The Equity LifeStyle Properties Inc. (ELS) board declared a dividend of 50 cents per common share, representing, on an annualized basis, a dividend of $2.00 per common share. The dividend will be paid on April 12 to stockholders of record on March 29, according to a news release.
The board also declared a dividend of $0.421875 per depositary share, each representing 1/100 of a share of the company’s 6.75% Series C Cumulative Redeemable Perpetual Preferred Stock, which represents, on an annualized basis, a dividend of $1.6875 per depositary share. The dividend will be paid on April 1 to stockholders of record on March 21.
The board also increased the size of the board by two directors and elected Marguerite Nader and William Young to fill the vacancies created by the increase in the number of directors.
Nader, 44, has served as the company’s president and CEO since Feb. 1, 2013. She is also a member of the company’s management committee. Nader has been employed with the company since 1993.
Young, age 48, has been managing partner and co-founder of Hyperion Homes LLC and Ranieri Residential LLC, single family housing investment platforms for Ranieri Partners LLC, an investment firm, since June 2012. Young was managing director and a member of the investment committee for the distressed debt fund of Equity Group Investments from 2009 to 2011.
Equity LifeStyle Properties Inc. (ELS), the nation’s largest operator of RV parks and manufactured housing communities, is seeking to expand its RV footprint this year.
During a conference call to investors on Tuesday (Jan. 29), ELS President Marguerite Nader said the company’s RV footprint “appeals to both the Baby Boomers who are just considering retirement and those who are well under way into retirement.”
She said ELS, which serves RVers through its Encore and Thousand Trails resorts, has “an extremely loyal and vibrant customer base ranging from members who had been with us for more than 20 years to annual customers who have spent a decade with us to the RV customer who is just starting out exploring the RV lifestyle. We can meet the demand of the RVers for a quality, affordable vacation experience.”
Nevertheless, the data show these sites are underutilized, she implied.
Its right-to-use membership continued a four-year decline in 2012 and totaled 96,687 at year-end, down from 105,850 in 2009. Company guidance projects the number to decline to 95,000 this year. Members enter into right-to-use contracts with the company, which entitle them to use certain properties on a continuous basis for up to 21 days.
Paul Seavy, CFO, noted that membership dues revenue in 2012 was 4.4% less than 2011 and approximately $500,000 below company guidance. “We continue to see net attrition in the member base,” he said.
Right-to-use annual payments dropped to $47,662,000 in 2012, down about $3 million from 2009.
“Increasing utilization can be achieved by increasing our annual customers, increasing our member count and promoting additional transient business,” Nader said. “I believe in order to realize this increased utilization, it is necessary to expand our customer base through deeper relationships with distribution channels, to increase marketing campaigns for our properties and to focus on the younger customer demographic.”
This effort will encompass determining the best ways to communicate with customers from social media to grass root efforts and understanding the amenities that drive their decisions to stay at a particular property, she added.
At the same time, ELS sold approximately 10,200 Zone Park passes during the year, including approximately 1,200 membership activated as a result of the RV dealer program, which was launched in 2012.
The Zone Park Pass program, which allows access to up to four zones of the United States and requires annual payments, started in 2010 with 4,487 members. The program grew to 10,198 members in 2012 and is expected to reach 12,000 this year.
At the end of December, ELS acquired two RV resorts in the Rio Grande Valley of Texas for $25 million, or approximately $14,000 per site.
Also, ELS sold the former Cascade property in Washington State, which yielded a sale price of $49,000 per RV site. The high return prompted one investment caller to ask Nader whether the high return made the company management think its RV resorts might be more valuable than first thought. Nader implied “no,” because the sale “was a unique situation.”
Nader said there are no other RV park sales currently in the pipeline “but we certainly look at offers as they come in.”
Earlier, ELS reported favorable results for the fourth quarter and year-end 2012. Fourth-quarter funds from operations or FFO were $50.3 million, or $1.11 per share, up from $44.8 million, or $0.99 per share in the year ago quarter.
Net income available to common stockholders totaled $24.3 million or $0.58 per share, compared to a net loss of $200,000 for the same period in 2011.
Total revenue for the fourth quarter increased to $171.93 million from $162.32 million in the year ago quarter. Property operating revenues, excluding deferrals, were $167.9 million, compared to $161.1 million in the same period of 2011.
