EQUITY LIFESTYLE PROPERTIES INC

Previous wording

We generate the majority of our revenues from customers renting our Sites or entering into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina Sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina Sites are leased to customers generally for one to six months. Transient RV and marina Sites are leased to customers on a short-term basis. The revenue from seasonal and transient Sites is generally higher during the first and third quarters. We consider the transient revenue stream to be our most volatile as it is subject to weather conditions and other factors affecting the marginal RV customer’s vacation and travel preferences. We also generate revenue from customers renting our marina dry storage. Additionally, we have interests in joint venture Properties for which revenue is classified as Equity in income from unconsolidated joint ventures on the Consolidated Statements of Income and Comprehensive Income.

Current wording

We generate the majority of our revenues from customers renting our Sites or entering into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina Sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina Sites are leased to customers generally for one to six months. Transient RV and marina Sites are leased to customers on a short-term basis. The revenue from seasonal and transient Sites is generally higher during the first and third quarters. We consider the transient revenue stream to be our most volatile as it is subject to weather conditions and other factors affecting the marginal RV customer’s vacation and travel preferences. We also generate revenue from customers renting our marina dry storage. Additionally, we have interests in joint venture Properties for which revenue is classified as Equity in income of unconsolidated joint ventures on the Consolidated Statements of Income and Comprehensive Income.

Previous wording

(1)Primarily utilized to service approximately 112,400 members. Includes approximately 5,800 Sites rented on an annual basis.

Current wording

(1)Primarily utilized to service approximately 112,500 members. Includes approximately 5,800 Sites rented on an annual basis.

Previous wording

Core property operating revenues increased 2.9% and Core income from property operations, excluding property management increased 3.8% for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024.

Current wording

Core property operating revenues increased 3.5% and Core income from property operations, excluding property management increased 6.4% for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024.

Previous wording

We continue to focus on the quality of occupancy growth by increasing the number of manufactured homeowners in our Core Portfolio. Our Core Portfolio average occupancy includes both homeowners and renters in our MH communities and was 94.4% for the quarter ended March 31, 2025 and 94.9% for each of the quarters ended December 31, 2024 and March 31, 2024. For the quarter ended March 31, 2025, our Core Portfolio occupancy decreased by 171 sites, primarily due to resident homes damaged by storms in late 2024 in approximately six Florida communities. While we continue to focus on increasing the number of manufactured homeowners in our Core Portfolio, we also believe renting our vacant homes represents an attractive source of occupancy and an opportunity to potentially convert the renter to a new homebuyer in the future. We continue to expect there to be fluctuations in the sources of occupancy depending on local market conditions, availability of vacant sites and success with converting renters to homeowners. As of March 31, 2025, we had 1,918 occupied rental homes in our Core MH communities.

Current wording

We continue to focus on the quality of occupancy growth by increasing the number of manufactured homeowners in our Core Portfolio. Our Core Portfolio average occupancy includes both homeowners and renters in our MH communities and was 94.3% for the quarter ended June 30, 2025 and 94.9% for each of the quarters ended December 31, 2024 and June 30, 2024. During the quarter ended June 30, 2025, our Core Portfolio occupancy decreased by 40 sites, which included a decrease in homeowner occupancy of 127 sites and an increase in rental occupancy of 87 sites compared to March 31, 2025. While we continue to focus on increasing the number of manufactured homeowners in our Core Portfolio, we also believe renting our vacant homes represents an attractive source of occupancy and an opportunity to potentially convert the renter to a new homebuyer in the future. We continue to expect there to be fluctuations in the sources of occupancy depending on local market conditions, availability of vacant sites and success with converting renters to homeowners. As of June 30, 2025, we had 2,005 occupied rental homes in our Core MH communities.

Previous wording

RV and marina base rental income in our Core Portfolio increased 0.2% for the quarter ended March 31, 2025, compared to the same period in 2024, driven primarily by an increase in Annual RV rental income. Core RV and marina base rental income from annuals represents 65.7% of total Core RV and marina base rental income and increased 4.1% for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, due to a 6.4% increase in rate, offset by a decline of 2.3% in occupancy. Core seasonal and transient RV and marina base rental income decreased 5.3% and 9.1%, respectively, for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024 due to returning competitor supply following a period of weather-related disruption in addition to a return to normalized demand.

