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EQUITY LIFESTYLE PROPERTIES INC0000895417false00008954172022-07-182022-07-18

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): July 18, 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 July 18, 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 and six months ended June 30, 2022, and our third 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 July 18, 2022.

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 us 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, FFO 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;
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, 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) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly



seasonal employees; (xiii) ongoing legal matters and related fees; and (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events. 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 449 quality properties located predominately in the United States consisting of 170,880 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 July 18, 2022, “ELS Reports Second 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: July 19, 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/5067b86a1a138b106017a42700780831-elslogoa34a.jpg
CONTACT: Paul SeaveyFOR IMMEDIATE RELEASE
(800) 247-5279July 18, 2022
                                    
ELS REPORTS SECOND QUARTER RESULTS
Continued Strong Performance;
Guidance Update

CHICAGO, IL – July 18, 2022 Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and six months ended June 30, 2022. All per share results are reported on a fully diluted basis unless otherwise noted.
Financial Results for the Quarter and Six Months Ended June 30, 2022
For the quarter ended June 30, 2022, total revenues increased $35.2 million, or 10.7%, to $365.3 million, compared to $330.1 million for the same period in 2021. For the quarter ended June 30, 2022, net income available for Common Stockholders increased $0.4 million, to $61.5 million, or $0.33 per Common Share, compared to $61.1 million, or $0.33 per Common Share, for the same period in 2021.
For the six months ended June 30, 2022, total revenues increased $91.7 million, or 14.5%, to $725.5 million, compared to $633.8 million for the same period in 2021. For the six months ended June 30, 2022, net income available for Common Stockholders increased $18.1 million, or $0.09 per Common Share, to $144.4 million, or $0.78 per Common Share, compared to $126.3 million, or $0.69 per Common Share, for the same period in 2021.
Non-GAAP Financial Measures and Portfolio Performance
For the quarter ended June 30, 2022, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders increased $4.0 million, or $0.01 per Common Share, to $121.6 million, or $0.62 per Common Share, compared to $117.6 million, or $0.61 per Common Share, for the same period in 2021. For the six months ended June 30, 2022, Funds from Operations available for Common Stock and OP Unit holders increased $24.4 million, or $0.10 per Common Share, to $262.5 million, or $1.34 per Common Share, compared to $238.1 million, or $1.24 per Common Share, for the same period in 2021.
For the quarter ended June 30, 2022, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $7.0 million, or $0.03 per Common Share, to $125.3 million, or $0.64 per Common Share, compared to $118.3 million, or $0.61 per Common Share, for the same period in 2021. For the six months ended June 30, 2022, Normalized Funds from Operations available for Common Stock and OP Unit holders increased $25.8 million, or $0.12 per Common Share, to $266.7 million, or $1.37 per Common Share, compared to $240.9 million, or $1.25 per Common Share, for the same period in 2021.
For the quarter ended June 30, 2022, property operating revenues, excluding deferrals, increased $20.7 million to $315.8 million, compared to $295.1 million for the same period in 2021. For the six months ended June 30, 2022, property operating revenues, excluding deferrals, increased $57.8 million to $638.2 million, compared to $580.4 million for the same period in 2021. For the quarter ended June 30, 2022, income from property operations, excluding deferrals and property management, increased $8.3 million to $174.8 million, compared to $166.5 million for the same period in 2021. For the six months ended June 30, 2022, income from property operations, excluding deferrals and property management, increased $30.5 million to $367.3 million, compared to $336.8 million for the same period in 2021.
i



For the quarter ended June 30, 2022, Core property operating revenues, excluding deferrals, increased approximately 4.9% and Core income from property operations, excluding deferrals and property management, increased approximately 3.3%, compared to the same period in 2021. For the six months ended June 30, 2022, Core property operating revenues, excluding deferrals, increased approximately 7.2% and Core income from property operations, excluding deferrals and property management, increased approximately 6.2%, compared to the same period in 2021.
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 June 2022, we completed the acquisition of Holiday Trav-L-Park Resort, a 299-site oceanfront Recreational Vehicle (“RV”) community located in Emerald Isle, North Carolina, Oceanside RV Resort, a 139-site RV community located in Oceanside, California, and one land parcel adjacent to one of our properties for an aggregate purchase price of $97.4 million. Our total year to date acquisition investment is $113 million.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of July 18, 2022, we own or have an interest in 449 quality properties in 35 states and British Columbia consisting of 170,880 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, July 19, 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, FFO 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;
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;
ii



