Continued Strong Performance
Preliminary 2026 Rent Rate Growth Assumptions
Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) today announced results for the quarter and nine months ended September 30, 2025. All per share results are reported on a fully diluted basis unless otherwise noted.
FINANCIAL RESULTS($ in millions, except per share data) Quarters Ended September 30, 2025 2024 $ Change % Change (1)Net Income per Common Share $ 0.50 $ 0.44 $ 0.06 12.9%Funds from Operations (“FFO”) per Common Share and OP Unit $ 0.77 $ 0.72 $ 0.05 6.8%Normalized Funds from Operations (“Normalized FFO”) per Common Share and OP Unit $ 0.75 $ 0.72 $ 0.03 4.6% Nine Months Ended September 30, 2025 2024 $ Change % Change (1)Net Income per Common Share $ 1.49 $ 1.45 $ 0.04 2.5%FFO per Common Share and OP Unit $ 2.29 $ 2.27 $ 0.02 1.2%Normalized FFO per Common Share and OP Unit $ 2.27 $ 2.16 $ 0.11 5.4%
_____________________1. Calculations prepared using actual results without rounding.
Operations Update
Normalized FFO per Common Share and OP Unit for the quarter ended September 30, 2025 was $0.75, representing a 4.6% increase compared to the same period in 2024, performing at the midpoint of our previous guidance range of $0.72 to $0.78. Normalized FFO for the nine months ended September 30, 2025 was $2.27 per Common Share and OP Unit, representing a 5.4% increase compared to the same period in 2024, performing at the midpoint of our previous guidance for each of the three quarterly periods ended this year. Core property operating revenues increased 3.1%, Core property operating expenses, excluding property management, increased0.5%and Core income from property operations, excluding property management, increased 5.3% for the quarter ended September 30, 2025, each as compared to the same period in 2024. For the nine months ended September 30, 2025, Core property operating revenues increased 3.2%, Core property operating expenses, excluding property management, increased 0.6%and Core income from property operations, excluding property management, increased 5.1%, each as compared to the same period in 2024.
MH
Core MH base rental income for the quarter and nine months ended September 30, 2025 increased 5.5% compared to the same periods in 2024. We sold 114 new homes during the quarter ended September 30, 2025 and 347 new homes during the nine months ended September 30, 2025.
RV and Marina
Core RV and marina base rental income for the quarter ended September 30, 2025 decreased 0.4% compared to the same period in 2024. Core RV and marina annual base rental income increased 3.9% for the quarter ended September 30, 2025 compared to the same period in 2024. During the third quarter 2025, we filled approximately 475 annual sites. Core RV and marina base rental income for the nine months ended September 30, 2025 increased 0.2% compared to the same period in 2024. Core RV and marina annual base rental income increased 3.9% for the nine months ended September 30, 2025 compared to the same period in 2024.
Property Operating Expenses
Core property operating expenses, excluding property management, for the quarter ended September 30, 2025 increased 0.5% compared to the same period in 2024 and were lower compared to the previous guidance. For the nine months ended September 30, 2025, Core property operating expenses, excluding property management, increased 0.6% compared to the same period in 2024.
Balance Sheet Activity
As previously disclosed, in July 2025, we drew the remaining $90.0 million from the $240.0 million unsecured term loan agreement entered into during the second quarter of 2025 and used the proceeds to repay amounts outstanding on our line of credit.
Guidance Update (1)
($ in millions, except per share data) 2025 Fourth Quarter Full YearNet Income per Common Share $0.49 to $0.55 $1.96 to $2.06FFO per Common Share and OP Unit $0.75 to $0.81 $3.03 to $3.13Normalized FFO per Common Share and OP Unit $0.75 to $0.81 $3.01 to $3.11 2024 Actual 2025 Growth RatesCore Portfolio: Fourth Quarter Full Year Fourth Quarter Full YearMH base rental income $ 179.9 $ 709.4 5.2% to 5.8% 5.0% to 6.0%RV and marina base rental income (2) $ 98.9 $ 426.9 0.3% to 0.9% -0.2% to 0.8%Property operating revenues $ 335.8 $ 1,361.8 3.0% to 3.6% 2.7% to 3.7%Property operating expenses, excluding property management $ 133.4 $ 577.6 1.3% to 1.9% 0.4% to 1.4%Income from property operations, excluding property management $ 202.4 $ 784.2 4.1% to 4.7% 4.4% to 5.4%Non-Core Portfolio: 2025 Full YearIncome from property operations, excluding property management $7.2 to $11.2Other Guidance Assumptions: 2025 Full YearProperty management and general administrative $115.1 to $121.1Other income and expenses $26.2 to $32.2Debt assumptions:Weighted average debt outstanding $3,170 to $3,370Interest and related amortization $128.5 to $134.5
Preliminary 2026 Rent Rate Growth Assumptions(1)
— By October month-end, we anticipate sending 2026 rent increase notices to approximately 50% of ourMH residents. The average expected rate increase of these notices is approximately 5.1%.
