Manufactured Housing REITs (ELS, SUI): COLA Adjustment A Positive

The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, up 80 bps y/y from 2.8% in 2026 and the highest since 2023. It may have already been anticipated, with The Senior Citizens League predicting COLA at 3.5% as of 9/11/26, though ELS and SUI outperformed in trading on 10/14. COLA is based on the change in average CPI-W for July-Sept 2026 vs. the same period in 2025, takes effect with Jan-27 benefits, and should add ~$75/month (~$900 annualized) to the average retirement benefit. We think a higher COLA is modestly positive for MH rent growth, particularly at ELS, where >70% of MH properties are age-qualified or have an avg resident age >55;