Equity LifeStyle Properties(ELS) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights The company reports solid Q2 and H1 2025 results, driven by Normalized FFO growth and strong operational performance Financial Performance Overview The company achieved Normalized FFO per share growth of 4.7% for Q2 and 5.7% for H1 2025, meeting guidance Key Financial Results (Per Common Share and OP Unit) | Metric | Quarters Ended June 30, 2025 | Quarters Ended June 30, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income per Common Share | $0.42 | $0.42 | $— | (0.7)% | | FFO per Common Share and OP Unit | $0.69 | $0.69 | $— | 0.3% | | Normalized FFO per Common Share and OP Unit | $0.69 | $0.66 | $0.03 | 4.7% | | Six Months Ended June 30, | 2025 | 2024 | $ Change | % Change | | Net Income per Common Share | $0.99 | $1.01 | $(0.02) | (2.0)% | | FFO per Common Share and OP Unit | $1.52 | $1.55 | $(0.03) | (1.4)% | | Normalized FFO per Common Share and OP Unit | $1.52 | $1.44 | $0.08 | 5.7% | - Normalized FFO per Common Share and OP Unit increased 4.7% for the quarter and 5.7% for the six months ended June 30, 2025, meeting the midpoint of previous guidance[4] Operational Performance Update Core property operating revenues and income grew, driven by strong rental income and controlled expense growth - Core property operating revenues increased 3.5% for the quarter and 3.2% for the six months ended June 30, 2025, compared to the same periods in 2024[4] - Core property operating expenses were flat for the quarter and increased 0.7% for the six months ended June 30, 2025, compared to the same periods in 2024[4][8] - Core income from property operations, excluding property management, increased 6.4% for the quarter and 5.0% for the six months ended June 30, 2025, compared to the same periods in 2024[4] Manufactured Home (MH) Operations Core MH base rental income grew consistently by 5.5%, complemented by new home sales activity - Core MH base rental income increased 5.5% for both the quarter and six months ended June 30, 2025, compared to the same periods in 2024[5] - The company sold 116 new homes during the quarter and 233 new homes during the six months ended June 30, 2025[5] RV and Marina Operations Core RV and marina base rental income showed modest growth, with stronger performance in annual rentals - Core RV and marina base rental income increased 0.7% for the quarter and 0.4% for the six months ended June 30, 2025, compared to the same periods in 2024[7] - Core RV and marina annual base rental income increased 3.7% for the quarter and 3.9% for the six months ended June 30, 2025, compared to the same periods in 2024[7] Property Operating Expenses Core property operating expenses remained flat for the quarter and saw a slight increase for the six-month period - Core property operating expenses, excluding property management, were flat for the quarter ended June 30, 2025, compared to the same period in 2024, and increased 0.7% for the six months[8] Balance Sheet and Financing Activities The company secured a new term loan, repaid maturing mortgage debt, and executed several swap agreements - Entered into a $240.0 million unsecured term loan agreement, drawing $150.0 million in May 2025 and $90.0 million in July 2025, with the loan maturing on May 15, 2030[9] - Repaid $86.9 million of principal on eight mortgage loans with a weighted average interest rate of 3.45%, covering all debt maturing in 2025[9] - Entered into six swap agreements with an aggregate notional value of $240.0 million and a weighted average fixed interest rate of 4.74% per annum, maturing on May 15, 2030[10] Financial Guidance The company provides its financial outlook for Q3 and the full year 2025, including key performance metrics Third Quarter and Full Year 2025 Guidance The company projects Net Income, FFO, and Normalized FFO per share for the third quarter and full year 2025 2025 Financial Guidance (Per Common Share and OP Unit) | Metric | Third Quarter 2025 | Full Year 2025 | | :--- | :--- | :--- | | Net Income per Common Share | $0.46 to $0.52 | $1.94 to $2.04 | | FFO per Common Share and OP Unit | $0.72 to $0.78 | $3.01 to $3.11 | | Normalized FFO per Common Share and OP Unit | $0.72 to $0.78 | $3.01 to $3.11 | Core Portfolio Growth Rate Guidance Guidance indicates continued growth in MH rental income and property operating revenues for Q3 and full year 2025 Core Portfolio 2025 Growth Rate Guidance | Metric | Third Quarter 2025 Growth Rate | Full Year 2025 Growth Rate | | :--- | :--- | :--- | | MH base rental income | 5.0% to 5.6% | 4.9% to 5.9% | | RV and marina base rental income | -0.1% to 0.5% | 0.6% to 1.6% | | Property operating revenues | 2.8% to 3.4% | 2.8% to 3.8% | | Property operating expenses, excluding property management | 0.6% to 1.2% | 0.7% to 1.7% | | Income from property operations, excluding property management | 4.6% to 5.2% | 4.5% to 5.5% | - Core RV and marina annual revenue is projected to grow 4.0% to 4.6% in Q3 2025 and 3.8% to 4.8% for the full year 2025[12] Other Guidance Assumptions Additional guidance assumptions for full year 2025 cover non-core operations, administrative expenses, and debt metrics Other Full Year 2025 Guidance Assumptions | Metric | Full Year 2025 Range | | :--- | :--- | | Non-Core Income from property operations, excluding property management | $7.6 to $11.6 | | Property management and general administrative | $115.8 to $121.8 | | Other income and expenses | $26.5 to $32.5 | | Weighted average debt outstanding | $3,170 to $3,370 | | Interest and related amortization | $129.0 to $135.0 | Company Information & Forward-Looking Statements This section outlines the company's profile, conference call details, and important forward-looking statement disclaimers About Equity LifeStyle Properties Equity LifeStyle Properties is a self-managed REIT with a large portfolio of properties across North America - Equity LifeStyle Properties is a self-administered, self-managed REIT with 455 properties in 35 states and British Columbia, totaling 173,340 sites as of July 21, 2025[14] Conference Call Information A conference call was scheduled to discuss the quarterly results, with a replay available online - A live audio webcast of the conference call was scheduled for Tuesday, July 22, 2025, at 10:00 a.m. Central Time, with a replay available for two weeks on the company's investor relations website[15] Forward-Looking Statements Disclaimer The press release contains forward-looking statements subject to various risks that could affect actual results - The press release includes forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially, such as changes in site usage, occupancy, and interest rates[16] Supplemental Financial Information This section presents detailed financial statements, operational data, and capital structure information Financial Highlights This section provides a snapshot of key financial metrics and ratios for the past five quarters Financial Highlights (Quarterly Trends) | Metric | June 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Information | | | | | | | Total revenues ($M) | 376.9 | 387.3 | 372.3 | 387.3 | 380.0 | | Consolidated net income ($M) | 83.5 | 114.4 | 100.6 | 86.9 | 82.1 | | Normalized FFO available for Common Stock and OP Unit holders ($M) | 137.7 | 166.7 | 151.2 | 140.5 | 128.5 | | Per Share Data | | | | | | | Net income per Common Share - Fully Diluted ($) | 0.42 | 0.57 | 0.50 | 0.44 | 0.42 | | Normalized FFO per Common Share and OP Unit - Fully Diluted ($) | 0.69 | 0.83 | 0.76 | 0.72 | 0.66 | | Dividends per Common Share ($) | 0.5150 | 0.5150 | 0.4775 | 0.4775 | 0.4775 | | Balance Sheet | | | | | | | Total assets ($M) | 5,721 | 5,642 | 5,646 | 5,644 | 5,645 | | Total liabilities ($M) | 3,908 | 3,809 | 3,822 | 4,149 | 4,135 | | Total debt ($M) | 3,273 | 3,199 | 3,230 | 3,502 | 3,499 | | Ratios | | | | | | | Total debt / total market capitalization (%) | 20.9 % | 19.3 % | 19.5 % | 20.1 % | 21.5 % | | Total debt / Adjusted EBITDAre | 4.5 | 4.4 | 4.5 | 5.0 | 5.1 | | Interest coverage | 5.6 | 5.4 | 5.2 | 5.1 | 5.1 | Consolidated Financial Statements This section presents the company's detailed consolidated balance sheets and statements of income Consolidated Balance Sheets Total