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) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly seasonal employees; (xiii) ongoing legal matters and related fees; and (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events. 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.
iii

















Supplemental Financial Information



Operations Update

Normalized FFO per Common Share
Second Quarter (“Q2”) 2022: $0.64 or 4.5% growth compared to the same period in 2021.
June Year to Date (“YTD”) 2022: $1.37 or 9.3% growth compared to the same period in 2021.
Core Income from property operations, excluding deferrals and property management
Q2 2022: 3.3% growth compared to the same period in 2021.
June YTD 2022: 6.2% growth compared to the same period in 2021.
MH - 60% of Total Property Operating Revenues
Q2 2022 Core MH base rental income: 5.7% growth compared to the same period in 2021, which reflects 5.3% growth from rate increases and 0.4% from occupancy gains.
June YTD 2022 Core MH base rental income: 5.7% growth compared to the same period in 2021, which reflects 5.2% growth from rate increases and 0.5% from occupancy gains.
June YTD 2022 Core MH occupancy increased by 97 sites since December 31, 2021.
June YTD 2022 Core Manufactured homeowners increased by 443 since December 31, 2021.
Q2 New home sales: 365 which represents the highest volume of new home sales in a quarter in our history.
RV and Marina - 32% of Total Property Operating Revenues
Q2 2022 Core RV and marina base rental income: 6.6% growth compared to the same period in 2021.
June YTD 2022 Core RV and marina base rental income: 13.9% growth compared to the same period in 2021.
Q2 2022 Core RV annual base rental income: 9.2% growth compared to the same period in 2021, which reflects 7.1% growth from rate increases and 2.1% from occupancy gains.
Q2 2022 combined Core Seasonal and Transient RV base rental income: 2.4% or $0.6 million growth over the same period in 2021. Growth was $0.5 million below the midpoint of our guidance.
June YTD 2022 combined Core Seasonal and Transient RV base rental income: 22.8% or $13.3 million growth over the same period in 2021.
Core RV Site Composition
June 30, 2022June 30, 2021
Annual32,000 31,300 
Seasonal12,100 10,700 
Transient12,500 14,200 
Member25,400 24,800 
Second quarter total nights camped increased 1.8% and 8.3% compared to the quarter ended June 30, 2021 and June 30, 2019, respectively.
During the quarter and six months ended June 30, 2022 combined Utility, Payroll and Repair & Maintenance expense, which represent approximately two thirds of property operating expense, were 28.8% and 27.1%, respectively, of total property operating revenue compared to 27.7% and 26.1% for the quarter and six months ended June 30, 2021.
Added 458 and 514 expansion Sites during the quarter and six months ended June 30, 2022, respectively.
Core Transient RV base rental income for the 2022 4th of July holiday weekend declined 5.7% over 2021 and increased 14.7% over 2019.








2Q 2022 Supplemental Financial Information
1
Equity LifeStyle Properties, Inc.



2022 Guidance (1)

($ in millions except per share)
Third QuarterFull Year
Net Income/share$0.37 to $0.43$1.54 to $1.64
FFO/share$0.66 to $0.72$2.65 to $2.75
Normalized FFO/share$0.66 to $0.72$2.68 to $2.78
Core Portfolio:
MH rate growth5.3% to 5.5%5.2% to 5.4%
RV Annual rate growth6.6% to 6.8%6.4% to 6.6%
Combined RV Seasonal and Transient base rental income growth (2.5)% to (3.5)%10.6% to 11.6%
Property operating revenue growth rate4.3% to 4.9%5.4% to 6.4%
Property operating expense growth rate3.7% to 4.3%5.2% to 6.2%
Income from property operations, excluding deferrals and property management growth rate(2)
4.7% to 5.3%5.6% to 6.6%












































______________________
(1)    Third 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 manage expenses in an inflationary environment, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect. See Forward-Looking Statements in this release for additional factors impacting our 2022 guidance assumptions.
(2)    The expected contribution of our third quarter Core Income from property operations, excluding deferrals and property management is within a range of 24.6% to 25.6% of our expected full year Core Income from property operations, excluding deferrals and property management.

