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ELS Reports Second Quarter Results

CHICAGO--(BUSINESS WIRE)--

Continued Strong Performance

Equity LifeStyle Properties, Inc. (ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and six months ended June 30, 2018. 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, 2018

For the quarter ended June 30, 2018, total revenues increased $19.2 million, or 8.7 percent, to $240.5 million compared to $221.3 million for the same period in 2017. Net income available for Common Stockholders for the quarter ended June 30, 2018 increased $6.6 million, or $0.07 per Common Share, to $46.1 million, or $0.52 per Common Share, compared to $39.5 million, or $0.45 per Common Share, for the same period in 2017.

For the six months ended June 30, 2018, total revenues increased $32.8 million, or 7.2 percent, to $486.5 million compared to $453.7 million for the same period in 2017. Net income available for Common Stockholders for the six months ended June 30, 2018 increased $10.0 million or $0.09 per Common Share, to $106.4 million, or $1.20 per Common Share, compared to $96.4 million or $1.11 per Common Share, for the same period in 2017.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended June 30, 2018, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders increased $10.7 million, or $0.09 per Common Share, to $85.6 million or $0.90 per Common Share, compared to $74.9 million, or $0.81 per Common Share, for the same period in 2017. For the six months ended June 30, 2018, FFO available for Common Stock and OP Unit holders increased $15.8 million, or $0.13 per Common Share, to $183.8 million or $1.94 per Common Share, compared to $168.0 million or $1.81 per Common Share, for the same period in 2017.

For the quarter ended June 30, 2018, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $8.7 million, or $0.08 per Common Share, to $83.8 million, or $0.89 per Common Share, compared to $75.1 million, or $0.81 per Common Share, for the same period in 2017. For the six months ended June 30, 2018, Normalized FFO available for Common Stock and OP Unit holders increased $13.4 million or $0.11 per Common Share, to $181.7 million, or $1.92 per Common Share, compared to $168.3 million or $1.81 per Common Share, for the same period in 2017.

For the quarter ended June 30, 2018, property operating revenues, excluding deferrals, increased $16.1 million to $227.5 million compared to $211.4 million for the same period in 2017. For the six months ended June 30, 2018, property operating revenues, excluding deferrals, increased $28.8 million to $462.2 million compared to $433.4 million for the same period in 2017. For the quarter ended June 30, 2018, income from property operations, excluding deferrals and property management, increased $9.1 million to $129.1 million compared to $120.0 million for the same period in 2017. For the six months ended June 30, 2018, income from property operations, excluding deferrals and property management, increased $14.7 million to $270.4 million compared to $255.7 million for the same period in 2017.

For the quarter ended June 30, 2018, Core property operating revenues, excluding deferrals, increased approximately 5.6 percent and Core income from property operations, excluding deferrals and property management, increased approximately 5.2 percent compared to the same period in 2017. For the six months ended June 30, 2018, Core property operating revenues, excluding deferrals, increased approximately 5.6 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.8 percent compared to the same period in 2017.

Investment Activity

On July 20, 2018, we completed the acquisition of Everglades Lakes, a 612-site MH community in Fort Lauderdale, Florida. The purchase price was $72.0 million and was funded with net proceeds from sales of common stock under our at-the-market ("ATM") equity offering program as discussed further below and proceeds from our line of credit.

Balance Sheet Activity

Subsequent to the quarter, we sold 252,864 shares of common stock as part of our ATM equity offering program at a weighted average price per share of $91.85, resulting in net cash proceeds of approximately $22.9 million.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of July 23, 2018, we own or have an interest in 410 quality properties in 32 states and British Columbia consisting of 153,549 sites.

For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.

Conference Call

A live webcast of our conference call discussing these results will take place tomorrow, Tuesday, July 24, 2018, at 10:00 a.m. Central Time. Please visit the Investor Information 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:

        Release Date     Earnings Call
Third Quarter 2018 Monday, October 22, 2018 Tuesday, October 23, 2018 10:00 a.m. CT
Fourth Quarter 2018 Monday, January 28, 2019 Tuesday, January 29, 2019 10:00 a.m. CT
First Quarter 2019 Monday, April 22, 2019 Tuesday, April 23, 2019 10:00 a.m. CT
 

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 2018, 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 dilutive effects of issuing additional securities;
  • the effect of changes in accounting for Leases set forth under the Codification Topic "Leases";
  • 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 “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent quarterly reports.

