Equity LifeStyle Properties(ELS) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported a net income per fully diluted common share of $0.44 for Q3 2024, a 7.5$0.41 in Q3 2023 [71]. - Funds from Operations (FFO) per fully diluted common share was $0.72 for Q3 2024, reflecting a 5.3$0.68 in Q3 2023 [71]. - Net income available for Common Stockholders for Q3 2024 was $82,821,000, an increase from$76,969,000 in Q3 2023, representing a growth of 2.2% [86]. - Income from property operations for Q3 2024 was $175,441,000, compared to$167,963,000 in Q3 2023, reflecting an increase of 4.4% [86]. - FFO available for Common Stock and OP Unitholders for Q3 2024 was $140,904,000, up from$133,799,000 in Q3 2023, indicating a growth of 5.4% [88]. - Normalized FFO available for Common Stock and OP Unitholders for Q3 2024 was $140,483,000, compared to$133,867,000 in Q3 2023, showing an increase of 4.9% [88]. Property Operations - The average occupancy rate in the Core Portfolio was 95.0% for Q3 2024, up from 94.9% in the same quarter of 2023 [72]. - Core property operating revenues increased by 4.4% for Q3 2024 compared to Q3 2023, while Core income from property operations, excluding property management, rose by 5.8% [71]. - Core RV and marina base rental income increased by 1.3% for Q3 2024, driven mainly by a 6.2% increase in annual RV rental income [73]. - Average monthly base rental income per Site in the Core Portfolio increased to approximately $861 in Q3 2024 from$813 in Q3 2023, with occupancy rates at 95.0% [93]. - Total portfolio income from property operations rose by $7.5 million, or 4.5$10.3 million increase from the Core Portfolio, offset by a $2.8 million decrease from the Non-Core Portfolio [91]. Sales and Revenue - The company closed 174 new home sales in Q3 2024, a decrease of 38.9$(30,839,000) in Q3 2024 from $(44,795,000) in Q3 2023, a reduction of 31.2$12.2 million, or 44.0%, to $15.5 million in Q3 2024, primarily due to lower sales volume [98]. - Gross revenues from new home sales decreased by$13.1 million, or 19.0%, during the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to lower sales volume [112]. Expenses and Charges - Property operating expenses, excluding property management, increased by $4.2 million, or 2.8$1.3 million for Hurricane Ian and $1.0 million for Hurricane Helene, with insurance recovery revenue of$1.7 million related to Hurricane Ian [86]. - The company recognized casualty-related charges of approximately $2.3 million for debris removal and cleanup costs related to Hurricane Ian and Hurricane Helene during the quarter ended September 30, 2024 [102]. - Casualty-related charges for the nine months ended September 30, 2024, were approximately$3.5 million, compared to $12.1 million for the same period in 2023, related to debris removal and cleanup costs from hurricanes [115]. Liquidity and Capital - As of September 30, 2024, the company had available liquidity in the form of approximately$413.5 million in authorized and unissued common stock [122]. - The company entered into a new at-the-market equity offering program with an aggregate offering price capacity of up to $500.0 million as of February 28, 2024 [121]. - Net cash provided by operating activities increased by$72.7 million to $491.4 million for the nine months ended September 30, 2024, compared to$418.7 million for the same period in 2023 [125]. - Net cash used in investing activities decreased by $85.6 million to$151.9 million for the nine months ended September 30, 2024, from $237.5 million for the same period in 2023 [128]. - The company expects to meet short-term liquidity requirements through available cash, net cash from operating activities, and equity issuances under its ATM equity offering program [124]. Market Conditions and Future Outlook - The demand for manufactured homes and RV communities is expected to remain strong, driven by the aging baby boomer population and increasing interest from Millennials and Generation Z [65]. - The company anticipates potential impacts on home sales and occupancy due to local economic conditions and competition from alternative housing options [134].