Equity Lifestyle Properties Reports Q3 Beat

Equity Lifestyle Properties (ELS) reported stronger-than-expected Q3 results topping both earnings and revenue estimates.

Markedly, shares of the self-managed real estate investment trust (REIT) have gained 34% over the past year.

Q3 adjusted earnings of $0.38 per share beat analysts’ expectations of $0.35 per share. The company reported earnings of $0.28 per share in the prior-year period.

Markedly, revenues jumped 16.8% year-over-year to $332.9 million, significantly beating analysts’ expectations of $151.6 million. Property operating revenues, excluding deferrals, came in at $308.7 million, up from $272.9 million in the prior-year quarter.

The company reported Q3 Funds from Operations (FFO) of $0.65 per share versus FFO of $0.50 per share in the prior-year period. (See Equity Lifestyle stock charts on TipRanks)

Based on robust Q3 results, the company updated its guidance for Fiscal 2021 and now forecasts net earnings in the range of $1.40 – $1.46 per share. The REIT also forecasts Normalized FFO in the range of $2.47 – $2.53 per share.

For Q4, net earnings are expected to be in the range of $0.32 – $0.38 per share, while Normalized FFO is expected between $0.57 and $0.63 per share.

Following the earnings results, BMO Capital analyst John Kim reiterated a Hold rating on Equity Lifestyle with a price target of $85. This implies that shares are fully valued at current levels.

Kim forecasts the company to report earnings of $0.33 per share for the fourth quarter of 2021.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Equity Lifestyle price target of $87.43 implies 3.3% upside potential from current levels.