Els reports second quarter results
Chicago--(business wire)--equity lifestyle properties, inc. (nyse: els) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and six months ended june 30, 2020. all common stock and op units as well as per share results reflect the two for one stock split that was completed on october 15, 2019. additionally, all per share results are reported on a fully diluted basis unless otherwise noted. financial results for the quarter and six months ended june 30, 2020 for the quarter ended june 30, 2020, total revenues increased $5.7 million, or 2.3 percent, to $254.1 million compared to $248.4 million for the same period in 2019. for the quarter ended june 30, 2020, net income available for common stockholders decreased $0.2 million, or $0.01 per common share, to $46.2 million, or $0.25 per common share, compared to $46.4 million, or $0.26 per common share, for the same period in 2019. for the six months ended june 30, 2020, total revenues increased $27.1 million, or 5.3 percent, to $534.6 million compared to $507.5 million for the same period in 2019. for the six months ended june 30, 2020, net income available for common stockholders decreased $46.6 million, or $0.27 per common share, to $113.1 million, or $0.62 per common share, compared to $159.7 million, or $0.89 per common share, for the same period in 2019. the financial results for 2019 included a gain of $52.5 million on the sale of five all-age mh communities. non-gaap financial measures and portfolio performance for the quarter ended june 30, 2020, funds from operations (“ffo”) available for common stock and op unit holders decreased $0.3 million to $89.5 million, or $0.47 per common share, compared to $89.8 million, or $0.47 per common share, for the same period in 2019. for the six months ended june 30, 2020, ffo available for common stock and op unit holders increased $4.0 million, or $0.02 per common share, to $201.8 million, or $1.05 per common share, compared to $197.8 million, or $1.03 per common share, for the same period in 2019. for the quarter ended june 30, 2020, normalized funds from operations (“normalized ffo”) available for common stock and op unit holders decreased $1.0 million, or $0.01 per common share, to $90.9 million, or $0.47 per common share, compared to $91.9 million, or $0.48 per common share, for the same period in 2019. for the six months ended june 30, 2020, normalized ffo available for common stock and op unit holders increased $4.7 million, or $0.02 per common share, to $204.3 million, or $1.06 per common share, compared to $199.6 million, or $1.04 per common share, for the same period in 2019. for the quarter ended june 30, 2020, property operating revenues, excluding deferrals, increased $6.3 million to $247.0 million compared to $240.7 million for the same period in 2019. for the six months ended june 30, 2020, property operating revenues, excluding deferrals, increased $25.1 million to $516.7 million compared to $491.6 million for the same period in 2019. for the quarter ended june 30, 2020, income from property operations, excluding deferrals and property management, increased $3.7 million to $139.4 million compared to $135.7 million for the same period in 2019. for the six months ended june 30, 2020, income from property operations, excluding deferrals and property management, increased $14.2 million to $303.3 million compared to $289.1 million for the same period in 2019. for the quarter ended june 30, 2020, core property operating revenues, excluding deferrals, increased approximately 0.6 percent and core income from property operations, excluding deferrals and property management, increased approximately 1.0 percent compared to the same period in 2019. for the six months ended june 30, 2020, core property operating revenues, excluding deferrals, increased approximately 3.1 percent and core income from property operations, excluding deferrals and property management, increased approximately 3.2 percent compared to the same period in 2019. business update - covid-19 page 1 of this earnings release and supplemental financial information provides a business update regarding the covid-19 pandemic. about equity lifestyle properties we are a self-administered, self-managed real estate investment trust (“reit”) with headquarters in chicago. as of july 20, 2020, we own or have an interest in 413 quality properties in 33 states and british columbia consisting of 156,713 sites. for additional information, please