Equity LifeStyle Properties Inc (NYSE:ELS) stock fell 2.01% (As on July 18, 11:37:32 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 23. Core MH base rental income for the quarter ended June 30, 2023 increased 6.7% compared to the same period in 2022, which reflects 7.0% growth from rate increases. The company sold 226 new homes during the quarter ended June 30, 2023, with an average sales price of $102,000. Core RV and marina base rental income for the quarter ended June 30, 2023 increased 2.3% compared to the same period in 2022. Core RV and marina annual base rental income for the quarter ended June 30, 2023 increased 7.8% compared to the same period in 2022, which reflects 7.3% growth from rate increases and 0.5% from occupancy gains. The company continues to see demand for annual sites and have increased the Core RV and marina annual site count by approximately 240 since June 30, 2022, which has reduced the number of transient sites available for use.

ELS in the second quarter of FY 23 has reported the adjusted funds from operations (FFO) per share of 66 cents, which is inline with the analysts’ estimates for the adjusted FFO per share of 13 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $370.01 million in the second quarter of FY 23, missing the analysts’ estimates for revenue by 0.62%.

Additionally, in June 2023, the company had closed on a secured refinancing transaction generating gross proceeds of $89 million (the “June 2023 financing”). The loan represents an incremental borrowing from an existing secured facility, has a fixed interest rate of 5.04% per annum and matures in 10 years. The company also locked rate on a $375 million secured financing at a weighted average interest rate of 5.05% secured by a pool of MH and RV assets. The secured financing has a weighted average term to maturity of 7.5 years. The company expects to close in the third quarter of 2023. In July 2023 the company repaid all debt scheduled to mature in 2023 and 2024 with proceeds from the June 2023 financing and our unsecured line of credit. Upon consummation of the $375 million secured financing, which is subject to customary closing conditions, the proceeds will be used to pay off the remaining balance on the unsecured line of credit.