Thousand Trails is now offering unlimited access to many of its camping preserves through an annual Zone Park Pass launched in honor of Thousand Trails’ 40th anniversary. Starting at $499, pass holders can access between 18 and 81 properties a year, depending on which specific zone or zones they choose, the RV News Service reported.
“We listened to our customers and potential customers,” said Joe McAdams, president of Equity LifeStyle Properties Inc., the parent company of Thousand Trails. “They have told us they want to stay with us, they want to experience the freedom to visit multiple Thousand Trails locations and to use the wide array of amenities we offer. Many RVers and campers want the increased flexibility that comes with an annual pass type program.”
Each Zone Park Pass covers a zone, or region, of Thousand Trails’ campgrounds in the United States: Northeast, Southeast, Northwest and Southwest/California.
Traditional memberships to Thousand Trails with expanded usage rights and benefits are also still offered.
Thousand Trails is known for its beautiful facilities, most in scenic locations with spacious campsites, abundant social activities including barbecues, ice cream socials, pancake breakfasts, wine tastings, family games and countless other special events. Preserve amenities include large swimming pools, spas, hiking trails, lodges, lakes, miniature golf, fishing and boating. Campsites offer electrical, water, and sewer connections for RVs, barbecue pits, restroom and shower facilities. Resorts are located in secure gated environments with park rangers who watch out for members’ safety.
More information about the new zone program is available at the Thousand Trails’ website, www.ThousandTrails.com.
The campground business has been the most resilient sector of the travel and tourism business throughout the recession. But it’s not just because campgrounds offer the most affordable vacation option, according to The Daily Exchange, Waterloo, Ontario.
“Campgrounds increasingly offer rental accommodations, so they’re no longer solely dependent on tent campers and RV owners,” said Linda Profaizer, president and CEO of the National Association of RV Parks and Campgrounds (ARVC), adding that roughly a third of America’s campgrounds now offer park model rental accommodations.
But most campgrounds aren’t building their own rental accommodations from scratch. In most cases, they are ordering factory-built cabins and cottages, which are being delivered to their parks just in time for the camping season.
Many of them look like miniature log or cedar-sided cabins. But these 400-square-foot units are actually recreational park trailers or “park models,” and are technically classified as recreational vehicles.
“They’re completely turnkey,” said William Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA), which represents park model manufacturers. “All the campground owner has to do is hook each unit up to the utilities and they’re ready to rent.”
And, perhaps best of all, since “park models” are technically classified as recreational vehicles, they do not require building permits in most jurisdictions, so campgrounds can literally order them over the phone and have them delivered to their parks within a matter of weeks.
“Manufacturers construct these units in factories to conform with approximately 500 safety requirements contained in the National Safety Standard for recreational park trailers,” Garpow said.
Industry insiders see the campground industry’s increasing investments in park models and other rental accommodations as a shrewd business move, particularly given rising fuel costs and the dramatic decline in towable and motorized RV sales in recent years as a result of the recession.
“To a certain extent, the campground industry has insulated itself from the economic downturn by installing rental units,” Profaizer said.
Indeed, by providing rental accommodations, campgrounds are drawing not only tenters and RVers, but anyone who would normally stay in a hotel or motel while they travel.
“With park model cabin rentals, we can appeal to families who don’t have to worry about going out and purchasing an RV or having a tow vehicle or whatever the case may be. They can just get in their car and come to one of our parks,” said Rob Schutter, COO of Milford, Ohio-based Leisure Systems Inc., which franchises Jellystone Park Camp-Resorts.
Campgrounds have been gradually investing in park model cabins and other rental accommodations for many years. But the focus on rentals has intensified in recent years.
In fact, the competition for campground business has become so fierce that park model manufacturers are facing increasing competition from RV manufacturers, who are now marketing some of their own products as rental accommodations for campgrounds.
For more than 13 years, in fact, the Breckenridge Division of Damon Corp. in Nappanee, Ind., was the only Thor Industries Inc. subsidiary that produced rental accommodations for campgrounds. Now there are four Thor subsidiaries vying for a piece of the campground rental business, with Topeka, Ind.-based CrossRoads RV, Goshen, Ind.-based Keystone RV Co. and Jackson Center, Ohio-based Airstream Inc. each competing for a piece of the campground accommodations business along with Breckenridge.
