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ELS Reports First Quarter Results
($ in millions, except per share data)
FINANCIAL RESULTS Q1 2024 Q1 2023 $ Change
----------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------
Total Revenues $ 386.6 $ 370.0 $ 16.6
Net Income available for Common Stockholders $ 109.9 $ 82.4 $ 27.5
Net Income per Common Share $ 0.59 $ 0.44 $ 0.15
NON-GAAP FINANCIAL MEASURES Q1 2024 Q1 2023 $ Change
----------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------
Funds from Operations ("FFO") per Common Share and OP Unit $ 0.86 $ 0.72 $ 0.14
Normalized Funds from Operations ("Normalized FFO") per Common Share and $ 0.78 $ 0.72 $ 0.06
OP Unit
Property operating revenues $ 353.7 $ 334.8 $ 18.9
Income from property operations, excluding property management $ 211.4 $ 198.0 $ 13.4
CORE PORTFOLIO PERFORMANCE Q1 2024 Q1 2023 % Change
----------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------
Core property operating revenues $ 345.4 $ 326.4 5.8 %
Operations Update
Normalized FFO for the quarter ended March 31, 2024 was $0.78 per share, representing an 8.6% increase compared to the same period in 2023, and is in line with the midpoint of our guidance expectation.
MH
Core MH base rental income for the quarter ended March 31, 2024 increased 6.4% compared to the same period in 2023, which reflects 6.3% growth from rate increases and 0.1% from occupancy gains. Core MH homeowners increased by 123 since December 31, 2023. We sold 191 new homes during the quarter ended March 31, 2024, with an average sales price of approximately $93,000.
RV and Marina
Core RV and marina base rental income for the quarter ended March 31, 2024 increased 5.8% compared to the same period in 2023. Core RV and marina annual base rental income increased 8.0% for the quarter ended March 31, 2024, which included allocation of an additional day's revenue resulting from the leap year, compared to the same period in 2023. Total nights camped during the quarter ended March 31, 2024 is in line compared to the same period in 2023.
Property Operating Expenses
Core property operating expenses, excluding property management for the quarter ended March 31, 2024 increased 3.9% compared to the same period in 2023. See page 8 for details of the Core property operating expenses, excluding property management.
We completed our property and casualty insurance renewal as of April 1, 2024 with no change to program deductibles, an increase to certain coverage limits, and a premium increase of approximately 9%.
Balance Sheet Activity
In April 2024, the Company entered into three interest rate swap agreements ("Swaps") with an aggregate notional value of $300.0 million allowing us to trade the variable interest rate associated with our $300.0 million unsecured term loan for a fixed interest rate. The Swaps have a weighted average all-in fixed interest rate of 6.05% per annum and mature on April 17, 2026. As a result, borrowings on our unsecured line of credit represent our only exposure to floating rate debt.
Guidance Update (1)(2)
($ in millions, except per share data) 2024
------------------------------------------------------------
Second Quarter Full Year
-------------------- --------------------
Net Income per Common Share $0.34 to $0.40 $1.83 to $1.93
FFO per Common Share and OP Unit $0.61 to $0.67 $2.91 to $3.01
Normalized FFO per Common Share and OP Unit $0.61 to $0.67 $2.84 to $2.94
2023 Actual 2024 Growth Rates
------------------------------------------------------------ ------------------------------------------------------------
Core Portfolio: Second Quarter Full Year Second Quarter Full Year
-------------------- -------------------- -------------------- --------------------
MH base rental income $ 166.3 $ 668.5 5.9% to 6.5% 5.6% to 6.6%
RV and marina base rental income (3) $ 98.6 $ 413.5 2.8% to 3.4% 4.5% to 5.5%
Property operating revenues $ 317.7 $ 1,297.7 4.8% to 5.4% 4.8% to 5.8%
Property operating expenses, excluding property management $ 145.4 $ 562.3 5.3% to 5.9% 4.2% to 5.2%
Income from property operations, excluding property management $ 172.3 $ 735.4 4.3% to 4.9% 5.3% to 6.3%
Non-Core Portfolio: 2024 Full Year
------------------------------------------------------------
Income from property operations, excluding property management $15.2 to $19.2
Other Guidance Assumptions: 2024 Full Year
------------------------------------------------------------
Property management and general administrative $114.7 to $120.7
Debt assumptions:
$3,400 to $3,600
Weighted average debt outstanding
______________________
Second quarter and full year 2024 guidance represent management's estimate of a range of possible outcomes. The midpoint of the ranges reflect management's estimate of the most likely outcome based on our current view of existing market conditions and assumptions. Actual results could vary materially from management's estimates presented above if any of our assumptions, including occupancy and rate changes, our ability to manage expenses in an inflationary environment, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, are incorrect. See Forward-Looking Statements in this press release for additional factors impacting our 2024 guidance assumptions. See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of FFO and Normalized FFO and a reconciliation of Net income per Common Share - Fully Diluted to FFO per Common Share and OP Unit - Fully Diluted and Normalized FFO per Common Share and OP Unit - Fully Diluted. Guidance assumptions do not include future capital events (financing transactions, acquisitions or dispositions). Core RV and marina annual revenue represents approximately 73.2% and 69.3% of second quarter 2024 and full year 2024 RV and marina base rental income, respectively. Core RV and marina annual revenue second quarter 2024 growth rate range is 6.5% to 7.1% and the full year 2024 growth rate range is 6.6% to 7.6%.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago. As of April 22, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,464 sites.