contact our investor relations department at (800) 247-5279 or at investor_relations@equitylifestyle.com. conference call a live webcast of our conference call discussing these results will take place tomorrow, tuesday, july 21, 2020, at 10:00 a.m. central time. please visit the investor relations section at www.equitylifestyleproperties.com for the link. a replay of the webcast will be available for two weeks at this site. forward-looking statements in addition to historical information, this press release includes certain “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. when used, words such as "anticipate," "expect," "believe," "project," "intend," "may be" and "will be" and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to: our ability to control costs and real estate market conditions, our ability to retain customers, the actual use of sites by customers and our success in acquiring new customers at our properties (including those that we may acquire); our ability to maintain historical or increase future rental rates and occupancy with respect to properties currently owned or that we may acquire; our ability to attract and retain customers entering, renewing and upgrading membership subscriptions; our assumptions about rental and home sales markets; our ability to manage counterparty risk; our ability to renew our insurance policies at existing rates and on consistent terms; in the age-qualified properties, home sales results could be impacted by the ability of potential home buyers to sell their existing residences as well as by financial, credit and capital markets volatility; results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; impact of government intervention to stabilize site-built single-family housing and not manufactured housing; effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions; the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto; unanticipated costs or unforeseen liabilities associated with recent acquisitions; ability to obtain financing or refinance existing debt on favorable terms or at all; the effect of interest rates; the effect from any breach of our, or any of our vendors', data management systems; the dilutive effects of issuing additional securities; the outcome of pending or future lawsuits or actions brought against us, including those disclosed in our filings with the securities and exchange commission; and other risks indicated from time to time in our filings with the securities and exchange commission. in addition, these forward-looking statements are subject to 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. for further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the securities and exchange commission, including the “risk factors” section in our most recent annual report on form 10-k and subsequent quarterly reports on form 10-q. these forward-looking statements are based on management's present expectations and beliefs about future events. as with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. we are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise. supplemental financial information covid-19 update operating business update below is an update on our operations pertaining to the covid-19 pandemic: all properties are open subject to state and local guidelines. some of the amenities at certain properties remain closed at this time due to state and local guidelines. all rv properties are currently open to transient customers, although during the second quarter several properties were limited by local orders to restrict transient reservations. some of the amenities at certain properties remain closed at this time due to state and local guidelines. all rv properties are currently open to transient customers, although during the second quarter several properties were limited by local orders to restrict transient reservations. rent assistance and relief: during the second quarter we approved approximately 540 resident applications for deferral of rent due to covid related financial hardship. the total amount deferred was approximately $0.5 million. based on declining monthly deferral applications, we discontinued offering deferrals in july. in early july, we provided approximately $0.9 million of payment credits to annual residents at 15 northern rv properties that experienced significantly delayed openings. most of these properties were not open prior to the memorial day holiday weekend. we have continued to waive