Equity LifeStyle Properties third-quarter normalized FFO rises 4.6% to 79 cents per share

Equity LifeStyle Properties, Inc. (ELS) said Tuesday in a regulatory filing that third-quarter normalized funds from operations rose 4.6% from a year earlier to 79 cents per share, while net income per share fell to 45 cents.

The Chicago-based real estate investment trust released the figures in a news release attached to the filing. Per-share results are reported on a fully diluted basis.

FFO, or funds from operations, is a standard measure of performance for real estate investment trusts that excludes property sale gains, depreciation and impairment charges. Normalized FFO goes further, removing items such as early debt extinguishment costs and deferred tax valuation allowances.

Here's how the company did:

• Net income per share: 45 cents vs. 50 cents a year earlier
• FFO per share: 72 cents vs. 77 cents a year earlier
• Normalized FFO per share: 79 cents vs. 75 cents a year earlier
• Total revenues: $409.9 million vs. $393.3 million a year earlier

Net income available for common stockholders was $86.4 million, down from $97.1 million a year earlier. Net income per share includes a $12.1 million deferred tax valuation allowance recorded during the quarter. The company excluded that charge from normalized FFO.

For the first nine months, net income per share was $1.50, compared with $1.49 a year earlier. Normalized FFO per share rose 4.0% to $2.36 from $2.27. Total revenues for the nine months were $1,205.3 million, up from $1,157.5 million.

Core portfolio results

Core properties are those the company owned and operated throughout 2025 and 2026. Core property operating revenues rose 4.4% in the quarter, and core income from property operations, excluding property management, grew 6.7%.

Core property operating expenses, excluding property management, increased 1.3% in the quarter. For the nine months, core revenues rose 4.3%, core expenses rose 2.0% and core income grew 6.0%.

Manufactured home communities

Core manufactured home base rental income rose 5.7% from a year earlier. Average monthly base rent per site was $963, up from $912.

Occupied sites increased by 99 during the quarter, and new and used home sales totaled 244. Average occupancy was 93.8%, compared with 94.3% a year earlier.

For the nine months, core manufactured home base rental income also rose 5.7%, with occupied sites up by 166 and 707 home sales.

RV and marina

Core RV and marina base rental income rose 2.1% in the quarter. Core annual base rental income increased 5.3%, and core annual membership subscriptions rose 8.4%.

Seasonal and transient base rental income fell 5.6% to $30.3 million from $32.2 million.

In aggregate, core RV and marina annual base rental income and annual membership subscriptions increased 5.8% in the quarter. For the nine months, core annual membership subscriptions rose 10.2%.

Full-year 2026 guidance

The company expects fourth-quarter normalized FFO per share of 78 cents to 84 cents. Its full-year 2026 normalized FFO per share range is $3.15 to $3.21, with a midpoint of $3.18, unchanged from prior guidance issued July 22.

The full-year ranges were narrowed to reflect nine-month results, leaving only fourth-quarter results subject to estimate.

Midpoints for core RV and marina base rental income growth moved to 1.2% from 1.6%, and for property operating expense growth to 1.9% from 2.1%. Core manufactured home base rental income and income from property operations midpoints were unchanged at 5.7% and 6.0%.

The midpoints reflect management's estimate of the most likely outcome, and the company said actual results could vary materially.

Preliminary 2027 rent growth

The company's preliminary 2027 Core manufactured home base rent income growth assumption is approximately 5.1%, and its Core RV annual rent income growth assumption is approximately 4.7%.

The company said it expects to send 2027 rent increase notices to about 50% of manufactured home residents by October month-end, and it has set RV annual rates for more than 95% of annual sites. The assumptions exclude contribution from incremental sites that may be occupied in 2027.

Portfolio and conference call

As of Sept. 30, the company owned or had an interest in 453 properties in 35 states and British Columbia, consisting of 173,623 sites.

The company will hold a webcast of its conference call on Wednesday at 11 a.m. Eastern. A replay will be available for two weeks on its investor relations website.