For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.
Conference Call
A live audio webcast of our conference call discussing these results will take place tomorrow, Tuesday, April 23, 2024, at 10:00 a.m. Central Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.
Forward-Looking Statements
In addition to historical information, this press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as "anticipate," "expect," "believe," "project," "estimate," "guidance," "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. Forward-looking statements, including our guidance concerning Net Income, FFO and Normalized FFO per share data, and certain growth rates, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement due to a number of factors, which include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment; (ix) our ability to integrate and operate recent acquisitions in accordance with our estimates; (x) our ability to execute expansion/development opportunities in the face of supply chain delays/shortages; (xi) completion of pending transactions in their entirety and on assumed schedule; (xii) our ability to attract and retain property employees, particularly seasonal employees; (xiii) ongoing legal matters and related fees; (xiv) costs to restore property operations and potential revenue losses following storms or other unplanned events; and (xv) the potential impact of, and our ability to remediate, material weaknesses in our internal control over financial reporting. For further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the Securities and Exchange Commission, including the "Risk Factors" and "Forward-Looking Statements" sections in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. 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.
Supplemental Financial Information
Financial Highlights --------------------
(In millions, except Common Shares and OP Units outstanding and per share data, unaudited)
As of and for the Quarters Ended
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023
----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- -----------------------------------------------
Operating Information
------------------------------------------------------------------------------------
Total revenues $ 386.6 $ 360.6 $ 388.8 $ 370.0 $ 370.0
Consolidated net income $ 115.3 $ 96.4 $ 80.7 $ 66.0 $ 86.5
Net income available for Common Stockholders $ 109.9 $ 91.9 $ 77.0 $ 62.9 $ 82.4
Adjusted EBITDAre (1) $ 186.3 $ 171.1 $ 167.0 $ 157.7 $ 173.0
FFO available for Common Stock and OP Unit holders (1)(2) $ 167.4 $ 148.5 $ 133.8 $ 118.6 $ 140.3
Normalized FFO available for Common Stock and OP Unit holders (1)(2) $ 152.7 $ 138.2 $ 133.9 $ 124.9 $ 140.5
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2) $ 136.9 $ 109.2 $ 107.8 $ 98.3 $ 122.4
Common Shares and OP Units Outstanding (In thousands) and Per Share Data
------------------------------------------------------------------------------------
Common Shares and OP Units, end of the period 195,598 195,531 195,525 195,514 195,446
Weighted average Common Shares and OP Units outstanding - Fully Diluted 195,545 195,475 195,440 195,430 195,369
Net income per Common Share - Fully Diluted (3) $ 0.59 $ 0.49 $ 0.41 $ 0.34 $ 0.44
FFO per Common Share and OP Unit - Fully Diluted $ 0.86 $ 0.76 $ 0.68 $ 0.61 $ 0.72
Normalized FFO per Common Share and OP Unit - Fully Diluted $ 0.78 $ 0.71 $ 0.68 $ 0.64 $ 0.72
Dividends per Common Share $ 0.4775 $ 0.4475 $ 0.4475 $ 0.4475 $ 0.4475
Balance Sheet
------------------------------------------------------------------------------------
Total assets $ 5,630 $ 5,614 $ 5,626 $ 5,586 $ 5,519
Total liabilities $ 4,110 $ 4,115 $ 4,129 $ 4,083 $ 4,006
Market Capitalization
------------------------------------------------------------------------------------
Total debt (4) $ 3,507 $ 3,548 $ 3,533 $ 3,479 $ 3,414
Total market capitalization (5) $ 16,104 $ 17,341 $ 15,990 $ 16,557 $ 16,534
Ratios
------------------------------------------------------------------------------------
Total debt / total market capitalization 21.8 % 20.5 % 22.1 % 21.0 % 20.6 %
Total debt / Adjusted EBITDAre (6) 5.1 5.3 5.4 5.4 5.4
Interest coverage (7) 5.2 5.2 5.3 5.4 5.5
______________________
See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre. See page 6 for a reconciliation of Net income available for Common Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. Net income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units. Excludes deferred financing costs of approximately $28.6 million as of March 31, 2024. See page 14 for the calculation of market capitalization as of March 31, 2024. Calculated using trailing twelve months Adjusted EBITDAre. Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period. See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for a definition of fixed charges. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.
