Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Investor Presentation (November 2022)
41 slides from Equity Lifestyle Properties's investor presentation, Nov 15, 2022
Slide 1: Investor Presentation November 2022
Investor Presentation November 2022
Slide 2: ELS at a Glance
2 ELS at a Glance ELS owns and operates the highest quality portfolio of manufactured home (“MH”) communities, recreational vehicle (“RV”) resorts, campgrounds and marinas in North America 1969 Year Founded 4,100 Employees 6,157% Total Return Since IPO(1) • 1,345% S&P 500 • 1,362% Dow Jones Equity A
Slide 3: ELS at a Glance
3 9.1% NFFO/Share CAGR(2)(3) (2006 - 2021) 22% Dividend/Share CAGR (2006 - 2021)(3) ELS at a Glance 4.3% Avg Long-Term Core NOI Growth (1) $1.1B Core Revenue 2021 $1.64 Annualized Dividend per Common Share 2.6% Dividend Yield 21.3% Debt/EV 8.9% Floating-Rate Debt 3.6% Weighted Avg Interest Rate 5.2x
Slide 4: MH & RV Performance Update
4 MH & RV Performance Update: • Core MH base rental income growth for October QTD is 6.1% • Core MH base rental rate growth for October QTD is 5.8% • Core Occupancy of 95.0% as of October 31, 2022 • Core RV annual base rental income growth for October QTD is 10.5% • Core RV annual rate growth for Oc
Slide 5: Investment Thesis
5 Investment Thesis 1. Portfolio Composition • High-quality properties located in retirement and vacation destinations • Over 110 properties with lake, river, or ocean frontage • Over 120 properties within 10 miles of coastal United States • Over 70% of MH properties are age-restricted or have a res
Slide 6: Long-term total returns that outperform the market
6 Long-term total returns that outperform the market Track Record ELS S&P 500 INDEX DOW JONES EQUITY ALL REITS INDEX ELS (+6,269%) S&P 500 INDEX (+1,462%) DOW JONES EQUITY ALL REITS INDEX (+1,413%) Total Returns as of 10/31/2022 Notes: (1) See Non-GAAP Financial Measures at the end of the presentati
Slide 7: Dividend and NFFO Growth
7 Dividend and NFFO Growth Dividend / Share NFFO / Share Note: See Non-GAAP Financial Measures at the end of the presentation for the reconciliation and definition of Normalized FFO. Adjusted for stock splits. Dividend / Share CAGR 22% NFFO / Share CAGR 9% $2.50 $1.00 $0.00 2006 20122009 2015 2020 2
Slide 8: Portfolio Locations
12 16 44 9 ELS owns and operates 445 properties in North America with a focus on high-quality coastal and sunbelt retirement and vacation destinations and urban areas Source: S&P Global USA Age 65+Total Projected Population Growth % (2021-2026) 8 Note: Property and site counts presented as of Septem
Slide 9: Portfolio Locations: MH Communities
9 Portfolio Locations The MH portfolio focuses on age-qualified communities in retirement destinations where our residents can be part of an active lifestyle • 74,500 sites 201 MH COMMUNITIES MH Note: Property and site counts presented as of September 30, 2022
Slide 10: Portfolio Locations: RV Resorts
10 Portfolio Locations The RV portfolio has over 200 resorts and campgrounds spread along the coast and in vacation desinations packed with family friendly amenities and activities 221 RV RESORTS • 88,800 sites – Annual 34,400 – Seasonal 12,700 – Transient 15,900 – Membership sites 25,800 RV Note: P
Slide 11: Portfolio Locations: Marinas
11 Portfolio Locations High quality marina portfolio located primarily along the southeast coast, ideal for year-round boating which generates stable annual slip revenue • 6,900 slips 23 MARINAS MA Note: Property and site counts presented as of September 30, 2022
Slide 12: Unique Business Model
12 Drives sustained long-term outperformance Unique Business Model -12% -11% -10% -9% -8% -7% -6% -5% -4% -3% -2% -1% -0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% Q 39 8 Q 19 9 Q 39 9 Q 10 0 Q 30 0 Q 10 1 Q 30 1 Q 10 2 Q 30 2 Q 10 3 Q 30 3 Q 10 4 Q 30 4 Q 10 5 Q 30 5 Q
Slide 13: Capital Expenditures
13 Capital Expenditures Continued investment in communities to support internal growth and enhance our resident and guest experience Recurring Capex (in thousands) Expansion & Sustainability Capex (in thousands) $30,000 $50,000 $10,000 $60,000 $80,000 $20,000 $40,000 $0 2019 2020 2021 Asset Preserva
Slide 14: Unique customer demographics driven by baby boomers
