Equity LifeStyle Properties (NYSE: ELS) reported strong financial results for the third quarter of 2024, demonstrating resilience and continuing growth. The company’s Normalized Funds from Operations (FFO) per share reached $0.72, marking a 4.9% increase compared to the same period in 2023, according to their earnings report.
ELS’s core property operating revenues saw a significant increase of 4.4% year-over-year. Core manufactured homes (MH) base rental income increased by 6.2%, propelled by a 5.8% growth in rates and a 0.4% gain in occupancy. In the RV and marina sector, ELS reported a 1.3% increase in core base rental income for the quarter.
The company’s financial management strategies were highlighted during the quarter. ELS successfully sold approximately 4.5 million shares of common stock at $70.00 per share through its at-the-market (ATM) offering program, raising net proceeds of $314.2 million. These funds were strategically used to repay a $300 million unsecured term loan and terminate associated interest rate swaps.
ELS faced challenges from natural disasters during the quarter. Hurricane Helene, which made landfall on September 26, 2024, resulted in approximately $1.0 million in expenses related to debris removal and cleanup, and a $1.8 million reduction in the carrying value of certain assets.
The impact of Hurricane Milton, which struck on October 9, 2024, is still under assessment. ELS has expressed confidence in its insurance coverage, including business interruption protection, for both events and does not anticipate a significant adverse impact on its overall financial condition.
Looking ahead, ELS has updated its full-year 2024 Normalized FFO guidance to a midpoint of $2.89-$2.95 per share. The company also provided preliminary projected rent rate increases for 2025, projecting average MH rent increases of 5.0% and RV annual rate increases of approximately 5.5%.
ELS’s performance in the third quarter of 2024 demonstrates its ability to navigate challenges while maintaining growth. The company’s diversified portfolio of manufactured home communities, RV resorts, and marinas continues to benefit from favorable demographic trends and increased interest in outdoor lifestyles, positioning ELS well for future growth.