Current wording

RV and marina base rental income in our Core Portfolio increased 0.7% for the quarter ended June 30, 2025, compared to the same period in 2024, driven primarily by an increase in Annual RV rental income. Core RV and marina base rental income from annuals represents 76.1% of total Core RV and marina base rental income and increased 3.7% for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, due to a 6.2% increase in rate, offset by a decline of 2.5% in occupancy. Core seasonal and transient RV and marina base rental income decreased 6.5% and 8.2%, respectively, for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024 due to returning supply following a period of weather-related disruption and a moderation in demand due in part to cooler weather and elevated levels of precipitation in the Northern and South Central United States that led to fewer transient stays.

Previous wording

We closed 117 new home sales during the quarter ended March 31, 2025, compared to 191 new home sales during the quarter ended March 31, 2024, a decrease of 38.7%. The decrease in new home sales during the quarter ended March 31, 2025 was driven by the Florida and Arizona markets, primarily due to the stabilization of occupancy at certain properties which resulted in fewer homes being available for sale this quarter as compared to the quarter ended March 31, 2024, disruption due to Hurricanes Milton and Helene and a decrease in home sales in Arizona as compared to the first quarter of 2024.

Current wording

We closed 117 new home sales during the quarter ended June 30, 2025 compared to 255 new home sales during the quarter ended June 30, 2024, a decrease of 54.1%. The decrease in new home sales during the quarter ended June 30, 2025 was driven by a moderation in demand, primarily in the Florida market, resulting in fewer homes being sold, and a change in overall sales mix, resulting in a higher volume of lower priced homes being sold, this quarter as compared to the quarter ended June 30, 2024.

Previous wording

Our gross investment in real estate increased $44.9 million to $7,960.5 million as of March 31, 2025 from $7,915.7 million as of December 31, 2024, primarily due to capital improvements during the quarter ended March 31, 2025.

Current wording

Our gross investment in real estate increased $112.8 million to $8,028.5 million as of June 30, 2025 from $7,915.7 million as of December 31, 2024, primarily due to capital improvements during the six months ended June 30, 2025.

Previous wording

The following table reconciles net income available for Common Stockholders to income from property operations for the quarters ended March 31, 2025 and 2024:

Current wording

The following table reconciles net income available for Common Stockholders to income from property operations for the quarters and six months ended June 30, 2025 and 2024:

Previous wording

The following table presents a calculation of FFO available for Common Stock and OP Unitholders and Normalized FFO available for Common Stock and OP Unitholders for the quarters ended March 31, 2025 and 2024:

Current wording

The following table presents a calculation of FFO available for Common Stock and OP Unitholders and Normalized FFO available for Common Stock and OP Unitholders for the quarters and six months ended June 30, 2025 and 2024:

Previous wording

This section discusses the comparison of our results of operations for the quarters ended March 31, 2025 and March 31, 2024 and our operating activities, investing activities and financing activities for the quarters ended March 31, 2025 and March 31, 2024. Our Core Portfolio consists of our Properties owned and operated during all of 2024 and 2025. Our Non-Core Portfolio includes all Properties that were not owned and operated during all of 2024 and 2025, including six properties in Florida impacted by Hurricane Ian and two properties in California that were impacted by storm and flooding events. For the comparison of our results of operations for the quarters ended March 31, 2024 and March 31, 2023 and discussion of our operating activities, investing activities and financing activities for the quarters ended March 31, 2024 and March 31, 2023, refer to Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 1, 2024.

Current wording

This section discusses the comparison of our results of operations for the quarters and six months ended June 30, 2025 and 2024 and our operating activities, investing activities and financing activities for the six months ended June 30, 2025 and 2024. Our Core Portfolio consists of our Properties owned and operated during all of 2024 and 2025. Our Non-Core Portfolio includes all Properties that were not owned and operated during all of 2024 and 2025, including six properties in Florida impacted by Hurricane Ian and two properties in California that were impacted by storm and flooding events. For the comparison of our results of operations for the quarters and six months ended June 30, 2024 and June 30, 2023 and discussion of our operating activities, investing activities and financing activities for the six months ended June 30, 2024 and June 30, 2023, refer to Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on July 30, 2024.

Previous wording

(2)Beginning in the first quarter of 2025, membership upgrade product offerings include two- to four-year term subscription products. Prices for two-year products range between $4,000 to $8,000 and between approximately $7,000 to $14,000 for the four-year product, which results in approximately $2,500-$3,000 of earned revenue on an annual basis.

Current wording

(2)Beginning in the first quarter of 2025, membership upgrade product offerings include two- to four-year term subscription products, which are recognized in Annual membership subscriptions. Prices for two-year products range between $4,000 to $8,000 and between approximately $7,000 to $14,000 for the four-year product, which results in approximately $2,500 to $3,000 of earned revenue on an annual basis.

