Business Wire | Oct 18, 2021 04:16PM EDT

ELS Reports Third Quarter Results

Oct. 18, 2021

CHICAGO--(BUSINESS WIRE)--Oct. 18, 2021--Equity LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as "we," "us," and "our") today announced results for the quarter and nine months ended September 30, 2021. All per share results are reported on a fully diluted basis unless otherwise noted.

Financial Results for the Quarter and Nine Months Ended September 30, 2021

For the quarter ended September 30, 2021, total revenues increased $47.9 million, or 16.8 percent, to $332.9 million compared to $285.0 million for the same period in 2020. For the quarter ended September 30, 2021, net income available for Common Stockholders increased $20.0 million, or $0.10 per Common Share, to $70.6 million, or $0.38 per Common Share, compared to $50.6 million, or $0.28 per Common Share, for the same period in 2020.

For the nine months ended September 30, 2021, total revenues increased $126.8 million, or 15.5 percent, to $946.4 million compared to $819.6 million for the same period in 2020. For the nine months ended September 30, 2021, net income available for Common Stockholders increased $33.3 million, or $0.18 per Common Share, to $196.9 million, or $1.08 per Common Share, compared to $163.6 million, or $0.90 per Common Share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended September 30, 2021, Funds from Operations ("FFO") available for Common Stock and OP Unit holders increased $28.7 million, or $0.15 per Common Share, to $124.5 million, or $0.65 per Common Share, compared to $95.8 million, or $0.50 per Common Share, for the same period in 2020. For the nine months ended September 30, 2021, FFO available for Common Stock and OP Unit holders increased $65.0 million, or $0.33 per Common Share, to $362.6 million, or $1.88 per Common Share, compared to $297.6 million, or $1.55 per Common Share, for the same period in 2020.

For the quarter ended September 30, 2021, Normalized Funds from Operations ("Normalized FFO") available for Common Stock and OP Unit holders increased $19.0 million, or $0.10 per Common Share, to $124.5 million, or $0.65 per Common Share, compared to $105.5 million, or $0.55 per Common Share, for the same period in 2020. For the nine months ended September 30, 2021, Normalized FFO available for Common Stock and OP Unit holders increased $55.6 million, or $0.29 per Common Share, to $365.4 million, or $1.90 per Common Share, compared to $309.8 million, or $1.61 per Common Share, for the same period in 2020.

For the quarter ended September 30, 2021, property operating revenues, excluding deferrals, increased $35.8 million to $308.7 million, compared to $272.9 million for the same period in 2020. For the nine months ended September 30, 2021, property operating revenues, excluding deferrals, increased $99.6 million to $889.1 million, compared to $789.5 million for the same period in 2020. For the quarter ended September 30, 2021, income from property operations, excluding deferrals and property management, increased $22.2 million to $172.8 million, compared to $150.6 million for the same period in 2020. For the nine months ended September 30, 2021, income from property operations, excluding deferrals and property management, increased $55.7 million to $509.6 million, compared to $453.9 million for the same period in 2020.

For the quarter ended September 30, 2021, Core property operating revenues, excluding deferrals, increased approximately 8.5 percent and Core income from property operations, excluding deferrals and property management, increased approximately 10.7 percent compared to the same period in 2020. For the nine months ended September 30, 2021, Core property operating revenues, excluding deferrals, increased approximately 8.5 percent and Core income from property operations, excluding deferrals and property management, increased approximately 9.0 percent compared to the same period in 2020.

Business Updates

Page 1 of this Earnings Release and Supplemental Financial Information provides an update on operations and guidance.

Investment Activity

In August 2021, we acquired a portion of Pirateland Camping Resort located in Myrtle Beach, South Carolina for $110.8 million. Pirateland is a 1,484 site RV community, and the ELS parcel contains 813 sites and approximately 1,800 feet of waterfront. Pirateland, including the ELS parcel, is managed by a tenant pursuant to existing ground leases. The ground lease with respect to the ELS parcel expires in February 2025. The acquisition was funded with proceeds from our unsecured line of credit.

As part of our strategy to expand owned communities with additional developed sites, in September 2021, we completed the acquisition of a parcel of land adjacent to one of our properties in Nokomis, Florida for a purchase price of $10.4 million, which was funded with available cash.

On October 14, 2021, we acquired our joint venture partner's 50% interest in Voyager RV Resort. The purchase price to acquire our partner's interest consisted of debt assumption of $20.1 million and $35.2 million payment primarily comprised of Operating Partnership units and the remainder in cash. Upon closing the acquisition, we became the resort's sole owner. Voyager, located in Tucson, AZ, is a resort with 1,801 sites of which 1,576 are RV and 225 are MH. The resort was recently awarded the Mega Park of the Year Award by the Arizona Association of RV Parks and Campgrounds. This marks the third time since 2014 the resort has been honored with this award.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago. As of October 18, 2021, we own or have an interest in 436 quality properties in 33 states and British Columbia consisting of 167,123 sites.

For additional information, please contact our Investor Relations Department at (800) 247-5279 or at investor_relations@equitylifestyle.com.

Conference Call

A live webcast of our conference call discussing these results will take place tomorrow, Tuesday, October 19, 2021, at 10:00 a.m. Central Time. Please visit the Investor Relations section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.

Forward-Looking Statements

In addition to historical information, this press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used, words such as "anticipate," "expect," "believe," "project," "intend," "may be" and "will be" and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements and may include without limitation, information regarding our expectations, goals or intentions regarding the future, and the expected effect of our acquisitions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:

* our ability to control costs and real estate market conditions, our ability to retain customers, the actual use of sites by customers and our success in acquiring new customers at our properties (including those that we may acquire); * our ability to maintain historical or increase future rental rates and occupancy with respect to properties currently owned or that we may acquire; * our ability to attract and retain customers entering, renewing and upgrading membership subscriptions; * our assumptions about rental and home sales markets; * our assumptions and guidance concerning 2021 growth rates and Net Income and Normalized FFO per share data and our preliminary guidance on Core MH and Core RV annual rate growth for 2022; * our ability to manage counterparty risk; * our ability to renew our insurance policies at existing rates and on consistent terms; * in the age-qualified properties, home sales results could be impacted by the ability of potential home buyers to sell their existing residences as well as by financial, credit and capital markets volatility; * results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; * impact of government intervention to stabilize site-built single-family housing and not manufactured housing; * effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions; * the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto; * unanticipated costs or unforeseen liabilities associated with recent acquisitions; * our ability to obtain financing or refinance existing debt on favorable terms or at all; * the effect of interest rates; * the effect from any breach of our, or any of our vendors', data management systems; * the dilutive effects of issuing additional securities; * the outcome of pending or future lawsuits or actions brought by or against us, including those disclosed in our filings with the Securities and Exchange Commission; and * other risks indicated from time to time in our filings with the Securities and Exchange Commission.

Our guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2021 and preliminary 2022 guidance include, but are not limited to the following: (i) the mix of site usage within the portfolio; (ii) yield management on our short-term resort and marina sites; (iii) scheduled or implemented rate increases on community, resort and marina sites; (iv) scheduled or implemented rate increases in annual payments under membership subscriptions; (v) occupancy changes; (vi) our ability to attract and retain membership customers; (vii) our ability to integrate and operate recent acquisitions in accordance with our estimates; (viii) completion of pending transactions in their entirety and on assumed schedule; (ix) ongoing legal matters and related fees; and (x) costs to restore property operations and potential revenue losses following storms or other unplanned events. In addition, these forward-looking statements, including our 2021 and preliminary 2022 guidance are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers, and employees in particular, its impact on the employment rate and the economy, the extent and impact of governmental responses, and the impact of operational changes we have implemented and may implement in response to the pandemic.

For further information on these and other factors that could impact us and the statements contained herein, refer to our filings with the Securities and Exchange Commission, including the "Risk Factors" section in our most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q.

These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.

Supplemental Financial Information

Operations and Guidance Update

We have continued our strong performance in 2021, as marked by these key operational and financial accomplishments:

* Normalized FFO per common share on a fully diluted basis was $0.65 for the quarter ended September 30, 2021, 18% higher than the quarter ended September 30, 2020. * Core Portfolio generated growth of 11% in income from property operations, excluding deferrals and property management, for the third quarter of 2021 compared to the quarter ended September 30, 2020. * MH occupancy within our Core Portfolio increased by 60 sites during the quarter ended September 30, 2021 from the quarter ended June 30, 2021. * Membership sales and expenses, consisting of membership upgrade sales and expenses, as well as commissions on camping and Trails Collection passes, contributed $3.6 million for the quarter ended September 30, 2021, an increase of $2.0 million, or 129%, compared to the quarter ended September 30, 2020. * New home sales of 338 for the quarter ended September 30, 2021 represents the highest quarterly new home sales volume in ELS history. * All properties continue to be open subject to seasons of operation and state and local guidelines.

