EX-99.1 2 d817588dex991.htm EX-99.1

Exhibit 99.1

Exhibit 99.1

Equity LifeStyle Properties

Our Story

• |  | One of the nation’s largest real estate networks with 382 properties containing over 141,200 sites in 32 states and British Columbia

• |  | Unique business model

Own the land

Low maintenance costs/customer turnover costs

Lease developed sites

• |  | High-quality real estate locations

More than 80 properties with lake, river or ocean frontage

More than 100 properties within 10 miles of coastal United States

Property locations are strongly correlated with population migration

Property locations in retirement and vacation destinations

• |  | Stable, predictable financial performance and fundamentals

Balance sheet flexibility

• |  | In business for more than 40 years

1 |  |

Property Locations

4 |  |

3 |  |

2 |  |

WA ME

ND

MN

4 |  | MT 3

OR VT

WI NY

WY 4 MI NH

ID 4

CA SD 2 2 3 MA

NV 3

RI

7 |  | NE IA 5 PA 6 6 6 CT

IN OH 7 NJ

UT CO IL

9

16 4 DE

KS WV MD

4 |  | 7 VA

AZ MO KY

11 NM NC

TN

6 |  | 25 OK AR

6 |  | SC

MS

TX AL GA

LA

FL 8

6 |  |

17

10

37

14 3

14

8 |  |

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Steady, Predictable Revenue Streams

Property/Site composition

• |  | 201 manufactured/resort home communities

71,500 sites

• |  | 181 RV resorts sites

69,700 25,600 Annuals Seasonal 10,600 9,400 Transient sites 24,100 Membership

Property Operating

Revenue Buckets

Transient 4.7%

Seasonal 3.3%

All Annual Revenue = 92%

3 |  |

Note:

1) Property revenue buckets reflect Company’s estimated 2014 property operating revenues, derivable from our guidance furnished with the SEC as Exhibit 99.1 to the Form 8-K filed on October 21, 2014 (“ELS Reports Third Quarter Results”).

Our Lifestyle Options

• |  | Customers own the units they place on our sites

Manufactured homes

Resort cottages (park models)

Recreational vehicles

• |  | We offer a lifestyle and a variety of product options to meet our customers’ needs create relationships our customers We seek to long-term with

RV Site

Manufactured Home

RV Resort Cottage

4 |  |

Favorable Customer Demographics

• |  | The population of people age 55 and older is expected to grow 26% from 2015 to 2030

U.S. Population Over Age 55 (in millions)

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0

2015 2020 2025 2030

New Residents

MH Average RV Average age: age: 55 62 years years

Roughly 10,000 Baby

Boomers will turn 65

every day through 2030.

Note:

Sources: US Census 2012, Acxiom 2014, Pew Research Center 2010.

5 |  |

Track Record

Item IPO Year—1993 2014

Properties 41 382

Sites 12,312 141,195

States 16 32

FFO Per Share (1) $0.47 $2.68

Normalized FFO Per Share (1) $0.47 $2.74

Common Stock Price (2) $6.44 $42.36

Enterprise Value (3) $296 million $6.2 billion

Dividend Paid Cumulative (4)—$17.45

Cumulative Total Return (5)—1,659%

S&P 500 Total Return (5)—583%

Note:

1) See pages 15 and 16 for the reconciliation and definition of FFO and Normalized FFO. The 1993 amount was

determined from amounts presented in the 1996 Form 10-K. The 2014 FFO Per Share and Normalized FFO Per Share

amounts are the midpoint of the estimated 2014 FFO Per Share and Normalized FFO Per Share range disclosed in our

guidance furnished with the SEC as Exhibit 99.1 to the Form 8-K filed on October 21, 2014.

2) The 1993 stock price is adjusted for the stock split; the 2014 price is the closing price

as of September 30, 2014.

3) The 2014 enterprise value is as of September 30, 2014. See page 9.

4) Source: SNL Financial. Includes dividends paid from IPO date of February 25,1993 through

September 30, 2014 and adjusted for stock splits.

5) Source: SNL Financial from IPO through September 30, 2014

(calculation assumes common dividend reinvestment). 6

10-Year Total Return Performance

Total Return Performance Since IPO

Equity Lifestyle Properties, Inc. Total Return (%) Since IPO

2,000.00

1,800.00

1,600.00

1,400.00

1,200.00

1,000.00

800.00

600.00

400.00

200.00

0.00

-200.00

ELS (+1651.81%) SNL US REIT Equity (+807.13%) S&P 500 (+571.92%)

Notes:

Source: SNL Financial

1) Total return calculation assumes dividend reinvestment.

2) SNL US REIT Equity; Includes all publicly traded (NYSE, NYSE Amex, NASDAQ,

OTC BB, Pink Sheets) Equity REITs in SNL’s coverage universe.

3) Stock price date from IPO as of October 14, 2014.

Consistent Same Store NOI Growth and Outperformance

ELS positive has same maintained store quarters NOI growth since in all at least Q3 ’98.

Note:

1) Source for Same Store NOI data: Citi Investment Research, August 2014. Earliest quarter collected by Citi is third quarter of 1998. “REIT Industry” includes an index of REITs across a variety of asset classes, including regional malls, shopping centers, multifamily, student housing, manufactured homes, self storage, office, industrial, mixed office and specialty.

