Third quarter 2026
Filed Oct 21, 2026ELS Reports Third Quarter Results; Gains in Occupied Sites Support Continued Strong Performance and Preliminary 2027 Rent Growth Assumptions
Normalized FFO per Common Share and OP Unit increased 4.6% to $0.79, Core income from property operations increased 6.7%, and Core property operating expense growth was 1.3%. GAAP net income per Common Share declined 11.1% to $0.45, reflecting a $12.1 million deferred tax valuation allowance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter total revenuesGAAP | $409.9M | – | – |
| Nine months total revenuesGAAP | $1.21B | – | – |
| Third quarter consolidated net incomeGAAP | $89.3M | – | – |
| Nine months consolidated net incomeGAAP | $300.3M | – | – |
| Third quarter net income available for Common StockholdersGAAP | $86.4M | – | – |
| Nine months net income available for Common StockholdersGAAP | $290.6M | – | – |
| Third quarter Net Income per Common Share - Fully DilutedGAAP | $0.45 | – | (11.1)% |
| Nine months Net Income per Common Share - Fully DilutedGAAP | $1.50 | – | 0.6% |
| Third quarter FFO available for Common Stock and OP Unit holdersnon-GAAP | $144.7M | – | – |
| Nine months FFO available for Common Stock and OP Unit holdersnon-GAAP | $465.4M | – | – |
| Third quarter FFO per Common Share and OP Unit - Fully Dilutednon-GAAP | $0.72 | – | (6.1)% |
| Nine months FFO per Common Share and OP Unit - Fully Dilutednon-GAAP | $2.32 | – | 1.3% |
| Third quarter Normalized FFO available for Common Stock and OP Unit holdersnon-GAAP | $157.4M | – | – |
| Nine months Normalized FFO available for Common Stock and OP Unit holdersnon-GAAP | $473.1M | – | – |
| Third quarter Normalized FFO per Common Share and OP Unit - Fully Dilutednon-GAAP | $0.79 | – | 4.6% |
| Nine months Normalized FFO per Common Share and OP Unit - Fully Dilutednon-GAAP | $2.36 | – | 4.0% |
| Third quarter FAD for Common Stock and OP Unit holdersnon-GAAP | $134.4M | – | – |
| Nine months FAD for Common Stock and OP Unit holdersnon-GAAP | $405.2M | – | – |
| Third quarter Adjusted EBITDArenon-GAAP | $192.5M | – | – |
| Nine months Adjusted EBITDArenon-GAAP | $576.2M | – | – |
| Third quarter property operating revenues - Core Portfolionon-GAAP | $374.5M | – | 4.4% |
| Nine months property operating revenues - Core Portfolionon-GAAP | $1.10B | – | 4.3% |
| Third quarter property operating expenses, excluding property management - Core Portfolionon-GAAP | $157M | – | 1.3% |
| Nine months property operating expenses, excluding property management - Core Portfolionon-GAAP | $455.9M | – | 2.0% |
| Third quarter income from property operations, excluding property management - Core Portfolionon-GAAP | $217.5M | – | 6.7% |
| Nine months income from property operations, excluding property management - Core Portfolionon-GAAP | $648.3M | – | 6.0% |
| Third quarter income tax expenseGAAP | −$12.06M | – | – |
| Nine months income tax expenseGAAP | −$12.06M | – | – |
| Third quarter interest and related amortizationGAAP | $34.61M | – | – |
| Nine months interest and related amortizationGAAP | $102.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Core MH base rental income - third quarterOccupied sites increased by 99 and new and used home sales totaled 244 during the quarter ended September 30, 2026. | $198.6M | – | 5.7% |
| Core MH base rental income - nine monthsOccupied sites increased by 166 and new and used home sales totaled 707 during the nine months ended September 30, 2026. | $590.6M | – | 5.7% |
| Core RV and marina base rental income - third quarterCore RV and marina annual base rental income increased 5.3%, while seasonal and transient rental income declined 5.6%. | $113.1M | – | 2.1% |
| Core RV and marina base rental income - nine monthsCore RV and marina annual base rental income increased 5.0%, while seasonal and transient rental income declined 9.3%. | $331.1M | – | 0.8% |
| Core annual membership subscriptions - third quarterAnnual membership subscriptions increased 8.4% compared to the same period in 2025. | $19.1M | – | 8.4% |
| Core annual membership subscriptions - nine monthsAnnual membership subscriptions increased 10.2% compared to the same period in 2025. | $55.7M | – | 10.2% |
| Core rental home income - third quarterRental operations revenues were $10,263 (in thousands), and total occupied rental sites were 2,274 as of September 30, 2026. | $4M | – | 10.4% |
| Non-Core Portfolio property operating revenues - third quarterThe Non-Core Portfolio includes properties not owned and operated during all of 2025 and 2026. | $9.3M | – | – |
| Non-Core Portfolio property operating revenues - nine monthsThe Non-Core Portfolio includes properties not owned and operated during all of 2025 and 2026. | $25.2M | – | – |
Fourth quarter and full year 2026; preliminary 2027 rent growth assumptions outlook
- NoteFourth quarter 2026 Net Income per Common Share: $0.50 to $0.56.
