Equity Lifestyles Properties Q3 2007 Earnings Call Transcript

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2007-10-16 12:38:54.0

Tags: Equity Lifestyle Properties Inc.

Question-and-Answer Session

Operator

Thank you very much, sir. (Operator Instructions). And our first question comes from the line David Bragg of Merrill Lynch. Please proceed.

David Bragg - Merrill Lynch

Thanks, good morning. Just looking for a breakout between the MH segment and the RV segment for this quarter, but also as we get closer to '08, given that your guidance is still intact, if you could just provide some more color on both of those segments going forward? Thanks.

Michael Berman

Hi, David. Overall our core was up 5.9% in the quarter, really three things going on there. One, on the core MH side we were up 4.4%, approximately 30 basis points came from occupancy. Most of our occupancy gains came from Arizona. In our resort business, we were up a little over 5%, and there we have seen a continuation of the trends we have had all year long with our annuals up over 8%, roughly 6% from rate and about 2% from occupancy, in rough numbers. And the other thing that we have seen is our utility and other income programs continuing to show results. They were up almost 20% in the quarter.

With respect to the fourth quarter, we see similar trends going on. Really not much different than what you would see in the third quarter. In 2008, we would expect some of the revenue numbers to moderate. We mentioned on the last call, we see CPI going down for us. In 2008, our expectation is we would have core revenues on the MH side growing approximately 3.8%, that's kind of the midpoint of a range assuming zero increase in occupancy, and about 65% of our notices have gone out at that rate.

On the RV side, a little bit harder to predict in the future given the seasonal and transient component that we have. But, assuming if it's our expectations, we would expect order magnitude 4.5% to 5.5%, again driven by our annuals. And, again, on the utility and other income, we see that slowing fairly dramatically as we have no new plans right now to implement any of these programs in 2008, although that could always change sometime down the road. So, that gives you our revenue expectation, order magnitude 3.5% to 4% on revenues.

David Bragg - Merrill Lynch

Great, thanks. And then, next on the rent control, do you have an outlook there for costs expected in 2008? And could you provide us with any updates on this year, any progress that you have made? I understand that you have been at trial in recent months.

 

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