Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - EQUITY LIFESTYLE PROPERTIES INC | c65500e8vk.htm |
| EX-99.1 - EX-99.1 - EQUITY LIFESTYLE PROPERTIES INC | c65500exv99w1.htm |
Exhibit 99.2
| Coquina Crossing — near St. Augustine, FL Breezy Hill — West Palm Beach Area, FL |
| Equity LifeStyle Properties, Inc. Two North Riverside Plaza |
| Chicago, IL 60606 www.EquityLifeStyle.com |
| Equity LifeStyle Properties, Inc. 2 |
| Overview |
| The Company |
| Equity LifeStyle Properties, Inc. (“ELS”, “we”, ‘us”, “our” or the Maryland corporation to continue the property operations, business |
| and operated properties since 1969. We have been a public company investment trust, or a REIT, for U.S. federal income tax purposes commencing |
| We are a fully integrated owner and operator of lifestyle-oriented areas, or sites, with access to utilities for placement of factory |
| Customers may lease individual sites or enter right-to-use contracts stays. As of July 18, 2011, we owned or had an ownership interest |
| States and Canada containing 123,065 residential sites. These Properties This Supplemental Package was prepared to provide (1) certain |
| ended June 30, 2011 and 2010, (2) details of the Company’s guidance about the Acquisition. |
| On May 31, 2011, through our operating partnership, we manufactured home communities (the “Acquisition Properties”) containing |
| states and certain manufactured homes and loans secured by manufactured purchase price of $1.43 billion (the “Acquisition”). |
| On July 1, 2011, we closed on 35 Acquisition Properties and October 1, 2011. Please refer to pages 17 — 19 of this supplemental |
| of the Acquisition. Additional details on the Acquisition can be found 2011 and July 1, 2011. |
| Certain statements made within this Supplemental Package meaning of the Private Securities Litigation Reform Act of 1995. When |
| “intend,” “may be” and “will be” and similar words or phrases, or intended to identify forward-looking statements and may include, |
| expectations, goals or intentions regarding the future, statements Acquisition and the expected effect of the Acquisition on the Company |
| assumptions, risks and uncertainties, including, but not limited to: — the Company’s ability to control costs, real estate market conditions, |
| sites by customers and its success in acquiring new customers — the Company’s ability to maintain historical rental rates and |
| Company may acquire; — the Company’s assumptions about rental and home sales |
| — the Company’s assumptions and guidance concerning 2011 — in the age-qualified Properties, home sales results could |
| existing residences as well as by financial, credit and capital — results from home sales and occupancy will continue to |
| manufactured home financing and competition from alternative — impact of government intervention to stabilize site-built single |
| — the completion of the Acquisition in its entirety and future acquisitions, thereto and the Company’s estimates regarding the future |
| — the Company’s inability to secure the contemplated debt Acquisition on favorable terms or at all and the timing with |
| — unanticipated costs or unforeseen liabilities associated with — ability to obtain financing or refinance existing debt on favorable |
| — the effect of interest rates; — the dilutive effects of issuing additional securities; |
| — the effect of accounting for the sale of agreements to Codification Topic “Revenue Recognition;” and |
| — other risks indicated from time to time in the Company’s filings These forward-looking statements are based on management’s |
| any projection or forecast, these statements are inherently susceptible under no obligation to, and expressly disclaims any obligation to, update |
| such changes, new information, subsequent events or otherwise. “Company”) (NYSE:ELS) was formed in December 1992 as a |
| objectives and acquisition strategies of an entity that had owned since 1993 and have elected to be taxed as a real estate |
| with our taxable year ended December 31, 1993. properties (“Properties”). We lease individual developed |
| factory-built homes, cottages, cabins or recreational vehicles (“RVs”). providing the customer access to specific Properties for limited |
| in a portfolio of 342 Properties located throughout the United are located in 30 states and British Columbia. |
| operational information about the Company for the periods assumptions for the remainder of 2011 and (3) information |
| entered into purchase agreements to acquire a portfolio of 76 31,167 sites on approximately 6,500 acres located in 16 |
| homes located at the Acquisition Properties for a stated expect to close on the remainder of the Acquisition on or before |
| package for details on the conditions to closing on the remainder in the Company’s Current Reports on Form 8-K filed May 31, |
| may include certain “forward-looking statements” within the used, words such as “anticipate,” “expect,” “believe,” “project,” |
| the negative thereof, unless the context requires otherwise, are without limitation, information regarding the Company’s |
| regarding the anticipated closing of the Company’s pending Company. These forward-looking statements are subject to numerous |
| the actual rate of decline in customers, the actual use of at its Properties (including those that it may acquire); |
| occupancy with respect to Properties currently owned or that the markets; |
| estimated net income and funds from operations; be impacted by the ability of potential homebuyers to sell their |
| markets volatility; be impacted by local economic conditions, lack of affordable |
| housing options, including site-built single-family housing; family housing and not manufactured housing; |
| if any, the timing and effective integration with respect performance of the Acquisition Properties; |
| financings to fund a portion of the stated purchase price of the respect thereto; |
| the Acquisition; terms or at all; |
| customers representing a right-to-use the Properties under the with the Securities and Exchange Commission. |
| present expectations and beliefs about future events. As with to uncertainty and changes in circumstances. The Company is |
| or alter its forward-looking statements whether as a result of |
| Equity LifeStyle Properties, Inc. 3 |
| Table of Contents |
| Quarters and Six Months Ended June 30, 2011 and 2010 |
| Consolidated Income from Property Operations Core Income from Property Operations |
| Income from Rental Operations |
| Guidance |
| 2011 Guidance 2011 Core Guidance Assumptions |
| Third Quarter 2011 Guidance Fourth Quarter 2011 Guidance |
