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Equity Lifestyle Properties (ELS)
NYSE:ELS
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Equity Lifestyle
(NYSE:ELS)
68Neutral
Positive Factors
Financial Performance
ELS has generated an impressive ROE/ROIC and has a proven track record of all-season/all-cycle performance due to its high-quality portfolio, predictable customer base, and strong balance sheet.
Insurance Costs
ELS raised SSNOI guidance by +10bps, supported by lower insurance costs.
Negative Factors
Occupancy Rates
Core MH occupancy declined -50bps quarter-over-quarter to 94.4%, largely due to communities impacted by hurricanes.
Seasonal/Transient Revenue
There are concerns on ELS' seasonal/transient revenue streams as continued moderation in demand post-covid is coupled with an increasingly uncertain macro backdrop.
Equity Lifestyle (ELS) vs. S&P 500 (SPY)
Market Cap
$12.77B
Dividend Yield3%
Average Volume (3M)1.75M
Price to Earnings (P/E)34.8
Beta (1Y)0.21
Revenue Growth0.69%
EPS Growth5.67%
CountryUS
Employees3,800
SectorReal Estate
Sector Strength80
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.57
Shares Outstanding191,189,500
10 Day Avg. Volume1,700,207
30 Day Avg. Volume1,748,622
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.30
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit17.21
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$74.13Price Target Upside15.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Equity Lifestyle Business Overview & Revenue Model
Company DescriptionEquity Lifestyle Properties, Inc. (ELS) is a leading real estate investment trust (REIT) that specializes in the ownership and operation of lifestyle-oriented properties. The company primarily focuses on manufactured home communities, recreational vehicle (RV) resorts, and campgrounds across North America. ELS offers a unique blend of housing and vacation options for families, retirees, and vacationers, providing them with high-quality amenities and services in desirable locations.
How the Company Makes MoneyEquity Lifestyle Properties, Inc. generates revenue primarily through the leasing of land in its manufactured home communities and RV resorts. The company earns rental income from residents who lease land for their manufactured homes, as well as from RV owners who pay fees to stay at its resorts and campgrounds. Additional revenue streams include selling membership subscriptions that provide access to a network of campgrounds and offering ancillary services such as utility provision, resort amenities, and maintenance services. ELS's revenue is further supported by strategic acquisitions and partnerships that expand its property portfolio and enhance its service offerings.
Equity Lifestyle Financial Statement Overview
Summary
Equity Lifestyle (ELS) presents a strong financial profile with robust revenue growth and profitability as evidenced by high margins and a strong ROE. The balance sheet reveals high leverage typical for REITs but maintains stability through a solid equity ratio. Cash flow reporting issues cloud the recent picture, but past trends indicate reasonable cash generation capability. Overall, ELS is positioned well in the REIT industry, with strengths in profitability and growth, albeit with some cash flow reporting concerns.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.―
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
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.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.53B | 1.40B | 1.43B | 1.26B | 1.08B | Gross Profit |
| 963.76M | 672.53M | 700.70M | 628.18M | 555.61M | EBIT |
| 903.22M | 470.56M | 407.99M | 383.01M | 350.95M | EBITDA |
| 584.56M | 669.63M | 615.04M | 571.45M | 506.08M | Net Income Common Stockholders |
| 384.82M | 314.21M | 182.26M | 152.98M | 122.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.58M | 4.24M | 2.65M | 123.40M | 24.06M | Total Assets |
| 5.65B | 5.61B | 5.49B | 5.31B | 4.42B | Total Debt |
| 3.20B | 3.52B | 3.39B | 3.27B | 2.67B | Net Debt |
| 3.18B | 3.51B | 3.39B | 3.15B | 2.64B | Total Liabilities |
| 3.82B | 4.12B | 3.98B | 3.82B | 3.11B | Stockholders Equity |
| 1.74B | 1.43B | 1.45B | 1.42B | 1.23B |
| Cash Flow | Free Cash Flow | |||
| 355.44M | 230.92M | 226.54M | 304.76M | 249.46M | Operating Cash Flow |
| 596.72M | 548.00M | 599.34M | 595.05M | 466.54M | Investing Cash Flow |
| -217.84M | -324.75M | -525.59M | -914.46M | -450.38M | Financing Cash Flow |
| 0.00 | -215.66M | -174.80M | 418.74M | -20.96M |
Equity Lifestyle Technical Analysis
Negative
64.34
Price Trends
65.86
Negative
65.85
Negative
67.59
Negative
Market Momentum
-0.33
Negative
47.75
Neutral
56.87
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 64.34 is below the 20-day moving average (MA) of 64.34, below the 50-day MA of 65.86, and below the 200-day MA of 67.59, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 56.87 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.34B | 36.06 | 5.81% | 2.79% | 6.90% | 9.99% | |
75 Outperform | $27.63B | 27.63 | 9.01% | 3.85% | 3.91% | 8.78% | |
69 Neutral | $15.91B | 206.49 | 1.44% | 3.02% | -6.88% | -45.29% | |
69 Neutral | $16.84B | 109.43 | 2.47% | 3.48% | 0.56% | -73.40% | |
68 Neutral | $14.19B | 120.40 | 3.40% | 3.98% | 2.35% | -73.89% | |
68 Neutral | $12.77B | 34.76 | 22.87% | 3.00% | 0.69% | 5.67% | |
60 Neutral | $2.81B | 11.39 | 0.21% | 8508.43% | 6.31% | -14.32% |
* Real Estate Sector Average
Performance Comparison
ELS
Equity Lifestyle
64.34
3.11
5.08%
EQR
Equity Residential
70.56
6.00
9.29%
SUI
Sun Communities
124.62
10.41
9.11%
UDR
UDR
42.72
5.25
14.01%
CPT
Camden Property
118.99
15.85
15.37%
AMH
American Homes
38.79
3.44
9.73%
Equity Lifestyle Earnings Call Summary
Earnings Call Date:Apr 21, 2025
(Q1-2025)
| % Change Since: -0.14%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a generally positive outlook with strong financial performance and stability in the MH and RV segments, supported by a robust balance sheet and successful cost management. However, challenges persist in the form of occupancy loss due to hurricanes and a decline in transient RV revenue. The impact of Canadian RV customer reservations is also a concern.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Equity Lifestyle Properties reported a growth in NOI of 3.8% and a 6.7% increase in normalized FFO per share in Q1 2025. The company maintained its full-year FFO guidance of $3.06 per share.
