 50 
New Home Sales Gross Revenues (5)
$11,929 $6,864 $28,863 $17,492 
Total Used Home Sales Volume 120 198 450 627 
Used Home Sales Gross Revenues$1,141 $1,574 $4,382 $5,246 
Brokered Home Resales Volume167 270 454 675 
Brokered Home Resale Revenues, net$245 $420 $684 $1,077 













______________________
1.MH sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina sites are leased to customers generally for one to six months. Transient RV and marina sites are leased to customers on a short-term basis.
2.Sites primarily utilized by approximately 117,900 members. Includes approximately 6,000 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.

3Q 2020 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.



Memberships - Select Data

(Unaudited)
2016201720182019
2020 Q3 YTD (1)
Member Count (2)
104,728 106,456 111,094 115,680 117,915 
Thousand Trails Camping Pass (TTC) Origination29,576 31,618 37,528 41,484 34,433 
TTC Sales12,856 14,128 17,194 19,267 16,390 
RV Dealer TTC Activations16,720 17,490 20,334 22,217 18,043 
Number of annuals (3)
5,756 5,843 5,888 5,938 6,007 
Number of upgrade sales (4)
2,477 2,514 2,500 2,919 2,595 
(In thousands, unaudited)
Annual membership subscriptions $45,036 $45,798 $47,778 $51,015 $39,476 
RV base rental income from annuals$15,413 $16,841 $18,363 $19,634 $15,334 
RV base rental income from seasonals/transients$17,344 $18,231 $19,840 $20,181 $14,268 
Membership upgrade sales current period, gross$12,312 $14,130 $15,191 $19,111 $16,522 
Utility and other income$2,442 $2,254 $2,410 $2,422 $1,773 



























______________________
1.Activity through September 30, 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.

3Q 2020 Supplemental Financial Information
14
Equity LifeStyle Properties, Inc.



Market Capitalization

(In millions, except share and OP Unit data, unaudited)
Capital Structure as of September 30, 2020
Total Common Stock/Units% of Total Common Stock/UnitsTotal% of Total% of Total Market Capitalization
Secured Debt$2,479 98.0 %
Unsecured Debt50 2.0 %
Total Debt (1)
$2,529 100.0 %17.6 %
Common Stock182,222,007 94.6 %
OP Units10,481,994 5.4 %
Total Common Stock and OP Units192,704,001 100.0 %
Common Stock price at September 30, 2020$61.30 
Fair Value of Common Stock and OP Units$11,813 100.0 %
Total Equity$11,813 100.0 %82.4 %
Total Market Capitalization$14,342 100.0 %































______________________
1.    Excludes deferred financing costs of approximately $28.3 million.

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Equity LifeStyle Properties, Inc.



Debt Maturity Schedule

Debt Maturity Schedule as of September 30, 2020
(In thousands, unaudited)
 YearSecured Debt Weighted Average Interest RateUnsecured DebtWeighted Average Interest RateTotal Debt% of Total DebtWeighted Average Interest Rate
2020$— — %$— — %$— — %— %
2021— — %— — %— — %— %
2022142,646 4.62 %— — %142,646 5.76 %4.62 %
2023100,400 5.01 %— — %100,400 4.05 %5.01 %
202410,488 5.49 %— — %10,488 0.42 %5.49 %
202599,045 3.45 %— — %99,045 4.00 %3.45 %
2026— — %— — %— — %— %
2027— — %— — %— — %— %
2028218,247 4.19 %— — %218,247 8.81 %4.19 %
2029— — %— — %— — %— %
Thereafter1,907,485 3.54 %— — %1,907,485 76.97 %3.54 %
Total$2,478,311 3.72 %$  %$2,478,311 100.0 %3.72 %
Unsecured Line of Credit (1)