EQUITY LIFESTYLE PROPERTIES INC
10-Ks and 10-Qs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the Fiscal Year Ended
December 31, 2017
or
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
Commission File Number: 1-11718
EQUITY LIFESTYLE PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
|
Maryland
|
|
36-3857664
|
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
Two North Riverside Plaza,
Suite 800, Chicago, Illinois
|
|
60606
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
(312) 279-1400
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
|
Common Stock, $0.01 Par Value
|
|
New York Stock Exchange
|
|
(Title of Class)
|
|
(Name of exchange on which registered)
|
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes
x
No
o
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes
o
No
x
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
x
No
o
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes
x
No
o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Smaller reporting company
|
o
|
Emerging Growth Company
|
o
|
|
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
|||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
o
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
o
No
x
The aggregate market value of voting stock held by non-affiliates was approximately
$7,012.5 million
as of
June 30, 2017
based upon the closing price of
$86.34
on such date using beneficial ownership of stock rules adopted pursuant to Section 13 of the Securities Exchange Act of 1934 to exclude voting stock owned by Directors and Officers, some of whom may not be held to be affiliates upon judicial determination.
At
February 23, 2018
,
88,733,740
shares of the Registrant's common stock were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:
Part III incorporates by reference portions of the Registrant's Proxy Statement relating to the Annual Meeting of Stockholders to be held on
May 1, 2018
.
Equity LifeStyle Properties, Inc.
TABLE OF CONTENTS
|
|
|
Page
|
|
|
PART I.
|
|||
|
Item 1.
|
Business
|
||
|
Item 1A.
|
Risk Factors
|
||
|
Item 1B.
|
Unresolved Staff Comments
|
||
|
Item 2.
|
Properties
|
||
|
Item 3.
|
Legal Proceedings
|
||
|
Item 4.
|
Mine Safety Disclosure
|
||
|
PART II.
|
|||
|
Item 5.
|
Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
||
|
Item 6.
|
Selected Financial Data
|
||
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
||
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
||
|
Forward-Looking Statements
|
|||
|
Item 8.
|
Financial Statements and Supplementary Data
|
||
|
Item 9.
|
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
|
||
|
Item 9A.
|
Controls and Procedures
|
||
|
Item 9B.
|
Other Information
|
||
|
PART III.
|
|||
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
||
|
Item 11.
|
Executive Compensation
|
||
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
||
|
Item 13.
|
Certain Relationships and Related Transactions and Director Independence
|
||
|
Item 14.
|
Principal Accountant Fees and Services
|
||
|
PART IV.
|
|||
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
||
|
Item 16.
|
Form 10-K Summary
|
||
-i-
Equity LifeStyle Properties, Inc.
General
Equity LifeStyle Properties, Inc. ("ELS"), a Maryland corporation, together with MHC Operating Limited Partnership (the "Operating Partnership") and its other consolidated subsidiaries (the "Subsidiaries"), are referred to herein as "we," "us," and "our." We elected to be taxed as a real estate investment trust ("REIT"), for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 1993.
We are a fully integrated owner and operator of lifestyle-oriented properties ("Properties") consisting primarily of manufactured home ("MH") communities and recreational vehicle ("RV") resorts and campgrounds. We were formed in December 1992 to continue the property operations, business objectives and acquisition strategies of an entity that had owned and operated Properties since 1969.
We have a unique business model where we own the land upon which we provide our customers the opportunity to place factory built homes, cottages, cabins or RVs either permanently or on a long-term or short-term basis. Our customers may lease individual developed areas ("Sites") or enter right-to-use contracts, which provide them access to specific Properties for limited stays. Compared to other types of real estate companies, our business model is characterized by low maintenance costs, as well as low customer turnover costs. Our portfolio is spread through highly desirable locations with a focus on both retirement and vacation destinations. Our properties attract retirees, vacationing families, and second homeowners, while providing a lower cost home ownership alternative. We have more than 90 Properties with lake, river or ocean frontage and more than 100 Properties within 10 miles of the coastal United States.
We are one of the nation's largest real estate networks with a portfolio, as of
December 31, 2017
, of
406
Properties (including joint venture Properties) consisting of
151,323
Sites located throughout the United States and Canada. These Properties are located in
32
states and British Columbia.
Our Properties are designed and improved for home options of various sizes and designs that are produced off-site by third-party manufacturers, installed and set on designated Sites ("Site Set") within the Properties. These homes can range from 400 to
1
over 2,000 square feet. Properties may also have Sites that can accommodate a variety of RVs. Properties generally contain centralized entrances, internal road systems and designated Sites. In addition, Properties often provide a clubhouse for social activities and recreation and other amenities, which may include swimming pools, shuffleboard courts, tennis courts, pickleball courts, golf courses, lawn bowling, restaurants, laundry facilities, cable television and internet service. Some Properties provide utilities, including water and sewer service, through municipal or regulated utilities, while others provide these services to customers from on-site facilities.
Employees and Organizational Structure
We have an annual average of approximately
4,100
full-time, part-time and seasonal employees dedicated to carrying out our operating philosophy while focusing on providing good service to our customers. Our Property operations are managed internally by wholly-owned affiliates of the Operating Partnership and are coordinated by an on-site team of employees that typically includes a manager, clerical staff and maintenance workers, each of whom works to provide maintenance and care to the Properties. The on-site team at each Property also provides customer service and coordinates lifestyle-oriented activities for customers. Direct supervision of on-site management is the responsibility of our regional vice presidents and regional and district managers who have substantial experience addressing the needs of customers and creating innovative approaches to maximize value and increase cash flow from property operations. Complementing the field management staff are approximately
400
full-time corporate and regional employees who assist in all functions related to the management of our Properties.
Our Formation
Our Properties are primarily owned by our Operating Partnership and managed internally by affiliates of our Operating Partnership. We contributed the proceeds from our initial public offering in 1993 and subsequent offerings to our Operating Partnership for a general partnership interest. The financial results of our Operating Partnership and our Subsidiaries are consolidated in our consolidated financial statements, which can be found beginning on page F-1 of this Form 10-K. In addition, since certain activities, if performed by us, may not be qualifying REIT activities under the Internal Revenue Code of 1986, as amended (the "Code"), we have formed taxable REIT Subsidiaries, as defined in the Code, to engage in such activities.
Realty Systems, Inc. ("RSI") is a wholly owned taxable REIT subsidiary of ours which is engaged in the business of purchasing and selling or leasing Site Set homes that are located in Properties owned and managed by us. RSI also provides brokerage services to residents at such Properties who move from a Property but do not relocate their homes. RSI may provide brokerage services, in competition with other local brokers, by seeking buyers for the Site Set homes. Subsidiaries of RSI also operate ancillary activities at certain Properties, such as golf courses, pro shops, stores and restaurants. Several Properties are also wholly owned by our taxable REIT Subsidiaries.
Business Objectives and Operating Strategies
Our primary business objective is to maximize both current and long-term income growth. Our operating strategy is to own and operate the highest quality Properties in sought-after locations near retirement and vacation destinations and urban areas across the United States.
We focus on Properties that have strong cash flow and plan to hold such Properties for long-term investment and capital appreciation. In determining cash flow potential, we evaluate our ability to attract high quality customers to our Properties and retain these customers who take pride in the Property and in their homes. Our operating, investment and financing strategies include:
|
•
|
Consistently providing high levels of services and amenities in attractive surroundings to foster a strong sense of community and pride of home ownership;
|
|
•
|
Efficiently managing the Properties to increase operating margins by increasing occupancy, maintaining competitive market rents and controlling expenses;
|
|
•
|
Increasing income and property values by strategic expansion and, where appropriate, renovation of the Properties;
|
|
•
|
Utilizing technology to evaluate potential acquisitions, identify and track competing properties and monitor existing and prospective customer satisfaction;
|
|
•
|
Selectively acquiring properties that have potential for long-term cash flow growth and creating property concentrations in and around retirement or vacation destinations and major metropolitan areas to capitalize on operating synergies and incremental efficiencies;
|
|
•
|
Selecting joint venture partners that share business objectives, growth initiatives, and risk profiles similar to ours;
|
|
•
|
Managing our debt balances in order to maintain financial flexibility, minimize exposure to interest rate fluctuations and maintain an appropriate degree of leverage to maximize return on capital; and
|
|
•
|
Developing and maintaining relationships with various capital providers.
|
2
These business objectives and their implementation are consistent with business strategies determined by our Board of Directors and may be subject to change or amendment at any time.
Acquisitions and Dispositions
We invest in Properties in sought-after locations near retirement and vacation destinations and urban areas across the United States with a focus on increasing operating cash flows. Over the last decade we have continued to increase the number of Properties in our portfolio (including owned or partly owned Properties), from
311
Properties with over
112,000
Sites to
406
Properties with over
151,300
Sites. During the year ended
December 31, 2017
, we acquired
three
Properties (two RV resorts and one MH community) with approximately
1,900
Sites and entered into two joint ventures that own properties with approximately 2,700 Sites. We continually review the Properties in our portfolio to ensure they fit our business objectives. Over the last five years, we redeployed capital to properties in markets we believe have greater long-term potential by acquiring
22
Properties primarily located in retirement and vacation destinations and selling
11
Properties that were not aligned with our long-term goals.
We believe that opportunities for property acquisitions are still available. Based on industry reports, we estimate there are approximately 50,000 manufactured home properties and approximately 8,750 RV resorts (excluding government owned properties) in North America. Most of these properties are not operated by large owner/operators, and approximately 3,600 of the MH properties and 1,300 of the RV resorts contain 200 Sites or more. We believe that this relatively high degree of fragmentation provides us, as a national organization with experienced management and substantial financial resources, the opportunity to purchase additional properties. We believe we have a competitive advantage in the acquisition of additional properties due to our experienced management, significant presence in major real estate markets and access to capital resources. We are actively seeking to acquire and are engaged at any time in various stages of negotiations relating to the possible acquisition of additional properties, which may include outstanding contracts to acquire properties that are subject to the satisfactory completion of our due diligence review.
We anticipate that new acquisitions will generally be located in the United States, although we may consider other geographic locations provided they meet our acquisition criteria. We utilize market information systems to identify and evaluate acquisition opportunities, including the use of a market database to review the primary economic indicators of the various locations in which we expect to expand our operations.
Acquisitions will be financed from the most appropriate available sources of capital, which may include undistributed funds from operations, issuance of additional equity securities, sales of investments, collateralized and uncollateralized borrowings and issuance of debt securities. In addition, we have and expect to acquire properties in transactions that include the issuance of limited partnership interests in our Operating Partnership ("OP Units") as consideration for the acquired properties. We believe that an ownership structure that includes our Operating Partnership has and will permit us to acquire additional properties in transactions that may defer all or a portion of the sellers' tax consequences.
When evaluating potential acquisitions, we consider, among others, the following factors:
|
•
|
Current and projected cash flow of the property and the potential for increased cash flow;
|
|
•
|
Geographic area and the type of property;
|
|
•
|
Replacement cost of the property, including land values, entitlements and zoning;
|
|
•
|
Location, construction quality, condition and design of the property;
|
|
•
|
Potential for capital appreciation of the property;
|
|
•
|
Terms of tenant leases or usage rights, including the potential for rent increases;
|
|
•
|
Potential for economic growth and the tax and regulatory environment of the community in which the property is located;
|
|
•
|
Potential for expansion, including increasing the number of Sites;
|
|
•
|
Occupancy and demand by customers for properties of a similar type in the vicinity and the customers' profiles;
|
|
•
|
Prospects for liquidity through sale, financing or refinancing of the property;
|
|
•
|
Competition from existing properties and the potential for the construction of new properties in the area; and
|
|
•
|
Working capital demands.
|
When evaluating potential dispositions, we consider, among others, the following factors:
|
•
|
Whether the Property meets our current investment criteria;
|
|
•
|
Our desire to exit certain non-core markets and recycle the capital into core markets; and
|
|
•
|
Our ability to sell the Property at a price that we believe will provide an appropriate return for our stockholders.
|
When investing capital, we consider all potential uses of the capital, including returning capital to our stockholders. Our Board of Directors continues to review the conditions under which we may repurchase our stock. These conditions include, but are not limited to, market price, balance sheet flexibility, other opportunities and capital requirements.
3
Property Expansions
Development - Current Portfolio.
Integral to our growth and investment strategy, each Property is evaluated for expansion opportunities. Investment evaluation consists of: reviewing local market conditions, demographic trends, zoning and entitlements, infrastructure requirements, financial feasibility and projected performance and conducting an operational review. When justified, development of land available for expansion ("Expansion Sites") allows us to leverage existing facilities and amenities. Our ability to increase density translates to greater value creation and cash flow through operational efficiencies. Overall, approximately 90 of our Properties have potential Expansion Sites, offering 5,400 available acres. Refer to Item 2. Properties, which includes detail regarding the developable acres available at each property.
Acquisition - Expanding Portfolio.
In selecting acquisition targets, we pursue properties with existing operations in place and contiguous Expansion Sites. Underwriting a project with these features allows us to access the previously untapped potential of such properties. For example, in 2017, we acquired two flagship RV resorts located on the Chesapeake Bay. The properties contain 1,762 Sites and have between 400 and 500 Expansion Sites in the internal footprint as well as 80 acres available for external expansion.
Leases or Usage Rights
At our Properties, a typical lease for the rental of a Site between us and the owner or renter of a home is month-to-month or for a one-year term, renewable upon the consent of both parties or, in some instances, as provided by statute. These leases are cancelable, depending on applicable law, for non-payment of rent, violation of Property rules and regulations or other specified defaults. Long-term leases that are non-cancelable by the tenant are in effect at approximately
13,900
Sites in
24
of our Properties. Some of these leases are subject to rental rate increases based on the Consumer Price Index ("CPI"), in some instances allowing for pass-throughs of certain items such as real estate taxes, utility expenses and capital expenditures. Generally, adjustments to our market rates, if appropriate, are made on an annual basis.
In Florida, in connection with offering a Site in a MH community for rent, the MH community owner must deliver to the prospective resident a Prospectus required by Florida Statutes Chapter 723.001, et. seq., which must be approved by the applicable regulatory agency. The Prospectus contains certain required disclosures regarding the community, the rights and obligations of the MH community owner and residents, and a copy of the lease agreement. A Prospectus may contain limitations on the rights of the MH community owner to increase rental rates. However, in the absence of such limitations, the MH community owner may increase rental rates to market, subject to certain advance notice requirements and a statutory requirement that the rental rates be reasonable. See further discussion below related to rent control legislation.
At Properties zoned for RV use, we have long-term relationships with many of our customers who typically enter into short-term rental agreements. Many resort customers also leave deposits to reserve a Site for the following year. Generally, these customers cannot live full time on the Property.
At resort Properties operated under the Thousand Trails brand designated for use by customers who have entered a right-to-use or membership contract, the contract generally grants the customer access to designated Properties on a continuous basis of up to 14 days in exchange for annual dues payments. The customer may make a nonrefundable upfront payment to upgrade the contract which increases usage rights during the contract term. We may finance the nonrefundable upfront payment. Most of the contracts provide for an annual dues increase, usually based on increases in the CPI.
Regulations and Insurance
General
. Our Properties are subject to a variety of laws, ordinances and regulations, including regulations relating to recreational facilities such as swimming pools, clubhouses and other common areas, regulations relating to providing utility services, such as electricity, and regulations relating to operating water and wastewater treatment facilities at certain of our Properties. We believe that each Property has all material permits and approvals necessary to operate. We renew these permits and approvals in the ordinary course of business.
Insurance
. The Properties are insured against risks that may cause property damage and business interruption including events such as fire, flood, earthquake, or windstorm. The relevant insurance policies contain deductible requirements, coverage limits and particular exclusions. Our current property and casualty insurance policies, which we plan to renew, expire on April 1, 2018. We have a $100.0 million loss limit with respect to our all-risk property insurance program including named windstorms. This loss limit is subject to additional sub-limits as set forth in the policy form, including, among others, a $25.0 million aggregate loss limit for earthquakes in California. Policy deductibles primarily range from a $125,000 minimum to 5.0% per unit of insurance for most catastrophic events. A deductible indicates our maximum exposure, subject to policy limits and sub-limits, in the event of a loss.
4
Rent Control Legislation
. At certain of our Properties state and local rent control laws limit our ability to increase rents and to recover increases in operating expenses and the costs of capital improvements. Enactment of such laws has been considered at various times in other jurisdictions. We presently expect to continue to maintain Properties, and may purchase additional properties, in markets that are either subject to rent control or in which rent-limiting legislation exists or may be enacted. For example, Florida law requires that rental increases be reasonable, and Delaware law requires rental increases greater than the change in the CPI to be justified. Also, certain jurisdictions in California in which we own Properties limit rent increases to changes in the CPI or some percentage of CPI. As part of our effort to realize the value of Properties subject to restrictive regulation, we have initiated lawsuits at various times against various municipalities imposing such regulations in an attempt to balance the interests of our stockholders with the interests of our customers.
Membership Properties.
Many states also have consumer protection laws regulating right-to-use or campground membership sales and the financing of such sales. Some states have laws requiring us to register with a state agency and obtain a permit to market (see Item 1A. Risk Factors). At certain of our Properties primarily used as membership campgrounds, state statutes limit our ability to close a Property unless a reasonable substitute Property is made available for members' use.
Industry
We believe that demand from baby boomers for manufactured housing and RV resorts will continue to outpace supply for several years. We also believe that our Properties and our business model provide an opportunity for increased cash flows and appreciation in value. These may be achieved through increases in rental and occupancy rates, as well as expense controls, expansion of existing Properties and opportunistic acquisitions, for the following reasons:
|
•
|
Barriers to Entry:
We believe that the supply of new properties in locations we target will be constrained by barriers to entry. The most significant barrier has been the difficulty of securing zoning permits from local authorities. This has been the result of (i) the public's perception of manufactured housing, and (ii) the fact that MH communities and RV resorts generate less tax revenue than conventional housing properties because the homes are treated as personal property (a benefit to the homeowner) rather than real property. Further, the length of time between investment in a property's development and the attainment of stabilized occupancy and the generation of revenues is significant. The initial development of the infrastructure may take up to two or three years and once a property is ready for occupancy, it may be difficult to attract customers to an empty property.
|
|
•
|
Customer Base
: We believe that properties tend to achieve and maintain a stable rate of occupancy due to the following factors: (i) customers typically own their own homes, (ii) properties tend to foster a sense of community as a result of amenities, such as clubhouses and recreational and social activities, (iii) customers often sell their homes in-place (similar to site-built residential housing) with no interruption of rental payments to us, and (iv) moving a Site Set home from one property to another involves substantial cost and effort.
|
|
•
|
Lifestyle Choice
: According to the Recreational Vehicle Industry Association ("RVIA"), in a survey conducted by the University of Michigan in 2011, approximately 8.9 million or 8.5% of U.S. vehicle-owning households owned an RV. The 77 million people born in the United States from 1946 to 1964, or "baby boomers", make up the fastest growing segment of this market. According to Pew Research Center, every day 10,000 Americans turn 65 years old. We believe that this population segment, seeking an active lifestyle, will provide opportunities for our future cash flow growth. As RV owners age and move beyond the more active RV lifestyle, they will often seek more permanent retirement or vacation establishments. Site Set housing has become an increasingly popular housing alternative for retirement, second-home, and "empty-nest" living. According to 2014 U.S. Census Bureau National Population Projections figures, the population of people ages 55 and older is expected to grow 22% within the next 15 years.
|
We believe that the housing choices in our Properties are especially attractive to such individuals throughout this lifestyle cycle. Our Properties offer an appealing amenity package, close proximity to local services, social activities, low maintenance and a secure environment. In fact, many of our Properties allow for this cycle to occur within a single Property.
|
•
|
Construction Quality:
The Department of Housing and Urban Development's ("HUD") standards for Site Set housing construction quality are the only federal standards governing housing quality of any type in the United States. Site Set homes produced since 1976 have received a "red and silver" government seal certifying that they were built in compliance with the federal code. The code regulates Site Set home design and construction, strength and durability, fire resistance and energy efficiency, and the installation and performance of heating, plumbing, air conditioning, thermal and electrical systems. In newer homes, top grade lumber and dry wall materials are common. Also, manufacturers are required to follow the same fire codes as builders of site-built structures. Although resort cottages, which are generally smaller homes, do not come under the same regulations, the resort cottages are built and certified in accordance with NFPA 1192-15 and ANSI A119.5-09 consensus standards for park model recreational vehicles and have many of the same quality features.
|
5
|
•
|
Comparability to Site-Built Homes:
Since inception, the Site Set housing industry has experienced a trend toward multi-section homes. The average current Site Set homes are approximately 1,446 square feet. Many such homes have nine-foot ceilings or vaulted ceilings, fireplaces and as many as four bedrooms, and closely resemble single-family ranch-style site-built homes. At our Properties, there is an active resale or rental market for these larger homes. According to the 2016 U.S. Census American Community Survey, manufactured homes represent 9.2% of single-family housing units.
|
|
•
|
Second Home and Vacation Home Demographics
: According to 2017 National Association of Realtors ("NAR") reports, sales of second homes in 2016 accounted for 31.0% of residential transactions, or 1.9 million second-home sales in 2016 and a typical vacation-home buyer earned $89,900 in 2016. According to 2014 NAR reports, there were approximately 8.0 million vacation homes in 2013 and a typical vacation-home buyer was 43 years old. According to the 2017 NAR reports, approximately 43.0% of vacation homes were purchased in the south; 24.0% were purchased in the west; 17.0% were purchased in the midwest; and 16.0% were purchased in the northeast. Looking ahead, we expect continued strong demand from baby boomers. It is currently estimated that approximately 10,000 baby boomers will turn 65 daily through 2030. Additionally the population of people age 55 and older is expected to grow 22% from 2018 to 2032. We believe these individuals will continue to drive the market for second home sales as vacation properties, investment opportunities, or retirement retreats. We believe it is likely that over the next decade we will continue to see high levels of second home sales and that resort homes and cottages in our Properties will continue to provide a viable second-home alternative to site-built homes.
|
Notwithstanding our belief that the industry information highlighted above provides us with significant long-term growth opportunities, our short-term growth opportunities could be disrupted by the following:
|
•
|
Shipments:
According to statistics compiled by the U.S. Census Bureau, manufactured home shipments have increased each year since 2010 and are on pace for a ninth straight year of growth. Although new manufactured home shipments continue to be below historical levels, shipments in
2017
increased about
14.5%
to
92,900
units as compared to shipments in
2016
of
81,100
units. According to the RVIA, wholesale shipments of RVs increased
16.6%
in
2017
to approximately
502,300
units as compared to
2016
, which continued a positive trend in RV shipments that started in late 2009. Certain industry experts have predicted that
2018
RV shipments will increase by about 3.7% as compared to
2017
.
|
———————————————————————————————————————————
|
1.
|
U.S. Census: Manufactured Homes Survey
|
|
2.
|
Source: RVIA
|
|
•
|
Sales:
Retail sales of RVs totaled approximately
412,200
in
2017
, a
11.4%
increase from
2016
RV sales of
369,900
and a
27.1%
increase from
2015
RV sales of
324,400
. We believe that consumers remain concerned about the current economy, and the potential for stagnant economic conditions in the future. However, the enduring appeal of the RV lifestyle has
|
6
translated into continued strength in RV sales. RV sales could continue to benefit as aging baby-boomers continue to enter the age range in which RV ownership is highest. RV dealers typically have relationships with third party lenders who provide financing for the purchase of an RV.
|
•
|
Availability of financing:
Since 2008 only a few sources of financing have been available for manufactured home and RV manufacturers. Although RV financing is more readily available, the economic and legislative environment has generally made it difficult for purchasers of both manufactured homes and RVs to obtain financing. Legislation enacted in 2010 known as the SAFE Act (Safe Mortgage Licensing Act) requires community owners interested in providing financing for customer purchases of manufactured homes to register as a mortgage loan originator in states where they engage in such financing. In comparison to financing available to purchasers of site-built homes, the few third party financing sources available to purchasers of manufactured homes offer financing with higher down payments, higher rates and shorter maturities, and loan approval is subject to more stringent underwriting criteria. In 2013, we entered into a joint venture, ECHO Financing, LLC, to buy and sell homes and purchase loans made by an unaffiliated lender to residents at our Properties. Please see our risk factors in Item 1A - Risk Factors and consolidated financial statements and related notes beginning on page F-1 of this Form 10-K for more detailed information.
|
In 2017, the Federal Housing Finance Agency ("FHFA") published Fannie Mae's and Freddie Mac's Underserved Markets Plans for 2018-2020 (the "Plans") under the Duty to Serve provisions mandated by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. The FHFA mandate requires Fannie Mae and Freddie Mac to serve three specific underserved markets, one of which is the manufactured housing sector. The Plans outline four duty to serve focus areas related to manufactured housing, including home purchase financing for customers placing manufactured homes in land lease communities. The timeline included in the Plans indicates pilot programs will be submitted for approval in late 2018. Upon approval, implementation may begin in early 2019. While this may have positive impact on our customers' ability to obtain chattel financing, specific details necessary to evaluate possible impact on us as well as the industry are not yet available.
Available Information
We file reports electronically with the Securities and Exchange Commission ("SEC"). The public may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy information and statements and other information regarding issuers that file electronically with the SEC at
http://www.sec.gov
.
We maintain an Internet site with information about us and hyperlinks to our filings with the SEC at
http://www.equitylifestyleproperties.com
,
free of charge. Requests for copies of our filings with the SEC and other investor inquiries should be directed to:
Investor Relations Department
Equity LifeStyle Properties, Inc.
Two North Riverside Plaza
Chicago, Illinois 60606
Phone: 1-800-247-5279
e-mail: investor_relations@equitylifestyle.com
Our business faces many risks. The risks described below may not be the only risks we face but are the risks we know or that we believe may be material at this time. Additional risks that we do not yet know of, or that we currently think are immaterial, may also impair our business operations or financial results. This Item 1A. also includes forward-looking statements. You should refer to our discussion of the qualifications and limitations on forward-looking statements included in Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Risks Relating to Our Operations and Real Estate Investments
Adverse Economic Conditions and Other Factors Could Adversely Affect the Value of Our Properties and Our Cash Flow
.
Several factors may adversely affect the economic performance and value of our Properties and our cash flows. These factors include:
|
•
|
changes in the national, regional and/or local economic climate;
|
|
•
|
the attractiveness of our Properties to customers, competition from manufactured home communities and other lifestyle-oriented properties and alternative forms of housing (such as apartment buildings and site-built single family homes);
|
7
|
•
|
the ability of manufactured home and RV manufacturers to adapt to changes in the economic climate and the availability of units from these manufacturers;
|
|
•
|
the ability of our potential customers to sell or lease their existing site-built residences in order to purchase resort homes or cottages at our Properties, and heightened price sensitivity for seasonal and second homebuyers;
|
|
•
|
the possible reduced ability of our potential customers to obtain financing on the purchase of resort homes, resort cottages or RVs;
|
|
•
|
the ability of our potential customers to obtain affordable chattel financing from manufactured home lenders;
|
|
•
|
our ability to collect rent, annual payments and principal and interest from customers and pay or control maintenance, insurance and other operating costs (including real estate taxes), which could increase over time;
|
|
•
|
unfavorable weather conditions, especially on holiday weekends in the spring and summer months, could reduce the economic performance at our resort Properties;
|
|
•
|
change in climate and the occurrence of natural disasters or catastrophic events;
|
|
•
|
the failure of our assets to generate income sufficient to pay our expenses, service our debt and maintain our Properties, which may adversely affect our ability to make expected distributions to our stockholders or may result in claims including, but not limited to, foreclosure by a lender in the event of our inability to service our debt;
|
|
•
|
fluctuation in the exchange rate of the U.S. dollar to other currencies and its impact on foreign customers of our northern and southern Properties;
|
|
•
|
changes in U.S. social, political, economic conditions, laws, governmental regulations (including rent control laws and regulations governing usage, zoning and taxes and chattel financing), and policies governing health care systems and drug prices, U.S. tax laws, foreign trade, manufacturing, and development and investment;
|
|
•
|
changes in laws and governmental regulations related to proposed minimum wage increases; and
|
|
•
|
our ability to attract customers to enter new or upgraded right-to-use contracts and to retain customers who have previously entered right-to-use contracts.
|
Economic Downturn in the States or Markets with a Large Concentration of Our Properties May Adversely Affect Our Cash Flows, Financial Condition and Ability to Make Distributions
.
Our success is dependent upon economic conditions in the U.S. generally and in the geographic areas in which a substantial number of our Properties are located. Adverse changes in national economic conditions and in the economic conditions of the regions in which we conduct substantial business may have an adverse effect on the real estate values of our Properties, our financial performance and the market price of our common stock. As we have a large concentration of properties in certain markets, most notably Florida, California, and Arizona, adverse market and economic conditions in these areas of high concentration, which significantly affect such factors as occupancy and rental rates, could have a significant impact on our revenues, cash flows, financial condition and ability to make distributions. In a recession or under other adverse economic conditions, non-earning assets and write-downs are likely to increase as debtors fail to meet their payment obligations. Although we maintain reserves for credit losses and an allowance for doubtful accounts in amounts that we believe should be sufficient to provide adequate protection against potential write-downs in our portfolio, these amounts could prove to be insufficient.
Certain of Our Properties, Primarily our RV Resorts, are Subject to Seasonality and Cyclicality.
Some of our RV Resorts are used primarily by vacationers and campers. These Properties experience seasonal demand, which generally increases in the spring and summer months and decreases in the fall and winter months. As such, results for a certain quarter may not be indicative of the results of future quarters. In addition, as our RV Resorts are primarily used by campers and vacationers, economic cyclicality resulting in a downturn that affects discretionary spending and disposable income for leisure-time activities, as well as unfavorable weather conditions during the spring and summer months, could adversely affect our cash flows.
Competition for Acquisitions May Result in Increased Prices for Properties and Associated Costs and Increased Costs of Financing.
We expect that other real estate investors with significant capital will compete with us for attractive investment opportunities. These competitors may include other publicly traded REITs, private REITs, individuals, corporations, and other types of real estate investors. Such competition increases prices for Properties and can also result in increased fixed costs, such as real estate taxes. To the extent we are unable to effectively compete or acquire properties at a lower purchase price, our business may be adversely affected. Further, we expect to acquire Properties with cash from sources including but not limited to secured or unsecured financings, proceeds from offerings of equity or debt, offerings of OP Units, undistributed funds from operations and sales of investments. We may not be in a position or have the opportunity in the future to make suitable Property acquisitions on favorable terms, or at all, and increased competition can cause difficulties obtaining new financing or securing favorable financing terms.
8
New Acquisitions and Development Properties May Fail to Perform as Expected and the Intended Benefits of Our Acquisitions May Not Be Realized, Which Could Have a Negative Impact on Our Operations and the Market Price of Our Common Stock.
We intend to continue to acquire Properties. However, newly acquired Properties may fail to perform as expected and could pose risks for our ongoing operations including the following:
|
•
|
integration may prove costly or time-consuming and may divert senior management's attention from the management of daily operations;
|
|
•
|
difficulties or an inability to access capital or increases in financing costs;
|
|
•
|
we may incur costs and expenses associated with any undisclosed or potential liabilities;
|
|
•
|
development and expansion projects may require long-term planning and involve complex and costly activities;
|
|
•
|
unforeseen difficulties may arise in integrating an acquisition into our portfolio;
|
|
•
|
expected synergies may not materialize; and
|
|
•
|
we may acquire properties in new markets where we face risks associated with lack of market knowledge such as: understanding of the local economy, the local governmental and/or local permit procedures.
|
As a result of the foregoing, we may underestimate the costs necessary to bring an acquired Property up to standards established for our intended market position. As such, we cannot assure you that any acquisitions that we make will be accretive to us in the near term or at all. Furthermore, if we fail to realize the intended benefits of an acquisition, the market price of our common stock could decline to the extent that the market price reflects those benefits.
In addition, we may periodically consider expansion activities which are subject to risks such as: construction costs exceeding original estimates; construction and lease-up delays resulting in increased construction costs; and lower than anticipated occupancy and rental rates causing a property to be unprofitable or less profitable than originally estimated.
Because Real Estate Investments Are Illiquid, We May Not be Able to Sell Properties
.
Real estate investments generally cannot be sold quickly. We may not be able to vary our portfolio promptly in response to economic or other conditions, forcing us to accept lower than market value. This inability to respond promptly to changes in the performance of our investments could adversely affect our financial condition and ability to service debt and make distributions to our stockholders.
Our Inability to Sell or Rent Manufactured Homes Could Adversely Affect Our Cash Flows.
Selling and renting homes is a primary part of our business.
Our ability to sell or rent manufactured homes could be adversely affected by any of the following factors:
|
•
|
downturns in economic conditions disrupting the single family housing market;
|
|
•
|
local conditions, such as an oversupply of lifestyle-oriented properties or a reduction in demand for lifestyle-oriented properties;
|
|
•
|
increased costs to acquire homes;
|
|
•
|
the ability of customers to obtain affordable financing; and
|
|
•
|
demographics, such as the retirement of the "baby boomers", and their demand for access to our lifestyle-oriented Properties.
|
Our Investments in Joint Ventures Could be Adversely Affected by Our Lack of Sole Decision-Making Authority Regarding Major Decisions, Our Reliance on Our Joint Venture Partners' Financial Condition, Any Disputes that may Arise Between Us and Our Joint Venture Partners and Our Exposure to Potential Losses from the Actions of Our Joint Venture Partners.
We have joint ventures with other investors. We currently and may continue in the future to acquire properties or make investments in joint ventures with other persons or entities when we believe circumstances warrant the use of such structures. Joint venture investments involve risks not present with respect to our wholly owned Properties, including the following:
|
•
|
o
ur joint venture partners might experience financial distress, become bankrupt or fail to fund their share of required capital contributions, which may delay construction or development of a property or increase our financial commitment to the joint venture;
|
|
•
|
our joint venture partners may have business interests or goals with respect to a property that conflict with our business interests and goals, which could increase the likelihood of disputes regarding the ownership, management or disposition of the property; and
|
|
•
|
we may be unable to take actions that are opposed by our joint venture partners under arrangements that require us to share decision-making authority over major decisions affecting the ownership or operation of the joint venture and any property owned by the joint venture, such as the sale or financing of the property or the making of additional capital contributions for the benefit of the venture.
|
9
At times we have entered into agreements providing for joint and several liability with our partners. Frequently, we and our partners may each have the right to trigger a buy-sell arrangement, which could cause us to sell our interest, or acquire our partners' interest, at a time when we otherwise would not have initiated such a transaction. Any of these risks could materially and adversely affect our ability to generate and recognize attractive returns on our joint venture investments, which could have a material adverse effect on our results of operations, financial condition and distributions to our stockholders.
Our Success Depends, in part, on Our Ability to Attract and Retain Talented Employees.
Our ability to attract, retain and motivate talented employees could significantly impact our future performance. Competition for these individuals is intense, and we cannot assure you that we will retain our key officers and employees or that we will be able to attract and retain other highly qualified individuals in the future.
We Regularly Expend Capital to Maintain, Repair and Renovate Our Properties Which Could Negatively Impact Our Financial Condition and Results of Operations.
We may, or we may be required to, from time to time make significant capital expenditures to maintain or enhance the competitiveness of our Properties. There can be no assurances that any such expenditures would result in higher occupancy or higher rental rates.
Risks Relating to Governmental Regulation and Potential Litigation
Risks of Governmental Action and of Litigation.
We own Properties in certain areas of the country where the rental rates in our Properties have not increased as fast as the real estate values either because of locally imposed rent control or long term leases. In such areas, certain local government entities have at times investigated the possibility of seeking to take our Properties by eminent domain at values below the value of the underlying land. While no such eminent domain proceeding has been commenced, and we would exercise all of our rights in connection with any such proceeding, successful condemnation proceedings by municipalities could adversely affect our financial condition. Moreover, certain of our Properties located in California are subject to rent control ordinances, some of which not only severely restrict ongoing rent increases but also prohibit us from increasing rents upon turnover. Such regulations allow customers to sell their homes for a premium representing the value of the future rent discounts resulting from rent-controlled rents.
Tenant groups have previously filed lawsuits against us seeking to limit rent increases and/or seeking large damage awards for our alleged failure to properly maintain certain Properties or other tenant related matters.
Risks of Rent Control Legislation.
Certain of our Properties are subject to state and local rent control regulations that limit our ability to increase rents and to recover increases in operating expenses and the costs of capital improvements. In addition, in certain jurisdictions, such regulations allow tenants to sell their homes for a price that includes a premium above the intrinsic value of the homes. The premium represents the value of the future discounted rent-controlled rents, which is fully capitalized into the prices of the homes sold. In our view, such regulations result in a transfer to the tenants of the value of our land, which would otherwise be reflected in market rents. As part of our effort to realize the value of Properties subject to restrictive regulation, we have initiated lawsuits at various times against various municipalities imposing such regulations in an attempt to balance the interests of our stockholders with the interests of our customers. In addition, we operate certain of our Properties, and may acquire additional properties, in high cost markets where the demand for affordable housing may result in the adoption of new rent control legislation that may limit our ability to increase rent.
Laws and Regulations Relating to Campground Membership Sales and Properties Could Adversely Affect the Value of Certain Properties and Our Cash Flow.
Many of the states in which we do business have laws regulating right-to-use or campground membership sales. These laws generally require comprehensive disclosure to prospective purchasers, and usually give purchasers the right to rescind their purchase between three to five days after the date of sale. Some states have laws requiring us to register with a state agency and obtain a permit to market. We are subject to changes, from time to time, in the application or interpretation of such laws that can affect our business or the rights of our members.
In some states, including California, Oregon and Washington, laws place limitations on the ability of the owner of a campground property to close the property unless the customers at the property receive access to a comparable property. The impact of the rights of customers under these laws is uncertain and could adversely affect the availability or timing of sale opportunities or our ability to realize recoveries from Property sales.
10
The government authorities regulating our activities have broad discretionary power to enforce and interpret the statutes and regulations that they administer, including the power to enjoin or suspend sales activities, require or restrict construction of additional facilities and revoke licenses and permits relating to business activities. We monitor our sales and marketing programs and debt collection activities to control practices that might violate consumer protection laws and regulations or give rise to consumer complaints.
Certain consumer rights and defenses that vary from jurisdiction to jurisdiction may affect our portfolio of contracts receivable. Examples of such laws include state and federal consumer credit and truth-in-lending laws requiring the disclosure of finance charges, and usury and retail installment sales laws regulating permissible finance charges.
In certain states, as a result of government regulations and provisions in certain of the right-to-use or campground membership agreements, we are prohibited from selling more than ten memberships per site. At the present time, these restrictions do not preclude us from selling memberships in any state. However, these restrictions may limit our ability to utilize Properties for public usage and/or our ability to convert Sites to more profitable or predictable uses, such as annual rentals.
Environmental Risks
Changes in Oil and Gasoline Prices May Have an Adverse Impact on Our Properties and the RV Industry.
In the event the cost to power RVs increases, customers may reduce the amount of time spent traveling in their RVs. This may negatively impact revenues at our Properties that target these customers.
We have Properties located in geographic areas that are dependent on the energy industry for jobs. In the event the local economies in these areas are negatively impacted by declining oil prices, we may experience reduced property occupancy or be unable to increase rental rates at such Properties.
Environmental and Utility-Related Problems are Possible and Can be Costly.
Federal, state and local laws and regulations relating to the protection of the environment may require a current or previous owner or operator of real property to investigate and clean up hazardous or toxic substances or petroleum product releases at such property. The owner or operator may have to pay a governmental entity or third parties for property damage and for investigation and clean-up costs incurred by such parties in connection with the contamination. Such laws typically impose clean-up responsibility and liability without regard to whether the owner or operator knew of or caused the presence of the contaminants. Even if more than one person may have been responsible for the contamination, each person covered by the environmental laws may be held responsible for all of the clean-up costs incurred. In addition, third parties may sue the owner or operator of a site for damages and costs resulting from environmental contamination emanating from that site.
Environmental laws also govern the presence, maintenance and removal of asbestos. Such laws require that owners or operators of property containing asbestos properly manage and maintain the asbestos, that they notify and train those who may come into contact with asbestos and that they undertake special precautions, including removal or other abatement, if asbestos would be disturbed during renovation or demolition of a building. Such laws may impose fines and penalties on real property owners or operators who fail to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.
Utility-related laws and regulations also govern the provision of utility services. Such laws regulate, for example, how and to what extent owners or operators of property can charge renters for provision of utilities. Such laws also regulate the operations and performance of utility systems and may impose fines and penalties on real property owners or operators who fail to comply with these requirements. The regulations may also require capital investment to maintain compliance.
We Have a Significant Concentration of Properties in Florida and California, and Natural Disasters or Other Catastrophic Events in These or Other States Could Adversely Affect the Value of Our Properties and Our Cash Flow.
As of
December 31, 2017
, we owned or had an ownership interest in
406
Properties located in
32
states and British Columbia, including
138
Properties located in Florida and
49
Properties located in California. The occurrence of a natural disaster or other catastrophic event in any of these areas may cause a sudden decrease in the value of our Properties. While we have obtained insurance policies providing certain coverage against damage from fire, flood, property damage, earthquake, soil erosion, wind storm and business interruption, these insurance policies contain coverage limits, limits on covered property and various deductible amounts that we must pay before insurance proceeds are available. Such insurance may therefore be insufficient to restore our economic position with respect to damage or destruction to our Properties caused by such occurrences. Moreover, each of these coverages must be renewed every year and there is the possibility that all or some of the coverages may not be available at a reasonable cost. In addition, in the event of such a natural disaster or other catastrophic event, the process of obtaining reimbursement
11
for covered losses, including the lag between expenditures we incurred and reimbursements received from the insurance providers, could adversely affect our economic performance.
We Face Possible Risks Associated With the Physical Effects of Climate Change.
We cannot predict with certainty whether climate change is occurring and, if so, at what rate. However, the physical effects of climate change could have a material adverse effect on our Properties, operations and business. For example, many of our Properties are located in the southeast and southwest regions of the United States, particularly in Florida, California and Arizona. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining demand for space in our Properties or our inability to operate them. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the cost of snow removal or related costs at our Properties. Proposed legislation to address climate change could increase utility and other costs of operating our Properties which, if not offset by rising rental income, would reduce our net income. There can be no assurance that climate change will not have a material adverse effect on our Properties, operations or business.
Risks Relating to Debt and the Financial Markets
Debt Payments Could Adversely Affect Our Financial Condition
.
Our business is subject to risks normally associated with debt financing. The total principal amount of our outstanding indebtedness was approximately
$2,223.7 million
as of
December 31, 2017
, of which approximately
$3.0 million
, or
0.1%
, and
$198.5 million
, or
8.9%
, mature in 2018 and 2019, respectively. Our substantial indebtedness and the cash flow associated with serving our indebtedness could have important consequences, including the risks that:
|
•
|
our cash flow could be insufficient to pay distributions at expected levels and meet required payments of principal and interest;
|
|
•
|
we might be required to use a substantial portion of our cash flow from operations to pay our indebtedness, thereby reducing the availability of our cash flow to fund the implementation of our business strategy, acquisitions, capital expenditures and other general corporate purposes;
|
|
•
|
our debt service obligations could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
|
|
•
|
we may not be able to refinance existing indebtedness (which requires substantial principal payments at maturity) and, if we can, the terms of such refinancing might not be as favorable as the terms of existing indebtedness;
|
|
•
|
if principal payments due at maturity cannot be refinanced, extended or paid with proceeds of other capital transactions, such as new equity capital, our cash flow may not be sufficient in all years to repay all maturing debt;
|
|
•
|
prevailing interest rates or other factors at the time of refinancing (such as the possible reluctance of lenders to make commercial real estate loans) result in higher interest rates, increased interest expense would adversely affect net income, cash flow and our ability to service debt and make distributions to stockholders;
|
|
•
|
to the extent that any Property is cross-collateralized with any other Properties, any default under the mortgage note relating to one Property will result in a default under the financing arrangements relating to other Properties that also provide security for that mortgage note or are cross-collateralized with such mortgage note; and
|
|
•
|
recent increases in the U.S. federal reserve funds rate will likely result in an increase in market interest rates, which may increase the costs of refinancing existing indebtedness or obtaining new debt.
|
Ability To Obtain Mortgage Financing Or To Refinance Maturing Mortgages May Adversely Affect Our Financial Condition
.
Lenders' demands on borrowers as to the quality of the collateral and related cash flows may make it challenging to secure financing on attractive terms or at all. If terms are no longer attractive or if financing proceeds are no longer available for any reason, these factors may adversely affect cash flow and our ability to service debt and make distributions to stockholders.
Financial Covenants Could Adversely Affect Our Financial Condition
.
If a Property is mortgaged to secure payment of indebtedness, and we are unable to meet mortgage payments, the mortgagee could foreclose on the Property, resulting in loss of income and asset value. The mortgages on our Properties contain customary negative covenants, which among other things limit our ability, without the prior consent of the lender, to further mortgage the Property and to discontinue insurance coverage. In addition, our unsecured credit facilities contain certain customary restrictions, requirements and other limitations on our ability to incur indebtedness, including total debt-to-assets ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt. Foreclosure on mortgaged Properties or an inability to refinance existing indebtedness would likely have a negative impact on our financial condition and results of operations.
12
Our Degree of Leverage Could Limit Our Ability to Obtain Additional Financing
.
Our debt-to-market-capitalization ratio (total debt as a percentage of total debt plus the market value of the outstanding common stock and OP Units held by parties other than us) was approximately
20.9%
as of
December 31, 2017
. The degree of leverage could have important consequences to stockholders, including an adverse effect on our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, development or other general corporate purposes, and makes us more vulnerable to a downturn in business or the economy generally.
We May Be Able To Incur Substantially More Debt, Which Would Increase The Risks Associated With Our Substantial Leverage.
Despite our current indebtedness levels, we may still be able to incur substantially more debt in the future. If new debt is added to our current debt levels, an even greater portion of our cash flow will be needed to satisfy our debt service obligations. As a result, the related risks that we now face could intensify and increase the risk of a default on our indebtedness.
Risks Related to Our Company Ownership
Provisions of Our Charter and Bylaws Could Inhibit Changes of Control.
Certain provisions of our charter and bylaws may delay or prevent a change of control or other transactions that could provide our stockholders with a premium over the then-prevailing market price of their common stock or future series of preferred stock, if any, which might otherwise be in the best interest of our stockholders. These include the Ownership Limit described below. Also, any future series of preferred stock may have certain voting provisions that could delay or prevent a change of control or other transaction that might involve a premium price or otherwise be beneficial to our stockholders.
Maryland Law Imposes Certain Limitations on Changes of Control.
Certain provisions of Maryland law prohibit "business combinations" (including certain issuances of equity securities) with any person who beneficially owns 10% or more of the voting power of our outstanding common stock, or with an affiliate of ours, who, at any time within the two-year period prior to the date in question, was the owner of 10% or more of the voting power of our outstanding voting stock (an "Interested Stockholder"), or with an affiliate of an Interested Stockholder. These prohibitions last for five years after the most recent date on which the Interested Stockholder became an Interested Stockholder. After the five-year period, a business combination with an Interested Stockholder must be approved by two super-majority stockholder votes unless, among other conditions, our common stockholders receive a minimum price for their shares and the consideration is received in cash or in the same form as previously paid by the Interested Stockholder for shares of our common stock. The Board of Directors has exempted from these provisions under the Maryland law any business combination with Samuel Zell, who is our Chairman of the Board, certain holders of OP Units who received them at the time of our initial public offering, and our officers who acquired common stock at the time we were formed and each and every affiliate of theirs.
Conflicts of Interest Could Influence Our Decisions
.
Certain stockholders could exercise influence in a manner inconsistent with stockholders' best interests. Mr. Samuel Zell and certain related entities, directly or indirectly, beneficially own shares of our common stock and OP Units as disclosed in our Proxy Statement on Schedule 14A for the 2018 Annual Meeting incorporated by reference herein. Mr. Zell is the chairman of our Board of Directors. Accordingly, Mr. Zell has significant influence on our management and operation. Such influence could be exercised in a manner that is inconsistent with the interests of other stockholders. In addition, Mr. Zell and related entities continue to be involved in other investment activities. Mr. Zell and related entities have a broad and varied range of investment interests, including interests in other real estate investment companies that own other forms of housing, including multifamily housing. Mr. Zell and related entities may acquire interests in other companies. Mr. Zell may not be able to control whether any such company competes with us.
Risks Relating to Our Common Stock
We Depend on Our Subsidiares' Dividends and Distributions.
Substantially all of our assets are owned indirectly by the Operating Partnership. As a result, we have no source of cash flow other than distributions from our Operating Partnership. For us to pay dividends to holders of our common stock and preferred stock, the Operating Partnership must first distribute cash to us. Before it can distribute the cash, our Operating Partnership must first satisfy its obligations to its creditors.
13
Market Interest Rates May Have an Effect on the Value of Our Common Stock.
One of the factors that investors consider important in deciding whether to buy or sell shares of a REIT is the distribution rates with respect to such shares (as a percentage of the price of such shares) relative to market interest rates. If market interest rates go up, prospective purchasers of REIT shares may expect a higher distribution rate. Higher interest rates would not, however, result in more of our funds to distribute and, in fact, would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our publicly traded securities to go down.
Issuances or Sales of our Common Stock May Be Dilutive.
On November 2, 2017, we entered into new separate equity distribution agreements with certain sales agents as part of an at the market ("ATM") equity offering program. The issuance or sale of substantial amounts of our common stock could have a dilutive effect on our actual and expected earnings per share, funds from operations (“FFO”) per share and Normalized FFO per share. The actual amount of dilution cannot be determined at this time and would be dependent upon numerous factors which are not currently known to us.
Risks Relating to REITs and Income Taxes
We are Dependent on External Sources of Capital.
To qualify as a REIT, we must distribute to our stockholders each year at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding any net capital gain). In addition, we intend to distribute all or substantially all of our net income so that we will generally not be subject to U.S. federal income tax on our earnings. Because of these distribution requirements, it is not likely that we will be able to fund all future capital needs, including acquisitions, from income from operations. We therefore will have to rely on third-party sources of debt and equity capital financing, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including conditions in the capital markets generally and the market's perception of our growth potential and our current and potential future earnings. It may be difficult for us to meet one or more of the requirements for qualification as a REIT, including but not limited to our distribution requirement. Moreover, additional equity offerings may result in substantial dilution of stockholders' interests, and additional debt financing may substantially increase our leverage.
We Have a Stock Ownership Limit for REIT Tax Purposes.
To remain qualified as a REIT for U.S. federal income tax purposes, not more than 50% in value of our outstanding shares of capital stock may be owned, directly or indirectly, by five or fewer individuals (as defined in the federal income tax laws applicable to REITs) at any time during the last half of any taxable year. To facilitate maintenance of our REIT qualification, our charter, subject to certain exceptions, prohibits Beneficial Ownership (as defined in our charter) by any single stockholder of more than 5% (in value or number of shares, whichever is more restrictive) of our outstanding capital stock. We refer to this as the "Ownership Limit." Within certain limits, our charter permits the Board of Directors to increase the Ownership Limit with respect to any class or series of stock. The Board of Directors, upon receipt of a ruling from the IRS, opinion of counsel, or other evidence satisfactory to the Board of Directors and upon 15 days prior written notice of a proposed transfer which, if consummated, would result in the transferee owning shares in excess of the Ownership Limit, and upon such other conditions as the Board of Directors may direct, may exempt a stockholder from the Ownership Limit. Absent any such exemption, capital stock acquired or held in violation of the Ownership Limit will be transferred by operation of law to us as trustee for the benefit of the person to whom such capital stock is ultimately transferred, and the stockholder's rights to distributions and to vote would terminate. Such stockholder would be entitled to receive, from the proceeds of any subsequent sale of the capital stock we transferred as trustee, the lesser of (i) the price paid for the capital stock or, if the owner did not pay for the capital stock (for example, in the case of a gift, devise or other such transaction), the market price of the capital stock on the date of the event causing the capital stock to be transferred to us as trustee or (ii) the amount realized from such sale. A transfer of capital stock may be void if it causes a person to violate the Ownership Limit. The Ownership Limit could delay or prevent a change in control of us and, therefore, could adversely affect our stockholders' ability to realize a premium over the then-prevailing market price for their common stock or adversely affect the best interest of our stockholders.
Our Qualification as a REIT is Dependent on Compliance with U.S. Federal Income Tax Requirements
.
We believe we have been organized and operated in a manner so as to qualify for taxation as a REIT, and we intend to continue to operate so as to qualify as a REIT for U.S. federal income tax purposes. Our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Code, which relate to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If
14
we qualify for taxation as a REIT, we are generally not subject to U.S. federal income tax on our taxable income that is distributed to our stockholders. However, qualification as a REIT for U.S. federal income tax purposes is governed by highly technical and complex provisions of the Code for which there are only limited judicial or administrative interpretations. In connection with certain transactions, we have received, and relied upon, advice of counsel as to the impact of such transactions on our qualification as a REIT. Our qualification as a REIT requires analysis of various facts and circumstances that may not be entirely within our control, and we cannot provide any assurance that the Internal Revenue Service (the "IRS") will agree with our analysis or the analysis of our tax counsel. In particular, the proper U.S. federal income tax treatment of right-to-use membership contracts and rental income from certain short-term stays at RV communities is uncertain and there is no assurance that the IRS will agree with our treatment of such contracts or rental income. If the IRS were to disagree with our analysis or our tax counsel's analysis of various facts and circumstances, our ability to qualify as a REIT could be adversely affected.
In addition, legislation, new regulations, administrative interpretations or court decisions might significantly change the tax laws with respect to the requirements for qualification as a REIT or the U.S. federal income tax consequences of qualification as a REIT.
If, with respect to any taxable year, we failed to maintain our qualification as a REIT (and if specified relief provisions under the Code were not applicable to such disqualification), we would be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost. If we lost our REIT status, we could not deduct distributions to stockholders in computing our net taxable income at regular corporate rates and we would be subject to U.S. federal income tax (including any applicable alternative minimum tax) on our net taxable incomes. If we had to pay U.S. federal income tax, the amount of money available to distribute to stockholders and pay indebtedness would be reduced for the year or years involved, and we would no longer be required to distribute money to stockholders. Although we currently intend to operate in a manner designed to allow us to qualify as a REIT, future economic, market, legal, tax or other considerations may cause us to revoke the REIT election.
Furthermore, we own a direct interest in a subsidiary REIT, and in the past we have owned interests in other subsidiary REITs, each of which elected to be taxed as REITs under Sections 856 through 860 of the Code. Provided that each subsidiary REIT that we own qualifies as a REIT, our interest in such subsidiary REIT will be treated as a qualifying real estate asset for purposes of the REIT asset tests, and any dividend income or gains derived by us from such subsidiary REIT will generally be treated as income that qualifies for purposes of the REIT gross income tests. To qualify as a REIT, the subsidiary REIT must independently satisfy all of the REIT qualification requirements. If such subsidiary REIT were to fail to qualify as a REIT, and certain relief provisions did not apply, it would be treated as a regular taxable corporation and its income would be subject to U.S. federal income tax. In addition, a failure of the subsidiary REIT to qualify as a REIT could have an adverse effect on our ability to comply with the REIT income and asset tests, and thus our ability to qualify as a REIT.
We May Pay Some Taxes, Reducing Cash Available for Stockholders.
Even if we qualify as a REIT for U.S. federal income tax purposes, we may be subject to some U.S. federal, foreign, state and local taxes on our income and property. Since January 1, 2001, certain of our corporate subsidiaries have elected to be treated as "taxable REIT subsidiaries" for U.S. federal income tax purposes, and are taxable as regular corporations and subject to certain limitations on intercompany transactions. If tax authorities determine that amounts paid by our taxable REIT subsidiaries to us are greater than what would be paid under similar arrangements among unrelated parties, we could be subject to a 100% penalty tax on the excess payments, and ongoing intercompany arrangements could have to change, resulting in higher ongoing tax payments. To the extent we are required to pay U.S. federal, foreign, state or local taxes or U.S. federal penalty taxes due to existing laws or changes to them, we will have less cash available for distribution to our stockholders.
