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Sep 30, 2023
ELS Q3 2023 Earnings Report
ELS reported strong results in Q3 2023, driven by increased revenues and normalized FFO.
Key Takeaways
Equity LifeStyle Properties reported a revenue of $388.8 million and a net income of $77.0 million for the third quarter of 2023. Normalized FFO per share was $0.71, a 2.1% increase compared to the same period in 2022.
Total revenues increased to $388.8 million, up from $381.0 million in Q3 2022.
Net income available for Common Stockholders rose to $77.0 million, compared to $67.2 million in the same quarter last year.
Normalized FFO per share reached $0.71, outperforming guidance expectations.
Core MH occupancy increased by 42 sites, including a net gain of 225 homeowners.
ELS
ELS
Forward Guidance
Equity Lifestyle Properties provided guidance for the fourth quarter and full year 2023, including estimates for net income per share, FFO per share, and normalized FFO per share.
Positive Outlook
- Net Income per Common Share - Fully Diluted: $0.41 to $0.47 (Fourth Quarter), $1.60 to $1.66 (Full Year)
- FFO per Common Share and OP Unit - Fully Diluted: $0.70 to $0.76 (Fourth Quarter), $2.78 to $2.84 (Full Year)
- Normalized FFO per Common Share and OP Unit - Fully Diluted: $0.70 to $0.76 (Fourth Quarter), $2.82 to $2.88 (Full Year)
- Core Portfolio MH base rental income is expected to grow between 6.7% and 7.3% in the fourth quarter and between 6.5% and 7.1% for the full year.
- Core Portfolio RV and marina base rental income is expected to grow between 4.7% and 5.3% in the fourth quarter and between 3.5% and 4.1% for the full year.
Challenges Ahead
- 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.
- Actual results could vary materially from management’s estimates 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.
- Weighted average debt outstanding $3,400 to $3,600 millions
- Interest and related amortization $129.4 to $135.4 millions
- Preliminary 2024 Rent Rate Growth Assumptions average rate increase of these notices is approximately 5.4% for MH residents and 7.0% for RV annual sites.