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Sep 30, 2021
ELS Q3 2021 Earnings Report
ELS reported strong performance with increased revenue and net income.
Key Takeaways
Equity LifeStyle Properties reported a strong third quarter with a 16.8% increase in total revenues, reaching $332.9 million. Net income available for Common Stockholders rose to $70.6 million, or $0.38 per Common Share. Normalized FFO per share was $0.65, 18% higher than the same period in 2020.
Normalized FFO per common share on a fully diluted basis was $0.65 for the quarter ended September 30, 2021, 18% higher than the quarter ended September 30, 2020.
Core Portfolio generated growth of 11% in income from property operations, excluding deferrals and property management, for the third quarter of 2021 compared to the quarter ended September 30, 2020.
MH occupancy within our Core Portfolio increased by 60 sites during the quarter ended September 30, 2021 from the quarter ended June 30, 2021.
New home sales of 338 for the quarter ended September 30, 2021 represents the highest quarterly new home sales volume in ELS history.
ELS
ELS
Forward Guidance
Equity Lifestyle Properties provided guidance for the fourth quarter and full year 2021, along with preliminary rent rate growth assumptions for 2022.
Positive Outlook
- Core MH rate growth is expected to be 4.2% for both the fourth quarter and the full year 2021.
- Core RV annual rate growth is projected at 4.4% for the fourth quarter and 4.2% for the full year 2021.
- Core income from property operations, excluding deferrals and property management, is anticipated to grow between 6.5% and 7.1% for the fourth quarter and 8.1% to 8.7% for the full year 2021.
- Net income per share is estimated to be between $0.32 and $0.38 for the fourth quarter and $1.40 to $1.46 for the full year 2021.
- Normalized FFO per share is forecasted to be between $0.57 and $0.63 for the fourth quarter and $2.47 to $2.53 for the full year 2021.
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 integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect.
- The mix of site usage within the portfolio.
- Yield management on our short-term resort and marina sites.
- Costs to restore property operations and potential revenue losses following storms or other unplanned events.
- Risks related to the COVID-19 pandemic, many of which are unknown, including the duration of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers, and employees in particular, its impact on the employment rate and the economy, the extent and impact of governmental responses, and the impact of operational changes we have implemented and may implement in response to the pandemic.