4th Quarter and 2021 Full Year Guidance (1)

4th Full Quarter Year

Core MH rate growth 4.2% 4.2%

Core RV Annual rate growth 4.4% 4.2%

Core Income from property operations, excluding 6.5% to 8.1% todeferrals and property management growth rate 7.1% 8.7%

Net Income/share $0.32 to $1.40 to $0.38 $1.46

Normalized FFO/share $0.57 to $2.47 to $0.63 $2.53

Preliminary 2022 rent rate growth assumptions

* By October month-end, we will have sent 2022 rent increase notices to 48% of our MH residents. The average rent increase of these notices support our preliminary expectations for 2022 Core MH rate growth of 4.6%-4.8%.(1) * We have set RV annual rates for the 2022 season for 95% of our annual sites. These rates support our preliminary expectations for 2022 Core RV annual rate growth of 4.9%-5.1%.(1)

_______________________

Core MH and RV Annual rate growth estimates for 2021 represent management's estimate of the most likely outcome. Fourth quarter and full year 2021 guidance ranges represent a range of possible outcomes and the midpoint reflects management's estimate of the most likely outcome. Actual growth^ rates and per share amounts could vary materially from growth rates and per(1) share amounts presented above if any of our assumptions, including occupancy and rate changes, our ability to integrate and operate recent acquisitions and costs to restore property operations and potential revenue losses following storms or other unplanned events, is incorrect. See Forward-Looking Statements in this release for additional factors impacting our 2021 guidance assumptions.

Investor Information

Equity Research Coverage (1)

Bank of America Securities

Barclays

Berenberg Bank

Jeffrey Spector/ Joshua Dennerlein

Anthony Powell

Keegan Carl

BMO Capital Markets

Citi Research

Colliers Securities

John Kim

Michael Bilerman/ Nick Joseph

David Toti

Evercore ISI

Green Street Advisors

RBC Capital Markets

Steve Sakwa/ Samir Khanal

John Pawlowski

Brad Heffern

Robert W. Baird & Company

UBS

Wes Golladay

Michael Goldsmith

Investor Information

Equity Research Coverage^ (1)

Bank of America Securities Barclays Berenberg Bank

Jeffrey Spector/ Joshua Anthony Powell Keegan CarlDennerlein



BMO Capital Markets Citi Research Colliers Securities

John Kim Michael Bilerman/ Nick David Toti Joseph



Evercore ISI Green Street Advisors RBC Capital Markets

Steve Sakwa/ Samir Khanal John Pawlowski Brad Heffern



Robert W. Baird & Company UBS

Wes Golladay Michael Goldsmith

______________________1.Any opinions, estimates or forecasts regarding our performance made by these analysts or agencies do not represent our opinions, forecasts or predictions. We do not, by reference to these firms, imply our endorsement of or concurrence with such information, conclusions or recommendations.

______________________ Any opinions, estimates or forecasts regarding our performance made by these analysts or agencies do not represent our opinions, forecasts or1. predictions. We do not, by reference to these firms, imply our endorsement of or concurrence with such information, conclusions or recommendations.

Financial Highlights

(In millions, except Common Shares and OP Units outstanding and per share data, unaudited)

As of and for the Three Months Ended

Sept 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sept 30, 2020

Operating Information

Total revenues

$

332.9

$

317.4

$

296.0

$

271.9

$

285.0

Net income

$

74.1

$

64.1

$

69.0

$

68.4

$

53.5

Net income available for Common Stockholders

$

70.6

$

61.1

$

65.2

$

64.6

$

50.6

Adjusted EBITDAre (1)

$

150.8

$

144.6

$

147.9

$

133.1

$

129.7

FFO available for Common Stock and OP Unit holders (1)(2)

$

124.5

$

117.6

$

120.6

$

108.9

$

95.8

Normalized FFO available for Common Stock and OP Unit holders (1)(2)

$

124.5

$

118.3

$

122.6

$

108.9

$

105.5

Funds Available for Distribution ("FAD") for Common Stock and OP Unit holders (1)(2)

$

106.1

$

99.0

$

111.0

$

91.1

$

90.0

Common Shares and OP Units Outstanding (In thousands) and Per Share Data

Common Shares and OP Units, end of the period

192,852

192,847

192,779

192,710

192,704

Weighted average Common Shares and OP Units outstanding - Fully Diluted

192,736

192,701

192,685

192,578

192,537

Net income per Common Share - Fully Diluted (3)

$

0.38

$

0.33

$

0.36

$

0.35

$

0.28

FFO per Common Share and OP Unit - Fully Diluted

$

0.65

$

0.61

$

0.63

$

0.57

$

0.50

Normalized FFO per Common Share and OP Unit - Fully Diluted

$

0.65

$

0.61

$

0.64

$

0.57

$

0.55

Dividends per Common Share

$

0.3625

$

0.3625

$

0.3625

$

0.3425

$

0.3425

Balance Sheet

Total assets

$

4,982

$

4,824

$

4,786

$

4,419

$

4,260

Total liabilities

$

3,673

$

3,522

$

3,481

$

3,114

$

2,961

Market Capitalization

Total debt (4)

$

3,154

$

3,010

$

3,012

$

2,695

$

2,529

Total market capitalization (5)

$

18,216

$

17,340

$

15,280

$

14,905

$

14,342

Ratios

Total debt / total market capitalization

17.3

%

17.4

%

19.7

%

18.1

%

17.6

%

Total debt / Adjusted EBITDAre (6)

5.5

5.4

5.7

5.2

5.0

Interest coverage (7)

5.5

5.4

5.2

5.1

4.9

Fixed charges(8)

5.4

5.3

5.1

5.0

4.9

Financial Highlights

(In millions, except Common Shares and OP Units outstanding and per share data,unaudited)

As of and for the Three Months Ended

Sept 30, Jun 30, Mar 31, Dec 31, Sept 30, 2021 2021 2021 2020 2020

Operating Information

Total revenues $ 332.9 $ 317.4 $ 296.0 $ 271.9 $ 285.0

Net income $ 74.1 $ 64.1 $ 69.0 $ 68.4 $ 53.5

Net income available for $ 70.6 $ 61.1 $ 65.2 $ 64.6 $ 50.6 Common Stockholders

Adjusted EBITDAre ^(1) $ 150.8 $ 144.6 $ 147.9 $ 133.1 $ 129.7

FFO available for CommonStock and OP Unit $ 124.5 $ 117.6 $ 120.6 $ 108.9 $ 95.8 holders ^(1)(2)

Normalized FFO availablefor Common Stock and OP $ 124.5 $ 118.3 $ 122.6 $ 108.9 $ 105.5 Unit holders ^(1)(2)

Funds Available forDistribution ("FAD") for $ 106.1 $ 99.0 $ 111.0 $ 91.1 $ 90.0 Common Stock and OP Unitholders ^(1)(2)



Common Shares and OPUnits Outstanding (In thousands) and Per ShareData

Common Shares and OP 192,852 192,847 192,779 192,710 192,704 Units, end of the period

Weighted average CommonShares and OP Units 192,736 192,701 192,685 192,578 192,537 outstanding - FullyDiluted

Net income per CommonShare - Fully Diluted^ $ 0.38 $ 0.33 $ 0.36 $ 0.35 $ 0.28 (3)

FFO per Common Share and $ 0.65 $ 0.61 $ 0.63 $ 0.57 $ 0.50 OP Unit - Fully Diluted

Normalized FFO perCommon Share and OP Unit $ 0.65 $ 0.61 $ 0.64 $ 0.57 $ 0.55 - Fully Diluted

Dividends per Common $ 0.3625 $ 0.3625 $ 0.3625 $ 0.3425 $ 0.3425 Share



Balance Sheet

Total assets $ 4,982 $ 4,824 $ 4,786 $ 4,419 $ 4,260

Total liabilities $ 3,673 $ 3,522 $ 3,481 $ 3,114 $ 2,961



Market Capitalization

Total debt ^(4) $ 3,154 $ 3,010 $ 3,012 $ 2,695 $ 2,529

Total market $ 18,216 $ 17,340 $ 15,280 $ 14,905 $ 14,342 capitalization^ (5)



Ratios

Total debt / total 17.3 % 17.4 % 19.7 % 18.1 % 17.6 %market capitalization

Total debt / Adjusted 5.5 5.4 5.7 5.2 5.0 EBITDAre ^(6)

Interest coverage ^(7) 5.5 5.4 5.2 5.1 4.9

Fixed charges^(8) 5.4 5.3 5.1 5.0 4.9

______________________

1.

