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EL

EQUITY LIFESTYLE PROPERTIES INC (ELS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered normalized FFO per share of $0.83 (up 6.7% YoY) at the midpoint of guidance, with Core NOI growth of 3.8% and total revenues of $387.3M; net income per diluted share was $0.57 .
  • Versus consensus, EPS modestly beat (actual $0.571 vs S&P Global consensus $0.551*) while reported total revenues were slightly below consensus ($387.3M vs $392.9M*) .
  • FY25 guidance largely maintained on FFO ($3.01–$3.11), while Core MH and RV/marina growth ranges were trimmed; Q2 2025 normalized FFO guided to $0.66–$0.72, Core NOI growth 5.4%–6.0% .
  • Operational catalysts: insurance premiums renewed down ~6% YoY with no change to deductibles/coverage, tight expense growth (Core opex +1.5%), and stable MH homeowner base (97% homeowners) supporting 94%+ occupancy; near-term headwinds: hurricane-related site loss in Florida, soft seasonal/transient RV demand pacing .

What Went Well and What Went Wrong

What Went Well

  • Core property performance: revenues +2.9% YoY, expenses +1.5% YoY, driving Core NOI +3.8% in Q1 .
  • Insurance cost tailwind: property & casualty renewal decreased ~6.1% YoY, with no changes to deductibles or coverage .
  • MH pricing power and mix: MH base rental income +5.5% YoY (rate +5.7%, occupancy -0.2% primarily storm-related), reinforcing durable demand; management emphasized 97% homeowner occupancy and long average length of stay .

Quoted management remarks:

  • “We continued our long-term record of strong core operations and FFO growth with growth in NOI of 3.8% and a 6.7% increase in normalized FFO per share in the first quarter” .
  • “Our property and casualty insurance…premium decrease of approximately 6%... no change in…deductibles or coverage” .
  • “Homeowners occupy 97% of our MH portfolio creating long-term stability and reducing turnover” .

What Went Wrong

  • Seasonal/transient RV softness: Core seasonal RV -5.3% and transient -9.1% YoY; reservation pacing in select northern markets lagged (e.g., Wisconsin Dells, coastal NJ, Bar Harbor) .
  • Hurricane impacts on occupancy: ~176 MH sites lost in Q1 plus ~90 in Q4; MH occupancy decline concentrated in Florida, with recovery expected over multiple quarters (into 2026) .
  • Membership upgrade revenue down 24.4% YoY; total new home sales volume lower (117 vs 191 YoY) and rental homes occupied dipped (1,918 vs 2,158 YoY) .

Financial Results

Quarterly trend (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Total revenues ($USD Millions)$387.3 $372.3 $387.3
Net income per Common Share - Fully Diluted ($)$0.44 $0.50 $0.57
FFO per Common Share and OP Unit - Fully Diluted ($)$0.72 $0.76 $0.83
Normalized FFO per Common Share and OP Unit - Fully Diluted ($)$0.72 $0.76 $0.83
Adjusted EBITDAre ($USD Millions)$176.8 $182.8 $197.6
Adjusted EBITDAre Margin (%)45.6% 49.1% 51.0%

Notes: Adjusted EBITDAre margin calculated as Adjusted EBITDAre / Total revenues using cited values .

Q1 year-over-year comparison

MetricQ1 2024Q1 2025
Total revenues ($USD Millions)$386.6 $387.3
Net income per Common Share - Fully Diluted ($)$0.59 $0.57
FFO per Common Share and OP Unit - Fully Diluted ($)$0.86 $0.83
Normalized FFO per Common Share and OP Unit - Fully Diluted ($)$0.78 $0.83
Adjusted EBITDAre ($USD Millions)$186.3 $197.6

Segment and operating metrics (Q1 2025 vs Q1 2024)