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.

 

Investor Information

 
Equity Research Coverage (1)
Robert W. Baird & Company     BMO Capital Markets     Green Street Advisors
Drew T. Babin John Kim John Pawlowski/ Ryan Lumb
215-553-7816 212-885-4115 949-640-8780

dbabin@rwbaird.com

johnp.kim@bmo.com

jpawlowski@greenst.com

rlumb@greenstreetadvisors.com

 
Bank of America Merrill Lynch
Global Research Citi Research Wells Fargo Securities
Jeffrey Spector/ Joshua Dennerlein Michael Bilerman/ Nick Joseph Todd Stender
646-855-1363 212-816-1383 562-637-1371

jeff.spector@baml.com

michael.bilerman@citi.com

todd.stender@wellsfargo.com

joshua.dennerlein@baml.com

nicholas.joseph@citi.com

 
Evercore ISI
Steve Sakwa/ Samir Khanal
212-466-5600

steve.sakwa@evercoreisi.com

samir.khanal@evercoreisi.com

 

______________________

1.   Any opinions, estimates or forecasts regarding our performance made by these analysts or agencies do not represent our opinions, forecasts or predictions. We do not by reference to these firms imply our endorsement of or concurrence with such information, conclusions or recommendations.
 

Financial Highlights

 

(In millions, except Common Stock and OP Units outstanding and per share data, unaudited)

 
    As of and for the Three Months Ended
June 30,   March 31,   December   September   June 30,
2018   2018   31, 2017   30, 2017   2017
Operating Information
Total revenues $ 240.5 $ 246.0 $ 230.0 $ 241.6 $ 221.3
Net income $ 49.2 $ 64.2 $ 48.0 $ 54.9 $ 44.5
Net income available for Common Stockholders $ 46.1 $ 60.2 $ 45.0 $ 48.5 $ 39.5
Adjusted EBITDA (1) $ 108.6 $ 122.0 $ 106.7 $ 111.5 $ 100.8
FFO available for Common Stock and OP Unit holders (1)(2) $ 85.6 $ 98.2 $ 79.4 $ 84.3 $ 74.9
Normalized FFO available for Common Stock and OP Unit holders (1)(2) $ 83.8 $ 97.9 $ 82.6 $ 85.1 $ 75.1
Funds available for distribution (FAD) available for Common Stock and OP Unit holders (1)(2) $ 71.4 $ 89.1 $ 72.6 $ 74.0 $ 63.5
 
Common Stock Outstanding (In thousands)

and Per Share Data

Common Stock and OP Units, end of the period 94,623 94,565 94,420 93,334 92,840
Weighted average Common Stock and OP Units outstanding - Fully Diluted 94,623 94,577 94,295 93,324 93,063
Net income per Common Share - Fully Diluted (3) $ 0.52 $ 0.68 $ 0.51 $ 0.56 $ 0.45
FFO per Common Share and OP Unit - Fully Diluted $ 0.90 $ 1.04 $ 0.84 $ 0.90 $ 0.81
Normalized FFO per Common Share and OP Unit - Fully Diluted $ 0.89 $ 1.04 $ 0.88 $ 0.91 $ 0.81
Dividends per Common Share $ 0.550 $ 0.550 $ 0.488 $ 0.488 $ 0.488
 
Balance Sheet
Total assets $ 3,700 $ 3,690 $ 3,610 $ 3,526 $ 3,485
Total liabilities $ 2,598 $ 2,589 $ 2,510 $ 2,511 $ 2,386
 
Market Capitalization
Total debt $ 2,251 $ 2,264 $ 2,224 $ 2,200 $ 2,072

Total market capitalization (4)

$ 10,947 $ 10,564 $ 10,629 $ 10,141 $ 10,224
 
Ratios
Total debt / total market capitalization 20.6 % 21.4 % 20.9 % 21.7 % 20.3 %
Total debt + preferred stock / total market capitalization 20.6 % 21.4 % 20.9 % 21.7 % 21.6 %
Total debt / Adjusted EBITDA (5) 5.0 5.1 5.1 5.1 4.9
Interest coverage (6) 4.4 4.4 4.4 4.4 4.3
Fixed charges + preferred distributions coverage (7) 4.3 4.2 4.1 4.0 3.9
______________________
1.   See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for definitions of Adjusted EBITDA, FFO, Normalized FFO and FAD; and reconciliation of Consolidated net income to Adjusted EBITDA.
2. See page 7 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 available for Common Stock and OP Unit holders.
3. Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest- Common OP Units.
4. See page 16 for market capitalization as of June 30, 2018.
5. Calculated using trailing twelve months Adjusted EBITDA. We believe trailing twelve months Adjusted EBITDA provides additional information for determining our ability to meet future debt service requirements.
6. Interest coverage is calculated by dividing trailing twelve months Adjusted EBITDA by the interest expense incurred during the same period.
7. See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for a definition of fixed charges. This ratio is calculated by dividing trailing twelve months Adjusted EBITDA by the sum of fixed charges and preferred stock dividends during the same period.
 
Balance Sheet

(In thousands, except share and per share data)

 
    June 30,     December 31,
2018 2017
(unaudited)
Assets
Investment in real estate:
Land $ 1,284,851 $ 1,221,375
Land improvements 3,072,474 3,045,221
Buildings and other depreciable property 692,495   649,217  
5,049,820 4,915,813
Accumulated depreciation (1,580,013 ) (1,516,694 )
Net investment in real estate 3,469,807 3,399,119
Cash and restricted cash 46,025 31,085
Notes receivable, net 34,672 49,477
Investment in unconsolidated joint ventures 57,699 53,080
Deferred commission expense 39,843 31,443
Escrow deposits, goodwill, and other assets, net 52,143   45,828  
Total Assets $ 3,700,189   $ 3,610,032  
Liabilities and Equity
Liabilities:
Mortgage notes payable $ 2,028,535 $ 1,971,715
Term loan 198,464 198,302
Unsecured line of credit 30,000
Accrued expenses and accounts payable 90,929 80,744
Deferred revenue – upfront payments from right-to-use contracts 112,288 85,596
Deferred revenue – right-to-use annual payments 12,806 9,932
Accrued interest payable 8,425 8,387
Rents and other customer payments received in advance and security deposits 94,868 79,267
Distributions payable 52,043   46,047  
Total Liabilities 2,598,358   2,509,990  
Equity:
Stockholders’ Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of December 31, 2017 and June 30, 2018; none issued and outstanding.
Common stock, $0.01 par value, 200,000,000 shares authorized as of June 30, 2018 and December 31, 2017; 88,802,758 and 88,585,160 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively 884 883
Paid-in capital 1,248,047 1,242,109
Distributions in excess of accumulated earnings (218,453 ) (211,980 )
Accumulated other comprehensive income 3,579   942  
Total Stockholders’ Equity 1,034,057 1,031,954
Non-controlling interests – Common OP Units 67,774   68,088  
Total Equity 1,101,831   1,100,042  
Total Liabilities and Equity $ 3,700,189   $ 3,610,032  
 
Consolidated Income Statement

(In thousands, unaudited)

 
    Quarters Ended     Six Months Ended
June 30, June 30,
2018   2017 2018   2017
Revenues:
Community base rental income $ 128,579 $ 121,964 $ 255,318 $ 242,656
Rental home income 3,561 3,632 7,076 7,237
Resort base rental income 55,231 50,055 119,485 111,123
Right-to-use annual payments 11,891 11,350 23,410 22,602
Right-to-use contracts current period, gross 3,944 3,798 7,106 7,004
Right-to-use contract upfront payments, deferred, net (2,021 ) (1,321 ) (3,306 ) (2,096 )
Utility and other income 24,320 20,650 49,841 42,776
Gross revenues from home sales 9,105 7,833 17,414 14,860
Brokered resale revenue and ancillary services revenues, net 617 444 2,018 2,105
Interest income 1,862 1,798 3,812 3,568
Income from other investments, net 3,413   1,109   4,353   1,866  
Total revenues 240,502 221,312 486,527 453,701
 
