EXHIBIT 99.1
CONTACT: Michael Berman FOR IMMEDIATE RELEASE
(312) 279-1496 April 18, 2005
ELS REPORTS STRONG FIRST QUARTER RESULTS
REITERATES GUIDANCE FOR 2005
CHICAGO, IL - APRIL 18, 2005--Equity LifeStyle Properties, Inc.
(NYSE: ELS) today announced results for the quarter ended March 31, 2005.
For the first quarter of 2005, Funds From Operations (FFO) were $25.3
million or $0.85 per share on a fully diluted basis, compared to $15.5 million
or $0.55 per fully diluted share for the same period in 2004. First quarter 2005
property operating revenues were $84.8 million, compared to $67.8 million in the
first quarter of 2004. For the quarter ended March 31, 2005, the Company had 118
new home sales, a 26 percent increase over the quarter ended March 31, 2004.
Gross revenues from home sales were approximately $10.2 million for the quarter
ended March 31, 2005, compared to approximately $7.4 million for the quarter
ended March 31, 2004.
Net income available to common stockholders totaled $8.7 million or
$0.37 per fully diluted share for the quarter ended March 31, 2005. This
compares to net income available to common stockholders of $4.5 million or $0.19
per fully diluted share for the first quarter of 2004. See the attachment to
this press release for a reconciliation of FFO and FFO per share to net income
and net income per share, respectively, the most directly comparable GAAP
measures.
Commented Thomas P. Heneghan, ELS President and CEO, "The first quarter
of 2005 was important for us given the significant investments we made during
2004. I am very pleased with our performance and our strong start for 2005. "
The Company has $71 million available under its line of credit.
ELS management continues to project fully diluted FFO per share to be
in the range of $2.44 to $2.54 for 2005. Furthermore, management expects fully
diluted FFO per share for the first half of 2005 to be between $1.35 and $1.38.
Factors impacting revenues include i) the mix of site usage within the Company's
portfolio; ii) the Company's yield management of its short term resort sites;
iii) scheduled or
implemented rate increases; and iv) occupancy changes. Results for 2005 also may
be impacted by, among other things i) continued competitive housing options and
new home sales initiatives impacting occupancy levels at certain communities;
ii) variability in income from home sales operations, including anticipated
expansion projects; iii) whether acquired properties operate in line with
expectations; iv) the lingering effects, if any, on occupancy levels and sales
resulting from changes in customer demand due to the 2004 Florida storms; v)
potential acquisitions and investments; vi) potential dispositions; and vii)
rent control initiative costs.
The forward-looking statements contained in this news release are
subject to certain risks and uncertainties including, but not limited to, the
Company's ability to maintain rental rates and occupancy with respect to
properties currently owned or pending acquisitions; the Company's assumptions
about rental and home sales markets; the completion of pending acquisitions and
timing with respect thereto; the effect of interest rates as well as other risks
indicated from time to time in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.
Equity LifeStyle Properties, Inc. owns or has an interest in 278
quality communities in 26 states and British Columbia consisting of 101,727
sites. The Company is a self-administered, self-managed, real estate investment
trust (REIT) with headquarters in Chicago.
A live webcast of the Company's conference call discussing these
results will be available via the Company's website in the Investor Info section
at www.mhchomes.com at 10:00 a.m. Central on April 19, 2005. If you wish to
listen to the opening remarks in advance, they will be available on our website.
