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 ELS Reports Fourth Quarter Results
   Monday, January 29, 2018 4:16:00 PM ET

Equity LifeStyle Properties, Inc. (ELS ) (referred to herein as "we," "us," and "our") today announced results for the quarter and year ended December 31, 2017. All per share results are reported on a fully diluted basis unless otherwise noted.

Financial Results for the Quarter and Year Ended December 31, 2017

For the quarter ended December 31, 2017, total revenues increased $16.0 million, or 7.5 percent, to $230.0 million compared to $214.0 million for the same period in 2016. Net income available for Common Stockholders for the quarter ended December 31, 2017 increased $8.0 million, or $0.08 per Common Share, to $45.0 million, or $0.51 per Common Share, compared to $37.0 million, or $0.43 per Common Share, for the same period in 2016.



For the year ended December 31, 2017, total revenues increased $54.9 million, or 6.3 percent, to $925.3 million compared to $870.4 million for the same period in 2016. Net income available for Common Stockholders for the year ended December 31, 2017 increased $25.9 million, or $0.25 per Common Share, to $189.9 million, or $2.17 per Common Share, compared to $164.0 million, or $1.92 per Common Share, for the same period in 2016.

Non-GAAP Financial Measures and Portfolio Performance

For the quarter ended December 31, 2017, Funds from Operations ("FFO") available for Common Stock and OP Unit holders increased $6.9 million, or $0.06 per Common Share, to $79.4 million, or $0.84 per Common Share, compared to $72.5 million, or $0.78 per Common Share, for the same period in 2016. For the year ended December 31, 2017, FFO available for Common Stock and OP Unit holders increased $28.9 million, or $0.28 per Common Share, to $331.7 million or $3.55 per Common Share, compared to $302.8 million, or $3.27 per Common Share, for the same period in 2016.

For the quarter ended December 31, 2017, Normalized Funds from Operations ("Normalized FFO") available for Common Stock and OP Unit holders increased $7.4 million, or $0.07 per Common Share, to $82.6 million, or $0.88 per Common Share, compared to $75.2 million, or $0.81 per Common Share, for the same period in 2016. For the year ended December 31, 2017, Normalized FFO available for Common Stock and OP Unit holders increased $29.4 million, or $0.29 per Common Share, to $335.9 million, or $3.60 per Common Share, compared to $306.5 million, or $3.31 per Common Share, for the same period in 2016.

For the quarter ended December 31, 2017, property operating revenues, excluding deferrals, increased $12.4 million to $215.3 million compared to $202.9 million for the same period in 2016. For the year ended December 31, 2017, property operating revenues, excluding deferrals, increased $56.8 million to $875.9 million compared to $819.1 million for the same period in 2016. For the quarter ended December 31, 2017, income from property operations, excluding deferrals and property management, increased $5.3 million to $125.0 million compared to $119.7 million for the same period in 2016. For the year ended December 31, 2017, income from property operations, excluding deferrals and property management, increased $28.9 million to $508.8 million compared to $479.9 million for the same period in 2016.

For the quarter ended December 31, 2017, Core property operating revenues, excluding deferrals, increased approximately 6.2 percent and Core income from property operations, excluding deferrals and property management, increased approximately 4.7 percent compared to the same period in 2016. For the year ended December 31, 2017, Core property operating revenues, excluding deferrals, increased approximately 5.8 percent and Core income from property operations, excluding deferrals and property management, increased approximately 5.0 percent compared to the same period in 2016.

Acquisition Activity

During the quarter, we completed the acquisition of Bethpage Camp Resort and Grey’s Point Camp, two RV resorts located in Chesapeake Bay, Virginia, having 1,034 and 728 sites, respectively. The aggregate purchase price of $134.4 million was funded with sales of shares of our common stock under our at-the-market ("ATM") equity offering program as discussed further below, proceeds from our revolving credit facility, and available cash.

Balance Sheet Activity

During the quarter, we sold 895,104 shares of common stock as part of our ATM equity offering program at a weighted average price of $87.88, resulting in net cash proceeds of $77.7 million.

On October 16, 2017, we entered into a $204.4 million secured facility with Fannie Mae, maturing in 2037 and bearing interest at 3.97 percent per annum. We used the proceeds to pay, in full, $202.2 million of loans including $2.7 million in early debt retirement costs. These loans were scheduled to mature in 2018.

On October 27, 2017, we entered into a new credit agreement, which amends and restates the terms of the obligations owed by us under the previous credit agreement dated as of July 17, 2014. Under the new credit agreement, we have access to a $400.0 million unsecured line of credit ("LOC") and a $200.0 million senior unsecured term loan. In conjunction with the new credit agreement, we also extended the maturity of our term loan to April 27, 2023.

Hurricane Irma

During the quarter ended December 31, 2017, we recorded expense of $4.3 million related to debris removal and cleanup following Hurricane Irma. In addition, we recorded insurance recovery revenue of $5.5 million, which includes insurance proceeds received as a result of our first claim submission. During the quarter ended December 31, 2017, operations at our Florida Keys RV resorts were interrupted, therefore we designated them as Non-core properties. This change is reflected throughout the results presented in this release and in our Supplemental Financial Information package.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust ("REIT") with headquarters in Chicago. As of January 29, 2018, we own or have an interest in 406 quality properties in 32 states and British Columbia consisting of 151,323 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, January 30, 2018, 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
                                                              ------------------------                      ---------------------------------------
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
Second Quarter 2018                                           Monday, July 23, 2018                         Tuesday, July 24, 2018 10:00 a.m. CT
Third Quarter 2018                                            Monday, October 22, 2018                      Tuesday, October 23, 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 2018 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 on Form 10-Q.

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

 
                                                                             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                                           Citi Research                                                           Wells Fargo Securities
Global Research
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/ Samir Khanal
212-885-4115                                                            212-446-5600
johnp.kim@bmo.com                                                       steve.sakwa@evercoreisi.com
                                                                        samir.khanal@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
                                                                      December 31,       September 30,       June 30,        March 31,        December 31,
                                                                          2017                                  2017                                 2017                               2017                                  2016
                                                                    --------------   -------------------- --------------   -------------------- -----------   -------------------- -----------   -------------------- ------------------
Operating Information                                                                                                                    
-------------------------------------------------------------------
Total revenues                                                         $  230.0                              $  241.6                             $  221.3                           $ 232.4                               $  214.0
Net income                                                             $   48.0                              $   54.9                             $   44.5                           $  63.1                               $   42.4
Net income available for Common Stockholders                           $   45.0                              $   48.5                             $   39.5                           $  56.9                               $   37.0
Adjusted EBITDA (1)                                                    $  106.7                              $  111.5                             $  100.8                           $ 118.9                               $  101.4
FFO available for Common Stock and OP Unit holders(1)(2)               $   79.4                              $   84.3                             $   74.9                           $  93.1                               $   72.5
Normalized FFO available for Common Stock and OP Unit holders(1)(2)    $   82.6                              $   85.1                             $   75.1                           $  93.2                               $   75.2
Funds available for distribution (FAD) available for Common Stock      $   72.6                              $   74.0                             $   63.5                           $  86.0                               $   65.8
and OP Unit holders(1)(2)
                                                                                                                                                                                                                       