— We have set RV annual rates for more than 95% of our annual sites. The average rate increase for these annual sites is 5.1%. These increases will take effect at the start of the 2025/26 winter season or the start of the 2026 summer season, as applicable.
______________________1. Fourth quarter and full year 2025 guidance represent management's estimate of a range of possible outcomes. The midpoint of the ranges and the preliminary 2026 annual rent growth assumptions reflect management's estimate of the most likely outcome based on our current view of existing market conditions and assumptions. Actual results could vary materially from management's estimate if any of our assumptions are incorrect. See Forward-Looking Statements in this press release for factors impacting our 2025 and 2026 guidance assumptions. See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions ofFFO and Normalized FFO and a reconciliation of Net income per Common Share – Fully Diluted to each of FFO per Common Share and OP Unit – Fully Diluted and Normalized FFO per Common Share and OP Unit – Fully Diluted.2. Core RV and marina annual revenue represents approximately 80.6% and 73.0% of fourth quarter 2025 and full year 2025 RV and marina base rental income guidance, respectively. Core RV and marina annual revenue fourth quarter 2025 growth rate range is 4.3% to 4.9% and the full year 2025 growth rate range is 3.6% to 4.6%. Fourth quarter 2025 Core RV and marina seasonal and transient revenue assumptions were developed using our current, approximate reservation pacing. Core RV and marina seasonal and transient revenue fourth quarter 2025 growth rate range is -12.8% to -13.8% and the full year 2025 growth rate range is -8.3% to -9.3%. Our July 2025 guidance factored in a Core RV and marina seasonal and transient fourth quarter growth rate range of -1.0% to -2.0%. The change in seasonal and transient revenue guidance in the fourth quarter is primarily attributed to seasonal reservation pace from Canadian customers, which is currently -40%.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of September 30, 2025, we own or have an interest in455 properties in 35 states and British Columbia consisting of 173,341 sites.
For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.
Conference Call
A live audio webcast of our conference call discussing these results will take place tomorrow, Thursday, October23, 2025, at 10:00 a.m. Central Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.
Forward-Looking Statements
In addition to historical information, this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as “anticipate,” “expect,” “believe,” “project,” “estimate,” “guidance,” “intend,” “may be” and “will be” and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include, without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. Forward-looking statements, including our guidance concerning Net Income, FFO and Normalized FFO per share data, and certain growth rates, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement due to a number of factors, which include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment, including the impact of changes in tariffs, as well as costs associated with supply chain disruptions; (ix) changes in debt service and interest rates; (x) our ability to integrate and operate recent acquisitions in accordance with our estimates; (xi) our ability to execute expansion/development opportunities in the face of changes impacting the supply chain or labor markets; (xii) completion of pending transactions in their entirety and on assumed schedule; (xiii) our ability to attract and retain property employees, particularly seasonal employees; (xiv) ongoing legal matters and related fees; (xv) costs to clean up and restore property operations and potential revenue losses following storms or other unplanned events; and (xvi) the potential impact of material weaknesses, if any, in our internal control over financial reporting. For further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the Securities and Exchange Commission, including the “Risk Factors” and “Forward-Looking Statements” sections in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
Supplemental Financial Information
Financial Highlights(1)(2)(In millions, except Common Shares and OP Units outstanding and per share and ratio data, unaudited) As of and for the Quarters Ended Sep 30, June 30, Mar 31, Dec 31, Sep 30, 2025 2025 2025 2024 2024Operating InformationTotal revenues $ 393.3 $ 376.9 $ 387.3 $ 372.3 $ 387.3Consolidated net income $ 100.4 $ 83.5 $ 114.4 $ 100.6 $ 86.9Net income available for Common Stockholders $ 97.1 $ 79.7 $ 109.2 $ 96.0 $ 82.8Adjusted EBITDAre $ 183.3 $ 170.0 $ 197.6 $ 182.8 $ 176.8FFO available for Common Stock and OP Unit holders $ 154.1 $ 138.3 $ 166.7 $ 153.0 $ 140.9Normalized FFO available for Common Stock and OP Unit holders $ 150.5 $ 137.7 $ 166.7 $ 151.2 $ 140.5Funds Available for Distribution (“FAD”) for Common Stock and OP Unit holders $ 124.2 $ 115.2 $ 150.5 $ 122.6 $ 120.7Common Shares and OP Units Outstanding (In thousands) and Per Share DataCommon Shares and OP Units, end of the period 200,278 200,272 200,248 200,160 195,617Weighted average Common Shares and OP Units outstanding – Fully Diluted 200,126 200,095 200,074 200,021 195,510Net income per Common Share – Fully Diluted (3) $ 0.50 $ 0.42 $ 0.57 $ 0.50 $ 0.44FFO per Common Share and OP Unit – Fully Diluted $ 0.77 $ 0.69 $ 0.83 $ 0.76 $ 0.72Normalized FFO per Common Share and OP Unit – Fully Diluted $ 0.75 $ 0.69 $ 0.83 $ 0.76 $ 0.72Dividends per Common Share $ 0.5150 $ 0.5150 $ 0.5150 $ 0.4775 $ 0.4775Balance SheetTotal assets $ 5,747 $ 5,721 $ 5,642 $ 5,646 $ 5,644Total liabilities $ 3,935 $ 3,908 $ 3,809 $ 3,822 $ 4,149Market CapitalizationTotal debt (4) $ 3,302 $ 3,273 $ 3,199 $ 3,230 $ 3,502Total market capitalization (5) $ 15,459 $ 15,624 $ 16,556 $ 16,561 $ 17,457RatiosTotal debt / total market capitalization 21.4% 20.9% 19.3% 19.5% 20.1%Total debt / Adjusted EBITDAre (6) 4.5 4.5 4.4 4.5 5.0Interest coverage (7) 5.8 5.6 5.4 5.2 5.1Fixed charges (8) 5.7 5.5 5.3 5.2 5.0
