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 ended March 31, 2023. All per share results are reported on a fully diluted basis unless otherwise noted.
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($ in millions, except per share data) |
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|
|
|
|
||||
|
Financial Results |
Q1 2023 |
|
Q1 2022 |
|
$ Change |
||||
|
Total Revenues |
$ |
370.0 |
|
$ |
360.2 |
|
$ |
9.8 |
|
|
Net Income available for Common Stockholders |
$ |
82.4 |
|
$ |
82.9 |
|
$ |
(0.5 |
) |
|
Net Income per Common Share – Fully Diluted |
$ |
0.44 |
|
$ |
0.45 |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
||||
|
Non-GAAP Financial Measures |
Q1 2023 |
|
Q1 2022 |
|
$ Change |
||||
|
Funds from Operations (“FFO”) per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
$ |
0.72 |
|
$ |
0.02 |
|
|
Normalized Funds from Operations (“Normalized FFO”) per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
$ |
0.72 |
|
$ |
0.02 |
|
|
Property operating revenues, excluding deferrals |
$ |
339.3 |
|
$ |
322.4 |
|
$ |
16.9 |
|
|
Income from property operations, excluding deferrals and property management |
$ |
201.8 |
|
$ |
192.6 |
|
$ |
9.2 |
|
|
|
|
|
|
|
|
||||
|
Core Portfolio Performance |
Q1 2023 |
|
Q1 2022 |
|
% Change |
||||
|
Core property operating revenues, excluding deferrals |
$ |
329.9 |
|
$ |
310.2 |
|
|
6.4 |
% |
|
Core Income from property operations, excluding deferrals and property management |
$ |
195.7 |
|
$ |
185.3 |
|
|
5.7 |
% |
Operations Update
Normalized FFO for the quarter ended March 31, 2023 was $0.74 per share, representing a 2.0% increase compared to the same period in 2022, outperforming the midpoint of our guidance expectation by $0.8 million.
MH
Core MH base rental income for the quarter ended March 31, 2023 increased 6.5% compared to the same period in 2022, which reflects 6.6% growth from rate increases and a decline of 0.1% from occupancy losses. Core MH homeowners increased by 30 since December 31, 2022. We sold 176 new homes during the quarter ended March 31, 2023, with an average sales price of $104,000.
RV and Marina
Core RV and marina base rental income for the quarter ended March 31, 2023 increased 5.5% compared to the same period in 2022. Core RV and marina annual base rental income increased 8.4% for the quarter ended March 31, 2023, compared to the same period in 2022, which reflects 8.0% growth from rate increases and 0.4% from occupancy gains. Total nights camped during the quarter ended March 31, 2023 increased approximately 1.0% compared to the same period in 2022.
Property Operating Expenses
Core property operating expenses for the quarter ended March 31, 2023 increased 7.4% compared to the same period in 2022. See page 8 for details of the Core property operating expenses. Core repair and maintenance expenses for the quarter ended March 31, 2023 was $21.7 million, an increase of $2.5 million compared to the same period in 2022, which includes clean-up costs following weather events across the portfolio.
We completed our property and casualty insurance renewal as of April 1, 2023, and our premiums increased for the policy year April 2023 through March 2024 by approximately $12.0 million, or 58%. This increase has an unfavorable impact of approximately $2.6 million on our full year 2023 guidance.