Common Stock Outstanding (In thousands)
and Per Share Data
-------------------------------------------------------------------
Common Stock and OP Units, end of the period                             94,420                                93,334                               92,840                            92,780                                 92,699
Weighted average Common Stock and OP Units outstanding - fully           94,295                                93,324                               93,063                            93,011                                 92,965
diluted
Net income per Common Share - fully diluted                            $   0.51                              $   0.56                             $   0.45                           $  0.65                               $   0.43
FFO per Common Share - fully diluted                                   $   0.84                              $   0.90                             $   0.81                           $  1.00                               $   0.78
Normalized FFO per Common Share - fully diluted                        $   0.88                              $   0.91                             $   0.81                           $  1.00                               $   0.81
Dividends per Common Share                                             $  0.488                              $  0.488                             $  0.488                           $ 0.488                               $  0.425
                                                                                                                                                                                                                       
Balance Sheet
-------------------------------------------------------------------
Total assets                                                           $  3,610                              $  3,526                             $  3,485                           $ 3,471                               $  3,479
Total liabilities                                                      $  2,510                              $  2,511                             $  2,386                           $ 2,371                               $  2,397
                                                                                                                                                                                                                       
Market Capitalization
-------------------------------------------------------------------
Total debt                                                             $  2,224                              $  2,200                             $  2,072                           $ 2,078                               $  2,110
Total market capitalization (3)                                        $ 10,629                              $ 10,141                             $ 10,224                           $ 9,364                               $  8,930
                                                                                                                                                                                                                       
Ratios
-------------------------------------------------------------------
Total debt / total market capitalization                                   20.9    %                             21.7    %                            20.3  %                           22.2   %                               23.6      %
Total debt + preferred stock / total market capitalization                 20.9    %                             21.7    %                            21.6  %                           23.6   %                               25.2      %
Total debt / Adjusted EBITDA (4)                                            5.1                                   5.1                                  4.9                               5.0                                    5.1
Interest coverage (5)                                                       4.4                                   4.4                                  4.3                               4.2                                    4.1
Fixed charges + preferred distributions coverage (6)                        4.1                                   4.0                                  3.9                               3.8                                    3.7
______________________
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 December
                             31, 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)
                                                                                                                               
                                                                                                                                                                                   December 31,
                                                                                                                     December 31,                                                                         2016
                                                                                                                         2017
                                                                                                                      (unaudited)
                                                                                                        ------------------------------------                                             ------------------------------------
Assets
      Investment in real estate:
      Land                                                                                                    $ 1,221,375                                                                      $ 1,163,987
      Land improvements                                                                                         3,045,221                                                                        2,893,759
      Buildings and other depreciable property                                                                    649,217                                                       627,590  
                                                                                                        --------------------------------------                                           --------------------------------------
                                                                                                                4,915,813                                                                        4,685,336
      Accumulated depreciation                                                                                 (1,516,694 )                                                                     (1,399,531 )
                                                                                                        --------------------------------------                                           --------------------------------------
         Net investment in real estate                                                                          3,399,119                                                                        3,285,805
Cash                                                                                                               31,085                                                                           56,340
Notes receivable, net                                                                                              49,477                                                                           34,520
Investment in unconsolidated joint ventures                                                                        53,080                                                                           19,369
Deferred commission expense                                                                                        31,443                                                                           31,375
Escrow deposits, goodwill, and other assets, net (1)                                                               45,828                                                        51,578  
                                                                                                        --------------------------------------                                           --------------------------------------
      Total Assets                                                                                            $ 3,610,032                                                   $ 3,478,987  
                                                                                                        ======= ========= ====================                                           ======= ========= ====================
Liabilities and Equity
Liabilities:
      Mortgage notes payable                                                                                  $ 1,971,715                                                                      $ 1,891,900
      Term loan                                                                                                   198,302                                                                          199,379
      Unsecured lines of credit                                                                                    30,000                                                                   --
      Accrued expenses and accounts payable (1)                                                                    80,744                                                                           89,864
      Deferred revenue - upfront payments from right-to-use contracts                                 85,596                                                                           81,484
      Deferred revenue - right-to-use annual payments                                                  9,932                                                                            9,817
      Accrued interest payable                                                                                      8,387                                                                            8,379
      Rents and other customer payments received in advance and security                                           79,267                                                                           76,906
      deposits
      Distributions payable                                                                                        46,047                                                        39,411  
                                                                                                        --------------------------------------                                           --------------------------------------
         Total Liabilities                                                                                      2,509,990                                                     2,397,140  
                                                                                                        --------------------------------------                                           --------------------------------------
Equity:
Stockholders’ Equity:
      Preferred stock, $0.01 par value, 10,000,000 shares authorized as of                                 --                                                                   --
      December 31, 2017 and 9,945,539 shares authorized as of December 31,
      2016; none issued and outstanding.
      6.75% Series C Cumulative Redeemable Perpetual Preferred Stock,                                      --                                                                          136,144
      $0.01 par value, no shares authorized as of December 31, 2017 and
      54,461 shares authorized as of December 31, 2016; none issued and
      outstanding as of December 31, 2017 and 54,458 shares issued and
      outstanding as of December 31, 2016.
      Common stock, $0.01 par value, 200,000,000 shares authorized as of                                              883                                                                              854
      December 31, 2017 and December 31, 2016; 88,585,160 and 85,529,386
      shares issued and outstanding as of December 31, 2017 and December
      31, 2016, respectively
      Paid-in capital                                                                                           1,242,109                                                                        1,103,048
      Distributions in excess of accumulated earnings                                                            (211,980 )                                                                       (231,276 )
      Accumulated other comprehensive income (loss)                                                                   942                                                          (227 )
                                                                                                        --------------------------------------                                           --------------------------------------
      Total Stockholders’ Equity                                                     1,031,954                                                                        1,008,543
      Non-controlling interests - Common OP Units                                                     68,088                                                        73,304  
                                                                                                        --------------------------------------                                           --------------------------------------
         Total Equity                                                                                           1,100,042                                                     1,081,847  
                                                                                                        --------------------------------------                                           --------------------------------------
         Total Liabilities and Equity                                                                         $ 3,610,032                                                   $ 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                                                                                                    Year Ended
                                                                                                                                  December 31,                                                                                                    December 31,
                                                                                                         2017                                 2016                                                    2017                                 2016
                                                                                           ---------------------------------                     -------------------------------------                     ---------------------------------                     -------------------------------------
Revenues:
Community base rental income                                                                 $ 123,780                                                 $ 118,120                                             $ 489,613                                                 $ 464,745
Rental home income                                                                               3,515                                                     3,535                                                14,344                                                    14,107
Resort base rental income                                                                       49,212                                                    46,881                                               218,806                                                   201,533
Right-to-use annual payments                                                                    11,665                                                    11,445                                                45,798                                                    45,035
Right-to-use contracts current period, gross                                                     2,920                                                     3,037                                                14,132                                                    12,327
Right-to-use contract upfront payments, deferred, net                                             (342 )                                                    (652 )                                              (4,108 )                                                  (3,079 )
Utility and other income                                                                        24,181                                                    19,937                                                93,252                                                    81,427
Gross revenues from home sales                                                                  11,430                                                     8,952                                                36,302                                                    37,191
Brokered resale revenue and ancillary services revenues, net                                      (290 )                                                     258                                                 3,798                                                     2,994
Interest income                                                                                  2,038                                                     1,793                                                 7,580                                                     6,845
Income from other investments, net                                                               1,877                                    736                              5,795                                  7,310  
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
   Total revenues                                                                              229,986                                                   214,042                                               925,312                                                   870,435
                                                                                                                                                                                                                                                                  
