Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Investor Presentation (September 2012)
43 slides from Equity Lifestyle Properties's investor presentation, Sep 5, 2012
Slide 1: Investor Presentation September 2012
Investor Presentation September 2012 Equity Lifestyle Properties, Inc. Two North Riverside Plaza Chicago, IL 60606
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: Equity LifeStyle Properties: Real Estate
Equity LifeStyle Properties Real Estate
Slide 4: ELS Property Locations
ELS Property Locations
Slide 5: One of the nation's largest real estate networks
One of the nation’s largest real estate networks with 382 properties containing over 141,000 sites in 32 states and British Columbia ELS Overview ELS has a unique business model ELS owns the land Leases individual developed sites to customers Customers own the units they place on the sites ELS site
Slide 6: ELS Investment Highlights
ELS Investment Highlights Well Located Real Estate >80 properties with lake, river or ocean frontag frontage >100 properties within 10 miles of coastal United States Property locations are strongly correlated with population migration Financial Performance and Fundamentals Strong Long Term Performan
Slide 7: Property Location Shift
Property Location Shift (1)(2)(3)(4) Top 5 New Acquisition States: +226 properties; +15.4% population growth All Disposition States: -13 properties; +6.4% population growth Properties currently on the west coast (5) 66 properties currently on the east coast (5) + properties since IPO - properties si
Slide 8: Real Estate
Real Estate Primary investment is in land; the appreciating component of real estate in the De Anza Santa Cruz—Santa Cruz, CA long run Lower maintenance costs/customer turnover costs than other forms of real estate High quality real estate Asset scarcity High barriers to entry Retirement and vacatio
Slide 9: Manufactured Home Community
Manufactured Home Community Colony Cove—Ellenton, FL
Slide 10: Manufactured Home Community
Manufactured Home Community Contempo Marin—San Rafael, CA
Slide 11: Manufactured Home Community
Manufactured Home Community De Anza Santa Cruz—Santa Cruz, CA
Slide 12: Manufactured Home Community
Manufactured Home Community Mariner’s Cove—Lewes, DE
Slide 13: RV Resort
RV Resort Viewpoint—Mesa, AZ
Slide 14: RV Resort
RV Resort Sunshine Key RV Resort & Marina—The Florida Keys
Slide 15: Financial Performance
E59 Lins Properies | LifeStyle Properties Financial Performance
Slide 16: Track Record
Track Record Item IPOYear - 1993 Properties Sites 12,312 141,076 States FFO Per Share (1) $ 0.94 $ 4.54 Common Stock Price (2) $ 12.88 $ 68.76 Enterprise Value (3) $ million $ 5.6 billion Dividend Paid Cumulative (4) - $ 30.07 Cumulative Total Return (5) - 1,240 % S&P 500 Total Return (5) - % Notes:
Slide 17: Total Return Performance
Total Return Performance (1) ELS total return has 40 60 80 Total Return (%) Year -Total Return Performance outperformed both the S&P 500 and other REIT’s for both the last 5 and 10 years ELS announced -80 -60 -40 -20 0 20July-07 July-08 July-09 July-10 July-11July-12 ELS (+77%) SNL US REIT Equity (+
Slide 18: Consistent Same Store NOI Growth and Outperformance
Consistent Same Store NOI Growth and Outperformance Q3 1998 – Q2 2012 (1) Same Store NOI Averages: 9.0% 9.5% 10.0% REIT Industry ELS Industry Average—2.3% ELS Average—3.8% Apartments Average—2.3% ELS has maintained positive same store NOI growth all quarters since at least Q3 ‘98 ELS 3.8% REIT’s 2.3
Slide 19: ELS vs. Multifamily
ELS vs. Multifamily Same Store NOI Indexed Growth (1) ELS compounded Same Store NOI growth rates $165 Same Store NOI Indexed Growth significantly outperformed the REIT Multifamily industry since 1999 $115 $120 $125 $130 $135 $140 $145 $150 $155 $160 FFO Multiples ELS Multifamily 1996 – 2001(3) 12.9x
Slide 20: ELS vs. Multifamily FFO/Share and Total Return
ELS vs. Multifamily (cont’d) FFO/Share and Total Return While ELS and SNL Multifamily Index have had FFO/Share and Total Return: 2002-2011 (1) similar total returns, ELS has far outpaced Multifamily Index in FFO/share growth $150 $200 $250 $300 $350 FFO/Share and Total Return (Indexed) Notes: Source
Slide 21: Long Term Predictable Cash Flows
Long Term Predictable Cash Flows Revenue (In $US millions) FFO expected to grow $707.6 $600 $700 $800 Funds from Operations (In $US millions) (3) 40% in 2012 Over 96% of estimated 2012 revenues is comprised of property operating revenues 2011 and 2012 growth largely driven by $1.4 $250 $439.1 $467.3
Slide 22: Steady, Predictable Revenue Streams
Steady, Predictable Revenue Streams Property Revenue Buckets (1) Transient Seasonal Annual Annual RV MH Utility & Other Annual Right to Use 12.7% 9.4% 9.0% 62.2% 22 All Annual Revenue = 93.3% $687M Property Operating Revenues Note: 1) Property revenue buckets reflect Company’s estimated 2012 propert
Slide 23: Manufactured Homes
Manufactured Homes Casa del Sol East – Glendale, AZ
Slide 24: Resort Cottages (Park Models)
Resort Cottages (Park Models) O’Connell’s—Amboy, IL
Slide 25: RV Units
RV Units Green Mountain—Lenoir, NC (Thousand Trails)
Slide 26: Balance Sheet Flexibility
Balance Sheet Flexibility Total Debt / Total Capitalization (1) $344 million of 75% Fixed Interest Coverage (2) common equity raised in 200 properties are 3.0x 51.3% 54.9% 43.9% 39.3% 41.6% 0% 25% 50% 2007 2008 2009 2010 2011 2.1x 2.2x 2.5x 2.6x 2.7x 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 2007 2008 2009 2010
Slide 27: Capital Structure
Capital Structure As of June 30, 2012 (In $US millions) Total enterprise value (1) is $5.6 billion Debt to enterprise value is 41% $380 million undrawn line of credit Mortgage Debt, $2,089, 37.2% Common (1), $2,850, 50.8% 27 Notes: 1) Stock price as of 6/30/2012.2) The 8 million shares of 8.034% Ser
Slide 28: Acquisition Overview
Acquisition Overview 2011 Acquisition $1.4 billion acquisition of 75 propertie properties 2012 estimated income from property operations of $101.3 million (1) Note: 1) See Supplemental Package.
