View:
els-20220121
EQUITY LIFESTYLE PROPERTIES INC0000895417false00008954172022-01-212022-01-24

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): January 21, 2022


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 January 24, 2022, Equity LifeStyle Properties, Inc. (referred to herein as “we,” “us,” and “our”) issued a news release announcing our results of operations for the three months and year ended December 31, 2021, and our first quarter and full year 2022 earnings guidance assumptions.

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 January 24, 2022.

Item 8.01 Other Events

On January 21, 2022, our Board of Directors approved setting the annual dividend rate for 2022 at $1.64 per share of common stock, an increase of $0.19 over the current $1.45 per share of common stock for 2021. Our Board of Directors, in its sole discretion, will determine the amount of each quarterly dividend in advance of payment.

On January 21, 2022, we issued a news release announcing the tax treatment of our 2021 common stock distributions, which was posted on our website, www.equitylifestyleproperties.com.

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 2022 growth rates and Net Income and Normalized FFO per share data;
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, including an adequate supply of homes at reasonable costs, 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 inflation and 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 by or 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.




    Our guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2022 guidance include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) our ability to integrate and operate recent acquisitions in accordance with our estimates; (viii) completion of pending transactions in their entirety and on assumed schedule; (ix) ongoing legal matters and related fees; and (x) costs to restore property operations and potential revenue losses following storms or other unplanned events. In addition, these forward-looking statements, including our 2022 guidance 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.

    We are a fully integrated owner and operator of lifestyle-oriented properties and own or have an interest in 444 quality properties in 35 states and British Columbia consisting of 169,296 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 January 24, 2022, “ELS Reports Fourth 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.
Date: January 25, 2022By: /s/ Paul Seavey
Paul Seavey
Executive Vice President and Chief Financial Officer





Document

N E W S R E L E A S E
https://cdn.kscope.io/471a4492f82f9833e611047fd14fc5b0-elslogoa34.jpg
CONTACT: Paul SeaveyFOR IMMEDIATE RELEASE
(800) 247-5279January 24, 2022
                                    
ELS REPORTS FOURTH QUARTER RESULTS
Continued Strong Performance;
Provides 2022 Guidance and Increases Annual Dividend

CHICAGO, IL – January 24, 2022 Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and year ended December 31, 2021. All per share results are reported on a fully diluted basis unless otherwise noted.
Financial Results for the Quarter and Year Ended December 31, 2021
For the quarter ended December 31, 2021, total revenues increased $53.4 million, or 19.6 percent, to $325.3 million compared to $271.9 million for the same period in 2020. For the quarter ended December 31, 2021, net income available for Common Stockholders increased $0.9 million, or $0.01 per Common Share, to $65.5 million, or $0.36 per Common Share, compared to $64.6 million, or $0.35 per Common Share, for the same period in 2020.
For the year ended December 31, 2021, total revenues increased $180.3 million, or 16.5 percent, to $1,271.7 million compared to $1,091.4 million for the same period in 2020. For the year ended December 31, 2021, net income available for Common Stockholders increased $34.2 million, or $0.18 per Common Share, to $262.5 million, or $1.43 per Common Share, compared to $228.3 million, or $1.25 per Common Share, for the same period in 2020.
Non-GAAP Financial Measures and Portfolio Performance
For the quarter ended December 31, 2021, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders increased $14.1 million, or $0.07 per Common Share, to $123.0 million, or $0.64 per Common Share, compared to $108.9 million, or $0.57 per Common Share, for the same period in 2020. For the year ended December 31, 2021, FFO available for Common Stock and OP Unit holders increased $79.2 million, or $0.41 per Common Share, to $485.6 million, or $2.52 per Common Share, compared to $406.4 million, or $2.11 per Common Share, for the same period in 2020.
For the quarter ended December 31, 2021, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $14.7 million, or $0.07 per Common Share, to $123.6 million, or $0.64 per Common Share, compared to $108.9 million, or $0.57 per Common Share, for the same period in 2020. For the year ended December 31, 2021, Normalized FFO available for Common Stock and OP Unit holders increased $70.3 million, or $0.36 per Common Share, to $489.0 million, or $2.53 per Common Share, compared to $418.7 million, or $2.17 per Common Share, for the same period in 2020.
For the quarter ended December 31, 2021, property operating revenues, excluding deferrals, increased $34.7 million to $296.6 million, compared to $261.9 million for the same period in 2020. For the year ended December 31, 2021, property operating revenues, excluding deferrals, increased $134.2 million to $1,185.6 million, compared to $1,051.4 million for the same period in 2020. For the quarter ended December 31, 2021, income from property operations, excluding deferrals and property management, increased $19.5 million to $172.4 million, compared to $152.9 million for the same period in 2020. For the year ended December 31, 2021, income from property operations, excluding deferrals and property management, increased $75.2 million to $682.0 million, compared to $606.8 million for the same period in 2020.
i



