Equity LifeStyle Q2 revenue beats estimates on MH base rental growth

Overview

• U.S. manufactured home and RV park REIT's Q2 revenue and net income beat analyst expectations

• Normalized FFO per share rose 7.7% yr/yr in Q2

• Core property operations income grew 6.5% on higher revenues and controlled expenses

Outlook

• Company sees Q3 net income per share of $0.48 to $0.54

• Company expects full-year Normalized FFO per share of $3.13 to $3.23

• Company raises full-year Normalized FFO guidance midpoint to $3.18 per share

Result Drivers

• MH BASE RENTAL INCOME - Core manufactured home base rental income increased 5.8% yr/yr in Q2, contributing to revenue growth

• RV AND MARINA INCOME - Core RV and marina base rental income rose 1.8% yr/yr in Q2, with annual rental income up 5.4%

• EXPENSE CONTROL - Core property operating expenses, excluding property management, increased 2.9% yr/yr in Q2, below revenue growth

Company press release: ID:nPn86MLlQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for Equity LifeStyle Properties Inc is $70.00, about 7.9% above its July 21 closing price of $64.90

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 30 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)