Gains in Occupied Sites Support Continued Strong Performance
Preliminary 2027 Rent Growth Assumptions
CHICAGO, Oct. 20, 2026 /PRNewswire/ -- Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as "we," "us," and "our") today announced results for the quarter and nine months ended September 30, 2026. All per share results are reported on a fully diluted basis unless otherwise noted.
FINANCIAL RESULTS |
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($ in millions, except per share data) |
Quarters Ended September 30, |
||||||
2026 |
2025 |
$ Change |
% Change(1) |
||||
Net Income per Common Share (2) |
$ 0.45 |
$ 0.50 |
$ (0.05) |
(11.1) % |
|||
Funds from Operations ("FFO") per Common Share and OP Unit (2) |
$ 0.72 |
$ 0.77 |
$ (0.05) |
(6.1) % |
|||
Normalized Funds from Operations ("Normalized FFO") per Common Share and OP Unit |
$ 0.79 |
$ 0.75 |
$ 0.04 |
4.6 % |
|||
Nine Months Ended September 30, |
|||||||
2026 |
2025 |
$ Change |
% Change(1) |
||||
Net Income per Common Share (2) |
$ 1.50 |
$ 1.49 |
$ 0.01 |
0.6 % |
|||
FFO per Common Share and OP Unit (2) |
$ 2.32 |
$ 2.29 |
$ 0.03 |
1.3 % |
|||
Normalized FFO per Common Share and OP Unit |
$ 2.36 |
$ 2.27 |
$ 0.09 |
4.0 % |
|||
1. |
Calculations prepared using actual results without rounding. |
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2. |
Includes a $12.1 million deferred tax valuation allowance recorded during the quarter and nine months ended September 30, 2026. |
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Operations Update
Normalized FFO per Common Share and OP Unit for the quarter ended September 30, 2026 was $0.79, representing a 4.6% increase compared to the same period in 2025, consistent with the midpoint of our previous guidance range of $0.76 to $0.82. Core property operating revenues increased 4.4%, Core property operating expenses, excluding property management, increased 1.3% and Core income from property operations, excluding property management, increased 6.7% for the quarter ended September 30, 2026, each as compared to the same period in 2025. Normalized FFO for the nine months ended September 30, 2026 was $2.36 per Common Share and OP Unit, representing a 4.0% increase compared to the same period in 2025. For the nine months ended September 30, 2026, Core property operating revenues increased 4.3%, Core property operating expenses, excluding property management, increased 2.0% and Core income from property operations, excluding property management, increased 6.0%, each as compared to the same period in 2025.
MH
Core MH base rental income for the quarter ended September 30, 2026 increased 5.7% compared to the same period in 2025, which is 0.1% higher than the midpoint of our previous guidance range. Occupied sites increased by 99 and new and used home sales totaled 244 during the quarter ended September 30, 2026. Core MH base rental income for the nine months ended September 30, 2026 increased 5.7% compared to the same period in 2025. Occupied sites increased by 166 and new and used home sales totaled 707 during the nine months ended September 30, 2026.
RV and Marina
Core RV and marina base rental income for the quarter ended September 30, 2026 increased 2.1% compared to the same period in 2025, which is 0.4% higher than the midpoint of our previous guidance range. Core RV and marina annual base rental income increased 5.3% for the quarter ended September 30, 2026 compared to the same period in 2025. Core annual membership subscriptions for the quarter ended September 30, 2026 increased 8.4% compared to the same period in 2025.
Core RV and marina base rental income for the nine months ended September 30, 2026 increased 0.8% compared to the same period in 2025. Core RV and marina annual base rental income increased 5.0% for the nine months ended September 30, 2026 compared to the same period in 2025. Core annual membership subscriptions for the nine months ended September 30, 2026 increased 10.2% as compared to the same period in 2025.
In aggregate, Core RV and marina annual base rental income and annual membership subscriptions for the quarter and nine months ended September 30, 2026 increased by 5.8% and 5.9%, respectively, compared to the same periods in 2025.
Property Operating Expenses
Core property operating expenses, excluding property management, for the quarter ended September 30, 2026 increased 1.3% compared to the same period in 2025. For the nine months ended September 30, 2026, Core property operating expenses, excluding property management, increased 2.0% compared to the same period in 2025.
Preliminary 2027 Rent Growth Assumptions (1)
- Our preliminary 2027 Core MH base rent income growth assumption is approximately 5.1%.
- Our preliminary 2027 Core RV annual rent income growth assumption is approximately 4.7%.
1. |
The preliminary 2027 rent growth assumptions reflect management's best estimate of the most likely outcome based on our current view of existing market conditions and assumptions. See Forward-Looking Statements in this news release for factors impacting our preliminary 2027 rent growth assumptions. By October month-end, we anticipate sending 2027 rent increase notices to approximately 50% of our MH residents. We have set RV annual rates for more than 95% of our annual sites. These increases will take effect at the start of the 2026/27 winter season or the start of the 2027 summer season, as applicable. Our rent growth assumptions do not include contribution from incremental sites that may be occupied in 2027. |
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Guidance Update
Fourth quarter and full year 2026 guidance presented below represent management's estimate of a range of possible outcomes. The midpoint of the ranges reflect management's estimate of the most likely outcome based on our current view of existing market conditions and assumptions. Full year 2026 guidance ranges, including Core portfolio growth rate ranges, have been narrowed to reflect actual results for the nine months ended September 30, 2026, leaving only fourth quarter results subject to estimate. Actual results could vary materially from management's estimate if any of our assumptions are incorrect. See Forward-Looking Statements in this news release for factors impacting our 2026 guidance assumptions. See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the Supplemental Financial Information for additional information.
