U.S. Markets open in 2 hrs 31 mins

ELS Reports Third Quarter Results

CHICAGO--(BUSINESS WIRE)--

Strong Performance Drives 2019 Guidance Increase and Preliminary 2020 Guidance Growth Rates

Equity LifeStyle Properties, Inc. (ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and nine months ended September 30, 2019. All Common Stock and OP units as well as per share results reflect the two-for-one stock split that was completed on October 15, 2019. Additionally, all per share results are reported on a fully diluted basis unless otherwise noted.

Financial Results for the Quarter and Nine Months Ended September 30, 2019

For the quarter ended September 30, 2019, total revenues increased $14.5 million, or 5.6 percent, to $271.2 million compared to $256.7 million for the same period in 2018. For the quarter ended September 30, 2019, net income available for Common Stockholders increased $8.4 million, or $0.04 per Common Share, to $64.5 million, or $0.35 per Common Share, compared to $56.1 million, or $0.31 per Common Share, for the same period in 2018.

For the nine months ended September 30, 2019, total revenues increased $35.4 million, or 4.8 percent, to $778.6 million compared to $743.2 million for the same period in 2018. For the nine months ended September 30, 2019, net income available for Common Stockholders increased $61.8 million, or $0.33 per Common Share, to $224.2 million, or $1.24 per Common Share, compared to $162.4 million, or $0.91 per Common Share, for the same period in 2018.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended September 30, 2019, Funds from Operations (“FFO”) available for Common Stock and OP Unit holders increased $10.9 million, or $0.05 per Common Share, to $108.6 million, or $0.56 per Common Share, compared to $97.7 million, or $0.51 per Common Share, for the same period in 2018. For the nine months ended September 30, 2019, FFO available for Common Stock and OP Unit holders increased $24.9 million, or $0.12 per Common Share, to $306.4 million, or $1.60 per Common Share, compared to $281.5 million, or $1.48 per Common Share, for the same period in 2018.

For the quarter ended September 30, 2019, Normalized Funds from Operations (“Normalized FFO”) available for Common Stock and OP Unit holders increased $8.8 million, or $0.04 per Common Share, to $102.7 million, or $0.53 per Common Share, compared to $93.9 million, or $0.49 per Common Share, for the same period in 2018. For the nine months ended September 30, 2019, Normalized FFO available for Common Stock and OP Unit holders increased $26.7 million, or $0.13 per Common Share, to $302.3 million, or $1.58 per Common Share, compared to $275.6 million, or $1.45 per Common Share, for the same period in 2018.

For the quarter ended September 30, 2019, property operating revenues, excluding deferrals, increased $14.6 million to $256.2 million compared to $241.6 million for the same period in 2018. For the nine months ended September 30, 2019, property operating revenues, excluding deferrals, increased $43.9 million to $747.8 million compared to $703.9 million for the same period in 2018. For the quarter ended September 30, 2019, income from property operations, excluding deferrals and property management, increased $6.9 million to $145.3 million compared to $138.4 million for the same period in 2018. For the nine months ended September 30, 2019, income from property operations, excluding deferrals and property management, increased $25.5 million to $434.4 million compared to $408.9 million for the same period in 2018.

For the quarter ended September 30, 2019, Core property operating revenues, excluding deferrals, increased approximately 4.8 percent and Core income from property operations, excluding deferrals and property management, increased approximately 5.1 percent compared to the same period in 2018. For the nine months ended September 30, 2019, Core property operating revenues, excluding deferrals, increased approximately 4.6 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 September 10, 2019, we completed the acquisition of the remaining interest in the Loggerhead joint venture that owns 11 marinas for a purchase price of approximately $49.0 million. As part of the acquisition, we also funded the joint venture's repayment of its non-transferable debt of approximately $72.0 million. The transaction was funded with proceeds from our unsecured line of credit. Following the consummation of the transaction, we own 100% of the marinas.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of October 21, 2019, we own or have an interest in 413 quality properties in 33 states and British Columbia consisting of 156,081 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, October 22, 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:

 

 

Release Date

 

Earnings Call

Fourth Quarter 2019

 

Monday, January 27, 2020

 

Tuesday, January 28, 2020 10:00 a.m. CT

First Quarter 2020

 

Monday, April 20, 2020

 

Tuesday, April 21, 2020 10:00 a.m. CT

Second Quarter 2020

 

Monday, July 20, 2020

 

Tuesday, July 21, 2020 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 2019 and 2020, 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.

Investor Information

 

Equity Research Coverage (1)

Bank of America Merrill Lynch
Global Research

BMO Capital Markets

Citi Research

Jeffrey Spector/ Joshua Dennerlein

John Kim

Michael Bilerman/ Nick Joseph

646-855-1363

212-885-4115

212-816-1383

jeff.spector@baml.com

johnp.kim@bmo.com

michael.bilerman@citi.com

joshua.dennerlein@baml.com

 

nicholas.joseph@citi.com

 

 

 

Evercore ISI

Green Street Advisors

Robert W. Baird & Company

Steve Sakwa/ Samir Khanal

John Pawlowski

Drew T. Babin

212-466-5600

949-640-8780

215-553-7816

steve.sakwa@evercoreisi.com

jpawlowski@greenst.com

dbabin@rwbaird.com

samir.khanal@evercoreisi.com

 

 

 

 

 

Wells Fargo Securities

 

 

Todd Stender

 

 

562-637-1371

 

 

todd.stender@wellsfargo.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 (adjusted for stock split), unaudited)

 

 

As of and for the Three Months Ended

 

Sept 30,
2019

June 30,
2019

March 31,
2019

Dec 31,
2018

Sept 30,
2018

Operating Information

 

 

 

 

 

Total revenues

$

 

271.2

 

$

 

248.4

 

$

 

259.1

 

$

 

243.5

 

$

 

256.7

 

Net income

$

 

68.2

 

$

 

49.1

 

$

 

120.5

 

$

 

53.4

 

$

 

59.7

 

Net income available for Common Stockholders

$

 

64.5

 

$

 

46.4

 

$

 

113.3

 

$

 

50.2

 

$

 

56.1

 

Adjusted EBITDAre (1)

$

 

127.0

 

$

 

117.7

 

$

 

133.3

 

$

 

117.9

 

$

 

119.5

 

FFO available for Common Stock and OP Unit holders (1)(2)

$

 

108.6

 

$

 

89.8

 

$

 

108.0

 

$

 

90.4

 

$

 

97.7

 

Normalized FFO available for Common Stock and OP Unit holders (1)(2)

$

 

102.7

 

$

 

91.9

 

$

 

107.7

 

$

 

92.3

 

$

 

93.9

 

Funds available for distribution ("FAD") available for Common Stock and OP Unit holders (1)(2)

$

 

88.4

 

$

 

79.1

 

$

 

97.6

 

$

 

80.4

 

$

 

82.1

 

 

 

 

 

 

 

Common Stock and OP Units Outstanding (In thousands) and Per Share Data

 

 

 

 

 

Common Stock and OP Units, end of the period

 

192,574

 

 

192,562

 

 

191,470

 

 

191,334

 

 

190,986

 

Weighted average Common Stock and OP Units outstanding - Fully Diluted

 

192,400

 

 

191,860

 

 

191,248

 

 

191,154

 

 

190,526

 

Net income per Common Share - Fully Diluted (3)

$

 

0.35

 

$

 

0.26

 

$

 

0.63

 

$

 

0.28

 

$

 

0.31

 

FFO per Common Share and OP Unit - Fully Diluted

$

 

0.56

 

$

 

0.47

 

$

 

0.56

 

$

 

0.47

 

$

 

0.51

 

Normalized FFO per Common Share and OP Unit - Fully Diluted

$

 

0.53

 

$

 

0.48

 

$

 

0.56

 

$

 

0.48

 

$

 

0.49

 

Dividends per Common Share

$

 

0.3063

 

$

 

0.3063

 

$

 

