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8-K - FORM 8-K - EQUITY LIFESTYLE PROPERTIES INC | c66089e8vk.htm |
Exhibit 99.1
News Release
CONTACT: Michael Berman
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(312) 279-1496
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ELS ANNOUNCES CLOSINGS ON SEVEN PROPERTIES
COMPLETED 58 CLOSINGS SINCE JULY 1ST
COMPLETED 58 CLOSINGS SINCE JULY 1ST
CHICAGO, IL. September 1, 2011 On May 31, 2011, Equity LifeStyle Properties, Inc.
(NYSE:ELS), through its operating partnership (collectively, the Company), entered into purchase
and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort
(the Acquisition Properties) containing 31,167 sites on approximately 6,500 acres located in 16
states (primarily located in Florida and the northeastern region of the United States) and certain
manufactured homes and loans secured by manufactured homes located at the Acquisition Properties
for a stated purchase price of $1.43 billion (the Acquisition).
The Company closed on seven of the Acquisition Properties today along with certain manufactured
homes and loans secured by manufactured homes located at such Acquisition Properties for a stated
purchase price of approximately $160 million. The purchase price in connection with this closing
was funded with: (i) the issuance of 46,207 shares of the Companys common stock to the seller with
an aggregate stated value of approximately $3 million, (ii) the issuance of 956,255 shares of
Series B Subordinated NonVoting Cumulative Preferred Stock (Series B Preferred Stock) to the
seller with an aggregate stated value of approximately $55 million, and (iii) the assumption of
approximately $102 million of mortgage debt secured by the seven Acquisition Properties acquired
today.
As of today, the Company has closed on 58 Acquisition Properties during
the third quarter of 2011. The timing of the closings is generally
consistent with the estimated closing schedule provided in the Supplemental
Package posted to our website on July 18, 2011 in the Investor Information
section. The Companys closing of the remaining 18 Acquisition Properties
is expected to occur by October 3, 2011 and assumption of the indebtedness
thereon is subject to the receipt of loan servicer consents. The
Acquisition is also subject to other customary closing conditions.
Accordingly, no assurances can be given that the remainder of the
Acquisition will be completed in its entirety in accordance with the
anticipated timing or at all.
The Company has undertaken a preliminary assessment of the impact of
Hurricane Irene on its operations. A number of the Companys locations on
the east coast of the United States were closed during the weekend of August
27th due to power outages and other weather related issues while
Hurricane Irene moved north up the east coast. A few properties remain
closed and will not be open over Labor Day weekend. We expect that the
primary impact to our property operations will be costs to clean-up flood
damage and other items such as wind blown debris, falling trees and tree
branches as well as reduced transient RV income due to property closures.
The Company currently estimates the impact on income from property
operations as a result of Hurricane Irene to be less than $1.5 million.
Equity LifeStyle Properties, Inc. is a fully integrated owner and operator of
lifestyle-oriented properties and as of September 1, 2011, owns or has an interest in 365 quality
properties in 32 states and British Columbia consisting of 134,005 sites. The Company leases
individual developed areas, or sites, with
access to utilities for placement of factory-built homes, cottages, cabins or recreational
vehicles. Customers may lease individual sites or enter right-to-use contracts providing the
customer access to specific properties for limited stays. The Company is a self-administered,
self-managed, real estate investment trust (REIT) with headquarters in Chicago. Visit
www.equitylifestyle.com for more information.
This press release 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, or the
negative thereof, unless the context requires otherwise, are intended to identify forward-looking
statements and may include, without limitation, information regarding the Companys expectations,
goals or intentions regarding the future, statements regarding the anticipated closings of its
pending Acquisition and the expected effect of the Acquisition on the Company. These
forward-looking statements are subject to numerous assumptions, risks and uncertainties, including,
but not limited to:
| the Companys ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its Properties (including those that it may acquire); | ||
| the Companys ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire; | ||
| the Companys assumptions about rental and home sales markets; | ||
| the Companys assumptions and guidance concerning 2011 estimated net income and funds from operations; | ||
| in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers to sell their existing residences as well as by financial, credit and capital markets volatility; | ||
| results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; | ||
| impact of government intervention to stabilize site-built single family housing and not manufactured housing; | ||
| the completion of the Acquisition in its entirety and future acquisitions, if any, and timing and effective integration with respect thereto and the Companys estimates regarding the future performance of the Acquisition Properties; | ||
| the Companys inability to secure the contemplated debt financings to fund a portion of the stated purchase price of the Acquisition on favorable terms or at all and the timing with respect thereto; | ||
| unanticipated costs or unforeseen liabilities associated with the Acquisition; | ||
| ability to obtain financing or refinance existing debt on favorable terms or at all; | ||
| the effect of interest rates; | ||
| the dilutive effects of issuing additional securities; | ||
| the effect of accounting for the entry of contracts with customers representing a right-to-use the Properties under the Codification Topic Revenue Recognition; and | ||
| other risks indicated from time to time in the Companys filings with the Securities and Exchange Commission. |
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These forward-looking statements are based on managements present expectations and beliefs about
future events. As with any projection or forecast, these statements are inherently susceptible to
uncertainty and changes in circumstances. The Company is under no obligation to, and expressly
disclaims any obligation to, update or alter its forward-looking statements whether as a result of
such changes, new information, subsequent events or otherwise.
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