7 |  |

ELS vs. Multifamily

Same Store NOI Indexed Growth(1)

ELS rates compounded significantly outperformed Same Store NOI the REIT growth Multifamily industry since 1999

FFO Multiples ELS Multifamily (4)

1996-2001 (3) 13.2x 10.7x 2002-2012 (3) 16.8x 16.8x 2013 17.3x 17.0x

Same Store NOI Indexed Growth

170 160 150 140 130 120 110 100

1998 1999 2000 2001 2002 20032004 2005 2006 20072008200920102011 2012 2013

Multi-family Index (2) ELS Index (2)

Note:

1) Source: Citi Investment Research, March 2014. Same Store Indexed Growth assumes initial investment of $100 multiplied by the annual same store NOI growth rate.

2) Source: Citi Investment Research, March 2014. Averages equal annualized quarterly same store NOI averages collected by Citi.

3) Source: SNL Financial. Average FFO Multiple for the period calculated on trailing 12-month basis. Multiple equals stock price divided by t-12 month FFO per share.

4) The Multi-family Index FFO multiples include only US companies that report FFO.

8 |  |

Capital Structure

As of September 30, 2014 (in millions)

• |  | Total enterprise value is $6.2 billion Debt to enterprise value is 35.6% of $400 credit million available line

OPU’s $306.4, 4.9% Term Loan $200.0, 3.2% Preferred $136.1, 2.2%

Common(1) $3,554.2 Mortgage 57.4% Debt $2,005.9 32.3%

Note:

1) Stock price as of September 30, 2014. 9

2015 Guidance(1)

• |  | Normalized FFO of $268.5 million

$2.88—$2.98 per fully diluted share

7% growth

• |  | Core NOI growth of 4.3%

Core MH rent growth of 2.8%

Core RV revenue growth of 4.3%

• |  | 2015 dividend of $1.50 per share

15% increase over 2014

50% increase in last two years

Note:

(1) See pages 15 and 16 for the reconciliation and definition of FFO and Normalized FFO. The 2015 Normalized FFO and Core NOI growth are the mid-points of the respective estimated 2015 Normalized FFO and Core NOI growth disclosed in our guidance furnished with the SEC as Exhibit 99.1 to the Form 8-K filed on October 21, 2014.

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Safe Harbor Statement

Under the Private Securities Litigation Reform Act of 1995:

The under forward-looking the heading “Risk statements Factors” contained in our 2013 in Annual this presentation Report on Form are subject 10-K and to our certain Quarterly economic Reports risks on and Form uncertainties 10-Q for the described quarters ended We assume March no 31, obligation 2014 and to June update 30, or 2014. supplement See Form forward-looking 8-K filed October statements 21, 2014 that for become the full text untrue of our because forward-looking of subsequent statements. events. All projections are based on 2014 or 2015 budgets, reforecasts and pro forma expectations on recent investments.

Non-GAAP Financial Measures

Net Income to FFO and Normalized FFO Reconciliation (in millions)

Computation of funds from operations 2010 2011 2012 2013 2014 (1) 2015 (1)

Net income available for common shares $38.4 $22.8 $54.8 $106.9 $ 116.3 $ 136.6

Income allocated to common OP units 5.9 3.1 5.1 9.7 10.0 11.8

Series B Redeemable Preferred Stock Dividends—0.5 — —

Deferral of right-to-use contract revenue and commissions, net 9.4 7.1 3.5 3.3 3.3 4.2

Depreciation on real estate assets and other 69.3 81.2 100.0 102.7 100.6 101.7

Depreciation on rental homes 2.8 4.3 6.1 6.5 11.0 11.1

Depreciation on discontinued operations ——1.5 —

Amortization of in-place leases—28.5 45.1 1.9 4.4 3.1

(Gain) loss on real estate 0.2—(4.6) (41.5) (0.9) -

Funds from operations 126.0 147.4 210.0 191.0 244.7 268.5

Change in fair value of contingent consideration asset — (0.5) 1.4 (0.1) -

Transaction costs 0.4 18.5 0.2 2.0 1.2 -

Loss from early extinguishment of debt — 0.5 37.9 5.1 -

Goodwill impairment 3.6 — — -

Normalized funds from operations $130.0 $165.9 $210.2 $232.3 $ 250.9 $ 268.5

Note:

1) The 2014 and 2015 amounts are the midpoint of an estimate range. See our guidance furnished with the SEC as exhibit 99.1 to the Form 8-K filed on October 21, 2014.

Non-GAAP Financial Measures

Funds from Operations (“FFO”) is a non-GAAP financial measure. We believe FFO, as defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), is generally an appropriate measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.

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 receive up-front non-refundable payments from the entry of right-to-use contracts. In accordance with GAAP, the up-front 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.

Normalized Funds from Operations (“Normalized FFO”) is a non-GAAP measure. 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.

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 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 and the change in fair value of our contingent consideration asset 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.

Investors should review FFO and Normalized FFO along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating an equity REIT’s operating performance. We compute FFO in accordance with our interpretation of standards established by 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 than we do. 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. FFO and Normalized FFO 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.

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Equity LifeStyle Properties

Two North Riverside Plaza, Chicago, Illinois 60606 800-247-5279 | www.EquityLifeStyle.com