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1. Company Snapshot

1.a. Company Description

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago.As of January 25, 2021, we own or have an interest in 423 quality properties in 33 states and British Columbia consisting of 161,229 sites.

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1.b. Last Insights on ELS

Equity LifeStyle Properties, Inc.'s recent performance was driven by strong Q4 2024 earnings and revenue growth, with FFO meeting estimates at $0.76 per share. The company's solid backlog and demand for its products, such as manufactured homes and RV resorts, contributed to its performance. Additionally, Equity LifeStyle Properties increased its annual dividend by 12% and announced a first quarter 2025 dividend of $0.515 per share, representing a 12.3% increase from the previous quarter. The company also announced plans to participate in the Citi 2025 Global Property CEO Conference, indicating a positive outlook and commitment to growth.

1.c. Company Highlights

2. ELS Posts Strong Q3 2025 Earnings, Driven by Core Rental Income Growth

Equity LifeStyle Properties (ELS) reported a robust financial performance in Q3 2025, with normalized FFO growth of 4.6% and core community-based rental income increasing by 5.5%. The company's normalized FFO per share came in at $0.75, in line with expectations. Earnings per share (EPS) was $0.69, matching analyst estimates. The net contribution from the membership business was $16.8 million for Q3 and $48.2 million for the year-to-date period. The strong performance was driven by rate growth of 6% from noticed increases to renewing residents and market rent paid by new residents.

Publication Date: Oct -27

📋 Highlights
  • FFO Growth:: 4.6% normalized FFO growth in Q3 2025, with full-year guidance of $3.06/share (4.9% growth over 2024).
  • Rental Income & Rate Growth:: 5.5% increase in core community-based rental income, driven by 6% rate growth from renewals and new residents.
  • Balance Sheet Strength:: Over $1 billion in capital access via line of credit and ATM programs, with no secured debt maturing before 2028.
  • RV/Marina Recovery:: Expected rebound in 2026 after Q3 weakness due to storm damage, with 13% seasonal transient RV revenue decline in Q4.
  • Conversion Strategy:: 15–20% of annual RV customers previously transient, leveraging customer service to encourage long-term stays and reduce volatility.

Guidance and Outlook

The company expects continued strength in property operations and FFO, with 2026 rent increases guided at 5.1% for both manufactured housing and RV portfolios. For 2025, ELS maintains its normalized FFO guidance of $3.06 per share, representing 4.9% growth compared to 2024. The company's guidance assumes core base rent growth of 5-6% for manufactured housing and -20 to 80 basis points for RV and Marina. Analysts estimate next year's revenue growth at 4.3%.

Balance Sheet and Capital Structure

The balance sheet remains strong, with no secured debt maturing before 2028 and a weighted average debt maturity of 8 years. ELS has access to over $1 billion of capital from its line of credit and ATM programs. The company's net debt to EBITDA ratio stands at 4.42, indicating a manageable level of leverage. The current valuation metrics, including a P/E Ratio of 31.1 and P/S Ratio of 8.09, suggest that the market is pricing in a certain level of growth.

Segment Performance and Growth Opportunities

The RV and Marina annual segment was weaker than expected due to storm-damaged properties, which are expected to come online in 2026. However, the company expects a rebound in Marina annuals and is focusing on marketing plays to drive bookings. In the manufactured housing segment, ELS is looking to add 400-500 expansion sites this year, which is on the lower end of their 5-year average. The company continues to see opportunities for growth in MH but faces challenges in acquiring high-quality portfolios due to a fragmented ownership base.

Operational Strategies and Initiatives

The company is working to convert transient business to annual business to reduce volatility. About 15% to 20% of annual customers previously stayed as transients or seasonals, and ELS is focused on presenting guests with the option of longer-term stays after they experience high-quality customer service. The company is also leveraging marketing and social media to attract domestic customers and using online travel agents like Expedia and Booking.com to drive bookings.