Some of the major campground chains, for their part, are busy working out exclusive arrangements with leading park model manufacturers, which are building custom-designed rental units for their parks.
Phoenix, Ariz.-based Cavco Industries Inc., for example, is building units for Kampgrounds of America Inc. (KOA), while CrossRoads RV recently landed an agreement to build custom designed park models for Yogi Bear’s Jellystone Park Camp-Resorts. Another RV resort developer, Memphis, Tenn.-based RVC Outdoor Destinations, is working with Athens Park Homes in Athens, Texas, to furnish its resorts with park models.
But while some see the growing demand for rental units in campgrounds as a result of rising fuel costs and declining RV sales, it also reflects significant sociological changes taking place across the United States, Profaizer said.
“Families are increasingly time deprived and the dynamics of the summer vacation have changed,” she said. “People are camping closer to home because they don’t have as much time off to take extended trips across the country. Oftentimes, both parents are working and their kids are often involved in extracurricular activities, which limit their ability to travel.”
In addition, she said, many families are finding that it’s easier and more convenient to rent a cabin for a weekend getaway than to spend their limited free time packing, setting up and taking down tent camping equipment. For others, she said, having a cabin rental gives them an opportunity to experience camping in the great outdoors even if they don’t have an RV.
Schutter of Leisure Systems said campgrounds are also finding that park model rentals are particularly appealing to women, especially mothers. “In our particular system,” he said, “one of the major decision makers is Mom. And Mom finds all the comforts of home in these units. That’s a big selling point.”
Thomas Heneghan, CEO of Equity LifeStyle Properties Inc., also said park model accommodations have wide market appeal. “In today’s economy,” he said, “the park model extends the outstanding value and experience of the outdoor lifestyle to families who are either unfamiliar with tent camping or RVing or who prefer the conveniences offered by staying in a park model.” He added that park models “allow one to have all of the comforts and conveniences of home with the ability to have a change of scenery and reconnect with family.”
Park model manufacturers, for their part, find it behooves them to pay attention to campgrounds and their growing accommodations needs.
“Many of our manufacturers are literally racing to get these units in place in time for the summer camping season,” said Garpow of RPTIA, adding that the pre-summer rush can be a nail-biter for campgrounds, many of which have already booked the park models they have ordered for this summer.
Such is the case at West Glacier KOA in Glacier, Mont., which just received six park model cabins in late April. “We’re hooking them up to septic and electric utilities right now,” said park co-owner Theresa McClure, adding that five of the six units are already booked May 14, when the park opens for the summer camping season.
“It’s just crazy,” McClure said of consumer demand for park model cabins, which KOA markets as Kamping Lodges. “We could probably put in 12 and they’d all be booked.”
Wells Fargo said it downgraded the stock of Equity Lifestyle Properties Inc. (ELS) from Outperform to Market Perform. Valuation range $54-56 from $52-53.
A Wells Fargo analyst said, “While the company remains in solid position to maintain its cash flow stability given the nature of its rental stream, the stock has now reached our valuation range and we are downgrading to Market Perform as shares appear fully valued, in our view. We are reducing our 2010 FFO estimate by $0.05 to $3.45/shr and our 2011 FFO estimate by $0.04 to $3.55/shr.”
To see all the upgrades/downgrades on shares of ELS, click here.
The stock closed Thursday (April 22) at $55.99 on volume of 486,000 shares, well above the average daily volume of 223,939.
Meanwhile, ELS is currently trading above its 50-day moving average of $52.68 and above its 200-day moving average of $47.05, notes SmartTrend.
SmarTrend is bullish on shares of ELS and its subscribers received an Uptrend alert on March 5 at $50.88, which has returned 10% to date.
Chicago-based ELS is an integrated owner and operator of RV parks and manufactured housing communities.
Publicly held Equity LifeStyle Properties Inc. (ELS), a Chicago-based real estate investment trust (REIT) that operates Encore and Thousand Trails RV parks and membership resorts as well as ELS manufactured home communities, is a national powerhouse in the camping business.
Yet, ELS, which generated $475 million in revenue in 2009, retains a rather low profile for a company of its stature within the RV park and campground sector.
Joe McAdams, ELS’ outspoken and sometimes flamboyant president, is about to change all that by better promoting the overall brand of ELS, which predominately owns and operates resorts in Sunbelt states and near major East Coast metropolitan areas.
”One of the biggest problems I have is a brand name problem because people don’t know how good I (ELS) am,” McAdams told RVBUSINESS.com. ”People have been coming back to Tropical Palms (Orlando, Fla.) resort for 30 years because they like the park. They don’t care who owns it – that it’s part of ELS. They are coming back to Tropical Palms.
”We are a national-scope company. We are going to promote ourselves on TV where you have to have brand identification – a national identity.”
McAdams estimates that more than 750,000 people last year spent time at ELS properties – under names such as Encore, Sunburst, Outdoor World Resorts and Mid-Atlantic Resorts – that serve the RV resort and membership campground communities.
A newspaper and magazine publishing veteran, McAdams himself has been guiding ELS for two years. He joined Adams Publishing in 1987 as president of a group of small Michigan newspapers and from 1989 to 2003 was president of privately held Affinity Group Inc., owner of the Good Sam Club, Coast to Coast Resorts, the Trailer Life and Woodall’s directories and a group of RV, powersports and boating-related magazines that include Trailer Life, MotorHome, Highways, RVBusiness, Boating Industry, Powersports News and Woodall’s Campground Management.
A dynamic talker with a thick Arkansas accent, McAdams in 2004 joined the board of Manufactured Home Communities, which subsequently changed its name to Equity LifeStyle Properties. In 2006, while serving on the ELS board, McAdams bought the Thousand Trails membership resort chain. He was hired in 2008 as ELS president while continuing to operate Thousand Trails resorts, which ELS purchased eight months later.
A change in emphasis that already was underway when McAdams signed on to lead ELS has escalated since his arrival. ”When I came here in ’04, we were primarily a manufactured home community,” McAdams said. ”We looked around and thought that RV resorts are better. They’re more sticky, they’re younger, so we started buying RV resorts.”
In 2003, ELS had 128 manufactured home properties and 14 RV campgrounds and resorts. By the end of last year, ELS had increased its RV resort inventory to 88 Encore and 80 Thousand Trail properties with 64,000 sites while still owning 136 manufactured home communities.
”In effect, we have shifted our business from being a trailer park company to being an RV company – a lifestyle company,” McAdams said. ”Where ELS had been getting in trouble is that the average age of people in the manufactured home communities is something like 72 years old. They were throwing the keys at us because they get too sick to be in Florida and they have to go back to Elkhart to be with their grandkids because somebody’s got to take care of them.”
Encore parks are open to the public, while Thousand Trails is a nationwide membership resort system. ”The majority of our resorts are within a 45-mile drive of major metropolitan areas,” McAdams said.
To get a better handle on the latest news at ELS, RVBusiness Publisher Sherm Goldenberg recently visited in downtown Chicago with McAdams and new Senior Vice President Seth B. Rosenberg, the former president of ReserveAmerica and general manager of ActiveOutdoors. Here are the highlights – on the record – of that fascinating visit.
RVB: ELS serves more than one market, doesn’t it?
McAdams: We go after two market segments – the RV and outdoor enthusiast and we’re also focused on the senior retiree. In the economic retirement community, there is nobody like us. And frankly, in the upper-end RV resort destination, we are unique. We are a solution company to both of those – the economic retiree as well as the RV guy.
RVB: How have your various properties performed lately?
McAdams: The RV segment of our business has shown consistent growth in spite of this recession. RV people have a passion for the lifestyle and they have invested in the vehicle. The housing side of our business has really been hurt by the inability of people to finance (manufactured) homes and the inability of people migrating to our markets to sell their (primary) houses. We have addressed that by renting our inventory. That gives us occupancy and helps the growth on that side.
RVB: Even though they are separate markets, they converge at some point, don’t they?
McAdams: We like both businesses because they sort of compliment each other. The RV guy from Ann Arbor, Mich., goes there. He likes the surroundings. He starts going down there for the season and then decides to buy a home from us. Our product flexibility allows us to do that. We start out with a lot of customers renting something from us. And then they may become a member, and if they see what they want to buy, they can turn their membership in to us as a trade-in and they can buy the house or the park model or even the RV site.