0.3063

 

$

 

0.2750

 

$

 

0.2750

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

Total assets

$

 

4,136

 

$

 

4,014

 

$

 

4,009

 

$

 

3,926

 

$

 

3,855

 

Total liabilities

$

 

2,816

 

$

 

2,707

 

$

 

2,752

 

$

 

2,732

 

$

 

2,665

 

 

 

 

 

 

 

Market Capitalization

 

 

 

 

 

Total debt (4)

$

 

2,406

 

$

 

2,300

 

$

 

2,372

 

$

 

2,386

 

$

 

2,318

 

Total market capitalization (5)

$

 

15,270

 

$

 

13,983

 

$

 

13,315

 

$

 

11,678

 

$

 

11,528

 

 

 

 

 

 

 

Ratios

 

 

 

 

 

Total debt / total market capitalization

 

15.8

%

 

16.4

%

 

17.8

%

 

20.4

%

 

20.1

%

Total debt / Adjusted EBITDAre (6)

 

4.9

 

 

4.7

 

 

4.9

 

 

5.1

 

 

5.1

 

Interest coverage (7)

 

4.8

 

 

4.7

 

 

4.6

 

 

4.5

 

 

4.4

 

Fixed charges + preferred distributions coverage (8)

 

4.7

 

 

4.6

 

 

4.5

 

 

4.5

 

 

4.4

 

______________________

1.

See Non-GAAP Financial Measures Definitions and Other Terms at the end of the supplemental information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre.

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 Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units.

4.

Excludes deferred financing costs of approximately $24.6 million as of September 30, 2019.

5.

See page 18 for market capitalization as of September 30, 2019.

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 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 EBITDAre by the sum of fixed charges and preferred stock dividends during the same period.

Consolidated Balance Sheets

 

(In thousands, except share and per share data (adjusted for stock split))

 

 

September 30, 2019

 

December 31, 2018

 

(unaudited)

 

 

Assets

 

 

 

Investment in real estate:

 

 

 

Land

$

1,516,956

 

 

$

1,408,832

 

Land improvements

3,290,312

 

 

3,143,745

 

Buildings and other depreciable property

870,511

 

 

720,900

 

 

5,677,779

 

 

5,273,477

 

Accumulated depreciation

(1,739,285

)

 

(1,631,888

)

Net investment in real estate

3,938,494

 

 

3,641,589

 

Cash and restricted cash

42,386

 

 

68,974

 

Notes receivable, net

37,228

 

 

35,041

 

Investment in unconsolidated joint ventures

20,339

 

 

57,755

 

Deferred commission expense

40,953

 

 

40,308

 

Other assets, net

56,551

 

 

46,227

 

Assets held for sale, net

 

 

35,914

 

Total Assets

$

4,135,951

 

 

$

3,925,808

 

 

 

 

 

Liabilities and Equity

 

 

 

Liabilities:

 

 

 

Mortgage notes payable, net

$

2,062,736

 

 

$

2,149,726

 

Term loan, net

198,868

 

 

198,626

 

Unsecured line of credit

120,000

 

 

 

Accounts payable and other liabilities

143,102

 

 

102,854

 

Deferred revenue – upfront payments from right-to-use contracts (membership upgrade sales)

124,577

 

 

116,363

 

Deferred revenue – right-to-use annual payments (membership subscriptions)

11,395

 

 

10,055

 

Accrued interest payable

8,410

 

 

8,759

 

Rents and other customer payments received in advance and security deposits

88,094

 

 

81,114

 

Distributions payable

58,976

 

 

52,617

 

Liabilities related to assets held for sale

 

 

12,350

 

Total Liabilities

2,816,158

 

 

2,732,464

 

Equity:

 

 

 

Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2019 and December 31, 2018; none issued and outstanding.

 

 

 

Common stock, $0.01 par value, 400,000,000 and 200,000,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively; 182,080,186 and 179,842,036 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively.