Segment/MetricQ1 2024Q1 2025YoY
Core MH base rental income ($MM)$174.9 $184.5 +5.5%
Core RV & marina base rental income ($MM)$115.9 $116.1 +0.2%
Annual RV & marina base rental income ($MM)$73.3 $76.3 +4.1%
Seasonal RV & marina base rental income ($MM)$28.3 $26.8 -5.3%
Transient RV & marina base rental income ($MM)$14.3 $13.0 -9.1%
Core property operating revenues ($MM)$345.6 $355.6 +2.9%
Core property operating expenses excl. property mgmt ($MM)$139.5 $141.6 +1.5%
Core income from property ops excl. property mgmt ($MM)$206.1 $214.0 +3.8%
MH occupancy (%)94.9% 94.4% -50 bps
Monthly MH base rent per site ($)$847 $895 +5.7%
Utility recovery rate (%)46.5% 47.6% +110 bps

KPI highlights (Q1 2025)

KPIQ1 2025
New home sales (units)117
Avg sales price – new homes ($)~$81,000
Rental homes occupied (sites)1,918
Non-core NOI contribution ($MM)$4.0
Dividends per Common Share ($)$0.5150

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Income per Common Share ($)FY 2025$1.95–$2.05 $1.97–$2.07 Raised
FFO per Share ($)FY 2025$3.01–$3.11 $3.01–$3.11 Maintained
Normalized FFO per Share ($)FY 2025$3.01–$3.11 $3.01–$3.11 Maintained
Core MH base rental income growth (%)FY 20255.2%–6.2% 4.8%–5.8% Lowered
Core RV & marina base rental income growth (%)FY 20252.7%–3.7% 2.2%–3.2% Lowered
Core property operating revenues growth (%)FY 20253.4%–4.4% 3.2%–4.2% Lowered
Core property operating expenses growth (%)FY 20252.0%–3.0% 1.5%–2.5% Lowered
Core income from property ops excl. mgmt growth (%)FY 20254.4%–5.4% 4.5%–5.5% Raised slightly
Property mgmt & G&A ($MM)FY 2025$120.0–$126.0 $119.0–$125.0 Lowered
Other income & expenses ($MM)FY 2025$29.5–$35.5 $29.0–$35.0 Lowered
Weighted avg debt outstanding ($MM)FY 2025$3,150–$3,350 $3,170–$3,370 Increased
Interest & related amortization ($MM)FY 2025$127.8–$133.8 $129.1–$135.1 Increased
Normalized FFO per Share ($)Q2 2025N/A$0.66–$0.72 New
Annual dividend rate ($/share)2025$1.91 (2024 actual) $2.06 (annualized) Raised

Drivers: trims reflect hurricane-driven occupancy headwinds in MH, slower seasonal/transient RV pacing, and timing effects in insurance/business interruption, partially offset by lower insurance premiums and tight expense control .

Earnings Call Themes & Trends

TopicQ3 2024 (two quarters prior)Q4 2024 (prior quarter)Q1 2025 (current)Trend
Storm impacts & insuranceEarly assessment of Hurricane Milton; noted insurance renewal uncertainty; Florida historically outperforms despite storms Final 2024: casualty recoveries; 58% renewal increase in prior year context; renewal assumption embedded in opex guidance Insurance premiums down ~6% YoY with unchanged deductibles/coverage; modest opex growth Improving insurance cost backdrop
RV demand normalizationTransient/seasonal softness; annual strong; weather variability; pacing reserved 92% Q4 seasonal Annual RV growth +6.5% FY; seasonal/transient down; attrition normalizing post-COVID Annual RV +4.1% in Q1; transient -9.1%; selective northern pacing headwinds (WI Dells, coastal NJ, Bar Harbor) Flat to slightly soft variable RV
MH occupancy & pricing powerMH ~95% occupied; rate notices ~5%; mark-to-market ~13–16% MH rate growth mid-single digits; CPI-linked cohorts discussed; occupancy contribution smaller MH base rent +5.5%; rate +5.7%; occupancy -0.2% from storms; mark-to-market mid-teens (~14%) Strong rates, temporary occupancy drag
Capital allocation & balance sheetATM used to repay $300M term loan; maturity profile improved; flexibility emphasized 8.6-year WAM; access to ~$1.2B liquidity; deleveraging over target; no leverage target ~8.4-year WAM; debt/EBITDAre 4.4x; interest coverage ~5.4x; ~$1B capacity; secured loan terms detailed Sustained flexibility, low refi risk
Marketing/technology engagement100 days of camping campaign; social media impressions record —1.7M unique site visitors, 72k leads; 2.2M social followers; campaigns driving funnel Robust digital demand funnel
Canadian customer exposure—Q1 guide: Canadian demand lag as Sunbelt season starts ~10% RV revenue from Canadian customers; early reservations ~20% below past levels but not affecting FY guidance Watchlist, manageable impact

