UBS Sees 9%–11% REIT Returns in 2026, Trims Equity LifeStyle (ELS) Price Target

Company Overview - Equity LifeStyle Properties, Inc. (NYSE:ELS) is a self-managed REIT focused on lifestyle-oriented real estate, including manufactured home (MH) and recreational vehicle (RV) communities, as well as marinas. The company generates revenue through property operations and home sales and rental activity [5]. Investment Insights - UBS has cut its price target for Equity LifeStyle from $77 to $67 while maintaining a Buy rating on the stock, indicating a cautious outlook despite the positive rating [2]. - UBS anticipates total returns for REITs in 2026 to be around 9%–11%, driven by improving macro conditions, attractive valuations, easing supply pressures, and a more stable political environment. The firm expects a two-speed year for the sector, with defensive conditions in the first half and stronger growth in the second half [3]. Operational Performance - As of September 30, Equity LifeStyle held interests in 455 properties across 35 US states and British Columbia, representing a total of 173,341 sites. The company reported a 0.5% year-over-year increase in core property operating expenses (excluding property management) for the quarter ended September 30, 2025, which was below prior guidance [4].