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ELS Posts Higher Earnings for Q4 and 2012

January 29, 2013 by   - () Leave a Comment

Strong Q4/2012 performance for industry leader.

Equity LifeStyle Properties Inc. (ELS) announced on Monday (Jan. 28) results for the three months and year ended Dec. 31, 2012. All per share results are reported on a fully-diluted basis unless otherwise noted.

For the forth quarter of 2012, Funds From Operations (FFO) were $50.3 million, or $1.11 per share, compared to $44.8 million, or $0.99 per share, for the same period in 2011. For the year ended Dec. 31, 2012, FFO was $210.0 million, or $4.62 per share, compared to $147.5 million, or $3.66 per share, for the same period in 2011.

Net income available to common stockholders totaled $24.3 million, or $0.58 per share, for the fourth quarter compared to a net loss of $200,000, or $0.00 per share, for the same period in 2011.

Net income available to common stockholders totaled $54.8 million, or $1.32 per share, for the year ended Dec. 31, 2012, compared to $22.8 million, or $0.64 per share, for the same period in 2011.

Portfolio Performance

During the year, Core property operations were impacted by previously disclosed non-recurring items related to utility income and membership sales and marketing expenses. For the year ended Dec. 31, 2012, compared to the same period in 2011, the increases in Core property operating revenues, expenses and income were approximately 2.3%, 1.3% and 3%, respectively, excluding cable service prepayments, right-to-use contract sales and sales and marketing expenses.

For the three months ended Dec. 31, 2012, property operating revenues, excluding deferrals, were $167.9 million, compared to $161.1 million in the same period of 2011. Property operating revenues, excluding deferrals, for the year ended Dec. 31, 2012 were $688.1 million, compared to $578.2 million for the year ended Dec. 31, 2011.

For the three months ended Dec. 31, 2012, Core property operating revenues increased approximately 1.5% and income from Core property operations increased approximately 1.4% compared to the same period in 2011. For the year ended Dec. 31, 2012, Core property operating revenues increased approximately 1.8% and income from Core property operations increased approximately 2.3% compared to the same period in 2011.

Balance Sheet

ELS’s cash balance as of Dec. 31, 2012 was approximately $37.1 million. Its average long-term secured debt balance was approximately $2.1 billion during the three months ended Dec. 31, 2012, with a weighted average interest rate, including loan cost amortization, of approximately 5.5% per annum and weighted average maturity of 5.0 years. Interest coverage was approximately 2.9 times in the three months ended Dec. 31, 2012.

During the three months ended Dec. 31, 2012, the Company paid off the mortgage on one resort property, which was set to mature on Feb. 11, 2013 totaling approximately $5.2 million, with a stated interest rate of 6.5% per annum.

Asset-related Transactions

During the three months ended Dec. 31, 2012, the company closed on a $25.0 million acquisition of the Victoria Palms Resort, a 1,122-site property, and the Alamo Palms Resort, a 643-site property. Both properties are located in Rio Grande Valley, Texas.

The company also closed on the sale of Cascade, a 163-site property in Snoqualmie, Wash., formerly operated as a Thousand Trails resort. The sale was the result of a settlement related to a previously threatened condemnation of the property. Cash proceeds from the disposition, net of closing costs, were approximately $7.6 million and again on disposition of approximately $4.6 million, net of tax, was recorded. The property was not operating at the time of the sale.

Preferred Stock Redemption

During the three months ended Dec. 31, 2012, the company redeemed the remaining 2,554,235 shares of 8.034% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share, at the $25 per share liquidation value and accrued and unpaid dividends of $0.094846 per share on such redeemed shares for approximately $64.1 million.

As of Jan. 28, 2013, Equity LifeStyle Properties Inc. owns or has an interest in 383  properties in 32 states and British Columbia consisting of 142,682 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.

 

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