Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Investor Presentation (June 2020)
29 slides from Equity Lifestyle Properties's investor presentation, Jun 2, 2020
Slide 1: Investor Presentation June 2020
Investor Presentation June 2020 Equity LifeStyle Properties 1
Slide 2: ELS
ELS 2
Slide 3: Performance Update May 2020 QTD
Performance Update MAY 2020 QTD FINANCIAL AND OPERATIONAL RESULTS(1)(2)(3) Core Community base rental income growth rate is 4.6% Core Occupancy of 95.2% as of May 31, 2020 Core Resort base rental income growth rate from annuals is 4.8% Core Resort base rental income from transients declined $5.7 mil
Slide 4: COVID-19 Response
COVID -19 Response Our employees, residents and customers are our priority. In response to COVID-19 we have taken certain actions which include, but are not limited to, the following: For our Employees: Implemented Employee Time Off program to provide up to two weeks continuation of pay during the p
Slide 5: Sustainability is at the core of Our Nature
At ELS, sustainability is at the core of Our Nature ENVIRONMENTAL SOCIAL GOVERNANCE SOLAR PROJECTS Under 50 1 Over 60 3 Average Age 58 Years GIVING BACK 6 50-60 BOARD OF DIRECTORS AGE DIVERSITY To Notes: download the 2019 Sustainability Report please visit www.equitylifestyleproperties.com/sustainab
Slide 6: Our Story
Our Story • and One British of the Columbia nation’s largest real estate networks with 413 properties containing 156,655 sites in 33 states • Unique business model u Own the land u Low maintenance costs/customer turnover costs u Lease developed sites • High-quality real estate locations u More than
Slide 7: Property Locations
Property Locations 7
Slide 8: Property Locations MH RV
Property Locations Mh rv 8
Slide 9: Steady, Predictable Revenue Streams
Steady, Predictable Revenue Streams Approximately 90% of revenue is derived from stable, annual sources Property/Site composition(1) 204 MH communities 74,200 sites 198 RV resorts 80,100 sites – Annual 30,600 – Seasonal 10,700 – Transient 14,100 – Membership sites 24,600 11 Marinas 2,300 sites Annua
Slide 10: Our Lifestyle Options
Our Lifestyle Options • Customers own the units they place on our sites u Manufactured homes u Resort cottages (park models) uRecreational vehicles • We offer a lifestyle and a variety of product options to meet our customers’ needs • We seek to create long-term relationships with our customers Manu
Slide 11: Favorable Customer Demographics
Favorable Customer Demographics • The population of people age 55 and older in the U.S. is expected to grow 18% from 2020 to 2035 • Roughly 10,000 Baby Boomers will turn 65 every day through 2030 U.S. Population Age 55 and Over (in millions) 120 100 New Residents 80 MH u Average age: 57 years 60 RV
Slide 12: Digital Marketing Strategy
Digital Marketing Strategy myMHcommunity.com RVontheGo.com 12
Slide 13: Track Record
Track Record Item IPO Year—1993 2019 Properties 41 413 Sites 12,312 156,513 States 16 33 Net Income Per Share—Fully Diluted $0.15 $1.54 FFO Per Share—Fully Diluted (1) $0.23 $2.11 Normalized FFO Per Share—Fully Diluted (1) $0.23 $2.09 Common Stock Price (2) $3.22 $70.39 Enterprise Value (3) $296 mil
Slide 14: Unique Business Model Drives Sustained Long Term Outperformance
Unique Business Model Drives Sustained Long Term Outperformance 10% 9% 8% ELS 7% Average 4.1% 6% 5% Apartments 4% Average NOI 3% 3.2% Industry 2% Average Store 1% 3.0% 0% Same -1% -2% -3% -4% -5% -6% -7% -8% 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 0607 0708 0809 0910 101111121213131414151516