2Q 2022 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 & CompanyTruistUBS
Wes GolladayAnthony HauMichael 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.

2Q 2022 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
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sept 30, 2021Jun 30, 2021
Operating Information
Total revenues$365.3 $360.2 $335.3 $347.2 $330.1 
Net income$64.6 $87.1 $68.8 $74.1 $64.1 
Net income available for Common Stockholders$61.5 $82.9 $65.5 $70.6 $61.1 
Adjusted EBITDAre (1)
$153.3 $168.4 $150.7 $150.8 $144.6 
FFO available for Common Stock and OP Unit holders (1)(2)
$121.6 $140.9 $123.0 $124.5 $117.6 
Normalized FFO available for Common Stock and OP Unit holders (1)(2)
$125.3 $141.4 $123.6 $124.5 $118.3 
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2)
$103.6 $125.1 $102.3 $106.1 $99.0 
Common Shares and OP Units Outstanding (In thousands) and Per Share Data
Common Shares and OP Units, end of the period195,373 195,303 194,946 192,852 192,847 
Weighted average Common Shares and OP Units outstanding - Fully Diluted195,227 195,246 193,412 192,736 192,701 
Net income per Common Share - Fully Diluted (3)
$0.33 $0.45 $0.36 $0.38 $0.33 
FFO per Common Share and OP Unit - Fully Diluted$0.62 $0.72 $0.64 $0.65 $0.61 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.72 $0.64 $0.65 $0.61 
Dividends per Common Share$0.4100 $0.4100 $0.3625 $0.3625 $0.3625 
Balance Sheet
Total assets$5,400 $5,265 $5,308 $4,982 $4,824 
Total liabilities$3,878 $3,734 $3,822 $3,673 $3,522 
Market Capitalization
Total debt (4)
$3,298 $3,193 $3,303 $3,154 $3,010 
Total market capitalization (5)
$17,066 $18,130 $20,392 $18,216 $17,340 
Ratios
Total debt / total market capitalization19.3 %17.6 %16.2 %17.3 %17.4 %
Total debt / Adjusted EBITDAre (6)
5.3 5.2 5.6 5.5 5.4 
Interest coverage (7)
5.7 5.7 5.5 5.5 5.4 
Fixed charges(8)
5.6 5.6 5.5 5.4 5.3 




______________________
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 $29.8 million as of June 30, 2022.
5.See page 16 for the calculation of market capitalization as of June 30, 2022.
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.

2Q 2022 Supplemental Financial Information
4
Equity LifeStyle Properties, Inc.



Consolidated Balance Sheets

(In thousands, except share and per share data)
June 30, 2022December 31, 2021
(unaudited)
Assets
Investment in real estate:
Land$2,073,106 $2,019,787 
Land improvements4,031,259 3,912,062 
Buildings and other depreciable property1,138,211 1,057,215 
7,242,576 6,989,064 
Accumulated depreciation(2,197,013)(2,103,774)
Net investment in real estate5,045,563 4,885,290 
Cash and restricted cash42,426 123,398 
Notes receivable, net41,925 39,955 
Investment in unconsolidated joint ventures84,113 70,312 
Deferred commission expense48,806 47,349 
Other assets, net136,755 141,567 
Total Assets$5,399,588 $5,307,871 
Liabilities and Equity
Liabilities:
Mortgage notes payable, net$2,724,040 $2,627,783 
Term loan, net496,373 297,436 
Unsecured line of credit47,800 349,000 
Accounts payable and other liabilities185,961 172,285 
Deferred membership revenue188,582 176,439 
Accrued interest payable9,520 9,293 
Rents and other customer payments received in advance and security deposits145,265 118,696 
Distributions payable80,311 70,768 
Total Liabilities3,877,852 3,821,700 
Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of June 30, 2022 and December 31, 2021; none issued and outstanding.
— — 
Common stock, $0.01 par value, 600,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 186,076,327 and 185,640,379 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
1,916 1,913 
Paid-in capital1,622,876 1,593,362 
Distributions in excess of accumulated earnings(191,828)(183,689)
Accumulated other comprehensive income16,241 3,524 
Total Stockholders’ Equity1,449,205 1,415,110 
Non-controlling interests – Common OP Units72,531 71,061 
Total Equity1,521,736 1,486,171 
Total Liabilities and Equity$5,399,588 $5,307,871 


2Q 2022 Supplemental Financial Information
5
Equity LifeStyle Properties, Inc.