Expenses:
Property operating and maintenance 80,091 72,901 154,999 140,955
Rental home operating and maintenance 1,629 1,657 3,053 3,208
Real estate taxes 13,440 13,943 27,575 27,980
Sales and marketing, gross 3,305 2,894 6,117 5,584
Right-to-use contract commissions, deferred, net (262 ) (112 ) (286 ) (196 )
Property management 13,472 13,023 27,153 25,583
Depreciation on real estate assets and rental homes 32,452 30,247 63,774 60,357
Amortization of in-place leases 1,893 958 2,945 1,990
Cost of home sales 9,632 7,895 18,206 15,014
Home selling expenses 973 929 2,048 1,854
General and administrative 9,669 8,461 17,707 15,834
Other expenses 367 271 710 490
Interest and related amortization 26,285   24,822   51,988   49,701  
Total expenses 192,946   177,889   375,989   348,354  
Income before equity in income of unconsolidated joint ventures 47,556 43,423 110,538 105,347
Equity in income of unconsolidated joint ventures 1,613   1,040   2,808   2,190  
Consolidated net income 49,169   44,463   113,346   107,537  
 
Income allocated to non-controlling interest-Common OP Units (3,024 ) (2,649 ) (6,979 ) (6,539 )

Series C redeemable perpetual preferred stock dividends

(8 ) (2,316 ) (8 ) (4,613 )
Net income available for Common Stockholders $ 46,137   $ 39,498   $ 106,359   $ 96,385  
 
 

Non-GAAP Financial Measures

 
Second Quarter 2018 - Selected Non-GAAP Financial Measures

(In millions, except per share data, unaudited)

 
    Quarter Ended
June 30, 2018

Income from property operations, excluding deferrals and property management - 2018 Core (1)

$ 125.4
Income from property operations, excluding deferrals and property management - Non-Core (1) 3.7
Property management and general and administrative (23.1 )
Other income and expenses 4.1
Financing costs and other (26.3 )
Normalized FFO available for Common Stock and OP Unit holders (2) 83.8
Insurance proceeds due to catastrophic weather event (3) 1.8  
FFO available for Common Stock and OP Unit holders (2) $ 85.6  
 
Normalized FFO per Common Share and OP Unit - Fully Diluted $ 0.89
FFO per Common Share and OP Unit - Fully Diluted $ 0.90
 
 
Normalized FFO available for Common Stock and OP Unit holders (2) $ 83.8
Non-revenue producing improvements to real estate (12.4 )
FAD available for Common Stock and OP Unit holders (2) $ 71.4  
 
Weighted average Common Stock and OP Units - Fully Diluted 94.6
__________________
1.   See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for definitions of Non-GAAP financial measures Income from property operations, excluding deferrals and property management, Core, Non-Core, and reconciliation of income from property operations, excluding deferrals and property management to Net income available to Common Stockholders. See page 9 for details of the 2018 Core Income from Property Operations, excluding deferrals and property management. See page 10 for details of the Income from Property Operations, excluding deferrals and property management for the Non-Core properties.
2. See page 7 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 available for Common Stock and OP Unit holders. See definitions of Non-GAAP financial measures of FFO, Normalized FFO and FAD and Non-revenue producing improvements in Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information.
3. Represents insurance recovery revenue from reimbursement for capital expenditures related to Hurricane Irma.
 
Reconciliation of Net Income to Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