Recent Changes to U.S. Tax Laws and Related Interpretations Could Adversely Impact Us.
On December 22, 2017, H.R. 1, commonly referred to as the Tax Cuts and Jobs Act was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the "Code").
While the changes in the Tax Cuts and Jobs Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or our stockholders. Moreover, Congressional leaders have recognized that the process of adopting extensive tax legislation in a short amount of time without hearings and substantial time for review is likely to have led to drafting errors, issues needing clarification and unintended consequences that will have to be reviewed in subsequent tax legislation. At this point, it is not clear when Congress will address these issues or when the Internal Revenue Service will issue administrative guidance on the changes made in the Tax Cuts and Jobs Act.
As a result of the changes to U.S. federal tax laws implemented by the Tax Cuts and Jobs Act, our taxable income and the amount of distributions to our stockholders required in order to maintain our REIT status, and our relative tax advantage as a REIT, may change. The long-term impact of the Tax Cuts and Jobs Act on the overall economy, government revenues, our tenants, us,
15
and the real estate industry cannot be reliably predicted at this early stage of the new law’s implementation. There can be no assurance that the Tax Cuts and Jobs Act will not negatively impact our operating results, financial condition, and future business operations. For additional discussion of the Tax Cuts and Jobs Act, see "Recent U.S. Federal Income Tax Legislation." You are urged to consult with your tax advisor with respect to the status of legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our shares.
Other Risk Factors Affecting Our Business
Some Potential Losses Are Not Covered by Insurance.
We carry comprehensive insurance coverage for losses resulting from property damage and environmental liability and business interruption claims on all of our Properties. In addition we carry liability coverage for other activities not specifically related to property operations. These coverages include, but are not limited to, Directors & Officers liability, Employer Practices liability, Fiduciary liability and Cyber liability. We believe that the policy specifications and coverage limits of these policies should be adequate and appropriate. There are, however, certain types of losses, such as punitive damages, lease and other contract claims that generally are not insured. Should an uninsured loss or a loss in excess of coverage limits occur, we could lose all or a portion of the capital we have invested in a Property or the anticipated future revenue from a Property. In such an event, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the Property.
Our current property and casualty insurance policies, which we plan to renew, expire on April 1, 2018. We have a $100 million loss limit with respect to our all-risk property insurance program including named windstorms, which include, for example, hurricanes. This loss limit is subject to additional sub-limits as set forth in the policy form, including, among others, a $25 million aggregate loss limit for an earthquake in California. Policy deductibles primarily range from a $125,000 minimum to 5% per unit of insurance for most catastrophic events. A deductible indicates our maximum exposure, subject to policy limits and sub-limits, in the event of a loss.
American with Disabilities Act Compliance Could be Costly.
Under the Americans with Disabilities Act of 1990 ("ADA"), all public accommodations and commercial facilities must meet certain federal requirements related to access and use by disabled persons. Compliance with the ADA requirements could involve removal of structural barriers to access or use by disabled persons. Other federal, state and local laws may require modifications to or restrict further renovations of our Properties with respect to such accesses. Although we believe that our Properties are in compliance in all material respects with present requirements, noncompliance with the ADA or related laws or regulations could result in the United States government imposing fines or private litigants being awarded damages against us. Such costs may adversely affect our ability to make distributions or payments to our investors.
Fluctuations in the Exchange Rate of the U.S. dollar to Other Currencies, Primarily the Canadian dollar, May Impact Our Business.
Many of our southern and northern Properties earn significant revenues from Canadian customers who visit during the winter season. In the event the value of Canadian currency decreases relative to the U.S. dollar, we may see a decline in revenue from these customers.
We Face Risks Relating to Cybersecurity Incidents and Expanding Use of Social Media Vehicles.
We rely extensively on internally and externally hosted computer systems to process transactions and manage our business. Critical components of our systems are dependent upon third-party providers and a significant portion of our business operations are conducted over the internet. These systems and websites require access to telecommunications or the internet, each of which is subject to system security risks, cybersecurity breaches, outages and other risks. These could include attempts to gain unauthorized access to our data and computer systems, or steal confidential information, including credit card information from our customers, breaches due to employee error, malfeasance or other disruptions, including disruptions that result in our and our customers' loss of access to our information systems. Attacks can be both individual or highly organized attempts by very sophisticated hacking organizations. We employ a number of measures to prevent, detect and mitigate these threats. While we continue to improve our cybersecurity and take measures to protect our business, there is no guarantee such efforts will be successful in preventing a cyber incident and that our financial results will not be negatively impacted by such an incident. A cybersecurity incident could compromise the confidential information of our employees, customers and vendors to the extent such information exists on our systems or on the systems of third party providers. Such an incident could result in potential liability, damage our reputation and disrupt and affect our business operations and result in lawsuits against us.
In addition, the use of social media could cause us to suffer brand damage or information leakage. Negative posts or comments about us, our officers, employees or directors or our Properties on any social networking website could damage our, or
16
our Properties' reputations. In addition, employees or others might disclose non-public sensitive information relating to our business through external media channels. The continuing evolution of social media will present us with new challenges and risks.
Regulation of Chattel Financing May Affect Our Ability to Sell homes.
Since 2010, the regulatory environment has made it difficult for purchasers of manufactured homes and RVs to obtain financing. Legislation enacted in 2010 known as the SAFE Act (Safe Mortgage Licensing Act) requires community owners interested in providing financing for customer purchases of manufactured homes to register as a mortgage loan originator in states where they engage in such financing. In addition, the Dodd-Frank Act has amended the Truth in Lending Act and other consumer protection laws by adding requirements for residential mortgage loans, including limitations on mortgage origination activities, restrictions on high-cost mortgages and new standards for appraisals. The law also requires lenders to make a reasonable investigation into a borrower's ability to repay a loan. These requirements make it more difficult for homeowners to obtain affordable financing, and especially for moderate income people to obtain smaller loans to purchase manufactured housing or RVs.
Interpretation of and Changes to Accounting Policies and Standards Could Adversely Affect Our Reported Financial Results.
Our accounting policies and methods are fundamental to the manner in which we record and report our financial condition and results of operations. Management must exercise judgment in selecting and applying many of these accounting policies and methods in order to ensure that they comply with generally accepted accounting principles and reflect management's judgment as to the most appropriate manner in which to record and report our financial condition and results of operations. In some cases, management must select the accounting policy or method to apply from two or more alternatives, any of which might be reasonable under the circumstances yet might result in reporting materially different amounts than would have been reported under a different alternative.
Additionally, the bodies that set accounting standards for public companies, including the Financial Accounting Standards Board ("FASB"), the SEC and others, periodically change or revise existing interpretations of the accounting and reporting standards that govern the way that we report our financial condition, results of operations, and cash flows. These changes can be difficult to predict and can materially impact our reported financial results. In some cases, we could be required to apply a new or revised accounting standard, or a revised interpretation of an accounting standard, retroactively, which could have a negative impact on reported results or result in the restatement of our financial statements for prior periods.
In 2008, we began entering right-to-use contracts. A right-to-use contract gives the customer the right to a set schedule of usage at a specified group of Properties. Payments are deferred and recognized ratably over the one year period in which access to Sites at certain Properties are provided. Right-to-use upgrade contracts, which require upfront non-refundable payments, supplement the right-to-use contract and grant certain additional access rights to the customer. We incur significant selling and marketing expenses to originate the right-to-use upgrade contracts. Under current accounting standards, the right-to-use upgrade contract revenues and related commissions expense are deferred and recognized based on historical attrition rates over the expected customer life of up to
40 years
. This accounting may make it difficult for investors to interpret the financial results from right-to-use upgrade contracts. In May 2014, the FASB issued Accounting Standard Update no. 2014-09, "Revenue from Contracts with Customers," which along with related subsequent amendments will replace most existing revenue recognition guidance in U.S. GAAP. We will adopt this guidance during the first quarter of 2018 (see Note 2 to the Consolidated Financial Statements for additional detail regarding our adoption of this guidance).
In February 2016, the FASB issued ("ASU 2016-02")
Leases
. which will amend the existing accounting standards for lease accounting guidance in U.S. GAAP (see Note 2 to the Consolidated Financial Statements for additional detail regarding this guidance).
Any Weaknesses Identified in Our Internal Control Over Financial Reporting Could Have an Adverse Effect on Our Stock Price.
Section 404 of the Sarbanes-Oxley Act 2002 requires us to evaluate and report on our internal control over financial reporting. If we identify one or more material weaknesses in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports. which in turn could have an adverse effect on our stock price.
None.
17
General
Our Properties provide attractive amenities and common facilities that create a comfortable and attractive home for our customers, with most offering a clubhouse, a swimming pool, laundry facilities, cable television and internet service. Many also offer additional amenities such as sauna/whirlpool spas, golf courses, tennis, pickleball courts, shuffleboard and basketball courts, exercise rooms and various social activities. Since most of our customers generally own their home and live in our communities for a long time, it is their responsibility to maintain their homes and the surrounding area. It is our role to ensure that customers comply with our Property policies and to provide maintenance of the common areas, facilities and amenities. We hold periodic meetings with our Property management personnel for training and implementation of our strategies. The Properties historically have had, and we believe they will continue to have, low turnover and high occupancy rates.
Property Portfolio
As of
December 31, 2017
, we owned or had an ownership interest in a portfolio of
406
Properties located throughout the United States and British Columbia containing
151,323
Sites. A total of
120
of the Properties are encumbered by debt as of
December 31, 2017
(see Note 8 to the Consolidated Financial Statements for a description of this debt). The distribution of our Properties throughout the United States reflects our belief that geographic diversification helps to insulate the portfolio from regional economic influences. We intend to target new acquisitions in or near markets where our Properties are located and will also consider acquisitions of properties outside such markets.
Our two largest Properties as determined by property operating revenues are Colony Cove, located in Ellenton, Florida, and Viewpoint Resort, located in Mesa, Arizona. Each accounted for approximately 2.0% of our total property operating revenues, including deferrals, for the year ended
December 31, 2017
.
The following table sets forth certain information relating to our
389
wholly owned Properties containing
145,382
Sites as of
December 31, 2017
. These Properties are categorized according to major markets and exclude Properties owned through joint ventures. The total number of annual Sites presented for the RV communities represents Sites occupied by annual customers and are presented as 100% occupied. Subtotals by markets and grand totals for all markets are presented on a weighted average basis.
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Florida
|
||||||||||||||||||
|
East Coast:
|
||||||||||||||||||
|
Cheron Village
|
Davie
|
FL
|
MH
|
30
|
202
|
202
|
99.5
|
%
|
||||||||||
|
Carriage Cove
|
Daytona Beach
|
FL
|
MH
|
59
|
418
|
418
|
90.9
|
%
|
||||||||||
|
Coquina Crossing
|
Elkton
|
FL
|
MH
|
316
|
26
|
597
|
597
|
92.1
|
%
|
|||||||||
|
Bulow Plantation
|
Flagler Beach
|
FL
|
MH
|
323
|
181
|
276
|
276
|
100.0
|
%
|
|||||||||
|
Bulow RV
|
Flagler Beach
|
FL
|
RV
|
(e)
|
352
|
103
|
100.0
|
%
|
||||||||||
|
Carefree Cove
|
Ft Lauderdale
|
FL
|
MH
|
20
|
164
|
164
|
93.9
|
%
|
||||||||||
|
Park City West
|
Ft Lauderdale
|
FL
|
MH
|
60
|
363
|
363
|
98.6
|
%
|
||||||||||
|
Sunshine Holiday MH
|
Ft Lauderdale
|
FL
|
MH
|
32
|
245
|
245
|
98.0
|
%
|
||||||||||
|
Sunshine Holiday RV
|
Ft Lauderdale
|
FL
|
RV
|
(e)
|
130
|
49
|
100.0
|
%
|
||||||||||
|
Lake Worth Village
|
Lake Worth
|
FL
|
MH
|
117
|
823
|
823
|
89.1
|
%
|
||||||||||
|
Maralago Cay
|
Lantana
|
FL
|
MH
|
102
|
5
|
602
|
602
|
100.0
|
%
|
|||||||||
|
Coral Cay Plantation
|
Margate
|
FL
|
MH
|
121
|
818
|
818
|
99.4
|
%
|
||||||||||
18
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Lakewood Village
|
Melbourne
|
FL
|
MH
|
68
|
349
|
349
|
87.1
|
%
|
||||||||||
|
Miami Everglades
|
Miami
|
FL
|
RV
|
34
|
303
|
102
|
100.0
|
%
|
||||||||||
|
Encore Super Park(Sunshine Holiday)
|
Ormond Beach
|
FL
|
RV
|
69
|
349
|
142
|
100.0
|
%
|
||||||||||
|
Holiday Village
|
Ormond Beach
|
FL
|
MH
|
43
|
301
|
301
|
86.7
|
%
|
||||||||||
|
The Meadows, FL
|
Palm Beach Gardens
|
FL
|
MH
|
55
|
378
|
378
|
97.1
|
%
|
||||||||||
|
Breezy Hill RV
|
Pompano Beach
|
FL
|
RV
|
52
|
762
|
396
|
100.0
|
%
|
||||||||||
|
Highland Wood RV
|
Pompano Beach
|
FL
|
RV
|
15
|
148
|
17
|
100.0
|
%
|
||||||||||
|
Rose Bay
|
Port Orange
|
FL
|
RV
|
21
|
303
|
204
|
100.0
|
%
|
||||||||||
|
Lighthouse Pointe
|
Port Orange
|
FL
|
MH
|
64
|
433
|
433
|
84.1
|
%
|
||||||||||
|
Pickwick
|
Port Orange
|
FL
|
MH
|
84
|
4
|
432
|
432
|
99.3
|
%
|
|||||||||
|
Space Coast
|
Rockledge
|
FL
|
RV
|
24
|
270
|
136
|
100.0
|
%
|
||||||||||
|
Indian Oaks
|
Rockledge
|
FL
|
MH
|
38
|
208
|
208
|
100.0
|
%
|
||||||||||
|
Encore RV Park(Sunshine Travel)
|
Vero Beach
|
FL
|
RV
|
30
|
6
|
300
|
130
|
100.0
|
%
|
|||||||||
|
Village Green
|
Vero Beach
|
FL
|
MH
|
174
|
782
|
782
|
87.7
|
%
|
||||||||||
|
Heron Cay
|
Vero Beach
|
FL
|
MH
|
130
|
589
|
589
|
87.6
|
%
|
||||||||||
|
Vero Palm
|
Vero Beach
|
FL
|
MH
|
64
|
285
|
285
|
82.8
|
%
|
||||||||||
|
Heritage Plantation
|
Vero Beach
|
FL
|
MH
|
64
|
437
|
437
|
84.4
|
%
|
||||||||||
|
Countryside at Vero Beach
|
Vero Beach
|
FL
|
MH
|
125
|
644
|
644
|
92.1
|
%
|
||||||||||
|
Holiday Village, FL
|
Vero Beach
|
FL
|
MH
|
20
|
128
|
128
|
—
|
%
|
||||||||||
|
Palm Beach Colony
|
West Palm Beach
|
FL
|
MH
|
48
|
284
|
284
|
100.0
|
%
|
||||||||||
|
Central:
|
||||||||||||||||||
|
Clover Leaf Farms
|
Brooksville
|
FL
|
MH
|
227
|
18
|
777
|
777
|
98.3
|
%
|
|||||||||
|
Clover Leaf Forest
|
Brooksville
|
FL
|
RV
|
30
|
277
|
150
|
100.0
|
%
|
||||||||||
|
Encore Super Park(Lake Magic)
|
Clermont
|
FL
|
RV
|
69
|
471
|
149
|
100.0
|
%
|
||||||||||
|
Clerbrook Golf & RV Resort
|
Clermont
|
FL
|
RV
|
288
|
1,255
|
451
|
100.0
|
%
|
||||||||||
|
Orlando
|
Clermont
|
FL
|
RV
|
270
|
30
|
850
|
141
|
100.0
|
%
|
|||||||||
|
Orange Lake
|
Clermont
|
FL
|
MH
|
38
|
242
|
242
|
99.2
|
%
|
||||||||||
|
Haselton Village
|
Eustis
|
FL
|
MH
|
52
|
291
|
291
|
98.3
|
%
|
||||||||||
|
Southern Palms
|
Eustis
|
FL
|
RV
|
120
|
950
|
345
|
100.0
|
%
|
||||||||||
|
Lakeside Terrace
|
Fruitland Park
|
FL
|
MH
|
39
|
241
|
241
|
99.2
|
%
|
||||||||||
|
Grand Island
|
Grand Island
|
FL
|
MH
|
35
|
362
|
362
|
70.7
|
%
|
||||||||||
|
Tropical Palms
|
Kissimmee
|
FL
|
RV
|
59
|
566
|
115
|
100.0
|
%
|
||||||||||
|
Sherwood Forest RV Park
|
Kissimmee
|
FL
|
RV
|
107
|
43
|
513
|
143
|
100.0
|
%
|
|||||||||
|
Sherwood Forest
|
Kissimmee
|
FL
|
MH
|
124
|
769
|
769
|
97.4
|
%
|
||||||||||
|
Lakeland Harbor
|
Lakeland
|
FL
|
MH
|
65
|
504
|
504
|
99.8
|
%
|
||||||||||
|
Lakeland Junction
|
Lakeland
|
FL
|
MH
|
23
|
193
|
193
|
100.0
|
%
|
||||||||||
|
Beacon Hill Colony
|
Lakeland
|
FL
|
MH
|
31
|
201
|
201
|
100.0
|
%
|
||||||||||
|
Beacon Terrace
|
Lakeland
|
FL
|
MH
|
55
|
297
|
297
|
100.0
|
%
|
||||||||||
19
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Kings & Queens
|
Lakeland
|
FL
|
MH
|
18
|
107
|
107
|
94.4
|
%
|
||||||||||
|
Coachwood Colony
|
Leesburg
|
FL
|
MH
|
29
|
201
|
201
|
91.0
|
%
|
||||||||||
|
Mid-Florida Lakes
|
Leesburg
|
FL
|
MH
|
290
|
1,225
|
1,225
|
86.5
|
%
|
||||||||||
|
Southernaire
|
Mt. Dora
|
FL
|
MH
|
14
|
114
|
114
|
87.7
|
%
|
||||||||||
|
Foxwood
|
Ocala
|
FL
|
MH
|
56
|
365
|
365
|
85.8
|
%
|
||||||||||
|
Oak Bend
|
Ocala
|
FL
|
MH
|
62
|
3
|
262
|
262
|
88.9
|
%
|
|||||||||
|
Villas at Spanish Oaks
|
Ocala
|
FL
|
MH
|
69
|
455
|
455
|
87.3
|
%
|
||||||||||
|
Audubon
|
Orlando
|
FL
|
MH
|
40
|
280
|
280
|
98.6
|
%
|
||||||||||
|
Hidden Valley
|
Orlando
|
FL
|
MH
|
50
|
303
|
303
|
99.0
|
%
|
||||||||||
|
Starlight Ranch
|
Orlando
|
FL
|
MH
|
130
|
783
|
783
|
89.7
|
%
|
||||||||||
|
Covington Estates
|
Saint Cloud
|
FL
|
MH
|
59
|
241
|
241
|
100.0
|
%
|
||||||||||
|
Three Flags RV Resort
|
Wildwood
|
FL
|
RV
|
23
|
221
|
40
|
100.0
|
%
|
||||||||||
|
Parkwood Communities
|
Wildwood
|
FL
|
MH
|
121
|
694
|
694
|
97.8
|
%
|
||||||||||
|
Winter Garden
|
Winter Garden
|
FL
|
RV
|
27
|
350
|
146
|
100.0
|
%
|
||||||||||
|
Gulf Coast (Tampa/Naples):
|
||||||||||||||||||
|
Riverside RV
|
Arcadia
|
FL
|
RV
|
196
|
499
|
10
|
100.0
|
%
|
||||||||||
|
Toby's RV
|
Arcadia
|
FL
|
RV
|
44
|
379
|
270
|
100.0
|
%
|
||||||||||
|
Sunshine Key RV Resort (g)
|
Big Pine Key
|
FL
|
RV
|
54
|
409
|
—
|
—
|
%
|
||||||||||
|
Encore RV Park(Manatee)
|
Bradenton
|
FL
|
RV
|
42
|
415
|
244
|
100.0
|
%
|
||||||||||
|
Windmill Manor
|
Bradenton
|
FL
|
MH
|
49
|
292
|
292
|
96.6
|
%
|
||||||||||
|
Shady Lane Oaks
|
Clearwater
|
FL
|
MH
|
31
|
249
|
249
|
97.6
|
%
|
||||||||||
|
Shady Lane Village
|
Clearwater
|
FL
|
MH
|
19
|
156
|
156
|
95.5
|
%
|
||||||||||
|
Hillcrest
|
Clearwater
|
FL
|
MH
|
25
|
278
|
278
|
96.4
|
%
|
||||||||||
|
Holiday Ranch
|
Clearwater
|
FL
|
MH
|
12
|
150
|
150
|
97.3
|
%
|
||||||||||
|
Silk Oak
|
Clearwater
|
FL
|
MH
|
19
|
181
|
181
|
95.6
|
%
|
||||||||||
|
Glen Ellen
|
Clearwater
|
FL
|
MH
|
12
|
106
|
106
|
91.5
|
%
|
||||||||||
|
Encore Super Park(Crystal Isles)
|
Crystal River
|
FL
|
RV
|
38
|
260
|
83
|
100.0
|
%
|
||||||||||
|
Lake Haven
|
Dunedin
|
FL
|
MH
|
48
|
379
|
379
|
97.9
|
%
|
||||||||||
|
Colony Cove
|
Ellenton
|
FL
|
MH
|
538
|
36
|
2,206
|
2,206
|
98.0
|
%
|
|||||||||
|
Ridgewood Estates
|
Ellenton
|
FL
|
MH
|
77
|
380
|
380
|
100.0
|
%
|
||||||||||
|
Fort Myers Beach Resort
|
Fort Myers
|
FL
|
RV
|
31
|
306
|
116
|
100.0
|
%
|
||||||||||
|
Sunburst RV Park(Gulf Air Travel)
|
Fort Myers Beach
|
FL
|
RV
|
25
|
246
|
157
|
100.0
|
%
|
||||||||||
|
Sunburst RV Park(Barrington Hills)
|
Hudson
|
FL
|
RV
|
28
|
392
|
244
|
100.0
|
%
|
||||||||||
|
Sunburst RV Park(Vacation Village)
|
Largo
|
FL
|
RV
|
29
|
293
|
179
|
100.0
|
%
|
||||||||||
|
Eldorado Village
|
Largo
|
FL
|
MH
|
25
|
227
|
227
|
99.1
|
%
|
||||||||||
|
Whispering Pines - Largo
|
Largo
|
FL
|
MH
|
55
|
393
|
393
|
91.1
|
%
|
||||||||||
|
Paradise Park - Largo (c)
|
Largo
|
FL
|
MH
|
15
|
108
|
108
|
99.1
|
%
|
||||||||||
|
East Bay Oaks
|
Largo
|
FL
|
MH
|
40
|
328
|
328
|
99.4
|
%
|
||||||||||
|
Down Yonder
|
Largo
|
FL
|
MH
|
50
|
361
|
361
|
99.7
|
%
|
||||||||||
|
Shangri La
|
Largo
|
FL
|
MH
|
14
|
160
|
160
|
93.8
|
%
|
||||||||||
20
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Fiesta Key (g)
|
Long Key
|
FL
|
RV
|
28
|
324
|
13
|
100.0
|
%
|
||||||||||
|
Encore RV Park(Pasco)
|
Lutz
|
FL
|
RV
|
27
|
255
|
210
|
100.0
|
%
|
||||||||||
|
Sunburst RV Park(Pioneer Village)
|
N. Ft. Myers
|
FL
|
RV
|
90
|
733
|
381
|
100.0
|
%
|
||||||||||
|
Island Vista MHC
|
N. Ft. Myers
|
FL
|
MH
|
121
|
616
|
616
|
76.8
|
%
|
||||||||||
|
Windmill Village - Ft. Myers
|
N. Ft. Myers
|
FL
|
MH
|
69
|
491
|
491
|
93.1
|
%
|
||||||||||
|
The Heritage
|
N. Ft. Myers
|
FL
|
MH
|
214
|
22
|
453
|
453
|
99.1
|
%
|
|||||||||
|
Pine Lakes
|
N. Ft. Myers
|
FL
|
MH
|
314
|
584
|
584
|
100.0
|
%
|
||||||||||
|
Lake Fairways
|
N. Ft. Myers
|
FL
|
MH
|
259
|
896
|
896
|
100.0
|
%
|
||||||||||
|
Buccaneer
|
N. Ft. Myers
|
FL
|
MH
|
223
|
39
|
971
|
971
|
99.8
|
%
|
|||||||||
|
Country Place
|
New Port Richey
|
FL
|
MH
|
82
|
515
|
515
|
100.0
|
%
|
||||||||||
|
Hacienda Village
|
New Port Richey
|
FL
|
MH
|
66
|
505
|
505
|
99.8
|
%
|
||||||||||
|
Harbor View
|
New Port Richey
|
FL
|
MH
|
69
|
471
|
471
|
97.7
|
%
|
||||||||||
|
Encore Super Park(Royal Coachman-Sarasota South)
|
Nokomis
|
FL
|
RV
|
111
|
546
|
452
|
100.0
|
%
|
||||||||||
|
Lake Village
|
Nokomis
|
FL
|
MH
|
65
|
391
|
391
|
99.7
|
%
|
||||||||||
|
Bay Lake Estates
|
Nokomis
|
FL
|
MH
|
34
|
228
|
228
|
96.9
|
%
|
||||||||||
|
Silver Dollar Resort
|
Odessa
|
FL
|
RV
|
412
|
459
|
383
|
100.0
|
%
|
||||||||||
|
Terra Ceia
|
Palmetto
|
FL
|
RV
|
18
|
203
|
157
|
100.0
|
%
|
||||||||||
|
The Meadows at Countrywood
|
Plant City
|
FL
|
MH
|
140
|
13
|
737
|
737
|
96.4
|
%
|
|||||||||
|
The Arbors at Countrywood
|
Plant City
|
FL
|
MH
|
(e)
|
62
|
62
|
—
|
%
|
||||||||||
|
The Oaks at Countrywood
|
Plant City
|
FL
|
MH
|
44
|
168
|
168
|
83.9
|
%
|
||||||||||
|
The Lakes at Countrywood
|
Plant City
|
FL
|
MH
|
122
|
424
|
424
|
94.8
|
%
|
||||||||||
|
Encore Super Park(Harbor Lakes)
|
Port Charlotte
|
FL
|
RV
|
80
|
528
|
338
|
100.0
|
%
|
||||||||||
|
Encore RV Park(Gulf View)
|
Punta Gorda
|
FL
|
RV
|
78
|
206
|
79
|
100.0
|
%
|
||||||||||
|
Tropical Palms MHC
|
Punta Gorda
|
FL
|
MH
|
50
|
294
|
294
|
90.8
|
%
|
||||||||||
|
Emerald Lake
|
Punta Gorda
|
FL
|
MH
|
28
|
201
|
201
|
100.0
|
%
|
||||||||||
|
Winds of St Armands North
|
Sarasota
|
FL
|
MH
|
74
|
471
|
471
|
99.8
|
%
|
||||||||||
|
Winds of St Armands South
|
Sarasota
|
FL
|
MH
|
61
|
306
|
306
|
99.7
|
%
|
||||||||||
|
Topics RV
|
Spring Hill
|
FL
|
RV
|
35
|
230
|
174
|
100.0
|
%
|
||||||||||
|
Pine Island RV Resort
|
St. James City
|
FL
|
RV
|
31
|
363
|
96
|
100.0
|
%
|
||||||||||
|
Carefree Village
|
Tampa
|
FL
|
MH
|
58
|
397
|
397
|
98.2
|
%
|
||||||||||
|
Tarpon Glen
|
Tarpon Springs
|
FL
|
MH
|
24
|
169
|
169
|
91.1
|
%
|
||||||||||
|
Featherock
|
Valrico
|
FL
|
MH
|
84
|
521
|
521
|
100.0
|
%
|
||||||||||
|
Ramblers Rest
|
Venice
|
FL
|
RV
|
117
|
647
|
395
|
100.0
|
%
|
||||||||||
|
Bay Indies
|
Venice
|
FL
|
MH
|
210
|
1,309
|
1,309
|
99.8
|
%
|
||||||||||
|
Peace River
|
Wauchula
|
FL
|
RV
|
72
|
38
|
454
|
41
|
100.0
|
%
|
|||||||||
|
Crystal Lakes-Zephyrhills
|
Zephyrhills
|
FL
|
MH
|
147
|
52
|
315
|
315
|
100.0
|
%
|
|||||||||
|
Forest Lake Estates
|
Zephyrhills
|
FL
|
MH
|
164
|
894
|
894
|
99.8
|
%
|
||||||||||
21
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Forest Lake Estates RV
|
Zephyrhills
|
FL
|
RV
|
42
|
12
|
274
|
185
|
100.0
|
%
|
|||||||||
|
Sixth Avenue
|
Zephyrhills
|
FL
|
MH
|
14
|
140
|
140
|
79.3
|
%
|
||||||||||
|
Total Florida Market
|
10,415
|
528
|
53,939
|
44,314
|
95.6
|
%
|
||||||||||||
|
California
|
||||||||||||||||||
|
Northern California:
|
||||||||||||||||||
|
Monte del Lago
|
Castroville
|
CA
|
MH
|
54
|
310
|
310
|
99.4
|
%
|
||||||||||
|
Colony Park
|
Ceres
|
CA
|
MH
|
20
|
186
|
186
|
97.8
|
%
|
||||||||||
|
Russian River Campground
|
Cloverdale
|
CA
|
RV
|
41
|
135
|
3
|
100.0
|
%
|
||||||||||
|
Snowflower (f)
|
Emigrant Gap
|
CA
|
RV
|
612
|
200
|
268
|
—
|
—
|
%
|
|||||||||
|
Four Seasons
|
Fresno
|
CA
|
MH
|
40
|
242
|
242
|
88.0
|
%
|
||||||||||
|
Yosemite Lakes
|
Groveland
|
CA
|
RV
|
403
|
30
|
299
|
3
|
100.0
|
%
|
|||||||||
|
Tahoe Valley (d) (f)
|
Lake Tahoe
|
CA
|
RV
|
86
|
20
|
413
|
—
|
—
|
%
|
|||||||||
|
Sea Oaks
|
Los Osos
|
CA
|
MH
|
18
|
1
|
125
|
125
|
100.0
|
%
|
|||||||||
|
Ponderosa (d)
|
Lotus
|
CA
|
RV
|
22
|
170
|
14
|
100.0
|
%
|
||||||||||
|
Turtle Beach (g)
|
Manteca
|
CA
|
RV
|
39
|
79
|
—
|
—
|
%
|
||||||||||
|
Coralwood (d)
|
Modesto
|
CA
|
MH
|
22
|
194
|
194
|
98.5
|
%
|
||||||||||
|
Lake Minden
|
Nicolaus
|
CA
|
RV
|
165
|
82
|
323
|
9
|
100.0
|
%
|
|||||||||
|
Lake of the Springs
|
Oregon House
|
CA
|
RV
|
954
|
507
|
541
|
73
|
100.0
|
%
|
|||||||||
|
Concord Cascade
|
Pacheco
|
CA
|
MH
|
31
|
283
|
283
|
100.0
|
%
|
||||||||||
|
San Francisco RV (f)
|
Pacifica
|
CA
|
RV
|
12
|
122
|
—
|
—
|
%
|
||||||||||
|
Quail Meadows
|
Riverbank
|
CA
|
MH
|
20
|
146
|
146
|
99.3
|
%
|
||||||||||
|
California Hawaiian
|
San Jose
|
CA
|
MH
|
50
|
418
|
418
|
100.0
|
%
|
||||||||||
|
Westwinds (4 Properties) (d)
|
San Jose
|
CA
|
MH
|
88
|
723
|
723
|
100.0
|
%
|
||||||||||
|
Sunshadow (d)
|
San Jose
|
CA
|
MH
|
30
|
121
|
121
|
100.0
|
%
|
||||||||||
|
Village of the Four Seasons
|
San Jose
|
CA
|
MH
|
30
|
271
|
271
|
100.0
|
%
|
||||||||||
|
Laguna Lake
|
San Luis Obispo
|
CA
|
MH
|
100
|
300
|
300
|
100.0
|
%
|
||||||||||
|
Contempo Marin
|
San Rafael
|
CA
|
MH
|
63
|
396
|
396
|
99.7
|
%
|
||||||||||
|
De Anza Santa Cruz
|
Santa Cruz
|
CA
|
MH
|
30
|
198
|
198
|
98.5
|
%
|
||||||||||
|
Santa Cruz Ranch RV Resort (f)
|
Scotts Valley
|
CA
|
RV
|
7
|
106
|
—
|
—
|
%
|
||||||||||
|
Royal Oaks
|
Visalia
|
CA
|
MH
|
20
|
149
|
149
|
81.2
|
%
|
||||||||||
|
Southern California:
|
||||||||||||||||||
|
Soledad Canyon
|
Acton
|
CA
|
RV
|
273
|
1,251
|
30
|
100.0
|
%
|
||||||||||
|
Los Ranchos
|
Apple Valley
|
CA
|
MH
|
30
|
389
|
389
|
97.9
|
%
|
||||||||||
|
Date Palm Country Club (d)
|
Cathedral City
|
CA
|
MH
|
232
|
3
|
538
|
538
|
98.7
|
%
|
|||||||||
|
Date Palm RV
|
Cathedral City
|
CA
|
RV
|
(e)
|
140
|
14
|
100.0
|
%
|
||||||||||
|
Oakzanita
|
Descanso
|
CA
|
RV
|
145
|
5
|
146
|
25
|
100.0
|
%
|
|||||||||
22
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Rancho Mesa
|
El Cajon
|
CA
|
MH
|
20
|
158
|
158
|
98.7
|
%
|
||||||||||
|
Rancho Valley
|
El Cajon
|
CA
|
MH
|
19
|
140
|
140
|
100.0
|
%
|
||||||||||
|
Royal Holiday
|
Hemet
|
CA
|
MH
|
22
|
198
|
198
|
63.1
|
%
|
||||||||||
|
Idyllwild
|
Idyllwild
|
CA
|
RV
|
191
|
287
|
53
|
100.0
|
%
|
||||||||||
|
Pio Pico
|
Jamul
|
CA
|
RV
|
176
|
10
|
512
|
90
|
100.0
|
%
|
|||||||||
|
Wilderness Lakes Campground
|
Menifee
|
CA
|
RV
|
73
|
529
|
53
|
100.0
|
%
|
||||||||||
|
Morgan Hill Campground
|
Morgan Hill
|
CA
|
RV
|
62
|
339
|
11
|
100.0
|
%
|
||||||||||
|
Pacific Dunes Ranch (f)
|
Oceana
|
CA
|
RV
|
48
|
215
|
—
|
—
|
%
|
||||||||||
|
San Benito Campground
|
Paicines
|
CA
|
RV
|
199
|
23
|
523
|
57
|
100.0
|
%
|
|||||||||
|
Palm Springs
|
Palm Desert
|
CA
|
RV
|
35
|
401
|
18
|
100.0
|
%
|
||||||||||
|
Las Palmas
|
Rialto
|
CA
|
MH
|
18
|
136
|
136
|
100.0
|
%
|
||||||||||
|
Parque La Quinta
|
Rialto
|
CA
|
MH
|
19
|
166
|
166
|
100.0
|
%
|
||||||||||
|
Rancho Oso
|
Santa Barbara
|
CA
|
RV
|
310
|
40
|
187
|
21
|
100.0
|
%
|
|||||||||
|
Meadowbrook
|
Santee
|
CA
|
MH
|
43
|
338
|
338
|
100.0
|
%
|
||||||||||
|
Lamplighter
|
Spring Valley
|
CA
|
MH
|
32
|
270
|
270
|
98.5
|
%
|
||||||||||
|
Santiago Estates
|
Sylmar
|
CA
|
MH
|
113
|
9
|
300
|
300
|
100.0
|
%
|
|||||||||
|
Total California Market:
|
5,017
|
930
|
13,681
|
7,169
|
97.7
|
%
|
||||||||||||
|
Arizona:
|
||||||||||||||||||
|
Apache East
|
Apache Junction
|
AZ
|
MH
|
17
|
123
|
123
|
100.0
|
%
|
||||||||||
|
Countryside RV
|
Apache Junction
|
AZ
|
RV
|
53
|
560
|
283
|
100.0
|
%
|
||||||||||
|
Denali Park
|
Apache Junction
|
AZ
|
MH
|
33
|
163
|
163
|
99.4
|
%
|
||||||||||
|
Golden Sun RV
|
Apache Junction
|
AZ
|
RV
|
33
|
329
|
197
|
100.0
|
%
|
||||||||||
|
Valley Vista
|
Benson
|
AZ
|
RV
|
6
|
145
|
6
|
100.0
|
%
|
||||||||||
|
Casita Verde RV Resort
|
Casa Grande
|
AZ
|
RV
|
14
|
192
|
93
|
100.0
|
%
|
||||||||||
|
Fiesta Grande RV Resort
|
Casa Grande
|
AZ
|
RV
|
77
|
767
|
519
|
100.0
|
%
|
||||||||||
|
Foothills West RV Resort
|
Casa Grande
|
AZ
|
RV
|
16
|
188
|
124
|
100.0
|
%
|
||||||||||
|
Sunshine Valley
|
Chandler
|
AZ
|
MH
|
55
|
381
|
381
|
95.8
|
%
|
||||||||||
|
Verde Valley Campground
|
Cottonwood
|
AZ
|
RV
|
273
|
129
|
352
|
92
|
100.0
|
%
|
|||||||||
|
Casa del Sol East II
|
Glendale
|
AZ
|
MH
|
29
|
239
|
239
|
96.7
|
%
|
||||||||||
|
Casa del Sol East III
|
Glendale
|
AZ
|
MH
|
28
|
236
|
236
|
97.0
|
%
|
||||||||||
|
Palm Shadows
|
Glendale
|
AZ
|
MH
|
33
|
293
|
293
|
93.5
|
%
|
||||||||||
|
Hacienda De Valencia
|
Mesa
|
AZ
|
MH
|
51
|
364
|
364
|
98.9
|
%
|
||||||||||
|
The Highlands at Brentwood
|
Mesa
|
AZ
|
MH
|
45
|
268
|
268
|
98.9
|
%
|
||||||||||
|
Mesa Spirit
|
Mesa
|
AZ
|
RV
|
90
|
1,600
|
713
|
100.0
|
%
|
||||||||||
|
Monte Vista
|
Mesa
|
AZ
|
RV
|
142
|
38
|
947
|
753
|
100.0
|
%
|
|||||||||
|
Seyenna Vistas (The Mark)
|
Mesa
|
AZ
|
MH
|
60
|
4
|
407
|
407
|
99.8
|
%
|
|||||||||
|
Viewpoint
|
Mesa
|
AZ
|
RV
|
332
|
15
|
2,188
|
1,706
|
100.0
|
%
|
|||||||||
23
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Apollo Village
|
Peoria
|
AZ
|
MH
|
29
|
3
|
238
|
238
|
96.6
|
%
|
|||||||||
|
Casa del Sol West I
|
Peoria
|
AZ
|
MH
|
31
|
245
|
245
|
100.0
|
%
|
||||||||||
|
Carefree Manor
|
Phoenix
|
AZ
|
MH
|
16
|
130
|
130
|
99.2
|
%
|
||||||||||
|
Central Park
|
Phoenix
|
AZ
|
MH
|
37
|
293
|
293
|
97.6
|
%
|
||||||||||
|
Desert Skies
|
Phoenix
|
AZ
|
MH
|
24
|
166
|
166
|
99.4
|
%
|
||||||||||
|
Sunrise Heights
|
Phoenix
|
AZ
|
MH
|
28
|
199
|
199
|
97.0
|
%
|
||||||||||
|
Whispering Palms
|
Phoenix
|
AZ
|
MH
|
15
|
116
|
116
|
96.6
|
%
|
||||||||||
|
Desert Vista (f)
|
Salome
|
AZ
|
RV
|
10
|
125
|
—
|
—
|
%
|
||||||||||
|
Sedona Shadows
|
Sedona
|
AZ
|
MH
|
48
|
6
|
198
|
198
|
99.0
|
%
|
|||||||||
|
Venture In RV Resort
|
Show Low
|
AZ
|
RV
|
26
|
389
|
271
|
100.0
|
%
|
||||||||||
|
Paradise
|
Sun City
|
AZ
|
RV
|
80
|
950
|
737
|
100.0
|
%
|
||||||||||
|
The Meadows
|
Tempe
|
AZ
|
MH
|
60
|
390
|
390
|
98.7
|
%
|
||||||||||
|
Fairview Manor
|
Tucson
|
AZ
|
MH
|
28
|
235
|
235
|
100.0
|
%
|
||||||||||
|
Westpark
|
Wickenburg
|
AZ
|
MH
|
48
|
7
|
231
|
231
|
97.4
|
%
|
|||||||||
|
Araby
|
Yuma
|
AZ
|
RV
|
25
|
337
|
294
|
100.0
|
%
|
||||||||||
|
Cactus Gardens
|
Yuma
|
AZ
|
RV
|
43
|
430
|
256
|
100.0
|
%
|
||||||||||
|
Capri RV Park
|
Yuma
|
AZ
|
RV
|
20
|
303
|
209
|
100.0
|
%
|
||||||||||
|
Desert Paradise
|
Yuma
|
AZ
|
RV
|
26
|
260
|
110
|
100.0
|
%
|
||||||||||
|
Foothill
|
Yuma
|
AZ
|
RV
|
18
|
180
|
63
|
100.0
|
%
|
||||||||||
|
Mesa Verde
|
Yuma
|
AZ
|
RV
|
28
|
345
|
284
|
100.0
|
%
|
||||||||||
|
Suni Sands
|
Yuma
|
AZ
|
RV
|
34
|
336
|
174
|
100.0
|
%
|
||||||||||
|
Total Arizona Market:
|
2,061
|
202
|
15,838
|
11,799
|
99.2
|
%
|
||||||||||||
|
Colorado:
|
||||||||||||||||||
|
Hillcrest Village
|
Aurora
|
CO
|
MH
|
72
|
602
|
602
|
99.2
|
%
|
||||||||||
|
Cimarron Village
|
Broomfield
|
CO
|
MH
|
50
|
327
|
327
|
99.7
|
%
|
||||||||||
|
Holiday Village CO
|
Co. Springs
|
CO
|
MH
|
38
|
240
|
240
|
94.6
|
%
|
||||||||||
|
Holiday Hills
|
Denver
|
CO
|
MH
|
99
|
736
|
736
|
94.7
|
%
|
||||||||||
|
Golden Terrace
|
Golden
|
CO
|
MH
|
32
|
263
|
263
|
99.6
|
%
|
||||||||||
|
Golden Terrace West
|
Golden
|
CO
|
MH
|
39
|
7
|
311
|
311
|
98.4
|
%
|
|||||||||
|
Golden Terrace South
|
Golden
|
CO
|
MH
|
15
|
80
|
80
|
96.3
|
%
|
||||||||||
|
Golden Terrace South RV (f)
|
Golden
|
CO
|
RV
|
(e)
|
80
|
—
|
—
|
%
|
||||||||||
|
Pueblo Grande
|
Pueblo
|
CO
|
MH
|
33
|
252
|
252
|
60.3
|
%
|
||||||||||
|
Bear Creek
|
Sheridan
|
CO
|
MH
|
12
|
121
|
121
|
95.9
|
%
|
||||||||||
|
Woodland Hills
|
Thornton
|
CO
|
MH
|
55
|
434
|
434
|
99.3
|
%
|
||||||||||
|
Total Colorado Market
|
445
|
7
|
3,446
|
3,366
|
94.8
|
%
|
||||||||||||
24
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Northeast:
|
||||||||||||||||||
|
Stonegate Manor
|
North Windham
|
CT
|
MH
|
114
|
372
|
372
|
94.6
|
%
|
||||||||||
|
Waterford Estates
|
Bear
|
DE
|
MH
|
159
|
731
|
731
|
96.9
|
%
|
||||||||||
|
McNicol
|
Lewes
|
DE
|
MH
|
25
|
93
|
93
|
100.0
|
%
|
||||||||||
|
Whispering Pines
|
Lewes
|
DE
|
MH
|
67
|
2
|
393
|
393
|
93.6
|
%
|
|||||||||
|
Mariners Cove
|
Millsboro
|
DE
|
MH
|
101
|
374
|
374
|
94.4
|
%
|
||||||||||
|
Sweetbriar
|
Millsboro
|
DE
|
MH
|
38
|
146
|
146
|
92.5
|
%
|
||||||||||
|
Aspen Meadows
|
Rehoboth Beach
|
DE
|
MH
|
46
|
200
|
200
|
100.0
|
%
|
||||||||||
|
Camelot Meadows
|
Rehoboth Beach
|
DE
|
MH
|
61
|
301
|
301
|
100.0
|
%
|
||||||||||
|
Gateway to Cape Cod
|
Rochester
|
MA
|
RV
|
80
|
194
|
67
|
100.0
|
%
|
||||||||||
|
Hillcrest-MA
|
Rockland
|
MA
|
MH
|
19
|
79
|
79
|
94.9
|
%
|
||||||||||
|
The Glen
|
Rockland
|
MA
|
MH
|
24
|
36
|
36
|
100.0
|
%
|
||||||||||
|
Old Chatham Road RV Resort
|
South Dennis
|
MA
|
RV
|
47
|
11
|
312
|
260
|
100.0
|
%
|
|||||||||
|
Sturbridge
|
Sturbridge
|
MA
|
RV
|
223
|
155
|
91
|
100.0
|
%
|
||||||||||
|
Fernwood
|
Capitol Heights
|
MD
|
MH
|
40
|
329
|
329
|
99.7
|
%
|
||||||||||
|
Williams Estates and Peppermint Woods
|
Middle River
|
MD
|
MH
|
121
|
803
|
803
|
100.0
|
%
|
||||||||||
|
Mount Desert Narrows
|
Bar Harbor
|
ME
|
RV
|
90
|
12
|
206
|
9
|
100.0
|
%
|
|||||||||
|
Patten Pond
|
Ellsworth
|
ME
|
RV
|
43
|
60
|
137
|
11
|
100.0
|
%
|
|||||||||
|
Pinehirst RV Resort
|
Old Orchard Beach
|
ME
|
RV
|
58
|
550
|
484
|
100.0
|
%
|
||||||||||
|
Narrows Too
|
Trenton
|
ME
|
RV
|
42
|
207
|
7
|
100.0
|
%
|
||||||||||
|
Moody Beach
|
Wells
|
ME
|
RV
|
48
|
16
|
203
|
98
|
100.0
|
%
|
|||||||||
|
Sandy Beach RV Resort
|
Contoocook
|
NH
|
RV
|
40
|
190
|
99
|
100.0
|
%
|
||||||||||
|
Pine Acres
|
Raymond
|
NH
|
RV
|
100
|
421
|
285
|
100.0
|
%
|
||||||||||
|
Tuxbury Resort
|
South Hampton
|
NH
|
RV
|
193
|
100
|
305
|
196
|
100.0
|
%
|
|||||||||
|
Mays Landing
|
Mays Landing
|
NJ
|
RV
|
18
|
168
|
76
|
100.0
|
%
|
||||||||||
|
Echo Farms
|
Ocean View
|
NJ
|
RV
|
31
|
237
|
203
|
100.0
|
%
|
||||||||||
|
Lake & Shore
|
Ocean View
|
NJ
|
RV
|
162
|
401
|
282
|
100.0
|
%
|
||||||||||
|
Chestnut Lake
|
Port Republic
|
NJ
|
RV
|
32
|
185
|
46
|
100.0
|
%
|
||||||||||
|
Sea Pines
|
Swainton
|
NJ
|
RV
|
75
|
549
|
317
|
100.0
|
%
|
||||||||||
|
Pine Ridge at Crestwood
|
Whiting
|
NJ
|
MH
|
188
|
1,035
|
1,035
|
86.9
|
%
|
||||||||||
|
Rondout Valley Resort
|
Accord
|
NY
|
RV
|
184
|
94
|
398
|
109
|
100.0
|
%
|
|||||||||
|
Alpine Lake RV Resort
|
Corinth
|
NY
|
RV
|
200
|
54
|
500
|
344
|
100.0
|
%
|
|||||||||
|
Lake George Escape Camping Resort
|
Lake George
|
NY
|
RV
|
178
|
30
|
576
|
52
|
100.0
|
%
|
|||||||||
|
The Woodlands
|
Lockport
|
NY
|
MH
|
225
|
1,182
|
1,182
|
90.6
|
%
|
||||||||||
|
Greenwood Village
|
Manorville
|
NY
|
MH
|
79
|
14
|
512
|
512
|
97.3
|
%
|
|||||||||
|
Brennan Beach RV Resort
|
Pulaski
|
NY
|
RV
|
201
|
1,377
|
1,212
|
100.0
|
%
|
||||||||||
|
Lake George Schroon Valley Resort
|
Warrensburg
|
NY
|
RV
|
151
|
151
|
99
|
100.0
|
%
|
||||||||||
|
Greenbriar Village
|
Bath
|
PA
|
MH
|
63
|
319
|
319
|
100.0
|
%
|
||||||||||
25
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Sun Valley
|
Bowmansville
|
PA
|
RV
|
86
|
3
|
265
|
173
|
100.0
|
%
|
|||||||||
|
Green Acres
|
Breinigsville
|
PA
|
MH
|
149
|
595
|
595
|
97.0
|
%
|
||||||||||
|
Gettysburg Farm
|
Dover
|
PA
|
RV
|
124
|
265
|
81
|
100.0
|
%
|
||||||||||
|
Timothy Lake North
|
East Stroudsburg
|
PA
|
RV
|
93
|
323
|
110
|
100.0
|
%
|
||||||||||
|
Timothy Lake South
|
East Stroudsburg
|
PA
|
RV
|
65
|
327
|
146
|
100.0
|
%
|
||||||||||
|
Circle M
|
Lancaster
|
PA
|
RV
|
103
|
380
|
88
|
100.0
|
%
|
||||||||||
|
Hershey Preserve
|
Lebanon
|
PA
|
RV
|
196
|
20
|
297
|
58
|
100.0
|
%
|
|||||||||
|
Robin Hill
|
Lenhartsville
|
PA
|
RV
|
44
|
270
|
149
|
100.0
|
%
|
||||||||||
|
PA Dutch County
|
Manheim
|
PA
|
RV
|
102
|
269
|
105
|
100.0
|
%
|
||||||||||
|
Spring Gulch
|
New Holland
|
PA
|
RV
|
114
|
420
|
145
|
100.0
|
%
|
||||||||||
|
Lil Wolf
|
Orefield
|
PA
|
MH
|
56
|
269
|
269
|
99.3
|
%
|
||||||||||
|
Scotrun
|
Scotrun
|
PA
|
RV
|
63
|
178
|
122
|
100.0
|
%
|
||||||||||
|
Appalachian
|
Shartlesville
|
PA
|
RV
|
86
|
30
|
358
|
207
|
100.0
|
%
|
|||||||||
|
Mountain View-PA
|
Walnuport
|
PA
|
MH
|
45
|
189
|
189
|
92.6
|
%
|
||||||||||
|
Total Northeast Market:
|
4,892
|
446
|
18,732
|
13,689
|
97.1
|
%
|
||||||||||||
|
Southeast:
|
||||||||||||||||||
|
Hidden Cove Outdoor Resort
|
Arley
|
AL
|
RV
|
99
|
60
|
79
|
49
|
100.0
|
%
|
|||||||||
|
Diamond Caverns Resort & Golf Club
|
Park City
|
KY
|
RV
|
714
|
350
|
220
|
21
|
100.0
|
%
|
|||||||||
|
Forest Lake
|
Advance
|
NC
|
RV
|
306
|
81
|
305
|
181
|
100.0
|
%
|
|||||||||
|
Scenic MHC
|
Asheville
|
NC
|
MH
|
27
|
203
|
203
|
93.6
|
%
|
||||||||||
|
Waterway RV Resort
|
Cedar Point
|
NC
|
RV
|
132
|
336
|
319
|
100.0
|
%
|
||||||||||
|
Twin Lakes
|
Chocowinity
|
NC
|
RV
|
1,077
|
400
|
419
|
379
|
100.0
|
%
|
|||||||||
|
Green Mountain Park
|
Lenoir
|
NC
|
RV
|
69
|
3
|
447
|
190
|
100.0
|
%
|
|||||||||
|
Lake Gaston
|
Littleton
|
NC
|
RV
|
74
|
235
|
185
|
100.0
|
%
|
||||||||||
|
Lake Myers RV
|
Mocksville
|
NC
|
RV
|
50
|
425
|
289
|
100.0
|
%
|
||||||||||
|
Bogue Pines
|
Newport
|
NC
|
MH
|
28
|
150
|
150
|
75.3
|
%
|
||||||||||
|
Goose Creek Resort
|
Newport
|
NC
|
RV
|
92
|
6
|
735
|
627
|
100.0
|
%
|
|||||||||
|
Whispering Pines RV
|
Newport
|
NC
|
RV
|
34
|
278
|
184
|
100.0
|
%
|
||||||||||
|
Carolina Landing
|
Fair Play
|
SC
|
RV
|
73
|
192
|
60
|
100.0
|
%
|
||||||||||
|
Inlet Oaks MHC
|
Murrells Inlet
|
SC
|
MH
|
35
|
172
|
172
|
100.0
|
%
|
||||||||||
|
The Oaks at Point South
|
Yemassee
|
SC
|
RV
|
10
|
93
|
26
|
100.0
|
%
|
||||||||||
|
Natchez Trace Campground
|
Hohenwald
|
TN
|
RV
|
672
|
140
|
531
|
170
|
100.0
|
%
|
|||||||||
|
Cherokee Landing
|
Saulsbury
|
TN
|
RV
|
254
|
124
|
339
|
6
|
100.0
|
%
|
|||||||||
|
Meadows of Chantilly
|
Chantilly
|
VA
|
MH
|
82
|
499
|
499
|
99.8
|
%
|
||||||||||
|
Harbor View
|
Colonial Beach
|
VA
|
RV
|
69
|
146
|
44
|
100.0
|
%
|
||||||||||
|
Lynchburg
|
Gladys
|
VA
|
RV
|
170
|
59
|
222
|
46
|
100.0
|
%
|
|||||||||
|
Chesapeake Bay
|
Gloucester
|
VA
|
RV
|
282
|
80
|
392
|
147
|
100.0
|
%
|
|||||||||
26
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Virginia Landing Campground
|
Quinby
|
VA
|
RV
|
863
|
178
|
233
|
1
|
100.0
|
%
|
|||||||||
|
Greys Pointe (c)
|
Topping
|
VA
|
RV
|
125
|
16
|
728
|
534
|
100.0
|
%
|
|||||||||
|
Bethpage (c)
|
Urbanna
|
VA
|
RV
|
271
|
104
|
1,034
|
645
|
100.0
|
%
|
|||||||||
|
Williamsburg
|
Williamsburg
|
VA
|
RV
|
65
|
211
|
91
|
100.0
|
%
|
||||||||||
|
Regency Lakes
|
Winchester
|
VA
|
MH
|
165
|
523
|
523
|
99.4
|
%
|
||||||||||
|
Total Southeast Market:
|
5,838
|
1,601
|
9,147
|
5,741
|
96.9
|
%
|
||||||||||||
|
Midwest Market:
|
||||||||||||||||||
|
O'Connell's
|
Amboy
|
IL
|
RV
|
286
|
89
|
725
|
369
|
100.0
|
%
|
|||||||||
|
Pheasant Lake Estates
|
Beecher
|
IL
|
MH
|
160
|
613
|
613
|
97.6
|
%
|
||||||||||
|
Pine Country
|
Belvidere
|
IL
|
RV
|
131
|
15
|
126
|
136
|
100.0
|
%
|
|||||||||
|
Willow Lake Estates
|
Elgin
|
IL
|
MH
|
111
|
616
|
616
|
89.3
|
%
|
||||||||||
|
Golf Vista Estates
|
Monee
|
IL
|
MH
|
144
|
4
|
408
|
408
|
93.4
|
%
|
|||||||||
|
Indian Lakes
|
Batesville
|
IN
|
RV
|
545
|
149
|
1,000
|
518
|
100.0
|
%
|
|||||||||
|
Horseshoe Lakes
|
Clinton
|
IN
|
RV
|
289
|
96
|
123
|
97
|
100.0
|
%
|
|||||||||
|
Twin Mills RV
|
Howe
|
IN
|
RV
|
137
|
5
|
501
|
240
|
100.0
|
%
|
|||||||||
|
Hoosier Estates
|
Lebanon
|
IN
|
MH
|
60
|
288
|
288
|
91.7
|
%
|
||||||||||
|
Lakeside
|
New Carlisle
|
IN
|
RV
|
13
|
89
|
88
|
100.0
|
%
|
||||||||||
|
Oak Tree Village
|
Portage
|
IN
|
MH
|
76
|
361
|
361
|
66.8
|
%
|
||||||||||
|
North Glen Village
|
Westfield
|
IN
|
MH
|
88
|
282
|
282
|
82.3
|
%
|
||||||||||
|
Lake in the Hills
|
Auburn Hills
|
MI
|
MH
|
51
|
238
|
238
|
91.2
|
%
|
||||||||||
|
Bear Cave Resort
|
Buchanan
|
MI
|
RV
|
25
|
10
|
136
|
35
|
100.0
|
%
|
|||||||||
|
Saint Claire Campground
|
Saint Claire
|
MI
|
RV
|
210
|
100
|
229
|
114
|
100.0
|
%
|
|||||||||
|
Swan Creek
|
Ypsilanti
|
MI
|
MH
|
59
|
294
|
294
|
96.3
|
%
|
||||||||||
|
Cedar Knolls
|
Apple Valley
|
MN
|
MH
|
93
|
457
|
457
|
84.9
|
%
|
||||||||||
|
Cimarron Park
|
Lakel Elmo
|
MN
|
MH
|
230
|
505
|
505
|
84.0
|
%
|
||||||||||
|
Rockford Riverview Estates
|
Rockford
|
MN
|
MH
|
88
|
428
|
428
|
84.6
|
%
|
||||||||||
|
Rosemount Woods
|
Rosemount
|
MN
|
MH
|
50
|
182
|
182
|
98.9
|
%
|
||||||||||
|
Buena Vista
|
Fargo
|
ND
|
MH
|
76
|
399
|
399
|
85.5
|
%
|
||||||||||
|
Meadow Park
|
Fargo
|
ND
|
MH
|
17
|
116
|
116
|
85.3
|
%
|
||||||||||
|
Kenisee Lake
|
Jefferson
|
OH
|
RV
|
143
|
50
|
119
|
81
|
100.0
|
%
|
|||||||||
|
Wilmington Campground
|
Wilmington
|
OH
|
RV
|
109
|
41
|
169
|
122
|
100.0
|
%
|
|||||||||
|
Rainbow Lake Manor
|
Bristol
|
WI
|
MH
|
99
|
270
|
270
|
97.8
|
%
|
||||||||||
|
Fremont
|
Fremont
|
WI
|
RV
|
98
|
5
|
325
|
125
|
100.0
|
%
|
|||||||||
|
Yukon Trails
|
Lyndon Station
|
WI
|
RV
|
150
|
30
|
214
|
137
|
100.0
|
%
|
|||||||||
|
Blackhawk
|
Milton
|
WI
|
RV
|
214
|
490
|
332
|
100.0
|
%
|
||||||||||
|
Lakeland RV
|
Milton
|
WI
|
RV
|
107
|
682
|
432
|
100.0
|
%
|
||||||||||
|
Westwood Estates
|
Pleasant Prairie
|
WI
|
MH
|
95
|
344
|
344
|
91.6
|
%
|
||||||||||
27
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Plymouth Rock
|
Plymouth
|
WI
|
RV
|
133
|
610
|
424
|
100.0
|
%
|
||||||||||
|
Tranquil Timbers
|
Sturgeon Bay
|
WI
|
RV
|
125
|
270
|
196
|
100.0
|
%
|
||||||||||
|
Neshonoc Lakeside
|
West Salem
|
WI
|
RV
|
48
|
284
|
185
|
100.0
|
%
|
||||||||||
|
Arrowhead
|
Wisconsin Dells
|
WI
|
RV
|
166
|
40
|
377
|
204
|
100.0
|
%
|
|||||||||
|
Total Midwest Market:
|
4,426
|
634
|
12,270
|
9,636
|
93.1
|
%
|
||||||||||||
|
Nevada, Utah and Idaho:
|
||||||||||||||||||
|
Coach Royale
|
Boise
|
ID
|
MH
|
12
|
91
|
91
|
79.1
|
%
|
||||||||||
|
Maple Grove
|
Boise
|
ID
|
MH
|
38
|
271
|
271
|
81.2
|
%
|
||||||||||
|
Shenandoah Estates
|
Boise
|
ID
|
MH
|
24
|
153
|
153
|
97.4
|
%
|
||||||||||
|
West Meadow Estates
|
Boise
|
ID
|
MH
|
29
|
178
|
178
|
100.0
|
%
|
||||||||||
|
Mountain View - NV
|
Henderson
|
NV
|
MH
|
72
|
354
|
354
|
99.4
|
%
|
||||||||||
|
Bonanza
|
Las Vegas
|
NV
|
MH
|
43
|
353
|
353
|
55.8
|
%
|
||||||||||
|
Boulder Cascade
|
Las Vegas
|
NV
|
MH
|
39
|
299
|
299
|
75.6
|
%
|
||||||||||
|
Cabana
|
Las Vegas
|
NV
|
MH
|
37
|
263
|
263
|
93.9
|
%
|
||||||||||
|
Flamingo West
|
Las Vegas
|
NV
|
MH
|
37
|
258
|
258
|
98.1
|
%
|
||||||||||
|
Las Vegas
|
Las Vegas
|
NV
|
RV
|
11
|
217
|
21
|
100.0
|
%
|
||||||||||
|
Villa Borega
|
Las Vegas
|
NV
|
MH
|
40
|
293
|
293
|
73.7
|
%
|
||||||||||
|
Westwood Village
|
Farr West
|
UT
|
MH
|
46
|
314
|
314
|
100.0
|
%
|
||||||||||
|
St. George (f)
|
Hurricane
|
UT
|
RV
|
26
|
123
|
—
|
—
|
%
|
||||||||||
|
All Seasons
|
Salt Lake City
|
UT
|
MH
|
19
|
121
|
121
|
100.0
|
%
|
||||||||||
|
Total Nevada, Utah and Idaho:
|
473
|
—
|
3,288
|
2,969
|
86.4
|
%
|
||||||||||||
|
Northwest:
|
||||||||||||||||||
|
Cultus Lake (Canada) (d)
|
Lindell Beach
|
BC
|
RV
|
15
|
178
|
52
|
100.0
|
%
|
||||||||||
|
Thousand Trails Bend
|
Bend
|
OR
|
RV
|
289
|
100
|
351
|
54
|
100.0
|
%
|
|||||||||
|
Shadowbrook
|
Clackamas
|
OR
|
MH
|
21
|
156
|
156
|
99.4
|
%
|
||||||||||
|
Pacific City
|
Cloverdale
|
OR
|
RV
|
105
|
307
|
28
|
100.0
|
%
|
||||||||||
|
Falcon Wood Village
|
Eugene
|
OR
|
MH
|
23
|
183
|
183
|
98.4
|
%
|
||||||||||
|
Portland Fairview
|
Fairview
|
OR
|
RV
|
30
|
407
|
193
|
100.0
|
%
|
||||||||||
|
Quail Hollow (d)
|
Fairview
|
OR
|
MH
|
21
|
137
|
137
|
100.0
|
%
|
||||||||||
|
South Jetty
|
Florence
|
OR
|
RV
|
57
|
204
|
4
|
100.0
|
%
|
||||||||||
|
Seaside Resort
|
Seaside
|
OR
|
RV
|
80
|
251
|
31
|
100.0
|
%
|
||||||||||
|
Whaler's Rest Resort
|
South Beach
|
OR
|
RV
|
39
|
170
|
19
|
100.0
|
%
|
||||||||||
|
Mt. Hood
|
Welches
|
OR
|
RV
|
115
|
30
|
436
|
89
|
100.0
|
%
|
|||||||||
|
Birch Bay
|
Blaine
|
WA
|
RV
|
31
|
246
|
23
|
100.0
|
%
|
||||||||||
|
Mt. Vernon Camground
|
Bow
|
WA
|
RV
|
311
|
251
|
26
|
100.0
|
%
|
||||||||||
|
Chehalis
|
Chehalis
|
WA
|
RV
|
309
|
85
|
360
|
23
|
100.0
|
%
|
|||||||||
28
|
|
||||||||||||||||||
|
Property
|
City
|
State
|
MH/RV
|
Acres
(a)
|
Developable
Acres (b) |
Total Number of Sites as of 12/31/17
|
Total Number of Annual Sites as of 12/31/17
|
Annual Site Occupancy as of 12/31/17
|
||||||||||
|
Grandy Creek (f)
|
Concrete
|
WA
|
RV
|
63
|
179
|
—
|
—
|
%
|
||||||||||
|
Tall Chief (f)
|
Fall City
|
WA
|
RV
|
71
|
180
|
—
|
—
|
%
|
||||||||||
|
Kloshe Illahee
|
Federal Way
|
WA
|
MH
|
50
|
258
|
258
|
100.0
|
%
|
||||||||||
|
La Conner (d)
|
La Conner
|
WA
|
RV
|
106
|
5
|
319
|
42
|
100.0
|
%
|
|||||||||
|
Leavenworth
|
Leavenworth
|
WA
|
RV
|
255
|
50
|
266
|
18
|
100.0
|
%
|
|||||||||
|
Thunderbird Resort
|
Monroe
|
WA
|
RV
|
45
|
2
|
136
|
25
|
100.0
|
%
|
|||||||||
|
Little Diamond Campground
|
Newport
|
WA
|
RV
|
360
|
119
|
520
|
2
|
100.0
|
%
|
|||||||||
|
Oceana Resort
|
Ocean City
|
WA
|
RV
|
16
|
84
|
10
|
100.0
|
%
|
||||||||||
|
Crescent Bar Resort
|
Quincy
|
WA
|
RV
|
14
|
115
|
20
|
100.0
|
%
|
||||||||||
|
Long Beach Campground
|
Seaview
|
WA
|
RV
|
17
|
144
|
15
|
100.0
|
%
|
||||||||||
|
Paradise Resort
|
Silver Creek
|
WA
|
RV
|
60
|
214
|
10
|
100.0
|
%
|
||||||||||
|
Total Northwest:
|
2,503
|
391
|
6,052
|
1,418
|
99.7
|
%
|
||||||||||||
|
Texas:
|
||||||||||||||||||
|
Alamo Palms
|
Alamo
|
TX
|
RV
|
58
|
643
|
321
|
100.0
|
%
|
||||||||||
|
Bay Landing
|
Bridgeport
|
TX
|
RV
|
443
|
235
|
293
|
56
|
100.0
|
%
|
|||||||||
|
Colorado River
|
Columbus
|
TX
|
RV
|
218
|
51
|
132
|
26
|
100.0
|
%
|
|||||||||
|
Victoria Palms
|
Donna
|
TX
|
RV
|
117
|
1,122
|
474
|
100.0
|
%
|
||||||||||
|
Lake Texoma
|
Gordonville
|
TX
|
RV
|
201
|
301
|
95
|
100.0
|
%
|
||||||||||
|
Encore RV Park (Sunshine RV)
|
Harlingen
|
TX
|
RV
|
84
|
1,027
|
380
|
100.0
|
%
|
||||||||||
|
Paradise Park RV
|
Harlingen
|
TX
|
RV
|
60
|
563
|
298
|
100.0
|
%
|
||||||||||
|
Sunburst RV Park(Lakewood)
|
Harlingen
|
TX
|
RV
|
30
|
301
|
105
|
100.0
|
%
|
||||||||||
|
Tropic Winds
|
Harlingen
|
TX
|
RV
|
112
|
74
|
531
|
183
|
100.0
|
%
|
|||||||||
|
Medina Lake Campground
|
Lakehills
|
TX
|
RV
|
208
|
50
|
387
|
58
|
100.0
|
%
|
|||||||||
|
Encore RV Resort(Paradise South)
|
Mercedes
|
TX
|
RV
|
49
|
493
|
194
|
100.0
|
%
|
||||||||||
|
Lake Tawakoni
|
Point
|
TX
|
RV
|
324
|
11
|
293
|
124
|
100.0
|
%
|
|||||||||
|
Fun n Sun RV Park
|
San Benito
|
TX
|
RV
|
135
|
40
|
1,435
|
633
|
100.0
|
%
|
|||||||||
|
Southern Comfort
|
Weslaco
|
TX
|
RV
|
40
|
403
|
318
|
100.0
|
%
|
||||||||||
|
Sunburst RV Resort (Country Sunshine)
|
Weslaco
|
TX
|
RV
|
37
|
390
|
161
|
100.0
|
%
|
||||||||||
|
Lake Whitney
|
Whitney
|
TX
|
RV
|
403
|
158
|
261
|
34
|
100.0
|
%
|
|||||||||
|
Lake Conroe
|
Willis
|
TX
|
RV
|
129
|
24
|
414
|
213
|
100.0
|
%
|
|||||||||
|
Total Texas:
|
2,648
|
643
|
8,989
|
3,673
|
100.0
|
%
|
||||||||||||
|
Grand Total All Markets:
|
38,718
|
5,382
|
145,382
|
103,774
|
96.1
|
%
|
||||||||||||
_____________________
|
(a)
|
Acres are approximate. Acreage for some Properties were estimated based upon 10 Sites per acre.
