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Jun 30, 2022
ELS Q2 2022 Earnings Report
Reported continued strong performance and updated guidance.
Key Takeaways
Equity LifeStyle Properties reported a strong second quarter with total revenues increasing by 10.7% to $365.3 million compared to the same period in 2021. Net income available for Common Stockholders increased to $61.5 million, or $0.33 per Common Share.
Normalized FFO per Common Share grew by 4.5% compared to the same period in 2021.
Core income from property operations, excluding deferrals and property management, grew by 3.3% compared to the same period in 2021.
Core MH base rental income grew by 5.7%, reflecting growth from rate increases and occupancy gains.
New home sales reached the highest quarterly volume in the company's history.
ELS
ELS
Forward Guidance
Third quarter and full year 2022 guidance ranges represent a range of possible outcomes and the midpoint reflects management's estimate of the most likely outcome.
Positive Outlook
- MH rate growth between 5.3% and 5.5%
- RV Annual rate growth between 6.6% and 6.8%
- Net Income/share between $0.37 to $0.43
- FFO/share between $0.66 to $0.72
- Normalized FFO/share between $0.66 to $0.72
Challenges Ahead
- Combined RV Seasonal and Transient base rental income growth (2.5)% to (3.5)%
- Property operating revenue growth rate 4.3% to 4.9%
- Property operating expense growth rate 3.7% to 4.3%
- Income from property operations, excluding deferrals and property management growth rate 4.7% to 5.3%
- Factors impacting 2022 guidance include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly seasonal employees; (xiii) ongoing legal matters and related fees; and (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events.