Maryland
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1-11718 | 36-3857664 | ||
(State or Other Jurisdiction of |
(Commission File No.) | (IRS Employer Identification No.) | ||
Incorporation)
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Two North Riverside Plaza, Chicago, Illinois | 60606 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| the Companys ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its properties (including those recently acquired); | ||
| the Companys ability to maintain historical rental rates and occupancy with respect to properties currently owned or that the Company may acquire; | ||
| the Companys assumptions about rental and home sales markets; | ||
| in the age-qualified properties, home sales results could be impacted by the ability of potential homebuyers to sell their existing residences as well as by financial, credit and capital markets volatility; | ||
| results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; | ||
| impact of government intervention to stabilize site-built single family housing and not manufactured housing; | ||
| the completion of future acquisitions, if any, and timing with respect thereto and the effective integration of any such acquisition; | ||
| ability to obtain financing or refinance existing debt on favorable terms or at all; | ||
| the effect of interest rates; | ||
| the dilutive effects of issuing additional securities; | ||
| the effect of accounting for the entry of agreements with customers representing a right-to-use the Properties under the Codification Topic Revenue Recognition; and | ||
| other risks indicated from time to time in the Companys filings with the Securities and Exchange Commission. |
EQUITY LIFESTYLE PROPERTIES, INC. |
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By: | /s/ Thomas Heneghan | |||
Thomas Heneghan | ||||
Chief Executive Officer | ||||
By: | /s/ Michael Berman | |||
Michael Berman | ||||
Executive Vice President and Chief Financial Officer |
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CONTACT:
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Michael Berman | FOR IMMEDIATE RELEASE | ||
(312) 279-1496 | April 18, 2011 |
| the Companys ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its properties (including those recently acquired); | ||
| the Companys ability to maintain historical rental rates and occupancy with respect to properties currently owned or that the Company may acquire; | ||
| the Companys assumptions about rental and home sales markets; | ||
| in the age-qualified properties, home sales results could be impacted by the ability of potential homebuyers to sell their existing residences as well as by financial, credit and capital markets volatility; | ||
| results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; | ||
| impact of government intervention to stabilize site-built single family housing and not manufactured housing; | ||
| the completion of future acquisitions, if any, and timing with respect thereto and the effective integration of any such acquisition; | ||
| ability to obtain financing or refinance existing debt on favorable terms or at all; | ||
| the effect of interest rates; | ||
| the dilutive effects of issuing additional securities; | ||
| the effect of accounting for the entry of agreements with customers representing a right-to-use the Properties under the Codification Topic Revenue Recognition; and | ||
| other risks indicated from time to time in the Companys filings with the Securities and Exchange Commission. |
Quarters Ended | ||||||||
March 31, | March 31, | |||||||
2011 | 2010 | |||||||
Revenues: |
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Community base rental income |
$ | 66,183 | $ | 64,422 | ||||
Resort base rental income |
36,468 | 36,945 | ||||||
Right-to-use annual payments |
12,012 | 12,185 | ||||||
Right-to-use contracts current period, gross |
3,853 | 4,937 | ||||||
Right-to-use contracts, deferred, net of prior period
amortization |
(2,496 | ) | (3,948 | ) | ||||
Utility and other income |
13,062 | 12,889 | ||||||
Gross revenues from home sales |
1,357 | 1,047 | ||||||
Brokered resale revenues, net |
253 | 239 | ||||||
Ancillary services revenues, net |
1,025 | 1,063 | ||||||
Interest income |
1,039 | 1,192 | ||||||
Income from other investments, net |
699 | 1,177 | ||||||
Total revenues |