Guidance (1)(2)
|
($ in millions, except per share data) |
|
|
|
|
2023 |
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|
|
|
Second |
|
Full |
||
|
Net Income/share |
|
|
|
|
$0.32 to $0.38 |
|
$1.64 to $1.74 |
||
|
FFO/share |
|
|
|
|
$0.62 to $0.68 |
|
$2.79 to $2.89 |
||
|
Normalized FFO/share |
|
|
|
|
$0.62 to $0.68 |
|
$2.79 to $2.89 |
||
|
|
|
|
|
|
|
|
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||
|
|
2022 Actual |
|
2023 Growth Rates |
||||||
|
Core Portfolio: |
Second |
|
Full |
|
Second |
|
Full |
||
|
MH base rental income |
$ |
155.8 |
|
$ |
626.0 |
|
6.4% to 7.0% |
|
6.3% to 7.3% |
|
RV and marina base rental income (3) |
$ |
94.6 |
|
$ |
393.4 |
|
3.6% to 4.2% |
|
5.4% to 6.4% |
|
Property operating revenues |
$ |
305.8 |
|
$ |
1,240.2 |
|
5.5% to 6.1% |
|
6.0% to 7.0% |
|
Property operating expenses |
$ |
136.1 |
|
$ |
526.4 |
|
10.0% to 10.6% |
|
7.9% to 8.9% |
|
Income from property operations, excluding deferrals and property management |
$ |
169.7 |
|
$ |
713.8 |
|
1.9% to 2.5% |
|
4.6% to 5.6% |
|
|
|
|
|
|
|
|
|
||
|
Non-Core Portfolio: |
|
|
|
|
2023 Full Year |
||||
|
Income from property operations, excluding deferrals and property management |
|
|
|
|
$23.1 to $27.1 |
||||
|
|
|
|
|
|
|
|
|
||
|
Other Guidance Assumptions: |
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|
|
|
2023 Full Year |
||||
|
Property management and general administrative |
|
|
|
|
$115.9 to $121.9 |
||||
|
Debt Assumptions: |
|
|
|
|
|
|
|
||
|
Weighted average debt outstanding |
|
|
|
|
$3,300 to $3,500 |
||||
|
Interest and related amortization |
|
|
|
|
$127.6 to $133.6 |
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|
(1) |
Second quarter and full year 2023 guidance ranges represent a range of possible outcomes and the midpoint reflects management’s estimate of the most likely outcome. Actual growth rates and per share amounts could vary materially from growth rates and per share amounts presented above if any of our assumptions, including occupancy and rate changes, our ability to manage expenses in an inflationary environment, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect. See Forward-Looking Statements in this release for additional factors impacting our 2023 guidance assumptions. |
|
(2) |
Guidance assumptions do not include future capital events (financing transactions, acquisitions or dispositions) or the use of free cash flow. |
|
(3) |
Core RV and marina annual revenue represents approximately 70.6% and 67.0% of second quarter 2023 and full year 2023 RV and marina base rental income, respectively. Core RV and marina annual revenue second quarter 2023 growth rate range is 7.9% to 8.5% and the full year 2023 growth rate range is 7.9% to 8.9%. |
Investment Activity
In March 2023, we completed the acquisition of Red Oak Shores Campground, a 223-site RV community located in Ocean View, New Jersey for a purchase price of $9.5 million.
Balance Sheet Activity
In April 2023, we entered into an interest rate swap agreement with a notional amount of $200.0 million, allowing us to trade one month term SOFR indexed variable rate debt for fixed rate debt. The interest rate swap fixes the variable interest rate on our $200.0 million unsecured term loan at 4.88% per annum. As a result, our exposure to floating rate debt as a percentage of total debt is approximately 7.5%.
As of March 31, 2023, approximately 6% of our total secured and unsecured debt is maturing over the next three years.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of April 17, 2023, we own or have an interest in 450 properties in 35 states and British Columbia consisting of 171,477 sites.
For additional information, please contact our Investor Relations Department at (800) 247-5279 or at [email protected].
Conference Call
A live audio webcast of our conference call discussing these results will take place tomorrow, Tuesday, April 18, 2023, 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.
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. Forward-looking statements, including our guidance concerning Net Income, FFO and Normalized FFO per share data, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement due to a number of factors, which include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly seasonal employees; (xiii) ongoing legal matters and related fees; and (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events. 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” and “Forward-Looking Statements” sections in our most recent Annual Report on Form 10-K and any 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.