Stable Occupancy and Demand
The MH portfolio is 94% occupied with 97% of the MH portfolio occupied by homeowners, contributing to long-term stability. The RV segment showed a 4.1% revenue growth in annual revenue for the quarter.
Strong Balance Sheet
Average term to maturity for debt is over eight years, with only 9% of debt maturing through 2027 compared to the REIT average of 30%.
Insurance Cost Reduction
The company successfully renewed its property and casualty insurance program with a premium decrease of approximately 6% year-over-year.
Negative Updates
Impact of Hurricanes on Occupancy
The company lost approximately 170 occupied sites in Q1 and more than 90 in Q4 due to hurricanes, impacting MH occupancy levels.
Transient RV Revenue Decline
Transient RV rent was down 9.1% compared to the first quarter of 2024, with more than half of transient reservations booked within 30 days of arrival.
Canadian RV Customer Concerns
The impact of Canadian RV customers is being monitored, with 10% of RV revenue coming from this group. There is a noted decrease in early reservations from Canadian customers for the next year.
Company Guidance
During Equity Lifestyle Properties' first quarter 2025 earnings call, the company provided various metrics and guidance updates. They reported a 3.8% growth in Net Operating Income (NOI) and a 6.7% increase in normalized Funds From Operations (FFO) per share for the first quarter. The full-year guidance for normalized FFO was maintained at $3.06 per share. The company's manufactured home (MH) portfolio, which accounts for 60% of total revenue, maintained a 94% occupancy rate, with homeowners occupying 97% of the MH portfolio. The RV side experienced a 4.1% revenue growth for annual sites in the quarter. The company also highlighted its strong balance sheet, with an average debt maturity term of over eight years and only 9% of debt coming due by 2027. They mentioned robust engagement through digital channels, with 1.7 million unique visitors to their websites generating 72,000 leads, and a 30% annual increase in social media followers over the past decade. The company's guidance for second quarter 2025 suggests normalized FFO per share between $0.66 and $0.72, with core property operating income growth projected to be between 5.4% and 6%.Equity Lifestyle Corporate Events
Executive/Board ChangesShareholder MeetingsDividends
Equity Lifestyle Approves Key Proposals at Annual Meeting
Neutral
May 2, 2025
On April 29, 2025, Equity Lifestyle held its Annual Meeting where stockholders, representing approximately 92.68% of the outstanding shares, voted on three key proposals. The proposals included electing nine board members, ratifying Ernst & Young LLP as the independent accounting firm for 2025, and approving executive compensation on a non-binding advisory basis, all of which were approved. Additionally, the company declared a second quarter 2025 dividend of $0.515 per common share, to be paid on July 11, 2025.
Spark’s Take on ELS Stock
According to Spark, TipRanks’ AI Analyst, ELS is a Neutral.
Equity Lifestyle (ELS) demonstrates robust financial performance, particularly in revenue growth and profitability, which are major strengths. The technical analysis suggests the stock is currently under downward pressure, indicating potential risks. Valuation metrics show the stock may be overvalued, but the dividend yield offers some investor appeal. The earnings call provided a positive outlook, albeit with some operational challenges. Overall, ELS shows strong fundamentals but faces technical and valuation headwinds.
To see Spark’s full report on ELS stock, click here.
Private Placements and FinancingDividendsBusiness Operations and StrategyFinancial Disclosures
Equity Lifestyle Reports Strong 2024 Financial Performance
Positive
Feb 27, 2025
In 2024, Equity LifeStyle Properties, Inc. reported strong financial performance, with a 5.9% increase in Normalized FFO per share compared to 2023. The company achieved a 6.5% growth in income from property operations, excluding property management, and expanded its portfolio by adding 736 new sites. Additionally, they closed a modification of a $500 million unsecured line of credit and launched an ATM equity offering program worth up to $700 million. The company also released its 2023-24 Sustainability Report, highlighting strategic priorities and initiatives. The Board approved a 7.9% increase in the annual dividend rate for 2025, reflecting confidence in continued growth and stability.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.