Equity LifeStyle Properties(ELS) - 2025 Q1 - Quarterly Report

Financial Performance - For the quarter ended March 31, 2025, net income per fully diluted common share was $0.57, a decrease of 3.0$0.59 in the same quarter of 2024 [98]. - Funds from Operations (FFO) per fully diluted common share and OP unit was $0.83, down 2.7$0.86 in the prior year [98]. - Normalized FFO per fully diluted common share and OP unit increased by 6.7% to $0.83 for the quarter ended March 31, 2025, compared to$0.78 in the same quarter of 2024 [98]. - Net income available for Common Stockholders for Q1 2025 was $109,192, a decrease of 0.6$109,905 in Q1 2024 [115]. - Income from property operations for Q1 2025 was $197,585, representing a 3.1$191,732 in Q1 2024 [115]. - Total portfolio income from property operations increased by $5.9 million, or 3.1$7.1 million increase from the Core Portfolio [118]. - Property operating revenues for the total portfolio increased by $9,977, or 2.8$363,705 in Q1 2025 [118]. - Total other income and expenses, net, decreased by $4.6 million for Q1 2025 compared to Q1 2024, mainly due to lower general and administrative expenses [128]. Property Operations - Core property operating revenues increased by 2.9$9.6 million, or 5.5%, to $184,521 in Q1 2025 compared to$174,939 in Q1 2024 [118]. - Average monthly base rental income per Site rose to approximately $895 in Q1 2025 from$847 in Q1 2024, reflecting a 5.7% growth [121]. - RV and marina base rental income in the Core Portfolio increased by $0.2 million, or 0.2$116,111 in Q1 2025 [122]. - Utility and other income in the Core Portfolio for Q1 2025 increased by $1.2 million, or 3.9$0.9 million increase in utility income [123]. - Property operating expenses, excluding property management, increased by 1.5% to $141,549 in Q1 2025 [118]. - Property operating expenses in the Core Portfolio for Q1 2025 rose by$2.1 million, or 1.5%, primarily due to increases in repair and maintenance expenses of $1.4 million and insurance costs of$1.2 million [124]. Sales and Acquisitions - The company closed 117 new home sales during the quarter ended March 31, 2025, a decrease of 38.7% from 191 new home sales in the same quarter of 2024 [103]. - Gross revenues from new home sales decreased by $8.3 million, or 46.7$8.4 million, a decrease of $0.7 million, or 7.3$5.4 million to $193.4 million in Q1 2025 from$198.7 million in Q1 2024 [139]. - Total capital improvements for Q1 2025 amounted to $45.2 million, down from$54.7 million in Q1 2024, reflecting a decrease in property upgrades and development expenditures [142]. - Net cash used in investing activities decreased by $9.0 million to$42.3 million for Q1 2025, primarily due to a reduction in capital expenditures [141]. - The company had a borrowing capacity of $436.9 million under its line of credit as of March 31, 2025 [137]. Risks and Market Conditions - The company anticipates potential impacts on home sales results due to financial, credit, and capital market volatility [151]. - Local economic conditions will continue to impact results from home sales and occupancy [151]. - The company faces risks related to the ability to obtain financing or refinance existing debt on favorable terms [151]. - There are numerous risks and uncertainties that could cause actual results to differ materially from forward-looking statements [150]. - The company has disclosed a quantitative and qualitative analysis regarding market risk with no material changes since December 31, 2024 [152]. Company Structure and Policies - As of March 31, 2025, the company owned or had an ownership interest in 455 properties across the U.S. and Canada, comprising 173,340 individual developed sites [91]. - The company has ongoing contractual obligations primarily related to long-term borrowings and operating leases [144]. - There have been no significant changes to critical accounting policies and estimates during the quarter ended March 31, 2025 [146]. - The effective integration of recent acquisitions is crucial for future performance [151]. - As of March 31, 2025, the company has no off-balance sheet arrangements [145]. - Equity in income of unconsolidated joint ventures increased by$4.6 million in Q1 2025, primarily due to a distribution from a joint venture that refinanced a secured loan [130].