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 ELS Reports Second Quarter Results
   Monday, July 17, 2017 4:16:01 PM ET

Equity LifeStyle Properties, Inc. (ELS ) (referred to herein as "we," "us," and "our") today announced results for the quarter and six months ended June 30, 2017. All per share results are reported on a fully diluted basis unless otherwise noted.

Financial Results for the Quarter and Six Months Ended June 30, 2017

For the quarter ended June 30, 2017, total revenues increased $11.2 million, or 5.3 percent, to $221.3 million compared to $210.1 million for the same period in 2016. Net income available for Common Stockholders for the quarter ended June 30, 2017 increased $4.0 million, or $0.03 per Common Share, to $39.5 million, or $0.45 per Common Share, compared to $35.5 million, or $0.42 per Common Share, for the same period in 2016.



For the six months ended June 30, 2017, total revenues increased $23.5 million, or 5.5 percent, to $453.7 million compared to $430.2 million for the same period in 2016. Net income available for Common Stockholders for the six months ended June 30, 2017 increased $10.3 million, or $0.10 per Common Share, to $96.4 million, or $1.11 per Common Share, compared to $86.1 million, or $1.01 per Common Share, for the same period in 2016.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended June 30, 2017, Funds from Operations ("FFO") available for Common Stock and OP Unit holders increased $6.0 million, or $0.06 per Common Share, to $74.9 million or $0.81 per Common Share, compared to $68.9 million, or $0.75 per Common Share, for the same period in 2016. For the six months ended June 30, 2017, FFO available for Common Stock and OP Unit holders increased $14.5 million, or $0.14 per Common Share, to $168.0 million or $1.81 per Common Share, compared to $153.5 million, or $1.67 per Common Share, for the same period in 2016.

For the quarter ended June 30, 2017, Normalized Funds from Operations ("Normalized FFO") available for Common Stock and OP Unit holders increased $5.8 million, or $0.06 per Common Share, to $75.1 million, or $0.81 per Common Share, compared to $69.3 million, or $0.75 per Common Share, for the same period in 2016. For the six months ended June 30, 2017, Normalized FFO available for Common Stock and OP Unit holders increased $14.2 million, or $0.14 per Common Share, to $168.3 million, or $1.81 per Common Share, compared to $154.1 million, or $1.67 per Common Share, for the same period in 2016.

For the quarter ended June 30, 2017, property operating revenues, excluding deferrals, increased $14.0 million to $211.4 million compared to $197.4 million for the same period in 2016. For the six months ended June 30, 2017, property operating revenues, excluding deferrals, increased $28.5 million to $433.4 million compared to $404.9 million for the same period in 2016. For the quarter ended June 30, 2017, income from property operations, excluding deferrals and property management, increased $6.6 million to $120.0 million compared to $113.4 million for the same period in 2016. For the six months ended June 30, 2017, income from property operations, excluding deferrals and property management, increased $15.0 million to $255.7 million compared to $240.7 million for the same period in 2016.

For the quarter ended June 30, 2017, Core property operating revenues, excluding deferrals, increased approximately 5.5 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.8 percent compared to the same period in 2016. For the six months ended June 30, 2017, Core property operating revenues, excluding deferrals, increased approximately 4.9 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.3 percent compared to the same period in 2016.

Investment Activity

During the quarter, we completed the acquisition of Paradise Park Largo, a 108-site manufactured home community located in Largo, Florida. The purchase price of approximately $8.0 million was funded with available cash, loan assumption of $3.6 million, and new loan proceeds of $2.3 million.

During the quarter, we entered into a joint venture agreement to purchase Crosswinds Mobile Home Park, a 376-site manufactured home community located in St. Petersburg, Florida. Our ownership interest is 49% and the purchase price of the Property was $18.4 million.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago.

As of July 17, 2017, we own or have an interest in 393 quality properties in 32 states and British Columbia consisting of 147,107 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, July 18, 2017, at 10:00 a.m. Central Time. Please visit the Investor Information section at www.equitylifestyleproperties.com for the link. A replay of the webcast will be available for two weeks at this site.

Reporting Calendar

Quarterly financial results and related earnings conference calls for the next three quarters are expected to occur as follows:

                                                    
                                                                    Release Date                                                               Earnings Call
                                                              ------------------------                                           ---------------------------------------
Third Quarter 2017                                            Monday, October 16, 2017                                           Tuesday, October 17, 2017 10:00 a.m. CT
Fourth Quarter 2017                                           Monday, January 29, 2018                                           Tuesday, January 30, 2018 10:00 a.m. CT
First Quarter 2018                                            Monday, April 23, 2018                                             Tuesday, April 24, 2018 10:00 a.m. CT
                                                                                                                                  

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, real estate market conditions, the actual rate of decline in 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 retain and attract customers renewing, upgrading and entering right-to-use contracts;

-- our assumptions about rental and home sales markets;

-- our assumptions and guidance concerning 2017 estimated net income, FFO and Normalized FFO;

-- our ability to manage counterparty risk;

-- 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;

-- ability to obtain financing or refinance existing debt on favorable terms or at all;

-- the effect of interest rates;

-- the dilutive effects of issuing additional securities;

-- the effect of accounting for the entry of contracts with customers representing a right-to-use the properties under the Codification Topic "Revenue Recognition";

-- the outcome of pending or future lawsuits or actions brought 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.

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 "Risk Factors" in our most recent Annual Report on Form 10-K and subsequent quarterly reports.

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.

 
                                                                                     Investor Information
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                 Equity Research Coverage (1)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Robert W. Baird & Company                         Cantor Fitzgerald                 Green Street Advisors
Drew T. Babin                                                                           Gaurav Mehta                                                            Ryan Burke/Ryan Lumb
215-553-7816                                                                            212-915-1221                                                            949-640-8780
dbabin@rwbaird.com                                                                      gmehta@cantor.com                                                       rburke@greenstreetadvisors.com
                                                                                                                                                                rlumb@greenstreetadvisors.com
                                                                                                                                                                 
Bank of America Merrill Lynch Global Research                                           Citi Research                                                           Wells Fargo Securities
Jeffrey Spector                                                                         Michael Bilerman/ Nick Joseph                                           Todd Stender
646-855-1363                                                                            212-816-1383                                                            562-637-1371
jeff.spector@baml.com                                                                   michael.bilerman@citi.com                                               todd.stender@wellsfargo.com
                                                                                        nicholas.joseph@citi.com
                                                                                                                                                                 
BMO Capital Markets                                                                     Evercore ISI
John Kim                                                                                Steve Sakwa/ Gwen Clark
212-885-4170                                                                            212-446-5600
john.kim@bmo.com                                                                        steve.sakwa@evercoreisi.com
                                                                                        gwen.clark@evercoreisi.com
                                                                                                                                                                 
______________________
   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.
                                                 
                                                                       
                                                                                                                                                                         Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
(In millions, except Common Stock and OP Units outstanding
and per share data, unaudited)
                                                                                                               
                                                                                                                                                                                                                        As of and for the Three Months Ended
                                                                                                                 June 30,          March 31,        December 31,        September 30,           June 30,
                                                                                                                   2017              2017               2016                2016                  2016
                                                                                                              -----------   -------------------- -------------------- -----------   -------------------- -------------------- -------------   -------------------- -------------------- -------------   -------------------- -------------------- ------------------
Operating Information
-------------------------------------------------------------------
Total revenues                                                                                                  $  221.3                                                $ 232.4                                                  $ 214.0                                                   $ 226.2                                                     $  210.1
Net income                                                                                                      $   44.5                                                $  63.1                                                  $  42.4                                                   $  46.8                                                     $   40.8
Net income available for Common Stockholders                                                                    $   39.5                                                $  56.9                                                  $  37.0                                                   $  41.0                                                     $   35.5
Adjusted EBITDA (1)                                                                                             $  100.8                                                $ 118.9                                                  $ 101.4                                                   $ 103.4                                                     $   95.9
FFO available for Common Stock and OP Unit holders(1)(2)                                                        $   74.9                                                $  93.1                                                  $  72.5                                                   $  76.9                                                     $   68.9
Normalized FFO available for Common Stock and OP Unit holders(1)(2)                                             $   75.1                                                $  93.2                                                  $  75.2                                                   $  77.2                                                     $   69.3
Funds available for distribution (FAD) available for Common Stock                                               $   63.5                                                $  86.0                                                  $  65.8                                                   $  67.2                                                     $   58.4
and OP Unit holders(1)(2)
                                                                                                                                                                                                                                                                                                                                                   
Common Stock Outstanding (In thousands)
and Per Share Data
-------------------------------------------------------------------
Common Stock and OP Units, end of the period                                                                      92,840                                                 92,780                                                   92,699                                                    92,507                                                       92,499
Weighted average Common Stock and OP Units outstanding - fully                                                    93,063                                                 93,011                                                   92,965                                                    92,910                                                       92,264
diluted
Net income per Common Share - fully diluted                                                                     $   0.45                                                $  0.65                                                  $  0.43                                                   $  0.48                                                     $   0.42
FFO per Common Share - fully diluted                                                                            $   0.81                                                $  1.00                                                  $  0.78                                                   $  0.83                                                     $   0.75
Normalized FFO per Common Share - fully diluted                                                                 $   0.81                                                $  1.00                                                  $  0.81                                                   $  0.83                                                     $   0.75
Dividends per Common Share                                                                                      $  0.488                                                $ 0.488                                                  $ 0.425                                                   $ 0.425                                                     $  0.425
                                                                                                                                                                                                                                                                                                                                                   