($ in millions, except per share data) |
2026 |
||||||
Fourth Quarter |
Full Year |
||||||
Net Income per Common Share |
$0.50 to $0.56 |
$2.00 to $2.06 |
|||||
FFO per Common Share and OP Unit |
$0.78 to $0.84 |
$3.11 to $3.17 |
|||||
Normalized FFO per Common Share and OP Unit |
$0.78 to $0.84 |
$3.15 to $3.21 |
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2025 Actual |
2026 Growth Rates |
||||||
Core Portfolio: |
Fourth Quarter |
Full Year |
Fourth Quarter |
Full Year |
|||
MH base rental income |
$ 189.9 |
$ 748.6 |
5.4% to 6.0% |
5.4% to 6.0% |
|||
RV and marina base rental income (1) |
$ 99.0 |
$ 427.5 |
2.5% to 3.1% |
0.9% to 1.5% |
|||
Property operating revenues |
$ 347.2 |
$ 1,405.6 |
4.1% to 4.7% |
4.0% to 4.6% |
|||
Property operating expenses, excluding property management |
$ 136.4 |
$ 583.5 |
1.5% to 2.1% |
1.6% to 2.2% |
|||
Income from property operations, excluding property management |
$ 210.8 |
$ 822.2 |
5.7% to 6.3% |
5.7% to 6.3% |
|||
2026 Full Year |
|||||||
Non-Core Income from property operations, excluding property management |
$8.3 to $12.3 |
||||||
Property management and general administrative |
$118.9 to $124.9 |
||||||
Interest and related amortization |
$134.5 to $140.5 |
||||||
Full Year 2026 Guidance Update Compared to Prior 2026 Guidance (2) |
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Prior Full Year 2026 |
Updated Full Year 2026 |
||
Normalized FFO per Common Share and OP Unit |
$3.18 |
$3.18 |
|
Core Portfolio Growth Rates: |
|||
MH base rental income |
5.7 % |
5.7 % |
|
RV and marina base rental income (1) |
1.6 % |
1.2 % |
|
Property operating revenues |
4.4 % |
4.3 % |
|
Property operating expenses, excluding property management |
2.1 % |
1.9 % |
|
Income from property operations, excluding property management |
6.0 % |
6.0 % |
|
1. |
Core RV and marina annual base rental income represents approximately 82.8% and 75.8% of fourth quarter 2026 and full year 2026 RV and marina base rental income guidance, respectively. Core RV and marina annual base rental income fourth quarter 2026 growth rate range is 4.9% to 5.5% and the full year 2026 growth rate range is 4.7% to 5.3%. Our guidance provided on July 22, 2026 factored in a Core RV and marina annual base rental income growth rate range of 4.3% to 5.3% for full year 2026. |
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2. |
Prior guidance issued on July 22, 2026. |
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About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago. As of September 30, 2026, we own or have an interest in 453 properties in 35 states and British Columbia consisting of 173,623 sites.
For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.
Conference Call
A live audio webcast of our conference call discussing these results will take place tomorrow, Wednesday, October 21, 2026, at 11:00 a.m. Eastern Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.
Forward-Looking Statements
In addition to historical information, this news release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as "anticipate," "expect," "believe," "project," "estimate," "guidance," "assumption," "intend," "may be" and "will be" and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include, without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. Forward-looking statements, including our guidance concerning Net Income, FFO and Normalized FFO per share data, and certain growth rates, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement due to a number of factors, which include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) change in customer demand regarding travel and outdoor vacation destinations; (viii) our ability to manage expenses in an inflationary environment, including the impact of changes in tariffs, as well as costs associated with supply chain disruptions; (ix) changes in debt service and interest rates; (x) our ability to integrate and operate recent acquisitions in accordance with our estimates; (xi) our ability to execute expansion/development opportunities in the face of changes impacting the supply chain or labor markets; (xii) completion of pending transactions in their entirety and on assumed schedule; (xiii) our ability to attract and retain property employees, particularly seasonal employees; (xiv) ongoing legal matters and related fees; (xv) costs to clean up and restore property operations and potential revenue losses following storms or other unplanned events; and (xvi) the potential impact of material weaknesses, if any, in our internal control over financial reporting. For further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the Securities and Exchange Commission, including the "Risk Factors" and "Forward-Looking Statements" sections in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
Supplemental Financial Information
Financial Highlights(1)(2) |
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(In millions, except Common Shares and OP Units outstanding and per share and ratio data, unaudited) |
|||||
As of and for the Quarters Ended |
|||||
Sep 30, |
June 30, |
Mar 31, |
Dec 31, |
Sep 30, |
|
Operating Information |
|||||
Total revenues |
$ 409.9 |
$ 397.8 |
$ 397.6 |
$ 373.9 |
$ 393.3 |
Consolidated net income |
$ 89.3 |
$ 99.5 |
$ 111.5 |
$ 103.8 |
$ 100.4 |
Net income available for Common Stockholders |
$ 86.4 |
$ 96.3 |
$ 107.9 |
$ 100.5 |
$ 97.1 |
Adjusted EBITDAre |
$ 192.5 |
$ 182.6 |
$ 201.1 |
$ 189.6 |
$ 183.3 |
FFO available for Common Stock and OP Unit holders |
$ 144.7 |
$ 154.5 |
$ 166.1 |
$ 156.7 |
$ 154.1 |
Normalized FFO available for Common Stock and OP Unit holders |
$ 157.4 |
$ 148.3 |
$ 167.3 |
$ 157.6 |
$ 150.5 |
Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders |
$ 134.4 |
$ 121.6 |
$ 149.1 |
$ 131.7 |
$ 124.2 |
Common Shares and OP Units Outstanding (In thousands) and Per Share Data |
|||||
Common Shares and OP Units, end of the period |
200,411 |
200,405 |
200,377 |
200,284 |
200,278 |
Weighted average Common Shares and OP Units outstanding - Fully Diluted |
200,250 |
200,209 |
200,176 |
200,162 |
200,126 |
Net Income per Common Share - Fully Diluted (3) |
$ 0.45 |
$ 0.50 |
$ 0.56 |
$ 0.52 |
$ 0.50 |
FFO per Common Share and OP Unit - Fully Diluted |
$ 0.72 |
$ 0.77 |
$ 0.83 |
$ 0.78 |
$ 0.77 |
Normalized FFO per Common Share and OP Unit - Fully Diluted |
$ 0.79 |
$ 0.74 |
$ 0.84 |
$ 0.79 |
$ 0.75 |
Dividends per Common Share |
$ 0.5425 |
$ 0.5425 |
$ 0.5425 |
$ 0.5150 |
$ 0.5150 |
Balance Sheet |
|||||
Total assets |
$ 5,765 |
$ 5,801 |
$ 5,749 |
$ 5,745 |
$ 5,747 |
Total liabilities |
$ 3,959 |
$ 3,984 |
$ 3,928 |
$ 3,931 |
$ 3,935 |
Market Capitalization |
|||||
Total debt (4) |
$ 3,329 |
$ 3,336 |
$ 3,314 |
$ 3,346 |
$ 3,302 |
Total market capitalization (5) |
$ 15,019 |
$ 16,252 |
$ 15,822 |
$ 15,485 |
$ 15,459 |
Ratios |
|||||
Total debt / total market capitalization |
22.2 % |
20.5 % |
20.9 % |
21.6 % |
21.4 % |
Total debt / Adjusted EBITDAre(6) |
4.3 |
4.4 |
4.5 |
4.5 |
4.5 |
