Executive Summary

Q3 delivered steady growth: revenue $393.3M (+1.6% YoY), GAAP EPS $0.50 (+12.9% YoY), and Normalized FFO/share $0.75 (+4.6% YoY), essentially in line with guidance midpoints .
Management kept FY25 Normalized FFO guidance at $3.01–$3.11 (midpoint $3.06) and set Q4 Normalized FFO at $0.75–$0.81 (raised vs July), but lowered Q4 seasonal/transient RV revenue assumptions due to Canadian reservation pace running ~-40% YoY .
2026 pricing set early: average 5.1% rent increases for both MH and RV annual sites, positioning continued revenue growth into next year .
The stock fell ~5% post-print despite beats, reflecting concern over seasonal/transient demand headwinds from Canada and winter pacing commentary .

What Went Well and What Went Wrong

What Went Well
- Core NOI before property management +5.3% YoY in Q3; expenses grew just 0.5% YoY versus guidance, helped by real estate tax savings and strong utility recovery .
- MH fundamentals resilient: Core MH base rent +5.5% YoY; monthly base rent per site up to $912; CEO emphasized strong demographic demand and affordability value proposition (homes ~60% cheaper than site-built) .
- RV annuals solid: core RV/marina annual base rent +3.9% YoY; ~475 annual RV sites filled in the quarter; COO highlighted Sunbelt momentum and operational execution .
What Went Wrong
- Seasonal/transient RV softness: core seasonal -14.5% YoY and transient -8.1% YoY in Q3; guidance now assumes Q4 seasonal/transient -12.8% to -13.8% (vs -1% to -2% in July), driven largely by ~-40% Canadian reservation pace .
- Membership upgrade revenue fell 25.3% YoY in core, reflecting tougher compare and mix; CFO also noted membership expense mix changes with new subscription offerings .
- MH occupancy slightly lower YoY (94.3% vs 95.0%), though management said occupancy increased in the quarter as hurricane impacts faded .

Financial Results

Q3 headline metrics vs prior periods

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$387.3	$376.9	$393.3
GAAP EPS ($)	$0.44	$0.42	$0.50
FFO/share ($)	$0.72	$0.69	$0.77
Normalized FFO/share ($)	$0.72	$0.69	$0.75
Adjusted EBITDAre ($M)	$176.8	$170.0	$183.3

Q3 actual vs S&P Global consensus

Metric	Q3 2025 Actual	Q3 2025 Consensus*	Commentary
Revenue ($M)	393.3	387.3*	Modest beat
GAAP EPS ($)	0.50	0.465*	Beat
FFO/share ($)	0.75 (Normalized)	0.750*	In line

*Values retrieved from S&P Global.

Segment/operations detail (Core portfolio, Q3 YoY)

Metric ($M unless noted)	Q3 2024	Q3 2025	YoY
MH base rental income	178.1	188.0	+5.5%
RV & marina base rental income	111.2	110.8	-0.4%
• Annual	75.7	78.6	+3.9%
• Seasonal	7.2	6.2	-14.5%
• Transient	28.3	26.0	-8.1%
Annual membership subscriptions	16.6	17.7	+6.3%
Membership upgrade revenue	4.2	3.1	-25.3%
Utility & other income	34.4	35.6	+3.8%
Core property operating revenues	347.9	358.8	+3.1%
Core property operating expenses (ex-PM)	154.3	155.0	+0.5%
Income from property ops (ex-PM)	193.6	203.8	+5.3%

KPIs and balance sheet

KPI	Q3 2024	Q2 2025	Q3 2025
MH Occupancy % (Core)	95.0%	94.3%	94.3%
MH Monthly Base Rent ($/site)	861	904	912
Utility recovery rate (Core)	47.1%	48.8%	48.0%
Total Debt / Adjusted EBITDAre (TTM)	5.0x	4.5x	4.5x
Interest coverage (TTM)	5.1x	5.6x	5.8x

