Equity LifeStyle Properties Inc., a Chicago-based real estate investment trust (REIT), said fourth-quarter results swung to a profit from a year-ago period that included hefty charges.
The company reported fourth-quarter funds from operations (FFO) of $18.4 million compared with a year-ago loss of $5.7 million. The company noted that the 2005 period included refinancing and hurricane-related costs.
Funds from operations, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses as well as other non-operating items back to net income.
Net income after paying preferred dividends came in at $1.8 million versus a loss of $14.6 million the previous year. Property operating revenue rose 9% to $84.8 million.
For the year, Equity Lifestyles reported that FFO rose 52% to $82.4 million as revenue climbed 10% to $346.4 million.
During the quarter, ended Dec. 31, the company had 209 new home sales, a 19% decrease year-over-year. Gross revenue from home sales slipped to $14.7 million from $22.6 million.
“Although we achieved our 2006 goal of increasing sales of smaller resort cottages, we sacrificed profitability in order to reduce inventory levels, prior to the start of our 2006-2007 season,” the company said in a statement. “As a result of this initiative, the company’s home sales operations did not meet certain internal performance expectations established earlier in the year.”
Equity LifeStyle noted that certain executive-level bonus compensation targets were not met in the fourth quarter, which lowered general and administrative expense.