# Equity LifeStyle Properties (ELS)

Sector: Manufactured housing & RV REIT

| Field | Value |
|---|---|
| Price | $61.21 |
| Fair value (Analysts) | $78.00 |
| Discount to fair value | 21.5% |
| Fair value uncertainty (Analysts) | Medium |
| Economic moat (Analysts) | None |
| LSEG analyst rating (1 strong buy to 5 strong sell) | 2.11 |
| Data as of | 2026-10-16 |
| Next earnings | 2026-10-20 (confirmed) |

## In short

The market prices Equity LifeStyle for slow RV demand and higher interest rates, and steady growth in home site rents with a recovery in RV rents can close the gap over several years.

## Themes and gap

- Themes: Interest rates (interest-rates), Weak consumer (weak-consumer)
- Gap type: Slow (slow)
- Why: The gap closes only when RV demand grows again and interest rates fall, which can take several years.

## About

Equity LifeStyle Properties (ELS) is a real estate investment trust (REIT) based in Chicago. It owns or has an interest in 453 properties with 173,559 sites, mainly in the United States, at June 30, 2026. It owns manufactured home (MH) communities, where residents own their homes and rent the land, RV resorts and marinas. Many of its properties serve retirees and seasonal visitors. MH base rent is its largest source of income. ELS pays a quarterly dividend of $0.5425 per share, or $2.17 a year.

## Thesis

The market prices ELS for slow RV demand and for higher interest rates. Core RV and marina base rent grew only 0.1% in the first half of 2026, and ELS cut its full-year growth guidance for this income to 1.6% from 2.4% at the midpoint. Rent from short-term RV visitors is weaker than annual rent. Higher interest rates also make REIT dividends less attractive and raise the cost of new debt. For the gap to close, three things must be true. MH base rent must keep growing at about 5% to 6% a year, as it did in the first half of 2026. RV and marina rent must start to grow again. Normalized FFO must reach the 2026 guidance of $3.13 to $3.23 per share and keep growing in 2027. The Q3 2026 report on October 20, 2026 gives the next test. The 2027 guidance in early 2027 is the main test. The gap can close only over several years, as RV demand recovers and interest rates fall. The main reason it may not close is a long period of weak RV demand, together with high interest rates.

## Checkpoints

- Oct 20, 2026: Q3 2026 earnings: RV rent and FFO. Status: Pending. Watch: Normalized FFO of $0.76 to $0.82 per share and RV and marina rent growth inside the 1.4% to 2.0% Q3 guidance pass; results below the guidance or lower full-year guidance fail.
- Jan 2027 (estimate): Full-year 2026 results and 2027 guidance. Status: Pending. Watch: 2027 guidance for MH rent growth near 5% and higher RV and marina rent growth than in 2026 passes; guidance for slower MH growth or lower RV rent fails.

## Balance sheet

- Cash: $36M
- Debt: $3.3B
- Net debt: $3.3B

ELS funds its properties mainly with secured mortgage debt. At June 30, 2026, total debt was $3.34 billion: $2.75 billion of mortgage notes, $438 million of term loans and $128 million drawn on the unsecured line of credit. Cash and restricted cash were $36 million. The company states total debt to adjusted EBITDAre of 4.4 times and an interest coverage ratio of 5.6 times for the 12 months to June 30, 2026. ELS expects interest and related amortization of $134 million to $140 million for 2026.

As of 2026-06-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/895417/000162828026049302/elsex9912q26.htm
- https://www.sec.gov/Archives/edgar/data/895417/000162828026050244/els-20260630.htm

## Recent events

- 2026-07-28: ELS declared a third quarter 2026 dividend of $0.5425 per share, paid on October 9, 2026.
- 2026-07-22: ELS reported Q2 2026 results. Normalized FFO rose 7.7% to $0.74 per share, above the midpoint of its guidance. Core MH base rent rose 5.8%, while core RV and marina base rent rose 1.8%. ELS raised the midpoint of its 2026 normalized FFO guidance to $3.18 per share and cut its RV and marina rent growth guidance to 1.6%.
- 2026-04-30: ELS bought the remaining 20% interests in some RV joint ventures for $4.4 million. As a result, it consolidated seven RV properties and one land parcel.

## Risks

- Medium: RV and marina income depends on travel and leisure spending. Core RV and marina base rent grew only 0.1% in the first half of 2026, and a weak consumer can slow it further.
- Medium: Most debt is mortgage debt, with $2.75 billion of mortgage notes at June 30, 2026. Refinancing at higher interest rates raises interest expense and slows FFO growth.
- Medium: Storms can damage properties and raise insurance costs. ELS records casualty charges and insurance recoveries, such as $7.1 million of insurance recovery revenue in Q2 2026.
- Low: Many MH residents are retirees with fixed incomes. Large rent increases can meet resistance from residents or new rules from local governments.

## Links

- Page: https://picks.kamadorueda.com/company/ELS/
- History of changes: https://picks.kamadorueda.com/company/ELS/history/
- JSON with full history: https://picks.kamadorueda.com/data/company/ELS.json

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