One-glance verdict
$32.27 our estimate vs market $59.49
Wall Street consensus: $68.05 (110.9% higher than our fair-value estimate)
84% above our estimate, beyond the bull case
Fundamentals snapshot
ELS · NYQ · Real Estate · REIT - Residential
Current price
$59.49
52-week range
$57.46 - $69.00
Market cap
$11.93B
One-glance verdict
Wall Street consensus: $68.05 (110.9% higher than our fair-value estimate)
84% above our estimate, beyond the bull case
Balance sheet
Net debt $3.28B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Equity LifeStyle Properties (ELS) owns and operates manufactured home communities and RV resorts across the United States and Canada, renting out land sites to residents and guests. The main money they make comes from these rental payments, which are like steady, predictable income (this is called recurring revenue). This steady income is important because it helps the company plan for the future and pay its bills, showing it's a stable business.
Equity LifeStyle Properties, Inc. (ELS) was founded in 1992 as Manufactured Home Communities, Inc., and it went public as a real estate investment trust (REIT) in 1993. [2, 5] Initially, the company focused on manufactured housing communities, which offered stable income from land leases and limited new competition. [2] Over time, ELS expanded its focus beyond just manufactured homes to include recreational vehicle (RV) resorts, membership campgrounds, and marinas, reflecting a broader "lifestyle-oriented" real estate strategy. [2, 4] This expansion led to the company changing its name to Equity LifeStyle Properties to better represent its diverse portfolio. [2] The company's growth has been driven by acquiring high-quality properties in desirable locations, often near retirement and vacation destinations, and by focusing on increasing rental income from its existing properties. [4, 9]
Equity LifeStyle Properties owns and operates a collection of properties that are essentially land leases for people who want a place to live or vacation. [3, 4] Instead of owning the homes or RVs themselves, ELS owns the land and leases out the sites where these homes or recreational vehicles are placed. [3, 4] This business model creates a predictable stream of income from rent, as about 91% of its revenue comes from these stable, annual rental agreements. [3] The company's properties are designed to attract residents and travelers looking for lifestyle-oriented living, often in amenity-rich communities. [4, 9]
This segment is the core of Equity LifeStyle Properties' business, focusing on providing land for manufactured homes. [2, 3, 6] ELS owns the land and leases it to residents who own their manufactured homes, offering a more affordable housing option, often in communities with amenities like clubhouses and recreational facilities. [4, 9] These communities are particularly attractive to retirees and those seeking stable, long-term housing. [4, 11] This segment is a significant contributor to the company's revenue, with a large number of sites dedicated to manufactured homes across the United States. [3, 11]
Equity LifeStyle Properties also operates a substantial network of recreational vehicle (RV) resorts and campgrounds. [2, 3, 5, 6] This segment caters to individuals and families who own RVs and are looking for places to stay, either seasonally or for shorter, transient visits. [3, 4] ELS leases sites within these resorts, providing amenities and a vacation-oriented environment. [4, 9] The company focuses on optimizing revenue from these properties by balancing occupancy rates with rental pricing, especially in popular vacation destinations. [3]
A smaller but important part of Equity LifeStyle Properties' business involves owning and operating marinas. [2, 3] These facilities provide docking and storage for boats, catering to boat owners who need a place to keep their vessels. [5] Like the other segments, ELS leases these slips to customers, generating rental income. [3] The marina segment adds to the company's diverse portfolio of lifestyle-oriented real estate.
In addition to leasing land, Equity LifeStyle Properties also engages in the sale and rental of homes within its communities. [6] This segment involves purchasing, selling, and leasing homes directly to residents. [6] It complements the core land-lease business by providing a more complete housing solution for some customers and generating additional revenue streams for the company.
Management at Equity LifeStyle Properties is focused on several key strategies to drive future growth and profitability. [2] A primary goal is to increase revenue from existing properties by raising rents and optimizing occupancy rates, particularly in their manufactured home communities. [2, 8] They are also looking to expand select properties where feasible, adding more sites or amenities to existing locations. [2] The company aims to improve how it generates income from its RV resorts and campgrounds, especially for shorter-term stays, and to enhance its membership camping offerings. [2] Additionally, ELS is committed to maintaining a strong financial position to pursue strategic acquisitions of new properties that fit their criteria of high-quality, hard-to-replicate locations in supply-constrained markets. [2, 3]
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $68.05 (110.9% higher than our fair-value estimate).
Our most-likely fair value is $32.27 a share — about 45.8% below today's price of $59.49, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net debt $3.3B. Interest coverage 3.4x.
Equity LifeStyle Properties, Inc.'s profit covers its interest bill about 3.4 times over. which is stronger than every peer shown here.
Total debt $3.31B Interest coverage 3.37x This is the baseline the peer rows are being compared against.
Total debt $4.07B Interest coverage 1.97x -41% vs ELS Carries about 1.7x less debt cushion than ELS.
Total debt $791.89M Interest coverage 1.61x -52% vs ELS Carries about 2.1x less debt cushion than ELS.
Total debt $8.59B Interest coverage 2.13x -37% vs ELS Carries about 1.6x less debt cushion than ELS.
Total debt $5.15B Interest coverage 2.51x -26% vs ELS Carries about 1.3x less debt cushion than ELS.
Total debt $5.72B Interest coverage 3.34x -1% vs ELS Has roughly the same debt cushion as ELS.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know