Equity Lifestyle Properties Q3 2024 10-Q Filed

TL;DR

**ELT files Q3 10-Q: Financials and ops update for investors.**

AI Summary

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

Why It Matters

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

Risk Assessment

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

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-10-30 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2024 Q3 — Fiscal Quarter (Specifies the third quarter of the fiscal year 2024.)

Key Players & Entities

• Equity Lifestyle Properties Inc. (company) — Filer of the 10-Q
• Manufactured Home Communities Inc. (company) — Former name of Equity Lifestyle Properties Inc.
• 0000895417 (company) — CIK number for Equity Lifestyle Properties Inc.

FAQ

Key Financial Figures

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

Filing Documents

• els-20240930.htm (10-Q) — 1569KB
• 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
• 0000895417-24-000102.txt ( ) — 7400KB
• els-20240930.xsd (EX-101.SCH) — 45KB
• els-20240930_cal.xml (EX-101.CAL) — 91KB
• els-20240930_def.xml (EX-101.DEF) — 232KB
• els-20240930_lab.xml (EX-101.LAB) — 613KB
• els-20240930_pre.xml (EX-101.PRE) — 426KB
• els-20240930_htm.xml (XML) — 1013KB

- Financial Information

Part I - Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Index To Financial Statements Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Consolidated Statements of Income and Comprehensive Income for the quarters and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Changes in Equity for the quarters and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Cash Flows for the nine months ended September 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 37

Controls and Procedures

Item 4. Controls and Procedures 37

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 38 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) September 30, 2024 December 31, 2023 (unaudited) Assets Investment in real estate: Land $ 2,088,682 $ 2,088,657 Land improvements 4,536,573 4,380,649 Buildings and other depreciable property 1,230,614 1,236,985 7,855,869 7,706,291 Accumulated depreciation ( 2,592,258 ) ( 2,448,876 ) Net investment in real estate 5,263,611 5,257,415 Cash and restricted cash 40,398 29,937 Notes receivable, net 55,037 49,937 Investment in unconsolidated joint ventures 84,834 85,304 Deferred commission expense 56,050 53,641 Other assets, net 144,189 137,499 Total Assets $ 5,644,119 $ 5,613,733 Liabilities and Equity Liabilities: Mortgage notes payable, net $ 2,943,999 $ 2,989,959 Term loans, net 497,873 497,648 Unsecured line of credit 32,500 31,000 Accounts payable and other liabilities 207,603 151,567 Deferred membership revenue 232,862 218,337 Accrued interest payable 11,991 12,657 Rents and other customer payments received in advance and security deposits 128,345 126,451 Distributions payable 93,407 87,493 Total Liabilities 4,148,580 4,115,112 Equity: Stockholders' Equity: Preferred stock, $ 0.01 par value, 10,000,000 shares authorized as of September 30, 2024 and December 31, 2023; none issued and outstanding. — — Common stock, $ 0.01 par value, 600,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 186,512,609 and 186,426,281 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. 1,917 1,917 Paid-in capital 1,648,384 1,644,319 Distributions in excess of accumulated earnings ( 219,724 ) ( 223,576 ) Accumulated other comprehensive income ( 4,764 ) 6,061 Total Stockholders' Equity 1,425,813 1,428,721 Non-controlling interests – Common OP Units 69,726 69,900 Total Equity 1,495,539 1,498,621 Total Liabilities and Equity $ 5,644,119 $ 5,6

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 September 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 unaud

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 September 30, 2024 and December 31, 2023, restricted cash consisted of $ 21.9 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 busines

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 3 – Leases Lessor The leases entered into between a customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain 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 September 30, 2024 2024 $ 33,925 2025 136,950 2026 40,424 2027 39,173 2028 26,010 Thereafter 52,669 Total $ 329,151 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 September 30, 2024 and 2023, total operating lease payments were $ 1.8 million and $ 1.6 million, respectively. For the nine months ended September 30, 2024 and 2023, total operating lease payments were $ 5.1 million and $ 4.9 million, respectively. The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by

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