Consolidated Balance Sheets ---------------------------
(In thousands, except share and per share data)
March 31, 2024 December 31, 2023
------------------------------------------------------ ------------------------------------------------------
(unaudited)
Assets
Investment in real estate:
$ 2,088,657 $ 2,088,657
Land
4,435,288 4,380,649
Land improvements
1,229,374 1,236,985
Buildings and other depreciable property
-------------------- -------------- -------------------- -------------------- -------------- --------------------
7,753,319 7,706,291
(2,497,039 ) (2,448,876 )
Accumulated depreciation
-------------------- -------------- -------------------- -------------------- -------------- --------------------
5,256,280 5,257,415
Net investment in real estate
Cash and restricted cash 47,281 29,937
Notes receivable, net 49,346 49,937
Investment in unconsolidated joint ventures 84,989 85,304
Deferred commission expense 54,024 53,641
Other assets, net 138,314 137,499
-------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 5,630,234 $ 5,613,733
Total Assets
==================== ============== ==================== ==================== ============== ====================
Liabilities and Equity
Liabilities:
$ 2,974,728 $ 2,989,959
Mortgage notes payable, net
497,875 497,648
Term loans, net
6,000 31,000
Unsecured line of credit
171,061 151,567
Accounts payable and other liabilities
223,470 218,337
Deferred membership revenue
12,543 12,657
Accrued interest payable
131,547 126,451
Rents and other customer payments received in advance and security deposits
93,264 87,493
Distributions payable
-------------------- -------------- -------------------- -------------------- -------------- --------------------
4,110,488 4,115,112
Total Liabilities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2024 and December 31, 2023; none issued and outstanding. -- --
Common stock, $0.01 par value, 600,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 186,493,598 and 186,426,281 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively. 1,917 1,917
1,644,410 1,644,319
Paid-in capital
(202,721 ) (223,576 )
Distributions in excess of accumulated earnings
5,280 6,061
Accumulated other comprehensive income
-------------------- -------------- -------------------- -------------------- -------------- --------------------
1,448,886 1,428,721
Total Stockholders' Equity
70,860 69,900
Non-controlling interests - Common OP Units
-------------------- -------------- -------------------- -------------------- -------------- --------------------
1,519,746 1,498,621
Total Equity
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Consolidated Statements of Income ---------------------------------
(In thousands, unaudited)
Quarters Ended March 31, Quarters Ended March 31,
---------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2024 2023
------------------------------------------------------ ------------------------------------------------------
Revenues:
Rental income $ 316,599 $ 296,451
Annual membership subscriptions 16,215 15,970
Membership upgrade sales (1) 3,947 3,505
Other income 15,548 17,714
Gross revenues from home sales, brokered resales and ancillary services 30,053 32,133
Interest income 2,168 2,088
Income from other investments, net 2,038 2,091
-------------------- -------------- -------------------- -------------------- -------------- --------------------
386,568 369,952
Total revenues
Expenses:
Property operating and maintenance 114,783 112,483
Real estate taxes 20,787 18,316
Membership sales and marketing (2) 5,297 4,838
Property management 19,710 19,464
Depreciation and amortization 51,108 50,502
Cost of home sales, brokered resales and ancillary services 21,967 23,141
Home selling expenses and ancillary operating expenses 6,147 6,924
General and administrative 11,989 11,661
Casualty-related charges/(recoveries), net (3) (14,843 ) --
Other expenses 1,331 1,468
Interest and related amortization 33,543 32,588
-------------------- -------------- -------------------- -------------------- -------------- --------------------
271,819 281,385
Total expenses
Income before income taxes and other items 114,749 88,567
-- (2,632 )
Gain/(Loss) on sale of real estate and impairment, net
239 --
Income tax benefit
283 524
Equity in income of unconsolidated joint ventures
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Consolidated net income 115,271 86,459
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Income allocated to non-controlling interests - Common OP Units (5,366 ) (4,088 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
______________________
Membership upgrade sales revenue is net of deferrals of $3.6 million and $4.5 million for the quarters ended March 31, 2024 and March 31, 2023, respectively. See page 13 for details of membership sales activity. Membership sales and marketing expense is net of sales commission deferrals of $0.4 million and $0.7 million for the quarters ended March 31, 2024 and March 31, 2023, respectively. See page 13 for details of membership sales activity. Casualty-related charges/(recoveries), net for the quarter ended March 31, 2024 includes debris removal and cleanup costs related to Hurricane Ian of $0.5 million and insurance recovery revenue of $15.4 million including excess revenue of $14.8 million for reimbursement of capital expenditures related to Hurricane Ian.