Supplemental Financial Information
|
Financial Highlights |
|
(In millions, except Common Shares and OP Units outstanding and per share data, unaudited) |
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|
As of and for the Quarters Ended |
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|
|
Mar 31, |
Dec 31, |
Sep 30, |
Jun 30, |
Mar 31, |
||||||||||
|
Operating Information |
|
|
|
|
|
||||||||||
|
Total revenues |
$ |
370.0 |
|
$ |
340.6 |
|
$ |
381.0 |
|
$ |
365.3 |
|
$ |
360.2 |
|
|
Net income |
$ |
86.5 |
|
$ |
76.7 |
|
$ |
70.5 |
|
$ |
64.6 |
|
$ |
87.1 |
|
|
Net income available for Common Stockholders |
$ |
82.4 |
|
$ |
73.0 |
|
$ |
67.2 |
|
$ |
61.5 |
|
$ |
82.9 |
|
|
Adjusted EBITDAre (1) |
$ |
176.7 |
|
$ |
159.2 |
|
$ |
166.4 |
|
$ |
153.3 |
|
$ |
168.4 |
|
|
FFO available for Common Stock and OP Unit holders (1)(2) |
$ |
144.1 |
|
$ |
126.6 |
|
$ |
134.4 |
|
$ |
121.6 |
|
$ |
140.9 |
|
|
Normalized FFO available for Common Stock and OP Unit holders (1)(2) |
$ |
144.3 |
|
$ |
128.1 |
|
$ |
136.8 |
|
$ |
125.3 |
|
$ |
141.4 |
|
|
Funds Available for Distribution (“FAD”) for Common Stock and OP Unit holders (1)(2) |
$ |
126.2 |
|
$ |
106.9 |
|
$ |
115.4 |
|
$ |
103.6 |
|
$ |
125.1 |
|
|
|
|
|
|
|
|
||||||||||
|
Common Shares and OP Units Outstanding (In thousands) and Per Share Data |
|
|
|
|
|
||||||||||
|
Common Shares and OP Units, end of the period |
|
195,446 |
|
|
195,386 |
|
|
195,380 |
|
|
195,373 |
|
|
195,303 |
|
|
Weighted average Common Shares and OP Units outstanding – Fully Diluted |
|
195,369 |
|
|
195,281 |
|
|
195,269 |
|
|
195,227 |
|
|
195,246 |
|
|
Net income per Common Share – Fully Diluted (3) |
$ |
0.44 |
|
$ |
0.39 |
|
$ |
0.36 |
|
$ |
0.33 |
|
$ |
0.45 |
|
|
FFO per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
$ |
0.65 |
|
$ |
0.69 |
|
$ |
0.62 |
|
$ |
0.72 |
|
|
Normalized FFO per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
$ |
0.66 |
|
$ |
0.70 |
|
$ |
0.64 |
|
$ |
0.72 |
|
|
Dividends per Common Share |
$ |
0.4475 |
|
$ |
0.4100 |
|
$ |
0.4100 |
|
$ |
0.4100 |
|
$ |
0.4100 |
|
|
|
|
|
|
|
|
||||||||||
|
Balance Sheet |
|
|
|
|
|
||||||||||
|
Total assets |
$ |
5,519 |
|
$ |
5,493 |
|
$ |
5,405 |
|
$ |
5,400 |
|
$ |
5,265 |
|
|
Total liabilities |
$ |
4,006 |
|
$ |
3,975 |
|
$ |
3,886 |
|
$ |
3,878 |
|
$ |
3,734 |
|
|
|
|
|
|
|
|
||||||||||
|
Market Capitalization |
|
|
|
|
|
||||||||||
|
Total debt (4) |
$ |
3,414 |
|
$ |
3,416 |
|
$ |
3,329 |
|
$ |
3,298 |
|
$ |
3,193 |
|
|
Total market capitalization (5) |
$ |
16,534 |
|
$ |
16,038 |
|
$ |
15,607 |
|
$ |
17,066 |
|
$ |
18,130 |
|
|
|
|
|
|
|
|
||||||||||
|
Ratios |
|
|
|
|
|
||||||||||
|
Total debt / total market capitalization |
|
20.6 |
% |
|
21.3 |
% |
|
21.3 |
% |
|
19.3 |
% |
|
17.6 |
% |
|
Total debt / Adjusted EBITDAre (6) |
|
5.2 |
|
|
5.3 |
|
|
5.2 |
|
|
5.3 |
|
|
5.2 |
|
|
Interest coverage (7) |
|
5.5 |
|
|
5.6 |
|
|
5.7 |
|
|
5.7 |
|
|
5.7 |
|
|
Fixed charges(8) |
|
5.4 |
|
|
5.6 |
|
|
5.6 |
|
|
5.6 |
|
|
5.6 |
|
______________________
|
1. |
See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre. |
|
2. |
See page 6 for a reconciliation of Net income available for Common Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. |
|
3. |
Net income per Common Share – Fully Diluted is calculated before Income allocated to non-controlling interest – Common OP Units. |
|
4. |
Excludes deferred financing costs of approximately $27.3 million as of March 31, 2023. |
|
5. |
See page 14 for the calculation of market capitalization as of March 31, 2023. |
|
6. |
Calculated using trailing twelve months Adjusted EBITDAre. |
|
7. |
Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period. |
|
8. |
See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for a definition of fixed charges. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.