|
|
(b)
|
Acres are approximate. There can be no assurance that developable acres will be developed. Development is contingent on many factors including, but not limited to, cost, ability to subdivide, accessibility, infrastructure needs, zoning, entitlement and topography.
|
|
(c)
|
Property acquired in 2017.
|
|
(d)
|
Land is leased by us under a non-cancelable operating lease (see Note 12 to the Consolidated Financial Statements).
|
|
(e)
|
Acres for this RV park are included in the acres for the adjacent manufactured home community listed directly above this Property.
|
|
(f)
|
Property does not contain annual Sites.
|
|
(g)
|
Property was closed temporarily during the year due to storm events in 2017.
|
29
The description of legal proceedings is incorporated herein by reference from Note 18 to the Consolidated Financial Statements in this Form 10-K.
None.
30
Our common stock is traded on the New York Stock Exchange ("NYSE") under the symbol ELS. On
February 23, 2018
, the reported closing price per share of ELS
common stock on the NYSE was
$85.98
and there were approximately
281
holders of record. The high and low sales prices and closing sales prices on the NYSE and distributions for our common stock during
2017
and
2016
are set forth in the table below:
|
Close
|
High
|
Low
|
Distributions
Declared
|
||||||||||||
|
2017
|
|||||||||||||||
|
1st Quarter
|
$
|
77.06
|
|
$
|
79.92
|
|
$
|
71.01
|
|
$
|
0.4875
|
|
|||
|
2nd Quarter
|
$
|
86.34
|
|
$
|
87.76
|
|
$
|
76.89
|
|
$
|
0.4875
|
|
|||
|
3rd Quarter
|
$
|
85.08
|
|
$
|
90.80
|
|
$
|
83.67
|
|
$
|
0.4875
|
|
|||
|
4th Quarter
|
$
|
89.02
|
|
$
|
91.94
|
|
$
|
84.39
|
|
$
|
0.4875
|
|
|||
|
|
Close
|
High
|
Low
|
Distributions
Declared
|
|||||||||||
|
2016
|
|||||||||||||||
|
1st Quarter
|
$
|
72.73
|
|
$
|
73.95
|
|
$
|
62.22
|
|
$
|
0.4250
|
|
|||
|
2nd Quarter
|
$
|
80.05
|
|
$
|
80.07
|
|
$
|
68.35
|
|
$
|
0.4250
|
|
|||
|
3rd Quarter
|
$
|
77.18
|
|
$
|
83.19
|
|
$
|
76.05
|
|
$
|
0.4250
|
|
|||
|
4th Quarter
|
$
|
72.10
|
|
$
|
77.33
|
|
$
|
65.87
|
|
$
|
0.4250
|
|
|||
Issuer Purchases of Equity Securities
|
Period
|
Total Number of Shares
Purchased
(a)
|
Average Price Paid per Share
(a)
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs
|
||||||
|
10/1/17-10/31/17
|
—
|
|
$
|
—
|
|
None
|
None
|
|||
|
11/1/17-11/30/17
|
—
|
|
$
|
—
|
|
None
|
None
|
|||
|
12/1/17-12/31/17
|
34,680
|
|
$
|
89.02
|
|
None
|
None
|
|||
____________________
|
(a)
|
Of the common stock repurchased from October 1, 2017 through
December 31, 2017
,
34,680
shares were repurchased at the open market price and represent common stock surrendered to us to satisfy income tax withholding obligations due as a result of the vesting of Restricted Share Grants. Certain of our executive officers and directors may from time to time adopt non-discretionary, written trading plans that comply with Securities and Exchange Commission Rule 10b5-1, or otherwise monetize their equity-based compensation. The Securities and Exchange Commission Rule 10b5-1 provides executives with a method to monetize their equity-based compensation in an automatic and non-discretionary manner over time.
|
31
The following table sets forth selected financial and operating information on a historical basis. The historical operating data has been derived from our historical financial statements. The following information should be read in conjunction with all of the financial statements and notes thereto included elsewhere in this Form 10-K.
Equity LifeStyle Properties, Inc.
Consolidated Historical Financial Information
(Amounts in thousands, except for per share and property data)
|
Years Ended December 31,
|
|||||||||||||||||||
|
2017
|
2016
|
2015
|
2014
|
2013
|
|||||||||||||||
|
Income Statement Data:
|
|||||||||||||||||||
|
Total Revenues
|
$
|
925,312
|
|
$
|
870,435
|
|
$
|
821,654
|
|
$
|
776,809
|
|
$
|
729,048
|
|
||||
|
Total Expenses
|
(718,700
|
)
|
(685,908
|
)
|
(675,231
|
)
|
(644,376
|
)
|
(653,840
|
)
|
|||||||||
|
Equity in income from unconsolidated joint ventures
|
3,765
|
|
2,605
|
|
4,089
|
|
4,578
|
|
2,039
|
|
|||||||||
|
Gain on sale of property
(1)
|
—
|
|
—
|
|
—
|
|
1,457
|
|
—
|
|
|||||||||
|
Income from discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
|
7,133
|
|
|||||||||
|
Gain on sale of property, net of taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
41,525
|
|
|||||||||
|
Consolidated net income
|
$
|
210,377
|
|
$
|
187,132
|
|
$
|
150,512
|
|
$
|
138,468
|
|
$
|
125,905
|
|
||||
|
Net income available for Common Stockholders
|
$
|
189,904
|
|
$
|
164,037
|
|
$
|
130,145
|
|
$
|
118,731
|
|
$
|
106,919
|
|
||||
|
Comprehensive income attributable to Common Stockholders
|
$
|
191,048
|
|
$
|
164,339
|
|
$
|
129,988
|
|
$
|
119,234
|
|
$
|
108,443
|
|
||||
|
Earnings per Common Share - Basic
|
$
|
2.18
|
|
$
|
1.93
|
|
$
|
1.55
|
|
$
|
1.42
|
|
$
|
1.29
|
|
||||
|
Earnings per Common Share - Fully Diluted
|
$
|
2.17
|
|
$
|
1.92
|
|
$
|
1.54
|
|
$
|
1.41
|
|
$
|
1.28
|
|
||||
|
Distributions declared per Common Share outstanding
|
$
|
1.95
|
|
$
|
1.70
|
|
$
|
1.50
|
|
$
|
1.30
|
|
$
|
1.00
|
|
||||
|
Weighted average Common Shares outstanding - basic
|
86,997
|
|
84,778
|
|
84,031
|
|
83,362
|
|
83,018
|
|
|||||||||
|
Weighted average Common Shares outstanding - fully diluted
|
93,425
|
|
92,569
|
|
91,907
|
|
91,511
|
|
91,196
|
|
|||||||||
|
Balance Sheet Data:
|
|||||||||||||||||||
|
Real estate, before accumulated depreciation
|
$
|
4,915,813
|
|
$
|
4,685,336
|
|
$
|
4,477,599
|
|
$
|
4,387,913
|
|
$
|
4,228,106
|
|
||||
|
Total assets
(2)
|
$
|
3,610,032
|
|
$
|
3,478,987
|
|
$
|
3,400,400
|
|
$
|
3,429,225
|
|
$
|
3,374,740
|
|
||||
|
Total debt
(2)
|
$
|
2,200,017
|
|
$
|
2,091,279
|
|
$
|
2,126,052
|
|
$
|
2,195,133
|
|
$
|
2,174,799
|
|
||||
|
Series C Preferred Stock
(3)
|
$
|
—
|
|
$
|
136,144
|
|
$
|
136,144
|
|
$
|
136,144
|
|
$
|
136,144
|
|
||||
|
Total Common Equity
(4)
|
$
|
1,031,954
|
|
$
|
872,399
|
|
$
|
788,924
|
|
$
|
775,849
|
|
$
|
827,061
|
|
||||
|
Other Data:
|
|||||||||||||||||||
|
Funds from operations
(5)
|
$
|
331,665
|
|
$
|
302,827
|
|
$
|
261,009
|
|
$
|
246,588
|
|
$
|
191,049
|
|
||||
|
Normalized funds from operations
(5)
|
$
|
335,931
|
|
$
|
306,459
|
|
$
|
279,052
|
|
$
|
253,257
|
|
$
|
232,298
|
|
||||
|
Total Properties (at end of period)
|
406
|
|
391
|
|
387
|
|
384
|
|
377
|
|
|||||||||
|
Total Sites (at end of period)
|
151,323
|
|
146,610
|
|
143,938
|
|
143,113
|
|
139,126
|
|
|||||||||
________________________________
|
1.
|
Effective January 1, 2014, we adopted on a prospective basis Accounting Standard Update 2014-08, Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity which changed the definition of discontinued operations. Under the new guidance the gain on sale of property recognized during the year ended December 31, 2014 did not meet the criteria of discontinued operations and accordingly it is presented as part of our continuing operations.
|
|
2.
|
Effective January 1, 2016 we adopted Accounting Standard Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and Accounting Standard Update 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. As a result, we reclassified deferred financing costs to mortgage notes payable in the amount of $18.9 million, $16.1 million and $16.4 million as of December 31, 2015, 2014, and 2013, respectively. In addition, we reclassified deferred financing costs to term loan in the amount of $0.8 million, $1.0 million and $1.2 million as of December 31, 2015, 2014, and 2013, respectively. Also, we reclassified deferred financing costs related to our unsecured line of credit to Escrow deposits, goodwill, and other assets, net in the amount of $3.7 million, $4.7 million and $2.3 million as of December 31, 2015, 2014, and 2013, respectively.
|
|
3.
|
In 2012, we issued 54,458 shares of Series C Preferred Stock, which were represented by Depositary Shares. In 2017, we redeemed our Series C Preferred Stock for $138.4 million, including accrued dividends. The shares of Series C Preferred Stock that were redeemed now have the status of authorized but unissued preferred stock, without designation as to class or series.
|
|
4.
|
In 2017, we sold
1,380,017
shares of our common stock, par value $0.01 per share, under our ATM equity offering program at a weighted average per share sales price of approximately
$87.46
for gross cash proceeds of approximately
$120.7 million
before expenses of approximately
$1.5 million
. In 2016, we sold
683,548
shares of our common stock, par value $0.01 per share, under our ATM equity offering program at a weighted average per share sales price of approximately $73.15 for gross cash proceeds of approximately $50.0 million before expenses of approximately $0.7 million. As of
December 31, 2017
,
$150.0 million
of common stock remained available for issuance under our ATM equity offering program.
|
|
5.
|
Refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations contained in this Form 10-K for information regarding why we present funds from operations and normalized funds from operations and for a reconciliation of these non-GAAP financial measures to net income available for Common Stockholders.
|
32
The following discussion should be read in conjunction with "Selected Financial Data" and the historical Consolidated Financial Statements and Notes thereto appearing elsewhere in this Form 10-K.
2017
Accomplishments
We continued our strong performance in 2017, marked by key operational and financial accomplishments:
|
•
|
Occupancy of manufactured home Sites within our Core Portfolio (as defined below) increased by
475
Sites to
94.6%
as of
December 31, 2017
compared to
93.9%
as of
December 31, 2016
.
|
|
•
|
RV Revenue within our Core Portfolio increased by
5.9%
as compared to
2016
.
|
|
•
|
Core Portfolio generated
4.4%
growth in Net Operating Income ("NOI") for the full year.
|
|
•
|
2017 Normalized funds from operations ("Normalized FFO") per share was
$3.60
,
8.8%
higher than in
2016
.
|
|
•
|
Invested
$174.6 million
, including the acquisition of two flagship RV Resorts for
$134.4 million
and a JV investment in a portfolio of 11 marinas in Florida for
$30.0 million
.
|
|
•
|
Raised our annual dividend to $1.95 per share in
2017
, an increase of 14.7% compared to $1.70 per share in
2016
.
|
|
•
|
Sold
1,380,017
shares of Common Stock for gross proceeds of
$120.7 million
through our ATM equity offering program at a weighted average share price of approximately
$87.46
.
|
|
•
|
Closed on approximately
$350.4 million
of refinancing proceeds on eight Properties and paid debt maturing in 2017 and 2018 of approximately
$230.2 million
. After closing on these loans, our current secured debt balance has a weighted average maturity of 13.0 years and approximately
29.9%
of our outstanding secured debt is fully amortizing.
|
|
•
|
Refinanced the term loan and line of credit, which extended the maturity dates and increased the additional borrowing capacity on the line of credit to $200.0 million from $100.0 million.
|
Overview and Outlook
We are a self-administered, self-managed, real estate investment trust (“REIT”) with headquarters in Chicago, Illinois. We are a fully integrated owner and operator of lifestyle-oriented properties (“Properties”) consisting primarily of manufactured home ("MH") communities and recreational vehicle ("RV") resorts and campgrounds. As of December 31, 2017, we owned or had an ownership interest in a portfolio of
406
Properties located throughout the United States and Canada containing
151,323
Sites. These properties are located in 32 states and British Columbia, with more than 90 Properties with lake, river or ocean frontage and more than 100 Properties within 10 miles of the coastal United States.
We invest in Properties in sought-after locations near retirement and vacation destinations and urban areas across the United States with a focus on increasing operating cash flows. We seek growth in earnings, funds from operations ("FFO") and cash flows by enhancing the profitability and operation of our Properties and investments. We seek to accomplish this by attracting high quality customers to our Properties and retaining these customers who take pride in the Property and in their homes and efficiently managing our Properties to increase operating margins by increasing occupancy, maintaining competitive market rents and controlling expenses.
We believe that demand from baby boomers for manufactured housing and RV resorts will continue to outpace supply for several years. The entitlement process to develop new MH and RV communities is extremely restrictive. As a result, there have been few, if any, new communities developed in our target geographic markets. It is currently estimated that approximately 10,000 baby boomers will turn 65 daily through 2030. Additionally the population of people age 55 and older is expected to grow 22% from 2018 to 2032. We believe these individuals will continue to drive the market for second home sales as vacation properties, investment opportunities, or retirement retreats. We believe it is likely that over the next decade we will continue to see high levels of second home sales and that resort homes and cottages in our Properties will continue to provide a viable second-home alternative to site-built homes.
We also believe that our Properties and our business model provide an opportunity for increased cash flows and appreciation in value. These may be achieved through increases in rental and occupancy rates, as well as expense controls, expansion of existing Properties and opportunistic acquisitions. We actively seek to acquire and are currently engaged in various stages of negotiations relating to the possible acquisition of additional properties, which may include contracts outstanding to acquire such properties that are subject to the satisfactory completion of our due diligence review.
We generate the majority of our revenues from customers renting our Sites, or entering into right-to-use contracts (also referred to as membership products), which provide our customers access to specific Properties for limited stays. Our MH community Sites and annual RV resort Sites are leased on an annual basis. Seasonal Sites are leased to customers generally for one to six months. Transient Sites are leased to customers on a short-term basis. The revenue from seasonal and transient Sites is
33
Management's Discussion (continued)
generally higher during the first and third quarters. We consider the transient revenue stream to be our most volatile as it is subject to weather conditions and other factors affecting the marginal RV customer's vacation and travel preferences.
Approximately one third of our rental agreements on MH community Sites have rent increases that are directly or indirectly connected to published CPI statistics that are issued from June through September of the year prior to the increase effective date. Approximately one half of those rental agreements have a CPI floor of approximately 3.0%.
State and local rent control regulations affect 23 wholly owned Properties, including 15 of our
48
California Properties, all of our seven Delaware Properties and one of our five Massachusetts Properties. The impact of the rent control regulations is to limit our ability to implement rent increases based on prevailing market conditions. The regulations generally permit us to increase rates by a percentage of the increase in the CPI, which may be national, regional or local, depending on the rent control ordinance. The limit on rent increases may range from 60.0% to 100.0% of CPI with certain maximum limits depending on the jurisdiction.
We also have interests in joint venture Properties for which revenue is classified as Equity in income from unconsolidated joint ventures in the Consolidated Statements of Income and Comprehensive Income. During the year, our total initial contributions was approximately $32.2 million in two joint ventures, of which approximately $30.0 million was contributed to Florida Atlantic Holding, LLC ("Loggerhead"), to acquire a
49%
interest. Loggerhead owns a portfolio of 11 marinas located in Florida.
The following table shows the breakdown of our Sites by type (amounts are approximate):
|
Total Sites as of
|
||
|
|
December 31, 2017
|
|
|
Community Sites
|
71,100
|
|
|
Resort Sites:
|
||
|
Annual
|
27,800
|
|
|
Seasonal
|
11,200
|
|
|
Transient
|
11,200
|
|
|
Right-to-use
(1)
|
24,100
|
|
|
Joint Ventures
(2)
|
5,900
|
|
|
151,300
|
|
|
_____________________
|
(1)
|
Includes approximately
5,800
Sites rented on an annual basis.
|
|
(2)
|
Includes approximately: 2,700 annual Sites, 400 seasonal Sites, 500 transient Sites and includes approximately 2,300 marina slips.
|
Sites designated as right-to-use Sites are primarily utilized to service the approximately 106,500 membership customers who have entered into a Thousand Trails Camping Pass (“TTC”), a right-to-use contract, which can be purchased for one to five geographic areas of the United States and requires annual payment of $565. In addition membership customers are eligible to upgrade their right-to-use contract from time-to-time. An upgrade contract is distinguishable from a new right-to-use contract that a customer would enter by, depending on the type of upgrade, offering (1) increased length of consecutive stay by 50% (i.e., up to 21 days); (2) ability to make earlier advance reservations; (3) discounts on rental units; (4) access to additional Properties, which may include use of Sites at non-membership RV resorts and (5) membership in discount travel programs. Each upgrade contract requires a nonrefundable upfront payment. We offer financing for the nonrefundable upfront payment to eligible customers. In addition, as a customer acquisition tool, we have relationships with a network of RV dealers to provide them with a free one-year TTC membership to give to their customers in connection with the purchase of an RV.
In our Home Sales and Rental Operations business our revenue streams include home sales, home rentals, brokerage services and ancillary activities. We generate revenue through home sales and rental operations by selling or leasing Site Set homes that are located in Properties owned and managed by us. We continue to focus on our rental operations, as we believe renting our vacant new homes represents an attractive source of occupancy and the opportunity to convert to a new homebuyer in the future. We also sell and rent homes through our joint venture, ECHO Financing, LLC (the "ECHO JV"). We provide brokerage services to residents of our Properties who move from a Property but do not relocate their home. In addition, we operate ancillary activities at certain Properties, such as golf courses, pro shops, stores and restaurants.
In the manufactured housing industry, chattel financing options ("Chattel Loans") are limited. Financing options available today include community owner funded programs or third party lender programs that provide subsidized financing to customers and often require the community owner to guarantee customer defaults. Third party lender programs have stringent underwriting criteria, sizable down payment requirements, short loan amortization and high interest rates. We have a limited program under which we purchase loans made by an unaffiliated lender to purchasers of homes at our Properties. In 2017, the Federal Housing Finance Agency ("FHFA") published Fannie Mae's and Freddie Mac's Underserved Markets Plans for 2018-2020 (the "Plans") under the Duty to Serve provisions mandated by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. The FHFA mandate requires Fannie Mae and Freddie Mac to serve
34
Management's Discussion (continued)
three specific underserved markets, one of which is the manufactured housing sector. The Plans outline four duty to serve focus areas related to manufactured housing, including home purchase financing for customers placing manufactured homes in land lease communities. The timeline included in the Plans indicates pilot programs will be submitted for approval in late 2018. Upon approval, implementation may begin in early 2019. While this may have positive impact on our customers' ability to obtain chattel financing, specific details necessary to evaluate possible impact on us as well as the industry are not yet available.
In addition to Net income computed in accordance with GAAP, we assess and measure our overall financial and operating performance using certain Non-GAAP supplemental measures, which include: (i) FFO, (ii) Normalized funds from operations ("Normalized FFO"), (iii) Income from property operations, (iv) Income from property operations, excluding deferrals and property management, (v) Core Portfolio income from property operations, excluding deferrals and property management, (operating results for properties owned and operated in both periods under comparison) and (vi) Income from rental operations, net of depreciation. We use these measures internally to evaluate the operating performance of our portfolio and provide a basis for comparison with other real estate companies. Definitions and reconciliations of these measures to the most comparable GAAP measures are included below in this discussion.
Results Overview
Net income available for Common Stockholders increased
$25.9 million
, to
$189.9 million
for the year ended
December 31, 2017
, compared to
$164.0 million
for the year ended
December 31, 2016
. For the year ended
December 31, 2017
, FFO available for Common Stock and OP Unit holders increased
$28.9 million
, or
$0.28
per Common Share, to
$331.7 million
or
$3.55
per Common Share, compared to
$302.8 million
million, or
$3.27
per Common Share, for the same period in
2016
. For the year ended
December 31, 2017
, Normalized FFO available for Common Stock and OP Unit holders increased
$29.4 million
, or
$0.29
per Common Share, to
$335.9 million
, or
$3.60
per Common Share, compared to
$306.5 million
, or
$3.31
per Common Share, for the same period in
2016
.
Our Core Portfolio ("Core Portfolio") consists of our Properties owned and operated during the entire period. The Core Portfolio may change from time-to-time depending on acquisitions, dispositions and significant transactions or unique situations. Since operations at our two Florida Keys RV resorts were interrupted during the quarter and year ended December 31, 2017, we designated these two resorts as Non-core properties. This change is reflected throughout the
Results Overview
.
For the year ended
December 31, 2017
, property operating revenues in our Core Portfolio, excluding deferrals, increased
5.8%
and property operating expenses in our Core Portfolio, excluding deferrals and property management, increased
6.8%
, from the year ended
December 31, 2016
, resulting in an increase in our income from property operations excluding deferrals and property management of
5.0%
from the year ended
December 31, 2016
.
We continue to focus on the quality of occupancy growth by increasing the number of manufactured homeowners in our Core Portfolio. Our Core Portfolio average occupancy consists of occupied home sites in our MH communities (both homeowners and renters) and was
94.6%
for the year ended
December 31, 2017
, compared to
93.9%
for the year ended
December 31, 2016
. As of
December 31, 2017
, our Core Portfolio occupancy increased by
475
sites with an increase in homeowner occupancy of
809
sites compared to occupancy at
December 31, 2016
.
On September 10, 2017 Hurricane Irma made landfall in the state of Florida. Our properties were affected by flooding, wind, wind-blown debris, and fallen trees and tree branches. Overall, homes in our communities held up well with most of the structural damage limited to carports, screen rooms and awnings. Structural damage to common areas was also limited. Our Florida mainland properties resumed normal operations shortly after Hurricane Irma. Fiesta Key RV resort, one of our RV resorts in the Florida Keys, has reopened. We expect Sunshine Key RV resort to reopen as utility services are restored. We expect our restoration efforts to be substantially complete in early 2018. During the year ended December 31, 2017, we recorded expense of
$8.0 million
related to debris removal and cleanup following Hurricane Irma. In addition, during the year ended December 31, 2017, we recorded insurance recovery revenue of
$9.0 million
which includes insurance proceeds received as a result of our first claim submission.
We continue to build on our successful multi-channel marketing campaigns, incorporating social media and advanced marketing analytics. Our marketing campaigns encourage the customer to book online, and we have seen a 42% increase in revenue coming through online reservations as compared to 2016. We continue to experience growth in revenues in our Core RV Portfolio as a result of our ability to increase rental rates and occupancy. RV revenues in our Core Portfolio for the year ended December 31, 2017 were
5.9%
higher than the year ended
December 31, 2016
. Annual, seasonal and transient revenues for the year ended December 31, 2017 increased
5.6%
,
9.0%
and
4.5%
, respectively, from the year ended
December 31, 2016
.
35
Management's Discussion (continued)
For the year ended December 31, 2017, we sold approximately
14,128
TTCs and activated approximately
17,490
RV dealer TTCs.
The table below provides additional details regarding our TTCs for the past five years:
|
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||
|
TTC Origination
|
15,607
|
|
18,187
|
|
25,544
|
|
29,576
|
|
31,618
|
|
||||
|
TTC Sales
|
9,289
|
|
10,014
|
|
11,877
|
|
12,856
|
|
14,128
|
|
||||
|
RV Dealer TTC Activations
|
6,318
|
|
8,173
|
|
13,667
|
|
16,720
|
|
17,490
|
|
||||
We see high demand for our homes and communities. We closed
597
new home sales during the year ended December 31, 2017 compared to
658
new home sales during the year ended December 31, 2016. The new home sales during the year ended December 31, 2017 were primarily in our Florida and Colorado communities.
As of
December 31, 2017
, we had
4,417
occupied rental homes in our MH communities. For the years ended
December 31, 2017
and
2016
, home rental program net operating income was approximately
$31.9 million
and
$32.2 million
, respectively, net of rental asset depreciation expense of approximately
$10.4 million
for the year ended
December 31, 2017
and
$10.7 million
for the year ended
December 31, 2016
. Approximately
$34.6 million
and
$35.7 million
of home rental operations revenue was included in community base rental income for the years ended
December 31, 2017
and
2016
, respectively.
Our gross investment in real estate has increased approximately
$230.5 million
to
$4,915.8 million
as of
December 31, 2017
from
$4,685.3 million
as of
December 31, 2016
, primarily due to increased capital expenditures, as well as the acquisition of three Properties: Paradise Park-Largo, Bethpage Camp Resort and Grey's Point Camp.
Property Acquisitions and Joint Ventures
The following chart lists the Properties or portfolios acquired or invested in during the period January 1,
2016
through December 31,
2017
and Sites added through expansion opportunities at our existing Properties.
|
Property
|
Transaction Date
|
Sites
|
||
|
Total Sites as of January 1, 2016
|
143,938
|
|
||
|
Acquisitions Properties:
|
||||
|
Rose Bay
|
January 27, 2016
|
303
|
|
|
|
Portland Fairview
|
May 26, 2016
|
407
|
|
|
|
Forest Lakes Estates
|
June 15, 2016
|
1,168
|
|
|
|
Riverside RV
|
October 13, 2016
|
499
|
|
|
|
Paradise Park-Largo
|
May 10, 2017
|
108
|
|
|
|
Bethpage Camp Resort
|
November 15, 2017
|
1,034
|
|
|
|
Grey's Point Camp
|
November 15, 2017
|
728
|
|
|
|
Joint Venture
|
||||
|
Crosswinds
|
June 15, 2017
|
376
|
|
|
|
Loggerhead
(a)
|
August 8, 2017
|
2,343
|
|
|
|
Expansion Site Development and other:
|
||||
|
Sites added (reconfigured) in 2016
|
295
|
|
||
|
Sites added (reconfigured) in 2017
|
124
|
|
||
|
Total Sites as of December 31, 2017
|
151,323
|
|
||
_____________________
|
(a)
|
Loggerhead sites represent marina slip count.
|
36
Management's Discussion (continued)
Markets
The following table identifies our largest markets by number of Sites and provides information regarding our Properties (excluding
17
Properties owned through our
seven
Joint Ventures).
|
Major Market
|
Total Sites
|
Number of
Properties
|
Percent of
Total Sites
|
Percent of Total
Property Operating
Revenues
(1)
|
|||||||
|
Florida
|
53,939
|
|
124
|
|
37.1
|
%
|
42.4
|
%
|
|||
|
Northeast
|
18,732
|
|
51
|
|
12.9
|
%
|
11.1
|
%
|
|||
|
Arizona
|
15,838
|
|
40
|
|
10.9
|
%
|
9.6
|
%
|
|||
|
California
|
13,681
|
|
48
|
|
9.4
|
%
|
14.1
|
%
|
|||
|
Midwest
|
12,270
|
|
34
|
|
8.4
|
%
|
6.7
|
%
|
|||
|
Texas
|
8,989
|
|
17
|
|
6.2
|
%
|
2.9
|
%
|
|||
|
Southeast
|
9,147
|
|
26
|
|
6.3
|
%
|
3.6
|
%
|
|||
|
Northwest
|
6,052
|
|
25
|
|
4.2
|
%
|
3.5
|
%
|
|||
|
Colorado
|
3,446
|
|
10
|
|
2.4
|
%
|
3.3
|
%
|
|||
|
Other
|
3,288
|
|
14
|
|
2.3
|
%
|
2.8
|
%
|
|||
|
Total
|
145,382
|
|
389
|
|
100.0
|
%
|
100.0
|
%
|
|||
_____________________
|
(1)
|
Property operating revenues for this calculation excludes approximately
$7.0 million
of property operating revenues not allocated to Properties, which consists primarily of upfront payments from right-to-use contracts.
|
Qualification as a REIT
We believe that we have qualified for taxation as a real estate investment trust ("REIT") for U.S. federal income tax purposes since our taxable year ended December 31, 1993. We plan to continue to meet the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex and concern the ownership of our outstanding stock, the nature of our assets, the sources of our income and the amount of our distributions to our stockholders. The fact that we hold our assets through our Operating Partnership and our Subsidiaries further complicates the application of the REIT requirements.
If we fail to qualify as a REIT and are unable to correct such failure we would be subject to U.S. federal income tax at regular corporate rates. Also, unless the IRS granted us relief under certain statutory provisions, we would remain disqualified as a REIT for four years following the year we first failed to qualify. Even if we qualify for taxation as a REIT, we are subject to certain foreign, state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income.
Recent U.S. Federal Income Tax Legislation
On December 22, 2017, H.R. 1, commonly referred to as the Tax Cuts and Jobs Act was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the "Code"). Relevant changes include, but are not limited to the following:
|
•
|
a decrease in the federal corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017;
|
|
•
|
an immediate 100% deduction of the cost of certain capital asset investments (generally excluding real estate assets), subject to a gradual decrease of the deduction percentage over time;
|
|
•
|
a change in
recovery periods for certain real property and building improvements (for example, to 15 years for qualified improvement property under the modified accelerated cost recovery system, and to 30 years (previously 40 years) for residential real property and 20 years (previously 40 years) for qualified improvement property under the alternative depreciation system);
|
|
•
|
restrictions to the deductibility of interest expense by businesses (generally, to 30% of the business’ adjusted taxable income) except, among others, real property businesses electing out of such restriction; generally, we expect our business to qualify as such a real property business;
|
|
•
|
the use of the less favorable alternative depreciation system to depreciate real property in the event a real property business elects to avoid the interest deduction restriction above;
|
|
•
|
a limitation on net operating losses generated in 2018 or later to offset more than 80% of a taxpayer's taxable income (prior to the application of the dividends paid deduction);
|
|
•
|
elimination of the corporate alternative minimum tax;
|
|
•
|
restriction limiting the benefits of like-kind exchanges that defer capital gains for tax purposes to exchanges of real property;
|
|
•
|
a reduction to
the highest marginal income tax rate for individuals to 37% from 39.6% (excluding, in each case, the 3.8% Medicare tax on net investment income);
|
37
Management's Discussion (continued)
|
•
|
a deduction for individuals equal to 20% of certain income from pass-through entities, including ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income), generally resulting in a maximum effective federal income tax rate applicable to such dividends of 29.6% compared to 37% (excluding, in each case, the 3.8% Medicare tax on net investment income); and
|
|
•
|
a limitation on
certain deductions for individuals, including deductions for state and local income taxes, and eliminates deductions for miscellaneous itemized deductions (including certain investment expenses).
|
Many of the provisions in the Tax Cuts and Jobs Act, in particular those affecting individual taxpayers, expire at the end of 2025.
While the changes in the Tax Cuts and Jobs Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or our stockholders. Moreover, Congressional leaders have recognized that the process of adopting extensive tax legislation in a short amount of time without hearings and substantial time for review is likely to have led to drafting errors, issues needing clarification and unintended consequences that will have to be reviewed in subsequent tax legislation. At this point, it is not clear when Congress will address these issues or when the Internal Revenue Service will issue administrative guidance on the changes made in the Tax Cuts and Jobs Act.
As a result of the changes to U.S. federal tax laws implemented by the Tax Cuts and Jobs Act, our taxable income and the amount of distributions to our stockholders required in order to maintain our REIT status, and our relative tax advantage as a REIT, may change. The long-term impact of the Tax Cuts and Jobs Act on the overall economy, government revenues, our tenants, us, and the real estate industry cannot be reliably predicted at this early stage of the new law’s implementation. Based on our initial review and guidance, we do not anticipate a significant impact to our consolidated financial statements. However, there can be no assurance that the Tax Cuts and Jobs Act will not negatively impact our operating results, financial condition, and future business operations.
Non-GAAP Financial Measures
Management's discussion and analysis of financial condition and results of operations include certain non-GAAP financial measures that in management's view of the business we believe are meaningful as they allow the investor the ability to understand key operating details of our business both with and without regard to certain accounting conventions or items that may not always be indicative of recurring annual cash flow of the portfolio. These non-GAAP financial measures as determined and presented by us may not be comparable to similarly titled measures reported by other companies, and include Income from Property Operations and Core Portfolio, FFO, Normalized FFO and Income from Rental Operation, net of depreciation.
We believe investors should review Income from Property Operations and Core Portfolio, FFO, Normalized FFO and Income from Rental Operations, net of depreciation, along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. A discussion of Income from Property Operations and Core Portfolio, FFO, Normalized FFO and Income from Rental Operations, net of depreciation, and a reconciliation to net income, are included below.
Income from Property Operations and Core Portfolio
We use Income from property operations and Income from property operations, excluding deferrals and property management and Core Portfolio income from property operations, excluding deferrals and property management, as alternative measures to evaluate the operating results of our manufactured home and RV communities. Income from property operations represents rental income, utility income and right-to-use income less property operating and maintenance expenses, real estate tax, sales and marketing expenses and property management expenses. Income from property operations, excluding deferrals and property management represents income from property operations excluding property management expenses and the impact of the GAAP deferral of right-to-use contract upfront payments and related commissions, net. Our Core Portfolio consists of our Properties owned and operated since December 31, 2015. Core Portfolio income from property operations, excluding deferrals and property management is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations. Our Non-Core Portfolio (or Acquisitions) includes all Properties that were not owned and operated during 2016 and 2017, including the Florida Keys RV Resorts.
Funds from Operations ("FFO") and Normalized Funds from Operations ("
Normalized FFO
")
We define FFO as net income, computed in accordance with GAAP, excluding gains and actual or estimated losses from sales of properties, plus real estate related depreciation and amortization, impairments, if any, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently
38
Management's Discussion (continued)
than we do. We receive up-front non-refundable payments from the entry of right-to-use contracts. In accordance with GAAP, the upfront non-refundable payments and related commissions are deferred and amortized over the estimated customer life. Although the NAREIT definition of FFO does not address the treatment of non-refundable right-to-use payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of FFO.
We define Normalized FFO as FFO excluding the following non-operating income and expense items: a) the financial impact of contingent consideration; b) gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs; c) property acquisition and other transaction costs related to mergers and acquisitions; and d) other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.
We believe that FFO and Normalized FFO are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of depreciation, amortization, impairments, if any, and actual or estimated gains or losses from sales of real estate, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our operations. For example, we believe that excluding the early extinguishment of debt, property acquisition and other transaction costs related to mergers and acquisitions from Normalized FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.
Income from Rental Operations, Net of Depreciation
We use Income from rental operations, net of depreciation as an alternative measure to evaluate the operating results of our home rental program. Income from rental operations, net of depreciation, represents income from rental operations less depreciation expense on rental homes. We believe this measure is meaningful for investors as it provides a complete picture of the home rental program operating results including the impact of depreciation which affects our home rental program investment decisions.
Our definitions and calculations of these non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flow from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.
The following table reconciles Net income available for Common Stockholders to Income from property operations for the years ended
December 31, 2017
,
2016
, and
2015
(amounts in thousands):
|
|
Total Portfolio
|
||||||||||||
|
|
2017
|
2016
|
2015
|
||||||||||
|
Computation of Income from Property Operations:
|
|||||||||||||
|
Net income available for Common Stockholders
|
$
|
189,904
|
|
$
|
164,037
|
|
$
|
130,145
|
|
||||
|
Perpetual stock dividends and original issuance costs
|
7,685
|
|
9,226
|
|
9,226
|
|
|||||||
|
Income allocated to non-controlling interests - Common OP Units
|
12,788
|
|
13,869
|
|
11,141
|
|
|||||||
|
Equity in income of unconsolidated joint ventures
|
(3,765
|
)
|
(2,605
|
)
|
(4,089
|
)
|
|||||||
|
Income before equity in income of unconsolidated joint ventures
|
206,612
|
|
|
184,527
|
|
|
146,423
|
|
|||||
|
Total other income and expenses, net
|
246,551
|
|
244,638
|
|
257,852
|
|
|||||||
|
Loss (Income) from home sales operations and other
|
599
|
|
846
|
|
(1,829
|
)
|
|||||||
|
Income/(loss) from property operations
|
$
|
453,762
|
|
|
$
|
430,011
|
|
|
$
|
402,446
|
|
||
39
Management's Discussion (continued)
The following table presents a calculation of FFO available for Common Stock and OP Unit holders and Normalized FFO available for Common Stock and OP Unit holders for the years ended December 31, 2017, December 31, 2016 and December 31, 2015 (amounts in thousands):
|
2017
|
2016
|
2015
|
|||||||||
|
Computation of FFO and Normalized FFO:
|
|||||||||||
|
Net income available for Common Stockholders
|
$
|
189,904
|
|
$
|
164,037
|
|
$
|
130,145
|
|
||
|
Income allocated to common OP Units
|
12,788
|
|
13,869
|
|
11,141
|
|
|||||
|
Right-to-use contract upfront payments, deferred, net
|
4,108
|
|
3,079
|
|
4,231
|
|
|||||
|
Right-to-use contract commissions, deferred, net
|
(354
|
)
|
(223
|
)
|
(1,556
|
)
|
|||||
|
Depreciation on real estate assets
|
111,014
|
|
106,736
|
|
102,934
|
|
|||||
|
Depreciation on rental homes
|
10,441
|
|
10,664
|
|
10,675
|
|
|||||
|
Amortization of in-place leases
|
2,231
|
|
3,373
|
|
2,358
|
|
|||||
|
Depreciation on unconsolidated joint ventures
|
1,533
|
|
1,292
|
|
1,081
|
|
|||||
|
FFO available for Common Stock and OP Unit holders
|
$
|
331,665
|
|
$
|
302,827
|
|
$
|
261,009
|
|
||
|
Transaction costs
|
724
|
|
1,217
|
|
1,130
|
|
|||||
|
Early debt retirement
|
2,785
|
|
—
|
|
16,913
|
|
|||||
|
Preferred stock original issuance
|
757
|
|
—
|
|
—
|
|
|||||
|
Litigation Settlement, net
|
—
|
|
2,415
|
|
—
|
|
|||||
|
Normalized FFO available for Common Stock and OP Unit holders
|
$
|
335,931
|
|
$
|
306,459
|
|
$
|
279,052
|
|
||
|
Weighted average common shares outstanding—fully diluted
|
93,425
|
|
92,569
|
|
91,907
|
|
|||||
Results of Operations
Comparison of Year Ended
December 31, 2017
to Year Ended
December 31, 2016
Income from Property Operations
The following table summarizes certain financial and statistical data for our Core Portfolio and the total portfolio for the years ended
December 31, 2017
and
2016
(amounts in thousands). The Core Portfolio may change from time-to-time depending on acquisitions, dispositions and significant transactions or unique situations. The Core Portfolio in this comparison of the years ended
December 31, 2017
and
December 31, 2016
includes all Properties acquired prior to
December 31, 2015
and which we have owned and operated continuously since January 1,
2016
. During the year ended December 31, 2017, operations at our Florida Keys RV resorts were interrupted and have been designated as Non-core properties. This change is reflected in the results of operations for the comparison of the year ended December 31, 2017 to the year ended December 31, 2016. Core Portfolio growth percentages exclude the impact of U.S. GAAP deferrals of upfront payments from right-to-use contracts and related commissions.