See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre.

2.

See page 8 for a reconciliation of Net income available for Common Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.

3.

Net income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units.

4.

Excludes deferred financing costs of approximately $29.4 million as of September 30, 2021.

5.

See page 15 for the calculation of market capitalization as of September 30, 2021.

6.

Calculated using trailing twelve months Adjusted EBITDAre.

7.

Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period.

8.

See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for a definition of fixed charges. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.

______________________

See Non-GAAP Financial Measures Definitions and Reconciliations at the end1. of the supplemental financial information for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated net income to Adjusted EBITDAre.

See page 8 for a reconciliation of Net income available for Common2. Stockholders to Non-GAAP financial measures FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.

3. Net income per Common Share - Fully Diluted is calculated before Income allocated to non-controlling interest - Common OP Units.

4. Excludes deferred financing costs of approximately $29.4 million as of September 30, 2021.

5. See page 15 for the calculation of market capitalization as of September 30, 2021.

6. Calculated using trailing twelve months Adjusted EBITDAre.

7. Calculated by dividing trailing twelve months Adjusted EBITDAre by the interest expense incurred during the same period.

See Non-GAAP Financial Measures Definitions and Reconciliations at the end of the supplemental financial information for a definition of fixed charges.8. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fixed charges and preferred stock dividends, if any, during the same period.

Consolidated Balance Sheets

(In thousands, except share and per share data)

September 30, 2021

December 31, 2020

(unaudited)

Assets

Investment in real estate:

Land

$

1,969,487

$

1,676,636

Land improvements

3,783,255

3,543,479

Buildings and other depreciable property

1,042,086

940,311

6,794,828

6,160,426

Accumulated depreciation

(2,056,260

)

(1,924,585

)

Net investment in real estate

4,738,568

4,235,841

Cash and restricted cash

40,272

24,060

Notes receivable, net

39,947

35,844

Investment in unconsolidated joint ventures

20,632

19,726

Deferred commission expense

46,748

42,472

Other assets, net

95,693

61,026

Total Assets

$

4,981,860

$

4,418,969

Liabilities and Equity

Liabilities:

Mortgage notes payable, net

$

2,606,999

$

2,444,930

Term loan, net

297,288

-

Unsecured line of credit

220,000

222,000

Accounts payable and other liabilities

186,258

129,666

Deferred membership revenue

173,222

150,692

Accrued interest payable

8,879

8,336

Rents and other customer payments received in advance and security deposits

109,983

92,587

Distributions payable

70,009

66,003

Total Liabilities

3,672,638

3,114,214

Equity:

Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2021 and December 31, 2020; none issued and outstanding.

-

-

Common stock, $0.01 par value, 600,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 183,824,165 and 182,230,631 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively.

1,828

1,813

Paid-in capital

1,427,606

1,411,397

Distributions in excess of accumulated earnings

(181,941

)

(179,523

)

Accumulated other comprehensive income (loss)

325

-

Total Stockholders' Equity

1,247,818

1,233,687

Non-controlling interests - Common OP Units

61,404

71,068

Total Equity

1,309,222

1,304,755

Total Liabilities and Equity

$

4,981,860

$

4,418,969

Consolidated Balance Sheets

(In thousands, except share and per share data)

September 30, December 31, 2021 2020

(unaudited)

Assets

Investment in real estate:

Land $ 1,969,487 $ 1,676,636

Land improvements 3,783,255 3,543,479

Buildings and other depreciable property 1,042,086 940,311

6,794,828 6,160,426

Accumulated depreciation (2,056,260 ) (1,924,585 )

Net investment in real estate 4,738,568 4,235,841

Cash and restricted cash 40,272 24,060

Notes receivable, net 39,947 35,844

Investment in unconsolidated joint ventures 20,632 19,726

Deferred commission expense 46,748 42,472

Other assets, net 95,693 61,026

Total Assets $ 4,981,860 $ 4,418,969



Liabilities and Equity

Liabilities:

Mortgage notes payable, net $ 2,606,999 $ 2,444,930

Term loan, net 297,288 -

Unsecured line of credit 220,000 222,000

Accounts payable and other liabilities 186,258 129,666

Deferred membership revenue 173,222 150,692

Accrued interest payable 8,879 8,336

Rents and other customer payments received in 109,983 92,587 advance and security deposits

Distributions payable 70,009 66,003

Total Liabilities 3,672,638 3,114,214

Equity:

Preferred stock, $0.01 par value, 10,000,000shares authorized as of September 30, 2021 and - - December 31, 2020; none issued and outstanding.

Common stock, $0.01 par value, 600,000,000 sharesauthorized as of September 30, 2021 and December31, 2020; 183,824,165 and 182,230,631 shares 1,828 1,813 issued and outstanding as of September 30, 2021and December 31, 2020, respectively.

Paid-in capital 1,427,606 1,411,397

Distributions in excess of accumulated earnings (181,941 ) (179,523 )

Accumulated other comprehensive income (loss) 325 -

Total Stockholders' Equity 1,247,818 1,233,687

Non-controlling interests - Common OP Units 61,404 71,068

Total Equity 1,309,222 1,304,755

Total Liabilities and Equity $ 4,981,860 $ 4,418,969

Consolidated Income Statements

(In thousands, unaudited)

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenues:

Rental income

$

269,573

$

238,869

$

774,293

$

696,178

Annual membership subscriptions

15,127

13,442

43,048

39,476

Membership upgrade sales current period, gross

10,122

6,631

29,343

16,522

Membership upgrade sales upfront payments, deferred, net

(7,253

)

(4,171

)

(21,134

)

(9,379

)

Other income

12,053

12,268

36,759

33,007

Gross revenues from home sales

27,276

13,070

66,923

33,245

Brokered resale and ancillary services revenues, net

2,956

1,648

8,422

2,011

Interest income

1,805

1,801

5,314

5,399

Income from other investments, net

1,238

1,428

3,396

3,093

Total revenues

332,897

284,986

946,364

819,552

Expenses:

Property operating and maintenance

109,164

99,566

300,700

268,465

Real estate taxes

18,408

15,981

54,154

49,490

Sales and marketing, gross

6,513

5,054

18,987

13,308

Membership sales commissions, deferred, net

(1,468

)

(630

)

(4,405

)

(1,327

)

Property management

17,015

14,527

48,955

44,344

Depreciation and amortization

44,414

38,581

138,127

115,937

Cost of home sales

25,847

12,866

64,571

33,627

Home selling expenses

1,203

1,241

3,855

3,535

General and administrative

10,401

9,692

31,141

31,156

Other expenses

797

658

2,295

1,885

Early debt retirement

-

9,732

2,784

10,786

Interest and related amortization

27,361

25,218

80,767

77,540

Total expenses

259,655

232,486

741,931

648,746

Loss on sale of real estate, net

-

-

(59

)

-

Income before equity in income of unconsolidated joint ventures

73,242

52,500

204,374

170,806

Equity in income of unconsolidated joint ventures

851

968

2,786

2,239

Consolidated net income

74,093

53,468

207,160

173,045

Income allocated to non-controlling interests - Common OP Units

(3,468

)

(2,908

)

(10,236

)

(9,415

)

Redeemable perpetual preferred stock dividends

-

-

(8

)

(8

)

Net income available for Common Stockholders

$

70,625

$

50,560

$

196,916

$

163,622

Non-GAAP Financial Measures

This document contains certain non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these non-GAAP measures along with GAAP net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. Our definitions and calculations of these non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of non-GAAP measures to our financial statements as prepared under GAAP, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 8 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 17 - 19.

