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ELS

Equity LifeStyle Properties NYSE:ELS Stock Report

Last Price

US$63.93

Market Cap

US$12.5b

7D

-0.8%

1Y

-20.4%

Updated

05 Oct, 2022

Data

Company Financials +
ELS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health1/6
Dividends4/6

ELS Stock Overview

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago.

Equity LifeStyle Properties, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Equity LifeStyle Properties
Historical stock prices
Current Share PriceUS$63.93
52 Week HighUS$88.70
52 Week LowUS$61.63
Beta0.61
1 Month Change-8.61%
3 Month Change-12.56%
1 Year Change-20.38%
3 Year Change-6.90%
5 Year Change46.51%
Change since IPO1,726.57%

Recent News & Updates

Sep 05

Equity LifeStyle: Buy This Future Dividend Aristocrat While It's On Sale

Summary Equity LifeStyle is an affordable housing REIT with a mixture of manufactured housing communities and long-term RV parks in its portfolio. The REIT should benefit both from aging demographics and from minimal new development of mobile home communities in the US. The dividend growth streak of 17 years looks highly likely to be extended for another 8 years so that ELS can join the ranks of the Dividend Aristocracy. Thesis: Fair Price For A Wonderful Compounder Equity LifeStyle Properties (ELS) boasts that it owns "the highest quality portfolio of manufactured home ("MH") communities, recreational vehicle ("RV") resorts, campgrounds and marinas in North America." With nearly 450 properties comprising ~170,000 individual sites as well as an enterprise value of ~$16.5 billion, ELS is also one of the largest REITs focused on manufactured housing (or mobile homes), aside from Sun Communities (SUI) at about $25.5 billion in enterprise value. Since 2005, ELS and SUI have put up almost identical total returns, which have dramatically outpaced the total returns offered by the S&P 500 (SPY) and Vanguard Real Estate ETF (VNQ). ELS Total Return Price data by YCharts Year to date, however, ELS has shed some 20% of its value, which causes one to wonder if now is the time to buy. At an estimated normalized FFO per share of $2.73 for 2022, ELS is now trading at a price to FFO of 25.6x. That may sound high, but it is actually low compared to the 30x or higher FFO multiple the blue-chip REIT has traded at in recent years. It is also relatively low considering ELS's excellent track record of sustaining little to no damage during recessions. ELS's dividend yield may be only 2.3%, but the REIT has a 17-year record of growing the dividend annually, and in the last five years that growth rate has averaged 11% per year. From 2006 through 2021, the dividend has grown at an average rate of 22% annually! Even after such a long streak of high dividend growth, ELS's payout ratio is still only 60%, leaving plenty of room for further dividend hikes in the years to come. That gives me a high degree of confidence that ELS will become a Dividend Aristocrat in 8 years' time. At around $70 per share, ELS makes a great buy-the-dip opportunity for long-term dividend growth investors. Portfolio & Performance Despite being known as a manufactured housing REIT, mobile home communities actually make up a little less than half of ELS's total portfolio. Here's how the portfolio breaks down: RV Parks: 49% MH Communities: 46% Marinas: 5% Most of ELS's residential communities are age-restricted (55+) or otherwise geared toward older adults in retirement. In theory, that positions the portfolio well to benefit from aging demographics in the US. ELS Presentation Moreover, perhaps somewhat surprisingly for the RV parks segment, the vast majority of revenue comes from annual sources such as a lot with a one-year lease at a mobile home community or an RV park. While some of its RV parks are largely geared toward travelers and vacationers, the majority are instead geared toward long-term living arrangements. ELS Presentation Even the marinas tend to have year-long leases. As such, though 11% of the portfolio is exposed to the more volatile travel sector, most of ELS's portfolio is residential in character. That is, even at the RV parks, most of ELS's rental revenue comes from long-term residents rather than short-term vacationers. And since housing is fungible - that is, one form of housing is easily replaceable by another from the resident's perspective - ELS is a beneficiary of the broader housing shortage. ELS Presentation This is true both because the overall cost of living in a manufactured home is so much lower than for a single-family dwelling, but also because mobile home communities are also part of the housing shortage. In other words, developers have underbuilt MH communities just as they have underbuilt single-family homes. ELS Presentation Zoning is a huge reason for this. Local authorities are typically incentivized to zone their areas in a way that maximizes tax revenue via property taxes, but mobile home communities tend to suppress surrounding property values. A Class A industrial or multifamily property would do a much better job of maximizing tax revenue for a local government. It isn't the local authorities' fault. That's just how the incentive structure works. This inherently limited growth in supply gives me confidence that ELS will be able to continue its long track record of steady NOI growth, even though recessions. ELS Presentation Notice in the above image that ELS continued to see operating income growth through the recessions of 2001, 2008, and 2020. ELS never dipped into the negative during those recessionary quarters. Part of my confidence in ELS's continued ability to execute and generate strong shareholder returns is that the same top management that has been with the company for nearly three decades (namely, the CEO, CFO, and COO) remains in charge today. ELS Presentation Company culture trickles down from the top, and it helps me sleep well at night as a shareholder knowing that the same culture that has facilitated strong returns in the last few decades still presides today. Strong Track Record of Performance Speaking of strong returns, we should probably put some numbers to that. From 2006 through 2021, normalized FFO per share grew at a compound annual rate of 9%. And, perhaps more impressively, ELS accomplished this strong and steady NFFO per share growth with significantly below-average equity issuance. Compare the growth of ELS's shares outstanding to that of SUI and fellow manufactured housing REIT UMH Properties (UMH) from 2006 to 2021: ELS Shares Outstanding data by YCharts Since 2012, especially, ELS has barely increased its total share count at all, even while continuing to grow its asset base. So far this year, ELS continued to enjoy strong revenue growth, but NFFO per share growth slowed somewhat in the second quarter. Q2 2022 NFFO/sh Growth 4.9% 1H 2022 NFFO/sh Growth 9.6% The only reason NFFO per share didn't rise further in Q2 was because of rising operating expenses, namely utility, payroll, and repair & maintenance expenses. For the full year of 2022, management has guided for operating expense growth of 5.2% to 6.2%, which is only a touch below the operating revenue growth guidance range of 5.4% to 6.4%. I suspect that a large number of ELS's tenants, many of them living on fixed incomes, would not be able to immediately handle a spike in rent commensurate with the CPI. But as cost-of-living adjustments take effect for pensioners and Social Security recipients, ELS should be able to capture its share of that increase. In the long run, I have great faith in ELS's ability to raise rents at a pace commensurate to or faster than inflation. That is exactly what the REIT's track record has been: ELS Presentation