Management Commentary

  • Strategic stability: “Our MH portfolio comprises approximately 60% of our total revenue and our properties are 94% occupied… Homeowners occupy 97%… creating long-term stability” .
  • Demand & marketing funnel: “Our websites attracted 1.7 million unique visitors and generated 72,000 online leads… over 2.2 million fans and followers” .
  • Expense discipline: “Core operating expenses increased 1.5%… insurance program… premium decrease ~6%… no change in deductibles or coverage” .
  • Guidance context: “2025 full year normalized FFO is $3.06 per share at the midpoint… Core property operating income growth… 4.5% to 5.5%” .
  • Balance sheet: “We have only $87 million scheduled to mature before 2028 and… weighted average maturity… 8.4 years. Our debt-to-EBITDAre is 4.4x and interest coverage is [5.4x]” .

Q&A Highlights

  • MH occupancy trajectory: Hurricanes caused ~176 site loss in Q1 plus ~90 in Q4; re-occupancy to build “over the next couple of years… into 2026” .
  • RV pacing: Transient bookings short-window; second-quarter reservation pacing informed guidance; specific northern markets pacing below last year; seasonal/transient expected to follow pacing rather than aggressive assumptions .
  • Canadian RV exposure: ~10% of RV revenue; early next-year seasonal reservations ~20% lower than historical but limited near-term financial impact .
  • Annual RV YoY mechanics: Q1 annual RV growth slightly below revised range due to leap-year comp (~100–110 bps effect) and one marina delay .
  • Interest expense guide: FY interest & amortization guided higher vs run-rate due to planned property investments; maturities minimal in 2025 [$87M] .

Estimates Context

MetricQ3 2024 Consensus*Q3 2024 ActualQ4 2024 Consensus*Q4 2024 ActualQ1 2025 Consensus*Q1 2025 Actual
EPS ($)0.4400.44 0.4810.50 0.5510.57
Revenue ($USD Millions)397.8387.3 367.9372.3 392.9387.3

Notes: *Values retrieved from S&P Global. EPS consensus/actual and revenue consensus values from S&P Global; actuals from company filings .
Read-through: Q1 EPS beat ($0.02), revenue slight miss ($5.6M); Q4 revenue beat with EPS roughly in line/slight miss; Q3 missed on both revenue and EPS against consensus.

Key Takeaways for Investors

  • MH fundamentals intact: strong rate growth (+5.7%), 97% homeowner mix, modest occupancy headwind localized to Florida storm impact; expect gradual re-occupancy through 2026 .
  • RV mix favors stability: annual revenue +4.1% YoY and ~75% of RV/marina base rents; variable seasonal/transient lines remain sensitive to weather and short booking windows .
  • Cost control is a differentiator: Core opex +1.5% YoY and ~6% lower insurance premium underpin margin resilience (Adj. EBITDAre margin ~51% in Q1) .
  • FY25 FFO maintained: midpoint $3.06; growth ranges refined (MH/RV trimmed), with Q2 normalized FFO $0.66–$0.72 and Core NOI growth 5.4%–6.0% .
  • Balance sheet strength reduces risk: 8.4-year WAM, 4.4x debt/EBITDAre, minimal maturities pre-2028; ~$1B liquidity provides offensive/defensive optionality .
  • Near-term stock drivers: confirmation of RV summer pacing, visible MH re-occupancy progress in Florida, continued insurance cost tailwind, and delivery on Q2 guidance range .
  • Medium-term thesis: durable MH cash flows, disciplined capital allocation with expansions and stable dividend growth ($2.06 annualized), supported by demographic tailwinds and constrained supply .

Values retrieved from S&P Global.