- NoteFull year 2026 Net Income per Common Share: $2.00 to $2.06.
- NoteFourth quarter 2026 FFO per Common Share and OP Unit: $0.78 to $0.84.
- NoteFull year 2026 FFO per Common Share and OP Unit: $3.11 to $3.17.
- NoteFourth quarter 2026 Normalized FFO per Common Share and OP Unit: $0.78 to $0.84.
- NoteFull year 2026 Normalized FFO per Common Share and OP Unit: $3.15 to $3.21.
- NoteFourth quarter 2026 Core MH base rental income growth: 5.4% to 6.0%.
- NoteFull year 2026 Core MH base rental income growth: 5.4% to 6.0%.
- NoteFourth quarter 2026 Core RV and marina base rental income growth: 2.5% to 3.1%.
- NoteFull year 2026 Core RV and marina base rental income growth: 0.9% to 1.5%.
- NoteFourth quarter 2026 Core property operating revenues growth: 4.1% to 4.7%.
- NoteFull year 2026 Core property operating revenues growth: 4.0% to 4.6%.
- NoteFourth quarter 2026 Core property operating expenses, excluding property management, growth: 1.5% to 2.1%.
- NoteFull year 2026 Core property operating expenses, excluding property management, growth: 1.6% to 2.2%.
- NoteFourth quarter and full year 2026 Core income from property operations, excluding property management, growth: 5.7% to 6.3%.
- NoteFull year 2026 Non-Core income from property operations, excluding property management: $8.3 to $12.3.
- NoteFull year 2026 property management and general administrative: $118.9 to $124.9.
- NoteFull year 2026 interest and related amortization: $134.5 to $140.5.
- NotePreliminary 2027 Core MH base rent income growth assumption: approximately 5.1%.
- NotePreliminary 2027 Core RV annual rent income growth assumption: approximately 4.7%.
Capital returns
- Dividends per Common Share: $0.5425 for the quarter ended September 30, 2026.
- Distributions payable: $108,723 (in thousands) as of September 30, 2026.
What drove it
- Core MH base rental income increased 5.7% in both the third quarter and nine-month period.
- Core RV and marina annual base rental income increased 5.3% in the third quarter and 5.0% for the nine months ended September 30, 2026.
- Core annual membership subscriptions increased 8.4% in the third quarter and 10.2% for the nine months ended September 30, 2026.
- Core property operating expenses, excluding property management, increased 1.3% in the third quarter, below 4.4% Core property operating revenue growth.
- Core occupied MH sites ended the quarter at 68,810, compared with 68,716 as of September 30, 2025.
- Monthly base average rent per Core MH site was $963, compared with $912 in the prior-year quarter.
Concerns
- Net Income per Common Share declined 11.1% to $0.45 in the third quarter.
- The quarter included a $12.1 million deferred tax valuation allowance.
- Core RV and marina base rental income growth was 2.1% in the third quarter and 0.8% for the nine months ended September 30, 2026.
- Core seasonal and transient RV and marina base rental income declined 5.6% in the third quarter and 9.3% for the nine months ended September 30, 2026.
- Core MH occupancy average was 93.8 %, compared with 94.3 % in the third quarter of 2025.
- Interest and related amortization increased to $34,607 (in thousands) from $33,659 (in thousands) in the third quarter.
What to watch
- Fourth quarter delivery against Normalized FFO per Common Share and OP Unit guidance of $0.78 to $0.84.
- Execution against full-year Core RV and marina base rental income growth guidance of 0.9% to 1.5%.