Previous wording

(3)Membership upgrade revenue is net of deferrals of $0.9 million and $3.6 million for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Current wording

(3)Membership upgrade revenue is net of deferrals of $3.1 million and $4.7 million for the quarters ended June 30, 2025 and 2024, respectively.

Previous wording

(5)Membership sales and marketing expense is net of sales commission deferrals of $0.3 million and $0.4 million for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Current wording

(5)Membership sales and marketing expense is net of sales commission deferrals of $0.9 million for the quarters ended June 30, 2025 and 2024.

Previous wording

MH base rental income in our Core Portfolio for the quarter ended March 31, 2025 increased $9.6 million, or 5.5%, from the quarter ended March 31, 2024, which reflects 5.7% growth from rate increases offset by a decrease of 0.2% in occupancy. The average monthly base rental income per Site in our Core Portfolio increased to approximately $895 for the quarter ended March 31, 2025 from approximately $847 for the quarter ended March 31, 2024. The average occupancy for our Core Portfolio was 94.4% and 94.9% for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Current wording

MH base rental income in our Core Portfolio for the quarter ended June 30, 2025 increased $9.7 million, or 5.5%, from the quarter ended June 30, 2024, which reflects 5.8% growth from rate increases offset by a decrease of 0.3% in occupancy. The average monthly base rental income per Site in our Core Portfolio increased to approximately $904 for the quarter ended June 30, 2025 from approximately $854 for the quarter ended June 30, 2024. The average occupancy for our Core Portfolio was 94.3% and 94.9% for the quarters ended June 30, 2025 and 2024, respectively.

Previous wording

RV and marina base rental income in our Core Portfolio for the quarter ended March 31, 2025 increased $0.2 million, or 0.2%, from the quarter ended March 31, 2024, driven by an increase in Annual RV and marina base rental income. The increase in Annual RV and marina base rental income of 4.1% was partially offset by decreases in Seasonal and Transient RV and marina base rental income of 5.3% and 9.1%, respectively, for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, due to returning competitor supply following a period of weather-related disruption in addition to a return to normalized demand.

Current wording

RV and marina base rental income in our Core Portfolio for the quarter ended June 30, 2025 increased $0.7 million, or 0.7%, from the quarter ended June 30, 2024 driven by an increase in Annual RV and marina base rental income. The increase in Annual RV and marina base rental income of 3.7% was partially offset by decreases in Seasonal and Transient RV and marina base rental income of 6.5% and 8.2%, respectively, for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024. The decreases in Seasonal and Transient RV and marina base rental income were primarily due to returning supply following a period of weather-related disruption and a moderation in demand due in part to cooler weather and elevated levels of precipitation in the Northern and South Central United States that led to fewer transient stays.

Previous wording

Utility and other income in our Core Portfolio for the quarter ended March 31, 2025 increased $1.2 million, or 3.9%, from the quarter ended March 31, 2024. The increase was primarily due to a $0.9 million and $0.6 million increase in utility income and pass-through income, respectively, partially offset by a $0.3 million decrease in other property income. The utility recovery rate (utility income divided by utility expenses) for 2025 and 2024 was approximately 48% and 47%, respectively.

Current wording

Utility and other income in our Core Portfolio for the quarter ended June 30, 2025 increased $1.5 million, or 4.9%, from the quarter ended June 30, 2024. The increase was primarily due to a $1.0 million and $0.4 million increase in utility income and pass-through income, respectively. The utility recovery rate (utility income divided by utility expenses) for the quarters ended June 30, 2025 and 2024 was approximately 49% and 46%, respectively.

Previous wording

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended March 31, 2025 increased $2.1 million, or 1.5%, from the quarter ended March 31, 2024, driven by increases in Repair and maintenance expenses of $1.4 million, Insurance and other of $1.2 million and Utilities expense of $0.8 million, partially offset by a decrease in Membership sales and marketing of $1.4 million. The increase in Repair and maintenance expenses is primarily due to higher contract repairs, lawn and common area maintenance and pool expenses. The increase in Insurance and other is primarily due to higher insurance premiums following our property and casualty insurance renewal in the second quarter of 2024. The increase in Utilities expense is due to an increase in water, electric and trash expenses. The decrease in Membership sales and marketing expense was driven by a decrease in allowances for credit losses related to financed membership products that are no longer being offered, beginning in the first quarter of 2025.

