The youth are fueling Sam Zell’s outdoor home rental business

Equity Lifestyles Property REIT reported strong end-of-year earnings

TRD NATIONAL /
Jan.January 28, 2020 03:30 PM
Sam Zell (Credit: Studio Scrivo, iStock)

Sam Zell (Credit: Studio Scrivo, iStock)

Younger generations are boosting the bottom line for Sam Zell’s #vanlife business.

To date, baby boomers have been the core customer base for Equity Lifestyle Properties, Zell’s Chicago-based real estate investment trust for RV parks, mobile and manufactured multifamily homes. But that’s changing.

“Over the past five years, there has been a steady increase in Gen X and Millennial campers,” Equity Lifestyle Properties president and CEO Marguerite Nader said Tuesday during the company’s fourth quarter 2019 earnings call. “The popularity of the outdoor lifestyle, an increase in younger RV buyers, and new unique accommodations in our properties, including renting a tiny house or cabin, should continue to contribute to growing demand for our offering.”

The company wrapped up 2019 with more than $1 billion in total revenue, a 5.1 percent increase from the previous year’s $986.7 million. Throughout the year, net income for common stockholders increased by $66.5 million, or 35 cents per common share, to $279.1 million. That compared to $212.6 million for the same period in 2018. Zell’s real estate investment trust began the year trading around $50 a share, but ended at $70 a share and beat Wall Street’s estimates in the fourth quarter.

The firm’s RV resorts, including the nationwide Thousand Trails portfolio, saw a 6 percent overall growth and income in 2019. It’s a positive sign for Zell’s overall portfolio, since many economists believe a slow RV market is a predictor of an economic downturn.

During the fourth quarter of 2019, total revenue at Equity Lifestyle increased to $258.6 million, compared to $243.5 million for the same period in 2018. Net income for common stockholders increased by $4.8 million, or 2 cents per common share, to $55 million, compared to $50.2 million for the same period in 2018.

Operating costs and real estate taxes ticked up $2 million higher than anticipated, largely from real estate taxes in Florida, which sends tax bills for the full year in the fourth quarter.

In August 2018, the stock price for Equity Lifestyle hit $95, outpacing Zell’s apartment and office management REITs, including Equity Residential.


Related Articles

arrow_forward_ios
Columbia Property Trust CEO & President E. Nelson Mills and 101 Franklin Street (Credit: Google Maps)

Columbia Property Trust reports strong leasing activity in Q4 but stock edges down

Town & Country Crossing in Town & Country, MO; The Crossroads in Royal Palm Beach, FL; and Mission Bay Plaze in Boca Raton, FL

Here’s why open-air strip centers are outperforming enclosed malls

Warehouse owners performed the best, while mall owners continued to struggle (Credit: iStock, Pixabay)

Real estate stocks see best returns in 5 years, but trail S&P

Gary A. Shiffman and Prologis CEO Hamid R. Moghadam (Credit: Prologis)

Here’s why “Steady-Eddie” REITs are having a standout 2019

Daily Digest Thursday

Worker killed at Lam Group construction site, Uber signs WTC lease: Daily digest

From left: A rendering of 425 Park Avenue, iStar CEO Jay Sugarman, and Nuveen managing director Nadir Settles (Credit: rendering via L&L Holding/Sugarman by Emily Assiran/Settles via Nuveen)

iStar-managed REIT signs $620M contract to buy ground lease at L&L’s 425 Park

(Credit: iStock and chart via MarketWatch)

Stock indexes hit records as market anticipates rate cut. Here’s what that means for real estate

Simon Property Group World Headquarters in Indianapolis (Credit: iStock)

REITs are embracing risk

arrow_forward_ios
Loading...