ELS Announces Closings on Seven Properties
CHICAGO--(BUSINESS WIRE)-- On May 31, 2011, Equity LifeStyle Properties, Inc. (ELS), through its operating partnership (collectively, the Company), entered into purchase and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort (the Acquisition Properties) containing 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the Acquisition Properties for a stated purchase price of $1.43 billion (the Acquisition).
The Company closed on seven of the Acquisition Properties today along with certain manufactured homes and loans secured by manufactured homes located at such Acquisition Properties for a stated purchase price of approximately $99 million. The purchase price in connection with this closing was funded with: (i) the assumption of approximately $55 million of mortgage debt secured by the Acquisition Properties acquired today and (ii) approximately $44 million of cash. The cash was obtained from the proceeds of the previously announced $200 million of financings originated during the quarter ended September 30, 2011.
As of today, the Company has closed on 75 Acquisition Properties since July 1, 2011. As previously disclosed, the Company is continuing to perform due diligence on the Clinton property; the one remaining Acquisition Property; and therefore, the Company is unable to provide a current estimate of a closing date and no assurances can be given that the Company will close on that Acquisition Property. As a result, the Company no longer expects to incur $2 million of transaction costs in 2011 related to the Clinton closing.
Equity LifeStyle Properties, Inc. is a fully integrated owner and operator of lifestyle-oriented properties and as of December 8, 2011, owns or has an interest in 382 quality properties in 32 states and British Columbia consisting of 141,175 sites. The Company leases individual developed areas, or sites, with access to utilities for placement of factory-built homes, cottages, cabins or recreational vehicles. Customers may lease individual sites or enter right-to-use contracts providing the customer access to specific properties for limited stays. 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 Companys expectations, goals or intentions regarding the future, statements regarding the anticipated closing of the remainder of the pending Acquisition and the expected effect of the Acquisition on the Company. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
- the Companys 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 Companys ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire;
- the Companys assumptions about rental and home sales markets;
- the Companys assumptions and guidance concerning 2011 and 2012 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;
- the completion of the remainder of the Acquisition and future acquisitions, if any, timing and effective integration with respect thereto and the Companys estimates regarding the future performance of the Acquisition Properties;
- 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 Companys filings with the Securities and Exchange Commission.
These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
Equity LifeStyle Properties, Inc.
Marguerite Nader, (312) 279-1486
Source: Equity LifeStyle Properties, Inc.Copyright Business Wire 2011