Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced the closing of two transactions.
We completed the sale of ten manufactured home communities located in Michigan collectively containing approximately 4,925 sites. These assets, acquired as part of the $1.5 billion Hometown acquisition in 2011, were ultimately targeted for disposition because they did not satisfy our core business strategy. Overall occupancy has remained around 70% since acquisition with approximately 37% of the occupancy consisting of rental homes and home loans we owned. We expect to close the sale of one additional community located in Michigan containing 419 sites during the third quarter of 2013. The closing of the sale of the remaining community in Michigan is subject to customary closing conditions and no assurances can be given that the disposition will be completed in accordance with the anticipated timing or at all. The sale price for all 11 communities is approximately $165.0 million. We expect to recognize a gain on sale of these assets of approximately $41.0 million in the third quarter of 2013.
We acquired three manufactured home communities located in the Chicago metropolitan area collectively containing approximately 1,207 sites for a purchase price of $102 million. We funded the purchase price with available cash and limited partnership interests in our operating partnership.
Marguerite Nader, our Chief Executive Officer, commented, “We are pleased with the execution on these transactions. We were able to redeploy capital from our sale of assets in non-core markets into three high quality manufactured home communities in the Chicagoland area to complement our existing assets in this market.”
As a result of these transactions, we are revising our previously issued guidance range for normalized funds from operations (“Normalized FFO”) per share. We project fully diluted Normalized FFO per share of $0.61 to $0.67 for the three months ending September 30, 2013 and $2.46 to $2.56 for the year ending December 31, 2013. See table below for additional information: