ELS Reports Second Quarter Results

Continued Strong Performance

CHICAGO–(BUSINESS WIRE)–Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and six months ended June 30, 2019. All per share results are reported on a fully diluted basis unless otherwise noted.

Financial Results for the Quarter and Six Months Ended June 30, 2019

For the quarter ended June 30, 2019, total revenues increased $7.9 million, or 3.3 percent, to $248.4 million compared to $240.5 million for the same period in 2018. For the quarter ended June 30, 2019, net income available for Common Stockholders increased $0.3 million to $46.4 million, or $0.51 per Common Share, compared to $46.1 million, or $0.52 per Common Share, for the same period in 2018.

For the six months ended June 30, 2019, total revenues increased $21.0 million, or 4.3 percent, to $507.5 million compared to $486.5 million for the same period in 2018. Net income available for Common Stockholders for the six months ended June 30, 2019 increased $53.3 million, or $0.57 per Common Share, to $159.7 million, or $1.77 per Common Share, compared to $106.4 million, or $1.20 per Common Share, for the same period in 2018.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended June 30, 2019, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders increased $4.2 million, or $0.04 per Common Share, to $89.8 million, or $0.94 per Common Share, compared to $85.6 million, or $0.90 per Common Share, for the same period in 2018. For the six months ended June 30, 2019, FFO available for Common Stock and OP Unit holders increased $14.0 million, or $0.13 per Common Share, to $197.8 million, or $2.07 per Common Share, compared to $183.8 million, or $1.94 per Common Share, for the same period in 2018.

For the quarter ended June 30, 2019, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $8.1 million, or $0.07 per Common Share, to $91.9 million, or $0.96 per Common Share, compared to $83.8 million, or $0.89 per Common Share, for the same period in 2018. For the six months ended June 30, 2019, Normalized FFO available for Common Stock and OP Unit holders increased $17.9 million, or $0.16 per Common Share, to $199.6 million, or $2.08 per Common Share, compared to $181.7 million, or $1.92 per Common Share, for the same period in 2018.

For the quarter ended June 30, 2019, property operating revenues, excluding deferrals, increased $13.2 million to $240.7 million compared to $227.5 million for the same period in 2018. For the six months ended June 30, 2019, property operating revenues, excluding deferrals, increased $29.4 million to $491.6 million compared to $462.2 million for the same period in 2018. For the quarter ended June 30, 2019, income from property operations, excluding deferrals and property management, increased $6.6 million to $135.7 million compared to $129.1 million for the same period in 2018. For the six months ended June 30, 2019, income from property operations, excluding deferrals and property management, increased $18.7 million to $289.1 million compared to $270.4 million for the same period in 2018.

For the quarter ended June 30, 2019, Core property operating revenues, excluding deferrals, increased approximately 4.9 percent and Core income from property operations, excluding deferrals and property management, increased approximately 5.2 percent compared to the same period in 2018. For the six months ended June 30, 2019, Core property operating revenues, excluding deferrals, increased approximately 4.4 percent and Core income from property operations, excluding deferrals and property management, increased approximately 5.1 percent compared to the same period in 2018.

Investment Activity

On May 29, 2019, we completed the acquisition of White Oak Shores Camping and RV Resort, a 455-site recreational vehicle (“RV”) community located in Stella, North Carolina for a purchase price of $20.5 million. The acquisition was funded with available cash.

Balance Sheet Activity

During the quarter ended June 30, 2019, we sold approximately 0.5 million shares of our common stock under our at-the-market (“ATM”) equity offering program with a weighted average share price of $117.41 for gross proceeds of $59.3 million. We have $140.7 million of common stock available for issuance under our ATM equity offering program.

During the quarter ended June 30, 2019, we prepaid four loans secured by three manufactured home communities and one RV community, which were scheduled to mature in 2020. The loans had an outstanding principal balance of $66.8 million and a weighted average interest rate of 6.9% per annum. As part of the transaction, we incurred $1.4 million of prepayment penalties. We used the proceeds from the ATM and our available cash to fund the loan prepayments.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of July 22, 2019, we own or have an interest in 413 quality properties in 33 states and British Columbia consisting of 155,973 sites.

For additional information, please contact our Investor Relations Department at (800) 247-5279 or at [email protected].

Conference Call

A live webcast of our conference call discussing these results will take place tomorrow, Tuesday, July 23, 2019, at 10:00 a.m. Central Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.

Reporting Calendar

Quarterly financial results and related earnings conference calls for the next three quarters are expected to occur as follows:

Forward-Looking Statements

In addition to historical information, this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as “anticipate,” “expect,” “believe,” “project,” “intend,” “may be” and “will be” and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:

• our ability to control costs and real estate market conditions, our ability to retain customers, the actual use of sites by customers and our success in acquiring new customers at our properties (including those that we may acquire);
• our ability to maintain historical or increase future rental rates and occupancy with respect to properties currently owned or that we may acquire;
• our ability to retain and attract customers renewing, upgrading and entering right-to-use contracts;
• our assumptions about rental and home sales markets;
• our assumptions and guidance concerning 2019, including estimated net income, FFO and Normalized FFO;
• our ability to manage counterparty risk;
• our ability to renew our insurance policies at existing rates and on consistent terms;
• in the age-qualified properties, home sales results could be impacted by the ability of potential home buyers to sell their existing residences as well as by financial, credit and capital markets volatility;
• results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing;
• impact of government intervention to stabilize site-built single-family housing and not manufactured housing;
• effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions;
• the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto;
• unanticipated costs or unforeseen liabilities associated with recent acquisitions;
• ability to obtain financing or refinance existing debt on favorable terms or at all;
• the effect of interest rates;
• the effect from any breach of our, or any of our vendors’, data management systems;
• the dilutive effects of issuing additional securities;
• the outcome of pending or future lawsuits or actions brought against us, including those disclosed in our filings with the Securities and Exchange Commission; and
• other risks indicated from time to time in our filings with the Securities and Exchange Commission.

For further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q.

These forward-looking statements are based on management’s present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.

Non-GAAP Financial Measures

This document contains certain non-GAAP measures used by management that we believe are helpful in understanding our business. We believe investors should review these non-GAAP measures along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating an equity REIT’s operating performance. Our definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of non-GAAP measures to our financial statements as prepared under GAAP, please refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 7 and Non-GAAP Financial Measures Definitions and Reconciliation on pages 18 – 20.

Contacts

Paul Seavey

(800) 247-5279

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