1,802

 

 

1,792

 

Paid-in capital

1,399,961

 

 

1,328,495

 

Distributions in excess of accumulated earnings

(153,505

)

 

(211,034

)

Accumulated other comprehensive income (loss)

(499

)

 

2,299

 

Total Stockholders’ Equity

1,247,759

 

 

1,121,552

 

Non-controlling interests – Common OP Units

72,034

 

 

71,792

 

Total Equity

1,319,793

 

 

1,193,344

 

Total Liabilities and Equity

$

4,135,951

 

 

$

3,925,808

 

Consolidated Income Statements

 

(In thousands, unaudited)

 

 

Quarters Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

Rental income

$

225,116

 

 

$

211,102

 

 

$

660,689

 

 

$

617,250

 

Right-to-use annual payments (membership subscriptions)

13,150

 

 

12,206

 

 

38,052

 

 

35,616

 

Right-to-use contracts current period, gross (membership upgrade sales)

5,730

 

 

4,863

 

 

14,609

 

 

11,969

 

Right-to-use contract upfront payments, deferred, net

(3,530

)

 

(2,883

)

 

(8,213

)

 

(6,189

)

Other income

11,263

 

 

13,419

 

 

31,898

 

 

38,991

 

Gross revenues from home sales

8,438

 

 

9,339

 

 

22,738

 

 

26,753

 

Brokered resale and ancillary services revenues, net

2,133

 

 

1,362

 

 

4,564

 

 

3,380

 

Interest income

1,831

 

 

1,846

 

 

5,385

 

 

5,658

 

Income from other investments, net

7,029

 

 

5,421

 

 

8,894

 

 

9,774

 

Total revenues

271,160

 

 

256,675

 

 

778,616

 

 

743,202

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Property operating and maintenance

90,765

 

 

86,349

 

 

253,581

 

 

244,401

 

Real estate taxes

15,166

 

 

13,240

 

 

45,596

 

 

40,815

 

Sales and marketing, gross

4,063

 

 

3,568

 

 

11,686

 

 

9,685

 

Right-to-use contract commissions, deferred, net

(313

)

 

(458

)

 

(893

)

 

(744

)

Property management

14,605

 

 

13,589

 

 

42,675

 

 

40,742

 

Depreciation and amortization

37,032

 

 

34,980

 

 

112,785

 

 

101,699

 

Cost of home sales

8,434

 

 

9,742

 

 

23,230

 

 

27,948

 

Home selling expenses

1,033

 

 

1,101

 

 

3,218

 

 

3,149

 

General and administrative

8,710

 

 

8,816

 

 

27,844

 

 

26,523

 

Other expenses

1,460

 

 

386

 

 

2,427

 

 

1,096

 

Early debt retirement

 

 

 

 

1,491

 

 

 

Interest and related amortization

25,547

 

 

26,490

 

 

77,964

 

 

78,478

 

Total expenses

206,502

 

 

197,803

 

 

601,604

 

 

573,792

 

Gain on sale of real estate, net

 

 

 

 

52,507

 

 

 

Income before equity in income of unconsolidated joint ventures

64,658

 

 

58,872

 

 

229,519

 

 

169,410

 

Equity in income of unconsolidated joint ventures

3,518

 

 

788

 

 

8,277

 

 

3,596

 

Consolidated net income

68,176

 

 

59,660

 

 

237,796

 

 

173,006

 

 

 

 

 

 

 

 

 

Income allocated to non-controlling interests – Common OP Units

(3,715

)

 

(3,590

)

 

(13,617

)

 

(10,569

)

Redeemable perpetual preferred stock dividends

 

 

 

 

(8

)

 

(8

)

Net income available for Common Stockholders

$

64,461

 

 

$

56,070

 

 

$

224,171

 

 

$

162,429

 

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 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 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 Reconciliations on pages 20 - 22.