14 Unique customer demographics driven by baby boomers and a strong tailwind from future generations Demand Drivers - Unique Demographics Future Customers • The population of people aged 55 and older in the U.S. is expected to grow 17% from 2022 to 2037 • Roughly 10,000 Baby Boomers will turn 65 eve
Slide 15: Demand Drivers - Value Proposition
15 Demand Drivers - Value Proposition Whether buying or renting, manufactured homes provide greater value as compared to other housing options $400 $500 (In thousands) $200 $300 $100 $0 Avg Sales Price New SFH Avg Sales Price New MH Avg Sales Price - New Single Family Home (“SFH”) vs New Manufacture
Slide 16: Demand Drivers - Lifestyle and Amenities
Title 16 ELS communities and resorts have the amenities to build a thriving community where our residents and guests create memories together Demand Drivers - Lifestyle and Amenities
Slide 17: Supply Constrained Asset Class
17 There has been limited MH development in the U.S. in the past 20 years Growing demand coupled with almost no new supply is a strategic advantage for ELS Supply Constrained Asset Class Manufactured Housing Developments in the U.S. N um be r o f M H D ev el op m en ts Year 40 20 60 80 2001 2002 200
Slide 18: Steady, Predictable Revenue Streams from High-Quality Occupancy
18 Steady, Predictable Revenue Streams from High-Quality Occupancy Note: (1) Property operating revenue buckets reflect trailing twelve months as of September 30, 2022. Since the housing crisis, ELS has steadily reduced the number of renters in our MH portfolio and increased homeowners. Renters typi
Slide 19: Property Operations
19 Best-in-class property operations platform drives consistent rate and occupancy increases Property Operations Core MH Occupancy % 89% 91% 201920182017 2020 2021 87% 92% 94% 93% 95% 96% 88% 90% 86% 54% of MH Communities are 98%+ Occupied 1.5% 2.5% 20182017 2019 2020 2021 Avg 0.5% 3.0% 4.0% 3.5% 4.
Slide 20: Property Operations: Thousand Trails
20 Property Operations 201820172016 2019 2020 2021 2022 110 115 120 125 130 135 100 105 95 25% since 2016 Thousand Trails Member Growth $60 $100 201920182017 2020 2021 $20 $120 $140 $40 $80 $0 Thousand Trails Revenue (in millions) Annual membership subscriptions Membership upgrade sales current peri
Slide 21: 2022 YTD Core Property Operating Expense
21 2022 YTD Core Property Operating Expense(1) 21% 27% 17% 17% 13% 5% Property Operating Expenses Note: (1) Data is as of September 30, 2022 (2) Data considers 3Q’22 YTD performance for five publicly traded Multi-Family REITs (3) Insurance expense accounts for approximately 35% of the Insurance, Adm
Slide 22: Stability through Economic Cycles
22 Pandemic Stability through Economic Cycles Historical Core Portfolio Growth Rate against CPI (1)(2) Notes: (1) The Core Portfolio for each year is defined as properties owned and operated for more than one year as of the start of that year. The Core Portfolio may change from time-to-time dependin
Slide 23: Technology and Innovation
23 Utilizing the latest technology to drive operational efficiencies Technology and Innovation Online Check-in Solar PanelsSmart Meters Prop Tech Online apps Cashless TransactionsTech Investments BOTS Digital signature Sign Here Orlando RV Resort & Campground Clermont, FL Morgan Hill RV Campground M
Slide 24: Digital Marketing Strategy – Social Media
24 Since January 2022, ELS has had over 6.5 Million total interactions on social media channels Digital Marketing Strategy – Social Media Over 1.6 Million Total Followers across social media channels ELS has an engagement-focused social media strategy where we build meaningful interactions with exis
Slide 25: Digital Marketing Strategy – Home Sales Model
25 Interactive virtual tours allow residents to preview the community and their future home Digital Marketing Strategy – Home Sales Model Home Virtual Tour MH Property Virtual Tour
Slide 26: Digital Marketing Strategy – Online Check-In
26 Digital Marketing Strategy – Online Check-In Implemented online check-in functionality to enhance the customer experience Benefits of Online Check-In for Customers: • Less wait time at the front desk • Reduced contact at check-in • Expedited entry and can go straight to assigned sites • Mobile fr
Slide 27: Digital Marketing Strategy – Online Travel Partners
27 Digital Marketing Strategy – Online Travel Partners Building brand awareness and expanding reach to new customers through strategic partnerships 23 HALL OF FAME INDUCTEES 63 TRAVELERS' CHOICE AWARDS 2022 is a 2022 Travelers’ Choice Award Winner
