Equity Lifestyle Properties (NYSE:ELS) reported first-quarter 2026 results that management said were consistent with expectations, highlighted by normalized funds from operations (FFO) of $0.84 per share and core portfolio net operating income (NOI) growth of 4.9% year-over-year. The company maintained its full-year 2026 normalized FFO guidance midpoint of $3.17 per share (range $3.12 to $3.22).
Management highlights stable MH occupancy and demographic tailwinds
Vice Chairman and CEO Marguerite Nader said the company “continued our long-term record of strong core operations” and emphasized the stability of its manufactured housing (MH) portfolio, which represents about 60% of total revenue. Nader said MH properties were “currently 94% occupied,” with a resident base that is “97%” homeowners—an attribute she said supports long tenure, predictability, and recurring cash flow.
Operational update: seasonal shift, expansion activity, and marinas
President and COO Patrick Waite said the company is in the midst of its seasonal transition as snowbird customers leave Sun Belt properties and northern locations prepare for summer. He described ELS communities as offering a value proposition versus local housing markets, particularly in Florida and Arizona. In Florida—ELS’ largest MH market at roughly 50% of core MH revenue—Waite said single-family home prices in key metros range from $350,000 to over $500,000, compared with average new home prices of about $100,000 in ELS communities and resales averaging roughly $50,000.
Waite said ELS has expanded in high-demand areas, adding more than 1,100 MH sites in Florida since 2020. In Arizona, he said ELS is selling homes in expansion projects where inventory is selling for “$110,000-$180,000,” and the company has “500 completed expansion sites” to support occupancy growth. In California, he said the portfolio is “99% occupied,” with home sales “typically resales” and prices “in the range of $100,000 and higher.” Waite attributed resident longevity to lifestyle and amenities and said homeowners stay an average of 10 years.
In the RV business, Waite said annual customers are central to stable occupancy and that through April, ELS has seen improvements in attrition trends versus last year. Annual sites account for 75% of core RV revenue, he said. However, Waite noted that annual marina revenues faced year-over-year occupancy headwinds tied to delays in permits and longer construction timelines for storm-related projects. He said ELS expects those projects to be completed “late in 2026 and into 2027,” supporting occupancy gains as the business rebuilds.
Quarterly financial results: NOI growth, membership strength, and lower insurance costs
EVP and CFO Paul Seavey said first-quarter normalized FFO of $0.84 per share was “in line with our guidance,” while core portfolio NOI growth of 4.9% was “slightly ahead” of expectations. Core community-based rental income rose 5.7% year-over-year, which Seavey attributed primarily to rate increases for renewing residents and market rent for new residents.
Occupied sites increased by 54 during the quarter, and quarter-end occupancy was 93.9%. Seavey said the year-over-year occupancy comparison was affected by expansion sites added over the last 12 months; adjusting for expansions, occupancy would have been 94.4%, in line with the prior year.
ELS sold 228 new and used homes during the quarter. Asked later about home sale pricing and volumes, Seavey said quarter activity was impacted by winter weather early in the period, while demand appeared steadier as the quarter progressed. He cautioned against reading too much into quarterly home sale prices due to product mix.
In the RV and marina segment, Seavey said first-quarter core resort and marina-based rental income outperformed the budget by 10 basis points. Annual RV and marina rent grew 4.2% year-over-year, “slightly below expectations,” with marina restoration delays affecting results. Seasonal and transient rent was 70 basis points above guidance, which Seavey attributed to higher-than-expected seasonal rent.
Membership performance was another area of strength. Seavey said the net contribution from ELS’ “total membership business,” after sales and marketing expenses, was $17.6 million, up 13.7% from the prior year, driven primarily by rate increases. The company originated approximately 1,200 upgrade subscriptions in the quarter.
On expenses, Seavey said first-quarter core operating expenses increased 1.8% year-over-year. He also disclosed that ELS renewed property and casualty insurance effective April 1 and achieved an approximately 18% premium decrease year-over-year, with “no change” in coverage. In response to analyst questions, Seavey said the insurance savings were incorporated into guidance, though he declined to provide the company’s initial premium assumption.
Guidance, marina restoration delays, and balance sheet positioning
Seavey reiterated full-year 2026 normalized FFO guidance with a midpoint of $3.17 per share. At the midpoint, ELS projects core property operating income growth of 5.7% (range 5.2% to 6.2%), along with core revenue growth of 4% to 5% and core expense growth of 2.2% to 3.2%.
By segment, full-year guidance assumes MH rent growth of 5.1% to 6.1%, while combined RV and marina rent growth is expected to be 2% to 3%. Seavey said annual RV and marina rent comprises approximately 75% of full-year RV and marina rent, and ELS expects 4.8% growth in annual rental income at the midpoint. However, he said the change in expectations for annuals versus prior guidance was due to the marina portfolio, where slip restoration is taking longer than anticipated.
During the Q&A, Seavey confirmed that the decline in RV and marina annual expectations was attributed to the marina portfolio and validated an analyst’s estimate that the impact was “roughly $1.5 million.” Waite said three marina properties in Florida were affected by the 2024 hurricane season and that delays are “in the neighborhood of 9-12 months,” pushing the expected rebuild in occupancy to late 2026 and into 2027. Nader added there is “upside in 2027” because demand for the slips is high and they are expected to be filled when brought back online.
For the second quarter, ELS guided to normalized FFO per share of $0.69 to $0.75 and core property operating income growth of 4.8% to 5.4%. Seavey said second-quarter MH rent growth is expected to be 5.6% at the midpoint and annual RV and marina rent growth about 5.1% at the midpoint. He also said seasonal and transient RV revenue guidance reflects current reservation pacing, while assumptions for the third and fourth quarters were left unchanged due to limited visibility beyond near-term bookings.
Discussing reservations, Seavey told analysts that roughly 60% of transient revenue comes from bookings made within “7-10 days of arrival.” Nader attributed some seasonal softness in April to weather-driven timing, with guests heading north earlier than expected.
On capital markets, Seavey said ELS’ balance sheet is “insulated from refinance and rate risk,” with floating-rate exposure limited to line-of-credit balances. He reported debt-to-EBITDAre of 4.5x and interest coverage of 5.6x, and said the company has access to approximately $1.2 billion through its line of credit and at-the-market (ATM) programs.
In response to questions about acquisitions, Nader said industry transaction volume is low and “limited” quality assets are for sale, though she noted there may be more opportunities to buy transient RV parks than previously—“not necessarily something we are interested in.” She also said ELS remains focused on growing within the United States and is not pursuing international expansion or new property types beyond MH and RV.
ELS concluded the call by saying it looks forward to updating investors on second-quarter earnings.
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.
