UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________
FORM 10-Q
_________________________________________________________
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number: 1-11718
_________________________________________________________
(Exact Name of Registrant as Specified in Its Charter)
_________________________________________________________
| (State or other jurisdiction of incorporation) | (IRS Employer Identification Number) | ||||||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||||||||
(312 ) 279-1400
Registrant's telephone number, including area code
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
_________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
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 ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 186,078,265 shares of Common Stock as of July 21, 2022.
Equity LifeStyle Properties, Inc.
Table of Contents
| Page | ||||||||
| Item 1. | Financial Statements (unaudited) | |||||||
| Index To Financial Statements | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
2
Part I – Financial Information
Item 1. Financial Statements
Equity LifeStyle Properties, Inc.
Consolidated Balance Sheets
(amounts in thousands, except share and per share data)
| June 30, 2022 | December 31, 2021 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Investment in real estate: | |||||||||||
| Land | $ | $ | |||||||||
| Land improvements | |||||||||||
| Buildings and other depreciable property | |||||||||||
| Accumulated depreciation | ( | ( | |||||||||
| Net investment in real estate | |||||||||||
| Cash and restricted cash | |||||||||||
| Notes receivable, net | |||||||||||
| Investment in unconsolidated joint ventures | |||||||||||
| Deferred commission expense | |||||||||||
| Other assets, net | |||||||||||
| Total Assets | $ | $ | |||||||||
| Liabilities and Equity | |||||||||||
| Liabilities: | |||||||||||
| Mortgage notes payable, net | $ | $ | |||||||||
| Term loan, net | |||||||||||
| Unsecured line of credit | |||||||||||
| Accounts payable and other liabilities | |||||||||||
| Deferred membership revenue | |||||||||||
| Accrued interest payable | |||||||||||
| Rents and other customer payments received in advance and security deposits | |||||||||||
| Distributions payable | |||||||||||
| Total Liabilities | |||||||||||
| Equity: | |||||||||||
| Stockholders' Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
| Paid-in capital | |||||||||||
| Distributions in excess of accumulated earnings | ( | ( | |||||||||
| Accumulated other comprehensive income | |||||||||||
| Total Stockholders’ Equity | |||||||||||
| Non-controlling interests – Common OP Units | |||||||||||
| Total Equity | |||||||||||
| Total Liabilities and Equity | $ | $ | |||||||||
The accompanying notes are an integral part of the consolidated financial statements.
3
Equity LifeStyle Properties, Inc.
Consolidated Statements of Income and Comprehensive Income
(amounts in thousands, except per share data)
(unaudited)
| Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental income | $ | $ | $ | $ | |||||||||||||||||||
| Annual membership subscriptions | |||||||||||||||||||||||
| Membership upgrade sales current period, gross | |||||||||||||||||||||||
| Membership upgrade sales upfront payments, deferred, net | ( | ( | ( | ( | |||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Gross revenues from home sales, brokered resales and ancillary services | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Income from other investments, net | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Property operating and maintenance | |||||||||||||||||||||||
| Real estate taxes | |||||||||||||||||||||||
| Sales and marketing, gross | |||||||||||||||||||||||
| Membership sales commissions, deferred, net | ( | ( | ( | ( | |||||||||||||||||||
| Property management | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Cost of home sales, brokered resales and ancillary services | |||||||||||||||||||||||
| Home selling expenses and ancillary operating expenses | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Other expenses | |||||||||||||||||||||||
| Early debt retirement | |||||||||||||||||||||||
| Interest and related amortization | |||||||||||||||||||||||
| Total expenses | |||||||||||||||||||||||
| Loss on sale of real estate, net | ( | ||||||||||||||||||||||
| Income before equity in income of unconsolidated joint ventures | |||||||||||||||||||||||
| Equity in income of unconsolidated joint ventures | |||||||||||||||||||||||
| Consolidated net income | |||||||||||||||||||||||
| Income allocated to non-controlling interests – Common OP Units | ( | ( | ( | ( | |||||||||||||||||||
| Redeemable perpetual preferred stock dividends | ( | ( | ( | ( | |||||||||||||||||||
| Net income available for Common Stockholders | $ | $ | $ | $ | |||||||||||||||||||
| Consolidated net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Adjustment for fair market value of swap | |||||||||||||||||||||||
| Consolidated comprehensive income | |||||||||||||||||||||||
| Comprehensive income allocated to non-controlling interests – Common OP Units | ( | ( | ( | ( | |||||||||||||||||||
| Redeemable perpetual preferred stock dividends | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive income attributable to Common Stockholders | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per Common Share – Basic | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per Common Share – Fully Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average Common Shares outstanding – Basic | |||||||||||||||||||||||
| Weighted average Common Shares outstanding – Fully Diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
4
Equity LifeStyle Properties, Inc.
