- Normalized FFO per share increased 6.7% to $0.83.
- Core MH base rental income grew 5.5%.
- Property insurance premium decreased 6.1%.
Equity LifeStyle Properties (ELS, Financial) reported its Q1 2025 financial results, showcasing a mixed performance. The company's Normalized Funds from Operations (FFO) per share reached $0.83, marking a 6.7% increase from Q1 2024, and aligning with the midpoint of its previous guidance range of $0.80 to $0.86. Conversely, net income per share saw a decline of 3%, settling at $0.57.
The core operations of ELS exhibited positive trends, with property operating revenues climbing by 2.9%, while expenses elevated by a modest 1.5%. Notably, core manufactured housing (MH) base rental income saw a growth of 5.5%, driven by a 5.7% increase in rates. However, this growth was slightly tempered by a 0.2% decline in occupancy, attributed to storm damage in several Florida communities.
During the quarter, ELS successfully sold 117 new homes, with an average sale price of approximately $81,000, reflecting robust demand for affordable housing. Moreover, the company renewed its property insurance, achieving a significant 6.1% decrease in premiums, a positive development amidst a challenging insurance market for coastal properties.
Looking forward, ELS has provided its full-year 2025 guidance, projecting Normalized FFO per share to range between $3.01 and $3.11. The company anticipates continued growth, with expectations for MH base rental income to increase by 4.8% to 5.8% throughout the year, underscoring the resilience of affordable housing in a varied economic landscape.