|
|
Consolidated Balance Sheets |
|
(In thousands, except share and per share data) |
|||||||
|
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
|
(unaudited) |
|
|
||||
|
Assets |
|
|
|
||||
|
Investment in real estate: |
|
|
|
||||
|
Land |
$ |
2,086,725 |
|
|
$ |
2,084,532 |
|
|
Land improvements |
|
4,170,166 |
|
|
|
4,115,439 |
|
|
Buildings and other depreciable property |
|
1,197,416 |
|
|
|
1,169,590 |
|
|
|
|
7,454,307 |
|
|
|
7,369,561 |
|
|
Accumulated depreciation |
|
(2,306,538 |
) |
|
|
(2,258,540 |
) |
|
Net investment in real estate |
|
5,147,769 |
|
|
|
5,111,021 |
|
|
Cash and restricted cash |
|
30,661 |
|
|
|
22,347 |
|
|
Notes receivable, net |
|
46,655 |
|
|
|
45,356 |
|
|
Investment in unconsolidated joint ventures |
|
81,135 |
|
|
|
81,404 |
|
|
Deferred commission expense |
|
51,090 |
|
|
|
50,441 |
|
|
Other assets, net |
|
162,003 |
|
|
|
181,950 |
|
|
Total Assets |
$ |
5,519,313 |
|
|
$ |
5,492,519 |
|
|
|
|
|
|
||||
|
Liabilities and Equity |
|
|
|
||||
|
Liabilities: |
|
|
|
||||
|
Mortgage notes payable, net |
$ |
2,677,318 |
|
|
$ |
2,693,167 |
|
|
Term loan, net |
|
497,039 |
|
|
|
496,817 |
|
|
Unsecured line of credit |
|
212,000 |
|
|
|
198,000 |
|
|
Accounts payable and other liabilities |
|
185,126 |
|
|
|
175,148 |
|
|
Deferred membership revenue |
|
204,312 |
|
|
|
197,743 |
|
|
Accrued interest payable |
|
12,090 |
|
|
|
11,739 |
|
|
Rents and other customer payments received in advance and security deposits |
|
130,704 |
|
|
|
122,318 |
|
|
Distributions payable |
|
87,338 |
|
|
|
80,102 |
|
|
Total Liabilities |
|
4,005,927 |
|
|
|
3,975,034 |
|
|
Equity: |
|
|
|
||||
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2023 and December 31, 2022; none issued and outstanding. |
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, 600,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 186,205,815 and 186,120,298 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. |
|
1,916 |
|
|
|
1,916 |
|
|
Paid-in capital |
|
1,629,866 |
|
|
|
1,628,618 |
|
|
Distributions in excess of accumulated earnings |
|
(205,203 |
) |
|
|
(204,248 |
) |
|
Accumulated other comprehensive income |
|
15,141 |
|
|
|
19,119 |
|
|
Total Stockholders’ Equity |
|
1,441,720 |
|
|
|
1,445,405 |
|
|
Non-controlling interests – Common OP Units |
|
71,666 |
|
|
|
72,080 |
|
|
Total Equity |
|
1,513,386 |
|
|
|
1,517,485 |
|
|
Total Liabilities and Equity |
$ |
5,519,313 |
|
|
$ |
5,492,519 |
|
|
Consolidated Statements of Income |
|
(In thousands, unaudited) |
|||||||
|
|
Quarters Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
Revenues: |
|
|
|
||||
|
Rental income |
$ |
296,451 |
|
|
$ |
285,065 |
|
|
Annual membership subscriptions |
|
15,970 |
|
|
|
15,157 |
|
|
Membership upgrade sales current period, gross |
|
7,975 |
|
|
|
7,151 |
|
|
Membership upgrade sales upfront payments, deferred, net |
|
(4,470 |
) |
|
|
(4,084 |
) |
|
Other income |
|
17,714 |
|
|
|
13,542 |
|
|
Gross revenues from home sales, brokered resales and ancillary services |
|
32,133 |
|
|
|
39,695 |
|
|
Interest income |
|
2,088 |
|
|
|
1,759 |
|
|
Income from other investments, net |
|
2,091 |
|
|
|
1,904 |
|
|
Total revenues |
|
369,952 |
|
|
|
360,189 |
|
|
|
|
|
|
||||
|
Expenses: |
|
|
|
||||
|
Property operating and maintenance |
|
112,483 |
|
|
|
103,992 |
|
|
Real estate taxes |
|
18,316 |
|
|
|
19,457 |
|
|
Sales and marketing, gross |
|
5,517 |
|
|
|
4,914 |
|
|
Membership sales commissions, deferred, net |
|
(679 |
) |
|
|
(583 |
) |
|
Property management |
|
19,464 |
|
|
|
17,871 |
|
|
Depreciation and amortization |
|
50,502 |
|
|
|
49,394 |
|
|
Cost of home sales, brokered resales and ancillary services |
|
23,141 |
|
|
|
30,684 |
|
|
Home selling expenses and ancillary operating expenses |
|
6,924 |
|
|
|
6,481 |