Interest coverage (7) |
5.7 |
5.6 |
5.6 |
5.7 |
5.8 |
Fixed charges (8) |
5.6 |
5.6 |
5.6 |
5.7 |
5.7 |
1. |
See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the Supplemental Financial Information for definitions of fixed charges, FFO, Normalized FFO, FAD, Income from property operations excluding property management, EBITDAre, Adjusted EBITDAre, and a reconciliation of Consolidated net income to Income from property operations. |
|||||
2. |
See page 6 for a reconciliation of Net income available for Common Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. |
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3. |
Net Income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units. |
|||||
4. |
Excludes Deferred financing costs, net of approximately $21.7 million as of September 30, 2026. |
|||||
5. |
See page 14 for the calculation of market capitalization as of September 30, 2026. |
|||||
6. |
Calculated using trailing twelve months Adjusted EBITDAre. |
|||||
7. |
Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period. |
|||||
8. |
Calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period. |
|||||
Consolidated Balance Sheets |
|||
(In thousands, except share and per share data) |
|||
September 30, 2026 |
December 31, 2025 |
||
(unaudited) |
|||
Assets |
|||
Investment in real estate: |
|||
Land |
$ 2,104,661 |
$ 2,088,174 |
|
Land improvements |
4,970,718 |
4,784,223 |
|
Buildings and other depreciable property |
1,408,004 |
1,306,317 |
|
8,483,383 |
8,178,714 |
||
Accumulated depreciation |
(2,995,030) |
(2,838,344) |
|
Net investment in real estate |
5,488,353 |
5,340,370 |
|
Cash and restricted cash |
24,334 |
26,132 |
|
Notes receivable, net |
28,403 |
93,358 |
|
Investment in unconsolidated joint ventures |
40,202 |
85,041 |
|
Deferred commission expense |
57,119 |
58,149 |
|
Other assets, net |
126,595 |
142,343 |
|
Total Assets |
$ 5,765,006 |
$ 5,745,393 |
|
Liabilities and Equity |
|||
Liabilities: |
|||
Mortgage notes payable, net |
$ 2,731,331 |
$ 2,779,158 |
|
Term loans, net |
438,067 |
437,455 |
|
Unsecured line of credit |
138,000 |
105,000 |
|
Accounts payable and other liabilities |
192,124 |
152,536 |
|
Deferred membership revenue |
213,644 |
221,498 |
|
Accrued interest payable |
10,971 |
11,333 |
|
Rents and other customer payments received in advance and security deposits |
126,005 |
120,441 |
|
Distributions payable |
108,723 |
103,146 |
|
Total Liabilities |
3,958,865 |
3,930,567 |
|
Equity: |
|||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2026 |
— |
— |
|
Common stock, $0.01 par value, 600,000,000 shares authorized as of September 30, 2026 |
1,989 |
1,988 |
|
Paid-in capital |
1,987,638 |
1,981,540 |
|
Distributions in excess of accumulated earnings |
(250,120) |
(225,045) |
|
Accumulated other comprehensive income/(loss) |
9,351 |
(2,208) |
|
Total Stockholders' Equity |
1,748,858 |
1,756,275 |
|
Non-controlling interests – Common OP Units |
57,283 |
58,551 |
|
Total Equity |
1,806,141 |
1,814,826 |
|
Total Liabilities and Equity |
$ 5,765,006 |
$ 5,745,393 |
|
Consolidated Statements of Income |
|||||||
(In thousands, unaudited) |
|||||||
Quarters Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
2026 |
2025 |
2026 |
2025 |
||||
Revenues: |
|||||||
Rental income |
$ 344,305 |
$ 327,437 |
$ 1,013,781 |
$ 967,930 |
|||
Annual membership subscriptions |
19,509 |
17,868 |
56,627 |
51,112 |
|||
Membership upgrade revenue |
3,120 |
3,120 |
9,360 |
9,292 |
|||
Other income |
15,337 |
15,220 |
44,685 |
47,248 |
|||
Gross revenues from home sales, brokered resales and ancillary services |
24,393 |
24,927 |
66,294 |
68,648 |
|||
Interest income |
1,335 |
2,770 |
5,106 |
7,210 |
|||
Income from other investments, net |
1,904 |
1,972 |
9,487 |
6,074 |
|||
Total revenues |
409,903 |
393,314 |
1,205,340 |
1,157,514 |
|||
Expenses: |
|||||||
Property operating and maintenance |
134,897 |
133,243 |
388,204 |
379,654 |
|||
Real estate taxes |
22,075 |
20,585 |
66,001 |
64,073 |
|||
Membership sales and marketing |
4,817 |
4,199 |
13,205 |
12,192 |
|||
Property management |
21,355 |
20,277 |
61,871 |
61,430 |
|||
Depreciation and amortization |
54,898 |
52,313 |
161,671 |
155,904 |
|||
Cost of home sales, brokered resales and ancillary services |
18,016 |
17,474 |
48,519 |
47,642 |
|||
Home selling expenses and ancillary operating expenses |
7,578 |
7,186 |
22,019 |
20,342 |
|||
General and administrative (1) |
9,573 |
8,791 |
32,546 |
28,485 |
|||
Casualty-related charges/(recoveries), net (2) |
245 |
(3,748) |
(6,781) |
(4,072) |
|||
Other expenses (3) |
1,181 |
1,229 |
3,623 |
3,674 |
|||
Interest and related amortization |
34,607 |
33,659 |
102,076 |
96,995 |
|||
Total expenses |
309,242 |
295,208 |
892,954 |
866,319 |
|||
Income before other items |
100,661 |
98,106 |
312,386 |
291,195 |
|||
Gain/(Loss) on sale of real estate and impairment, net |
— |
31 |
(507) |
(652) |
|||
Income tax (expense)/benefit (3)(4) |
(12,065) |
518 |
(12,065) |
1,144 |
|||
Equity in income/(loss) of unconsolidated joint ventures |
654 |
1,708 |
445 |
6,562 |
|||
Consolidated net income |
89,250 |
100,363 |
300,259 |
298,249 |
|||
Income allocated to non-controlling interests – Common OP Units |
(2,825) |
(3,233) |
(9,606) |
(12,211) |
|||
Redeemable perpetual preferred stock dividends |
— |
— |
(8) |
(8) |
|||
Net income available for Common Stockholders |
$ 86,425 |
$ 97,130 |
$ 290,645 |
$ 286,030 |
|||
1. |
Includes $0.4 million and $2.4 million related to non-operating legal expenses during the quarter and nine months ended September 30, 2026, respectively. |
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2. |
Casualty-related charges/(recoveries), net for the quarter ended September 30, 2026 includes debris removal and other costs related to hurricane events of $0.4 million and insurance recovery revenue of $0.2 million. Casualty-related charges/(recoveries), net for the nine months ended September 30, 2026 includes debris removal and other costs related to hurricane events of $0.5 million and insurance recovery revenue of $7.3 million, including $7.1 million for reimbursement of capital expenditures. |
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3. |
Prior period amounts have been reclassified to conform to the current period presentation. |
||||
4. |
Includes a $12.1 million deferred tax valuation allowance recorded during the quarter and nine months ended September 30, 2026. |
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Non-GAAP Financial Measures
This document contains certain Non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these Non-GAAP measures along with GAAP net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. Our definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These Non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of Non-GAAP measures to our financial statements as prepared under GAAP, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 6 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 16-19.