Consolidated Statements of Income

(In thousands, unaudited)
Quarters Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues:
Rental income$275,330 $255,698 $560,395 $504,720 
Annual membership subscriptions15,592 14,267 30,749 27,921 
Membership upgrade sales current period, gross9,535 9,207 16,686 19,221 
Membership upgrade sales upfront payments, deferred, net(6,367)(6,454)(10,451)(13,881)
Other income14,195 14,185 27,736 24,706 
Gross revenues from home sales, brokered resales and ancillary services (1)
52,681 40,237 92,390 65,478 
Interest income1,722 1,742 3,481 3,509 
Income from other investments, net2,617 1,222 4,521 2,158 
Total revenues365,305 330,104 725,507 633,832 
Expenses:
Property operating and maintenance114,307 102,663 218,299 191,536 
Real estate taxes19,182 17,896 38,639 35,746 
Sales and marketing, gross6,409 6,298 11,323 12,474 
Membership sales commissions, deferred, net(957)(1,438)(1,540)(2,937)
Property management19,099 16,560 36,970 31,940 
Depreciation and amortization50,796 48,316 100,190 93,714 
Cost of home sales, brokered resales and ancillary services (1)
40,971 31,793 71,670 50,710 
Home selling expenses and ancillary operating expenses (1)
7,584 6,090 14,066 11,031 
General and administrative11,695 10,228 23,992 20,740 
Other expenses4,189 800 5,009 1,498 
Early debt retirement640 755 1,156 2,784 
Interest and related amortization28,053 27,131 55,517 53,406 
Total expenses301,968 267,092 575,291 502,642 
Loss on sale of real estate, net— — — (59)
Income before equity in income of unconsolidated joint ventures63,337 63,012 150,216 131,131 
Equity in income of unconsolidated joint ventures1,253 1,068 1,424 1,936 
Consolidated net income64,590 64,080 151,640 133,067 
Income allocated to non-controlling interests – Common OP Units(3,073)(3,021)(7,217)(6,768)
Redeemable perpetual preferred stock dividends(8)(8)(8)(8)
Net income available for Common Stockholders$61,509 $61,051 $144,415 $126,291 










______________________
1.Prior period amounts have been reclassified to conform to the current period presentation.

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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 9 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 18 - 20.







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Equity LifeStyle Properties, Inc.



Selected Non-GAAP Financial Measures

(In millions, except per share data, unaudited)
Quarter Ended
June 30, 2022
Income from property operations, excluding deferrals and property management - 2022 Core (1)
$166.6 
Income from property operations, excluding deferrals and property management - Non-Core (1)
8.2 
Property management and general and administrative(30.8)
Other income and expenses (excluding transaction/pursuit costs)9.4 
Interest and related amortization(28.1)
Normalized FFO available for Common Stock and OP Unit holders (2)
$125.3 
Early debt retirement(0.6)
Transaction/pursuit costs (3)
(3.1)
FFO available for Common Stock and OP Unit holders (2)
$121.6 
FFO per Common Share and OP Unit - Fully Diluted$0.62
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64
Normalized FFO available for Common Stock and OP Unit holders (2)
$125.3 
Non-revenue producing improvements to real estate (21.7)
FAD for Common Stock and OP Unit holders (2)
$103.6 
Weighted average Common Shares and OP Units - Fully Diluted195.2 





















______________________
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.
3.Represents transaction/pursuit costs related to unconsummated acquisitions included in Other expenses in the Consolidated Statements of Income on page 6.

