Els reports fourth 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 year ended december 31, 2019. 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 year ended december 31, 2019 for the quarter ended december 31, 2019, total revenues increased $15.1 million, or 6.2 percent, to $258.6 million compared to $243.5 million for the same period in 2018. for the quarter ended december 31, 2019, net income available for common stockholders increased $4.8 million, or $0.02 per common share, to $55.0 million, or $0.30 per common share, compared to $50.2 million, or $0.28 per common share, for the same period in 2018. for the year ended december 31, 2019, total revenues increased $50.6 million, or 5.1 percent, to $1,037.3 million compared to $986.7 million for the same period in 2018. for the year ended december 31, 2019, net income available for common stockholders increased $66.5 million, or $0.35 per common share, to $279.1 million, or $1.54 per common share, compared to $212.6 million, or $1.19 per common share, for the same period in 2018. non-gaap financial measures and portfolio performance for the quarter ended december 31, 2019, funds from operations (“ffo”) available for common stock and op unit holders increased $9.1 million, or $0.05 per common share, to $99.5 million, or $0.52 per common share, compared to $90.4 million, or $0.47 per common share, for the same period in 2018. for the year ended december 31, 2019, ffo available for common stock and op unit holders increased $34.0 million, or $0.15 per common share, to $406.0 million, or $2.11 per common share, compared to $372.0 million, or $1.96 per common share, for the same period in 2018. for the quarter ended december 31, 2019, normalized funds from operations (“normalized ffo”) available for common stock and op unit holders increased $7.2 million, or $0.04 per common share, to $99.5 million, or $0.52 per common share, compared to $92.3 million, or $0.48 per common share, for the same period in 2018. for the year ended december 31, 2019, normalized ffo available for common stock and op unit holders increased $33.9 million, or $0.15 per common share, to $401.8 million, or $2.09 per common share, compared to $367.9 million, or $1.94 per common share, for the same period in 2018. for the quarter ended december 31, 2019, property operating revenues, excluding deferrals, increased $16.5 million to $248.7 million compared to $232.2 million for the same period in 2018. for the year ended december 31, 2019, property operating revenues, excluding deferrals, increased $60.5 million to $996.5 million compared to $936.0 million for the same period in 2018. for the quarter ended december 31, 2019, income from property operations, excluding deferrals and property management, increased $8.2 million to $147.0 million compared to $138.8 million for the same period in 2018. for the year ended december 31, 2019, income from property operations, excluding deferrals and property management, increased $33.7 million to $581.4 million compared to $547.7 million for the same period in 2018. for the quarter ended december 31, 2019, core property operating revenues, excluding deferrals, increased approximately 5.3 percent and core income from property operations, excluding deferrals and property management, increased approximately 4.6 percent compared to the same period in 2018. for the year ended december 31, 2019, core property operating revenues, excluding deferrals, increased approximately 4.7 percent and core income from property operations, excluding deferrals and property management, increased approximately 5.0 percent compared to the same period in 2018. about equity lifestyle properties we are a self-administered, self-managed real estate investment trust (“reit”) with headquarters in chicago. as of january 27, 2020, we own or have an interest in 413 quality properties in 33 states and british columbia consisting of 156,513 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, january 28, 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 assumptions and guidance concerning 2020, including estimated net income, ffo and normalized ffo; 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. 