###
Tables follow
EQUITY LIFESTYLE PROPERTIES, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT FOR PER SHARE DATA)
QUARTERS ENDED
MARCH 31, MARCH 31,
2005 2004
-------- --------
PROPERTY OPERATIONS:
Community base rental income ......................... $ 52,919 $ 49,118
Resort base rental income ............................ 24,247 12,342
Utility and other income ............................. 7,616 6,334
-------- --------
Property operating revenues ....................... 84,782 67,794
Property operating and maintenance ................... 26,294 20,200
Real estate taxes .................................... 6,160 5,264
Property management .................................. 3,649 2,846
-------- --------
Property operating expenses ....................... 36,103 28,310
-------- --------
Income from property operations ................... 48,679 39,484
HOME SALES OPERATIONS:
Gross revenues from inventory home sales ............. 10,236 7,426
Cost of inventory home sales ......................... (8,947) (6,848)
-------- --------
Gross profit from inventory home sales ............ 1,289 578
Brokered resale revenues, net ........................ 606 490
Home selling expenses ................................ (2,053) (2,073)
Ancillary services revenues, net ..................... 2,136 905
-------- --------
Income from home sales and other .................. 1,978 (100)
OTHER INCOME AND EXPENSES:
Interest income ...................................... 371 453
Other corporate income ............................... 4,061 290
Equity in income of unconsolidated joint ventures..... 1,143 968
General and administrative ........................... (2,882) (2,212)
Rent control initiatives ............................. (570) (629)
-------- --------
Operating income (EBITDA) ......................... 52,780 38,254
Interest and related amortization .................... (24,999) (20,139)
Income from discontinued operations .................. 626 623
Depreciation on corporate assets ..................... (216) (377)
Income allocated to Preferred OP Units ............... (2,856) (2,813)
-------- --------
FUNDS FROM OPERATIONS (FFO) ....................... $ 25,335 $ 15,548
Depreciation on real estate and other costs .......... (13,498) (10,091)
Depreciation on unconsolidated joint ventures ........ (426) (206)
Depreciation on discontinued operations .............. (329) (340)
Gain on sale of properties ........................... --- 638
Income allocated to Common OP Units .................. (2,373) (1,039)
-------- --------
NET INCOME ........................................ $ 8,709 $ 4,510
======== ========
NET INCOME PER COMMON SHARE - BASIC .................... $ 0.38 $ 0.20
NET INCOME PER COMMON SHARE - FULLY DILUTED ............ $ 0.37 $ 0.19
-------- --------
FFO PER COMMON SHARE - BASIC ........................... $ 0.86 $ 0.56
FFO PER COMMON SHARE - FULLY DILUTED ................... $ 0.85 $ 0.55
-------- --------
Average Common Shares - Basic .......................... 22,974 22,674
Average Common Shares and OP Units - Basic ............. 29,309 27,986
Average Common Shares and OP Units - Fully Diluted...... 29,878 28,521
-------- --------
EQUITY LIFESTYLE PROPERTIES, INC.
(UNAUDITED)
AS OF AS OF
MARCH 31, DECEMBER 31,
TOTAL SHARES AND OP UNITS OUTSTANDING: 2005 2004
------------------ ------------------
Total Common Shares Outstanding............... 22,993,942 22,937,192
Total Common OP Units Outstanding............. 6,324,046 6,340,805
SELECTED BALANCE SHEET DATA: MARCH 31, DECEMBER 31,
2005 2004
(amounts in 000's) (amounts in 000's)
------------------ ------------------
Total real estate, net......................... $ 1,704,977 $ 1,712,923
Cash and cash equivalents...................... $ 5,351 $ 5,305
Total assets (1)............................... $ 1,888,598 $ 1,886,289
Mortgage notes payable......................... $ 1,413,533 $ 1,417,251
Unsecured debt................................. $ 201,850 $ 235,800
Total liabilities.............................. $ 1,685,012 $ 1,719,674
Minority interest.............................. $ 162,096 $ 134,771
Total stockholders' equity..................... $ 41,490 $ 31,844
(1) Includes hurricane related costs recoverable from insurance providers of
$8.0 million.
MANUFACTURED HOME SITE RENT AND QUARTERS ENDED
OCCUPANCY AVERAGES: MARCH 31, MARCH 31,
2005 2004
------------ ------------
Total Sites................................... 42,737 41,242
Occupied Sites................................ 38,738 37,799
Occupancy %................................... 90.6% 91.7%
Monthly Base Rent Per Site.................... $ 458.05 $ 437.95
Core Monthly Base Rent Per Site (1)........... $ 455.36 $ 433.15
(1) Represents rent per site for properties owned in both periods of
comparison.
