The number of check-in sites continues to grow, maintaining strong performance.

Preliminary assumptions for rent increases in 2027

Chicago, October 20 (Reuters) / PRNewswire / -- Equity LifeStyle Properties, Inc. (New York Stock Exchange ticker: ELS, hereinafter referred to as "we") today announced its quarterly and nine-month results as of September 30, 2026. Unless otherwise stated, all per-share data are disclosed on a fully diluted basis.

Business Update

For the quarter ending September 30, 2026, the Normalized FFO per share of common stock and OP Unit was $0.79, representing a 4.6% increase from the same period in 2025, which is in line with the midpoint of the company's previous guidance range of $0.76 to $0.82. During that quarter, core property operating income increased by 4.4% year-over-year, while core property operating expenses excluding property management increased by 1.3% year-over-year, and core property operating income excluding property management increased by 6.7% year-over-year. For the first nine months ending September 30, 2026, the Normalized FFO per share of common stock and OP Unit was $2.36, showing a 4.0% increase from the same period in 2025. Core property operating income for the first nine months increased by 4.3% year-over-year, core property operating expenses excluding property management increased by 2.0% year-over-year, and core property operating income excluding property management increased by 6.0% year-over-year.

MH

For the quarter ending September 30, 2026, the core MH basic rental income increased by 5.7% compared to the same period in 2025, which is 0.1% higher than the midpoint of the company's previous guidance range. During that quarter, 99 new sites were occupied, and a total of 244 units of new and old properties were sold. For the first nine months ending September 30, 2026, the core MH basic rental income also increased by 5.7% compared to the same period in 2025. During these first nine months, 166 new sites were occupied, and a total of 707 units of new and old properties were sold.

RV and Dock Business

For the quarter ending September 30, 2026, core RV and terminal base rent revenue increased by 2.1% compared to the same period in 2025, which is 0.4% higher than the midpoint of the company's previous guidance range. During that quarter, core RV and terminal annual base rent revenue grew by 5.3% year-on-year. Core annual membership subscription revenue also increased by 8.4% year-on-year.

In the first nine months up to September 30, 2026, the core RV and terminal base rent income increased by 0.8% compared to the same period in 2025. The core RV and terminal annual base rent income increased by 5.0% year-on-year. The core annual membership subscription income also increased by 10.2% year-on-year.

Overall, for the quarter ending September 30, 2026, as well as the first nine months, the core RV and the annual base rental income from docks, as well as the annual membership subscription income, have increased by 5.8% and 5.9% respectively compared to the same period in 2025.

Property operating expenses

For the quarter ending September 30, 2026, the core property operating expenses, excluding property management, increased by 1.3% compared to the same period in 2025. In the first nine months up to September 30, 2026, this expense increased by 2.0% year-on-year.

Preliminary assumptions for rent increases in 2027 (1)

• The company's preliminary assumption for the growth of core MH basic rental income in 2027 is about 5.1%.
• The company's preliminary assumption for the growth of core RV annual rental income in 2027 is about 4.7%.

Guideline Update

The guidance for the fourth quarter of 2026 and for the full year as shown below represents management's estimates of the possible outcome ranges. The midpoint of each range reflects management's estimation of the most likely outcome based on current views of the existing market environment and assumptions. Since the actual results for the first nine months up to September 30, 2026, have been disclosed, the range for the full-year guidance for 2026 (including the growth rate range for the core portfolio) has narrowed, with only the results for the fourth quarter still needing to be estimated. If any assumptions do not hold true, the actual results may differ significantly from management's estimates. For factors that could affect the assumptions underlying the 2026 guidance, please refer to the forward-looking statements in this press release. For more information, see the definitions and adjustments of financial indicators at the end of the supplementary financial information, which are not marked with GAAP.

About Equity LifeStyle Properties

We are a self-managed and self-operated real estate investment trust fund ( REIT ), headquartered in Chicago. As of September 30, 2026, we own or have interests in a total of 453 properties, distributed across 35 states and British Columbia, comprising 173,623 sites in total.

For more information, please contact the Investor Relations department at (800) 247-5279, or send an email to [ email protected ].

Teleconference

The company will hold a live audio webcast conference to discuss this quarter's performance tomorrow, on Wednesday, October 21, 2026, at 11:00 a.m. Eastern Time. Please visit the investor relations page at www.equitylifestyleproperties.com to obtain the link. The webcast replay will be available on that website for two weeks.

