Equity Lifestyle Properties (NYSE:ELS) executives highlighted steady operating results in 2025 and offered initial expectations for continued growth in 2026, while acknowledging ongoing variability in the company’s seasonal and transient RV business.
2025 results: NOI and FFO growth driven by core operations
CEO Marguerite Nader said the company “continued our record of strong core operations and FFO growth,” reporting full-year net operating income (NOI) growth of 4.8% and a 5% increase in normalized funds from operations (FFO) per share.
Seavey said full-year core community-based rental income increased 5.5% versus 2024, attributing the increase primarily to rate increases on renewals and market rents on new residents after turnover. Core utility and other income increased 3.4% for the year, and the company’s utility recovery rate rose to 48.7%, up 220 basis points from 2024.
On expenses, Seavey said full-year core property operating expenses increased 1% compared to 2024. He attributed the below-CPI expense growth to payroll management at RV properties, the 2025 insurance renewal, and reduced membership sales and marketing expenses. Property management and corporate expenses increased 1% for the full year.
Portfolio commentary: manufactured housing and long-term RV demand
President and COO Patrick Waite said the company’s manufactured housing (MH) and long-term RV revenue streams totaled more than $1 billion in 2025, and that the combined revenue compound annual growth rate over the past five years was 5.9%.
Waite outlined geographic exposure in MH, noting about half of MH revenue comes from Florida, with another 20% from California and Arizona. He said the company has sold 3,800 new homes over the last five years, which he said improved the “quality of occupancy.” In Florida specifically, Waite said the company sold nearly 2,000 homes over that period and reduced the floor rental load to 2.5% of occupied sites.
He also pointed to demand drivers tied to demographics, citing 70 million baby boomers and 10,000 baby boomers turning 65 each day, with Gen X and millennials behind them. Waite said these cohorts seek “great value, active lifestyles, and social engagement,” aligning with ELS’s communities.
In the annual RV business, Waite said long-term stays and low turnover create a stable revenue stream, with annual customers generally staying around 10 years. He said average RV annual rate growth was more than 6% over the last five years, and that the company added more than 500 annual customers over the last two quarters, with earlier 2025 attrition appearing to have subsided.
2026 outlook: guidance and dividend increase
Management issued initial 2026 guidance calling for normalized FFO of $3.12 to $3.22 per share, with a midpoint of $3.17. Seavey said the company projects core property operating income growth of 5.6% at the midpoint, and expects non-core properties to generate between $4.6 million and $8.6 million of NOI during 2026, compared with $10.2 million in 2025. He later said the difference is primarily timing of insurance proceeds and the recovery of storm-affected properties.
Within the core portfolio, guidance assumes the following full-year growth rate ranges:
- Core revenues: 4.1% to 5.1%
- Core expenses: 2.7% to 3.7%
- Core NOI: 5.1% to 6.1%
The company expects core MH rent growth of 5.1% to 6.1% and combined RV and marina rent growth of 2.4% to 3.4%, including expected 5.2% growth in RV and marina annuals at the midpoint.
For the first quarter, Seavey guided normalized FFO per share of $0.81 to $0.87, or about 26% of full-year normalized FFO per share, with projected first-quarter core property operating income growth of 4.5% to 5.1%.
Nader also announced a dividend increase. The board approved an annual dividend rate of $2.17 per share, up 5.3%. Nader said the decision was driven by stable cash flow, a solid balance sheet, and strong underlying business trends, and that the company expects about $100 million of discretionary capital in 2026 after dividends, recurring capital expenditures, and principal payments.
Seasonal and transient RV: weather-driven volatility and holiday timing
Analysts focused questions on the seasonal and transient RV segment, which Seavey said has a short booking window and is heavily influenced by weather forecasts. He noted that ELS earns about 50% of anticipated full-year seasonal rent in the first quarter and nearly 20% of transient rent, with the majority of remaining transient rent earned later in the year.
Seavey said the company’s first-quarter assumptions imply the rate on seasonal and transient rent expected to be earned in the quarter is down about 13%, while the remainder of 2026 assumes approximately 2% growth in those revenue streams combined. Waite said the implied growth from the second through fourth quarters represents about $1.3 million and cited positioning around major holidays, including Juneteenth falling on a Friday and the Fourth of July on a Saturday, as well as early booking pace being ahead of last year.
When asked about expense growth stepping up in 2026, Seavey said guidance includes assumptions for higher staffing levels to match revenue expectations and higher utility expense, while noting that the company is “quite pleased” it did not have adverse claims experience in 2025 and that there are indications the insurance market is softening. He said ELS is not disclosing its insurance renewal assumption and expects to provide an update after completing the renewal process.
Balance sheet positioning and operational updates
Seavey said the balance sheet is positioned to support capital allocation options, noting no secured debt maturities before 2028 and a weighted average debt maturity of 7.5 years. He said debt to EBITDARE was 4.5 times and interest coverage was 5.7 times. The company has access to $1.2 billion of capital through its line of credit and ATM programs.
Waite addressed storm-related impacts on the marina business, saying three marinas were taken offline and that repairs have faced permitting and construction delays. He said the company expects them to start coming back online in the latter half of 2026, with completion extending into 2027.
On acquisition opportunities, Waite said transaction activity remains constrained, and management is focused on internal growth, operations, and expansions while maintaining balance sheet flexibility in case opportunities emerge. He also reiterated the company’s preference for acquiring communities rather than buying single-site homes, emphasizing the importance of the community aspect to ELS’s model.
In MH occupancy, Waite said a small decline in occupied sites during the quarter was driven by depleted home inventory being replenished and the normal mix of move-ins and move-outs. He said occupancy percentage can fluctuate as expansion sites are added to the denominator, which was part of the reason for providing new disclosure on beginning- and end-of-quarter occupied sites.
Management also discussed the Thousand Trails membership business. Waite said the system has about 80 properties, about 24,000 sites, and 108,000 members, and that one line item reflecting subscriptions and dues products grew more than 5% for the year. He said membership count declines reflect attrition among legacy members paying lower dues, with new members coming in at higher dues levels.
About Equity Lifestyle Properties (NYSE:ELS)
Equity Lifestyle Properties, Inc (NYSE: ELS) is a publicly traded real estate investment trust specializing in the acquisition, development, ownership and operation of manufactured home communities and recreational vehicle resorts. The company’s portfolio includes more than 450 properties across the United States and Canada, serving over 200,000 residents and visitors. ELS organizes its operations into two primary segments: manufactured housing communities, which provide long-term housing solutions, and upscale RV and seasonal resorts designed for leisure travelers and seasonal patrons.
In its manufactured home division, ELS offers home-site leases combined with community amenities such as landscaped common areas, clubhouses, swimming pools and organized resident events.
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