Balance Sheet
-------------------------------------------------------------------
Total assets                                                                                                    $  3,485                                                $ 3,471                                                  $ 3,479                                                   $ 3,470                                                     $  3,486
Total liabilities                                                                                               $  2,386                                                $ 2,371                                                  $ 2,397                                                   $ 2,396                                                     $  2,420
                                                                                                                                                                                                                                                                                                                                                   
Market Capitalization
-------------------------------------------------------------------
Total debt                                                                                                      $  2,072                                                $ 2,078                                                  $ 2,110                                                   $ 2,111                                                     $  2,134
Total market capitalization (3)                                                                                 $ 10,224                                                $ 9,364                                                  $ 8,930                                                   $ 9,387                                                     $  9,675
                                                                                                                                                                                                                                                                                                                                                   
Ratios
-------------------------------------------------------------------
Total debt / total market capitalization                                                                            20.3  %                                                22.2   %                                                 23.6    %                                                 22.5    %                                                    22.1      %
Total debt + preferred stock / total market capitalization                                                          21.6  %                                                23.6   %                                                 25.2    %                                                 23.9    %                                                    23.5      %
Total debt / Adjusted EBITDA (4)                                                                                     4.9                                                    5.0                                                      5.1                                                       5.2                                                          5.3
Interest coverage (5)                                                                                                4.3                                                    4.2                                                      4.1                                                       4.1                                                          4.0
Fixed charges + preferred distributions coverage (6)                                                                 3.9                                                    3.8                                                      3.7                                                       3.6                                                          3.5
 
______________________
   1.      See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                 end of the supplemental information for definitions of Adjusted
                                                 EBITDA, FFO, Normalized FFO and FAD; and reconciliation of
                                                 Consolidated net income to Adjusted EBITDA.
   2.                                            See page 7 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 available for Common Stock and OP Unit
                                                 holders.
   3.                                            See page 16 for market capitalization calculation as of June 30,
                                                 2017.
   4.                                            Calculated using trailing twelve months Adjusted EBITDA. We believe
                                                 trailing twelve months Adjusted EBITDA provides additional
                                                 information for determining our ability to meet future debt service
                                                 requirements.
   5.                                            Interest coverage is calculated by dividing trailing twelve months
                                                 Adjusted EBITDA by the interest expense incurred during the same
                                                 period.
   6.                                            See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                 end of the supplemental information for a definition of fixed
                                                 charges. This ratio is calculated by dividing trailing twelve months
                                                 Adjusted EBITDA by the sum of fixed charges and preferred stock
                                                 dividends during the same period.
                                                 
 
                                                                                                                    Balance Sheet
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
(In thousands, except share and per share data)
                                                                                                      
                                                                                                                                       
                                                                                                                                            June 30,
                                                                                                                                              2017                                                                         December 31,
                                                                                                                                           (unaudited)                                                                         2016
                                                                                                                             ------------------------------------                                             ------------------------------------
Assets
Investment in real estate:
      Land                                                                                                                         $ 1,167,510                                                                      $ 1,163,987
      Land improvements                                                                                                              2,922,201                                                                        2,893,759
      Buildings and other depreciable property                                                                                         641,931                                                       627,590  
                                                                                                                             --------------------------------------                                           --------------------------------------
                                                                                                                                     4,731,642                                                                        4,685,336
      Accumulated depreciation                                                                                                      (1,459,931 )                                                                     (1,399,531 )
                                                                                                                             --------------------------------------                                           --------------------------------------
         Net investment in real estate                                                                                               3,271,711                                                                        3,285,805
Cash                                                                                                                                    67,740                                                                           56,340
Notes receivable, net                                                                                                                   48,253                                                                           34,520
Investment in unconsolidated joint ventures                                                                                             21,766                                                                           19,369
Deferred commission expense                                                                                                             31,453                                                                           31,375
Escrow deposits, goodwill, and other assets, net (1)                                                                                    44,435                                                        51,578  
                                                                                                                             --------------------------------------                                           --------------------------------------
      Total Assets                                                                                                                 $ 3,485,358                                                   $ 3,478,987  
                                                                                                                             ======= ========= ====================                                           ======= ========= ====================
Liabilities and Equity
Liabilities:
      Mortgage notes payable                                                                                                       $ 1,855,028                                                                      $ 1,891,900
      Term loan                                                                                                                        199,483                                                                          199,379
      Accrued expenses and accounts payable (1)                                                                                         93,451                                                                           89,864
      Deferred revenue - upfront payments from right-to-use contracts                                                      83,580                                                                           81,484
      Deferred revenue - right-to-use annual payments                                                                      12,559                                                                            9,817
      Accrued interest payable                                                                                                           8,044                                                                            8,379
      Rents and other customer payments received in advance and security                                                                88,543                                                                           76,906
      deposits
      Distributions payable                                                                                                             45,259                                                        39,411  
                                                                                                                             --------------------------------------                                           --------------------------------------
         Total Liabilities                                                                                                           2,385,947                                                     2,397,140  
                                                                                                                             --------------------------------------                                           --------------------------------------
Equity:
   Stockholders’ Equity:
      Preferred stock, $0.01 par value, 9,945,539 shares authorized as of                                                       --                                                                   --
      June 30, 2017 and December 31, 2016; none issued and outstanding.
      6.75% Series C Cumulative Redeemable Perpetual Preferred Stock,                                                                  136,144                                                                          136,144
      $0.01 par value, 54,461 shares authorized and 54,458 issued and
      outstanding as of June 30, 2017 and December 31, 2016 at liquidation
      value
      Common stock, $0.01 par value, 200,000,000 shares authorized as of                                                                   868                                                                              854
      June 30, 2017 and December 31, 2016; 87,004,507 and 85,529,386
      shares issued and outstanding as of June 30, 2017 and December 31,
      2016, respectively
      Paid-in capital                                                                                                                1,121,307                                                                        1,103,048
      Distributions in excess of accumulated earnings                                                                                 (219,641 )                                                                       (231,276 )
      Accumulated other comprehensive income (loss)                                                                                         30                                                          (227 )
                                                                                                                             --------------------------------------                                           --------------------------------------
      Total Stockholders’ Equity                                                                          1,038,708                                                                        1,008,543
      Non-controlling interests - Common OP Units                                                                          60,703                                                        73,304  
                                                                                                                             --------------------------------------                                           --------------------------------------
         Total Equity                                                                                                                1,099,411                                                     1,081,847  
                                                                                                                             --------------------------------------                                           --------------------------------------
         Total Liabilities and Equity                                                                                              $ 3,485,358                                                   $ 3,478,987  
                                                                                                                             ======= ========= ====================                                           ======= ========= ====================
                                                                                                                                                                                                                                 
1.     As of December 31, 2016, Escrow deposits, goodwill, and other
                                             assets, net includes insurance receivable of approximately $10.9
                                             million, and Accrued expenses and accounts payable includes
                                             approximately $13.3 million litigation settlement payable related to
                                             resolution of the California lawsuits. These amounts were received
                                             and paid during the first quarter of 2017.
                                              
                                                                                                                                                                                         
                                                                                                                                                                            Consolidated Income Statement
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                       
(In thousands, unaudited)
                                                                                                                                                                                                                                                                       
                                                                                                                                                               Quarters Ended                                                                                                                                        Six Months Ended
                                                                                                                                                                  June 30,                                                                                                                                               June 30,
                                                                                                                              2017                                 2016                                                                       2017                                   2016
                                                                                                                ---------------------------------                                          ---------------------------------                                          ---------------------------------                                          ------------------------------------
Revenues:
Community base rental income                                                                                      $ 121,964                                                                  $ 115,385                                                                  $ 242,656                                                                     $ 229,461
Rental home income                                                                                                    3,632                                                                      3,543                                                                      7,237                                                                         7,088
Resort base rental income                                                                                            50,055                                                                     44,732                                                                    111,123                                                                       100,166
Right-to-use annual payments                                                                                         11,350                                                                     11,187                                                                     22,602                                                                        22,241
Right-to-use contracts current period, gross                                                                          3,798                                                                      3,086                                                                      7,004                                                                         5,618
Right-to-use contract upfront payments, deferred, net                                                                (1,321 )                                                                     (798 )                                                                   (2,096 )                                                                      (1,100 )
Utility and other income                                                                                             20,650                                                                     19,523                                                                     42,776                                                                        40,316
Gross revenues from home sales                                                                                        7,833                                                                      9,130                                                                     14,860                                                                        17,344
Brokered resale revenue and ancillary services revenues, net                                                            444                                                                        398                                                                      2,105                                                                         1,816
Interest income                                                                                                       1,798                                                                      1,625                                                                      3,568                                                                         3,285
Income from other investments, net                                                                                    1,109                                                   2,270                                                   1,866                                                      3,993  
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                                           -----------------------------------
   Total revenues                                                                                                   221,312                                                                    210,081                                                                    453,701                                                                       430,228
                                                                                                                                                                                                                                                                                                                                                  