____________________1. See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of fixed charges, FFO, Normalized FFO, FAD, Income from property operations excluding property management, EBITDAre, Adjusted EBITDAre, and a reconciliation of Consolidated net income to Income from property operations.2. See page 6 for a reconciliation of Net income available for Common Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.3. Net income per Common Share – Fully Diluted is calculated before Income allocated to non-controlling interest – Common OP Units.4. Excludes deferred financing costs, net of approximately $25.1 million as of September 30, 2025.5. See page 14 for the calculation of market capitalization as of September 30, 2025.6. Calculated using trailing twelve months Adjusted EBITDAre.7. Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period.8. Calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.
Consolidated Balance Sheets(In thousands, except share and per share data) September 30, 2025 December 31, 2024 (unaudited)AssetsInvestment in real estate:Land $ 2,088,463 $ 2,088,682Land improvements 4,739,532 4,582,815Buildings and other depreciable property 1,280,579 1,244,193 8,108,574 7,915,690Accumulated depreciation (2,787,438) (2,639,538)Net investment in real estate 5,321,136 5,276,152Cash and restricted cash 39,291 24,576Notes receivable, net 96,846 50,726Investment in unconsolidated joint ventures 87,011 83,772Deferred commission expense 58,530 56,516Other assets, net 144,367 153,910Total Assets $ 5,747,181 $ 5,645,652Liabilities and EquityLiabilities:Mortgage notes payable, net $ 2,794,804 $ 2,928,292Term loans, net 437,250 199,344Unsecured line of credit 45,000 77,000Accounts payable and other liabilities 196,958 159,225Deferred membership revenue 224,877 229,301Accrued interest payable 10,926 10,679Rents and other customer payments received in advance and security deposits 122,470 122,448Distributions payable 103,143 95,577Total Liabilities $ 3,935,428 $ 3,821,866Equity:Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2025 and December 31, 2024; none issued and outstanding – -Common stock, $0.01 par value, 600,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 193,825,482 and 191,056,527 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 1,988 1,962Paid-in capital 1,979,547 1,951,430Distributions in excess of accumulated earnings (225,682) (214,979)Accumulated other comprehensive income/(loss) (2,594) 2,303Total Stockholders' Equity 1,753,259 1,740,716Non-controlling interests – Common OP Units 58,494 83,070Total Equity 1,811,753 1,823,786Total Liabilities and Equity $ 5,747,181 $ 5,645,652
Consolidated Statements of Income(In thousands, unaudited) Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Revenues:Rental income $ 327,437 $ 314,468 $ 967,930 $ 931,854Annual membership subscriptions 17,868 16,714 51,112 49,298Membership upgrade revenue 3,120 4,173 9,292 12,170Other income 15,220 16,440 47,248 48,186Gross revenues from home sales, brokered resales and ancillary services 24,927 30,839 68,648 98,457Interest income 2,770 2,430 7,210 7,018Income from other investments, net 1,972 2,192 6,074 6,860Total revenues 393,314 387,256 1,157,514 1,153,843Expenses:Property operating and maintenance 133,243 129,010 379,654 369,898Real estate taxes 20,585 20,731 64,073 61,617Membership sales and marketing 4,199 6,448 12,192 17,871Property management 20,277 20,165 61,430 59,311Depreciation and amortization 52,313 50,934 155,904 153,386Cost of home sales, brokered resales and ancillary services 17,474 22,051 47,642 71,668Home selling expenses and ancillary operating expenses 7,186 7,336 20,342 20,955General and administrative 8,791 9,274 28,485 30,248Casualty-related charges/(recoveries), net (1) (3,748) 591 (4,072) (20,422)Other expenses (2) 711 1,402 2,530 3,881Early debt retirement – 30 – 30Interest and related amortization 33,659 36,497 96,995 106,077Total expenses 294,690 304,469 865,175 874,520Income before other items 98,624 82,787 292,339 279,323Gain/(Loss) on sale of real estate and impairment, net 31 (1,798) (652) (1,798)Equity in income/(loss) of unconsolidated joint ventures 1,708 5,874 6,562 6,736Consolidated net income 100,363 86,863 298,249 284,261Income allocated to non-controlling interests – Common OP Units (3,233) (4,042) (12,211) (13,230)Redeemable perpetual preferred stock dividends – – (8) (8)Net income available for Common Stockholders $ 97,130 $ 82,821 $ 286,030 $ 271,023
_____________________1. Casualty-related charges/(recoveries), net for the quarter ended September 30, 2025 includes $3.7 million for reimbursement of capital expenditures. Casualty-related charges/(recoveries), net for the nine months ended September 30, 2025 includes debris removal and cleanup costs related to hurricane events of $1.0 million and insurance recovery revenue of $5.1 million, including $4.3 million for reimbursement of capital expenditures.2. Prior period amounts have been reclassified to conform to the current period presentation.