Expenses:
Property operating and maintenance                                                              73,000                                                    65,238                                               294,119                                                   268,249
Rental home operating and maintenance                                                            1,698                                                     2,009                                                 6,610                                                     6,883
Real estate taxes                                                                               13,024                                                    13,502                                                55,010                                                    53,036
Sales and marketing, gross                                                                       2,577                                                     2,532                                                11,438                                                    11,056
Right-to-use contract commissions, deferred, net                                                    18                                                       (11 )                                                (354 )                                                    (223 )
Property management                                                                             12,509                                                    11,413                                                51,252                                                    47,083
Depreciation on real estate assets and rental homes                                             30,606                                                    30,198                                               121,455                                                   117,400
Amortization of in-place leases                                                                    103                                                     1,234                                                 2,231                                                     3,373
Cost of home sales                                                                              11,122                                                     8,949                                                36,513                                                    37,456
Home selling expenses                                                                              885                                                     1,027                                                 4,186                                                     3,575
General and administrative                                                                       8,398                                                     7,688                                                31,737                                                    31,004
Other expenses, including property rights initiatives (1)                                          334                                                     2,950                                                 1,148                                                     4,986
Early debt retirement                                                                            2,785                                            --                                                 2,785                                            --
Interest and related amortization                                                               25,842                                 25,395                            100,570                                102,030  
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
   Total expenses                                                                              182,901                                172,124                            718,700                                685,908  
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
      Income before equity in income of unconsolidated joint ventures                           47,085                                                    41,918                                               206,612                                                   184,527
Equity in income of unconsolidated joint ventures                                                  889                                    463                              3,765                                  2,605  
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Consolidated net income                                                                         47,974                                 42,381                            210,377                                187,132  
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                  
Income allocated to non-controlling interest-Common OP Units                                    (2,963 )                                                  (3,099 )                                             (12,788 )                                                 (13,869 )
Perpetual preferred stock dividends and original issuance costs                                    (18 )                                                  (2,316 )                                              (7,685 )                                                  (9,226 )
                                                                                           --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Net income available for Common Stockholders                                                 $  44,993                              $  36,966                          $ 189,904                              $ 164,037  
                                                                                           === ======= ====================                      ======= ======= ====================                      === ======= ====================                      ======= ======= ====================
1.    Other expenses, including property rights initiatives includes net
                         expense of $2.4 million for the quarter and year ended December 31,
                         2016, related to resolution of the California lawsuits.
                         

Non-GAAP Financial Measures

                                                                      
                                      Fourth Quarter 2017 - Selected Non-GAAP Financial Measures
----------------------------------------------------------------------------------------------------------------------------------
(In millions, except per share data, unaudited)
                                                                                                          Quarter Ended
                                                                                                          December 31,
                                                                                                              2017
                                                                                          ------------------------------------------
Income from property operations, excluding deferrals and property                                   $       122.7
management - 2017 Core (1)
Income from property operations, excluding deferrals and property                                             2.3
management - Non-Core(2)
Property management and general and administrative (excluding                                               (20.5 )
transaction costs)
Other income and expenses                                                                                     4.0
Financing costs and other                                                                                   (25.9 )
                                                                                          --------------------------------------------
   Normalized FFO available for Common Stock and OP Unit holders                                             82.6
   (3)
Transaction costs (4)                                                                                        (0.4 )
Early debt retirement                                                                                        (2.8 )
                                                                                          --------------------------------------------
   FFO available for Common Stock and OP Unit holders (3)                                           $        79.4  
                                                                                          =========== =========== ====================
                                                                                           
Normalized FFO per Common Share - fully diluted                                                     $        0.88
FFO per Common Share - fully diluted                                                                $        0.84
                                                                                           
                                                                                           
   Normalized FFO available for Common Stock and OP Unit holders (3)                                $        82.6
Non-revenue producing improvements to real estate                                                           (10.0 )
                                                                                          --------------------------------------------
   FAD available for Common Stock and OP Unit holders (3)                                           $        72.6  
                                                                                          =========== =========== ====================
                                                                                           
Weighted average Common Stock and OP Units - fully diluted                                                   94.3
__________________
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 Non-Core
                            properties. See page 10 for details of the Income from Property
                            Operations, excluding deferrals and property management for the
                            Non-Core properties.
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.
4.                          Included in General and administrative on the Consolidated Income
                            Statement on page 4.
                             
 
                                                                                                                         Reconciliation of Net Income to Non-GAAP Financial Measures
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands, except per share data, unaudited)
                                                                                                                                                                      
                                                                                                                                 Quarters Ended                                                                                                        Year Ended
                                                                                                                                  December 31,                                                                                                        December 31,
                                                                                                         2017                                   2016                                                      2017                                   2016
                                                                                         -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
   Net income available for Common Stockholders                                                $  44,993                                                 $  36,966                                                 $ 189,904                                                 $ 164,037
Income allocated to Common OP Units                                                                2,963                                                     3,099                                                    12,788                                                    13,869
Right-to-use contract upfront payments, deferred, net (1)                                            342                                                       652                                                     4,108                                                     3,079
Right-to-use contract commissions, deferred, net (2)                                                  18                                                       (11 )                                                    (354 )                                                    (223 )
Depreciation on real estate assets                                                                28,075                                                    27,519                                                   111,014                                                   106,736
Depreciation on rental homes                                                                       2,531                                                     2,679                                                    10,441                                                    10,664
Amortization of in-place leases                                                                      103                                                     1,234                                                     2,231                                                     3,373
Depreciation on unconsolidated joint ventures                                                        362                                    324                                  1,533                                  1,292  
                                                                                         ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
   FFO available for Common Stock and OP Unit holders (3)                                         79,387                                                    72,462                                                   331,665                                                   302,827
Transaction costs (4)                                                                                400                                                       292                                                       724                                                     1,217
Early debt retirement                                                                              2,785                                            --                                                     2,785                                            --
Preferred stock original issuance costs (5)                                               --                                            --                                                       757                                            --
Litigation settlement, net (6)                                                            --                                  2,415                         --                                  2,415  
                                                                                         ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
   Normalized FFO available for Common Stock and OP Unit holders(3)                               82,572                                                    75,169                                                   335,931                                                   306,459
Non-revenue producing improvements to real estate                                                (10,010 )                                                  (9,419 )                                                 (39,833 )                                                 (37,765 )
                                                                                         ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
   FAD available for Common Stock and OP Unit holders (3)                                      $  72,562                              $  65,750                              $ 296,098                              $ 268,694  
                                                                                         ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                        
Net income available per Common Share - Basic                                                  $    0.51                                                 $    0.43                                                 $    2.18                                                 $    1.93
Net income available per Common Share - Fully Diluted                                          $    0.51                                                 $    0.43                                                 $    2.17                                                 $    1.92
                                                                                                                                                                                                                                                                        