Notes: ~475 annual RV sites filled in Q3 (operational momentum) . Insurance proceeds related to catastrophic events were excluded in Normalized FFO (e.g., $(3.632)M adjustment in Q3) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Normalized FFO/share	Q4 2025	$0.72–$0.78	$0.75–$0.81	Raised
Normalized FFO/share	FY 2025	$3.01–$3.11	$3.01–$3.11	Maintained
Core NOI (ex-PM) growth	FY 2025	4.5%–5.5%	4.4%–5.4%	Slightly Lower Range
RV/marina seasonal & transient revenue growth	Q4 2025	-1.0% to -2.0% (July guide)	-12.8% to -13.8%	Lowered materially
RV/marina annual revenue growth	Q4 2025	4.0%–4.6%	4.3%–4.9%	Slightly Higher
Property mgmt & G&A ($M)	FY 2025	$115.8–$121.8	$115.1–$121.1	Slightly Lower Midpoint
Interest & related amort. ($M)	FY 2025	$129.0–$135.0	$128.5–$134.5	Slightly Lower Midpoint
Weighted avg debt outstanding ($B)	FY 2025	$3.17–$3.37	$3.17–$3.37	Maintained
2026 rent rate growth (avg)	2026	N/A	~5.1% MH; ~5.1% RV annual	New disclosure
Dividend	Q4 2025	$0.515/share prior run-rate	$0.515/share declared (payable Jan 9, 2026)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Pricing/2026 rent increases	Ongoing MH +5.5% growth; insurance premium -6.1% renewal; steady RV annual growth	2026 avg +5.1% MH and RV annual; early acceptance looks “run-rate” normal	Stable pricing power
Seasonal/transient RV demand	Seasonal/transient down mid-single digits YTD in 1H25	Lowered Q4 seasonal/transient guidance; Canadian pacing ~-40% drives shortfall	Deteriorated
MH occupancy/expansions	Permitting headwinds; pipeline targets 500–1,000 sites/yr	400–500 sites in 2025; 103-site expansion done; occupancy improving post-storm	Steady execution
Expense control	Flat core expenses in Q2; insurance renewal favorable	Q3 expenses +0.5% YoY; real estate tax savings; cautious on 2026 taxes	Positive, watch taxes
Balance sheet/financing	Entered $240M term loan; repaid 2025 maturities	No secured maturities before 2028; Debt/EBITDAre 4.5x; >$1B liquidity access	Strong, flexible
Regional trends	Sunbelt demand supportive; marina storm repair timing	Florida MH 94% occupancy; marina rebuilds to complete in 2026	Improving as repairs finish
Technology/customer engagement	Digital tools for sales and member subscriptions emphasized	Digital marketing, OTAs to backfill demand; SMS and e-leasing improving efficiency	Enhancing adoption

Management Commentary

Strategic positioning: “We delivered strong normalized FFO growth in line with our expectations of 4.6%… The anticipated [5.1%] rent increases position us to extend our long-standing track record of leading revenue growth.” — CEO Marguerite Nader .
Canadian seasonal/transient pressure: “The unfavorable development of $2.7 million is primarily related to seasonal and mainly the result of the lower reservations from Canadian customers… our current Canadian reservation pace… is down approximately 40%.” — CFO Paul Seavey .
Expense discipline and outlook: “Expense growth for the third quarter was 40 basis points lower than guidance, mainly resulting from savings in real estate tax expense… insurance renewal… was down 6% compared to prior year.” — CFO .
Demand drivers and operations: “We increased annual RV occupancy by 476 sites… Florida MH portfolio reached 94% occupancy… we developed more than 900 sites in Florida over the last five years.” — COO Patrick Waite .

Q&A Highlights

Canadian reservations and guidance: Management quantified the Q4 impact from Canada (~-40% pacing), shifting Q4 seasonal/transient growth to about -13% YoY vs prior -1% to -2%; Canadian weakness concentrated in a handful of properties, with efforts to backfill via U.S. customers and OTAs .
2026 pricing acceptance: Over 95% of RV annual renewal rates are set; early acceptance appears normal; MH notices weighted to Florida and market-based leases, with CPI-linked buckets phased through 2026 .
Expense levers and risk: Payroll savings helped 2025; insurance down 6%; real estate tax increases in 2024 moderated in 2025 trim notices but may remain volatile into 2026 .
Development/marina timing: Three storm-impacted marina properties in rebuild; expected full return in 2026; 103-site MH expansion completed in Florida .

Estimates Context

Revenue and GAAP EPS exceeded S&P Global consensus; Normalized FFO/share was effectively in line (Actual $0.75 vs $0.750*). Q4 2025 Normalized FFO guidance ($0.75–$0.81) suggests a slight step-up vs Q3, but mix risks from seasonal/transient persist .
Given the explicit Q4 seasonal/transient reset and maintained FY25 FFO guidance at midpoint, Street models may trim Q4 revenue and seasonal/transient line items while leaving FY25 FFO near the midpoint and 2026 top-line growth supported by 5.1% rent assumptions .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Defensive growth intact: MH rent +5.5% YoY, core NOI +5.3% YoY, and 2026 rent increases (~5.1%) underpin visibility despite transitory seasonal/transient pressure .
Near-term headwind: Canadian seasonal/transient demand reset drives Q4 revenue mix downshift; watch booking pace into peak Q1 and weather catalysts for late bookings .
Expense control is a buffer: Real estate tax savings and favorable insurance reset aided Q3; 2026 tax path remains a swing factor .
Balance sheet strength: 4.5x Debt/EBITDAre, no secured maturities before 2028, and diversified funding (LOC/ATM) facilitate expansion and opportunistic capital allocation .
Trading setup: Print was broadly in line with estimates but narrative risk around Canada impacted sentiment; shares pulled back ~5%, creating a potential entry point if winter booking momentum improves .
Medium-term thesis: Durable MH pricing, continued RV annual conversion, and pipeline expansions (500–1,000 sites/year target) support steady FFO growth even with variable transient cycles .
Watch items: Q4/Q1 booking cadence (Canada vs U.S. backfill), marina rebuild progress into 2026, and local tax/insurance trends that could alter expense trajectory .

Citations: All company results and guidance reflect ELS’s Q3 2025 8-K/press release and Q3 2025 earnings call . External market reaction sourced as noted.

EQUITY LIFESTYLE PROPERTIES INC (ELS)·Q3 2025 Earnings Summary