ELS Closes on Transactions and Updates Guidance

  ELS Closes on Transactions and Updates Guidance

           Sells 11 Michigan Assets, Acquires Three MH Communities

Business Wire

CHICAGO -- August 1, 2013

Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,”
“us,” and “our”) today announced the closing of two transactions.

We completed the sale of ten manufactured home communities located in Michigan
collectively containing approximately 4,925 sites. These assets, acquired as
part of the $1.5 billion Hometown acquisition in 2011, were ultimately
targeted for disposition because they did not satisfy our core business
strategy. Overall occupancy has remained around 70% since acquisition with
approximately 37% of the occupancy consisting of rental homes and home loans
we owned.We expect to close the sale of one additional community located in
Michigan containing 419 sites during the third quarter of 2013. The closing of
the sale of the remaining community in Michigan is subject to customary
closing conditions and no assurances can be given that the disposition will be
completed in accordance with the anticipated timing or at all. The sale price
for all 11 communities is approximately $165.0 million. We expect to recognize
a gain on sale of these assets of approximately $41.0 million in the third
quarter of 2013.

We acquired three manufactured home communities located in the Chicago
metropolitan area collectively containing approximately 1,207 sites for a
purchase price of $102 million. We funded the purchase price with available
cash and limited partnership interests in our operating partnership.

Marguerite Nader, our Chief Executive Officer, commented, “We are pleased with
the execution on these transactions. We were able to redeploy capital from our
sale of assets in non-core markets into three high quality manufactured home
communities in the Chicagoland area to complement our existing assets in this
market.”

As a result of these transactions, we are revising our previously issued
guidance range for normalized funds from operations (“Normalized FFO”) per
share. We project fully diluted Normalized FFO per share of $0.61 to $0.67 for
the three months ending September 30, 2013 and $2.46 to $2.56 for the year
ending December 31, 2013.See table below for additional information:

(In millions, except per share data, adjusted for stock split, unaudited) ^(1)

                                        Quarter Ended       Year Ended
                                        September 30, 2013  December 31, 2013
Income from property operations - 2013  $       98.4        $     391.9
Core
Income from property operations -       1.3                  4.8
Acquisitions ^(2)
Income from discontinued operations     1.0                  8.8
Property management and general and     (16.7           )    (66.8         )
administrative
Other income and expenses               6.2                  17.9
Financing costs and other               (31.8           )   (128.4        )
Normalized FFO ^(3)                     $       58.4      $     228.2   
                                                             
Normalized FFO per share - fully        $0.61 - $0.67        $2.46 - $2.56
diluted
Weighted average shares outstanding -   91.1                 91.1
fully diluted
                                                             
                                        Quarter Ended        Year Ended
                                        September 30, 2013  December 31, 2013
Normalized FFO ^(3)                     $        58.4        $     228.2
Change in fair value of contingent      —                    1.1
consideration asset
Transaction costs                       (0.3            )    (0.4          )
Early debt retirement                   (38.3           )   (39.7         )
FFO ^(3)                                $        19.8        $     189.2
Depreciation on real estate and other   (25.9           )    (105.2        )
Depreciation on rental homes            (1.7            )    (6.5          )
Depreciation on discontinued operations (0.1            )    (1.7          )
Deferral of right-to-use sales revenue  (1.1            )    (3.5          )
and commissions, net
Income allocated to OP Units            (2.5            )    (9.5          )
Gain on sale of property                41.0               42.0          
Net income available to common shares   $       29.5      $     104.8   
                                                             
FFO per share - fully diluted           $0.19 - $0.25        $2.03 - $2.13
Net income per common share - fully     $0.32 - $0.38        $1.20 - $1.30
diluted ^(4)
                                                             
Weighted average shares outstanding -   91.1                 91.1
fully diluted

_____________________________________

     Each line item represents the mid-point of a range of possible outcomes
     and reflects management's estimate of the most likely outcome. Actual
1.  Normalized FFO, Normalized FFO per share, FFO, FFO per share, Net Income
     and Net Income per share could vary materially from amounts presented
     above if any of our assumptions is incorrect.
2.   Includes properties acquired in 2012 and 2013.
3.   See the Current Report on Form 8-K filed on August 1, 2013 for
     definitions of Normalized FFO and FFO.
4.   Net income per fully diluted common share is calculated before Income
     allocated to OP Units.
     