|
|
General and administrative (1) |
|
11,661 |
|
|
|
12,072 |
|
|
Casualty-related charges/(recoveries), net (2) |
|
— |
|
|
|
— |
|
|
Other expenses (1) |
|
1,468 |
|
|
|
1,048 |
|
|
Early debt retirement |
|
— |
|
|
|
516 |
|
|
Interest and related amortization |
|
32,588 |
|
|
|
27,464 |
|
|
Total expenses |
|
281,385 |
|
|
|
273,310 |
|
|
Loss on sale of real estate and impairment, net |
|
(2,632 |
) |
|
|
— |
|
|
Income before equity in income of unconsolidated joint ventures |
|
85,935 |
|
|
|
86,879 |
|
|
Equity in income of unconsolidated joint ventures |
|
524 |
|
|
|
171 |
|
|
Consolidated net income |
|
86,459 |
|
|
|
87,050 |
|
|
|
|
|
|
||||
|
Income allocated to non-controlling interests – Common OP Units |
|
(4,088 |
) |
|
|
(4,144 |
) |
|
Net income available for Common Stockholders |
$ |
82,371 |
|
|
$ |
82,906 |
|
______________________
|
1. |
Prior period amounts have been reclassified to conform to the current period presentation. |
|
2. |
Casualty-related charges/(recoveries), net includes debris removal and cleanup costs related to Hurricane Ian of $8.5 million and insurance recovery revenue of $8.5 million for the quarter ended March 31, 2023. |
Non-GAAP Financial Measures
This document contains certain non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these non-GAAP measures along with GAAP net income and cash flows 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 are they 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, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 6 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 16-18.
|
Selected Non-GAAP Financial Measures |
|
(In millions, except per share data, unaudited) |
|||
|
|
Quarter Ended |
||
|
|
March 31, 2023 |
||
|
Income from property operations, excluding deferrals and property management – 2023 Core (1) |
$ |
195.7 |
|
|
Income from property operations, excluding deferrals and property management – Non-Core (1) |
|
6.1 |
|
|
Property management and general and administrative |
|
(31.1 |
) |
|
Other income and expenses (excluding transaction/pursuit costs) |
|
6.6 |
|
|
Interest and related amortization |
|
(32.6 |
) |
|
Gain on unconsolidated joint ventures |
|
(0.4 |
) |
|
Normalized FFO available for Common Stock and OP Unit holders (2) |
$ |
144.3 |
|
|
Transaction/pursuit costs |
|
(0.1 |
) |
|
Lease termination expenses |
|
(0.1 |
) |
|
FFO available for Common Stock and OP Unit holders (2) |
$ |
144.1 |
|
|
|
|
||
|
FFO per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
|
Normalized FFO per Common Share and OP Unit – Fully Diluted |
$ |
0.74 |
|
|
|
|
||
|
Normalized FFO available for Common Stock and OP Unit holders (2) |
$ |
144.3 |
|
|
Non-revenue producing improvements to real estate |
|
(18.1 |
) |
|
FAD for Common Stock and OP Unit holders (2) |
$ |
126.2 |
|
|
|
|
||
|
Weighted average Common Shares and OP Units – Fully Diluted |
|
195.4 |
|
______________________
|
1. |
See pages 8-9 for details of the Core Income from Property Operations, excluding deferrals and property management. See page 10 for details of the Non-Core Income from Property Operations, excluding deferrals and property management. |
|
2. |
See page 6 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. |
|
Reconciliation of Net Income to Non-GAAP Financial Measures |
|
(In thousands, except per share data, unaudited) |
||||||||
|
|
|
Quarters Ended March 31, |
||||||
|
|
|
2023 |
|
2022 |
||||
|
Net income available for Common Stockholders |
|
$ |
82,371 |
|
|
$ |
82,906 |
|
|
Income allocated to non-controlling interests – Common OP Units. |
|
|
4,088 |
|
|
|
4,144 |
|
|
Membership upgrade sales upfront payments, deferred, net. |
|
|
4,470 |
|
|
|
4,084 |
|
|
Membership sales commissions, deferred, net. |
|
|
(679 |
) |
|