Non-GAAP Financial Measures
This document contains certain Non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these Non-GAAP measures along with GAAP net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. Our definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These Non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of Non-GAAP measures to our financial statements as prepared under GAAP, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 6 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 16-19.
Selected Non-GAAP Financial Measures(1)(In millions, except per share data, unaudited) Quarter Ended September 30, 2025Income from property operations, excluding property management – Core (2) $ 203.8Income from property operations, excluding property management – Non-Core (2) 1.8Property management and general and administrative (29.1)Other income and expenses 7.6Interest and related amortization (33.7)Normalized FFO available for Common Stock and OP Unit holders (3) $ 150.5Insurance proceeds due to catastrophic weather events, net 3.6FFO available for Common Stock and OP Unit holders (3) $ 154.1FFO per Common Share and OP Unit $ 0.77Normalized FFO per Common Share and OP Unit $ 0.75Normalized FFO available for Common Stock and OP Unit holders $ 150.5Non-revenue producing improvements to real estate (26.2)FAD for Common Stock and OP Unit holders (3) $ 124.2Weighted average Common Shares and OP Units – Fully Diluted 200.1
______________________1. See page 6 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.2. See pages 8-9 for details of the Core Income from Property Operations, excluding property management. See page 10 for details of the Non-Core Income from Property Operations, excluding property management.3. Amounts may not foot due to rounding.
Reconciliation of Net Income to Non-GAAP Financial Measures(In thousands, except per share data, unaudited) Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Net income available for Common Stockholders $ 97,130 $ 82,821 $ 286,030 $ 271,023Income allocated to non-controlling interests – Common OP Units 3,233 4,042 12,211 13,230Depreciation and amortization 52,313 50,934 155,904 153,386Depreciation on unconsolidated joint ventures 1,453 1,309 4,250 3,560(Gain)/Loss on sale of real estate and impairment, net (31) 1,798 652 1,798FFO available for Common Stock and OP Unit holders 154,098 140,904 459,047 442,997Deferred income tax benefit – – – (239)Early debt retirement – 30 – 30Transaction/pursuit costs and other – – – 383Insurance proceeds due to catastrophic weather events, net (3,632) (451) (4,225) (21,464)Normalized FFO available for Common Stock and OP Unit holders 150,466 140,483 454,822 421,707Non-revenue producing improvements to real estate (26,231) (19,771) (64,828) (55,814)FAD for Common Stock and OP Unit holders $ 124,235 $ 120,712 $ 389,994 $ 365,893Net income per Common Share – Basic $ 0.50 $ 0.44 $ 1.49 $ 1.45Net income per Common Share – Fully Diluted (1) $ 0.50 $ 0.44 $ 1.49 $ 1.45FFO per Common Share and OP Unit – Basic $ 0.77 $ 0.72 $ 2.29 $ 2.27FFO per Common Share and OP Unit – Fully Diluted $ 0.77 $ 0.72 $ 2.29 $ 2.27Normalized FFO per Common Share and OP Unit – Basic $ 0.75 $ 0.72 $ 2.27 $ 2.16Normalized FFO per Common Share and OP Unit – Fully Diluted $ 0.75 $ 0.72 $ 2.27 $ 2.16Weighted average Common Shares outstanding – Basic 193,004 186,327 191,640 186,311Weighted average Common Shares and OP Units outstanding – Basic 200,069 195,432 200,052 195,416Weighted average Common Shares and OP Units outstanding – Fully Diluted 200,126 195,510 200,098 195,507
____________________1. Net income per Common Share – Fully Diluted is calculated before Income allocated to non-controlling interest – Common OP Units.
Consolidated Income from Property Operations(1)(In millions, except home site and occupancy figures, unaudited) Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024MH base rental income (2) $ 188.2 $ 178.3 $ 559.2 $ 530.1Rental home income (2) 3.6 3.4 10.5 10.3RV and marina base rental income (2) 115.4 113.4 343.1 336.9Annual membership subscriptions 17.9 16.7 51.1 49.3Membership upgrade revenue 3.1 4.2 9.3 12.2Utility and other income (2)(3) 36.9 36.9 107.0 106.4Property operating revenues 365.1 352.9 1,080.2 1,045.2Property operating, maintenance and real estate taxes (2) 155.3 150.8 448.4 435.2Membership sales and marketing 4.2 6.4 12.2 17.9Property operating expenses, excluding property management (1) 159.5 157.2 460.6 453.1Income from property operations, excluding property management (1) $ 205.6 $ 195.7 $ 619.6 $ 592.1Manufactured home site figures and occupancy averages:Total sites 73,219 73,002 73,220 73,006Occupied sites 68,734 69,037 68,767 68,960Occupancy % 93.9% 94.6% 93.9% 94.5%Monthly base rent per site $ 912 $ 861 $ 904 $ 854RV and marina base rental income:Annual $ 81.3 $ 77.5 $ 239.4 $ 229.6Seasonal 6.4 7.4 42.8 44.9Transient 27.7 28.5 60.9 62.4Total RV and marina base rental income $ 115.4 $ 113.4 $ 343.1 $ 336.9
______________________1. Excludes property management expenses.2. MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Statements of Income on page 3. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.3. Includes approximately $0.9 million and $2.1 million of business interruption income from Hurricane Ian during the quarters ended September 30, 2025 and September 30, 2024, respectively, and $4.9 million and $5.9 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Core Income from Property Operations(1)(In millions, except occupancy figures, unaudited) Quarters Ended September 30, Nine Months Ended September 30, 2025 2024 Change (2) 2025 2024 Change (2)MH base rental income $ 188.0 $ 178.1 5.5% $ 558.7 $ 529.6 5.5%Rental home income 3.6 3.4 6.3% 10.5 10.3 2.4%RV and marina base rental income 110.8 111.2 (0.4)% 328.5 327.9 0.2%Annual membership subscriptions 17.7 16.6 6.3% 50.6 49.2 2.9%Membership upgrade revenue 3.1 4.2 (25.3)% 9.2 12.2 (24.1)%Utility and other income 35.6 34.4 3.8% 101.0 96.9 4.2%Property operating revenues 358.8 347.9 3.1% 1,058.5 1,026.1 3.2%Utility expense 44.8 42.5 5.4% 122.4 119.2 2.7%Payroll 31.5 31.6 (0.2)% 89.9 90.2 (0.4)%Repair & maintenance 25.9 25.5 1.8% 76.8 73.0 5.2%Insurance and other (3) 28.4 27.9 2.0% 83.5 83.4 0.1%Real estate taxes 20.2 20.4 (1.2)% 62.4 60.6 3.0%Membership sales and marketing 4.2 6.4 (34.8)% 12.1 17.8 (32.1)%Property operating expenses, excluding property management (1) 155.0 154.3 0.5% 447.1 444.2 0.6%Income from property operations, excluding property management (1) $ 203.8 $ 193.6 5.3% $ 611.4 $ 581.9 5.1%Occupied sites (4) 68,716 69,040
_____________________1. Excludes property management expenses.2. Calculations prepared using actual results without rounding.3. Includes bad debt expense for the periods presented.4. Occupied sites are presented as of the end of the period.
Core Income from Property Operations(continued)(In millions, except home site and occupancy figures, unaudited) Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Core manufactured home site figures and occupancy averages:Total sites 72,804 72,590 72,805 72,592Occupied sites 68,668 68,977 68,703 68,902Occupancy % 94.3% 95.0% 94.4% 94.9%Monthly base rent per site $ 912 $ 861 $ 904 $ 854 Quarters Ended September 30, Nine Months Ended September 30, 2025 2024 Change (1) 2025 2024 Change (1)Core RV and marina base rental income:Annual (2) $ 78.6 $ 75.7 3.9% $ 232.3 $ 223.6 3.9%Seasonal 6.2 7.2 (14.5)% 40.1 43.2 (7.1)%Transient 26.0 28.3 (8.1)% 56.1 61.1 (8.4)%Total Seasonal and Transient $ 32.2 $ 35.5 (9.4)% $ 96.2 $ 104.3 (7.8)%Total RV and marina base rental income $ 110.8 $ 111.2 (0.4)% $ 328.5 $ 327.9 0.2% Quarters Ended September 30, Nine Months Ended September 30, 2025 2024 Change (1) 2025 2024 Change (1)Core utility information:Income $ 21.5 $ 20.0 7.4% $ 58.9 $ 55.6 5.9%Expense 44.8 42.5 5.4% 122.4 119.2 2.7%Expense, net $ 23.3 $ 22.5 3.6% $ 63.5 $ 63.6 (0.2)%Utility recovery rate (3) 48.0% 47.1% 48.1% 46.6%
_____________________1. Calculations prepared using actual results without rounding.2. Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented.3. Calculated by dividing the utility income by utility expense.