Consolidated Statements of Changes in Equity
(amounts in thousands)
(unaudited)
| Common Stock | Paid-in Capital | Redeemable Perpetual Preferred Stock | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests – Common OP Units | Total Equity | |||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Exchange of Common OP Units for Common Stock | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
| Issuance of Common Stock through employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Issuance of Common Stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Compensation expenses related to restricted stock and stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Repurchase of Common Stock or Common OP Units | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Adjustment for Common OP Unitholders in the Operating Partnership | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
| Adjustment for fair market value of swap | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Consolidated net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Other | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||
| Issuance of Common Stock through employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Compensation expenses related to restricted stock and stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Adjustment for Common OP Unitholders in the Operating Partnership | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
| Adjustment for fair market value of swap | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Consolidated net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Other | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
5
Equity LifeStyle Properties, Inc.
Consolidated Statements of Changes in Equity
(amounts in thousands)
(unaudited)
| Common Stock | Paid-in Capital | Redeemable Perpetual Preferred Stock | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling interests – Common OP Units | Total Equity | |||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Exchange of Common OP Units for Common Stock | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
| Issuance of Common Stock through employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Compensation expenses related to restricted stock and stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Repurchase of Common Stock or Common OP Units | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Adjustment for fair market value of swap | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Consolidated net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Other | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2021 | ( | ||||||||||||||||||||||||||||||||||||||||
| Exchange of Common OP Units for Common Stock | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
| Issuance of Common Stock through employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Compensation expenses related to restricted stock and stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Adjustment for Common OP Unitholders in the Operating Partnership | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
| Adjustment for fair market value of swap | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Consolidated net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Other | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
6
Equity LifeStyle Properties, Inc.
Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited)
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash Flows From Operating Activities: | |||||||||||
| Consolidated net income | $ | $ | |||||||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||||||||||
| Loss on sale of real estate, net | |||||||||||
| Early debt retirement | |||||||||||
| Depreciation and amortization | |||||||||||
| Amortization of loan costs | |||||||||||
| Debt premium amortization | ( | ( | |||||||||
| Equity in income of unconsolidated joint ventures | ( | ( | |||||||||
| Distributions of income from unconsolidated joint ventures | |||||||||||
| Proceeds from insurance claims, net | |||||||||||
| Compensation expense related to incentive plans | |||||||||||
| Revenue recognized from membership upgrade sales upfront payments | ( | ( | |||||||||
| Commission expense recognized related to membership sales | |||||||||||
| Changes in assets and liabilities: | |||||||||||
| Notes receivable, net | ( | ( | |||||||||
| Deferred commission expense | ( | ( | |||||||||
| Other assets, net | |||||||||||
| Accounts payable and other liabilities | |||||||||||
| Deferred membership revenue | |||||||||||
| Rents and other customer payments received in advance and security deposits | |||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash Flows From Investing Activities: | |||||||||||
| Real estate acquisitions, net | ( | ( | |||||||||
| Proceeds from disposition of properties, net | ( | ||||||||||
| Investment in unconsolidated joint ventures | ( | ( | |||||||||
| Distributions of capital from unconsolidated joint ventures | |||||||||||
| Proceeds from insurance claims | |||||||||||
| Capital improvements | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
The accompanying notes are an integral part of the consolidated financial statements.
7
Equity LifeStyle Properties, Inc.