late payment fees for july. during the second quarter we approved approximately 540 resident applications for deferral of rent due to covid related financial hardship. the total amount deferred was approximately $0.5 million. based on declining monthly deferral applications, we discontinued offering deferrals in july. in early july, we provided approximately $0.9 million of payment credits to annual residents at 15 northern rv properties that experienced significantly delayed openings. most of these properties were not open prior to the memorial day holiday weekend. we have continued to waive late payment fees for july. as of july 17, 2020 the total collection rate from our mh, rv annuals, and thousand trails customers for the quarter ended june 30, 2020 was 99%, consistent with our collection rate for the quarter ended june 30, 2019. collections for july 2020 as of the 17th of the month were consistent with the month-to-date collections for each month in the quarter ended june 30, 2020. investor information equity research coverage (1) bank of america securities bmo capital markets citi research jeffrey spector/ joshua dennerlein john kim michael bilerman/ nick joseph evercore isi green street advisors robert w. baird & company steve sakwa/ samir khanal john pawlowski rj milligan wells fargo securities todd stender ______________________ financial highlights (in millions, except common stock and op units outstanding and per share data (adjusted for stock split), unaudited) as of and for the three months ended jun 30, 2020 mar 31, 2020 dec 31, 2019 sept 30, 2019 jun 30, 2019 operating information total revenues $ 254.1 $ 280.5 $ 258.6 $ 271.2 $ 248.4 net income $ 48.9 $ 70.7 $ 58.1 $ 68.2 $ 49.1 net income available for common stockholders $ 46.2 $ 66.9 $ 55.0 $ 64.5 $ 46.4 adjusted ebitdare (1) $ 116.2 $ 138.2 $ 124.5 $ 127.0 $ 117.7 ffo available for common stock and op unit holders (1)(2) $ 89.5 $ 112.3 $ 99.5 $ 108.6 $ 89.8 normalized ffo available for common stock and op unit holders (1)(2) $ 90.9 $ 113.3 $ 99.5 $ 102.7 $ 91.9 funds available for distribution ("fad") for common stock and op unit holders (1)(2) $ 75.6 $ 101.8 $ 84.6 $ 88.4 $ 79.1 common stock and op units outstanding (in thousands) and per share data common stock and op units, end of the period 192,636 192,627 192,581 192,574 192,562 weighted average common stock and op units outstanding - fully diluted 192,542 192,564 192,458 192,400 191,860 net income per common share - fully diluted (3) $ 0.25 $ 0.37 $ 0.30 $ 0.35 $ 0.26 ffo per common share and op unit - fully diluted $ 0.47 $ 0.58 $ 0.52 $ 0.56 $ 0.47 normalized ffo per common share and op unit - fully diluted $ 0.47 $ 0.59 $ 0.52 $ 0.53 $ 0.48 dividends per common share $ 0.3425 $ 0.3425 $ 0.3063 $ 0.3063 $ 0.3063 balance sheet total assets $ 4,268 $ 4,212 $ 4,151 $ 4,137 $ 4,014 total liabilities $ 2,961 $ 2,892 $ 2,829 $ 2,818 $ 2,707 market capitalization total debt (4) $ 2,522 $ 2,486 $ 2,432 $ 2,406 $ 2,300 total market capitalization (5) $ 14,558 $ 13,558 $ 15,988 $ 15,270 $ 13,983 ratios total debt / total market capitalization 17.3 % 18.3 % 15.2 % 15.8 % 16.4 % total debt / adjusted ebitdare (6) 5.0 4.9 4.8 4.9 4.7 interest coverage (7) 4.9 4.9 4.9 4.8 4.7 fixed charges(8) 4.9 4.9 4.8 4.7 4.6 ______________________ consolidated balance sheets (in thousands, except share and per share data) june 30, 2020 december 31, 2019 (unaudited) assets investment in real estate: land $ 1,528,929 $ 1,525,407 land improvements 3,396,132 3,336,070 buildings and other depreciable property 903,249 881,572 5,828,310 5,743,049 accumulated depreciation (1,849,799) (1,776,224) net investment in real estate 3,978,511 3,966,825 cash and restricted cash 119,993 28,860 notes receivable, net 35,304 37,558 investment in unconsolidated joint ventures 19,864 20,074 deferred commission expense 41,622 41,149 other assets, net 72,880 56,809 total assets $ 4,268,174 $ 4,151,275 liabilities and equity liabilities: mortgage notes payable, net $ 2,247,790 $ 2,049,509 term loan, net 199,111 198,949 unsecured line of credit 50,000 160,000 accounts payable and other liabilities 142,269 124,665 deferred revenue – upfront payments from membership upgrade sales 132,023 126,814 deferred revenue – annual membership subscriptions 12,655 10,599 accrued interest payable 8,485 8,639 rents and other customer payments received in advance and security deposits 102,480 91,234 distributions payable 65,978 58,978 total liabilities 2,960,791 2,829,387 equity: preferred stock, $0.01 par value, 10,000,000 shares authorized as of june 30, 2020 and december 31, 2019; none issued and outstanding. — — common stock, $0.01 par value, 600,000,000 and 400,000,000 shares authorized as of june 30, 2020 and december 31, 2019, respectively; 182,153,754 and 182,089,595 shares issued and outstanding as of june 30, 2020 and december 31, 2019, respectively. 