assets increased to $5.72 billion as of June 30, 2025, driven by growth in real estate investments Consolidated Balance Sheet (Selected Items) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Net investment in real estate | 5,290,851 | 5,276,152 | | Cash and restricted cash | 33,008 | 24,576 | | Notes receivable, net | 100,269 | 50,726 | | Total Assets | 5,720,883 | 5,645,652 | | Mortgage notes payable, net | 2,810,199 | 2,928,292 | | Term loans, net | 347,046 | 199,344 | | Unsecured line of credit | 90,000 | 77,000 | | Total Liabilities | 3,907,931 | 3,821,866 | | Total Stockholders' Equity | 1,730,814 | 1,740,716 | | Total Liabilities and Equity | 5,720,883 | 5,645,652 | Consolidated Statements of Income Consolidated net income for Q2 2025 was $83.5 million, a slight increase from the prior year Consolidated Statements of Income (Selected Items) | Metric | Quarters Ended June 30, 2025 ($ thousands) | Quarters Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | 376,866 | 380,019 | 764,200 | 766,587 | | Property operating and maintenance | 127,845 | 126,105 | 246,411 | 240,888 | | Real estate taxes | 21,845 | 20,099 | 43,488 | 40,886 | | Depreciation and amortization | 52,649 | 51,344 | 103,591 | 102,452 | | Interest and related amortization | 32,200 | 36,037 | 63,336 | 69,580 | | Total expenses | 292,643 | 298,471 | 570,485 | 570,051 | | Consolidated net income | 83,493 | 82,127 | 197,886 | 197,398 | | Net income available for Common Stockholders | 79,708 | 78,297 | 188,900 | 188,202 | Income from Property Operations This section details income from property operations, segmented by consolidated, core, and non-core properties Consolidated Income from Property Operations Consolidated income from property operations grew to $196.0 million for the quarter and $414.0 million for H1 2025 Consolidated Income from Property Operations (Selected Items) | Metric | Quarters Ended June 30, 2025 ($M) | Quarters Ended June 30, 2024 ($M) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :--- | :--- | :--- | :--- | :--- | | MH base rental income | 186.4 | 176.7 | 371.1 | 351.8 | | RV and marina base rental income | 106.1 | 103.4 | 227.7 | 223.5 | | Property operating revenues | 351.4 | 338.6 | 715.1 | 692.3 | | Property operating expenses, excluding property management | 155.4 | 153.5 | 301.1 | 295.8 | | Income from property operations, excluding property management | 196.0 | 185.1 | 414.0 | 396.5 | | MH Occupancy % | 93.9 % | 94.4 % | 93.9 % | 94.4 % | | Monthly base rent per site (MH) | $904 | $854 | $899 | $851 | Core Income from Property Operations Core income from property operations grew 6.4% for the quarter and 5.0% for the six months ended June 30, 2025 Core Income from Property Operations (Selected Items) | Metric | Quarters Ended June 30, 2025 ($M) | Quarters Ended June 30, 2024 ($M) | Change (%) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | MH base rental income | 186.2 | 176.5 | 5.5% | 370.7 | 351.5 | 5.5 % | | RV and marina base rental income | 101.6 | 100.8 | 0.7% | 217.7 | 216.7 | 0.4 % | | Property operating revenues | 344.0 | 332.5 | 3.5% | 699.6 | 678.2 | 3.2 % | | Property operating expenses, excluding property management | 150.5 | 150.6 | 0.0% | 292.1 | 290.0 | 0.7 % | | Income from property operations, excluding property management | 193.5 | 181.9 | 6.4% | 407.5 | 388.2 | 5.0 % | | Core MH Occupancy % | 94.3 % | 94.9 % | | 94.4 % | 94.9 % | | | Core RV and marina annual base rental income | 77.3 | 74.6 | 3.7% | 153.7 | 147.9 | 3.9% | | Core utility recovery rate | 48.8 % | 46.3 % | | 48.2 % | 46.4 % | | Non-Core Income from Property Operations Non-Core properties generated $2.5 million in income from property operations for the quarter Non-Core Income from Property Operations (Selected Items) | Metric | Quarter Ended June 30, 2025 ($M) | Six Months Ended June 30, 2025 ($M) | | :--- | :--- | :--- | | MH base rental income | 0.2 | 0.4 | | RV and marina base rental income | 4.5 | 10.0 | | Property operating revenues | 7.3 | 15.5 | | Property operating expenses, excluding property management | 4.8 | 9.0 | | Income from property operations, excluding