Expenses:
Property operating and maintenance                                                                                   72,901                                                                     66,647                                                                    140,955                                                                       129,601
Rental home operating and maintenance                                                                                 1,657                                                                      1,581                                                                      3,208                                                                         3,106
Real estate taxes                                                                                                    13,943                                                                     12,869                                                                     27,980                                                                        26,067
Sales and marketing, gross                                                                                            2,894                                                                      2,931                                                                      5,584                                                                         5,424
Right-to-use contract commissions, deferred, net                                                                       (112 )                                                                     (116 )                                                                     (196 )                                                                         (12 )
Property management                                                                                                  13,023                                                                     12,044                                                                     25,583                                                                        23,807
Depreciation on real estate assets and rental homes                                                                  30,247                                                                     29,029                                                                     60,357                                                                        57,684
Amortization of in-place leases                                                                                         958                                                                        428                                                                      1,990                                                                           763
Cost of home sales                                                                                                    7,895                                                                      9,481                                                                     15,014                                                                        17,762
Home selling expenses                                                                                                   929                                                                        805                                                                      1,854                                                                         1,639
General and administrative                                                                                            8,461                                                                      8,255                                                                     15,834                                                                        15,663
Other expenses, including property rights initiatives                                                                   271                                                                        527                                                                        490                                                                         1,181
Interest and related amortization                                                                                    24,822                                                  25,561                                                  49,701                                                     51,195  
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                                           -----------------------------------
   Total expenses                                                                                                   177,889                                                 170,042                                                 348,354                                                    333,880  
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                                           -----------------------------------
      Income before equity in income of unconsolidated joint ventures                                                43,423                                                                     40,039                                                                    105,347                                                                        96,348
    Equity in income of unconsolidated joint ventures                                                                 1,040                                                     765                                                   2,190                                                      1,646  
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                                           -----------------------------------
Consolidated net income                                                                                              44,463                                                  40,804                                                 107,537                                                     97,994  
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                  
Income allocated to non-controlling interest-Common OP Units                                                         (2,649 )                                                                   (2,998 )                                                                   (6,539 )                                                                      (7,308 )
Series C Redeemable Perpetual Preferred Stock Dividends                                                              (2,316 )                                                                   (2,316 )                                                                   (4,613 )                                                   (4,613 )
                                                                                                                --------------------------------                                           --------------------------------                                           --------------------------------                      -------------------- -----------------------------------
Net income available for Common Stockholders                                                                      $  39,498                                               $  35,490                                               $  96,385                                                  $  86,073  
                                                                                                                === ======= ====================                                           === ======= ====================                                           === ======= ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                 

Non-GAAP Financial Measures

                                                                        
                                               Second Quarter 2017 - Selected Non-GAAP Financial Measures
--------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                
(In millions, except per share data, unaudited)
                                                                                                                
                                                                                                                             Quarter Ended
                                                                                                                             June 30, 2017
                                                                                                               -----------------------------------------
Income from property operations, excluding deferrals and property                                                      $     118.4
management - 2017 Core (1)
Income from property operations, excluding deferrals and property                                                              1.6
management - Acquisitions (2)
Property management and general and administrative (excluding                                                                (21.3 )
transaction costs)
Other income and expenses                                                                                                      3.5
Financing costs and other                                                                                                    (27.1 )
                                                                                                               ----------------------------------------
   Normalized FFO available for Common Stock and OP Unit holders                                                              75.1
   (3)
Transaction costs                                                                                                             (0.2 )
                                                                                                               ----------------------------------------
   FFO available for Common Stock and OP Unit holders (3)                                                              $      74.9  
                                                                                                               ========= ========= ====================
                                                                                                                
Normalized FFO per Common Share - fully diluted                                                                        $      0.81
FFO per Common Share - fully diluted                                                                                   $      0.81
                                                                                                                
                                                                                                                
   Normalized FFO available for Common Stock and OP Unit holders (3)                                                   $      75.1
Non-revenue producing improvements to real estate                                                                            (11.6 )
                                                                                                               ----------------------------------------
                                                                                                                       $      63.5  
   FAD available for Common Stock and OP Unit holders (3)
                                                                                                               ========= ========= ====================
                                                                                                                
Weighted average Common Stock and OP Units - fully diluted                                                                    93.1
___________________
  1.     See Non-GAAP Financial Measure Definitions and Other Terms at the
                                               end of the supplemental information for definitions of Non-GAAP
                                               financial measures Income from property operations, excluding
                                               deferrals and property management, and Core, and reconciliation of
                                               income from property operations, excluding deferrals and property
                                               management to income before equity in income of unconsolidated joint
                                               ventures. See page 9 for details of the 2017 Core Income from
                                               Property Operations, excluding deferrals and property management.
  2.                                           See Non-GAAP Financial Measure Definitions and Other Terms at the
                                               end of the supplemental information for a definition of Acquisition
                                               properties. See page 10 for details of the Income from Property
                                               Operations, excluding deferrals and property management for the
                                               Acquisitions.
  3.                                           See page 7 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 available for Common Stock and OP Unit
                                               holders. See definitions of Non-GAAP financial measures of FFO,
                                               Normalized FFO and FAD and Non-revenue producing improvements in
                                               Non-GAAP Financial Measure Definitions and Other Terms at the end of
                                               the supplemental information.
                                                
                                                                                                                                                                                     
                                                                                                                                                           Reconciliation of Net Income to Non-GAAP Financial Measures
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                   
(In thousands, except per share data, unaudited)
                                                                                                                                                                                                                                                                   
                                                                                                                                                            Quarters Ended                                                                                                                                       Six Months Ended
                                                                                                                                                               June 30,                                                                                                                                              June 30,
                                                                                                                            2017                                2016                                                                      2017                                   2016
                                                                                                              --------------------------------                                          --------------------------------                                          ---------------------------------                                          ------------------------------------
                                                                                                                $ 39,498                                                                  $ 35,490                                                                  $  96,385                                                                     $  86,073
   Net income available for Common Stockholders
Income allocated to Common OP Units                                                                                2,649                                                                     2,998                                                                      6,539                                                                         7,308
Right-to-use contract upfront payments, deferred, net (1)                                                          1,321                                                                       798                                                                      2,096                                                                         1,100
Right-to-use contract commissions, deferred, net (2)                                                                (112 )                                                                    (116 )                                                                     (196 )                                                                         (12 )
Depreciation on real estate assets                                                                                27,608                                                                    26,362                                                                     55,061                                                                        52,370
Depreciation on rental homes                                                                                       2,639                                                                     2,667                                                                      5,296                                                                         5,314
Amortization of in-place leases                                                                                      958                                                                       428                                                                      1,990                                                                           763
Depreciation on unconsolidated joint ventures                                                                        364                                                    305                                                     811                                                        595  
                                                                                                              -------------------------------                                           -------------------------------                                           --------------------------------                                           -----------------------------------
   FFO available for Common Stock and OP Unit holders (3)                                                         74,925                                                                    68,932                                                                    167,982                                                                       153,511
Transaction costs (4)                                                                                                220                                                    398                                                     324                                                        598  
                                                                                                              -------------------------------                                           -------------------------------                                           --------------------------------                                           -----------------------------------
   Normalized FFO available for Common Stock and OP Unit holders(3)                                               75,145                                                                    69,330                                                                    168,306                                                                       154,109
Non-revenue producing improvements to real estate                                                                (11,648 )                                                                 (10,980 )                                                                  (18,808 )                                                                     (18,317 )
                                                                                                              -------------------------------                                           -------------------------------                                           --------------------------------                                           -----------------------------------
   FAD available for Common Stock and OP Unit holders (3)                                                       $ 63,497                                               $ 58,350                                               $ 149,498                                                  $ 135,792  
                                                                                                              === ====== ====================                                           === ====== ====================                                           === ======= ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                              
Net income available per Common Share - Basic                                                                   $   0.46                                                                  $   0.42                                                                  $    1.12                                                                     $    1.02
Net income available per Common Share - Fully Diluted                                                           $   0.45                                                                  $   0.42                                                                  $    1.11                                                                     $    1.01
                                                                                                                                                                                                                                                                                                                                              
FFO per Common Share & OP Units-Basic                                                                           $   0.81                                                                  $   0.75                                                                  $    1.81                                                                     $    1.68
FFO per Common Share & OP Units-Fully Diluted                                                                   $   0.81                                                                  $   0.75                                                                  $    1.81                                                                     $    1.67
                                                                                                                                                                                                                                                                                                                                              
Normalized FFO per Common Share & OP Units-Basic                                                                $   0.81                                                                  $   0.76                                                                  $    1.82                                                                     $    1.68
Normalized FFO per Common Share & OP Units-Fully Diluted                                                        $   0.81                                                                  $   0.75                                                                  $    1.81                                                                     $    1.67
                                                                                                                                                                                                                                                                                                                                              
