els equity lifestyle properties sept 2010 presentation slides deck

8/8/2019 ELS Equity LifeStyle Properties Sept 2010 Presentation Slides Deck

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Investor PresentationSeptember 28, 2010

ELSELS


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ELS Overview

One of the nations largest real estate networks with approximately 300 propertiescontainin almost 111,000 sites in 27 states and British Columbia

ELS has a unique business model:

ELS owns the land

Customers own the units they place on the sites

ELS site composition

46,000 manufactured or resort home sites

41,000 public RV sites for resort cottages (park models) and recreational vehicles

24,000 right to use sites

ELSs rent position is prime

Over 1,000,000 customer contacts

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ELS Business Expansion (2003 Current)

Number of SitesNumber of Properties

160

90.1%

56.0%

44.0%60,000

80,000

58.8%

128

135

172

80

44,

900

45,

700

65,

300

20,000

40,000

83.7%

16.3%

41.2%

14

0

2003 Current

9.9%

8,

800

-

2003 Current

= MH = RV (LifeStyle)

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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

Favorable Customer Demographics

Active adults and RV owners / Outdoor enthusiasts

Product Flexibility

Own, rent, flexible use or right to use

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ELS Current Property Locations

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Real Estate

Primary investment is land/appreciating component of real estate Lower maintenance costs/customer turnover costs

High quality real estate

a or me ros g grow areas

High barriers to entry

Retirement and vacation destinations

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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 ofeach ELS resort (2)

The t ical RV owner is a e 49 married owns a home and has an annual

household income of $68,000 (1)

44M Camping Participants in 2009 (3)

63% of camping participants have household incomes above 49,999

Notes:

1) Sources: University of Michigans Survey Research Center, 2005.

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2) Sources: Acxiom 2009.3) Sources: A Special Report on Camping (a partnership project of: Coleman and Outdoor Foundation), 2010.


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Customer Discovery (1)

Transient RV Customer

36-55, married, kids, home owner

Right to Use RV and Seasonal RV Customer

- , , ,

Annual RV and MH Customer

66-75 married em t nester home owner

As our customers enter later life stages they tendto fall into our more stable customer buckets

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Note:1) Source: Acxiom 2008.


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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 Own 57% of all vacation and seasonal homes (2)

retirement (2)

86% would like to retire in the Northeast, South, or West (2)

Notes:

1) Sources: U.S. Census Bureau, 2008.

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2) Sources: Harris Interactive for the National Association of Realtors, 2006.3) Baby boomers are a U.S. generation born between 1946 and 1964.


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Customer Demographics

80

U.S. Population Over Age of 55 (1)

(in millions)

Customer Retention Strategy

Lifestyle focus

60

70

AGE

Amenities / social activities

Communities

Attractive housing

40

50 70 to 74

65 to 69

60 to 64

55 to 59

High quality

Low capital commitment

Easy maintenance

10

20

ong erm u - ase e a ons p

Camping RV Cottage Resort Home

Flexible use to multi-use / locations

2010 2015 2020

Notes:

Long term relationship creates stable and predictable cashflows

111) Sources: U.S. Census Bureau, 2008.


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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

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, , ,

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Resort Homes

46,000 sites (approx. 4,000 vacant)

Marketing Initiatives

Customer referral program

Rental program

Third party relationships

Relationships with Manufacturers

Obtain value priced product that isaes e ca y p eas ng

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RV Resorts (1)

Annual/Seasonal Sites = 30,000

Transient Sites = 10,000

ousan ra s es = ,

24,000 sites; 108,000 members

Roughly 13,000 implied excesssites (less than 5 to 1 ratio)

Industry standard ratio = 10 to 1

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Note:1) Excludes joint venture sites.


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Steady, Predictable Revenue Streams

Seasonal

Transient

Property Revenue Buckets (1) Extensive Customer Pool (2)

Utility & Other

Annual MHAnnual Right to Use 51.2%14.6%

9.6%

Annual RV

15.0%

All Annual Revenue = 90.4%$495M Property Operating Revenues

Notes:

ELS only needs a small percentage of thiscustomer pool to feed its revenue streams

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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 core properties.2) Sources: University of Michigans Survey Research Center 2005, Acxiom 2009, Statistical Surveys, US Census 2006.


