Equity Lifestyle Properties, Inc. · NYSE:ELS
Equity Lifestyle Properties — Investor Presentation (February 2024)
44 slides from Equity Lifestyle Properties's investor presentation, Feb 29, 2024
Slide 1: Investor Presentation February 2024
Investor Presentation February 2024
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 4,000 Employees S&P 400 Member 6,866% Total Return since IPO(1) • 1,895% S&P 500 • 1,514% Dow
Slide 3: ELS at a Glance
3 ELS at a Glance 8.6% NFFO/Share CAGR (2006 - 2023)(2)(3) $1.3B Core Annual Revenue (2023)(1) $1.91 Annualized Dividend per Common Share (2024) 21% Dividend/Share CAGR (2006 - 2023)(3) 4.4% Avg Long-Term Core NOI Growth(4) 2.8% Dividend Yield(5) 18% % of Debt that is Fully Amortizing 3.7% Weighted
Slide 4: Recent Highlights
4 Notes: (1) Compared to comparable period in 2023. (2) The factors that affected our results for January QTD 2024 may not continue and therefore, our results for that period may not be indicative of our results for the full quarter or year. (3) Excludes joint venture properties. (4) Core Portfolio
Slide 5: 2024 Guidance
5 Notes: (1) Full year 2024 guidance represent management’s estimate of a range of possible outcomes. The midpoint of the ranges reflect management’s estimate of the most likely outcome. Actual results could vary materially from management’s estimates presented above if any of our assumptions, inclu
Slide 6: Investment Thesis
6 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 qualified or have a resi
Slide 7: Track Record
7 Long-term total returns that outperform the market Track Record Notes: (1) See Non-GAAP Financial Measures on pages 41-43 for the reconciliation and definition of FFO and Normalized FFO. The 1993 amount was determined from amounts presented in the 1996 Form 10-K. (2) The 1993 stock price is adjust
Slide 8: Dividend and NFFO Growth
8 Dividend and NFFO Growth Note: See Non-GAAP Financial Measures on pages 41-43 for the reconciliation and definition of Normalized FFO. Adjusted for stock splits. Time-tested through real estate cycles Dividend / Share NFFO / Share NFFO / Share CAGR 9%Dividend / Share CAGR 21% $- $0.50 $1.00 $1.50
Slide 9: Property Locations
ELS owns and operates 451 properties in North America with a focus on high-quality coastal and sunbelt retirement and vacation destinations and urban areas Source: S&P Global California 11% of Total Properties Arizona 10% of Total Properties Florida 34% of Total Properties Projected Population Growt
Slide 10: Property Locations: MH Communities
10 Property Locations The MH portfolio focuses on age-qualified communities in retirement destinations where our residents can be part of an active lifestyle • 75,000 sites 203 MH COMMUNITIES MH Note: Property and site counts presented as of December 31, 2023.
Slide 11: Property Locations: RV Resorts
11 Property Locations The RV portfolio has over 200 resorts and campgrounds spread along the coast and in vacation destinations packed with family-friendly amenities and activities 225 RV RESORTS • 90,600 sites – Annual 34,900 – Seasonal 12,500 – Transient 17,200 – Membership sites 26,000 RV Note: P