Current wording

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended June 30, 2025 were in line with the quarter ended June 30, 2024, driven by increases in Repairs and maintenance expenses of $2.0 million, Real estate taxes of $1.5 million, and Utilities expense of $0.2 million, partially offset by a decrease in Membership sales and marketing of $2.1 million, Insurance and other of $1.2 million, and Rental home operating and maintenance of $0.3 million. The increase in Repairs and maintenance expenses is primarily due to higher lawn and common area maintenance expense, contract repairs and extraordinary repairs and maintenance expenses. The increase in Real estate taxes was primarily driven by higher real estate taxes in Florida. The increase in Utilities expense is due to increases in trash, water and electric expense. The decrease in Membership sales and marketing expense was driven by a decrease in allowances for credit losses related to financed membership products that are no longer being offered beginning in the first quarter of 2025. The decrease in Insurance and other expenses was primarily driven by a decrease in administrative, insurance and rental home expense.

Previous wording

(1)Consists of Site rental income and home rental income. Approximately $5.0 million and $5.6 million for the quarters ended March 31, 2025 and March 31, 2024, respectively, of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table. The remainder of home rental income is included in Rental home income in our Core Portfolio Income from Property Operations table.

Current wording

(1)Consists of Site rental income and home rental income. Approximately $5.2 million for the quarters ended June 30, 2025 and 2024 of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table. The remainder of home rental income is included in Rental home income in our Core Portfolio Income from Property Operations table.

Previous wording

Total other income and expenses, net decreased $4.6 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to lower General and administrative expenses and Interest and related amortization as a result of debt repayment.

Current wording

Total Other income and expenses, net decreased $1.7 million for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 primarily due to lower Interest and related amortization and Other expenses, partially offset by higher General and administrative expense and Depreciation and amortization.

Previous wording

During the quarters ended March 31, 2025 and March 31, 2024, we recognized expenses of approximately $0.8 million and $0.5 million, respectively, related to debris removal and cleanup costs related to Hurricane Ian, Hurricane Helene, and Hurricane Milton. We recognized an offsetting insurance recovery revenue accrual of approximately $0.6 million and $0.5 million during the quarters ended March 31, 2025 and March 31, 2024, respectively, for Hurricane Milton and Hurricane Ian. During the quarter ended March 31, 2024, we also recognized excess insurance recovery revenue of approximately $14.8 million for reimbursement of capital expenditures related to Hurricane Ian. The debris and cleanup costs and offsetting recovery accrual and reimbursement of capital expenditures are reflected in Casualty-related charges/(recoveries), net on the Consolidated Statements of Income and Comprehensive Income.

Current wording

During the quarters ended June 30, 2025 and 2024, we recognized expenses of approximately $0.3 million and $0.7 million, respectively, related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accruals of approximately $0.2 million and $0.7 million related to the expenses incurred during the same periods. During the quarters ended June 30, 2025 and 2024, we also recognized excess insurance recovery revenue of approximately $0.6 million and $6.2 million, respectively, for reimbursement of capital expenditures related to Hurricane Ian. The debris and cleanup costs and offsetting recovery accrual and reimbursement of capital expenditures are reflected in Casualty-related charges/(recoveries), net on the Consolidated Statements of Income and Comprehensive Income.

Previous wording

Total portfolio income from property operations for the quarter ended March 31, 2025, increased $5.9 million, or 3.1%, from the quarter ended March 31, 2024, driven by an increase of $7.1 million, or 3.8%, from our Core Portfolio, offset by a decrease of $1.2 million from our Non-Core Portfolio. The increase in Income from property operations from our Core Portfolio was primarily due to higher property operating revenues, primarily in MH base rental income along with an increase in Utility and other income, partially offset by a decrease in Membership upgrade revenue driven by a cessation of upfront membership upgrade product offerings, during the first quarter of 2025. The increase in Property operating revenues was partially offset by an increase in property operating expenses, primarily an increase in Repairs and maintenance and Insurance and other, partially offset by a decrease in Membership sales and marketing expenses.

Current wording

Total Portfolio Income from property operations for the six months ended June 30, 2025 increased $15.5 million, or 4.3%, from the same period in 2024 driven by an increase of $17.4 million, or 5.0%, from our Core Portfolio, offset by a decrease of $1.9 million from our Non-Core Portfolio. The increase in Income from property operations from our Core Portfolio was primarily due to higher Property operating revenues, primarily in MH base rental income and Utility and other income, partially offset by an increase in Repairs and maintenance and Real estate taxes.

