Equity LifeStyle Properties raised its full-year 2026 guidance after reporting stronger-than-expected second-quarter results, driven by growth in its manufactured housing business, higher annual RV and marina revenues, and better-than-expected expense control across its portfolio.
The company increased its full-year normalized funds from operations (FFO) outlook to a midpoint of $3.18 per share after reporting second-quarter normalized FFO of $0.74 per share.
According to a press release, Vice Chairman and CEO Marguerite Nader said second-quarter net operating income increased 6.5% from a year earlier, while normalized FFO per share rose 7.7%.
“The strength of our portfolio allows us to raise our full year guidance for normalized FFO per share,” Nader said, adding that the company continues to benefit from long-term demographic trends, including an aging population and demand for its senior-oriented manufactured housing communities.
Manufactured housing, which accounts for about 60% of the company’s total revenue, remained its primary growth driver during the quarter. Nader said occupancy in the manufactured housing core portfolio reached 94% and increased for a second consecutive quarter.
President and COO Patrick Waite said year-to-date occupancy gains were supported by both home sales and rentals.
He said demand remained strong among customers ages 55 and older, particularly in Florida markets including West Palm Beach, Fort Lauderdale, Tampa, St. Pete and the Ocala-Daytona area.
Waite also cited steady demand in California and Arizona, while noting that approximately 40% of new home sales during the quarter came from the Midwest, Northeast and Mid-Atlantic regions.
Responding to an analyst question about returning occupancy to 95%, Waite said the company added about 70 occupied units over the past two quarters and expects additional gains through the remainder of the year.
He said recovery work following previous storm impacts had affected inventory placement but that management remains encouraged by demand in the second half of 2026.
Nader added that more than 50% of the company’s properties have maintained 98% occupancy for several years and said 97% of manufactured housing residents own their homes.
The company’s RV, marina and membership businesses also contributed to quarterly performance, although transient RV demand remained inconsistent. Nader said annual RV and marina revenue increased 4.8% year to date, supported by customer retention across RV sites, park models, resort cottages and other accommodations.
Executive Vice President and CFO Paul Seavey said core RV and marina annual base rental income, representing more than 70% of total RV and marina rental income, increased 5.4% during the second quarter and 4.8% year to date. However, seasonal and transient rental income fell 170 basis points below guidance because of weaker-than-expected transient demand in June.
The company lowered its expectations for overall RV and marina rental income growth while raising its outlook for annual RV and marina rent growth by 10 basis points.
Seavey said the revised forecast reflects current third-quarter reservation trends and assumes fourth-quarter transient rental income will be flat compared with a year earlier