Non-Core Income from Property Operations(1)(In millions, unaudited) Quarter Ended Nine Months Ended September 30, 2025 September 30, 2025MH base rental income $ 0.2 $ 0.6RV and marina base rental income 4.6 14.6Annual membership subscriptions 0.2 0.5Utility and other income 1.3 5.9Membership upgrade revenue – 0.1Property operating revenues 6.3 21.7Property operating expenses, excluding property management (1)(2) 4.5 13.4Income from property operations, excluding property management (1) $ 1.8 $ 8.3
______________________1. Excludes property management expenses.2. Includes bad debt expense for the periods presented.
Home Sales and Rental Home Operations(In thousands, except home sale volumes and occupied rentals, unaudited)Home Sales – Select Data Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Total new home sales volume 119 174 353 620New home sales gross revenues $ 9,864 $ 15,500 $ 28,737 $ 55,906Total used home sales volume 129 60 271 173Used home sales gross revenues $ 1,334 $ 883 $ 2,869 $ 2,961Brokered home resales volume 113 135 337 396Brokered home resales gross revenues $ 424 $ 551 $ 1,274 $ 1,772
Rental Homes – Select Data Quarters Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Rental operations revenues (1) $ 9,091 $ 8,515 $ 26,234 $ 26,170Rental home operations expense (2) 1,353 1,387 3,799 4,313Depreciation on rental homes (3) 2,428 2,390 7,551 7,450Occupied rentals: (4)New 1,905 1,795Used 186 217Total occupied rental sites 2,091 2,012
As of September 30, 2025 As of September 30, 2024Cost basis in rental homes: (5) Gross Net of Gross Net of Depreciation DepreciationNew $ 239,937 $ 200,330 $ 220,134 $ 180,787Used 13,622 10,441 11,197 6,972Total rental homes $ 253,559 $ 210,771 $ 231,331 $ 187,759
______________________1. For the quarters ended September 30, 2025 and 2024, approximately $5.5 million and $5.1 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on pages 8-9. The remainder of the rental operations revenue for the quarters ended September 30, 2025 and 2024 is included in Rental home income in the Core Income from Property Operations on pages 8-9.2. Rental home operations expense is included in Property operating, maintenance and real estate taxes in the Consolidated Income from Property Operations on page 7. Rental home operations expense is included in Insurance and other in the Core Income from Property Operations on pages 8-9.3. Depreciation on rental homes in our Core portfolio is presented in Depreciation and amortization in the Consolidated Statements of Income on page 3.4. Includes occupied rental sites as of the end of the period in our Core portfolio.5. Includes both occupied and unoccupied rental homes in our Core portfolio.
Total Sites(Unaudited)Summary of Total Sites as of September 30, 2025 Sites (1)MH sites 73,200RV sites:Annual 34,400Seasonal 11,200Transient 17,800Marina slips 6,900Membership (2) 26,000Joint Ventures (3) 3,900Total (4) 173,300
______________________1. MH sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina sites are leased to customers generally for one to six months. Transient RV and marina sites are leased to customers on a short-term basis.2. Sites primarily utilized by approximately 111,900 members. Includes approximately 6,000 sites rented on an annual basis.3. Joint ventures have approximately 2,100 MH and RV annual sites and 1,800 transient sites.4. Total does not foot due to rounding.
Membership Campgrounds – Select Data Years Ended December 31, Nine Months Ended September 30,Campground and Membership Revenue (1) 2021 2022 2023 2024 2025($ in thousands, unaudited)Annual membership subscriptions $ 58,251 $ 63,215 $ 65,379 $ 65,883 $ 51,112Annual RV base rental income $ 23,127 $ 25,945 $ 27,842 $ 29,282 $ 22,607Seasonal/Transient RV base rental income $ 25,562 $ 24,316 $ 20,996 $ 21,338 $ 16,821Membership upgrade revenue $ 11,191 $ 12,958 $ 14,719 $ 16,433 $ 9,292Utility and other income $ 2,735 $ 2,626 $ 2,544 $ 2,360 $ 1,833Membership CountTotal Memberships (2) 125,149 128,439 121,002 113,553 111,878Paid Membership Origination 23,923 23,237 20,758 19,539 14,325Promotional Membership Origination 26,600 28,178 25,232 23,552 18,760Membership Upgrade Volume (3) 4,863 4,068 3,858 4,086 4,704Campground MetricsMembership Campground Count 81 82 82 82 82Membership Campground RV Site Count 25,100 25,800 26,000 26,000 26,000Annual Site Count (4) 6,320 6,390 6,154 5,902 5,961
______________________1. Beginning in 2025, membership upgrade product offerings include two- to four-year term subscription products with increased annual dues. The revenue associated with these subscription products is recognized as Annual membership subscriptions.2. Members who have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days.3. Upgraded memberships provide enhanced benefits, including but not limited to longer stays, the ability to make earlier reservations, potential discounts on rental units, and potential access to additional properties.4. Sites that have been rented by members for an entire year.