Forward-looking Statements

In addition to historical information, this press release also contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. The use of words such as “expected,” “anticipated,” “believed,” “planned,” “estimated,” “guidance,” “assumed,” “intended,” “possible,” “will,” and similar expressions, or their negative forms (unless otherwise indicated in the context), is intended to identify forward-looking statements. These may include, but are not limited to, our expectations, objectives, or intentions regarding the future, as well as information on the anticipated effects of mergers and acquisitions. Forward-looking statements, including our guidance regarding net profit, FFO, earnings per share Normalized FFO, and certain growth rates, essentially involve estimates, projections, objectives, and assumptions, and are subject to risks and uncertainties that may result in significant differences between actual results and those expressed in the forward-looking statements.Relevant factors include, but are not limited to: (i) the structure of usage within the portfolio; (ii) our revenue management for short-term resort and marina sites; (iii) planned or implemented rate increases for community, resort, and marina sites; (iv) planned or implemented rate increases for annual membership subscriptions; (v) changes in occupancy rates; (vi) our ability to attract and retain member customers; (vii) changes in customer demand for travel and outdoor vacation destinations; (viii) our ability to control costs in an inflationary environment, including the impact of changes in tariffs and costs related to supply chain disruptions; (ix) changes in debt service costs and interest rates; (x) our ability to integrate and operate recently acquired assets as estimated; (xi) our ability to pursue expansion/development opportunities in the face of changes in the supply chain or labor market; (xii) whether pending transactions can be completed on schedule; (xiii) our ability to attract and retain property staff, especially seasonal employees; (xiv) ongoing legal matters and related costs; (xv) costs of cleaning up and restoring property operations after storms or other unforeseen events, as well as potential revenue losses; and (xvi) the potential impact of significant deficiencies in financial reporting internal controls, if any. For information regarding these and other factors that may affect the company and the content described in this document, please refer to the documents we have submitted to the U.S. Securities and Exchange Commission, including the 'Risk Factors' and 'Forward-Looking Statements' sections in the most recent 10-K annual report and subsequent 10-Q quarterly reports. These forward-looking statements are based on management's current expectations and judgments about future events. Like any forecasts or estimates, these statements are inherently uncertain and may change as circumstances evolve.Except as required by law, we have no obligation, and we explicitly declare that we have no obligation, to update or modify forward-looking statements due to these changes, new information, subsequent events, or other reasons.

Supplementary financial information

Non-GAAP Financial Indicators

This article contains several indicators not labeled with GAAP that are used by management. We believe these indicators are helpful for understanding the business. We think that when evaluating the operational performance of equity-based REIT, investors should review these non-GAAP indicators in conjunction with the net profit measured by the GAAP criteria, as well as the cash flows from operating, investing, and financing activities. Our definitions and calculation methods for these non-GAAP financial and operational indicators, as well as other terminology, may differ from those used by other REIT, and therefore may not be directly comparable. These non-GAAP financial and operational indicators do not represent the cash flows from operating activities calculated according to the GAAP method, nor do they represent the cash available for distribution. They should not be considered substitutes for GAAP net profit or GAAP cash flows from operating activities, nor do they indicate the funds available to meet cash needs, including the ability to pay cash distributions. For information on the reconciliation and definitions of these non-GAAP indicators with the financial statements prepared in accordance with GAAP, please refer to page 6 “Net Profit and Reconciliation of Non-GAAP Financial Indicators” and pages 16 to 19 “Definitions and Reconciliation of Non-GAAP Financial Indicators”.

Non-GAAP Financial Indicator Definitions and Reconciliation

The following financial indicator definitions that are not GAAP do not include adjustments related to member upgrade revenue: (i) FFO; ( ii ) Normalized FFO; ( iii ) EBITDAre; ( iv ) Adjusted EBITDAre; (v) Property management income; ( vi ) Property management expenses excluding property management; and ( vii ) Property management income excluding property management.

Operating Capital ( FFO )The company defines FFO as the net profit calculated in accordance with GAAP. This figure is obtained after deducting gains and losses from property sales, depreciation and amortization related to real estate, impairment expenses, and adjustments to the company's share of FFO in unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are also calculated on the same basis. The company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). As a result, FFO may not be comparable to FFO reported in other REIT, which may not have defined this term in the same way or may interpret it differently from the company.

The company believes that the FFO defined by the NAREIT Board of Directors is typically an indicator for measuring the performance of equity-based REIT. Although FFO is a relevant and widely used indicator for measuring the operational performance of equity-based REIT, it does not represent the operating cash flow or net profit as defined by GAAP. Therefore, it should not be considered as a substitute for these indicators when assessing liquidity or operational performance.

Standardized operating funds ( Normalized FFO )The company defines Normalized FFO as FFO to exclude non-operating income and expense items, such as gains and losses arising from early debt repayment (including early repayment penalties, debt settlement costs), transaction/transaction-seeking costs, and other items related to the valuation allowance for deferred tax liabilities and their reversal, as well as other miscellaneous non-comparable items. The Normalized FFO listed in this document may not be comparable to the Normalized FFO disclosed by other real estate companies, as not all real estate companies use the same method to calculate this figure.

Allocatable Funds ( FAD )The company defines FAD as Normalized FFO minus capital expenditures that do not generate revenue.