For the quarter ended December 31, 2021, Core property operating revenues, excluding deferrals, increased approximately 7.8 percent and Core income from property operations, excluding deferrals and property management, increased approximately 8.2 percent compared to the same period in 2020. For the year ended December 31, 2021, Core property operating revenues, excluding deferrals, increased approximately 8.3 percent and Core income from property operations, excluding deferrals and property management, increased approximately 8.8 percent compared to the same period in 2020.
Business Updates
Pages 1 and 2 of this Earnings Release and Supplemental Financial Information provide an update on operations and 2022 guidance.
Investment Activity
In November and December 2021, we completed the acquisitions of Hope Valley, a 164-site RV community located in Turner, Oregon, and Lake Conroe, a 261-site RV community in Montgomery, Texas, for an aggregate purchase price of $31.9 million.
In November 2021, we acquired an 80% equity interest in RVC Outdoor Destinations, an entity owning six operating RV communities containing 988 sites with a total value of $105.0 million.
As part of our strategy to expand owned communities with additional developed sites, during the quarter ended December 31, 2021, we completed the acquisitions of two parcels of land adjacent to two of our properties for an aggregate purchase price of $27.2 million.
In December 2021, we completed the acquisition of MHVillage/Datacomp for a purchase price of $43 million. MHVillage is the premier online marketplace dedicated to manufactured home buying and selling. Datacomp provides independent, market-based valuations for manufactured homes in land lease communities.
These acquisitions were funded with available cash, proceeds from our line of credit, and net proceeds from sales of common stock under our at-the-market (“ATM”) equity offering program as discussed further below.
2022 Dividends
Our Board of Directors has approved setting the annual dividend rate for 2022 at $1.64 per share of common stock, an increase of 13.1%, or $0.19, over the current $1.45 per share of common stock for 2021. Our Board of Directors, in its sole discretion, will determine the amount of each quarterly dividend in advance of payment.
Balance Sheet Activity
During the quarter ended December 31, 2021 and through January 4, 2022, we sold approximately 2.0 million shares of our common stock under our ATM equity offering program with a weighted average price of $84.80 per share for net proceeds of $166.4 million.

In January 2022, we entered into a $200.0 million unsecured term loan agreement. The term of the loan is five years and bears interest at a rate of Secured Overnight Financing Rate ("SOFR") plus approximately 1.30% to 1.80%, depending on leverage levels.

Proceeds generated from the ATM equity offering and the unsecured term loan were used to fund fourth quarter 2021 acquisition activity and repay a portion of the outstanding balance on the line of credit. As of January 24, 2022, the line of credit has an outstanding balance of $69.0 million.




ii





About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of January 24, 2022, we own or have an interest in 444 quality properties in 35 states and British Columbia consisting of 169,296 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, January 25, 2022, at 10:00 a.m. Central Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.
Forward-Looking Statements
In addition to historical information, this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as "anticipate," "expect," "believe," "project," "intend," "may be" and "will be" and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. 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 2022 growth rates and Net Income and Normalized FFO per share data;
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, including an adequate supply of homes at reasonable costs, 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 inflation and interest rates;
the effect from any breach of our, or any of our vendors', data management systems;
the dilutive effects of issuing additional securities;
iii



the outcome of pending or future lawsuits or actions brought by or 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.

Our guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2022 guidance include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) our ability to integrate and operate recent acquisitions in accordance with our estimates; (viii) completion of pending transactions in their entirety and on assumed schedule; (ix) ongoing legal matters and related fees; and (x) costs to restore property operations and potential revenue losses following storms or other unplanned events. In addition, these forward-looking statements, including our 2022 guidance 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.
iv
















Supplemental Financial Information



Operations Update

We have continued our strong performance in 2021, as marked by these key operational and financial accomplishments:
Normalized FFO per common share on a fully diluted basis was $2.53 for the year ended December 31, 2021, 17% higher than the year ended December 31, 2020.
Core Portfolio generated growth of 9% in income from property operations, excluding deferrals and property management, for the year ended December 31, 2021 compared to the year ended December 31, 2020.
MH occupancy within our Core Portfolio increased by 323 sites during the year ended December 31, 2021 from the year ended December 31, 2020.
Manufactured homeowners within our Core Portfolio increased by 785 to 65,730 as of December 31, 2021 compared to 64,945 as of December 31, 2020.
Added 1,037 expansion Sites to our Core Portfolio during the year ended December 31, 2021.
RV Annual occupancy within our Core RV and Thousand Trails portfolios increased by 1,180 sites during the year ended December 31, 2021 from the year ended December 31, 2020.
RV and MH rental income within our Core Portfolio increased by 12.9% and 4.7%, respectively, compared to December 31, 2020.
Membership sales and expenses, consisting of membership upgrade sales and expenses, as well as commissions on camping and Trails Collection passes, contributed $12.5 million for the year ended December 31, 2021, an increase of $8.1 million, or 184%, compared to the year ended December 31, 2020.
New home sales of 1,163 for the year ended December 31, 2021, which was the highest in company history.
Acquired eleven marinas, six RV communities, an 80% equity interest in a joint venture with six RV communities, MHVillage/Datacomp and three land parcels adjacent to our properties with an aggregate value of approximately $800 million during the year ended December 31, 2021.
Originated secured debt with gross proceeds of $270.0 million with a maturity of 10 years and an interest rate of 2.4% during the year ended December 31, 2021. We used these proceeds to repay $67.0 million of debt due to mature in 2022 at a weighted average rate of 5.1%. The remainder of the proceeds were used to repay a portion of the outstanding balance on the line of credit.
Closed on an amended revolving line of credit with borrowing capacity of $500.0 million and a $300.0 million term loan during the year ended December 31, 2021.
Sold approximately 1.7 million shares of our common stock under our ATM equity offering program with a weighted average price of $84.48 per share for net proceeds of $138.4 million during the year ended December 31, 2021.