Consolidated Statements of Cash Flows (continued)
(amounts in thousands)
(unaudited)
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash Flows From Financing Activities: | |||||||||||
| Proceeds from stock options and employee stock purchase plan | |||||||||||
| Gross proceeds from the issuance of common stock | |||||||||||
| Distributions: | |||||||||||
| Common Stockholders | ( | ( | |||||||||
| Common OP Unitholders | ( | ( | |||||||||
| Preferred Stockholders | ( | ( | |||||||||
| Share based award tax withholding payments | ( | ( | |||||||||
| Principal payments and mortgage debt repayment | ( | ( | |||||||||
| Mortgage notes payable financing proceeds | |||||||||||
| Term loan repayment | ( | ||||||||||
| Term loan proceeds | |||||||||||
| Line of Credit repayment | ( | ( | |||||||||
| Line of Credit proceeds | |||||||||||
| Debt issuance and defeasance costs | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Net cash (used in) provided by financing activities | ( | ||||||||||
| Net (decrease) increase in cash and restricted cash | ( | ||||||||||
| Cash and restricted cash, beginning of year | |||||||||||
| Cash and restricted cash, end of period | $ | $ | |||||||||
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Supplemental Information: | |||||||||||
| Cash paid for interest | $ | $ | |||||||||
| Net investment in real estate – reclassification of rental homes | $ | $ | |||||||||
| Other assets, net – reclassification of rental homes | $ | ( | $ | ( | |||||||
| Real estate acquisitions: | |||||||||||
| Investment in real estate | $ | ( | $ | ( | |||||||
| Notes receivable, net | ( | ||||||||||
| Other assets, net | ( | ||||||||||
| Deferred revenue - sale of right-to-use contracts | |||||||||||
| Accrued expenses and accounts payable | |||||||||||
| Other liabilities | |||||||||||
| Rents and other customer payments received in advance and security deposits | |||||||||||
| Real estate acquisitions, net | $ | ( | $ | ( | |||||||
| Real estate dispositions: | |||||||||||
| Investment in real estate | $ | $ | |||||||||
| Loss on sale of real estate, net | ( | ||||||||||
| Real estate dispositions, net | $ | $ | ( | ||||||||
The accompanying notes are an integral part of the consolidated financial statements.
8
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 1 – Organization and Basis of Presentation
Equity LifeStyle Properties, Inc. (“ELS”), a Maryland corporation, together with MHC Operating Limited Partnership (the “Operating Partnership”) and its other consolidated subsidiaries (the “Subsidiaries”), are referred to herein as “we,” “us,” and “our”. We are a fully integrated owner of lifestyle-oriented properties (“Properties”) consisting of property operations and home sales and rental operations primarily within manufactured home (“MH”) and recreational vehicle (“RV”) communities and marinas. We have a unique business model where we own the land which we lease to customers who own manufactured homes and cottages, RVs and/or boats either on a long-term or short-term basis. Our customers may lease individual developed areas (“Sites”) or enter into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays.
Our Properties are owned primarily by the Operating Partnership and managed internally by affiliates of the Operating Partnership. ELS is the sole general partner of the Operating Partnership, has exclusive responsibility and discretion in management and control of the Operating Partnership and held a 95.2 % interest as of June 30, 2022. As the general partner with control, ELS is the primary beneficiary of, and therefore consolidates, the Operating Partnership.
The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Securities and Exchange Commission (“SEC”) rules and regulations for Quarterly Reports on Form 10-Q. Accordingly, they do not include all of the information and note disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.
Intercompany balances and transactions have been eliminated. All adjustments to the unaudited interim consolidated financial statements are of a normal, recurring nature and, in the opinion of management, are necessary for a fair presentation of results for these interim periods. Revenues and expenses are subject to seasonal fluctuations and accordingly, quarterly interim results may not be indicative of full year results. Certain prior period amounts have been reclassified on our unaudited interim consolidated financial statements to conform with current year presentation.
Note 2 – Summary of Significant Accounting Policies
(a) Revenue Recognition
9
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2 – Summary of Significant Accounting Policies (continued)
Annual membership subscriptions and membership upgrade sales are accounted for in accordance with ASC 606, Revenue from Contracts with Customers. Membership subscriptions provide our customers access to specific Properties for limited stays at a specified group of Properties. Payments are deferred and recognized on a straight-line basis over the one-year period during which access to Sites at certain Properties is provided. Membership subscription receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Membership upgrades grant certain additional access rights to the customer and require non-refundable upfront payments. The non-refundable upfront payments are recognized on a straight-line basis over 20 years. Financed upgrade sales (also known as contract receivables) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses.