Consolidated Income Statements

(In thousands, unaudited)

Quarters Ended September Nine Months Ended 30, September 30,

2021 2020 2021 2020

Revenues:

Rental income $ 269,573 $ 238,869 $ 774,293 $ 696,178

Annual membership 15,127 13,442 43,048 39,476 subscriptions

Membership upgrade sales 10,122 6,631 29,343 16,522 current period, gross

Membership upgrade salesupfront payments, (7,253 ) (4,171 ) (21,134 ) (9,379 )deferred, net

Other income 12,053 12,268 36,759 33,007

Gross revenues from home 27,276 13,070 66,923 33,245 sales

Brokered resale andancillary services 2,956 1,648 8,422 2,011 revenues, net

Interest income 1,805 1,801 5,314 5,399

Income from other 1,238 1,428 3,396 3,093 investments, net

Total revenues 332,897 284,986 946,364 819,552



Expenses:

Property operating and 109,164 99,566 300,700 268,465 maintenance

Real estate taxes 18,408 15,981 54,154 49,490

Sales and marketing, 6,513 5,054 18,987 13,308 gross

Membership salescommissions, deferred, (1,468 ) (630 ) (4,405 ) (1,327 )net

Property management 17,015 14,527 48,955 44,344

Depreciation and 44,414 38,581 138,127 115,937 amortization

Cost of home sales 25,847 12,866 64,571 33,627

Home selling expenses 1,203 1,241 3,855 3,535

General and 10,401 9,692 31,141 31,156 administrative

Other expenses 797 658 2,295 1,885

Early debt retirement - 9,732 2,784 10,786

Interest and related 27,361 25,218 80,767 77,540 amortization

Total expenses 259,655 232,486 741,931 648,746

Loss on sale of real - - (59 ) - estate, net

Income before equity inincome of unconsolidated 73,242 52,500 204,374 170,806 joint ventures

Equity in income ofunconsolidated joint 851 968 2,786 2,239 ventures

Consolidated net income 74,093 53,468 207,160 173,045



Income allocated tonon-controlling interests (3,468 ) (2,908 ) (10,236 ) (9,415 )- Common OP Units

Redeemable perpetual - - (8 ) (8 )preferred stock dividends

Net income available for $ 70,625 $ 50,560 $ 196,916 $ 163,622 Common Stockholders

Non-GAAP Financial Measures

This document contains certain non-GAAP measures used by management that we believe are helpful to understand our business. We believe investors should review these non-GAAP measures along with GAAP net income and cash flows from operating activities, investing activities and financing activities, when evaluating an equity REIT's operating performance. Our definitions and calculations of these non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and should not be considered as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. For definitions and reconciliations of non-GAAP measures to our financial statements as prepared under GAAP, refer to both Reconciliation of Net Income to Non-GAAP Financial Measures on page 8 and Non-GAAP Financial Measures Definitions and Reconciliations on pages 17 - 19.

Selected Non-GAAP Financial Measures

(In millions, except per share data, unaudited)

Quarter Ended

September 30, 2021

Income from property operations, excluding deferrals and $ 166.9 property management - 2021 Core ^(1)

Income from property operations, excluding deferrals and 5.9 property management - Non-Core ^(1)

Property management and general and administrative (27.4 )

Other income and expenses 6.5

Interest and related amortization (27.4 )

Normalized FFO and FFO available for Common Stock and OP Unit $ 124.5 holders ^(2)



FFO per Common Share and OP Unit - Fully Diluted $0.65

Normalized FFO per Common Share and OP Unit - Fully Diluted $0.65





Normalized FFO available for Common Stock and OP Unit holders ^ $ 124.5 (2)

Non-revenue producing improvements to real estate (18.4 )

FAD for Common Stock and OP Unit holders ^(2) $ 106.1



Weighted average Common Shares and OP Units - Fully Diluted 192.7

______________________1.See page 10 for details of the Core Income from Property Operations, excluding deferrals and property management. See page 11 for details of the Non-Core Income from Property Operations, excluding deferrals and property management.

2.See page 8 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders, Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.

______________________ See page 10 for details of the Core Income from Property Operations, excluding deferrals and property management. See page 11 for details of the1. Non-Core Income from Property Operations, excluding deferrals and property management.

See page 8 for a reconciliation of Net income available for Common Stockholders to FFO available for Common Stock and OP Unit holders,2. Normalized FFO available for Common Stock and OP Unit holders and FAD for Common Stock and OP Unit holders.

Reconciliation of Net Income to Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Net income available for Common Stockholders

$

70,625

$

50,560

$

196,916

$

163,622

Income allocated to non-controlling interests - Common OP Units

3,468

2,908

10,236

9,415

Membership upgrade sales upfront payments, deferred, net

7,253

4,171

21,134

9,379

Membership sales commissions, deferred, net

(1,468

)

(630

)

(4,405

)

(1,327

)

Depreciation and amortization

44,414

38,581

138,127

115,937

Depreciation on unconsolidated joint ventures

180

183

547

544

Loss on sale of real estate, net

-

-

59

-

FFO available for Common Stock and OP Unit holders

124,472

95,773

362,614

297,570

Early debt retirement

-

9,732

2,784

10,786

COVID-19 expenses

-

-

-

1,446

Normalized FFO available for Common Stock and OP Unit holders

124,472

105,505

365,398

309,802

Non-revenue producing improvements to real estate

(18,369

)

(15,481

)

(49,263

)

(42,277

)

FAD for Common Stock and OP Unit holders

$

106,103

$

90,024

$

316,135

$

267,525

Net income available per Common Share - Basic

$

0.38

$

0.28

$

1.08

$

0.90

Net income available per Common Share - Fully Diluted(1)

$

0.38

$

0.28

$

1.08

$

0.90

FFO per Common Share and OP Unit - Basic

$

0.65

$

0.50

$

1.88

$

1.55

FFO per Common Share and OP Unit - Fully Diluted

$

0.65

$

0.50

$

1.88

$

1.55

Normalized FFO per Common Share and OP Unit - Basic

$

0.65

$

0.55

$

1.90

$

1.61

Normalized FFO per Common Share and OP Unit - Fully Diluted

$

0.65

$

0.55

$

1.90

$

1.61

Weighted average Common Shares outstanding - Basic

183,469

181,869

182,590

181,811

Weighted average Common Shares and OP Units outstanding - Basic

192,525

192,351

192,478

192,296

Weighted average Common Shares and OP Units outstanding - Fully Diluted

192,736

192,537

192,689

192,548

Reconciliation of Net Income to Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

Quarters Ended September Nine Months Ended 30, September 30,

2021 2020 2021 2020

Net income available for $ 70,625 $ 50,560 $ 196,916 $ 163,622 Common Stockholders

Income allocated tonon-controlling 3,468 2,908 10,236 9,415 interests - Common OPUnits

Membership upgrade salesupfront payments, 7,253 4,171 21,134 9,379 deferred, net

Membership salescommissions, deferred, (1,468 ) (630 ) (4,405 ) (1,327 )net

Depreciation and 44,414 38,581 138,127 115,937 amortization

Depreciation onunconsolidated joint 180 183 547 544 ventures

Loss on sale of real - - 59 - estate, net

FFO available for CommonStock and OP Unit 124,472 95,773 362,614 297,570 holders

Early debt retirement - 9,732 2,784 10,786

COVID-19 expenses - - - 1,446

Normalized FFO availablefor Common Stock and OP 124,472 105,505 365,398 309,802 Unit holders

Non-revenue producingimprovements to real (18,369 ) (15,481 ) (49,263 ) (42,277 )estate

FAD for Common Stock and $ 106,103 $ 90,024 $ 316,135 $ 267,525 OP Unit holders



Net income available per $ 0.38 $ 0.28 $ 1.08 $ 0.90 Common Share - Basic

Net income available perCommon Share - Fully $ 0.38 $ 0.28 $ 1.08 $ 0.90 Diluted ^(1)



FFO per Common Share and $ 0.65 $ 0.50 $ 1.88 $ 1.55 OP Unit - Basic

FFO per Common Share and $ 0.65 $ 0.50 $ 1.88 $ 1.55 OP Unit - Fully Diluted



Normalized FFO perCommon Share and OP Unit $ 0.65 $ 0.55 $ 1.90 $ 1.61 - Basic

Normalized FFO perCommon Share and OP Unit $ 0.65 $ 0.55 $ 1.90 $ 1.61 - Fully Diluted



Weighted average CommonShares outstanding - 183,469 181,869 182,590 181,811 Basic

Weighted average CommonShares and OP Units 192,525 192,351 192,478 192,296 outstanding - Basic

Weighted average CommonShares and OP Units 192,736 192,537 192,689 192,548 outstanding - FullyDiluted

______________________1.Net income per fully diluted Common Share is calculated before Income allocated to non-controlling interest - Common OP Units.

______________________ Net income per fully diluted Common Share is calculated before Income1. allocated to non-controlling interest - Common OP Units.