4Q 2021 Supplemental Financial Information
1
Equity LifeStyle Properties, Inc.





2022 Guidance (1)

($ in millions except per share)
First QuarterFull Year
Net Income/share$0.38 to $0.44$1.56 to $1.66
FFO and Normalized FFO/share$0.66 to $0.72$2.64 to $2.74
Core Portfolio:
MH rate growth4.4% to 4.6%4.6% to 4.8%
RV Annual rate growth4.6% to 4.8%5.0% to 5.2%
Property operating revenue growth rate7.3% to 7.9%4.5% to 5.5%
Property operating expense growth rate7.6% to 8.2%3.2% to 4.2%
Income from property operations, excluding deferrals and property management growth rate7.1% to 7.7%5.4% to 6.4%











































_______________________
(1)    First quarter and full year 2022 guidance ranges represent a range of possible outcomes and the midpoint reflects management's estimate of the most likely outcome. Actual growth rates and per share amounts could vary materially from growth rates and per share amounts presented above if any of our assumptions, including occupancy and rate changes, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect. See Forward-Looking Statements in this release for additional factors impacting our 2022 guidance assumptions.


4Q 2021 Supplemental Financial Information
2
Equity LifeStyle Properties, Inc.



Investor Information


Equity Research Coverage (1)
Bank of America SecuritiesBarclaysBerenberg Bank
Jeffrey Spector/ Joshua DennerleinAnthony PowellKeegan Carl
BMO Capital MarketsCiti ResearchColliers Securities
John KimMichael Bilerman/ Nick JosephDavid Toti
Evercore ISIGreen Street AdvisorsRBC Capital Markets
Steve Sakwa/ Samir KhanalJohn PawlowskiBrad Heffern
Robert W. Baird & CompanyUBS
Wes GolladayMichael Goldsmith































______________________
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.

4Q 2021 Supplemental Financial Information
3
Equity LifeStyle Properties, Inc.



Financial Highlights

(In millions, except Common Shares and OP Units outstanding and per share data, unaudited)
As of and for the Three Months Ended
Dec 31, 2021Sept 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020
Operating Information
Total revenues$325.3 $332.9 $317.4 $296.0 $271.9 
Net income$68.8 $74.1 $64.1 $69.0 $68.4 
Net income available for Common Stockholders$65.5 $70.6 $61.1 $65.2 $64.6 
Adjusted EBITDAre (1)
$150.7 $150.8 $144.6 $147.9 $133.1 
FFO available for Common Stock and OP Unit holders (1)(2)
$123.0 $124.5 $117.6 $120.6 $108.9 
Normalized FFO available for Common Stock and OP Unit holders (1)(2)
$123.6 $124.5 $118.3 $122.6 $108.9 
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2)
$102.3 $106.1 $99.0 $111.0 $91.1 
Common Shares and OP Units Outstanding (In thousands) and Per Share Data
Common Shares and OP Units, end of the period194,946 192,852 192,847 192,779 192,710 
Weighted average Common Shares and OP Units outstanding - Fully Diluted193,412 192,736 192,701 192,685 192,578 
Net income per Common Share - Fully Diluted (3)
$0.36 $0.38 $0.33 $0.36 $0.35 
FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.65 $0.61 $0.63 $0.57 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.65 $0.61 $0.64 $0.57 
Dividends per Common Share$0.3625 $0.3625 $0.3625 $0.3625 $0.3425 
Balance Sheet
Total assets$5,308 $4,982 $4,824 $4,786 $4,419 
Total liabilities$3,822 $3,673 $3,522 $3,481 $3,114 
Market Capitalization
Total debt (4)
$3,303 $3,154 $3,010 $3,012 $2,695 
Total market capitalization (5)
$20,392 $18,216 $17,340 $15,280 $14,905 
Ratios
Total debt / total market capitalization16.2 %17.3 %17.4 %19.7 %18.1 %
Total debt / Adjusted EBITDAre (6)
5.6 5.5 5.4 5.7 5.2 
Interest coverage (7)
5.5 5.5 5.4 5.2 5.1 
Fixed charges(8)
5.5 5.4 5.3 5.1 5.0 




______________________
1.See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre.
2.See page 9 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 $28.9 million as of December 31, 2021.
5.See page 16 for the calculation of market capitalization as of December 31, 2021.
6.Calculated using trailing twelve months Adjusted EBITDAre.
7.Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period.
8.See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for a definition of fixed charges. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.

4Q 2021 Supplemental Financial Information
4
Equity LifeStyle Properties, Inc.



