Morgan Stanley Starts Coverage of Equity LifeStyle Properties (ELS) with an Equal Weight Rating

Equity LifeStyle Properties, Inc. (NYSE:ELS) is one of the best residential REITs to buy. On July 15, Morgan Stanley began coverage of ELS with an Equal Weight rating and assigned a price target of $67.5.

The firm anticipates year-over-year growth in Core Income from Property Operations for ELS at 5.6% in 2025, 4.5% in 2026, and 4.7% in 2027. The company also maintains a robust track record of shareholder returns, with 19 years of consistent dividend increases.

Morgan Stanley added that ELS is positioned for steady growth, with steady mid-single digit gains from internal operations and moderate external expansion, given tight cap rates on premium manufactured housing assets. Together, these factors are expected to support around 4.5% annual growth in FFO and AFFO per share from 2025 to 2027.

Research indicates that manufactured housing REITs are expected to lag the broader REIT sector in FFO growth through 2025 and 2026, following a weak 2024.

Equity LifeStyle Properties, Inc. (NYSE:ELS) is an American operator of manufactured home communities, RV resorts, and campgrounds in North America, offering a range of housing and recreational options in high-demand locations to meet diverse customer needs.

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