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. 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 drew t. babin wells fargo securities todd stender ______________________ any opinions, estimates or forecasts regarding our performance made by these analysts or agencies do not represent our opinions, forecasts or predictions. we do not by reference to these firms imply our endorsement of or concurrence with such information, conclusions or recommendations. 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 dec 31, sept 30, jun 30, mar 31, dec 31, 2019 2019 2019 2019 2018 operating information total revenues $ 258.6 $ 271.2 $ 248.4 $ 259.1 $ 243.5 net income $ 58.1 $ 68.2 $ 49.1 $ 120.5 $ 53.4 net income available for common stockholders $ 55.0 $ 64.5 $ 46.4 $ 113.3 $ 50.2 adjusted ebitdare (1) $ 124.5 $ 127.0 $ 117.7 $ 133.3 $ 117.9 ffo available for common stock and op unit holders (1)(2) $ 99.5 $ 108.6 $ 89.8 $ 108.0 $ 90.4 normalized ffo available for common stock and op unit holders (1)(2) $ 99.5 $ 102.7 $ 91.9 $ 107.7 $ 92.3 funds available for distribution ("fad") for common stock and op unit holders (1)(2) $ 84.6 $ 88.4 $ 79.1 $ 97.6 $ 80.4 common stock and op units outstanding (in thousands) and per share data common stock and op units, end of the period 192,581 192,574 192,562 191,470 191,334 weighted average common stock and op units outstanding - fully diluted 192,458 192,400 191,860 191,248 191,154 net income per common share - fully diluted (3) $ 0.30 $ 0.35 $ 0.26 $ 0.63 $ 0.28 ffo per common share and op unit - fully diluted $ 0.52 $ 0.56 $ 0.47 $ 0.56 $ 0.47 normalized ffo per common share and op unit - fully diluted $ 0.52 $ 0.53 $ 0.48 $ 0.56 $ 0.48 dividends per common share $ 0.3063 $ 0.3063 $ 0.3063 $ 0.3063 $ 0.2750 balance sheet total assets $ 4,151 $ 4,137 $ 4,014 $ 4,009 $ 3,926 total liabilities $ 2,829 $ 2,818 $ 2,707 $ 2,752 $ 2,732 market capitalization total debt (4) $ 2,432 $ 2,406 $ 2,300 $ 2,372 $ 2,386 total market capitalization (5) $ 15,988 $ 15,270 $ 13,983 $ 13,315 $ 11,678 ratios total debt / total market capitalization 15.2 % 15.8 % 16.4 % 17.8 % 20.4 % total debt / adjusted ebitdare (6) 4.8 4.9 4.7 4.9 5.1 interest coverage (7) 4.9 4.8 4.7 4.6 4.5 fixed charges(8) 4.8 4.7 4.6 4.5 4.5 see non-gaap financial measures definitions and other terms at the end of the supplemental information for a definition of fixed charges. this ratio is calculated by dividing trailing twelve months adjusted ebitdare by the sum of fixed charges and preferred stock dividends, if any, during the same period. consolidated balance sheets (in thousands, except share and per share data (adjusted for stock split)) december 31, december 31, 2019 2018 (unaudited) assets investment in real estate: land $ 1,525,407 $ 1,408,832 land improvements 3,336,070 3,143,745 buildings and other depreciable property 881,572 720,900 5,743,049 5,273,477 accumulated depreciation (1,776,224 ) (1,631,888 ) net investment in real estate 3,966,825 3,641,589 cash and restricted cash 28,860 68,974 notes receivable, net 37,558 35,041 investment in unconsolidated joint ventures 20,074 57,755 deferred commission expense 41,149 40,308 other assets, net 56,809 46,227 assets held for sale, net — 35,914 total assets $ 4,151,275 $ 3,925,808 liabilities and equity liabilities: mortgage notes payable, net $ 2,049,509 $ 2,149,726 term loan, net 198,949 198,626 unsecured line of credit 160,000 — accounts payable and other liabilities 124,665 102,854 deferred revenue – upfront payments from membership upgrade sales 126,814 116,363 deferred revenue – annual membership subscriptions 10,599 10,055 accrued interest payable 8,639 8,759 rents and other customer payments received in advance and security deposits 91,234 81,114 distributions payable 58,978 52,617 liabilities related to assets held for sale — 12,350 total liabilities 2,829,387 2,732,464 equity: preferred stock, $0.01 par value, 10,000,000 shares authorized as of december 31, 2019 and december 31, 2018; none issued and outstanding. — — common stock, $0.01 par value, 400,000,000 and 200,000,000 shares authorized as of december 31, 2019 and december 31, 2018, respectively; 182,089,595 and 179,842,036 shares issued and outstanding as of december 31, 2019 and december 31, 2018, respectively. 