Non-GAAP Financial Measures
This document contains certain Non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these Non-GAAP measures along with GAAP net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. 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 flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of Non-GAAP measures to our financial statements as prepared under GAAP, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 6 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 16-19.
Selected Non-GAAP Financial Measures ------------------------------------
(In millions, except per share data, unaudited)
Quarter Ended Quarter Ended
March 31, 2024
----------------------------------------------
Income from property operations, excluding property management - 2024 Core (1) $ 206.1
Income from property operations, excluding property management - Non-Core (1) 5.3
Property management and general and administrative (31.3 )
Other income and expenses 6.1
Interest and related amortization (33.5 )
-------------------- ------ --------------------
$ 152.7
Normalized FFO available for Common Stock and OP Unit holders (2)
Deferred income tax benefit 0.2
Transaction/pursuit costs and other (0.4 )
Insurance proceeds due to catastrophic weather event (3) 14.8
-------------------- ------ --------------------
$ 167.4
FFO available for Common Stock and OP Unit holders (2)(4)
==================== ====== ====================
FFO per Common Share and OP Unit $ 0.86
Normalized FFO per Common Share and OP Unit $ 0.78
$ 152.7
Normalized FFO available for Common Stock and OP Unit holders (2)
Non-revenue producing improvements to real estate (15.8 )
-------------------- ------ --------------------
$ 136.9
FAD for Common Stock and OP Unit holders (2)
==================== ====== ====================
______________________
See pages 8-9 for details of the Core Income from Property Operations, excluding property management. See page 10 for details of the Non-Core Income from Property Operations, excluding property management. See page 6 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. Represents insurance recovery revenue for reimbursement of capital expenditures related to Hurricane Ian. Amounts may not foot due to rounding.
Reconciliation of Net Income to Non-GAAP Financial Measures -----------------------------------------------------------
(In thousands, except per share data, unaudited)
Quarters Ended March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
------------------------------------------------------ ------------------------------------------------------
Net income available for Common Stockholders $ 109,905 $ 82,371
Income allocated to non-controlling interests - Common OP Units 5,366 4,088
Depreciation and amortization 51,108 50,502
Depreciation on unconsolidated joint ventures 1,051 1,135
Gain on unconsolidated joint ventures -- (416 )
(Gain)/Loss on sale of real estate and impairment, net -- 2,632
-------------------- -------------- -------------------- -------------------- -------------- --------------------
FFO available for Common Stock and OP Unit holders 167,430 140,312
Deferred income tax benefit (239 ) --
Transaction/pursuit costs and other (1) 383 206
Insurance proceeds due to catastrophic weather event (2) (14,843 ) --
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Normalized FFO available for Common Stock and OP Unit holders 152,731 140,518
Non-revenue producing improvements to real estate (15,812 ) (18,112 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
FAD for Common Stock and OP Unit holders $ 136,919 $ 122,406
==================== ============== ==================== ==================== ============== ====================
Net income per Common Share - Basic $ 0.59 $ 0.44
Net income per Common Share - Fully Diluted (3) $ 0.59 $ 0.44
FFO per Common Share and OP Unit - Basic $ 0.86 $ 0.72
FFO per Common Share and OP Unit - Fully Diluted $ 0.86 $ 0.72
Normalized FFO per Common Share and OP Unit - Basic $ 0.78 $ 0.72
Normalized FFO per Common Share and OP Unit - Fully Diluted $ 0.78 $ 0.72
Weighted average Common Shares outstanding - Basic 186,287 185,900
Weighted average Common Shares and OP Units outstanding - Basic 195,392 195,162
____________________
Prior period amounts have been reclassified to conform to the current period presentation. Represents insurance recovery revenue for reimbursement of capital expenditures related to Hurricane Ian. Net income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units.