property management | 2.5 | 6.5 | Sales and Rental Operations Data This section provides key data on the company's home sales and rental home operations Home Sales - Select Data New home sales volume decreased significantly compared to the prior year, while used home sales volume increased Home Sales - Select Data | Metric | Quarters Ended June 30, 2025 | Quarters Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total new home sales volume | 117 | 255 | 234 | 446 | | New home sales gross revenues ($ thousands) | 9,444 | 22,706 | 18,873 | 40,406 | | Total used home sales volume | 85 | 59 | 142 | 113 | | Used home sales gross revenues ($ thousands) | 761 | 1,240 | 1,535 | 2,078 | | Brokered home resales volume | 126 | 152 | 224 | 261 | | Brokered home resales gross revenues ($ thousands) | 454 | 649 | 850 | 1,221 | Rental Homes - Select Data Rental operations revenues remained stable, with a slight decrease in occupied rental sites year-over-year Rental Homes - Select Data | Metric | Quarters Ended June 30, 2025 | Quarters Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Rental operations revenues ($ thousands) | 8,749 | 8,597 | 17,143 | 17,655 | | Rental home operations expense ($ thousands) | 1,300 | 1,557 | 2,446 | 2,926 | | Depreciation on rental homes ($ thousands) | 2,878 | 2,492 | 5,123 | 5,060 | | Total occupied rental sites | 2,005 | 2,016 | | | Property and Site Information This section provides an overview of the company's property portfolio by site type Summary of Total Sites The company's portfolio comprised 173,300 sites as of June 30, 2025, primarily MH and RV sites Summary of Total Sites as of June 30, 2025 | Site Type | Number of Sites | | :--- | :--- | | MH sites | 73,200 | | RV sites: | | | Annual | 34,000 | | Seasonal | 11,200 | | Transient | 18,100 | | Marina slips | 6,900 | | Membership | 26,000 | | Joint Ventures | 3,900 | | Total | 173,300 | Membership Campgrounds - Select Data Total memberships decreased slightly to 112,494 as of June 30, 2025 Membership Campgrounds - Select Data (Six Months Ended June 30, 2025) | Metric | Six Months Ended June 30, 2025 ($ thousands) | | :--- | :--- | | Annual membership subscriptions | 33,244 | | Annual RV base rental income | 14,821 | | Seasonal/Transient RV base rental income | 8,440 | | Membership upgrade revenue | 6,172 | | Utility and other income | 991 | | Total Memberships | 112,494 | | Paid Membership Origination | 9,320 | | Promotional Membership Origination | 12,338 | | Membership Upgrade Volume | 2,959 | | Membership Campground Count | 82 | | Membership Campground RV Site Count | 26,000 | | Annual Site Count | 5,769 | Capital Structure and Debt This section details the company's capital structure and debt maturity schedule Capital Structure Total debt was $3.3 billion as of June 30, 2025, representing 20.9% of total market capitalization Capital Structure as of June 30, 2025 | Metric | Amount ($M) | % of Total Debt | % of Total Market Capitalization | | :--- | :--- | :--- | :--- | | Secured Debt | 2,833 | 86.6 % | | | Unsecured Debt | 440 | 13.4 % | | | Total Debt | 3,273 | 100.0 % | 20.9 % | | Fair Value of Common Shares and OP Units | 12,351 | | | | Total Equity | 12,351 | | 79.1 % | | Total Market Capitalization | 15,624 | | 100.0 % | Debt Maturity Schedule The company has no significant debt maturities until 2027, with a well-laddered maturity profile Debt Maturity Schedule as of June 30, 2025 (Selected Years) | Year | Outstanding Debt ($ thousands) | Weighted Average Interest Rate | % of Total Debt | Weighted Average Years to Maturity | | :--- | :--- | :--- | :--- | :--- | | Secured Debt | | | | | | 2025 | — | — % | — % | — | | 2026 | — | — % | — % | — | | 2027 | — | — % | — % | — | | 2028 | 193,459 | 4.19 % | 5.91 % | 3.2 | | 2030 | 275,385 | 2.69 % | 8.41 % | 4.7 | | Thereafter | 1,106,273 | 3.95 % | 33.81 % | 13.0 | | Unsecured Term Loans | | | | | | 2027 | 200,000 | 4.88 % | 6.11 % | 1.6 | | 2030 | 150,000 | 4.76 % | 4.58 % | 4.9 | | Total Debt, Net | 3,247,245 | 4.00% | 100.00 % | | Non-GAAP Financial Measures This section defines and reconciles Non-GAAP measures used by management