Average Common Stock - Basic                                                                                      86,763                                                                    84,516                                                                     86,408                                                                        84,419
Average Common Stock and OP Units - Basic                                                                         92,649                                                                    91,721                                                                     92,643                                                                        91,625
Average Common Stock and OP Units - Fully Diluted                                                                 93,063                                                                    92,264                                                                     93,041                                                                        92,163
_____________________________
1.          We are required by GAAP to defer, over the estimated customer life,
                                                  recognition of non-refundable upfront payments from sales of new and
                                                  upgrade right-to-use contracts. For 2017, the customer life is
                                                  estimated to be 40 years and is based upon our experience operating
                                                  the membership platform since 2008. The amount shown represents the
                                                  deferral of a substantial portion of current period upgrade sales,
                                                  offset by amortization of prior period sales.
2.                                                We are required by GAAP to defer recognition of commissions paid
                                                  related to the entry of right-to-use contracts. The deferred
                                                  commissions will be amortized using the same method as used for the
                                                  related non-refundable upfront payments from the entry of
                                                  right-to-use contracts and upgrade sales. The amount shown
                                                  represents the deferral of a substantial portion of current period
                                                  commissions on those contracts, offset by the amortization of prior
                                                  period commissions.
3.                                                See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                  end of the supplemental information for Non-GAAP financial measure
                                                  definitions of FFO, Normalized FFO and FAD and for a definition of
                                                  Non-revenue producing improvements.
4.                                                Included in General and administrative on the Consolidated Income
                                                  Statement on page 4.
                                                   
                                                                                                                                                                                 
                                                                                                                                                             Consolidated Income from Property Operations (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                               
(In millions, except home site and occupancy figures,
unaudited)
                                                                                                                                                                                                                                                               
                                                                                                                                                         Quarters Ended                                                                                                                                     Six Months Ended
                                                                                                                                                            June 30,                                                                                                                                            June 30,
                                                                                                                         2017                               2016                                                                     2017                                 2016
                                                                                                            -------------------------------                                          -------------------------------                                          -------------------------------                                          -----------------------------------
Community base rental income (2)                                                                              $ 122.0                                                                  $ 115.4                                                                  $ 242.7                                                                     $  229.5
Rental home income                                                                                                3.6                                                                      3.5                                                                      7.2                                                                          7.1
Resort base rental income (3)                                                                                    50.1                                                                     44.8                                                                    111.1                                                                        100.2
Right-to-use annual payments                                                                                     11.3                                                                     11.2                                                                     22.6                                                                         22.2
Right-to-use contracts current period, gross                                                                      3.8                                                                      3.1                                                                      7.0                                                                          5.6
Utility and other income                                                                                         20.6                                                  19.4                                                  42.8                                                      40.3  
                                                                                                            ------------------------------                                           ------------------------------                                           ------------------------------                                           ----------------------------------
   Property operating revenues                                                                                  211.4                                                                    197.4                                                                    433.4                                                                        404.9
                                                                                                                                                                                                                                                                                                                                        
Property operating, maintenance and real estate taxes                                                            86.8                                                                     79.5                                                                    168.9                                                                        155.7
Rental home operating and maintenance                                                                             1.7                                                                      1.6                                                                      3.2                                                                          3.1
Sales and marketing, gross                                                                                        2.9                                                   2.9                                                   5.6                                                       5.4  
                                                                                                            ------------------------------                                           ------------------------------                                           ------------------------------                                           ----------------------------------
   Property operating expenses                                                                                   91.4                                                  84.0                                                 177.7                                                     164.2  
                                                                                                            ------------------------------                                           ------------------------------                                           ------------------------------                                           ----------------------------------
Income from property operations, excluding deferrals and property                                             $ 120.0                                               $ 113.4                                               $ 255.7                                                  $  240.7  
management (1)
                                                                                                            === ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                        
Manufactured home site figures and occupancy averages:
Total sites                                                                                                    71,043                                                                   70,409                                                                   71,017                                                                       70,262
Occupied sites                                                                                                 66,822                                                                   65,607                                                                   66,732                                                                       65,380
Occupancy %                                                                                                      94.0                    %                                                93.2                    %                                                93.9                    %                                                    93.1                    %
Monthly base rent per site                                                                                    $   608                                                                  $   586                                                                  $   606                                                                     $    585
                                                                                                                                                                                                                                                                                                                                        
Resort base rental income:
Annual                                                                                                        $  32.9                                                                  $  30.4                                                                  $  65.0                                                                         60.4
Seasonal                                                                                                          4.9                                                                      4.1                                                                     23.4                                                                         20.3
Transient                                                                                                        12.3                                                  10.3                                                  22.7                                                      19.5  
                                                                                                            ------------------------------                                           ------------------------------                                           ------------------------------                                           ----------------------------------
   Total resort base rental income                                                                            $  50.1                                               $  44.8                                               $ 111.1                                                  $  100.2  
                                                                                                            === ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====== ====================
_________________________
1.         See page 4 for the Consolidated Income Statement and see Non-GAAP
                                                 Financial Measure Definitions and Other Terms at the end of the
                                                 supplemental information for Non-GAAP measure definitions and
                                                 reconciliation of Income from property operations, excluding
                                                 deferrals and property management.
2.                                               See the manufactured home site figures and occupancy averages below
                                                 within this table.
3.                                               See resort base rental income detail included below within this
                                                 table.
                                                  
                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                2017 Core Income from Property Operations (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
(In millions, except home site and occupancy figures,
unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                         Quarters Ended                                                                                                                                                                                                           Six Months Ended
                                                                                                                                                            June 30,                                                                                                         %                                                                                                        June 30,                                                                                                    %
                                                                                                                         2017                               2016                                                                  Change (2)                                                                 2017                               2016                                                             Change (2)
                                                                                                            ----------------------------                                             ----------------------------                                             ---------------------------                                             ----------------------------                                             ----------------------------                                             -------------------
Community base rental income (3)                                                                              $ 120.7                                                                  $ 115.2                                                                 4.8                        %                                             $ 240.3                                                                  $ 229.3                                                                       4.8         %
Rental home income                                                                                                3.6                                                                      3.5                                                                 2.5                        %                                                 7.2                                                                      7.1                                                                       2.1         %
Resort base rental income (4)                                                                                    47.8                                                                     44.2                                                                 8.1                        %                                               104.6                                                                     99.4                                                                       5.3         %
Right-to-use annual payments                                                                                     11.3                                                                     11.2                                                                 1.5                        %                                                22.6                                                                     22.2                                                                       1.6         %
Right-to-use contracts current period, gross                                                                      3.8                                                                      3.1                                                                23.1                        %                                                 7.0                                                                      5.6                                                                      24.7         %
Utility and other income                                                                                         20.3                                                  19.5                                              4.4     %                                                42.0                                                  40.2                                                    4.4         %
                                                                                                            ------------------------------                                           ------------------------------                                           ---- -------------------- ---                                           ------------------------------                                           ------------------------------                                           ---------- ---------
                                                                                                                207.5                                                                    196.7                                                                 5.5                        %                                               423.7                                                                    403.8                                                                       4.9         %
   Property operating revenues
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Property operating, maintenance and real estate taxes                                                            84.5                                                                     79.2                                                                 7.3                        %                                               164.4                                                                    155.1                                                                       6.0         %
Rental home operating and maintenance                                                                             1.7                                                                      1.6                                                                 4.8                        %                                                 3.2                                                                      3.1                                                                       3.3         %
Sales and marketing, gross                                                                                        2.9                                                   2.9                                             (1.3 )                      %                                                 5.6                                                   5.4                                                    2.9         %
                                                                                                            --------  --------------------                                           --------  --------------------                                           ---- -------------------- ---                                           --------  --------------------                                           --------  --------------------                                           ---------- ---------
   Property operating expenses                                                                                   89.1                                                  83.7                                              6.5     %                                               173.2                                                 163.7                                                    5.9         %
                                                                                                            ------------------------------                                           ------------------------------                                           ---- -------------------- ---                                           ------------------------------                                           ------------------------------                                           ---------- ---------
Income from property operations, excluding deferrals and property                                             $ 118.4                                               $ 113.0                                              4.8                        %                                             $ 250.5                                               $ 240.1                                                    4.3         %
management (1)
                                                                                                            === ===== ====================                                           === ===== ====================                                                                                                                   === ===== ====================                                           === ===== ====================
Occupied sites (5)                                                                                             65,981                                                                   65,406
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Core manufactured home site figures and occupancy averages:
Total sites                                                                                                    69,987                                                                   69,984                                                                                                                                           69,979                                                                   69,985
Occupied sites                                                                                                 65,898                                                                   65,312                                                                                                                                           65,826                                                                   65,233
Occupancy %                                                                                                      94.2                    %                                                93.3                    %                                                                                                                        94.1                    %                                                93.2                    %
Monthly base rent per site                                                                                    $   611                                                                  $   588                                                                                                                                          $   608                                                                  $   586
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Resort base rental income:
Annual                                                                                                        $  31.9                                                                  $  30.1                                                                 6.0                        %                                             $  63.1                                                                  $  60.0                                                                       5.3         %
Seasonal                                                                                                          4.5                                                                      4.0                                                                13.7                        %                                                20.9                                                                     20.1                                                                       3.8         %
Transient                                                                                                        11.4                                                  10.1                                             12.3     %                                                20.6                                                  19.3                                                    6.7         %
                                                                                                            ------------------------------                                           ------------------------------                                           ---- -------------------- ---                                           ------------------------------                                           ------------------------------                                           ---------- ---------
   Total resort base rental income                                                                            $  47.8                                               $  44.2                                              8.1                        %                                             $ 104.6                                               $  99.4                                                    5.3         %
                                                                                                            === ===== ====================                                           === ===== ====================                                                                                                                   === ===== ====================                                           === ===== ====================
___________________________
1.         See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                 end of the supplemental information for definitions of Non-GAAP
                                                 measures Income from property operations, excluding deferrals and
                                                 property management, and Core.
2.                                               Calculations prepared using actual results without rounding.
3.                                               See the Core manufactured home site figures and occupancy averages
                                                 included below within this table.
4.                                               See resort base rental income detail included below within this
                                                 table.
5.                                               Occupied sites as of the end of the period shown. Occupied sites
                                                 have increased by 255 from 65,726 at December 31, 2016.
                                                  