The company believes that FFO, Normalized FFO, and FAD can serve as supplementary indicators to measure the performance of equity-based REIT and are beneficial to investors. The company argues that by excluding the impact of property sale gains and losses, real estate-related depreciation and amortization, and impairment expenses, these items, based on historical cost, have limited relevance when assessing current performance. FFO is helpful for comparing operating performance across different periods and with other equity-based REIT. Furthermore, the company believes that Normalized FFO can provide useful information to investors, analysts, and management, as it allows them to compare the company's operating performance with that of other real estate companies and over different periods on a consistent basis, without having to consider differences unrelated to normal operations. For example, the company believes that excluding early debt repayments and other non-comparable items from FFO helps investors, analysts, and management assess the sustainability of future period performance, as these costs will not affect the future operation of the properties. In some cases, the company provides information on the non-cash components identified in FFO and Normalized FFO, as this aids in their assessment of the impact of these items.

Property management-free property operating incomeThe company defines "property operating income excluding property management" as rental income, membership subscriptions and upgrades sales, utilities, and other revenues, minus the costs of operating and maintaining properties and leased residences, real estate taxes, and membership sales and marketing expenses, but does not include property management fees. Property management refers to expenses related to indirect costs, such as off-site compensation and certain administrative and professional fees. The company believes that excluding property management fees helps investors and analysts measure property operating results, as these fees are not directly related to property operations. For ease of comparison, the company includes bad debt expenses under insurance and other items in both the current and prior periods. The company believes that this non-GAAP financial indicator helps investors and analysts assess property operating results.

The following table adjusts the net profit available to common shareholders with the property operating income:

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for real estate ( EBITDAre ) and adjusted EBITDAreThe company defines EBITDAre as net profit or loss, after deducting interest income and expenses, income tax, depreciation and amortization, gains and losses on the sale of properties, impairment charges, and adjustments to the share of EBITDAre held in unconsolidated joint ventures. The company calculates EBITDAre based on its understanding of the standards defined by NAREIT, which may not be comparable to EBITDAre reported in other REIT. Those reports may not follow the current definition of NAREIT or may interpret this definition in a different manner from the company.

The company defines Adjusted EBITDAre as EBITDAre to exclude non-operating income and expenditure items, such as gains and losses arising from early debt repayment, including early repayment penalties and debt settlement costs, transaction-seeking transaction costs, and other miscellaneous non-comparable items.

The company believes that EBITDAre and Adjusted EBITDAre can help investors assess the company's operational performance and liquidity, as these indicators are widely used to measure the performance of equity-based REIT.

The following table will adjust the net profit in conjunction with EBITDAre and Adjusted EBITDAre.

Core combination or CoreThe core properties include those that the company owns and operates throughout both 2025 and 2026. The company believes that Core is a useful annual comparison indicator for investors, as it eliminates fluctuations caused by acquisitions, dispositions, and significant transactions or special circumstances.

Non-core combinations or Non-CoreNon-core properties in 2026 include those that were not owned and operated by the company throughout both 2025 and 2026. These properties consist of 6 properties in Florida affected by Hurricane Ian, 2 properties in California impacted by storms and flooding events, as well as 7 acquired RVC properties. The 2026 guidelines reflect these non-core properties for 2026, which are those that were not owned and operated by the company throughout 2025 and 2026.

Improvements that do not generate revenueRefers to capital expenditures that do not directly lead to increased revenue or cost savings, mainly including improvements to common areas, as well as upgrades to furniture and mechanical equipment.

Fixed feesFixed expenses include interest expenses, amortization of note premiums, and amortization of debt issuance costs. The fixed expense ratio is calculated by dividing the total fixed expenses of the past 12 months by the sum of fixed expenses and preferred stock dividends (if any) for the same period.

Forward-looking non-GAAP indicatorsThe following table adjusts the net profit per share guidance for fully diluted common stock, as well as the guidance for fully diluted FFO and OP Unit per share, and also the guidance for fully diluted Normalized FFO and OP Unit per share:

This press release contains certain forward-looking information, including core and non-core property operating income from properties that do not include property management, which is not presented in accordance with the GAAP format. Exempt from the requirements of Article S-K Section 10(e)(1)(i)(B), the company has not provided quantitative adjustments for such forward-looking information to the most directly comparable GAAP financial indicators. This is because it is not possible for the company to provide meaningful or accurate calculations or estimates for these adjustment items without undue effort, and the relevant information is not available. Such items include, but are not limited to: (i) planned or implemented rate increases at communities, resorts, and marina sites; (ii) planned or implemented rate increases for annual membership subscription payments; (iii) changes in occupancy rates; (iv) costs of restoring property operations and potential revenue losses after storms or other unanticipated events; and (v) other non-recurring/unplanned income or expense items that may be beyond the company's control, may vary from period to period, and cannot be reasonably predicted. These unadjustable items may have a significant impact on the company's future financial results.