Equity LifeStyle Properties ($ELS) Earnings (Q3 FY22)

 Equity LifeStyle Properties ($ELS) Earnings and Opinion:


Equity LifeStyle Properties is a company in the Real Estate sector and operates in the REIT-Residential industry. The company is a self-administered, self-managed real estate investment trust (REIT). The company is headquartered in Chicago, Illinois and made its debut on the stock market in 1993.

Equity LifeStyle Properties Financial Results:

  • Revenue of $381M beating expectations of $315.6M
  • Adj EBITDA of $166.41M beating expectations of $158.11M
  • Net Income of $67.16M missing expectations of $72.77M
  • Normalized FFO per share of $0.70 beating expectations of $0.69
Opinion: 
Equity LifeStyle Properties has failed to find direction in the after hours. The company reported earnings after the market closed this afternoon. The stock traded up, over 4%, during todays trading session. The company cut its FFO per share guidance for the year. Equity LifeStyle Properties had 60% of its Florida Portfolio destroyed in the recent hurricane. They reported beats on earnings, despite the damage. They decided to support a $3.7M in reduction to those assets to restore the damages. The main reason they pulled the guidance was due to the fact that they can't determine the exact effect of the hurricane damages. They do not want to mislead investors by giving them information that will become incorrect in the future. Overall, the financials were good for the company. Revenue saw a pretty nice beat and the FFO per share was also a nice beat. Net Income did miss again, but it will be interesting to see how this pans out with future earnings reports. As far as valuation goes, the company seems to be a little overvalued at the moment. The FFO is at 2.52, which is less than the 4.34 median. The dividends are on the low side compared to peers. In my opinion, I think some tough times linger for this company. With the damage done in Florida, we may see some downside with ELS. I will continually look to follow them and keep track of future earnings to see if we can snipe them at a lower valuation. Until we get some clarity in damages from hurricanes, I would definitely stay out of this one. 

*Information from Bloomberg and Yahoo Finance

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