|
(583 |
) |
|
Depreciation and amortization. |
|
|
50,502 |
|
|
|
49,394 |
|
|
Depreciation on unconsolidated joint ventures. |
|
|
1,135 |
|
|
|
941 |
|
|
Gain on unconsolidated joint ventures. |
|
|
(416 |
) |
|
|
— |
|
|
Loss on sale of real estate and impairment, net. |
|
|
2,632 |
|
|
|
— |
|
|
FFO available for Common Stock and OP Unit holders |
|
|
144,103 |
|
|
|
140,886 |
|
|
Early debt retirement. |
|
|
— |
|
|
|
516 |
|
|
Transaction/pursuit costs. |
|
|
116 |
|
|
|
— |
|
|
Lease termination expenses. |
|
|
90 |
|
|
|
— |
|
|
Normalized FFO available for Common Stock and OP Unit holders |
|
|
144,309 |
|
|
|
141,402 |
|
|
Non-revenue producing improvements to real estate. |
|
|
(18,112 |
) |
|
|
(16,337 |
) |
|
FAD for Common Stock and OP Unit holders |
|
$ |
126,197 |
|
|
$ |
125,065 |
|
|
|
|
|
|
|
||||
|
Net income available per Common Share – Basic |
|
$ |
0.44 |
|
|
$ |
0.45 |
|
|
Net income available per Common Share – Fully Diluted (1). |
|
$ |
0.44 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
||||
|
FFO per Common Share and OP Unit – Basic |
|
$ |
0.74 |
|
|
$ |
0.72 |
|
|
FFO per Common Share and OP Unit – Fully Diluted |
|
$ |
0.74 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
||||
|
Normalized FFO per Common Share and OP Unit – Basic |
|
$ |
0.74 |
|
|
$ |
0.73 |
|
|
Normalized FFO per Common Share and OP Unit – Fully Diluted |
|
$ |
0.74 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
||||
|
Weighted average Common Shares outstanding – Basic. |
|
|
185,900 |
|
|
|
185,690 |
|
|
Weighted average Common Shares and OP Units outstanding – Basic. |
|
|
195,162 |
|
|
|
194,991 |
|
|
Weighted average Common Shares and OP Units outstanding – Fully Diluted. |
|
|
195,369 |
|
|
|
195,246 |
|
______________________
|
1. |
Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest – Common OP Units. |
|
Consolidated Income from Property Operations (1) |
|
(In millions, except home site and occupancy figures, unaudited) |
|||||||
|
|
Quarters Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
MH base rental income (2) |
$ |
164.6 |
|
|
$ |
157.3 |
|
|
Rental home income (2) |
|
3.9 |
|
|
|
4.0 |
|
|
RV and marina base rental income (2) |
|
111.6 |
|
|
|
108.8 |
|
|
Annual membership subscriptions |
|
16.0 |
|
|
|
15.2 |
|
|
Membership upgrade sales current period, gross |
|
8.0 |
|
|
|
7.2 |
|
|
Utility and other income (2)(3) |
|
35.2 |
|
|
|
29.9 |
|
|
Property operating revenues |
|
339.3 |
|
|
|
322.4 |
|
|
|
|
|
|
||||
|
Property operating, maintenance and real estate taxes (2) |
|
132.0 |
|
|
|
124.9 |
|
|
Sales and marketing, gross |
|
5.5 |
|
|
|
4.9 |
|
|
Property operating expenses |
|
137.5 |
|
|
|
129.8 |
|
|
Income from property operations, excluding deferrals and property management (1) |
$ |
201.8 |
|
|
$ |
192.6 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
Manufactured home site figures and occupancy averages: |
|
|
|
||||
|
Total sites |
|
72,717 |
|
|
|
73,463 |
|
|
Occupied sites |
|
68,847 |
|
|
|
69,646 |
|
|
Occupancy % |
|
94.7 |
% |
|
|
94.8 |
% |
|
Monthly base rent per site |
$ |
797 |
|
|
$ |
753 |
|
|
|
|
|
|
||||
|
RV and marina base rental income: |
|
|
|
||||
|
Annual |
$ |
69.4 |
|
|
$ |
64.4 |
|
|
Seasonal |
|
28.0 |
|
|
|
26.6 |
|
|
Transient |
|
14.2 |
|
|
|
17.8 |
|
|
Total RV and marina base rental income |
$ |
111.6 |
|
|
$ |
108.8 |
|
______________________
|
1. |
Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net. |
|
2. |
MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Statements of Income on page 3. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table. |
|
3. |
Includes approximately $4.0 million of business interruption income from Hurricane Ian during the quarter ended March 31, 2023. |
Contacts
Paul Seavey
(800) 247-5279