Income from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. We have a limited program under which we purchase loans made by an unaffiliated lender to homebuyers at our Properties. Financed home sales (also known as chattel loans) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses.
(b) Restricted Cash
Note 3 – Leases
Lessor
The leases entered into between the customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:
(amounts in thousands) | As of June 30, 2022 | |||||||
| 2022 | $ | |||||||
| 2023 | ||||||||
| 2024 | ||||||||
| 2025 | ||||||||
| 2026 | ||||||||
| Thereafter | ||||||||
| Total | $ | |||||||
Lessee
We lease land under non-cancelable operating leases at 14 Properties expiring at various dates between August 31, 2022 and 2054. For additional information regarding the Westwinds and Nicholson Plaza ground leases that expire August 31, 2022, see Part 1. Item 1. Note 11. Commitments and Contingencies. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended June 30, 2022 and 2021, total operating lease payments were $2.9 million and $2.6 million, respectively. For the six months ended June 30, 2022 and 2021, total operating lease payments were $5.5 million and $5.1 million, respectively.
10
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 3 – Leases (continued)
The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of June 30, 2022:
| As of June 30, 2022 | ||||||||||||||||||||
(amounts in thousands) | Ground Leases | Office and Other Leases | Total | |||||||||||||||||
| 2022 | $ | $ | $ | |||||||||||||||||
| 2023 | ||||||||||||||||||||
| 2024 | ||||||||||||||||||||
| 2025 | ||||||||||||||||||||
| 2026 | ||||||||||||||||||||
| Thereafter | ||||||||||||||||||||
| Total undiscounted rental payments | ||||||||||||||||||||
| Less imputed interest | ( | ( | ( | |||||||||||||||||
| Total lease liabilities | $ | $ | $ | |||||||||||||||||
Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within and on the Consolidated Balance Sheets, were $26.8 million and $28.8 million, respectively, as of June 30, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8 % at June 30, 2022.
ROU assets and lease liabilities from our operating leases, included within and on the Consolidated Balance Sheets, were $30.3 million and $30.7 million, respectively, as of December 31, 2021. The weighted average remaining lease term for our operating leases was seven years and the weighted average incremental borrowing rate was 3.8 % at December 31, 2021.
Note 4 – Earnings Per Common Share
The following table sets forth the computation of basic and diluted earnings per share of common stock for the quarters and six months ended June 30, 2022 and 2021:
| Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (amounts in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Numerators: | ||||||||||||||||||||||||||
| Net income available for Common Stockholders – Basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Amounts allocated to non controlling interest (dilutive securities) | ||||||||||||||||||||||||||
| Net income available for Common Stockholders – Fully Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
| Denominators: | ||||||||||||||||||||||||||
| Weighted average Common Shares outstanding – Basic | ||||||||||||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||||||||
| Exchange of Common OP Units for Common Shares | ||||||||||||||||||||||||||
| Stock options and restricted stock | ||||||||||||||||||||||||||
| Weighted average Common Shares outstanding – Fully Diluted | ||||||||||||||||||||||||||
| Earnings per Common Share – Basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Earnings per Common Share – Fully Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Note 5 – Common Stock and Other Equity Related Transactions
Common Stockholder Distribution Activity
11
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 5 – Common Stock and Other Equity Related Transactions (continued)
| Distribution Amount Per Share | For the Quarter Ended | Stockholder Record Date | Payment Date | |||||||||||||||||
| $ | March 31, 2021 | March 26, 2021 | April 9, 2021 | |||||||||||||||||
| $ | June 30, 2021 | June 25, 2021 | July 9, 2021 | |||||||||||||||||
| $ | September 30, 2021 | September 24, 2021 | October 8, 2021 | |||||||||||||||||
| $ | December 31, 2021 | December 31, 2021 | January 14, 2022 | |||||||||||||||||
| $ | March 31, 2022 | March 25, 2022 | April 8, 2022 | |||||||||||||||||
| $ | June 30, 2022 | June 24, 2022 | July 8, 2022 | |||||||||||||||||
Equity Offering Program
On February 24, 2022, we entered into our current at-the-market (“ATM”) equity offering program with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our common stock, par value $0.01 per share, having an aggregate offering price of up to $500.0 million. Prior to the new program, the aggregate offering price was up to $200.0 million.
The following table presents the shares that were issued under our prior ATM equity offering program during the quarter ended March 31, 2022.
(amounts in thousands, except share data) | |||||
| Shares of common stock sold | |||||
| Weighted average price | $ | ||||
| Total gross proceeds | $ | ||||
| Commissions paid to sales agents | $ | ||||
There has been no ATM activity under the current ATM equity offering program during the six months ended June 30, 2022 and as of June 30, 2022, the full capacity remained available for issuance. There was no ATM equity activity during the six months ended June 30, 2021.
Exchanges
Subject to certain limitations, OP Unit holders can request an exchange of any or all of their OP Units for shares of Common Stock at any time. Upon receipt of such a request, we may, in lieu of issuing shares of Common Stock, cause the Operating Partnership to pay cash. During the six months ended June 30, 2022 and 2021, 8,640 and 1,386,716 OP Units, respectively, were exchanged for an equal number of shares of Common Stock.
Note 6 – Investment in Real Estate
Acquisitions
2022
On February 18, 2022, we completed the acquisition of Blue Mesa Recreational Ranch, a 385 -site membership RV community located in Gunnison, Colorado, and Pilot Knob RV Resort a 247 -site RV community located in Winterhaven, California for a combined purchase price of $15.9 million. The acquisition was funded with available cash.
On June 1, 2022 we completed the acquisition of a nine acre vacant land parcel in Sarasota, Florida, adjacent to one of our properties, for a purchase price of $2.3 million. The acquisition was funded with available cash.
On June 15, 2022 we completed the acquisition of Holiday Trav-L-Park Resort, a 299 -site oceanfront RV community located in Emerald Isle, North Carolina for a purchase price of $50.7 million. The acquisition was funded with available cash and debt financing from the unsecured line of credit.
12
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 7 – Investments in Unconsolidated Joint Ventures
The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically as of June 30, 2022 and December 31, 2021, respectively):
| Investment as of | Income/(Loss) for the Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Investment | Location | Number of Sites | Economic Interest (a) | June 30, 2022 | December 31, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||
| Meadows | Various (2,2) | % | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Lakeshore | Florida (3,3) | (b) | ||||||||||||||||||||||||||||||||||||||||||
| Voyager | Arizona (1,1) | % | (c) | |||||||||||||||||||||||||||||||||||||||||
| ECHO JV | Various | % | ||||||||||||||||||||||||||||||||||||||||||
| RVC | Various | % | ( | |||||||||||||||||||||||||||||||||||||||||
| Mulberry Farms | Various | % | (d) | |||||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
_____________________
(a)The percentages shown approximate our economic interest as of June 30, 2022. Our legal ownership interest may differ.
(b)Includes two joint ventures in which we own a 65 49 % interest.
(c)Consists of a 33 % interest in the utility plant servicing Voyager RV Resort. On October 14, 2021, we completed the acquisition of the remaining 50 % interest in Voyager RV Resort.
(d)On January 18, 2022, we acquired a 50 % equity interest in an entity developing an age-restricted community in Prescott Valley, Arizona.
We received approximately $2.0 million and $1.7 million in distributions from our unconsolidated joint ventures for the six months ended June 30, 2022 and 2021, respectively. Approximately $0.8 million and $1.5 million of the distributions made to us exceeded our basis in our unconsolidated joint ventures for the six months ended June 30, 2022 and 2021, respectively, and as such, were recorded as income from unconsolidated joint ventures.
Note 8 – Borrowing Arrangements
Mortgage Notes Payable
Our mortgage notes payable is classified as Level 2 in the fair value hierarchy. The following table presents the fair value of our mortgage notes payable:
| As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||
(amounts in thousands) | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||
| Mortgage notes payable, excluding deferred financing costs | $ | $ | $ | |||||||||||||||||||||||