40
Management's Discussion (continued)
|
|
Core Portfolio
|
Total Portfolio
|
|||||||||||||||||||||||||||
|
2017
|
2016
|
Variance
|
%
Change
|
2017
|
2016
|
Variance
|
%
Change
|
||||||||||||||||||||||
|
Community base rental income
|
$
|
484,484
|
|
$
|
462,321
|
|
$
|
22,163
|
|
4.8
|
%
|
$
|
489,613
|
|
$
|
464,745
|
|
$
|
24,868
|
|
5.4
|
%
|
|||||||
|
Rental home income
|
14,344
|
|
14,108
|
|
236
|
|
1.7
|
%
|
14,344
|
|
14,107
|
|
237
|
|
1.7
|
%
|
|||||||||||||
|
Resort base rental income
|
199,886
|
|
188,821
|
|
11,065
|
|
5.9
|
%
|
218,806
|
|
201,533
|
|
17,273
|
|
8.6
|
%
|
|||||||||||||
|
Right-to-use annual payments
|
45,748
|
|
45,035
|
|
713
|
|
1.6
|
%
|
45,798
|
|
45,035
|
|
763
|
|
1.7
|
%
|
|||||||||||||
|
Right-to-use contracts current period, gross
|
14,132
|
|
12,327
|
|
1,805
|
|
14.6
|
%
|
14,132
|
|
12,327
|
|
1,805
|
|
14.6
|
%
|
|||||||||||||
|
Utility and other income
|
90,341
|
|
80,153
|
|
10,188
|
|
12.7
|
%
|
93,252
|
|
81,427
|
|
11,825
|
|
14.5
|
%
|
|||||||||||||
|
Property operating revenues, excluding deferrals
|
848,935
|
|
802,765
|
|
46,170
|
|
5.8
|
%
|
875,945
|
|
819,174
|
|
56,771
|
|
6.9
|
%
|
|||||||||||||
|
Property operating and maintenance
|
281,055
|
|
260,607
|
|
20,448
|
|
7.8
|
%
|
294,119
|
|
268,249
|
|
25,870
|
|
9.6
|
%
|
|||||||||||||
|
Rental home operating and maintenance
|
6,610
|
|
6,882
|
|
(272
|
)
|
(4.0
|
)%
|
6,610
|
|
6,883
|
|
(273
|
)
|
(4.0
|
)%
|
|||||||||||||
|
Real estate taxes
|
53,730
|
|
51,892
|
|
1,838
|
|
3.5
|
%
|
55,010
|
|
53,036
|
|
1,974
|
|
3.7
|
%
|
|||||||||||||
|
Sales and marketing, gross
|
11,436
|
|
11,058
|
|
378
|
|
3.4
|
%
|
11,438
|
|
11,056
|
|
382
|
|
3.5
|
%
|
|||||||||||||
|
Property operating expenses, excluding deferrals and Property management
|
352,831
|
|
330,439
|
|
22,392
|
|
6.8
|
%
|
367,177
|
|
339,224
|
|
27,953
|
|
8.2
|
%
|
|||||||||||||
|
Income from property operations, excluding deferrals and Property management
(1)
|
496,104
|
|
472,326
|
|
23,778
|
|
5.0
|
%
|
508,768
|
|
479,950
|
|
28,818
|
|
6.0
|
%
|
|||||||||||||
|
Property management
|
51,252
|
|
47,079
|
|
4,173
|
|
8.9
|
%
|
51,252
|
|
47,083
|
|
4,169
|
|
8.9
|
%
|
|||||||||||||
|
Income from property operations, excluding deferrals
(1)
|
444,852
|
|
425,247
|
|
19,605
|
|
4.6
|
%
|
457,516
|
|
432,867
|
|
24,649
|
|
5.7
|
%
|
|||||||||||||
|
Right-to-use contracts, deferred and sales and marketing, deferred, net
|
3,754
|
|
2,856
|
|
898
|
|
31.4
|
%
|
3,754
|
|
2,856
|
|
898
|
|
31.4
|
%
|
|||||||||||||
|
Income from property operations
(1)
|
$
|
441,098
|
|
$
|
422,391
|
|
$
|
18,707
|
|
4.4
|
%
|
$
|
453,762
|
|
$
|
430,011
|
|
$
|
23,751
|
|
5.5
|
%
|
|||||||
__________________________
|
(1)
|
Non-GAAP measure, see the Results Overview section of the Management Discussion and Analysis for Non-GAAP Financial Measure Definitions and reconciliations of these non-GAAP measures to Net Income available to Common Shareholders.
|
Total Portfolio income from property operations, which includes Core and Non-core portfolios, for the year ended December 31, 2017 increased
$23.8 million
, or
5.5%
from the year ended December 31, 2016, driven by an increase of
$18.7 million
or
4.4%
, in our Core Portfolio income from property operations and a $
5.1 million
increase in our Non-core income from property operations.
Property Operating Revenues
Community base rental income in our Core Portfolio for the year ended December 31, 2017 increased
$22.2 million
or
4.8%
from the year ended December 31, 2016, which reflects 3.9% growth from rate increases and approximately 0.9% growth from occupancy gains. The average monthly base rental income per Site in our Core portfolio increased to approximately
$612
for the year ended December 31,
2017
from approximately
$589
for the year ended December 31,
2016
. The average occupancy for the Core Portfolio increased to
94.2%
for the year ended December 31,
2017
from
93.4%
for the year ended December 31,
2016
.
Resort base rental income in our Core Portfolio for the year ended December 31, 2017 increased $
11.1 million
, or
5.9%
, from the year ended December 31, 2016 primarily due to increased rental rates. Resort base rental income is comprised of the following (amounts in thousands):
|
|
Core Portfolio
|
Total Portfolio
|
|||||||||||||||||||||||||||
|
|
2017
|
2016
|
Variance
|
% Change
|
2017
|
2016
|
Variance
|
% Change
|
|||||||||||||||||||||
|
Annual
|
$
|
127,923
|
|
$
|
121,113
|
|
$
|
6,810
|
|
5.6
|
%
|
$
|
133,236
|
|
$
|
124,308
|
|
$
|
8,928
|
|
7.2
|
%
|
|||||||
|
Seasonal
|
29,829
|
|
27,370
|
|
2,459
|
|
9.0
|
%
|
36,157
|
|
31,510
|
|
4,647
|
|
14.7
|
%
|
|||||||||||||
|
Transient
|
42,134
|
|
40,338
|
|
1,796
|
|
4.5
|
%
|
49,413
|
|
45,715
|
|
3,698
|
|
8.1
|
%
|
|||||||||||||
|
Resort base rental income
|
$
|
199,886
|
|
$
|
188,821
|
|
$
|
11,065
|
|
5.9
|
%
|
$
|
218,806
|
|
$
|
201,533
|
|
$
|
17,273
|
|
8.6
|
%
|
|||||||
Right-to-use contracts current period, gross, net of sales and marketing, gross, increased as a result of a higher number of upgrades sold and an increase in the average upgrade sales price during the year ended December 31, 2017 compared with the year ended December 31, 2016. During the year ended
December 31, 2017
, there were 2,514 upgrade sales with an average price
41
Management's Discussion (continued)
per sale of $5,621. This compares to 2,477 upgrade sales with an average price per sale of $4,978 for the year ended
December 31, 2016
.
Utility and other income in our Core Portfolio for the year ended December 31, 2017 increased $
10.2 million
or
12.7%
from the year ended December 31, 2016, primarily due to an insurance recovery revenue accrual related to Hurricane Irma, insurance proceeds related to prior storm events, and recoverable utility expense rate and usage increases during 2017.
Property Operating Expenses
Property operating expenses, excluding deferrals and property management, in our Core Portfolio for the year ended December 31, 2017 increased
$22.4 million
, or
6.8%
, from the year ended December 31, 2016. The increase was primarily due to an increase in property operating and maintenance expenses of
$20.4 million
, driven by an increase of $8.6 million in repairs and maintenance costs recorded during the year ended December 31, 2017, primarily related to clean up costs as a result of Hurricane Irma and prior storm events, an increase of $4.7 million in utility expense, an increase of $3.4 million in property payroll driven by wage increases and increased headcount and an increase of $1.4 million in administrative costs.
Home Sales and Other
The following table summarizes certain financial and statistical data for our Home Sales Operations for the years ended
December 31, 2017
and
2016
(amounts in thousands, except home sales volumes).
|
2017
|
2016
|
Variance
|
% Change
|
|||||||||||
|
Gross revenues from new home sales
(1)
|
$
|
25,759
|
|
$
|
26,074
|
|
$
|
(315
|
)
|
(1.2
|
)%
|
|||
|
Cost of new home sales
(1)
|
(25,188
|
)
|
(26,028
|
)
|
840
|
|
3.2
|
%
|
||||||
|
Gross profit from new home sales
|
571
|
|
46
|
|
525
|
|
1,141.3
|
%
|
||||||
|
Gross revenues from used home sales
|
10,543
|
|
11,117
|
|
(574
|
)
|
(5.2
|
)%
|
||||||
|
Cost of used home sales
|
(11,325
|
)
|
(11,428
|
)
|
103
|
|
0.9
|
%
|
||||||
|
Loss from used home sales
|
(782
|
)
|
(311
|
)
|
(471
|
)
|
(151.4
|
)%
|
||||||
|
Brokered resale revenues and ancillary services revenues, net
|
3,798
|
|
2,994
|
|
804
|
|
26.9
|
%
|
||||||
|
Home selling expenses
|
(4,186
|
)
|
(3,575
|
)
|
(611
|
)
|
(17.1
|
)%
|
||||||
|
(Loss) from home sales operations and other
|
$
|
(599
|
)
|
$
|
(846
|
)
|
$
|
247
|
|
(29.2
|
)%
|
|||
|
Home sales volumes:
|
||||||||||||||
|
New home sales
(2)
|
597
|
|
658
|
|
(61
|
)
|
(9.3
|
)%
|
||||||
|
New Home Sales Volume - ECHO JV
|
158
|
|
208
|
|
(50
|
)
|
(24.0
|
)%
|
||||||
|
Used home sales
|
1,280
|
|
1,266
|
|
14
|
|
1.1
|
%
|
||||||
|
Brokered home resales
|
880
|
|
792
|
|
88
|
|
11.1
|
%
|
||||||
_____________________
|
(1)
|
New home sales gross revenues and costs of new home sales does not include the revenues and costs associated with our ECHO JV.
|
|
(2)
|
Total new home sales volume includes home sales from our ECHO JV for the years ended
December 31, 2017
and
2016
, respectively.
|
The decrease in loss from home sales operations and other was primarily due to an increase in ancillary activities and an increase in the gross profit from new home sales, partially offset by an increase in home selling expenses and an increase in the loss from used home sales. The increase in home selling expenses was primarily due to expense of $0.4 million recorded during the quarter ended September 30, 2017 related to property damage as a result of Hurricane Irma. The expense recorded during the quarter ended September 30, 2017 was offset by revenue recorded of $0.4 million in brokered resale revenues and ancillary services revenues, net during the quarter ended September 30, 2017 related to the expected insurance recovery from this loss.
42
Management's Discussion (continued)
Rental Operations
The following table summarizes certain financial and statistical data for our manufactured home Rental Operations for the years ended
December 31, 2017
and
2016
(amounts in thousands, except rental unit volumes).
|
2017
|
2016
|
Variance
|
% Change
|
|||||||||||
|
New Home
|
$
|
27,043
|
|
$
|
25,267
|
|
$
|
1,776
|
|
7.0
|
%
|
|||
|
Used Home
|
21,893
|
|
24,578
|
|
(2,685
|
)
|
(10.9
|
)%
|
||||||
|
Rental operations revenue
(1)
|
48,936
|
|
49,845
|
|
(909
|
)
|
(1.8
|
)%
|
||||||
|
Rental home operating and maintenance
|
(6,610
|
)
|
(6,883
|
)
|
273
|
|
4.0
|
%
|
||||||
|
Income from rental operations
|
42,326
|
|
42,962
|
|
(636
|
)
|
(1.5
|
)%
|
||||||
|
Depreciation on rental homes
(2)
|
(10,441
|
)
|
(10,664
|
)
|
223
|
|
2.1
|
%
|
||||||
|
Income from rental operations, net of depreciation
|
$
|
31,885
|
|
$
|
32,298
|
|
$
|
(413
|
)
|
(1.3
|
)%
|
|||
|
Gross investment in new manufactured home rental units
(3)
|
$
|
132,478
|
|
$
|
126,455
|
|
$
|
6,023
|
|
4.8
|
%
|
|||
|
Gross investment in used manufactured home rental units
|
$
|
43,374
|
|
$
|
51,467
|
|
$
|
(8,093
|
)
|
(15.7
|
)%
|
|||
|
Net investment in new manufactured home rental units
|
$
|
105,828
|
|
$
|
103,436
|
|
$
|
2,392
|
|
2.3
|
%
|
|||
|
Net investment in used manufactured home rental units
|
$
|
23,779
|
|
$
|
32,239
|
|
$
|
(8,460
|
)
|
(26.2
|
)%
|
|||
|
Number of occupied rentals – new, end of period
(4)
|
2,533
|
|
2,375
|
|
158
|
|
6.7
|
%
|
||||||
|
Number of occupied rentals—used, end of period
|
1,884
|
|
2,375
|
|
(491
|
)
|
(20.7
|
)%
|
||||||
_____________________
|
(1)
|
Rental operations revenue consists of Site rental income and home rental income. Approximately
$34.6 million
and
$35.7 million
for the years ended
December 31, 2017
and
2016
, respectively, of Site rental income are included in Community base rental income in the Income from Property Operations table. The remainder of home rental income is included in Rental home income in the Income from Property Operations table.
|
|
(2)
|
Included in depreciation on real estate and rental homes in the Consolidated Statements of Income and Comprehensive Income.
|
|
(3)
|
New home cost basis does not include the costs associated with our ECHO JV. Our investment in the ECHO JV was
$15.6 million
and
$15.4 million
at
December 31, 2017
, and
2016
, respectively.
|
|
(4)
|
Includes 268 and 183 homes rented through our ECHO JV in
2017
and
2016
, respectively.
|
The decrease in income from rental operations, net of depreciation was primarily due to a decrease in the number of used occupied rental units, partially offset by an increase in the number of occupied new homes at a higher rental rate.
Other Income and Expenses
The following table summarizes other income and expenses for the years ended
December 31, 2017
and
2016
(amounts in thousands).
|
2017
|
2016
|
Variance
|
% Change
|
|||||||||||
|
Depreciation on real estate and rental homes
|
$
|
(121,455
|
)
|
$
|
(117,400
|
)
|
$
|
(4,055
|
)
|
(3.5
|
)%
|
|||
|
Amortization of in-place leases
|
(2,231
|
)
|
(3,373
|
)
|
1,142
|
|
33.9
|
%
|
||||||
|
Interest income
|
7,580
|
|
6,845
|
|
735
|
|
10.7
|
%
|
||||||
|
Income from other investments, net
|
5,795
|
|
7,310
|
|
(1,515
|
)
|
(20.7
|
)%
|
||||||
|
General and administrative (excluding transaction costs)
|
(31,013
|
)
|
(29,787
|
)
|
(1,226
|
)
|
(4.1
|
)%
|
||||||
|
Transaction costs
|
(724
|
)
|
(1,217
|
)
|
493
|
|
40.5
|
%
|
||||||
|
Other expenses, including property rights initiatives
|
(1,148
|
)
|
(4,986
|
)
|
3,838
|
|
77.0
|
%
|
||||||
|
Early debt retirement
|
(2,785
|
)
|
—
|
|
(2,785
|
)
|
100.0
|
%
|
||||||
|
Interest and related amortization
|
(100,570
|
)
|
(102,030
|
)
|
1,460
|
|
1.4
|
%
|
||||||
|
Total other income and expenses, net
|
$
|
(246,551
|
)
|
$
|
(244,638
|
)
|
$
|
(1,913
|
)
|
(0.8
|
)%
|
|||
Other expenses, net increased
$1.9 million
for the year ended December 31, 2017, compared to the year ended December 31, 2016 primarily due to an increase in depreciation on real estate and rental homes, early debt retirement costs incurred in 2017 as a result of the refinancing activities completed during 2017 (see Note 8 to the Consolidated Financial Statements for additional detail regarding borrowing arrangements) and a decrease in income from other investments, net, due to the termination of the Tropical Palms RV ground lease in 2016, partially offset by a decrease in property rights initiatives and other, net primarily due to $2.4 million incurred in 2016 related to the resolution of the California lawsuits.
43
Management's Discussion (continued)
Comparison of Year Ended
December 31, 2016
to Year Ended
December 31, 2015
Income from Property Operations
The following table summarizes certain financial and statistical data for the Core Portfolio and the total portfolio for the years ended
December 31, 2016
and
2015
(amounts in thousands).
|
|
Core Portfolio
|
Total Portfolio
|
|||||||||||||||||||||||||||
|
|
2016
|
2015
|
Variance
|
%
Change
|
2016
|
2015
|
Variance
|
%
Change
|
|||||||||||||||||||||
|
Community base rental income
|
$
|
461,892
|
|
$
|
441,642
|
|
$
|
20,250
|
|
4.6
|
%
|
$
|
464,745
|
|
$
|
442,046
|
|
$
|
22,699
|
|
5.1
|
%
|
|||||||
|
Rental home income
|
14,107
|
|
14,007
|
|
100
|
|
0.7
|
%
|
14,107
|
|
14,012
|
|
95
|
|
0.7
|
%
|
|||||||||||||
|
Resort base rental income
|
194,204
|
|
183,394
|
|
10,810
|
|
5.9
|
%
|
201,533
|
|
184,760
|
|
16,773
|
|
9.1
|
%
|
|||||||||||||
|
Right-to-use annual payments
|
45,035
|
|
44,443
|
|
592
|
|
1.3
|
%
|
45,035
|
|
44,443
|
|
592
|
|
1.3
|
%
|
|||||||||||||
|
Right-to-use contracts current period, gross
|
12,327
|
|
12,783
|
|
(456
|
)
|
(3.6
|
)%
|
12,327
|
|
12,783
|
|
(456
|
)
|
(3.6
|
)%
|
|||||||||||||
|
Utility and other income
|
80,484
|
|
75,959
|
|
4,525
|
|
6.0
|
%
|
81,427
|
|
76,153
|
|
5,274
|
|
6.9
|
%
|
|||||||||||||
|
Property operating revenues, excluding deferrals
|
808,049
|
|
772,228
|
|
35,821
|
|
4.6
|
%
|
819,174
|
|
774,197
|
|
44,977
|
|
5.8
|
%
|
|||||||||||||
|
Property operating and maintenance
|
263,677
|
|
253,639
|
|
10,038
|
|
4.0
|
%
|
268,249
|
|
254,668
|
|
13,581
|
|
5.3
|
%
|
|||||||||||||
|
Rental home operating and maintenance
|
6,882
|
|
7,167
|
|
(285
|
)
|
(4.0
|
)%
|
6,883
|
|
7,167
|
|
(284
|
)
|
(4.0
|
)%
|
|||||||||||||
|
Real estate taxes
|
52,029
|
|
50,894
|
|
1,135
|
|
2.2
|
%
|
53,036
|
|
50,962
|
|
2,074
|
|
4.1
|
%
|
|||||||||||||
|
Sales and marketing, gross
|
11,056
|
|
11,750
|
|
(694
|
)
|
(5.9
|
)%
|
11,056
|
|
11,751
|
|
(695
|
)
|
(5.9
|
)%
|
|||||||||||||
|
Property operating expenses, excluding deferrals and Property management
|
333,644
|
|
323,450
|
|
10,194
|
|
3.2
|
%
|
339,224
|
|
324,548
|
|
14,676
|
|
4.5
|
%
|
|||||||||||||
|
Income from property operations, excluding deferrals and Property management
(1)
|
474,405
|
|
448,778
|
|
25,627
|
|
5.7
|
%
|
479,950
|
|
449,649
|
|
30,301
|
|
6.7
|
%
|
|||||||||||||
|
Property management
|
47,081
|
|
44,527
|
|
2,554
|
|
5.7
|
%
|
47,083
|
|
44,528
|
|
2,555
|
|
5.7
|
%
|
|||||||||||||
|
Income from property operations, excluding deferrals
(1)
|
427,324
|
|
404,251
|
|
23,073
|
|
5.7
|
%
|
432,867
|
|
405,121
|
|
27,746
|
|
6.8
|
%
|
|||||||||||||
|
Right-to-use contracts, deferred and sales and marketing, deferred, net
|
2,856
|
|
2,675
|
|
181
|
|
6.8
|
%
|
2,856
|
|
2,675
|
|
181
|
|
6.8
|
%
|
|||||||||||||
|
Income from property operations
(1)
|
$
|
424,468
|
|
$
|
401,576
|
|
$
|
22,892
|
|
5.7
|
%
|
$
|
430,011
|
|
$
|
402,446
|
|
$
|
27,565
|
|
6.8
|
%
|
|||||||
__________________________
|
(1)
|
Non-GAAP measure, see the Results Overview section of the Management Discussion and Analysis for Non-GAAP Financial Measure Definitions and reconciliations of these non-GAAP measures to Net Income available to Common Shareholders.
|
The increase in total portfolio Income from property operations is primarily due to increases in both Core and Non-Core community base rental income, resort base rental income, as well as increased utility and other income. The increase in Property operating revenues, excluding deferrals, is partially offset by increases in Property operating and maintenance expense and real estate taxes.
The
4.6%
increase in Core Portfolio community base rental income primarily reflected a 3.7% growth from rate increases and a 0.9% growth from occupancy gains. The average monthly base rent per site increased to approximately $590 in 2016 from approximately $569 in 2015. The average occupancy increased to 93.5% in 2016 from 92.6% in 2015.
Resort base rental income is comprised of the following (amounts in thousands):
|
|
Core Portfolio
|
Total Portfolio
|
|||||||||||||||||||||||||||
|
|
2016
|
2015
|
Variance
|
% Change
|
2016
|
2015
|
Variance
|
% Change
|
|||||||||||||||||||||
|
Annual
|
$
|
121,103
|
|
$
|
114,565
|
|
$
|
6,538
|
|
5.7
|
%
|
$
|
124,308
|
|
$
|
115,314
|
|
$
|
8,994
|
|
7.8
|
%
|
|||||||
|
Seasonal
|
29,589
|
|
28,709
|
|
880
|
|
3.1
|
%
|
31,510
|
|
28,998
|
|
2,512
|
|
8.7
|
%
|
|||||||||||||
|
Transient
|
43,512
|
|
40,120
|
|
3,392
|
|
8.5
|
%
|
45,715
|
|
40,448
|
|
5,267
|
|
13.0
|
%
|
|||||||||||||
|
Resort base rental income
|
$
|
194,204
|
|
$
|
183,394
|
|
$
|
10,810
|
|
5.9
|
%
|
$
|
201,533
|
|
$
|
184,760
|
|
$
|
16,773
|
|
9.1
|
%
|
|||||||
Right-to-use contracts current period, gross, net of sales and marketing, gross, decreased as a result of a lower number of upgrade sales by our third party sales agent. During the year ending December 31, 2016, there were 2,477 upgrade sales with an average price per sale of $4,978. This compares to 2,687 upgrade sales with an average price per sale of $4,745 for the year ended December 31, 2015.
44
Management's Discussion (continued)
The increase in Property operating and maintenance expenses was primarily driven by increased repairs and maintenance, Property payroll and utility expense. The increase in repairs and maintenance is largely due to extraordinary repairs and maintenance, specifically storm debris clean-up costs and a marina fire. Additionally, repairs and maintenance increased due to excess water hauling due to significant rainfall in the South region. The increase in Property payroll is driven by annual salary increases, while the increase in utility expense is primarily driven by increases in sewer, water and trash expenses at certain Properties, and is offset by the increase in utility recoveries reflected in utility and other income.
Home Sales Operations
The following table summarizes certain financial and statistical data for our Home Sales Operations for the years ended
December 31, 2016
and
2015
(amounts in thousands, except home sales volumes).
|
2016
|
2015
|
Variance
|
% Change
|
|||||||||||
|
Gross revenues from new home sales
(1)
|
$
|
26,074
|
|
$
|
17,674
|
|
$
|
8,400
|
|
47.5
|
%
|
|||
|
Cost of new home sales
(1)
|
(26,028
|
)
|
(16,678
|
)
|
(9,350
|
)
|
(56.1
|
)%
|
||||||
|
Gross profit from new home sales
|
46
|
|
996
|
|
(950
|
)
|
(95.4
|
)%
|
||||||
|
Gross revenues from used home sales
|
11,117
|
|
15,476
|
|
(4,359
|
)
|
(28.2
|
)%
|
||||||
|
Cost of used home sales
|
(11,428
|
)
|
(15,601
|
)
|
4,173
|
|
26.7
|
%
|
||||||
|
Gross (loss) profit from used home sales
|
(311
|
)
|
(125
|
)
|
(186
|
)
|
(148.8
|
)%
|
||||||
|
Brokered resale revenues and ancillary services revenues, net
|
2,994
|
|
4,149
|
|
(1,155
|
)
|
(27.8
|
)%
|
||||||
|
Home selling expenses
|
(3,575
|
)
|
(3,191
|
)
|
(384
|
)
|
(12.0
|
)%
|
||||||
|
Income from home sales operations and other
|
$
|
(846
|
)
|
$
|
1,829
|
|
$
|
(2,675
|
)
|
(146.3
|
)%
|
|||
|
Home sales volumes:
|
||||||||||||||
|
Total new home sales
(2)
|
658
|
|
479
|
|
179
|
|
37.4
|
%
|
||||||
|
New Home Sales Volume - ECHO JV
|
208
|
|
178
|
|
30
|
|
16.9
|
%
|
||||||
|
Used home sales
|
1,266
|
|
1,489
|
|
(223
|
)
|
(15.0
|
)%
|
||||||
|
Brokered home resales
|
792
|
|
884
|
|
(92
|
)
|
(10.4
|
)%
|
||||||
_____________________
|
(1)
|
New home sales gross revenues and costs of new home sales does not include the revenues and costs associated with our ECHO JV.
|
|
(2)
|
Total new home sales volume includes home sales through our ECHO JV for the years ended
December 31, 2016
and
2015
, respectively.
|
The decrease in income from home sales operations and other is primarily due to a change in the home sales mix, increased home selling expenses and a decrease in ancillary services income.
45
Management's Discussion (continued)
Rental Operations
The following table summarizes certain financial and statistical data for our manufactured home Rental Operations for the years ended
December 31, 2016
and
2015
(amounts in thousands, except rental unit volumes).
|
2016
|
2015
|
Variance
|
% Change
|
|||||||||||
|
New Home
|
$
|
25,267
|
|
$
|
22,801
|
|
$
|
2,466
|
|
10.8
|
%
|
|||
|
Used Home
|
24,578
|
|
27,826
|
|
(3,248
|
)
|
(11.7
|
)%
|
||||||
|
Rental operations revenue
(1)
|
49,845
|
|
50,627
|
|
(782
|
)
|
(1.5
|
)%
|
||||||
|
Rental home operating and maintenance
|
(6,883
|
)
|
(7,167
|
)
|
284
|
|
4.0
|
%
|
||||||
|
Income from rental operations
|
42,962
|
|
43,460
|
|
(498
|
)
|
(1.1
|
)%
|
||||||
|
Depreciation on rental homes
(2)
|
(10,664
|
)
|
(10,675
|
)
|
11
|
|
0.1
|
%
|
||||||
|
Income from rental operations, net of depreciation
|
$
|
32,298
|
|
$
|
32,785
|
|
$
|
(487
|
)
|
(1.5
|
)%
|
|||
|
Gross investment in new manufactured home rental units
(3)
|
$
|
126,455
|
|
$
|
111,814
|
|
$
|
14,641
|
|
13.1
|
%
|
|||
|
Gross investment in used manufactured home rental units
|
$
|
51,467
|
|
$
|
57,427
|
|
$
|
(5,960
|
)
|
(10.4
|
)%
|
|||
|
Net investment in new manufactured home rental units
|
$
|
103,436
|
|
$
|
92,503
|
|
$
|
10,933
|
|
11.8
|
%
|
|||
|
Net investment in used manufactured home rental units
|
$
|
32,239
|
|
$
|
40,864
|
|
$
|
(8,625
|
)
|
(21.1
|
)%
|
|||
|
Number of occupied rentals – new, end of period
(4)
|
2,375
|
|
2,170
|
|
205
|
|
9.4
|
%
|
||||||
|
Number of occupied rentals—used, end of period
|
2,375
|
|
2,797
|
|
(422)
|
|
(15.1
|
)%
|
||||||
_____________________
|
(1)
|
Rental operations revenue consists of Site rental income and home rental income. Approximately
$35.7 million
and
$36.6 million
as of
December 31, 2016
and
2015
, respectively, of Site rental income are included in Community base rental income in the Income from Property Operations table. The remainder of home rental income is included in Rental home income in the Income from Property Operations table.
|
|
(2)
|
Included in depreciation on real estate and other costs in the Consolidated Statements of Income and Comprehensive Income.
|
|
(3)
|
The new home cost basis does not include the costs associated with our ECHO JV. Our investment in the ECHO JV was
$15.4 million
and $10.4 million at
December 31, 2016
and
2015
, respectively.
|
|
(4)
|
Includes 183 and 100 homes rented through our ECHO JV in 2016 and 2015, respectively.
|
The decrease in income from rental operations, net of depreciation is primarily due to a decrease in the number of used occupied rental units. As of December 31, 2016 the used occupancy decrease is partially offset by an increased number of occupied new homes at a higher rental rate.
Other Income and Expenses
The following table summarizes other income and expenses for the years ended
December 31, 2016
and
2015
(amounts in thousands).
|
2016
|
2015
|
Variance
|
% Change
|
|||||||||||
|
Depreciation on real estate and rental homes
|
$
|
(117,400
|
)
|
$
|
(113,609
|
)
|
$
|
(3,791
|
)
|
(3.3
|
)%
|
|||
|
Amortization of in-place leases
|
(3,373
|
)
|
(2,358
|
)
|
(1,015
|
)
|
(43.0
|
)%
|
||||||
|
Interest income
|
6,845
|
|
7,030
|
|
(185
|
)
|
(2.6
|
)%
|
||||||
|
Income from other investments, net
|
7,310
|
|
7,359
|
|
(49
|
)
|
(0.7
|
)%
|
||||||
|
General and administrative (excluding transaction costs)
|
(29,787
|
)
|
(29,514
|
)
|
(273
|
)
|
(0.9
|
)%
|
||||||
|
Transaction costs
|
(1,217
|
)
|
(1,130
|
)
|
(87
|
)
|
(7.7
|
)%
|
||||||
|
Other expenses, including property rights initiatives
|
(4,986
|
)
|
(2,986
|
)
|
(2,000
|
)
|
(67.0
|
)%
|
||||||
|
Early debt retirement
|
—
|
|
(16,913
|
)
|
16,913
|
|
100.0
|
%
|
||||||
|
Interest and related amortization
|
(102,030
|
)
|
(105,731
|
)
|
3,701
|
|
3.5
|
%
|
||||||
|
Total other income and expenses, net
|
$
|
(244,638
|
)
|
$
|
(257,852
|
)
|
$
|
13,214
|
|
5.1
|
%
|
|||
Other expenses, net decreased $13.2 million for the year ended December 31, 2016 compared to the year ended December 31, 2015, primarily due to approximately $17.0 million of early debt retirement fees associated with defeasance and prepayment activity during the first quarter of 2015. Additionally, interest and related amortization decreased compared to the prior year due to the decrease in secured debt related to refinancing and payment activity, as well as lower weighted average interest rates. These decreases were partially offset by increases in depreciation on real estate and rental homes and other expenses, including property rights initiatives. These expenses increased due to higher capital expenditures, 2016 acquisitions properties, as well as
$2.4 million
related to resolution of the California lawsuits.
46
Management's Discussion (continued)
Liquidity and Capital Resources
Liquidity
Our primary demands for liquidity include payment of operating expenses, debt service, including principal and interest, capital improvements on properties, purchasing both new and pre-owned homes, acquisitions of new Properties, and distributions. We expect similar demands for liquidity will continue for the short-term and long-term. Our primary sources of cash include operating cash flows, proceeds from financings, borrowings under our unsecured Line of Credit ("LOC") and proceeds from issuance of equity and debt securities.
On November 2, 2017, we extended our ATM equity offering program by entering into new separate equity distribution agreements with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our common stock, par value $0.01 per share, having an aggregate offering price of up to $200.0 million. For the
year ended
December 31, 2017
, we sold
1,380,017
shares of our common stock under the ATM equity offering program for gross cash proceeds of approximately
$120.7 million
at a weighted average share price of
$87.46
before expenses of approximately
$1.5 million
. As of
December 31, 2017
,
$150.0 million
of common stock remained available for issuance under the ATM equity offering program (see Note 4 to the Consolidated Financial Statements). In addition, we have available liquidity in the form of authorized and unissued preferred stock of approximately
10.0 million
shares and approximately
111.4 million
shares of authorized but unissued common stock registered for sale under the Securities Act of 1933, as amended, by a shelf registration statement which was automatically effective when filed with the SEC. Our charter allows us to issue up to 200.0 million shares of common stock, par value $0.01 per share and up to 10.0 million shares of preferred stock, par value $0.01 per share.
One of our stated objectives is to maintain financial flexibility. Achieving this objective allows us to take advantage of strategic opportunities that may arise. We believe effective management of our balance sheet, including maintaining various access points to raise capital, manage future debt maturities and borrow at competitive rates enables us to meet this objective. We believe we currently have sufficient liquidity, in the form of
$25.8 million
in available cash, net of restricted cash, as of
December 31, 2017
and
$370.0 million
available on our LOC, to satisfy our near term obligations. Our LOC has a borrowing capacity of
$400.0 million
with the option to increase the borrowing capacity by
$200.0 million
, subject to certain conditions (see Note 8 to the Consolidated Financial Statements).
We expect to meet our short-term liquidity requirements, including distributions for the next twelve months, generally through available cash as well as net cash provided by operating activities and availability under our existing LOC. We consider these resources to be adequate to meet our operating requirements for capital improvements, amortizing debt and payment of dividends and distributions.
We expect to meet certain long-term liquidity requirements, such as scheduled debt maturities, property acquisitions and capital improvements by use of our current cash balance, long-term collateralized and uncollateralized borrowings including borrowings under the existing LOC and the issuance of debt securities or additional equity securities (including pursuant to our ATM equity offering program), in addition to net cash provided by operating activities. We expect to satisfy our
2018
maturities with existing cash, anticipated operating cash flow and/or refinancing proceeds.
During the year ended December 31, 2017, we entered into a Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) by and among us, Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”) and other lenders named therein, which amends and restates the terms of the obligations owed by us under the Amended, Restated and Consolidated Credit Agreement dated as of July 17, 2014 pursuant to which we have access to a
$400 million
unsecured line of credit (the “LOC”) and a
$200 million
senior unsecured term loan (the “Term Loan”). The LOC maturity date was extended to October 27, 2021, and this term can be extended an additional year in two six month increments, subject to certain conditions. In 2017, we incurred commitment and arrangement fees of approximately
$3.7 million
to enter into the LOC and extend the Term Loan.
During the
year ended
December 31, 2017, we closed on
three
loans, each secured by a manufactured home community, with total gross proceeds of
$146.0 million
. They have a stated interest rate of
4.07%
per annum and a maturity of
20
years. Additionally, during the year, we entered into a
$204.4 million
million secured credit facility with Fannie Mae, maturing in
20
years and bearing a
3.97%
fixed interest rate. The loan is secured by
five
manufactured home communities. Also, during the year ended December 31, 2017 we paid off
15
mortgage loans (13 maturing in 2018 and two that would have matured in 2017) of approximately
$230.2 million
including
$2.7 million
of prepayment penalties, with a weighted average interest rate of
5.93%
per annum, secured by
13
manufacturing home properties and
two
RV resorts.
In May 2017, in connection with the Paradise Park Largo manufactured home community acquisition, we assumed approximately $5.9 million of mortgage debt with a stated interest rate of 4.6%, maturing in 2040. The mortgage debt is secured by the manufactured home community.
47
Management's Discussion (continued)
In June 2016, in connection with the Forest Lake Estates manufactured home community acquisition, we assumed approximately $22.6 million of mortgage debt with a stated interest rate of 4.5%, maturing in 2038. The mortgage debt is secured by the manufactured home community.
The table below summarizes cash flow activity for the years ended
December 31, 2017
,
2016
, and
2015
(amounts in thousands).
|
|
For the years ended December 31,
|
|||||||||||
|
|
2017
|
2016
|
2015
|
|||||||||
|
Net cash provided by operating activities
|
$
|
384,490
|
|
$
|
353,348
|
|
$
|
352,882
|
|
|||
|
Net cash used in investing activities
|
(310,949
|
)
|
(218,822
|
)
|
(120,707
|
)
|
||||||
|
Net cash used in financing activities
|
(98,796
|
)
|
(158,444
|
)
|
(225,631
|
)
|
||||||
|
Net (decrease) increase in cash and cash equivalents
|
$
|
(25,255
|
)
|
$
|
(23,918
|
)
|
$
|
6,544
|
|
|||
Operating Activities
Net cash provided by operating activities increased
$31.2 million
to
$384.5 million
for the year ended
December 31, 2017
from
$353.3 million
for the year ended
December 31, 2016
. The overall increase in net cash provided by operating activities was primarily due to an increase in Income from property operations of
$23.8 million
,
long term incentive compensation of
$4.8 million
paid during the year ended December 31, 2016 and the net settlement of
$2.4 million
paid during the year ended December 31, 2016 related to the resolution of the California lawsuits.
Net cash provided by operating activities increased $0.4 million to $353.3 million for the year ended December 31, 2016 from $352.9 million for the year ended December 31, 2015. The overall increase in net cash provided by operating activities was primarily due to an increase in Income from property operations of $27.6 million and an increase of $4.7 million in Accrued expenses and accounts payable, offset by a decrease in Escrow deposits, goodwill and other assets of $20.4 million and a decrease of $4.4 million in Rents received in advance and security deposits.
Investing Activities
Net cash used in investing activities increased $92.1 million to
$310.9 million
for the year ended
December 31, 2017
from
$218.8 million
for the year ended
December 31, 2016
. The increase in net cash used in investing activities was primarily due to higher spending on real estate acquisitions and investments in joint ventures during the year ended December 31, 2017 and the issuance of a short term loan of
$13.8 million
to one of our joint ventures.
Net cash used in investing activities was
$218.8 million
for the year ended
December 31, 2016
compared to $120.7 million for the year ended December 31, 2015. The increase in net cash used in investing activities was primarily due to higher spending on real estate acquisitions and an increase in capital improvements.
Capital improvements
The table below summarizes capital improvements activity for the years ended
December 31, 2017
,
2016
, and
2015
(amounts in thousands).
|
|
For the years ended December 31,
(1)
|
|||||||||||
|
|
2017
|
2016
|
2015
|
|||||||||
|
Recurring Capital Expenditures
(2)
|
$
|
39,833
|
|
$
|
37,709
|
|
$
|
36,780
|
|
|||
|
Property upgrades and site development
(3)
|
34,690
|
|
19,244
|
|
13,677
|
|
||||||
|
New home investments
(4) (5)
|
45,640
|
|
56,651
|
|
35,420
|
|
||||||
|
Used home investments
(5)
|
4,298
|
|
4,961
|
|
7,010
|
|
||||||
|
Total Property
|
124,461
|
|
118,565
|
|
92,887
|
|
||||||
|
Corporate
|
1,589
|
|
872
|
|
912
|
|
||||||
|
Total Capital improvements
|
$
|
126,050
|
|
$
|
119,437
|
|
$
|
93,799
|
|
|||
__________________________________________________
|
(1)
|
Excludes non-cash activity of approximately
$0.4 million
,
$0.7 million
and
$0.9 million
of used homes acquired by repossessions of Chattel Loans collateral for the years ended
December 31, 2017
,
2016
and
2015
, respectively.
|
|
(2)
|
Recurring capital expenditures are primarily comprised of common area improvements, furniture, and mechanical improvements.
|
|
(3)
|
Includes
$4.7 million
of restoration and improvement capital expenditures related to Hurricane Irma for the year ended
December 31, 2017
.
|
|
(4)
|
Excludes new home investments associated with our ECHO JV.
|
|
(5)
|
Net proceeds from new and used home sale activities are reflected within Operating Activities.
|
48
Management's Discussion (continued)
Financing Activities
Net cash used in financing activities decreased $59.6 million to
$98.8 million
for the year ended
December 31, 2017
from
$158.4 million
for the year ended
December 31, 2016
. The decrease in net cash used in financing activities was primarily due to an increase in net debt proceeds of approximately
$153.3 million
during the year ended December 31, 2017 and an increase in the proceeds from the sale of common stock under our ATM equity program of approximately
$70.7 million
, partially offset by redemption of our Series C Preferred Stock of
$136.3 million
during the year ended December 31, 2017 and an increase in distributions to our common stockholders of
$23.7 million
.
Net cash used in financing activities was $158.4 million for the year ended December 31, 2016 compared to net cash used in financing activities of $225.6 million for the year ended December 31, 2015. The decrease in net cash used in financing activities was primarily due to gross proceeds of $50.0 million received from the sale of common stock under our ATM equity offering program and an increase of approximately $7.7 million in proceeds from stock options and the employee stock purchase plan.
Contractual Obligations
As of
December 31, 2017
, we were subject to certain contractual payment obligations as described in the table below (amounts in thousands):
|
|
||||||||||||||||||||||||||||
|
Total
(5)
|
2018
|
2019
|
2020
|
2021
|
2022
|
Thereafter
|
||||||||||||||||||||||
|
Long Term Borrowings
(1)
|
$
|
2,220,493
|
|
$
|
47,300
|
|
$
|
241,158
|
|
$
|
158,547
|
|
$
|
248,414
|
|
$
|
168,625
|
|
$
|
1,356,449
|
|
|||||||
|
Interest Expense
(2)
|
794,056
|
|
97,872
|
|
88,068
|
|
77,470
|
|
69,248
|
|
58,826
|
|
402,572
|
|
||||||||||||||
|
Operating Lease
|
8,354
|
|
2,221
|
|
2,062
|
|
2,011
|
|
1,711
|
|
200
|
|
149
|
|
||||||||||||||
|
LOC Maintenance Fee
(3)
|
2,326
|
|
608
|
|
608
|
|
612
|
|
498
|
|
—
|
|
—
|
|
||||||||||||||
|
Ground Lease
(4)
|
15,655
|
|
2,022
|
|
2,028
|
|
2,030
|
|
2,033
|
|
1,533
|
|
6,009
|
|
||||||||||||||
|
Total Contractual Obligations
|
$
|
3,040,884
|
|
$
|
150,023
|
|
|
$
|
333,924
|
|
$
|
240,670
|
|
$
|
321,904
|
|
$
|
229,184
|
|
$
|
1,765,179
|
|
||||||
|
Weighted average interest rates - Long Term Borrowings
|
4.24
|
%
|
4.52
|
%
|
4.41
|
%
|
4.26
|
%
|
4.17
|
%
|
4.07
|
%
|
4.17
|
%
|
||||||||||||||
_____________________
|
(1)
|
Balance excludes note premiums of
$3.3 million
and unamortized deferred financing costs of
$23.7 million
. Balances include debt maturing and scheduled periodic payments as well as our LOC balance of $30.0 million outstanding as of
December 31, 2017
.
|
|
(2)
|
Amounts include interest expected to be incurred on our secured debt based on obligations outstanding as of
December 31, 2017
.
|
|
(3)
|
As of
December 31, 2017
, assumes we will not exercise our one year extension option on
October 27, 2021
and assumes we will maintain our current leverage ratios as defined by the LOC.
|
|
(4)
|
We also lease land under non-cancelable operating leases at certain of the Properties expiring in various years from
2018
to
2054
. The majority of the lease terms require twelve equal payments per year plus additional rents calculated as a percentage of gross revenues.
|
|
(5)
|
We do not include insurance, property taxes and cancelable contracts in the contractual obligations table.
|
We believe that we will be able to refinance our maturing debt obligations on a secured or unsecured basis; however, to the extent we are unable to refinance our debt as it matures, we believe that we will be able to repay such maturing debt through available cash as well as operating cash flow, asset sales and/or the proceeds from equity issuances. With respect to any refinancing of maturing debt, our future cash flow requirements could be impacted by significant changes in interest rates or other debt terms, including required amortization payments. As of
December 31, 2017
, approximately
29.9%
of our outstanding secured debt is fully amortizing.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in accordance with U.S. GAAP, which requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures.
Impairment of Long-Lived Assets and unconsolidated joint ventures
We review our Properties for impairment whenever events or changes in circumstances indicate that the carrying value of the Property may not be recoverable. Real estate investments are subject to varying degrees of risk. Several factors may adversely affect the economic performance and value of our real estate investments. These factors include:
•
general economic climate;
•
competition from other housing options;
•
local conditions, such as an increase in unemployment;
•
changes in governmental regulations and the related cost of compliance;
•
changes in market rental rates; and
49
Management's Discussion (continued)
•
physical damage or environmental indicators.
Any adverse changes in these factors could cause an impairment in our assets, including real estate and investments in unconsolidated joint venture partnerships.
Revenue Recognition and Allowance for Doubtful Accounts
Our revenue streams are predominantly derived from customers renting our Sites or entering right-to-use contracts. Our MH community Sites and annual RV resort Sites are leased on an annual basis. Seasonal Sites are leased to customers generally for one to six months. Transient Sites are leased to customers on a short-term basis. Leases with the Company's customers are accounted for as operating leases. Rental income is recognized over the term of the respective lease or the length of a customer's stay.
A right-to-use contract gives the customer the right to a set schedule of usage at a specified group of Properties. Payments are deferred and recognized ratably over the
one year
period in which access to Sites at certain Properties are provided. Right-to-use upgrade contracts, which require upfront non-refundable payments, supplement the right-to-use contract and grant certain additional access rights to the customer. Under current accounting standards, right-to-use upfront non-refundable payments are recognized based on estimated attrition rates of up to 40 years. On January 1, 2018, the Company will adopt ("ASU 2014-09")
Revenue from Contracts with Customers.
Under this guidance, right-to-use upfront non-refundable payments will be recognized on a straight-line basis over 20 years to reflect our current estimated customer life for the majority of our upgrade contracts. See Note 2 to the Consolidated Financial Statements for additional information on ASU 2014-09.
Income from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred.
We evaluate all amounts receivable from customers and an allowance is established based on our assessment of collectibility for amounts greater than 30 days past due. Our allowance for uncollectible rents receivable was approximately
$4.7 million
and
$4.4 million
as of
December 31, 2017
and
2016
, respectively. We will continue to monitor and assess these receivables and changes in required allowances may occur in the future due to changes in the market environment.
Business Combinations
We follow Codification Topic "Business Combination" ("ASC 805") to account for asset or business acquisitions. Historically, our acquisitions typically met the definition of a business. In a business acquisition, transaction costs are expensed and the initial purchase price allocation can be remeasured for a period of one year. Our method for allocating the purchase price to acquired investments in real estate requires us to make subjective assessments for determining fair value of the assets acquired and liabilities assumed. This includes determining the value of the buildings, land and improvements, construction in progress, ground leases, in-place leases, above and/or below market leases, purchase option intangible assets and/or liabilities, and any debt assumed. We determine and allocate the purchase price of an acquired company to the tangible and intangible assets acquired and liabilities assumed as of the business combination date. The purchase price allocation process requires us to use significant estimates and assumptions, including fair value estimates, as of the business combination date. We utilize third-party valuation companies to help us determine certain fair value estimates used for assets and liabilities.
While we use our best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, our estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the business combination date, we may record adjustments to the assets acquired and liabilities assumed.
In January 2017, the FASB issued ("ASU 2017-01")
Business Combinations (Topic 805): Clarifying the Definition of a Business
. ASU 2017-01 clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not considered a business and, thus, is accounted for as asset acquisitions, as opposed to a business combination. We expect the clarification of the definition of a business will result in future acquisitions to be accounted for as asset acquisitions, as opposed to business combinations. For asset acquisitions, acquisition costs will be capitalized and the purchase price will be allocated on a relative fair value basis. We will adopt this guidance during the first quarter of 2018. See Note 2 to the Consolidated Financial Statements for additional information on ASU 2017-01.
50
Management's Discussion (continued)
Off Balance Sheet Arrangements
As of December 31, 2017, we do not have any off balance sheet arrangements with any unconsolidated investments or joint ventures that we believe have or are reasonably likely to have a material effect on our financial condition, results of operations, liquidity or capital resources.
Inflation
Substantially all of the leases at the Properties allow for monthly or annual rent increases which provide us with the opportunity to achieve increases, where justified by the market. Such types of leases generally minimize our risks of inflation. In addition, our resort Properties are not generally subject to leases and rents are established for these Sites on an annual basis. Our right-to-use contracts generally provide for an annual dues increase, but dues may be frozen under the terms of certain contracts if the customer is over 61 years old. Currently, 21.6% of our dues are frozen.
Market risk is the risk of loss from adverse changes in market prices and interest rates. Our earnings, cash flows and fair values relevant to financial instruments are dependent on prevailing market interest rates. The primary market risk we face related to our long-term indebtedness is the ability to refinance maturing mortgages. The fair value of our long-term debt obligations is affected by changes in market interest rates with scheduled maturities from
2018
to
2041
. At
December 31, 2017
, approximately 100.0% or approximately
$2.0 billion
of our outstanding secured debt had fixed interest rates with scheduled maturities from
2018
to
2041
, which minimizes the market risk until the debt matures. In addition, approximately
29.9%
of our outstanding secured debt is fully amortizing further reducing the market risk. For each increase in interest rates of 1.0% (or 100 basis points), the fair value of the total outstanding debt would decrease by approximately
$240.1 million
. For each decrease in interest rates of 1.0% (or 100 basis points), the fair value of the total outstanding debt would increase by approximately
$273.7 million
. If interest rates were to increase or decrease by 1.0%, there would be no effect on interest expense or cash flows as our outstanding secured debt has fixed interest rates.
As of
December 31, 2017
,
$3.0 million
of our outstanding secured debt was short-term, with no related note premiums. Our
$200.0 million
unsecured Term Loan has variable rates based on LIBOR plus
1.20%
to
1.90%
per annum. However, the 2017 Swap fixes the underlying LIBOR rate at 1.85% per annum for the first three years (see Note 8 to the Consolidated Financial Statements for definitions of Term Loan and 2017 Swap).
51
FORWARD-LOOKING STATEMENTS
This report 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 our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
|
•
|
our ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of Sites by customers and our success in acquiring new customers at our Properties (including those that we may acquire);
|
|
•
|
our ability to maintain historical or increase future rental rates and occupancy with respect to Properties currently owned or that we may acquire;
|
|
•
|
our ability to retain and attract customers renewing, upgrading and entering right-to-use contracts;
|
|
•
|
our assumptions about rental and home sales markets;
|
|
•
|
our ability to manage counter-party risk;
|
|
•
|
our ability to renew our insurance policies at existing rates and on consistent terms;
|
|
•
|
in the age-qualified Properties, home sales results could be impacted by the ability of potential home buyers 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;
|
|
•
|
effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions;
|
|
•
|
the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto;
|
|
•
|
unanticipated costs or unforeseen liabilities associated with recent acquisitions;
|
|
•
|
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"
;
|
|
•
|
the outcome of pending or future lawsuits or actions brought against us, including those disclosed in our filings with the Securities and Exchange Commission; and
|
|
•
|
other risks indicated from time to time in our filings with the Securities and Exchange Commission.
|
These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
52
Item 8.
Financial Statements and Supplementary Data
See Index to Consolidated Financial Statements on page F-1 of this Form 10-K.
None.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial and accounting officer), maintains a system of disclosure controls and procedures, designed to provide reasonable assurance that information we are required to disclose in the reports that we file under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that we will detect or uncover failures to disclose material information otherwise required to be set forth in our periodic reports.
Our management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of
December 31, 2017
. Based on that evaluation as of the end of the period covered by this annual report, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and our disclosure of information that would potentially be subject to disclosure under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder as of
December 31, 2017
.
Changes in Internal Control Over Financial Reporting
There were no material changes in our internal control over financial reporting during the year ended
December 31, 2017
.
Report of Management on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on management's assessment, we maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2017
. In making this assessment, management used the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in
"Internal Control-Integrated Framework"
(2013 framework).
The effectiveness of our internal control over financial reporting as of
December 31, 2017
has been audited by our independent registered public accounting firm, as stated in their report on Page F-3.
None.
53
Items 10 and 11. Directors, Executive Officers and Corporate Governance, and Executive Compensation
The information required by Items 10 and 11 will be contained in the Proxy Statement on Schedule 14A for the
2018
Annual Meeting and is therefore incorporated by reference, and thus Items 10 and 11 have been omitted in accordance with General Instruction G(3) to Form 10-K.
The information regarding securities authorized for issuance under equity compensation plans required by Item 12 are as follows:
|
Plan Category
|
Number of securities to
be Issued upon Exercise
of Outstanding Options,
Warrants and Rights
(a)
|
Weighted-average Exercise Price of Outstanding Options, Warrants and Rights
|
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a))
|
|||||
|
Equity compensation plans approved by security holders
(1)
|
205,600
|
|
18.85
|
|
—
|
|
||
|
Equity compensation plans approved by security holders
(2)
|
14,480
|
|
10.84
|
|
3,126,698
|
|
||
|
Equity compensation plans not approved by security holders
(3)
|
N/A
|
|
N/A
|
|
438,588
|
|
||
|
Total
|
220,080
|
|
18.32
|
|
3,565,286
|
|
||
_________________________________
|
(1)
|
Represents shares of common stock under our Stock Option and Award Plan adopted in December 1992, prior to its expiration.
|
|
(2)
|
Represents shares of common stock under our Equity Incentive Plan effective May 13, 2014 (the "2014 Plan").
|
|
(3)
|
Represents shares of common stock under our Employee Stock Purchase Plan effective July 1997, as amended and restated in May 2016. Under the Employee Stock Purchase Plan, eligible employees may make contributions which are used to purchase shares of common stock at a purchase price equal to 85% of the lesser of the closing price of a share of common stock on the first or last trading day of the purchase period. Purchases of common stock under the Employee Stock Purchase Plan are made on the first business day of the next month after the close of the purchase period. Under New York Stock Exchange rules then in effect, stockholder approval was not required for the Employee Stock Purchase Plan because it is a broad-based plan available generally to all employees.
|
The information required by Item 403 of Regulation S-K "Security Ownership of Certain Beneficial Owners and Management" required by Item 12 will be contained in the Proxy Statement on Schedule 14A for the 2018 Annual Meeting and is therefore incorporated by reference, and thus has been omitted in accordance with General Instruction G(3) to Form 10-K.
Items 13 and 14. Certain Relationships and Related Transactions, and Director Independence, and Principal Accounting Fees and Services
The information required by Item 13 and Item 14 will be contained in the Proxy Statement on Schedule 14A for the
2018
Annual Meeting and is therefore incorporated by reference, and thus Item 13 and 14 has been omitted in accordance with General Instruction G(3) to Form 10-K.
54
|
1.
|
Financial Statements
|
See Index to Financial Statements and Schedule on page F-1 of this Form 10-K.
|
2.
|
Financial Statement Schedule
|
See Index to Financial Statements and Schedule on page F-1 of this Form 10-K.
|
3.
|
Exhibits:
|
In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
|
•
|
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
|
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about us may be found elsewhere in this Annual Report on Form 10-K and our other public filings, which are available without charge through the SEC's website at
http://www.sec.gov
.
|
3.1
(a)
|
|
|
3.2
(b)
|
|
|
3.3
(c)
|
|
|
3.4
(d)
|
|
|
4.1
(e)
|
|
|
10.1
(f)
|
|
|
10.2
(g)
|
|
|
10.3
(h)
|
|
|
10.4
(i)
|
|
|
10.5
(j)
|
|
|
10.6
(k)
|
|
|
10.8
(l)
|
|
|
10.10
(l)
|
|
55
|
10.11
(m)
|
|
|
10.12
(m)
|
|
|
10.13
(m)
|
|
|
10.14
(m)
|
|
|
10.15
(m)
|
|
|
10.16
(n)
|
|
|
10.17
(n)
|
|
|
12
(o)
|
|
|
14
(o)
|
|
|
21
(o)
|
|
|
23
(o)
|
|
|
24.1
(o)
|
|
|
24.2
(o)
|
|
|
24.3
(o)
|
|
|
24.4
(o)
|
|
|
24.5
(o)
|
|
|
24.6
(o)
|
|
|
24.7
(o)
|
|
|
24.8
(o)
|
|
|
24.9
(o)
|
|
|
31.1
(o)
|
|
|
31.2
(o)
|
|
|
32.1
(o)
|
|
|
32.2
(o)
|
|
|
101
(o)
|
The following materials from Equity LifeStyle Properties, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Comprehensive Income, (iii) the Consolidated Statements of Changes in Equity, (iv) the Consolidated Statements of Cash Flow, and (iv) the Notes to Consolidated Financial Statements.
|
The following documents are incorporated herein by reference.
|
(a)
|
Included as an exhibit to our Report on Form 8-K dated May 22, 2007
|
|
(b)
|
Included as an exhibit to our Report on Form 8-K dated November 26, 2013
|
|
(c)
|
Included as an exhibit to our Report on Form 8-K dated August 10, 2007
|
|
(d)
|
Included as an exhibit to our Report on Form 8-K dated February 27, 2018
|
|
(e)
|
Included as an exhibit to our Report on Form S-3 Registration Statement dated May 6, 2009, file No. 333-159014
|
|
(f)
|
Included as an exhibit to our Report on Form 10-Q for the quarter ended June 30, 1996
|
|
(g)
|
Included as an exhibit to our Report on Form 10-K for the year ended December 31, 2005
|
|
(h)
|
Included as an exhibit to our Report on Form 8-K dated January 2, 2014
|
56
|
(i)
|
Included as Appendix B to our Definitive Proxy Statement dated March 24, 2014, relating to Annual Meeting of Stockholders held on May 13, 2014
|
|
(j)
|
Included as an exhibit to our Report on Form 10-Q for the quarter ended June 30, 2016
|
|
(k)
|
Included as an exhibit to our Report on Form 10-K for the year ended December 31, 2006
|
|
(l)
|
Included as an exhibit to our Report on Form 10-Q for the quarter ended September 30, 2017
|
|
(m)
|
Form of Agreement included as an exhibit to our Report on Form 8-K dated November 2, 2017
|
|
(n)
|
Included as an exhibit to our Report on Form 8-K dated May 13, 2014
|
|
(o)
|
Filed herewith
|
None.
