Equity LifeStyle Properties Inc. (ELS) announced Monday (July 18) an increase in net income for the company’s second quarter, ended June 30, and an over 50% increase in new home sales.
Chicago-based ELS, a self-administered, self-managed, real estate investment trust (REIT) which owns or has an interest in 279 properties and 101,960 sites in 26 states and British Columbia, reported net income available to common stockholders in the quarter totaled $2.5 million compared to $0.5 million the previous year. For the six months, net income increased to $11.2 million from $5 million in 2004.
“We are very pleased with our results for the second quarter of 2005, especially with the progress made on the 2005 goals we identified during our year-end 2004 conference call, including sales, site utilization, development and capital redeployment,” said Thomas Heneghan, ELS president and CEO. “We continue to improve both the volume and profitability of our new home sales.”
ELS reported 186 new home sales during the three-month period, a 56% increase over last year, while gross revenues from home sales increased to $17.5 million from approximately $10.7 million.
During the first six months, the company had 313 new home sales, a 48% increase over 2004, generating gross revenues of $27.7 million compared to approximately $18.1 million.
Looking toward 2006, Heneghan stated: “Although we still have much to do in 2005, we are also preparing for 2006. We continue to make progress on our ability to use our breadth of locations, price points and multiple use options to meet the lifestyle demands of both active RVers and those seeking second home, seasonal home or active retirement housing opportunities. These efforts include an emphasis on print and Internet marketing and customer loyalty programs.
“…With respect to other goals, we expect to expand properties in Arizona, Florida, North Carolina and Illinois by approximately 500 sites in 2006 and we continue to evaluate additional development and redevelopment opportunities in Florida, Arizona, Maine, Texas, California, Washington and Oregon.”
The company also said it is closely monitoring and actively involved in legislative action concerning property rights.
“In certain locations where demand has resulted in generally higher housing costs, there is sometimes a tension between the rights of our shareholders to benefit from the appreciation of their real estate and the desire of some customers to control their housing costs,” Heneghan said. “It is this tension that underpins our property rights related initiatives regarding rent control and other regulations impacting our properties.”