FFO per Common Share & OP Units-Basic                                                          $    0.85                                                 $    0.78                                                 $    3.57                                                 $    3.29
FFO per Common Share & OP Units-Fully Diluted                                                  $    0.84                                                 $    0.78                                                 $    3.55                                                 $    3.27
                                                                                                                                                                                                                                                                        
Normalized FFO per Common Share & OP Units-Basic                                               $    0.88                                                 $    0.81                                                 $    3.61                                                 $    3.33
Normalized FFO per Common Share & OP Units-Fully Diluted                                       $    0.88                                                 $    0.81                                                 $    3.60                                                 $    3.31
                                                                                                                                                                                                                                                                        
Average Common Stock - Basic                                                                      88,115                                                    85,163                                                    86,997                                                    84,778
Average Common Stock and OP Units - Basic                                                         93,949                                                    92,361                                                    93,030                                                    91,982
Average Common Stock and OP Units - Fully Diluted                                                 94,295                                                    92,965                                                    93,425                                                    92,569
_____________________________
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.
5.                             During the quarter ended September 30, 2017, we redeemed our 6.75%
                               Series C Preferred Stock for $136.1 million. In connection with
                               the redemption, we recorded expense of $0.8 million for the
                               original issuance costs associated with the Series C Preferred
                               Stock.
6.                             Litigation settlement, net of $2.4 million for the quarter and
                               year ended December 31, 2016, related to resolution of the
                               California lawsuits.
                                
                                                                                                                                                        
                                                                                                                   Consolidated Income from Property Operations (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, except home site and occupancy figures,
unaudited)
                                                                                                                                                                                                
                                                                                                                         Quarters Ended                                                                                              Year Ended
                                                                                                                          December 31,                                                                                              December 31,
                                                                                                    2017                             2016                                                2017                               2016
                                                                                       -------------------------------                     -------------------------------                     -------------------------------                     -----------------------------------
Community base rental income (2)                                                         $ 123.8                                             $ 118.1                                             $ 489.6                                                $  464.7
Rental home income                                                                           3.5                                                 3.5                                                14.3                                                    14.1
Resort base rental income (3)                                                               49.2                                                46.9                                               218.8                                                   201.5
Right-to-use annual payments                                                                11.7                                                11.4                                                45.8                                                    45.0
Right-to-use contracts current period, gross                                                 2.9                                                 3.0                                                14.1                                                    12.3
Utility and other income (4)                                                                24.2                             20.0                             93.3                                 81.5  
                                                                                       ------------------------------                      ------------------------------                      ------------------------------                      ----------------------------------
   Property operating revenues                                                             215.3                                               202.9                                               875.9                                                   819.1
                                                                                                                                                                                                                                                    
Property operating, maintenance and real estate taxes (4)                                   86.0                                                78.7                                               349.1                                                   321.2
Rental home operating and maintenance                                                        1.7                                                 2.0                                                 6.6                                                     6.9
Sales and marketing, gross                                                                   2.6                              2.5                             11.4                                 11.1  
                                                                                       ------------------------------                      ------------------------------                      ------------------------------                      ----------------------------------
   Property operating expenses                                                              90.3                             83.2                            367.1                                339.2  
                                                                                       ------------------------------                      ------------------------------                      ------------------------------                      ----------------------------------
Income from property operations, excluding deferrals and property                        $ 125.0                          $ 119.7                          $ 508.8                             $  479.9  
management (1)
                                                                                       === ===== ====================                      === ===== ====================                      === ===== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                    
Manufactured home site figures and occupancy averages:
Total sites                                                                               71,109                                              70,992                                              71,064                                                  70,629
Occupied sites                                                                            67,098                                              66,482                                              66,894                                                  65,893
Occupancy %                                                                                 94.4                    %                           93.6                    %                           94.1                    %                               93.3                    %
Monthly base rent per site                                                               $   615                                             $   592                                             $   610                                                $    588
                                                                                                                                                                                                                                                    
Resort base rental income:
Annual                                                                                   $  34.6                                             $  32.7                                             $ 133.2                                                   124.3
Seasonal                                                                                     7.8                                                 6.9                                                36.2                                                    31.5
Transient                                                                                    6.8                              7.3                             49.4                                 45.7  
                                                                                       ------------------------------                      ------------------------------                      ------------------------------                      ----------------------------------
   Total resort base rental income                                                       $  49.2                          $  46.9                          $ 218.8                             $  201.5  
                                                                                       === ===== ====================                      === ===== ====================                      === ===== ====================                      ====== ====== ====================
_________________________
      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.
      4.                       Includes impact for Hurricane Irma. Utility and other income
                               includes insurance recovery revenues of $4.1 million and $7.2
                               million for the quarter and year ended December 31, 2017,
                               respectively. Property operating, maintenance and real estate taxes
                               includes debris removal and cleanup costs of $4.2 million and $7.5
                               million for the quarter and year ended December 31, 2017,
                               respectively.
                               
 
                                                                                                                                                                           2017 Core Income from Property Operations (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, except home site and occupancy figures,
unaudited)
                                                                                                                                                                                                                                                                                  
                                                                                                                          Quarters Ended                                                                                                                                                   Year Ended
                                                                                                                           December 31,                                                                %                                                                                  December 31,                                                                %
                                                                                                     2017                              2016                                    Change (2)                                     2017                             2016                                     Change (2)   
                                                                                       -----------------------------                        -----------------------------                        ----------  --------------------                      ----------------------------                        ----------------------------                        ------------  --------------------
Community base rental income (3)                                                          $ 122.4                                              $ 117.0                                             4.6     %                                             $ 484.5                                             $ 462.3                                              4.8      %
Rental home income                                                                            3.5                                                  3.5                                            (0.6    )%                                                14.3                                                14.1                                              1.7      %
Resort base rental income (4)                                                                46.0                                                 42.6                                             7.9     %                                               199.9                                               188.8                                              5.9      %
Right-to-use annual payments                                                                 11.6                                                 11.4                                             1.7     %                                                45.7                                                45.0                                              1.6      %
Right-to-use contracts current period, gross                                                  2.9                                                  3.0                                            (3.9    )%                                                14.1                                                12.3                                             14.6      %
Utility and other income (5)                                                                 23.0                              19.5                         17.4     %                             90.3                             80.2                          12.7      %  
                                                                                       -------------------------------                      -------------------------------                      ----- ----- --------------------                      ------------------------------                      ------------------------------                      ------ ------ --------------------
   Property operating revenues                                                              209.4                                                197.0                                             6.2     %                                               848.8                                               802.7                                              5.8      %
                                                                                                                                                                                                                                                                                                                                                                
