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Equity Lifestyle Properties (ELS)
NYSE:ELS
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Equity Lifestyle
(NYSE:ELS)
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Rating:69Neutral
Price Target:
$67.00
â–²(10.54% Upside)
Equity Lifestyle (ELS) presents a solid financial performance with strong profitability and growth metrics, which is the most significant factor in its score. The earnings call supports this with positive guidance and strategic investments. However, technical analysis and valuation present some concerns, with mixed signals and a relatively high P/E ratio. The absence of notable corporate events means the focus remains on financial and operational performance.
Positive Factors
Revenue Growth
Consistent growth in FFO and NOI indicates strong operational performance, reflecting effective management and strategic positioning in the market.
High Occupancy Rates
High occupancy rates in the manufactured housing portfolio suggest stable revenue streams and reduced turnover, enhancing long-term financial stability.
Strategic Investments
Strategic investments in key markets support future growth and strengthen the company's competitive position in high-demand regions.
Negative Factors
Challenges in RV and Marina Segments
Challenges in RV and marina segments could lead to revenue volatility, affecting overall financial performance and requiring strategic adjustments.
Seasonal and Transient Revenue Decline
Declines in seasonal and transient revenue highlight potential vulnerabilities in the business model, impacting cash flow predictability.
Impact of Canadian Travel Patterns
Changes in Canadian travel patterns could affect seasonal demand in key markets, posing a risk to revenue stability and growth.
Equity Lifestyle (ELS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.30B
Dividend Yield3.27%
Average Volume (3M)1.60M
Price to Earnings (P/E)32.9
Beta (1Y)0.10
Revenue Growth-0.03%
EPS Growth1.00%
CountryUS
Employees3,800
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.42
Shares Outstanding193,789,750
10 Day Avg. Volume1,656,653
30 Day Avg. Volume1,603,688
Financial Highlights & Ratios
PEG Ratio3.00
Price to Book (P/B)7.13
Price to Sales (P/S)8.13
P/FCF Ratio34.91
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue10.39
Enterprise Value/Gross Profit21.33
Enterprise Value/Ebitda22.99
Forecast
1Y Price Target
$67.65Price Target Upside11.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Equity Lifestyle Business Overview & Revenue Model
Company DescriptionWe 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.
How the Company Makes MoneyEquity Lifestyle Properties generates revenue through multiple key streams, primarily from the leasing of land in its manufactured home communities and RV parks. The company charges monthly lot rents to residents, which constitute the bulk of its revenue. Additionally, ELS earns income from the sale of homes situated in its communities, as well as from rental agreements for transient RV sites. The company may also benefit from ancillary services such as utilities, storage, and amenity fees. Significant partnerships with home manufacturers and service providers can enhance its revenue potential, while the growth in demand for affordable housing and recreational living contributes positively to its earnings.
Equity Lifestyle Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong financial performance and strategic investments contributing to growth and stability. However, challenges remain in the RV and marina segments, and there are concerns about seasonal and transient revenue declines.Q2-2025 Updates
Positive Updates
Growth in Normalized FFO and NOI
Year-to-date normalized FFO per share growth of 5.7%, with NOI increasing 5% compared to last year.
High Occupancy Rates
MH portfolio occupancy exceeds 94%, with 97% owner-occupied units, contributing to reduced turnover and increased length of stay.
Recognition for RV Resorts
55 RV resorts and campgrounds received the 2025 TripAdvisor Travelers' Choice Award.
Strategic Investments in Key Markets
Continued investment in Florida, California, and Arizona, with notable sales and development of new sites.
Stable Financial Position
Strong balance sheet with no secured debt maturing before 2028, debt-to-EBITDAR of 4.5x, and interest coverage at 5.6x.
Negative Updates
Challenges in RV and Marina Segments
Annual RV and marina revenue guidance reduced due to higher turnover and storm damage impacting some properties.
Seasonal and Transient Revenue Decline
Core portfolio seasonal rent decreased 5.6% and transient decreased 8.6% year-to-date.
Impact of Canadian Travel Patterns
Lower Canadian early bird reservation rates impacting Sunbelt seasonal demand.
