Equity LifeStyle Secures Funding - Analyst Blog
19 Settembre 2011 - 6:21PM
Zacks
Equity LifeStyle Properties, Inc. (ELS), a real
estate investment trust (REIT) that owns and operates
lifestyle-oriented properties, has recently obtained a debt of $100
million collateralized by 10 manufactured home communities and an
RV (recreational vehicle) resort.
The debt facility, scheduled to mature in 2021, bears an annual
interest rate of 5.0% and requires an interest-only payment for the
first two years.
In concurrence with its corporate strategy to own high-quality
resort communities in high barrier-to-entry markets, the company
had earlier announced its decision to acquire a portfolio of 75
manufactured home communities and a RV resort for $1.43 billion,
including loans secured by the former.
The properties were acquired from the affiliates of Hometown
America L.L.C., a privately held company that owns and operates
manufactured housing communities across the U.S.
As of September 15, 2011, Equity Lifestyle had completed the
purchase of 58 properties. The company expects the proceeds from
the loan to partially fund the acquisition of the remaining 18
properties.
The acquisition will enable Equity LifeStyle to increase its
scale of operations and swell its kitty of manufactured home
communities. The company leases individual developed areas or sites
that have access to utilities for the construction of factory-built
homes, cottages, cabins or recreational vehicles.
Customers either opt to lease individual sites or sign
right-to-use agreements with the company that provide them with
access to specific properties for limited stays. As of September
15, 2011, Equity LifeStyle’s portfolio includes 365 properties
located in 32 states across the U.S.
We presently have a Neutral recommendation on Equity LifeStyle,
which currently has a Zacks #3 Rank that translates into a
short-term Hold rating. However, we have an Outperform
recommendation and a Zacks #1 Rank (short-term Strong Buy) for
Post Properties Inc. (PPS), one of the peers of
Equity LifeStyle.
EQUITY LIFESTYL (ELS): Free Stock Analysis Report
POST PPTYS INC (PPS): Free Stock Analysis Report
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