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.”
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Equity LifeStyle Properties Inc. (ELS) announced today (July 5) that, after almost 20 years of outstanding service, Ellen Kelleher, 51, executive vice president-property management, has decided to retire on Dec. 31, 2012. During the interim, she will transition her duties to others, according to a news release.
“Ellen Kelleher has been instrumental in laying this company’s foundation,” said CEO Tom Heneghan. “I am proud of what we have accomplished over the years. I wish her all the best.”
Chicago-based ELS owns or has an interest in 382 manufactured housing and RV properties in 32 states and British Columbia consisting of 141,077 sites.
In connection with Kelleher’s decision to retire, the company has made the following changes to its management team:
- Peter Underhill has been appointed senior vice president-revenue management.
- Ron Bunce has been appointed senior vice president West Operations.
- Brad Nelson has been appointed senior vice president East Operations.
- Underhill, Bunce and Nelson, each of whom has been with the company or its predecessors for more than a decade and in the industry for decades, will each report directly to Heneghan. Marguerite Nader, the company’s president and chief financial officer, will also continue to report to Heneghan.
- Seth Rosenberg has been appointed senior vice president of marketing.
- Jim Phillips has been appointed senior vice president of sales.
- Dave Kozy has been appointed vice president of customer relations.
- Rosenberg, Phillips and Kozy will each report directly to Nader.
Equity LifeStyle Properties Inc. today (May 11) announced several promotions.
According to a press release, Paul Seavey was named senior vice president of finance and treasurer. Seavey has worked for the company since 1994 serving in various roles within finance and accounting. Seavey will oversee all finance and accounting activity and most recently led the effort to raise debt and equity capital associated with the Hometown America transaction.
Martina Linders has been named vice president of investor relations and financial planning. Linders, who has worked for Equity Lifestyle Properties since 1993, will oversee investor relations and be responsible for budgeting.
Furthermore, effective May 10, Marguerite Nader has been appointed president in addition to her current role as CFO reporting to CEO Thomas Heneghan.
“These announcements reflect the deep pool of experienced talent within the company and demonstrate the company is well positioned for future success and growth,” commented Heneghan.
Equity LifeStyle Properties owns or has an interest in 382 quality properties in 32 states and British Columbia consisting of 141,081 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
Equity LifeStyle Properties Inc.’s board has declared a dividend of $0.4375 per share, representing, on an annualized basis, a dividend of $1.75 per common share. The dividend will be paid on July 13 to stockholders of record on June 29.
The board also declared a dividend of $0.502125 per share on the company’s 8.034% Series A Cumulative Redeemable Perpetual Preferred Stock, representing, on an annualized basis, a dividend of $2.0085 per preferred share.
The dividend will be paid on June 29 to stockholders of record on June 18.
Real estate investment trust Equity LifeStyle Properties Inc. (ELS: News ), Monday (April 16) reported an increase in funds from operations for the first quarter, driven primarily by revenue growth.
RTT News reported that the Chicago-based company’s funds from operations or FFO for the quarter improved to $58.7 million or $1.29 per share from $40.6 million or $1.14 per share in the same period last year. On an adjusted basis, FFO for the first quarter last year was $41.5 million or $1.17 per share.
Equity LifeStyle’s net income available to shareholders for the quarter dropped to $12.4 million or $0.30 per share from $19.0 million or $0.61 per share last year.
Total revenues for the quarter rose to $181.3 million from $135.1 million in the prior year quarter. Five analysts had consensus revenue estimate of $158.77 million for the quarter.
Property operating revenues, excluding deferrals, were $174.0 million, compared to $133.0 million in the same period a year ago.
Property operating and maintenance expenses for the quarter increased to $54.4 million from $44.3 million last year. Depreciation on real estate and other costs increased to $26.0 million from $18.2 million last year. The company recorded amortization of in-place leases for the quarter of $18.4 million, while it was absent last year.
Looking ahead to the second quarter, ELS has forecast results in a range of loss of $0.04 per share to a profit of $0.06 per share. The company also projects FFO in a range of $0.96 to $1.06 per share. Analysts currently estimate FFO of $1.00 per share for the quarter.