Slide 29: Resort Homes manufactured home communities
Resort Homes (1) 205 manufactured home communities – $475 million, or 69%, of estimated 2012 property operating revenues Casa del Sol Resort East – Glendale, AZ 74,100 sites Total occupancy is 89.3% and up 164 sites since 12/31/11 (2) Core Core occupancy has grown for 11 consecutive quarters through
Slide 30: RV Resorts
RV Resorts (1) 172 RV resorts – $212 million, or 31%, of estimated 2012 property operating revenues Goose Creek—Newport, NC Total Sites = 63,900 Annual / Seasonal Sites = 30,000 Transient Sites = 9,600 Thousand Trails Sites = 24,300 (2) • 97,300 members as of 8/31/12 – Average annual customer paymen
Slide 31: Customers
E59 Lins Properies | LifeStyle Properties Customers
Slide 32: Customer Demographics
Customer Demographics U.S. Population Over Age of 50 (in millions) 40 60 80 100 120 70 to 74 65 to 69 60 to 64 55 to 59 50 to 54 Note: Sources: University of Michigan’s Survey Research Center 2005, Acxiom 2009, Statistical Surveys 2011, US Census 2008. 2010 2015 2020 2025 The population of people 50
Slide 33: Customer Demographics
Customer Demographics Target CustomeCustomer Pyramid by Revenue % (1) r Transient RV Customer 35-55 years old Right to Use RV and Seasonal RV Customer Traditionally 55-69 years old Zone Park Pass – low cost product introduced in 2010 • 50-59 years old MH and Annual RV Customer Annual MH & RV Transie
Slide 34: RV Customer Acquisition Channels
RV Customer Acquisition Channels RV Dealers RV Manufacturers Foothills West – Casa Grande, AZ RV Service Providers Insurance Reservations RV Retail Suppliers Soledad Canyon—Acton, CA
Slide 35: ELS LifeStyle and Activities
ELS LifeStyle and Activities Recreatio Recreation Golf, softball, fishing, tennis, swimming, lawn bowling, bocce ball Arts Concerts, shows, art fairs, crafts Education Seminars, One Day University Volunteerism Consider Others, fund raising
Slide 36: Customer Engagement
Customer Engagement Engage the customer early in life, will become part of a lifestyle for the customecustomer Our member base is loyal with over 50% having been with us 20+ years MyRVMarket—order branded items online (1,000 sku’s) Social Networking application
Slide 37: Customer Engagement
Customer Engagement Facebook—20,000 fans, friends of fans 4.5 milliomillion 16 likes 53 comments Detailed response thread Note: 1) Facebook logo is a registered trademark of Facebook, Inc.
Slide 38: Customer Engagement: Photo Contests
Customer Engagement Photo Contests Conducted on our Facebook Page Pacific City—Cloverdale, OR Lake Minden—Nicolaus, TX
Slide 39: Customer Engagement: Photo Contests
Customer Engagement Photo Contests Conducted on our Facebook Page Snowflower—Emigrant Gap, CA Yosemite Lakes—Groveland, CA
Slide 40: People
E59 Lins Properies | LifeStyle Properties People
Slide 41: Experienced, Proven Management and Board of Directors
Experienced, Proven Management and Board of Directors Executive OfficerBoard of Directors s Samuel Zell—Chairman of the Board, Director Thomas Heneghan—Chief Executive Officer and member of the Board of Directors (with ELS since 1995). Previous roles at ELS: President, Chief Operating Officer (“COO”
Slide 42: Organizational Overview
Organizational Overview Regional Corporate Administrativ 2 Regional Offices e Administrative Accounting • SVP of Finance and Treasurer—18+ years at ELS • SVP and CAO – 25+ years of experience in public accounting, joined ELS in • 4 VP’s / Directors—Average 7+ years at ELS/Thousand Trails • Complianc
Slide 43: Non GAAP Financial Measures
Non GAAP Financial Measures Funds from Operations (“FFO”) is a non-GAAP financial measure. 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 appropriate measure of performance for an equity REI
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