1,812 1,812 paid-in capital 1,405,764 1,402,696 distributions in excess of accumulated earnings (169,903) (154,318) accumulated other comprehensive income (loss) (1,161) (380) total stockholders’ equity 1,236,512 1,249,810 non-controlling interests – common op units 70,871 72,078 total equity 1,307,383 1,321,888 total liabilities and equity $ 4,268,174 $ 4,151,275 consolidated income statements (in thousands, unaudited) quarters ended june 30, six months ended june 30, 2020 2019 2020 2019 revenues: rental income $ 217,963 $ 212,007 $ 457,309 $ 435,573 annual membership subscriptions 12,961 12,586 26,034 24,902 membership upgrade sales current period, gross 5,048 5,041 9,891 8,879 membership upgrade sales upfront payments, deferred, net (2,666) (2,912) (5,208) (4,683) other income 9,680 10,265 20,739 20,635 gross revenues from home sales 8,866 7,825 20,175 14,300 brokered resale and ancillary services revenues, net (575) 872 363 2,431 interest income 1,791 1,803 3,598 3,554 income from other investments, net 1,022 879 1,665 1,865 total revenues 254,090 248,366 534,566 507,456 expenses: property operating and maintenance 85,265 84,868 168,899 162,816 real estate taxes 16,668 15,107 33,509 30,430 sales and marketing, gross 4,276 4,214 8,254 7,623 membership sales commissions, deferred, net (481) (389) (697) (580) property management 14,813 14,385 29,817 28,070 depreciation and amortization 38,332 37,776 77,356 75,753 cost of home sales 8,850 8,164 20,761 14,796 home selling expenses 1,081 1,102 2,294 2,185 general and administrative 10,609 9,225 21,464 19,134 other expenses 639 540 1,227 967 early debt retirement — 1,491 1,054 1,491 interest and related amortization 26,249 26,024 52,322 52,417 total expenses 206,301 202,507 416,260 395,102 gain on sale of real estate, net — — — 52,507 income before equity in income of unconsolidated joint ventures 47,789 45,859 118,306 164,861 equity in income of unconsolidated joint ventures 1,064 3,226 1,271 4,759 consolidated net income 48,853 49,085 119,577 169,620 income allocated to non-controlling interests – common op units (2,658) (2,676) (6,507) (9,902) redeemable perpetual preferred stock dividends (8) (8) (8) (8) net income available for common stockholders $ 46,187 $ 46,401 $ 113,062 $ 159,710 non-gaap financial measures this document contains certain non-gaap measures used by management that we believe are helpful in understanding our business. we believe investors should review these non-gaap measures along with gaap net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity reit’s operating performance. our definitions and calculations of these non-gaap financial and operating measures and other terms may differ from the definitions and methodologies used by other reits and, accordingly, may not be comparable. these non-gaap financial and operating measures do not represent cash generated from operating activities in accordance with gaap, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with gaap, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with gaap, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. for definitions and reconciliations of non-gaap measures to our financial statements as prepared under gaap, refer to both reconciliation of net income to non-gaap financial measures on page 8 and non-gaap financial measures definitions and reconciliations on pages 17 - 19. selected non-gaap financial measures (in millions, except per share data, unaudited) quarter ended june 30, 2020 income from property operations, excluding deferrals and property management - 2020 core (1) $ 136.4 income from property operations, excluding deferrals and property management - non-core (1) 3.0 property management and general and administrative (25.4) other income and expenses 1.7 interest and related amortization (26.2) ffo available for common stock and op unit holders (2) 89.5 covid-19 expenses (3) 1.4 normalized ffo available for common stock and op unit holders (2) $ 90.9 ffo per common share and op unit - fully diluted $0.47 normalized ffo per common share and op