Selected Non-GAAP Financial Measures (1) |
|
(In millions, except per share data, unaudited) |
|
Quarter Ended |
|
September 30, 2026 |
|
Income from property operations, excluding property management - Core Portfolio (2) |
$ 217.5 |
Income from property operations, excluding property management - Non-Core Portfolio (2) |
3.0 |
Property management and general and administrative |
(30.5) |
Other income and expenses |
2.1 |
Interest and related amortization |
(34.6) |
Normalized FFO available for Common Stock and OP Unit holders (3) |
$ 157.4 |
Other items (4) |
(0.4) |
Deferred tax valuation allowance (5) |
(12.1) |
Insurance proceeds due to catastrophic weather events, net |
(0.2) |
FFO available for Common Stock and OP Unit holders (3) |
$ 144.7 |
FFO per Common Share and OP Unit |
$ 0.72 |
Normalized FFO per Common Share and OP Unit |
$ 0.79 |
Normalized FFO available for Common Stock and OP Unit holders |
$ 157.4 |
Non-revenue producing improvements to real estate |
(23.0) |
FAD for Common Stock and OP Unit holders (3) |
$ 134.4 |
Weighted average Common Shares and OP Units - Fully Diluted |
200.3 |
1. |
See page 6 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders. |
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2. |
See pages 8-9 for details of the Core Portfolio Income from Property Operations, excluding property management. See page 10 for details of the Non-Core Portfolio Income from Property Operations, excluding property management. |
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3. |
Amounts may not foot due to rounding. |
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4. |
Represents expenses of $0.4 million related to non-operating legal expenses during the quarter ended September 30, 2026. |
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5. |
Represents a $12.1 million deferred tax valuation allowance recorded during the quarter ended September 30, 2026. |
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Reconciliation of Net Income to Non-GAAP Financial Measures |
|||||||
(In thousands, except per share data, unaudited) |
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Quarters Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
2026 |
2025 |
2026 |
2025 |
||||
Net income available for Common Stockholders |
$ 86,425 |
$ 97,130 |
$ 290,645 |
$ 286,030 |
|||
Income allocated to non-controlling interests – Common OP Units |
2,825 |
3,233 |
9,606 |
12,211 |
|||
Depreciation and amortization |
54,898 |
52,313 |
161,671 |
155,904 |
|||
Depreciation on unconsolidated joint ventures |
600 |
1,453 |
2,967 |
4,250 |
|||
(Gain)/Loss on sale of real estate and impairment, net |
— |
(31) |
507 |
652 |
|||
FFO available for Common Stock and OP Unit holders |
144,748 |
154,098 |
465,396 |
459,047 |
|||
Deferred tax valuation allowance (1) |
12,065 |
— |
12,065 |
— |
|||
Insurance proceeds due to catastrophic weather events, net |
245 |
(3,632) |
(6,766) |
(4,225) |
|||
Other items (2) |
386 |
— |
2,371 |
— |
|||
Normalized FFO available for Common Stock and OP Unit holders |
157,444 |
150,466 |
473,066 |
454,822 |
|||
Non-revenue producing improvements to real estate |
(23,029) |
(26,231) |
(67,909) |
(64,828) |
|||
FAD for Common Stock and OP Unit holders |
$ 134,415 |
$ 124,235 |
$ 405,157 |
$ 389,994 |
|||
Net Income per Common Share - Basic |
$ 0.45 |
$ 0.50 |
$ 1.50 |
$ 1.49 |
|||
Net Income per Common Share - Fully Diluted (3) |
$ 0.45 |
$ 0.50 |
$ 1.50 |
$ 1.49 |
|||
FFO per Common Share and OP Unit - Basic |
$ 0.72 |
$ 0.77 |
$ 2.33 |
$ 2.29 |
|||
FFO per Common Share and OP Unit - Fully Diluted |
$ 0.72 |
$ 0.77 |
$ 2.32 |
$ 2.29 |
|||
Normalized FFO per Common Share and OP Unit - Basic |
$ 0.79 |
$ 0.75 |
$ 2.36 |
$ 2.27 |
|||
Normalized FFO per Common Share and OP Unit - Fully Diluted |
$ 0.79 |
$ 0.75 |
$ 2.36 |
$ 2.27 |
|||
Weighted average Common Shares outstanding - Basic |
193,825 |
193,004 |
193,743 |
191,640 |
|||
Weighted average Common Shares and OP Units outstanding - Basic |
200,173 |
200,069 |
200,154 |
200,052 |
|||
Weighted average Common Shares and OP Units outstanding - Fully Diluted |
200,250 |
200,126 |
200,212 |
200,098 |
|||
1. |
Represents a $12.1 million deferred tax valuation allowance recorded during the quarter and nine months ended September 30, 2026. |
|||||
2. |
Represents expenses of $0.4 million and $2.4 million related to non-operating legal expenses during the quarter ended and nine months ended September 30, 2026, respectively. |
|||||
3. |
Net Income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units. |
|||||
Income from Property Operations - Total Portfolio (1) |
|||||||
(In millions, unaudited) |
|||||||
Quarters Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
2026 |
2025 |
2026 |
2025 |
||||
MH base rental income(2) |
$ 198.9 |
$ 188.2 |
$ 591.3 |
$ 559.2 |
|||
Rental home income (2) |
4.0 |
3.6 |
11.7 |
10.5 |
|||
RV and marina base rental income (2) |
120.8 |
115.4 |
352.5 |
343.1 |
|||
Annual membership subscriptions |
19.5 |
17.9 |
56.6 |
51.1 |
|||
Membership upgrade revenue |
3.1 |
3.1 |
9.4 |
9.3 |
|||
Utility and other income (2)(3) |
37.6 |
36.9 |
108.0 |
107.0 |
|||
Property operating revenues |
383.9 |
365.1 |
1,129.5 |
1,080.2 |