| Core Growth Assumptions — Second Half of 2011 2011 Acquisition Assumptions |
| Other |
| 2011 As If the Acquisition Occurred on January 1, 2011 2011 Acquisition Properties — Income from Property Operations |
| 2011 Acquisition Properties Non—GAAP Financial Measures |
| Page |
| 4 5 |
| 6 7 |
| 8 9 |
| 10 11 |
| 12 14 |
| 16 17 |
| 20 |
| Equity LifeStyle Properties, Inc. 4 |
| Consolidated Income from Property Operations 1) See July 18, 2011 ELS press release for a complete Consolidated |
| Company includes in property operating revenues are also Operations. Property operating expenses above include the |
| taxes and sales and marketing, gross that each appear on 2) Resort base rental income is comprised of the following (in |
| (In $US Millions) Quarter Ended |
| 30-Jun-11 Community base rental income $66.4 |
| Resort base rental income (2) 29.3 Right-to-use annual payments 12.6 |
| Right-to-use contracts current period, gross 4.9 Utility and other income 12.4 |
| Property operating revenues 125.6 Property operating expenses 58.9 |
| Income from property operations $66.7 Quarter Ended |
| 30-Jun-11 Annual $20.7 |
| Seasonal 2.6 Transient 6.0 |
| (1) Statement of Operations. The line items that the |
| individually included in our Consolidated Statement of captions property operating and maintenance, real estate |
| our Consolidated Statement of Operations. millions): |
| Quarter Ended Six Months Ended Six Months Ended 30-Jun-10 30-Jun-11 30-Jun-10 |
| $64.6 $132.6 $129.0 28.5 65.7 65.4 |
| 12.9 24.6 25.1 5.7 8.7 10.6 |
| 11.9 25.5 24.9 123.6 257.1 255.0 |
| 58.9 113.5 113.9 $64.7 $143.6 $141.1 |
| Quarter Ended Six Months Ended Six Months Ended 30-Jun-10 30-Jun-11 30-Jun-10 |
| $19.8 $41.0 $39.3 2.5 14.2 15.0 |
| 6.2 10.5 11.1 |
| Equity LifeStyle Properties, Inc. 5 |
| Core (1) Income from Property Operations 1) 2011 Core properties include properties we expect to own |
| management expenses and the GAAP deferral of right to use 2) Calculations prepared using unrounded numbers. |
| 3) Resort base rental income is comprised of the following (in 4) Excluding right-to-use contracts, property operating revenues |
| six months ended June 30, 2011, respectively. The reduction Company’s introduction of low-cost membership products in |
| higher initial upfront payments. Most of the right-to-use memberships. |
| 5) Excluding sales and marketing expenses, property operating quarter and six months ended June 30, 2011, respectively |
| reduced commissions as a result of reduced high-cost right (In $US Millions) |
| Quarter Ended Quarter Ended 30-Jun-11 30-Jun |
| Community base rental income $66.4 $64.6 Resort base rental income (3) 29.1 |
| Right-to-use annual payments 12.6 Right-to-use contracts current period, gross 4.9 |
| Utility and other income 12.4 Property operating revenues (4) 125.4 |
| Property operating expenses (5) 58.5 Income from property operations $66.9 $64.7 |
| Quarter Ended Quarter Ended 30-Jun-11 30-Jun |
| Annual $20.6 $19.8 Seasonal 2.5 |
| Transient 6.0 and operate during all of 2010 and 2011. Excludes property |
| contract upfront payments and related commissions, net. millions): |
| would have increased 2.3% and 1.5% for the quarter and in entry of right-to-use contracts in 2011 is due to the |
| the spring of 2010 and the phase-out of memberships with contract revenue in 2011 is from upgrades of existing |
| expenses would have increased 0.3% and 0.5% for the respectively. The decrease in sales and marketing expenses is due to |
| right-to-use contracts activity described in footnote (4) above. % Six Months Ended Six Months Ended % |
| Jun-10 Change (2) 30-Jun-11 30-Jun-10 Change (2) 2.8% $132.6 $129.0 2.8% |
| 28.5 2.3% 65.5 65.4 0.1% 12.9 -2.5% 24.5 25.1 -2.3% |
| 5.7 -14.5% 8.7 10.6 -18.0% 11.9 4.5% 25.5 24.8 2.7% |
| 123.6 1.5% 256.8 254.9 0.7% 58.9 -0.6% 112.9 113.8 -0.9% |
| 3.4% $143.9 $141.1 2.0% |
| Equity LifeStyle Properties, Inc. 6 |
| Income from Rental Operations 1) For the quarter and six months ended June 30, 2011, approximately |
| included in Community base rental income in the Income and six months ended June 30, 2010, approximately |
| Community base rental income in the Consolidated remainder of the Income from rental operations activity is |
| our Consolidated Statement of Operations. (In $US Millions) |
| Quarter Ended |
| 30-Jun Manufactured homes: |
| New Home $2.9 Used Home |
| Rental operations revenues (1) Rental operations expense |
| Depreciation Income from rental operations $4.9 |
| Net basis in new manufactured home rental units as of: $65.7 Net basis in used manufactured home rental units as of: $24.7 |
| Number of occupied rentals — new, end of period Number of occupied rentals — used, end of period |
| $5.1 million and $9.8 million, respectively, are from Property Operations table on page 4. For the quarter |
| $3.6 million and $7.0 million, respectively, are included in Income from Property Operations table on page 4. The |
| included in the caption “Ancillary services revenues, net” on |
| Equity LifeStyle Properties, Inc. 7 |
| 2011 Guidance — Selected Financial Data The Company’s guidance acknowledges the existence of volatile |
| guidance assumptions. Factors impacting 2011 guidance include, within the portfolio; (ii) yield management on our short-term resort |
| community and resort sites; (iv) scheduled or implemented rate (v) occupancy changes; (vi) our ability to retain and attract |
| completion of the Acquisition in its entirety and on the schedule financing to fund the Acquisition, (ix) transaction costs associated |
| operate the Acquisition Properties in accordance with our estimates 1) Each line item represents the mid-point of a range of possible |
| the most likely outcome. The first six months of the ELS FFO per share, Net Income and Net Income per share could |
| our assumptions are incorrect. 2) See page 8 for Core growth assumptions. Amount represents |
| million multiplied by an estimated growth rate of 3.1%. 3) 2011 acquisitions guidance makes certain assumptions about |
| approvals and the closing of new mortgage financing. There actual timing. See page 12 for 2011 Acquisition assumptions |
| 4) See page 20 for definition of FFO. 5) Due to the uncertain timing and extent of right to use upfront |
| could differ materially from expected net income. 6) Estimate includes all common shares and Series B preferred |
| 1,425,517 additional common shares and 1,453,793 additional October 1, 2011. The timing of the share issuances are |
| page 17 for the timing of anticipated closings and the status 7) Amount represents the Company’s estimate of costs for the |
| debt defeasance costs, $2.0 million of transfer tax, $3.5 million costs such as title insurance and preparation and review of |
| (In $US Millions, except per share data) Income from Property Operations — 2011 Core (2) |
| Income from Property Operations — Acquisition properties Property Management and general and administrative |
| Other Income and Expenses Financing Costs and Other |
| Funds from Operations (FFO), excluding transaction costs (4) 2011 Acquisition Transaction Costs (7) |
| Funds from Operations (FFO) (4) Depreciation on Real Estate and Other |
| Deferral of right-to-use contract sales revenue and commission (Income) Loss allocated to OP Units and ELS Series B preferred |
| Net Income (Loss) Available to Common Shares (5) Net Income Per Common Share — Fully Diluted |
| FFO Per Share, excluding transaction costs — Fully Diluted FFO Per Share — Fully Diluted |
| Weighted Average Shares Outstanding — Fully Diluted (6) (1) |
| economic conditions, which may impact our current but are not limited to the following: (i) the mix of site usage |
| sites; (iii) scheduled or implemented rate increases on increases of annual payments under right-to-use contracts, |
| customers renewing or entering right-to-use contracts, (vii) assumed, (viii) ability to close on $250 million of secured |
| with the Acquisition, and (x) our ability to integrate and estimates. |
| outcomes and reflects management’s best estimate of 2011 guidance is based on historical results. Actual FFO, |
| vary materially from amounts presented above if any of 2010 Core Income from property operations of $276.3 |
| the timing of the Acquisition, mortgage debt assumption can be no assurances that our estimates will reflect |
| assumptions. payments and the resulting deferrals, actual income |
| shares issued as of July 1, 2011 and assumes Series B preferred shares will be issued on or before |
| dependent on the timing of the Acquisition closings. See of debt assumption closing conditions. |
| Acquisition, including approximately $12 million of seller’s in professional fees and $3.5 million in due diligence |
| reports related to title, survey, zoning and environmental |
| Equity LifeStyle Properties, Inc. 8 |
| 2011 Core (1) Guidance Assumptions 1) 2011 Core properties include properties we expect to |
| property management expenses and the GAAP deferral commissions, net. |
| 2) Management’s estimate of the growth of the 2011 Core the mid-point of a range of possible outcomes. The first |
| 3) Resort base rental income is comprised of the following (In $US Millions) |
| Year ended 12/31/2010 |
| Community Base Rental Income $259.3 Resort Base Rental Income (3) 129.2 |
| Right to Use Annual Payments Right to Use Contracts |
| Utility and Other Income Property Operating Revenues 506.1 |
| Property Operating Expenses (229.8) Income from Property Operations $276.3 |
| Year ended 12/31/2010 |
| Annual $79.8 Seasonal |
| Transient - Income from Property Operations |
| own and operate during all of 2010 and 2011. Excludes of right to use contract upfront payments and related |
| in 2011 compared to actual 2010 performance. Represents six months of growth factors is based on historical results. |
| (in millions): 2011 Growth |
| Factors (2) 2.7% |
| 0.8% 49.8 -1.2% |
| 19.5 -5.8% 48.3 1.9% |
| 1.3% -0.5% |
| 3.1% 2011 Growth |
| Factors (2) 4.0% |
| 21.6 -6.0% |
| 27.8 -3.3% |
| Equity LifeStyle Properties, Inc. 9 |
| Third Quarter 2011 Guidance (In $US Millions, except per share data) |
| Income from Property Operations — 2011 Core (2) Income from Property Operations — Acquisition properties |
| Property Management and general and administrative Other Income and Expenses |
| Financing Costs and Other Funds from Operations (FFO), excluding transaction costs (4) |
| 2011 Acquisition Transaction Costs (7) Funds from Operations (FFO) (4) |
| Depreciation on Real Estate and Other Deferral of right-to-use contract sales revenue and commission |
| (Income) Loss Allocated to OP Units and ELS Series B preferred Net Income (Loss) Available to Common Shares (5) |
| Net Income (Loss) Per Common Share — Basic and Fully Diluted FFO Per Share, excluding transaction costs — Fully Diluted |
| FFO Per Share — Fully Diluted Weighted Average Shares Outstanding — Basic |
| Weighted Average Shares Outstanding — Fully Diluted (6) 1) Each line item represents the mid-point of a range of possible |
| the most likely outcome. Actual FFO, FFO per share, Net amounts presented above if any of our assumptions are |
| 2) See page 11 for 2011 Core growth assumptions. Amount $68.2 million multiplied by an estimated growth rate of 5. |
| 3) 2011 acquisitions guidance makes certain assumptions approvals and the closing of new mortgage financing. There |
| timing. See page 12 for 2011 Acquisition assumptions. 4) See page 20 for definition of FFO. |
| 5) Due to the uncertain timing and extent of right to use upfront differ materially from expected net income. |
| 6) Estimate includes all common shares and Series B preferred additional common shares will be issued during the quarter |
| issuances are dependent on the timing of the Acquisition and the status of debt assumption closing conditions. |
| 7) See footnote (11) on page 15 for details on 2011 estimated our estimate of the costs to be incurred in this quarter based |
| 8) As a result of the estimated Net loss available for Common newly issued shares of Series B Preferred Stock are considered |
| the computation of the Net Loss Per Common Share — Basic The Company’s guidance acknowledges the existence of volatile |
| guidance assumptions. Factors impacting 2011 guidance include, within the portfolio; (ii) yield management on our short-term resort |
| community and resort sites; (iv) scheduled or implemented rate (v) occupancy changes; (vi) our ability to retain and attract |
| completion of the Acquisition in its entirety and on the schedule financing to fund the Acquisition, (ix) transaction costs associated |
| operate the Acquisition Properties in accordance with our estimates - Selected Financial Data (1) |
| ELS 2011 2011 Guidance Acquisitions (3) Total |
| $71.8 $ — $71.8 - 15.1 15.1 |
| (14.5) (1.4) (15.9) 4.0 1.5 5.5 |
| (25.1) (5.2) (30.3) 36.2 10.0 46.2 |
| - (15.7) (15.7) 36.2 (5.7) 30.5 |
| (17.6) (15.4) (33.0) (5) (2.2) — (2.2) |
| (1.7) 2.2 0.5 $14.7 $ (18.9) $ (4.2) |
| (8) $ (0.12) $1.07 |
| $0.71 31.0 7.1 38.1 |
| 35.7 7.3 43.0 outcomes and reflects management’s best estimate of |
| Income and Net Income per share could vary materially from incorrect. |