 
    Quarters Ended     Six Months Ended
June 30, June 30,
2018   2017 2018   2017
Net income available for Common Stockholders $ 46,137 $ 39,498 $ 106,359 $ 96,385
Income allocated to Common OP Units 3,024 2,649 6,979 6,539
Right-to-use contract upfront payments, deferred, net (1) 2,021 1,321 3,306 2,096
Right-to-use contract commissions, deferred, net (2) (262 ) (112 ) (286 ) (196 )
Depreciation on real estate assets 30,062 27,608 58,883 55,061
Depreciation on rental homes 2,390 2,639 4,891 5,296
Amortization of in-place leases 1,893 958 2,945 1,990
Depreciation on unconsolidated joint ventures 367   364   739   811  
FFO available for Common Stock and OP Unit holders (3) 85,632 74,925 183,816 167,982
Transaction costs (4) 220 324
Insurance proceeds due to catastrophic weather event (5) (1,806 )       (2,092 )    
Normalized FFO available for Common Stock and OP Unit holders(3) 83,826 75,145 181,724 168,306
Non-revenue producing improvements to real estate (12,411 ) (11,648 ) (21,175 ) (18,808 )
FAD available for Common Stock and OP Unit holders (3) $ 71,415   $ 63,497   $ 160,549   $ 149,498  
 
Net income available per Common Share - Basic $ 0.52 $ 0.46 $ 1.20 $ 1.12
Net income available per Common Share - Fully Diluted (6) $ 0.52 $ 0.45 $ 1.20 $ 1.11
 
FFO per Common Share and OP Unit-Basic $ 0.91 $ 0.81 $ 1.95 $ 1.81
FFO per Common Share and OP Unit-Fully Diluted $ 0.90 $ 0.81 $ 1.94 $ 1.81
 
Normalized FFO per Common Share and OP Unit-Basic $ 0.89 $ 0.81 $ 1.93 $ 1.82
Normalized FFO per Common Share and OP Unit-Fully Diluted $ 0.89 $ 0.81 $ 1.92 $ 1.81
 
Average Common Stock - Basic 88,549 86,763 88,551 86,408
Average Common Stock and OP Units - Basic 94,375 92,649 94,375 92,643
Average Common Stock and OP Units - Fully Diluted 94,623 93,063 94,611 93,041
___________________________
1.   The Company adopted ASU 2014-09, Revenue from Contracts with Customers, and all related amendments, effective January 1, 2018. Upon adoption, right-to-use upfront nonrefundable payments will be recognized on a straight-line basis over 20 years to reflect our current estimated customer life for the majority of our upgrade contracts. The amount shown represents the deferral of a substantial portion of current period upgrade sales, offset by amortization of prior period sales.
2. The deferred commissions will be amortized using the same method as used for the related non-refundable upfront payments from the entry of right-to-use contracts and upgrade sales. The amount shown represents the deferral of a substantial portion of current period commissions on those contracts, offset by the amortization of prior period commissions.
3. See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for Non-GAAP financial measure definitions of FFO, Normalized FFO and FAD and for a definition of Non-revenue producing improvements.
4. The Company adopted ASU 2017-01, Business Combinations, effective January 1, 2018. Upon adoption, transaction costs related to asset acquisitions are capitalized. All acquisitions completed subsequent to January 1, 2018 were determined by the Company to be asset acquisitions and, as such, the related transaction costs were capitalized. Transaction costs related to 2017 acquisitions, occurring prior to the adoption of this guidance, are included in General and administrative on the Consolidated Income Statement on page 4.
5. Represents insurance recovery revenue from reimbursement for capital expenditures related to Hurricane Irma.
6. 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     Six Months Ended
June 30, June 30,
2018   2017 2018   2017
Community base rental income (2) $ 128.6 $ 122.0 $ 255.3 $ 242.7
Rental home income 3.6 3.6 7.1 7.2
Resort base rental income (3) 55.2 50.1 119.5 111.1
Right-to-use annual payments 11.9 11.3 23.4 22.6
Right-to-use contracts current period, gross 3.9 3.8 7.1 7.0
Utility and other income (4) 24.3   20.6   49.8   42.8  
Property operating revenues 227.5 211.4 462.2 433.4
 
Property operating, maintenance and real estate taxes (4) 93.5 86.8 182.6 168.9
Rental home operating and maintenance 1.6 1.7 3.1 3.2
Sales and marketing, gross 3.3   2.9   6.1   5.6  
Property operating expenses 98.4   91.4   191.8   177.7  
Income from property operations, excluding deferrals and property management (1) $ 129.1   $ 120.0   $ 270.4   $ 255.7  
 
