Exhibit 99.1
| Dear Readers, |
| The last few years have demonstrated the strength of our company. We have delivered stable, predictable growth in a very difficult economy. In addition, over the long-term our core portfolio has outperfonned most other real estate asset classes. One of our favorite graphs during investor presentations compares our core portfolio to the REIT industry average. We have included this graph (at left) — we think it is worth a look. We believe the consistency of our performance is related to the strength of our business plan: owning high quality real estate in sought after locations that provide an attractive lifestyle option to empty-nesters and retirees. |
| In a difficult economy, investors and analysts viewed our stabilityand consistencyas attractive. However, as optimism about a sustained economic recovery grows, the focus shifts to a renewed interest in risk-taking. Aggressive growth projections, development pipelines and transactional activity have taken the place of balance sheet strength and the stability of cash flow as primary topics for discussion. And frankly, on those topics, our comments are relatively subdued Although we continue to expect growth, we see caution and a focus on capital preservation as drivers of our core baby boomer customer base. Development in our |
| asset class is difficult to justify even in the best economies and although we are always on the lookout for attractive investments, “distress” opportunities remain elusive. |
| Nevertheless, we remain confident in our business plan. To the extent there is a strong economic recovery, we believe we are well positioned to participate. In addition, our financial flexibilitywill allow us to aggressively pursue opportunities when they do arise. In any event, no matter what the future holds, we believe ELS represents a core holding for those investors looking for long-term, stable and predictable cash flow growth. |
| As we continue our tradition of providing a glimpse of the lifestyle that is ELS, we thought we’d take a cue from the latest trends. To that end, this year, in addition to letters, our collection of stories also includes communications we’ve received from the social networks that have become second nature to most ofus. |
| We hope you enjoy this year’s collection of stories and images depicting “The Life in a Day ofELS.” |
| Chainnan ofthelloard CEO |