Consolidated Balance Sheets

(In thousands, except share and per share data)
December 31, 2021December 31, 2020
(unaudited)
Assets
Investment in real estate:
Land$2,019,787 $1,676,636 
Land improvements3,912,062 3,543,479 
Buildings and other depreciable property1,057,215 940,311 
6,989,064 6,160,426 
Accumulated depreciation(2,103,774)(1,924,585)
Net investment in real estate4,885,290 4,235,841 
Cash and restricted cash123,398 24,060 
Notes receivable, net39,955 35,844 
Investment in unconsolidated joint ventures70,312 19,726 
Deferred commission expense47,349 42,472 
Other assets, net141,567 61,026 
Total Assets$5,307,871 $4,418,969 
Liabilities and Equity
Liabilities:
Mortgage notes payable, net$2,627,783 $2,444,930 
Term loan, net297,436 — 
Unsecured line of credit349,000 222,000 
Accounts payable and other liabilities172,285 129,666 
Deferred membership revenue176,439 150,692 
Accrued interest payable9,293 8,336 
Rents and other customer payments received in advance and security deposits118,696 92,587 
Distributions payable70,768 66,003 
Total Liabilities3,821,700 3,114,214 
Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of December 31, 2021 and December 31, 2020; none issued and outstanding.
— — 
Common stock, $0.01 par value, 600,000,000 shares authorized as of December 31, 2021 and December 31, 2020; 185,640,379 and 182,230,631 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.
1,913 1,813 
Paid-in capital1,593,362 1,411,397 
Distributions in excess of accumulated earnings(183,689)(179,523)
Accumulated other comprehensive income (loss)3,524 — 
Total Stockholders’ Equity1,415,110 1,233,687 
Non-controlling interests – Common OP Units71,061 71,068 
Total Equity1,486,171 1,304,755 
Total Liabilities and Equity$5,307,871 $4,418,969 


4Q 2021 Supplemental Financial Information
5
Equity LifeStyle Properties, Inc.



Consolidated Income Statements

(In thousands, unaudited)
Quarters Ended December 31,Years Ended December 31,
2021202020212020
Revenues:
Rental income$258,282 $227,565 $1,032,575 $923,743 
Annual membership subscriptions15,203 13,609 58,251 53,085 
Membership upgrade sales current period, gross6,927 5,217 36,270 21,739 
Membership upgrade sales upfront payments, deferred, net(3,945)(2,683)(25,079)(12,062)
Other income13,539 13,001 50,298 46,008 
Gross revenues from home sales31,534 12,450 98,457 45,695 
Brokered resale and ancillary services revenues, net929 49 9,351 2,060 
Interest income1,702 1,755 7,016 7,154 
Income from other investments, net1,159 933 4,555 4,026 
Total revenues325,330 271,896 1,271,694 1,091,448 
Expenses:
Property operating and maintenance98,283 85,875 398,983 354,340 
Real estate taxes18,517 16,630 72,671 66,120 
Sales and marketing, gross4,756 4,024 23,743 17,332 
Membership sales commissions, deferred, net(670)(333)(5,075)(1,660)
Property management17,024 13,623 65,979 57,967 
Depreciation and amortization50,317 39,194 188,444 155,131 
Cost of home sales29,743 12,602 94,314 46,229 
Home selling expenses1,283 1,037 5,138 4,572 
General and administrative9,576 8,120 40,717 39,276 
Other expenses805 682 3,100 2,567 
Early debt retirement— — 2,784 10,786 
Interest and related amortization27,951 25,231 108,718 102,771 
Total expenses257,585 206,685 999,516 855,431 
Loss on sale of real estate, net— — (59)— 
Income before equity in income of unconsolidated joint ventures67,745 65,211 272,119 236,017 
Equity in income of unconsolidated joint ventures1,095 3,160 3,881 5,399 
Consolidated net income68,840 68,371 276,000 241,416 
Income allocated to non-controlling interests – Common OP Units(3,286)(3,717)(13,522)(13,132)
Redeemable perpetual preferred stock dividends(8)(8)(16)(16)
Net income available for Common Stockholders$65,546 $64,646 $262,462 $228,268 




4Q 2021 Supplemental Financial Information
6
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 9 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 18 - 20.







4Q 2021 Supplemental Financial Information
7
Equity LifeStyle Properties, Inc.



Selected Non-GAAP Financial Measures

(In millions, except per share data, unaudited)
Quarter Ended
December 31, 2021
Income from property operations, excluding deferrals and property management - 2021 Core (1)
$164.5 
Income from property operations, excluding deferrals and property management - Non-Core (1)
7.9 
Property management and general and administrative (excluding transaction costs)(26.0)
Other income and expenses5.2 
Interest and related amortization(28.0)
Normalized FFO and FFO available for Common Stock and OP Unit holders (2)
$123.6 
Transaction costs(0.6)
FFO available for Common Stock and OP Unit holders (2)
$123.0 
FFO per Common Share and OP Unit - Fully Diluted$0.64
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64
Normalized FFO available for Common Stock and OP Unit holders (2)
$123.6 
Non-revenue producing improvements to real estate (21.3)
FAD for Common Stock and OP Unit holders (2)
$102.3 
Weighted average Common Shares and OP Units - Fully Diluted193.4 























______________________
1.See page 11 for details of the Core Income from Property Operations, excluding deferrals and property management. See page 12 for details of the Non-Core Income from Property Operations, excluding deferrals and property management.
2.See page 9 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.

