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Equity Lifestyle Properties (ELS)
NYSE:ELS
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Equity Lifestyle
(NYSE:ELS)74Outperform
Positive Factors
Dividend Increase
The Board of Directors approved a 7.9% increase on the dividend to $2.06 per share of common stock.
Financial Performance
Core operating expense growth guidance of 2.5% reflects expected savings, which is a positive indicator for financial performance.
Negative Factors
Revenue Growth Concerns
There was outsized weakness in RV and Marina revenue, primarily due to hurricane impacts, with revenue growth falling below guidance.
Equity Lifestyle (ELS) vs. S&P 500 (SPY)
Market Cap
$13.75B
Dividend Yield2.78%
Average Volume (3M)1.56M
Price to Earnings (P/E)35.1
Beta (1Y)0.45
Revenue Growth2.17%
EPS Growth15.94%
CountryUS
Employees4,000
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.89
Shares Outstanding191,142,870
10 Day Avg. Volume1,697,744
30 Day Avg. Volume1,556,379
Financial Highlights & Ratios
PEG Ratio2.20
Price to Book (P/B)N/A
Price to Sales (P/S)8.60
Price to Cash Flow (P/CF)31.20
P/FCF Ratio24.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$74.00Price Target Upside9.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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.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 | ||||
| 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
Positive
67.76
Price Trends
66.49
Positive
67.89
Negative
67.43
Positive
Market Momentum
0.55
Negative
53.17
Neutral
54.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELS, the sentiment is Positive. The current price of 67.76 is above the 20-day moving average (MA) of 67.01, above the 50-day MA of 66.49, and above the 200-day MA of 67.43, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $31.72B | 29.36 | 9.10% | 3.03% | 4.85% | 16.04% | |
78 Outperform | $28.73B | 27.03 | 9.36% | 3.68% | 3.80% | 24.08% | |
74 Outperform | $13.75B | 35.08 | 23.13% | 2.78% | 2.17% | 15.94% | |
71 Outperform | $17.06B | 189.69 | 1.39% | 2.81% | 0.02% | -33.99% | |
65 Neutral | $1.53B | 562.42 | 2.67% | 4.63% | 10.80% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $20.17B | 37.49 | 8.73% | 3.48% | 1.98% | -4.78% |
* Real Estate Sector Average
Performance Comparison
ELS
Equity Lifestyle
67.76
3.75
5.86%
AVB
AvalonBay
218.50
39.49
22.06%
EQR
Equity Residential
71.91
11.37
18.78%
MAA
Mid-America Apartment
166.77
39.46
31.00%
SUI
Sun Communities
131.36
3.17
2.47%
UMH
Umh
18.30
2.92
18.99%
Equity Lifestyle Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -2.25% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance, balance sheet health, and dividend growth, but faced challenges including a decline in seasonal and transient revenue, new home sales, and RV guest attrition.Highlights
Strong Core Operations and FFO Growth
Full year growth in NOI of 6.5% and a 5.9% increase in normalized FFO per share. Over the last 10 years, average core NOI grew 5.3% and normalized FFO grew nearly 8%, outpacing the REIT industry average.
Robust Balance Sheet
Average term to maturity of debt is 9 years with only 9% maturing by 2027 compared to the REIT average of 36%. Debt-to-EBITDAre is 4.5x and interest coverage is 5.2x.
Dividend Growth
Board approved an 8% increase in the annual dividend rate to $2.06 per share. Over the past 10 years, the dividend increased by an average of 11% per year.
Population Growth in Key Markets
Sunbelt locations, including Florida, California, and Arizona, continue to see favorable population growth trends, particularly among those aged 55 plus. S&P Global estimates a 9.4% growth in Florida among this demographic.
Expansion Opportunities
Development of nearly 5,000 MH, RV sites across the portfolio over the last 5 years, with over half in Florida and Arizona. Pipeline of projects with additional 3,000 sites in various stages.
Lowlights
Seasonal and Transient Revenue Decrease
Full year core seasonal rent decreased by 4.7% and transient decreased by 4.3%.
New Home Sales Decline
New home sales for the quarter were down over 30% year-over-year, significantly impacted by disruptions from hurricanes.
Higher Attrition in RV Annual Guests
Higher attrition noted in RV annual guests for 2024, impacting the starting point occupancy for 2025.
Company Guidance
During the Equity LifeStyle Properties fourth quarter and full-year 2024 results call, management provided guidance for 2025, highlighting several key metrics. They anticipate a 5% increase in normalized Funds from Operations (FFO) for the full year, supported by strong property performance and industry conditions. The guidance included core property operating income growth of 4.9% at the midpoint, with a 5.2% to 6.2% increase in manufactured home (MH) rent growth. The annual dividend rate was set at $2.06 per share, an 8% increase, marking the 21st consecutive year of annual dividend growth. For the first quarter of 2025, normalized FFO per share is projected to be between $0.80 to $0.86, representing approximately 27% of the full-year guidance. The company expects its balance sheet to remain strong, with debt-to-EBITDAre at 4.5x and access to $1.2 billion in capital.Equity Lifestyle Corporate Events
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.