| represents 2010 Core income from property operations of .4%. |
| about the timing of the Acquisition, mortgage debt assumption can be no assurances that our estimates will reflect actual |
| payments and the resulting deferrals, actual income could shares issued as of July 1, 2011 and assumes 1,155,172 |
| ended September 30, 2011. The timing of the share closings. See page 17 for the timing of anticipated closings |
| transaction costs of $21 million. Amount above represents on the timing of closings expect to occur this quarter. |
| Shares, both the Company’s common OP Units and the anti-dilutive, and therefore both were excluded from |
| and Fully Diluted. economic conditions, which may impact our current |
| but are not limited to the following: (i) the mix of site usage sites; (iii) scheduled or implemented rate increases on |
| increases of annual payments under right-to-use contracts, customers renewing or entering right-to-use contracts, (vii) |
| assumed, (viii) ability to close on $250 million of secured with the Acquisition, and (x) our ability to integrate and |
| estimates. |
| Equity LifeStyle Properties, Inc. 10 |
| Fourth Quarter 2011 Guidance 1) Each line item represents the mid-point of a range of possible |
| the most likely outcome. Actual FFO, FFO per share, Net amounts presented above if any of our assumptions are |
| 2) See page 11 for Core growth assumptions. Amount represents million multiplied by an estimated Core growth rate of 2.8 |
| 3) 2011 acquisitions guidance makes certain assumptions approvals and the closing of new mortgage financing. There |
| timing. See page 12 for 2011 Acquisition assumptions. 4) See page 20 for definition of FFO. |
| 5) Due to the uncertain timing and extent of right to use upfront differ materially from expected net income. |
| 6) Estimate includes all common shares and Series B preferred common shares and 1,453,793 Series B preferred shares |
| The timing of the share issuances are dependent on the of anticipated closings and the status of certain closing conditions, |
| 7) See footnote (11) on page 15 for details on 2011 estimated our estimate of the costs to be incurred in this quarter based |
| 8) As a result of the estimated Net loss available for Common newly issued shares of Series B Preferred Stock are considered |
| the computation of the Net Loss Per Common Share — Basic (In $US Millions, except per share data) |
| Income from Property Operations — 2011 Core (2) Income from Property Operations — Acquisition properties |
| Property Management and general and administrative Other Income and Expenses |
| Financing Costs and Other Funds from Operations (FFO), excluding transaction costs (4) |
| 2011 Acquisition Transaction Costs (7) Funds from Operations (FFO) (4) |
| Depreciation on Real Estate and Other Deferral of right-to-use contract sales revenue and commission |
| (Income) Loss Allocated to OP Units and ELS Series B preferred Net Income (Loss) Available to Common Shares (5) |
| Net Income (Loss) Per Common Share — Basic and Fully Diluted FFO Per Share, excluding transaction costs — Fully Diluted |
| FFO Per Share — Fully Diluted Weighted Average Shares Outstanding — Basic |
| Weighted Average Shares Outstanding — Fully Diluted (6) The Company’s guidance acknowledges the existence of volatile |
| guidance assumptions. Factors impacting 2011 guidance include, within the portfolio; (ii) yield management on our short-term resort |
| community and resort sites; (iv) scheduled or implemented rate (v) occupancy changes; (vi) our ability to retain and attract |
| completion of the Acquisition in its entirety and on the schedule financing to fund the Acquisition, (ix) transaction costs associated |
| operate the Acquisition Properties in accordance with our estimates - Selected Financial Data (1) |
| outcomes and reflects management’s best estimate of Income and Net Income per share could vary materially from |
| incorrect. 2010 Core income from property operations of $67 |
| 8%. about the timing of the Acquisition, mortgage debt assumption |
| can be no assurances that our estimates will reflect actual payments and the resulting deferrals, actual income could |
| shares issued as of July 1, 2011 and assumes 1,425,517 will be issued to Hometown on or before October 1, 2011. |
| timing of the Acquisition closings. See page 17 for the timing such as due diligence and debt assumption. |
| transaction costs of $21 million. Amount above represents on the timing of closings expect to occur this quarter. |
| Shares, both the Company’s common OP Units and the anti-dilutive, and therefore both were excluded from |
| and Fully Diluted |
| Equity LifeStyle Properties, Inc. 11 |
| 2011 Core (1) Growth Assumptions - (In $US Millions) |
| Historical 3Q 2010 |
| 3Q 2011 Growth |
| Factors (2) Community Base Rental Income $65.0 2.8% |
| Resort Base Rental Income (3) 35.8 1.7% Right to Use Annual Payments 12.6 -0.9% |
| Right to Use Contracts 4.6 11.8% Utility and Other Income 12.4 0.9% |
| Property Operating Revenues 130.4 2.3% Property Operating Expenses (62.2) -1.1% |
| Income from Property Operations $68.2 5.4% 1) 2011 Core properties include properties we expect to own |
| property management expenses and the GAAP deferral commissions, net. |
| 2) Management’s estimate of the growth of the 2011 Core in the mid-point of a range of possible outcomes. |
| 3) Resort base rental income is comprised of the following (in Historical 3Q 3Q 2011 Growth Historical 4Q 4Q 2011 Growth |
| 2010 Factors (2) 2010 Annual $20.2 3.7% $20.4 |
| Seasonal 2.3 -5.0% 4.1 Transient 13.3 0.0% 3.4 |
| Income from Property Operations Historical 4Q |
| 2010 4Q 2011 |
| Growth Factors (2) |
| 2nd half ended |
| 12/31/2010 2nd half |
| 2011 Growth |
| Factors (2) $65.3 2.6% $130.3 2.7% |
| 27.9 1.0% 63.7 1.4% 12.2 0.5% 24.8 -0.2% |
| 4.3 5.7% 8.9 8.9% 11.0 0.9% 23.4 0.9% |
| 120.7 2.0% 251.1 2.1% (53.7) 0.9% (115.9) -0.2% |
| $67.0 2.8% $135.2 4.1% and operate during all of 2010 and 2011. Excludes |
| of right to use contract upfront payments and related 2011 compared to actual 2010 performance. Represents |
| millions): 2nd half ended 2nd half 2011 |
| Factors (2) 12/31/2010 Growth Factors (2) 3.8% $40.6 3.7% |
| -5.2% 6.4 -5.1% -7.8% 16.7 -1.6% |
| Equity LifeStyle Properties, Inc. 12 |
| (In $US Millions) Community base rental income |
| Resort base rental income Utility income and other property income |
| Property operating revenues Property operating expenses |
| Income from property operations (2) Property management and general and administrative (3) |
| Other income and expenses (4) Financing costs and other (5) |
