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ELS Projects ’11 Income Growth at 2.75%-3.25%

October 22, 2010 by   - () Leave a Comment

Equity LifeStyle Properties Inc. (ELS) has announced results for the quarter and nine months ended Sept 30.

The Chicago-based real estate investment trust owns or has an interest in 307 RV and manufactured housing parks in 27 states and British Columbia consisting of 110,984 sites. The company revealed the following results in a news release.

Financial Results

For the third quarter 2010, Funds From Operations (FFO” were $32.7 million, or $0.92 per share on a fully-diluted basis, compared to $28.8 million, or $0.82 per share on a fully-diluted basis for the same period in 2009. For the nine months ended Sept. 30, FFO was $97.3 million, or $2.74 per share on a fully-diluted basis, compared to $90.4 million, or $2.81 per share on a fully-diluted basis for the same period in 2009.

Net income available to common stockholders totaled $11.6 million, or $0.37 per share on a fully-diluted basis for the quarter ended Sept. 30. This compares to net income available to common stockholders of $11.1 million, or $0.37 per share on a fully-diluted basis for the same period in 2009. Net income available to common stockholders totaled $32.6 million, or $1.06 per share on a fully-diluted basis for the nine months ended Sept. 30. This compares to net income available to common stockholders of $27.7 million, or $1.02 per share on a fully-diluted basis for the same period in 2009.

Portfolio Performance

Third quarter 2010 property operating revenues were $127.3 million, compared to $123.8 million in the third quarter of 2009. Property operating revenues for the nine months ended Sept. 30 were $373.8 million, compared to $364.3 million for the nine months ended Sept. 30, 2009.

For the most recent quarter Core property operating revenues increased approximately 1.8% and Core property operating expenses decreased approximately 0.1%, resulting in an increase of approximately 4.1% to income from Core property operations over the quarter ended September 30, 2009. For the nine months ended Sept. 30, 2010, Core property operating revenues increased approximately 1.6% and Core property operating expenses increased approximately 1.3%, resulting in an increase of approximately 1.9% to income from Core property operations over the nine months ended September 30, 2009.

For the quarter ended September 30, 2010, the company had 22 new home sales (including four third-party dealer sales), which represents a 42.1% decrease as compared to the quarter ended Sept. 30, 2009. Gross revenues from home sales were $1.8 million for the quarter ended Sept.30, 2010, compared to $2.1 million for the quarter ended Sept. 30, 2009. For the nine months ended Sept. 30, 2010, the company had 62 new home sales (including 13 third-party dealer sales), which represents a 21.5% decrease as compared to the nine months ended Sept. 30, 2009. Gross revenues from home sales were $4.8 million for the nine months ended Sept. 30, 2010, compared to $5.1 million for the nine months ended Sept. 30, 2009.

Balance Sheet

Our average long-term secured debt balance was approximately $1.5 billion in the quarter, with a weighted average interest rate, including amortization, of approximately 5.98% per annum. Interest coverage was approximately 2.7 times in the quarter ended Sept. 30, 2010.

During the most recent quarter, the company paid off approximately $74.3 million of financing encumbering seven manufactured home properties with a weighted average interest rate of 5.72% per annum.

The company does not have any secured mortgage debt that matures during the remainder of 2010. In 2011, ELS has approximately $55 million of secured mortgage debt maturing, the majority of which it expects to pay off during the first six months of 2011.

Guidance

ELS management projects FFO per share, on a fully-diluted basis, to be in the range of $0.77 to $0.83 for the quarter ending Dec. 31, 2010.

Preliminary guidance for 2011 FFO per share, on a fully-diluted basis, is projected to be in the range of $3.75 to $3.95. The company estimates that Core property operating revenue for 2011 is expected to grow at approximately 1% to 1.5% over 2010, assuming stable occupancy. Income from Core property operations, excluding property management expenses, is expected to grow at approximately 2.75% to 3.25% over 2010.

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