|||
Utility expense |
47.3 |
45.8 |
130.1 |
125.3 |
|||
Payroll |
33.2 |
32.5 |
94.6 |
92.6 |
|||
Repairs and maintenance |
28.2 |
26.7 |
83.5 |
79.1 |
|||
Insurance and other (2) |
26.2 |
28.3 |
80.6 |
83.5 |
|||
Real estate taxes |
22.1 |
20.6 |
66.0 |
64.1 |
|||
Rental home operating and maintenance |
1.6 |
1.4 |
4.4 |
3.8 |
|||
Membership sales and marketing |
4.8 |
4.2 |
13.2 |
12.2 |
|||
Property operating expenses, excluding property management |
163.4 |
159.5 |
472.4 |
460.6 |
|||
Income from property operations, excluding property management |
$ 220.5 |
$ 205.6 |
$ 657.1 |
$ 619.6 |
|||
RV and marina base rental income: |
|||||||
Annual |
$ 86.0 |
$ 81.3 |
$ 252.8 |
$ 239.4 |
|||
Seasonal |
6.1 |
6.4 |
38.3 |
42.8 |
|||
Transient |
28.7 |
27.7 |
61.4 |
60.9 |
|||
Total RV and marina base rental income |
$ 120.8 |
$ 115.4 |
$ 352.5 |
$ 343.1 |
|||
1. |
Excludes property management expenses. |
|||||
2. |
MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Statements of Income on page 3. Bad debt expense is presented in Insurance and other in this table. |
|||||
3. |
Includes approximately $0.9 million and $4.9 million of business interruption income from Hurricane Ian during the quarter and nine months ended September 30, 2025, respectively. |
|||||
Income from Property Operations - Core Portfolio (1) |
|||||||||||
(In millions, unaudited) |
|||||||||||
Quarters Ended September 30, |
Nine Months Ended September 30, |
||||||||||
2026 |
2025 |
Change(2) |
2026 |
2025 |
Change(2) |
||||||
MH base rental income |
$ 198.6 |
$ 188.0 |
5.7 % |
$ 590.6 |
$ 558.7 |
5.7 % |
|||||
Rental home income |
4.0 |
3.6 |
10.4 % |
11.6 |
10.5 |
10.5 % |
|||||
RV and marina base rental income |
113.1 |
110.8 |
2.1 % |
331.1 |
328.5 |
0.8 % |
|||||
Annual membership subscriptions |
19.1 |
17.7 |
8.4 % |
55.7 |
50.6 |
10.2 % |
|||||
Membership upgrade revenue |
3.1 |
3.1 |
— % |
9.4 |
9.2 |
1.5 % |
|||||
Utility and other income |
36.6 |
35.6 |
2.6 % |
105.8 |
101.0 |
4.8 % |
|||||
Property operating revenues |
374.5 |
358.8 |
4.4 % |
1,104.2 |
1,058.5 |
4.3 % |
|||||
Utility expense |
45.6 |
44.8 |
1.9 % |
126.1 |
122.4 |
3.0 % |
|||||
Payroll |
31.7 |
31.5 |
0.5 % |
90.7 |
89.9 |
0.9 % |
|||||
Repairs and maintenance |
27.2 |
25.9 |
4.9 % |
80.8 |
76.8 |
5.3 % |
|||||
Insurance and other (3) |
24.7 |
27.0 |
(8.8) % |
76.6 |
79.7 |
(3.8) % |
|||||
Real estate taxes |
21.4 |
20.2 |
6.3 % |
64.1 |
62.4 |
2.7 % |
|||||
Rental home operating and maintenance |
1.6 |
1.4 |
21.2 % |
4.4 |
3.8 |
16.0 % |
|||||
Membership sales and marketing |
4.8 |
4.2 |
14.8 % |
13.2 |
12.1 |
8.9 % |
|||||
Property operating expenses, excluding property management |
157.0 |
155.0 |
1.3 % |
455.9 |
447.1 |
2.0 % |
|||||
Income from property operations, excluding property management |
$ 217.5 |
$ 203.8 |
6.7 % |
$ 648.3 |
$ 611.4 |
6.0 % |
|||||
1. |
Excludes property management expenses. |
|||
2. |
Calculations prepared using actual results without rounding. |
|||
3. |
Includes bad debt expense for the periods presented. |
|||
Income from Property Operations - Core Portfolio (continued) |
|||||||||||
(In millions, except home site and occupancy figures, unaudited) |
|||||||||||
Quarters Ended |
Nine Months Ended |
||||||||||
September 30, |
September 30, |
||||||||||
2026 |
2025 |
2026 |
2025 |
||||||||
Core manufactured home site figures and occupancy: |
|||||||||||
Total sites, beginning |
73,311 |
72,801 |
73,170 |
72,801 |
|||||||
Expansion sites, net |
— |
— |
141 |
— |
|||||||
Total sites, ending |
73,311 |
72,801 |
73,311 |
72,801 |
|||||||
Occupied sites, beginning |
68,711 |
68,712 |
68,644 |
68,923 |
|||||||
Occupied sites, ending |
68,810 |
68,716 |
68,810 |
68,716 |
|||||||
Occupancy average % |
93.8 % |
94.3 % |
93.8 % |
94.4 % |
|||||||
Monthly base average rent per site |
$ 963 |
$ 912 |
$ 956 |
$ 904 |
|||||||
Quarters Ended September 30, |
Nine Months Ended September 30, |
||||||||||
2026 |
2025 |
Change(1) |
2026 |
2025 |
Change(1) |
||||||
Core RV and marina base rental income: |
|||||||||||
Annual (2) |
$ 82.8 |
$ 78.6 |
5.3 % |
$ 243.9 |
$ 232.3 |
5.0 % |
|||||
Seasonal |
5.8 |
6.2 |
(4.4) % |
35.1 |
40.1 |
(12.6) % |
|||||
Transient |
24.5 |
26.0 |
(5.8) % |
52.1 |
56.1 |
(7.0) % |
|||||
Total Seasonal and Transient |
$ 30.3 |
$ 32.2 |
(5.6) % |
$ 87.2 |
$ 96.2 |
(9.3) % |
|||||
Total RV and marina base rental income |
$ 113.1 |
$ 110.8 |
2.1 % |
$ 331.1 |
$ 328.5 |
0.8 % |
|||||
Quarters Ended September 30, |
Nine Months Ended September 30, |
||||||||||
2026 |
2025 |
Change(1) |
2026 |
2025 |
Change(1) |
||||||
Core utility information: |
|||||||||||
Income |
$ 22.1 |
$ 21.5 |
2.7 % |
$ 62.7 |
$ 58.9 |
6.4 % |
|||||
Expense |
45.6 |
44.8 |
1.9 % |
126.1 |
122.4 |
3.0 % |
|||||
Expense, net |
$ 23.5 |
$ 23.3 |
1.2 % |
$ 63.4 |
$ 63.5 |
(0.1) % |
|||||
Utility recovery rate (3) |
48.5 % |
48.0 % |
49.7 % |
48.1 % |
|||||||
1. |
Calculations prepared using actual results without rounding. |
||||
2. |
Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented. |
||||
3. |
Calculated by dividing utility income by utility expense. |
||||
Income from Property Operations - Non-Core Portfolio (1) |
|||
(In millions, unaudited) |
|||
Quarter Ended |
Nine Months Ended |