RVB: We should point out that ELS has been succeeding during a recession when RV sales have taken their worst hit in more than 30 years.
Rosenberg: The key is the installed base. There are 8 million RVs on the road. We are not relying on new sales. New sales are wonderful and help absolutely, but there are 8 million RVs on the road today. Campers want more amenities; they want a cleaner experience – that literally can mean less dirt.
If they spend $250,000 on a motorhome, they want to park on cement, not drive in on a dirt road, and when they get there they want a store and a pool and someone there who is happy to help. That’s why you’ve seen the privately owned parks incredibly well positioned to go where we’ve all shifted to over the last five or 10 years. It is things as simple as having Wi-Fi and whether the signage to the park is great and whether there is a professional staff. People want a higher end experience than they did five years ago.
McAdams: The first thing that a family or a senior wants is safety and security. That’s why you’ll see us with gated communities. That sets us apart from a lot of the state parks who have to cut the budgets. They don’t even have a gatekeeper.
RVB: Are you still committed to the membership business? The membership business has, at times, been a tough niche, and people tell us that Thousand Trails is not as interested in it as it once was.
McAdams: We are not committed to the traditional sales membership. We believe there is value in a membership and we will market a membership, but it will be based on usage, time, need. It will be a customer-valued proposition, not the old time membership – the traditional sale of the perpetuity membership and overselling what the membership needs. We are not into that.
RVB: Think you could elaborate a bit more on that?
McAdams: Everybody has disdain sometimes for membership. We are starting to change the whole membership concept because we determined that a guy only wants one park. So we can sell it to him for $499. He pays his dues and if he wants to add another park and go up to the North, he can add it for a year. They are only one-year products. There is not any more of this selling in perpetuity – get them under the ether and sell them something forever. Then the guy gets mad and so does his wife, and they start fighting. We are not in that business. But it’s taken me a long time to change that business metric.
RVB: OK, you’re not going to oversell. But why only one year?
McAdams: What we try to do is get a guy to come there; he sees the activities that we have – whether it’s golf, or tennis or a one-day university, a fishing tournament. Once we get him there, we say, ‘Would you like to come back next season?’ And a majority of those people say they are coming back next season. The RV customer, you can’t fool them. They are discerning value shoppers. That’s why we’ve tried to change our pricing compendium and value proposition to take care of that.
RVB: You mentioned that you’re altering your approach to the manufactured housing communities as well. Why?
McAdams: Last year things got so bad that we shut down the majority of our home selling operations. We started renting homes. We are trying to keep the demographic to that guy that we know will rent and convert to an owner. And we will let him take some of the credit from his rent. But a lot of these guys couldn’t sell their houses in Detroit or Des Moines, yet they want to be in Florida. So we started this rental program. That’s where we are getting our velocity right now, but we need a lot more velocity. The key to homes is bringing the prices down. They are really nice, but if you get down to $60 a square foot, you become a viable opportunity.
RVB: Of course, you’re well aware of the recent shift from motorized to towable RVs within the RV arena. In fact, the Recreation Vehicle Industry Association (RVIA) says 7.8% of units shipped in 2010 will be motorized. How are you coping with that? What can people in your position do to serve a market that is swinging this heavily to towables?
McAdams: That’s a tough question. We are aware of the shift. We see it. We know the kinds of vehicles that our customers have. We are going to have the same amperage, the same amenities, the same clubhouse. We see it as price. If we can get the price of our manufactured homes down low enough, we have a lot more market entrants. By the same token, I believe that’s why the guy is buying the towable. These are guys that love the lifestyle, but can’t afford the motorhome. So, they are shifting to the towables. I see it as great for my business.
Rosenberg: Or they want more flexibility within the lifestyle. There are two different price points. You buy an RV and then you’re towing a car, and the reason is that when they get to our property and you want to go to the major metropolitan area, you’ve got a car to drive. For some people it’s the best of both worlds. And some people like the idea of leaving their towable at the property all summer; even all year is common.
RVB: ”Cabins” and ”lodges,” these types of sedentary accommodations, are gaining traction in many RV parks these days. Are they doing the same in some of your parks?
McAdams: Yes, they are. I don’t have a figure for you. It could be as much as 15% of our sites today. We see it as an accommodation to our customers. A lot of customers who are staying with us don’t want to make the drive anymore. It’s too far or they’re too old, but they still want to come to our resort. It’s a good business for us.