                                                                                                        
                                                                                 Acquisitions - Income from Property Operations (1)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                
(In millions, unaudited)
                                                                                                                                                                                                
                                                                                                                        Quarter                                                                Six Months
                                                                                                                         Ended                                                                    Ended
                                                                                                                       June 30,                                                                 June 30,
                                                                                                                         2017                                                                     2017
                                                                                                            ----------------------------                                             ----------------------------
Community base rental income                                                                                   $  1.3                                                                   $  2.4
Resort base rental income                                                                                         2.3                                                                      6.5
Utility income and other property income                                                                          0.3                                                   0.8  
                                                                                                            ------------------------------                                           ------------------------------
   Property operating revenues                                                                                    3.9                                                                      9.7
                                                                                                                                                                                                
   Property operating expenses                                                                                    2.3                                                   4.5  
                                                                                                            ------------------------------                                           ------------------------------
Income from property operations, excluding deferrals and property                                              $  1.6                                                $  5.2  
management
                                                                                                            ==== ==== ====================                                           ==== ==== ====================
______________________
1.        See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                end of the supplemental information for a definition of Acquisitions.
                                                 
                                                                                                                                                                                                                        
                                                                                                                                                                                     Income from Rental Home Operations
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                             
(In millions, except occupied rentals, unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                 Quarters Ended                                                                                                                                                                     Six Months Ended
                                                                                                                                                                    June 30,                                                                                                                                                                            June 30,
                                                                                                                         2017                                                                                      2016                                                                                      2017                                                                                      2016
                                                                                                   ------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------
Manufactured homes:
New home                                                                                                              $   7.0                                                                                   $   6.3                                                                                   $  13.6                                                                                   $  12.5
Used home                                                                                              5.5                                                 6.3                                                11.3                                                12.7  
                                                                                                   -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
   Rental operations revenues (1)                                                                     12.5                                                                   12.6                                                                   24.9                                                                   25.2
Rental operations expense                                                                              1.7                                                 1.6                                                 3.2                                                 3.1  
                                                                                                   -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
   Income from rental operations                                                                      10.8                                                                   11.0                                                                   21.7                                                                   22.1
Depreciation on rental homes                                                                           2.6                                                 2.7                                                 5.3                                                 5.3  
                                                                                                   -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
   Income from rental operations, net of depreciation(4)                                                              $   8.2                                                                $   8.3                                                                $  16.4                                                                $  16.8  
                                                                                                   ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                             
Occupied rentals: (2)
New                                                                                                  2,517                                                                  2,267
Used                                                                                                 2,157                                               2,595  
                                                                                                   -------------------- ----- --------------------                                           -------------------- ----- --------------------
   Total occupied rental sites                                                                       4,674                                               4,862  
                                                                                                   ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                As of
                                                                                                                                                                  June 30, 2017                                                                                                                                                                       June 30, 2016
Cost basis in rental homes: (3)                                                                                          Gross                                                                                    Net of                                                                                     Gross                                                                                    Net of
                                                                                                                                                                                                               Depreciation                                                                                                                                                                        Depreciation
                                                                                                   ---------------------------------------------                                             ---------------------------------------------                                             ---------------------------------------------                                             ---------------------------------------------
New                                                                                                                   $ 129.9                                                                                   $ 100.1                                                                                   $ 120.7                                                                                   $  96.2
Used                                                                                                  48.2                                                18.5                                                54.7                                                30.4  
                                                                                                   -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
                                                                                                                      $ 178.1                                                                $ 118.6                                                                $ 175.4                                                                $ 126.6  
   Total rental homes
                                                                                                   ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================
________________
1.       For the quarters ended June 30, 2017 and 2016, approximately $8.8
                                               million and $9.0 million, respectively, of the rental operations
                                               revenue are included in the Community base rental income in the
                                               Consolidated Income from Property Operations table on page 8. The
                                               remainder of the rental operations revenue is included in the
                                               Rental home income in the Consolidated Income from Property
                                               Operations table on page 8.
2.                                             Occupied rentals as of the end of the period in our Core portfolio.
                                               Included in the quarters ended June 30, 2017 and 2016 are 262 and
                                               143 homes rented through our ECHO joint venture, respectively. For
                                               the six months ended June 30, 2017 and 2016, the rental home
                                               investment associated with our ECHO joint venture totals
                                               approximately $8.8 million and $5.4 million, respectively.
3.                                             Includes both occupied and unoccupied rental homes. New home cost
                                               basis does not include the costs associated with our ECHO joint
                                               venture. At both June 30, 2017 and 2016, our investment in the ECHO
                                               joint venture was approximately $15.4 million.
4.                                             See Non-GAAP Financial Measure Definitions and Other Terms at the
                                               end of the supplemental information for the Non-GAAP measure
                                               definition of Income from rental operations, net of depreciation.
                                                
                                              
                                              Total Sites and Home Sales
------------------------------------------------------------------------------------------------------------------
                                                                                                   
(In thousands, except sites and home sale volumes, unaudited)
                                                                                                   
Summary of Total Sites as of June 30, 2017
                                                                                                    Sites
                                                                                     ----------------------------------
Community sites                                                                            71,100
Resort sites:
   Annuals                                                                                 26,600
   Seasonal                                                                                11,200
   Transient                                                                               10,500
Membership (1)                                                                             24,100
Joint Ventures (2)                                                                          3,600  
                                                                                     ------------ --------------------
Total                                                                                     147,100  
                                                                                     ============ ====================
                                                                                                   
Home Sales - Select Data                                                                 
                                                                                                               Quarters Ended                                                                                                  Six Months Ended
                                                                                                                  June 30,                                                                                                         June 30,
                                                                                          2017                                               2016                                                2017                                                          2016
                                                                                        ------                                             ------                                             -------                                             ----------------------------
Total New Home Sales Volume (3)                                                             120                                                180                                                 240                                                  301
                                                                                             41                                                 63                                                  78                                                   97
   New Home Sales Volume - ECHO joint venture
New Home Sales Gross Revenues(3)                                                        $ 4,548                                            $ 6,044                                             $ 9,491                                             $ 11,443
                                                                                                                                                                                                                                                             
Total Used Home Sales Volume                                                                338                                                342                                                 623                                                  653
Used Home Sales Gross Revenues                                                          $ 3,285                                            $ 3,086                                             $ 5,369                                             $  5,901
                                                                                                                                                                                                                                                             
Brokered Home Resales Volume                                                                252                                                217                                                 420                                                  403
Brokered Home Resale Revenues, net                                                      $   346                                            $   329                                             $   588                                             $    608
__________________________
1.         Sites primarily utilized by approximately 107,500 members. Includes
                                                 approximately 5,700 sites rented on an annual basis.
2.                                               Joint venture income is included in the Equity in income from
                                                 unconsolidated joint ventures in the Consolidated Income Statement
                                                 on page 4.
3.                                               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 our ECHO joint venture.
                                                  
                                                                                                                   
                                                                                            2017 Guidance - Selected Financial Data (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                               
Our guidance acknowledges the existence of volatile economic
conditions, which may impact our current guidance assumptions.
Factors impacting 2017 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 sites; (iii)
scheduled or implemented rate increases on community and resort
sites; (iv) scheduled or implemented rate increases in annual
payments under right-to-use contracts; (v) occupancy changes; (vi)
our ability to retain and attract customers renewing or entering
right-to-use contracts; (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 millions, except per share data, unaudited)
                                                                                                                                                                                                               