Selected Non-GAAP Financial Measures

 

(In millions, except per share data (adjusted for stock split), unaudited)

 

 

Quarter Ended

 

September 30, 2019

Income from property operations, excluding deferrals and property management - 2019 Core (1)

$

140.5

 

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

 

4.8

 

Property management and general and administrative

 

(23.3

)

Other income and expenses

 

6.2

 

Interest and related amortization

 

(25.5

)

Normalized FFO available for Common Stock and OP Unit holders (2)

 

102.7

 

Insurance proceeds due to catastrophic weather event (3)

 

5.9

 

FFO available for Common Stock and OP Unit holders (2)

$

108.6

 

 

 

Normalized FFO per Common Share and OP Unit - Fully Diluted

$0.53

 

FFO per Common Share and OP Unit - Fully Diluted

$0.56

 

 

 

 

 

Normalized FFO available for Common Stock and OP Unit holders (2)

$

102.7

 

Non-revenue producing improvements to real estate (2)

 

(14.3

)

FAD available for Common Stock and OP Unit holders (2)

$

88.4

 

 

 

Weighted average Common Stock and OP Units - Fully Diluted

 

192.4

 

__________________________

1.

See page 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 7 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 available for Common Stock and OP Unit holders.

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 (adjusted for stock split), unaudited)

 

 

 

Quarters Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Net income available for Common Stockholders

 

$

64,461

 

 

$

56,070

 

 

$

224,171

 

 

$

162,429

 

Income allocated to non-controlling interests – Common OP Units

 

3,715

 

 

3,590

 

 

13,617

 

 

10,569

 

Right-to-use contract upfront payments, deferred, net

 

3,530

 

 

2,883

 

 

8,213

 

 

6,189

 

Right-to-use contract commissions, deferred, net

 

(313

)

 

(458

)

 

(893

)

 

(744

)

Depreciation and amortization

 

37,032

 

 

34,980

 

 

112,785

 

 

101,699

 

Depreciation on unconsolidated joint ventures

 

174

 

 

651

 

 

1,047

 

 

1,390

 

Gain on sale of real estate, net

 

 

 

 

 

(52,507

)

 

 

FFO available for Common Stock and OP Unit holders

 

108,599

 

 

97,716

 

 

306,433

 

 

281,532

 

Early debt retirement

 

 

 

 

 

2,085

 

 

 

Insurance proceeds due to catastrophic weather event and other, net (1)

 

(5,856

)

 

(3,833

)

 

(6,205

)

 

(5,925

)

Normalized FFO available for Common Stock and OP Unit holders

 

102,743

 

 

93,883

 

 

302,313

 

 

275,607

 

Non-revenue producing improvements to real estate

 

(14,357

)

 

(11,790

)

 

(37,270

)

 

(32,965

)

FAD available for Common Stock and OP Unit holders

 

$

88,386

 

 

$

82,093

 

 

$

265,043

 

 

$

242,642

 

 

 

 

 

 

 

 

 

 

Net income available per Common Share - Basic

 

$

0.35

 

 

$

0.31

 

 

$

1.24

 

 

$

0.91

 

Net income available per Common Share - Fully Diluted (2)

 

$

0.35

 

 

$

0.31

 

 

$

1.24

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

FFO per Common Share and OP Unit - Basic

 

$

0.57

 

 

$

0.51

 

 

$

1.60

 

 

$

1.49

 

FFO per Common Share and OP Unit - Fully Diluted

 

$

0.56

 

 

$

0.51

 

 

$

1.60

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

Normalized FFO per Common Share and OP Unit - Basic

 

$

0.53

 

 

$

0.49

 

 

$

1.58

 

 

$

1.46

 

Normalized FFO per Common Share and OP Unit - Fully Diluted

 

$

0.53

 

 

$

0.49

 

 

$

1.58

 

 

$

1.45

 

 

 

 

 

 

 

 

 

 

Average Common Stock - Basic

 

181,649

 

 

178,400

 

 

180,515

 

 

177,520

 

Average Common Stock and OP Units - Basic

 

192,145

 

 

189,942

 

 

191,599

 

 

189,138

 

Average Common Stock and OP Units - Fully Diluted

192,400

 

190,526

 

 

191,840

 

 

189,654

 

______________________

1.