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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 June 30,Six Months Ended June 30,
2022202120222021
Net income available for Common Stockholders$61,509 $61,051 $144,415 $126,291 
Income allocated to non-controlling interests – Common OP Units3,073 3,021 7,217 6,768 
Membership upgrade sales upfront payments, deferred, net6,367 6,454 10,451 13,881 
Membership sales commissions, deferred, net(957)(1,438)(1,540)(2,937)
Depreciation and amortization50,796 48,316 100,190 93,714 
Depreciation on unconsolidated joint ventures835 184 1,776 367 
Loss on sale of real estate, net— — — 59 
FFO available for Common Stock and OP Unit holders121,623 117,588 262,509 238,143 
Early debt retirement640 755 1,156 2,784 
Transaction/pursuit costs (1)
3,082 — 3,082 — 
Normalized FFO available for Common Stock and OP Unit holders125,345 118,343 266,747 240,927 
Non-revenue producing improvements to real estate(21,738)(19,308)(38,106)(30,892)
FAD for Common Stock and OP Unit holders$103,607 $99,035 $228,641 $210,035 
Net income available per Common Share - Basic$0.33 $0.33 $0.78 $0.69 
Net income available per Common Share - Fully Diluted (2)
$0.33 $0.33 $0.78 $0.69 
FFO per Common Share and OP Unit - Basic$0.62 $0.61 $1.35 $1.24 
FFO per Common Share and OP Unit - Fully Diluted$0.62 $0.61 $1.34 $1.24 
Normalized FFO per Common Share and OP Unit - Basic$0.64 $0.61 $1.37 $1.25 
Normalized FFO per Common Share and OP Unit - Fully Diluted$0.64 $0.61 $1.37 $1.25 
Weighted average Common Shares outstanding - Basic185,767 182,337 185,729 182,142 
Weighted average Common Shares and OP Units outstanding - Basic195,064 192,490 195,028 192,454 
Weighted average Common Shares and OP Units outstanding - Fully Diluted195,227 192,701 195,253 192,668 













______________________
1.Represents transaction/pursuit costs related to unconsummated acquisitions included in Other expenses in the Consolidated Statements of Income on page 6.
2.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 June 30,Six Months Ended June 30,
2022202120222021
MH base rental income (2)
$158.7 $150.1 $316.0 $299.1 
Rental home income (2)
3.8 4.3 7.8 8.6 
RV and marina base rental income (2)
98.3 89.0 207.1 172.6 
Annual membership subscriptions15.6 14.3 30.7 27.9 
Membership upgrade sales current period, gross9.5 9.2 16.7 19.2 
Utility and other income (2)
29.9 28.2 59.9 53.0 
Property operating revenues315.8 295.1 638.2 580.4 
Property operating, maintenance and real estate taxes (2)
134.6 122.3 259.6 231.1 
Sales and marketing, gross6.4 6.3 11.3 12.5 
Property operating expenses141.0 128.6 270.9 243.6 
Income from property operations, excluding deferrals and property management (1)
$174.8 $166.5 $367.3 $336.8 
Manufactured home site figures and occupancy averages:
Total sites73,442 73,182 73,452 73,088 
Occupied sites69,693 69,405 69,670 69,354 
Occupancy %94.9 %94.8 %94.9 %94.9 %
Monthly base rent per site$759 $721 $756 $719 
RV and marina base rental income:
Annual$66.6 $58.8 $131.0 $113.3 
Seasonal9.5 7.4 36.1 22.8 
Transient22.2 22.8 40.0 36.5 
Total RV and marina base rental income$98.3 $89.0 $207.1 $172.6 














______________________
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 Statements of Income on page 6. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.

