Shares of Equity Lifestyle Properties, Inc. rose more than 3 percent Tuesday as the operator of manufactured home communities, RV resorts and campgrounds reported better-than-expected earnings.
The company’s share price hit a 52-week high of $46.86 at the close of trading on Tuesday.
The company reported a 6 percent increase in normalized funds from operations, a more precise measure of residual cash flow after adjustments. Normalized FFO increased $3.7 million, or 4 cents per common share, to $63.1 million, or 69 cents per common share, compared to $59.4 million, or 65 cents per common share, for the same period in 2013.
Equity Lifestyle is a self-administered, self-managed real estate investment trust headquartered in Chicago with an interest in almost 400 properties in 32 states.
Revenues are being driven by baby boomers and younger retirees who are looking for communities where they can plant roots during retirement, according to Marguerite Nader, president and CEO..
“The new homebuyer we are seeing is a younger retiree buying a home with an average sale price of $68,000,” Nader said in a conference call.
Analysts expect the company to continue its growth.
“We continue to find the [Equity Lifestyle] story attractive, given resilient, steady-state cash flows tied to long-tail housing and consumer recoveries,” according to a research note by Cantor Fitzgerald analysts.
The company recently closed on several acquisitions, including three Northeast RV resorts for $11.8 million last month, and 270 site RV resorts for $6.1 million earlier this month.