57
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
EQUITY LIFESTYLE PROPERTIES, INC.,
a Maryland corporation
|
||||
|
Date:
|
February 28, 2018
|
By:
|
/s/ M
ARGUERITE
N
ADER
|
|
|
Marguerite Nader
|
||||
|
President and Chief Executive Officer
(Principal Executive Officer)
|
||||
|
Date:
|
February 28, 2018
|
By:
|
/s/ P
AUL
S
EAVEY
|
|
|
Paul Seavey
|
||||
|
Executive Vice President, Chief Financial
Officer and Treasurer
|
||||
|
(Principal Financial and Accounting Officer)
|
||||
58
Equity LifeStyle Properties, Inc.—Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
|
Name
|
|
Title
|
|
Date
|
|
/s/ M
ARGUERITE
N
ADER
|
|
President and Chief Executive Officer (Principal Executive Officer) *Attorney in Fact
|
|
February 28, 2018
|
|
Marguerite Nader
|
||||
|
/s/ P
AUL
S
EAVEY
|
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) *Attorney in Fact
|
|
February 28, 2018
|
|
Paul Seavey
|
||||
|
*S
AMUEL
Z
ELL
|
|
Chairman of the Board
|
|
February 28, 2018
|
|
Samuel Zell
|
||||
|
*H
OWARD
W
ALKER
|
|
Co-Vice-Chairman of the Board
|
|
February 28, 2018
|
|
Howard Walker
|
||||
|
*T
HOMAS
H
ENEGHAN
|
|
Co-Vice-Chairman of the Board
|
|
February 28, 2018
|
|
Thomas Heneghan
|
||||
|
*P
HILIP
C
ALIAN
|
|
Director
|
|
February 28, 2018
|
|
Philip Calian
|
||||
|
*D
AVID
C
ONTIS
|
|
Director
|
|
February 28, 2018
|
|
David Contis
|
||||
|
*C
ONSTANCE
F
REEDMAN
|
Director
|
February 28, 2018
|
||
|
Constance Freedman
|
||||
|
* T
AO
H
UANG
|
|
Director
|
|
February 28, 2018
|
|
Tao Huang
|
||||
|
* S
HELI
R
OSENBERG
|
|
Director
|
|
February 28, 2018
|
|
Sheli Rosenberg
|
||||
|
*W
ILLIAM
Y
OUNG
|
Director
|
|
February 28, 2018
|
|
|
William Young
|
||||
59
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
EQUITY LIFESTYLE PROPERTIES, INC.
|
Page
|
||
|
Report of Independent Registered Public Accounting Firm
|
||
|
Report of Independent Registered Public Accounting Firm
|
||
|
Consolidated Balance Sheets as of December 31, 2017 and 2016
|
||
|
Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2017, 2016 and 2015
|
||
|
Consolidated Statements of Changes in Equity for the years ended December 31, 2017, 2016 and 2015
|
||
|
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015
|
||
|
Notes to Consolidated Financial Statements
|
||
|
Schedule III—Real Estate and Accumulated Depreciation
|
||
Note that certain schedules have been omitted, as they are not applicable to us.
F-1
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Equity LifeStyle Properties, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Equity LifeStyle Properties, Inc. (the Company) as of December 31, 2017 and 2016, the related consolidated statements of income and comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2017, and the related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated
February 28, 2018
expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 1996
Chicago, IL
February 28, 2018
F-2
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders of Equity Lifestyle Properties, Inc.
Opinion on Internal Control over Financial Reporting
We have audited Equity Lifestyle Properties, Inc.’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control- Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Equity Lifestyle Properties, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2017 and 2016, the related consolidated statements of income and comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2017, and the related notes and financial statement schedule listed in the Index at Item 15 and our report dated
February 28, 2018
expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Chicago, Illinois
February 28, 2018
F-3
Equity LifeStyle Properties, Inc.
As of
December 31, 2017
and
2016
(amounts in thousands, except share and per share data)
|
December 31,
2017 |
December 31,
2016 |
||||||
|
Assets
|
|||||||
|
Investment in real estate:
|
|||||||
|
Land
|
$
|
1,221,375
|
|
$
|
1,163,987
|
|
|
|
Land improvements
|
3,045,221
|
|
2,893,759
|
|
|||
|
Buildings and other depreciable property
|
649,217
|
|
627,590
|
|
|||
|
4,915,813
|
|
4,685,336
|
|
||||
|
Accumulated depreciation
|
(1,516,694
|
)
|
(1,399,531
|
)
|
|||
|
Net investment in real estate
|
3,399,119
|
|
3,285,805
|
|
|||
|
Cash
|
31,085
|
|
56,340
|
|
|||
|
Notes receivable, net
|
49,477
|
|
34,520
|
|
|||
|
Investment in unconsolidated joint ventures
|
53,080
|
|
19,369
|
|
|||
|
Deferred commission expense
|
31,443
|
|
31,375
|
|
|||
|
Escrow deposits, goodwill and other assets, net
|
45,828
|
|
51,578
|
|
|||
|
Total Assets
|
$
|
3,610,032
|
|
$
|
3,478,987
|
|
|
|
Liabilities and Equity
|
|||||||
|
Liabilities:
|
|||||||
|
Mortgage notes payable
|
$
|
1,971,715
|
|
$
|
1,891,900
|
|
|
|
Term loan
|
198,302
|
|
199,379
|
|
|||
|
Unsecured line of credit
|
30,000
|
|
—
|
|
|||
|
Accrued expenses and accounts payable
|
80,744
|
|
89,864
|
|
|||
|
Deferred revenue—upfront payments from right-to-use contracts
|
85,596
|
|
81,484
|
|
|||
|
Deferred revenue—right-to-use annual payments
|
9,932
|
|
9,817
|
|
|||
|
Accrued interest payable
|
8,387
|
|
8,379
|
|
|||
|
Rents and other customer payments received in advance and security deposits
|
79,267
|
|
76,906
|
|
|||
|
Distributions payable
|
46,047
|
|
39,411
|
|
|||
|
Total Liabilities
|
2,509,990
|
|
2,397,140
|
|
|||
|
Equity:
|
|||||||
|
Stockholders' Equity:
|
|||||||
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of December 31, 2017 and 9,945,539 shares authorized as of December 31, 2016; none issued and outstanding.
|
—
|
|
—
|
|
|||
|
6.75% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value, no shares authorized as of December 31, 2017 and 54,461 shares authorized as of December 31, 2016; none issued and outstanding as of December 31, 2017 and 54,458 shares issued and outstanding as of December 31, 2016.
|
—
|
|
136,144
|
|
|||
|
Common stock, $0.01 par value, 200,000,000 shares authorized as of December 31, 2017 and December 31, 2016; 88,585,160 and 85,529,386 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively
|
883
|
|
854
|
|
|||
|
Paid-in capital
|
1,242,109
|
|
1,103,048
|
|
|||
|
Distributions in excess of accumulated earnings
|
(211,980
|
)
|
(231,276
|
)
|
|||
|
Accumulated other comprehensive income (loss)
|
942
|
|
(227
|
)
|
|||
|
Total Stockholders' Equity
|
1,031,954
|
|
1,008,543
|
|
|||
|
Non-controlling interests – Common OP Units
|
68,088
|
|
73,304
|
|
|||
|
Total Equity
|
1,100,042
|
|
1,081,847
|
|
|||
|
Total Liabilities and Equity
|
$
|
3,610,032
|
|
$
|
3,478,987
|
|
|
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-4
Equity LifeStyle Properties, Inc.
For the Years Ended
December 31, 2017
,
2016
and
2015
(amounts in thousands, except per share data)
|
2017
|
2016
|
2015
|
|||||||||
|
Revenues:
|
|||||||||||
|
Community base rental income
|
$
|
489,613
|
|
$
|
464,745
|
|
$
|
442,046
|
|
||
|
Rental home income
|
14,344
|
|
14,107
|
|
14,012
|
|
|||||
|
Resort base rental income
|
218,806
|
|
201,533
|
|
184,760
|
|
|||||
|
Right-to-use annual payments
|
45,798
|
|
45,035
|
|
44,443
|
|
|||||
|
Right-to-use contracts current period, gross
|
14,132
|
|
12,327
|
|
12,783
|
|
|||||
|
Right-to-use contract upfront payments, deferred, net
|
(4,108
|
)
|
(3,079
|
)
|
(4,231
|
)
|
|||||
|
Utility and other income
|
93,252
|
|
81,427
|
|
76,153
|
|
|||||
|
Gross revenues from home sales
|
36,302
|
|
37,191
|
|
33,150
|
|
|||||
|
Brokered resale revenues and ancillary services revenues, net
|
3,798
|
|
2,994
|
|
4,149
|
|
|||||
|
Interest income
|
7,580
|
|
6,845
|
|
7,030
|
|
|||||
|
Income from other investments, net
|
5,795
|
|
7,310
|
|
7,359
|
|
|||||
|
Total revenues
|
925,312
|
|
870,435
|
|
821,654
|
|
|||||
|
Expenses:
|
|||||||||||
|
Property operating and maintenance
|
294,119
|
|
268,249
|
|
254,668
|
|
|||||
|
Rental home operating and maintenance
|
6,610
|
|
6,883
|
|
7,167
|
|
|||||
|
Real estate taxes
|
55,010
|
|
53,036
|
|
50,962
|
|
|||||
|
Sales and marketing, gross
|
11,438
|
|
11,056
|
|
11,751
|
|
|||||
|
Right-to-use contract commissions, deferred, net
|
(354
|
)
|
(223
|
)
|
(1,556
|
)
|
|||||
|
Property management
|
51,252
|
|
47,083
|
|
44,528
|
|
|||||
|
Depreciation on real estate assets and rental homes
|
121,455
|
|
117,400
|
|
113,609
|
|
|||||
|
Amortization of in-place leases
|
2,231
|
|
3,373
|
|
2,358
|
|
|||||
|
Cost of home sales
|
36,513
|
|
37,456
|
|
32,279
|
|
|||||
|
Home selling expenses
|
4,186
|
|
3,575
|
|
3,191
|
|
|||||
|
General and administrative
|
31,737
|
|
31,004
|
|
30,644
|
|
|||||
|
Other expenses, including property rights initiatives
|
1,148
|
|
4,986
|
|
2,986
|
|
|||||
|
Early debt retirement
|
2,785
|
|
—
|
|
16,913
|
|
|||||
|
Interest and related amortization
|
100,570
|
|
102,030
|
|
105,731
|
|
|||||
|
Total expenses
|
718,700
|
|
685,908
|
|
675,231
|
|
|||||
|
Income before equity in income of unconsolidated joint ventures
|
206,612
|
|
184,527
|
|
146,423
|
|
|||||
|
Equity in income of unconsolidated joint ventures
|
3,765
|
|
2,605
|
|
4,089
|
|
|||||
|
Consolidated net income
|
210,377
|
|
187,132
|
|
150,512
|
|
|||||
|
Income allocated to non-controlling interests – Common OP Units
|
(12,788
|
)
|
(13,869
|
)
|
(11,141
|
)
|
|||||
|
Perpetual preferred stock dividends and original issuance costs
|
(7,685
|
)
|
(9,226
|
)
|
(9,226
|
)
|
|||||
|
Net income available for Common Stockholders
|
$
|
189,904
|
|
$
|
164,037
|
|
$
|
130,145
|
|
||
|
Consolidated net income
|
$
|
210,377
|
|
$
|
187,132
|
|
$
|
150,512
|
|
||
|
Other comprehensive income (loss) ("OCI"):
|
|||||||||||
|
Adjustment for fair market value of swap
|
1,169
|
|
326
|
|
(172
|
)
|
|||||
|
Consolidated comprehensive income
|
211,546
|
|
187,458
|
|
150,340
|
|
|||||
|
Comprehensive income allocated to non-controlling interests – Common OP Units
|
(12,813
|
)
|
(13,893
|
)
|
(11,126
|
)
|
|||||
|
Series C Redeemable Perpetual Preferred Stock Dividends
|
(7,685
|
)
|
(9,226
|
)
|
(9,226
|
)
|
|||||
|
Comprehensive income attributable to Common Stockholders
|
$
|
191,048
|
|
$
|
164,339
|
|
$
|
129,988
|
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-5
Equity LifeStyle Properties, Inc.
Consolidated Statements of Income and Comprehensive Income
For the Years Ended
December 31, 2017
,
2016
and
2015
(amounts in thousands, except per share data)
|
2017
|
2016
|
2015
|
|||||||||
|
Earnings per Common Share – Basic:
|
|||||||||||
|
Net income available for Common Stockholders
|
$
|
2.18
|
|
$
|
1.93
|
|
$
|
1.55
|
|
||
|
Earnings per Common Share – Fully Diluted:
|
|||||||||||
|
Net income available for Common Stockholders
|
$
|
2.17
|
|
$
|
1.92
|
|
$
|
1.54
|
|
||
|
Weighted average Common Shares outstanding – basic
|
86,997
|
|
84,778
|
|
84,031
|
|
|||||
|
Weighted average Common Shares outstanding – fully diluted
|
93,425
|
|
92,569
|
|
91,907
|
|
|||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-6
Equity LifeStyle Properties, Inc.
Consolidated Statements of Changes In Equity
For the Years Ended
December 31, 2017
,
2016
and
2015
(amounts in thousands)
|
Common
Stock
|
Paid-in
Capital
|
6.75% Series C Cumulative
Redeemable
Perpetual
Preferred Stock
|
Distributions
in Excess of
Accumulated
Earnings
|
Non-
controlling
interests –
Common OP
Units
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Equity
|
||||||||||||||||||||||
|
Balance, December 31, 2014
|
$
|
838
|
|
$
|
1,029,601
|
|
$
|
136,144
|
|
$
|
(254,209
|
)
|
$
|
67,034
|
|
$
|
(381
|
)
|
$
|
979,027
|
|
|||||||
|
Conversion of Common OP Units to Common Stock
|
—
|
|
225
|
|
—
|
|
—
|
|
(225
|
)
|
—
|
|
—
|
|
||||||||||||||
|
Issuance of Common Stock through exercise of options
|
2
|
|
3,814
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,816
|
|
||||||||||||||
|
Issuance of Common Stock through employee stock purchase plan
|
—
|
|
1,083
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,083
|
|
||||||||||||||
|
Compensation expenses related to restricted stock
|
—
|
|
8,582
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8,582
|
|
||||||||||||||
|
Repurchase of Common Stock or Common OP Units
|
—
|
|
(3,201
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3,201
|
)
|
||||||||||||||
|
Adjustment for Common OP Unitholders in the Operating Partnership
|
—
|
|
(496
|
)
|
—
|
|
—
|
|
496
|
|
—
|
|
—
|
|
||||||||||||||
|
Adjustment for fair market value of swap
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(172
|
)
|
(172
|
)
|
||||||||||||||
|
Net income
|
—
|
|
—
|
|
9,226
|
|
130,145
|
|
11,141
|
|
—
|
|
150,512
|
|
||||||||||||||
|
Distributions
|
—
|
|
—
|
|
(9,226
|
)
|
(126,416
|
)
|
(10,823
|
)
|
—
|
|
(146,465
|
)
|
||||||||||||||
|
Other
|
3
|
|
(468
|
)
|
—
|
|
(26
|
)
|
—
|
|
—
|
|
(491
|
)
|
||||||||||||||
|
Balance, December 31, 2015
|
$
|
843
|
|
$
|
1,039,140
|
|
$
|
136,144
|
|
$
|
(250,506
|
)
|
$
|
67,623
|
|
$
|
(553
|
)
|
$
|
992,691
|
|
|||||||
|
Conversion of Common OP Units to Common Stock
|
—
|
|
381
|
|
—
|
|
—
|
|
(381
|
)
|
—
|
|
—
|
|
||||||||||||||
|
Issuance of Common Stock through exercise of options
|
4
|
|
11,284
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,288
|
|
||||||||||||||
|
Issuance of Common Stock through employee stock purchase plan
|
—
|
|
1,269
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,269
|
|
||||||||||||||
|
Issuance of Common Stock
|
7
|
|
49,993
|
|
—
|
|
—
|
|
—
|
|
—
|
|
50,000
|
|
||||||||||||||
|
Compensation expenses related to restricted stock
|
—
|
|
9,181
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,181
|
|
||||||||||||||
|
Repurchase of Common Stock or Common OP Units
|
—
|
|
(2,652
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,652
|
)
|
||||||||||||||
|
Adjustment for Common OP Unitholders in the Operating Partnership
|
—
|
|
(4,426
|
)
|
—
|
|
—
|
|
4,426
|
|
—
|
|
—
|
|
||||||||||||||
|
Adjustment for fair market value of swap
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
326
|
|
326
|
|
||||||||||||||
|
Net income
|
—
|
|
—
|
|
9,226
|
|
164,037
|
|
13,869
|
|
—
|
|
187,132
|
|
||||||||||||||
|
Distributions
|
—
|
|
—
|
|
(9,226
|
)
|
(144,807
|
)
|
(12,233
|
)
|
—
|
|
(166,266
|
)
|
||||||||||||||
|
Other
|
—
|
|
(1,122
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,122
|
)
|
||||||||||||||
|
Balance, December 31, 2016
|
$
|
854
|
|
$
|
1,103,048
|
|
$
|
136,144
|
|
$
|
(231,276
|
)
|
$
|
73,304
|
|
$
|
(227
|
)
|
$
|
1,081,847
|
|
|||||||
|
Conversion of Common OP Units to Common Stock
|
13
|
|
16,436
|
|
—
|
|
—
|
|
(16,449
|
)
|
—
|
|
—
|
|
||||||||||||||
|
Issuance of Common Stock through exercise of options
|
2
|
|
4,848
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,850
|
|
||||||||||||||
|
Issuance of Common Stock through employee stock purchase plan
|
—
|
|
2,061
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,061
|
|
||||||||||||||
|
Issuance of Common Stock
|
14
|
|
120,684
|
|
—
|
|
—
|
|
—
|
|
—
|
|
120,698
|
|
||||||||||||||
|
Compensation expenses related to stock options and restricted stock
|
—
|
|
9,352
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,352
|
|
||||||||||||||
|
Repurchase of Common Stock or Common OP Units
|
—
|
|
(3,087
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3,087
|
)
|
||||||||||||||
|
Adjustment for Common OP Unitholders in the Operating Partnership
|
—
|
|
(10,043
|
)
|
—
|
|
—
|
|
10,043
|
|
—
|
|
—
|
|
||||||||||||||
|
Adjustment for fair market value of swap
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,169
|
|
1,169
|
|
||||||||||||||
|
Net income
|
—
|
|
—
|
|
7,685
|
|
189,904
|
|
12,788
|
|
—
|
|
210,377
|
|
||||||||||||||
|
Distributions
|
—
|
|
—
|
|
(6,928
|
)
|
(170,608
|
)
|
(11,428
|
)
|
—
|
|
(188,964
|
)
|
||||||||||||||
|
Series C Preferred stock redemption
|
—
|
|
—
|
|
—
|
|
(136,144
|
)
|
—
|
|
—
|
|
—
|
|
(136,144
|
)
|
||||||||||||
|
Series C Preferred stock original issuance costs
|
—
|
|
757
|
|
(757
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||
|
Other
|
—
|
|
(1,947
|
)
|
—
|
|
—
|
|
(170
|
)
|
—
|
|
(2,117
|
)
|
||||||||||||||
|
Balance, December 31, 2017
|
$
|
883
|
|
$
|
1,242,109
|
|
$
|
—
|
|
$
|
(211,980
|
)
|
$
|
68,088
|
|
$
|
942
|
|
$
|
1,100,042
|
|
|||||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-7
Equity LifeStyle Properties, Inc.
For the Years Ended
December 31, 2017
,
2016
and
2015
(amounts in thousands)
|
2017
|
2016
|
2015
|
|||||||||
|
Cash Flows From Operating Activities:
|
|||||||||||
|
Consolidated net income
|
$
|
210,377
|
|
$
|
187,132
|
|
$
|
150,512
|
|
||
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
|
|||||||||||
|
Early debt retirement
|
2,785
|
|
—
|
|
16,913
|
|
|||||
|
Depreciation
|
122,720
|
|
118,521
|
|
114,698
|
|
|||||
|
Amortization of in-place leases
|
2,231
|
|
3,373
|
|
2,358
|
|
|||||
|
Amortization of loan costs
|
3,546
|
|
3,878
|
|
4,216
|
|
|||||
|
Debt premium amortization
|
(2,211
|
)
|
(3,382
|
)
|
(3,869
|
)
|
|||||
|
Equity in income of unconsolidated joint ventures
|
(3,765
|
)
|
(2,605
|
)
|
(4,089
|
)
|
|||||
|
Distributions of income from unconsolidated joint ventures
|
3,792
|
|
1,793
|
|
3,584
|
|
|||||
|
Stock-based compensation
|
9,352
|
|
9,181
|
|
8,582
|
|
|||||
|
Revenue recognized from right-to-use contract upfront payments
|
(10,020
|
)
|
(9,248
|
)
|
(8,552
|
)
|
|||||
|
Commission expense recognized related to right-to-use contracts
|
4,509
|
|
4,149
|
|
3,595
|
|
|||||
|
Long term incentive plan compensation
|
1,347
|
|
(2,929
|
)
|
973
|
|
|||||
|
(Recovery) provision for uncollectible rents receivable
|
(333
|
)
|
(744
|
)
|
537
|
|
|||||
|
Changes in assets and liabilities:
|
|||||||||||
|
Notes receivable activity, net
|
(331
|
)
|
318
|
|
66
|
|
|||||
|
Deferred commission expense
|
(4,577
|
)
|
(4,659
|
)
|
(5,871
|
)
|
|||||
|
Escrow deposits, goodwill and other assets
|
45,401
|
|
23,706
|
|
44,095
|
|
|||||
|
Accrued expenses and accounts payable
|
(16,934
|
)
|
10,322
|
|
5,632
|
|
|||||
|
Deferred revenue – upfront payments from right-to-use contracts
|
14,132
|
|
12,327
|
|
12,783
|
|
|||||
|
Deferred revenue – right-to-use annual payments
|
115
|
|
(61
|
)
|
88
|
|
|||||
|
Rents received in advance and security deposits
|
2,354
|
|
2,276
|
|
6,631
|
|
|||||
|
Net cash provided by operating activities
|
384,490
|
|
353,348
|
|
352,882
|
|
|||||
|
Cash Flows From Investing Activities:
|
|||||||||||
|
Real estate acquisition
|
(136,552
|
)
|
(98,244
|
)
|
(23,687
|
)
|
|||||
|
Investment in unconsolidated joint ventures
|
(33,345
|
)
|
(5,134
|
)
|
(4,000
|
)
|
|||||
|
Distributions of capital from unconsolidated joint ventures
|
—
|
|
4,094
|
|
80
|
|
|||||
|
Repayments of notes receivable
|
10,272
|
|
10,184
|
|
10,490
|
|
|||||
|
Issuance of notes receivable
|
(25,274
|
)
|
(10,285
|
)
|
(9,791
|
)
|
|||||
|
Capital improvements
|
(126,050
|
)
|
(119,437
|
)
|
(93,799
|
)
|
|||||
|
Net cash used in investing activities
|
(310,949
|
)
|
(218,822
|
)
|
(120,707
|
)
|
|||||
|
Cash Flows From Financing Activities:
|
|||||||||||
|
Proceeds from stock options and employee stock purchase plan
|
6,911
|
|
12,557
|
|
4,899
|
|
|||||
|
Gross proceeds from sale of Common Stock
|
120,698
|
|
50,000
|
|
—
|
|
|||||
|
Distributions:
|
|||||||||||
|
Common Stockholders
|
(163,770
|
)
|
(140,057
|
)
|
(122,077
|
)
|
|||||
|
Common OP Unitholders
|
(11,631
|
)
|
(11,888
|
)
|
(10,470
|
)
|
|||||
|
Preferred Stockholders
|
(6,928
|
)
|
(9,226
|
)
|
(9,226
|
)
|
|||||
|
Stock repurchase and Unit redemption
|
—
|
|
(229
|
)
|
(62
|
)
|
|||||
|
Share based award tax withholding payments
|
(3,087
|
)
|
(2,423
|
)
|
(3,139
|
)
|
|||||
|
Principal payments and mortgage debt payoff
|
(270,530
|
)
|
(142,731
|
)
|
(456,308
|
)
|
|||||
|
Mortgage notes payable financing proceeds
|
350,369
|
|
88,050
|
|
395,323
|
|
|||||
|
Line of Credit payoff
|
(101,000
|
)
|
—
|
|
—
|
|
|||||
|
Line of Credit proceeds
|
131,000
|
|
—
|
|
—
|
|
|||||
|
Debt issuance and defeasance costs
|
(12,567
|
)
|
(1,375
|
)
|
(24,080
|
)
|
|||||
|
Redemption of preferred stock
|
(136,314
|
)
|
—
|
|
—
|
|
|||||
|
Other, primarily ATM offering costs
|
(1,947
|
)
|
(1,122
|
)
|
(491
|
)
|
|||||
|
Net cash used in financing activities
|
(98,796
|
)
|
(158,444
|
)
|
(225,631
|
)
|
|||||
|
Net (decrease) increase in cash and cash equivalents
|
(25,255
|
)
|
(23,918
|
)
|
6,544
|
|
|||||
|
Cash, beginning of year
|
56,340
|
|
80,258
|
|
73,714
|
|
|||||
|
Cash, end of year
|
$
|
31,085
|
|
$
|
56,340
|
|
$
|
80,258
|
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-8
Equity LifeStyle Properties, Inc.
Consolidated Statements of Cash Flows
For the Years Ended
December 31, 2017
,
2016
and
2015
(amounts in thousands)
|
2017
|
2016
|
2015
|
|||||||||
|
Supplemental information:
|
|||||||||||
|
Cash paid during the period for interest
|
$
|
102,570
|
|
$
|
105,556
|
|
$
|
106,423
|
|
||
|
Capital improvements – used homes acquired by repossessions
|
$
|
376
|
|
$
|
726
|
|
$
|
909
|
|
||
|
Net reduction of notes receivable – used homes acquired by repossessions
|
$
|
(376
|
)
|
$
|
(726
|
)
|
$
|
(909
|
)
|
||
|
Building and other depreciable property – reclassification of rental homes
|
$
|
38,350
|
|
$
|
34,707
|
|
$
|
28,790
|
|
||
|
Escrow deposits and other assets – reclassification of rental homes
|
$
|
(38,350
|
)
|
$
|
(34,707
|
)
|
$
|
(28,790
|
)
|
||
|
Real estate acquisitions:
|
|||||||||||
|
Investment in real estate, fair value
|
$
|
(142,374
|
)
|
$
|
(120,448
|
)
|
$
|
(23,900
|
)
|
||
|
Investment in real estate, cost
|
(110
|
)
|
(2,000
|
)
|
—
|
|
|||||
|
Escrow deposits and other assets
|
—
|
|
(20
|
)
|
(53
|
)
|
|||||
|
Debt assumed and financed on acquisition
|
5,900
|
|
22,010
|
|
—
|
|
|||||
|
Accrued expenses and accounts payable
|
32
|
|
1,883
|
|
62
|
|
|||||
|
Rents and other customer payments received in advance and security deposits
|
—
|
|
331
|
|
204
|
|
|||||
|
Real estate acquisitions, net
|
$
|
(136,552
|
)
|
$
|
(98,244
|
)
|
$
|
(23,687
|
)
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
F-9
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Equity LifeStyle Properties, Inc. ("ELS"), a Maryland corporation, together with MHC Operating Limited Partnership (the "Operating Partnership") and its other consolidated subsidiaries (the "Subsidiaries"), are referred to herein as "we," "us," "the Company," and "our." We are a fully integrated owner and operator of lifestyle-oriented properties ("Properties") consisting primarily of manufactured ("MH") communities and recreational vehicle ("RV") resorts and campgrounds. We provide our customers the opportunity to place factory built homes, cottages, cabins or RVs either permanently or on a long-term or short-term basis. Our customers may lease individual developed areas ("Sites") or enter right-to-use contracts, which provide them access to specific Properties for limited stays. Our Properties are designed and improved for home options of various sizes and designs that are produced off-site by third party manufacturers, installed and set on designated Sites ("Site Set") within the Properties.
We believe that we have qualified for taxation as a real estate investment trust ("REIT") for U.S. federal income tax purposes since our taxable year ended December 31, 1993. We plan to continue to meet the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. For example, to qualify as a REIT, at least
95%
of our gross income must come from sources that are itemized in the REIT tax laws. We must meet a number of organizational requirements, including a requirement to distribute to stockholders at least
90%
of our REIT taxable income computed without regard to our deduction for dividends paid and our net capital gain.
If we fail to qualify as a REIT, we could be subject to U.S. federal income tax at regular corporate rates. Also, unless the IRS granted us relief under certain statutory provisions, we would remain disqualified as a REIT for four years following the year we first failed to qualify. Even if we qualify for taxation as a REIT, we are subject to certain foreign, state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income.
Our Properties are owned primarily by the Operating Partnership and managed internally by wholly-owned affiliates of the Operating Partnership. We contributed the proceeds from our initial public offering and subsequent offerings to the Operating Partnership for units of common interests in the partnership ("OP Units"), and we currently hold a number of OP Units equal to the number of our outstanding common shares. In addition, we are the general partner of the Operating Partnership. The financial results of the Operating Partnership and the Subsidiaries are consolidated in our consolidated financial statements. In addition, since certain activities, if performed by us, may cause us to earn income which is not qualifying for the REIT gross income tests, we have formed taxable REIT Subsidiaries, as defined in the Internal Revenue Code of 1986, as amended (the "Code"), to engage in such activities.
Several Properties are wholly-owned by Realty Systems, Inc. ("RSI"), one of our taxable REIT Subsidiaries. In addition, RSI is engaged in the business of purchasing and selling or leasing Site Set homes that are located in Properties we own and manage. RSI also provides brokerage services to residents at such Properties for those residents who move from a Property but do not relocate their homes. RSI may provide brokerage services, in competition with other local brokers, by seeking buyers for the Site Set homes. RSI also operates ancillary activities at certain Properties consisting of operations such as golf courses, pro shops, stores and restaurants.
The limited partners of the Operating Partnership (the "Common OP Unitholders") receive an allocation of net income that is based on their respective ownership percentage in the Operating Partnership that is shown on the Consolidated Financial Statements as Non-controlling interests—Common OP Units. As of
December 31, 2017
, the Non-Controlling Interests—Common OP Units represented
5,834,100
OP Units which are convertible into an equivalent number of shares of our common stock. The issuance of additional shares of common stock or Common OP Units changes the respective ownership of the Operating Partnership for the Non-controlling interests—Common OP Units.
F-10
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
We follow accounting standards set by the Financial Accounting Standards Board, commonly referred to as the "FASB." The FASB sets Generally Accepted Accounting Principles ("GAAP"), which we follow to ensure that we consistently report our financial condition, results of operations and cash flows. References to GAAP in the United States issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the "Codification").
|
(a)
|
Basis of Consolidation
|
We consolidate our majority-owned Subsidiaries in which we have the ability to control the operations of our Subsidiaries and all variable interest entities with respect to which we are the primary beneficiary. We also consolidate entities in which we have a direct or indirect controlling or voting interest. All significant inter-company transactions have been eliminated.
Effective January 1, 2016, we adopted (“ASU 2015-02”)
Consolidation (Topic 810): Amendments to the Consolidation Analysis
. ASU 2015-02 required us to evaluate whether we should consolidate certain legal entities. Principally, the new consolidation standard modified the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIE") or voting interest entities. The adoption of this standard did not result in any changes to our accounting of interests in less than wholly-owned joint ventures; however, the Operating Partnership now meets the criteria as a VIE. We concluded that the Operating Partnership is a VIE because we are the general partner and controlling owner of approximately
93.8%
of the Operating Partnership and the limited partners do not have substantive kick-out or participating rights. Our sole significant asset is our investment in the Operating Partnership, and consequently, substantially all of our assets and liabilities represent those assets and liabilities of the Operating Partnership. The Company has the power to direct the VIE's activities and the obligation to absorb its losses or the right to receive its benefits, which are significant to the VIE. Accordingly, we are the primary beneficiary and we will continue to consolidate the Operating Partnership under this new guidance.
We apply the equity method of accounting to entities in which we do not have a direct or indirect controlling interest or for variable interest entities where we are not considered the primary beneficiary, but can exercise influence over the entity with respect to its operations and major decisions. The cost method is applied when (i) the investment is minimal (typically less than
5.0%
) and (ii) our investment is passive. Our exposure to losses associated with unconsolidated joint ventures is primarily limited to the carrying value of these investments. Accordingly, distributions from a joint venture in excess of our carrying value are recognized in earnings.
|
(b)
|
Use of Estimates
|
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All property, Site counts and acreage amounts are unaudited.
|
(c)
|
Real Estate
|
Real estate is recorded at cost less accumulated depreciation. Our policy is to estimate useful lives associated with our real estate assets and to depreciate the assets on a straight-line basis based on our estimates. The depreciable life estimate of our new manufactured homes is
25
years and our used homes is
10
-
25
years. We use a
30
-year estimated life for buildings and structural and land improvements acquired (including Site development), a
10
-year estimated life for building upgrades, a
five
-year estimated life for furniture, fixtures and equipment and lease intangibles over the average life of acquired in-place leases.
Land improvements consist primarily of improvements such as grading, landscaping and infrastructure items, such as streets, sidewalks or water mains. Buildings and other depreciable property consist of permanent buildings in the Properties such as clubhouses, laundry facilities, maintenance storage facilities, rental units and furniture, fixtures, equipment, and in-place leases.
The values of above and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the applicable lease. The value associated with in-place leases is amortized over the expected term.
F-11
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2—Summary of Significant Accounting Policies (continued)
In accordance with the Codification Sub-Topic
"Impairment or Disposal of Long Lived Assets"
("FASB ASC 360-10-35"), we periodically evaluate our long-lived assets to be held and used, including our investments in real estate, for impairment indicators. Our judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions, environmental and legal factors. Future events could occur which would cause us to conclude that impairment indicators exist and an impairment loss is warranted.
If an impairment indicator exists related to long-lived assets that are held and used, we compare the expected future undiscounted cash flows against the carrying amount of that asset. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded for the carrying amount in excess of the estimated fair value, if any, of the asset. For the periods presented, no impairment losses were recorded.
For Properties to be disposed of, an impairment loss is recognized when the fair value of the Property, less the estimated cost to sell, is less than the carrying amount of the Property measured at the time we have made the decision to dispose of the Property, subject to Board and management approval. A Property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less costs to sell. Subsequent to the date that a Property is held for disposition, depreciation expense is not recorded.
|
(d)
|
Acquisitions
|
In accordance with Codification Topic
"Business Combinations"
("FASB ASC 805"), we recognize all the assets acquired and all the liabilities assumed in a transaction at the acquisition-date fair value. We also expense transaction costs as they are incurred. The results of operations of acquired assets are included in the Consolidated Statements of Income and Comprehensive Income from the dates of acquisition. Certain purchase price adjustments may be made within one year following the acquisition and applied prospectively in accordance with ASU 2015-16
Business Combinations (Topic 805):
Simplifying the Accounting for Measurement-Period Adjustments
.
In making estimates of fair values for purposes of allocating purchase price, we utilize a number of sources, including independent appraisals or valuations that may be available in connection with the acquisition or financing of the respective Property and other market data. We also consider information obtained about each Property as a result of our due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired and liabilities assumed.
The following methods and assumptions are used to estimate the fair value of each class of asset acquired and liability assumed:
Land – Market approach based on similar, but not identical, transactions in the market. Adjustments to comparable sales based on both the quantitative and qualitative data.
Depreciable property – Cost approach based on market comparable data to replace adjusted for local variations, inflation and other factors.
Manufactured homes – Sales comparison approach based on market prices for similar homes adjusted for differences in age or size. Manufactured homes are included on our Consolidated Balance Sheets in buildings and other depreciable property.
In-place leases – Lease in place values are determined via a combination of estimates of market rental rates and expense reimbursement levels as well as an estimate of the length of time required to replace each lease.
Notes receivable – Income approach based on discounted cash flows comparing contractual cash flows at a market rate adjusted based on particular notes' or note holders' down payment, credit score and delinquency status.
Mortgage notes payable – Income approach based on discounted cash flows comparing contractual cash flows to cash flows of similar debt discounted based on market rates.
In January 2017, the FASB issued ("ASU 2017-01")
Business Combinations (Topic 805): Clarifying the Definition of a Business.
This guidance clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not considered a business and, thus, is accounted for as an asset acquisition rather than a business combination. Additional information regarding ASU 2017-01 can be found in this Note in
(m) Recent Accounting Pronouncements
.
F-12
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2—Summary of Significant Accounting Policies (continued)
(e) Deferred Financing Costs, net
Deferred financing costs, net include fees and costs incurred to obtain long-term financing. The costs are being amortized over the terms of the respective loans on a basis that approximates level yield. Unamortized deferred financing fees are written-off when debt is retired before the maturity date. Upon amendment of the line of credit or refinancing of mortgage debt, unamortized deferred financing fees are accounted for in accordance with Codification Sub-Topic
"Modifications and Extinguishments"
("FASB ASC 470-50-40"). Accumulated amortization for such costs was
$33.9 million
and
$31.4 million
at
December 31, 2017
and
2016
, respectively.
|
(f)
|
Identified Intangibles and Goodwill
|
We record acquired intangible assets at their estimated fair value separate and apart from goodwill. We amortize identified intangible assets and liabilities that are determined to have finite lives over the period the assets and liabilities are expected to contribute directly or indirectly to the future cash flows of the property or business acquired. In accordance with FASB ASC 360-10-35, intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its estimated fair value.
The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. In accordance with Codification Topic "Goodwill and Other Intangible Assets" ("FASB ASC 350"), goodwill is not amortized but is tested for impairment at a level of reporting referred to as a reporting unit on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired.
As of
December 31, 2017
and
2016
, the gross carrying amounts of identified intangible assets and goodwill were approximately
$12.1 million
, which is reported as a component of Escrow deposits, goodwill and other assets, net on our consolidated balance sheets. As of
December 31, 2017
and
2016
, this amount was comprised of approximately
$4.3 million
of identified intangible assets and approximately
$7.8 million
of goodwill. Accumulated amortization of identified intangibles assets was approximately
$2.9 million
and
$2.8 million
as of
December 31, 2017
and
2016
, respectively. For the years ended
December 31, 2017
,
2016
, and 2015, amortization expense for the identified intangible assets was approximately
$0.1 million
,
$0.2 million
, and
$0.4 million
respectively.
|
(g)
|
Restricted Cash
|
Cash as of
December 31, 2017
and
2016
included approximately
$5.3 million
of restricted cash, in both periods, for the payment of capital improvements, insurance or real estate taxes pursuant to certain loan agreements.
(h) Fair Value of Financial Instruments
Our financial instruments include notes receivable, accounts receivable, accounts payable, other accrued expenses, interest rate swaps and mortgage notes payable. We disclose the estimated fair value of our financial instruments according to a fair value hierarchy (Level 1, 2 and 3).
Codification Topic "Fair Value Measurements and Disclosures" ("FASB ASC 820") establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1-Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2-Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3-Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
F-13
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2—Summary of Significant Accounting Policies (continued)
Our mortgage notes payable and term loan had a carrying value of approximately
$2,193.7 million
and
2,110.2 million
as of
December 31, 2017
and
2016
, respectively, and a fair value of approximately
$2,184.0 million
and
$2,100.0 million
as of
December 31, 2017
and
2016
, respectively. The fair value is measured using quoted prices and observable inputs from similar liabilities (Level 2). At
December 31, 2017
and
2016
, our cash flow hedge of interest rate risk included in accrued expenses and accounts payable was measured using quoted prices and observable inputs from similar assets and liabilities (Level 2). We consider our own credit risk as well as the credit risk of our counterparties when evaluating the fair value of our derivative. The fair values of our notes receivable approximate their carrying or contract values. We also utilize Level 2 and Level 3 inputs as part of our determination of the purchase price allocation for our acquisitions (see Note 5 to the Consolidated Financial Statements).
|
(i)
|
Revenue Recognition
|
Our revenue streams are predominantly derived from customers renting our Sites or entering right-to-use contracts. Our MH community Sites and annual RV resort Sites are leased on an annual basis. Seasonal Sites are leased to customers generally for one to six months. Transient Sites are leased to customers on a short-term basis. Leases with the Company's customers are accounted for as operating leases. Rental income is recognized over the term of the respective lease or the length of a customer's stay.
A right-to-use contract gives the customer the right to a set schedule of usage at a specified group of Properties. Payments are deferred and recognized ratably over the
one year
period in which access to Sites at certain Properties are provided. Right-to-use upfront non-refundable payments supplement the right-to-use contract and grant certain additional access rights to the customer. Under current accounting standards, right-to-use upfront non-refundable payments are recognized based on estimated attrition rates of up to 40 years. On January 1, 2018, the Company will adopt ("ASU 2014-09")
Revenue from Contracts with Customers.
Income from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred.
|
(j)
|
Non-Controlling Interests
|
A non-controlling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are non-controlling interests. Under Codification Topic
"Consolidation"
("FASB ASC 810"), such non-controlling interests are reported on the consolidated balance sheets within equity, separately from the Company's equity. However, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable non-controlling interests outside of permanent equity in the consolidated balance sheets. We make this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to non-controlling interests for which we have a choice to settle the contract by delivery of our own shares, we considered the guidance in the Codification Topic
"Derivatives and Hedging—Contracts in Entity's Own Equity"
("FASB ASC 815-40") to evaluate whether we control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract.
Net income is allocated to Common OP Unitholders based on their respective ownership percentage of the Operating Partnership. Such ownership percentage is calculated by dividing the number of Common OP Units held by the Common OP Unitholders by the total OP Units held by the Common OP Unitholders and us. Issuance of additional shares of common stock or Common OP Units changes the percentage ownership of both the Non-controlling interests – Common OP Units and the Company.
Due in part to the exchange rights (which provide for the conversion of Common OP Units into shares of common stock on a one-for-one basis), such transactions and the proceeds therefrom are treated as capital transactions and result in an allocation between stockholders' equity and Non-controlling Interests to account for the change in the respective percentage ownership of the underlying equity of the Operating Partnership.
In accordance with FASB ASC 810, we present the non-controlling interest for Common OP Units in the Equity section of the consolidated balance sheets. The caption Common OP Units on the consolidated balance sheets also includes
$0.1 million
of private REIT Subsidiaries preferred stock.
F-14
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2—Summary of Significant Accounting Policies (continued)
|
(k)
|
Income Taxes
|
Due to our structure as a REIT, the results of operations contain no provision for U.S. federal income taxes for the REIT. As of
December 31, 2017
and
2016
, the REIT had a federal net operating loss carryforward of approximately
$75.0 million
and
$88.1 million
, respectively. In 2017, the Company utilized approximately
$13.0 million
of the net operating loss carryforward to offset its tax and distribution requirements. The REIT is entitled to utilize the net operating loss carryforward only to the extent that the REIT taxable income exceeds our deduction for dividends paid. Due to the uncertainty regarding the use of the REIT net operating loss carryforward, no net tax asset has been recorded as of
December 31, 2017
and
2016
.
In addition, we have several taxable REIT Subsidiaries ("TRSs"), which are subject to federal and state income taxes at regular corporate tax rates. Overall, the TRSs have federal net operating loss carryforwards. Due to the uncertainty regarding the realization of these deferred tax assets, we have maintained a full valuation allowance as of
December 31, 2017
and
2016
.
The REIT is still subject to certain foreign, state and local income, excise or franchise taxes; however, they are not material to our operating results or financial position. We do not have unrecognized tax benefit items.
We, or one of our Subsidiaries, file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and Canada. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2013.
As of
December 31, 2017
, net investment in real estate and notes receivable had a U.S. federal tax basis of approximately
$3.2 billion
(unaudited) and
$51.2 million
(unaudited), respectively.
During the years ended
December 31, 2017
,
2016
and
2015
, our tax treatment of common stock distributions were as follows (unaudited):
|
2017
|
2016
|
2015
|
|||||||||
|
Tax status of Common Shares distributions deemed paid during the year:
|
|||||||||||
|
Ordinary income
|
$
|
1.657
|
|
$
|
1.471
|
|
$
|
1.169
|
|
||
|
Long-term capital gains
|
0.718
|
|
—
|
|
—
|
|
|||||
|
Nondividend distributions
|
—
|
|
0.179
|
|
0.081
|
|
|||||
|
Distributions declared per common stock outstanding
|
$
|
2.375
|
|
$
|
1.650
|
|
$
|
1.250
|
|
||
The quarterly distribution paid on
January 12, 2018
of
$0.488
(unaudited) per common share will all be allocable to
2017
for federal tax purposes.
Alternative minimum tax adjustments are to be apportioned between a REIT and its shareholders under Code Section 59(d). Although regulations have not yet been issued under that provision, based on the regulations issued pursuant to a similar provision of prior law and the legislative history of the current provision, it appears that such alternative minimum tax adjustments are to be apportioned to a REIT’s shareholders to the extent that the REIT distributes its regular taxable income. All of the Company’s alternative minimum tax adjustments are being apportioned to the Company’s shareholders.
The Company has determined that 0.33% of each distribution to the Company’s shareholders for the tax year ended December 31, 2017 consists of an alternative minimum tax adjustment.
|
(l)
|
Other expenses, including property rights initiatives
|
A litigation settlement payable was recorded in Accrued expenses and accounts payable as of December 31, 2016. In addition, an insurance receivable was recorded in escrow deposits, goodwill and other assets, net as of December 31, 2016, resulting in a net settlement of approximately
$2.4 million
reflected as a component of Other expenses, including property rights initiatives on the consolidated statement of income for the year ended December 31, 2016. During the first quarter of 2017, the settlements were finalized, the settlement payments were made and the insurance payments were received.
F-15
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 2—Summary of Significant Accounting Policies (continued)
|
(m)
|
Recent Accounting Pronouncements
|
In August 2017, the FASB issued ("ASU 2017-12")
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
. ASU 2017-12 provides guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. The entire change in fair value for qualifying hedge instruments including ineffectiveness will be recorded in other comprehensive income (OCI) and amounts deferred in OCI will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is reported. The new guidance also amends the presentation and disclosure requirements. The intention is to align hedge accounting with companies' risk management strategies more closely, thereby simplifying the application of hedge accounting and increase transparency as to the scope and results of hedging programs. ASU 2017-12 is effective in fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. We are currently in the process of evaluating the potential impact that the adoption of this standard may have on our consolidated financial statements and related disclosures.
In January 2017, the FASB issued ("ASU 2017-01")
Business Combinations (Topic 805): Clarifying the Definition of a Business
. This guidance clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not considered a business and, thus, is accounted for as an asset acquisition rather than a business combination. We expect the clarification of the definition of a business will result in future acquisitions to be accounted for as asset acquisitions, rather than a business combination. For asset acquisitions, acquisition costs will be capitalized, and the purchase price will be allocated on a relative fair value basis
.
The Company will adopt ASU 2017-01 on January 1, 2018.
In November 2016, the FASB issued ("ASU 2016-18")
Statement of Cash Flows: Restricted Cash (Topic 230).
ASU 2016-18
will require companies to include restricted cash with cash and cash equivalents when reconciling the beginning-of'-period and end-of period total amounts shown on the statement of cash flows. ASU 2016-18 will require disclosure of a reconciliation between the balance sheet and the statement of cash flows when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. An entity with material restricted cash and restricted cash equivalents balances will be required to disclose the nature of the restrictions. ASU 2016-18 will be effective for us in the first quarter of 2018, and is required to be applied retrospectively to all periods presented. We do not expect ASU 2016-18 to have a material impact on the presentation of our Consolidated Financial Statements.
In August 2016, the FASB issued (“ASU 2016-15”)
Statement of Cash Flows (Topic 230)
. ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 will be effective for us in the first quarter of 2018. We expect the guidance will impact the presentation of cash flows by (1) clarifying the appropriate classification of cash flows when more than one class of cash flows exist, (2) specifying cash flow classification from insurance proceeds, and (3) clarifying that debt prepayment and extinguishment costs are classified as financing cash outflow.
In June 2016, the FASB issued (“ASU 2016-13”)
Financial Instruments - Credit Losses (Topic 326)
. ASU 2016-13 requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are currently in the process of evaluating the potential impact, if any, that adoption of this standard may have on our consolidated financial statements and related disclosures.
In March 2016, the FASB issued ("ASU 2016-09")
Compensation—Stock Compensation (Topic 718)
. Under ASU 2016-09, entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The guidance of employers' accounting for (1) an employee's use of shares to satisfy the employer's statutory income tax withholding obligation and (2) forfeitures has changed. For public business entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The Company elected to early adopt ASU 2016-09 as of October 1, 2016. Adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements and related disclosures.
In February 2016, the FASB issued ("ASU 2016-02")
Leases
. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief "For Lessees". ASU 2016-02 will continue to
F-16
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently in the process of evaluating the potential impact this standard may have on our consolidated financial statements and related disclosures.
In May 2014, the FASB issued ("ASU 2014-09")
Revenue from Contracts with Customers
which along with related subsequent amendments will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The majority of the Company's revenue follows the existing leasing guidance and will not be impacted by the adoption of this standard; however, our right-to-use contracts will be required to follow the new guidance upon adoption. The standard permits the use of either the full retrospective or modified retrospective transition method. Expanded quantitative and qualitative disclosures regarding revenue recognition will be required for contracts that are subject to this guidance.
The Company has finalized its evaluation of ASU 2014-09 and the impact on its consolidated financial statements. The Company will adopt ASU 2014-09 and all related amendments, effective January 1, 2018, applying the modified retrospective transition method, which requires the recognition of the cumulative effect of the transition as an adjustment to retained earnings as of January 1, 2018. Upon adoption, right-to-use upfront nonrefundable payments will be recognized on a straight-line basis over 20 years to reflect our current estimated customer life for the majority of our upgrade contracts. As a result of the cumulative impact of adopting the new guidance, we currently expect to record a net reduction to retained earnings of approximately $15 million as of January 1, 2018, as a result of an increase in Deferred revenue - upfront payments from right-to-use contracts and an increase in Deferred commissions expense.
F-17
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Basic and fully diluted earnings per share are based on the weighted average shares outstanding during each year and basic earnings per share exclude any dilutive effects of options, unvested restricted shares and convertible securities. The conversion of OP Units has been excluded from the basic earnings per share calculation. The conversion of an OP Unit for a share of common stock has no material effect on earnings per common share on a fully diluted basis.
The following table sets forth the computation of basic and diluted earnings per common share for the years ended
December 31, 2017
,
2016
and
2015
(amounts in thousands, except per share data):
|
|
Years Ended December 31,
|
||||||||||
|
|
2017
|
2016
|
2015
|
||||||||
|
Numerators:
|
|||||||||||
|
Net Income Available for Common Stockholders:
|
|||||||||||
|
Consolidated net income
|
$
|
210,377
|
|
$
|
187,132
|
|
$
|
150,512
|
|
||
|
Amounts allocated to dilutive securities
|
(12,788
|
)
|
(13,869
|
)
|
(11,141
|
)
|
|||||
|
Preferred Stock distributions
|
(7,685
|
)
|
(9,226
|
)
|
(9,226
|
)
|
|||||
|
Net income available to Common Stockholders – basic
|
189,904
|
|
164,037
|
|
130,145
|
|
|||||
|
Amounts allocated to dilutive securities
|
12,788
|
|
13,869
|
|
11,141
|
|
|||||
|
Net income available to Common Stockholders – fully diluted
|
$
|
202,692
|
|
$
|
177,906
|
|
$
|
141,286
|
|
||
|
Denominator:
|
|||||||||||
|
Weighted average Common Stock outstanding—basic
|
86,997
|
|
84,778
|
|
84,031
|
|
|||||
|
Effect of dilutive securities:
|
|||||||||||
|
Redemption of Common OP Units for Common Stock
|
6,033
|
|
7,204
|
|
7,216
|
|
|||||
|
Stock options and restricted stock
|
395
|
|
587
|
|
660
|
|
|||||
|
Weighted average Common Stock outstanding—fully diluted
|
93,425
|
|
92,569
|
|
91,907
|
|
|||||
|
Earnings per Common Share—Basic:
|
|||||||||||
|
Net income available for Common Stockholders
|
$
|
2.18
|
|
$
|
1.93
|
|
$
|
1.55
|
|
||
|
Earnings per Common Share—Fully Diluted:
|
|||||||||||
|
Net income available for Common Stockholders
|
$
|
2.17
|
|
$
|
1.92
|
|
$
|
1.54
|
|
||
F-18
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
On November 2, 2017, we extended our ATM equity offering program with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our Common Stock, par value
$0.01
per share, having an aggregate offering price of up to
$200.0 million
. Prior to the extension, the aggregate offering price was up to
$125.0 million
. The following table presents the shares that were issued under this ATM equity offering program during the
year ended
December 31, 2017
prior to and after the extension (amounts in thousands, except share data):
|
Year Ended December 31, 2017
|
Year Ended December 31, 2016
|
||||||
|
Shares of Common Stock sold
|
1,380,017
|
|
683,548
|
|
|||
|
Weighted average price
|
$
|
87.46
|
|
$
|
73.15
|
|
|
|
Total gross proceeds
|
$
|
120,698
|
|
$
|
50,000
|
|
|
|
Commissions paid to sales agents
|
$
|
1,512
|
|
$
|
657
|
|
|
As of
December 31, 2017
,
$150.0 million
of Common Stock remained available for issuance under our ATM equity offering program.
On
May 10, 2016
, we amended and restated the 1997 Non-Qualified Employee Stock Purchase Plan ("ESPP"). Pursuant to the ESPP, certain of our employees and directors may each annually acquire up to
$250,000
of our common stock. The aggregate number of shares of common stock available under the ESPP shall not exceed
2,000,000
, subject to adjustment by our Board of Directors. The common stock may be purchased monthly at a price equal to
85%
of the lesser of: (a) the closing price for a share of common stock on the last day of the offering period; and (b) the closing price for a share of common stock on the first day of the offering period. Shares of common stock issued through the ESPP for the years ended
December 31, 2017
,
2016
and
2015
were
24,715
,
17,037
and
19,788
, respectively.
The following table presents the changes in our outstanding common stock for the years ended
December 31, 2017
,
2016
and
2015
(excluding OP Units of
5,834,100
,
7,170,000
, and
7,207,678
outstanding at
December 31, 2017
,
2016
and
2015
, respectively):
|
Years Ended December 31,
|
||||||||
|
2017
|
2016
|
2015
|
||||||
|
Shares outstanding at January 1,
|
85,529,386
|
|
84,253,065
|
|
83,879,779
|
|
||
|
Common stock issued through the ATM Equity Offering Program
|
1,380,017
|
|
683,548
|
|
—
|
|
||
|
Common stock issued through conversion of OP Units
|
1,335,900
|
|
37,678
|
|
24,289
|
|
||
|
Common stock issued through exercise of options
|
220,000
|
|
440,000
|
|
220,000
|
|
||
|
Common stock issued through stock grants
|
130,426
|
|
133,717
|
|
158,014
|
|
||
|
Common stock forfeitures
|
(990
|
)
|
—
|
|
—
|
|
||
|
Common stock issued through ESPP and Dividend Reinvestment Plan
|
25,101
|
|
17,373
|
|
20,133
|
|
||
|
Common stock repurchased and retired
|
(34,680
|
)
|
(35,995
|
)
|
(49,150
|
)
|
||
|
Shares outstanding at December 31,
|
88,585,160
|
|
85,529,386
|
|
84,253,065
|
|
||
During the years ended December 31,
2017
,
2016
and
2015
, we repurchased shares of common stock representing common stock surrendered to satisfy income tax withholding obligations due as a result of the vesting of restricted stock grants at a weighted average price of
$89.02
,
$72.22
and
$66.20
per share, respectively.