Represents insurance recovery revenue from reimbursement for capital expenditures related to Hurricane Irma.

2.

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 September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Community base rental income (2)

$

137.6

 

 

$

130.7

 

 

$

409.1

 

 

$

386.1

 

Rental home income

3.8

 

 

3.5

 

 

11.0

 

 

10.6

 

Resort and marina base rental income (3)

71.7

 

 

64.4

 

 

204.8

 

 

183.8

 

Right-to-use annual payments (membership subscriptions)

13.1

 

 

12.2

 

 

38.0

 

 

35.6

 

Right-to-use contracts current period, gross (membership upgrade sales)

5.7

 

 

4.9

 

 

14.6

 

 

12.0

 

Utility and other income (4)

24.3

 

 

25.9

 

 

70.3

 

 

75.8

 

Property operating revenues

256.2

 

 

241.6

 

 

747.8

 

 

703.9

 

 

 

 

 

 

 

 

 

Property operating, maintenance and real estate taxes (5)

105.3

 

 

97.7

 

 

297.7

 

 

280.3

 

Rental home operating and maintenance

1.6

 

 

1.9

 

 

4.1

 

 

5.0

 

Sales and marketing, gross

4.0

 

 

3.6

 

 

11.6

 

 

9.7

 

Property operating expenses

110.9

 

 

103.2

 

 

313.4

 

 

295.0

 

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

$

145.3

 

 

$

138.4

 

 

$

434.4

 

 

$

408.9

 

 

 

 

 

 

 

 

 

Manufactured home site figures and occupancy averages:

 

 

 

 

 

 

 

Total sites

72,008

 

 

72,221

 

 

72,121

 

 

71,782

 

Occupied sites

68,352

 

 

68,330

 

 

68,419

 

 

67,857

 

Occupancy %

94.9

%

 

94.6

%

 

94.9

%

 

94.5

%

Monthly base rent per site

$

671

 

 

$

638

 

 

$

664

 

 

$

632

 

 

 

 

 

 

 

 

 

Resort and marina base rental income:

 

 

 

 

 

 

 

Annual

$

42.6

 

 

$

37.4

 

 

$

122.4

 

 

$

109.2

 

Seasonal

5.4

 

 

4.9

 

 

32.2

 

 

29.0

 

Transient

23.7

 

 

22.1

 

 

50.2

 

 

45.6

 

Total resort and marina base rental income

$

71.7

 

 

$

64.4

 

 

$

204.8

 

 

$

183.8

 

____________________

1.

 

Excludes property management and the GAAP deferral of right-to-use contract upfront payments and related commissions, net.

2.

See the manufactured home site figures and occupancy averages included below within this table.

3.

See resort and marina base rental income detail included below within this table.

4.

Includes Hurricane Irma insurance recovery revenues of $0.2 million and $0.8 million, which we have identified as business interruption related to Non-Core properties for the quarter and nine months ended September 30, 2019, respectively, and Hurricane Irma insurance recovery revenues of $1.3 million and $6.5 million, of which we have identified $1.2 million and $3.7 million as business interruption related to Non-Core properties, for the quarter and nine months ended September 30, 2018, respectively.

5.

Property operating, maintenance and real estate taxes includes bad debt expense for the quarters and nine months ended September 30, 2019 and 2018.

Property operating, maintenance and real estate taxes includes debris removal and cleanup costs related to Hurricane Irma of $0.1 million and $2.6 million for the quarter and nine months ended September 30, 2018, respectively.