| Depreciation on real estate and other (6) (1) |
| Six Months Third Quarter Fourth Quarter Ended |
| 2011 2011 12/31/2011 $21.3 $34.6 $55.9 |
| - 0.2 0.2 2.0 3.0 5.0 |
| 23.3 37.8 61.1 8.2 12.6 20.8 |
| $15.1 $25.2 $40.3 $1.4 $1.8 $3.2 |
| 1.5 2.0 3.5 5.2 10.7 15.9 |
| 15.4 25.9 41.3 2011 Acquisition Assumptions |
| See page 13 for footnotes to this table |
| Equity LifeStyle Properties, Inc. 13 |
| 2011 Acquisition Assumption Footnotes 1) Each line item represents our estimate of the mid-point of |
| also makes certain assumptions about the timing of the closing of new mortgage financing. There can be no assurances |
| 2) Estimates above were based on 2011 budgets provided expenses. Seller’s budgets may not be reflective of the Company’s |
| and amount of actual income from property operations as income from property operations includes 35 Acquisition |
| Properties that we expect to acquire during the third quarter property operations includes 35 Acquisition Properties acquired |
| expect to acquire on or before October 1, 2011. 3) As reported in ELS’ Current Report on Form 8-K filed on |
| incremental property management expenses associated annual incremental general and administrative expenses |
| million for a total of annual incremental overhead cost overhead costs for the quarter ended September 30, 2011 |
| rated for the number and timing of closings expected to overhead costs for the quarter ended December 31, 2011 |
| by four as our guidance assumes we will complete the Acquisition 4) The Company’s Current Report on Form 8-K filed on May |
| certain operating expenses for the Hometown 3-14 Properties 31, 2010. The audited revenues include $8.7 million of |
| located at such properties. Our estimated other income and September 30, 2011 was based on the annual interest income |
| and timing of closings expected to occur during the third to the Acquisition for the quarter ended December 31, |
| divided by four as our guidance assumes we will complete quarters also include some adjustments for anticipated rental |
| statements. 5) Financing Costs and Other assumes (in millions): |
| Interest expense on mortgages assumed before or during the quarter Amortization of note premium on assumed mortgages |
| Interest expense on new secured mortgages funded before or during the quarter 1.1 3.2 Interest expense on $200 million Term Loan funded July 1, 2011 1.7 |
| Amortization of costs to incur or originate debt above Total |
| (6) As reported in ELS’ Current Report on Form 8-K filed depreciation of the acquired real estate of approximately |
| an intangible asset for in-place leases of approximately estate is on a straight-line basis using a 30-year estimated |
| estimated depreciation on real estate and other related to was based on the annual depreciation amount of $104 |
| expected to occur during the third quarter. Our estimated Acquisition portfolio for the quarter ended December 31, |
| divided by four as our guidance assumes we will complete a possible range of outcomes. 2011 acquisition guidance |
| Acquisition, mortgage debt assumption approvals and the that our estimates will be reflected in actual results. |
| to us by the seller and exclude property management accounting policies, which may impact the timing |
| compared to seller’s budgets. Estimated third quarter 2011 Properties acquired July 1, 2011 and 23 Acquisition |
| of 2011. Estimated fourth quarter 2011 income from July 1, 2011 and 41 Acquisition Properties that we |
| May 31, 2011, the Company has estimated that its annual with the Acquisition are approximately $5.8 million and its |
| associated with the Acquisition are approximately $1.6 of approximately $7.4 million. Our estimated incremental |
| was based on the annual amount of $7.4 million and proto occur during the third quarter. Our estimated incremental |
| was based on the annual amount of $7.4 million and divided on or before October 1, 2011. |
| 31, 2011 contains audited statements of revenues and (as defined in such 8-K) for the year ended December |
| interest income from loans secured by manufactured homes expenses related to the Acquisition for the quarter ended |
| amount of $8.7 million and pro-rated for the number quarter. Our estimated other income and expenses related |
| 2011 was based on the annual amount of $8.7 million and the Acquisition on or before October 1, 2011. Both |
| operations activity that was excluded from the audited 3rd Qtr 2011 4th Qtr 2011 |
| $2.9 $7.3 (0.6) (1.8) |
| 1.7 0.1 0.3 |
| $5.2 $10.7 on May 31, 2011, the Company has estimated annual |
| $24 million and estimated annual amortization expenses of $80 million for a total of $104 million. Depreciation of real |
| life and in-place leases are amortized over one year. Our the Acquisition for the quarter ended September 30, 2011 |
| million and pro-rated for the number and timing of closings depreciation on real estate and other related to the |
| , 2011 was based on the annual amount of $104 million and the Acquisition on or before October 1, 2011. |
| Equity LifeStyle Properties, Inc. 14 |
| 2011 As If Acquisition Occurred 1/1/2011 (In $US Millions, except per share data) |
| Income from Property Operations — 2011 Core (2) Income from Property Operations — Acquisition properties (3) |
| Property Management and general and administrative Other Income and Expenses |
| Financing Costs and Other Funds from Operations (FFO), excluding transaction costs (4) |
| 2011 Acquisition Transaction Costs (11) Funds from Operations (FFO) (4) |
| Depreciation on Real Estate and Other Deferral of right-to-use contract sales revenue and commission, net |
| (Income) Loss Allocated to OP Units and ELS Series B preferred Net Income (Loss) Available to Common Shares (5) |
| Net Income (Loss) Per Common Share — Basic and Fully Diluted FFO Per Share, excluding transaction costs — Fully Diluted |
| FFO Per Share — Fully Diluted Weighted Average Shares Outstanding — Basic |
| Weighted Average Shares Outstanding — Fully Diluted (6) See page 15 for footnotes to this table. |
| The Company’s table below and our estimates of the performance the Acquisition on January 1, 2011 acknowledges the existence |
| guidance assumptions. Factors impacting the estimates on the site usage within the portfolio; (ii) yield management on our |
| increases on community and resort sites; (iv) scheduled or implemented contracts, (v) occupancy changes; (vi) our ability to retain and |
| (vii) transaction costs associated with the Acquisition, and (viii) in accordance with our estimates. |
| (1) ELS 2011 2011 |
| Guidance Acquisitions (3) Total $284.7 $ — $284.7 |