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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 June 30,Six Months Ended June 30,
20222021
Change (2)
20222021
Change (2)
MH base rental income$155.8 $147.4 5.7 %$310.2 $293.6 5.7 %
Rental home income3.8 4.3 (10.9)%7.8 8.6 (9.4)%
RV and marina base rental income87.4 81.9 6.6 %183.8 161.4 13.9 %
Annual membership subscriptions15.4 14.3 7.9 %30.5 27.9 9.2 %
Membership upgrade sales current period, gross9.3 9.2 1.2 %16.4 19.2 (14.5)%
Utility and other income26.1 26.8 (2.7)%52.4 50.3 4.2 %
Property operating revenues297.8 283.9 4.9 %601.1 561.0 7.2 %
Utility expense33.7 30.9 9.0 %67.3 59.9 12.3 %
Payroll28.5 26.7 6.8 %53.1 49.7 6.9 %
Repair & Maintenance23.6 21.0 12.3 %42.4 36.9 14.9 %
Insurance and other (3)
22.4 21.5 4.1 %44.5 41.2 8.0 %
Real estate taxes16.7 16.2 3.4 %33.9 32.4 4.7 %
Sales and marketing, gross6.3 6.3 0.8 %11.2 12.5 (9.8)%
Property operating expenses 131.2 122.6 7.0 %252.4 232.6 8.6 %
Income from property operations, excluding deferrals and property management (1)
$166.6 $161.3 3.3 %$348.7 $328.4 6.2 %
Occupied sites (4)
68,992 68,711 
Core manufactured home site figures and occupancy averages:
Total sites72,454 72,186 72,455 72,091 
Occupied sites68,915 68,642 68,895 68,595 
Occupancy % (5)
95.1 %95.1 %95.1 %95.2 %
Monthly base rent per site$753 $716 $750 $713 
Core RV and marina base rental income:
Annual (6)
$57.4 $52.6 9.1 %$112.8 $103.6 8.9 %
Seasonal9.0 6.9 30.6 %34.0 22.1 54.1 %
Transient21.0 22.4 (6.6)%37.0 35.7 3.7 %
Total Seasonal and Transient$30.0 $29.3 2.4 %$71.0 $57.8 22.8 %
Total RV and marina base rental income$87.4 $81.9 6.6 %$183.8 $161.4 13.9 %
Core utility information:
Income$14.7 $13.4 9.7 %$30.2 $26.9 12.3 %
Expense33.7 30.9 9.1 %67.3 59.9 12.4 %
Expense, net$19.0 $17.5 8.6 %$37.1 $33.0 12.4 %
Utility Recovery Rate (7)
43.6 %43.4 %44.9 %44.9 %
_____________________
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 97 from 68,895 at December 31, 2021.
5.The decrease in the occupancy rate for the six months ended June 30, 2022 is due to the addition of expansion sites.
6.Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented.
7.Calculated by dividing the utility income by utility expense.

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Equity LifeStyle Properties, Inc.



Non-Core Income from Property Operations (1)

(In millions, unaudited)
Quarter EndedSix Months Ended
June 30, 2022June 30, 2022
MH base rental income$2.9 $5.8 
RV and marina base rental income10.9 23.3 
Annual membership subscriptions0.2 0.3 
Utility and other income3.7 7.4 
Membership upgrade sales current period, gross0.3 0.3 
Property operating revenues18.0 37.1 
Property operating expenses (2)
9.8 18.5 
Income from property operations, excluding deferrals and property management (1)
$8.2 $18.6 


































______________________
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 period presented.

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Equity LifeStyle Properties, Inc.



Income from Rental Home Operations

(In millions, except occupied rentals, unaudited)
Quarters Ended June 30,Six Months Ended June 30,
2022202120222021
Manufactured homes:
Rental operations revenues (1)
$10.9 $12.4 $22.2 $24.8 
Rental home operations expense (2)
1.2 1.3 2.6 2.5 
Income from rental home operations9.7 11.1 19.6 22.3 
Depreciation on rental homes (3)
2.5 2.7 5.0 5.3 
Income from rental operations, net of depreciation$7.2 $8.4 $14.6 $17.0 
Occupied rentals: (4)
New2,742 3,305 
Used375 491 
Total occupied rental sites3,117 3,796 

As of June 30, 2022As of June 30, 2021
Cost basis in rental homes: (5)
GrossNet of DepreciationGrossNet of Depreciation
New$221.3 $184.1 $230.8 $196.5 
Used14.6 6.1 17.8 11.7 
Total rental homes$235.9 $190.2 $248.6 $208.2 

















______________________
1.For the quarters ended June 30, 2022 and 2021, approximately $7.1 million and $8.1 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 ended June 30, 2022 and 2021 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 Statements of Income on page 6.
4.Occupied rentals as of the end of the period in our Core portfolio. Included in the quarters ended June 30, 2022 and 2021 were 185 and 282 homes rented through ECHO Financing LLC ("ECHO joint venture"), respectively. As of June 30, 2022 and 2021, the rental home investment associated with the ECHO joint venture totaled approximately $7.1 million and $11.1 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 June 30, 2022 and 2021, our investment in the ECHO joint venture was approximately $18.7 million and $17.7 million, respectively.