Consolidated Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

MH base rental income (2) (3)

$

151.1

$

143.5

$

450.3

$

427.5

Rental home income (3)

4.1

4.2

12.7

12.2

RV and marina base rental income (3) (4)

100.6

79.0

273.2

220.1

Annual membership subscriptions

15.1

13.4

43.0

39.5

Membership upgrade sales current period, gross

10.1

6.6

29.3

16.5

Utility and other income (3)

27.7

26.2

80.6

73.7

Property operating revenues

308.7

272.9

889.1

789.5

Property operating, maintenance and real estate taxes (3)

127.9

115.5

356.4

318.0

Rental home operating and maintenance

1.5

1.7

4.1

4.3

Sales and marketing, gross

6.5

5.1

19.0

13.3

Property operating expenses

135.9

122.3

379.5

335.6

Income from property operations, excluding deferrals and property management(1)

$

172.8

$

150.6

$

509.6

$

453.9

Manufactured home site figures and occupancy averages:

Total sites

73,293

72,372

73,156

72,328

Occupied sites

69,474

68,712

69,394

68,607

Occupancy %

94.8

%

94.9

%

94.9

%

94.9

%

Monthly base rent per site

$

725

$

696

$

721

$

692

RV and marina base rental income:

Annual

$

60.5

$

48.2

$

173.7

$

142.6

Seasonal

7.3

5.2

30.1

32.9

Transient

32.8

25.6

69.4

44.6

Total RV and marina base rental income

$

100.6

$

79.0

$

273.2

$

220.1

Consolidated Income from Property Operations ^(1)

(In millions, except home site and occupancy figures, unaudited)

Quarters Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

MH base rental income ^(2) (3) $ 151.1 $ 143.5 $ 450.3 $ 427.5

Rental home income ^(3) 4.1 4.2 12.7 12.2

RV and marina base rental income 100.6 79.0 273.2 220.1 ^(3) (4)

Annual membership subscriptions 15.1 13.4 43.0 39.5

Membership upgrade sales current 10.1 6.6 29.3 16.5 period, gross

Utility and other income ^(3) 27.7 26.2 80.6 73.7

Property operating revenues 308.7 272.9 889.1 789.5



Property operating, maintenance 127.9 115.5 356.4 318.0 and real estate taxes ^(3)

Rental home operating and 1.5 1.7 4.1 4.3 maintenance

Sales and marketing, gross 6.5 5.1 19.0 13.3

Property operating expenses 135.9 122.3 379.5 335.6

Income from property operations,excluding deferrals and property $ 172.8 $ 150.6 $ 509.6 $ 453.9 management ^(1)







Manufactured home site figures and occupancy averages:

Total sites 73,293 72,372 73,156 72,328

Occupied sites 69,474 68,712 69,394 68,607

Occupancy % 94.8 % 94.9 % 94.9 % 94.9 %

Monthly base rent per site $ 725 $ 696 $ 721 $ 692



RV and marina base rental income:

Annual $ 60.5 $ 48.2 $ 173.7 $ 142.6

Seasonal 7.3 5.2 30.1 32.9

Transient 32.8 25.6 69.4 44.6

Total RV and marina base rental $ 100.6 $ 79.0 $ 273.2 $ 220.1 income

______________________

1.

Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.

2.

See the manufactured home site figures and occupancy averages included below within this table.

3.

MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income in the Consolidated Income Statements on page 5. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.

4.

See RV and marina base rental income detail included below within this table.

______________________

1. Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.

2. See the manufactured home site figures and occupancy averages included below within this table.

MH base rental income, Rental home income, RV and marina base rental income and Utility income, net of bad debt expense, are presented in Rental income3. in the Consolidated Income Statements on page 5. Bad debt expense is presented in Property operating, maintenance and real estate taxes in this table.

4. See RV and marina base rental income detail included below within this table.

Core Income from Property Operations (1)

(In millions, except home site and occupancy figures, unaudited)

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

Change (2)

2021

2020

Change (2)

MH base rental income (3)

$

150.2

$

143.5

4.7

%

$

447.5

$

427.4

4.7

%

Rental home income

4.1

4.2

(0.5

)%

12.7

12.2

3.9

%

RV and marina base rental income (4)

90.1

79.0

14.1

%

246.4

220.1

11.9

%

Annual membership subscriptions

15.1

13.4

12.5

%

43.0

39.5

9.0

%

Membership upgrade sales current period, gross

10.1

6.6

52.6

%

29.3

16.5

77.6

%

Utility and other income

26.3

26.1

0.4

%

77.7

73.8

5.5

%

Property operating revenues

295.9

272.8

8.5

%

856.6

789.5

8.5

%

Property operating, maintenance and real estate taxes (5)

121.0

115.3

4.9

%

338.4

317.6

6.6

%

Rental home operating and maintenance

1.5

1.7

(11.0

)%

4.0

4.3

(6.1

)%

Sales and marketing, gross

6.5

5.1

28.8

%

19.0

13.3

42.6

%

Property operating expenses

129.0

122.1

5.7

%

361.4

335.2

7.8

%

Income from property operations, excluding deferrals and property management(1)

$

166.9

$

150.7

10.7

%

$

495.2

$

454.3

9.0

%

Occupied sites(6)

69,082

68,772

Core manufactured home site figures and occupancy averages:

Total sites

72,544

72,097

72,404

72,054

Occupied sites

69,016

68,690

68,946

68,592

Occupancy %

95.1

%

95.3

%

95.2

%

95.2

%

Monthly base rent per site

$

725

$

696

$

721

$

692

Core RV and marina base rental income:

Annual (7)

$

52.0

$

48.2

7.8

%

$

151.8

$

142.6

6.5

%

Seasonal

7.1

5.2

37.5

%

28.9

32.9

(12.4

)%

Transient

31.0

25.6

21.1

%

65.7

44.6

47.4

%

Total RV and marina base rental income

$

90.1

$

79.0

14.1

%

$

246.4

$

220.1

11.9

%

Core Income from Property Operations ^(1)

(In millions, except home site and occupancy figures, unaudited)

Quarters Ended September 30, Nine Months Ended September 30,

2021 2020 Change 2021 2020 Change ^(2) ^(2)

MH baserental income $ 150.2 $ 143.5 4.7 % $ 447.5 $ 427.4 4.7 %^(3)

Rental home 4.1 4.2 (0.5 ) 12.7 12.2 3.9 %income %

RV and marinabase rental 90.1 79.0 14.1 % 246.4 220.1 11.9 %income ^(4)

Annualmembership 15.1 13.4 12.5 % 43.0 39.5 9.0 %subscriptions

Membershipupgrade sales 10.1 6.6 52.6 % 29.3 16.5 77.6 %currentperiod, gross

Utility and 26.3 26.1 0.4 % 77.7 73.8 5.5 %other income

Propertyoperating 295.9 272.8 8.5 % 856.6 789.5 8.5 %revenues



Propertyoperating,maintenance 121.0 115.3 4.9 % 338.4 317.6 6.6 %and realestate taxes^(5)

Rental home ) )operating and 1.5 1.7 (11.0 % 4.0 4.3 (6.1 %maintenance

Sales andmarketing, 6.5 5.1 28.8 % 19.0 13.3 42.6 %gross

Propertyoperating 129.0 122.1 5.7 % 361.4 335.2 7.8 %expenses

Income frompropertyoperations,excluding $ 166.9 $ 150.7 10.7 % $ 495.2 $ 454.3 9.0 %deferrals andpropertymanagement ^(1)



Occupied 69,082 68,772 sites ^(6)



Coremanufacturedhome site figures andoccupancyaverages:

Total sites 72,544 72,097 72,404 72,054

Occupied 69,016 68,690 68,946 68,592 sites

Occupancy % 95.1 % 95.3 % 95.2 % 95.2 %

Monthly base $ 725 $ 696 $ 721 $ 692 rent per site



Core RV andmarina base rentalincome:

Annual^ (7) $ 52.0 $ 48.2 7.8 % $ 151.8 $ 142.6 6.5 %

Seasonal 7.1 5.2 37.5 % 28.9 32.9 (12.4 ) %

Transient 31.0 25.6 21.1 % 65.7 44.6 47.4 %

Total RV andmarina base $ 90.1 $ 79.0 14.1 % $ 246.4 $ 220.1 11.9 %rental income

______________________

1.

Excludes property management and the GAAP deferral of membership upgrades sales upfront payments and membership sales commissions, net.

2.

Calculations prepared using actual results without rounding.

3.

See Core manufactured home site figures and occupancy averages included below within this table.

4.

See Core RV base rental income detail included below within this table.

5.

Includes bad debt expense for the periods presented.

6.

Occupied sites are presented as of the end of the period. Occupied sites have increased by 213 from 68,869 at December 31, 2020.

7.

Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented.

______________________

1. Excludes property management and the GAAP deferral of membership upgrades sales upfront payments and membership sales commissions, net.

2. Calculations prepared using actual results without rounding.

3. See Core manufactured home site figures and occupancy averages included below within this table.

4. See Core RV base rental income detail included below within this table.

5. Includes bad debt expense for the periods presented.

6. Occupied sites are presented as of the end of the period. Occupied sites have increased by 213 from 68,869 at December 31, 2020.

