Equity Lifestyle Properties Inc (ELS) Reports Strong Q3 2023 Performance
ELS's Q3 2023 total revenues increased by $7.8 million to $388.8 million compared to Q3 2022
Net income available for common stockholders rose by $9.8 million to $77 million
Normalized FFO per share increased by 2.1% compared to the same period in 2022
ELS closed on three secured financing facilities totaling $375 million during Q3 2023
Equity Lifestyle Properties Inc (NYSE:ELS) released its Q3 2023 earnings report on October 16, 2023, showing continued strong performance. The company reported total revenues of $388.8 million, a $7.8 million increase from Q3 2022. Net income available for common stockholders rose by $9.8 million to $77 million, while the net income per common share fully diluted increased by $0.05 to $0.41.
Financial Highlights
The company's Funds from Operations (FFO) per common share and OP unit fully diluted increased by $0.02 to $0.71, while the Normalized Funds from Operations (Normalized FFO) per common share and OP unit fully diluted increased by $0.01 to $0.71. Property operating revenues, excluding deferrals, rose by $14.8 million to $347.6 million. Income from property operations, excluding deferrals and property management, increased by $9.8 million to $193.7 million.
Core Portfolio Performance
ELS's core property operating revenues, excluding deferrals, increased by 4.7% to $335.7 million. Core income from property operations, excluding deferrals and property management, rose by 4.4% to $186.2 million. The company also reported a 2.1% increase in Normalized FFO for Q3 2023 compared to the same period in 2022, outperforming the midpoint of their guidance expectation by $0.5 million.
Operations Update
ELS reported a 6.8% increase in MH Core MH base rental income for Q3 2023 compared to the same period in 2022. The company sold 285 new homes during Q3 2023, with an average sales price of $97,000. Core MH occupancy increased by 42 sites during Q3 2023, which included a net gain of 225 homeowners.
Balance Sheet Activity
During Q3 2023, ELS closed on three secured financing facilities totaling $375 million. The facilities, secured by twenty MH and RV properties, have a weighted average interest rate of 5.05% per annum and a weighted average term of approximately eight years. The proceeds were used to repay all debt scheduled to mature in 2023 and 2024 and the remaining balance on the company's unsecured line of credit.
2023 Guidance Update
ELS provided updated guidance for Q4 and the full year 2023. The company expects net income per common share fully diluted to range from $0.41 to $0.47 for Q4 and from $1.60 to $1.66 for the full year. FFO per common share and OP unit fully diluted is expected to range from $0.70 to $0.76 for Q4 and from $2.78 to $2.84 for the full year. Normalized FFO per common share and OP unit fully diluted is expected to range from $0.70 to $0.76 for Q4 and from $2.82 to $2.88 for the full year.
This article first appeared on GuruFocus.