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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 June 30, 2022
Sites (1)
MH sites73,400 
RV sites:
Annual34,200 
Seasonal12,700 
Transient14,900 
Marina slips6,900 
Membership (2)
25,800 
Joint Ventures (3)
3,000 
Total170,900 


Home Sales - Select Data
Quarters Ended June 30,Six Months Ended June 30,
2022202120222021
Total New Home Sales Volume (4)
365 295 626 487 
New Home Sales Volume - ECHO joint venture29 16 51 24 
New Home Sales Gross Revenues (4)
$33,848 $23,320 $59,378 $37,658 
Total Used Home Sales Volume 97 108 169 210 
Used Home Sales Gross Revenues$1,367 $1,107 $2,365 $1,989 
Brokered Home Resales Volume263 212 451 372 
Brokered Home Resales Gross Revenues$1,049 $588 $1,660 $1,020 














______________________
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 131,000 members. Includes approximately 6,300 sites rented on an annual basis.
3.Joint ventures have approximately 1,800 annual Sites and 1,200 transient Sites.
4.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.

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Equity LifeStyle Properties, Inc.



Memberships - Select Data

(Unaudited)
Years Ended December 31,
2018201920202021
 Six Months
 Ended June 30, 2022 (1)
Member Count (2)
111,094 115,680 116,169 125,149 131,049 
Thousand Trails Camping Pass (TTC) Origination37,528 41,484 44,129 50,523 27,157 
TTC Sales17,194 19,267 20,587 23,923 12,284 
RV Dealer TTC Activations20,334 22,217 23,542 26,600 14,873 
Number of annuals (3)
5,888 5,938 5,986 6,320 6,341 
Number of upgrade sales (4)
2,500 2,919 3,373 4,863 1,969 
(In thousands, unaudited)
Annual membership subscriptions $47,778 $51,015 $53,085 $58,251 $30,749 
RV base rental income from annuals$18,363 $19,634 $20,761 $23,127 $12,388 
RV base rental income from seasonals/transients$19,840 $20,181 $18,126 $25,562 $10,867 
Membership upgrade sales current period, gross$15,191 $19,111 $21,739 $36,270 $16,686 
Utility and other income$2,410 $2,422 $2,426 $2,735 $1,093 



























______________________
1.Activity through June 30, 2022.
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.

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Equity LifeStyle Properties, Inc.



Market Capitalization

(In millions, except share and OP Unit data, unaudited)
Capital Structure as of June 30, 2022
Total Common Shares/Units% of Total Common Shares/UnitsTotal% of Total% of Total Market Capitalization
Secured Debt$2,750 83.4 %
Unsecured Debt548 16.6 %
Total Debt (1)
$3,298 100.0 %19.3 %
Common Shares186,076,327 95.2 %
OP Units9,297,011 4.8 %
Total Common Shares and OP Units195,373,338 100.0 %
Common Stock price at June 30, 2022$70.47 
Fair Value of Common Shares and OP Units$13,768 100.0 %
Total Equity$13,768 100.0 %80.7 %
Total Market Capitalization$17,066 100.0 %






























______________________
1.    Excludes deferred financing costs of approximately $29.8 million.

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Equity LifeStyle Properties, Inc.



Debt Maturity Schedule

Debt Maturity Schedule as of June 30, 2022
(In thousands, unaudited)
 YearSecured Debt Weighted Average Interest Rate
Unsecured Debt (1)
Weighted Average Interest RateTotal Debt% of Total DebtWeighted Average Interest Rate
2022$— — %$— — %$— — %— %
202394,355 4.94 %— — %94,355 2.90 %4.94 %
202410,116 5.49 %— — %10,116 0.31 %5.49 %
202594,538 3.45 %— — %94,538 2.91 %3.45 %
2026— — %300,000 1.79 %300,000 9.23 %1.79 %
2027— — %200,000 2.01 %200,000 6.15 %2.01 %
2028209,675 4.19 %— — %209,675 6.45 %4.19 %
202939,727 4.10 %— — %39,727 1.22 %4.10 %
2030275,385 2.69 %— — %275,385 8.47 %2.69 %
2031263,642 2.46 %— — %263,642 8.11 %2.46 %
Thereafter1,762,573 3.77 %— — %1,762,573 54.23 %3.77 %
Total$2,750,011 3.61 %$500,000 1.88 %$3,250,011 100.0 %3.34 %
Unsecured Line of Credit 47,800 47,800 
Note Premiums213 — 213 
Total Debt2,750,224 547,800 3,298,024 
Deferred Financing Costs(26,185)(3,627)(29,812)
Total Debt, net$2,724,039 $544,173 $3,268,212 3.48 %
(1)
Average Years to Maturity11.74.110.4























______________________
1.Reflects effective interest rate for the quarter ended June 30, 2022, including interest associated with the line of credit and amortization of note premiums and deferred financing costs.