7. Core Annual marina base rental income represents approximately 99% of the total Core marina base rental income for all periods presented.

Non-Core Income from Property Operations (1)

(In millions, unaudited)

Quarter Ended

Nine Months Ended

September 30, 2021

September 30, 2021

MH base rental income

$

1.0

$

2.8

Rental home income

-

-

RV and marina base rental income

10.5

26.8

Utility and other income

1.4

2.8

Property operating revenues

12.9

32.4

Property operating expenses (2)

7.0

18.0

Income from property operations, excluding deferrals and property management (1)

$

5.9

$

14.4

Non-Core Income from Property Operations ^(1)

(In millions, unaudited)

Quarter Nine Months Ended Ended

September September 30, 2021 30, 2021

MH base rental income $ 1.0 $ 2.8

Rental home income - -

RV and marina base rental income 10.5 26.8

Utility and other income 1.4 2.8

Property operating revenues 12.9 32.4



Property operating expenses ^(2) 7.0 18.0

Income from property operations, excluding $ 5.9 $ 14.4deferrals and property management ^(1)

______________________

1.

Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.

2.

Includes bad debt expense for the periods presented.

______________________

1. Excludes property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net.

2. Includes bad debt expense for the periods presented.

Income from Rental Home Operations

(In millions, except occupied rentals, unaudited)

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Manufactured homes:

Rental operations revenues (1)

$

12.0

$

12.0

$

36.7

$

35.7

Rental home operations expense

1.5

1.7

4.0

4.3

Income from rental home operations

10.5

10.3

32.7

31.4

Depreciation on rental homes (2)

2.7

2.7

8.0

8.2

Income from rental operations, net of depreciation

$

7.8

$

7.6

$

24.7

$

23.2

Occupied rentals: (3)

New

3,130

3,314

Used

456

588

Total occupied rental sites

3,586

3,902

As of September 30, 2021

As of September 30, 2020

Cost basis in rental homes: (4)

Gross

Net of Depreciation

Gross

Net of Depreciation

New

$

232.1

$

190.1

$

232.8

$

199.3

Used

16.6

8.7

16.4

9.6

Total rental homes

$

248.7

$

198.8

$

249.2

$

208.9

Income from Rental Home Operations

(In millions, except occupied rentals, unaudited)

Quarters Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Manufactured homes:

Rental operations revenues ^ $ 12.0 $ 12.0 $ 36.7 $ 35.7(1)

Rental home operations expense 1.5 1.7 4.0 4.3

Income from rental home 10.5 10.3 32.7 31.4operations

Depreciation on rental homes ^ 2.7 2.7 8.0 8.2(2)

Income from rental operations, $ 7.8 $ 7.6 $ 24.7 $ 23.2net of depreciation



Occupied rentals:^ (3)

New 3,130 3,314

Used 456 588

Total occupied rental sites 3,586 3,902

As of September 30, As of September 30, 2021 2020

Cost basis in rental homes: ^ Gross Net of Gross Net of(4) Depreciation Depreciation

New $ 232.1 $ 190.1 $ 232.8 $ 199.3

Used 16.6 8.7 16.4 9.6

Total rental homes $ 248.7 $ 198.8 $ 249.2 $ 208.9

______________________1.

For the quarters ended September 30, 2021 and 2020, approximately $7.8 million and $7.9 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 10. For the nine months ended September 30, 2021 and 2020, approximately $24.0 million and $23.5 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 10. The remainder of the rental operations revenue is included in Rental home income for the quarters ended September 30, 2021 and 2020 in the Core Income from Property Operations on page 10.

2.

Depreciation on rental homes in our Core portfolio is presented in Depreciation and amortization in the Consolidated Income Statements on page 5.

3.

Occupied rentals as of the end of the period in our Core portfolio. Included in the quarters ended September 30, 2021 and 2020 were 253 and 286 homes rented through ECHO Financing LLC ("ECHO joint venture"), respectively. As of September 30, 2021 and 2020, the rental home investment associated with the ECHO joint venture totaled approximately $10.0 million and $11.3 million, respectively.

4.

Includes both occupied and unoccupied rental homes in our Core portfolio. New home cost basis does not include the costs associated with our ECHO joint venture. As of September 30, 2021 and 2020, our investment in the ECHO joint venture was approximately $17.8 million and $17.2 million, respectively.

______________________ For the quarters ended September 30, 2021 and 2020, approximately $7.8 million and $7.9 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 10. For the nine months ended September 30, 2021 and1. 2020, approximately $24.0 million and $23.5 million, respectively, of the rental operations revenue is included in the MH base rental income in the Core Income from Property Operations on page 10. The remainder of the rental operations revenue is included in Rental home income for the quarters ended September 30, 2021 and 2020 in the Core Income from Property Operations on page 10.

Depreciation on rental homes in our Core portfolio is presented in2. Depreciation and amortization in the Consolidated Income Statements on page 5.

Occupied rentals as of the end of the period in our Core portfolio. Included in the quarters ended September 30, 2021 and 2020 were 253 and 286 homes3. rented through ECHO Financing LLC ("ECHO joint venture"), respectively. As of September 30, 2021 and 2020, the rental home investment associated with the ECHO joint venture totaled approximately $10.0 million and $11.3 million, respectively.

Includes both occupied and unoccupied rental homes in our Core portfolio. New home cost basis does not include the costs associated with our ECHO4. joint venture. As of September 30, 2021 and 2020, our investment in the ECHO joint venture was approximately $17.8 million and $17.2 million, respectively.

Total Sites and Home Sales

(In thousands, except sites and home sale volumes unaudited)

Summary of Total Sites as of September 30, 2021

Sites (1)

MH sites

73,300

RV sites:

Annual

32,400

Seasonal (2)

10,700

Transient

15,400

Marina slips

6,800

Membership (3)

24,800

Joint Ventures (4)

3,600

Total (5)

167,100

Total Sites and Home Sales

(In thousands, except sites and home sale volumes unaudited)

Summary of Total Sites as of September 30, 2021

Sites ^(1)

MH sites 73,300

RV sites:

Annual 32,400

Seasonal ^(2) 10,700

Transient 15,400

Marina slips 6,800

Membership^ (3) 24,800

Joint Ventures ^(4) 3,600

Total ^(5) 167,100

Home Sales - Select Data

Quarters Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Total New Home Sales Volume (6)

338

183

825

471

New Home Sales Volume - ECHO joint venture

32

15

56

38

New Home Sales Gross Revenues (6)

$

26,413

$

11,929

$

64,071

$

28,863

Total Used Home Sales Volume

104

120

314

450

Used Home Sales Gross Revenues

$

863

$

1,141

$

2,852

$

4,382

Brokered Home Resales Volume

171

167

543

454

Brokered Home Resale Revenues, net

$

337

$

245

$

986

$

684

Home Sales - Select Data

Quarters Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Total New Home Sales Volume ^ 338 183 825 471(6)

New Home Sales Volume - ECHO 32 15 56 38joint venture

New Home Sales Gross Revenues $ 26,413 $ 11,929 $ 64,071 $ 28,863^(6)



Total Used Home Sales Volume 104 120 314 450

Used Home Sales Gross Revenues $ 863 $ 1,141 $ 2,852 $ 4,382



Brokered Home Resales Volume 171 167 543 454

Brokered Home Resale Revenues, $ 337 $ 245 $ 986 $ 684net

______________________1.

MH sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina sites are leased to customers generally for one to six months. Transient RV and marina sites are leased to customers on a short-term basis.

2.

Includes sites reserved but not used by seasonal customers due to travel restrictions.

3.

Sites primarily utilized by approximately 124,900 members. Includes approximately 6,300 sites rented on an annual basis.

4.

Joint ventures have approximately 2,900 annual Sites, 200 seasonal Sites, and 500 transient Sites and includes sites at Voyager RV Resort.

5.

Total does not foot due to rounding.

6.

Total new home sales volume includes home sales from our ECHO joint venture. New home sales gross revenues does not include the revenues associated with the ECHO joint venture.

______________________ MH sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina sites are leased on an annual basis to customers who generally have1. an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina sites are leased to customers generally for one to six months. Transient RV and marina sites are leased to customers on a short-term basis.

2. Includes sites reserved but not used by seasonal customers due to travel restrictions.

3. Sites primarily utilized by approximately 124,900 members. Includes approximately 6,300 sites rented on an annual basis.

4. Joint ventures have approximately 2,900 annual Sites, 200 seasonal Sites, and 500 transient Sites and includes sites at Voyager RV Resort.