||
September 30, 2026 |
September 30, 2026 |
||
MH base rental income |
$ 0.2 |
$ 0.7 |
|
Rental home income |
— |
0.1 |
|
RV and marina base rental income |
7.6 |
21.4 |
|
Annual membership subscriptions |
0.4 |
0.9 |
|
Utility and other income |
1.1 |
2.1 |
|
Property operating revenues |
9.3 |
25.2 |
|
Property operating expenses, excluding property management (2) |
6.3 |
16.4 |
|
Income from property operations, excluding property management |
$ 3.0 |
$ 8.8 |
|
1. |
Excludes property management expenses. |
|||||
2. |
Includes bad debt expense for the periods presented. |
|||||
Home Sales and Rental Home Operations |
|||||||
(In thousands, except home sale volumes and occupied rentals, unaudited) |
|||||||
Home Sales - Select Data (1) |
Quarters Ended |
Nine Months Ended |
|||||
September 30, |
September 30, |
||||||
2026 |
2025 |
2026 |
2025 |
||||
Total new home sales volume |
97 |
119 |
282 |
353 |
|||
New home sales gross revenues |
$ 9,294 |
$ 9,864 |
$ 26,030 |
$ 28,737 |
|||
Total used home sales volume |
148 |
129 |
427 |
271 |
|||
Used home sales gross revenues |
$ 850 |
$ 1,334 |
$ 2,376 |
$ 2,869 |
|||
Brokered home resales volume |
131 |
113 |
387 |
337 |
|||
Brokered home resales gross revenues |
$ 511 |
$ 424 |
$ 1,450 |
$ 1,274 |
|||
Rental Homes - Select Data |
Quarters Ended |
Nine Months Ended |
|||||
September 30, |
September 30, |
||||||
2026 |
2025 |
2026 |
2025 |
||||
Rental operations revenues (2) |
$ 10,263 |
$ 9,091 |
$ 29,904 |
$ 26,234 |
|||
Rental home operations expense (3) |
1,640 |
1,353 |
4,407 |
3,799 |
|||
Depreciation on rental homes (4) |
2,943 |
2,428 |
8,384 |
7,551 |
|||
Occupied rentals: (5) |
|||||||
New |
2,085 |
1,905 |
|||||
Used |
189 |
186 |
|||||
Total occupied rental sites |
2,274 |
2,091 |
|||||
As of September 30, 2026 |
As of September 30, 2025 |
||||||
Cost basis in rental homes: (6) |
Gross |
Net of |
Gross |
Net of |
|||
New |
$ 302,223 |
$ 256,130 |
$ 239,937 |
$ 200,330 |
|||
Used |
16,553 |
13,701 |
13,622 |
10,441 |
|||
Total rental homes |
$ 318,776 |
$ 269,831 |
$ 253,559 |
$ 210,771 |
|||
1. |
Represents Total Portfolio home sales data. |
|||||
2. |
For the quarters ended September 30, 2026 and 2025, approximately $6.3 million and $5.5 million, respectively, of the rental operations revenue is included in the MH base rental income in the Income from Property Operations - Core Portfolio on pages 8-9. The remainder of the rental operations revenue for the quarters ended September 30, 2026 and 2025 is included in Rental home income in the Income from Property Operations - Core Portfolio on pages 8-9. |
|||||
3. |
Rental home operations expense is included in Rental home operating and maintenance in the Income from Property Operations - Core Portfolio on pages 8-9. |
|||||
4. |
Depreciation on rental homes in our Core Portfolio is presented in Depreciation and amortization in the Consolidated Statements of Income on page 3. |
|||||
5. |
Includes occupied rental sites as of the end of the period in our Core Portfolio. |
|||||
6. |
Includes both occupied and unoccupied rental homes in our Core Portfolio. |
|||||
Total Sites |
|
(Unaudited) |
|
Summary of Total Sites as of September 30, 2026 |
|
Sites (1) |
|
MH sites(2) |
75,900 |
RV sites: |
|
Annual (2) |
34,800 |
Seasonal |
9,800 |
Transient (2) |
20,400 |
Marina slips |
6,900 |
Membership (3) |
26,000 |
Total (4) |
173,600 |
1. |
MH sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV sites are leased to customers generally for one to six months. Transient RV and marina sites are sites without an annual or seasonal reservation and are available to be leased to customers on a short-term basis. |
|||||
2. |
MH, Annual RV and Transient RV sites include approximately 2,100, 200 and 300 joint venture sites, respectively. |
|||||
3. |
Sites primarily utilized by approximately 107,400 members. Includes approximately 6,200 sites rented on an annual basis. |
|||||
4. |
Total does not foot due to rounding. |
|||||
Membership Campgrounds - Select Data |
||||||||||
Years Ended December 31, |
Nine Months |
|||||||||
Campground and Membership Revenue (1) ($ in thousands, unaudited) |
2022 |
2023 |
2024 |
2025 |
2026 |
|||||
Annual membership subscriptions |
$ 63,215 |
$ 65,379 |
$ 65,883 |
$ 69,266 |
$ 56,627 |
|||||
Annual RV base rental income |
$ 25,945 |
$ 27,842 |
$ 29,282 |
$ 30,546 |
$ 24,620 |
|||||
Seasonal/Transient RV base rental income |
$ 24,316 |
$ 20,996 |
$ 21,338 |
$ 19,959 |
$ 15,979 |
|||||
Membership upgrade revenue |
$ 12,958 |
$ 14,719 |
$ 16,433 |
$ 12,412 |
$ 9,360 |
|||||
Utility and other income |
$ 2,626 |
$ 2,544 |
$ 2,360 |
$ 2,390 |
$ 1,964 |
|||||
Membership Count |
||||||||||
Total Memberships (2) |
128,439 |
121,002 |
113,553 |
108,731 |
107,387 |
|||||
Paid Membership Origination |
23,237 |
20,758 |
19,539 |
17,150 |
13,319 |
|||||
Promotional Membership Origination |
28,178 |
25,232 |
23,552 |
23,002 |
16,879 |
|||||
Membership Upgrade Volume (3) |
4,068 |
3,858 |
4,086 |
5,945 |
4,284 |
|||||
Campground Metrics |
||||||||||
Membership Campground Count |
82 |
82 |
82 |
82 |
82 |
|||||
Membership Campground RV Site Count |
25,800 |
26,000 |
26,000 |
26,000 |
26,000 |
|||||
Annual Site Count (4) |
6,390 |