Market Capitalization(In millions, except share and OP Unit data, unaudited)Capital Structure as of September 30, 2025 Total % of Total Total % of Total % of Total Common Common Market Shares/Units Shares/Units CapitalizationSecured Debt $ 2,817 85.3%Unsecured Debt 485 14.7%Total Debt (1) $ 3,302 100.0% 21.4%Common Shares 193,825,482 96.8%OP Units 6,452,705 3.2%Total Common Shares and OP Units 200,278,187 100.0%Common Stock price at September 30, 2025 $ 60.70Fair Value of Common Shares and OP Units $ 12,157 100.0%Total Equity $ 12,157 100.0% 78.6%Total Market Capitalization $ 15,459 100.0%
______________________1. Excludes deferred financing costs, net of approximately $25.1 million.
Debt Maturity ScheduleDebt Maturity Schedule as of September 30, 2025(In thousands, unaudited)Year Outstanding Weighted % of Total Weighted Debt Average Debt Average Interest Rate Years to MaturitySecured Debt2025 – -% -% -2026 – -% -% -2027 – -% -% -2028 192,021 4.19% 5.81% 2.92029 270,928 4.92% 8.20% 3.92030 275,385 2.69% 8.34% 4.52031 235,466 2.45% 7.13% 5.72032 202,000 2.47% 6.12% 6.92033 341,767 4.83% 10.35% 8.02034 203,395 3.45% 6.16% 8.7Thereafter 1,096,213 3.95% 33.20% 12.8Total $ 2,817,175 3.77% 85.31% 8.5Unsecured Term Loans2025 – -% -% -2026 – -% -% -2027 200,000 4.88% 6.06% 1.32028 – -% -% -2029 – -% -% -2030 240,000 4.74% 7.27% 4.7Thereafter – -% -% -Total $ 440,000 4.81% 13.33% 3.2Total Secured and Unsecured $ 3,257,175 3.91% 98.64% 7.8Line of Credit Borrowing (1) 45,000 5.69% 1.36% -Deferred financing costs, net (25,121)Total Debt, Net $ 3,277,054 4.10% (2) 100.00%
_____________________1. The floating interest rate on the line of credit is SOFR plus 0.10% plus 1.25% to 1.65%. During the quarter ended September 30, 2025, the effective interest rate on the line of credit borrowings was 5.69%.2. Reflects effective interest rate for the quarter ended September 30, 2025, including interest associated with the line of credit and amortization of deferred financing costs.
Non-GAAP Financial Measures Definitions and Reconciliations
The following Non-GAAP financial measures definitions do not include adjustments in respect to membership upgrade revenue: (i) FFO; (ii) Normalized FFO; (iii) EBITDAre; (iv) Adjusted EBITDAre; (v) Property operating revenues; (vi) Property operating expenses, excluding property management; and (vii) Income from property operations, excluding property management.
FUNDS FROM OPERATIONS (FFO).We define FFO as net income, computed in accordance with GAAP, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of FFO of unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
We believe FFO, as defined by the Board of Governors of NAREIT, is generally a measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.
NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO).We define Normalized FFO as FFO excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties, defeasance costs, transaction/pursuit costs and other, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.
We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our normal operations. For example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.
INCOME FROM PROPERTY OPERATIONS, EXCLUDING PROPERTY MANAGEMENT.We define Income from property operations, excluding property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, membership sales and marketing expenses, excluding property management expenses. Property management represents the expenses associated with indirect costs such as off-site payroll and certain administrative and professional expenses. We believe exclusion of property management expenses is helpful to investors and analysts as a measure of the operating results of our properties, excluding items that are not directly related to the operation of the properties. For comparative purposes, we present bad debt expense within Property operating, maintenance and real estate taxes in the current and prior periods. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our properties.