5. Total does not foot due to rounding.

Total new home sales volume includes home sales from our ECHO joint venture.6. New home sales gross revenues does not include the revenues associated with the ECHO joint venture.

Memberships - Select Data

(Unaudited)

2017

2018

2019

2020

Nine Months Ended September 30, 2021

Member Count (1)

106,456

111,094

115,680

116,169

124,884

Thousand Trails Camping Pass (TTC) Origination

31,618

37,528

41,484

44,129

41,115

TTC Sales

14,128

17,194

19,267

20,587

20,172

RV Dealer TTC Activations

17,490

20,334

22,217

23,542

20,943

Number of annuals (2)

5,843

5,888

5,938

5,986

6,300

Number of upgrade sales (3)

2,514

2,500

2,919

3,373

4,001

(In thousands, unaudited)

Annual membership subscriptions

$

45,798

$

47,778

$

51,015

$

53,085

$

43,048

RV base rental income from annuals

$

16,841

$

18,363

$

19,634

$

20,761

$

17,047

RV base rental income from seasonals/transients

$

18,231

$

19,840

$

20,181

$

18,126

$

21,191

Membership upgrade sales current period, gross

$

14,130

$

15,191

$

19,111

$

21,739

$

29,343

Utility and other income

$

2,254

$

2,410

$

2,422

$

2,426

$

1,922

Memberships - Select Data

(Unaudited)



Nine Months 2017 2018 2019 2020 Ended September 30, 2021

Member Count ^ 106,456 111,094 115,680 116,169 124,884 (1)

ThousandTrails Camping 31,618 37,528 41,484 44,129 41,115 Pass (TTC)Origination

TTC Sales 14,128 17,194 19,267 20,587 20,172

RV Dealer TTC 17,490 20,334 22,217 23,542 20,943 Activations

Number of 5,843 5,888 5,938 5,986 6,300 annuals ^(2)

Number ofupgrade sales 2,514 2,500 2,919 3,373 4,001 ^(3)



(In thousands, unaudited)

Annualmembership $ 45,798 $ 47,778 $ 51,015 $ 53,085 $ 43,048 subscriptions

RV base rentalincome from $ 16,841 $ 18,363 $ 19,634 $ 20,761 $ 17,047 annuals

RV base rentalincome from $ 18,231 $ 19,840 $ 20,181 $ 18,126 $ 21,191 seasonals/transients

Membershipupgrade sales $ 14,130 $ 15,191 $ 19,111 $ 21,739 $ 29,343 currentperiod, gross

Utility and $ 2,254 $ 2,410 $ 2,422 $ 2,426 $ 1,922 other income

______________________

1.

Members have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days.

2.

Members who rent a specific site for an entire year in connection with their membership subscriptions.

3.

Existing members who have upgraded memberships are eligible for enhanced benefits, including but not limited to longer stays, the ability to make earlier reservations, potential discounts on rental units, and potential access to additional properties. Upgrades require a non-refundable upfront payment.

______________________

1. Members have entered into annual subscriptions with us that entitle them to use certain properties on a continuous basis for up to 21 days.

2. Members who rent a specific site for an entire year in connection with their membership subscriptions.

Existing members who have upgraded memberships are eligible for enhanced benefits, including but not limited to longer stays, the ability to make3. earlier reservations, potential discounts on rental units, and potential access to additional properties. Upgrades require a non-refundable upfront payment.

Market Capitalization

(In millions, except share and OP Unit data, unaudited)

Capital Structure as of September 30, 2021

Total Common Shares/Units

% of Total Common Shares/Units

Total

% of Total

% of Total Market Capitalization

Secured Debt

$

2,634

83.5

%

Unsecured Debt

520

16.5

%

Total Debt (1)

$

3,154

100.0

%

17.3

%

Common Shares

183,824,165

95.3

%

OP Units (2)

9,027,484

4.7

%

Total Common Shares and OP Units

192,851,649

100.0

%

Common Stock price at September 30, 2021

$

78.10

Fair Value of Common Shares and OP Units

$

15,062

100.0

%

Total Equity

$

15,062

100.0

%

82.7

%

Total Market Capitalization

$

18,216

100.0

%

Market Capitalization

(In millions, except share and OP Unit data, unaudited)

Capital Structure as of September 30, 2021



% of Total Common Total % of % of Total Shares/Units Common Total Total Market Shares/ Capitalization Units



Secured Debt $ 2,634 83.5 %

Unsecured Debt 520 16.5 %

Total Debt ^ $ 3,154 100.0 % 17.3 %(1)



Common Shares 183,824,165 95.3 %

OP Units ^(2) 9,027,484 4.7 %

Total CommonShares and OP 192,851,649 100.0 % Units

Common Stockprice at $ 78.10 September 30,2021

Fair Value ofCommon Shares $ 15,062 100.0 % and OP Units

Total Equity $ 15,062 100.0 % 82.7 %



Total Market $ 18,216 100.0 %Capitalization

______________________

1.

Excludes deferred financing costs of approximately $29.4 million.

2.

Excludes OP Units issued subsequent to September 30, 2021 as a result of acquiring our joint venture partner's 50% interest in Voyager RV Resort.

______________________

1. Excludes deferred financing costs of approximately $29.4 million.

2. Excludes OP Units issued subsequent to September 30, 2021 as a result of acquiring our joint venture partner's 50% interest in Voyager RV Resort.

Debt Maturity Schedule

Debt Maturity Schedule as of September 30, 2021

(In thousands, unaudited)Year

Secured Debt

Weighted Average Interest Rate

Unsecured Debt (1)

Weighted Average Interest Rate

Total Debt

% of Total Debt

Weighted Average Interest Rate

2021

$

-

-

%

$

-

-

%

$

-

-

%

-

%

2022

79,051

4.27

%

-

-

%

79,051

2.69

%

4.27

%

2023

97,031

4.97

%

-

-

%

97,031

3.31

%

4.97

%

2024

10,280

5.49

%

-

-

%

10,280

.35

%

5.49

%

2025

96,507

3.45

%

-

-

%

96,507

3.29

%

3.45

%

2026

-

-

%

300,000

1.79

%

300,000

10.23

%

1.79

%

2027

-

-

%

-

-

%

-

-

%

-

%

2028

213,432

4.19

%

-

-

%

213,432

7.28

%

4.19

%

2029

-

-

%

-

-

%

-

-

%

-

%

2030

275,385

2.69

%

-

-

%

275,385

9.39

%

2.69

%

Thereafter

1,861,572

3.63

%

-

-

%

1,861,572

63.46

%

3.63

%

Total

$

2,633,258

3.65

%

$

300,000

1.79

%

$

2,933,258

100.0

%

3.46

%

Unsecured Line of Credit (1)

-

220,000

220,000

Note Premiums

423

-

423

Total Debt

2,633,681

520,000

3,153,681

Deferred Financing Costs

(26,682)

(2,712)

(29,394)

Total Debt, net

$

2,606,999

$

517,288

$

3,124,287

3.47

%(2)

Average Years to Maturity

12.2

4.2

10.9

Debt Maturity Schedule

Debt Maturity Schedule as of September 30, 2021

(In thousands, unaudited) Weighted Weighted % of WeightedYear Secured Average Unsecured Average Total Debt Total Average Debt Interest Debt ^(1) Interest Debt Interest Rate Rate Rate

2021 $ - - % $ - - % $ - - % - %

2022 79,051 4.27 % - - % 79,051 2.69 % 4.27 %

2023 97,031 4.97 % - - % 97,031 3.31 % 4.97 %

2024 10,280 5.49 % - - % 10,280 .35 % 5.49 %

2025 96,507 3.45 % - - % 96,507 3.29 % 3.45 %

2026 - - % 300,000 1.79 % 300,000 10.23 % 1.79 %

2027 - - % - - % - - % - %

2028 213,432 4.19 % - - % 213,432 7.28 % 4.19 %

2029 - - % - - % - - % - %

2030 275,385 2.69 % - - % 275,385 9.39 % 2.69 %

Thereafter 1,861,572 3.63 % - - % 1,861,572 63.46 % 3.63 %

Total $ 2,633,258 3.65 % $ 300,000 1.79 % $ 2,933,258 100.0 % 3.46 %



UnsecuredLine of - 220,000 220,000 Credit ^(1)



Note 423 - 423 Premiums



Total Debt 2,633,681 520,000 3,153,681



DeferredFinancing (26,682) (2,712) (29,394) Costs



Total $ 2,606,999 $ 517,288 $ 3,124,287 3.47 %^Debt, net (2)



AverageYears to 12.2 4.2 10.9 Maturity

______________________

1.