1,812 1,792 paid-in capital 1,402,696 1,328,495 distributions in excess of accumulated earnings (154,318 ) (211,034 ) accumulated other comprehensive income (loss) (380 ) 2,299 total stockholders’ equity 1,249,810 1,121,552 non-controlling interests – common op units 72,078 71,792 total equity 1,321,888 1,193,344 total liabilities and equity $ 4,151,275 $ 3,925,808 consolidated income statements (in thousands, unaudited) quarters ended december 31, years ended december 31, 2019 2018 2019 2018 revenues: rental income $ 218,946 $ 203,864 $ 879,635 $ 821,114 annual membership subscriptions 12,963 12,162 51,015 47,778 membership upgrade sales current period, gross 4,502 3,222 19,111 15,191 membership upgrade sales upfront payments, deferred, net (2,238 ) (1,191 ) (10,451 ) (7,380 ) other income 11,165 12,944 43,063 51,935 gross revenues from home sales 11,917 9,311 34,655 36,064 brokered resale and ancillary services revenues, net (1,071 ) 204 3,493 3,584 interest income 1,822 1,867 7,207 7,525 income from other investments, net 634 1,068 9,528 10,842 total revenues 258,640 243,451 1,037,256 986,653 expenses: property operating and maintenance 79,939 75,438 333,520 319,839 real estate taxes 16,742 15,077 62,338 55,892 sales and marketing, gross 3,897 2,857 15,583 12,542 membership sales commissions, deferred, net (326 ) (69 ) (1,219 ) (813 ) property management 13,834 12,994 56,509 53,736 depreciation and amortization 39,325 35,510 152,110 137,209 cost of home sales 11,866 9,527 35,096 37,475 home selling expenses 1,183 946 4,401 4,095 general and administrative 7,835 11,161 35,679 37,684 other expenses 438 387 2,865 1,483 early debt retirement — 1,071 1,491 1,071 interest and related amortization 26,259 26,515 104,223 104,993 total expenses 200,992 191,414 802,596 765,206 gain on sale of real estate, net — — 52,507 — income before equity in income of unconsolidated joint ventures 57,648 52,037 287,167 221,447 equity in income of unconsolidated joint ventures 478 1,343 8,755 4,939 consolidated net income 58,126 53,380 295,922 226,386 income allocated to non-controlling interests – common op units (3,166 ) (3,206 ) (16,783 ) (13,774 ) redeemable perpetual preferred stock dividends (8 ) (8 ) (16 ) (16 ) net income available for common stockholders $ 54,952 $ 50,166 $ 279,123 $ 212,596 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 7 and non-gaap financial measures definitions and reconciliations on pages 18 - 20. selected non-gaap financial measures (in millions, except per share data (adjusted for stock split), unaudited) quarter ended december 31, 2019 income from property operations, excluding deferrals and property management - 2019 core (1) $ 139.5 income from property operations, excluding deferrals and property management - non-core (1) 7.5 property management and general and administrative (21.7 ) other income and expenses 0.5 interest and related amortization (26.3 ) normalized ffo and ffo available for common stock and op unit holders (2) $ 99.5 normalized ffo per common share and op unit - fully diluted $0.52 ffo per common share and op unit - fully diluted $0.52 normalized ffo available for common stock and op unit holders (2) $ 99.5 non-revenue producing improvements to real estate (2) (14.9 ) fad for common stock and op unit holders (2) $ 84.6 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 december 31, years ended december 31, 2019 2018 2019 2018 net income available for common stockholders $ 54,952 $ 50,166 $ 279,123 $ 212,596 income allocated to non-controlling interests – common op units 3,166 3,206 16,783 13,774 membership upgrade sales upfront payments, deferred, net 2,238 1,191 10,451 7,380 membership sales commissions, deferred, net (326 ) (69 ) (1,219 ) (813 ) depreciation and amortization 39,325 35,510 152,110 137,209 depreciation on unconsolidated joint ventures 176 426 1,223 1,816 gain on sale of real