NYSE$ELS

Equity LifeStyle Properties Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported continued strong performance and updated guidance.

Equity LifeStyle Properties reported a strong second quarter with total revenues increasing by 10.7% to $365.3 million compared to the same period in 2021. Net income available for Common Stockholders increased to $61.5 million, or $0.33 per Common Share.

  • Normalized FFO per Common Share grew by 4.5% compared to the same period in 2021.
  • Core income from property operations, excluding deferrals and property management, grew by 3.3% compared to the same period in 2021.
  • Core MH base rental income grew by 5.7%, reflecting growth from rate increases and occupancy gains.
  • New home sales reached the highest quarterly volume in the company's history.

Headline financials

Total Revenue

$365M

Previous: $317M+15.1%
EPS (adj)

$0.64

Previous: $0.61+4.9%
Capital Expenditures

-$209M

Previous: -$420M+50.1%
Free Cash Flow

-$145M

Previous: -$355M+59.3%
Net Income

$64.6M

Previous: $64.1M+0.8%
Operating Income

$229M

Previous: $197M+15.8%
Gross Profit

$251M

Previous: $215M+16.9%
Cash & Equivalents

$42.4M

Previous: $44.8M-5.2%
Total Assets

$5.4B

Previous: $4.82B+11.9%
Stock-Based Comp

$3.46M

Previous: $3.2M+8.3%

Revenue & EPS history

ELS · Revenue · Quarterly

$365M

Q2 2022+15.1%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ELS · $309M total across 6 segments · Q4 2022

  • Rental Income
    $269M+4.2%
  • Annual Memberships
    $16.2M+6.6%
  • Other Income
    $12.8M-5.3%
  • Membership Upgrades
    $6.89M-0.5%
  • Interest Income
    $2.08M+22.4%
  • Other Investments
    $1.63M+40.9%

Forward guidance

Third quarter and full year 2022 guidance ranges represent a range of possible outcomes and the midpoint reflects management's estimate of the most likely outcome.

Tailwinds

  • MH rate growth between 5.3% and 5.5%
  • RV Annual rate growth between 6.6% and 6.8%
  • Net Income/share between $0.37 to $0.43
  • FFO/share between $0.66 to $0.72
  • Normalized FFO/share between $0.66 to $0.72

Headwinds

  • Combined RV Seasonal and Transient base rental income growth (2.5)% to (3.5)%
  • Property operating revenue growth rate 4.3% to 4.9%
  • Property operating expense growth rate 3.7% to 4.3%
  • Income from property operations, excluding deferrals and property management growth rate 4.7% to 5.3%
  • Factors impacting 2022 guidance include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly seasonal employees; (xiii) ongoing legal matters and related fees; and (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+6.1%

Q1 2023

Best reaction

-7.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-0.4%+1.1%
Q4 2025+1.3%+4.4%+7.0%
Q3 2025-3.8%-4.2%-0.6%
Q2 2025+0.6%+0.5%+2.0%
Q1 2025-1.1%-2.1%-1.6%
Q4 2024-3.9%-5.6%-1.5%
Q3 2024-1.8%-0.8%+1.0%
Q2 2024-2.2%-1.2%+4.8%
Q1 2024-1.5%-3.5%+2.2%
Q4 2023+1.7%-2.5%-1.8%
Q3 2023+5.3%+0.4%+7.4%
Q2 2023-2.2%+6.8%-0.8%
Q1 2023+6.1%+7.2%+3.7%
Q4 2022+4.0%+5.3%-3.9%
Q3 2022+3.2%-2.8%+6.2%
Q2 2022-3.6%-2.1%+5.0%
Q1 2022+3.1%+3.0%-11.0%
Q4 2021-1.1%-0.1%-5.6%
Q3 2021+1.0%+3.0%+1.4%
Q2 2021+1.7%+2.9%+2.8%
Q1 2021+1.6%+1.7%+2.8%
Q4 2020+1.9%-3.9%-2.2%
Q3 2020-2.1%-2.5%-4.9%
Q2 2020-2.3%+2.3%+1.2%
Q1 2020-7.0%-4.7%-4.9%
Q4 2019+0.4%+0.9%+2.5%
Q3 2019-1.6%-0.2%+3.1%
Q2 2019+1.5%+0.8%+11.0%
Q1 2019-0.2%+2.0%+3.6%
Q4 2018+1.8%+3.5%+5.4%
Q3 2018-0.3%+1.5%+3.5%
Q2 2018-1.5%-1.5%+3.3%
Q1 2018+0.7%+2.8%+1.0%
Q4 2017-0.9%-1.4%-1.6%
Q3 2017-0.4%-0.5%+1.4%
Q2 2017+1.0%+2.6%+2.5%
Q1 2017+3.0%+2.7%+3.9%
Q4 2016+2.4%+2.5%+4.6%
Q3 2016+0.6%+0.5%-8.2%
Q2 2016+1.1%+0.5%-2.9%
Q1 2016+3.1%
Q4 2015-1.7%
Q3 2015+0.6%
Q2 2015+0.9%
Q1 2015+1.8%
Q4 2014+0.9%
Q3 2014+4.0%
Q2 2014-1.4%
Q1 2014+0.8%
Q4 2013+2.7%
Q3 2013+3.4%
Q2 2013-0.5%
Q1 2013-0.5%
Q4 2012+2.0%
Q3 2012-0.3%
Q2 2012+0.4%
Q1 2012+0.5%
Q4 2011+0.7%
Q3 2011-5.0%
Q2 2011+2.4%
Q1 2010-0.8%
Q1 2011+1.9%
Q4 2008+0.7%
Q4 2010+0.7%
Q3 2009+4.0%
Q3 2010+4.0%
Q4 2009-0.7%
Q2 2010-0.7%
Q2 2009-0.7%

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