Reflects outstanding balance on our existing line of credit as of September 30, 2021.

2.

Reflects effective interest rate for the quarter ended September 30, 2021, including amortization of note premiums and deferred financing costs.

Non-GAAP Financial Measures Definitions and Reconciliations

FUNDS FROM OPERATIONS (FFO). We define FFO as net income, computed in accordance with GAAP, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of FFO of unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We receive non-refundable upfront payments from membership upgrade contracts. In accordance with GAAP, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated membership upgrade contract term. Although the NAREIT definition of FFO does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of FFO.

We believe FFO, as defined by the Board of Governors of NAREIT, is generally a measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.

NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO). We define Normalized FFO as FFO excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.

FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.

We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our operations. For example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.

INCOME FROM PROPERTY OPERATIONS, EXCLUDING DEFERRALS AND PROPERTY MANAGEMENT. We define Income from property operations, excluding deferrals and property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, sales and marketing expenses, excluding property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net. For comparative purposes, we present bad debt expense within Property operating, maintenance and real estate taxes in the current and prior periods. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our properties.

The following table reconciles Net income available for Common Stockholders to Income from property operations:

______________________

1. Reflects outstanding balance on our existing line of credit as of September 30, 2021.

2. Reflects effective interest rate for the quarter ended September 30, 2021, including amortization of note premiums and deferred financing costs.

Non-GAAP Financial Measures Definitions and Reconciliations

FUNDS FROM OPERATIONS (FFO). We define FFO as net income, computed in accordance with GAAP, excluding gains or losses from sales of properties, depreciation and amortization related to real estate, impairment charges and adjustments to reflect our share of FFO of unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We receive non-refundable upfront payments from membership upgrade contracts. In accordance with GAAP, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated membership upgrade contract term. Although the NAREIT definition of FFO does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of FFO.

We believe FFO, as defined by the Board of Governors of NAREIT, is generally a measure of performance for an equity REIT. While FFO is a relevant and widely used measure of operating performance for equity REITs, it does not represent cash flow from operations or net income as defined by GAAP, and it should not be considered as an alternative to these indicators in evaluating liquidity or operating performance.

NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO). We define Normalized FFO as FFO excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items. Normalized FFO presented herein is not necessarily comparable to Normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same methodology for computing this amount.

FUNDS AVAILABLE FOR DISTRIBUTION (FAD). We define FAD as Normalized FFO less non-revenue producing capital expenditures.

We believe that FFO, Normalized FFO and FAD are helpful to investors as supplemental measures of the performance of an equity REIT. We believe that by excluding the effect of gains or losses from sales of properties, depreciation and amortization related to real estate and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We further believe that Normalized FFO provides useful information to investors, analysts and our management because it allows them to compare our operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences not related to our operations. For example, we believe that excluding the early extinguishment of debt and other miscellaneous non-comparable items from FFO allows investors, analysts and our management to assess the sustainability of operating performance in future periods because these costs do not affect the future operations of the properties. In some cases, we provide information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items.

INCOME FROM PROPERTY OPERATIONS, EXCLUDING DEFERRALS AND PROPERTY MANAGEMENT. We define Income from property operations, excluding deferrals and property management as rental income, membership subscriptions and upgrade sales, utility and other income less property and rental home operating and maintenance expenses, real estate taxes, sales and marketing expenses, excluding property management and the GAAP deferral of membership upgrade sales upfront payments and membership sales commissions, net. For comparative purposes, we present bad debt expense within Property operating, maintenance and real estate taxes in the current and prior periods. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our properties.

The following table reconciles Net income available for Common Stockholders to Income from property operations:

Quarters Ended September Nine Months Ended 30, September 30,

(amounts in thousands) 2021 2020 2021 2020

Net income available $ 70,625 $ 50,560 $ 196,916 $ 163,622 for Common Stockholders

Redeemable perpetualpreferred stock - - 8 8 dividends

Income allocated tonon-controlling 3,468 2,908 10,236 9,415 interests - Common OPUnits

Equity in income ofunconsolidated joint (851 ) (968 ) (2,786 ) (2,239 )ventures

Income before equity inincome of 73,242 52,500 204,374 170,806 unconsolidated jointventures

Loss on sale of real - - 59 - estate, net

Membership upgradesales upfront payments, 7,253 4,171 21,134 9,379 deferred, net

Gross revenues from (27,276 ) (13,070 ) (66,923 ) (33,245 )home sales

Brokered resale andancillary services (2,956 ) (1,648 ) (8,422 ) (2,011 )revenues, net

Interest income (1,805 ) (1,801 ) (5,314 ) (5,399 )

Income from other (1,238 ) (1,428 ) (3,396 ) (3,093 )investments, net

Membership salescommissions, deferred, (1,468 ) (630 ) (4,405 ) (1,327 )net

Property management 17,015 14,527 48,955 44,344

Depreciation and 44,414 38,581 138,127 115,937 amortization

Cost of home sales 25,847 12,866 64,571 33,627

Home selling expenses 1,203 1,241 3,855 3,535

General and 10,401 9,692 31,141 31,156 administrative

Other expenses 797 658 2,295 1,885

Early debt retirement - 9,732 2,784 10,786

Interest and related 27,361 25,218 80,767 77,540 amortization

Income from propertyoperations, excluding 172,790 150,609 509,602 453,920 deferrals and propertymanagement

Membership upgradesales upfront payments,and membership sales (5,785 ) (3,541 ) (16,729 ) (8,052 )commissions, deferred,net

Property management (17,015 ) (14,527 ) (48,955 ) (44,344 )

Income from property $ 149,990 $ 132,541 $ 443,918 $ 401,524 operations

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre. We define EBITDAre as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, gains or losses from sales of properties, impairments charges, and adjustments to reflect our share of EBITDAre of unconsolidated joint ventures. We compute EBITDAre in accordance with our interpretation of the standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We receive non-refundable upfront payments from membership upgrade contracts. In accordance with GAAP, the non-refundable upfront payments and related commissions are deferred and amortized over the estimated customer life. Although the NAREIT definition of EBITDAre does not address the treatment of non-refundable upfront payments, we believe that it is appropriate to adjust for the impact of the deferral activity in our calculation of EBITDAre.

We define Adjusted EBITDAre as EBITDAre excluding non-operating income and expense items, such as gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs, and other miscellaneous non-comparable items.

We believe that EBITDAre and Adjusted EBITDAre may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure the operating performance of an equity REIT.

The following table reconciles Consolidated net income to EBITDAre and Adjusted EBITDAre:

Quarters Ended September Nine Months Ended 30, September 30,

(amounts in thousands) 2021 2020 2021 2020

Consolidated net income $ 74,093 $ 53,468 $ 207,160 $ 173,045

Interest income (1,805 ) (1,801 ) (5,314 ) (5,399 )

Membership upgradesales upfront payments, 7,253 4,171 21,134 9,379 deferred, net

Membership salescommissions, deferred, (1,468 ) (630 ) (4,405 ) (1,327 )net

Real estatedepreciation and 44,414 38,581 138,127 115,937 amortization

Other depreciation and 718 658 2,162 1,885 amortization

Interest and related 27,361 25,218 80,767 77,540 amortization

Loss on sale of real - - 59 - estate, net

Adjustments to ourshare of EBITDAre of 259 270 778 812 unconsolidated jointventures

EBITDAre 150,825 119,935 440,468 371,872

Early debt retirement - 9,732 2,784 10,786

COVID-19 expenses - - - 1,446

Adjusted EBITDAre $ 150,825 $ 129,667 $ 443,252 $ 384,104

CORE. The Core properties include properties we owned and operated during all of 2020 and 2021. We believe Core is a measure that is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations.

NON-CORE. The Non-Core properties include properties that were not owned and operated during all of 2020 and 2021. This includes, but is not limited to, one MH community, seven RV communities and one marina acquired during 2020 and three RV communities and eleven marinas acquired during 2021.

INCOME FROM RENTAL OPERATIONS, NET OF DEPRECIATION. We use Income from rental operations, net of depreciation as an alternative measure to evaluate the operating results of our home rental program. Income from rental operations, net of depreciation, represents income from rental operations less depreciation expense on rental homes. We believe this measure is meaningful for investors as it provides a complete picture of the home rental program operating results, including the impact of depreciation, which affects our home rental program investment decisions.

NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital expenditures that do not directly result in increased revenue or expense savings and are primarily comprised of common area improvements, furniture and mechanical improvements.

FIXED CHARGES. Fixed charges consist of interest expense, amortization of note premiums and debt issuance costs.

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CONTACT: Paul Seavey (800) 247-5279