133,455 | 132,148 | ||||||
Expenses: |
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Property operating and maintenance |
44,311 | 43,454 | ||||||
Real estate taxes |
8,057 | 8,314 | ||||||
Sales and marketing, gross |
2,256 | 3,263 | ||||||
Sales and marketing, deferred commissions, net |
(1,000 | ) | (1,412 | ) | ||||
Property management |
8,463 | 8,740 | ||||||
Depreciation on real estate and other costs |
17,227 | 16,923 | ||||||
Cost of home sales |
1,419 | 1,159 | ||||||
Home selling expenses |
477 | 477 | ||||||
General and administrative |
5,647 | 5,676 | ||||||
Rent control initiatives |
112 | 714 | ||||||
Depreciation on corporate assets |
249 | 210 | ||||||
Interest and related amortization |
21,389 | 23,767 | ||||||
Total expenses |
108,607 | 111,285 | ||||||
Income before equity in income of unconsolidated
joint ventures |
24,848 | 20,863 | ||||||
Equity in income of unconsolidated joint ventures |
784 | 841 | ||||||
Consolidated income from continuing operations |
25,632 | 21,704 | ||||||
Discontinued Operations: |
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Discontinued operations |
| | ||||||
Loss from discontinued real estate |
| (177 | ) | |||||
Loss from discontinued operations |
| (177 | ) | |||||
Consolidated net income |
25,632 | 21,527 | ||||||
Income allocated to non-controlling interest Common
OP Units |
(2,621 | ) | (2,432 | ) | ||||
Income allocated to non-controlling interest
Perpetual
Preferred OP Units |
(2,801 | ) | (4,031 | ) | ||||
Redeemable Perpetual Preferred Stock Dividends |
(1,250 | ) | | |||||
Net income available for Common Shares |
$ | 18,960 | $ | 15,064 | ||||
Net income per Common Share Basic |
$ | 0.61 | $ | 0.50 | ||||
Net income per Common Share Fully Diluted |
$ | 0.61 | $ | 0.49 | ||||
Average Common Shares Basic |
30,996 | 30,304 | ||||||
Average Common Shares and OP Units Basic |
35,330 | 35,217 | ||||||
Average Common Shares and OP Units Fully Diluted |
35,609 | 35,500 |
Quarters Ended | ||||||||
Reconciliation of Net Income to FFO and FAD | March 31, | March 31, | ||||||
(amounts in 000s, except for per share data) | 2011 | 2010 | ||||||
Computation of funds from operations: |
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Net income available for Common Shares |
$ | 18,960 | $ | 15,064 | ||||
Income allocated to common OP Units |
2,621 | 2,432 | ||||||
Right-to-use contract upfront payments, deferred, net
(1) |
2,496 | 3,948 | ||||||
Right-to-use contract commissions, deferred, net(2) |
(1,000 | ) | (1,412 | ) | ||||
Depreciation on real estate assets and other |
17,227 | 16,923 | ||||||
Depreciation on unconsolidated joint ventures |
307 | 305 | ||||||
Loss on real estate |
| 177 | ||||||
Funds from operations (FFO) |
$ | 40,611 | $ | 37,437 | ||||
Non-revenue producing improvements to real estate |
(2,831 | ) | (3,379 | ) | ||||
Funds available for distribution (FAD) |
$ | 37,780 | $ | 34,058 | ||||
FFO per Common Share Basic |
$ | 1.15 | $ | 1.06 | ||||
FFO per Common Share Fully Diluted |
$ | 1.14 | $ | 1.05 | ||||
FAD per Common Share Basic |
$ | 1.07 | $ | 0.97 | ||||
FAD per Common Share Fully Diluted |
$ | 1.06 | $ | 0.96 |
(1) | The Company is required by GAAP to defer recognition of the non-refundable upfront payments from the entry of right-to-use contracts over the estimated customer life. The customer life is currently estimated to range from one to 31 years and is determined based upon historical attrition rates provided to the Company by Privileged Access. The amount shown represents the deferral of a substantial portion of current period contract sales, offset by the amortization of prior period sales. | |
(2) | The Company is required by GAAP to defer recognition of the commission paid related to the entry of right-to-use contracts. The deferred commissions will be amortized on the same method as the related non-refundable upfront payments from the entry of right-to-use contracts. The amount shown represents the deferral of a substantial portion of current period contract commissions, offset by the amortization of prior period commissions. |
Quarters Ended | ||||||||
March 31, | March 31, | |||||||
2011 | 2010 | |||||||
Community base rental income |
$ | 66,183 | $ | 64,422 | ||||
Resort base rental income |
36,468 | 36,945 | ||||||
Right-to-use annual payments |
12,012 | 12,185 | ||||||
