stockrowLatest quarter
Equity LifeStyle Properties reported third-quarter revenue of $409.9 million, below the consensus of $411.2 million, while adjusted earnings per share of $0.79 matched the consensus. Revenue rose from $393.3 million a year earlier, although diluted earnings per share fell to $0.45 from $0.50.
The company’s filing said core manufactured-housing base rental income rose 5.7% year over year, reflecting rate increases and an occupancy gain. Core RV and marina base rental income increased 2.1%: annual rental income grew, but seasonal and transient rental income declined, primarily because of lower occupancy. CFO Paul Seavey said membership dues subscription revenue increased 9.2% in the quarter.
Equity LifeStyle reported a gross margin of 52.1%, compared with 51.3% a year earlier, and an operating margin of 33.3%, compared with 32.9%. The company’s free cash flow rose to $101.1 million from $75.7 million. Seavey said normalized funds from operations, a REIT earnings measure, were $0.79 per share, in line with the company’s guidance.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $409.9 million | $393.3 million | 4.22% |
| Diluted EPS | $0.45 | $0.50 | −10.0% |
| Gross margin | 52.1% | 51.3% | 0.8 percentage points |
| Operating margin | 33.3% | 32.9% | 0.5 percentage points |
| Free cash flow | $101.1 million | $75.7 million | 33.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.79 | $0.79 | In line |
| Revenue | $409.9 million | $411.2 million | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the call, Marguerite Nader said customers were looking for a low-maintenance lifestyle with privacy and opportunities for social connection. She said the company was seeing Gen X customers make choices similar to those of baby boomers, and expected growth across both manufactured housing and RV portfolios in 2027.
Seavey said third-quarter core manufactured-housing base rental income growth included rate growth of 5.6%, while occupied sites increased by 99. He said annual RV and marina rental income rose 5.3%, helped by an increase in occupied annual sites, even as seasonal and transient rents declined. The filing attributed the latter declines primarily to lower occupancy.
Asked about pricing, Patrick Waite said 50% of leases were market-based, 25% were subject to rent control or CPI-based terms, and 25% were long-term Florida agreements. He said the company reviewed competing properties when setting market-based rent increases. On annual RV rents, Waite said the company also consulted property and revenue-management teams and that some moderation followed several years of rate growth.
Waite said the company was trying to move shorter-stay guests into longer-term arrangements: about 14% of annual sales and 7% of new Thousand Trails memberships year to date came from seasonal or transient customers. Nader said membership upgrades offered additional reservations in exchange for higher dues, and that the company had launched online upgrade sales.
On expenses, Seavey said core costs were about $400,000 above guidance in the third quarter, mainly because electric and water use exceeded expectations. He said some water leaks were identified and repaired. Nader said the company was engaging residents to prioritize investments in amenities, infrastructure and common areas.
Asked about the quarter ahead, Seavey said the company adjusted its seasonal and transient expectations to reflect reservation pacing. He also said the 2027 budget process was incomplete and that preliminary rent assumptions excluded potential additional occupied sites and turnover-related rent adjustments.
Guidance
Seavey said the full-year core expense forecast was about $600,000 lower, primarily because preliminary Florida real estate tax notices indicated smaller increases than the company had previously expected. For the fourth quarter, he said Equity LifeStyle adjusted its seasonal and transient rental expectations to reflect current reservation pacing as the winter season approached.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income growth, Core Property Excluding Management Growth | FY2026 | 5.70%–6.30% | — | New |
| Operating income growth, Core Property Excluding Management Growth | Q4 FY2026 | 5.70%–6.30% | — | New |
| Operating expenses growth, Core Property Excluding Management Growth | FY2026 | 1.60%–2.20% | — | New |
| Operating expenses growth, Core Property Excluding Management Growth | Q4 FY2026 | 1.50%–2.10% | — | New |
| Revenue growth, Core Property Operating Revenue Growth | FY2026 | 4.00%–4.60% | — | New |
| Revenue growth, Core Property Operating Revenue Growth | Q4 FY2026 | 4.10%–4.70% | — | New |
| Revenue growth, Core Rv and Marina Base Rental Income Growth | FY2026 | 0.90%–1.50% | — | New |
| Revenue growth, Core Rv and Marina Base Rental Income Growth | Q4 FY2026 | 2.50%–3.10% | — | New |
| Revenue growth, Core Mh Base Rental Income Growth | FY2026 | 5.40%–6.00% | — | New |
| Revenue growth, Core Mh Base Rental Income Growth | Q4 FY2026 | 5.40%–6.00% | — | New |
| EPS | FY2026 | $2.00–$2.06 | — | New |
| EPS | Q4 FY2026 | $0.50–$0.56 | — | New |
| Revenue growth, Core Rv Annual Rent Income Growth | FY2027 | 4.70% | — | New |
| Revenue growth, Core Mh Base Rent Income Growth | FY2027 | 5.10% | — | New |
| Units, Rv Occupied Sites | FY2027 | Equity LifeStyle Properties expects RV occupancy growth in 2027. | — | — |
| Customers, Rv Annual Customer Attrition | FY2027 | Equity LifeStyle Properties expects improved annual RV customer attrition to continue into 2027. | — | — |
| Operating expenses growth, Core | Q4 FY2026 | 1.80% | — | New |
| Revenue growth, Rv and Marina Rent | Q4 FY2026 | 2.80% | — | New |
| Revenue growth, Core Manufactured Housing Rent | Q4 FY2026 | 5.70% | — | New |
| Operating income growth, Core Noi | Q4 FY2026 | 5.70%–6.30% | — | New |
| Revenue growth, Rv and Marina Annual Rent | FY2026 | 5.00% | — | New |
| Revenue growth, Rv and Marina Rent | FY2026 | 0.90%–1.50% | — | New |
| Revenue growth, Core Manufactured Housing Rent | FY2026 | 5.40%–6.00% | — | New |
| Operating income growth, Core Noi | FY2026 | 5.70%–6.30% | — | New |
| Operating expenses growth, Core | FY2026 | 1.60%–2.20% | — | New |
| Revenue growth, Core | FY2026 | 4.00%–4.60% | — | New |
| Operating expenses, Property Management and G and A | FY2026 | $118.9 million–$124.9 million | — | New |
| Operating income, Non Core Noi | FY2026 | $8.3 million–$12.3 million | — | New |
| EPS, Non Gaap Normalized Ffo Per Share | Q4 FY2026 | $0.78–$0.84 | — | New |
| EPS, Non Gaap Normalized Ffo Per Share | FY2026 | $3.15–$3.21 | — | New |
| Revenue, Manufactured Housing | FY2027 | Equity LifeStyle Properties expects its manufactured housing portfolio to continue growing in 2027. | — | — |