The famous American real estate investor Sam Zell is the chairman of Equity LifeStyle Properties. The company is a REIT focused on RV homes and manufactured housing. The pandemic led many full-time RV users to look for a place to shelter amid lockdowns and government guidelines. Equity LifeStyle Properties employs over 4000 people as full-time, part-time, and contract workers. Manufactured homes, as a market, is also in a growth phase. Therefore, if you are looking for long term residential stock picks, then Equity LifeStyle Properties could be one option that warrants further research. Interestingly, occupancy rates at Equity LifeStyle’s manufactured home communities have increased for 11 consecutive years. Lastly, dividend payouts are an important metric for any REIT. For Equity Lifestyle, dividends have increased at a CAGR of 13% over a 5-year period.
Equity LifeStyle Reports Strong Q22021 Numbers
On 19th July 2021, Equity LifeStyle Properties reported strong financial numbers for the second quarter of 2021. Total revenue went up from $254 million in Q22020 to $317.4 million. Total consolidated income also went up from $48.8 million to $64 million. Funds from operations, an important metric reported by REITs, went up from $89.5 million in Q22020 to $117.5 million. Lastly, the funds from operations per unit of diluted shares went up from $0.47 to $0.61. The company management shared that the demand for manufactured homes and RV homes was very strong. The revenue numbers had exceeded their expectations. If you are looking for a residential stock 2021 to invest in, then Equity LifeStyle Properties seems like a promising candidate.
Long Term Residential Stock
The pandemic may have caused certain behavioral changes which could sustain over the longer term. In the domain of travel and leisure, it is now expected that more people will indulge in RV trips and experience the outdoors. Such trends bode well for Equity LifeStyle Properties. The positive trend in terms of the growing demand for manufactured housing is also a longer-term phenomenon.