Slide 12: Property Locations: Marinas
12 Property 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 December 31, 2023.
Slide 13: Unique Business Model
13 Drives sustained long-term outperformance Unique Business Model Note: Source for Same Store NOI data: Citi Investment Research, September 2023. Earliest quarter collected by Citi is third quarter of 1998. Data through third quarter of 2023. “REIT Industry” includes an index of REITs across a vari
Slide 14: Capital Expenditures
14 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) $0 $10,000 $30,000 $50,000 $70,000 $90,000 $20,000 $40,000 $60,000 $80,000 $100,000 $110
Slide 15: Demand Drivers: Unique Demographics
15 Unique customer demographics driven by baby boomers and a strong tailwind from future generations Demand Drivers – Unique Demographics • The population of people aged 55 and older in the U.S. is expected to grow 15% from 2024 to 2039 • Roughly 10,000 people will turn 65 every day for the foreseea
Slide 16: Domestic Migration Patterns
16 Domestic Migration Patterns Florida Arizona Texas North Carolina Georgia South Carolina Tennessee Nevada Oregon Idaho 0 20,000 40,000 60,000 80,000 100,000 120,000 Migration of Population Aged 65 & Over Positive new domestic migration Negative new domestic migration Dot = 100 people Source: “Dome
Slide 17: Demand Drivers: Value Proposition
17 Avg Sales Price – New Single Family Home (“SFH”) vs New Manufactured Home(1) Buying a new MH vs Financing a new SFH(1) Demand Drivers – Value Proposition Whether buying or renting, manufactured homes provide greater value as compared to other housing options ELS renters pay approximately 20-25% l
Slide 18: Demand Drivers: Lifestyle and Amenities
Title 18 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 19: Demand Drivers: Ways to Stay
Title 19 We offer our residents and guests unique ways to stay at our communities and resorts Demand Drivers – Ways to Stay Vacation Homes Manufactured Homes RV Sites Tiny Homes Cabins & Cottages
Slide 20: Supply Constrained Asset Class
20 N um be r o f M H D ev el op m en ts Year 0 20 40 60 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 s
Slide 21: Steady, Predictable Revenue Streams
21 Annual MH 62.0% Annual RV & Marinas 21.9% Annual Membership 6.0% Transient 5.7% Seasonal 4.4% Steady, Predictable Revenue Streams from High-Quality Occupancy Since the housing crisis of 2008-12, ELS has steadily reduced the number of renters in our MH portfolio and increased homeowners. Renters t
Slide 22: Property Operations
22 Best-in-class property operations platform drives consistent rate and occupancy increases Property Operations 51% of MH Communities are98%+ Occupied Notes: (1) Components of MH rate: 25% is linked to CPI, 25% is linked to long-term agreements, and 50% is determined by market conditions. (2) Impac
Slide 23: MH Rate Growth vs COLA
23 Affordable Housing(1) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Core MH Rate Growth % COLA Growth % Historical MH Growth Rate COLA averaged 2.6% ELS averaged 4.0%
Slide 24: Property Operations: Thousand Trails
24 Property Operations Thousand Trails Upgrade Sales 29% of members have been with Thousand Trails for at least 20 years Thousand Trails Total Member Count (in thousands) Thousand Trails Revenue (in millions) Note: All data as of December 31, 2023. 90 2018 2023 95 100 105 110 115 120 125 21% Thousan
Slide 25: 2023 Core Property Operating Expense
25 2023 Core Property Operating Expense(1) 21% 27% 16% 18% 14% 4% Property Operating Expenses Utilities Expense Payroll R&M Insurance, Admin, & Other (3) Real Estate Taxes Sales and Marketing Utility Recovery Rate is approximately 45% of Utility Expense Approximately 65% of Core Property Operating E
Slide 26: Stability through Economic Cycles
26 Stability through Economic Cycles Historical Core Portfolio Growth Rate against CPI (1)(2) Notes: (1) Historical performance is based on the core portfolio as of the reported year. The Core Portfolio may change from time-to-time depending on acquisitions, dispositions and significant transactions
Slide 27: Technology and Innovation
27 Technology and Innovation Utilizing the latest technology to drive operational efficiencies Online Check-in Solar PanelsSmart Meters Prop Tech Online Apps Cashless TransactionsTech Investments BOTS Digital Signature Sign Here Orlando RV Resort & Campground Clermont, FL Wilderness Lakes RV Campgro
Slide 28: Digital Marketing Strategy – Social Media