                                                                                                                             Quarter Ended                                                                  Year Ended
                                                                                                                          September 30, 2017                                                             December 31, 2017
                                                                                                                 -------------------------------------                                          -----------------------------------
Income from property operations, excluding deferrals and property                                                      $   125.6                                                                     $  499.1
management - 2017 Core (2)
Income from property operations - Acquisitions (3)                                                                           1.5                                                                          8.8
Property management and general and administrative                                                                         (20.4 )                                                                      (81.0 )
Other income and expenses                                                                                                    3.8                                                                         13.8
Financing costs and other                                                                                                  (27.2 )                                                                     (108.3 )
                                                                                                                 ------------------------------------                                           ----------------------------------
Normalized FFO available for Common Stock and OP Unit holders (4)                                                           83.3                                                                        332.4
Transaction costs                                                                                                 --                                                      (0.3 )
                                                                                                                 ------------------------------------                                           ----------------------------------
FFO available for Common Stock and OP Unit holders (4)                                                                      83.3                                                                        332.1
                                                                                                                           (28.2 )                                                                     (114.1 )
   Depreciation on real estate and other
   Depreciation on rental homes                                                                                             (2.6 )                                                                      (10.6 )
   Deferral of right-to-use contract sales revenue and commission, net                                                      (0.9 )                                                                       (3.4 )
   Income allocated to non-controlling interest-Common OP Units                                                             (3.2 )                                                                      (12.8 )
                                                                                                                 ------------------------------------                                           ----------------------------------
Net income available for Common Stockholders                                                                           $    48.4                                                  $  191.2  
                                                                                                                 ======= ======= ====================                                           ====== ====== ====================
                                                                                                                                                                                                               
                                                                                                                                                                                                               
Net income per Common Share - fully diluted (5)                                                                    $0.52 - $0.58                                                                $2.14 - $2.24
FFO per Common Share - fully diluted                                                                               $0.86 - $0.92                                                                $3.52 - $3.62
Normalized FFO per Common Share - fully diluted                                                                    $0.86 - $0.92                                                                $3.52 - $3.62
                                                                                                                                                                                                               
Weighted average Common Stock outstanding - fully diluted                                                                   93.1                                                                         93.1
_____________________________________
1.            Each line item represents the mid-point of a range of possible
                                                    outcomes and reflects management’s estimate of the most likely
                                                    outcome. Actual Normalized FFO available for Common Stock and OP
                                                    Unit holders, Normalized FFO per Common Share, FFO available for
                                                    Common Stock and OP Unit holders, FFO per Common Share, Net income
                                                    available for Common Stockholders and Net income per Common Share
                                                    could vary materially from amounts presented above if any of our
                                                    assumptions is incorrect.
2.                                                  See page 14 for 2017 Core Guidance Assumptions. Amount represents
                                                    2016 income from property operations, excluding deferrals and
                                                    property management, from the 2017 Core properties of $118.2
                                                    million multiplied by an estimated growth rate of 6.3% and $476.1
                                                    million multiplied by an estimated growth rate of 4.8% for the
                                                    quarter ended June 30, 2017 and the year ended December 31, 2017,
                                                    respectively.
3.                                                  See page 14 for the 2017 Assumptions regarding the Acquisition
                                                    properties.
4.                                                  See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                    end of the supplemental information for definitions of Normalized
                                                    FFO and FFO.
5.                                                  Net income per fully diluted Common Share is calculated before
                                                    Income allocated to non-controlling interest-Common OP Units.
                                                     
                                                                                                                                                                                          
                                                                                                                                                                                 2017 Core Guidance Assumptions (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, unaudited)
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                         Quarter                                                                        Third                                                                       Year Ended                                                                           2017
                                                                                                                          Ended                                                                     Quarter 2017
                                                                                                                      September 30,                                                                    Growth                                                                      December 31,                                                                         Growth
                                                                                                                          2016                                                                       Factors (2)                                                                       2016                                                                           Factors (2)
                                                                                                            -----------------------------                                             --------------------------------------                                             -----------------------------                                             ----------------------------------------------
Community base rental income                                                                                   $ 116.1                                                                           4.8                         %                                              $ 462.3                                                                   4.7                                         %
Rental home income                                                                                                 3.5                                                                           5.1                         %                                                 14.1                                                                   3.0                                         %
Resort base rental income (3)                                                                                     53.3                                                                           6.1                         %                                                196.8                                                                   5.2                                         %
Right-to-use annual payments                                                                                      11.3                                                                           0.8                         %                                                 45.0                                                                   0.8                                         %
Right-to-use contracts current period, gross                                                                       3.7                                                                          (9.9 )                       %                                                 12.3                                                                   5.5                                         %
Utility and other income                                                                                          21.0                                                        0.7      %                                                 80.9                                                1.6                      %
                                                                                                            -------------------------------                                           -------------- -------------------- ----                                           -------------------------------                                           ------ -------------------- --------------------
                                                                                                                 208.9                                                                           4.2                         %                                                811.4                                                                   4.3                                         %
   Property operating revenues
                                                                                                                                                                                                                                                                                                                                                    
Property operating, maintenance, and real estate taxes                                                            85.8                                                                           1.6                         %                                                317.3                                                                   3.7                                         %
Rental home operating and maintenance                                                                              1.8                                                                          (2.2 )                       %                                                  6.9                                                                  (1.6 )                                       %
Sales and marketing, gross                                                                                         3.1                                             --      %                                                 11.1                                                2.1                      %
                                                                                                            ---------  --------------------                                           -------------- -------------------- ----                                           ---------  --------------------                                           ------ -------------------- --------------------
   Property operating expenses                                                                                    90.7                                                        1.5      %                                                335.3                                                3.5                      %
                                                                                                            -------------------------------                                           -------------- -------------------- ----                                           -------------------------------                                           ------ -------------------- --------------------
Income from property operations, excluding deferrals and property                                              $ 118.2                                                        6.3      %                                              $ 476.1                                                4.8                      %
management
                                                                                                            ==== ===== ====================                                           ============== ==================== ====                                           ==== ===== ====================                                           ====== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                    
Resort base rental income:
Annual                                                                                                         $  30.9                                                                           5.6                         %                                              $ 122.3                                                                   5.3                                         %
Seasonal                                                                                                           3.8                                                                          10.0                         %                                                 30.2                                                                   4.4                                         %
Transient                                                                                                         18.6                                                        6.0      %                                                 44.3                                                5.5                      %
                                                                                                            -------------------------------                                           -------------- -------------------- ----                                           -------------------------------                                           ------ -------------------- --------------------
   Total resort base rental income                                                                             $  53.3                                                        6.1      %                                              $ 196.8                                                5.2                      %
                                                                                                            ==== ===== ====================                                           ============== ==================== ====                                           ==== ===== ====================                                           ====== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                            
                                                                                        2017 Assumptions Regarding Acquisition Properties (1)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, unaudited)
                                                                                                                                                                                                                
                                                                                                                       Quarter Ended                                                                     Year Ended
                                                                                                                       September 30,                                                                    December 31,
                                                                                                                         2017 (4)                                                                         2017 (4)
                                                                                                            --------------------------------                                             ----------------------------------------
Community base rental income                                                                                     $    1.4                                                                         $        5.1
Resort base rental income                                                                                             2.2                                                                                 11.4
Utility income and other property income                                                                              0.3                                                               1.5
                                                                                                            ----------------------------------                                           ----------------------
   Property operating revenues                                                                                        3.9                                                                                 18.0
                                                                                                                                                                                                                
Property operating, maintenance, and real estate taxes                                                                2.4                                                               9.2
                                                                                                            ----------------------------------                                           ----------------------
   Property operating expenses                                                                                                                                         
                                                                                                            -----------------------------------                                          ----------------------
Income from property operations, excluding deferrals and property                                                $    1.5                                                      $        8.8
management
                                                                                                            ====== ====== ====================                                           ========== ==========
_____________________________________
1.            See Non-GAAP Financial Measure Definitions and Other Terms at the
                                                    end of the supplemental information for a definition of Core and
                                                    Acquisition properties.
2.                                                  Management’s estimate of the growth of property operations in the
                                                    2017 Core Properties compared to actual 2016 performance.
                                                    Represents our estimate of the mid-point of a range of possible
                                                    outcomes. Calculations prepared using actual results without
                                                    rounding. Actual growth could vary materially from amounts
                                                    presented above if any of our assumptions is incorrect.
3.                                                  See Resort base rental income table included below within this table.
4.                                                  Each line item represents our estimate of the mid-point of a
                                                    possible range of outcomes and reflects management’s best estimate
                                                    of the most likely outcome for the Acquisition properties. Actual
                                                    income from property operations for the Acquisition properties
                                                    could vary materially from amounts presented above if any of our
                                                    assumptions is incorrect.
                                                     
                                                       
                                                                                                                                                        Right-To-Use Memberships - Select Data
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               
(In thousands, except member count, number of Thousand
Trails Camping Pass, number of annuals and number of upgrades,
unaudited)
                                                                                               