Previous wording

Gross revenues from new home sales decreased $8.3 million and Cost of new home sales decreased $6.8 million during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, driven by the Florida and Arizona markets primarily due to the stabilization of occupancy at certain properties which resulted in fewer homes being available for sale this quarter as compared to March 31, 2024, disruption due to Hurricanes Milton and Helene and a decrease in home sales in Arizona as compared to the first quarter of 2024.

Current wording

Gross revenues from new home sales decreased $21.5 million and Cost of new home sales decreased $17.6 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 driven by a moderation in demand, primarily in the Florida and Arizona markets, which resulted in fewer homes being sold during the six months ended June 30, 2025, a change in overall sales mix, resulting in a higher volume of lower priced homes being sold, and disruption due to Hurricanes Milton and Helene.

Previous wording

Rental operations revenues were $0.7 million, or 7.3%, lower during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to a decrease in the number of occupied rentals.

Current wording

Rental operations revenues were $0.5 million, or 2.9%, lower during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a net decrease in the number of occupied rentals.

Previous wording

Equity in income of unconsolidated joint ventures was $4.6 million higher during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to a distribution from an unconsolidated joint venture that refinanced a secured loan and distributed proceeds, of which $6.2 million exceeded our basis in the joint venture.

Current wording

Equity in income of unconsolidated joint ventures was $4.0 million higher during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a distribution from an unconsolidated joint venture that refinanced a secured loan and distributed proceeds, of which $6.2 million exceeded our basis in the joint venture.

Previous wording

As of March 31, 2025, we had available liquidity in the form of approximately 408.9 million shares of authorized and unissued common stock, par value $0.01 per share, and 10.0 million shares of authorized and unissued preferred stock registered for sale under the Securities Act of 1933, as amended.

Current wording

As of June 30, 2025, we had available liquidity in the form of approximately 408.8 million shares of authorized and unissued common stock, par value $0.01 per share, and 10.0 million shares of authorized and unissued preferred stock registered for sale under the Securities Act of 1933, as amended.

Previous wording

We expect to meet our short-term liquidity requirements, including principal payments, capital improvements and dividend distributions for the next twelve months, generally through available cash, net cash provided by operating activities, issuances of equity under our ATM equity offering program and our LOC. As of March 31, 2025, our LOC had a borrowing capacity of $436.9 million.

Current wording

We expect to meet our short-term liquidity requirements, including principal payments, capital improvements and dividend distributions for the next twelve months, generally through available cash, net cash provided by operating activities, issuances of equity under our ATM equity offering program and our LOC. As of June 30, 2025, our LOC had a borrowing capacity of $409.9 million.

Previous wording

Net cash provided by operating activities decreased $5.4 million to $193.4 million for the quarter ended March 31, 2025 from $198.7 million for the quarter ended March 31, 2024. The decrease in net cash provided by operating activities was primarily due to increases in cash outflows related to accounts payable and other liabilities and Manufactured homes, net, partially offset by an increase in insurance proceeds.

Current wording

Net cash provided by operating activities decreased $17.2 million to $324.7 million for the six months ended June 30, 2025 from $341.9 million for the six months ended June 30, 2024. The decrease in net cash provided by operating activities was primarily due to increases in cash outflows related to manufactured homes, net and accounts payable and other liabilities, partially offset by an increase in business insurance proceeds.

Previous wording

Net cash used in investing activities decreased $9.0 million to $42.3 million for the quarter ended March 31, 2025 from $51.3 million for the quarter ended March 31, 2024. The decrease was primarily due to a decrease in capital expenditures of $9.5 million.

Current wording

Net cash used in investing activities increased $52.3 million to $156.9 million for the six months ended June 30, 2025 from $104.6 million for the six months ended June 30, 2024. The increase was primarily driven by the $56.1 million term loan to RVC.

Previous wording

(3)Includes $7.4 million and $5.6 million of restoration and improvement capital expenditures related to hurricane activity for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Current wording

(3)Includes $13.9 million and $10.4 million of restoration and improvement capital expenditures related to hurricane activity for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

Net cash used in financing activities decreased $1.9 million to $128.2 million for the quarter ended March 31, 2025 from $130.1 million for the quarter ended March 31, 2024. The decrease was primarily due to lower net debt repayments of $10.3 million, partially offset by increases in distributions to common stock and OP unit holders of $8.1 million.

Current wording

Net cash used in financing activities decreased $72.2 million to $159.4 million for the six months ended June 30, 2025 from $231.6 million for the six months ended June 30, 2024. The decrease was primarily due to lower net debt repayments of $92.5 million, partially offset by increases in distributions to common stock and OP unit holders of $17.8 million.