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Mar 31, 2022
ELS Q1 2022 Earnings Report
ELS reported strong performance in Q1 2022, with significant increases in revenue, net income, and normalized FFO per share.
Key Takeaways
Equity LifeStyle Properties (ELS) announced strong Q1 2022 results, with total revenues increasing by 18.6% to $360.2 million. Net income available for Common Stockholders rose to $82.9 million, or $0.45 per Common Share, and Normalized FFO per share reached $0.72, a 14% increase year-over-year. The company also completed strategic acquisitions and refinanced debt, strengthening its balance sheet.
Normalized FFO per Common Share increased by 14% to $0.72.
Core Portfolio income from property operations grew by 9.0%.
MH occupancy within the Core Portfolio increased by 296 sites.
New home sales increased by 35.9% to 261 homes.
ELS
ELS
Forward Guidance
Equity LifeStyle Properties provided guidance for the second quarter and full year of 2022, indicating continued growth in key areas such as Net Income per share, FFO per share, and property operating revenue. The guidance acknowledges the existence of volatile economic conditions, which may impact current guidance assumptions.
Positive Outlook
- Net Income/share is expected to be between $0.31 to $0.37 for the second quarter and $1.61 to $1.71 for the full year.
- FFO/share is projected to be $0.58 to $0.64 for the second quarter and $2.67 to $2.77 for the full year.
- Normalized FFO/share is anticipated to be $0.59 to $0.65 for the second quarter and $2.68 to $2.78 for the full year.
- MH rate growth is expected to be between 5.1% to 5.3% for both the second quarter and the full year.
- RV Annual rate growth is projected to be 6.3% to 6.5% for the second quarter and 5.9% to 6.1% for the full year.
Challenges Ahead
- The mix of site usage within the portfolio could impact guidance.
- Yield management on short-term resort and marina sites could affect projections.
- The ability to manage expenses in an inflationary environment may pose a challenge.
- Supply chain delays/shortages could impact expansion/development opportunities.
- The ability to attract and retain property employees, particularly seasonal employees, may influence results.