Equity LifeStyle Properties, Inc. Q2 FY2025 earnings call

• CEO Marguerite Nader reported year-to-date NOI increase of 5% and normalized per share FFO growth of 5.7%, maintaining full year FFO per share guidance. Highlighted demographics supporting demand for MH and RV portfolios, with MH portfolio having 97% owner-occupied units.
• President and COO Patrick Waite discussed core MH portfolio with high occupancy and 5.5% revenue growth in the quarter, strategic investments in communities, and RV business with annual sites providing stable revenue. Mentioned managing expenses using technology and developing sites in MH and RV portfolios.
• CFO Paul Seavey reviewed second quarter and year-to-date results, noting normalized FFO of $0.69 per share in line with guidance, core portfolio performance with 6.4% NOI growth, and maintained full year 2025 normalized FFO guidance at $3.06 per share midpoint.

The MH portfolio represents approximately 60% of total revenue, with portfolio-wide occupancy over 94%. For the first six months of 2025, NOI increased 5% compared to the previous year, and core MH portfolio had 5.5% revenue growth in the quarter. The RV business saw annual RV revenue grow 3.9% year-to-date, with annual sites accounting for more than 70% of core RV revenue. Additionally, 55 of their RV resorts and campgrounds received the 2025 TripAdvisor Travelers' Choice Award.

• Maintained full year 2025 normalized FFO guidance of $3.06 per share at the midpoint of $3.01-$3.11 per share.
• Projected third quarter normalized FFO per share in the range of $0.72 to $0.78.
• Full year core property operating income growth midpoint at 5% within 4.5%-5.5% range.
• Core base rent growth guidance: 4.9%-5.9% for MH and 60 basis points-1.6% for RV and marina.
• Projected core property operating expenses increase 70 basis points to 1.7% for full year 2025.

• Economic risks associated with forward-looking statements.
• Weather impact on transient RV business, such as cool start to camping season and rain affecting weekend weather.
• Potential impact of visa changes on Canadian customers' travel.
• Occupancy changes due to factors like storm damage to marinas and elevated turnover in RV annuals.

Q: On the revised outlook for core RV and marina annual revenue guidance, what occurred in the second quarter?

A: Patrick Waite stated RV and marina annual was up 3.7% in the quarter, unfavorable by about 90 basis points due to occupancy, with higher attrition in North/Northeast RV and storm damage impacting 2 marinas.

Q: How does the weakness in RV growth impact pricing power for '26?

A: Patrick Waite mentioned MH rate reviews for 2026 in late third/early fourth quarter, and for RV, consistent demand with 6% rate growth but going through attrition cycle.

Q: Impact of potential reduced travel from Canadian customers?

A: Patrick Waite said lower take rate on early bird program for Canadians, but no major change expected moving into Sunbelt season.

Q: Expense guidance reduction breakdown?

A: Paul Seavey explained about 2/3 of core expenses (utility, payroll, R&M) expected to increase 2.4%, remaining 1/3 (real estate taxes, insurance, membership) down 1%, including insurance renewal and membership upgrade savings.

Q: Higher turnover in annual RV?

A: Patrick Waite said about 20 properties in Northeast had elevated turnover, historically around 5%, expected to normalize as peak demand period leads to more turnover.