Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Merger or Acquisition (June 2011)
23 slides from Equity Lifestyle Properties's merger presentation, Jun 6, 2011
Slide 1: Hometown Acquisition
Hometown Acquisition June 7, 2011 Equity LifeStyle Properties ELS
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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,
Slide 3: ELS Value Drivers
Equity LifeStyle Properties ELS Value Drivers 3 ?? Long term predictable cash flows ?? High barrier to entry markets ?? High quality and well maintained assets ?? Asset scarcity ?? Balance sheet flexibility ?? Opportunistic acquisition philosophy
Slide 4: Consistent Same Store NOI Growth and Outperformance
Consistent Same Store NOI Growth and Outperformance ELS has consistently outperformed the REIT industry and has maintained positive same store NOI growth every quarter since Q3’98 Notes: Source: Citi Investment Research, March 2011. (1)“REIT Total” includes an index of REITs across a variety of asse
Slide 5: Transaction Overview
Equity LifeStyle Properties Transaction Overview
Slide 6: Hometown Transaction Overview
Equity LifeStyle Properties Hometown Transaction Overview ELS has entered into definitive agreements to purchase ~$1.43 billion of high-quality manufactured home communities (1) from affiliates of Hometown America, L.L.C. (the “Hometown Portfolio”) _ 76 communities _ 31,200 MH sites, average occupan
Slide 7: Strategic Rationale
Equity LifeStyle Properties Strategic Rationale Consistent with and complementary to our strategy ~80% of the Hometown stated purchase price is allocated to core ELS markets Significant overlap in Florida and the Northeast — the best performing markets in ELS’ existing portfolio Increases recurring,
Slide 8: ELS & Hometown — Florida
ELS & Hometown — Florida Village Green — 781 sites — Vero Beach, FL Lake Worth Village — 826 sites — Lake Worth, FL 8
Slide 9: ELS & Hometown — Northeast
Equity LifeStyle Properties ELS & Hometown — Northeast Greenbriar Village — 319 sites — Bath, PA 9
Slide 10: Transaction Financing & Pro Forma Capitalization
Transaction Financing & Pro Forma Capitalization ~$1.43 billion stated purchase price is expected to be financed as follows: _ $200 million equity to Hometown (1) $524 million assumed mortgage debt with a weighted average interest rate of 5.6% and a weighted average maturity of 6.0 years _ ~$300 mil
Slide 11: Integration Plan
Integration Plan Strong and seasoned management team Long-term operating experience in Hometown’s markets Staged closing Expected interim property management services agreement with Hometown Equity LifeStyle Properties 11
Slide 12: Transaction Background
Equity LifeStyle Properties Transaction Background Rare opportunity to acquire a complementary portfolio, in scale, of high-quality manufactured housing assets in our existing core markets at an attractive valuation Familiarity with portfolio and geographies Ability to move quickly and provide certa
Slide 13: Pro Forma Company at a Glance
Equity LifeStyle Properties Pro Forma Company at a Glance 383 total communities and 142,200 total sites across 32 states 211 MH communities and 76,900 sites 172 RV communities and 65,300 sites Notes: Community and site figures include joint ventures. 13
Slide 14: Significant Overlap in Core Geographies
Equity LifeStyle Properties Significant Overlap in Core Geographies 14
Slide 15: Financial Update
Equity LifeStyle Properties Financial Update
Slide 16: Financial Flexibility
Equity LifeStyle Properties Financial Flexibility $380 million of capacity available on new credit facility (closed May 19, 2011) Existing cash and short term investments cover 2011 and 2012 maturities (1) Attractive in place mortgage debt with limited near-term maturities Illustrative Pro Forma 201
Slide 17: Manageable Pro Forma Debt Maturity Schedule
Equity LifeStyle Properties Manageable Pro Forma Debt Maturity Schedule (1) Notes: 1) Pro forma for the acquisition and assumes the incurrence of anticipated new debt, including (i) a $200 mm 6-year unsecured term loan at an expected all-in interest rate of approximately 3.34% per annum and (ii) a $
Slide 18: 2010 Pro Forma Financial Results
Equity LifeStyle Properties 2010 Pro Forma Financial Results ($ in Millions) Community Base Rental Income Resort Base Rental Income Right to Use Annual Payments Right to Use Contracts Utility and Other Income Property Operating Revenues Property Operating Expenses Adjusted Net Operating Income (“Adj
Slide 19: 2010 Pro Forma Financial Results (Continued)
Equity LifeStyle Properties 2010 Pro Forma Financial Results (Continued) ($ in Millions) Notes: 1)Excludes the revenues and certain operating expense of three Hometown Properties, which represent an aggregate stated purchase price of $24.0mm, for which 2010 operating data is not available. 2)Exclude
Slide 20: Conclusion
Equity LifeStyle Properties Conclusion Hometown Portfolio acquisition is consistent with ELS’ core strategy Acquisition enhances our position as a dominant company in the industry _ High quality assets with a similar growth profile _ Acquisition increases MH revenue from 51% to 60% _ Majority of the
Slide 21: Appendix
Equity LifeStyle Properties Appendix
Slide 22: Reconciliation of FFO (as adjusted) to GAAP
Equity LifeStyle Properties Reconciliation of FFO (as adjusted) to GAAP ($ in millions, except per share data) Computation of Funds From Operations (“FFO”) Net Income (loss) available for common shares Income (loss) allocated to common OP Units Series B preferred stock dividends Depreciation on real
Slide 23: Pro Forma FFO (as adjusted) Definition
Pro Forma FFO (as adjusted) Definition Funds from Operations (“FFO”) and pro forma FFO (as adjusted) are non-GAAP financial measures. The Company believes that FFO, as defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), is generally an appropria
Equity LifeStyle Properties — Merger or Acquisition (June 2011) on 6ix