QUARTERS ENDED
MARCH 31, MARCH 31,
HOME SALES (1): 2005 2004
----------- ----------
New Home Sales Volume (2)..................... 127 94
New Home Sales Gross Revenues................. $ 9,603 $ 6,798
Used Home Sales Volume........................ 53 76
Used Home Sales Gross Revenues................ $ 642 $ 740
Brokered Home Resale Volume................... 373 329
Brokered Home Resale Revenues, net............ $ 611 $ 492
(1) Includes results from discontinued operations.
(2) Quarter ended March 31, 2005 includes nine third-party sales.
EQUITY LIFESTYLE PROPERTIES, INC
(UNAUDITED)
ANNUAL REVENUE RANGES:
Approximate
Total Sites Total Sites Annual
(rounded to 100's) (rounded to 100's) Revenue Range (1)
------------------ ------------------ -----------------
3/31/05 12/31/04
Community sites (2): 45,200 45,200 $5,400-$5,500 (3)
Resort sites:
Annuals 13,100 13,100 $3,000-$3,200
Seasonal 7,600 7,200 $1,800-$1,900
Transient 5,600 6,000 $2,000-$2,200
Thousand Trails 17,900 17,900 (4)
Joint Ventures 11,800 11,800 (5)
------------------ ------------------
101,200 101,200
================== ==================
1) All ranges exclude utility and other income.
2) Includes 2,466 sites from discontinued operations.
3) Based on occupied sites, including discontinued properties. Average
occupancy as of 3/31/05 was approximately 89.3%.
4) 17,911 sites are reserved for Thousand Trails members pursuant to a
sale-leaseback agreement with Thousand Trails Operations Holding
Company, L.P. with an annual rent of $16 million.
5) Joint venture income is included in Other Corporate Income.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD): QUARTERS ENDED
MARCH 31, MARCH 31,
2005 2004
--------- ---------
Funds from operations ........................... $ 25,335 $ 15,548
Non-revenue producing improvements to real estate (2,289) (2,674)
-------- --------
Funds available for distribution ............ $ 23,046 $ 12,874
======== ========
FAD per Common Share - Basic ..................... $ 0.79 $ 0.46
FAD per Common Share - Fully Diluted ............. $ 0.77 $ 0.45
-------- --------
"Funds from Operations ("FFO") is a non-GAAP financial
measure. The Company believes that FFO, as defined by the Board of
Governors of the National Association of Real Estate Investment Trusts
("NAREIT"), to be an appropriate measure of performance for an equity
REIT. While FFO is a relevant and widely used measure of operating
performance for equity REITs, it does not represent cash flow from
operations or net income as defined by GAAP, and it should not be
considered as an alternative to these indicators in evaluating
liquidity or operating performance.
FFO is defined as net income, computed in accordance with
GAAP, excluding gains or losses from sales of properties, plus real
estate related depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures are calculated to
reflect FFO on the same basis. The Company believes that FFO is helpful
to investors as one of several measures of the performance of an equity
REIT. The Company further believes that by excluding the effect of
depreciation, amortization and gains or losses from sales of real
estate, all of which are based on historical costs and which may be of
limited relevance in evaluating current performance, FFO can facilitate
comparisons of operating performance between periods and among other
equity REITs. Investors should review FFO, along with GAAP net income
and cash flow from operating activities, investing activities and
financing activities, when evaluating an equity REIT's operating
performance. The Company computes FFO in accordance with standards
established by NAREIT, which may not be comparable to FFO reported by
other REITs that do not define the term in accordance with the current
NAREIT definition or that interpret the current NAREIT definition
differently than we do. Funds available for distribution ("FAD") is a
non-gaap financial measure. FAD is defined as FFO less non-revenue
producing capital expenditures. Investors should review FFO and FAD,
along with GAAP net income and cash flow from operating activities,
investing activities and financing activities, when evaluating an
equity REIT's operating performance. FFO and FAD do not represent cash
generated from operating activities in accordance with GAAP, nor do
they represent cash available to pay distributions and should not be
considered as an alternative to net income, determined in accordance
with GAAP, as an indication of our financial performance, or to cash
flow from operating activities, determined in accordance with GAAP, as
a measure of our liquidity, nor is it indicative of funds available to
fund our cash needs, including our ability to make cash distributions."