Equity Lifestyle Properties Inc.

07/17/2017 | Press release | Distributed by Public on 07/17/2017 14:25

ELS Reports Second Quarter Results

N E W S R E L E A S E‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

CONTACT: Paul Seavey FOR IMMEDIATE RELEASE

(800) 247-5279 July 17, 2017

ELS REPORTS SECOND QUARTER RESULTS

Continued Strong Performance

CHICAGO, IL - July 17, 2017 - Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as "we," "us," and "our") today announced results for the quarter and six months ended June 30, 2017. 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, 2017

For the quarter ended June 30, 2017, total revenues increased $11.2 million, or 5.3 percent, to $221.3 million compared to $210.1 million for the same period in 2016. Net income available for Common Stockholders for the quarter ended June 30, 2017 increased $4.0 million, or $0.03 per Common Share, to $39.5 million, or $0.45 per Common Share, compared to $35.5 million, or $0.42 per Common Share, for the same period in 2016.

For the six months ended June 30, 2017, total revenues increased $23.5 million, or 5.5 percent, to $453.7 million compared to $430.2 million for the same period in 2016. Net income available for Common Stockholders for the six months ended June 30, 2017 increased $10.3 million, or $0.10 per Common Share, to $96.4 million, or $1.11 per Common Share, compared to $86.1 million, or $1.01 per Common Share, for the same period in 2016.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended June 30, 2017, Funds from Operations ("FFO") available for Common Stock and OP Unit holders increased $6.0 million, or $0.06 per Common Share, to $74.9 million or $0.81 per Common Share, compared to $68.9 million, or $0.75 per Common Share, for the same period in 2016. For the six months ended June 30, 2017, FFO available for Common Stock and OP Unit holders increased $14.5 million, or $0.14 per Common Share, to $168.0 million or $1.81 per Common Share, compared to $153.5 million, or $1.67 per Common Share, for the same period in 2016.

For the quarter ended June 30, 2017, Normalized Funds from Operations ("Normalized FFO") available for Common Stock and OP Unit holders increased $5.8 million, or $0.06 per Common Share, to $75.1 million, or $0.81 per Common Share, compared to $69.3 million, or $0.75 per Common Share, for the same period in 2016. For the six months ended June 30, 2017, Normalized FFO available for Common Stock and OP Unit holders increased $14.2 million, or $0.14 per Common Share, to $168.3 million, or $1.81 per Common Share, compared to $154.1 million, or

$1.67 per Common Share, for the same period in 2016.

For the quarter ended June 30, 2017, property operating revenues, excluding deferrals, increased $14.0 million to $211.4 million compared to $197.4 million for the same period in 2016. For the six months ended June 30, 2017, property operating revenues, excluding deferrals, increased $28.5 million to $433.4 million compared to $404.9 million for the same period in 2016. For the quarter ended June 30, 2017, income from property operations, excluding deferrals and property management, increased $6.6 million to $120.0 million compared to $113.4 million for the same period in 2016. For the six months ended June 30, 2017, income from property operations, excluding deferrals and property management, increased $15.0 million to $255.7 million compared to $240.7 million for the same period in 2016.

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For the quarter ended June 30, 2017, Core property operating revenues, excluding deferrals, increased approximately 5.5 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.8 percent compared to the same period in 2016. For the six months ended June 30, 2017, Core property operating revenues, excluding deferrals, increased approximately 4.9 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.3 percent compared to the same period in 2016.

Investment Activity

During the quarter, we completed the acquisition of Paradise Park Largo, a 108-site manufactured home community located in Largo, Florida. The purchase price of approximately $8.0 million was funded with available cash, loan assumption of $3.6 million, and new loan proceeds of $2.3 million.

During the quarter, we entered into a joint venture agreement to purchase Crosswinds Mobile Home Park, a 376-site manufactured home community located in St. Petersburg, Florida. Our ownership interest is 49% and the purchase price of the Property was $18.4 million.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago. As of July 17, 2017, we own or have an interest in 393 quality properties in 32 states and British Columbia consisting of 147,107 sites.

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

Conference Call

A live webcast of our conference call discussing these results will take place tomorrow, Tuesday, July 18, 2017, 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 2017 Monday, October 16, 2017 Tuesday, October 17, 2017 10:00 a.m. CT

Fourth Quarter 2017 Monday, January 29, 2018 Tuesday, January 30, 2018 10:00 a.m. CT

First Quarter 2018 Monday, April 23, 2018 Tuesday, April 24, 2018 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, real estate market conditions, the actual rate of decline in 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 2017 estimated net income, FFO and Normalized FFO;

  • our ability to manage counterparty risk;

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  • 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 accounting for the entry of contracts with customers representing a right-to-use the properties under the Codification Topic "Revenue Recognition";

  • 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.

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Investor Information

Equity Research Coverage (1)

Robert W. Baird & Company

Drew T. Babin 215-553-7816

[email protected]

Cantor Fitzgerald

Gaurav Mehta 212-915-1221

[email protected]

Green Street Advisors Ryan Burke/Ryan Lumb 949-640-8780

[email protected] [email protected]

Bank of America Merrill Lynch Global Research

Citi Research

Wells Fargo Securities

Jeffrey Spector

Michael Bilerman/ Nick Joseph

Todd Stender

646-855-1363

212-816-1383

562-637-1371

[email protected]

[email protected]

[email protected]

[email protected]

BMO Capital Markets

Evercore ISI

John Kim

Steve Sakwa/ Gwen Clark

212-885-4170

212-446-5600

[email protected]

[email protected]

[email protected]

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.

2Q 2017 Supplemental information 1 Equity LifeStyle Properties, Inc.