estate, net — — (52,507 ) — ffo available for common stock and op unit holders 99,531 90,430 405,964 371,962 early debt retirement — 1,071 2,085 1,071 insurance proceeds due to catastrophic weather event and other, net (1) — 800 (6,205 ) (5,125 ) normalized ffo available for common stock and op unit holders 99,531 92,301 401,844 367,908 non-revenue producing improvements to real estate (14,889 ) (11,864 ) (52,159 ) (44,829 ) fad for common stock and op unit holders $ 84,642 $ 80,437 $ 349,685 $ 323,079 net income available per common share - basic $ 0.30 $ 0.28 $ 1.54 $ 1.19 net income available per common share - fully diluted (2) $ 0.30 $ 0.28 $ 1.54 $ 1.19 ffo per common share and op unit - basic $ 0.52 $ 0.47 $ 2.12 $ 1.96 ffo per common share and op unit - fully diluted $ 0.52 $ 0.47 $ 2.11 $ 1.96 normalized ffo per common share and op unit - basic $ 0.52 $ 0.48 $ 2.10 $ 1.94 normalized ffo per common share and op unit - fully diluted $ 0.52 $ 0.48 $ 2.09 $ 1.94 average common stock - basic 181,664 179,140 180,805 177,928 average common stock and op units - basic 192,157 190,632 191,739 189,514 average common stock and op units - fully diluted 192,458 191,154 191,995 190,110 consolidated income from property operations (1) (in millions, except home site and occupancy figures, unaudited) quarters ended december 31, years ended december 31, 2019 2018 2019 2018 community base rental income (2) $ 138.5 $ 132.2 $ 547.6 $ 518.2 rental home income 3.9 3.7 14.9 14.3 resort and marina base rental income (3) 65.1 56.1 269.9 239.9 annual membership subscriptions 13.0 12.2 51.0 47.8 membership upgrade sales current period, gross 4.5 3.2 19.1 15.2 utility and other income (4) 23.7 24.8 94.0 100.6 property operating revenues 248.7 232.2 996.5 936.0 property operating, maintenance and real estate taxes (5) 96.3 88.6 394.0 368.9 rental home operating and maintenance 1.5 1.9 5.6 6.9 sales and marketing, gross 3.9 2.9 15.5 12.5 property operating expenses 101.7 93.4 415.1 388.3 income from property operations, excluding deferrals and property management (1) $ 147.0 $ 138.8 $ 581.4 $ 547.7 manufactured home site figures and occupancy averages: total sites 72,149 72,735 72,128 72,020 occupied sites 68,456 68,906 68,428 68,120 occupancy % 94.9 % 94.7 % 94.9 % 94.6 % monthly base rent per site $ 675 $ 639 $ 667 $ 634 resort and marina base rental income: annual $ 46.5 $ 38.9 $ 169.0 $ 148.1 seasonal 9.3 8.6 41.5 37.7 transient 9.3 8.6 59.4 54.1 total resort and marina base rental income $ 65.1 $ 56.1 $ 269.9 $ 239.9 ____________________ 1. includes bad debt expense for the periods presented. for the year ended december 31, 2018, expenses include debris removal and cleanup costs related to hurricane irma of $2.6 million. core income from property operations (1) (in millions, except home site and occupancy figures, unaudited) quarters ended december 31, years ended december 31, 2019 2018 change (2) 2019 2018 change (2) community base rental income (3) $ 134.7 $ 127.7 5.5 % $ 531.9 $ 505.3 5.3 % rental home income 3.9 3.4 13.9 % 14.8 13.1 12.8 % resort base rental income (4) 56.2 53.5 5.3 % 243.8 233.4 4.5 % annual membership subscriptions 13.0 12.2 6.5 % 51.0 47.8 6.7 % membership upgrade sales current period, gross 4.5 3.2 39.7 % 19.1 15.2 25.8 % utility and other income (5) 22.8 23.3 (2.4 )% 90.6 93.5 (3.2 )% property operating revenues 235.1 223.3 5.3 % 951.2 908.3 4.7 % property operating, maintenance and real estate taxes (6) (7) 90.2 85.3 5.8 % 372.9 358.4 4.1 % rental home operating and maintenance 1.5 1.8 (16.7 )% 5.6 6.5 (13.9 )% sales and marketing, gross 3.9 2.8 36.7 % 15.5 12.5 24.3 % property operating expenses 95.6 89.9 6.3 % 394.0 377.4 4.4 % income from property operations, excluding deferrals and property management (1) $ 139.5 $ 133.4 4.6 % $ 557.2 $ 530.9 5.0 % occupied sites (8) 66,712 66,311 core manufactured home site figures and occupancy averages: total sites 69,706 69,573 69,652 69,553 occupied sites 66,584 66,196 66,441 66,046 occupancy % 95.5 % 95.1 % 95.4 % 95.0 % monthly base rent per site $ 674 $ 643 $ 667 $ 638 resort base rental income: annual $ 39.7 $ 37.7 5.5 % $ 154.3 $ 145.7 6.0 % seasonal 8.7 8.2 6.6 % 37.7 36.3 4.0 % transient 7.8 7.6 2.4 % 51.8 51.4 0.8 % total resort base rental income $ 56.2 $ 53.5 5.3 % $ 243.8 $ 233.4 4.5 % non-core income from property operations (1) (in millions, unaudited) quarter ended year ended december 31, 2019 december 31, 2019 community base rental income $ 3.8 $ 15.7 rental home income — 0.1 resort and marina base rental income 8.9 26.1 utility and other income (2) 0.9 3.4 property operating revenues 13.6 45.3 property operating expenses (3) 6.1 21.1 income from property operations, excluding deferrals and property management (1) $ 7.5 $ 24.2 2. 3. income from rental home operations (in millions, except occupied rentals, unaudited) quarters ended december 31, years ended december 31, 2019 2018 2019 2018 manufactured homes: rental operations revenues (1) $ 11.7 $ 11.0 $ 45.9 $ 44.0 rental operations expense 1.5 1.8 5.6 6.5 income from rental operations 10.2 9.2 40.3 37.5 depreciation on rental homes (2) 2.8 2.4 10.4 9.3 income from rental operations, net of depreciation $ 7.4 $ 6.8 $ 29.9 $ 28.2 occupied rentals: (3) new 3,175 2,728 used 791 1,224 total occupied rental sites 3,966 3,952 as of december 31, 2019 as of december 31, 2018 cost basis in rental homes: (4) gross net of depreciation gross net of depreciation new $ 226.0 $ 191.0 $ 158.6 $ 136.5 used 20.9 9.0 29.5 14.5 total rental homes $ 246.9 $ 200.0 $ 188.1 $ 151.0 total sites and home sales (in thousands, except sites and home sale volumes, unaudited) summary of total sites as of december 31, 2019 sites community sites 72,100 resort sites: annuals 29,600 seasonal 10,200 transient 14,100 marina slips 2,300 membership (1) 24,600 joint ventures (2) 3,600 total 156,500 home sales - select data quarters ended december 31, years ended december 31, 2019 2018 2019 2018 total new home sales volume (3) 160 139 496 556 new home sales volume - echo joint venture 15 26 65 100 new home sales gross revenues (3) $ 9,942 $ 7,190 $ 27,434 $ 27,833 total used home sales volume 200 249 827 1,091 used home sales gross revenues $ 1,975 $ 2,121 $ 7,221 $ 8,231 brokered home resales volume 193 175 868 852 brokered home resale revenues, net $ 295 $ 281 $ 1,372 $ 1,290 2020 guidance - selected financial data (1) our guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. factors impacting 2020 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) our ability to integrate and operate recent acquisitions in accordance with our estimates; (viii) completion of pending transactions in their entirety and on assumed schedule; (ix) ongoing legal matters and related fees; and (x) costs to restore property operations and potential revenue losses following storms or other unplanned events. quarter ending year ending march 31, 2020 december 31, 2020 income from property operations, excluding deferrals and property management - core (2) $ 161.9 $ 606.9 income from property operations - non-core (3) 2.7 11.9 property management and general and administrative (25.2 ) (96.0 ) other income and expenses 2.2 10.2 interest and related amortization (26.8 ) (106.3 ) normalized ffo and ffo available for common stock and op unit holders 114.8 426.7 depreciation and amortization (38.7 ) (151.5 ) deferral of membership upgrade sales upfront payments and membership sales commission, net (1.8 ) (9.9 ) income allocated to non-controlling interest-common op units (4.0 ) (14.4 ) net income available for common stockholders $ 70.3 $ 250.9 net income per common share - fully diluted (4) $0.37 - $0.41 $1.35 - $1.41 ffo per common share and op unit - fully diluted $0.58 - $0.62 $2.19 - $2.25 normalized ffo per common share and op unit - fully diluted $0.58 - $0.62 $2.19 - $2.25 weighted average common stock outstanding - fully diluted 192.6 192.7 2020 core guidance assumptions (1) quarter ended first quarter 2020 year ended 2020 march 31, 2019 growth factors (2) december 31, 2019 growth factors (2) community base rental income $ 134.8 4.9 % $ 547.2 4.4 % rental home income 3.5 12.4 % 14.8 3.9 % resort base rental income (3) 72.2 6.0 % 260.3 5.0 % annual membership subscriptions 12.3 4.7 % 51.0 4.4 % membership upgrade sales current period, gross 3.8 8.3 % 19.1 6.5 % utility and other income 23.7 4.8 % 92.8 2.4 % property operating revenues 250.3 5.4 % 985.2 4.4 % property operating, maintenance and real estate taxes (4) 92.6 4.7 % 388.5 2.9 % rental home operating and maintenance 1.2 (0.5 )% 5.6 1.9 % sales and marketing, gross 3.4 9.8 % 15.6 4.7 % property operating expenses 97.2 4.9 % 409.7 2.9 % income from property operations, excluding deferrals and property management $ 153.1 5.7 % $ 575.5 5.5 % resort base rental income: annual $ 39.1 6.6 % $ 161.4 5.5 % seasonal 21.1 6.8 % 41.3 6.0 % transient 12.0 2.8 % 57.6 3.0 % total resort base rental income $ 72.2 6.0 % $ 260.3 5.0 % 2020 non-core guidance assumptions (1) (in millions, unaudited) quarter ending year ending march 31, 2020 december 31, 2020 community base rental income $ — $ 0.1 rental home income — — resort and marina base rental income 5.4 23.7 utility and other income 0.5 2.4 property operating revenues 5.9 26.2 property operating expenses (4) 3.2 14.3 income from property operations, excluding deferrals and property management $ 2.7 $ 11.9 includes bad debt expense for the periods presented. memberships - select data 2016 2017 2018 2019 2020 (1) member count (2) 104,728 106,456 111,094 115,680 120,000 thousand trails camping pass (ttc) origination 29,576 31,618 37,528 41,484 42,700 ttc sales 12,856 14,128 17,194 19,267 20,300 rv dealer ttc activations 16,720 17,490 20,334 22,217 22,400 number of annuals (3) 5,756 5,843 5,888 5,938 6,100 number of upgrade sales (4) 2,477 2,514 2,500 2,919 3,200 (in thousands, unaudited) annual membership subscriptions $ 45,036 $ 45,798 $ 47,778 $ 51,015 $ 53,200 resort base rental income from annuals $ 15,413 $ 16,841 $ 18,363 $ 19,634 $ 21,200 resort base rental income from seasonals/transients $ 17,344 $ 18,231 $ 19,840 $ 20,181 $ 21,800 upgrade contract initiations (5) $ 12,312 $ 14,130 $ 15,191 $ 19,111 $ 20,350 utility and other income $ 2,442 $ 2,254 $ 2,410 $ 2,422 $ 2,000 ______________________ 1. guidance estimate. each line item represents the mid-point of a range of possible outcomes and reflects management’s best estimate of the most likely outcome. actual figures could vary materially from amounts presented above if any of our assumptions is incorrect. 2. members have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days. 3. members who rent a specific site for an entire year in connection with their membership subscriptions. 4. existing members who have upgraded agreements are eligible for enhanced benefits, including but not limited to longer stays, the ability to make earlier reservations, potential discounts on rental units, and potential access to additional properties. upgrades require a non-refundable upfront payment. 5. revenues associated with membership upgrades are included in membership upgrade sales current period, gross on our consolidated income statements on page 4. market capitalization (in millions, except share and op unit data, unaudited) capital structure as of december 31, 2019 total % of total % of total common common market stock/units stock/units total % of total capitalization secured debt $ 2,072 85.2 % unsecured debt 360 14.8 % total debt (1) $ 2,432 100.0 % 15.2 % common stock 182,089,595 94.6 % op units 10,491,222 5.4 % total common stock and op units 192,580,817 100.0 % common stock price at december 31, 2019 $ 70.39 fair value of common stock and op units $ 13,556 100.0 % total equity $ 13,556 100.0 % 84.8 % total market capitalization $ 15,988 100.0 % excludes deferred financing costs of approximately $24.0 million debt maturity schedule debt maturity schedule as of december 31, 2019 (in thousands, unaudited) weighted weighted weighted average average average secured interest unsecured interest % of total interest year debt rate debt rate total debt debt rate 2020 $ 48,294 5.18 % $ — — % $ 48,294 2.13 % 5.18 % 2021 168,924 5.01 % — — % 168,924 7.44 % 5.01 % 2022 146,002 4.62 % — — % 146,002 6.43 % 4.62 % 2023 102,776 5.04 % 200,000 3.05 % 302,776 13.33 % 3.73 % 2024 10,634 5.49 % — — % 10,634 0.47 % 5.49 % 2025 100,879 3.45 % — — % 100,879 4.44 % 3.45 % 2026 — — % — — % — — % — % 2027 — — % — — % — — % — % 2028 221,748 4.19 % — — % 221,748 9.76 % 4.19 % 2029 — — % — — % — — % — % thereafter 1,272,049 4.24 % — — % 1,272,049 56.01 % 4.24 % total $ 2,071,306 4.35 % $ 200,000 3.05 % $ 2,271,306 100.0 % 4.24 % unsecured line of credit (1) — 160,000 160,000 note premiums 1,110 — 1,110 total debt 2,072,416 360,000 2,432,416 deferred financing costs (22,907 ) (1,051 ) (23,958 ) total debt, net $ 2,049,509 $ 358,949 $ 2,408,458 4.37 %(2) average years to maturity 13.1 2.7 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 customer life. 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 the following non-operating income and expense items: a) gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and b) 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 manufactured home and rv communities. the following table reconciles net income available for common stockholders to income from property operations: quarters ended december 31, years ended december 31, (amounts in thousands) 2019 2018 2019 2018 net income available for common stockholders $ 54,952 $ 50,166 $ 279,123 $ 212,596 redeemable perpetual preferred stock dividends 8 8 16 16 income allocated to non-controlling interests – common op units 3,166 3,206 16,783 13,774 equity in income of unconsolidated joint ventures (478 ) (1,343 ) (8,755 ) (4,939 ) income before equity in income of unconsolidated joint ventures 57,648 52,037 287,167 221,447 gain on sale of real estate, net — — (52,507 ) — membership upgrade sales upfront payments, deferred, net 2,238 1,191 10,451 7,380 gross revenues from home sales (11,917 ) (9,311 ) (34,655 ) (36,064 ) brokered resale and ancillary services revenues, net 1,071 (204 ) (3,493 ) (3,584 ) interest income (1,822 ) (1,867 ) (7,207 ) (7,525 ) income from other investments, net (634 ) (1,068 ) (9,528 ) (10,842 ) membership sales commissions, deferred, net (326 ) (69 ) (1,219 ) (813 ) property management 13,834 12,994 56,509 53,736 depreciation and amortization 39,325 35,510 152,110 137,209 cost of home sales 11,866 9,527 35,096 37,475 home selling expenses 1,183 946 4,401 4,095 general and administrative 7,835 11,161 35,679 37,684 other expenses 438 387 2,865 1,483 early debt retirement — 1,071 1,491 1,071 interest and related amortization 26,259 26,515 104,223 104,993 income from property operations, excluding deferrals and property management 146,998 138,820 581,383 547,745 membership upgrade sales upfront payments, and membership sales commissions, deferred, net (1,912 ) (1,122 ) (9,232 ) (6,567 ) property management (13,834 ) (12,994 ) (56,509 ) (53,736 ) income from property operations $ 131,252 $ 124,704 $ 515,642 $ 487,442 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 december 31, years ended december 31, (amounts in thousands) 2019 2018 2019 2018 consolidated net income $ 58,126 $ 53,380 $ 295,922 $ 226,386 interest income (1,822 ) (1,867 ) (7,207 ) (7,525 ) membership upgrade sales upfront payments, deferred, net 2,238 1,191 10,451 7,380 membership sales commissions, deferred, net (326 ) (69 ) (1,219 ) (813 ) real estate depreciation and amortization 39,325 35,510 152,110 137,209 other depreciation and amortization 438 387 1,774 1,483 interest and related amortization 26,259 26,515 104,223 104,993 gain on sale of real estate, net — — (52,507 ) — adjustments to our share of ebitdare of unconsolidated joint ventures 273 987 3,131 4,112 ebitdare 124,511 116,034 506,678 473,225 early debt retirement — 1,071 2,085 1,071 insurance proceeds due to catastrophic weather event and other, net — 800 (6,205 ) (5,125 ) adjusted ebitdare $ 124,511 $ 117,905 $ 502,558 $ 469,171 core. the core properties include properties we owned and operated during all of 2018 and 2019. 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 2018 and 2019. this includes, but is not limited to, four properties and the marinas acquired and five properties sold during 2019, five properties acquired during 2018 and fiesta key and sunshine key rv resorts. 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.
