NYSE$ELS

Equity LifeStyle Properties Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

ELS reported strong performance with increased revenue and net income.

Equity LifeStyle Properties reported a strong third quarter with a 16.8% increase in total revenues, reaching $332.9 million. Net income available for Common Stockholders rose to $70.6 million, or $0.38 per Common Share. Normalized FFO per share was $0.65, 18% higher than the same period in 2020.

  • Normalized FFO per common share on a fully diluted basis was $0.65 for the quarter ended September 30, 2021, 18% higher than the quarter ended September 30, 2020.
  • Core Portfolio generated growth of 11% in income from property operations, excluding deferrals and property management, for the third quarter of 2021 compared to the quarter ended September 30, 2020.
  • MH occupancy within our Core Portfolio increased by 60 sites during the quarter ended September 30, 2021 from the quarter ended June 30, 2021.
  • New home sales of 338 for the quarter ended September 30, 2021 represents the highest quarterly new home sales volume in ELS history.

Headline financials

Total Revenue

$333M

Previous: $285M+16.8%
EPS (adj)

$0.65

Previous: $0.55+18.2%
Capital Expenditures

-$562M

Previous: -$65.6M-757.1%
Free Cash Flow

-$488M

Previous: -$12.1M-3927.5%
Net Income

$74.1M

Previous: $53.5M+38.6%
Operating Income

$206M

Previous: $170M+21.2%
Gross Profit

$224M

Previous: $185M+20.7%
Cash & Equivalents

$40.3M

Previous: $114M-64.7%
Total Assets

$4.98B

Previous: $4.26B+16.9%
Stock-Based Comp

$3.3M

Previous: $2.88M+14.6%

Revenue & EPS history

ELS · Revenue · Quarterly

$333M

Q3 2021+16.8%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
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

Equity Lifestyle Properties provided guidance for the fourth quarter and full year 2021, along with preliminary rent rate growth assumptions for 2022.

Tailwinds

  • Core MH rate growth is expected to be 4.2% for both the fourth quarter and the full year 2021.
  • Core RV annual rate growth is projected at 4.4% for the fourth quarter and 4.2% for the full year 2021.
  • Core income from property operations, excluding deferrals and property management, is anticipated to grow between 6.5% and 7.1% for the fourth quarter and 8.1% to 8.7% for the full year 2021.
  • Net income per share is estimated to be between $0.32 and $0.38 for the fourth quarter and $1.40 to $1.46 for the full year 2021.
  • Normalized FFO per share is forecasted to be between $0.57 and $0.63 for the fourth quarter and $2.47 to $2.53 for the full year 2021.

Headwinds

  • Actual growth rates and per share amounts could vary materially from growth rates and per share amounts presented above if any of our assumptions, including occupancy and rate changes, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect.
  • The mix of site usage within the portfolio.
  • Yield management on our short-term resort and marina sites.
  • Costs to restore property operations and potential revenue losses following storms or other unplanned events.
  • Risks related to the COVID-19 pandemic, many of which are unknown, including the duration of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers, and employees in particular, its impact on the employment rate and the economy, the extent and impact of governmental responses, and the impact of operational changes we have implemented and may implement in response to the pandemic.

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 Q3 2021

Historical avgQ3 2021

+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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