Equity Lifestyle Properties Q2 2024 10-Q Filed

TL;DR

**ELT Q2 10-Q is IN! Check financials for latest performance.**

AI Summary

Equity Lifestyle Properties Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and disclosures relevant to investors are presented within this report.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Equity Lifestyle Properties Inc., crucial for making informed investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific content can reveal risks related to real estate investment trusts, market conditions, and company performance.

Key Numbers

• 2024 Q2 — Reporting Period (Financials for the second quarter of 2024 are detailed.)
• 1231 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st.)

Key Players & Entities

• Equity Lifestyle Properties Inc. (company) — Filer of the 10-Q report.
• Manufactured Home Communities Inc. (company) — Former name of Equity Lifestyle Properties Inc.
• 0000895417-24-000092 (filing_id) — Accession number for this 10-Q filing.
• 20240630 (date) — End of the reporting period for the 10-Q.
• 20240730 (date) — Date the 10-Q was filed.

FAQ

Key Financial Figures

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

Filing Documents

• els-20240630.htm (10-Q) — 1480KB
• 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
• 0000895417-24-000092.txt ( ) — 7108KB
• els-20240630.xsd (EX-101.SCH) — 44KB
• els-20240630_cal.xml (EX-101.CAL) — 89KB
• els-20240630_def.xml (EX-101.DEF) — 216KB
• els-20240630_lab.xml (EX-101.LAB) — 595KB
• els-20240630_pre.xml (EX-101.PRE) — 409KB
• els-20240630_htm.xml (XML) — 968KB

- Financial Information

Part I - Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Index To Financial Statements Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Consolidated Statements of Income and Comprehensive Income for the quarters and six months ended June 30 , 2024 and 2023 4 Consolidated Statements of Changes in Equity for the quarters and six months ended June 30 , 2024 and 2023 5 Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

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 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 35

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 36 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) June 30, 2024 December 31, 2023 (unaudited) Assets Investment in real estate: Land $ 2,088,682 $ 2,088,657 Land improvements 4,490,978 4,380,649 Buildings and other depreciable property 1,225,474 1,236,985 7,805,134 7,706,291 Accumulated depreciation ( 2,544,276 ) ( 2,448,876 ) Net investment in real estate 5,260,858 5,257,415 Cash and restricted cash 35,658 29,937 Notes receivable, net 51,504 49,937 Investment in unconsolidated joint ventures 86,439 85,304 Deferred commission expense 54,882 53,641 Other assets, net 156,134 137,499 Total Assets $ 5,645,475 $ 5,613,733 Liabilities and Equity Liabilities: Mortgage notes payable, net $ 2,959,443 $ 2,989,959 Term loans, net 498,007 497,648 Unsecured line of credit 14,000 31,000 Accounts payable and other liabilities 177,819 151,567 Deferred membership revenue 228,099 218,337 Accrued interest payable 11,978 12,657 Rents and other customer payments received in advance and security deposits 152,433 126,451 Distributions payable 93,402 87,493 Total Liabilities 4,135,181 4,115,112 Equity: Stockholders' Equity: Preferred stock, $ 0.01 par value, 10,000,000 shares authorized as of June 30, 2024 and December 31, 2023; none issued and outstanding. — — Common stock, $ 0.01 par value, 600,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 186,516,405 and 186,426,281 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. 1,917 1,917 Paid-in capital 1,646,160 1,644,319 Distributions in excess of accumulated earnings ( 213,486 ) ( 223,576 ) Accumulated other comprehensive income 5,292 6,061 Total Stockholders' Equity 1,439,883 1,428,721 Non-controlling interests – Common OP Units 70,411 69,900 Total Equity 1,510,294 1,498,621 Total Liabilities and Equity $ 5,645,475 $ 5,613,733 The accompanyin

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 June 30, 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 i

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 June 30, 2024 and December 31, 2023, restricted cash consisted of $ 22.4 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 int

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 3 – Leases (continued) Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking 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 June 30, 2024 2024 $ 60,588 2025 119,376 2026 28,439 2027 26,549 2028 24,648 Thereafter 51,211 Total $ 310,811 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 June 30, 2024 and 2023, total operating lease payments were $ 1.7 million in both periods. For the six months ended June 30, 2024 and 2023, total operating lease payments were $ 3.2 million in both periods. 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 June 30, 2024: As of June 30, 2024 (amounts in thousands) Ground Leases Office and Other Leases Total 2024 $ 409 $ 2,543 $ 2,952 2025 680 3,758 4,438 2026 684 3,395 4,079 2027 689 3,131 3,820 2028 685 2,955 3,640 Thereafter 3,840 10,745 14,585 Total undiscounted rental payments 6,987 26,527

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 4 – Earnings Per Common Share The following table sets

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