Manufactured home site figures and occupancy averages:
Total sites 71,797 71,043 71,563 71,017
Occupied sites 67,870 66,822 67,620 66,732
Occupancy % 94.5 % 94.0 % 94.5 % 93.9 %
Monthly base rent per site $ 631 $ 608 $ 629 $ 606
 
Resort base rental income:
Annual $ 36.6 $ 32.9 $ 71.8 65.0
Seasonal 5.2 4.9 24.2 23.4
Transient 13.4   12.3   23.5   22.7  
Total resort base rental income $ 55.2   $ 50.1   $ 119.5   $ 111.1  
_________________________
1.   Excludes property management and the GAAP deferral of right-to-use contract upfront payments and related commissions, net. See page 4 for the Consolidated Income Statement and see Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for Non-GAAP measure definitions and reconciliation of Income from property operations, excluding deferrals and property management to Net income available to Common Stockholders.
2. See the manufactured home site figures and occupancy averages below within this table.
3. See resort base rental income detail included below within this table.
4. Includes impact for Hurricane Irma. Utility and other income includes insurance recovery revenues of $1.7 million and $5.2 million, including $1.5 million and $2.5 million which we have identified as business interruption, for the quarter and six months ended June 30, 2018. Property operating, maintenance and real estate taxes includes debris removal and cleanup costs of $0.2 million and $2.6 million for the quarter and six months ended June 30, 2018.
 

2018 Core Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)

 
    Quarters Ended         Six Months Ended    
June 30, % June 30, %
2018   2017

Change (2)

2018   2017 Change (2)
Community base rental income (3) $ 127.4 $ 121.8 4.6 % $ 253.7 $ 242.5 4.6 %
Rental home income 3.6 3.6 (2.0 )% 7.1 7.2 (2.2 )%
Resort base rental income (4) 51.9 48.2 7.7 % 113.9 105.8 7.6 %
Right-to-use annual payments 11.9 11.4 4.8 % 23.4 22.6 3.6 %
Right-to-use contracts current period, gross 3.9 3.8 3.8 % 7.1 7.0 1.5 %
Utility and other income (5) 22.2   20.5   8.5 % 46.4   42.4   9.3 %
Property operating revenues 220.9 209.3 5.6 % 451.6 427.5 5.6 %
 
Property operating, maintenance and real estate taxes (5) 90.6 85.5 5.9 % 177.7 166.2 6.9 %
Rental home operating and maintenance 1.6 1.7 (1.7 )% 3.1 3.2 (4.8 )%
Sales and marketing, gross 3.3   2.9   14.2 % 6.1   5.6   9.5 %
Property operating expenses 95.5   90.1   6.0 % 186.9   175.0   6.8 %
Income from property operations, excluding deferrals and property management (1) $ 125.4   $ 119.2   5.2 % $ 264.7   $ 252.5   4.8 %
Occupied sites (6) 67,221 66,871
 
Core manufactured home site figures and occupancy averages:
Total sites 70,907 70,879 70,891 70,871
Occupied sites 67,127 66,787 67,090 66,714
Occupancy % 94.7 % 94.2 % 94.6 % 94.1 %
Monthly base rent per site $ 633 $ 608 $ 630 $ 606
 
Resort base rental income:
Annual $ 34.8 $ 32.5 7.0 % $ 68.7 $ 64.3 6.9 %
Seasonal 4.9 4.4 11.8 % 23.6 21.5 9.6 %
Transient 12.2   11.2   8.3 % 21.6   20.0   7.7 %
Total resort base rental income $ 51.9   $ 48.1   7.7 % $ 113.9   $ 105.8   7.6 %
___________________________
1.   Excludes property management and the GAAP deferral of right-to-use contract upfront payments and related commissions, net. See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for definitions of Non-GAAP measures Income from property operations, excluding deferrals and property management, and Core.
2. Calculations prepared using actual results without rounding.
3. See the Core manufactured home site figures and occupancy averages included below within this table.
4. See resort base rental income detail included below within this table.
5. Includes impact for Hurricane Irma. Utility and other income includes insurance recovery revenues of $0.1 million and $2.3 million for the quarter and six months ended June 30, 2018. Property operating, maintenance and real estate taxes includes debris removal and cleanup costs of $0.1 million and $2.3 million for the quarter null