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Financials

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Total Market Capitalization

IPO March 1993 June 30, 2010

Market Capitalization $193 million $ 1.7 billion (1)

Preferred Units - $200 million

.

Unsecured Notes - -

Total Market Capitalization $296 million $3.4 billion

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Note:1) Utilizes $48.23 closing stock price at June 30, 2010, fully diluted.


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REIT Industry Same Store NOI Growth

8.0%8.5%

9.0%9.5%

10.0%

4.5%5.0%5.5%6.0%6.5%7.0%7.5%

1.0%1.5%2.0%2.5%3.0%3.5%

.

-3.0%-2.5%-2.0%

-1.5%-1.0%-0.5%0.0%

.

3Q98

4Q98

1Q99

2Q99

3Q99

4Q99

1Q00

2Q00

3Q00

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

-3.5%REIT Industry ELS Industry Average - 2.3% ELS Average - 3.9%

19Note:Source: Citi Investment Research, September 2010.


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Track Record

1993 2010

FFO Per Share (1) $1.11 $3.55

(2)

Dividend Paid Cumulative (3) $27.09

Total Return (4) 861%

Notes:

1) See page 24 for definition of FFO. 2010 amount is the mid-point of the estimated 2010 FFO per share disclosed in the July 19, 2010 press release.2) The 1993 stock price is split-adjusted; the 2010 price is the closing price as of August 31, 2010.

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3) Source: SNL Financial. Includes dividends paid from IPO through August 31, 2010.4) Source: SNL Financial from IPO through August 31, 2010 (calculation assumes dividend reinvestment).


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2010 Budget AssumptionsIncome From Property Operations (In Millions)

Property Operations (excluding

2009 (1) 2010 Growth Factor (2)

Community Base Rental Income $253.3

Resort Base Rental Income 122.0

Right to Use Annual PaymentsRight to Use Contracts (3)

50.821.5

Utilit and Other Income 47.4__________

Property Operating Revenues (3) $495.0

Property Operating Expenses (4) (224.0)___________

Income from Property Operations $271.0 1.5 2.0%==========

Notes:

1) Companys 2009 income from property operations for the 2010 core properties. 2010 Core properties include properties we expect to own and operate during all of 2009 and 2010.2 Com an s estimate of the rowth of the 2010 Core in 2010 com ared to 2009 erformance.

213) Excludes the GAAP deferral of the 2009 right to use contract sales and the amortization of prior period sales.4) Excludes the GAAP deferral of the 2009 commissions on right to use contract sales and the amortization of prior period commissions.


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2010 BudgetSelected Financial Data (In Millions; except per share data)

2010 Budget (1)

$276Income from Property Operations 2010 Core(2)

1

(56)

12

(107)

Income from Property Operations Non-Core (2)

Property Management and corporate general and administrative expenses

Other Income and Expenses

Financing Costs and Other

126

(69)

(11)

(6)

Funds from Operations (FFO) (3)

Depreciation on Real Estate and Other

Deferral of right-to-use contract sales revenue and commission, net (4)

Income Allocated to Common OP Units

$40

$1.23 - $1.33

3.50 - 3.60

Net Income Available to Common Shares (4)

Net Income Per Common Share Fully Diluted

FFO Per Share Fully Diluted

Notes:

1) Based on Companys estimate.2 Excludes ro ert mana ement ex enses and excludes the GAAPdeferralsof ri ht to use contract sales and related commissions

35.5Weighted Average Fully Diluted Shares Outstanding

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.

3) See page 24 for definition of FFO.4) Due to the uncertain timing and extent of right to use sales and the resulting deferrals, actual income could differ materially from expected net income.


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Core Occupancy & Growth Rates

MH occupancy as of August 2010 YTD

Up 56 sites compared to December 31, 2009

ugus as compare o ugus :

MH base revenue growth is up 2.2%

Resort base revenue rowth is u 3.0%

Right-to-use annual payments

2010 budget is 93% earned or prepaid as of August 2010 YTD (comparable toAugust 2009 YTD)

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els equity lifestyle properties sept 2010 presentation slides deck

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