ELS Q2 Results Nearly Match 2010 Levels
Equity LifeStyle Properties Inc. (ELS) today (July 19) announced results for the quarter and six months ended June 30, 2011.
For the second quarter 2011, Funds From Operations (FFO) were $27.3 million, or $0.73 per share, compared to $27.1 million, or $0.76 per share for the same period in 2010. For the six months ended June 30, 2011, FFO was $67.9 million, or $1.86 per share, compared to $64.6 million, or $1.82 per share for the same period in 2010, according to a news release.
Net income available to common stockholders totaled $6.8 million, or $0.20 per share for the quarter ended June 30, compared to $6 million, or $0.20 per share for the same period in 2010. Net income available to common stockholders totaled $25.8 million, or $0.80 per share for the six months ended June 30, compared to $21.1 million, or $0.69 per share for the same period in 2010.
As of July 18, ELS owns or has an interest in 342 quality properties in 30 states and British Columbia consisting of 123,065 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
On June 7, ELS issued approximately 6 million shares of common stock in an equity offering for approximately $344 million, net of offering costs. The total proceeds from the offering are expected to be used for the portfolio acquisition. The company also incurred approximately $2.1 million in legal and due diligence costs during the quarter in connection with the acquisition.
On an as adjusted basis, assuming the equity offering had not occurred and the one-time transaction costs of approximately $2.1 million had not been incurred, FFO would have been $29.4 million and $70.0 million, or $0.82 and $1.96 per share, for the quarter and six months ended June 30, 2011, respectively. As adjusted net income available to common stockholders would have been $8.9 million and $27.9 million, or $0.25 and $0.78 per share on a fully-diluted basis, for the quarter and six months ended June 30, 2011, respectively.
Second quarter 2011 property operating revenues, excluding deferrals, were $125.6 million, compared to $123.6 million in the second quarter of 2010. Property operating revenues for the six months ended June 30 were $257.1 million, compared to $255.0 million for the six months ended June 30, 2010.
For the quarter ended June 30, core property operating revenues increased approximately 1.5% as compared to the second quarter of 2010. Core property operating expenses for the quarter ended June 30 increased approximately 0.1%, resulting in an increase of approximately 3.2% to income from core property operations over the quarter ended June 30, 2010. For the six months ended June 30, 2011, core property operating revenues increased approximately 0.7% and core property operating expenses decreased approximately 0.7%, resulting in an increase of approximately 2.2% to income from core property operations over the six months ended June 30, 2010.
On May 31, the company’s operating partnership entered into purchase and other agreements to acquire a portfolio of 76 manufactured home communities containing 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the Acquisition Properties for a stated purchase price of $1.43 billion. Total closing costs associated with the acquisition are expected to be approximately $21 million of which approximately $2.1 million were incurred during the quarter ended June 30.
On July 1, the company closed on 35 of the Acquisition Properties along with certain manufactured homes and loans secured by manufactured homes located at such Acquisition Properties for a purchase price of approximately $452 million. The company’s acquisition of the balance of the acquisition properties is expected to occur on or before Oct. 1, and assumption of the indebtedness thereon is subject to receipt of loan servicer consents. The acquisition is also subject to other customary closing conditions. Accordingly, no assurances can be given that the remainder of the Acquisition will be completed in its entirety in accordance with the anticipated timing or at all.
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