4Q 2021 Supplemental Financial Information
8
Equity LifeStyle Properties, Inc.



Reconciliation of Net Income to Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)
Quarters Ended December 31,Years Ended December 31,
2021202020212020
Net income available for Common Stockholders$65,546 $64,646 $262,462 $228,268 
Income allocated to non-controlling interests – Common OP Units3,286 3,717 13,522 13,132 
Membership upgrade sales upfront payments, deferred, net3,945 2,683 25,079 12,062 
Membership sales commissions, deferred, net(670)(333)(5,075)(1,660)
Depreciation and amortization50,317 39,194 188,444 155,131 
Depreciation on unconsolidated joint ventures536 183 1,083 727 
Gain on unconsolidated joint ventures— (1,229)— (1,229)
Loss on sale of real estate, net— — 59 — 
FFO available for Common Stock and OP Unit holders122,960 108,861 485,574 406,431 
Early debt retirement— — 2,784 10,786 
Transaction costs598 — 598 — 
COVID-19 expenses— — — 1,446 
Normalized FFO available for Common Stock and OP Unit holders123,558 108,861 488,956 418,663 
Non-revenue producing improvements to real estate(21,247)(17,712)(70,510)(59,989)
FAD for Common Stock and OP Unit holders$102,311 $91,149 $418,446 $358,674 
Net income available per Common Share - Basic$0.36 $0.36 $1.43 $1.26 
Net income available per Common Share - Fully Diluted (1)
$0.36 $0.35 $1.43 $1.25 
FFO per Common Share and OP Unit - Basic$0.64 $0.57 $2.52 $2.11 
FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.57 $2.52 $2.11 
Normalized FFO per Common Share and OP Unit - Basic$0.64 $0.57 $2.54 $2.18 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.57 $2.53 $2.17 
Weighted average Common Shares outstanding - Basic183,889 181,878 182,917 181,828 
Weighted average Common Shares and OP Units outstanding - Basic193,183 192,360 192,656 192,312 
Weighted average Common Shares and OP Units outstanding - Fully Diluted193,412 192,578 192,883 192,555 














______________________
1.Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest - Common OP Units.

4Q 2021 Supplemental Financial Information
9
Equity LifeStyle Properties, Inc.



Consolidated Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)
Quarters Ended December 31,Years Ended December 31,
2021202020212020
MH base rental income (2)
$152.8 $145.2 $603.1 $572.7 
Rental home income (2)
4.0 4.2 16.7 16.4 
RV and marina base rental income (2)
89.6 67.7 362.8 287.8 
Annual membership subscriptions15.2 13.6 58.3 53.1 
Membership upgrade sales current period, gross6.9 5.2 36.3 21.7 
Utility and other income (2)
28.1 26.0 108.4 99.7 
Property operating revenues296.6 261.9 1,185.6 1,051.4 
Property operating, maintenance and real estate taxes (2)
119.4 105.0 479.9 427.3 
Sales and marketing, gross4.8 4.0 23.7 17.3 
Property operating expenses124.2 109.0 503.6 444.6 
Income from property operations, excluding deferrals and property management (1)
$172.4 $152.9 $682.0 $606.8 
Manufactured home site figures and occupancy averages:
Total sites73,457 72,535 73,232 72,380 
Occupied sites69,672 68,942 69,463 68,691 
Occupancy %94.8 %95.0 %94.9 %94.9 %
Monthly base rent per site$731 $702 $723 $695 
RV and marina base rental income:
Annual$63.5 $49.6 $237.2 $192.2 
Seasonal11.6 7.0 41.7 39.9 
Transient14.5 11.1 83.9 55.7 
Total RV and marina base rental income$89.6 $67.7 $362.8 $287.8 














______________________
1.Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.
2.MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Income Statements on page 6. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.

4Q 2021 Supplemental Financial Information
10
Equity LifeStyle Properties, Inc.



Core Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)
Quarters Ended December 31,Years Ended December 31,
20212020
Change (2)
20212020
Change (2)
MH base rental income$151.7 $144.8 4.8 %$599.2 $572.2 4.7 %
Rental home income4.0 4.2 (5.8)%16.7 16.4 1.4 %
RV and marina base rental income77.7 67.1 15.9 %324.1 287.2 12.9 %
Annual membership subscriptions15.2 13.6 11.7 %58.2 53.1 9.7 %
Membership upgrade sales current period, gross6.9 5.2 32.8 %36.3 21.7 66.8 %
Utility and other income25.5 25.8 (1.1)%103.2 99.5 3.8 %
Property operating revenues281.0 260.7 7.8 %1,137.7 1,050.1 8.3 %
Utility expense32.0 28.7 11.3 %127.3 116.4 9.4 %
Payroll23.8 23.3 2.2 %100.1 95.7 4.6 %
Repair & Maintenance17.5 16.2 8.2 %75.0 72.2 3.9 %
Insurance and other (3)
21.1 19.9 5.9 %83.5 76.3 9.4 %
Real estate taxes17.3 16.5 4.5 %68.5 65.9 4.0 %
Sales and marketing, gross4.8 4.0 18.1 %23.7 17.3 36.9 %
Property operating expenses 116.5 108.6 7.3 %478.1 443.8 7.7 %
Income from property operations, excluding deferrals and property management (1)
$164.5 $152.1 8.2 %$659.6 $606.3 8.8 %
Occupied sites (4)
69,192 68,869 
Core manufactured home site figures and occupancy averages:
Total sites72,591 72,099 72,451 72,065 
Occupied sites69,101 68,780 68,985 68,639 
Occupancy %95.2 %95.4 %95.2 %95.2 %
Monthly base rent per site$732 $702 $724 $695 
Core RV and marina base rental income:
Annual (5)
$53.1 $49.3 7.8 %$205.0 $191.9 6.8 %
Seasonal11.0 7.0 57.4 %39.8 39.9 (0.2)%
Transient13.6 10.8 26.0 %79.3 55.4 43.2 %
Total RV and marina base rental income$77.7 $67.1 15.9 %$324.1 $287.2 12.9 %