to evaluate performance Non-GAAP Measures Introduction Management uses Non-GAAP measures as supplemental tools to evaluate operating performance - Non-GAAP measures are used by management to understand the business and are helpful for investors to evaluate operating performance, but they do not represent GAAP cash flows or net income[30] Reconciliation of Net Income to Non-GAAP Financial Measures (FFO, Normalized FFO, FAD) This section reconciles Net Income to FFO, Normalized FFO, and FAD for quarterly and six-month periods Reconciliation of Net Income to FFO, Normalized FFO, FAD | Metric | Quarters Ended June 30, 2025 ($ thousands) | Quarters Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net income available for Common Stockholders | 79,708 | 78,297 | 188,900 | 188,202 | | Depreciation and amortization | 52,649 | 51,344 | 103,591 | 102,452 | | FFO available for Common Stock and OP Unit holders | 138,283 | 134,663 | 304,949 | 302,093 | | Normalized FFO available for Common Stock and OP Unit holders | 137,690 | 128,493 | 304,356 | 281,224 | | Non-revenue producing improvements to real estate | (22,460) | (20,220) | (38,598) | (36,042) | | FAD for Common Stock and OP Unit holders | 115,230 | 108,273 | 265,758 | 245,182 | Reconciliation of Consolidated Net Income to EBITDAre and Adjusted EBITDAre This section reconciles Consolidated Net Income to EBITDAre and Adjusted EBITDAre to evaluate operating performance Reconciliation of Consolidated Net Income to EBITDAre and Adjusted EBITDAre | Metric | Quarters Ended June 30, 2025 ($ thousands) | Quarters Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Consolidated net income | 83,493 | 82,127 | 197,886 | 197,398 | | Real estate depreciation and amortization | 52,649 | 51,344 | 103,591 | 102,452 | | Interest and related amortization | 32,200 | 36,037 | 63,336 | 69,580 | | EBITDAre | 170,544 | 170,502 | 368,118 | 371,215 | | Insurance proceeds due to catastrophic weather events, net | (593) | (6,170) | (593) | (21,013) | | Adjusted EBITDAre | 169,951 | 164,332 | 367,525 | 350,585 | Definitions of Non-GAAP Measures This section provides detailed definitions for various Non-GAAP financial measures used by the company - FFO (Funds From Operations) is defined as net income excluding gains/losses from property sales, real estate depreciation/amortization, and impairment charges, in accordance with NAREIT standards[70] - Normalized FFO is FFO excluding non-operating items like gains/losses from early debt extinguishment and transaction costs, to provide a consistent basis for comparing operating performance[72] - FAD (Funds Available for Distribution) is defined as Normalized FFO less non-revenue producing capital expenditures[73] - EBITDAre is net income excluding interest, taxes, depreciation, amortization, gains/losses from property sales, and impairment charges[77] - Adjusted EBITDAre is EBITDAre excluding non-operating income and expense items such as gains/losses from early debt extinguishment and transaction/pursuit costs[78] - Core properties include those owned and operated during all of 2024 and 2025, used for annual comparisons by removing fluctuations from acquisitions and dispositions[81] - Non-Core properties in 2025 include those not owned and operated during all of 2024 and 2025, such as properties impacted by Hurricane Ian and other storm events[82] Forward-Looking Non-GAAP Measures This section reconciles forward-looking Net Income guidance to FFO and Normalized FFO guidance for 2025 Forward-Looking Non-GAAP Measures Reconciliation (2025 Guidance) | Metric | Third Quarter 2025 | Full Year 2025 | | :--- | :--- | :--- | | Net income per Common Share | $0.46 to $0.52 | $1.94 to $2.04 | | Depreciation and amortization | 0.27 | 1.06 | | FFO per Common Share and OP Unit - Fully Diluted | $0.72 to $0.78 | $3.01 to $3.11 | | Normalized FFO per Common Share and OP Unit - Fully Diluted | $0.72 to $0.78 | $3.01 to $3.11 | - A quantitative reconciliation of certain forward-looking Non-GAAP information to GAAP is not provided due to the inability to accurately predict reconciling items without unreasonable effort[84]