6,154 |
5,902 |
6,014 |
6,226 |
|||||
1. |
Membership upgrade product offerings include two- to four-year term subscription products with increased annual dues. The revenue associated with these subscription products is recognized as Annual membership subscriptions. |
|||||
2. |
Members who have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days. |
|||||
3. |
Upgraded memberships provide enhanced benefits, including but not limited to longer stays, the ability to make earlier reservations, potential discounts on rental units, and potential access to additional properties. |
|||||
4. |
Sites that have been rented by members for an entire year. |
|||||
Market Capitalization |
|||||||||
(In millions, except share and OP Unit data, unaudited) |
|||||||||
Capital Structure as of September 30, 2026 |
|||||||||
Total |
% of Total |
Total |
% of Total |
% of Total |
|||||
Secured Debt |
$ 2,751 |
82.6 % |
|||||||
Unsecured Debt |
578 |
17.4 % |
|||||||
Total Debt (1) |
$ 3,329 |
100.0 % |
22.2 % |
||||||
Common Shares |
194,068,205 |
96.8 % |
|||||||
OP Units |
6,342,760 |
3.2 % |
|||||||
Total Common Shares and OP Units |
200,410,965 |
100.0 % |
|||||||
Common Stock price at September 30, 2026 |
$ 58.33 |
||||||||
Fair Value of Common Shares and OP Units |
$ 11,690 |
100.0 % |
|||||||
Total Equity |
$ 11,690 |
100.0 % |
77.8 % |
||||||
Total Market Capitalization |
$ 15,019 |
100.0 % |
|||||||
1. |
Excludes Deferred financing costs, net of approximately $21.7 million. |
|||
Debt Maturity Schedule |
|||||||
Debt Maturity Schedule as of September 30, 2026 |
|||||||
Year |
Outstanding |
Weighted |
% of Total |
Weighted |
|||
Secured Debt |
|||||||
2026 |
— |
— % |
— % |
— |
|||
2027 |
— |
— % |
— % |
— |
|||
2028 |
186,077 |
4.19 % |
5.59 % |
1.9 |
|||
2029 |
269,989 |
4.92 % |
8.11 % |
2.9 |
|||
2030 |
275,385 |
2.69 % |
8.27 % |
3.5 |
|||
2031 |
226,323 |
2.45 % |
6.80 % |
4.7 |
|||
2032 |
202,000 |
2.47 % |
6.07 % |
5.9 |
|||
2033 |
339,023 |
4.84 % |
10.18 % |
7.0 |
|||
2034 |
197,466 |
3.44 % |
5.93 % |
7.6 |
|||
2035 |
184,870 |
2.64 % |
5.55 % |
9.0 |
|||
Thereafter |
869,915 |
4.21 % |
26.13 % |
12.3 |
|||
Total |
$ 2,751,048 |
3.77 % |
82.63 % |
7.5 |
|||
Unsecured Term Loans |
|||||||
2026 |
— |
— % |
— % |
— |
|||
2027 |
200,000 |
4.88 % |
6.01 % |
0.3 |
|||
2028 |
— |
— % |
— % |
— |
|||
2029 |
— |
— % |
— % |
— |
|||
2030 |
240,000 |
4.74 % |
7.21 % |
3.7 |
|||
Thereafter |
— |
— % |
— % |
— |
|||
Total |
$ 440,000 |
4.81 % |
13.22 % |
2.1 |
|||
Total Secured and Unsecured |
$ 3,191,048 |
3.91 % |
95.85 % |
6.7 |
|||
Line of Credit Borrowing (1) |
138,000 |
5.00 % |
4.15 % |
— |
|||
Deferred financing costs, net |
(21,650) |
||||||
Total Debt, Net |
$ 3,307,398 |
4.12% (2) |
100.00 % |
||||
1. |
The floating interest rate on the line of credit is SOFR plus 0.10% plus 1.25% to 1.65%. During the quarter ended September 30, 2026, the effective interest rate on the line of credit borrowings was 5.00%. |
||||
2. |
Reflects effective interest rate for the quarter ended September 30, 2026, including interest associated with the line of credit and amortization of deferred financing costs. |
||||
Non-GAAP Financial Measures Definitions and Reconciliations
The following Non-GAAP financial measures definitions do not include adjustments in respect to membership upgrade revenue: (i) FFO; (ii) Normalized FFO; (iii) EBITDAre; (iv) Adjusted EBITDAre; (v) Property operating revenues; (vi) Property operating expenses, excluding property management; and (vii) Income from property operations, excluding property management.
FUNDS FROM OPERATIONS (FFO). We define FFO as net income, computed in accordance with GAAP, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of FFO of unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
We believe FFO, as defined by the Board of Governors of NAREIT, is generally a measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.
NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO). We define Normalized FFO as FFO excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties, defeasance costs, transaction/pursuit costs and other, expenses and benefits related to deferred tax valuation allowances and reversals, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.
We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our normal operations. For example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.
INCOME FROM PROPERTY OPERATIONS, EXCLUDING PROPERTY MANAGEMENT. We define Income from property operations, excluding property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, membership sales and marketing expenses, excluding property management expenses. Property management represents the expenses associated with indirect costs such as off-site payroll and certain administrative and professional expenses. We believe exclusion of property management expenses is helpful to investors and analysts as a measure of the operating results of our properties, excluding items that are not directly related to the operation of the properties. For comparative purposes, we present bad debt expense within insurance and other in the current and prior periods. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our properties.