______________________
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.Includes bad debt expense for the periods presented.
4.Occupied sites are presented as of the end of the period. Occupied sites have increased by 323 from 68,869 at December 31, 2020.
5.Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented.

4Q 2021 Supplemental Financial Information
11
Equity LifeStyle Properties, Inc.



Non-Core Income from Property Operations (1)

(In millions, unaudited)
Quarter EndedYear Ended
December 31, 2021December 31, 2021
MH base rental income$1.1 $3.9 
RV and marina base rental income11.9 38.7 
Utility and other income2.5 5.4 
Property operating revenues15.5 48.0 
Property operating expenses (2)
7.6 25.6 
Income from property operations, excluding deferrals and property management (1)
$7.9 $22.4 





































______________________
1.Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.
2.Includes bad debt expense for the periods presented.

4Q 2021 Supplemental Financial Information
12
Equity LifeStyle Properties, Inc.



Income from Rental Home Operations

(In millions, except occupied rentals, unaudited)
Quarters Ended December 31,Years Ended December 31,
2021202020212020
Manufactured homes:
Rental operations revenues (1)
$11.5 $12.2 $48.2 $47.9 
Rental home operations expense (2)
1.6 1.6 5.7 5.9 
Income from rental home operations9.9 10.6 42.5 42.0 
Depreciation on rental homes (3)
2.6 2.7 10.5 10.9 
Income from rental operations, net of depreciation$7.3 $7.9 $32.0 $31.1 
Occupied rentals: (4)
New3,038 3,357 
Used424 567 
Total occupied rental sites3,462 3,924 

As of December 31, 2021As of December 31, 2020
Cost basis in rental homes: (5)
GrossNet of DepreciationGrossNet of Depreciation
New$228.0 $185.8 $232.4 $198.7 
Used16.1 8.7 18.3 11.8 
Total rental homes$244.1 $194.5 $250.7 $210.5 
















______________________
1.For the quarters ended December 31, 2021 and 2020, approximately $7.5 million and $8.0 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 11. For the year ended December 31, 2021 and 2020, approximately $31.5 million and $31.4 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 11. The remainder of the rental operations revenue is included in Rental home income for the quarters and years ended December 31, 2021 and 2020 in the Core Income from Property Operations on page 11.
2.Rental home operations expense is included in Property operating, maintenance and real estate taxes in the Consolidated Income from Property Operations on page 10. Rental home operations expense is included in Insurance and other in the Core Income from Property Operations on page 11.
3.Depreciation on rental homes in our Core portfolio is presented in Depreciation and amortization in the Consolidated Income Statements on page 6.
4.Occupied rentals as of the end of the period in our Core portfolio. Included in the quarters ended December 31, 2021 and 2020 were 236 and 298 homes rented through ECHO Financing LLC ("ECHO joint venture"), respectively. As of December 31, 2021 and 2020, the rental home investment associated with the ECHO joint venture totaled approximately $9.1 million and $11.6 million, respectively.
5.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 December 31, 2021 and 2020, our investment in the ECHO joint venture was approximately $18.1 million and $17.4 million, respectively.

4Q 2021 Supplemental Financial Information
13
Equity LifeStyle Properties, Inc.



Total Sites and Home Sales

(In thousands, except sites and home sale volumes, unaudited)
Summary of Total Sites as of December 31, 2021
Sites (1)
MH sites73,400 
RV sites:
Annual33,700 
Seasonal (2)
10,900 
Transient16,500 
Marina slips6,800 
Membership (3)
25,100 
Joint Ventures (4)
2,800 
Total (5)
169,300 


Home Sales - Select Data
Quarters Ended December 31,Years Ended December 31,
2021202020212020
Total New Home Sales Volume (6)
338 173 1,163 644 
New Home Sales Volume - ECHO joint venture26 13 82 51 
New Home Sales Gross Revenues (6)
$30,089 $11,539 $94,160 $40,402 
Total Used Home Sales Volume 118 96 432 546 
Used Home Sales Gross Revenues$1,445 $911 $4,297 $5,293 
Brokered Home Resales Volume192 126 735 580 
Brokered Home Resale Revenues, net$378 $202 $1,364 $886 













______________________
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.Includes sites reserved but not used by seasonal customers due to travel restrictions.
3.Sites primarily utilized by approximately 125,100 members. Includes approximately 6,300 sites rented on an annual basis.
4.Joint ventures have approximately 1,800 annual Sites and 1,000 transient Sites.
5.Total does not foot due to rounding.
6.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 the ECHO joint venture.