unit - fully diluted $0.47 normalized ffo available for common stock and op unit holders (2) $ 90.9 non-revenue producing improvements to real estate (15.3) fad for common stock and op unit holders (2) $ 75.6 weighted average common stock and op units - fully diluted 192.5 ______________________ reconciliation of net income to non-gaap financial measures (in thousands, except per share data (adjusted for stock split), unaudited) quarters ended june 30, six months ended june 30, 2020 2019 2020 2019 net income available for common stockholders $ 46,187 $ 46,401 $ 113,062 $ 159,710 income allocated to non-controlling interests – common op units 2,658 2,676 6,507 9,902 membership upgrade sales upfront payments, deferred, net 2,666 2,912 5,208 4,683 membership sales commissions, deferred, net (481) (389) (697) (580) depreciation and amortization 38,332 37,776 77,356 75,753 depreciation on unconsolidated joint ventures 184 441 361 873 gain on sale of real estate, net — — — (52,507) ffo available for common stock and op unit holders 89,546 89,817 201,797 197,834 early debt retirement — 2,085 1,054 2,085 insurance proceeds due to catastrophic weather event (1) — — — (349) covid-19 expenses (2) 1,407 — 1,446 — normalized ffo available for common stock and op unit holders 90,953 91,902 204,297 199,570 non-revenue producing improvements to real estate (15,330) (12,849) (26,796) (22,913) fad for common stock and op unit holders $ 75,623 $ 79,053 $ 177,501 $ 176,657 net income available per common share - basic $ 0.25 $ 0.26 $ 0.62 $ 0.89 net income available per common share - fully diluted (3) $ 0.25 $ 0.26 $ 0.62 $ 0.89 ffo per common share and op unit - basic $ 0.47 $ 0.47 $ 1.05 $ 1.03 ffo per common share and op unit - fully diluted $ 0.47 $ 0.47 $ 1.05 $ 1.03 normalized ffo per common share and op unit - basic $ 0.47 $ 0.48 $ 1.06 $ 1.04 normalized ffo per common share and op unit - fully diluted $ 0.47 $ 0.48 $ 1.06 $ 1.04 average common stock - basic 181,833 180,312 181,781 179,938 average common stock and op units - basic 192,315 191,598 192,267 191,320 average common stock and op units - fully diluted 192,542 191,860 192,538 191,546 ______________________ consolidated income from property operations (1) (in millions, except home site and occupancy figures, unaudited) quarters ended june 30, six months ended june 30, 2020 2019 2020 2019 mh base rental income (2) $ 142.6 $ 136.2 $ 284.0 $ 271.5 rental home income 4.1 3.6 8.1 7.2 rv and marina base rental income (3) 60.1 61.0 141.2 133.1 annual membership subscriptions 13.0 12.6 26.0 24.9 membership upgrade sales current period, gross 5.0 5.0 9.9 8.9 utility and other income (4) 22.2 22.3 47.5 46.0 property operating revenues 247.0 240.7 516.7 491.6 property operating, maintenance and real estate taxes (5) (6) 102.1 99.5 202.5 192.4 rental home operating and maintenance 1.3 1.3 2.6 2.5 sales and marketing, gross 4.2 4.2 8.3 7.6 property operating expenses 107.6 105.0 213.4 202.5 income from property operations, excluding deferrals and property management (1) (6) $ 139.4 $ 135.7 $ 303.3 $ 289.1 manufactured home site figures and occupancy averages: total sites 72,362 71,988 72,307 72,178 occupied sites 68,613 68,316 68,554 68,453 occupancy % 94.8 % 94.9 % 94.8 % 94.8 % monthly base rent per site $ 693 $ 665 $ 690 $ 661 rv and marina base rental income: annual $ 47.1 $ 40.8 $ 94.4 $ 79.8 seasonal 5.2 5.7 27.8 26.8 transient 7.8 14.5 19.0 26.5 total rv and marina base rental income $ 60.1 $ 61.0 $ 141.2 $ 133.1 ______________________ core income from property operations (1) (in millions, except home site and occupancy figures, unaudited) quarters ended june 30, six months ended june 30, 2020 2019 change (2) 2020 2019 change (2) mh base rental income (3) $ 142.5 $ 136.2 4.6 % $ 283.9 $ 271.1 4.8 % rental home income 4.1 3.6 12.3 % 8.1 7.1 13.2 % rv base rental income (4) 54.3 59.6 (8.8) % 130.0 131.7 (1.4) % annual membership subscriptions 13.0 12.6 3.0 % 26.0 24.9 4.5 % membership upgrade sales current period, gross 5.0 5.0 0.1 % 9.9 8.9 11.4 % utility and other income (5) 21.8 22.2 (1.9) % 46.6 45.9 1.7 % property operating revenues 240.7 239.2 0.6 % 504.5 489.6 3.1 % property operating, maintenance and real estate taxes (6) (7) 98.8 98.7 — % 196.2 191.3 2.6 % rental home operating and maintenance 1.3 1.3 (3.8) % 2.6 2.5 4.4 % sales and marketing, gross 4.2 4.2 1.5 % 8.2 7.6 8.3 % property operating expenses 104.3 104.2 0.1 % 207.0 201.4 2.8 % income from property operations, excluding