| - 101.6 101.6 (56.9) (7.4) (7) (64.3) |
| 10.2 8.4 (8) 18.6 (101.1) (43.5) (9) (144.6) |
| 136.9 59.1 196.0 - (21.0) (21.0) |
| 136.9 38.1 175.0 (70.3) (104.0) (10) (174.3) |
| (5) (7.8) — (7.8) (6.9) 7.8 0.9 |
| $51.9 $ (58.1) $ (6.2) (12) $ (0.18) |
| $4.34 $3.87 |
| 31.0 7.8 38.8 35.7 9.5 45.2 |
| of the 2011 Acquisition “as if” the Company had completed of volatile economic conditions, which may impact ELS 2011 |
| table include, but are not limited to the following: (i) the mix of short-term resort sites; (iii) scheduled or implemented rate |
| rate increases of annual payments under right-to-use attract customers renewing or entering right-to-use contracts, |
| our ability to integrate and operate the Acquisition Properties |
| Equity LifeStyle Properties, Inc. 15 |
| 2011 As If Acquisition Occurred 1/1/2011 Footnotes 1) Each line item represents the mid-point of a range of possible |
| the most likely outcome. The first six months of the ELS FFO per share, Net Income and Net Income per share could |
| our assumptions are incorrect. 2011 Acquisitions column on January 1, 2011. |
| 2) See page 8 for Core growth assumptions. Amount represents million multiplied by an estimated growth rate of 3.1%. |
| 3) Based on annualizing unaudited historical income from ended June 30, 2011 and not reflective of the Company’s |
| 4) See page 20 for definition of FFO. 5) Due to the uncertain timing and extent of right to use |
| materially from expected net income. 6) 2011 Acquisitions column assumes the common stock |
| completed on January 1, 2011 and assumes the issuance Preferred Stock on January 1, 2011 to the seller of the Acquisition |
| 7) As reported in ELS’ Current Report on Form 8-K filed annual incremental property management expenses associated |
| $5.8 million and its annual incremental general and Properties are approximately $1.6 million for a total of |
| million. 8) The Company’s Current Report on Form 8-K filed on May |
| certain operating expenses for the Hometown 3-14 Properties 31, 2010. The audited revenues include $8.7 million of |
| located at these properties. Our estimated “Other Income some adjustments for anticipated rental operations activity |
| 9) Includes $30.0 million of mortgage interest expense related estimated interest expense of approximately $19.4 million |
| obtain and the $200 million Term Loan funded July 1, 2011 assume or originate debt of approximately $1.4 million, |
| premium on mortgages assumed on 34 properties. 10) As reported in ELS’ Current Report on Form 8-K filed |
| depreciation of the acquired real estate of approximately of an intangible asset for in-place leases of approximately |
| line basis using a 30-year estimated life and in-place leases 11) Amount represents the Company’s estimate of costs |
| seller’s debt defeasance costs, $2.0 million of transfer diligence costs such as title insurance and preparation |
| environmental. 12) As a result of the estimated Net loss available for Common |
| newly issued shares of Series B Preferred Stock are considered the computation of the Net Loss Per Common Share — Basic |
| outcomes and reflects managements’ best estimate of 2011 guidance is based on historical results. Actual FFO, |
| vary materially from amounts presented above if any of assumes that the Acquisition was completed in its entirety |
| 2010 Core Income from property operations of $276.3 property operations provided by seller for the six months |
| accounting policies. See page 16. sales and the resulting deferrals, actual income could differ |
| offering completed in June 2011 for 6,037,500 shares was of 1,708,276 common shares and 1,740,000 Series B |
| Properties. on May 31, 2011, the Company has estimated that its |
| with the Acquisition Properties are approximately administrative expenses associated with the Acquisition |
| annual incremental overhead cost of approximately $7.4 31, 2011 contains audited statements of revenues and |
| (as defined in such 8-K) for the year ended December interest income from loans secured by manufactured homes |
| and Expenses” primarily includes this interest income and that was excluded from the audited statements. |
| to the assumed mortgages, the Company’s management on $250 million of secured debt that the Company plans to |
| and related amortization of estimated costs incurred to offset by approximately $7.3 million of amortization of note |
| on May 31, 2011, the Company has estimated annual $24.0 million and estimated annual amortization expenses |
| $80.0 million. Depreciation of real estate is on a straightleases are amortized over one year. |
| for the Acquisition, including approximately $12 million of tax, $3.5 million in professional fees and $3.5 million in due |
| and review of reports related to title, survey, zoning and Shares, both the Company’s common OP Units and the |
| anti-dilutive, and therefore both were excluded from and Fully Diluted. |
| Equity LifeStyle Properties, Inc. 16 |
| 2011 Acquisition Properties — Income from Property Operations 1) All amounts provided by the seller of the Acquisition Properties |
| results of the Acquisition Properties for the six months ended representative of the performance of the Acquisition Properties |
| 2) Acquisition Core includes 73 Acquisition Properties that were 3) Acquisition Non-Core includes two Acquisition Properties |
| acquired in May 2011. (In $US Millions, unaudited) Three Months |
| Ended June 30, 2011 |
| Rental income $34.1 Utility income and other property income |
| Total property operating revenues — Acquisition Core Total property operating expenses — Acquisition Core |
| Income from property operations — Acquisition Core (1) Income from property operations — Acquisition Non-Core |
| (2) Income from property operations — Total $25.4 |
| (1) and exclude property management expenses. Actual |
| June 30, 2011 reported by the seller may not be once acquired by the Company. |
| owned during both periods presented. acquired in January 2011 and one Acquisition Property |
| Three Months Six Months Six Months Ended Ended Ended |
| June 30, 2010 June 30, 2011 June 30, 2010 $33.8 $68.1 $67.8 |
| 3.0 2.9 6.3 6.1 37.1 36.7 74.4 73.9 |
| 12.2 12.0 24.3 24.0 24.9 24.7 50.1 49.9 |
| 0.5 0.0 0.7 0.0 $24.7 $50.8 $ |
| Equity LifeStyle Properties, Inc. 17 |
| 2011 Acquisition Properties The following table sets forth certain information relating to the |
| categorized according to major markets and was provided to Acquisition Properties on July 1, 2011. The accompanying footnotes |
| See page 19 for footnotes to this table. |
| Property Address City |