Our guidance acknowledges the existence of volatile economic conditions, which
may impact our current guidance assumptions. Factors impacting 2013 guidance
include but are not limited to the following: (i) the mix of site usage within
the portfolio; (ii) yield management on our short-term resort sites; (iii)
scheduled or implemented rate increases on community and resort sites; (iv)
scheduled or implemented rate increases in annual payments under right-to-use
contracts; (v) occupancy changes; (vi) our ability to retain and attract
customers renewing or entering right-to-use contracts; (vii) performance of
the chattel loans purchased by us in connection with a prior acquisition;
(viii) our ability to integrate and operate recent acquisitions in accordance
with our estimates; (ix) completion of pending transactions in their entirety
and on assumed schedule and (x) ongoing legal matters and related fees.

As of August 1, 2013, we own or have an interest in 376 quality properties in
32 states and British Columbia consisting of 138,964 sites. We are a
self-administered, self-managed real estate investment trust (“REIT”) with
headquarters in Chicago.

This press release includes certain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. When used,
words such as “anticipate,” “expect,” “believe,” “project,” “intend,” “may be”
and “will be” and similar words or phrases, or the negative thereof, unless
the context requires otherwise, are intended to identify forward-looking
statements and may include, without limitation, information regarding our
expectations, goals or intentions regarding the future, and the expected
effect of our recent acquisitions. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties, including, but not
limited to:

  *our ability to control costs, real estate market conditions, the actual
    rate of decline in customers, the actual use of sites by customers and our
    success in acquiring new customers at our properties (including those that
    we may acquire);
  *our ability to maintain historical rental rates and occupancy with respect
    to properties currently owned or that we may acquire;
  *our ability to retain and attract customers renewing, upgrading and
    entering right-to-use contracts;
  *our assumptions about rental and home sales markets;
  *our assumptions and guidance concerning 2013 estimated net income, FFO and
    Normalized FFO;
  *our ability to manage counterparty risk;
  *in the age-qualified properties, home sales results could be impacted by
    the ability of potential homebuyers to sell their existing residences as
    well as by financial, credit and capital markets volatility;
  *results from home sales and occupancy will continue to be impacted by
    local economic conditions, lack of affordable manufactured home financing
    and competition from alternative housing options including site-built
    single-family housing;
  *impact of government intervention to stabilize site-built single family
    housing and not manufactured housing;
  *the completion of transactions in their entirety and future transactions,
    if any, and timing and effective integration with respect thereto;
  *effective integration of recent acquisitions and our estimates regarding
    the future performance of recent acquisitions;
  *unanticipated costs or unforeseen liabilities associated with recent
    acquisitions;
  *ability to obtain financing or refinance existing debt on favorable terms
    or at all;
  *the effect of interest rates;
  *the dilutive effects of issuing additional securities;
  *the effect of accounting for the entry of contracts with customers
    representing a right-to-use the Properties under the Codification Topic
    “Revenue Recognition;” and
  *other risks indicated from time to time in our filings with the Securities
    and Exchange Commission.

These forward-looking statements are based on management's present
expectations and beliefs about future events. As with any projection or
forecast, these statements are inherently susceptible to uncertainty and
changes in circumstances. We are under no obligation to, and expressly
disclaim any obligation to, update or alter our forward-looking statements
whether as a result of such changes, new information, subsequent events or
otherwise.

Contact:

Equity LifeStyle Properties, Inc.
Paul Seavey, (312) 279-1488
 
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