Slide 15: Capital Structure
Capital Structure Low Leverage Balance Sheet Provides Financial Flexibility 14. As of March 31, 2020 (in millions) 12. • Total enterprise value is $13.6 billion 10. • $400 million line of credit Debt • Debt to enterprise value is 18.3% Total • Total Debt/Adjusted EBITDAre is 4.9x(1)of % OPUs(2) $602
Slide 16: Transformative Debt Strategy
Transformative Debt Strategy • Weighted average term to maturity is approximately double the REIT average (1) u Weighted average interest rate in line with the REIT average (2) • Low leverage creates financial flexibility Term To Maturity Vs. Total Debt / Total Market Capitalization Term To Maturity
Slide 17: Dividend CAGR and Total Return CAGR
Dividend 5 Year Dividend CAGR and Total Return CAGR 30% • Dividend growth ELS u 5 year CAGR (1) 20% u ELS 14% (2) u REIT Average 3.3% 10% CAGR 0% Return Total -10% -20% -30% -30% -20% -10% 0% 10% 20% 30% Dividend CAGR (1) Notes: Compound annual growth rate through 2019. (2) Source: December S&P 31,
Slide 18: Dividend and NFFO Growth Time-Tested Through Real Estate Cycle
Dividend and NFFO Growth Time-Tested Through Real Estate Cycle Dividend / Share NFFO / Share See Note: pages 22 and 23 for the reconciliation and definition of Normalized FFO. Adjusted for stock splits. 18
Slide 19: Self Funding Business Model
Self Funding Business Model expansions, FFO funds committed and acquisition capital opportunities. with excess to support the purchase of new homes for sale or rent, Expansion Acquisition Palm Lake Estates West Palm Beach, FL Manufactured Home Monte Vista Central Park Village Mesa, AZ Phoenix, AZ Se
Slide 20: Manufactured Home Communities
Manufactured Home Communities Coral Cay Margate, FL Date Palm Country Club Cathedral City, CA Date Palm Country Club Cathedral City, CA 20
Slide 21: Manufactured Home Communities
Manufactured Home Communities Santiago Estates Mariner’s Cove Sylmar, CA Millsboro, DE 21
Slide 22: RV Resorts
RV Resorts Palm Springs RV Resort ViewPoint RV & Golf Resort Palm Desert, CA Mesa, AZ 22
Slide 23: RV Resorts
RV Resorts Portland Fairview Yosemite Lakes RV Campround Fairview, OR Groveland, CA 23
Slide 24: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The forward-looking statements contained in this presentation are subject to certain economic risks and uncertainties described under the heading “Risk Factors” in our 2019 Annual Report on Form 10-K and our Quarterly
Slide 25: Non-GAAP Financial Measures
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 cash
Slide 26: Non-GAAP Financial Measures Continued
N ON -GAAP F INANCIAL M EASURES C ONTINUED EARNINGS BEFORE INTEREST, ADJUSTED TAX, DEPRECIATION EBITDA RE . AND AMORTIZATION FOR REAL ESTATE (EBITDA RE ) AND W E DEFINE EBITDA RE AS NET INCOME OR LOSS EXCLUDING INTEREST INCOME AND EXPENSE , INCOME TAXES , DEPRECIATION AND AMORTIZATION , GAINS OR LOS
Slide 27: Net Income to EBITDAre and Adjusted EBITDAre Reconciliations
Non- GAAP Financial Measures Continued Consolidated Net Income to EBITDAre and Adjusted EBITDAre Reconciliations (in millions) Trailing Twelve Months as of March 2020 Consolidated net income $246.1 Interest income (7.3) Membership upgrade sales upfront payments, deferred, net 11.2 Membership sales c
Slide 28: ELS
ELS 28
Slide 29: Equity LifeStyle Properties
Equity LifeStyle Properties Two North Riverside Plaza, Chicago, Illinois 60606 • (800) 247-5279 • EquityLifeStyleProperties.com 06/20 29
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