As of
December 31, 2017
and
2016
, ELS' percentage ownership of the Operating Partnership was approximately
93.8%
and
92.3%
, respectively. The remaining approximately
6.2%
and
7.7%
as of December 31, 2017 and 2016, respectively, was owned by the Common OP Unitholders.
F-19
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
The following regular quarterly distributions have been declared and paid to common stockholders and common OP Unit non-controlling interests since January 1,
2015
:
|
Distribution
Amount Per
Share
|
|
For the Quarter Ended
|
|
Stockholder Record
Date
|
|
Payment Date
|
|
$0.375000
|
|
March 31, 2015
|
|
March 27, 2015
|
April 10, 2015
|
|
|
$0.375000
|
|
June 30, 2015
|
|
June 26, 2015
|
July 10, 2015
|
|
|
$0.375000
|
|
September 30, 2015
|
|
September 25, 2015
|
October 9, 2015
|
|
|
$0.375000
|
|
December 31, 2015
|
|
December 28, 2015
|
January 8, 2016
|
|
|
$0.425000
|
March 31, 2016
|
March 25, 2016
|
April 8, 2016
|
|||
|
$0.425000
|
June 30, 2016
|
June 24, 2016
|
July 8, 2016
|
|||
|
$0.425000
|
September 30, 2016
|
September 30, 2016
|
October 14, 2016
|
|||
|
$0.425000
|
December 31, 2016
|
December 30, 2016
|
January 13, 2017
|
|||
|
$0.487500
|
March 31, 2017
|
March 31, 2017
|
April 14, 2017
|
|||
|
$0.487500
|
June 30, 2017
|
June 30, 2017
|
July 14, 2017
|
|||
|
$0.487500
|
September 30, 2017
|
September 29, 2017
|
October 13, 2017
|
|||
|
$0.487500
|
December 31, 2017
|
December 29, 2017
|
January 12, 2018
|
|||
Acquisitions at Fair Value
During the years ended
December 31, 2017
,
2016
and
2015
we acquired all of the following Properties from unaffiliated third parties:
During the year ended December 31, 2017, we acquired Bethpage Camp Resort and Grey's Point Camp, two RV Resorts in Urbanna and Topping,Virginia, respectively and Paradise Park Largo, a manufactured home community in Largo, Florida for a combined purchase price of
$142.4 million
. These Properties include
1,870
sites. As a result of these acquisitions, we assumed approximately
$5.9 million
of mortgage debt. The remaining purchase price was funded with available cash, proceeds from our ATM equity offering program and proceeds from the line of credit.
During the year ended December 31, 2016, we acquired
four
RV Resort Properties, including Riverside RV, located in Arcadia, Florida, Portland Fairview, located in Fairview Oregon, Forest Lakes Estate, located in Zephyryhills, Florida, and Rose Bay, located in Port Orange, Florida for a combined purchase price of
$120.5 million
. These Properties include
2,377
Sites. As a result of these acquisitions, we assumed approximately
$22.6 million
of mortgage debt. The remaining purchase price was funded with available cash and proceeds from our ATM equity offering program.
During the year ended December 31, 2015, we acquired Miami Everglades, a RV Resort located in Miami, Florida, and two coastal North Carolina Properties - Bogue Pines, a manufactured home community and Whispering Pines, a RV Resort - for a combined purchase price of
$23.9 million
. These Properties contain
731
Sites. The purchase price was funded with available cash.
F-20
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
We engaged a third-party to assist with our purchase price allocation for the acquisitions. The allocation of the fair values of the assets acquired and liabilities assumed is subject to further adjustment within one year of purchase due primarily to information not readily available at the acquisition date and final purchase price settlement with the sellers in accordance with the terms of the purchase agreement. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed in the acquisitions for the years ended
December 31, 2017
,
2016
, and
2015
which we determined using Level-2 inputs for mortgage notes payable and other liabilities and Level-3 inputs for assets (amounts in thousands):
|
December 31,
|
|||||||||||
|
2017
|
2016
|
2015
|
|||||||||
|
Assets acquired
|
|||||||||||
|
Land
|
$
|
57,278
|
|
$
|
60,489
|
|
$
|
8,985
|
|
||
|
Buildings and other depreciable property
|
85,096
|
|
55,445
|
|
13,948
|
|
|||||
|
Manufactured homes
|
—
|
|
67
|
|
345
|
|
|||||
|
In-place leases
|
—
|
|
4,447
|
|
622
|
|
|||||
|
Net investment in real estate
|
$
|
142,374
|
|
$
|
120,448
|
|
$
|
23,900
|
|
||
|
Other assets
|
—
|
|
20
|
|
53
|
|
|||||
|
Total assets acquired
|
$
|
142,374
|
|
$
|
120,468
|
|
$
|
23,953
|
|
||
|
Liabilities assumed
|
|||||||||||
|
Mortgage notes payable
|
$
|
5,900
|
|
$
|
22,010
|
|
$
|
—
|
|
||
|
Other liabilities
|
32
|
|
2,214
|
|
266
|
|
|||||
|
Total liabilities assumed
|
$
|
5,932
|
|
$
|
24,224
|
|
$
|
266
|
|
||
|
Net assets acquired
|
$
|
136,442
|
|
$
|
96,244
|
|
$
|
23,687
|
|
||
In accordance with our policy, the measurement period for the purchase price of the 2017 acquisitions is open as of
December 31, 2017
; however, we do not anticipate further material purchase price adjustments related to these acquisitions.
Investments in joint ventures in which we do not have a controlling direct or indirect voting interest, but can exercise significant influence over the entity with respect to our operations and major decisions, are accounted for using the equity method of accounting whereby the cost of an investment is adjusted for our share of the equity in net income or loss from the date of acquisition, reduced by distributions received and increased by contributions made. The income or loss of each entity is allocated in accordance with the provisions of the applicable operating agreements. The allocation provisions in these agreements may differ from the ownership interests held by each investor.
On August 8, 2017, we contributed approximately
$30.0 million
to acquire a
49%
interest in Florida Atlantic Holding, LLC ("Loggerhead"). Loggerhead owns a portfolio of 11 marinas located in Florida. The contribution was funded by net proceeds from sales of common stock under our ATM equity offering program. Our ownership interest in Loggerhead is accounted for under the equity method of accounting.
On June 15, 2017, we entered into a joint venture agreement to purchase Crosswinds Mobile Home Park ("Crosswinds"), a
376
-site manufactured home community located in St. Petersburg, Florida. The purchase price of the Property was
$18.4 million
. We contributed
$2.2 million
for a
49%
equity interest in the joint venture. The joint venture is accounted for under the equity method of accounting. As part of the transaction, we issued a short term loan of
$13.8 million
to the joint venture. The loan bears interest at
5%
per annum, can be repaid with no penalty prior to maturity, and matures on March 12, 2018.
We recorded approximately
$3.8 million
,
$2.6 million
, and
$4.1 million
(each net of approximately
$1.5 million
,
$1.3 million
and
$1.1 million
of depreciation expense, respectively) of equity in income from unconsolidated joint ventures for each of the years ended
December 31, 2017
,
2016
and
2015
, respectively. We received approximately
$3.8 million
,
$5.9 million
and
$3.7 million
in distributions from joint ventures for the years ended
December 31, 2017
,
2016
and
2015
, respectively. Approximately
$0.8 million
and
$1.4 million
of the distributions made to us exceeded our basis in joint ventures, and as such, were recorded as income from unconsolidated joint ventures for the year ended December 31, 2017 and 2015. None of the distributions made to us exceeded our basis in joint ventures for the year ended December 31, 2016.
F-21
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
On August 29, 2016, the Voyager joint venture obtained additional loan funding in the amount of
$8.5 million
, of which
$4.1 million
was distributed to us.
During the years ended December 31, 2016 and 2015, we contributed
$5.0 million
and
$4.0 million
, respectively, to our joint venture, Echo Financing, LLC ("ECHO JV").
The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically for the years ended
December 31, 2017
,
2016
and
2015
respectively):
|
|
|
|
|
|
Investment as of
|
Income/(Loss) for
Years Ended |
|||||||||||||||||||||||
|
Investment
|
Location
|
Number
of Sites (d) |
Economic Interest
(a)
|
|
December 31,
2017 |
December 31,
2016 |
December 31,
2017 |
December 31,
2016 |
December 31,
2015 |
||||||||||||||||||||
|
Meadows
|
Various (2,2)
|
1,077
|
|
50
|
%
|
$
|
307
|
|
$
|
510
|
|
$
|
2,197
|
|
$
|
1,348
|
|
$
|
1,401
|
|
|||||||||
|
Lakeshore
|
Florida (3,2)
|
720
|
|
(b)
|
2,530
|
|
56
|
|
115
|
|
318
|
|
1,777
|
|
|||||||||||||||
|
Voyager
|
Arizona (1,1)
|
1,801
|
|
50
|
%
|
(c)
|
3,205
|
|
3,376
|
|
891
|
|
1,014
|
|
846
|
|
|||||||||||||
|
Loggerhead
|
Various
|
2,343
|
|
49
|
%
|
31,414
|
|
—
|
|
230
|
|
—
|
|
—
|
|
||||||||||||||
|
Echo JV
|
Various
|
—
|
|
50
|
%
|
15,624
|
|
15,427
|
|
332
|
|
(75
|
)
|
65
|
|
||||||||||||||
|
5,941
|
|
$
|
53,080
|
|
$
|
19,369
|
|
$
|
3,765
|
|
$
|
2,605
|
|
$
|
4,089
|
|
|||||||||||||
_________________________
|
(a)
|
The percentages shown approximate our economic interest as of
December 31, 2017
. Our legal ownership interest may differ.
|
|
(b)
|
Includes two joint ventures in which we own a 65% interest in each and the Crosswinds joint venture in which we own a 49% interest.
|
|
(c)
|
Voyager joint venture primarily consists of a
50%
interest in Voyager RV Resort and
33%
interest in the utility plant servicing the Property.
|
|
(d)
|
Loggerhead sites represents marina slip counts.
|
F-22
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Notes receivable generally are presented at their outstanding unpaid principal balances net of any allowances, deferred fees or costs on originated loans and unamortized discounts or premiums. Interest income is accrued on the unpaid principal balance. Discounts or premiums are amortized to income using the interest method. In certain cases, we purchase loans made by others to finance the sales of homes to our customers (referred to as "Chattel Loans"). These loans are secured by the purchased homes.
Financial instruments that potentially could subject us to significant concentrations of credit risk consist principally of notes receivable. Concentrations of credit risk with respect to notes receivable are limited due to the size of the receivable and geographic diversity of the underlying Properties.
Chattel Loans
From time to time, we purchase Chattel Loans made by an unaffiliated third party lender that are secured by homes at certain Properties. These Chattel Loans require monthly principal and interest payments. As of
December 31, 2017
and
2016
, we had approximately
$15.9 million
and
$16.5 million
, respectively, of these Chattel Loans included in notes receivable. As of
December 31, 2017
, the Chattel Loans receivable had a stated per annum average rate of approximately
7.7%
, with a yield of
22.0%
, and had an average term remaining of approximately
10 years
. These Chattel Loans are recorded net of allowances of approximately
$0.3 million
as of
December 31, 2017
and
2016
.
Contracts Receivable
We also provide financing for nonrefundable upgrades to existing right-to-use contracts ("Contracts Receivable"). These Contracts Receivable represent loans to customers who have entered right-to-use contracts. Contracts Receivable are also generally presented at their outstanding unpaid principal balances net of an allowance reserve.
As of
December 31, 2017
and
2016
, we had approximately
$19.7 million
and
$18.0 million
, respectively, of Contracts Receivable included in notes receivable. The Contracts Receivable have an average stated interest rate of
16.4%
, a weighted average term remaining of approximately
four years
and require monthly payments of principal and interest. The Contracts Receivable recorded as of December 31, 2017 and 2016 were net of an allowance of approximately
$0.5 million
and
$0.7 million
, respectively.
Allowance for Doubtful Accounts
Our allowance for doubtful accounts is comprised of our reserves for amounts receivable from tenants, Contracts Receivable and Chattel Loans. The allowances reflect our best estimate of collectibility risks on outstanding receivables. Our allowance for uncollectible rents receivable was approximately
$4.7 million
and
$4.4 million
as of
December 31, 2017
and
2016
, respectively.
During the years ended
December 31, 2017
,
2016
and
2015
, our allowance for doubtful accounts was as follows (amounts in thousands):
|
2017
|
2016
|
2015
|
||||||||||
|
Balance, beginning of period
|
$
|
5,378
|
|
$
|
6,470
|
|
$
|
7,110
|
|
|||
|
Provision for losses
|
4,181
|
|
3,926
|
|
4,055
|
|
||||||
|
Write-offs
|
(4,014
|
)
|
(5,018
|
)
|
(4,695
|
)
|
||||||
|
Balance, end of period
|
$
|
5,545
|
|
$
|
5,378
|
|
$
|
6,470
|
|
|||
F-23
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Mortgage Notes Payable
As of
December 31, 2017
and
2016
, we had outstanding mortgage indebtedness on Properties of approximately
$1,971.7 million
and
$1,891.9 million
, respectively, net of deferred financing costs. The weighted average interest rate including the impact of premium/discount amortization on this mortgage indebtedness for the year ended
December 31, 2017
was approximately
4.8%
per annum. The debt bears interest at stated rates of
3.1%
to
8.9%
per annum and matures on various dates ranging from
2018
to
2041
. The debt encumbered a total of
120
and
126
of our Properties as of
December 31, 2017
and
December 31, 2016
, respectively, and the carrying value of such Properties was approximately
$2,323.1 million
and
$2,296.6 million
for
December 31, 2017
and
December 31, 2016
, respectively.
2017 Activity
During the
year ended
December 31, 2017, we closed on
three
loans, each secured by a manufactured home community, with total gross proceeds of
$146.0 million
. They have a stated interest rate of
4.07%
per annum and a maturity of
20
years. Additionally, during the year, we entered into a
$204.4 million
secured credit facility with Fannie Mae, maturing in
20
years and bearing a
3.97%
fixed interest rate. The loan is secured by
five
manufactured home communities. Also, during the year ended December 31, 2017 we paid off
15
mortgage loans (
13
maturing in 2018 and two that would have matured in 2017) of approximately
$230.2 million
including
$2.7 million
of prepayment penalties, with a weighted average interest rate of
5.93%
per annum, secured by
13
manufacturing home properties and
two
RV resort. Finally, in connection with the Paradise Park Largo acquisition, we assumed approximately
$5.9 million
of mortgage debt secured by the manufactured home community with an interest rate of
4.60%
per annum.
2016 Activity
During the
year ended
December 31, 2016, we completed refinancing activity and closed on loans with total aggregate gross proceeds of approximately
$88.1 million
. The loans had a weighted average maturity of
23 years
, carried a weighted average interest rate of
4.01%
per annum and were secured by
four
manufactured home properties and
two
RV resorts. Also, during the year ended December 31, 2016 we paid off
five
maturing mortgage loans of approximately
$41.8 million
, with a weighted average interest rate of
5.85%
per annum, secured by
three
manufactured home properties and
two
RV resorts. Finally, in connection with the Forest Lake Estates acquisition, we assumed approximately
$22.6 million
of mortgage debt secured by the manufactured home community, with a stated interest rate of
4.51%
per annum, which is set to mature in 2038.
2015 Activity
During the year ended December 31, 2015, we closed on
four
loans with total gross proceeds of
$395.3 million
. The loans had a weighted average maturity of
21
years, carried a weighted average interest rate of
3.93%
per annum and were secured by
26
manufactured home properties and RV resorts. Proceeds from the financings were used to retire by defeasance and prepayment approximately
$370.2 million
of loans maturing at various times throughout
2015
and
2016
, with a weighted average interest rate of
5.58%
per annum, which were secured by
32
manufactured home properties and RV resorts. We incurred approximately
$17.0 million
in early debt retirement expense related to these loans. We also paid off
two
maturing mortgage loans totaling approximately
$48.7 million
, with a weighted average interest rate of
5.73%
per annum, secured by
one
manufactured home property and
three
RV resorts.
F-24
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Second Amended and Restated Unsecured Credit Facility
During the year ended December 31, 2017, we entered into a Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) by and among us, Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”) and other lenders named therein, which amends and restates the terms of the obligations owed by us under the Amended, Restated and Consolidated Credit Agreement dated as of July 17, 2014 pursuant to which we have access to a
$400.0 million
unsecured line of credit (the “LOC”) and a
$200.0 million
senior unsecured term loan (the “Term Loan”). The LOC maturity date was extended to October 27, 2021, and this term can be extended an additional year in two six month increments, subject to certain conditions. In 2017, we incurred commitment and arrangement fees of approximately
$3.7 million
to enter into the LOC and extend the Term Loan.
Term Loan
As of
December 31, 2017
, our
$200.0 million
unsecured Term Loan (the "Term Loan") matures on
April 27, 2023
and has an interest rate of LIBOR plus
1.20%
to
1.90%
per annum and, subject to certain conditions, may be prepaid at any time without premium or penalty. The spread over LIBOR is variable quarterly based on leverage measured quarterly throughout the loan term. The Term Loan contains customary representations, warranties, and negative and affirmative covenants, and provides for acceleration of principal and payment of all other amounts payable thereunder upon the occurrence of certain events of default. In connection with the Term Loan, as amended under the Second Amended and Restated Credit Agreement, we also entered into a
three
year LIBOR Swap Agreement (the "2017 Swap") allowing us to trade the variable interest rate for a fixed interest rate on the Term Loan (see Note 9 to the Consolidated Financial Statements for further information on the accounting for the 2017 Swap).
As of
December 31, 2016
, our previous
$200.0 million
unsecured term loan under the Amended, Restated and Consolidated Credit Agreement, which had a maturity date of January 10, 2020 and an interest rate of LIBOR plus
1.35%
to
1.95%
per annum, could have been prepaid at any time without premium or penalty subject to certain conditions.
Unsecured Line of Credit
As of
December 31, 2017
, our unsecured LOC had a borrowing capacity of
$400.0 million
. The LOC has
$30.0 million
outstanding as of
December 31, 2017
and no amount outstanding under our previous line of credit as of
December 31, 2016
. The LOC bears interest at a rate of LIBOR plus
1.10%
to
1.55%
, requires an annual facility fee of
0.15%
to
0.35%
and matures on
October 27, 2021
, with an option to extend for an additional year in two six month increments, subject to certain conditions. The spread over LIBOR is variable quarterly based on leverage throughout the loan term.
As of
December 31, 2017
, we were in compliance in all material respects with the covenants in our borrowing arrangements.
The table below presents as of
December 31, 2017
, the aggregate scheduled payments of principal on long-term borrowings for each of the next five years and thereafter (amounts in thousands):
|
Year
|
Amount
|
||
|
2018
|
$
|
47,300
|
|
|
2019
|
241,158
|
|
|
|
2020
|
158,547
|
|
|
|
2021
|
248,414
|
|
|
|
2022
|
168,625
|
|
|
|
Thereafter
|
1,356,449
|
|
|
|
Net unamortized premiums
|
3,253
|
|
|
|
Unamortized deferred financing costs
|
(23,729
|
)
|
|
|
Total
|
$
|
2,200,017
|
|
F-25
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Cash Flow Hedges of Interest Rate Risk
As required by Codification Topic "Derivatives and Hedging" ("FASB ASC 815"), we record all derivatives on the balance sheet at fair value. Our objective in utilizing interest rate derivatives is to add stability to our interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in our exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
The effective portion of changes in the fair value of the designated derivative that qualifies as a cash flow hedge is recorded on the Consolidated Balance Sheets in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings on the Consolidated Statements of Income and Comprehensive Income in the period that the hedged forecasted transaction affects earnings. Any ineffective portion of the change in fair value of the derivative will be recognized directly in earnings.
Our previous Swap, entered into in 2014, matured during 2017. In connection with our Term Loan, we entered into the 2017 Swap (see Note 8 to the Consolidated Financial Statements for information about the Term Loan) allowing us to trade the variable interest rate for a fixed interest rate on the Term Loan. The 2017 Swap fixes the underlying LIBOR rate on the Term Loan at
1.85%
per annum for the first
three years
and matures on
November 1, 2020
. Based on the leverage as of
December 31, 2017
, our spread over LIBOR is
1.20%
resulting in an estimated all-in interest rate of
3.05%
per annum.
We have designated the 2017 Swap as a cash flow hedge. No gain or loss was recognized in the Consolidated Statements of Income and Comprehensive Income related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedge during the year ended
December 31, 2017
.
Additionally, no gain or loss was recognized in the Consolidated Statements of Income and Comprehensive Income related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedge during the years ended
December 31, 2017
,
2016
and
2015
on our previous interest rate swap that matured on August 1, 2017.
Amounts reported in accumulated other comprehensive loss on the Consolidated Balance Sheets related to derivatives are reclassified to interest expense as interest payments are made on our variable-rate debt. During the next
twelve
months, we estimate that an additional
$0.2 million
will be reclassified as a decrease to interest expense. This estimate may be subject to change as the underlying LIBOR rate changes.
The table below presents the fair value of our derivative financial instrument as well as our classification on our Consolidated Balance Sheets as of
December 31, 2017
and
2016
(amounts in thousands).
|
Balance Sheet Location
|
December 31,
2017 |
December 31,
2016 |
|||||||
|
Interest Rate Swap - 2017
|
Escrow deposits, goodwill and other assets, net
|
$
|
942
|
|
N/A
|
|
|||
|
Interest Rate Swap - 2014
|
Accrued expenses and accounts payable
|
N/A
|
|
$
|
227
|
|
|||
The table below presents the effect of our derivative financial instrument on the Consolidated Statements of Income and Comprehensive Income for the years ended
December 31, 2017
,
2016
and
2015
(amounts in thousands).
|
Derivatives in Cash Flow Hedging Relationship
|
Amount of (gain)/loss recognized
in OCI on derivative
(effective portion)
|
Location of loss
reclassified from
accumulated OCI into income
(effective portion) |
Amount of loss reclassified from
accumulated OCI into income (effective
portion)
|
||||||||||||||||||||||
|
December 31,
2017 |
December 31,
2016 |
December 31,
2015 |
December 31,
2017 |
December 31,
2016 |
December 31,
2015 |
||||||||||||||||||||
|
Interest Rate Swap
|
$
|
(869
|
)
|
$
|
813
|
|
$
|
1,900
|
|
Interest Expense
|
$
|
300
|
|
$
|
1,139
|
|
$
|
1,728
|
|
||||||
We determined that no adjustment was necessary for non-performance risk on our derivative obligation. As of
December 31, 2017
, we have not posted any collateral related to this agreement.
F-26
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
As of
December 31, 2017
and
2016
, the components of the change in deferred revenue-entry of right-to-use contracts and deferred commission expense are as follows (amounts in thousands):
|
December 31,
|
||||||||
|
|
2017
|
2016
|
||||||
|
Deferred revenue—upfront payments from right-to-use contracts, as of January 1,
|
$
|
81,484
|
|
$
|
78,405
|
|
||
|
Right-to-use contracts current period, gross
|
14,132
|
|
12,327
|
|
||||
|
Revenue recognized from right-to-use contract upfront payments
|
(10,020
|
)
|
(9,248
|
)
|
||||
|
Right-to-use contract upfront payments, deferred, net
|
4,112
|
|
3,079
|
|
||||
|
Deferred revenue—upfront payments from right-to-use contracts, as of December 31,
|
$
|
85,596
|
|
$
|
81,484
|
|
||
|
Deferred commission expense, as of January 1,
|
$
|
31,375
|
|
$
|
30,865
|
|
||
|
Deferred commission expense
|
4,577
|
|
4,659
|
|
||||
|
Commission expense recognized
|
(4,509
|
)
|
(4,149
|
)
|
||||
|
Net increase in deferred commission expense
|
68
|
|
510
|
|
||||
|
Deferred commission expense, as of December 31,
|
$
|
31,443
|
|
$
|
31,375
|
|
||
The leases entered into between the customer and us for the rental of a Site are generally month-to-month or for a period of
one
to
ten years
, renewable upon the consent of the parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenant are in effect at certain Sites for
24
of the Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. At
December 31, 2017
, future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases are as follows (amounts in thousands):
|
Year
|
Amount
|
||
|
2018
|
$
|
106,578
|
|
|
2019
|
105,698
|
|
|
|
2020
|
66,108
|
|
|
|
2021
|
12,635
|
|
|
|
2022
|
11,920
|
|
|
|
Thereafter
|
36,674
|
|
|
|
Total
|
$
|
339,613
|
|
We have operating leases covering our office space expiring at various dates through
2023
. As leases expire, it can be expected that certain leases will be renewed or replaced in the normal course of business. We also lease land under non-cancelable operating leases at certain of the Properties expiring in various years from
2018
to
2054
. The majority of the lease terms require
twelve
equal payments per year plus additional rents calculated as a percentage of gross revenues. For the years ended
December 31, 2017
,
2016
, and
2015
total operating lease payments for office space and rent due under ground leases, aggregated
$3.9 million
,
$3.9 million
and
$3.8 million
, respectively. The following table summarizes our minimum future rental payments under our operating leases as of
December 31, 2017
(amounts in thousands):
|
|
||||||||||||||||||||||||||||
|
Total
|
2018
|
2019
|
2020
|
2021
|
2022
|
Thereafter
|
||||||||||||||||||||||
|
Office Rent Lease
|
$
|
8,354
|
|
$
|
2,221
|
|
$
|
2,062
|
|
$
|
2,011
|
|
$
|
1,711
|
|
$
|
200
|
|
$
|
149
|
|
|||||||
|
Ground Lease
|
15,655
|
|
2,022
|
|
2,028
|
|
2,030
|
|
2,033
|
|
1,533
|
|
6,009
|
|
||||||||||||||
|
Total Operating Leases
|
$
|
24,009
|
|
$
|
4,243
|
|
$
|
4,090
|
|
$
|
4,041
|
|
$
|
3,744
|
|
$
|
1,733
|
|
$
|
6,158
|
|
|||||||
F-27
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Corporate Headquarters
We lease office space from Two North Riverside Plaza Joint Venture Limited Partnership, an entity affiliated with Samuel Zell, Chairman of our Board of Directors. Payments made in accordance with the lease agreement to this entity amounted to approximately
$1.4 million
for each of the years ended
December 31, 2017
,
2016
and
2015
.
We follow Codification Topic "Stock Compensation" ("FASB ASC 718") in accounting for our share-based payments. This guidance requires measurement of the cost of employee services received in exchange for stock compensation based on the grant-date fair value of the employee stock awards. This cost is recognized as compensation expense ratably over the employee's requisite service period. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized when incurred. We use the Black-Scholes-Merton formula to estimate the value of stock options granted to employees, consultants and directors.
Our 2014 Equity Incentive Plan (the "2014 Plan") was adopted by our Board of Directors on March 11, 2014 and approved by our stockholders on May 13, 2014. Pursuant to the 2014 Plan, our officers, directors, employees and consultants may be awarded (i) shares of common stock ("Restricted Stock Grants"), (ii) options to acquire shares of common stock ("Options"), including non-qualified stock options and incentive stock options within the meaning of Section 422 of the Internal Revenue Code, and (iii) other forms of equity awards subject to conditions and restrictions determined by the Compensation, Nominating, and Corporate Governance Committee of our Board of Directors (the "Compensation Committee"). The Compensation Committee will determine the vesting schedule, if any, of each Restricted Stock Grant or Option and the term of each Option, which term shall not exceed
ten
years from the date of grant. Shares that do not vest are forfeited. Dividends paid on restricted stock are not returnable, even if the underlying stock does not entirely vest. A maximum of
3,750,000
shares of common stock are available for grant under the 2014 Plan. As of
December 31, 2017
,
3,126,698
shares remained available for grant.
Grants under the 2014 Plan are made by the Compensation Committee, which determines the individuals eligible to receive awards, the types of awards, and the terms, conditions and restrictions applicable to any award, except grants to directors which are made by the Board of Directors.
Grants Issued
On
October 31, 2017
, we awarded a Restricted Stock Grant for
188
shares of common stock at a fair market value of $
16,634
to a new member of our Board of Directors for services as Director rendered for the remainder of
2017
. One-third of the shares of restricted common stock covered by this award will vest on each of
April 30, 2018
,
October 31, 2018
, and
October 31, 2019
.
On
May 2, 2017
, we awarded Restricted Stock Grants for
55,238
shares of common stock at a fair market value of approximately
$4.5 million
and awarded Options to purchase
6,930
shares of common stock with an exercise price of
$81.15
per share to certain members of our Board of Directors. The shares of common stock covered by these awards are subject to multiple tranches that vest or have vested between
November 2, 2017
and as late as
May 2, 2020
.
On
February 1, 2017
, we awarded Restricted Stock Grants for
75,000
shares of common stock at a fair market value of approximately
$5.4 million
to certain members of our senior management for their service in 2017. These Restricted Stock Grants vested on December, 31 2017.
During the year ended December 31, 2016, we awarded Restricted Stock Grants for
133,717
shares of common stock at a fair market value of approximately
$9.1 million
to certain members of our senior management and Board of Directors for services rendered during 2016 and awarded Options to purchase
7,550
shares of common stock with an exercise price of
$74.53
per share to certain members of our Board of Directors. Senior management Restricted Stock Grants vested on December 31, 2016, while Board of Director Restricted Stock Grants are subject to multiple tranches that vest or have vested between November 10, 2016 and May 10, 2019.
During the year ended
December 31, 2015
, we awarded Restricted Stock Grants for
158,014
shares of common stock at a fair market value of approximately
$8.6 million
to certain members of our senior management and Board of Directors for services rendered during 2015. Senior management Restricted Stock Grants vested on
December 31, 2015
, while Board of Director
F-28
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 14— Equity Incentive Awards (continued)
Restricted Stock Grants were subject to multiple tranches that vested between November 12, 2015 and December 31, 2017.
The fair market value of our restricted stock grants is recorded as compensation expense and paid in capital over the vesting period.
Stock-based compensation expense, reported in "General and administrative" on the Consolidated Statements of Income and Comprehensive Income, for the years ended
December 31, 2017
,
2016
and
2015
was approximately
$9.4 million
,
$9.2 million
, and
$8.6 million
, respectively.
A summary of our restricted stock activity, and related information for the years ended
December 31, 2017
,
2016
, and
2015
follows:
|
Number of Shares
|
Weighted Average Grant Date Fair Value
|
|||
|
Balance at December 31, 2014
|
102,225
|
|
41.09
|
|
|
Shares granted
|
158,014
|
|
54.68
|
|
|
Shares vested
|
(174,739
|
)
|
49.17
|
|
|
Balance at December 31, 2015
|
85,500
|
|
49.72
|
|
|
Shares granted
|
133,717
|
|
68.21
|
|
|
Shares vested
|
(153,610
|
)
|
59.85
|
|
|
Balance at December 31, 2016
|
65,607
|
|
63.68
|
|
|
Shares granted
|
130,426
|
|
76.25
|
|
|
Shares forfeited
|
(990
|
)
|
80.54
|
|
|
Shares vested
|
(125,271
|
)
|
68.79
|
|
|
Balance at December 31, 2017
|
69,772
|
|
77.77
|
|
Compensation expense to be recognized subsequent to
December 31, 2017
for Restricted Stock Grants issued during or prior to
2017
that have not yet vested was approximately
$4.4 million
, which is expected to be recognized over a weighted average term of
1.1
years.
Stock Options
The fair value of each grant is estimated on the grant date using the Black-Scholes-Merton model. The following table includes the assumptions that were made and the estimated fair values:
|
2017
|
||||
|
Dividend Yield
|
2.4
|
%
|
||
|
Risk-free interest rate
|
1.9
|
%
|
||
|
Expected Life
|
5.5 years
|
|
||
|
Expected Volatility
|
17.8
|
%
|
||
|
Estimated Grant Date Fair Value of Options
|
$
|
76,230
|
|
|
For the years ended
December 31, 2017
and
December 31, 2016
,
6,930
and
7,550
options were granted, respectively, to our board members. No options were issued during the year ended December 31,
2015
. No options were forfeited or expired during the years ended
December 31, 2017
,
2016
, and
2015
.
F-29
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
A summary of our stock option activity, and related information for the years ended
December 31, 2017
,
2016
and
2015
follows:
|
Shares Subject To
Options
|
Weighted Average
Exercise Price Per Share
|
Weighted Average
Outstanding
Contractual Life
(in years)
|
|||||||
|
Balance at December 31, 2014
|
1,085,600
|
|
$
|
21.95
|
|
2.1
|
|||
|
Options exercised
|
(220,000
|
)
|
17.35
|
|
|||||
|
Balance at December 31, 2015
|
865,600
|
|
23.12
|
|
1.6
|
||||
|
Options issued
|
7,550
|
|
10.70
|
|
|||||
|
Options exercised
|
(440,000
|
)
|
25.66
|
|
|||||
|
Balance at December 31, 2016
|
433,150
|
|
21.44
|
|
1.7
|
||||
|
Options issued
|
6,930
|
|
11.00
|
|
|||||
|
Options exercised
|
(220,000
|
)
|
22.05
|
|
|||||
|
Balance at December 31, 2017
|
220,080
|
|
18.32
|
|
1.5
|
||||
|
Exercisable at December 31, 2017
|
212,966
|
|
20.84
|
|
1.4
|
||||
The intrinsic value of outstanding and exercisable stock options represents the excess of the closing stock price as of the end of the year, over the exercise price multiplied by the applicable number of shares that may be acquired upon exercise of stock options. The intrinsic value of exercised options for the year ending
December 31, 2017
,
2016
and 2015 was
$13.9 million
,
$18.3 million
and
$8.6 million
, respectively. At
December 31, 2017
,
2016
and
2015
, the intrinsic value of outstanding and exercisable options was
$14.5 million
,
$22.0 million
and
$37.7 million
, respectively.
Our Board of Directors is authorized under our charter, without further stockholder approval, to issue, from time to time, in one or more series,
10,000,000
shares of
$0.01
par value preferred stock (the "Preferred Stock"), with specific rights, preferences and other attributes as the Board may determine, which may include preferences, powers and rights that are senior to the rights of holders of our common stock. However, under certain circumstances, the issuance of preferred stock may require stockholder approval pursuant to the rules and regulations of The New York Stock Exchange.
We account for the Preferred Stock in accordance with the Codification Topic
"Distinguishing Liabilities from Equity—SEC Materials"
("FASB ASC 480-10-S99"). Holders of the
6.75%
Series C Cumulative Redeemable Perpetual Preferred Stock (the "Series C Preferred Stock") have certain preference rights with respect to the common stock and the Series C Preferred Stock is classified as redeemable interests inside of permanent equity on our Consolidated Balance Sheet due to the right of holders to convert such stock into common stock in certain circumstances involving a change of our control.
During the year ended December 31, 2017, we redeemed our
6.75%
Series C Preferred Stock for
$138.4 million
, including accrued dividends. The shares of Series C Preferred Stock that were redeemed now have the status of authorized but unissued preferred stock, without designation as to class or series. There were no shares of
6.75%
Series C Preferred Stock issued or outstanding as of December 31, 2017. In connection with the redemption, we recorded expense of
$0.8 million
for the original issuance costs associated with the Series C Preferred Stock.
F-30
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
The following quarterly distributions have been declared and paid to our preferred stockholders since January 1,
2015
and prior to the stock's redemption, which occurred in September 2017:
|
Distribution
Amount Per
Share
|
|
For the Quarter Ending
|
|
Stockholder Record
Date
|
|
Payment Date
|
|
$0.421875
|
|
March 31, 2015
|
|
March 20, 2015
|
March 31, 2015
|
|
|
$0.421875
|
|
June 30, 2015
|
|
June 19, 2015
|
June 30, 2015
|
|
|
$0.421875
|
|
September 30, 2015
|
|
September 18, 2015
|
September 30, 2015
|
|
|
$0.421875
|
|
December 31, 2015
|
|
December 11, 2015
|
December 31, 2015
|
|
|
$0.421875
|
March 31, 2016
|
March 21, 2016
|
March 31, 2016
|
|||
|
$0.421875
|
June 30, 2016
|
June 17, 2016
|
June 30, 2016
|
|||
|
$0.421875
|
September 30, 2016
|
September 16, 2016
|
September 30, 2016
|
|||
|
$0.421875
|
December 31, 2016
|
December 15, 2016
|
December 31, 2016
|
|||
|
$0.421875
|
March 31, 2017
|
March 10, 2017
|
March 31, 2017
|
|||
|
$0.421875
|
June 30, 2017
|
June 15, 2017
|
June 30, 2017
|
|||
|
$0.421875
|
September 30, 2017
|
September 15, 2017
|
October 2, 2017
|
|||
2016 LTIP
On February 12, 2016, our Compensation Committee approved a Long-Term Cash Incentive Plan Award (the "2016 LTIP") to provide a long-term cash bonus opportunity to certain members of our management. The 2016 LTIP was approved by the Compensation Committee pursuant to the authority set forth in the Long Term Cash Incentive Plan approved by our Board of Directors on May 15, 2007. The total cumulative payment for all participants (the "Eligible Payment") is based upon certain performance conditions being met over a three year period ending December 31, 2018.
The Compensation Committee has responsibility for administering the 2016 LTIP and may use its reasonable discretion to adjust the performance criteria or Eligible Payments to take into account the impact of any major or unforeseen transaction or event. Our named executive officers are not participants in the 2016 LTIP. The Eligible Payment will be paid, at the discretion of our compensation committee, in cash upon completion of our annual audit for the 2018 fiscal year and upon satisfaction of the vesting conditions as outlined in the 2016 LTIP, including employer costs, is currently estimated to be approximately
$4.7 million
. For the year ended December 31, 2017 and 2016, we had accrued compensation expense of approximately
$1.3 million
and
$1.9 million
, respectively.
2013 LTIP
On January 24, 2013, our Compensation Committee approved a Long-Term Cash Incentive Plan Award (the "2013 LTIP") to provide a long-term cash bonus opportunity to certain members of our management. Such Board approval was upon recommendation of the Committee. As of December 31, 2015, we had accrued compensation expense of approximately
$4.8 million
. On February 12, 2016 the Compensation Committee approved payments under the 2013 LTIP of approximately
$4.8 million
to the participants, including employer costs.
We have a qualified retirement plan, with a salary deferral feature designed to qualify under Section 401 of the Code (the "401(k) Plan"), to cover our employees and those of our Subsidiaries, if any. The 401(k) Plan permits our eligible employees and those of any Subsidiary to defer up to
60.0%
of their eligible compensation on a pre-tax basis subject to certain maximum amounts. In addition, we will match
100.0%
of the participant's contribution up to the first
3.0%
and then
50.0%
of the next
2.0%
for a maximum potential match of
4.0%
. Employee's and our matching contributions will vest immediately.
Our contribution to the 401(k) Plan was approximately
$1.5 million
,
$1.4 million
and
$1.3 million
for the years ended
December 31, 2017
,
2016
and
2015
, respectively.
F-31
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Hurricane Irma
In September 2017 Hurricane Irma impacted our Florida properties. We recognized expense of
$8.0 million
during the year ended December 31, 2017 related to debris removal and cleanup following Hurricane Irma included in Property operating and maintenance expense in the Consolidated Statement of Income. In addition, during the year ended December 31, 2017, we recorded insurance recovery revenue of
$7.7 million
included in Utility and other income and
$1.3 million
included in Income from other investments, net in the Consolidated Statement of Income. The insurance recovery revenue includes insurance proceeds received as a result of our first claim submission.
Civil Investigation by Certain California District Attorneys
In November 2014, we received a civil investigative subpoena from the office of the District Attorney for Monterey County, California ("MCDA"), seeking information relating to, among other items, statewide compliance with asbestos and hazardous waste regulations dating back to 2005 primarily in connection with demolition and renovation projects performed by third-party contractors at our California Properties. We responded by providing the information required by the subpoena.
On October 20, 2015, we attended a meeting with representatives of the MCDA and certain other District Attorneys' offices at which the MCDA reviewed the preliminary results of their investigation including, among other things, (i) alleged violations of asbestos and related regulations associated with approximately
200
historical demolition and renovation projects in California;
(ii) potential exposure to civil penalties and unpaid fees; and (iii) next steps with respect to a negotiated resolution of the alleged violations. No legal proceedings have been instituted to date and we are involved in settlement discussions with the District Attorneys' offices. We continue to assess the allegations and the underlying facts, and at this time we are unable to predict the outcome of the investigation or reasonably estimate any possible loss.
Other
In addition to legal matters discussed above, we are involved in various other legal and regulatory proceedings ("Other Proceedings") arising in the ordinary course of business. The Other Proceedings include, but are not limited to, notices, consent decrees, information requests, and additional permit requirements and other similar enforcement actions by governmental agencies relating to our utility infrastructure, including water and wastewater treatment plants and other waste treatment facilities and electrical systems. Additionally, in the ordinary course of business, our operations are subject to audit by various taxing authorities. Management believes these Other Proceedings taken together do not represent a material liability. In addition, to the extent any such proceedings or audits relate to newly acquired Properties, we consider any potential indemnification obligations of sellers in our favor.
F-32
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Operating segments are defined as components of an entity for which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"). The CODM evaluates and assesses performance on a monthly basis. Segment operating performance is measured on Net Operating Income ("NOI"). NOI is defined as total operating revenues less total operating expenses. Segments are assessed before interest income, depreciation and amortization of in-place leases.
We have identified
two
reportable segments: (i) Property Operations and (ii) Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease Properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the Properties. The distribution of the Properties throughout the United States reflects our belief that geographic diversification helps insulate the portfolio from regional economic influences.
All revenues are from external customers and there is no customer who contributed 10% or more of our total revenues during the three years ended
December 31, 2017
,
2016
and
2015
. The following tables summarize our segment financial information (amounts in thousands):
|
Year Ended December 31, 2017
|
|||||||||||
|
Property
Operations
|
Home Sales
and Rentals
Operations
|
Consolidated
|
|||||||||
|
Operations revenues
|
$
|
859,582
|
|
$
|
52,355
|
|
$
|
911,937
|
|
||
|
Operations expenses
|
(411,465
|
)
|
(47,309
|
)
|
(458,774
|
)
|
|||||
|
Income from segment operations
|
448,117
|
|
5,046
|
|
453,163
|
|
|||||
|
Interest income
|
3,048
|
|
4,192
|
|
7,240
|
|
|||||
|
Depreciation on real estate assets and rental homes
|
(110,841
|
)
|
(10,614
|
)
|
(121,455
|
)
|
|||||
|
Amortization of in-place leases
|
(2,231
|
)
|
—
|
|
(2,231
|
)
|
|||||
|
Income (loss) from operations
|
$
|
338,093
|
|
$
|
(1,376
|
)
|
336,717
|
|
|||
|
Reconciliation to Consolidated net income
|
|||||||||||
|
Corporate interest income
|
340
|
|
|||||||||
|
Income from other investments, net
|
5,795
|
|
|||||||||
|
General and administrative
|
(31,737
|
)
|
|||||||||
|
Early debt retirement
|
(2,785
|
)
|
|||||||||
|
Other expenses, including property rights initiatives
|
(1,148
|
)
|
|||||||||
|
Interest and related amortization
|
(100,570
|
)
|
|||||||||
|
Equity in income of unconsolidated joint ventures
|
3,765
|
|
|||||||||
|
Consolidated net income
|
$
|
210,377
|
|
||||||||
|
Total assets
|
$
|
3,386,084
|
|
$
|
223,948
|
|
$
|
3,610,032
|
|
||
|
Capital improvements
|
$
|
76,112
|
|
$
|
49,938
|
|
$
|
126,050
|
|
||
F-33
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Note 19—Reportable Segments (continued)
|
Year Ended December 31, 2016
|
|||||||||||
|
Property
Operations
|
Home Sales
and Rentals
Operations
|
Consolidated
|
|||||||||
|
Operations revenues
|
$
|
803,784
|
|
$
|
52,496
|
|
$
|
856,280
|
|
||
|
Operations expenses
|
(379,201
|
)
|
(47,914
|
)
|
(427,115
|
)
|
|||||
|
Income from segment operations
|
424,583
|
|
4,582
|
|
429,165
|
|
|||||
|
Interest income
|
2,894
|
|
3,888
|
|
6,782
|
|
|||||
|
Depreciation on real estate assets and rental homes
|
(106,560
|
)
|
(10,840
|
)
|
(117,400
|
)
|
|||||
|
Amortization of in-place leases
|
(3,373
|
)
|
—
|
|
(3,373
|
)
|
|||||
|
Income (loss) from operations
|
$
|
317,544
|
|
$
|
(2,370
|
)
|
315,174
|
|
|||
|
Reconciliation to Consolidated net income
|
|||||||||||
|
Corporate interest income
|
63
|
|
|||||||||
|
Income from other investments, net
|
7,310
|
|
|||||||||
|
General and administrative
|
(31,004
|
)
|
|||||||||
|
Other expenses, including property rights initiatives
|
(4,986
|
)
|
|||||||||
|
Interest and related amortization
|
(102,030
|
)
|
|||||||||
|
Equity in income of unconsolidated joint ventures
|
2,605
|
|
|||||||||
|
Consolidated net income
|
$
|
187,132
|
|
||||||||
|
Total assets
|
$
|
3,250,205
|
|
$
|
228,782
|
|
$
|
3,478,987
|
|
||
|
Capital improvements
|
$
|
57,825
|
|
$
|
61,612
|
|
$
|
119,437
|
|
||
|
Year Ended December 31, 2015
|
|||||||||||
|
Property
Operations
|
Home Sales
and Rentals
Operations
|
Consolidated
|
|||||||||
|
Operations revenues
|
$
|
758,834
|
|
$
|
48,431
|
|
$
|
807,265
|
|
||
|
Operations expenses
|
(360,353
|
)
|
(42,637
|
)
|
(402,990
|
)
|
|||||
|
Income from segment operations
|
398,481
|
|
5,794
|
|
404,275
|
|
|||||
|
Interest income
|
2,813
|
|
4,119
|
|
6,932
|
|
|||||
|
Depreciation on real estate assets and rental homes
|
(102,747
|
)
|
(10,862
|
)
|
(113,609
|
)
|
|||||
|
Amortization of in-place leases
|
(2,358
|
)
|
—
|
|
(2,358
|
)
|
|||||
|
Income from operations
|
$
|
296,189
|
|
$
|
(949
|
)
|
295,240
|
|
|||
|
Reconciliation to Consolidated net income
|
|||||||||||
|
Corporate interest income
|
98
|
|
|||||||||
|
Income from other investments, net
|
7,359
|
|
|||||||||
|
General and administrative
|
(30,644
|
)
|
|||||||||
|
Other expenses, including property rights initiatives
|
(2,986
|
)
|
|||||||||
|
Early debt retirement
|
(16,913
|
)
|
|||||||||
|
Interest and related amortization
|
(105,731
|
)
|
|||||||||
|
Equity in income of unconsolidated joint ventures
|
4,089
|
|
|||||||||
|
Consolidated net income
|
$
|
150,512
|
|
||||||||
|
Total assets
|
$
|
3,158,559
|
|
$
|
241,841
|
|
$
|
3,400,400
|
|
||
|
Capital improvements
|
$
|
51,369
|
|
$
|
42,430
|
|
$
|
93,799
|
|
||
F-34
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
The following table summarizes our financial information for the Property Operations segment for the years ended
December 31, 2017
,
2016
, and
2015
(amounts in thousands):
|
|
||||||||||||
|
Years Ended December 31,
|
||||||||||||
|
2017
|
2016
|
2015
|
||||||||||
|
Revenues:
|
||||||||||||
|
Community base rental income
|
$
|
489,613
|
|
$
|
464,745
|
|
$
|
442,046
|
|
|||
|
Resort base rental income
|
218,806
|
|
201,533
|
|
184,760
|
|
||||||
|
Right-to-use annual payments
|
45,798
|
|
45,035
|
|
44,443
|
|
||||||
|
Right-to-use contracts current period, gross
|
14,132
|
|
12,327
|
|
12,783
|
|
||||||
|
Right-to-use contract upfront payments, deferred, net
|
(4,108
|
)
|
(3,079
|
)
|
(4,231
|
)
|
||||||
|
Utility income and other
|
93,252
|
|
81,427
|
|
76,153
|
|
||||||
|
Ancillary services revenues, net
|
2,089
|
|
1,796
|
|
2,880
|
|
||||||
|
Total property operations revenues
|
859,582
|
|
803,784
|
|
758,834
|
|
||||||
|
Expenses:
|
||||||||||||
|
Property operating and maintenance
|
294,119
|
|
268,249
|
|
254,668
|
|
||||||
|
Real estate taxes
|
55,010
|
|
53,036
|
|
50,962
|
|
||||||
|
Sales and marketing, gross
|
11,438
|
|
11,056
|
|
11,751
|
|
||||||
|
Right-to-use contract commissions, deferred, net
|
(354
|
)
|
(223
|
)
|
(1,556
|
)
|
||||||
|
Property management
|
51,252
|
|
47,083
|
|
44,528
|
|
||||||
|
Total property operations expenses
|
411,465
|
|
379,201
|
|
360,353
|
|
||||||
|
Income from property operations segment
|
$
|
448,117
|
|
$
|
424,583
|
|
$
|
398,481
|
|
|||
The following table summarizes our financial information for the Home Sales and Rentals Operations segment, specific to continuing operations, for the years ended
December 31, 2017
,
2016
and
2015
(amounts in thousands):
|
Years Ended December 31,
|
||||||||||||
|
2017
|
2016
|
2015
|
||||||||||
|
Revenues:
|
||||||||||||
|
Gross revenue from home sales
|
$
|
36,302
|
|
$
|
37,191
|
|
$
|
33,150
|
|
|||
|
Brokered resale revenues, net
|
1,235
|
|
1,198
|
|
1,269
|
|
||||||
|
Rental home income
(1)
|
14,344
|
|
14,107
|
|
14,012
|
|
||||||
|
Ancillary services revenues, net
|
474
|
|
—
|
|
—
|
|
||||||
|
Total revenues
|
52,355
|
|
52,496
|
|
48,431
|
|
||||||
|
Expenses:
|
||||||||||||
|
Cost of home sales
|
36,513
|
|
37,456
|
|
32,279
|
|
||||||
|
Home selling expenses
|
4,186
|
|
3,575
|
|
3,191
|
|
||||||
|
Rental home operating and maintenance
|
6,610
|
|
6,883
|
|
7,167
|
|
||||||
|
Total expenses
|
47,309
|
|
47,914
|
|
42,637
|
|
||||||
|
Income from home sales and rentals operations segment
|
$
|
5,046
|
|
$
|
4,582
|
|
$
|
5,794
|
|
|||
_________________________
|
(1)
|
Segment information does not include Site rental income included in Community base rental income.
|
F-35
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
The following is unaudited quarterly data for
2017
and
2016
(amounts in thousands, except per share amounts):
|
2017
|
First
Quarter 3/31 |
Second
Quarter 6/30 |
Third
Quarter 9/30 |
Fourth
Quarter 12/31 |
||||||||||||
|
Total revenues
|
$
|
232,389
|
|
$
|
221,312
|
|
$
|
241,625
|
|
$
|
229,986
|
|
||||
|
Income from operations
|
$
|
93,636
|
|
$
|
75,865
|
|
$
|
84,824
|
|
$
|
82,392
|
|
||||
|
Consolidated net income
|
$
|
63,075
|
|
$
|
44,463
|
|
$
|
54,865
|
|
$
|
47,974
|
|
||||
|
Net income available for Common Stockholders
|
$
|
56,888
|
|
$
|
39,498
|
|
$
|
48,525
|
|
$
|
44,993
|
|
||||
|
Basic weighted average Common Shares
|
86,048
|
|
86,763
|
|
87,037
|
|
88,115
|
|
||||||||
|
Diluted weighted average Common Shares
|
93,011
|
|
93,063
|
|
93,324
|
|
94,295
|
|
||||||||
|
Earnings income per Common Share outstanding—Basic
|
$
|
0.66
|
|
$
|
0.46
|
|
$
|
0.56
|
|
$
|
0.51
|
|
||||
|
Earnings per Common Share outstanding—Diluted
|
$
|
0.65
|
|
$
|
0.45
|
|
$
|
0.56
|
|
$
|
0.51
|
|
||||
|
2016
|
First
Quarter 3/31 |
Second
Quarter 6/30 |
Third
Quarter 9/30 |
Fourth
Quarter 12/31 |
||||||||||||
|
Total revenues
|
$
|
220,147
|
|
$
|
210,081
|
|
$
|
226,165
|
|
$
|
214,042
|
|
||||
|
Income from operations
|
$
|
88,257
|
|
$
|
72,090
|
|
$
|
77,628
|
|
$
|
77,199
|
|
||||
|
Consolidated net income
|
$
|
57,190
|
|
$
|
40,804
|
|
$
|
46,757
|
|
$
|
42,381
|
|
||||
|
Net income available for Common Stockholders
|
$
|
50,583
|
|
$
|
35,490
|
|
$
|
40,998
|
|
$
|
36,966
|
|
||||
|
Basic weighted average Common Shares
|
84,321
|
|
84,516
|
|
85,105
|
|
85,163
|
|
||||||||
|
Diluted weighted average Common Shares
|
92,041
|
|
92,264
|
|
92,910
|
|
92,965
|
|
||||||||
|
Earnings per Common Share outstanding—Basic
|
$
|
0.60
|
|
$
|
0.42
|
|
$
|
0.48
|
|
$
|
0.43
|
|
||||
|
Earnings per Common Share outstanding—Diluted
|
$
|
0.60
|
|
$
|
0.42
|
|
$
|
0.48
|
|
$
|
0.43
|
|
||||
F-36
Equity LifeStyle Properties, Inc.
Notes to Consolidated Financial Statements
Hurricane Irma
In February 2018, the Company received proofs of loss from our insurance carriers on our second submission for advance payment of insurance proceeds related to Hurricane Irma for
$7.7 million
, including business interruption, of which
$3.5 million
will be recognized as revenue in the first quarter of 2018.
Borrowing Activity
On February 15, 2018, we closed on one loan with gross proceeds of approximately
$64.0 million
. The loan has a maturity of
20
years, carries an interest rate of
4.83%
per annum, and is secured by
two
RV resorts. A portion of the proceeds were used to repay the outstanding balance on the line of credit.
Equity Incentive Awards
On January 29, 2018, the Compensation, Nominating and Corporate Governance Committee (the “Compensation Committee”) of the Board of Directors approved the 2018 Restricted Stock Award Program (the “2018 Restricted Stock Award Program”) for certain members of our senior management pursuant to the authority set forth in the Company’s 2014 Equity Incentive Plan.
The 2018 Restricted Stock Award Program provides for restricted stock awards for certain members of our senior management with a
three
-year vesting period (the “2018 Awards”), with one-third vesting on December 28, 2018 and the remaining two-thirds vesting on each of December 28, 2019 and December 28, 2020, respectively (the “Extended Vesting Portion”). One-half of the Extended Vesting Portion of the 2018 Awards provide soley for time-based vesting and will vest in equal installments on December 28, 2019 and December 28, 2020. The remaining one-half of the Extended Vesting Portion of the 2018 Awards provide for performance-based vesting and will vest, subject to the satisfaction of the performance conditions to be established by the Compensation Committee, in equal installments on December 28, 2019 and December 28, 2020. On February 1, 2018, we awarded Restricted Stock Grants for
70,250
shares of common stock at a fair market value of approximately
$5.9 million
to certain members of our senior management.
