Els reports third 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 nine months ended september 30, 2014. all per share results are reported on a fully diluted basis unless otherwise noted. financial results for the quarter ended september 30, 2014 normalized funds from operations (“normalized ffo”) increased $3.7 million, or $0.04 per common share, to $63.1 million, or $0.69 per common share, compared to $59.4 million, or $0.65 per common share, for the same period in 2013. funds from operations (“ffo”) increased $37.0 million, or $0.41 per common share, to $57.4 million, or $0.63 per common share, compared to $20.4 million, or $0.22 per common share, for the same period in 2013. net income available for common stockholders decreased $4.2 million, or $0.05 per common share, to $25.7 million, or $0.31 per common share, compared to $29.9 million, or $0.36 per common share, for the same period in 2013. portfolio performance for the quarter ended september 30, 2014, property operating revenues, excluding deferrals, increased $10.0 million to $188.9 million compared to $178.9 million for the same period in 2013. for the nine months ended september 30, 2014, property operating revenues, excluding deferrals, increased $29.5 million to $553.8 million compared to $524.3 million for the same period in 2013. for the quarter ended september 30, 2014, income from property operations, excluding deferrals, increased $5.9 million to $105.7 million compared to $99.8 million for the same period in 2013. for the nine months ended september 30, 2014, income from property operations, excluding deferrals, increased $19.0 million to $317.4 million compared to $298.4 million for the same period in 2013. for the quarter ended september 30, 2014, core property operating revenues increased approximately 4.0 percent and income from core property operations increased approximately 5.0 percent compared to the same period in 2013. for the nine months ended september 30, 2014, core property operating revenues increased approximately 3.6 percent and income from core property operations increased approximately 4.4 percent compared to the same period in 2013. balance sheet during the third quarter, we paid off five mortgages totaling $29.7 million with a weighted average interest rate of 5.45 percent per annum. we also refinanced the $53.8 million loan secured by our colony cove community with a stated interest rate of 4.65 percent per annum that was scheduled to mature in 2017. the new loan, with gross proceeds of $115.0 million, has a 25 year term and carries a stated interest rate of 4.64 percent per annum. interest coverage was approximately 3.3 times in the quarter. expanded disclosure on our balance sheet and debt statistics are included in the tables below. acquisitions in september 2014, we closed on the acquisition of three northeast rv resorts comprised of 826 sites for a purchase price of $11.8 million. two of the properties are located in the coastal vacation destination area of new jersey and one property is in new hampshire. the acquisition properties are within close proximity to numerous existing els assets and increased our presence in the northeast markets to approximately 25,000 sites. in addition, in october 2014, we closed on the acquisition of a 270 site rv resort for a purchase price of $6.1 million. the property is located adjacent to an els mh community on the east coast of florida. general information as of october 20, 2014, we own or have an interest in 383 quality properties in 32 states and british columbia consisting of 141,413 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 october 21, 2014. 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 2014 and 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 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 post-trial 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: (in millions, except per share data, unaudited) ______________________ (in thousands, unaudited) _________________________________________ (in thousands, except per share data, unaudited) ______________________________ consolidated income from property operations (1) (in millions, except home site and occupancy figures, unaudited) _________________________ 2014 core income from property operations (1) (in millions, except home site and occupancy figures, unaudited) ____________________________ acquisitions - income from property operations (1) (in millions, unaudited) ______________________ (in millions, except occupied rentals, unaudited) cost basis in rental homes: (3) ____________________________ includes both occupied and unoccupied rental homes. new home cost basis does not include the costs associated with our echo joint venture. at september 30, 2014, our investment in the echo joint venture was $6.0 million. (in thousands, except sites and home sale volumes, unaudited) __________________________ 2014 guidance - selected financial data (1) (in millions, except per share data, unaudited) _____________________________________ fourth quarter 2014 guidance - selected financial data (1) (in millions, except per share data, unaudited) _____________________________________ 2014 core (1) (in millions, unaudited) factors (2) factors (2) _______________________________ 2014 assumptions regarding acquisition properties (1) (in millions, unaudited) ___________________________________ preliminary 2015 guidance - selected financial data (1) (in millions, except per share data unaudited) _____________________________________ preliminary 2015 core (1) (in millions, unaudited) factors (2) _______________________________ (in thousands, except member count, number of zone park passes, number of annuals and number of upgrades, unaudited) ________________________________ (in thousands, except share and per share data) (in thousands, unaudited) (in millions, except weighted average interest and average years to maturity, unaudited) interest (2) interest (2) interest (2) ____________________________ (in millions, except share and op unit data, unaudited) 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.