| Florida |
| Audubon 6565 Beggs Road Orlando Beacon Hill Colony 1112 W. Beacon Road Lakeland |
| Beacon Terrace 2425 Harden Blvd. Lakeland Carefree Village 8000 Sheldon Road Tampa |
| Cheron Village 13222 SW 9th Court Davie Clover Leaf Farms 900 N. Broad Street Brooksville |
| Clover Leaf Forest (2) 900 N. Broad Street Brooksville Colony Cove 101 Amsterdam Ave Ellenton |
| Covington Estates 3400 Glenwick Ct. Saint Cloud Crystal Lakes-Zephyrhills 4604 Lake Crystal Blvd. Zephyrhills |
| Emerald Lake 24300 Airport Road Punta Gorda Featherock 2200 Highway 60 East Valrico |
| Foxwood 4705 NW 20th Street Ocala Haselton Village 14 Coral Street Eustis |
| Heron Cay 1400 90th Avenue Vero Beach Hidden Valley 8950 Polynesian Lane Orlando |
| Kings & Queens 2808 N. Florida Avenue Lakeland Lake Village 400 Lake Drive Nokomis |
| Lake Worth Village 4041 Roberts Way #3 Lake Worth Lakeland Harbor 4747 North Road 33 Lakeland |
| Lakeland Junction 202 E. Griffin Road Lakeland Lakeside Terrace 24 Sunrise Lane Fruitland Park |
| Orange Lake 15840-32 SR 50 Clermont Palm Beach Colony 2000 N. Congress Avenue West Palm Beach |
| Parkwood Communities 414 Springlake Road Wildwood Ridgewood Estates 101 Amsterdam Ave Ellenton |
| Shady Oaks 15777 Bolesta Road Clearwater Shady Village 15777 Bolesta Road Clearwater |
| Starlight Ranch 6000 East Pershing Ave Orlando Tarpon Glen 1038 Sparrow Lane Tarpon Springs |
| Vero Palm 1400 90th Avenue Vero Beach Village Green 7300 20th Street Vero Beach |
| Whispering Pines — Largo 7501 142nd Ave North Largo |
| Florida Total |
| 76 Acquisition Properties as of June 30, 2011. The table is the Company by the seller. The Company closed on 35 |
| are an integral part of the table. |
| State ZIP Acres Sites |
| Annual Site |
| Occupancy |
| as of 6/30/11 |
| Annual |
| Rent |
| as of 6/30/11 |
| Closing |
| Schedule (4) |
| FL 32810 40 280 91.8% 4,668 August 1 (6) FL 33803 31 201 99.0% 4,426 October 1 (7) |
| FL 33803 55 297 99.3% 4,508 August 1 (6) FL 33615 58 406 93.6% 4,674 July 1 (1) |
| FL 33325 30 202 90.1% 8,671 July 1 (1) FL 34601 227 780 96.5% 5,061 October 1 (7) |
| FL 34601 30 277 100.0% 2,940 October 1 (7) FL 34222 538 2,211 86.9% 6,226 August 1 (8) |
| FL 34772 59 241 92.1% 4,289 July 1 (1) FL 33541 146 318 95.0% 3,412 July 1 (1) |
| FL 33950 34 201 87.6% 4,313 August 1 (9) FL 33594 84 521 97.7% 4,623 October 1 (7) |
| FL 34482 56 375 83.5% 4,539 July 1 (1) FL 32726 52 292 98.3% 3,531 August 1 (6) |
| FL 32966 130 597 84.3% 5,775 October 1 (7) FL 32836 50 303 98.7% 6,099 July 1 (1) |
| FL 33805 18 107 96.3% 4,530 July 1 (1) FL 34275 65 391 95.1% 6,470 September 1(7) |
| FL 33463 117 826 77.6% 6,906 October 1 (7) FL 33805 65 504 99.8% 4,234 August 1 (6) |
| FL 33805 23 193 97.4% 3,569 July 1 (1) FL 34731 39 241 98.3% 3,656 July 1 (1) |
| FL 34711 38 242 95.0% 4,532 July 1 (1) FL 33409 48 285 89.5% 5,345 August 1 (9) |
| FL 34785 121 695 96.0% 3,065 July 1 (1) FL 34222 77 381 98.2% 3,943 October 1 (7) |
| FL 33760 31 250 94.4% 5,475 July 1 (1) FL 33760 19 156 94.9% 5,677 July 1 (1) |
| FL 32822 130 783 79.7% 5,792 July 1 (1) FL 34689 24 170 88.2% 5,305 July 1 (1) |
| FL 32966 64 285 82.5% 5,353 October 1 (7) FL 32966 174 781 84.1% 6,381 August 1 (6) |
| FL 33771 55 392 85.7% 6,001 October 1 (7) 2,727 14,184 90.4% 5,207 |
| Equity LifeStyle Properties, Inc. 18 |
| 2011 Acquisition Properties (continued) See page 19 for footnotes to this table. |
| Property Address City |
| Northeast |
| Stonegate Manor 1 Stonegate Drive North Windham The Glen 31 Leisurewoods Norwell |
| Hillcrest 31 Leisurewoods Rockland Fernwood 1901 Fernwood Drive Capitol Heights |
| Williams Estates & Peppermint Woods 3300 Eastern Blvd Middle River Pine Ridge at Crestwood 2 Fox Street Whiting |
| The Woodlands 6237 South Transit Lockport Greenbriar Village 63A Greenbriar Drive Bath |
| Lil Wolf 3411 Li’l Wolf Drive Orefield Mountain View — PA 4 East Zimmer Drive Walnutport |
| Regency Lakes 108 Chamberlain Court Winchester |
| Northeast Total |
| West |
| Apache East 3500 S. Tomahawk Apache Junction Denali Park 3405 S. Tomahawk Apache Junction |
| Sunshine Valley 1650 S. Arizona Avenue Chandler Westpark 2501 W WickenburgWay Wickenburg |
| Los Ranchos 20843 Waalew Road Apple Valley Mountain View — NV 148 Day Street Henderson |
| West Total |
| Other Midwest / ID |
| Coach Royal 8597 W. Irving Lane Boise Maple Grove 8597 W. Irving Lane Boise |
| Shenandoah Estates 5603 Bullrun Lane Boise WestMeadow Estates 120 West Driftwood Boise |
| Hoosier Estates 830 Campbell Street Lebanon North Glen Village 18200 US 31 N #292 Westfield |
| Rockford Riverview Estates 135 Highview Road Rockford Rosemount Woods 13925 Bunratty Ave Rosemount |
| Cedar Knolls 12571 Garland Ave Apple Valley Cimarron Park 901 Lake Elmo Ave N Lake Elmo |
| Buena Vista 4301 El Tora Boulevard Fargo Meadow Park 3220 12th Ave North Fargo |
| Other Midwest / ID Total |
| Michigan |
| Avon 2889 Sandpiper Rochester Hills Chesterfield 49900 Fairchild Road Chesterfield |
| Clinton 38129 Deacroix Clinton Township Cranberry Lake 9620 Highland Road White Lake |
| Ferrand Estates 2680 44th Street Wyoming Grand Blanc 8225 Embury Road Grand Blanc |
| Holly Hills 16181 Lancaster Way Holly Lake in the Hills 2700 Shimmons Road Auburn Hills |
| Macomb 45301 Chateau Thierry Blvd. Macomb Novi 41875 Carousel Street Novi |
| Old Orchard 10500 Lapeer Road Davison Royal Estates 8300 Ravine Road Kalamazoo |
| Swan Creek 6988 McKean Ypsilanti Westbrook 45013 Catalpa Macomb |
| Michigan Total |
| Grand Total |
| State ZIP Acres Sites |
| Annual Site |
| Occupancy as |
| of 6/30/11 |
| Annual |
| Rent |
| as of 6/30/11 |
| Closing |
| Schedule (4) |
| CT 06256 114 372 94.9% 4,980 July 1 (1) MA 02370 24 36 100.0% 7,159 August 1 (10) |
| MA 02370 19 83 90.4% 6,647 August 1 (10) MD 20743 40 329 93.3% 5,514 October 1 (7) |
| MD 21200 121 804 96.0% 6,421 August 1 (6) NJ 08759 188 1,035 89.6% 4,953 August 1 (6) |
| NY 14094 225 1,183 88.1% 5,203 August 1 (5) PA 18014 63 319 98.1% 6,445 October 1 (7) |
| PA 18069 56 271 97.4% 6,326 October 1 (7) PA 18088 45 189 93.7% 5,146 August 1 (6) |
| VA 22603 165 523 88.3% 5,098 July 1 (1) 1,060 5,144 91.9% 5,527 |
| AZ 85219 17 123 98.4% 4,824 July 1 (1) AZ 85219 33 162 75.3% 4,627 July 1 (1) |
| AZ 85286 55 380 86.8% 5,375 September 1 (7) AZ 85390 48 188 97.3% 6,137 July 1 (1) |
| CA 92307 30 389 95.6% 6,165 October 1 (7) NV 89074 67 352 94.3% 8,382 August 1 (6) |
| 250 1,594 91.6% 6,247 ID 83704 12 91 72.5% 4,704 July 1 (1) |
| ID 83704 38 270 70.7% 4,764 July 1 (1) ID 08081 24 154 97.4% 5,510 October 1 (7) |
