Equity LifeStyle Properties (ELS) Bank of America 2024 Global Real Estate Conference summary

Revenue and financial performance

• 90% of revenue is derived from annual sources, supporting stable cash flows.

• Annualized total return since IPO is 15%, with a ten-year total return of 303%.

• Year-to-date normalized FFO per share growth is around 6%, outperforming the REIT sector and residential peers.

• Core NOI growth at 6% is more than double the sector average, driven by strong revenue and expense control.

• Delinquencies remain extremely low, consistently in the 30-40 basis points range.

Demographic trends and demand drivers

• Baby Boomers, Gen X, and Millennials are sequentially aging into the core customer demographic, supporting a 30-year demand trend.

• Florida, California, and Arizona generate about two-thirds of total revenue, with Florida showing above-average population growth in the 55+ cohort.

• California locations outperform state averages in population trends, especially in high-cost markets.

• Demand is expected to show up primarily in age-restricted manufactured housing (MH) communities.

Marketing, customer acquisition, and property enhancements

• Marketing has shifted from traditional ads to social media platforms like Facebook and Instagram to attract new residents.

• Transient business serves as a paid lead source, converting short-term guests into annual residents.

• Property amenities are updated based on resident feedback, with recent focus on fitness centers, Peloton bikes, and pickleball courts.

• RV offerings are upgraded with improved amenities and services, including electric upgrades.