Certain members of our senior management also received a one-time transition award of time-based restricted stock (the “Transition Awards”) as a transition from our prior practice of granting annual restricted stock awards which vested in full on December 31 of the relevant grant year. These Transition Awards are intended to mitigate the impact of a reduction in the realized pay for certain members of our senior management in 2018 and 2019 resulting from the
three
-year vesting period for the 2018 Awards. Two-thirds of each Transition Award will vest on December 28, 2018, and the remaining one-third will vest on December 28, 2019. The Transition Awards are not subject to performance goals. The Compensation Committee does not view these awards as a continuing feature of the 2018 Restricted Stock Award Program, and there is no intent to replicate these Transition Awards in future years. On February 1, 2018, we awarded Transition Awards for
70,250
shares of common stock at a fair market value of approximately
$5.9 million
to certain members of our senior management.
F-37
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Properties Held for Long Term
|
||||||||||||||||||||||||||||||||||||||||||
|
Hidden Cove
|
Arley
|
AL
|
$
|
—
|
|
$
|
212
|
|
$
|
610
|
|
$
|
—
|
|
$
|
157
|
|
$
|
212
|
|
$
|
767
|
|
$
|
979
|
|
$
|
(286
|
)
|
2006
|
||||||||||||
|
Apache East
|
Apache Junction
|
AZ
|
(5,262
|
)
|
2,236
|
|
4,181
|
|
—
|
|
111
|
|
2,236
|
|
4,292
|
|
6,528
|
|
(1,149
|
)
|
2011
|
|||||||||||||||||||||
|
Apollo Village
|
Phoenix
|
AZ
|
—
|
|
932
|
|
3,219
|
|
—
|
|
1,665
|
|
932
|
|
4,884
|
|
5,816
|
|
(3,367
|
)
|
1994
|
|||||||||||||||||||||
|
Araby
|
Yuma
|
AZ
|
(3,019
|
)
|
1,440
|
|
4,345
|
|
—
|
|
1,008
|
|
1,440
|
|
5,353
|
|
6,793
|
|
(2,402
|
)
|
2003
|
|||||||||||||||||||||
|
Cactus Gardens
|
Yuma
|
AZ
|
(6,503
|
)
|
1,992
|
|
5,984
|
|
—
|
|
479
|
|
1,992
|
|
6,463
|
|
8,455
|
|
(2,880
|
)
|
2004
|
|||||||||||||||||||||
|
Capri RV
|
Yuma
|
AZ
|
—
|
|
1,595
|
|
4,774
|
|
—
|
|
366
|
|
1,595
|
|
5,140
|
|
6,735
|
|
(1,948
|
)
|
2006
|
|||||||||||||||||||||
|
Carefree Manor
|
Phoenix
|
AZ
|
—
|
|
706
|
|
3,040
|
|
—
|
|
935
|
|
706
|
|
3,975
|
|
4,681
|
|
(2,482
|
)
|
1998
|
|||||||||||||||||||||
|
Casa del Sol East II
|
Glendale
|
AZ
|
(4,074
|
)
|
2,103
|
|
6,283
|
|
—
|
|
3,164
|
|
2,103
|
|
9,447
|
|
11,550
|
|
(4,729
|
)
|
1996
|
|||||||||||||||||||||
|
Casa del Sol East III
|
Glendale
|
AZ
|
—
|
|
2,450
|
|
7,452
|
|
—
|
|
1,004
|
|
2,450
|
|
8,456
|
|
10,906
|
|
(5,275
|
)
|
1998
|
|||||||||||||||||||||
|
Casa del Sol West I
|
Peoria
|
AZ
|
—
|
|
2,215
|
|
6,467
|
|
—
|
|
2,427
|
|
2,215
|
|
8,894
|
|
11,109
|
|
(4,894
|
)
|
1996
|
|||||||||||||||||||||
|
Casita Verde RV
|
Casa Grande
|
AZ
|
—
|
|
719
|
|
2,179
|
|
—
|
|
177
|
|
719
|
|
2,356
|
|
3,075
|
|
(898
|
)
|
2006
|
|||||||||||||||||||||
|
Central Park
|
Phoenix
|
AZ
|
(12,975
|
)
|
1,612
|
|
3,784
|
|
—
|
|
1,792
|
|
1,612
|
|
5,576
|
|
7,188
|
|
(4,720
|
)
|
1983
|
|||||||||||||||||||||
|
Countryside RV
|
Apache Junction
|
AZ
|
(8,587
|
)
|
2,056
|
|
6,241
|
|
—
|
|
1,594
|
|
2,056
|
|
7,835
|
|
9,891
|
|
(3,858
|
)
|
2002
|
|||||||||||||||||||||
|
Denali Park
|
Apache Junction
|
AZ
|
—
|
|
2,394
|
|
4,016
|
|
—
|
|
212
|
|
2,394
|
|
4,228
|
|
6,622
|
|
(1,111
|
)
|
2011
|
|||||||||||||||||||||
|
Desert Paradise
|
Yuma
|
AZ
|
—
|
|
666
|
|
2,011
|
|
—
|
|
317
|
|
666
|
|
2,328
|
|
2,994
|
|
(1,076
|
)
|
2004
|
|||||||||||||||||||||
|
Desert Skies
|
Phoenix
|
AZ
|
(4,899
|
)
|
792
|
|
3,126
|
|
—
|
|
818
|
|
792
|
|
3,944
|
|
4,736
|
|
(2,492
|
)
|
1998
|
|||||||||||||||||||||
|
Desert Vista
|
Salome
|
AZ
|
—
|
|
66
|
|
268
|
|
—
|
|
221
|
|
66
|
|
489
|
|
555
|
|
(137
|
)
|
2010
|
|||||||||||||||||||||
|
Fairview Manor
|
Tucson
|
AZ
|
—
|
|
1,674
|
|
4,708
|
|
—
|
|
2,297
|
|
1,674
|
|
7,005
|
|
8,679
|
|
(4,360
|
)
|
1998
|
|||||||||||||||||||||
|
Fiesta Grande RV
|
Casa Grande
|
AZ
|
—
|
|
2,869
|
|
8,653
|
|
—
|
|
1,076
|
|
2,869
|
|
9,729
|
|
12,598
|
|
(3,589
|
)
|
2006
|
|||||||||||||||||||||
|
Foothill
|
Yuma
|
AZ
|
—
|
|
459
|
|
1,402
|
|
—
|
|
314
|
|
459
|
|
1,716
|
|
2,175
|
|
(777
|
)
|
2003
|
|||||||||||||||||||||
|
Foothills West RV
|
Casa Grande
|
AZ
|
—
|
|
747
|
|
2,261
|
|
—
|
|
375
|
|
747
|
|
2,636
|
|
3,383
|
|
(1,033
|
)
|
2006
|
|||||||||||||||||||||
|
Golden Sun RV
|
Apache Junction
|
AZ
|
(6,087
|
)
|
1,678
|
|
5,049
|
|
—
|
|
557
|
|
1,678
|
|
5,606
|
|
7,284
|
|
(2,817
|
)
|
2002
|
|||||||||||||||||||||
|
Hacienda De Valencia
|
Mesa
|
AZ
|
(12,743
|
)
|
833
|
|
2,701
|
|
—
|
|
4,972
|
|
833
|
|
7,673
|
|
8,506
|
|
(5,458
|
)
|
1984
|
|||||||||||||||||||||
|
Mesa Spirit
|
Mesa
|
AZ
|
(17,750
|
)
|
17,382
|
|
25,238
|
|
191
|
|
(207
|
)
|
17,574
|
|
25,031
|
|
42,605
|
|
(3,189
|
)
|
2014
|
|||||||||||||||||||||
|
Mesa Verde
|
Cottonwood
|
AZ
|
(4,846
|
)
|
1,387
|
|
4,148
|
|
—
|
|
606
|
|
1,387
|
|
4,754
|
|
6,141
|
|
(1,735
|
)
|
2007
|
|||||||||||||||||||||
|
Monte Vista
|
Mesa
|
AZ
|
(22,253
|
)
|
11,402
|
|
34,355
|
|
—
|
|
12,235
|
|
11,402
|
|
46,590
|
|
57,992
|
|
(17,680
|
)
|
2004
|
|||||||||||||||||||||
|
Palm Shadows
|
Glendale
|
AZ
|
(5,607
|
)
|
1,400
|
|
4,218
|
|
—
|
|
1,410
|
|
1,400
|
|
5,628
|
|
7,028
|
|
(4,195
|
)
|
1993
|
|||||||||||||||||||||
|
Paradise
|
Sun City
|
AZ
|
(13,384
|
)
|
6,414
|
|
19,263
|
|
11
|
|
2,495
|
|
6,425
|
|
21,758
|
|
28,183
|
|
(10,476
|
)
|
2004
|
|||||||||||||||||||||
|
Sedona Shadows
|
Sedona
|
AZ
|
(9,782
|
)
|
1,096
|
|
3,431
|
|
—
|
|
1,877
|
|
1,096
|
|
5,308
|
|
6,404
|
|
(3,076
|
)
|
1997
|
|||||||||||||||||||||
|
Seyenna Vistas
|
Mesa
|
AZ
|
—
|
|
1,360
|
|
4,660
|
|
(86
|
)
|
2,983
|
|
1,273
|
|
7,643
|
|
8,916
|
|
(5,277
|
)
|
1994
|
|||||||||||||||||||||
|
Suni Sands
|
Yuma
|
AZ
|
—
|
|
1,249
|
|
3,759
|
|
—
|
|
577
|
|
1,249
|
|
4,336
|
|
5,585
|
|
(1,947
|
)
|
2004
|
|||||||||||||||||||||
S-1
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Sunrise Heights
|
Phoenix
|
AZ
|
$
|
(6,002
|
)
|
$
|
1,000
|
|
$
|
3,016
|
|
$
|
—
|
|
$
|
1,727
|
|
$
|
1,000
|
|
$
|
4,743
|
|
$
|
5,743
|
|
$
|
(3,172
|
)
|
1994
|
||||||||||||
|
Sunshine Valley
|
Chandler
|
AZ
|
—
|
|
9,139
|
|
12,912
|
|
—
|
|
384
|
|
9,139
|
|
13,296
|
|
22,435
|
|
(3,512
|
)
|
2011
|
|||||||||||||||||||||
|
The Highlands at Brentwood
|
Mesa
|
AZ
|
(13,485
|
)
|
1,997
|
|
6,024
|
|
—
|
|
2,251
|
|
1,997
|
|
8,275
|
|
10,272
|
|
(6,079
|
)
|
1993
|
|||||||||||||||||||||
|
The Meadows
|
Tempe
|
AZ
|
(17,430
|
)
|
2,613
|
|
7,887
|
|
—
|
|
4,429
|
|
2,613
|
|
12,316
|
|
14,929
|
|
(8,388
|
)
|
1994
|
|||||||||||||||||||||
|
Valley Vista
|
Benson
|
AZ
|
—
|
|
115
|
|
429
|
|
—
|
|
114
|
|
115
|
|
543
|
|
658
|
|
(157
|
)
|
2010
|
|||||||||||||||||||||
|
Venture In
|
Show Low
|
AZ
|
—
|
|
2,050
|
|
6,188
|
|
—
|
|
590
|
|
2,050
|
|
6,778
|
|
8,828
|
|
(2,653
|
)
|
2006
|
|||||||||||||||||||||
|
Verde Valley
|
Cottonwood
|
AZ
|
—
|
|
1,437
|
|
3,390
|
|
19
|
|
2,285
|
|
1,456
|
|
5,675
|
|
7,131
|
|
(2,035
|
)
|
2004
|
|||||||||||||||||||||
|
Viewpoint
|
Mesa
|
AZ
|
(52,353
|
)
|
24,890
|
|
56,340
|
|
15
|
|
16,599
|
|
24,905
|
|
72,939
|
|
97,844
|
|
(29,965
|
)
|
2004
|
|||||||||||||||||||||
|
Westpark
|
Wickenburg
|
AZ
|
(8,941
|
)
|
4,495
|
|
10,517
|
|
—
|
|
768
|
|
4,495
|
|
11,285
|
|
15,780
|
|
(2,841
|
)
|
2011
|
|||||||||||||||||||||
|
Whispering Palms
|
Phoenix
|
AZ
|
—
|
|
670
|
|
2,141
|
|
—
|
|
383
|
|
670
|
|
2,524
|
|
3,194
|
|
(1,666
|
)
|
1998
|
|||||||||||||||||||||
|
Cultus Lake
|
Lindell Beach
|
BC
|
—
|
|
410
|
|
968
|
|
6
|
|
383
|
|
416
|
|
1,351
|
|
1,767
|
|
(555
|
)
|
2004
|
|||||||||||||||||||||
|
California Hawaiian
|
San Jose
|
CA
|
(29,019
|
)
|
5,825
|
|
17,755
|
|
—
|
|
4,411
|
|
5,825
|
|
22,166
|
|
27,991
|
|
(14,112
|
)
|
1997
|
|||||||||||||||||||||
|
Colony Park
|
Ceres
|
CA
|
—
|
|
890
|
|
2,837
|
|
—
|
|
1,093
|
|
890
|
|
3,930
|
|
4,820
|
|
(2,472
|
)
|
1998
|
|||||||||||||||||||||
|
Concord Cascade
|
Pacheco
|
CA
|
(10,762
|
)
|
985
|
|
3,016
|
|
—
|
|
2,691
|
|
985
|
|
5,707
|
|
6,692
|
|
(4,344
|
)
|
1983
|
|||||||||||||||||||||
|
Contempo Marin
|
San Rafael
|
CA
|
(38,994
|
)
|
4,787
|
|
16,379
|
|
—
|
|
3,784
|
|
4,787
|
|
20,163
|
|
24,950
|
|
(15,142
|
)
|
1994
|
|||||||||||||||||||||
|
Coralwood
|
Modesto
|
CA
|
—
|
|
—
|
|
5,047
|
|
—
|
|
1,344
|
|
—
|
|
6,391
|
|
6,391
|
|
(3,869
|
)
|
1997
|
|||||||||||||||||||||
|
Date Palm Country Club
|
Cathedral City
|
CA
|
—
|
|
—
|
|
18,179
|
|
—
|
|
7,809
|
|
—
|
|
25,988
|
|
25,988
|
|
(18,204
|
)
|
1994
|
|||||||||||||||||||||
|
Date Palm RV
|
Cathedral City
|
CA
|
—
|
|
—
|
|
216
|
|
—
|
|
447
|
|
—
|
|
663
|
|
663
|
|
(426
|
)
|
1994
|
|||||||||||||||||||||
|
DeAnza Santa Cruz
|
Santa Cruz
|
CA
|
(12,107
|
)
|
2,103
|
|
7,201
|
|
—
|
|
3,382
|
|
2,103
|
|
10,583
|
|
12,686
|
|
(7,251
|
)
|
1994
|
|||||||||||||||||||||
|
Four Seasons
|
Fresno
|
CA
|
—
|
|
756
|
|
2,348
|
|
—
|
|
1,237
|
|
756
|
|
3,585
|
|
4,341
|
|
(1,990
|
)
|
1997
|
|||||||||||||||||||||
|
Idyllwild
|
Pine Cove
|
CA
|
—
|
|
313
|
|
737
|
|
4
|
|
1,276
|
|
317
|
|
2,013
|
|
2,330
|
|
(763
|
)
|
2004
|
|||||||||||||||||||||
|
Laguna Lake
|
San Luis Obispo
|
CA
|
—
|
|
2,845
|
|
6,520
|
|
—
|
|
1,126
|
|
2,845
|
|
7,646
|
|
10,491
|
|
(4,852
|
)
|
1998
|
|||||||||||||||||||||
|
Lake Minden
|
Nicolaus
|
CA
|
—
|
|
961
|
|
2,267
|
|
13
|
|
1,215
|
|
974
|
|
3,482
|
|
4,456
|
|
(1,415
|
)
|
2004
|
|||||||||||||||||||||
|
Lake of the Springs
|
Oregon House
|
CA
|
—
|
|
1,062
|
|
2,504
|
|
14
|
|
1,512
|
|
1,076
|
|
4,016
|
|
5,092
|
|
(1,522
|
)
|
2004
|
|||||||||||||||||||||
|
Lamplighter
|
Spring Valley
|
CA
|
(20,937
|
)
|
633
|
|
2,201
|
|
—
|
|
1,840
|
|
633
|
|
4,041
|
|
4,674
|
|
(3,140
|
)
|
1983
|
|||||||||||||||||||||
|
Las Palmas
|
Rialto
|
CA
|
—
|
|
1,295
|
|
3,866
|
|
—
|
|
821
|
|
1,295
|
|
4,687
|
|
5,982
|
|
(2,032
|
)
|
2004
|
|||||||||||||||||||||
|
Los Ranchos
|
Apple Valley
|
CA
|
—
|
|
8,336
|
|
15,774
|
|
—
|
|
636
|
|
8,336
|
|
16,410
|
|
24,746
|
|
(4,278
|
)
|
2011
|
|||||||||||||||||||||
|
Meadowbrook
|
Santee
|
CA
|
(24,755
|
)
|
4,345
|
|
12,528
|
|
—
|
|
2,786
|
|
4,345
|
|
15,314
|
|
19,659
|
|
(9,461
|
)
|
1998
|
|||||||||||||||||||||
|
Monte del Lago
|
Castroville
|
CA
|
—
|
|
3,150
|
|
9,469
|
|
—
|
|
4,223
|
|
3,150
|
|
13,692
|
|
16,842
|
|
(8,089
|
)
|
1997
|
|||||||||||||||||||||
|
Morgan Hill
|
Morgan Hill
|
CA
|
—
|
|
1,856
|
|
4,378
|
|
25
|
|
2,334
|
|
1,881
|
|
6,712
|
|
8,593
|
|
(2,302
|
)
|
2004
|
|||||||||||||||||||||
S-2
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
|||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Nicholson Plaza
|
San Jose
|
CA
|
$
|
—
|
|
$
|
—
|
|
$
|
4,512
|
|
$
|
—
|
|
$
|
372
|
|
$
|
—
|
|
$
|
4,884
|
|
$
|
4,884
|
|
$
|
(3,283
|
)
|
1997
|
||||||||||||
|
Oakzanita Springs
|
Descanso
|
CA
|
—
|
|
396
|
|
934
|
|
5
|
|
1,336
|
|
401
|
|
2,270
|
|
2,671
|
|
(918
|
)
|
2004
|
|||||||||||||||||||||
|
Pacific Dunes Ranch
|
Oceana
|
CA
|
—
|
|
1,940
|
|
5,632
|
|
—
|
|
1,257
|
|
1,940
|
|
6,889
|
|
8,829
|
|
(2,774
|
)
|
2004
|
|||||||||||||||||||||
|
Palm Springs
|
Palm Desert
|
CA
|
—
|
|
1,811
|
|
4,271
|
|
24
|
|
1,805
|
|
1,835
|
|
6,076
|
|
7,911
|
|
(2,345
|
)
|
2004
|
|||||||||||||||||||||
|
Parque La Quinta
|
Rialto
|
CA
|
—
|
|
1,799
|
|
5,450
|
|
—
|
|
803
|
|
1,799
|
|
6,253
|
|
8,052
|
|
(2,689
|
)
|
2004
|
|||||||||||||||||||||
|
Pio Pico
|
Jamul
|
CA
|
—
|
|
2,626
|
|
6,194
|
|
35
|
|
3,476
|
|
2,661
|
|
9,670
|
|
12,331
|
|
(3,573
|
)
|
2004
|
|||||||||||||||||||||
|
Ponderosa
|
Lotus
|
CA
|
—
|
|
900
|
|
2,100
|
|
—
|
|
1,886
|
|
900
|
|
3,986
|
|
4,886
|
|
(1,039
|
)
|
2006
|
|||||||||||||||||||||
|
Quail Meadows
|
Riverbank
|
CA
|
—
|
|
1,155
|
|
3,469
|
|
—
|
|
729
|
|
1,155
|
|
4,198
|
|
5,353
|
|
(2,602
|
)
|
1998
|
|||||||||||||||||||||
|
Rancho Mesa
|
El Cajon
|
CA
|
—
|
|
2,130
|
|
6,389
|
|
—
|
|
994
|
|
2,130
|
|
7,383
|
|
9,513
|
|
(4,654
|
)
|
1998
|
|||||||||||||||||||||
|
Rancho Oso
|
Santa Barbara
|
CA
|
—
|
|
860
|
|
2,029
|
|
11
|
|
1,387
|
|
872
|
|
3,416
|
|
4,288
|
|
(1,289
|
)
|
2004
|
|||||||||||||||||||||
|
Rancho Valley
|
El Cajon
|
CA
|
(6,690
|
)
|
685
|
|
1,902
|
|
—
|
|
1,604
|
|
685
|
|
3,506
|
|
4,191
|
|
(2,756
|
)
|
1983
|
|||||||||||||||||||||
|
Royal Holiday
|
Hemet
|
CA
|
—
|
|
778
|
|
2,643
|
|
—
|
|
2,849
|
|
778
|
|
5,492
|
|
6,270
|
|
(2,759
|
)
|
1999
|
|||||||||||||||||||||
|
Royal Oaks
|
Visalia
|
CA
|
—
|
|
602
|
|
1,921
|
|
—
|
|
1,071
|
|
602
|
|
2,992
|
|
3,594
|
|
(1,741
|
)
|
1997
|
|||||||||||||||||||||
|
Russian River
|
Cloverdale
|
CA
|
—
|
|
368
|
|
868
|
|
5
|
|
298
|
|
373
|
|
1,166
|
|
1,539
|
|
(475
|
)
|
2004
|
|||||||||||||||||||||
|
San Benito
|
Paicines
|
CA
|
—
|
|
1,411
|
|
3,328
|
|
19
|
|
2,547
|
|
1,430
|
|
5,875
|
|
7,305
|
|
(2,040
|
)
|
2004
|
|||||||||||||||||||||
|
San Francisco RV
|
Pacifica
|
CA
|
—
|
|
1,660
|
|
4,973
|
|
—
|
|
2,069
|
|
1,660
|
|
7,042
|
|
8,702
|
|
(2,484
|
)
|
2005
|
|||||||||||||||||||||
|
Santa Cruz Ranch RV
|
Scotts Valley
|
CA
|
—
|
|
1,595
|
|
3,937
|
|
—
|
|
529
|
|
1,595
|
|
4,466
|
|
6,061
|
|
(1,491
|
)
|
2007
|
|||||||||||||||||||||
|
Santiago Estates
|
Sylmar
|
CA
|
(24,841
|
)
|
3,562
|
|
10,767
|
|
—
|
|
2,404
|
|
3,562
|
|
13,171
|
|
16,733
|
|
(7,989
|
)
|
1998
|
|||||||||||||||||||||
|
Sea Oaks
|
Los Osos
|
CA
|
—
|
|
871
|
|
2,703
|
|
—
|
|
869
|
|
871
|
|
3,572
|
|
4,443
|
|
(2,181
|
)
|
1997
|
|||||||||||||||||||||
|
Snowflower
|
Emigrant Gap
|
CA
|
—
|
|
308
|
|
727
|
|
4
|
|
1,333
|
|
312
|
|
2,060
|
|
2,372
|
|
(594
|
)
|
2004
|
|||||||||||||||||||||
|
Soledad Canyon
|
Acton
|
CA
|
—
|
|
2,933
|
|
6,917
|
|
39
|
|
5,023
|
|
2,972
|
|
11,940
|
|
14,912
|
|
(4,227
|
)
|
2004
|
|||||||||||||||||||||
|
Sunshadow
|
San Jose
|
CA
|
—
|
|
—
|
|
5,707
|
|
—
|
|
707
|
|
—
|
|
6,414
|
|
6,414
|
|
(4,118
|
)
|
1997
|
|||||||||||||||||||||
|
Tahoe Valley
|
Lake Tahoe
|
CA
|
—
|
|
—
|
|
5,428
|
|
—
|
|
730
|
|
—
|
|
6,158
|
|
6,158
|
|
(2,749
|
)
|
2004
|
|||||||||||||||||||||
|
Turtle Beach
|
Manteca
|
CA
|
—
|
|
268
|
|
633
|
|
4
|
|
1,007
|
|
272
|
|
1,640
|
|
1,912
|
|
(393
|
)
|
2004
|
|||||||||||||||||||||
|
Village of the Four Seasons
|
San Jose
|
CA
|
(21,516
|
)
|
5,229
|
|
15,714
|
|
—
|
|
1,324
|
|
5,229
|
|
17,038
|
|
22,267
|
|
(7,495
|
)
|
2004
|
|||||||||||||||||||||
|
Westwinds (4 properties)
|
San Jose
|
CA
|
—
|
|
—
|
|
17,616
|
|
—
|
|
10,301
|
|
—
|
|
27,917
|
|
27,917
|
|
(16,862
|
)
|
1997
|
|||||||||||||||||||||
|
Wilderness Lake
|
Menifee
|
CA
|
—
|
|
2,157
|
|
5,088
|
|
29
|
|
2,041
|
|
2,186
|
|
7,129
|
|
9,315
|
|
(2,798
|
)
|
2004
|
|||||||||||||||||||||
|
Yosemite Lakes
|
Groveland
|
CA
|
—
|
|
2,045
|
|
4,823
|
|
27
|
|
3,158
|
|
2,072
|
|
7,981
|
|
10,053
|
|
(2,870
|
)
|
2004
|
|||||||||||||||||||||
|
Bear Creek
|
Denver
|
CO
|
(6,385
|
)
|
1,100
|
|
3,359
|
|
—
|
|
651
|
|
1,100
|
|
4,010
|
|
5,110
|
|
(2,498
|
)
|
1998
|
|||||||||||||||||||||
|
Cimarron
|
Broomfield
|
CO
|
(20,178
|
)
|
863
|
|
2,790
|
|
10,233
|
|
21,488
|
|
11,097
|
|
24,278
|
|
35,375
|
|
(6,318
|
)
|
1983
|
|||||||||||||||||||||
S-3
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Golden Terrace
|
Golden
|
CO
|
$
|
—
|
|
$
|
826
|
|
$
|
2,415
|
|
$
|
—
|
|
$
|
2,725
|
|
$
|
826
|
|
$
|
5,140
|
|
$
|
5,966
|
|
$
|
(3,380
|
)
|
1983
|
||||||||||||
|
Golden Terrace South
|
Golden
|
CO
|
—
|
|
750
|
|
2,265
|
|
—
|
|
965
|
|
750
|
|
3,230
|
|
3,980
|
|
(1,991
|
)
|
1997
|
|||||||||||||||||||||
|
Golden Terrace West
|
Golden
|
CO
|
—
|
|
1,694
|
|
5,065
|
|
—
|
|
7,300
|
|
1,694
|
|
12,365
|
|
14,059
|
|
(6,073
|
)
|
1986
|
|||||||||||||||||||||
|
Hillcrest Village
|
Aurora
|
CO
|
(42,065
|
)
|
1,912
|
|
5,202
|
|
289
|
|
5,036
|
|
2,201
|
|
10,238
|
|
12,439
|
|
(7,569
|
)
|
1983
|
|||||||||||||||||||||
|
Holiday Hills
|
Denver
|
CO
|
—
|
|
2,159
|
|
7,780
|
|
—
|
|
7,106
|
|
2,159
|
|
14,886
|
|
17,045
|
|
(11,597
|
)
|
1983
|
|||||||||||||||||||||
|
Holiday Village
|
Co. Springs
|
CO
|
—
|
|
567
|
|
1,759
|
|
—
|
|
2,012
|
|
567
|
|
3,771
|
|
4,338
|
|
(2,728
|
)
|
1983
|
|||||||||||||||||||||
|
Pueblo Grande
|
Pueblo
|
CO
|
—
|
|
241
|
|
1,069
|
|
—
|
|
968
|
|
241
|
|
2,037
|
|
2,278
|
|
(1,595
|
)
|
1983
|
|||||||||||||||||||||
|
Woodland Hills
|
Thornton
|
CO
|
—
|
|
1,928
|
|
4,408
|
|
—
|
|
3,774
|
|
1,928
|
|
8,182
|
|
10,110
|
|
(5,605
|
)
|
1994
|
|||||||||||||||||||||
|
Stonegate Manor
|
North Windham
|
CT
|
(6,766
|
)
|
6,011
|
|
12,336
|
|
—
|
|
385
|
|
6,011
|
|
12,721
|
|
18,732
|
|
(3,428
|
)
|
2011
|
|||||||||||||||||||||
|
Aspen Meadows
|
Rehoboth
|
DE
|
—
|
|
1,148
|
|
3,460
|
|
—
|
|
677
|
|
1,148
|
|
4,137
|
|
5,285
|
|
(2,651
|
)
|
1998
|
|||||||||||||||||||||
|
Camelot Meadows
|
Rehoboth
|
DE
|
—
|
|
527
|
|
2,058
|
|
1,251
|
|
4,592
|
|
1,778
|
|
6,650
|
|
8,428
|
|
(4,147
|
)
|
1998
|
|||||||||||||||||||||
|
Mariners Cove
|
Millsboro
|
DE
|
(20,543
|
)
|
990
|
|
2,971
|
|
—
|
|
6,443
|
|
990
|
|
9,414
|
|
10,404
|
|
(6,604
|
)
|
1987
|
|||||||||||||||||||||
|
McNicol
|
Rehoboth
|
DE
|
—
|
|
562
|
|
1,710
|
|
—
|
|
267
|
|
562
|
|
1,977
|
|
2,539
|
|
(1,224
|
)
|
1998
|
|||||||||||||||||||||
|
Sweetbriar
|
Rehoboth
|
DE
|
—
|
|
498
|
|
1,527
|
|
—
|
|
643
|
|
498
|
|
2,170
|
|
2,668
|
|
(1,390
|
)
|
1998
|
|||||||||||||||||||||
|
Waterford
|
Bear
|
DE
|
(41,141
|
)
|
5,250
|
|
16,202
|
|
—
|
|
2,197
|
|
5,250
|
|
18,399
|
|
23,649
|
|
(8,015
|
)
|
1996
|
|||||||||||||||||||||
|
Whispering Pines
|
Lewes
|
DE
|
—
|
|
1,536
|
|
4,609
|
|
—
|
|
1,936
|
|
1,536
|
|
6,545
|
|
8,081
|
|
(5,449
|
)
|
1988
|
|||||||||||||||||||||
|
Audubon
|
Orlando
|
FL
|
—
|
|
4,622
|
|
7,200
|
|
—
|
|
424
|
|
4,622
|
|
7,624
|
|
12,246
|
|
(2,036
|
)
|
2011
|
|||||||||||||||||||||
|
Barrington Hills
|
Hudson
|
FL
|
(4,577
|
)
|
1,145
|
|
3,437
|
|
—
|
|
906
|
|
1,145
|
|
4,343
|
|
5,488
|
|
(1,941
|
)
|
2004
|
|||||||||||||||||||||
|
Bay Indies
|
Venice
|
FL
|
(66,003
|
)
|
10,483
|
|
31,559
|
|
10
|
|
7,314
|
|
10,493
|
|
38,873
|
|
49,366
|
|
(28,412
|
)
|
1994
|
|||||||||||||||||||||
|
Bay Lake Estates
|
Nokomis
|
FL
|
(12,062
|
)
|
990
|
|
3,390
|
|
—
|
|
2,145
|
|
990
|
|
5,535
|
|
6,525
|
|
(3,645
|
)
|
1994
|
|||||||||||||||||||||
|
Beacon Hill Colony
|
Lakeland
|
FL
|
—
|
|
3,775
|
|
6,405
|
|
—
|
|
273
|
|
3,775
|
|
6,678
|
|
10,453
|
|
(1,685
|
)
|
2011
|
|||||||||||||||||||||
|
Beacon Terrace
|
Lakeland
|
FL
|
(6,071
|
)
|
5,372
|
|
9,153
|
|
—
|
|
468
|
|
5,372
|
|
9,621
|
|
14,993
|
|
(2,524
|
)
|
2011
|
|||||||||||||||||||||
|
Breezy Hill RV
|
Pompano Beach
|
FL
|
(18,685
|
)
|
5,424
|
|
16,555
|
|
—
|
|
2,302
|
|
5,424
|
|
18,857
|
|
24,281
|
|
(9,312
|
)
|
2002
|
|||||||||||||||||||||
|
Buccaneer
|
N. Ft. Myers
|
FL
|
(33,040
|
)
|
4,207
|
|
14,410
|
|
—
|
|
3,954
|
|
4,207
|
|
18,364
|
|
22,571
|
|
(12,948
|
)
|
1994
|
|||||||||||||||||||||
|
Bulow Plantation
|
Flagler Beach
|
FL
|
—
|
|
3,637
|
|
949
|
|
—
|
|
6,926
|
|
3,637
|
|
7,875
|
|
11,512
|
|
(4,507
|
)
|
1994
|
|||||||||||||||||||||
|
Bulow Village RV
|
Flagler Beach
|
FL
|
—
|
|
—
|
|
228
|
|
—
|
|
1,761
|
|
—
|
|
1,989
|
|
1,989
|
|
(768
|
)
|
1994
|
|||||||||||||||||||||
|
Carefree Cove
|
Fort Lauderdale
|
FL
|
—
|
|
1,741
|
|
5,170
|
|
—
|
|
760
|
|
1,741
|
|
5,930
|
|
7,671
|
|
(2,616
|
)
|
2004
|
|||||||||||||||||||||
|
Carefree Village
|
Tampa
|
FL
|
—
|
|
6,799
|
|
10,421
|
|
—
|
|
719
|
|
6,799
|
|
11,140
|
|
17,939
|
|
(3,034
|
)
|
2011
|
|||||||||||||||||||||
|
Carriage Cove
|
Daytona Beach
|
FL
|
(10,839
|
)
|
2,914
|
|
8,682
|
|
—
|
|
1,687
|
|
2,914
|
|
10,369
|
|
13,283
|
|
(6,625
|
)
|
1998
|
|||||||||||||||||||||
|
Cheron Village
|
Davie
|
FL
|
(5,306
|
)
|
10,393
|
|
6,217
|
|
—
|
|
189
|
|
10,393
|
|
6,406
|
|
16,799
|
|
(2,042
|
)
|
2011
|
|||||||||||||||||||||
|
Clerbrook
|
Clermont
|
FL
|
—
|
|
3,883
|
|
11,700
|
|
—
|
|
2,026
|
|
3,883
|
|
13,726
|
|
17,609
|
|
(5,219
|
)
|
2006
|
|||||||||||||||||||||
S-4
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Clover Leaf Farms
|
Brooksville
|
FL
|
$
|
(34,122
|
)
|
$
|
13,684
|
|
$
|
24,106
|
|
$
|
—
|
|
$
|
1,079
|
|
$
|
13,684
|
|
$
|
25,185
|
|
$
|
38,869
|
|
$
|
(6,573
|
)
|
2011
|
||||||||||||
|
Clover Leaf Forest
|
Brooksville
|
FL
|
—
|
|
1,092
|
|
2,178
|
|
—
|
|
293
|
|
1,092
|
|
2,471
|
|
3,563
|
|
(497
|
)
|
2011
|
|||||||||||||||||||||
|
Coachwood
|
Leesburg
|
FL
|
—
|
|
1,602
|
|
4,822
|
|
—
|
|
619
|
|
1,602
|
|
5,441
|
|
7,043
|
|
(2,449
|
)
|
2004
|
|||||||||||||||||||||
|
Colony Cove
|
Ellenton
|
FL
|
(105,641
|
)
|
28,660
|
|
92,457
|
|
35,859
|
|
7,132
|
|
64,519
|
|
99,589
|
|
164,108
|
|
(25,354
|
)
|
2011
|
|||||||||||||||||||||
|
Coquina Crossing
|
Elkton
|
FL
|
(30,878
|
)
|
5,274
|
|
5,545
|
|
—
|
|
18,516
|
|
5,274
|
|
24,061
|
|
29,335
|
|
(11,346
|
)
|
1999
|
|||||||||||||||||||||
|
Coral Cay
|
Margate
|
FL
|
(21,198
|
)
|
5,890
|
|
20,211
|
|
—
|
|
8,642
|
|
5,890
|
|
28,853
|
|
34,743
|
|
(20,277
|
)
|
1994
|
|||||||||||||||||||||
|
Country Place
(2)
|
New Port Richey
|
FL
|
(20,614
|
)
|
663
|
|
—
|
|
18
|
|
7,914
|
|
681
|
|
7,914
|
|
8,595
|
|
(6,020
|
)
|
1986
|
|||||||||||||||||||||
|
Countryside
|
Vero Beach
|
FL
|
—
|
|
3,711
|
|
11,133
|
|
—
|
|
7,535
|
|
3,711
|
|
18,668
|
|
22,379
|
|
(11,320
|
)
|
1998
|
|||||||||||||||||||||
|
Covington Estates
|
Saint Cloud
|
FL
|
(9,612
|
)
|
3,319
|
|
7,253
|
|
—
|
|
180
|
|
3,319
|
|
7,433
|
|
10,752
|
|
(1,987
|
)
|
2011
|
|||||||||||||||||||||
|
Crystal Isles
|
Crystal River
|
FL
|
—
|
|
926
|
|
2,787
|
|
10
|
|
3,102
|
|
936
|
|
5,889
|
|
6,825
|
|
(1,910
|
)
|
2004
|
|||||||||||||||||||||
|
Crystal Lakes-Zephyrhills
|
Zephyrhills
|
FL
|
—
|
|
3,767
|
|
6,834
|
|
110
|
|
1,248
|
|
3,877
|
|
8,082
|
|
11,959
|
|
(1,944
|
)
|
2011
|
|||||||||||||||||||||
|
Down Yonder
|
Largo
|
FL
|
(11,752
|
)
|
2,652
|
|
7,981
|
|
—
|
|
1,226
|
|
2,652
|
|
9,207
|
|
11,859
|
|
(4,455
|
)
|
1998
|
|||||||||||||||||||||
|
East Bay Oaks
|
Largo
|
FL
|
(9,936
|
)
|
1,240
|
|
3,322
|
|
—
|
|
1,574
|
|
1,240
|
|
4,896
|
|
6,136
|
|
(4,055
|
)
|
1983
|
|||||||||||||||||||||
|
Eldorado Village
|
Largo
|
FL
|
(6,637
|
)
|
778
|
|
2,341
|
|
—
|
|
1,323
|
|
778
|
|
3,664
|
|
4,442
|
|
(2,943
|
)
|
1983
|
|||||||||||||||||||||
|
Emerald Lake
|
Punta Gorda
|
FL
|
(4,592
|
)
|
3,598
|
|
5,197
|
|
—
|
|
439
|
|
3,598
|
|
5,636
|
|
9,234
|
|
(1,477
|
)
|
2011
|
|||||||||||||||||||||
|
Featherock
|
Valrico
|
FL
|
—
|
|
11,369
|
|
22,770
|
|
—
|
|
726
|
|
11,369
|
|
23,496
|
|
34,865
|
|
(5,810
|
)
|
2011
|
|||||||||||||||||||||
|
Fiesta Key
|
Long Key
|
FL
|
—
|
|
16,611
|
|
7,338
|
|
—
|
|
5,290
|
|
16,611
|
|
12,628
|
|
29,239
|
|
(1,463
|
)
|
2013
|
|||||||||||||||||||||
|
Forest Lake Estates RV
|
Zephyrhills
|
FL
|
—
|
|
—
|
|
537
|
|
—
|
|
98
|
|
—
|
|
636
|
|
636
|
|
(44
|
)
|
2016
|
|||||||||||||||||||||
|
Forest Lake Estates
|
Zephyrhills
|
FL
|
(21,174
|
)
|
40,716
|
|
33,918
|
|
—
|
|
425
|
|
40,716
|
|
34,343
|
|
75,059
|
|
(5,993
|
)
|
2016
|
|||||||||||||||||||||
|
Fort Myers Beach Resort
|
Fort Myers Beach
|
FL
|
—
|
|
1,188
|
|
3,548
|
|
—
|
|
551
|
|
1,188
|
|
4,099
|
|
5,287
|
|
(1,942
|
)
|
2004
|
|||||||||||||||||||||
|
Foxwood
|
Ocala
|
FL
|
—
|
|
3,853
|
|
7,967
|
|
—
|
|
930
|
|
3,853
|
|
8,897
|
|
12,750
|
|
(2,386
|
)
|
2011
|
|||||||||||||||||||||
|
Glen Ellen
|
Clearwater
|
FL
|
—
|
|
619
|
|
1,882
|
|
—
|
|
298
|
|
619
|
|
2,180
|
|
2,799
|
|
(1,065
|
)
|
2002
|
|||||||||||||||||||||
|
Grand Island
|
Grand Island
|
FL
|
—
|
|
1,723
|
|
5,208
|
|
125
|
|
4,919
|
|
1,848
|
|
10,127
|
|
11,975
|
|
(4,957
|
)
|
2001
|
|||||||||||||||||||||
|
Gulf Air Resort
|
Fort Myers Beach
|
FL
|
(6,396
|
)
|
1,609
|
|
4,746
|
|
—
|
|
517
|
|
1,609
|
|
5,263
|
|
6,872
|
|
(2,415
|
)
|
2004
|
|||||||||||||||||||||
|
Gulf View
|
Punta Gorda
|
FL
|
—
|
|
717
|
|
2,158
|
|
—
|
|
1,379
|
|
717
|
|
3,537
|
|
4,254
|
|
(1,624
|
)
|
2004
|
|||||||||||||||||||||
|
Hacienda Village
|
New Port Richey
|
FL
|
(17,853
|
)
|
4,297
|
|
13,088
|
|
—
|
|
3,467
|
|
4,297
|
|
16,555
|
|
20,852
|
|
(7,607
|
)
|
2002
|
|||||||||||||||||||||
|
Harbor Lakes
|
Port Charlotte
|
FL
|
(18,649
|
)
|
3,384
|
|
10,154
|
|
—
|
|
1,124
|
|
3,384
|
|
11,278
|
|
14,662
|
|
(5,067
|
)
|
2004
|
|||||||||||||||||||||
|
Harbor View
|
New Port Richey
|
FL
|
(19,160
|
)
|
4,030
|
|
12,146
|
|
—
|
|
699
|
|
4,030
|
|
12,845
|
|
16,875
|
|
(6,398
|
)
|
2002
|
|||||||||||||||||||||
|
Haselton Village
|
Eustis
|
FL
|
(6,097
|
)
|
3,800
|
|
8,955
|
|
—
|
|
521
|
|
3,800
|
|
9,476
|
|
13,276
|
|
(2,354
|
)
|
2011
|
|||||||||||||||||||||
|
Heritage Plantation
|
Vero Beach
|
FL
|
—
|
|
2,403
|
|
7,259
|
|
—
|
|
2,595
|
|
2,403
|
|
9,854
|
|
12,257
|
|
(7,120
|
)
|
1994
|
|||||||||||||||||||||
|
Heron Cay
|
Vero Beach
|
FL
|
(29,867
|
)
|
14,368
|
|
23,792
|
|
—
|
|
925
|
|
14,368
|
|
24,717
|
|
39,085
|
|
(6,375
|
)
|
2011
|
|||||||||||||||||||||
|
Hidden Valley
|
Orlando
|
FL
|
(8,690
|
)
|
11,398
|
|
12,861
|
|
—
|
|
487
|
|
11,398
|
|
13,348
|
|
24,746
|
|
(3,591
|
)
|
2011
|
|||||||||||||||||||||
S-5
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Highland Wood RV
|
Pompano Beach
|
FL
|
$
|
—
|
|
$
|
1,043
|
|
$
|
3,130
|
|
$
|
42
|
|
$
|
341
|
|
$
|
1,085
|
|
$
|
3,471
|
|
$
|
4,556
|
|
$
|
(1,755
|
)
|
2002
|
||||||||||||
|
Hillcrest
|
Clearwater
|
FL
|
—
|
|
1,278
|
|
3,928
|
|
—
|
|
1,414
|
|
1,278
|
|
5,342
|
|
6,620
|
|
(3,416
|
)
|
1998
|
|||||||||||||||||||||
|
Holiday Ranch
|
Clearwater
|
FL
|
—
|
|
925
|
|
2,866
|
|
—
|
|
572
|
|
925
|
|
3,438
|
|
4,363
|
|
(2,166
|
)
|
1998
|
|||||||||||||||||||||
|
Holiday Village
|
Ormond Beach
|
FL
|
—
|
|
2,610
|
|
7,837
|
|
—
|
|
731
|
|
2,610
|
|
8,568
|
|
11,178
|
|
(4,224
|
)
|
2002
|
|||||||||||||||||||||
|
Holiday Village
|
Vero Beach
|
FL
|
—
|
|
350
|
|
1,374
|
|
—
|
|
224
|
|
350
|
|
1,598
|
|
1,948
|
|
(1,053
|
)
|
1998
|
|||||||||||||||||||||
|
Indian Oaks
|
Rockledge
|
FL
|
—
|
|
1,089
|
|
3,376
|
|
—
|
|
1,071
|
|
1,089
|
|
4,447
|
|
5,536
|
|
(2,885
|
)
|
1998
|
|||||||||||||||||||||
|
Island Vista
|
North Ft. Myers
|
FL
|
—
|
|
5,004
|
|
15,066
|
|
—
|
|
1,765
|
|
5,004
|
|
16,831
|
|
21,835
|
|
(5,985
|
)
|
2006
|
|||||||||||||||||||||
|
Kings & Queens
|
Lakeland
|
FL
|
—
|
|
1,696
|
|
3,064
|
|
—
|
|
176
|
|
1,696
|
|
3,240
|
|
4,936
|
|
(872
|
)
|
2011
|
|||||||||||||||||||||
|
Lake Fairways
|
N. Ft. Myers
|
FL
|
(41,330
|
)
|
6,075
|
|
18,134
|
|
35
|
|
3,520
|
|
6,110
|
|
21,654
|
|
27,764
|
|
(15,570
|
)
|
1994
|
|||||||||||||||||||||
|
Lake Haven
|
Dunedin
|
FL
|
(14,920
|
)
|
1,135
|
|
4,047
|
|
—
|
|
3,803
|
|
1,135
|
|
7,850
|
|
8,985
|
|
(5,853
|
)
|
1983
|
|||||||||||||||||||||
|
Lake Magic
|
Clermont
|
FL
|
—
|
|
1,595
|
|
4,793
|
|
—
|
|
1,175
|
|
1,595
|
|
5,968
|
|
7,563
|
|
(2,594
|
)
|
2004
|
|||||||||||||||||||||
|
Lake Village
|
Nokomis
|
FL
|
(16,824
|
)
|
15,850
|
|
18,099
|
|
—
|
|
441
|
|
15,850
|
|
18,540
|
|
34,390
|
|
(4,826
|
)
|
2011
|
|||||||||||||||||||||
|
Lake Worth Village
|
Lake Worth
|
FL
|
(7,216
|
)
|
14,959
|
|
24,501
|
|
—
|
|
2,528
|
|
14,959
|
|
27,029
|
|
41,988
|
|
(7,100
|
)
|
2011
|
|||||||||||||||||||||
|
Lakeland Harbor
|
Lakeland
|
FL
|
(15,424
|
)
|
10,446
|
|
17,376
|
|
—
|
|
368
|
|
10,446
|
|
17,744
|
|
28,190
|
|
(4,631
|
)
|
2011
|
|||||||||||||||||||||
|
Lakeland Junction
|
Lakeland
|
FL
|
(3,784
|
)
|
3,018
|
|
4,752
|
|
—
|
|
139
|
|
3,018
|
|
4,891
|
|
7,909
|
|
(1,324
|
)
|
2011
|
|||||||||||||||||||||
|
Lakes at Countrywood
|
Plant City
|
FL
|
(9,265
|
)
|
2,377
|
|
7,085
|
|
—
|
|
2,237
|
|
2,377
|
|
9,322
|
|
11,699
|
|
(4,890
|
)
|
2001
|
|||||||||||||||||||||
|
Lakeside Terrace
|
Fruitland Park
|
FL
|
—
|
|
3,275
|
|
7,165
|
|
—
|
|
542
|
|
3,275
|
|
7,707
|
|
10,982
|
|
(1,949
|
)
|
2011
|
|||||||||||||||||||||
|
Lakewood Village
|
Melbourne
|
FL
|
—
|
|
1,862
|
|
5,627
|
|
—
|
|
2,030
|
|
1,862
|
|
7,657
|
|
9,519
|
|
(5,511
|
)
|
1994
|
|||||||||||||||||||||
|
Lighthouse Pointe
|
Port Orange
|
FL
|
—
|
|
2,446
|
|
7,483
|
|
23
|
|
1,657
|
|
2,469
|
|
9,140
|
|
11,609
|
|
(5,886
|
)
|
1998
|
|||||||||||||||||||||
|
Manatee
|
Bradenton
|
FL
|
—
|
|
2,300
|
|
6,903
|
|
—
|
|
1,064
|
|
2,300
|
|
7,967
|
|
10,267
|
|
(3,572
|
)
|
2004
|
|||||||||||||||||||||
|
Maralago Cay
|
Lantana
|
FL
|
(41,275
|
)
|
5,325
|
|
15,420
|
|
—
|
|
6,009
|
|
5,325
|
|
21,429
|
|
26,754
|
|
(13,332
|
)
|
1997
|
|||||||||||||||||||||
|
Meadows at Countrywood
|
Plant City
|
FL
|
(20,380
|
)
|
4,514
|
|
13,175
|
|
75
|
|
10,158
|
|
4,589
|
|
23,333
|
|
27,922
|
|
(13,258
|
)
|
1998
|
|||||||||||||||||||||
|
Miami Everglades
|
Miami
|
FL
|
—
|
|
5,362
|
|
6,238
|
|
—
|
|
325
|
|
5,362
|
|
6,563
|
|
11,925
|
|
(1,015
|
)
|
2015
|
|||||||||||||||||||||
|
Mid-Florida Lakes
|
Leesburg
|
FL
|
(63,308
|
)
|
5,997
|
|
20,635
|
|
—
|
|
11,551
|
|
5,997
|
|
32,186
|
|
38,183
|
|
(21,523
|
)
|
1994
|
|||||||||||||||||||||
|
Oak Bend
|
Ocala
|
FL
|
—
|
|
850
|
|
2,572
|
|
—
|
|
1,539
|
|
850
|
|
4,111
|
|
4,961
|
|
(2,935
|
)
|
1993
|
|||||||||||||||||||||
|
Oaks at Countrywood
|
Plant City
|
FL
|
(3,774
|
)
|
846
|
|
2,513
|
|
(75
|
)
|
1,368
|
|
771
|
|
3,881
|
|
4,652
|
|
(2,145
|
)
|
1998
|
|||||||||||||||||||||
|
Orange Lake
|
Clermont
|
FL
|
(4,980
|
)
|
4,303
|
|
6,815
|
|
—
|
|
717
|
|
4,303
|
|
7,532
|
|
11,835
|
|
(1,989
|
)
|
2011
|
|||||||||||||||||||||
|
Orlando
|
Clermont
|
FL
|
—
|
|
2,975
|
|
7,017
|
|
40
|
|
5,417
|
|
3,015
|
|
12,434
|
|
15,449
|
|
(4,172
|
)
|
2004
|
|||||||||||||||||||||
|
Palm Beach Colony
|
West Palm Beach
|
FL
|
(11,669
|
)
|
5,930
|
|
10,113
|
|
8
|
|
829
|
|
5,938
|
|
10,942
|
|
16,880
|
|
(2,841
|
)
|
2011
|
|||||||||||||||||||||
|
Paradise Park- Largo
|
Largo
|
FL
|
(5,726
|
)
|
3,523
|
|
4,026
|
|
—
|
|
434
|
|
3,523
|
|
4,459
|
|
7,982
|
|
(367
|
)
|
2017
|
|||||||||||||||||||||
|
Park City West
|
Fort Lauderdale
|
FL
|
—
|
|
4,184
|
|
12,561
|
|
—
|
|
1,006
|
|
4,184
|
|
13,567
|
|
17,751
|
|
(6,202
|
)
|
2004
|
|||||||||||||||||||||
|
Parkwood Communities
|
Wildwood
|
FL
|
(9,068
|
)
|
6,990
|
|
15,115
|
|
—
|
|
544
|
|
6,990
|
|
15,659
|
|
22,649
|
|
(4,157
|
)
|
2011
|
|||||||||||||||||||||
S-6
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Pasco
|
Lutz
|
FL
|
$
|
(4,013
|
)
|
$
|
1,494
|
|
$
|
4,484
|
|
$
|
—
|
|
$
|
872
|
|
$
|
1,494
|
|
$
|
5,356
|
|
$
|
6,850
|
|
$
|
(2,387
|
)
|
2004
|
||||||||||||
|
Peace River
|
Wauchula
|
FL
|
—
|
|
900
|
|
2,100
|
|
—
|
|
875
|
|
900
|
|
2,975
|
|
3,875
|
|
(1,079
|
)
|
2006
|
|||||||||||||||||||||
|
Pickwick
|
Port Orange
|
FL
|
(18,866
|
)
|
2,803
|
|
8,870
|
|
—
|
|
1,582
|
|
2,803
|
|
10,452
|
|
13,255
|
|
(6,660
|
)
|
1998
|
|||||||||||||||||||||
|
Pine Island Resort
|
St. James City
|
FL
|
—
|
|
1,678
|
|
5,044
|
|
—
|
|
1,164
|
|
1,678
|
|
6,208
|
|
7,886
|
|
(1,984
|
)
|
2007
|
|||||||||||||||||||||
|
Pine Lakes
|
N. Ft. Myers
|
FL
|
—
|
|
6,306
|
|
14,579
|
|
21
|
|
8,322
|
|
6,327
|
|
22,901
|
|
29,228
|
|
(16,212
|
)
|
1994
|
|||||||||||||||||||||
|
Pioneer Village
|
N. Ft. Myers
|
FL
|
(13,925
|
)
|
4,116
|
|
12,353
|
|
—
|
|
2,271
|
|
4,116
|
|
14,624
|
|
18,740
|
|
(6,662
|
)
|
2004
|
|||||||||||||||||||||
|
Ramblers Rest
|
Venice
|
FL
|
—
|
|
4,646
|
|
14,201
|
|
—
|
|
7,519
|
|
4,646
|
|
21,720
|
|
26,366
|
|
(7,033
|
)
|
2006
|
|||||||||||||||||||||
|
Ridgewood Estates
|
Ellenton
|
FL
|
—
|
|
8,769
|
|
8,791
|
|
—
|
|
402
|
|
8,769
|
|
9,193
|
|
17,962
|
|
(2,499
|
)
|
2011
|
|||||||||||||||||||||
|
Riverside RV
|
Arcadia
|
FL
|
—
|
|
8,400
|
|
11,905
|
|
—
|
|
150
|
|
8,400
|
|
12,054
|
|
20,454
|
|
(930
|
)
|
2016
|
|||||||||||||||||||||
|
Rose Bay
|
Port Orange
|
FL
|
—
|
|
3,866
|
|
3,528
|
|
—
|
|
364
|
|
3,866
|
|
3,893
|
|
7,759
|
|
(999
|
)
|
2016
|
|||||||||||||||||||||
|
Royal Coachman
|
Nokomis
|
FL
|
(11,087
|
)
|
5,321
|
|
15,978
|
|
—
|
|
1,680
|
|
5,321
|
|
17,658
|
|
22,979
|
|
(8,111
|
)
|
2004
|
|||||||||||||||||||||
|
Shady Lane Oaks
|
Clearwater
|
FL
|
(5,399
|
)
|
4,984
|
|
8,482
|
|
—
|
|
309
|
|
4,984
|
|
8,791
|
|
13,775
|
|
(2,421
|
)
|
2011
|
|||||||||||||||||||||
|
Shady Lane Village
|
Clearwater
|
FL
|
—
|
|
3,102
|
|
5,480
|
|
—
|
|
139
|
|
3,102
|
|
5,619
|
|
8,721
|
|
(1,552
|
)
|
2011
|
|||||||||||||||||||||
|
Shangri La
|
Largo
|
FL
|
—
|
|
1,722
|
|
5,200
|
|
—
|
|
340
|
|
1,722
|
|
5,540
|
|
7,262
|
|
(2,505
|
)
|
2004
|
|||||||||||||||||||||
|
Sherwood Forest
|
Kissimmee
|
FL
|
—
|
|
4,852
|
|
14,596
|
|
—
|
|
6,956
|
|
4,852
|
|
21,552
|
|
26,404
|
|
(12,907
|
)
|
1998
|
|||||||||||||||||||||
|
Sherwood Forest RV
|
Kissimmee
|
FL
|
—
|
|
2,870
|
|
3,621
|
|
568
|
|
3,457
|
|
3,438
|
|
7,078
|
|
10,516
|
|
(4,109
|
)
|
1998
|
|||||||||||||||||||||
|
Silk Oak
|
Clearwater
|
FL
|
—
|
|
1,649
|
|
5,028
|
|
—
|
|
326
|
|
1,649
|
|
5,354
|
|
7,003
|
|
(2,649
|
)
|
2002
|
|||||||||||||||||||||
|
Silver Dollar
|
Odessa
|
FL
|
(12,740
|
)
|
4,107
|
|
12,431
|
|
240
|
|
2,789
|
|
4,347
|
|
15,220
|
|
19,567
|
|
(6,833
|
)
|
2004
|
|||||||||||||||||||||
|
Sixth Ave.