- The effect of preliminary 2027 Core MH base rent income growth of approximately 5.1% and Core RV annual rent income growth of approximately 4.7%.
- Occupied-site trends after the third-quarter increase of 99 Core MH occupied sites.
- The performance of seasonal and transient RV and marina rental income relative to annual RV and marina rental income.
- Expense control relative to fourth-quarter Core property operating expense growth guidance of 1.5% to 2.1%.
Balance sheet and cash flow
- Cash and restricted cash: $24,334 (in thousands) as of September 30, 2026; $26,132 (in thousands) as of December 31, 2025.
- Total assets: $5,765,006 (in thousands) as of September 30, 2026; $5,745,393 (in thousands) as of December 31, 2025.
- Total liabilities: $3,958,865 (in thousands) as of September 30, 2026; $3,930,567 (in thousands) as of December 31, 2025.
- Mortgage notes payable, net: $2,731,331 (in thousands) as of September 30, 2026.
- Term loans, net: $438,067 (in thousands) as of September 30, 2026.
- Unsecured line of credit: $138,000 (in thousands) as of September 30, 2026.
- Total debt: $3,329 million as of September 30, 2026.
- Total debt / total market capitalization: 22.2 % as of September 30, 2026.
- Total debt / Adjusted EBITDAre: 4.3 as of September 30, 2026.
- Interest coverage: 5.7 as of September 30, 2026.
- Fixed charges: 5.6 as of September 30, 2026.
- FAD for Common Stock and OP Unit holders: $134.4 million for the third quarter and $405,157 (in thousands) for the nine months ended September 30, 2026.
- Non-revenue producing improvements to real estate: $(23.0) million for the third quarter and $(67,909) (in thousands) for the nine months ended September 30, 2026.
Analysis
ELS reported third-quarter Normalized FFO per Common Share and OP Unit of $0.79, up 4.6% from $0.75 in the prior-year quarter and consistent with the midpoint of its previous guidance range of $0.76 to $0.82. Third-quarter FFO per Common Share and OP Unit was $0.72, down from $0.77, while Net Income per Common Share was $0.45, down from $0.50. The company recorded a $12.1 million deferred tax valuation allowance during the quarter, which was included in income tax expense and separated in the reconciliation from FFO to Normalized FFO.
Core property operations showed positive revenue and expense spread. Core property operating revenues increased 4.4% to $374.5 million, while Core property operating expenses, excluding property management, increased 1.3% to $157.0 million. This supported a 6.7% increase in Core income from property operations, excluding property management, to $217.5 million. For the nine-month period, Core revenues rose 4.3%, Core operating expenses rose 2.0%, and Core income from property operations increased 6.0% to $648.3 million.
Manufactured housing remained the principal source of operating growth. Core MH base rental income rose 5.7% to $198.6 million in the quarter, supported by an increase of 99 occupied sites and a monthly base average rent per site of $963, compared with $912 in the prior-year quarter. Core RV and marina base rental income increased 2.1% to $113.1 million. Annual RV and marina base rental income increased 5.3%, but seasonal and transient income declined 5.6%, limiting total RV and marina growth. Annual membership subscriptions increased 8.4% to $19.1 million.
Liquidity and leverage metrics were reported alongside a modest decline in cash. Cash and restricted cash were $24,334 (in thousands) at September 30, 2026, compared with $26,132 (in thousands) at December 31, 2025. Total debt was $3,329 million, total debt to total market capitalization was 22.2 %, and total debt to Adjusted EBITDAre was 4.3. The company reported third-quarter FAD of $134.4 million and dividends per Common Share of $0.5425.
Management narrowed full-year 2026 ranges after nine months of actual results and maintained the full-year Normalized FFO midpoint at $3.18. Full-year Normalized FFO per Common Share and OP Unit guidance is $3.15 to $3.21, while fourth-quarter guidance is $0.78 to $0.84. The updated full-year Core RV and marina base rental income growth midpoint is 1.2%, below the prior guidance midpoint of 1.6%, while the stated midpoint for Core MH base rental income remains 5.7% and the midpoint for Core income from property operations remains 6.0%. Preliminary 2027 assumptions call for approximately 5.1% Core MH base rent income growth and approximately 4.7% Core RV annual rent income growth.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income was not reported as a line item.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A tax rate was not reported.
- Named executive commentary or named executive quotes were not provided.
- Prior guidance comparison is not provided because the previous release outlook was not supplied separately.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.