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Equity LifeStyle Reports Lower Q3 FFO Results

Posted By RVBusiness On October 18, 2011 @ 10:58 am In Breaking News | No Comments

Equity LifeStyle Properties Inc. today (Oct. 18) announced results for the three and nine months ended Sept. 30.

For the three months, Funds From Operations (FFO) were $31.8 million or 73 cents per share, compared to $32.7 million or 92 cents per share for the same period in 2010.

For the nine months ended Sept. 30, FFO was $99.7 million, or $2.57 per share, compared to $97.3 million, or $2.74 per share for the same period in 2010.

Excluding approximately $15.2 million and $17.3 million in transaction costs incurred in connection with property acquisitions during the three and nine months ended Sept. 30, respectively, FFO would have been $47.0 million and $117.0 million, or $1.08 and $3.01 per share, respectively.

Net loss available to common stockholders totaled $2.9 million, or 7 cents per share for the three months ended Sept. 30, compared to net income available to common stockholders of $11.6 million, or 37 cents per share for the same period in 2010. Net income available to common stockholders totaled $22.9 million, or 67 cents per share for the nine months ended Sept. 30, compared to $32.6 million, or $1.06 per share for the same period in 2010.

Excluding approximately $15.2 million and $17.3 million in transaction costs incurred in connection with the acquisition, net income available to common stockholders would have been $12.4 million and $40.3 million, or 28 cents and $1.04 per share for the three and nine months ended Sept. 30, respectively.

Portfolio Performance

For the three months ended Sept. 30, property operating revenues, excluding deferrals, were $154.6 million, compared to $130.6 million in the same period in 2010. Property operating revenues for the nine months ended Sept. 30 were $411.8 million, compared to $385.6 million for the same period in 2010. Property operating revenues include approximately $22.1 million of property operating revenues from 58 properties acquired during the three months ended Sept. 30.

For the three months ended Sept. 30, core property operating revenues increased approximately 1.5% as compared to the same period in 2010. Core property operating expenses for the three months ended Sept. 30 decreased approximately 0.7%, resulting in an increase of approximately 4.1% to income from Core property operations over the same period in 2010. For the nine months ended Sept. 30, core property operating revenues increased approximately 1% and core property operating expenses decreased approximately 0.7%, resulting in an increase of approximately 2.8% to income from core property operations over the same period in 2010.

Storm Damage

A number of the company’s locations on the east coast of the United States were closed during the weekend of Aug. 27 due to power outages and other weather related issues caused by Hurricane Irene and a few properties remained closed over the Labor Day holiday weekend. As a result of Hurricane Irene, the company’s income from core property operations was approximately $600,000 less than expected due to the costs associated with the cleanup of flood damage and other items such as wind blown debris, falling trees and tree branches as well as reduced transient RV income due to property closures.

Asset-related Transactions

In the third quarter, ELS closed on 58 of the acquisition properties and certain Home Related Assets associated with the properties for $1.047 billion.

During October, the company closed on three more of the acquisition properties and certain Home-related assets for approximately $110 million.

The company expects to close on 14 of the remaining acquisition properties on or before Nov. 1.

Balance Sheet

Cash balance as of Sept. 30 was approximately $213.0 million. ELS expects to use most of the cash balance on the completion of the acquisition during the fourth quarter of 2011.

Guidance

The company’s annualized dividend for 2011 is $1.50 per common share. At the next quarterly board of directors meeting, management of the company intends to recommend an increase of 25 cents per common share to the annual dividend for 2012 for a total dividend of $1.75 per common share.

As of Oct. 17, ELS owns or has an interest in 368 properties in 32 states and British Columbia consisting of 136,100 sites.

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