Property operating, maintenance and real estate taxes (5)                                    82.4                                                 75.3                                             9.5     %                                               334.8                                               312.5                                              7.1      %
Rental home operating and maintenance                                                         1.7                                                  2.0                                           (15.6    )%                                                 6.6                                                 6.9                                             (4.0     )%
Sales and marketing, gross                                                                    2.6                               2.5                          1.7     %                             11.4                             11.1                           3.4      %  
                                                                                       -------------------------------                      -------------------------------                      ----- ----- --------------------                      ------------------------------                      ------------------------------                      ------ ------ --------------------
   Property operating expenses                                                               86.7                                                 79.8                                             8.6     %                                               352.8                                               330.5                                              6.8      %
Income from property operations, excluding deferrals and property                         $ 122.7                           $ 117.2                          4.7     %                                             $ 496.0                          $ 472.2                           5.0      %
management (1)
                                                                                       ==== ===== ====================                      ==== ===== ====================                                                                            === ===== ====================                      === ===== ====================
Occupied sites (6)                                                                         66,201                                               65,726
                                                                                                                                                                                                                                                                                                                                                                
Core manufactured home site figures and occupancy averages:
Total sites                                                                                69,981                                               69,973                                                                                                    69,981                                              69,981
Occupied sites                                                                             66,099                                               65,597                                                                                                    65,942                                              65,377
Occupancy %                                                                                  94.5                    %                            93.7                    %                                                                                 94.2                    %                           93.4                    %
Monthly base rent per site                                                                $   617                                              $   595                                                                                                   $   612                                             $   589
                                                                                                                                                                                                                                                                                                                                                                
Resort base rental income:
Annual                                                                                    $  33.1                                              $  31.2                                             6.1     %                                             $ 128.0                                             $ 121.1                                              5.6      %
Seasonal                                                                                      7.0                                                  5.9                                            17.4     %                                                29.8                                                27.4                                              9.0      %
Transient                                                                                     5.9                               5.5                          7.6     %                             42.1                             40.3                           4.5      %  
                                                                                       -------------------------------                      -------------------------------                      ----- ----- --------------------                      ------------------------------                      ------------------------------                      ------ ------ --------------------
   Total resort base rental income                                                        $  46.0                           $  42.6                          7.9     %                                             $ 199.9                          $ 188.8                           5.9      %
                                                                                       ==== ===== ====================                      ==== ===== ====================                                                                            === ===== ====================                      === ===== ====================
___________________________
       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. Core excludes the results of Sunshine
                                Key and Fiesta Key RV Resorts.
       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.                       Includes impact for Hurricane Irma. Utility and other income
                                includes insurance recovery revenues of $3.0 million and $6.0
                                million for the quarter and year ended December 31, 2017,
                                respectively. Property operating, maintenance and real estate taxes
                                includes debris removal and cleanup costs of $3.0 million and $6.3
                                million for the quarter and year ended December 31, 2017,
                                respectively.
       6.                       Occupied sites as of the end of the period shown. Occupied sites
                                have increased by 475 from 65,726 at December 31, 2016.
                                
 
                                                 Non-Core - Income from Property Operations (1)
-----------------------------------------------------------------------------------------------------------------------------------------
(In millions, unaudited)                                                                              
                                                                                                                           
                                                                                Quarter                                         Year Ended
                                                                                 Ended
                                                                             December 31,                                      December 31,
                                                                                 2017                                              2017
                                                                  --------------------------------                        --------------------
Community base rental income                                           $    1.4                                                    $        5.1
Resort base rental income                                                   3.2                                                            18.9
Utility income and other property income (2)                                1.3                                          2.9
                                                                  ----------------------------------                      ----------------------
   Property operating revenues                                              5.9                                                            26.9
                                                                                                                           
   Property operating expenses (2)                                          3.6                                         14.3
                                                                  ----------------------------------                      ----------------------
Income from property operations, excluding deferrals and property      $    2.3                                 $       12.6
management
                                                                  ====== ====== ====================                      ========== ==========
______________________
     1.    See Non-GAAP Financial Measure Definitions and Other Terms at the
                              end of the supplemental information for a definition of Non-Core
                              properties.
     2.                       Includes impact for Hurricane Irma. Utility and other income
                              includes insurance recovery revenues of $1.1 million for both the
                              quarter and year ended December 31, 2017. Property operating,
                              maintenance and real estate taxes includes debris removal and
                              cleanup costs of $1.2 million and $1.2 million for the quarter and
                              year ended December 31, 2017, respectively.
                              
 
                                                                                                  Income from Rental Home Operations
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, except occupied rentals, unaudited)
                                                                                                                                         
                                                                                         Quarters Ended                                                                                     Year Ended
                                                                                          December 31,                                                                                     December 31,
                                                                     2017                           2016                                               2017                        2016
                                                         -----------------------------                     -----------------------------                     ------------------------------                     ----------------------
Manufactured homes:
New home                                                   $ 6.3                                             $ 6.4                                             $ 27.0                                                    $       25.2
Used home                                                    5.5                            5.9                            21.9                                         24.6
                                                         ----------------------------                      ----------------------------                      -----------------------------                      ----------------------
   Rental operations revenues (1)                           11.8                                              12.3                                               48.9                                                            49.8
Rental operations expense                                    1.7                            2.0                             6.6                                          6.9
                                                         ----------------------------                      ----------------------------                      -----------------------------                      ----------------------
   Income from rental operations                            10.1                                              10.3                                               42.3                                                            42.9
Depreciation on rental homes                                 2.5                            2.7                            10.4                                         10.7
                                                         ----------------------------                      ----------------------------                      -----------------------------                      ----------------------
   Income from rental operations, net of depreciation(2)   $ 7.6                          $ 7.6                          $ 31.9                                 $       32.2
                                                         === === ====================                      === === ====================                      === ==== ====================                      ========== ==========
                                                                                                                                                                                                                 
Occupied rentals: (3)
New                                                        2,533                                             2,375
Used                                                       1,884                          2,376  
                                                         ------  --------------------                      ------  --------------------
   Total occupied rental sites                             4,417                          4,751  
                                                         ======  ====================                      ======  ====================
                                 
                                                                                                                  As of
                                                                 December 31, 2017                                                           December 31, 2016
Cost basis in rental homes: (4)              Gross                           Net of                                               Gross                  Net of
                                                                                             Depreciation                                                                                   Depreciation
                                ---------------------------                        -----------------------------                        ---------------------------                        ------------
New                              $ 132.5                                              $ 105.8                                            $ 126.5                                                $  103.5
Used                                43.4                              23.8                            51.5                                 32.3
                                -----------------------------                      -------------------------------                      -----------------------------                      --------------
                                 $ 175.9                           $ 129.6                         $ 178.0                             $  135.8
   Total rental homes
                                == ===== ====================                      ==== ===== ====================                      == ===== ====================                      ====== ======
__________________________
      1.    For the quarters ended December 31, 2017 and 2016, approximately
                               $8.3 million and $8.8 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.
                               For the years ended December 31, 2017 and 2016 , approximately $34.6
                               million and $35.7 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.                       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.
      3.                       Occupied rentals as of the end of the period in our Core portfolio.
                               Included in the quarters ended December 31, 2017 and 2016 are 268
                               and 183 homes rented through our ECHO joint venture, respectively.
                               For the years ended December 31, 2017 and 2016, the rental home
                               investment associated with our ECHO joint venture totals
                               approximately $9.1 million and $7.1 million, respectively.
      4.                       Includes both occupied and unoccupied rental homes. New home cost
                               basis does not include the costs associated with our ECHO joint
                               venture. At December 31, 2017 and 2016, our investment in the ECHO
                               joint venture was approximately $15.6 million and $15.4 million,
                               respectively.
                               
