EQUITY LIFESTYLE PROPERTIES INC

Current report

Some Potential Losses Are Not Covered by Insurance

Current report

We carry comprehensive insurance coverage for losses resulting from property damage and environmental liability and business interruption claims on all of our Properties. In addition, we carry liability coverage for other activities not specifically related to property operations. These coverages include, but are not limited to, Directors & Officers liability, Employment Practices liability, Fiduciary liability and Cyber liability. We believe that the policy specifications and coverage limits of these policies should be adequate and appropriate given the relative risk of loss, the cost of insurance and industry practice. There are, however, certain types of losses, such as punitive damages, lease and other contract claims that generally are not insured. Should an uninsured loss or a loss in excess of coverage limits occur, we could lose all or a portion of the capital we have invested in a Property or the anticipated future revenue from a Property. In such an event, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the Property.

Current report

Our current property and casualty insurance policies with respect to our MH and RV Properties, which we plan to renew, expire on April 1, 2027. We have a $125.0 million per occurrence limit with respect to our MH and RV all-risk property insurance program, which includes $75.0 million of coverage per occurrence for named windstorms, which include, for example, hurricanes. The loss limit is subject to additional sub-limits as set forth in the policy form, including, among others, a $25.0 million aggregate loss limit for earthquake(s) in California. The deductibles for this policy primarily range from $500,000 minimum to 5.0% per unit of insurance for most catastrophic events. For most catastrophic events, there is an additional $5.0 million aggregate deductible. We have separate insurance policies with respect to our marina Properties. Those casualty policies expire on November 1, 2026, and the property insurance program renewed on April 1, 2026. The marina property insurance program has a $30.0 million per occurrence limit, subject to self-insurance and a minimum deductible of $100,000 plus, for named windstorms, 5.0% per unit of insurance subject to a $500,000 minimum. A deductible indicates our maximum exposure, subject to policy limits and sub-limits, in the event of a loss.

Previous report

The Economic Performance and Value of Our Properties Are Subject to Risks Associated with the Real Estate Industry.

Previous report

The economic performance and value of our Properties could be adversely affected by various factors, many of which are outside of our control. These factors include but are not limited to the following:

Previous report

•changes in the global, national, regional and/or local economies;

Previous report

•the attractiveness of our Properties to customers, competition from other MH and RV communities and lifestyle-oriented properties and marinas and alternative forms of housing (such as apartment buildings and site-built single family homes);

Previous report

•the ability of MH, RV and boat manufacturers to adapt to changes in the economy and the availability of units from these manufacturers;

Previous report

•the ability of our potential customers to sell or lease their existing residences in order to purchase homes or cottages at our Properties, and heightened price sensitivity for seasonal and second homebuyers;

Previous report

•the ability of our potential customers to obtain financing on the purchase of manufactured homes and cottages, RVs and/or boats;

Previous report

•our ability to attract new customers and retain them for our membership subscriptions and upgrade sales business;

Previous report

•our ability to collect payments from customers and pay or control operating costs, including real estate taxes and insurance;

Previous report

•the ability of our assets to generate income sufficient to pay our expenses, service our debt and maintain our Properties;

Previous report

•our ability to diversify, reconfigure our portfolio promptly in response to changing economic or other conditions and sell our Properties timely due to the illiquid nature of real estate investments;

Previous report

•unfavorable weather conditions, especially on holiday weekends in the spring and summer months, which are peak business periods for our transient customers;

Previous report

•changes in weather patterns and the occurrence of natural disasters or catastrophic events, including acts of war and terrorist attacks;

Previous report

•fluctuations in the exchange rate of the U.S. dollar to other currencies, primarily the Canadian dollar due to Canadian customers, who frequently visit our southern Properties;

Previous report

•changes in U.S. social, economic and political conditions, laws and governmental regulations, including policies governing rent control, fair and equitable access to housing, property zoning, taxation, minimum wages, chattel financing, health care, foreign trade, tariffs, regulatory compliance, manufacturing, development and investment, as well as the impact of those on U.S. and Canadian relations and customer sentiment, which may influence decisions to visit our Properties or continue tenancy;

Previous report

•an inflationary environment in which the costs to operate and maintain our communities increase at a rate greater than our ability to increase rents;

Previous report

•a recession or economic downturn;

Previous report

•supply chain disruptions and tightening labor markets, which have affected and could affect our ability to obtain materials and skilled labor timely without incurring significant costs or delays for any development and expansion activities;

Previous report

•fiscal policies, instability or inaction at the U.S. federal government level, which may lead to federal government shutdowns or negative impacts on the U.S. economy;

Previous report

•adverse outcomes of litigation;

Previous report

•public health crises, such as highly infectious or contagious diseases, which have had and could in the future have an adverse effect on our business; and

Previous report

•the realization of any other risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2024 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Previous report

Changes in or the occurrence of any of these factors could adversely affect our financial condition, results of operations, market price of our common stock and our ability to make expected distributions to our stockholders or result in claims, including, but not limited to, foreclosure by a lender in the event of our inability to service our debt.