RVB: Looking at the financial side of things, how is ELS doing from a profitability standpoint?
McAdams: Because this is a public company it needs steady, predictable revenue. Investors want to know how much dividend they are going to get. We average 2% to 3% dividend each year. But we are showing them sizable growth. Since 2004 this stock has doubled, with all the rest of the market going down. The average yield is 15% to 20% a year. But they want to make sure that it’s steady and predictable. It’s got to be there every year.
RVB: Back on that branding question you mentioned early on, would you care to comment any further on that?
Rosenberg: That’s one of our top three priorities right now – determining the brand going forward. Is it going to be ”Sunshine Key, an Encore Resort?’ Or is it going to be ”Thousand Trails, part of Encore Membership Resorts?” That kind of concept is actively being discussed right now.
McAdams: It’s even deeper than that because long term in our strategy, we would love to have mixed-use RV resorts. We would love to have open-to-the-public X-amount of sites, membership X-amount of sites and a home community because that’s how the customer migrates.
RVB: All in one entrance way?
McAdams: In one place. Like Marriott. If you go to Marriott, they’ll have a Marriott Hotel, they’ll have Marriott vacation ownership and they’ll have whole ownership for people that want to come there all the time. We would love to be able to do that.
Rosenberg: There’s a great opportunity. It’s an amazing platform that has the growth potential with only small changes in the end. We’re not reinventing the whole business here. – Sherman Goldenberg and Bob Ashley
Equity LifeStyle Properties Inc. Monday (Jan. 25) reported higher revenues and funds from operations or earnings for the quarter and year ending Dec. 31.
The Chicago-based self-administered, self-managed real estate investment trust (REIT) owns RV parks and manufactured housing sites on 304 properties in 27 states and British Columbia.
For the fourth quarter 2009, Funds From Operations (FFO) were $27.7 million, compared to $20.6 million for the same period in 2008. For the year FFO was $118.1 million, compared to $97.6 million for the same period in 2008.
Net income available to common stockholders totaled $6.3 million, compared to a nil amount for the same period in 2008. Net income available to common stockholders totaled $34.0 million, compared to $18.3 million for the year ended Dec. 31, 2008.
Fourth quarter 2009 property operating revenues were $115 million, compared to $110.3 million in the fourth quarter of 2008. Property operating revenues for the year ended Dec. 31, 2009, were $479.3 million, compared to $419.3 million for the year ended Dec. 31, 2008.
For the fourth quarter, ELS’s core property operating revenues increased approximately 3.7% and core property operating expenses decreased approximately 0.1%, resulting in an increase of approximately 7% to income from core property operations over the quarter ended Dec. 31, 2008.
For the year ended Dec. 31, 2009, core property operating revenues increased approximately 2.9% and core property operating expenses decreased approximately 1.2%, resulting in an increase of approximately 6.5% to income from core property operations over the year ended Dece. 31, 2008.
For the quarter ended Dec.31, 2009, the company had 34 new home sales (including nine third-party dealer sales); a 38.2% percent decrease as compared to the quarter ended Dec. 31, 2008. Gross revenues from home sales were $2.1 million for the quarter ended Dec. 31, 2009, compared to $3.6 million for the quarter ended Dec. 31, 2008.
Net loss from home sales and other was $200,000 for the quarter ended Dec. 31, 2009, compared to a net loss from home sales and other of $3 million for the same period last year. For the year ended Dec. 31, 2009, the company had 113 new home sales (including 28 third-party dealer sales), a 70.1% decrease compared to the same period in 2008. Gross revenues from home sales were $7.1 million for the year ended Dec. 31, 2009, compared to $21.8 million for the same period in 2008.
Net income from home sales and other was $800,000 for the year ended Dec. 31, 2009 compared to a net loss from home sales and other of $5.7 million for the year ended Dec. 31, 2008.
During the quarter ended Dec. 31, 2009, the company closed on approximately $12 million of financing on one manufactured home property with an interest rate of 6.93% per annum, maturing in 2019. The company also paid off four maturing mortgages totaling approximately $26.2 million, with a weighted average interest rate of 8.46% per annum.
During the first half of 2010, the company expects to close on approximately $64.2 million of financing on three manufactured home communities at a weighted average interest rate of 6.92% per annum, maturing in 10 years.
The company expects to satisfy its secured debt maturities of approximately $183 million occurring prior to Dec. 31, 2010, with the proceeds from the financings of the three mortgages noted above and its existing cash balance, which is approximately $145 million as of Dec. 31, 2009. The expected timing and amounts of the most significant payoffs are as follows: i) approximately $100 million in April and approximately $75 million in August.
On Dec. 29, a deed-in-lieu of foreclosure agreement, signed by the company was sent to the loan servicer regarding the company’s nonrecourse mortgage loan of approximately $3.6 million secured by Creekside. Creekside is a 165-site all-age manufactured home community located in Wyoming, Mich., that is included in our discontinued operations.
Sandra Bate, president and CEO of Bates International Motor Home Rental Systems Inc., announced Thursday (Jan. 21) that Bates International has affiliated with Equity LifeStyle Properties Inc. (ELS), a company that owns and operates a portfolio of resort communities in the United States and British Columbia, including Thousand Trails, to offer the “Ready Camp Go” program to all of its RV rental customers.
“Bates International is excited to join forces with Equity LifeStyle Properties Inc. and Thousand Trails to offer exclusive resorts, featuring impressive amenities with premium rental accommodations, including RV sites, all at incredible savings at popular vacation destinations through the Ready Camp Go! Program,” Bate said in a news release.
“The program provides Bates International and its franchise locations throughout North America to offer added value to our customers,” added Bate. “In addition to gaining access to the ELS and Thousand Trails portfolio of more than 150-plus properties and 67,000 public and membership sites, our customers will enjoy a wide variety of quality services and amenities at significantly discounted rates.”
The new “Ready Camp Go!” Program makes RV camping easier and more affordable than ever by offering four money-saving programs.
“Ready Camp Go!” will be featured at all Bates franchises throughout the United States and Canada.
The Bates brand was named in 2007 and 2008 by Entrepreneur magazine as one of the top 500 franchises in the United States and has been featured in The Wall Street Journal, on CNN News and in numerous RV industry publications.
For more information, call Bates toll free at (800) 732-2283 or visit www.batesintl.com.
Equity LifeStyle Properties Inc., a major owner and operator of RV-related parks and campgrounds that also is a significant factdor in Sunbelt retirement communities, today (Oct. 22) announced results for the quarter and nine months ended Sept. 30.
For the third quarter 2009, Funds From Operations (“FFO”) were $28.8 million, or $0.82 per share on a fully-diluted basis, compared to $22.7 million, or $0.74 per share on a fully-diluted basis for the same period in 2008. For the nine months ended Sept. 30, 2009, FFO was $90.4 million, or $2.81 per share on a fully-diluted basis, compared to $77.1 million, or $2.53 per share on a fully-diluted basis for the same period in 2008.
Net income available to common stockholders totaled $11.1 million, or $0.37 per share on a fully-diluted basiss for the quarter.
This compares to net income available to common stockholders of $1.5 million, or $0.06 per share on a fully diluted basis for the same period in 2008. Net income available to common stockholders totaled $27.7 million, or $1.02 per share on a fully-diluted basis for the nine months ended Sept, 30. This compares to net income available to common stockholders of $18.3 million, or $0.74 per share on a fully-diluted basis for the same period in 2008.
On June 29, the company issued 4.6 million shares of common stock in an equity offering for approximately $146.4 million, net of offering costs.
On an as adjusted basis, assuming the equity offering had not occurred, FFO per share on a fully-diluted basis would have been $0.94 and $3.28 for the quarter and nine months ended September 30, 2009, respectively. As adjusted net income available to common stockholders,
assuming the equity offering did not occur, would have been $0.42 and $1.19 per share on a fully diluted basis for the quarter and nine months ended Sept. 30, respectively.
Third quarter 2009 property operating revenues were $123.8 million, compared to $108.3 million in the third quarter of 2008. Our property operating revenues for the nine months ended September 30, 2009 were $364.3 million, compared to $309.0 million for the nine months ended Sept. 30, 2008
For the quarter ended Sept. 30, 2009, our core property operating revenues increased approximately 2.7% and core property operating expenses decreased approximately 1.5%, resulting in an increase of approximately 6.5 percent to income from core property operations over the quarter ended Sept. 30, 2008. For the nine months ended Sept. 30, 2009, our core property operating revenues increased approximately 2.7% and core property operating expenses decreased approximately 1.6%, resulting in an increase to income from core property operations of approximately 6.3% over the nine months ended Sept.30, 2008.