                                                                                                                                                                                                               Year Ended December 31,
                                                                                                  2013            2014            2015            2016                    2017 (1)
                                                                                              ------------                                          ------------                                          ------------                                          -------------------------------- -------------------- --------------------------------
Member Count (2)                                                                                  98,277                                                96,130                                               102,413                                               104,728         106,500
Thousand Trails Camping Pass (TTC) Origination (3)                                                15,607                                                18,187                                                25,544                                                29,576                                                31,000
   TTC Sales                                                                                       9,289                                                10,014                                                11,877                                                12,856                                                13,400
   RV Dealer TTC Activations                                                                       6,318                                                 8,173                                                13,667                                                16,720                                                17,600
Number of annuals (4)                                                                              4,830                                                 5,142                                                 5,470                                                 5,756                                                 5,900
Number of upgrade sales (5)                                                                        2,999                                                 2,978                                                 2,687                                                 2,477                                                 2,600
                                                                                                                                                                                                                                                                                                                                  
Right-to-use annual payments (6)                                                                $ 47,967                                              $ 44,860                                              $ 44,441                                              $ 45,036                                              $ 45,400
Resort base rental income from annuals                                                          $ 11,148                                              $ 12,491                                              $ 13,821                                              $ 15,413                                              $ 16,800
Resort base rental income from seasonals/transients                                             $ 12,692                                              $ 13,894                                              $ 15,795                                              $ 17,344                                              $ 18,000
Upgrade contract initiations (7)                                                                $ 13,815                                              $ 13,892                                              $ 12,783                                              $ 12,312                                              $ 13,000
Utility and other income                                                                        $  2,293                                              $  2,455                                              $  2,430                                              $  2,442                                              $  2,400
________________________________
1.           Guidance estimate. Each line item represents our estimate of the
                                                   mid-point of a possible range of outcomes and reflects
                                                   management’s best estimate of the most likely outcome. Actual
                                                   figures could vary materially from amounts presented above if any
                                                   of our assumptions is incorrect.
2.                                                 Members have entered into right-to-use contracts with us that
                                                   entitle them to use certain properties on a continuous basis for up
                                                   to 21 days.
3.                                                 TTCs allow access to any of five geographic areas in the United
                                                   States.
4.                                                 Members who rent a specific site for an entire year in connection
                                                   with their right-to-use contract.
5.                                                 Existing customers that have upgraded agreements are eligible for
                                                   longer stays, can make earlier reservations, may receive discounts
                                                   on rental units, and may have access to additional properties.
                                                   Upgrades require a non-refundable upfront payment.
6.                                                 The year ended December 31, 2013 includes $2.1 million of revenue
                                                   recognized related to our right-to-use annual memberships activated
                                                   through our dealer program. During the third quarter of 2013, we
                                                   changed the accounting treatment of revenues and expenses associated
                                                   with the RV dealer program to recognize as revenue only the cash
                                                   received from members generated by the program.
7.                                                 Revenues associated with contract upgrades, included in Right-to-use
                                                   contracts current period, gross, on our Consolidated Income
                                                   Statement on page 4.
                                                    
                                                                                                                                                                                                                         
                                                                                                                                                                                                                Market Capitalization
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                
(In millions, except share and OP Unit data, unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                
Capital Structure as of June 30, 2017
                                           
                                                                                                 Total                        % of Total                        Total                  % of Total        % of Total
                                                                                                Common                                                                Common                                                                                                                                                                                       Market
                                                                                              Stock/Units                                                           Stock/Units                                                                                                                                                                                Capitalization
                                                                                  --------------------------------   -------------------- -------------------- -------------------  -------------------- -------------------- -----------------------------   -------------------- -------------------- ---------   -------------------- -------------------- -------------
                                                                                                                                                                                                                                                                                                                                                                                                                                
Secured Debt                                                                                                                                                                                                                    $  1,872                                                                   90.3   %
Unsecured Debt                                                                                                                                                                                                                       200           9.7   %
                                                                                                                                                                                                                              ------------------------------- -------------------- -------------------- -----------
Total Debt (1)                                                                                                                                                                                                                  $  2,072                                                                  100.0   %                                                 20.3    %
                                                                                                                                                                                                                                                                                                                                                                                                                                
Common Stock                                                                         87,004,507                                                                      93.7         %
OP Units                                                                              5,835,253              6.3         %
                                                                                  ---------------------------------- -------------------- -------------------- ---------- ---------
Total Common Stock and OP Units                                                      92,839,760                                                                     100.0         %
Common Stock price at June 30, 2017                                                    $  86.34
Fair Value of Common Stock and OP Units                                                                                                                                                                                         $  8,016                                                                   98.3   %
Perpetual Preferred Stock                                                                                                                                                                                                            136           1.7   %
                                                                                                                                                                                                                              ------------------------------- -------------------- -------------------- -----------
Total Equity                                                                                                                                                                                                                    $  8,152                                                                  100.0   %                                                 79.7    %
                                                                                                                                                                                                                                                                                                                                                                                                                                
Total Market Capitalization                                                                                                                                                                                                     $ 10,224                                                                                                                           100.0    %
                                                                                                                                                                                                                                                                                                                                                                                                                                
Perpetual Preferred Stock as of June 30, 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                
                 Series                                  Callable                                   Outstanding               Liquidation         Annual                    Annual
                                                                                                 Date                                                                                                                                       Stock                                                           Value                                               Dividend Per                                                      Dividend
                                                                                                                                                                                                                                                                                                                                                                    Share                                                           Value
--------------------------------------- -------------------- -------------------- --------------------------------   -------------------- -------------------- -------------------  -------------------- -------------------- -----------------------------   -------------------- -------------------- ---------   -------------------- -------------------- -------------   -------------------- -------------------- -------------------------
  6.75% Series C                                                                                            9/7/2017                                                                                                                                   54,458                                             $ 136                                                  $ 168.8                                                 $ 9.2
_________________
1.       Excludes deferred financing costs of approximately $17.8 million.
                                                
                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                     Debt Maturity Schedule
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Debt Maturity Schedule as of June 30, 2017
   (In thousands, unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
           Year                                                                     Secured                          Weighted                          Unsecured                                Weighted                                Total Debt                          % of                 Weighted       
                                                                                     Debt                                                                   Average                                                                                     Debt                                                                          Average                                                                                                                                                Total                                                       Average
                                                                                                                                                           Interest                                                                                                                                                                  Interest                                                                                                                                                Debt                                                       Interest
                                                                                                                                                             Rate                                                                                                                                                                      Rate                                                                                                                                                                                                               Rate
-------------------------                                           ------------------------------------   -------------------- -------------------- ------------------  -------------------- -------------------- -------------------- ----------------------------------   -------------------- -------------------- ----------------------------------  -------------------- -------------------- ------------------------------------   -------------------- -------------------- ----------------  -------------------- -------------------- ------------------  --------------------
           2017                                                                 6,876                                                                          6.47    %                                                                 --                                                                --                                                                            6,876                                                                          0.33  %                                                     6.47    %
           2018                                                               203,463                                                                          5.95    %                                                                 --                                                                --                                                                          203,463                                                                          9.84  %                                                     5.95    %
           2019                                                               199,211                                                                          6.27    %                                                                 --                                                                --                                                                          199,211                                                                          9.63  %                                                     6.27    %
           2020                                                               120,700                                                                          6.14    %                                                                        200,000                                                                          2.39                    %                                                     320,700                                                                         15.51  %                                                     3.80    %
           2021                                                               188,724                                                                          5.01    %                                                                 --                                                                --                                                                          188,724                                                                          9.13  %                                                     5.01    %
           2022                                                               148,368                                                                          4.59    %                                                                 --                                                                --                                                                          148,368                                                                          7.17  %                                                     4.59    %
           2023                                                               109,992                                                                          5.11    %                                                                 --                                                                --                                                                          109,992                                                                          5.32  %                                  5.11    %
           2024                                                        --                                                                --    %                                                                 --                                                                --                                                                   --                          --  %                                           --    %  
           2025                                                               106,690                                                                          3.45    %                                                                 --                                                                --                                                                          106,690                                                                          5.16  %                                  3.45    %
           2026                                                        --                                                                --    %                                                                 --                                             --                                                                   --                                                                --  %                        --    %
        Thereafter                                                            783,993                                                       4.27    %                                                                 --                                             --                                                       783,993                                                      37.91  %                                                     4.27    %  
                                                                    --------------------------------------                                           -------------- ----                                                                ------------------------------------                                           -------------- --------------------                                           --------------------------------------                                           -------------- --                                           -------------- ---- --------------------
           Total                                                          $ 1,868,017                                                                          4.90    %                                                                      $ 200,000                                                                          2.39                    %                                                 $ 2,068,017                                                                         100.0  %                                                     4.65    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
       Note Premiums                                                            4,298                                                                                                                                 --                                                                                                                                       4,298  
                                                                    --------------------------------------                                                                                                                              ------------------------------------                                                                                                                         --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
        Total Debt                                                          1,872,315                                                                                                                                                           200,000                                                                                                                                                      2,072,315
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Deferred Financing Costs                                                     (17,287 )                                                                                                                                                            (517 )                                                                                                                                                      (17,804 )                     
                                                                    ----------------  --------------------                                                                                                                              --------------  --------------------                                                                                                                         ----------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
      Total Debt, net                                                       1,855,028                                                       4.92    %                  (1)                                                   199,483                                                       2.52                    %                                                 $ 2,054,511                                                                                                                   4.69    %                  (1)
                                                                    ================  ====================                                                                                                                              ==============  ====================                                                                                                                         ======= ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Average Years to Maturity                                                           10.8                                                                                                                                                                2.6                                                                                                                                                          10.0
                                                                    =======================================                                                                                                                             =====================================                                                                                                                        =======================================
______________________
1.        Reflects effective interest rate including amortization of note
                                                premiums and amortization of deferred loan cost for secured and
                                                total debt and stated interest rate for unsecured debt.
                                                 
                                                 

Non-GAAP Financial Measures Definitions and Other Terms

This document contains certain Non-GAAP measures used by management that we believe are helpful in understanding our business, as further discussed in the paragraphs below. We believe investors should review these Non-GAAP measures along with GAAP net income and cash flow 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 flow from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.

