Equity Lifestyle Properties Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Equity Lifestyle Properties Inc. filed its Q1 2024 10-Q report on May 1, 2024.</b>

AI Summary

EQUITY LIFESTYLE PROPERTIES INC (ELS) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Equity Lifestyle Properties Inc. (ELS) filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. The filing was made on May 1, 2024. The company's principal executive offices are located at Two N Riverside Plaza, Suite 800, Chicago, IL 60606.

Why It Matters

For investors and stakeholders tracking EQUITY LIFESTYLE PROPERTIES INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Equity Lifestyle Properties Inc. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks and opportunities in the real estate investment trust sector.

Risk Assessment

Risk Level: medium — EQUITY LIFESTYLE PROPERTIES INC shows moderate risk based on this filing. The filing is a standard 10-Q, which provides a routine update on financial performance and does not contain significant new information that would drastically alter the risk profile.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance and outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-01 — Filing Date (Filed as of date)
• 2024 Q1 — Filing Quarter (Indicates the filing is for the first quarter of 2024)
• 12/31 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• EQUITY LIFESTYLE PROPERTIES INC (company) — Filer name
• ELS (company) — Ticker symbol
• 2024-03-31 (date) — Conformed period of report
• 2024-05-01 (date) — Filed as of date
• Two N Riverside Plz, Ste 800, Chicago, IL 60606 (address) — Business address

FAQ

Industry Context

Equity Lifestyle Properties Inc. operates as a real estate investment trust (REIT) focused on manufactured home communities and recreational vehicle resorts.

Regulatory Implications

As a publicly traded company, Equity Lifestyle Properties Inc. is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and net income for Q1 2024.
2. Review any disclosures regarding property acquisitions, dispositions, or development activities.
3. Examine management's discussion and analysis for insights into operational performance and future outlook.

Key Dates

• 2024-03-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-01: 10-Q Filing Date — Date the quarterly report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal quarter ending March 31, 2024, providing the latest financial data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value ELS New York Stock Exchange

Filing Documents

• els-20240331.htm (10-Q) — 1061KB
• exhibit311-certificationof.htm (EX-31.1) — 9KB
• exhibit312-certificationof.htm (EX-31.2) — 9KB
• exhibit321-certificationof.htm (EX-32.1) — 5KB
• exhibit322-certificationof.htm (EX-32.2) — 5KB
• 0000895417-24-000067.txt (&nbsp;) — 6025KB
• els-20240331.xsd (EX-101.SCH) — 43KB
• els-20240331_cal.xml (EX-101.CAL) — 86KB
• els-20240331_def.xml (EX-101.DEF) — 212KB
• els-20240331_lab.xml (EX-101.LAB) — 562KB
• els-20240331_pre.xml (EX-101.PRE) — 393KB
• els-20240331_htm.xml (XML) — 731KB

- Financial Information

Part I - Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Index To Financial Statements Consolidated Balance Sheets as of March 31 , 202 4 and December 31, 202 3 3 Consolidated Statements of Income and Comprehensive Income for the quarters ended March 31 , 202 4 and 202 3 4 Consolidated Statements of Changes in Equity for the quarters ended March 31 , 202 4 and 202 3 5 Consolidated Statements of Cash Flows for the quarters ended March 31 , 202 4 and 202 3 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32 2

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements Equity LifeStyle Properties, Inc. Consolidated Balance Sheets (amounts in thousands, except share and per share data) March 31, 2024 December 31, 2023 (unaudited) Assets Investment in real estate: Land $ 2,088,657 $ 2,088,657 Land improvements 4,435,288 4,380,649 Buildings and other depreciable property 1,229,374 1,236,985 7,753,319 7,706,291 Accumulated depreciation ( 2,497,039 ) ( 2,448,876 ) Net investment in real estate 5,256,280 5,257,415 Cash and restricted cash 47,281 29,937 Notes receivable, net 49,346 49,937 Investment in unconsolidated joint ventures 84,989 85,304 Deferred commission expense 54,024 53,641 Other assets, net 138,314 137,499 Total Assets $ 5,630,234 $ 5,613,733 Liabilities and Equity Liabilities: Mortgage notes payable, net $ 2,974,728 $ 2,989,959 Term loans, net 497,875 497,648 Unsecured line of credit 6,000 31,000 Accounts payable and other liabilities 171,061 151,567 Deferred membership revenue 223,470 218,337 Accrued interest payable 12,543 12,657 Rents and other customer payments received in advance and security deposits 131,547 126,451 Distributions payable 93,264 87,493 Total Liabilities 4,110,488 4,115,112 Equity: Stockholders' Equity: Preferred stock, $ 0.01 par value, 10,000,000 shares authorized as of March 31, 2024 and December 31, 2023; none issued and outstanding. — — Common stock, $ 0.01 par value, 600,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 186,493,598 and 186,426,281 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively. 1,917 1,917 Paid-in capital 1,644,410 1,644,319 Distributions in excess of accumulated earnings ( 202,721 ) ( 223,576 ) Accumulated other comprehensive income 5,280 6,061 Total Stockholders' Equity 1,448,886 1,428,721 Non-controlling interests – Common OP Units 70,860 69,900 Total Equity 1,519,746 1,498,621 Total Liabilities and Equity $ 5,630,234 $ 5,613,733 The accompan