The following table reconciles Net income available for Common Stockholders to Income from property operations:
Quarters Ended Nine Months Ended September 30, September 30,(amounts in thousands) 2025 2024 2025 2024Net income available for Common Stockholders $ 97,130 $ 82,821 $ 286,030 $ 271,023Redeemable perpetual preferred stock dividends – – 8 8Income allocated to non-controlling interests – Common OP Units 3,233 4,042 12,211 13,230Consolidated net income 100,363 86,863 298,249 284,261Equity in income of unconsolidated joint ventures (1,708) (5,874) (6,562) (6,736)(Gain)/Loss on sale of real estate and impairment, net (31) 1,798 652 1,798Gross revenues from home sales, brokered resales and ancillary services (24,927) (30,839) (68,648) (98,457)Interest income (2,770) (2,430) (7,210) (7,018)Income from other investments, net (1,972) (2,192) (6,074) (6,860)Property management 20,277 20,165 61,430 59,311Depreciation and amortization 52,313 50,934 155,904 153,386Cost of home sales, brokered resales and ancillary services 17,474 22,051 47,642 71,668Home selling expenses and ancillary operating expenses 7,186 7,336 20,342 20,955General and administrative 8,791 9,274 28,485 30,248Casualty-related charges/(recoveries), net (1) (3,748) 591 (4,072) (20,422)Other expenses (2) 711 1,402 2,530 3,881Early debt retirement – 30 – 30Interest and related amortization 33,659 36,497 96,995 106,077Income from property operations, excluding property management 205,618 195,606 619,663 592,122Property management (20,277) (20,165) (61,430) (59,311)Income from property operations $ 185,341 $ 175,441 $ 558,233 $ 532,811
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre.We define EBITDAre as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, gains or losses from sales of properties, impairments charges, and adjustments to reflect our share of EBITDAre of unconsolidated joint ventures. We compute EBITDAre in accordance with our interpretation of the standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
We define Adjusted EBITDAre as EBITDAre excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, transaction/pursuit costs and other, and other miscellaneous non-comparable items.
We believe that EBITDAre and Adjusted EBITDAre may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity REIT.
____________________1. Casualty-related charges/(recoveries), net for the quarter ended September 30, 2025 includes $3.7 million for reimbursement of capital expenditures. Casualty-related charges/(recoveries), net for the nine months ended September 30, 2025 includes debris removal and cleanup costs related to hurricane events of $1.0 million and insurance recovery revenue of $5.1 million, including $4.3 million for reimbursement of capital expenditures.2. Prior period amounts have been reclassified to conform to the current period presentation.
The following table reconciles Consolidated net income to EBITDAre and Adjusted EBITDAre:
Quarters Ended Nine Months Ended September 30, September 30,(amounts in thousands) 2025 2024 2025 2024Consolidated net income $ 100,363 $ 86,863 $ 298,249 $ 284,261Interest income (2,770) (2,430) (7,210) (7,018)Real estate depreciation and amortization 52,313 50,934 155,904 153,386Other depreciation and amortization 1,204 1,402 3,658 4,107Interest and related amortization 33,659 36,497 96,995 106,077Income tax benefit (518) – (1,144) (239)(Gain)/Loss on sale of real estate and impairment, net (31) 1,798 652 1,798Adjustments to our share of EBITDAre of unconsolidated joint ventures 2,677 2,113 7,285 6,020EBITDAre 186,897 177,177 554,389 548,392Early debt retirement – 30 – 30Transaction/pursuit costs and other – – – 383Insurance proceeds due to catastrophic weather events, net (3,632) (451) (4,225) (21,464)Adjusted EBITDAre $ 183,265 $ 176,756 $ 550,164 $ 527,341
CORE.The Core properties include properties we owned and operated during all of 2024 and 2025. We believe Core is a measure that is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations.
NON-CORE. The Non-Core properties in 2025 include properties that were not owned and operated during all of 2024 and 2025, including six properties in Florida impacted by Hurricane Ian and two properties in California that were impacted by storm and flooding events. The 2025 guidance reflects Non-Core properties in 2025, which includes properties not owned and operated during all of 2024 and 2025.
NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital expenditures that do not directly result in increased revenue or expense savings and are primarily comprised of common area improvements, furniture and mechanical improvements.
FIXED CHARGES. Fixed charges consist of interest expense, amortization of note premiums and debt issuance costs.
FORWARD-LOOKING NON-GAAP MEASURES.The following table reconciles Net Income per Common Share – Fully Diluted guidance to FFO per Common Share and OP Unit – Fully Diluted guidance and Normalized FFO per Common Share and OP Unit – Fully diluted guidance:
(Unaudited) Fourth Quarter Full Year 2025 2025Net income per Common Share $0.49 to $0.55 $1.96 to $2.06Depreciation and amortization 0.27 1.07Gain on sale of real estate and impairment, net 0.01 -FFO per Common Share and OP Unit – Fully Diluted $0.75 to $0.81 $3.03 to $3.13Other – (0.02)Normalized FFO per Common Share and OP Unit – Fully Diluted $0.75 to $0.81 $3.01 to $3.11
This press release includes certain forward-looking information, including Core and Non-Core Income from property operations, excluding property management, that is not presented in accordance with GAAP. In reliance on the exception in Item 10(e)(1)(i)(B) of Regulation S-K, we do not provide a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP, where we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This includes, for example, (i) scheduled or implemented rate increases on community, resort and marina sites; (ii) scheduled or implemented rate increases in annual payments under membership subscriptions; (iii) occupancy changes; (iv) costs to restore property operations and potential revenue losses following storms or other unplanned events; and (v) other nonrecurring/unplanned income or expense items, which may not be within our control, may vary between periods and cannot be reasonably predicted. These unavailable reconciling items could significantly impact our future financial results.
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SOURCE Equity Lifestyle Properties, Inc.
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