Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Investor Presentation (June 2010)
24 slides from Equity Lifestyle Properties's investor presentation, Jun 9, 2010
Slide 1: Investor Presentation June 2010
Investor Presentation ——— June 2010 quity 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 Overview
ELS Overview One of the nation's largest real estate networks with approximately 300 properties containing over 110,000 sites in 27 states and British Columbia ELS has a unique business model: ELS owns the land Leases individual developed sites to customers Customers own the units they place on the
Slide 4: ELS Business Expansion (2003 - Current)
ELS Business Expansion (2003 - Current) Number of Sites Number of Properties = MH = RV (LifeStyle) 128 135 14 168 0 40 80 120 160 2003 Current 90.1% 9.9% 55.4% 44.6% 44,900 45,700 8,800 64,600 - - 20,000 40,000 60,000 80,000 2003 Current 83.7% 58.6% 16.3% 41.4%
Slide 5: ELS Key Value Drivers
ELS Key Value Drivers Well Located Real Estate >75 properties with lake, river and ocean frontage >80 properties within 10 miles of coastal United States Property locations are strongly correlated with population migration Favorable Customer Demographics Active adults and RV owners / Outdoor enthusi
Slide 6: ELS Current Property Locations
ELS Current Property Locations
Slide 7: Real Estate
Real Estate Primary investment is land/appreciating component of real estate Lower maintenance costs/customer turnover costs High quality real estate Major metros/high growth areas High barriers to entry Retirement and vacation destinations
Slide 8: RV Owners and Outdoor Enthusiasts
8M-9M RV owners in the United States (1)(2) Average of approximately 42,000 RV owners located within 100 miles of each ELS resort (2) The typical RV owner is age 49, married, owns a home and has an annual household income of $68,000 (1) 42.4M Camping Participants in 2008 (3) 65% of camping participa
Slide 9: Customer Discovery
Customer Discovery (1) As our customers enter later life stages they tend to fall into our more stable customer buckets Transient RV Customer 36-55, married, kids, home owner Right to Use RV and Seasonal RV Customer 56-75, married, empty nester, home owner Annual RV and MH Customer 66-75, married, e
Slide 10: Resort Home Customer
Resort Home Customer Primarily active adults Average U.S. household income is $68,400 (1) Average U.S. household income of people 55 to 64 is $77,500 (1) Baby Boomers (2)(3) Own 57% of all vacation and seasonal homes (2) 40% intend to turn their vacation home into primary residence after retirement
Slide 11: Customer Demographics
Customer Demographics Customer Demographics U.S. Population Over Age of 55 (1) (in millions) Notes: 1) Sources: U.S. Census Bureau, 2008. Customer Retention Strategy Lifestyle focus Amenities / social activities Communities Attractive housing High quality Low capital commitment Easy maintenance Long
Slide 12: ELS LifeStyle and Activities
ELS LifeStyle and Activities Recreation Golf, softball, fishing, tennis, swimming, shuffleboard Arts Concerts, shows, art fairs, crafts Education Seminars, One Day University Volunteerism Consider Others, fund raising
Slide 13: Stay with ELS a day, a week, a year, or a lifetime
Stay with ELS a day, a week, a year, or a lifetime
Slide 14: Resort Homes
Resort Homes 46,000 sites (approx. 4,000 vacant) Marketing Initiatives Customer referral program Internet focused marketing Rental program Third party relationships Relationships with Manufacturers Obtain value priced product that is aesthetically pleasing
Slide 15: RV Resorts
RV Resorts (1) Annual/Seasonal Sites = 30,000 Transient Sites = 9,000 Thousand Trails Sites = 24,000 24,000 sites; 108,000 members Roughly 13,000 implied excess sites (less than 5 to 1 ratio) Industry standard ratio = 10 to 1 Note: 1) Excludes joint venture sites.
Slide 16: Steady, Predictable Revenue Streams
Steady, Predictable Revenue Streams Property Revenue Buckets (1) All Annual Revenue = 90.4% $495M Property Operating Revenues Notes: 1) Property revenue buckets reflect the 2009 property operating revenues from the 2010 core properties. See page 21 for the 2009 amounts and the definition of 2010 cor
Slide 17: Financials
_EauityLitestye Properties | ty LifeStyle Properties Financials ey 7
Slide 18: Total Market Capitalization
Total Market Capitalization IPO - March 1993 March 31, 2010 Market Capitalization $193 million $ 1.8 billion (1) Preferred Units - $200 million Mortgage Notes $103 million $1.5 billion Unsecured Notes - - Total Market Capitalization $296 million $3.5 billion Note: Utilizes $53.88 closing stock price
Slide 19: REIT Industry Same Store NOI Growth
REIT Industry Same Store NOI Growth Note: Source: Citi Investment Research, May 2010.
Slide 20: Track Record
Track Record 1993 2009 FFO Per Share (1) $1.11 $3.58 Stock Price Performance (2) $12.88 $50.47 Dividend Paid Cumulative (3) $26.19 Total Return (4) 827% Notes: 1) See page 24 for definition of FFO. 2) The 1993 stock price is split-adjusted; the 2009 price is the closing price as of December 31, 2009
Slide 21: 2010 Budget Assumptions
2010 Budget Assumptions Income From Property Operations (In Millions) Property Operations (excluding Property management): 2009 (1) 2010 Growth Factor (2) Community Base Rental Income $253.3 Resort Base Rental Income Right to Use Annual Payments Right to Use Contracts (3) 122.0 50.8 21.5 Utility and
Slide 22: 2010 Budget Selected Financial Data
2010 Budget Selected Financial Data (In Millions; except per share data) Notes: 1) Based on Company's estimate. 2) Excludes property management expenses and excludes the GAAP deferrals of right to use contract sales and related commissions. 3) See page 24 for definition of FFO. 4) Due to the uncerta
Slide 23: Core Occupancy & Growth Rates
Core Occupancy & Growth Rates MH occupancy as of May 2010 YTD Down 65 sites compared to December 31, 2009 May 2010 YTD as compared to May 2009 YTD: MH base revenue growth is up 1.9% Resort base revenue growth is up 2.7% Right-to-use annual payments 2010 budget is 78% earned or prepaid as of May 2010
Slide 24: Non GAAP Financial Measures
Non GAAP Financial Measures Funds from Operations ("FFO"), is a non-GAAP financial measure. We believe 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 REIT. While
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