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1 – Organization and Basis of Presentation Equity LifeStyle Properties, Inc. ("ELS"), a Maryland corporation, together with MHC Operating Limited Partnership (the "Operating Partnership") and its other consolidated subsidiaries (the "Subsidiaries"), are referred to herein as "we," "us," and "our". We are a fully integrated owner of lifestyle-oriented properties ("Properties") consisting of property operations and home sales and rental operations primarily within manufactured home ("MH") and recreational vehicle ("RV") communities and marinas. We provide our customers the opportunity to place manufactured homes and cottages, RVs and/or boats on our Properties either on a long-term or short-term basis. Our customers may lease individual developed areas ("Sites") or enter into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays. Our Properties are owned primarily by the Operating Partnership and managed internally by affiliates of the Operating Partnership. ELS is the sole general partner of the Operating Partnership, has exclusive responsibility and discretion in management and control of the Operating Partnership and held a 95.3 % interest as of March 31, 2024. As the general partner with control, ELS is the primary beneficiary of, and therefore consolidates, the Operating Partnership. Equity method of accounting is applied to entities in which ELS does not have a controlling interest or for variable interest entities in which ELS is not considered the primary beneficiary, but with respect to which it can exercise significant influence over operations and major decisions. Our exposure to losses associated with unconsolidated joint ventures is primarily limited to the carrying value of these investments. Accordingly, distributions from a joint venture in excess of our carrying value are recognized in earnings. The accompanying unaudited

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 2 – Summary of Significant Accounting Policies (continued) Annual membership subscriptions and membership upgrade sales are accounted for in accordance with ASC 606 , Revenue from Contracts with Customers. Membership subscriptions provide our customers access to specific Properties for limited stays at a specified group of Properties. Payments are deferred and recognized on a straight-line basis over the one-year period during which access to Sites at certain Properties is provided. Membership subscription receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Membership upgrades grant certain additional access rights to the customer and require non-refundable upfront payments. The non-refundable upfront payments are recognized on a straight-line basis over 20 years. Financed upgrade sales (also known as contract receivables) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Revenue from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. We have a limited program under which we purchase loans made by an unaffiliated lender to homebuyers at our Properties. Financed home sales (also known as chattel loans) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. (b) Restricted Cash As of March 31, 2024 and December 31, 2023, restricted cash consisted of $ 32.2 million and $ 25.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. (c) Insurance Recoveries We carry comprehensive insurance coverage for losses resulting from property damage and environmental liability and business in

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 3 – Leases (continued) into consideration certain other factors. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases: (amounts in thousands) As of March 31, 2024 2024 $ 79,784 2025 103,593 2026 26,912 2027 25,354 2028 23,690 Thereafter 50,860 Total $ 310,193 Lessee We lease land under non-cancelable operating leases at 10 Properties expiring on various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2033. For the quarters ended March 31, 2024 and 2023, total operating lease payments were $ 1.6 million and $ 1.5 million, respectively. The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of March 31, 2024: As of March 31, 2024 (amounts in thousands) Ground Leases Office and Other Leases Total 2024 $ 550 $ 3,202 $ 3,752 2025 680 3,757 4,437 2026 684 3,393 4,077 2027 689 3,130 3,819 2028 685 2,955 3,640 Thereafter 3,840 10,744 14,584 Total undiscounted rental payments 7,128 27,181 34,309 Less imputed interest ( 1,774 ) ( 4,524 ) ( 6,298 ) Total lease liabilities $ 5,354 $ 22,657 $ 28,011 Right-of-use ("ROU") assets and lease liabilities from our operating leases, included within Other assets, net

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 4 – Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share of common stock ("Common Share") for the quarters ended March 31, 2024 and 2023: Quarters Ended March 31, (amounts in thousands, except per share data) 2024 2023 Numerators: Net income available for Common Stockholders – Basic $ 109,905 $ 82,371 Amounts allocated to non controlling interest (dilutive securities) 5,366 4,088 Net income available for Common Stockholders – Fully Diluted $ 115,271 $ 86,459 Denominators: Weighted average Common Shares outstanding – Basic 186,287 185,900 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,105 9,262 Stock options and restricted stock 153 207 Weighted average Common Shares outstanding – Fully Diluted 195,545 195,369 Earnings per Common Share – Basic $ 0.59 $ 0.44 Earnings per Common Share – Fully Diluted $ 0.59 $ 0.44 Note 5 – Common Stock and Other Equity Related Transactions Common Stockholder Distribution Activity The following quarterly distributions have been declared and paid to Common Stockholders and the Operating Partnership unit ("OP Unit") holders since January 1, 2023: Distribution Amount Per Share For the Quarter Ended Stockholder Record Date Payment Date $ 0.4475 March 31, 2023 March 31, 2023 April 14, 2023 $ 0.4475 June 30, 2023 June 30, 2023 July 14, 2023 $ 0.4475 September 30, 2023 September 29, 2023 October 13, 2023 $ 0.4475 December 31, 2023 December 29, 2023 January 12, 2024 $ 0.4775 March 31, 2024 March 28, 2024 April 12, 2024 Exchanges

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 6 – Investment in Unconsolidated Joint Ventures The following table summarizes our investments in unconsolidated joint ventures (investment and income/(l

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View this 10-Q filing on SEC EDGAR