Right-to-use contracts current period, gross |
3,853 | 4,937 | ||||||
Utility and other income |
13,062 | 12,889 | ||||||
Property operating revenues, excluding deferrals |
131,578 | 131,378 | ||||||
Property operating and maintenance |
44,311 | 43,454 | ||||||
Real estate taxes |
8,057 | 8,314 | ||||||
Sales and marketing, gross |
2,256 | 3,263 | ||||||
Property operating expenses, excluding deferrals and
Property management |
54,624 | 55,031 | ||||||
Income from property operations, excluding
deferrals and
Property management |
76,954 | 76,347 | ||||||
Property management |
8,463 | 8,740 | ||||||
Income from property operations, excluding deferrals |
$ | 68,491 | $ | 67,607 | ||||
As Of | As Of | |||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Total Common Shares and OP Units Outstanding: |
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Total Common Shares Outstanding |
31,196,318 | 30,972,353 | ||||||
Total Common OP Units Outstanding |
4,312,958 | 4,431,420 | ||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(amounts in 000s) | (amounts in 000s) | |||||||
Selected Balance Sheet Data: |
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Net investment in real estate |
$ | 1,876,362 | $ | 1,884,322 | ||||
Cash and short-term investments |
$ | 92,406 | $ | 64,925 | ||||
Total assets |
$ | 2,066,862 | $ | 2,048,395 | ||||
Mortgage notes payable |
$ | 1,407,176 | $ | 1,412,919 | ||||
Unsecured lines of credit |
$ | | $ | | ||||
Total liabilities |
$ | 1,597,124 | $ | 1,588,237 | ||||
Perpetual Preferred OP Units |
$ | | $ | 200,000 | ||||
8.034% Series A Cumulative Redeemable
Perpetual Preferred Stock |
$ | 200,000 | $ | | ||||
Total equity |
$ | 269,738 | $ | 260,158 |
Sites | ||||
Community sites |
44,200 | |||
Resort sites: |
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Annuals |
20,800 | |||
Seasonal |
8,900 | |||
Transient |
9,700 | |||
Membership (1) |
24,300 | |||
Joint Ventures (2) |
3,100 | |||
111,000 | ||||
(1) | Sites primarily utilized by approximately 106,000 members. | |
(2) | Joint Venture income is included in Equity in income from unconsolidated joint ventures. |
Quarters Ended | ||||||||
Manufactured Home Site Figures and | March 31, | March 31, | ||||||
Occupancy Averages: (1) | 2011 | 2010 | ||||||
Total Sites |
44,234 | 44,231 | ||||||
Occupied Sites |
40,006 | 39,836 | ||||||
Occupancy % |
90.4 | % | 90.1 | % | ||||
Monthly Base Rent Per Site |
$ | 551.45 | $ | 539.06 | ||||
Core (2) Monthly Base Rent Per Site |
$ | 551.51 | $ | 539.14 |
Quarters Ended | ||||||||
March 31, | March 31, | |||||||
Home Sales:(1) (Dollar amounts in thousands) | 2011 | 2010 | ||||||
New Home Sales Volume (3) |
21 | 18 | ||||||
New Home Sales Gross Revenues |
$ | 811 | $ | 424 | ||||
Used Home Sales Volume (4) |
153 | 133 | ||||||
Used Home Sales Gross Revenues |
$ | 546 | $ | 623 | ||||
Brokered Home Resale Volume |
205 | 187 | ||||||
Brokered Home Resale Revenues, net |
$ | 253 | $ | 239 |
(1) | Results of continuing operations, excludes discontinued operations. | |
(2) | The Core Portfolio may change from time-to-time depending on acquisitions, dispositions and significant transactions or unique situations. The 2011 Core Portfolio includes all Properties acquired prior to December 31, 2009 and which have been owned and operated by the Company continuously since January 1, 2010. Core growth percentages exclude the impact of GAAP deferrals of membership sales and related commission. | |
(3) | The quarter ended March 31, 2011 and 2010, includes zero and seven third-party dealer sales, respectively. | |
(4) | The quarter ended March 31, 2011 and 2010, includes zero and one third-party dealer sales, respectively. |
Net Income and FFO per Common Share Guidance | Second Quarter 2011 | Full Year 2011 | ||||||||||||||
on a fully diluted basis (unaudited): | Low | High | Low | High | ||||||||||||
Projected net income (1) |
$ | 0.20 | $ | 0.30 | $ | 1.59 | $ | 1.79 | ||||||||
Projected depreciation |
0.50 | 0.50 | 1.96 | 1.96 | ||||||||||||
Projected net deferral of right-to-use contract upfront
payments and commissions |
0.05 | 0.05 | 0.20 | 0.20 | ||||||||||||
Projected FFO |
$ | 0.75 | $ | 0.85 | $ | 3.75 | $ | 3.95 | ||||||||
(1) | Due to the uncertain timing and extent of right-to-use contracts and the resulting deferrals, actual net income could differ materially from expected net income. |