Equity LifeStyle Properties (ELS) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 results exceeded expectations, with strong NOI, net income, and FFO growth, and full-year earnings guidance was raised.

• Net income available for common stockholders rose to $78.3 million for Q2 2024, up 24.5% year-over-year; FFO per share increased 13.5% to $0.69, and Normalized FFO per share rose 2.9% to $0.66.

• Core property operating revenues and income from property operations, excluding property management, increased over both the quarter and six-month periods compared to 2023.

• High occupancy in the MH portfolio (94.9%-95%) and strong generational demand support long-term growth.

• Portfolio expanded to 452 properties with 172,900 sites as of June 30, 2024.

Financial highlights

• Q2 2024 net income per common share rose 24.3% year-over-year to $0.42; six-month net income per share up 29.4% to $1.01.

• Q2 FFO per share increased 13.5% to $0.69; Normalized FFO per share up 2.9% to $0.66.

• NOI increased 6.4% for the first six months of 2024 compared to last year.

• Core MH base rental income grew 6.2% in Q2 2024; average monthly base rent per site increased to $854.

• Total Q2 revenues were $380.0 million, up from $370.0 million in Q2 2023; six-month revenues reached $766.6 million.

Outlook and guidance

• Full year 2024 normalized FFO guidance increased to $2.91 per share at midpoint, representing 5.7% growth over 2023.

• Raised 2024 full-year guidance: net income per share $1.89–$1.99, FFO per share $2.96–$3.06, Normalized FFO per share $2.86–$2.96.

• Third quarter normalized FFO per share expected in the range of $0.69-$0.75.

• Core MH base rental income growth expected at 5.6%-6.6% for full year; RV and marina base rental income growth at 3.3%-4.5%.

• Core property operating revenues projected to grow 4.5%-5.5% for 2024.