Equity LifeStyle Properties, Inc. (NYSE:ELS) (the “Company”) reported today its preliminary assessment of the impact of Hurricane Sandy on its properties along the Atlantic seaboard and in the northeast.
No injuries to our residents, customers or employees have been reported. The Company has a total of 56 properties (21 manufactured home communities and 35 RV resorts) that were within the storm’s trajectory. Property damage losses at those properties are preliminarily estimated to total less than $500,000. The bulk of those losses are expected to be for removal of damaged trees and debris cleanup. Three RV resorts that would otherwise have been open for customer use on weekends remain closed due to loss of electricity as a result of the storm. All of our manufactured home communities are open; one is without electricity. The Company does not yet have an estimate for business interruption losses, but they are expected to be relatively limited.
The Company believes that it has adequate insurance, including business interruption coverage. The Company does not believe that the storm will have a material impact on its financial condition or operating results.
Equity LifeStyle Properties, Inc. is a fully integrated owner and operator of lifestyle-oriented properties and as of November 1, 2012, owns or has an interest in 382 quality properties in 32 states and British Columbia consisting of 141,077 sites. The Company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago. Visit www.equitylifestyle.com for more information.This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as “anticipate,” “expect,” “believe,” “project,” “intend,” “may be” and “will be” and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include, without limitation, information regarding the Company’s expectations, goals or intentions regarding the future, and the expected effect of the recent acquisitions on the Company. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
- the Company’s ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its Properties (including those that it may acquire);
- the Company’s ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire;
- the Company’s ability to retain and attract customers renewing, upgrading and entering right-to-use contracts;
- the Company’s assumptions about rental and home sales markets;
- the Company’s ability to manage counterparty risk;
- the Company’s assumptions and guidance concerning 2012 and 2013 estimated net income and funds from operations;
- in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers to sell their existing residences as well as by financial, credit and capital markets volatility;
- results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing;
- impact of government intervention to stabilize site-built single family housing and not manufactured housing;
- effective integration of the recent acquisitions and the Company’s estimates regarding the future performance of the recent acquisitions;
- unanticipated costs or unforeseen liabilities associated with the Acquisition;
- ability to obtain financing or refinance existing debt on favorable terms or at all;
- the effect of interest rates;
- the dilutive effects of issuing additional securities;
- the effect of accounting for the entry of contracts with customers representing a right-to-use the Properties under the Codification Topic “ Revenue Recognition;” and
- other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission.