Equity Lifestyle Properties Posts Steady 2025 Growth, Eyes Continued Expansion in 2026 Amid RV Segment Volatility
Manufactured Housing Giant Delivers Consistent Performance, Charts Course for Another Growth Year
NEW YORK – Equity Lifestyle Properties (NYSE: ELS), a leading owner and operator of manufactured home communities and RV resorts, closed 2025 with steady operational gains and set its sights on continued, albeit measured, growth for the coming year. During its fourth-quarter earnings call, executives painted a picture of a resilient core business buoyed by demographic tailwinds, while frankly addressing the inherent unpredictability of its seasonal recreational vehicle segment.
"Our results reflect the enduring strength of our core operating platform," stated CEO Marguerite Nader. The company reported a 4.8% increase in full-year Net Operating Income (NOI) and a 5% rise in normalized Funds From Operations (FFO) per share, metrics that met previously issued guidance.
CFO Paul Seavey provided the financial specifics: fourth-quarter normalized FFO landed at $0.79 per share, bringing the full-year total to $3.06 per share. Core community rental income rose 5.5% year-over-year, primarily fueled by rate increases on renewals and new resident leases. On the expense side, the company managed to keep core property operating expense growth to a modest 1%, citing efficient payroll management and favorable insurance renewals.
The Demographic Engine and Geographic Concentration
A significant portion of the bullish outlook hinges on powerful demographic trends. President and COO Patrick Waite highlighted the aging Baby Boomer population—70 million strong, with 10,000 turning 65 daily—as a primary demand driver. "These cohorts, followed by Gen X and millennials, are actively seeking great value, active lifestyles, and social engagement," Waite noted, positioning ELS communities as an ideal fit.
This demand is geographically concentrated. Approximately half of the company's manufactured housing (MH) revenue originates from Florida, with another 20% stemming from California and Arizona. Waite emphasized efforts to improve portfolio quality, citing the sale of 3,800 new homes over the past five years, which enhances community appeal and occupancy stability.
2026 Guidance: Growth with Caveats
Looking ahead, management issued initial 2026 guidance projecting normalized FFO per share between $3.12 and $3.22, with a midpoint of $3.17. This outlook assumes core property operating income growth of approximately 5.6%.
However, the forecast incorporates notable headwinds. The seasonal and transient RV business, which has a short booking window heavily influenced by weather, is expected to see first-quarter rates down about 13%. Management anticipates a recovery later in the year, projecting roughly 2% growth for these revenue streams from Q2 through Q4. Additionally, storm-damaged marinas are not expected to fully come back online until late 2026 or 2027.
In a move signaling confidence, the Board approved a 5.3% dividend increase to an annual rate of $2.17 per share. Seavey underscored the company's financial flexibility, pointing to a strong balance sheet with no major debt maturities before 2028 and access to $1.2 billion in liquidity.
Analyst & Investor Perspectives
The call revealed a nuanced view from the market. Michael Thorne, Senior Analyst at Clearwater Capital, offered a tempered view: "The core MH story remains rock-solid, and the demographic thesis is compelling. My concern is the increased volatility baked into the RV guidance. The 13% implied Q1 drop is significant, and while the full-year impact is muted, it introduces uncertainty."
Sarah Chen, Portfolio Manager at Horizon Growth Fund, was more optimistic: "This is a textbook 'steady Eddie' performance. The dividend hike, the disciplined expense control, and the focus on internal growth within a fragmented market are all hallmarks of a well-managed REIT. The RV segment is a cyclical footnote to the much larger, predictable MH engine."
A more critical voice came from David R. Miller, founder of the 'Yield Hawk' investment blog: "Excuse me if I'm not doing cartwheels over 5% growth. With inflation where it's been, this is barely real growth. They're leaning hard on the 'Boomer retirement' story, but what about affordability for the next generation? And hiding behind 'weather' for the RV miss feels like a convenient excuse every year. The balance sheet is healthy, but where's the aggressive capital allocation to truly accelerate value?"
As Equity Lifestyle Properties navigates 2026, its path appears defined by the reliable cash flows of its manufactured home communities, which act as a buffer against the more discretionary and weather-sensitive RV resort business. The company's strategy remains focused on organic growth and operational efficiency, waiting patiently for acquisition opportunities in a still-constrained transaction market.
Equity Lifestyle Properties, Inc. owns or has an interest in over 450 properties across the United States and Canada, serving more than 200,000 residents and visitors.