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8/8/2019 ELS Equity LifeStyle Properties Sept 2010 Presentation Slides Deck
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Investor PresentationSeptember 28, 2010
ELSELS
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ELS Overview
One of the nations largest real estate networks with approximately 300 propertiescontainin almost 111,000 sites in 27 states and British Columbia
ELS has a unique business model:
ELS owns the land
Customers own the units they place on the sites
ELS site composition
46,000 manufactured or resort home sites
41,000 public RV sites for resort cottages (park models) and recreational vehicles
24,000 right to use sites
ELSs rent position is prime
Over 1,000,000 customer contacts
3
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ELS Business Expansion (2003 Current)
Number of SitesNumber of Properties
160
90.1%
56.0%
44.0%60,000
80,000
58.8%
128
135
172
80
44,
900
45,
700
65,
300
20,000
40,000
83.7%
16.3%
41.2%
14
0
2003 Current
9.9%
8,
800
-
2003 Current
= MH = RV (LifeStyle)
4
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ELS Key Value Drivers
Well Located Real Estate >75 properties with lake, river and ocean frontage
>80 properties within 10 miles of coastal United States
Favorable Customer Demographics
Active adults and RV owners / Outdoor enthusiasts
Product Flexibility
Own, rent, flexible use or right to use
5
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ELS Current Property Locations
6
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Real Estate
Primary investment is land/appreciating component of real estate Lower maintenance costs/customer turnover costs
High quality real estate
a or me ros g grow areas
High barriers to entry
Retirement and vacation destinations
7
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RV Owners and Outdoor Enthusiasts
8M-9M RV owners in the United States
(1)(2)
Average of approximately 42,000 RV owners located within 100 miles ofeach ELS resort (2)
The t ical RV owner is a e 49 married owns a home and has an annual
household income of $68,000 (1)
44M Camping Participants in 2009 (3)
63% of camping participants have household incomes above 49,999
Notes:
1) Sources: University of Michigans Survey Research Center, 2005.
8
2) Sources: Acxiom 2009.3) Sources: A Special Report on Camping (a partnership project of: Coleman and Outdoor Foundation), 2010.
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Customer Discovery (1)
Transient RV Customer
36-55, married, kids, home owner
Right to Use RV and Seasonal RV Customer
- , , ,
Annual RV and MH Customer
66-75 married em t nester home owner
As our customers enter later life stages they tendto fall into our more stable customer buckets
9
Note:1) Source: Acxiom 2008.
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Resort Home Customer
Primarily active adults
Average U.S. household income is $68,400 (1)
Average U.S. household income of people 55 to 64 is $77,500 (1)
Baby Boomers Own 57% of all vacation and seasonal homes (2)
retirement (2)
86% would like to retire in the Northeast, South, or West (2)
Notes:
1) Sources: U.S. Census Bureau, 2008.
10
2) Sources: Harris Interactive for the National Association of Realtors, 2006.3) Baby boomers are a U.S. generation born between 1946 and 1964.
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Customer Demographics
80
U.S. Population Over Age of 55 (1)
(in millions)
Customer Retention Strategy
Lifestyle focus
60
70
AGE
Amenities / social activities
Communities
Attractive housing
40
50 70 to 74
65 to 69
60 to 64
55 to 59
High quality
Low capital commitment
Easy maintenance
10
20
ong erm u - ase e a ons p
Camping RV Cottage Resort Home
Flexible use to multi-use / locations
2010 2015 2020
Notes:
Long term relationship creates stable and predictable cashflows
111) Sources: U.S. Census Bureau, 2008.
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ELS LifeStyle and Activities
Recreation
Golf, softball, fishing, tennis,swimming, shuffleboard
Arts
Concerts, shows, art fairs, crafts
Education
Seminars, One Day University
Volunteerism Consider Others, fund raising
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, , ,
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Resort Homes
46,000 sites (approx. 4,000 vacant)
Marketing Initiatives
Customer referral program
Rental program
Third party relationships
Relationships with Manufacturers
Obtain value priced product that isaes e ca y p eas ng
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RV Resorts (1)
Annual/Seasonal Sites = 30,000
Transient Sites = 10,000
ousan ra s es = ,
24,000 sites; 108,000 members
Roughly 13,000 implied excesssites (less than 5 to 1 ratio)
Industry standard ratio = 10 to 1
15
Note:1) Excludes joint venture sites.