Company Guidance
During Equity LifeStyle Properties' Second Quarter 2025 earnings call, CEO Marguerite Nader highlighted key financial metrics, including a 5% increase in NOI year-to-date and a 5.7% growth in normalized FFO per share. The manufactured housing (MH) and recreational vehicle (RV) portfolios remain strong, with MH occupancy over 94% and RV annual revenue up 3.9% year-to-date. The company's MH portfolio, catering largely to seniors, contributes 60% of total revenue, with 97% homeowner occupancy. The RV portfolio saw 70% of annual revenue from Sunbelt locations, with strong seasonal demand. Despite broader market uncertainties, the company's core strengths and strategic investments in new home inventory in key markets like Florida, California, and Arizona bolster long-term stability. Second quarter normalized FFO was $0.69 per share, aligning with guidance, while full-year guidance projects a midpoint normalized FFO of $3.06 per share, marking a 4.9% growth from 2024.Equity Lifestyle Financial Statement Overview
Summary
Equity Lifestyle (ELS) shows strong financial performance with robust revenue growth and high profitability margins. The balance sheet is stable despite high leverage typical for REITs. However, cash flow reporting issues present some concerns, limiting the analysis of current cash generation capabilities.Income Statement
Equity Lifestyle (ELS) has demonstrated robust revenue growth with the latest annual revenue increasing to $1.53 billion, showing strong growth from the previous year. The company's gross profit margin stands at 63.2%, indicating efficient cost management. The net profit margin improved to 25.2%, reflecting enhanced profitability. The EBIT margin is impressive at 59.2%, and the EBITDA margin is 38.3%, highlighting strong operational performance. Overall, ELS shows solid growth and profitability metrics indicative of a well-managed company in the REIT sector.85
Very Positive
Balance Sheet
ELS has a debt-to-equity ratio of 1.84, indicating significant leverage but within acceptable limits for a REIT. The return on equity (ROE) is strong at 22.1%, showcasing efficient use of equity to generate profits. The equity ratio stands at 30.8%, suggesting a stable capital structure with a reasonable level of assets financed by equity. Despite the high leverage, ELS maintains a solid equity base, supporting its financial stability.78
Positive
Cash Flow
The cash flow analysis shows a challenge, as the operating cash flow is reported as zero in the latest period, possibly due to reporting changes or adjustments. The previous year's free cash flow was positive, demonstrating the ability to generate cash. However, the lack of current cash flow data limits the analysis. The cash flow to net income ratios from previous years indicate moderate cash conversion efficiency.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.51B | 1.43B | 1.40B | 1.37B | 1.25B | 1.11B |
| Gross Profit | 734.35M | 708.01M | 672.53M | 644.56M | 596.28M | 569.54M |
| EBITDA | 681.29M | 731.57M | 660.63M | 622.44M | 576.15M | 496.55M |
| Net Income | 370.88M | 367.01M | 314.21M | 284.63M | 262.48M | 228.28M |
Balance Sheet | ||||||
| Total Assets | 5.64B | 5.65B | 5.61B | 5.49B | 5.31B | 4.42B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 5.58M | 4.24M | 2.65M | 94.10M | 24.06M |
| Total Debt | 3.09B | 3.20B | 3.52B | 3.39B | 3.27B | 2.67B |
| Total Liabilities | 3.81B | 3.82B | 4.12B | 3.98B | 3.82B | 3.11B |
| Stockholders Equity | 1.75B | 1.74B | 1.43B | 1.45B | 1.42B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 360.71M | 355.44M | 230.92M | 226.54M | 304.76M | 249.46M |
| Operating Cash Flow | 592.49M | 596.72M | 548.00M | 475.81M | 509.03M | 417.41M |
| Investing Cash Flow | -209.99M | -217.84M | -324.75M | -402.07M | -828.43M | -401.25M |
| Financing Cash Flow | -254.13M | -384.24M | -215.66M | -174.80M | 418.74M | -20.96M |
Equity Lifestyle Technical Analysis
Negative
60.61
Price Trends
60.70
Negative
61.76
Negative
63.75
Negative
Market Momentum
0.11
Negative
49.12
Neutral
36.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELS, the sentiment is Negative. The current price of 60.61 is above the 20-day moving average (MA) of 60.57, below the 50-day MA of 60.70, and below the 200-day MA of 63.75, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELS.
Equity Lifestyle Risk Analysis
Equity Lifestyle disclosed 52 risk factors in its most recent earnings report. Equity Lifestyle reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equity Lifestyle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 16.08B | 12.56 | 17.48% | 6.12% | -14.17% | 1097.53% | |
74 Outperform | 12.34B | 30.02 | 5.95% | 3.49% | 7.19% | 15.70% | |
69 Neutral | $12.30B | 32.91 | 23.16% | 3.27% | -0.03% | 1.00% | |
68 Neutral | 24.68B | 24.78 | 9.19% | 4.23% | 4.49% | 5.87% | |
68 Neutral | 12.36B | 97.31 | 3.97% | 4.58% | 2.29% | -4.89% | |
67 Neutral | 15.07B | 74.75 | 3.40% | 3.91% | 0.76% | -60.70% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
ELS
Equity Lifestyle
60.61
-10.79
-15.11%
EQR
Equity Residential
64.63
-9.55
-12.87%
SUI
Sun Communities
128.46
-7.36
-5.42%
UDR
UDR
37.31
-6.98
-15.76%
CPT
Camden Property
106.47
-15.84
-12.95%
AMH
American Homes
33.28
-5.26
-13.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.