4Q 2021 Supplemental Financial Information
14
Equity LifeStyle Properties, Inc.



Memberships - Select Data

(Unaudited)
Years Ended December 31,
20172018201920202021
Member Count (1)
106,456 111,094 115,680 116,169 125,149 
Thousand Trails Camping Pass (TTC) Origination31,618 37,528 41,484 44,129 50,523 
TTC Sales14,128 17,194 19,267 20,587 23,923 
RV Dealer TTC Activations17,490 20,334 22,217 23,542 26,600 
Number of annuals (2)
5,843 5,888 5,938 5,986 6,320 
Number of upgrade sales (3)
2,514 2,500 2,919 3,373 4,863 
(In thousands, unaudited)
Annual membership subscriptions $45,798 $47,778 $51,015 $53,085 $58,251 
RV base rental income from annuals$16,841 $18,363 $19,634 $20,761 $23,127 
RV base rental income from seasonals/transients$18,231 $19,840 $20,181 $18,126 $25,562 
Membership upgrade sales current period, gross$14,130 $15,191 $19,111 $21,739 $36,270 
Utility and other income$2,254 $2,410 $2,422 $2,426 $2,735 



























______________________
1.Members have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days.
2.Members who rent a specific site for an entire year in connection with their membership subscriptions.
3.Existing members who have upgraded memberships are eligible for enhanced benefits, including but not limited to longer stays, the ability to make earlier reservations, potential discounts on rental units, and potential access to additional properties. Upgrades require a non-refundable upfront payment.

4Q 2021 Supplemental Financial Information
15
Equity LifeStyle Properties, Inc.



Market Capitalization

(In millions, except share and OP Unit data, unaudited)
Capital Structure as of December 31, 2021
Total Common Shares/Units% of Total Common Shares/UnitsTotal% of Total% of Total Market Capitalization
Secured Debt$2,654 80.4 %
Unsecured Debt649 19.6 %
Total Debt (1)
$3,303 100.0 %16.2 %
Common Shares185,640,379 95.2 %
OP Units9,305,651 4.8 %
Total Common Shares and OP Units194,946,030 100.0 %
Common Stock price at December 31, 2021$87.66 
Fair Value of Common Shares and OP Units$17,089 100.0 %
Total Equity$17,089 100.0 %83.8 %
Total Market Capitalization$20,392 100.0 %






























______________________
1.    Excludes deferred financing costs of approximately $28.9 million.

4Q 2021 Supplemental Financial Information
16
Equity LifeStyle Properties, Inc.



Debt Maturity Schedule

Debt Maturity Schedule as of December 31, 2021
(In thousands, unaudited)
 YearSecured Debt Weighted Average Interest Rate
Unsecured Debt (1)
Weighted Average Interest RateTotal Debt% of Total DebtWeighted Average Interest Rate
2022$73,803 4.16 %$— — %$73,803 2.50 %4.16 %
202396,153 4.96 %— — %96,153 3.26 %4.96 %
202410,226 5.49 %— — %10,226 0.35 %5.49 %
202595,857 3.45 %— — %95,857 3.25 %3.45 %
2026— — %300,000 1.79 %300,000 10.16 %1.79 %
2027— — %— %— — %— %
2028212,192 4.19 %— — %212,192 7.18 %4.19 %
202940,125 4.10 %— — %40,125 1.36 %4.10 %
2030275,385 2.69 %— — %275,385 9.32 %2.69 %
2031267,789 2.46 %— — %267,789 9.07 %2.46 %
Thereafter1,582,214 3.82 %— — %1,582,214 53.57 %3.82 %
Total$2,653,744 3.65 %$300,000 1.79 %$2,953,744 100.0 %3.46 %
Unsecured Line of Credit (1)
 349,000 349,000 
Note Premiums341 — 341 
Total Debt2,654,085 649,000 3,303,085 
Deferred Financing Costs(26,303)(2,564)(28,867)
Total Debt, net$2,627,782 $646,436 $3,274,218 3.41 %
(2)
Average Years to Maturity11.93.810.3






















______________________
1.The balance on the existing line of credit was $69.0 million at January 24, 2022.
2.Reflects effective interest rate for the quarter ended December 31, 2021, including interest associated with the line of credit and amortization of note premiums and deferred financing costs.

4Q 2021 Supplemental Financial Information
17
Equity LifeStyle Properties, Inc.



Non-GAAP Financial Measures Definitions and Reconciliations

FUNDS FROM OPERATIONS (FFO). We define FFO as net income, computed in accordance with GAAP, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of FFO of unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We receive non-refundable upfront payments from membership upgrade contracts. In accordance with GAAP, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated membership upgrade contract term. Although the NAREIT definition of FFO does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of FFO.
We believe FFO, as defined by the Board of Governors of NAREIT, is generally a measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.
NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO). We define Normalized FFO as FFO excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.
We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our operations. For example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.
INCOME FROM PROPERTY OPERATIONS, EXCLUDING DEFERRALS AND PROPERTY MANAGEMENT. We define Income from property operations, excluding deferrals and property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, sales and marketing expenses, excluding property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net. For comparative purposes, we present bad debt expense within Property operating, maintenance and real estate taxes in the current and prior periods. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our properties.