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Steady, Predictable Revenue Streams
Seasonal
Transient
Property Revenue Buckets (1) Extensive Customer Pool (2)
Utility & Other
Annual MHAnnual Right to Use 51.2%14.6%
9.6%
Annual RV
15.0%
All Annual Revenue = 90.4%$495M Property Operating Revenues
Notes:
ELS only needs a small percentage of thiscustomer pool to feed its revenue streams
16
1) Property revenue buckets reflect the 2009 property operating revenues from the 2010 core properties. See page 21 for the 2009 amounts and the definition of 2010 core properties.2) Sources: University of Michigans Survey Research Center 2005, Acxiom 2009, Statistical Surveys, US Census 2006.
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Financials
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Total Market Capitalization
IPO March 1993 June 30, 2010
Market Capitalization $193 million $ 1.7 billion (1)
Preferred Units - $200 million
.
Unsecured Notes - -
Total Market Capitalization $296 million $3.4 billion
18
Note:1) Utilizes $48.23 closing stock price at June 30, 2010, fully diluted.
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REIT Industry Same Store NOI Growth
8.0%8.5%
9.0%9.5%
10.0%
4.5%5.0%5.5%6.0%6.5%7.0%7.5%
1.0%1.5%2.0%2.5%3.0%3.5%
.
-3.0%-2.5%-2.0%
-1.5%-1.0%-0.5%0.0%
.
3Q98
4Q98
1Q99
2Q99
3Q99
4Q99
1Q00
2Q00
3Q00
4Q00
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
-3.5%REIT Industry ELS Industry Average - 2.3% ELS Average - 3.9%
19Note:Source: Citi Investment Research, September 2010.
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Track Record
1993 2010
FFO Per Share (1) $1.11 $3.55
(2)
Dividend Paid Cumulative (3) $27.09
Total Return (4) 861%
Notes:
1) See page 24 for definition of FFO. 2010 amount is the mid-point of the estimated 2010 FFO per share disclosed in the July 19, 2010 press release.2) The 1993 stock price is split-adjusted; the 2010 price is the closing price as of August 31, 2010.
20
3) Source: SNL Financial. Includes dividends paid from IPO through August 31, 2010.4) Source: SNL Financial from IPO through August 31, 2010 (calculation assumes dividend reinvestment).
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2010 Budget AssumptionsIncome From Property Operations (In Millions)
Property Operations (excluding
2009 (1) 2010 Growth Factor (2)
Community Base Rental Income $253.3
Resort Base Rental Income 122.0
Right to Use Annual PaymentsRight to Use Contracts (3)
50.821.5
Utilit and Other Income 47.4__________
Property Operating Revenues (3) $495.0
Property Operating Expenses (4) (224.0)___________
Income from Property Operations $271.0 1.5 2.0%==========
Notes:
1) Companys 2009 income from property operations for the 2010 core properties. 2010 Core properties include properties we expect to own and operate during all of 2009 and 2010.2 Com an s estimate of the rowth of the 2010 Core in 2010 com ared to 2009 erformance.
213) Excludes the GAAP deferral of the 2009 right to use contract sales and the amortization of prior period sales.4) Excludes the GAAP deferral of the 2009 commissions on right to use contract sales and the amortization of prior period commissions.
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2010 BudgetSelected Financial Data (In Millions; except per share data)
2010 Budget (1)
$276Income from Property Operations 2010 Core(2)
1
(56)
12
(107)
Income from Property Operations Non-Core (2)
Property Management and corporate general and administrative expenses
Other Income and Expenses
Financing Costs and Other
126
(69)
(11)
(6)
Funds from Operations (FFO) (3)
Depreciation on Real Estate and Other
Deferral of right-to-use contract sales revenue and commission, net (4)
Income Allocated to Common OP Units
$40
$1.23 - $1.33
3.50 - 3.60
Net Income Available to Common Shares (4)
Net Income Per Common Share Fully Diluted
FFO Per Share Fully Diluted
Notes:
1) Based on Companys estimate.2 Excludes ro ert mana ement ex enses and excludes the GAAPdeferralsof ri ht to use contract sales and related commissions
35.5Weighted Average Fully Diluted Shares Outstanding
22
.
3) See page 24 for definition of FFO.4) Due to the uncertain timing and extent of right to use sales and the resulting deferrals, actual income could differ materially from expected net income.
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Core Occupancy & Growth Rates
MH occupancy as of August 2010 YTD
Up 56 sites compared to December 31, 2009
ugus as compare o ugus :
MH base revenue growth is up 2.2%
Resort base revenue rowth is u 3.0%
Right-to-use annual payments
2010 budget is 93% earned or prepaid as of August 2010 YTD (comparable toAugust 2009 YTD)
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