Equity Lifestyle (ELS, Financial) has begun coverage by Morgan Stanley, which has assigned an Equal Weight rating along with a price target of $67.50. The firm expresses optimism regarding the manufactured housing sector, suggesting that ELS warrants a higher valuation multiple. However, the current share price already reflects the anticipated earnings growth, according to an analyst's insights in a recent investor note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Equity Lifestyle Properties Inc (ELS, Financial) is $73.30 with a high estimate of $82.00 and a low estimate of $67.00. The average target implies an upside of 18.40% from the current price of $61.91. More detailed estimate data can be found on the Equity Lifestyle Properties Inc (ELS) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Equity Lifestyle Properties Inc's (ELS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equity Lifestyle Properties Inc (ELS, Financial) in one year is $73.94, suggesting a upside of 19.43% from the current price of $61.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equity Lifestyle Properties Inc (ELS) Summary page.
ELS Key Business Developments
Release Date: April 22, 2025
- Normalized FFO per Share: $0.83 for Q1 2025, in line with guidance.
- NOI Growth: 3.8% increase in Q1 2025.
- Community-Based Rental Income: Increased 5.5% in Q1 2025 compared to Q1 2024.
- Annual Revenue Growth (RV): 4.1% increase in Q1 2025.
- Core Utility and Other Income: Increased 3.9% compared to Q1 2024.
- Core Operating Expenses: Increased 1.5% compared to Q1 2024.
- Debt Maturity: Only 9% of debt maturing through 2027.
- Occupancy Rate (MH Portfolio): 94% occupied.
- Homeowner Occupancy (MH Portfolio): 97% of MH portfolio occupied by homeowners.
- Full Year FFO Guidance: $3.06 per share at midpoint.
- Debt-to-EBITDA Ratio: 4.4 times.
- Interest Coverage Ratio: 5.4 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Equity Lifestyle Properties Inc (ELS, Financial) reported a 6.7% increase in normalized FFO per share for the first quarter of 2025.
- The company maintains a strong balance sheet with an average debt maturity of over eight years and only 9% of debt maturing through 2027.
- ELS's MH portfolio is 94% occupied, with 97% of the MH portfolio occupied by homeowners, providing long-term stability.
- Annual revenue from RV sites grew by 4.1% in the quarter, indicating strong demand for their offerings.
- The company's social media strategy has been effective, with over 2.2 million fans and followers and a 30% annual growth in social media engagement over the past decade.
Negative Points
- The company experienced a loss of approximately 170 occupied sites in Q1 due to hurricanes, impacting MH occupancy.
- Transient RV revenue was down 9.1% compared to the first quarter of 2024, indicating potential challenges in this segment.
- The company revised its MH top-line guidance downward due to hurricane impacts and occupancy headwinds.
- There is a noted decrease in Canadian RV seasonal reservations, which are about 20% lower than in previous years.
- The annual RV revenue growth was slightly below expectations, partly due to a leap year comparison and delays in bringing a marina property back online.