|
Zephryhills
|
FL
|
—
|
|
837
|
|
2,518
|
|
—
|
|
103
|
|
837
|
|
2,621
|
|
3,458
|
|
(1,213
|
)
|
2004
|
|||||||||||||||||||||
|
Southern Palms
|
Eustis
|
FL
|
—
|
|
2,169
|
|
5,884
|
|
—
|
|
3,694
|
|
2,169
|
|
9,578
|
|
11,747
|
|
(5,802
|
)
|
1998
|
|||||||||||||||||||||
|
Southernaire
|
Mt. Dora
|
FL
|
—
|
|
796
|
|
2,395
|
|
—
|
|
264
|
|
796
|
|
2,659
|
|
3,455
|
|
(1,173
|
)
|
2004
|
|||||||||||||||||||||
|
Space Coast
|
Rockledge
|
FL
|
—
|
|
2,413
|
|
3,716
|
|
—
|
|
493
|
|
2,413
|
|
4,209
|
|
6,622
|
|
(624
|
)
|
2014
|
|||||||||||||||||||||
|
Starlight Ranch
|
Orlando
|
FL
|
(34,905
|
)
|
13,543
|
|
20,388
|
|
—
|
|
1,346
|
|
13,543
|
|
21,734
|
|
35,277
|
|
(5,998
|
)
|
2011
|
|||||||||||||||||||||
|
Sunshine Holiday MH
|
Ormond Beach
|
FL
|
—
|
|
2,001
|
|
6,004
|
|
—
|
|
919
|
|
2,001
|
|
6,923
|
|
8,924
|
|
(3,202
|
)
|
2004
|
|||||||||||||||||||||
|
Sunshine Holiday RV
|
Fort Lauderdale
|
FL
|
—
|
|
3,099
|
|
9,286
|
|
—
|
|
1,386
|
|
3,099
|
|
10,672
|
|
13,771
|
|
(4,519
|
)
|
2004
|
|||||||||||||||||||||
|
Sunshine Key
|
Big Pine Key
|
FL
|
—
|
|
5,273
|
|
15,822
|
|
—
|
|
5,240
|
|
5,273
|
|
21,062
|
|
26,335
|
|
(8,564
|
)
|
2004
|
|||||||||||||||||||||
|
Sunshine Travel
|
Vero Beach
|
FL
|
—
|
|
1,603
|
|
4,813
|
|
—
|
|
852
|
|
1,603
|
|
5,665
|
|
7,268
|
|
(2,408
|
)
|
2004
|
|||||||||||||||||||||
|
Tarpon Glen
|
Tarpon Springs
|
FL
|
—
|
|
2,678
|
|
4,016
|
|
—
|
|
314
|
|
2,678
|
|
4,330
|
|
7,008
|
|
(1,203
|
)
|
2011
|
|||||||||||||||||||||
|
Terra Ceia
|
Palmetto
|
FL
|
—
|
|
965
|
|
2,905
|
|
—
|
|
405
|
|
965
|
|
3,310
|
|
4,275
|
|
(1,464
|
)
|
2004
|
|||||||||||||||||||||
|
The Heritage
|
N. Ft. Myers
|
FL
|
(10,894
|
)
|
1,438
|
|
4,371
|
|
346
|
|
4,455
|
|
1,784
|
|
8,826
|
|
10,610
|
|
(6,174
|
)
|
1993
|
|||||||||||||||||||||
|
The Meadows
|
Palm Beach Gardens
|
FL
|
(9,934
|
)
|
3,229
|
|
9,870
|
|
—
|
|
6,541
|
|
3,229
|
|
16,411
|
|
19,640
|
|
(8,167
|
)
|
1999
|
|||||||||||||||||||||
|
Three Flags RV Resort
|
Wildwood
|
FL
|
—
|
|
228
|
|
684
|
|
—
|
|
461
|
|
228
|
|
1,145
|
|
1,373
|
|
(435
|
)
|
2006
|
|||||||||||||||||||||
S-7
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Toby’s
|
Arcadia
|
FL
|
$
|
(3,589
|
)
|
$
|
1,093
|
|
$
|
3,280
|
|
$
|
—
|
|
$
|
465
|
|
$
|
1,093
|
|
$
|
3,745
|
|
$
|
4,838
|
|
$
|
(1,730
|
)
|
2003
|
||||||||||||
|
Topics
|
Spring Hill
|
FL
|
—
|
|
844
|
|
2,568
|
|
—
|
|
604
|
|
844
|
|
3,172
|
|
4,016
|
|
(1,425
|
)
|
2004
|
|||||||||||||||||||||
|
Tropical Palms
|
Kissimmee
|
FL
|
—
|
|
5,677
|
|
17,116
|
|
—
|
|
9,694
|
|
5,677
|
|
26,810
|
|
32,487
|
|
(12,297
|
)
|
2004
|
|||||||||||||||||||||
|
Tropical Palms
|
Punta Gorda
|
FL
|
—
|
|
2,365
|
|
7,286
|
|
—
|
|
2,608
|
|
2,365
|
|
9,894
|
|
12,259
|
|
(3,197
|
)
|
2006
|
|||||||||||||||||||||
|
Vacation Village
|
Largo
|
FL
|
(4,703
|
)
|
1,315
|
|
3,946
|
|
—
|
|
690
|
|
1,315
|
|
4,636
|
|
5,951
|
|
(2,006
|
)
|
2004
|
|||||||||||||||||||||
|
Vero Palm
|
Vero Beach
|
FL
|
(11,988
|
)
|
6,697
|
|
9,025
|
|
—
|
|
490
|
|
6,697
|
|
9,515
|
|
16,212
|
|
(2,486
|
)
|
2011
|
|||||||||||||||||||||
|
Village Green
|
Vero Beach
|
FL
|
(21,397
|
)
|
15,901
|
|
25,175
|
|
—
|
|
1,177
|
|
15,901
|
|
26,352
|
|
42,253
|
|
(7,202
|
)
|
2011
|
|||||||||||||||||||||
|
Villas at Spanish Oaks
|
Ocala
|
FL
|
—
|
|
2,250
|
|
6,922
|
|
—
|
|
2,438
|
|
2,250
|
|
9,360
|
|
11,610
|
|
(6,591
|
)
|
1993
|
|||||||||||||||||||||
|
Whispering Pines - Largo
|
Largo
|
FL
|
—
|
|
8,218
|
|
14,054
|
|
—
|
|
495
|
|
8,218
|
|
14,549
|
|
22,767
|
|
(3,872
|
)
|
2011
|
|||||||||||||||||||||
|
Windmill Manor
|
Bradenton
|
FL
|
(13,709
|
)
|
2,153
|
|
6,125
|
|
—
|
|
1,998
|
|
2,153
|
|
8,123
|
|
10,276
|
|
(4,989
|
)
|
1998
|
|||||||||||||||||||||
|
Windmill Village
|
N. Ft. Myers
|
FL
|
—
|
|
1,417
|
|
5,440
|
|
—
|
|
2,493
|
|
1,417
|
|
7,933
|
|
9,350
|
|
(6,918
|
)
|
1983
|
|||||||||||||||||||||
|
Winds of St. Armands North
|
Sarasota
|
FL
|
(25,476
|
)
|
1,523
|
|
5,063
|
|
—
|
|
3,565
|
|
1,523
|
|
8,628
|
|
10,151
|
|
(7,043
|
)
|
1983
|
|||||||||||||||||||||
|
Winds of St. Armands South
|
Sarasota
|
FL
|
(16,605
|
)
|
1,106
|
|
3,162
|
|
—
|
|
1,419
|
|
1,106
|
|
4,581
|
|
5,687
|
|
(3,934
|
)
|
1983
|
|||||||||||||||||||||
|
Winter Garden
|
Winter Garden
|
FL
|
—
|
|
2,321
|
|
6,962
|
|
—
|
|
583
|
|
2,321
|
|
7,545
|
|
9,866
|
|
(2,643
|
)
|
2007
|
|||||||||||||||||||||
|
Coach Royale
|
Boise
|
ID
|
—
|
|
465
|
|
1,685
|
|
—
|
|
58
|
|
465
|
|
1,743
|
|
2,208
|
|
(497
|
)
|
2011
|
|||||||||||||||||||||
|
Maple Grove
|
Boise
|
ID
|
—
|
|
1,358
|
|
5,151
|
|
—
|
|
161
|
|
1,358
|
|
5,312
|
|
6,670
|
|
(1,500
|
)
|
2011
|
|||||||||||||||||||||
|
Shenandoah Estates
|
Boise
|
ID
|
—
|
|
1,287
|
|
7,603
|
|
—
|
|
387
|
|
1,287
|
|
7,990
|
|
9,277
|
|
(1,916
|
)
|
2011
|
|||||||||||||||||||||
|
West Meadow Estates
|
Boise
|
ID
|
(7,800
|
)
|
1,371
|
|
6,770
|
|
—
|
|
145
|
|
1,371
|
|
6,915
|
|
8,286
|
|
(1,788
|
)
|
2011
|
|||||||||||||||||||||
|
Golf Vistas Estates
|
Monee
|
IL
|
(11,195
|
)
|
2,842
|
|
4,719
|
|
1
|
|
6,892
|
|
2,843
|
|
11,611
|
|
14,454
|
|
(7,059
|
)
|
1997
|
|||||||||||||||||||||
|
O'Connell's
|
Amboy
|
IL
|
(3,923
|
)
|
1,648
|
|
4,974
|
|
—
|
|
2,405
|
|
1,648
|
|
7,379
|
|
9,027
|
|
(2,905
|
)
|
2004
|
|||||||||||||||||||||
|
Pheasant Lake Estates
|
Beecher
|
IL
|
(41,474
|
)
|
12,764
|
|
42,183
|
|
—
|
|
405
|
|
12,764
|
|
42,588
|
|
55,352
|
|
(7,783
|
)
|
2013
|
|||||||||||||||||||||
|
Pine Country
|
Belvidere
|
IL
|
—
|
|
53
|
|
166
|
|
—
|
|
1,118
|
|
53
|
|
1,284
|
|
1,337
|
|
(203
|
)
|
2006
|
|||||||||||||||||||||
|
Willow Lake Estates
|
Elgin
|
IL
|
—
|
|
6,138
|
|
21,033
|
|
—
|
|
8,291
|
|
6,138
|
|
29,324
|
|
35,462
|
|
(19,777
|
)
|
1994
|
|||||||||||||||||||||
|
Hoosier Estates
|
Lebanon
|
IN
|
—
|
|
2,293
|
|
7,197
|
|
—
|
|
124
|
|
2,293
|
|
7,321
|
|
9,614
|
|
(1,840
|
)
|
2011
|
|||||||||||||||||||||
|
Horseshoe Lake
|
Clinton
|
IN
|
—
|
|
155
|
|
365
|
|
2
|
|
589
|
|
157
|
|
954
|
|
1,111
|
|
(326
|
)
|
2004
|
|||||||||||||||||||||
|
Indian Lakes
|
Batesville
|
IN
|
—
|
|
450
|
|
1,061
|
|
6
|
|
4,153
|
|
456
|
|
5,214
|
|
5,670
|
|
(1,101
|
)
|
2004
|
|||||||||||||||||||||
|
Lakeside
|
New Carlisle
|
IN
|
—
|
|
426
|
|
1,281
|
|
—
|
|
207
|
|
426
|
|
1,488
|
|
1,914
|
|
(658
|
)
|
2004
|
|||||||||||||||||||||
|
North Glen Village
|
Westfield
|
IN
|
—
|
|
2,308
|
|
6,333
|
|
—
|
|
341
|
|
2,308
|
|
6,674
|
|
8,982
|
|
(1,742
|
)
|
2011
|
|||||||||||||||||||||
|
Oak Tree Village
|
Portage
|
IN
|
—
|
|
569
|
|
—
|
|
—
|
|
4,150
|
|
569
|
|
4,150
|
|
4,719
|
|
(3,346
|
)
|
1987
|
|||||||||||||||||||||
|
Twin Mills RV
|
Howe
|
IN
|
—
|
|
1,399
|
|
4,186
|
|
—
|
|
428
|
|
1,399
|
|
4,614
|
|
6,013
|
|
(1,699
|
)
|
2006
|
|||||||||||||||||||||
|
Diamond Caverns Resort & Golf Club
|
Park City
|
KY
|
—
|
|
530
|
|
1,512
|
|
—
|
|
305
|
|
530
|
|
1,817
|
|
2,347
|
|
(717
|
)
|
2006
|
|||||||||||||||||||||
S-8
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Gateway to Cape Cod
|
Rochester
|
MA
|
$
|
—
|
|
$
|
91
|
|
$
|
288
|
|
$
|
—
|
|
$
|
370
|
|
$
|
91
|
|
$
|
658
|
|
$
|
749
|
|
$
|
(241
|
)
|
2006
|
||||||||||||
|
Hillcrest
|
Rockland
|
MA
|
(1,749
|
)
|
2,034
|
|
3,182
|
|
—
|
|
124
|
|
2,034
|
|
3,306
|
|
5,340
|
|
(894
|
)
|
2011
|
|||||||||||||||||||||
|
Old Chatham RV
|
South Dennis
|
MA
|
(7,166
|
)
|
1,760
|
|
5,293
|
|
—
|
|
349
|
|
1,760
|
|
5,642
|
|
7,402
|
|
(2,256
|
)
|
2005
|
|||||||||||||||||||||
|
Sturbridge
|
Sturbridge
|
MA
|
—
|
|
110
|
|
347
|
|
—
|
|
696
|
|
110
|
|
1,043
|
|
1,153
|
|
(297
|
)
|
2006
|
|||||||||||||||||||||
|
The Glen
|
Norwell
|
MA
|
—
|
|
940
|
|
1,680
|
|
—
|
|
6
|
|
940
|
|
1,686
|
|
2,626
|
|
(466
|
)
|
2011
|
|||||||||||||||||||||
|
Fernwood
|
Capitol Heights
|
MD
|
(13,948
|
)
|
6,556
|
|
11,674
|
|
—
|
|
685
|
|
6,556
|
|
12,359
|
|
18,915
|
|
(3,199
|
)
|
2011
|
|||||||||||||||||||||
|
Williams Estates and Peppermint Woods
|
Middle River
|
MD
|
—
|
|
22,774
|
|
42,575
|
|
—
|
|
1,288
|
|
22,774
|
|
43,863
|
|
66,637
|
|
(11,294
|
)
|
2011
|
|||||||||||||||||||||
|
Moody Beach
|
Moody
|
ME
|
—
|
|
93
|
|
292
|
|
—
|
|
638
|
|
93
|
|
930
|
|
1,023
|
|
(238
|
)
|
2006
|
|||||||||||||||||||||
|
Pinehirst RV Park
|
Old Orchard Beach
|
ME
|
(10,767
|
)
|
1,942
|
|
5,827
|
|
—
|
|
1,758
|
|
1,942
|
|
7,585
|
|
9,527
|
|
(2,825
|
)
|
2005
|
|||||||||||||||||||||
|
Mt. Desert Narrows
|
Bar Harbor
|
ME
|
—
|
|
1,037
|
|
3,127
|
|
—
|
|
327
|
|
1,037
|
|
3,454
|
|
4,491
|
|
(1,134
|
)
|
2007
|
|||||||||||||||||||||
|
Narrows Too
|
Trenton
|
ME
|
—
|
|
1,451
|
|
4,408
|
|
—
|
|
203
|
|
1,451
|
|
4,611
|
|
6,062
|
|
(1,526
|
)
|
2007
|
|||||||||||||||||||||
|
Patton Pond
|
Ellsworth
|
ME
|
—
|
|
267
|
|
802
|
|
—
|
|
166
|
|
267
|
|
968
|
|
1,235
|
|
(327
|
)
|
2007
|
|||||||||||||||||||||
|
Bear Cave Resort
|
Buchanan
|
MI
|
—
|
|
176
|
|
516
|
|
—
|
|
237
|
|
176
|
|
753
|
|
929
|
|
(289
|
)
|
2006
|
|||||||||||||||||||||
|
Lake in the Hills
|
Auburn Hills
|
MI
|
(3,935
|
)
|
1,792
|
|
5,599
|
|
—
|
|
210
|
|
1,792
|
|
5,809
|
|
7,601
|
|
(1,695
|
)
|
2011
|
|||||||||||||||||||||
|
St Clair
|
St Clair
|
MI
|
—
|
|
453
|
|
1,068
|
|
6
|
|
456
|
|
459
|
|
1,524
|
|
1,983
|
|
(657
|
)
|
2004
|
|||||||||||||||||||||
|
Swan Creek
|
Ypsilanti
|
MI
|
(5,141
|
)
|
1,844
|
|
7,180
|
|
—
|
|
246
|
|
1,844
|
|
7,426
|
|
9,270
|
|
(2,176
|
)
|
2011
|
|||||||||||||||||||||
|
Cedar Knolls
|
Apple Valley
|
MN
|
(15,117
|
)
|
10,021
|
|
14,357
|
|
—
|
|
548
|
|
10,021
|
|
14,905
|
|
24,926
|
|
(4,215
|
)
|
2011
|
|||||||||||||||||||||
|
Cimarron Park
|
Lake Elmo
|
MN
|
—
|
|
11,097
|
|
23,132
|
|
(10,234
|
)
|
(18,863
|
)
|
863
|
|
4,269
|
|
5,132
|
|
(3,451
|
)
|
2011
|
|||||||||||||||||||||
|
Rockford Riverview Estates
|
Rockford
|
MN
|
—
|
|
2,959
|
|
8,882
|
|
—
|
|
336
|
|
2,959
|
|
9,218
|
|
12,177
|
|
(2,516
|
)
|
2011
|
|||||||||||||||||||||
|
Rosemount Woods
|
Rosemount
|
MN
|
—
|
|
4,314
|
|
8,932
|
|
—
|
|
331
|
|
4,314
|
|
9,263
|
|
13,577
|
|
(2,406
|
)
|
2011
|
|||||||||||||||||||||
|
Bogue Pines
|
Newport
|
NC
|
—
|
|
1,476
|
|
2,592
|
|
—
|
|
18
|
|
1,476
|
|
2,610
|
|
4,086
|
|
(462
|
)
|
2015
|
|||||||||||||||||||||
|
Forest Lake
|
Advance
|
NC
|
—
|
|
986
|
|
2,325
|
|
13
|
|
878
|
|
999
|
|
3,203
|
|
4,202
|
|
(1,292
|
)
|
2004
|
|||||||||||||||||||||
|
Goose Creek
|
Newport
|
NC
|
(15,224
|
)
|
4,612
|
|
13,848
|
|
750
|
|
2,204
|
|
5,362
|
|
16,052
|
|
21,414
|
|
(7,161
|
)
|
2004
|
|||||||||||||||||||||
|
Green Mountain Park
|
Lenoir
|
NC
|
—
|
|
1,037
|
|
3,075
|
|
—
|
|
1,243
|
|
1,037
|
|
4,318
|
|
5,355
|
|
(1,371
|
)
|
2006
|
|||||||||||||||||||||
|
Lake Gaston
|
Littleton
|
NC
|
—
|
|
130
|
|
409
|
|
—
|
|
1,286
|
|
130
|
|
1,695
|
|
1,825
|
|
(297
|
)
|
2006
|
|||||||||||||||||||||
|
Lake Myers RV
|
Mocksville
|
NC
|
—
|
|
1,504
|
|
4,587
|
|
—
|
|
516
|
|
1,504
|
|
5,103
|
|
6,607
|
|
(1,897
|
)
|
2006
|
|||||||||||||||||||||
|
Scenic
|
Asheville
|
NC
|
—
|
|
1,183
|
|
3,511
|
|
—
|
|
573
|
|
1,183
|
|
4,084
|
|
5,267
|
|
(1,458
|
)
|
2006
|
|||||||||||||||||||||
|
Twin Lakes
|
Chocowinity
|
NC
|
—
|
|
1,709
|
|
3,361
|
|
—
|
|
751
|
|
1,709
|
|
4,112
|
|
5,821
|
|
(1,794
|
)
|
2004
|
|||||||||||||||||||||
|
Waterway RV
|
Cedar Point
|
NC
|
(5,464
|
)
|
2,392
|
|
7,185
|
|
—
|
|
836
|
|
2,392
|
|
8,021
|
|
10,413
|
|
(3,508
|
)
|
2004
|
|||||||||||||||||||||
|
Whispering Pines - NC
|
Newport
|
NC
|
—
|
|
3,096
|
|
5,082
|
|
0.001
|
|
78
|
|
3,097
|
|
5,159
|
|
8,256
|
|
(843
|
)
|
2015
|
|||||||||||||||||||||
S-9
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Buena Vista
|
Fargo
|
ND
|
$
|
—
|
|
$
|
4,563
|
|
$
|
14,949
|
|
$
|
—
|
|
$
|
747
|
|
$
|
4,563
|
|
$
|
15,696
|
|
$
|
20,259
|
|
$
|
(3,990
|
)
|
2011
|
||||||||||||
|
Meadow Park
|
Fargo
|
ND
|
—
|
|
943
|
|
2,907
|
|
—
|
|
249
|
|
943
|
|
3,156
|
|
4,099
|
|
(853
|
)
|
2011
|
|||||||||||||||||||||
|
Pine Acres
|
Raymond
|
NH
|
—
|
|
3,096
|
|
2,102
|
|
—
|
|
324
|
|
3,096
|
|
2,426
|
|
5,522
|
|
(595
|
)
|
2014
|
|||||||||||||||||||||
|
Sandy Beach RV
|
Contoocook
|
NH
|
—
|
|
1,755
|
|
5,265
|
|
—
|
|
231
|
|
1,755
|
|
5,496
|
|
7,251
|
|
(2,266
|
)
|
2005
|
|||||||||||||||||||||
|
Tuxbury Resort
|
South Hampton
|
NH
|
—
|
|
3,557
|
|
3,910
|
|
—
|
|
1,067
|
|
3,557
|
|
4,977
|
|
8,534
|
|
(1,540
|
)
|
2007
|
|||||||||||||||||||||
|
Chestnut Lake
|
Port Republic
|
NJ
|
—
|
|
337
|
|
796
|
|
5
|
|
1,198
|
|
342
|
|
1,994
|
|
2,336
|
|
(549
|
)
|
2004
|
|||||||||||||||||||||
|
Echo Farms
|
Ocean View
|
NJ
|
—
|
|
2,840
|
|
3,045
|
|
—
|
|
1,248
|
|
2,840
|
|
4,293
|
|
7,133
|
|
(674
|
)
|
2014
|
|||||||||||||||||||||
|
Lake & Shore
|
Ocean View
|
NJ
|
—
|
|
378
|
|
1,192
|
|
—
|
|
2,089
|
|
378
|
|
3,281
|
|
3,659
|
|
(1,115
|
)
|
2006
|
|||||||||||||||||||||
|
Mays Landing
|
Mays Landing
|
NJ
|
—
|
|
536
|
|
289
|
|
—
|
|
531
|
|
536
|
|
820
|
|
1,356
|
|
(79
|
)
|
2014
|
|||||||||||||||||||||
|
Pine Ridge at Crestwood
|
Whiting
|
NJ
|
—
|
|
17,367
|
|
33,127
|
|
—
|
|
1,654
|
|
17,367
|
|
34,781
|
|
52,148
|
|
(9,035
|
)
|
2011
|
|||||||||||||||||||||
|
Sea Pines
|
Swainton
|
NJ
|
—
|
|
198
|
|
625
|
|
—
|
|
1,307
|
|
198
|
|
1,932
|
|
2,130
|
|
(576
|
)
|
2006
|
|||||||||||||||||||||
|
Bonanza
|
Las Vegas
|
NV
|
—
|
|
908
|
|
2,643
|
|
—
|
|
1,965
|
|
908
|
|
4,608
|
|
5,516
|
|
(3,745
|
)
|
1983
|
|||||||||||||||||||||
|
Boulder Cascade
|
Las Vegas
|
NV
|
(7,640
|
)
|
2,995
|
|
9,020
|
|
—
|
|
2,823
|
|
2,995
|
|
11,843
|
|
14,838
|
|
(7,388
|
)
|
1998
|
|||||||||||||||||||||
|
Cabana
|
Las Vegas
|
NV
|
(8,475
|
)
|
2,648
|
|
7,989
|
|
—
|
|
1,132
|
|
2,648
|
|
9,121
|
|
11,769
|
|
(6,778
|
)
|
1994
|
|||||||||||||||||||||
|
Flamingo West
|
Las Vegas
|
NV
|
(12,488
|
)
|
1,730
|
|
5,266
|
|
—
|
|
1,971
|
|
1,730
|
|
7,237
|
|
8,967
|
|
(5,195
|
)
|
1994
|
|||||||||||||||||||||
|
Las Vegas
|
Las Vegas
|
NV
|
—
|
|
1,049
|
|
2,473
|
|
14
|
|
1,061
|
|
1,063
|
|
3,534
|
|
4,597
|
|
(1,306
|
)
|
2004
|
|||||||||||||||||||||
|
Mountain View - NV
|
Henderson
|
NV
|
(18,353
|
)
|
16,665
|
|
25,915
|
|
—
|
|
548
|
|
16,665
|
|
26,463
|
|
43,128
|
|
(6,786
|
)
|
2011
|
|||||||||||||||||||||
|
Villa Borega
|
Las Vegas
|
NV
|
(8,887
|
)
|
2,896
|
|
8,774
|
|
—
|
|
1,315
|
|
2,896
|
|
10,089
|
|
12,985
|
|
(6,649
|
)
|
1997
|
|||||||||||||||||||||
|
Alpine Lake
|
Corinth
|
NY
|
—
|
|
4,783
|
|
14,125
|
|
153
|
|
2,588
|
|
4,936
|
|
16,713
|
|
21,649
|
|
(6,352
|
)
|
2005
|
|||||||||||||||||||||
|
Brennan Beach
|
Pulaski
|
NY
|
—
|
|
7,325
|
|
21,141
|
|
—
|
|
5,611
|
|
7,325
|
|
26,752
|
|
34,077
|
|
(10,339
|
)
|
2005
|
|||||||||||||||||||||
|
Greenwood Village
|
Manorville
|
NY
|
—
|
|
3,667
|
|
9,414
|
|
484
|
|
6,439
|
|
4,151
|
|
15,853
|
|
20,004
|
|
(8,956
|
)
|
1998
|
|||||||||||||||||||||
|
Lake George Escape
|
Lake George
|
NY
|
—
|
|
3,562
|
|
10,708
|
|
—
|
|
4,377
|
|
3,562
|
|
15,085
|
|
18,647
|
|
(5,282
|
)
|
2005
|
|||||||||||||||||||||
|
Lake George Schroon Valley
|
Warrensburg
|
NY
|
—
|
|
540
|
|
1,626
|
|
—
|
|
214
|
|
540
|
|
1,840
|
|
2,380
|
|
(570
|
)
|
2008
|
|||||||||||||||||||||
|
Rondout Valley Resort
|
Accord
|
NY
|
—
|
|
1,115
|
|
3,240
|
|
—
|
|
739
|
|
1,115
|
|
3,979
|
|
5,094
|
|
(1,460
|
)
|
2006
|
|||||||||||||||||||||
|
The Woodlands
|
Lockport
|
NY
|
(45,241
|
)
|
12,183
|
|
39,687
|
|
—
|
|
1,488
|
|
12,183
|
|
41,175
|
|
53,358
|
|
(10,570
|
)
|
2011
|
|||||||||||||||||||||
|
Kenisee Lake
|
Jefferson
|
OH
|
—
|
|
295
|
|
696
|
|
4
|
|
346
|
|
299
|
|
1,042
|
|
1,341
|
|
(381
|
)
|
2004
|
|||||||||||||||||||||
|
Wilmington
|
Wilmington
|
OH
|
—
|
|
235
|
|
555
|
|
3
|
|
417
|
|
238
|
|
972
|
|
1,210
|
|
(335
|
)
|
2004
|
|||||||||||||||||||||
|
Bend
|
Bend
|
OR
|
—
|
|
733
|
|
1,729
|
|
10
|
|
1,077
|
|
743
|
|
2,806
|
|
3,549
|
|
(1,064
|
)
|
2004
|
|||||||||||||||||||||
|
Falcon Wood Village
|
Eugene
|
OR
|
—
|
|
1,112
|
|
3,426
|
|
—
|
|
718
|
|
1,112
|
|
4,144
|
|
5,256
|
|
(2,657
|
)
|
1997
|
|||||||||||||||||||||
S-10
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Mt. Hood
|
Welches
|
OR
|
$
|
—
|
|
$
|
1,817
|
|
$
|
5,733
|
|
$
|
—
|
|
$
|
2,066
|
|
$
|
1,817
|
|
$
|
7,799
|
|
$
|
9,616
|
|
$
|
(3,322
|
)
|
2002
|
||||||||||||
|
Pacific City
|
Cloverdale
|
OR
|
—
|
|
1,076
|
|
2,539
|
|
15
|
|
1,501
|
|
1,091
|
|
4,040
|
|
5,131
|
|
(1,730
|
)
|
2004
|
|||||||||||||||||||||
|
Portland Fairview
|
Fairview
|
OR
|
—
|
|
7,330
|
|
10,278
|
|
—
|
|
147
|
|
7,330
|
|
10,424
|
|
17,754
|
|
(1,308
|
)
|
2016
|
|||||||||||||||||||||
|
Quail Hollow
|
Fairview
|
OR
|
—
|
|
—
|
|
3,249
|
|
—
|
|
721
|
|
—
|
|
3,970
|
|
3,970
|
|
(2,515
|
)
|
1997
|
|||||||||||||||||||||
|
Seaside
|
Seaside
|
OR
|
—
|
|
891
|
|
2,101
|
|
12
|
|
913
|
|
903
|
|
3,014
|
|
3,917
|
|
(1,220
|
)
|
2004
|
|||||||||||||||||||||
|
Shadowbrook
|
Clackamas
|
OR
|
—
|
|
1,197
|
|
3,693
|
|
—
|
|
669
|
|
1,197
|
|
4,362
|
|
5,559
|
|
(2,828
|
)
|
1997
|
|||||||||||||||||||||
|
South Jetty
|
Florence
|
OR
|
—
|
|
678
|
|
1,598
|
|
9
|
|
882
|
|
687
|
|
2,480
|
|
3,167
|
|
(875
|
)
|
2004
|
|||||||||||||||||||||
|
Whalers Rest
|
South Beach
|
OR
|
—
|
|
754
|
|
1,777
|
|
10
|
|
772
|
|
764
|
|
2,549
|
|
3,313
|
|
(1,041
|
)
|
2004
|
|||||||||||||||||||||
|
Appalachian
|
Shartlesville
|
PA
|
—
|
|
1,666
|
|
5,044
|
|
—
|
|
707
|
|
1,666
|
|
5,751
|
|
7,417
|
|
(2,067
|
)
|
2006
|
|||||||||||||||||||||
|
Circle M
|
Lancaster
|
PA
|
—
|
|
330
|
|
1,041
|
|
—
|
|
1,300
|
|
330
|
|
2,341
|
|
2,671
|
|
(695
|
)
|
2006
|
|||||||||||||||||||||
|
Dutch County
|
Manheim
|
PA
|
—
|
|
88
|
|
278
|
|
—
|
|
234
|
|
88
|
|
512
|
|
600
|
|
(164
|
)
|
2006
|
|||||||||||||||||||||
|
Gettysburg Farm
|
Dover
|
PA
|
—
|
|
111
|
|
350
|
|
—
|
|
298
|
|
111
|
|
648
|
|
759
|
|
(206
|
)
|
2006
|
|||||||||||||||||||||
|
Green Acres
|
Breinigsville
|
PA
|
(38,114
|
)
|
2,680
|
|
7,479
|
|
—
|
|
4,917
|
|
2,680
|
|
12,396
|
|
15,076
|
|
(10,058
|
)
|
1988
|
|||||||||||||||||||||
|
Greenbriar Village
|
Bath
|
PA
|
—
|
|
8,359
|
|
16,941
|
|
—
|
|
363
|
|
8,359
|
|
17,304
|
|
25,663
|
|
(4,384
|
)
|
2011
|
|||||||||||||||||||||
|
Hershey
|
Lebanon
|
PA
|
—
|
|
1,284
|
|
3,028
|
|
17
|
|
1,914
|
|
1,301
|
|
4,942
|
|
6,243
|
|
(1,862
|
)
|
2004
|
|||||||||||||||||||||
|
Lil Wolf
|
Orefield
|
PA
|
—
|
|
5,627
|
|
13,593
|
|
—
|
|
2,420
|
|
5,627
|
|
16,013
|
|
21,640
|
|
(3,647
|
)
|
2011
|
|||||||||||||||||||||
|
Mountain View - PA
|
Walnutport
|
PA
|
—
|
|
3,207
|
|
7,182
|
|
—
|
|
302
|
|
3,207
|
|
7,484
|
|
10,691
|
|
(1,935
|
)
|
2011
|
|||||||||||||||||||||
|
Robin Hill
|
Lenhartsville
|
PA
|
—
|
|
1,263
|
|
3,786
|
|
—
|
|
404
|
|
1,263
|
|
4,190
|
|
5,453
|
|
(1,232
|
)
|
2009
|
|||||||||||||||||||||
|
Scotrun
|
Scotrun
|
PA
|
—
|
|
153
|
|
483
|
|
—
|
|
242
|
|
153
|
|
725
|
|
878
|
|
(255
|
)
|
2006
|
|||||||||||||||||||||
|
Spring Gulch
|
New Holland
|
PA
|
—
|
|
1,593
|
|
4,795
|
|
—
|
|
815
|
|
1,593
|
|
5,610
|
|
7,203
|
|
(2,482
|
)
|
2004
|
|||||||||||||||||||||
|
Sun Valley
|
Bowmansville
|
PA
|
—
|
|
866
|
|
2,601
|
|
—
|
|
758
|
|
866
|
|
3,359
|
|
4,225
|
|
(898
|
)
|
2009
|
|||||||||||||||||||||
|
Timothy Lake North
|
East Stroudsburg
|
PA
|
—
|
|
296
|
|
933
|
|
—
|
|
748
|
|
296
|
|
1,681
|
|
1,977
|
|
(507
|
)
|
2006
|
|||||||||||||||||||||
|
Timothy Lake South
|
East Stroudsburg
|
PA
|
—
|
|
206
|
|
649
|
|
—
|
|
184
|
|
206
|
|
833
|
|
1,039
|
|
(276
|
)
|
2006
|
|||||||||||||||||||||
|
Carolina Landing
|
Fair Play
|
SC
|
—
|
|
457
|
|
1,078
|
|
6
|
|
529
|
|
463
|
|
1,607
|
|
2,070
|
|
(610
|
)
|
2004
|
|||||||||||||||||||||
|
Inlet Oaks
|
Murrells Inlet
|
SC
|
—
|
|
1,546
|
|
4,642
|
|
—
|
|
252
|
|
1,546
|
|
4,894
|
|
6,440
|
|
(1,882
|
)
|
2006
|
|||||||||||||||||||||
|
The Oaks at Point South
|
Yemassee
|
SC
|
—
|
|
267
|
|
810
|
|
—
|
|
141
|
|
267
|
|
951
|
|
1,218
|
|
(357
|
)
|
2006
|
|||||||||||||||||||||
|
Cherokee Landing
|
Middleton
|
TN
|
—
|
|
118
|
|
279
|
|
2
|
|
143
|
|
120
|
|
422
|
|
542
|
|
(169
|
)
|
2004
|
|||||||||||||||||||||
|
Natchez Trace
|
Hohenwald
|
TN
|
—
|
|
533
|
|
1,257
|
|
7
|
|
938
|
|
540
|
|
2,195
|
|
2,735
|
|
(827
|
)
|
2004
|
|||||||||||||||||||||
|
Alamo Palms Resort
|
Harlingen
|
TX
|
(6,234
|
)
|
1,562
|
|
7,924
|
|
—
|
|
292
|
|
1,562
|
|
8,216
|
|
9,778
|
|
(2,047
|
)
|
2012
|
|||||||||||||||||||||
|
Bay Landing
|
Bridgeport
|
TX
|
—
|
|
438
|
|
1,033
|
|
6
|
|
1,061
|
|
444
|
|
2,094
|
|
2,538
|
|
(646
|
)
|
2004
|
|||||||||||||||||||||
|
Colorado River
|
Columbus
|
TX
|
—
|
|
466
|
|
1,099
|
|
6
|
|
870
|
|
472
|
|
1,969
|
|
2,441
|
|
(603
|
)
|
2004
|
|||||||||||||||||||||
|
Country Sunshine
|
Weslaco
|
TX
|
—
|
|
627
|
|
1,881
|
|
—
|
|
1,016
|
|
627
|
|
2,897
|
|
3,524
|
|
(1,341
|
)
|
2004
|
|||||||||||||||||||||
|
Fun n Sun RV
|
San Benito
|
TX
|
(6,120
|
)
|
2,533
|
|
5,560
|
|
408
|
|
6,587
|
|
2,941
|
|
12,147
|
|
15,088
|
|
(7,478
|
)
|
1998
|
|||||||||||||||||||||
|
Lake Conroe
|
Willis
|
TX
|
—
|
|
1,363
|
|
3,214
|
|
18
|
|
9,357
|
|
1,381
|
|
12,571
|
|
13,952
|
|
(2,554
|
)
|
2004
|
|||||||||||||||||||||
S-11
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Lake Tawakoni
|
Point
|
TX
|
$
|
—
|
|
$
|
35
|
|
$
|
2,320
|
|
$
|
—
|
|
$
|
529
|
|
$
|
35
|
|
$
|
2,849
|
|
$
|
2,884
|
|
$
|
(1,151
|
)
|
2004
|
||||||||||||
|
Lake Texoma
|
Gordonville
|
TX
|
—
|
|
488
|
|
1,151
|
|
6
|
|
1,609
|
|
494
|
|
2,760
|
|
3,254
|
|
(911
|
)
|
2004
|
|||||||||||||||||||||
|
Lake Whitney
|
Whitney
|
TX
|
—
|
|
679
|
|
1,602
|
|
10
|
|
1,226
|
|
689
|
|
2,828
|
|
3,517
|
|
(1,011
|
)
|
2004
|
|||||||||||||||||||||
|
Lakewood
|
Harlingen
|
TX
|
—
|
|
325
|
|
979
|
|
—
|
|
347
|
|
325
|
|
1,326
|
|
1,651
|
|
(611
|
)
|
2004
|
|||||||||||||||||||||
|
Medina Lake
|
Lakehills
|
TX
|
—
|
|
936
|
|
2,208
|
|
13
|
|
1,200
|
|
949
|
|
3,408
|
|
4,357
|
|
(1,410
|
)
|
2004
|
|||||||||||||||||||||
|
Paradise Park RV
|
Harlingen
|
TX
|
—
|
|
1,568
|
|
4,705
|
|
—
|
|
1,048
|
|
1,568
|
|
5,753
|
|
7,321
|
|
(2,580
|
)
|
2004
|
|||||||||||||||||||||
|
Paradise South
|
Mercedes
|
TX
|
—
|
|
448
|
|
1,345
|
|
—
|
|
533
|
|
448
|
|
1,878
|
|
2,326
|
|
(790
|
)
|
2004
|
|||||||||||||||||||||
|
Southern Comfort
|
Weslaco
|
TX
|
(4,554
|
)
|
1,108
|
|
3,323
|
|
—
|
|
530
|
|
1,108
|
|
3,853
|
|
4,961
|
|
(1,767
|
)
|
2004
|
|||||||||||||||||||||
|
Sunshine RV
|
Harlingen
|
TX
|
—
|
|
1,494
|
|
4,484
|
|
—
|
|
1,442
|
|
1,494
|
|
5,926
|
|
7,420
|
|
(2,615
|
)
|
2004
|
|||||||||||||||||||||
|
Tropic Winds
|
Harlingen
|
TX
|
—
|
|
1,221
|
|
3,809
|
|
—
|
|
755
|
|
1,221
|
|
4,564
|
|
5,785
|
|
(2,281
|
)
|
2002
|
|||||||||||||||||||||
|
Victoria Palms Resort
|
Harlingen
|
TX
|
(10,546
|
)
|
2,849
|
|
12,305
|
|
—
|
|
1,700
|
|
2,849
|
|
14,005
|
|
16,854
|
|
(3,572
|
)
|
2012
|
|||||||||||||||||||||
|
All Seasons
|
Salt Lake City
|
UT
|
—
|
|
510
|
|
1,623
|
|
—
|
|
646
|
|
510
|
|
2,269
|
|
2,779
|
|
(1,419
|
)
|
1997
|
|||||||||||||||||||||
|
St. George
|
Hurricane
|
UT
|
—
|
|
64
|
|
264
|
|
2
|
|
550
|
|
66
|
|
814
|
|
880
|
|
(179
|
)
|
2010
|
|||||||||||||||||||||
|
Westwood Village
|
Farr West
|
UT
|
—
|
|
1,346
|
|
4,179
|
|
—
|
|
2,370
|
|
1,346
|
|
6,549
|
|
7,895
|
|
(4,030
|
)
|
1997
|
|||||||||||||||||||||
|
Bethpage
|
Urbana
|
VA
|
—
|
|
33,486
|
|
50,229
|
|
868
|
|
1,331
|
|
34,354
|
|
51,560
|
|
85,914
|
|
—
|
|
2017
|
|||||||||||||||||||||
|
Chesapeake Bay
|
Cloucester
|
VA
|
—
|
|
1,230
|
|
2,900
|
|
16
|
|
2,412
|
|
1,246
|
|
5,312
|
|
6,558
|
|
(1,944
|
)
|
2004
|
|||||||||||||||||||||
|
Grey's Point
|
Topping
|
VA
|
—
|
|
19,402
|
|
29,103
|
|
—
|
|
7
|
|
19,402
|
|
29,110
|
|
48,512
|
|
—
|
|
2017
|
|||||||||||||||||||||
|
Harbor View
|
Colonial Beach
|
VA
|
—
|
|
64
|
|
202
|
|
—
|
|
626
|
|
64
|
|
828
|
|
892
|
|
(239
|
)
|
2006
|
|||||||||||||||||||||
|
Lynchburg
|
Gladys
|
VA
|
—
|
|
266
|
|
627
|
|
3
|
|
369
|
|
269
|
|
996
|
|
1,265
|
|
(386
|
)
|
2004
|
|||||||||||||||||||||
|
Meadows of Chantilly
|
Chantilly
|
VA
|
(42,210
|
)
|
5,430
|
|
16,440
|
|
—
|
|
7,941
|
|
5,430
|
|
24,381
|
|
29,811
|
|
(16,617
|
)
|
1994
|
|||||||||||||||||||||
|
Regency Lakes
|
Winchester
|
VA
|
(9,216
|
)
|
9,757
|
|
19,055
|
|
—
|
|
1,912
|
|
9,757
|
|
20,967
|
|
30,724
|
|
(5,203
|
)
|
2011
|
|||||||||||||||||||||
|
Virginia Landing
|
Quinby
|
VA
|
—
|
|
602
|
|
1,419
|
|
8
|
|
388
|
|
610
|
|
1,807
|
|
2,417
|
|
(765
|
)
|
2004
|
|||||||||||||||||||||
|
Williamsburg
|
Williamsburg
|
VA
|
—
|
|
111
|
|
350
|
|
—
|
|
325
|
|
111
|
|
675
|
|
786
|
|
(212
|
)
|
2006
|
|||||||||||||||||||||
|
Birch Bay
|
Blaine
|
WA
|
—
|
|
502
|
|
1,185
|
|
7
|
|
195
|
|
509
|
|
1,380
|
|
1,889
|
|
(592
|
)
|
2004
|
|||||||||||||||||||||
|
Chehalis
|
Chehalis
|
WA
|
—
|
|
590
|
|
1,392
|
|
8
|
|
1,511
|
|
598
|
|
2,903
|
|
3,501
|
|
(1,006
|
)
|
2004
|
|||||||||||||||||||||
|
Crescent Bar
|
Quincy
|
WA
|
—
|
|
314
|
|
741
|
|
4
|
|
484
|
|
318
|
|
1,225
|
|
1,543
|
|
(500
|
)
|
2004
|
|||||||||||||||||||||
|
Grandy Creek
|
Concrete
|
WA
|
—
|
|
475
|
|
1,425
|
|
—
|
|
391
|
|
475
|
|
1,816
|
|
2,291
|
|
(594
|
)
|
2008
|
|||||||||||||||||||||
|
Kloshe Illahee
|
Federal Way
|
WA
|
(15,217
|
)
|
2,408
|
|
7,286
|
|
—
|
|
866
|
|
2,408
|
|
8,152
|
|
10,560
|
|
(5,380
|
)
|
1997
|
|||||||||||||||||||||
|
La Conner
|
La Conner
|
WA
|
—
|
|
—
|
|
2,016
|
|
—
|
|
1,122
|
|
—
|
|
3,138
|
|
3,138
|
|
(1,387
|
)
|
2004
|
|||||||||||||||||||||
|
Leavenworth
|
Leavenworth
|
WA
|
—
|
|
786
|
|
1,853
|
|
10
|
|
873
|
|
796
|
|
2,726
|
|
3,522
|
|
(1,089
|
)
|
2004
|
|||||||||||||||||||||
|
Little Diamond
|
Newport
|
WA
|
—
|
|
353
|
|
834
|
|
5
|
|
926
|
|
358
|
|
1,760
|
|
2,118
|
|
(582
|
)
|
2004
|
|||||||||||||||||||||
|
Long Beach
|
Seaview
|
WA
|
—
|
|
321
|
|
758
|
|
5
|
|
441
|
|
326
|
|
1,199
|
|
1,525
|
|
(444
|
)
|
2004
|
|||||||||||||||||||||
|
Mount Vernon
|
Bow
|
WA
|
—
|
|
621
|
|
1,464
|
|
8
|
|
1,342
|
|
629
|
|
2,806
|
|
3,435
|
|
(969
|
)
|
2004
|
|||||||||||||||||||||
S-12
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
|
|
|
|
|
Initial Cost to
Company
|
Costs Capitalized
Subsequent to
Acquisition
(Improvements)
|
Gross Amount Carried
at Close of Period 12/31/17 |
|
|
||||||||||||||||||||||||||||||||||
|
Real Estate
(1)
|
Location
|
Encumbrances
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Land
|
Depreciable
Property
|
Total
|
Accumulated
Depreciation
|
Date of
Acquisition
|
|||||||||||||||||||||||||||||||
|
Oceana
|
Oceana City
|
WA
|
$
|
—
|
|
$
|
283
|
|
$
|
668
|
|
$
|
4
|
|
$
|
447
|
|
$
|
287
|
|
$
|
1,115
|
|
$
|
1,402
|
|
$
|
(343
|
)
|
2004
|
||||||||||||
|
Paradise
|
Silver Creek
|
WA
|
—
|
|
466
|
|
1,099
|
|
6
|
|
583
|
|
472
|
|
1,682
|
|
2,154
|
|
(641
|
)
|
2004
|
|||||||||||||||||||||
|
Tall Chief
|
Fall City
|
WA
|
—
|
|
314
|
|
946
|
|
—
|
|
489
|
|
314
|
|
1,435
|
|
1,749
|
|
(421
|
)
|
2010
|
|||||||||||||||||||||
|
Thunderbird
|
Monroe
|
WA
|
—
|
|
500
|
|
1,178
|
|
6
|
|
374
|
|
506
|
|
1,552
|
|
2,058
|
|
(646
|
)
|
2004
|
|||||||||||||||||||||
|
Arrowhead
|
Wisconsin Dells
|
WI
|
—
|
|
522
|
|
1,616
|
|
—
|
|
537
|
|
522
|
|
2,153
|
|
2,675
|
|
(794
|
)
|
2006
|
|||||||||||||||||||||
|
Blackhawk
|
Milton
|
WI
|
—
|
|
1,789
|
|
7,613
|
|
—
|
|
328
|
|
1,789
|
|
7,941
|
|
9,730
|
|
(1,283
|
)
|
2014
|
|||||||||||||||||||||
|
Fremont
|
Fremont
|
WI
|
—
|
|
1,437
|
|
4,296
|
|
—
|
|
886
|
|
1,437
|
|
5,182
|
|
6,619
|
|
(2,270
|
)
|
2004
|
|||||||||||||||||||||
|
Lakeland
|
Milton
|
WI
|
—
|
|
3,159
|
|
13,830
|
|
—
|
|
402
|
|
3,159
|
|
14,232
|
|
17,391
|
|
(2,238
|
)
|
2014
|
|||||||||||||||||||||
|
Neshonoc Lakeside
|
LaCrosse County
|
WI
|
(5,212
|
)
|
1,106
|
|
4,862
|
|
(1
|
)
|
103
|
|
1,105
|
|
4,964
|
|
6,069
|
|
(783
|
)
|
2013
|
|||||||||||||||||||||
|
Plymouth Rock
|
Elkhart Lake
|
WI
|
—
|
|
2,293
|
|
6,879
|
|
—
|
|
1,155
|
|
2,293
|
|
8,034
|
|
10,327
|
|
(2,228
|
)
|
2009
|
|||||||||||||||||||||
|
Rainbow Lake Manor
|
Bristol
|
WI
|
—
|
|
4,474
|
|
16,594
|
|
—
|
|
558
|
|
4,474
|
|
17,152
|
|
21,626
|
|
(3,177
|
)
|
2013
|
|||||||||||||||||||||
|
Tranquil Timbers
|
Sturgeon Bay
|
WI
|
—
|
|
714
|
|
2,152
|
|
—
|
|
481
|
|
714
|
|
2,633
|
|
3,347
|
|
(1,008
|
)
|
2006
|
|||||||||||||||||||||
|
Westwood Estates
|
Pleasant Prairie
|
WI
|
—
|
|
5,382
|
|
19,732
|
|
—
|
|
1,214
|
|
5,382
|
|
20,946
|
|
26,328
|
|
(3,852
|
)
|
2013
|
|||||||||||||||||||||
|
Yukon Trails
|
Lyndon Station
|
WI
|
—
|
|
556
|
|
1,629
|
|
—
|
|
243
|
|
556
|
|
1,872
|
|
2,428
|
|
(818
|
)
|
2004
|
|||||||||||||||||||||
|
Subtotal of Properties Held for Long Term
|
(1,971,715
|
)
|
1,179,009
|
|
2,753,350
|
|
42,363
|
|
687,336
|
|
1,221,375
|
|
3,440,683
|
|
4,662,058
|
|
(1,441,277
|
)
|
||||||||||||||||||||||||
|
Realty Systems, Inc.
|
—
|
|
—
|
|
—
|
|
—
|
|
229,159
|
|
—
|
|
229,159
|
|
229,159
|
|
(55,535
|
)
|
|
|||||||||||||||||||||||
|
Management Business and other
|
—
|
|
—
|
|
436
|
|
—
|
|
24,160
|
|
—
|
|
24,596
|
|
24,596
|
|
(19,882
|
)
|
|
|||||||||||||||||||||||
|
$
|
(1,971,715
|
)
|
$
|
1,179,009
|
|
$
|
2,753,786
|
|
$
|
42,363
|
|
$
|
940,655
|
|
$
|
1,221,375
|
|
$
|
3,694,438
|
|
$
|
4,915,813
|
|
$
|
(1,516,694
|
)
|
||||||||||||||||
_________________________________
|
(1)
|
The schedule excludes Properties in which we have a non-controlling joint venture interest and account for using the equity method of accounting.
|
|
(2)
|
All Properties were acquired, except for Country Place Village, which was constructed.
|
S-13
Schedule III
Equity LifeStyle Properties, Inc.
Real Estate and Accumulated Depreciation
December 31, 2017
(amounts in thousands)
The changes in total real estate for the years ended December 31,
2017
,
2016
and
2015
were as follows:
|
2017
|
2016
|
2015
|
|||||||||
|
Balance, beginning of year
|
$
|
4,685,336
|
|
$
|
4,477,599
|
|
$
|
4,387,913
|
|
||
|
Acquisitions
|
142,484
|
|
120,448
|
|
23,900
|
|
|||||
|
Improvements
|
126,050
|
|
119,437
|
|
93,799
|
|
|||||
|
Dispositions and other
|
(38,057
|
)
|
(32,148
|
)
|
(28,013
|
)
|
|||||
|
Balance, end of year
|
$
|
4,915,813
|
|
$
|
4,685,336
|
|
$
|
4,477,599
|
|
||
The changes in accumulated depreciation for the years ended December 31,
2017
,
2016
and
2015
were as follows:
|
2017
|
2016
|
2015
|
|||||||||
|
Balance, beginning of year
|
$
|
1,399,531
|
|
$
|
1,282,423
|
|
$
|
1,169,492
|
|
||
|
Depreciation expense
(a)
|
121,455
|
|
117,400
|
|
113,609
|
|
|||||
|
Amortization of in-place leases
|
2,231
|
|
3,373
|
|
2,358
|
|
|||||
|
Dispositions and other
|
(6,523
|
)
|
(3,665
|
)
|
(3,036
|
)
|
|||||
|
Balance, end of year
|
$
|
1,516,694
|
|
$
|
1,399,531
|
|
$
|
1,282,423
|
|
||
________________________
|
(a)
|
Includes depreciation from rental operations of approximately
$10.4 million
, for the years ended December 31,
2017
and approximately
$10.7 million
for the year ended December 31, 2016 and
2015
.
|
S-14
TABLE OF CONTENTS
Part IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Mine Safety DisclosurePart IIItem 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases Of Equity SecuritiesItem 6. Selected Financial DataItem 7. Management's Discussion and Analysis Of Financial Condition and Results Of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresItem 9B. Other InformationPart IIIItem 12. Security Ownership Of Certain Beneficial Owners and Management and Related Stockholder MattersPart IVItem 15. Exhibits and Financial Statements SchedulesItem 16. Form 10-k SummaryNote 1 Our Organization and Basis Of PresentationNote 2 Summary Of Significant Accounting PoliciesNote 2 Summary Of Significant Accounting Policies (continued)Note 3 Earnings Per Common ShareNote 4 Common Stock and Other Equity Related TransactionsNote 4 Common Stock and Other Equity Related Transactions (continued)Note 5 Investment in Real EstateNote 5 Investment in Real Estate (continued)Note 6 Investment in Unconsolidated Joint VenturesNote 6 Investment in Unconsolidated Joint Ventures (continued)Note 7 Notes and Contracts ReceivableNote 8 Borrowing ArrangementsNote 8- Borrowing Arrangements (continued)Note 9 Derivative Instruments and Hedging ActivitiesNote 10 Deferred Revenue-entry Of Right-to-use Contracts and Deferred Commission ExpenseNote 11 Lease AgreementsNote 12 Operating LeasesNote 13 Transactions with Related PartiesNote 14 Equity Incentive AwardsNote 14 Equity Incentive Awards (continued)Note 15 Preferred StockNote 15 Preferred Stock (continued)Note 16 Long-term Cash Incentive PlanNote 17 Savings PlanNote 18 Commitments and ContingenciesNote 19 Reportable SegmentsNote 19 Reportable Segments (continued)Note 20 Quarterly Financial Data (unaudited)Note 21 Subsequent Events