Equity LifeStyle Properties Inc. reported improved financials for its fourth quarter and full year, ended Dec. 31.
The company said fourth-quarter funds from operations (FFO) were $50.3 million, or $1.11 per share, up from $44.8 million, or 99 cents per share in the year ago quarter. For the year ended, FFO was $210 million, or $4.62 per share, compared to $147.5 million, or $3.66 per share, for the same period in 2011.
For the three months, net income available to common stockholders totaled $24.3 million or 58 cents per share, compared to a net loss of $0.2 million, or 0 cents per share, for the same period in 2011. For the year, net income totaled $54.8 million, or $1.32 per share, compared to $22.8 million, or 64 cents per share, for the same period in 2011.
Total revenues for the quarter increased to $171.93 million from $162.32 million in the year-ago quarter.
Fourth-quarter property operating revenues, excluding deferrals, were $167.9 million, compared to $161.1 million in the same period of 2011. Property operating revenues, excluding deferrals, for the year were $688.1 million, compared to $578.2 million for the previous year.
To view the entire report click here.
Equity LifeStyle Properties Inc. (ELS) acquired two properties, Victoria Palms Resort and Alamo Palms, in the Rio Grande Valley, Texas, the company announced on Dec. 28.
The two properties contain approximately 1,765 sites on approximately 175 acres for a stated purchase price of $25 million. The company funded the purchase price with available cash.
Victoria Palms is an age-restricted, 1,122-site property with 270 manufactured home sites and 853 RV sites. Alamo Palms is an age-restricted, 643-site property with 293 manufactured home sites and 350 RV sites. The acquisition will compliment ELS’ South Texas portfolio of eight properties and 5,100 sites and further strengthen its presence in the market.
As of Dec. 28, ELS owns or has an interest in 383 properties in 32 states and British Columbia consisting of 142,679 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
Equity LifeStyle Properties Inc. (ELS) reported that its third-quarter Funds From Operations (FFO) were $53.2 million, or $1.17 per share, compared to $33.0 million, or 76 cents per share, for the same period in 2011.
For the nine months, ended Sept. 30, FFO was $159.7 million, or $3.52 per share, compared to $102.7 million, or $2.64 per share, or the same period in 2011.
Net income available to common stockholders in the third quarter totaled $16 million, or 39 cents per share, compared to a net loss of $2.9 million, or 7 cents per share for the same period in 2011. Revenues for the quarter rose to $181.8 million from $164 million in the prior year quarter.
For the third quarter, property operating revenues, excluding deferrals, were $176.5 million, compared to $156.9 million in the same period of 2011. Property operating revenues, excluding deferrals, for the nine months were $520.2 million, compared to $417.0 million a year ago.
For the third quarter, core property operating revenues increased approximately 1.8% and income from core property operations increased approximately 2.6% as compared to the previous year. For the nine months ended September 30, 2012, core property operating revenues increased approximately 1.8% and income from core property operations increased approximately 2.6%.
To view the entire report click here.
Equity LifeStyle Properties Inc. (ELS) said Thursday (Oct. 18) that its Chief Executive, Thomas Heneghan, has accepted an offer to become CEO of Equity International effective in February 2013, and thus will resign as CEO of the company effective Feb. 1.
Marguerite Nader, the Chicago-based company’s current president and CFO, will be elevated to and assume all the duties of president and CEO of the company, effective Feb. 1, according to a news release
Heneghan will remain CEO of Equity LifeStyle Properties, the nation’s largest owner of RV parks and manufactured housing communities, until that date, and will work with Nader and the board to implement a seamless transition.
Heneghan, who has also served on the company’s board of directors since 2004, will remain a member of the board and effective Feb. 1 will become co-vice chairman the board along with the company’s current vice chairman Howard Walker.
Paul Seavey, who has worked for the company since 1994 and currently serves as the company’s senior vice president of finance and treasurer, has been appointed senior vice president, CFO and treasurer effective immediately, and assumes all of Nader’s responsibilities as CFO.
Patrick Waite will join the company in February as senior vice president of operations. He has extensive experience in the manufactured housing industry, in which he has worked for almost 20 years, most recently serving as senior vice president of American Residential Communities.
Equity LifeStyle Properties Inc. announced that CEO Thomas Heneghan is “reasonably likely” to accept the position of CEO of sister company Equity International with an appropriate period for transitioning through February 2013.
