ELS · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

EQUITY LIFESTYLE PROPERTIES INC · 2026-04-28 · Importance 48 · Surprise 14

Interest and related amortization expense was $33.645 million for Q1 2026, up $2.509 million (8.1%) from $31.136 million in Q1 2025, increasing total other expenses. The company uses interest rate swaps designated as cash flow hedges to stabilize interest expense; mark-to-market changes are recorded in Accumulated other comprehensive income and reclassified into earnings when the hedged forecasted transaction affects earnings. As of March 31, 2026 the company’s unsecured Line of Credit had $410.4 million of remaining borrowing capacity with an option to increase capacity by $200.0 million subject to conditions. The LOC bears interest at a rate of SOFR plus 0.10% plus 1.25% to 1.65% and requires an annual facility fee of 0.20% to 0.35%.

Key facts

• Interest and related amortization expense increased $2,509 thousand (8.1%) to $33,645 thousand for the quarter ended March 31, 2026 from $31,136 thousand
• The LOC bears interest at SOFR plus 0.10% plus a margin of 1.25% to 1.65% and requires an annual facility fee of 0.20% to 0.35%
• ELP utilizes interest rate swaps, designated as cash flow hedges, to add stability to interest expense and manage exposure to interest rate movements

Impact estimates