CHICAGO, July 24 /PRNewswire/ -- Manufactured Home Communities, Inc. (NYSE: MHC) today announced results for the quarter and six months ended June 30, 2001. For the second quarter of 2001, funds from operations (FFO) were $16.3 million, or $.61 per share on a fully diluted basis, compared to $15.2 million, or $.55 per fully diluted share, in the same period in 2000. This represents a 10.9 percent increase in FFO per share on a fully diluted basis. Second quarter revenues were $56.2 million compared to $54.3 million in the second quarter of 2000. For the second quarter of 2001, average occupancy was 94.2 percent and average monthly base rent per site for the Core Portfolio was $374.76 up from $358.73 in the same period last year.

For the six months ended June 30, 2001 FFO were $32.8 million, or $1.22 per share on a fully diluted basis, compared to $32.0 million, or $1.14 per fully diluted share, in the same period in 2000. This represents a 7.0 percent increase in FFO per share on a fully diluted basis. Revenues were $113.8 million for the six months ended June 30, 2001 compared to $111.4 million in the same period last year. For the first six months of 2001, average occupancy was 94.5 percent and average monthly base rent per site for the Core Portfolio was $373.27 up from $358.27 in the same period last year.

Although first half 2001 FFO growth was 7 percent, MHC's management believes that, if property performance is in line with expectations for the second half, FFO per share growth for the full year 2001 should be between 8 and 10 percent. This performance expectation is based on rental revenue increases of 4 to 4.5 percent, expense growth in line with CPI and a goal of filling 250 expansion sites for the year.

The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, the Company's ability to maintain rental rates and occupancy; the Company's assumptions about rental and home sales markets continuing at their current strong levels; the effect of interest rates as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Manufactured Home Communities, Inc. owns or has a controlling interest in 149 quality communities in 23 states consisting of 50,996 sites. MHC is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.

A live web cast of the Company's conference call discussing these results will be available via the Company's website in the Investor Data section at www.mhchomes.com at 12:00 noon Central today.

                       Manufactured Home Communities, Inc.
                             Selected Financial Data
                                   (Unaudited)
                 (Amounts in thousands except for per share data)

                                 Quarters Ended          Six Months Ended
                              June 30,     June 30,   June 30,      June 30,
                                2001         2000       2001          2000
    Revenues
      Base rental income      $48,770     $47,249     $97,783      $94,558
      RV base rental income       633       1,176       2,483        4,875
      Utility and other
       income                   5,987       5,031      12,419       10,729
      Equity in income of
       affiliates                 654         642         677          792
      Interest income             174         173         388          464
        Total revenues         56,218      54,271     113,750      111,418

    Expenses
      Property operating
       and maintenance         15,351      14,411      31,344       29,818
      Real estate taxes         4,429       4,363       9,031        8,687
      Property management       2,267       2,171       4,514        4,560
      General and
       administrative           1,857       1,834       3,513        3,660
        Total expenses         23,904      22,779      48,402       46,725

    Operating income
     (EBITDA)                  32,314      31,492      65,348       64,693
      Interest and related
       amortization           (12,905)    (13,154)    (26,311)     (26,485)
      Depreciation on
       corporate assets          (310)       (277)       (614)        (548)
      Income allocated to
       Preferred OP Units      (2,813)     (2,813)     (5,626)      (5,626)
    Funds from operations
     (FFO)                    $16,286     $15,248     $32,797      $32,034

      Depreciation on real
       estate and other
       costs                   (8,587)     (8,567)    (17,266)     (17,424)
      Gain on sale of
       properties and other       ---      12,053       8,093       12,053
      Extraordinary loss on
       early extinguishments
       of debt                    ---      (1,305)        ---       (1,305)
      Income allocated to
       Common OP Units         (1,564)     (3,508)     (4,846)      (5,107)
    Net Income                 $6,135     $13,921     $18,778      $20,251

    Net Income per Common
     Share - Basic               $.29        $.64        $.90         $.92
    Net Income per Common
     Share - Fully Diluted       $.29        $.63        $.88         $.90

    FFO per Common Share
     - Basic                     $.62        $.56       $1.24        $1.16
    FFO per Common Share
     - Fully Diluted             $.61        $.55       $1.22        $1.14

    Average Common Shares
     - Basic                   20,969      21,871      20,881       22,082
    Average Common Shares
     and OP Units - Basic      26,450      27,469      26,375       27,700
    Average Common Shares
     and OP Units - Fully
     Diluted                   26,898      27,809      26,824       28,024

    Funds From Operations:

The Company believes that Funds From Operations provide an indicator of its financial performance and is influenced by both the operations of the properties and the capital structure of the Company. FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income (computed in accordance with generally accepted accounting principles ["GAAP"]), before allocation to minority interests, excluding gains (or losses) from sales of property, plus real estate depreciation. The Company computes FFO in accordance with the NAREIT definition, which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs.

                     Manufactured Home Communities, Inc.
                                 (Unaudited)

    Selected Balance Sheet Data:             As of         As of
                                            June 30,    December 31,
    (Amounts in thousands)                    2001          2000

    Total real estate, net               $1,036,267    $1,036,596
    Cash and cash equivalents                $3,417        $2,847
    Total assets                         $1,105,960    $1,104,304

    Mortgage notes payable                 $554,548      $556,578
    Unsecured debt                         $158,306      $163,106
    Total liabilities                      $761,102      $764,938
    Minority interest                      $171,515      $171,271
    Total shareholder's equity             $173,343      $168,095


    Total Shares and OP Units Outstanding:        As of            As of
                                                June 30,       December 31,
                                                  2001             2000

    Total Common Shares Outstanding           21,294,747         21,064,785
    Total Common OP Units Outstanding          5,439,874          5,514,330


    Site Totals:                            As of             As of
                                           June 30,        December 31,
                                             2001              2000
    Manufactured Housing Sites
     Owned and Operated                    46,328            46,734
    Manufactured Housing Sites
     in Joint Ventures                      1,521             1,521
    Total RV Sites                          3,147             3,197
        Total Sites                        50,996            51,452


    Site and Occupancy Averages:
                                 Quarters Ended       Six Months Ended
                              June 30,  June 30,    June 30,   June 30,
                                2001      2000        2001       2000
    Average total sites        46,296     47,122      46,462     47,206
    Average occupied sites     43,605     44,397      43,911     44,496
    Occupancy %                  94.2%      94.2%       94.5%      94.3%
    Monthly Base Rent Per
     Site                     $373.03    $354.76     $371.25    $354.19
    Monthly Base Rent Per
     Site - Core Portfolio*   $374.76    $358.73     $373.27    $358.27

    (*) Represents rent per site for properties owned in both periods of
        comparison

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SOURCE Manufactured Home Communities, Inc.
Web site: http: //www.mhchomes.com
CONTACT: Marty McKenna of Manufactured Home Communities, +1-312-928-1901