28 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 existing and potential customers. These interactions build brand awareness and help drive sales a
Slide 29: Digital Marketing Strategy – Home Sales Model
29 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 Home listings with virtual tours are 5.6x more likely to convert
Slide 30: Digital Marketing Strategy – Online Check-In
30 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 31: Digital Marketing Strategy – Online Travel Partners
31 Digital Marketing Strategy – Online Travel Partners Building brand awareness and expanding reach to new customers through strategic partnerships 16 HALL OF FAME INDUCTEES 49 TRAVELERS' CHOICE AWARDS is a 2023 Travelers’ Choice Award Winner 2023 2023 Thousand Trails Orlando – Clermont, FL
Slide 32: Balance sheet strategy supports long-term growth
32 Mortgage Debt $3,017 17.4% OPUs(2) $642 3.7% Line of Credit $31 0.2% Term Loan $500 2.9% Common(2) $13,151 75.8% Balance sheet strategy supports long-term growth As of December 31, 2023, unless otherwise specified (in millions) • Total enterprise value is $17.3 billion • $500 million line of cred
Slide 33: Debt Strategy – Refinance Risk Mitigation
33 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0 2 4 6 8 10 ELS 12 14 W ei gh te d A ve ra ge In te re st R at e Weighted Average Term to Maturity Debt Maturity through 2026(3) Debt Strategy – Refinance Risk Mitigation Weighted average term to maturity is significantly longer than the REIT average(1) Weighte
Slide 34: 10-Year Dividend CAGR and Total Return CAGR
34 -10% -5% 0% 5% 10% 15% 20% 25% -10% -5% 0% 5% 10% 15% 20% 25% To ta l R et ur n C A G R Dividend CAGR ELS Dividend Dividend Growth 10-year CAGR • ELS 13.6%(1) • REIT Average 5.5%(2) Notes: (1) Compound annual growth rate through 2023. (2) Source: S&P Global: Includes all publicly traded U.S. Equi
Slide 35: Acquisitions
35 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 2019 2020 2022 20232021 Over $1.3 Billion Invested in New Acquisitions Since 2
Slide 36: Expansions
Voyager - AZ Dolce Vita - AZ Scenic - NC White Oak Shores -NC Topsail Sound -NC Buccaneer Estates - FL Clover Leaf - FL Sherwood Forest - FL Coquina Crossing - FL Tranquility Lakes - FL Terra Ceia - FL Sunshine Travel - FL Lake Texoma - TX Sandusky RV - OH Expansions maximize returns by increasing t
Slide 37: ESG – Environmental
37 ESG – Environmental WINNER OF 2023 LEADERSHIP IN SUSTAINABILITY AWARD FROM THE MANUFACTURED HOUSING INSTITUTE INVESTED $16 MILLION IN SUSTAINABILITY INITIATIVES OUR APPROXIMATELY 9,700 ACRES OF FORESTS SEQUESTER OVER 8,000 MT CO2E ANNUALLY PRODUCED OVER 405,000 KILOWATT- HOURS (KWH) OF RENEWABLE
Slide 38: ESG – Social
38 ESG – Social Note: To download our Environmental Performance Report and our 2022 Sustainability Report, please visit www.equitylifestyleproperties.com/sustainability. SPOTLIGHT: DIVERSITY, EQUITY AND INCLUSION AT ELS SIGNED EXPANDED DEI-RELATED LEARNING CURRICULUM RECRUITMENT AND DEVELOPMENT EFFO
Slide 39: ESG – Governance
39 Note: To download our Environmental Performance Report and our 2022 Sustainability Report please, visit www.equitylifestyleproperties.com/sustainability. At ELS, sustainability is embedded in all aspects of the Company. With a dedicated Sustainability team, we are committed to incorporating ESG p
Slide 40: Experienced Executive Management Team
Long-tenure leadership in the MH, RV, and marina industry Experienced Executive Management Team Marguerite Nader President and CEO 30 Years 40 Paul Seavey EVP and CFO 29 Years Patrick Waite EVP and COO 30 Years David Eldersveld EVP, CLO and Secretary 8 Years Larisa Drake EVP, CMO and Sales 10 Years
Slide 41: Forward-Looking Statement
41 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 42: Non-GAAP Financial Measures
42 Non-GAAP Financial Measures This presentation contains certain Non-GAAP measures that in management’s view of the business are meaningful as they allow investors the ability to understand key operating details of our business that may not always be indicative of recurring annual cash flow of the
Slide 43: Non-GAAP Financial Measures (Continued)
43 Non-GAAP Financial Measures (Continued) Consolidated Net Income to EBITDAre and Adjusted EBITDAre Reconciliations (in millions) INCOME FROM PROPERTY OPERATIONS, EXCLUDING PROPERTY MANAGEMENT. Income from property operations, excluding property management, represents rental income, membership subs
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