For the quarter ended Sept. 30, 2009, the company had 38 new home sales (including 13 third-party dealer sales), which represents a 56.3% decrease as compared to the quarter ended Sept. 30, 2008. Gross revenues from home sales were $2.1 million for the quarter ended Sept 30, 2009, compared to $5.3 million for the quarter ended September 30, 2008. Net income from home sales and other was $1.5 million for the quarter, compared to a net loss from home sales and other of ($0.7) million for the same period in 2008.
For the nine months ended September 30, 2009, the company had 79 new home sales (including 19 third-party dealer sales), a 75.5 percent decrease over the same period in 2008. Gross revenues from home sales were $5.1 million for the nine months ended September 30, 2009, compared to $18.3 million for the same period in 2008. Net income from home sales and other was $1.0 million for the nine months ended Sept. 30, 2009 compared to a net loss from home sales and other of ($2.7) million for the nine months ended Sept. 30, 2008. Property management expenses were $8.7 million for the quarter ended September 30, 2009, compared to $6.4 million for the same period last year.
A significant portion of the increase in property management expenses was due to the acquisition and consolidation of Privileged Access, L.P. (“Privileged Access”) and the 82 company properties that Privileged Access had been leasing and operating prior to the company’s
acquisition of Privileged Access on August 14, 2008 On July 20 the company sold the 490-site property known as Casa Village in Billings, Mont. The buyer assumed approximately $10.6 million of mortgage indebtedness on the property
“Our average long-term secured debt balance was approximately $1.6 billion in the quarter, with a weighted average interest rate, including amortization, of approximately 6.02 percent per annum. Our unsecured debt balance currently has an availability of $370.0 million. Interest coverage was approximately 2.4 times in the quarter During the quarter, the company closed on approximately $21.1 million of financings on two manufactured home properties with a weighted average interest rate of 6.25 percent per annum, maturing in 2019.”
The company also paid off twelve maturing mortgages totaling approximately $47.9 million, with a weighted average interest rate of 7.94 percent per annumDuring the fourth quarter of 2009 and the second quarter of 2010, the Company expects to close on approximately $74 million of financing on four manufactured home properties at a weighted average interest rate of 6.96 percent per annum, maturing in 10 years. We have locked rate with Fannie Mae on these loans. There can be no assurance if such financings will occur or as to the timing and terms of our anticipated
Equity LifeStyle Properties Inc. owns or has an interest in 307 quality properties in 27 states and British Columbia consisting of 110,363 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
Equity LifeStyle Properties Inc. (ELS) has announced results for the quarter and six months ended June 30.
For the second quarter, Funds From Operations (FFO) were $23.7 million, compared to $21.7 million for the same period in 2008. For the six months, FFO was $61.6 million, compared to $54.3 million for the same period in 2008.
Net income available to common stockholders totaled $2.9 million, compared to $4.1 million for the same period in 2008. Net income available to common stockholders totaled $16.5 million for the six months, compared to $16.8 million for the same period in 2008.
- Due to its Aug. 14, 2008, acquisition of Privileged Access LP, the results for the quarter and six months ended June 30, 2009, also include: $5.3 million and $10.4 million, respectively, of net deferrals of non-refundable upfront payments from the sale of right-to-use contracts which are amortized over the estimated customer life.
- $1.6 million and $3.1 million, respectively, of net deferrals of commissions paid on the sale of right-to use contracts which are also amortized on the same method as the deferred sales revenue. The net deferral for the quarter and six months ended June 30, 2009, is approximately $3.6 million and $7.3 million, respectively.
Second quarter 2009 property operating revenues were $116.1 million, compared to $94.3 million in the second quarter of 2008. Property operating revenues for the six months ended June 30, 2009, were $240.4 million, compared to $200.7 million for the six months ended June 30, 2008.
ELS is a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. It owns or has an interest in 308 properties in 28 states and British Columbia consisting of 110,852 sites.