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Jun 30, 2023
ELS Q2 2023 Earnings Report
ELS reported strong performance in the second quarter of 2023, with increased guidance.
Key Takeaways
Equity LifeStyle Properties reported a revenue increase of $4.7 million compared to Q2 2022. Net income available for common stockholders increased by $1.4 million, and Normalized FFO per share outperformed guidance expectation by $3.2 million.
Normalized FFO for the quarter ended June 30, 2023 was $0.66 per share, representing a 3.4% increase compared to the same period in 2022.
MH Core MH base rental income for the quarter ended June 30, 2023 increased 6.7% compared to the same period in 2022, which reflects 7.0% growth from rate increases.
Core RV and marina annual base rental income for the quarter ended June 30, 2023 increased 7.8% compared to the same period in 2022, which reflects 7.3% growth from rate increases and 0.5% from occupancy gains.
We sold 226 new homes during the quarter ended June 30, 2023, with an average sales price of $102,000.
ELS
ELS
Forward Guidance
The company provided guidance for the third quarter and full year of 2023.
Positive Outlook
- Net Income per Common Share - Fully Diluted: $0.38 to $0.44 (Third Quarter), $1.59 to $1.69 (Full Year)
- FFO per Common Share and OP Unit - Fully Diluted: $0.68 to $0.74 (Third Quarter), $2.76 to $2.86 (Full Year)
- Normalized FFO per Common Share and OP Unit - Fully Diluted: $0.68 to $0.74 (Third Quarter), $2.80 to $2.90 (Full Year)
- MH base rental income: 6.5% to 7.1% (Third Quarter), 6.3% to 7.3% (Full Year)
- RV and marina base rental income: 2.7% to 3.3% (Third Quarter), 4.1% to 5.1% (Full Year)
Challenges Ahead
- Actual growth rates and per share amounts could vary materially from growth rates and per share amounts presented above if any of our assumptions, including occupancy and rate changes, our ability to manage expenses in an inflationary environment, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect.
- Guidance assumptions do not include future capital events (financing transactions, acquisitions or dispositions) subsequent to those discussed in this press release or the use of free cash flow.
- Core RV and marina annual revenue represents approximately 65.8% and 67.9% of third quarter 2023 and full year 2023 RV and marina base rental income, respectively.
- Property management and general administrative: $120.6 to $126.6 million (Full Year)
- Weighted average debt outstanding $3,375 to $3,575 million (Full Year)