Consolidated Income from Property Operations (1) ------------------------------------------------
(In millions, except home site and occupancy figures, unaudited)
Quarters Ended March 31,
----------------------------------------------------------------------------------------------------------------
2024 2023
---------------------------------------------- ----------------------------------------------
MH base rental income (2) $ 175.1 $ 164.6
Rental home income (2) 3.5 3.9
RV and marina base rental income (2) 120.2 111.6
Annual membership subscriptions 16.2 16.0
Membership upgrade sales (3) 3.9 3.5
Utility and other income (2)(4) 34.8 35.2
-------------------- ------ -------------------- -------------------- ------ --------------------
353.7 334.8
Property operating revenues
Property operating, maintenance and real estate taxes (2) 137.0 132.0
Membership sales and marketing (3) 5.3 4.8
-------------------- ------ -------------------- -------------------- ------ --------------------
142.3 136.8
Property operating expenses, excluding property management (1)
-------------------- ------ -------------------- -------------------- ------ --------------------
Income from property operations, excluding property management (1) $ 211.4 $ 198.0
==================== ====== ==================== ==================== ====== ====================
Manufactured home site figures and occupancy averages:
Total sites 73,008 72,717
Occupied sites 68,916 68,847
Occupancy % 94.4 % 94.7 %
Monthly base rent per site $ 847 $ 797
RV and marina base rental income:
Annual $ 75.6 $ 69.4
Seasonal 29.5 28.0
Transient 15.1 14.2
-------------------- ------ -------------------- -------------------- ------ --------------------
______________________
Excludes property management expenses. MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Statements of Income on page 3. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table. See page 13 for details of membership sales activity. Includes approximately $1.9 million and $4.0 million of business interruption income from Hurricane Ian during the quarters ended March 31, 2024 and March 31, 2023, respectively.
Core Income from Property Operations (1) ----------------------------------------
(In millions, except occupancy figures, unaudited)
Quarters Ended March 31,
-----------------------------------------------------------------------------------------------------------------------
2024 2023 Change (2)
-------------------- ---------- -------------------- ---------- -------------------
MH base rental income $ 174.9 $ 164.4 6.4 %
Rental home income 3.5 3.9 (9.2 )%
RV and marina base rental income 115.6 109.3 5.8 %
Annual membership subscriptions 16.2 15.8 2.7 %
Membership upgrade sales 3.9 3.5 13.9 %
Utility and other income 31.3 29.5 5.6 %
-------------------- ---------- -------------------- ---------- ---------- ---------
345.4 326.4 5.8 %
Property operating revenues
Utility expense 38.7 38.4 0.7 %
Payroll 27.7 28.1 (1.4 )%
Repair & maintenance 20.8 21.8 (4.6 )%
Insurance and other (3) 26.4 23.0 14.6 %
Real estate taxes 20.4 17.9 14.3 %
Membership sales and marketing 5.3 4.8 9.9 %
-------------------- ---------- -------------------- ---------- ---------- ---------
139.3 134.0 3.9 %
Property operating expenses, excluding property management (1)
-------------------- ---------- -------------------- ---------- ---------- ---------
Income from property operations, excluding property management (1) $ 206.1 $ 192.4 7.1 %
==================== ========== ==================== ========== ========== =========
_____________________
Excludes property management expenses. Calculations prepared using actual results without rounding. Includes bad debt expense for the periods presented. Occupied sites are presented as of the end of the period.
Core Income from Property Operations (continued) ------------------------------------------------
(In millions, except home site and occupancy figures, unaudited)
Quarters Ended March 31,
---------------------------------------------------------------------------------------------------------------- --------------------
2024 2023
---------------------------------------------- ----------------------------------------------
Core manufactured home site figures and occupancy averages:
Total sites 72,