Morgan Stanley initiates coverage on Equity LifeStyle Properties stock with Equalweight rating
Investing.com
Published Jul 15, 2025 05:21AM ET
Investing.com - Morgan Stanley initiated coverage on Equity LifeStyle Properties (NYSE:ELS) with an Equalweight rating and a price target of $67.50. The $12.4 billion market cap REIT currently trades near InvestingPro 's Fair Value estimate, with analyst targets ranging from $67 to $82.
The firm projects Core Income from Property Operations (excluding property management) growth for ELS at 5.6%, 4.5%, and 4.7% year-over-year in 2025, 2026, and 2027, respectively. The company has maintained a strong dividend track record, having raised dividends for 19 consecutive years, with a current yield of 3.33%.
Morgan Stanley notes this solid mid-single-digit internal growth combines with modest external growth due to tight cap rates for high-quality manufactured housing assets, leading to FFO and AFFO per share growth for ELS of approximately 4.5% in 2025-2027.
The research indicates manufactured housing REITs are expected to have lower FFO growth than the broader REIT group in 2025 and 2026, after underperforming in 2024.
For context, Morgan Stanley also covers Sun Communities (NYSE:SUI) in the same sector, projecting North America Same Property NOI growth of 3.4%, 5.7%, and 5.8% year-over-year in 2025, 2026, and 2027.
In other recent news, Equity LifeStyle Properties reported impressive first-quarter 2025 earnings, beating analysts' expectations with an earnings per share (EPS) of $0.57 compared to the forecasted $0.55. The company's revenue also exceeded projections, reaching $387.3 million against an anticipated $335.83 million. Despite these strong financial results, Barclays initiated coverage on Equity LifeStyle Properties with an Equal Weight rating and a price target of $70, citing stability in the core business but cautioning about risks in the Non-Core segments. These segments, including Camping Memberships and Home Sales, are expected to contribute to growth in Funds From Operations (FFO) by 2026 and 2027. Equity LifeStyle's core portfolio net operating income (NOI) grew by 3.8%, while core community-based rental income increased by 5.5%. The company maintains a robust balance sheet, with long debt maturity and limited exposure to refinance risk. Looking ahead, Equity LifeStyle forecasts a full-year normalized FFO of $3.06 per share and anticipates modest growth in its core property operating income. The company also projects growth in manufactured home and RV rent, albeit with some challenges due to hurricane impacts and Canadian RV customer exposure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.