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, 2014. all per share results are reported on a fully diluted basis unless otherwise noted. financial results for the quarter ended december 31, 2014 normalized funds from operations (“normalized ffo”) increased $4.2 million, or $0.04 per common share, to $60.8 million, or $0.66 per common share, compared to $56.6 million, or $0.62 per common share, for the same period in 2013. funds from operations (“ffo”) increased $5.4 million, or $0.06 per common share, to $60.3 million, or $0.66 per common share, compared to $54.9 million, or $0.60 per common share, for the same period in 2013. net income available for common stockholders increased $5.2 million, or $0.06 per common share, to $29.4 million, or $0.35 per common share, compared to $24.2 million, or $0.29 per common share, for the same period in 2013. portfolio performance for the quarter ended december 31, 2014, property operating revenues, excluding deferrals, increased $8.2 million to $180.3 million compared to $172.1 million for the same period in 2013. for the year ended december 31, 2014, property operating revenues, excluding deferrals, increased $37.8 million to $734.7 million compared to $696.9 million for the same period in 2013. for the quarter ended december 31, 2014, income from property operations, excluding deferrals, increased $5.5 million to $104.8 million compared to $99.3 million for the same period in 2013. for the year ended december 31, 2014, income from property operations, excluding deferrals, increased $24.5 million to $422.2 million compared to $397.7 million for the same period in 2013. for the quarter ended december 31, 2014, core property operating revenues increased approximately 3.7 percent and income from core property operations increased approximately 4.7 percent compared to the same period in 2013. for the year ended december 31, 2014, core property operating revenues increased approximately 3.6 percent and income from core property operations increased approximately 4.5 percent compared to the same period in 2013. balance sheet during the fourth quarter, we paid off one mortgage at maturity totaling $3.6 million with a stated interest rate of 5.71 percent per annum. in january 2015, as part of our previously announced refinancing plan, we closed on two 25-year, fully amortizing loans with total gross proceeds of $199.0 million. the loans are secured by 11 mh and rv assets and carry a weighted average interest rate of 4.16 percent per annum. proceeds from the financing were used to defease approximately $190.0 million of loans maturing in 2015 with a weighted average interest rate of 5.57 percent per annum. we incurred approximately $9.0 million in early debt retirement expense related to these loans, which were secured by 15 mh and rv assets. interest coverage was approximately 3.4 times in the quarter. expanded disclosure on our balance sheet and debt statistics are included in the tables below. acquisitions in december 2014, we closed on the acquisition of mesa spirit, a 1,600-site rv resort located in mesa, arizona for a purchase price of $41.6 million. the purchase price was funded with available cash and the assumption of approximately $19.0 million in mortgage debt. executive officer promotion effective immediately, mr. patrick waite has been promoted to executive vice president and chief operating officer. he will continue to oversee our property operations. general information as of january 26, 2015, we own or have an interest in 384 quality properties in 32 states and british columbia consisting of 143,113 sites. we are a self-administered, self-managed real estate investment trust (“reit”) with headquarters in chicago. a live webcast of our conference call discussing these results will be available via our website in the investor information section at www.equitylifestyle.com at 10:00 a.m. central time on january 27, 2015. 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 recent acquisitions. these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to: our ability to control costs, real estate market conditions, the actual rate of decline in 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 retain and attract customers renewing, upgrading and entering right-to-use contracts; our assumptions about rental and home sales markets; our assumptions and guidance concerning 2015 estimated net income, ffo and normalized ffo; our ability to manage counterparty risk; in the age-qualified properties, home sales results could be impacted by the ability of potential homebuyers 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 dilutive effects of issuing additional securities; the effect of accounting for the entry of contracts with customers representing a right-to-use the properties under the codification topic “revenue recognition;” the outcome of pending or future lawsuits filed against us by tenant groups seeking to limit rent increases and/or seeking large damage awards for our alleged failure to properly maintain certain properties or other tenant related matters, such as the case currently pending in the california superior court for santa clara county, case no. 109cv140751, involving our california hawaiian manufactured home property, including any further proceedings in the trial court or on appeal; and other risks indicated from time to time in our filings with the securities and exchange commission. 