                                                               
                            Total Sites and Home Sales
---------------------------------------------------------------------------------
(In thousands, except sites and home sale volumes, unaudited)
                                                               
Summary of Total Sites as of December 31, 2017
                                                                      Sites
                                                              --------------------
Community sites                                                             71,100
Resort sites:
   Annuals                                                                  27,800
   Seasonal                                                                 11,200
   Transient                                                                11,200
Membership (1)                                                              24,100
Joint Ventures (2)                                                           5,900
                                                              --------------------
Total                                                                      151,300
                                                              ====================
Home Sales - Select Data                                                            
                                                                                Quarters Ended                                                         Year Ended
                                                                                 December 31,                                                         December 31,
                                                                      2017                           2016                           2017                                  2016
                                                                   ----------                     ----------                     -----------                     ----------------------
Total New Home Sales Volume (3)                                         184                            150                             597                                         658
   New Home Sales Volume - ECHO joint venture                            32                             46                             158                                         208
New Home Sales Gross Revenues(3)                                    $ 9,035                        $ 6,574                        $ 25,759                                $     26,074
                                                                                                                                                                  
Total Used Home Sales Volume                                            326                            278                           1,280                                       1,266
Used Home Sales Gross Revenues                                      $ 2,395                        $ 2,378                        $ 10,543                                $     11,117
                                                                                                                                                                  
Brokered Home Resales Volume                                            221                            207                             880                                         792
Brokered Home Resale Revenues, net                                  $   310                        $   314                        $  1,235                                $      1,198
__________________________
      1.    Sites primarily utilized by approximately 106,500 members. Includes
                               approximately 5,800 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.
                               
 
                                                                        2018 Guidance - Selected Financial Data (1)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               
Our guidance acknowledges the existence of volatile economic
conditions, which may impact our current guidance assumptions.
Factors impacting 2018 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 Ending                                              Year Ending
                                                                                                       March 31, 2018                        December 31, 2018
                                                                                            --------------------------------------------------------- -------------------------------------
Income from property operations, excluding deferrals and property                                 $   138.2                                                 $   527.2
management - 2018 Core (2)
Income from property operations - Non-Core (3)                                                          1.3                                                       9.3
Property management and general and administrative                                                    (20.9 )                                                   (84.5 )
Other income and expenses                                                                               4.2                                                      15.5
Financing costs and other                                                                             (25.7 )                                                  (103.5 )
                                                                                            ------------------------------------                      ------------------------------------
Normalized FFO and FFO available for Common Stock and OP Unit                                          97.1                                                     364.0
holders (4)
   Depreciation on real estate and other                                                              (29.5 )                                                  (117.0 )
   Depreciation on rental homes                                                                        (2.5 )                                                   (10.1 )
   Deferral of right-to-use contract sales revenue and commission, net                                 (1.1 )                                                    (5.3 )
   Income allocated to non-controlling interest-Common OP Units                                        (3.8 )                                (13.7 )
                                                                                            ------------------------------------ -------------------- ------------------------------------
Net income available for Common Stockholders                                                      $    60.2           $   217.9  
                                                                                            ======= ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                       
                                                                                                                                                       
Net income per Common Share - fully diluted (5)                                                                    $0.65 - $0.71                                             $2.40 - $2.50
FFO per Common Share - fully diluted                                                                               $1.00 - $1.06                                             $3.80 - $3.90
Normalized FFO per Common Share - fully diluted                                                                    $1.00 - $1.06                                             $3.80 - $3.90
                                                                                                                                                       
Weighted average Common Stock outstanding - fully diluted                                              94.6                                                      94.7
_____________________________________
          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 2018 Core Guidance Assumptions. Amount represents
                                   2017 income from property operations, excluding deferrals and
                                   property management, from the 2018 Core properties of $133.4 million
                                   multiplied by an estimated growth rate of 3.6% and $505.5 million
                                   multiplied by an estimated growth rate of 4.3% for the quarter and
                                   year ending December 31, 2018, respectively.
          3.                       See page 14 for the 2018 Assumptions regarding the Non-Core
                                   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.
                                   
 
                                                                                                                2018 Core Guidance Assumptions (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In millions, unaudited)
                                                                                                                                                      
                                                                                                   Quarter                                      First                                    Year Ended                                              2018
                                                                                                    Ended                                   Quarter 2018
                                                                                                  March 31,                                    Growth                                   December 31,                                            Growth
                                                                                                    2017                                     Factors (2)                                    2017                                              Factors (2)
                                                                                       ----------------------------                        ------------                       -----------------------------                        ------------------------------
Community base rental income                                                             $ 120.7                                              4.5      %                         $ 489.1                                                  4.1                    %
Rental home income                                                                           3.6                                             (0.3     )%                            14.3                                                 (3.7                   )%
Resort base rental income (3)                                                               57.7                                              5.1      %                           211.1                                                  4.7                    %
Right-to-use annual payments                                                                11.3                                              1.2      %                            45.8                                                  1.0                    %
Right-to-use contracts current period, gross                                                 3.2                                             (1.5     )%                            14.1                                                  1.1                    %
Utility and other income                                                                    21.9                          (0.2     )%                            92.0                              (8.5                   )%
                                                                                       ------------------------------                      ------ ------                      -------------------------------                      ---------- --------------------
   Property operating revenues                                                             218.4                                              3.9      %                           866.4                                                  2.6                    %
                                                                                                                                                                                                                                    
Property operating, maintenance, and real estate taxes                                      80.7                                              4.3      %                           342.9                                                  0.1                    %
Rental home operating and maintenance                                                        1.6                                             (0.1     )%                             6.6                                                 (2.8                   )%
Sales and marketing, gross                                                                   2.7                           9.3      %                            11.4                               4.3                    %
                                                                                       ------------------------------                      ------ ------                      -------------------------------                      ---------- --------------------
   Property operating expenses                                                              85.0                           4.3      %                           360.9                               0.1                    %
                                                                                       ------------------------------                      ------ ------                      -------------------------------                      ---------- --------------------
Income from property operations, excluding deferrals and property                        $ 133.4                           3.6      %                         $ 505.5                               4.3                    %
management
                                                                                       === ===== ====================                      ====== ======                      ==== ===== ====================                      ========== ====================
                                                                                                                                                                                                                                    