ELS closed Monday’s trading at $68.03, up $1.03 or 1.54%, on a volume of 0.3 million shares.
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Equity LifeStyle Properties Inc. (ELS) announced that Michael Berman has tendered his resignation as executive vice president and CFO of the company to take a similar position at General Growth Properties.
ELS said in a news release that Berman will be available to assist the company in the transition of duties for a short period of time.
The company also said that it has appointed Marguerite Nader to succeed Berman effective yesterday (Nov. 28). Nader currently serves as the company’s executive vice president – new business development and has worked for the company since 1993 serving in various roles, including asset management and sales and marketing.
Berman replaces Steve Douglas, who will return to Brookfield Asset Management after his tenure with GGP and assume a role with Brookfield. Douglas will remain with GGP until Dec. 31 to assist with the transition.
In 2003, Berman was an associate professor at the New York University Real Estate Institute. Berman was a managing director in the investment banking department at Merrill Lynch & Co. from 1997 to 2002.
With home prices and personal incomes plummeting in Southwest Florida, local governments have declared the affordable housing crisis to be over, the Sarasota Herald-Tribune reported.
The tough economy has spurred demand for lower-priced homes, which, in turn, is driving the large number of recent mobile home park deals, investors say.
This month, Equity LifeStyle Properties Inc. bought the 63-acre Lake Village mobile home park at U.S. 41 and State Road 681 in Nokomis. The park with nearly 300 home sites was sold for $23.8 million by the owner, a subsidiary of Hometown America.
In August, Equity LifeStyle paid $53.4 million for the 2,211-site Colony Cove mobile home park in Ellenton and $6 million for the 201-site Emerald Lake mobile home park in Punta Gorda.
And last month, a unit of National RV Communities LLC of Scottsdale, Ariz., bought Saralake Estates off Bahia Vista Street for $10.55 million. Saralake has nearly 200 mobile home sites.
During the boom, mobile home parks were being bought by developers who planned to shut them down and redevelop the land on which they sat.
Except for mobile home parks at key intersections, the flurry of purchases being made these days is driven by the attractiveness of investing in mobile home parks, said Charles Ellis, a principal and vice president for acquisitions at National RV.
That company was formed in 2005 and now owns 58 mobile home properties, 80% of them in Florida. It is backed by financing from General Electric Capital Corp.
“From an investor standpoint, the revenue is very stabilized,” Ellis said.
Once a mobile home is placed on a site and various improvements made, it becomes cost prohibitive to move, which translates into a stable stream of rents for investors.
National RV’s focus on Florida — most of its properties are in Manatee, Sarasota, Pinellas and Pasco counties — stems from a belief that middle-class retirees still want to retire to Florida but might not be able to afford a single-family home that costs well into the six figures.
“They’re more likely to buy a $30,000 or $100,000 park model or manufactured home,” Ellis said.
The history of mobile home park conversions makes residents at these newly acquired properties leery of the new owners, said Ellis, who noted there is a rumor at Saralake that National RV will clear the property and build a three-story medical office building there.
The rumors have not been quelled, Ellis noted, by either National RV’s history of buying and holding onto properties or by the fact that commercial office construction has all but halted in this region.
“As far as they know, I’m just some big corporation,” he said of Saralake’s residents. “We’ve owned it for three weeks now and we need to earn their trust.”
The stream of rent National RV says is so stable is improving these days, thanks to the economic downturn and the housing crisis, according to Equity LifeStyle.
In its second-quarter report, the public company that owns 111,000 home sites noted that it expected rental incomes to increase 2.7% this year. The report also noted that the extreme slowdown in new home construction was part of the reason rental demand was high, and that, in this market, it had an opportunity to convert renters into home buyers.
“The No. 1 thing with mobile home parks in the current economic crisis is affordable housing’s really in,” said Dave Reynolds, whose MHP Investment and Leasing LLC in Cedaredge, Colo., specializes in mobile home parks in the Midwest.
A key part of the housing crisis has been the difficulty many would-be buyers have in qualifying for a mortgage from a bank. But part of the investment strategy for the buyers of mobile home parks is to provide financing to park residents.
“The park owner becomes the lender,” said Reynolds, whose company also operates industry websites, such as mobilehomeparkstore.com.