Barclays has started coverage on Equity LifeStyle Properties (NYSE: ELS) with an Equal Weight rating and a price target of $70. The bank’s view reflects cautious optimism about the company’s future. The stable performance of ELS’s manufactured housing and recreational vehicle business forms the foundation for this outlook.
Barclays joins other analysts who have a generally positive view of the company. The average rating from analysts stands at 1.87, which indicates a “Buy” consensus. ELS has shown consistent financial strength, backed by a gross profit margin of 53% and moderate debt levels, according to InvestingPro data.
However, the bank has also flagged short-term risks in the company’s Non-Core business segments. These include campground memberships, home sales, and net operating income from expansions and developments. Although these areas are expected to support funds from operations growth in 2026 and 2027, they face some challenges in the near term.
Despite this, ELS stands out for its reliable dividend history. The company has paid dividends for 33 consecutive years and raised them for 19 years in a row. While the firm has not made major acquisitions recently, it still has the financial ability to do so, offering flexibility for future growth.
Barclays believes that by 2026, the non-core operations will stabilize after previous year-over-year declines. For that year, no revenue growth is expected in RV transient or seasonal operations, but a small rebound is forecast for 2027. Increases are also predicted for campground memberships, home sales, and expansion completions during this period.
Investors may find this positive, but Barclays notes that a few more quarters of stable results would help build more confidence in the growth story. Until then, the rating remains neutral, though steady earnings and balance sheet strength support a stable outlook.
In the company’s first-quarter earnings report for 2025, ELS posted better-than-expected results. The firm reported earnings per share of $0.57, higher than the $0.55 expected. Revenue also beat estimates, reaching $387.3 million compared to a forecast of $335.83 million. Despite the strong numbers, the stock dipped 1.18% in after-hours trading.
During the earnings call, concerns were raised about recent hurricanes and their impact on site availability. Management said recovery efforts will likely continue into 2026. The company also addressed questions about its exposure to Canadian RV customers, which represent about 10% of RV revenue. No significant changes are expected in that area.
Another positive sign was the renewal of its property and casualty insurance program. ELS achieved a 6% reduction in premiums compared to the previous year, with no change to coverage or deductibles.
For the full year, ELS projects normalized funds from operations of $3.06 per share. It also expects core property operating income to grow by 5 percent, showing the company’s focus on gradual, steady expansion.
The new Barclays report suggests that ELS remains a stable option for long-term investors. While there are challenges ahead, particularly in non-core operations, the company’s reliable core income and disciplined financial management offer reassurance. The focus now shifts to how well ELS can execute its strategy over the next few quarters.