Resort base rental income:
Annual                                                                                   $  31.8                                              5.6      %                         $ 131.7                                                  5.1                    %
Seasonal                                                                                    17.1                                              4.2      %                            33.6                                                  2.9                    %
Transient                                                                                    8.8                           5.0      %                            45.8                               5.0                    %
                                                                                       ------------------------------                      ------ ------                      -------------------------------                      ---------- --------------------
   Total resort base rental income                                                       $  57.7                           5.1      %                         $ 211.1                               4.7                    %
                                                                                       === ===== ====================                      ====== ======                      ==== ===== ====================                      ========== ====================
                                                                                                                                                                                                                                               
                                                                                                        
                                                2018 Assumptions Regarding Non-Core Properties (1)
-------------------------------------------------------------------------------------------------------------------------------------------
(In millions, unaudited)
                                                                                                                             
                                                                             Quarter Ending                                       Year Ending
                                                                                March 31,                                        December 31,
                                                                                2018 (4)                                           2018 (4)
                                                                  ----------------------------------                        --------------------
Community base rental income                                            $     0.2                                                    $        0.8
Resort base rental income                                                     2.0                                                            14.6
Utility income and other property income                                      0.9                                          3.7
                                                                  ------------------------------------                      ----------------------
   Property operating revenues                                                3.1                                                            19.1
                                                                                                                             
Property operating, maintenance, and real estate taxes                        1.8                                          9.8
                                                                  ------------------------------------                      ----------------------
   Property operating expenses                                                1.8                                          9.8
                                                                  ------------------------------------                      ----------------------
Income from property operations, excluding deferrals and property       $     1.3                                 $        9.3
management
                                                                  ======= ======= ====================                      ========== ==========
_____________________________________
          1.    See Non-GAAP Financial Measure Definitions and Other Terms at the
                                   end of the supplemental information for a definition of Core and
                                   Non-Core properties.
          2.                       Management’s estimate of the growth of property operations in the
                                   2018 Core Properties compared to actual 2017 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 Non-Core properties. Actual
                                   income from property operations for the Non-Core 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,
                                                                             2014          2015          2016          2017         2018 (1)    
                                                                         ---------                        ---------                        ---------                        ---------                        ------------  --------------------
Member Count (2)                                                             96,130                          102,413                          104,728                          106,456                             108,100
Thousand Trails Camping Pass (TTC) Origination (3)                           18,187                           25,544                           29,576                           31,618                              32,800
   TTC Sales                                                                 10,014                           11,877                           12,856                           14,128                              14,700
   RV Dealer TTC Activations                                                  8,173                           13,667                           16,720                           17,490                              18,100
Number of annuals (4)                                                         5,142                            5,470                            5,756                            5,843                               6,100
Number of upgrade sales (5)                                                   2,978                            2,687                            2,477                            2,514                               2,600
                                                                                                                                                                                                              
Right-to-use annual payments                                               $ 44,860                         $ 44,441                         $ 45,036                         $ 45,798                            $ 46,300
Resort base rental income from annuals                                     $ 12,491                         $ 13,821                         $ 15,413                         $ 16,841                            $ 18,400
Resort base rental income from seasonals/transients                        $ 13,894                         $ 15,795                         $ 17,344                         $ 18,231                            $ 19,900
Upgrade contract initiations (6)                                           $ 13,892                         $ 12,783                         $ 12,312                         $ 14,130                            $ 14,300
Utility and other income                                                   $  2,455                         $  2,430                         $  2,442                         $  2,254                            $  2,200
________________________________
        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.                       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 December 31, 2017
                                         
                                                                           Total                % of Total                 Total               % of Total        % of Total
                                                                          Common                                     Common                                                                                                                    Market
                                                                        Stock/Units                                Stock/Units                                                                                                             Capitalization
                                                             ------------------------------   -------------------- ---------  -------------------- -----------------------------   -------------------- ---------  -------------------- -------------------
                                                                                                                                                                                                                                         
Secured Debt                                                                                                                                         $  1,994                                            89.7    %
Unsecured Debt                                                                                                                                            230                         10.3    %
                                                                                                                                                   -------------------------------                      ----- ----
Total Debt (1)                                                                                                                                       $  2,224                                           100.0    %                            20.9         %
                                                                                                                                                                                                                                         
Common Stock                                                  88,585,160                                            93.8    %
OP Units                                                       5,834,753                          6.2    %
                                                             --------------------------------                      ----- ----
Total Common Stock and OP Units                               94,419,913                                           100.0    %
Common Stock price at December 31, 2017                          $ 89.02
Fair Value of Common Stock and OP Units                                                                                                              $  8,405                        100.0    %
                                                                                                                                                   --- ------ --------------------                      ----- ----
Total Equity                                                                                                                                         $  8,405                                           100.0    %                            79.1         %
                                                                                                                                                                                                                                         
Total Market Capitalization                                                                                                                          $ 10,629                                                                                100.0         %
_________________
   1.    Excludes deferred financing costs of approximately $23.7 million.
                            
 
                                                                                                                                                                                                                                     Debt Maturity Schedule
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                           
Debt Maturity Schedule as of December 31, 2017
(In thousands, unaudited)
                                                                                                                                                                                                                                                                      
            Year                              Secured                        Weighted                                                  Unsecured                              Weighted                    Total Debt                 % of                 Weighted       
                                                                 Debt(1)                                            Average                                                                       Debt                                                     Average                                                                                                                           Total                                                       Average
                                                                                                                   Interest                                                                                                                               Interest                                                                                                                           Debt                                                       Interest
                                                                                                                     Rate                                                                                                                                  Rate(1)                                                                                                                                                                                       Rate(1)
--------------------------- -------------------- ------------------------------------   -------------------- ------------------  ----------------------------------------------   ----------------------------------   -------------------- ----------------------------------  -------------------- ----------------  -------------------- -------------------- -------------------- ----------------  -------------------- -------------------- ------------------  ----------------------------------------------
            2018                                             3,020                                                     8.00    %                                                   --                                           --                                                       3,020                                                                          0.14  %                                                     8.00    %
            2019                                           197,226                                                     6.27    %                                                   --                                           --                                                     197,226                                                                          9.00  %                                                     6.27    %
            2020                                           119,500                                                     6.14    %                                                   --                                           --                                                     119,500                                                                          5.46  %                                                     6.14    %
            2021                                           187,065                                                     5.01    %                                                   --                                           --                                                     187,065                                                                          8.54  %                                                     5.01    %
            2022                                           146,439                                                     4.59    %                                                   --                                           --                                                     146,439                                                                          6.69  %                                                     4.59    %
            2023                                           108,642                                                     5.10    %                                                          200,000                                                     2.96                    %                                308,642                                                                         14.09  %                                                     3.77    %
            2024                                    --                                           --    %                                                   --                                           --                                              --                                                                --  %                                           --    %
            2025                                           105,572                                                     3.45    %                                                   --                                           --                                                     105,572                                                                          4.82  %                                                     3.45    %
            2026                                    --                                           --    %                                                   --                                           --                                              --                                                                --  %                                           --    %
         Thereafter                                      1,123,029                                  4.19    %                                                   --                        --                                1,123,029                                                      51.27  %                                                     4.19    %  
                                                 --------------------------------------                      -------------- ----                                                  ------------------------------------                      -------------- --------------------                      --------------------------------------                                           -------------- --                                           -------------- ---- -------------------------------------------------
            Total                                      $ 1,990,493                                  4.63    %                                                        $ 200,000                                  2.96                    %                            $ 2,190,493                                                      100.0  %                                                     4.49    %
                                                 ------- --------- --------------------                      -------------- ----                                                  ------- ------- --------------------                      -------------- --------------------                      ------- --------- --------------------                                           -------------- --                                           -------------- ----
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Line of Credit Borrowing(2)                        --                                                                                                                         30,000                                                     2.37                    %                                 30,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
        Note Premiums                                        3,253                                                                                              --                                                                                             3,253  
                                                 --------------------------------------                                                                                           ------------------------------------                                                                               --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
         Total Debt                                      1,993,746                                                                                                                        230,000                                                                                                            2,223,746
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Deferred Financing Costs                                 (22,031 )                                                                                                                       (1,698 )                                                                                                            (23,729 )
                                                 --------------------------------------                                                                                           ------------------------------------                                                                               --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
       Total Debt, net                                   1,971,715                                                     4.69    %    (1)             228,302                                                     3.05                    %                              2,200,017                                                                                                                                      4.53    %    (1)    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Average Years to Maturity                                                        13.0                                                                                                                            5.2                                                                                            12.2  
                                                 =======================================                                                                                          =====================================                                                                              ======================================
______________________
     1.    Reflects effective interest rate including amortization of note
                              premiums and amortization of deferred loan cost for secured,
                              unsecured and total debt.
     2.                       Reflects outstanding balance on the Line of Credit as of December
                              31, 2017. The Line of Credit matures in October 2021.
                              