deferrals and property management (1) (7) $ 136.4 $ 135.0 1.0 % $ 297.5 $ 288.2 3.2 % occupied sites (8) 68,679 68,386 core manufactured home site figures and occupancy averages: total sites 72,087 71,820 72,033 71,787 occupied sites 68,599 68,276 68,543 68,224 occupancy % 95.2 % 95.1 % 95.2 % 95.0 % monthly base rent per site $ 693 $ 665 $ 690 $ 662 core rv base rental income: annual $ 41.9 $ 40.0 4.7 % $ 83.9 $ 79.0 6.1 % seasonal 5.1 5.7 (8.9) % 27.7 26.8 3.7 % transient 7.3 13.9 (47.7) % 18.4 25.9 (29.2) % total rv base rental income $ 54.3 $ 59.6 (8.8) % $ 130.0 $ 131.7 (1.4) % ______________________ non-core income from property operations (1) (in millions, unaudited) quarter ended six months ended june 30, 2020 june 30, 2020 mh base rental income $ 0.1 $ 0.1 rental home income — — rv and marina base rental income 5.8 11.2 utility and other income 0.4 0.9 property operating revenues 6.3 12.2 property operating expenses (2) 3.3 6.4 income from property operations, excluding deferrals and property management (1) $ 3.0 $ 5.8 ______________________ income from rental home operations (in millions, except occupied rentals, unaudited) quarters ended june 30, six months ended june 30, 2020 2019 2020 2019 manufactured homes: rental operations revenues (1) $ 11.9 $ 11.4 $ 23.6 $ 22.6 rental operations expense 1.3 1.3 2.6 2.5 income from rental operations 10.6 10.1 21.0 20.1 depreciation on rental homes (2) 2.7 2.6 5.5 5.0 income from rental operations, net of depreciation $ 7.9 $ 7.5 $ 15.5 $ 15.1 occupied rentals: (3) new 3,291 3,011 used 632 1,008 total occupied rental sites 3,923 4,019 as of june 30, 2020 as of june 30, 2019 cost basis in rental homes: (4) gross net of depreciation gross net of depreciation new $ 233.8 $ 196.2 $ 195.8 $ 171.9 used 17.5 7.5 25.1 11.8 total rental homes $ 251.3 $ 203.7 $ 220.9 $ 183.7 ______________________ total sites and home sales (in thousands, except sites and home sale volumes, unaudited) summary of total sites as of june 30, 2020 sites (1) mh sites 72,300 rv sites: annual 29,500 seasonal 10,200 transient 14,200 marina slips 2,300 membership (2) 24,600 joint ventures (3) 3,600 total 156,700 home sales - select data quarters ended june 30, six months ended june 30, 2020 2019 2020 2019 total new home sales volume (4) 133 117 288 208 new home sales volume - echo joint venture 11 18 23 31 new home sales gross revenues (4) $ 7,552 $ 6,064 $ 16,934 $ 10,628 total used home sales volume 136 210 330 429 used home sales gross revenues $ 1,314 $ 1,761 $ 3,241 $ 3,672 brokered home resales volume 111 237 287 405 brokered home resale revenues, net $ 178 $ 379 $ 439 $ 657 ______________________ memberships - select data (unaudited) 2016 2017 2018 2019 2020 q2 ytd (1) member count (2) 104,728 106,456 111,094 115,680 117,727 thousand trails camping pass (ttc) origination 29,576 31,618 37,528 41,484 19,693 ttc sales 12,856 14,128 17,194 19,267 9,022 rv dealer ttc activations 16,720 17,490 20,334 22,217 10,671 number of annuals (3) 5,756 5,843 5,888 5,938 5,744 number of upgrade sales (4) 2,477 2,514 2,500 2,919 1,563 (in thousands, unaudited) annual membership subscriptions $ 45,036 $ 45,798 $ 47,778 $ 51,015 $ 26,034 rv base rental income from annuals $ 15,413 $ 16,841 $ 18,363 $ 19,634 $ 10,025 rv base rental income from seasonals/transients $ 17,344 $ 18,231 $ 19,840 $ 20,181 $ 5,714 membership upgrade sales current period, gross $ 12,312 $ 14,130 $ 15,191 $ 19,111 $ 9,891 utility and other income $ 2,442 $ 2,254 $ 2,410 $ 2,422 $ 944 ______________________ market capitalization (in millions, except share and op unit data, unaudited) capital structure as of june 30, 2020 total common stock/units % of total common stock/units total % of total % of total market capitalization secured debt $ 2,272 90.1 % unsecured debt 250 9.9 % total debt (1) $ 2,522 100.0 % 17.3 % common stock 182,153,754 94.6 % op units 10,481,994 5.4 % total common stock and op units 192,635,748 100.0 % common stock price at june 30, 2020 $ 62.48 fair value of common stock and op units $ 12,036 100.0 % total equity $ 12,036 100.0 % 82.7 % total market capitalization $ 14,558 100.0 % ______________________ debt maturity schedule debt maturity schedule as of june 30, 2020 (in thousands, unaudited) year secured debt weighted average interest rate unsecured debt weighted average interest rate total debt % of total debt weighted average interest rate 2020 $ — — % $ — — % $ — — % — % 2021 167,155 5.01 % — — % 167,155 6.76 % 5.01 % 2022 143,774 4.62 % — — % 143,774 5.82 % 4.62 % 2023 101,200 5.02 % 200,000 3.05 % 301,200 12.19 % 3.71 % 2024 10,537 5.49 % — — % 10,537 0.43 % 5.49 % 2025 99,658 3.45 % — — % 99,658 4.03 % 3.45 % 2026 — — % — — % — — % — % 2027 — — % — — % — — % — % 2028 219,466 4.19 % — — % 219,466 8.88 % 4.19 % 2029 — — % — — % — — % — % thereafter 1,529,589 3.96 % — — % 1,529,589 61.89 % 3.96 % total $ 2,271,379 4.13 % $ 200,000 3.05 % $ 2,471,379 100.0 % 4.05 % unsecured line of credit (1) — 50,000 50,000 note premiums 849 — 849 total debt 2,272,228 250,000 2,522,228 deferred financing costs (24,438) (889) (25,327) total debt, net $ 2,247,790 $ 249,111 $ 2,496,901 4.23 % (2) average years to maturity 12.5 2.6 11.5 ______________________ non-gaap financial measures definitions and reconciliations funds from operations (ffo). we define ffo as net income, computed in accordance with gaap, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of ffo of unconsolidated joint ventures. adjustments for unconsolidated joint ventures are calculated to reflect ffo on the same basis. we compute ffo in accordance with our interpretation of standards established by the national association of real estate investment trusts (“nareit”), which may not be comparable to ffo reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently than we do. we receive non-refundable upfront payments from membership upgrade contracts. in accordance with gaap, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated membership upgrade contract term. although the nareit definition of ffo does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of ffo. we believe ffo, as defined by the board of governors of nareit, is generally a measure of performance for an equity reit. while ffo is a relevant and widely used measure of operating performance for equity reits, it does not represent cash flow from operations or net income as defined by gaap, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance. normalized funds from operations (normalized ffo). we define normalized ffo as ffo excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items. normalized ffo presented herein is not necessarily comparable to normalized ffo presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount. funds available for distribution (fad). we define fad as normalized ffo less non-revenue producing capital expenditures. we believe that ffo, normalized ffo and fad are helpful to investors as supplemental measures of the performance of an equity reit. we believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, ffo can facilitate comparisons of operating performance between periods and among other equity reits. we further believe that normalized ffo provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our operations. for example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from ffo allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. in some cases, we provide information about identified non-cash components of ffo and normalized ffo because it allows investors, analysts and our management to assess the impact of those items. income from property operations, excluding deferrals and property management. we define income from property operations, excluding deferrals and property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, sales and marketing expenses, excluding property management and the gaap deferral of membership upgrade sales upfront payments and membership sales commissions, net. for comparative purposes, we present bad debt expense within property operating, maintenance and real estate taxes in the current and prior periods. we believe that this non-gaap financial measure is helpful to investors and analysts as a measure of the operating results of our properties. the following table reconciles net income available for common stockholders to income from property operations: quarters ended june 30, six months ended june 30, (amounts in thousands) 2020 2019 2020 2019 net income available for common stockholders $ 46,187 $ 46,401 $ 113,062 $ 159,710 redeemable perpetual preferred stock dividends 8 8 8 8 income allocated to non-controlling interests – common op units 2,658 2,676 6,507 9,902 equity in income of unconsolidated joint ventures (1,064) (3,226) (1,271) (4,759) income before equity in income of unconsolidated joint ventures 47,789 45,859 118,306 164,861 gain on sale of real estate, net — — — (52,507) membership upgrade sales upfront