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. tables follow: fourth quarter 2014 - selected financial data (in millions, except per share data, unaudited) quarter ended december 31, 2014 ______________________ consolidated income statement (in thousands, unaudited) revenues: expenses: net income available for common shares _________________________________________ reconciliation of net income to ffo, normalized ffo and fad (in thousands, except per share data, unaudited) net income available for common shares ffo (3) ______________________________ consolidated income from property operations (1) (in millions, except home site and occupancy figures, unaudited) income from property operations (1) manufactured home site figures and occupancy averages: _________________________ 2014 core income from property operations (1) (in millions, except home site and occupancy figures, unaudited) core manufactured home site figures and occupancy averages: total resort base rental income ____________________________ acquisitions - income from property operations (1) (in millions, unaudited) ______________________ income from rental home operations (in millions, except occupied rentals, unaudited) cost basis in rental homes: (3) ____________________________ total sites and home sales (in thousands, except sites and home sale volumes, unaudited) summary of total sites as of december 31, 2014 total home sales - select data new home sales volume - echo joint venture __________________________ 2015 guidance - selected financial data (1) our guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. factors impacting 2015 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 sites; (iii) scheduled or implemented rate increases on community and resort sites; (iv) scheduled or implemented rate increases in annual payments under right-to-use contracts; (v) occupancy changes; (vi) our ability to retain and attract customers renewing or entering right-to-use contracts; (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; and (ix) ongoing legal matters and related fees. (in millions, except per share data, unaudited) normalized ffo(4) ffo (4) net income available to common shares _____________________________________ first quarter 2015 guidance - selected financial data (1) (in millions, except per share data, unaudited) _____________________________________ 2015 core (1) guidance assumptions - income from property operations (in millions, unaudited) growth growth factors (2) factors (2) _______________________________ 2015 assumptions regarding acquisition properties (1) (in millions, unaudited) ___________________________________ each line item represents our estimate of the mid-point of a possible range of outcomes and reflects management’s best estimate of the most likely outcome for the acquisition properties. actual income from property operations for the acquisition properties could vary materially from amounts presented above if any of our assumptions are incorrect. right-to-use memberships - select data (in thousands, except member count, number of zone park passes, number of annuals and number of upgrades, unaudited) 2015 (1) 1,289 _______________________________ balance sheet (in thousands, except share and per share data) december 31, 2014 december 31, 2013 common stock, $0.01 par value 200,000,000 shares authorized as of december 31, 2014 and december 31, 2013; 83,879,779 and 83,313,677 shares issued and outstanding as of december 31, 2014 and december 31, 2013, respectively debt maturity schedule & summary secured debt maturity schedule as of december 31, 2014 (in thousands, unaudited) debt summary as of december 31, 2014 (in millions, except weighted average interest and average years to maturity, unaudited) weighted average average years to weighted average average years to weighted average average years to interest (2) interest (2) interest (2) 7.8 ____________________________ market capitalization (in millions, except share and op unit data, unaudited) 83,879,779 92.1 91,111,746 4,697 4,833 7,045 perpetual preferred equity as of december 31, 2014 non-gaap financial measures funds from operations (“ffo”) is a non-gaap financial measure. we believe ffo, as defined by the board of governors of the national association of real estate investment trusts (“nareit”), is generally an appropriate 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”) is a non-gaap measure. we define normalized ffo as ffo excluding the following non-operating income and expense items: a) the financial impact of contingent consideration; b) gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs; c) property acquisition and other transaction costs related to mergers and acquisitions; and d) other miscellaneous non-comparable items. funds available for distribution (“fad”) is a non-gaap financial measure. we define fad as normalized ffo less non-revenue producing capital expenditures.