4Q 2021 Supplemental Financial Information
18
Equity LifeStyle Properties, Inc.



The following table reconciles Net income available for Common Stockholders to Income from property operations:
Quarters Ended December 31,Years Ended December 31,
(amounts in thousands)
2021202020212020
Net income available for Common Stockholders$65,546 $64,646 $262,462 $228,268 
Redeemable perpetual preferred stock dividends16 16 
Income allocated to non-controlling interests – Common OP Units3,286 3,717 13,522 13,132 
Equity in income of unconsolidated joint ventures(1,095)(3,160)(3,881)(5,399)
Income before equity in income of unconsolidated joint ventures67,745 65,211 272,119 236,017 
Loss on sale of real estate, net— — 59 — 
Membership upgrade sales upfront payments, deferred, net3,945 2,683 25,079 12,062 
Gross revenues from home sales(31,534)(12,450)(98,457)(45,695)
Brokered resale and ancillary services revenues, net(929)(49)(9,351)(2,060)
Interest income(1,702)(1,755)(7,016)(7,154)
Income from other investments, net(1,159)(933)(4,555)(4,026)
Membership sales commissions, deferred, net(670)(333)(5,075)(1,660)
Property management17,024 13,623 65,979 57,967 
Depreciation and amortization50,317 39,194 188,444 155,131 
Cost of home sales29,743 12,602 94,314 46,229 
Home selling expenses1,283 1,037 5,138 4,572 
General and administrative9,576 8,120 40,717 39,276 
Other expenses805 682 3,100 2,567 
Early debt retirement— — 2,784 10,786 
Interest and related amortization27,951 25,231 108,718 102,771 
Income from property operations, excluding deferrals and property management
172,395 152,863 681,997 606,783 
Membership upgrade sales upfront payments, and membership sales commissions, deferred, net(3,275)(2,350)(20,004)(10,402)
Property management(17,024)(13,623)(65,979)(57,967)
Income from property operations$152,096 $136,890 $596,014 $538,414 
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre. We define EBITDAre as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, gains or losses from sales of properties, impairments charges, and adjustments to reflect our share of EBITDAre of unconsolidated joint ventures. We compute EBITDAre in accordance with our interpretation of the standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We receive non-refundable upfront payments from membership upgrade contracts. In accordance with GAAP, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated customer life. Although the NAREIT definition of EBITDAre does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of EBITDAre.
We define Adjusted EBITDAre as EBITDAre excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items.
We believe that EBITDAre and Adjusted EBITDAre may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity REIT.





4Q 2021 Supplemental Financial Information
19
Equity LifeStyle Properties, Inc.



The following table reconciles Consolidated net income to EBITDAre and Adjusted EBITDAre:
Quarters Ended December 31,Years Ended December 31,
(amounts in thousands)2021202020212020
Consolidated net income$68,840 $68,371 $276,000 $241,416 
Interest income(1,702)(1,755)(7,016)(7,154)
Membership upgrade sales upfront payments, deferred, net 3,945 2,683 25,079 12,062 
Membership sales commissions, deferred, net(670)(333)(5,075)(1,660)
Real estate depreciation and amortization50,317 39,194 188,444 155,131 
Other depreciation and amortization765 682 2,927 2,567 
Interest and related amortization 27,951 25,231 108,718 102,771 
Loss on sale of real estate, net— — 59 — 
Adjustments to our share of EBITDAre of unconsolidated joint ventures612 (966)1,390 (154)
EBITDAre150,058 133,107 590,526 504,979 
Early debt retirement— — 2,784 10,786 
Transaction costs598 — 598 — 
COVID-19 expenses — — — 1,446 
Adjusted EBITDAre$150,656 $133,107 $593,908 $517,211 
CORE. The Core properties include properties we owned and operated during all of 2020 and 2021. We believe Core is a measure that is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations.
NON-CORE. The Non-Core properties include properties that were not owned and operated during all of 2020 and 2021. This includes, but is not limited to, one MH community, seven RV communities and one marina acquired during 2020 and six RV communities and eleven marinas acquired during 2021.
INCOME FROM RENTAL OPERATIONS, NET OF DEPRECIATION. We use Income from rental operations, net of depreciation as an alternative measure to evaluate the operating results of our home rental program. Income from rental operations, net of depreciation, represents income from rental operations less depreciation expense on rental homes. We believe this measure is meaningful for investors as it provides a complete picture of the home rental program operating results, including the impact of depreciation, which affects our home rental program investment decisions.
NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital expenditures that do not directly result in increased revenue or expense savings and are primarily comprised of common area improvements, furniture and mechanical improvements.
FIXED CHARGES. Fixed charges consist of interest expense, amortization of note premiums and debt issuance costs.



















4Q 2021 Supplemental Financial Information
20
Equity LifeStyle Properties, Inc.