Jul 27
Here's Why We Think Equity LifeStyle Properties (NYSE:ELS) Is Well Worth Watching

Here's Why We Think Equity LifeStyle Properties (NYSE:ELS) Is Well Worth Watching

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

ELSUS REITsUS Market
7D-0.8%-0.5%1.9%
1Y-20.4%-19.5%-18.8%

Return vs Industry: ELS underperformed the US REITs industry which returned -17.1% over the past year.

Return vs Market: ELS underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is ELS's price volatile compared to industry and market?
ELS volatility
ELS Average Weekly Movement3.2%
REITs Industry Average Movement4.2%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: ELS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ELS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19924,100Marguerite Naderhttps://www.equitylifestyleproperties.com

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of January 25, 2021, we own or have an interest in 423 quality properties in 33 states and British Columbia consisting of 161,229 sites.

Equity LifeStyle Properties, Inc. Fundamentals Summary

How do Equity LifeStyle Properties's earnings and revenue compare to its market cap?
ELS fundamental statistics
Market CapUS$12.50b
Earnings (TTM)US$280.59m
Revenue (TTM)US$1.37b

42.4x

P/E Ratio

8.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELS income statement (TTM)
RevenueUS$1.37b
Cost of RevenueUS$687.59m
Gross ProfitUS$679.15m
Other ExpensesUS$398.56m
EarningsUS$280.59m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin49.69%
Net Profit Margin20.53%
Debt/Equity Ratio214.8%

How did ELS perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

54%

Payout Ratio