ELS Settles California Lawsuits
Equity LifeStyle Properties, Inc. (NYSE:ELS) (referred to herein as the “Company,” “we,” “us,” and “our”) announces that it has
entered into agreements pursuant to which it has agreed to settle the three pending California lawsuits related to its California
Hawaiian property in San Jose, its Monte del Lago property in Castroville and its Santiago Estates property in Sylmar. Each of the
three plaintiff groups is represented by the same law firm and has alleged that the Company failed to properly maintain the
respective properties.
We expect our aggregate contribution to the settlements, net of contributions from our insurance carriers, to be approximately
$2.4 million or $0.03 per share. The net expense will be recorded in the fourth quarter of 2016. The Company reaffirms previously
issued guidance ranges for 2016.
President and Chief Executive Officer Marguerite Nader commented, “As we have previously stated, we believe that the allegations
set forth in the lawsuits were without merit, and we have consistently and vigorously defended ourselves throughout the
proceedings. However, we believe that these settlements are in the best interest of the Company and our shareholders. We will
continue to focus our resources and management attention on operating high quality, well-maintained communities.”
These settlements resolve all pending matters brought by plaintiffs’ counsel against the Company or any of its affiliates.
Pursuant to the settlement agreements, all plaintiffs will provide full releases to each of the defendants and their affiliates
including with respect to the claims alleged in the lawsuits, and each of the lawsuits and related appeals will be dismissed with
prejudice. The settlements do not constitute an admission of liability by the Company or any of its affiliates and were made to
avoid the costs, risks and uncertainties inherent in litigation.
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 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 or increase future 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 2016 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;
- effective integration of recent acquisitions and our estimates regarding the future performance of
recent acquisitions;
- the completion of future transactions in their entirety, if any, and timing and effective integration
with respect thereto;
- 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”;
- the outcome of pending or future lawsuits or actions brought against us, including those disclosed in
our filings with the Securities and Exchange Commission; 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.
We own or have an interest in 391 quality properties in 32 states and British Columbia consisting of 146,610 sites. We are a
self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170118006257r1&sid=mstr2&distro=nx&lang=en)
Equity LifeStyle Properties, Inc.
Paul Seavey
(800) 247-5279
View source version on businesswire.com: http://www.businesswire.com/news/home/20170118006257/en/