| ID 83713 29 179 93.9% 5,328 October 1 (7) IN 46052 60 288 92.4% 3,491 October 1 (7) |
| IN 46074 88 289 82.7% 4,572 October 1 (7) MN 55373 88 428 83.9% 4,176 August 1 (6) |
| MN 55068 50 182 95.6% 6,394 July 1 (1) MN 55124 93 458 85.6% 6,852 August 1 (8) |
| MN 55042 230 505 86.3% 6,960 August 1 (8) ND 58103 76 400 95.0% 4,512 August 1 (9) |
| ND 58102 17 117 90.6% 3,480 August 1 (6) 804 3,361 87.1% 5,254 |
| MI 48309 83 617 73.4% 6,521 July 1 (1) MI 48051 78 345 71.3% 5,851 July 1 (1) |
| MI 48038 161 1,000 52.3% 5,631 October 1 (3) MI 48386 54 328 79.6% 6,370 July 1 (1) |
| MI 49519 80 420 75.7% 5,448 August 1 (6) MI 48439 221 478 46.7% 5,435 July 1 (1) |
| MI 48442 198 242 62.8% 4,753 July 1 (1) MI 48326 51 238 84.9% 5,791 July 1 (1) |
| MI 48044 400 1,426 56.9% 5,665 July 1 (1) MI 48377 118 725 56.0% 5,780 July 1 (1) |
| MI 48423 41 200 70.5% 5,286 July 1 (1) MI 49009 63 183 82.0% 4,817 July 1 (1) |
| MI 48197 59 294 86.1% 5,576 July 1 (1) MI 48044 79 388 93.6% 6,318 July 1 (1) |
| MI Total 1,686 6,884 65.4% 5,764 |
| 6,526 31,167 84.8% 5,423 |
| Equity LifeStyle Properties, Inc. 19 |
| 2011 Acquisition Properties Footnotes 1) Property acquired on July 1, 2011. |
| 2) This property is a resort property with 146 annual sites. 3) The terms of the purchase agreement for the Acquisition |
| result of underwriting issues related to this property, the would be deemed terminated but also agreed that the Company |
| December 31, 2011. The Company is continuing to estimates assume that the Company will acquire this property |
| acquire this property. 4) In addition to the debt—related assumptions issues highlighted |
| customary closing conditions and due diligence. 5) Closing subject to completing loan assumption. The Company’s |
| yet approved by lender. 6) Closing subject to completing loan assumption. Lender |
| is in progress. 7) Closing subject to completing loan assumption. Lender |
| lender due diligence and underwriting are not complete. 8) Closing subject to completing loan assumption. Lender |
| document negotiation is in progress. 9) Closing subject to seller defeasing existing debt. Seller |
| closing date. 10) Property is currently unencumbered and closing date has |
| provided for a July 1, 2011 closing for this property. As a parties agreed that the Company’s acquisition of the property |
| may reinstate the acquisition at any time on or before perform due diligence on the property. All 2011 guidance |
| property. There can be no assurance that the Company will in footnotes 5 — 10, all future closings are subject to |
| request for modification of certain loan terms is not has verbally approved the assumption, document negotiation |
| has acknowledged request for assumption approval, however has delivered written conditional approval of assumption, |
| is actively working with lender to defease on the scheduled been agreed to by the Company and seller. |
| Equity LifeStyle Properties, Inc. 20 |
| Non—GAAP Financial Measures Funds from Operations (“FFO”) — a non-GAAP financial measure |
| Board of Governors of the National Association of Real Estate measure of performance for an equity REIT. While FFO is a |
| for equity REITs, it does not represent cash flow from operations considered as an alternative to these indicators in evaluating liquidity |
| The Company defines FFO as net income, computed in accordance losses from sales of properties, plus real estate related |
| unconsolidated partnerships and joint ventures. Adjustments calculated to reflect FFO on the same basis. The Company |
| right-to-use contracts. In accordance with GAAP, the upfront deferred and amortized over the estimated customer life. Although |
| treatment of nonrefundable right-to-use payments, the Company deferral activity in its calculation of FFO. The Company believes |
| measures of the performance of an equity REIT. The Company amortization and gains or actual or estimated losses from sales |
| which may be of limited relevance in evaluating current performance, performance between periods and among other equity REITs |
| net revenue deferral of upfront non-refundable payments and facilitates the comparison to other equity REITs. Investors should |
| from operating activities, investing activities and financing performance. The Company computes FFO in accordance |
| which may not be comparable to FFO reported by other REITs NAREIT definition or that interpret the current NAREIT definition |
| distribution (“FAD”) is a non-GAAP financial measure. FAD expenditures. Investors should review FFO and FAD, along with |
| investing activities and financing activities, when evaluating the represent cash generated from operating activities in accordance |
| distributions and should not be considered as an alternative indication of the Company’s financial performance, or to cash |
| GAAP, as a measure of the Company’s liquidity, nor is it indicative including its ability to make cash distributions. |
| measure. The Company believes that FFO, as defined by the Investment Trusts (“NAREIT”), is generally an appropriate |
| relevant and widely used measure of operating performance or net income as defined by GAAP, and it should not be |
| or operating performance. with GAAP, excluding gains or actual or estimated |
| depreciation and amortization, and after adjustments for for unconsolidated partnerships and joint ventures are |
| receives up-front non-refundable payments from the entry of non-refundable payments and related commissions are |
| the NAREIT definition of FFO does not address the believes that it is appropriate to adjust for the impact of the |
| that FFO is helpful to investors as one of several further believes that by excluding the effect of depreciation, |
| of real estate, all of which are based on historical costs and FFO can facilitate comparisons of operating |
| REITs. The Company believes that the adjustment to FFO for the expense deferral of right-to-use contract commissions also |
| review FFO, along with GAAP net income and cash flow activities, when evaluating the Company’s operating |
| with its interpretation of standards established by NAREIT, that do not define the term in accordance with the current |
| differently than the Company does. Funds available for is defined as FFO less non-revenue producing capital |
| GAAP net income and cash flow from operating activities, Company’s operating performance. FFO and FAD do not |
| with GAAP, nor do they represent cash available to pay to net income, determined in accordance with GAAP, as an |
| flow from operating activities, determined in accordance with of funds available to fund the Company’s cash needs, |