The following table reconciles Net income available for Common Stockholders to Income from property operations:
Quarters Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
(amounts in thousands) |
2026 |
2025 |
2026 |
2025 |
|||
Net income available for Common Stockholders |
$ 86,425 |
$ 97,130 |
$ 290,645 |
$ 286,030 |
|||
Redeemable perpetual preferred stock dividends |
— |
— |
8 |
8 |
|||
Income allocated to non-controlling interests – Common OP Units |
2,825 |
3,233 |
9,606 |
12,211 |
|||
Consolidated net income |
89,250 |
100,363 |
300,259 |
298,249 |
|||
Equity in (income)/loss of unconsolidated joint ventures |
(654) |
(1,708) |
(445) |
(6,562) |
|||
Income tax expense/(benefit) (1)(2) |
12,065 |
(518) |
12,065 |
(1,144) |
|||
(Gain)/Loss on sale of real estate and impairment, net |
— |
(31) |
507 |
652 |
|||
Gross revenues from home sales, brokered resales and ancillary services |
(24,393) |
(24,927) |
(66,294) |
(68,648) |
|||
Interest income |
(1,335) |
(2,770) |
(5,106) |
(7,210) |
|||
Income from other investments, net |
(1,904) |
(1,972) |
(9,487) |
(6,074) |
|||
Property management |
21,355 |
20,277 |
61,871 |
61,430 |
|||
Depreciation and amortization |
54,898 |
52,313 |
161,671 |
155,904 |
|||
Cost of home sales, brokered resales and ancillary services |
18,016 |
17,474 |
48,519 |
47,642 |
|||
Home selling expenses and ancillary operating expenses |
7,578 |
7,186 |
22,019 |
20,342 |
|||
General and administrative (3) |
9,573 |
8,791 |
32,546 |
28,485 |
|||
Casualty-related charges/(recoveries), net (4) |
245 |
(3,748) |
(6,781) |
(4,072) |
|||
Other expenses (1) |
1,181 |
1,229 |
3,623 |
3,674 |
|||
Interest and related amortization |
34,607 |
33,659 |
102,076 |
96,995 |
|||
Income from property operations, excluding property management |
220,482 |
205,618 |
657,043 |
619,663 |
|||
Property management |
(21,355) |
(20,277) |
(61,871) |
(61,430) |
|||
Income from property operations |
$ 199,127 |
$ 185,341 |
$ 595,172 |
$ 558,233 |
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EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre. We define EBITDAre as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, gains or losses from sales of properties, impairment charges, and adjustments to reflect our share of EBITDAre of unconsolidated joint ventures. We compute EBITDAre in accordance with our interpretation of the standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
We define Adjusted EBITDAre as EBITDAre excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, transaction/pursuit costs and other, and other miscellaneous non-comparable items.
We believe that EBITDAre and Adjusted EBITDAre may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity REIT.
1. |
Prior period amounts have been reclassified to conform to the current period presentation. |
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2. |
Includes a $12.1 million deferred tax valuation allowance recorded during the quarter and nine months ended September 30, 2026. |
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3. |
Includes $0.4 million and $2.4 million related to non-operating legal expenses during the quarter and nine months ended September 30, 2026, respectively. |
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4. |
Casualty-related charges/(recoveries), net for the quarter ended September 30, 2026 includes debris removal and other costs related to hurricane events of $0.4 million and insurance recovery revenue of $0.2 million. Casualty-related charges/(recoveries), net for the nine months ended September 30, 2026 includes debris removal and other costs related to hurricane events of $0.5 million and insurance recovery revenue of $7.3 million, including $7.1 million for reimbursement of capital expenditures. |
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The following table reconciles Consolidated net income to EBITDAre and Adjusted EBITDAre:
Quarters Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
(amounts in thousands) |
2026 |
2025 |
2026 |
2025 |
|||
Consolidated net income |
$ 89,250 |
$ 100,363 |
$ 300,259 |
$ 298,249 |
|||
Interest income |
(1,335) |
(2,770) |
(5,106) |
(7,210) |
|||
Real estate depreciation and amortization |
54,898 |
52,313 |
161,671 |
155,904 |
|||
Other depreciation and amortization |
1,097 |
1,204 |
3,418 |
3,658 |
|||
Interest and related amortization |
34,607 |
33,659 |
102,076 |
96,995 |
|||
Income tax expense/(benefit) (1) |
12,065 |
(518) |
12,065 |
(1,144) |
|||
(Gain)/Loss on sale of real estate and impairment, net |
— |
(31) |
507 |
652 |
|||
Adjustments to our share of EBITDAre of unconsolidated joint ventures |
1,264 |
2,677 |
5,693 |
7,285 |
|||
EBITDAre |
191,846 |
186,897 |
580,583 |
554,389 |
|||
Other items (2) |
386 |
— |
2,371 |
— |
|||
Insurance proceeds due to catastrophic weather events, net |
245 |
(3,632) |
(6,766) |
(4,225) |
|||
Adjusted EBITDAre |
$ 192,477 |
$ 183,265 |
$ 576,188 |
$ 550,164 |
|||
CORE PORTFOLIO or CORE. The Core properties include properties we owned and operated during all of 2025 and 2026. We believe Core is a measure that is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations.
NON-CORE PORTFOLIO or NON-CORE. The Non-Core properties in 2026 include properties that were not owned and operated during all of 2025 and 2026, including six properties in Florida impacted by Hurricane Ian, two properties in California that were impacted by storm and flooding events and seven acquired RVC properties. The 2026 guidance reflects Non-Core properties in 2026, which includes properties not owned and operated during all of 2025 and 2026.
NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital expenditures that do not directly result in increased revenue or expense savings and are primarily comprised of common area improvements, furniture and mechanical improvements.
FIXED CHARGES. Fixed charges consist of interest expense, amortization of note premiums and debt issuance costs. The fixed charges ratio is calculated by dividing the trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.
1. |
Includes a $12.1 million deferred tax valuation allowance recorded during the quarter and nine months ended September 30, 2026. |
||||
2. |
Represents expenses of $0.4 million and $2.4 million related to non-operating legal expenses during the quarter and nine months ended September 30, 2026, respectively. |
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FORWARD-LOOKING NON-GAAP MEASURES. The following table reconciles Net Income per Common Share - Fully Diluted guidance to FFO per Common Share and OP Unit - Fully Diluted guidance and Normalized FFO per Common Share and OP Unit - Fully diluted guidance:
(Unaudited) |
Fourth Quarter 2026 |
Full Year 2026 |
|
Net Income per Common Share - Fully Diluted |
$0.50 to $0.56 |
$2.00 to $2.06 |
|
Depreciation and amortization |
0.28 |
1.10 |
|
FFO per Common Share and OP Unit - Fully Diluted (1) |
$0.78 to $0.84 |
$3.11 to $3.17 |
|
Other |
— |
0.04 |
|
Normalized FFO per Common Share and OP Unit - Fully Diluted (1) |
$0.78 to $0.84 |
$3.15 to $3.21 |
1. |
Amounts may not foot due to rounding. |
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This news release includes certain forward-looking information, including Core and Non-Core Income from property operations, excluding property management, that is not presented in accordance with GAAP. In reliance on the exception in Item 10(e)(1)(i)(B) of Regulation S-K, we do not provide a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP, where we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This includes, for example, (i) scheduled or implemented rate increases on community, resort and marina sites; (ii) scheduled or implemented rate increases in annual payments under membership subscriptions; (iii) occupancy changes; (iv) costs to restore property operations and potential revenue losses following storms or other unplanned events; and (v) other nonrecurring/unplanned income or expense items, which may not be within our control, may vary between periods and cannot be reasonably predicted. These unavailable reconciling items could significantly impact our future financial results.
SOURCE Equity Lifestyle Properties, Inc.