payments, deferred, net 2,666 2,912 5,208 4,683 gross revenues from home sales (8,866) (7,825) (20,175) (14,300) brokered resale and ancillary services revenues, net 575 (872) (363) (2,431) interest income (1,791) (1,803) (3,598) (3,554) income from other investments, net (1,022) (879) (1,665) (1,865) membership sales commissions, deferred, net (481) (389) (697) (580) property management 14,813 14,385 29,817 28,070 depreciation and amortization 38,332 37,776 77,356 75,753 cost of home sales 8,850 8,164 20,761 14,796 home selling expenses 1,081 1,102 2,294 2,185 general and administrative 10,609 9,225 21,464 19,134 other expenses 639 540 1,227 967 early debt retirement — 1,491 1,054 1,491 interest and related amortization 26,249 26,024 52,322 52,417 income from property operations, excluding deferrals and property management 139,443 135,710 303,311 289,120 membership upgrade sales upfront payments, and membership sales commissions, deferred, net (2,185) (2,523) (4,511) (4,103) property management (14,813) (14,385) (29,817) (28,070) income from property operations $ 122,445 $ 118,802 $ 268,983 $ 256,947 earnings before interest, tax, depreciation and amortization for real estate (ebitdare) and adjusted ebitdare. we define ebitdare as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, gains or losses from sales of properties, impairments charges, and adjustments to reflect our share of ebitdare of unconsolidated joint ventures. we compute ebitdare in accordance with our interpretation of the standards established by nareit, which may not be comparable to ebitdare reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently than we do. we receive non-refundable upfront payments from membership upgrade contracts. in accordance with gaap, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated customer life. although the nareit definition of ebitdare does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of ebitdare. we define adjusted ebitdare as ebitdare excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items. we believe that ebitdare and adjusted ebitdare may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity reit. the following table reconciles consolidated net income to ebitdare and adjusted ebitdare: quarters ended june 30, six months ended june 30, (amounts in thousands) 2020 2019 2020 2019 consolidated net income $ 48,853 $ 49,085 $ 119,577 $ 169,620 interest income (1,791) (1,803) (3,598) (3,554) membership upgrade sales upfront payments, deferred, net 2,666 2,912 5,208 4,683 membership sales commissions, deferred, net (481) (389) (697) (580) real estate depreciation and amortization 38,332 37,776 77,356 75,753 other depreciation and amortization 639 449 1,227 876 interest and related amortization 26,249 26,024 52,322 52,417 gain on sale of real estate, net — — — (52,507) adjustments to our share of ebitdare of unconsolidated joint ventures 279 1,598 542 2,599 ebitdare 114,746 115,652 251,937 249,307 early debt retirement — 2,085 1,054 2,085 insurance proceeds due to catastrophic weather event — — — (349) covid-19 expenses 1,407 — 1,446 — adjusted ebitdare $ 116,153 $ 117,737 $ 254,437 $ 251,043 core. the core properties include properties we owned and operated during all of 2019 and 2020. we believe core is a measure that is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations. non-core. the non-core properties include properties that were not owned and operated during all of 2019 and 2020. this includes, but is not limited to, four properties and the marinas acquired and five properties sold during 2019. income from rental operations, net of depreciation. we use income from rental operations, net of depreciation as an alternative measure to evaluate the operating results of our home rental program. income from rental operations, net of depreciation, represents income from rental operations less depreciation expense on rental homes. we believe this measure is meaningful for investors as it provides a complete picture of the home rental program operating results, including the impact of depreciation, which affects our home rental program investment decisions. non-revenue producing improvements. represents capital expenditures that do not directly result in increased revenue or expense savings and are primarily comprised of common area improvements, furniture and mechanical improvements. fixed charges. fixed charges consist of interest expense, amortization of note premiums and debt issuance costs.