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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, transaction/pursuit costs, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.
We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our 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.

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Equity LifeStyle Properties, Inc.



The following table reconciles Net income available for Common Stockholders to Income from property operations:
Quarters Ended June 30,Six Months Ended June 30,
(amounts in thousands)
2022202120222021
Net income available for Common Stockholders$61,509 $61,051 $144,415 $126,291 
Redeemable perpetual preferred stock dividends
Income allocated to non-controlling interests – Common OP Units3,073 3,021 7,217 6,768 
Equity in income of unconsolidated joint ventures(1,253)(1,068)(1,424)(1,936)
Income before equity in income of unconsolidated joint ventures63,337 63,012 150,216 131,131 
Loss on sale of real estate, net— — — 59 
Membership upgrade sales upfront payments, deferred, net6,367 6,454 10,451 13,881 
Gross revenues from home sales, brokered resales and ancillary services (1)
(52,681)(40,237)(92,390)(65,478)
Interest income(1,722)(1,742)(3,481)(3,509)
Income from other investments, net(2,617)(1,222)(4,521)(2,158)
Membership sales commissions, deferred, net(957)(1,438)(1,540)(2,937)
Property management19,099 16,560 36,970 31,940 
Depreciation and amortization50,796 48,316 100,190 93,714 
Cost of home sales, brokered resales and ancillary services (1)
40,971 31,793 71,670 50,710 
Home selling expenses and ancillary operating expenses7,584 6,090 14,066 11,031 
General and administrative11,695 10,228 23,992 20,740 
Other expenses4,189 800 5,009 1,498 
Early debt retirement640 755 1,156 2,784 
Interest and related amortization28,053 27,131 55,517 53,406 
Income from property operations, excluding deferrals and property management
174,754 166,500 367,305 336,812 
Membership upgrade sales upfront payments, and membership sales commissions, deferred, net(5,410)(5,016)(8,911)(10,944)
Property management(19,099)(16,560)(36,970)(31,940)
Income from property operations$150,245 $144,924 $321,424 $293,928 
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, transaction/pursuit costs and other miscellaneous non-comparable items.
We believe that EBITDAre and Adjusted EBITDAre may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity REIT.



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1.Prior period amounts have been reclassified to conform to the current period presentation.

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Equity LifeStyle Properties, Inc.




The following table reconciles Consolidated net income to EBITDAre and Adjusted EBITDAre:
Quarters Ended June 30,Six Months Ended June 30,
(amounts in thousands)2022202120222021
Consolidated net income$64,590 $64,080 $151,640 $133,067 
Interest income(1,722)(1,742)(3,481)(3,509)
Membership upgrade sales upfront payments, deferred, net 6,367 6,454 10,451 13,881 
Membership sales commissions, deferred, net(957)(1,438)(1,540)(2,937)
Real estate depreciation and amortization50,796 48,316 100,190 93,714 
Other depreciation and amortization1,119 740 1,946 1,444 
Interest and related amortization 28,053 27,131 55,517 53,406 
Loss on sale of real estate, net— — — 59 
Adjustments to our share of EBITDAre of unconsolidated joint ventures1,361 273 2,817 519 
EBITDAre149,607 143,814 317,540 289,644 
Early debt retirement640 755 1,156 2,784 
Transaction/pursuit costs (1)
3,082 — 3,082 — 
Adjusted EBITDAre$153,329 $144,569 $321,778 $292,428 

CORE. The Core properties include properties we owned and operated during all of 2021 and 2022. 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 2021 and 2022. This includes, but is not limited to, six RV communities and eleven marinas acquired during 2021, one membership RV community and three RV communities acquired during 2022 and our Westwinds MH community and Nicholson Plaza.
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.













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1.Represents transaction/pursuit costs related to unconsummated acquisitions included in Other expenses in the Consolidated Statements of Income on page 6.

2Q 2022 Supplemental Financial Information
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Equity LifeStyle Properties, Inc.