Equity LifeStyle Properties Inc. (ELS), a real estate investment trust (REIT) based in Chicago, reported a decrease in Funds From operations (FFO) for its third quarter, ended Sept. 30.
Equity LifeStyle Properties Inc. reported that third-quarter funds from operations, or FFO, decreased to $20.4 million, or 22 cents per share, from $53.2 million, or 58 cents per share, in the same period last year. Normalized FFO for the quarter was $59.4 million or $0.65 per share.
Net income available for common stockholders increased to $29.9 million, or 36 cents per share, from $16 million, or 19 cents per share last year.
Operating revenues totaled $176.4 million, up 3.5% from $170.4 million last year. Analysts expected revenues of $173.38 million.
ELS owns or has an interest in 376 quality properties in 32 states and British Columbia consisting of 138,869 sites.
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Equity LifeStyle Properties Inc. today (Aug. 2) announced the closing of two transactions.
According to a press release, the company completed the sale of 10 manufactured home communities in Michigan collectively containing approximately 4,925 sites. These assets, acquired as part of the $1.5 billion Hometown acquisition in 2011, were ultimately targeted for disposition because “they did not satisfy our core business strategy.” Overall occupancy has remained around 70% since the acquisition with approximately 37% of the occupancy consisting of rental homes and home loans owned.
ELS also expects to close the sale of one additional community, also located in Michigan, containing 419 sites during the third quarter of 2013. The closing of the sale of the remaining community in Michigan is subject to customary closing conditions and no assurances can be given that the disposition will be completed in accordance with the anticipated timing or at all. The sale price for all 11 communities is approximately $165 million and ELS expects to recognize a gain of approximately $41 million.
In addition, the company acquired three manufactured home communities located in the Chicago metropolitan area collectively containing approximately 1,207 sites for a purchase price of $102 million. ELS funded the purchase price with available cash and limited partnership interests in our operating partnership.
CEO Marguerite Nader noted, “We are pleased with the execution on these transactions. We were able to redeploy capital from our sale of assets in noncore markets into three high-quality manufactured home communities in the Chicagoland area to complement our existing assets in this market.”
Equity LifeStyle Properties Inc. (ELS) announced Tuesday (June 25) that its board of directors has declared a two-for-one stock split of its common stock.
The stock split will be in the form of a stock dividend payable on July 15 to stockholders of record as of July 5, according to a news release.
Holders of ELS common stock will receive an additional share for each share of common stock they hold as of the record date. The stock split will increase the total number of ELS outstanding shares of common stock and operating partnership units from approximately 41,700,000 and 3,700,000 to approximately 83,400,000 and 7,400,000, respectively.
Equity LifeStyle Properties Inc. (ELS) today (June 3) announced that the company has entered into agreements to obtain $435 million in new mortgage loans from institutional lenders. According to a press release, the loans will be secured by mortgages on 25 manufactured home and RV properties and, in total, are expected to bear a blended interest rate of 4.3% per annum, and to have maturities ranging from 10 to 25 years with a weighted average maturity of approximately 18 years.
ELS said that proceeds from the financing will be used to repay debt with a weighted average effective interest rate of 5.7%. This includes its remaining 2013 debt maturities as well as approximately $102 million maturing in 2014 and approximately $295 million maturing in 2015. The company plans to use available cash to pay approximately $37 million in defeasance costs related to the early repayment of debt. The financing is expected to close in stages beginning in the second quarter of 2013 with the final closing expected to occur in April 2014.
CEO Marguerite Nader stated, “The current financing environment offers an opportunity to obtain long-term financing for our RV and MH assets at historically low interest rates. This transaction allows us to reduce our overall cost of debt to 5.3% and extend our weighted average maturities from 4.5 years to more than 7 years. In addition, through this transaction we expect to restructure our debt maturities so that we have no more than $300 million maturing in any single year going forward.”
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.
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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%.
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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.