FUNDS FROM OPERATIONS (FFO). We define FFO as net income, computed in accordance with GAAP, excluding gains and actual or estimated losses from sales of properties, plus real estate related depreciation and amortization, impairments, if any, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and 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 up-front non-refundable payments from the entry of right-to-use contracts. In accordance with GAAP, the upfront non-refundable payments and related commissions are deferred and amortized over the estimated customer life. Although the NAREIT definition of FFO does not address the treatment of non-refundable right-to-use 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 the following non-operating income and expense items: a) the financial impact of contingent consideration; b) gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs; c) property acquisition and other transaction costs related to mergers and acquisitions; and d) 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 depreciation, amortization, impairments, if any, and actual or estimated gains or losses from sales of real estate, all of which are based on historical costs and which 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, property acquisition and other transaction costs related to mergers and acquisitions from Normalized 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, utility income and right-to-use income less property operating and maintenance expenses, real estate tax, sales and marketing expenses, property management and the GAAP deferral of right-to-use contract upfront payments and related commissions, net. We believe that this Non-GAAP financial measure is helpful to investors and analysts as a measure of the operating results of our manufactured home and RV communities.

The following table reconciles Net income available for Common Stockholders to Income from property operations (amounts in thousands):

                                                                                                                          Quarters Ended                                                                                                 Six Months Ended
                                                                                                                                                                   June 30,                                                                                                                                              June 30,
                                                                                                                               2017                                 2016                                                                       2017                                 2016
                                                                                                                 ---------------------------------                                          ---------------------------------                                          ---------------------------------                                          ---------------------------------
Net income available for Common Stockholders                                                                       $  39,498                                                                  $  35,490                                                                  $  96,385                                                                  $  86,073
   Series C Redeemable Perpetual Preferred Stock Dividends                                                             2,316                                                                      2,316                                                                      4,613                                                                      4,613
   Income allocated to non-controlling interests - Common OP Units                                                     2,649                                                                      2,998                                                                      6,539                                                                      7,308
   Equity in income of unconsolidated joint ventures                                                                  (1,040 )                                                                     (765 )                                                                   (2,190 )                                                                   (1,646 )
                                                                                                                 ----------  --------------------                                           ----------  --------------------                                           ----------  --------------------                                           ----------  --------------------
Income before equity in income of unconsolidated joint ventures                                                    $  43,423                                                                  $  40,039                                                                  $ 105,347                                                                  $  96,348
   Right-to-use upfront payments, deferred, net                                                                        1,321                                                                        798                                                                      2,096                                                                      1,100
   Gross revenues from home sales                                                                                     (7,833 )                                                                   (9,130 )                                                                  (14,860 )                                                                  (17,344 )
   Brokered resale revenues and ancillary services revenues, net                                                        (444 )                                                                     (398 )                                                                   (2,105 )                                                                   (1,816 )
   Interest income                                                                                                    (1,798 )                                                                   (1,625 )                                                                   (3,568 )                                                                   (3,285 )
   Income from other investments, net                                                                                 (1,109 )                                                                   (2,270 )                                                                   (1,866 )                                                                   (3,993 )
   Right-to-use contract commissions, deferred, net                                                                     (112 )                                                                     (116 )                                                                     (196 )                                                                      (12 )
   Property management                                                                                                13,023                                                                     12,044                                                                     25,583                                                                     23,807
   Depreciation on real estate and rental homes                                                                       30,247                                                                     29,029                                                                     60,357                                                                     57,684
   Amortization of in-place leases                                                                                       958                                                                        428                                                                      1,990                                                                        763
   Cost of homes sales                                                                                                 7,895                                                                      9,481                                                                     15,014                                                                     17,762
   Home selling expenses                                                                                                 929                                                                        805                                                                      1,854                                                                      1,639
   General and administrative                                                                                          8,461                                                                      8,255                                                                     15,834                                                                     15,663
   Property rights initiatives and other                                                                                 271                                                                        527                                                                        490                                                                      1,181
   Interest and related amortization                                                                                  24,822                                                  25,561                                                  49,701                                                  51,195  
                                                                                                                 --------------------------------                                           --------------------------------                                           --------------------------------                                           --------------------------------
Income from property operations, excluding deferrals and property                                                    120,054                                                                    113,428                                                                    255,671                                                                    240,692
management
   Right-to-use contracts, deferred and sales and marketing, deferred,                                                (1,209 )                                                                     (682 )                                                                   (1,900 )                                                                   (1,088 )
   net
   Property management                                                                                               (13,023 )                                                                  (12,044 )                                                                  (25,583 )                                                                  (23,807 )
                                                                                                                 --------------------------------                                           --------------------------------                                           --------------------------------                                           --------------------------------
Income from property operations                                                                                    $ 105,822                                               $ 100,702                                               $ 228,188                                               $ 215,797  
                                                                                                                 === ======= ====================                                           === ======= ====================                                           === ======= ====================                                           === ======= ====================
                                                                                                                                                                                                                                                                                                                                                               

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION (EBITDA) AND ADJUSTED EBITDA. EBITDA is defined as net income or loss before interest income and expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding the following non-operating income and expense items: a) the financial impact of contingent consideration; b) gains and losses from early debt extinguishment, including prepayment penalties and defeasance costs; c) property acquisition and other transaction costs related to mergers and acquisitions; d) GAAP deferral of right-to-use contract upfront payments and related commissions, net; e) impairments, if any; and f) other miscellaneous non-comparable items. EBITDA and Adjusted EBITDA provide us with an understanding of one aspect of earnings before the impact of investing and financing charges. We believe that EBITDA and Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because the measures are widely used to measure a company’s operating performance and they are used by rating agencies and other parties, including lenders, to evaluate our creditworthiness.

The following table reconciles Consolidated net income to EBITDA and Adjusted EBITDA (amounts in thousands):

                                                                                                           Quarters Ended                                                                                               Six Months Ended
                                                                                                                                                    June 30,                                                                                                                         June 30,
                                                                                                                 2017                                 2016                                                 2017                                 2016
                                                                                                   ---------------------------------                                          --------------------------------                     ---------------------------------                                          ---------------------------------
Consolidated net income                                                                              $  44,463                                                                  $ 40,804                                             $ 107,537                                                                  $  97,994
   Interest Income                                                                                      (1,798 )                                                                  (1,625 )                                              (3,568 )                                                                   (3,285 )
   Depreciation on real estate assets and rental homes                                                  30,247                                                                    29,029                                                60,357                                                                     57,684
   Amortization of in-place leases                                                                         958                                                                       428                                                 1,990                                                                        763
   Depreciation on corporate assets                                                                        314                                                                       279                                                   603                                                                        558
   Depreciation on unconsolidated joint ventures                                                           364                                                                       305                                                   811                                                                        595
                                                                                                        24,822                                                 25,561                             49,701                                                  51,195  
   Interest and related amortization
                                                                                                   ----------  --------------------                                           ---------  --------------------                      ----------  --------------------                                           ----------  --------------------
EBITDA                                                                                                  99,370                                                                    94,781                                               217,431                                                                    205,504
   Right-to-use contract upfront payments, deferred, net                                                 1,321                                                                       798                                                 2,096                                                                      1,100
   Right-to-use contract commissions, deferred, net                                                       (112 )                                                                    (116 )                                                (196 )                                                                      (12 )
   Transaction costs                                                                                       220                                                    398                                324                                                     598  
                                                                                                   --------------------------------                                           -------------------------------                      --------------------------------                                           --------------------------------
Adjusted EBITDA                                                                                      $ 100,799                                               $ 95,861                          $ 219,655                                               $ 207,190  
                                                                                                   === ======= ====================                                           === ====== ====================                      === ======= ====================                                           === ======= ====================
                                                                                                                                                                                                                                                                                                                           

CORE. The Core properties include properties we owned and operated during all of 2016 and 2017. 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.

ACQUISITIONS. The Acquisition properties include all properties that were not owned and operated in 2016 and 2017. This includes, but is not limited to, one property acquired during 2017, four properties acquired during 2016, and Tropical Palms RV Resort.

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 will 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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SOURCE: Equity LifeStyle Properties, Inc.

Equity LifeStyle Properties, Inc. 
Paul Seavey, 800-247-5279


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