Core Income from Property Operations (1)

 

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

 

 

Quarters Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

Change (2)

 

2019

 

2018

 

Change (2)

Community base rental income (3)

$

 

133.8

 

 

$

 

126.9

 

 

5.4

%

 

$

 

397.2

 

 

$

 

377.6

 

 

5.2

%

Rental home income

 

3.8

 

 

 

3.2

 

 

18.4

%

 

 

10.9

 

 

 

9.7

 

 

12.4

%

Resort base rental income (4)

 

65.5

 

 

 

62.6

 

 

4.5

%

 

 

187.6

 

 

 

179.9

 

 

4.3

%

Right-to-use annual payments (membership subscriptions)

 

13.1

 

 

 

12.2

 

 

7.7

%

 

 

38.0

 

 

 

35.6

 

 

6.8

%

Right-to-use contracts current period, gross

(membership upgrade sales)

 

5.7

 

 

 

4.9

 

 

17.8

%

 

 

14.6

 

 

 

12.0

 

 

22.0

%

Utility and other income (5)

 

23.4

 

 

 

24.3

 

 

(3.7

)%

 

 

67.8

 

 

 

70.2

 

 

(3.5

)%

Property operating revenues

 

245.3

 

 

 

234.1

 

 

4.8

%

 

 

716.1

 

 

 

685.0

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Property operating, maintenance and real estate taxes (6)

 

99.2

 

 

 

95.1

 

 

4.3

%

 

 

282.7

 

 

 

273.1

 

 

3.5

%

Rental home operating and maintenance

 

1.6

 

 

 

1.8

 

 

(10.8

)%

 

 

4.1

 

 

 

4.7

 

 

(12.9

)%

Sales and marketing, gross

 

4.0

 

 

 

3.6

 

 

13.8

%

 

 

11.6

 

 

 

9.7

 

 

20.7

%

Property operating expenses

 

104.8

 

 

 

100.5

 

 

4.4

%

 

 

298.4

 

 

 

287.5

 

 

3.8

%

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

$

 

140.5

 

 

$

 

133.6

 

 

5.1

%

 

$

 

417.7

 

 

$

 

397.5

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Occupied sites (7)

 

66,573

 

 

 

66,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core manufactured home site figures and occupancy averages:

 

 

 

 

 

 

Total sites

 

69,693

 

 

 

69,568

 

 

 

 

 

69,634

 

 

 

69,546

 

 

 

Occupied sites

 

66,482

 

 

 

66,061

 

 

 

 

 

66,394

 

 

 

65,996

 

 

 

Occupancy %

 

95.4

%

 

 

95.0

%

 

 

 

 

95.3

%

 

 

94.9

%

 

 

Monthly base rent per site

$

 

671

 

 

$

 

640

 

 

 

 

$

 

665

 

 

$

 

636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Resort base rental income:

 

 

 

 

 

 

 

 

 

 

 

Annual

$

 

39.0

 

 

$

 

36.7

 

 

6.2

%

 

$

 

114.6

 

 

$

 

108.0

 

 

6.1

%

Seasonal

 

4.6

 

 

 

4.4

 

 

3.9

%

 

 

28.9

 

 

 

28.1

 

 

3.2

%

Transient

 

21.9

 

 

 

21.5

 

 

1.8

%

 

 

44.1

 

 

 

43.8

 

 

0.5

%

Total resort base rental income

$

 

65.5

 

 

$

 

62.6

 

 

4.5

%

 

$

 

187.6

 

 

$

 

179.9

 

 

4.3

%

______________________

1.

Excludes property management and the GAAP deferral of right-to-use contract upfront payments and related commissions, net.

2.

Calculations prepared using actual results without rounding.

3.

See Core manufactured home site figures and occupancy averages included below within this table.

4.

See Core resort base rental income detail included below within this table.

5.

Includes Hurricane Irma insurance recovery revenues of $2.4 million for the nine months ended September 30, 2018.

6.

Property operating, maintenance and real estate taxes includes bad debt expense for the quarters and nine months ended September 30, 2019 and 2018. Property operating, maintenance and real estate taxes includes debris removal and cleanup costs related to Hurricane Irma of $2.2 million for the nine months ended September 30, 2018.

7.

Occupied sites are presented as of the end of the period. Occupied sites have increased by 262 from 66,311 at December 31, 2018.

...

Non-Core Income from Property Operations (1)

 

(In millions, unaudited)

 

 

Quarter Ended

 

Nine Months Ended

 

September 30, 2019

 

September 30, 2019

Community base rental income

$

3.8

 

 

$

11.9