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                                                                                                    Year Ended
                                                                                                                                   December 31,                                                                                                    December 31,
                                                                                                          2017                                 2016                                                    2017                                 2016
                                                                                            ---------------------------------                     -------------------------------------                     ---------------------------------                     -------------------------------------
Net income available for Common Stockholders                                                  $  44,993                                                 $  36,966                                             $ 189,904                                                 $ 164,037
   Perpetual preferred stock dividends and original issuance costs                                   18                                                     2,316                                                 7,685                                                     9,226
   Income allocated to non-controlling interests - Common OP Units                                2,963                                                     3,099                                                12,788                                                    13,869
   Equity in income of unconsolidated joint ventures                                               (889 )                                                    (463 )                                              (3,765 )                                                  (2,605 )
                                                                                            --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Income before equity in income of unconsolidated joint ventures                               $  47,085                                                 $  41,918                                             $ 206,612                                                 $ 184,527
   Right-to-use upfront payments, deferred, net                                                     342                                                       652                                                 4,108                                                     3,079
   Gross revenues from home sales                                                               (11,430 )                                                  (8,952 )                                             (36,302 )                                                 (37,191 )
   Brokered resale revenues and ancillary services revenues, net                                    290                                                      (258 )                                              (3,798 )                                                  (2,994 )
   Interest income                                                                               (2,038 )                                                  (1,793 )                                              (7,580 )                                                  (6,845 )
   Income from other investments, net                                                            (1,877 )                                                    (736 )                                              (5,795 )                                                  (7,310 )
   Right-to-use contract commissions, deferred, net                                                  18                                                       (11 )                                                (354 )                                                    (223 )
   Property management                                                                           12,509                                                    11,413                                                51,252                                                    47,083
   Depreciation on real estate and rental homes                                                  30,606                                                    30,198                                               121,455                                                   117,400
   Amortization of in-place leases                                                                  103                                                     1,234                                                 2,231                                                     3,373
   Cost of homes sales                                                                           11,122                                                     8,949                                                36,513                                                    37,456
   Home selling expenses                                                                            885                                                     1,027                                                 4,186                                                     3,575
   General and administrative                                                                     8,398                                                     7,688                                                31,737                                                    31,004
   Other expenses, including property rights initiatives (1)                                        334                                                     2,950                                                 1,148                                                     4,986
   Early debt retirement                                                                          2,785                                            --                                                 2,785                                            --
   Interest and related amortization                                                             25,842                                 25,395                            100,570                                102,030  
                                                                                            --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Income from property operations, excluding deferrals and property                               124,974                                                   119,674                                               508,768                                                   479,950
management
   Right-to-use contracts, deferred and sales and marketing, deferred,                             (360 )                                                    (641 )                                              (3,754 )                                                  (2,856 )
   net
   Property management                                                                          (12,509 )                                                 (11,413 )                                             (51,252 )                                                 (47,083 )
                                                                                            --------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Income from property operations                                                               $ 112,105                              $ 107,620                          $ 453,762                              $ 430,011  
                                                                                            === ======= ====================                      ======= ======= ====================                      === ======= ====================                      ======= ======= ====================
______________________
     1.    Other expenses, including property rights initiatives includes net
                              expense of $2.4 million for the quarter and year ended December 31,
                              2016, related to resolution of the California lawsuits.
                              

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) depreciation on unconsolidated joint ventures; f) impairments, if any; and g) 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                                                                                                      Year Ended
                                                                                                                       December 31,                                                                                                      December 31,
                                                                                              2017                                   2016                                                    2017                                 2016
                                                                              -------------------------------------                     -------------------------------------                     ---------------------------------                     -------------------------------------
Consolidated net income                                                             $  47,974                                                 $  42,381                                             $ 210,377                                                 $ 187,132
   Interest Income                                                                     (2,038 )                                                  (1,793 )                                              (7,580 )                                                  (6,845 )
   Depreciation on real estate assets and rental homes                                 30,606                                                    30,198                                               121,455                                                   117,400
   Amortization of in-place leases                                                        103                                                     1,234                                                 2,231                                                     3,373
   Depreciation on corporate assets                                                       334                                                       280                                                 1,263                                                     1,120
   Interest and related amortization                                                   25,842                                 25,395                            100,570                                102,030  
                                                                              ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
EBITDA                                                                                102,821                                                    97,695                                               428,316                                                   404,210
   Right-to-use contract upfront payments, deferred, net                                  342                                                       652                                                 4,108                                                     3,079
   Right-to-use contract commissions, deferred, net                                        18                                                       (11 )                                                (354 )                                                    (223 )
   Depreciation on unconsolidated joint ventures                                          362                                                       324                                                 1,533                                                     1,292
   Transaction costs                                                                      400                                                       292                                                   724                                                     1,217
   Early debt retirement                                                                2,785                                            --                                                 2,785                                            --
   Litigation Settlement, net                                                                                                                     2,415                                                                                                           2,415
   Preferred stock original issuance costs                                     --      --             757      --  
                                                                              ------------------------------------ -------------------- ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
Adjusted EBITDA                                                                     $ 106,728           $ 101,367       $ 437,869           $ 411,990  
                                                                              ======= ======= ==================== ==================== ======= ======= ==================== ==================== === ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                         

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.

NON-CORE. The Non-Core properties include all properties that were not owned and operated in 2016 and 2017. This includes, but is not limited to, three properties acquired during 2017, four properties acquired during 2016, and Tropical Palms RV Resort. Non-Core properties also includes Sunshine Key and Fiesta Key RV Resorts.

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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