Slide 28: Capital Structure
28 Capital Structure Balance sheet strategy supports long-term growth As of September 30, 2022 (in millions) Notes: (1) As of September 30, 2022. See Non-GAAP Financial Measures at the end of the presentation for the definition and reconciliation of Adjusted EBITDAre. (2) Based on the stock price as
Slide 29: Debt Strategy - Refinance Risk Mitigation
29 Debt Maturity through 2026(3) 50% 18% 43% 45% 30% 25% 10% 5% 40% 35% 20% 15% 0% REIT IndustryELS Debt Strategy - Refinance Risk Mitigation Weighted average term to maturity is approximately double the REIT average(1) Weighted average interest rate in line with the REIT average(2) Notes: Source: S
Slide 30: Debt Strategy - Refinance Risk Mitigation
30 Floating Rate Debt % vs 3 Year Debt Maturity Debt Maturing in 3 Years (2025) Fl oa tin g Ra te D eb t % 0% 40% 10% 20% 30% 40% 50% 30% 10% 20% Minimal near-term exposure to debt maturities compared to REIT average(1) Floating rate debt is in the single digits and remains below the REIT average(2)
Slide 31: Dividend
31 Dividend Notes: (1) Compound annual growth rate through 2021. (2) Source: S&P Global; Includes all publicly traded U.S. Equity REITs in S&P Global’s coverage universe that declared regular dividends during the period January 1, 2016 through December 31, 2021. 5 Year Dividend CAGR and Total Return
Slide 32: Acquisitions
32 Acquisitions ELS has a strong pipeline of external growth opportunities and a disciplined strategy focused on acquiring accretive properties $300 $500 $400 $600 $700 $100 $200 $– Property Acquisitions MH RV Marina 2018 20192017 2020 20222021 Over $1.5 Billion Invested in New Acquisitions Since 20
Slide 33: Expansions
Expansions maximize returns by increasing the number of sites at communities with high demand with minimal increase to operating costs Expansion Bethpage Camp Resort – Urbanna, VA Completed Expansion Sites 2018 2022 600 1,000 2018 2019 2020 2021 200 1,200 1,400 400 800 0 $15 $25 2018 2019 2020 2021
Slide 34: ESG – Environmental
ESG – Environmental COMMIT TO PLANTING 100,000 TREES IN COLLABORATION WITH AMERICAN FORESTS ADOPTED RECOMMENDATIONS BY THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) PARTNERSHIP SMART METERS 125+ ENERGY STAR® CERTIFIED HOMES LED RETROFIT PROJECTS Note: To download our Environmental P
Slide 35: ESG – Social
35 17 HOURS EACH ELS EMPLOYEE RECEIVED AN AVERAGE OF 17 HOURS OF TRAINING IN 2021 ~8,800 COVID-19 VACCINATIONS FACILITATED AT 54 COMMUNITIES AS OF JANUARY 2022 4.31 AVERAGE RV RESORT & CAMPGROUND CUSTOMER SATISFACTION SURVEY SCORE TEAM MEMBERS VOLUNTEERED FOR 4,148 COMMUNITY IMPACT HOURS IN 2021 SPO
Slide 36: ESG – Governance
36 ESG – Governance Note: To download our Environmental Performance Report and our 2021 Sustainability Report please visit www.equitylifestyleproperties.com/sustainability ADOPTED VENDOR CODE OF CONDUCT FORMED CYBER SECURITY ADVISORY BOARD AND SECURITY INCIDENT RESPONSE TEAM PUBLISHED ANTI-CORRUPTIO
Slide 37: Experienced Executive Management Team
Long tenure leadership in the MH, RV, and marina industry Experienced Executive Management Team Marguerite Nader President and CEO 29 Years 37 Paul Seavey EVP and CFO 28 Years Patrick Waite EVP and COO 29 Years David Eldersveld EVP, CLO and Secretary 7 Years Larisa Drake EVP, CMO and Sales 9 Years
Slide 38: Forward Looking Statement
38 Forward Looking Statement The forward-looking statements contained in this presentation are subject to certain economic risks and uncertainties described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, as modified or supplemented by subsequently filed Quarterly Rep
Slide 39: Non-GAAP Financial Measures
39 Non-GAAP Financial Measures This presentation contains certain non-GAAP measures used by management that we believe are helpful in understanding our business, as further discussed in the paragraphs below. We believe investors should review these non-GAAP measures, along with GAAP net income and c
Slide 40: Non-GAAP Financial Measures Continued
40 Non-GAAP Financial Measures Continued Consolidated Net Income to EBITDAre and Adjusted EBITDAre Reconciliations (in millions) INCOME FROM PROPERTY OPERATIONS, EXCLUDING DEFERRALS AND PROPERTY MANAGEMENT (NOI). We define Income from property operations, excluding deferrals and property management
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