According to a news release, succession planning has been a continuous topic of discussion among board members, and it has “great confidence? in the company’s current president Marguerite Nader, a 20-year veteran of the company.
Equity LifeStyle Properties owns or has an interest in 382 properties in 32 states and British Columbia consisting of 141,077 sites. The company is a real estate investment trust (REIT) with headquarters in Chicago.
Sam Zell with Equity International and Equity Residential is gearing up to appoint Thomas Heneghan to the position of CEO following the departure of Gary Garrabrant a little less than a month ago. Heneghan is currently CEO with Equity LifeStyle Properties, a Chicago-based Real Estate Investment Trust (REIT) involved in the ownership of resort communities including RV and park model developments.
According to the Wall Street Journal, the appointment is subject to approval of Equity International’s investors. Furthermore, the investors could make other changes to the fund or shut it down completely. In 2011, Equity International completed the capital raise for its fifth fund, consisting of $650 million in commitments. Half of that amount has been invested or committed, but the fund guidelines prohibits Equity International from making new investments until the fund receives investor approval.
Garrabrant and Equity’s chief strategic officer Thomas McDonald left Equity International last month for undisclosed reasons. At the time Zell stepped into the role of interim CEO. Investors have six months from Garrabrant’s departure to decide to continue with the fund or to halt future capital calls.
Though Heneghan is well-liked by institutional investors and has held many positions at Equity LifeStyle (which owns resort properties used for recreational vehicles), there is a question about his international experience. Equity LifeStyle is focused on the United States, rather than international markets. Equity International investors include endowments like Duke University and Cornell University and pension funds like the Teacher Retirement System of Texas.
“We are in the process of working with our investors on a number of items and there have been no definitive decisions to date,” Zell says in a statement. “Equity International has a highly engaged ownership group that is still discussing the next steps for the business going forward.”
Equity LifeStyle Properties Inc. (ELS) and MHC Operating Limited Partnership, an Illinois limited partnership, entered into four separate equity distribution agreements to sell up to $125 million of ELS stock.
The agreements were with RBC Capital Markets LLC, RBS Securities Inc., Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc., according to a filing with the Securities and Exchange Commission (SEC).
The common stock sold in the offering will be issued pursuant to a prospectus dated May 8, 2012, and a prospectus supplement filed with the SEC on Sept. 6.
The company intends to use the proceeds from any sales in the offering for general corporate purposes, which may include the repayment of existing indebtedness, the development or acquisition of additional properties as suitable opportunities arise and the renovation, expansion and improvement of the company’s existing properties.
Chicago-based Equity LifeStyle Properties Inc. (ELS), the nation’s largest RV park owner/operator, is currently testing a rather unique new promotion involving its Thousand Trails membership-based “preserves” and a few aggressive, multi-store RV dealerships in an effort to “leverage that great lifestyle and open up to more of the RV universe.”
Woodalls Campground Management reported that it’s all part of a new “global relationship” ELS is trying to foster between the industry that produces and sells the RVs and the American public that purchases and recreates in those leisure-time products – a relationship that ELS CEO Thomas Heneghan and President and CFO Marguerite Nader feel is long overdue.
Although there are other potential new components on the table, such as social media initiatives and online parts and accessories sales, the crux of ELS’s new program is that a consumer buying an RV from any participating dealer will receive a free year’s membership to access parks in one of four zones among the 80 Thousand Trails preserves in 22 states and British Columbia.
“What we’re really trying to do is develop products in relation to the RV dealer that help him and us,” says Heneghan, whose 4,000-employee company also operates 90 Encore parks as well as some 200 manufactured home communities. “We think that buying an RV embedded with the lifestyle aspects is a natural and should be something that happens much more frequently than it does. And we designed this kind of dealer program to find RV dealerships across the U.S. that were excited about the opportunity to sell RVs to consumers along with the lifestyle that comes attached with that vehicle so that they’re getting the hotdog and the hotdog bun all at the same time.
“So, that’s been the program,” Heneghan told Woodall’s Campground Management, “but it’s really part of a larger strategy. We don’t really just want to have that one event. We want to have a relationship with the RV dealerships that understand that staying in contact with the customer – meeting that customer’s needs – is going to increase his ability to sell more vehicles over time and get that repeat buyer.”
To read the entire article click here.