3. NewsRoom

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Equity Lifestyle Properties, Inc. (NYSE:ELS) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Dec -04

Source: defenseworld.net

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Creative Planning Purchases 19,977 Shares of Equity Lifestyle Properties, Inc. $ELS

Nov -27

Source: defenseworld.net

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B&I Capital AG Purchases 10,100 Shares of Equity Lifestyle Properties, Inc. $ELS

Nov -27

Source: defenseworld.net

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Bahl & Gaynor Inc. Has $30.93 Million Holdings in Equity Lifestyle Properties, Inc. $ELS

Nov -22

Source: defenseworld.net

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Equity Lifestyle Properties, Inc. $ELS Shares Purchased by 17 Capital Partners LLC

Nov -20

Source: defenseworld.net

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ABN Amro Investment Solutions Invests $4.21 Million in Equity Lifestyle Properties, Inc. $ELS

Nov -14

Source: defenseworld.net

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The Next Big Trade: Why I'm Loading Up On REITs Before Everyone Else

Nov -13

Source: seekingalpha.com

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Analyzing Equity Lifestyle Properties (NYSE:ELS) and Invitation Home (NYSE:INVH)

Nov -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Property

Expected Growth: 4.65%

Equity LifeStyle Properties, Inc.'s 4.65% growth is driven by increasing demand for recreational vehicles and manufactured homes, fueled by an aging population and rising interest in experiential travel. Additionally, the company's strategic acquisitions and expansions into high-growth markets, such as Florida and California, contribute to its growth momentum.

Home Sales and Rentals

Expected Growth: 4.65%

The 4.65% growth in Home Sales and Rentals from Equity LifeStyle Properties, Inc. is driven by increasing demand for luxury manufactured housing, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on amenities and lifestyle offerings, as well as its strong brand reputation, contribute to its growth.

7. Detailed Products

Manufactured Home Communities

Equity LifeStyle Properties, Inc. owns and operates manufactured home communities, offering residents a range of amenities and services.

RV Resorts

The company operates RV resorts, providing temporary and seasonal accommodations for recreational vehicle owners and travelers.

Campgrounds

Equity LifeStyle Properties, Inc. owns and operates campgrounds, offering campsites and amenities for outdoor enthusiasts.

8. Equity LifeStyle Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Equity LifeStyle Properties, Inc. is medium due to the availability of alternative housing options such as apartments and single-family homes.

Bargaining Power Of Customers

The bargaining power of customers for Equity LifeStyle Properties, Inc. is low due to the fragmented nature of the customer base and the lack of significant purchasing power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Equity LifeStyle Properties, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Equity LifeStyle Properties, Inc. is low due to the high barriers to entry in the manufactured housing industry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Equity LifeStyle Properties, Inc. is high due to the competitive nature of the manufactured housing industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.30%
Debt Cost 3.95%
Equity Weight 28.70%
Equity Cost 7.50%
WACC 4.97%
Leverage 248.45%

11. Quality Control: Equity LifeStyle Properties, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sun Communities

A-Score: 6.0/10

Value: 2.7

Growth: 4.7

Quality: 6.4

Yield: 8.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Mid-America Apartment Communities

A-Score: 5.6/10

Value: 3.2

Growth: 5.2

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Equity Lifestyle Properties

A-Score: 5.3/10

Value: 2.0

Growth: 5.3

Quality: 6.2

Yield: 5.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Independence Realty Trust

A-Score: 5.2/10

Value: 2.6

Growth: 5.8

Quality: 4.2

Yield: 7.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
UDR

A-Score: 5.2/10

Value: 2.2

Growth: 3.9

Quality: 4.5

Yield: 8.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Apartment Income REIT

A-Score: 4.4/10

Value: 4.4

Growth: 4.3

Quality: 5.4

Yield: 4.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.84$

Current Price

61.84$

Potential

-0.00%

Expected Cash-Flows