UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: October 17, 2011
(Date of earliest event reported)

EQUITY LIFESTYLE PROPERTIES, INC.
(Exact name of registrant as specified in its charter)

 
 	 	 	 	 	
Maryland	 	1-11718	 	36-3857664	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File No.)	 	(IRS Employer
Identification No.)	
 	 	
Two North Riverside Plaza, Chicago, Illinois	 	60606	
(Address of principal executive offices)	 	(Zip Code)	
(312) 279-1400
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02	Results of Operations and Financial Condition	
On October 17, 2011, Equity LifeStyle Properties, Inc. (the “Company”) issued a news release announcing its results of operations for the three and nine months ended September 30, 2011. The information is furnished as Exhibit 99.1 to this report on Form 8-K.
Attached as Exhibit 99.2 is a supplemental package that was posted on the Company’s website, www.equitylifestyle.com, on October 17, 2011. Included in this package is additional information regarding the Company’s September 30, 2011 results, the previously announced anticipated acquisition of 75 manufactured home communities and one RV resort and certain manufactured homes and loans secured by manufactured homes located at the properties in the aforementioned portfolio (the “Acquisition”), the Company’s earnings guidance for the three months and year ended December 31, 2011 and year ended December 31, 2012. See the Company’s Form 8-K dated on October 11, 2011, October 3, 2011, September 1, 2011, August 1, 2011, July 1, 2011 and May 31, 2011 for further information about the Acquisition.
The information contained in this report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Equity LifeStyle Properties, Inc. under the Securities Act of 1933, as amended.
The Company projects its net income per share (fully diluted), funds from operations (“FFO”) per share (fully diluted) and FFO per share, excluding transaction costs (fully diluted) for the year ending December 31, 2011 to be $0.52, $3.42 and $3.97, respectively. The Company preliminarily projects its net income per share (fully diluted) and funds from operations (“FFO”) per share (fully diluted) for the year ending December 31, 2012 to be $0.89 and $4.42, respectively. The projected 2011 and 2012 per share amounts represent the mid-point of a range of possible outcomes and reflects management’s best estimate of the most likely outcome. The supplemental package attached as Exhibit 99.2 provides detailed assumptions regarding the performance of the Company’s core portfolio and the Acquisition.
This news 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 the Company’s expectations, goals or intentions regarding the future, statements regarding the anticipated closings of its pending Acquisition and the expected effect of the Acquisition on the Company. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
 
 	•	 	the Company’s ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its Properties (including those that it may acquire);	
 
 	•	 	the Company’s ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire;	
 
 	•	 	the Company’s assumptions about rental and home sales markets;	
 
 	•	 	the Company’s assumptions and guidance concerning 2011 and 2012 estimated net income and funds from operations;	
 
 	•	 	in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers 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;	
 
 	•	 	the completion of the Acquisition in its entirety and future acquisitions, if any, timing and effective integration with respect thereto and the Company’s estimates regarding the future performance of the Acquisition Properties;	
 
 	•	 	unanticipated costs or unforeseen liabilities associated with the Acquisition;	

 	•	 	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; ” and	
 
 	•	 	other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission.	
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. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
 
Item 9.01	Financial Statements and Exhibits	
(d) Exhibits
The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant’s annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit 99.1	  	Equity LifeStyle Properties, Inc. press release dated October 17, 2011, “ELS Reports Third Quarter Results”	
 	 	
Exhibit 99.2	  	Third Quarter 2011 Supplemental Operating and Financial Information	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

EQUITY LIFESTYLE PROPERTIES, INC.	
 	 	
By:	 	/s/ Thomas Heneghan	
 	 	Thomas Heneghan	
 	 	President and Chief Executive Officer	
 	 	
By:	 	/s/ Michael Berman	
 	 	Michael Berman	
 	 	Executive Vice President and
    Chief Financial Officer	
Date: October 18, 2011

Exhibit 99.1
N EWS   R ELEASE

 	 	 	 	 	 	 	
CONTACT:	  	Michael Berman	  	 	 	FOR IMMEDIATE RELEASE	
 	  	(312) 279-1496	  	 	 	October 17, 2011	
ELS REPORTS THIRD QUARTER RESULTS
Issues Preliminary 2012 Guidance
CHICAGO, IL – October 17, 2011 – Equity LifeStyle Properties, Inc. (NYSE: ELS) (the “Company”) today announced results for the three and nine months ended September 30, 2011.
 
 	a)	Financial Results	
For the three months ended September 30, 2011, Funds From Operations (“FFO”) were $31.8 million, or $0.73 per share on a fully-diluted basis, compared to $32.7 million, or $0.92 per share on a fully-diluted basis, for the same period in 2010. For the nine months ended September 30, 2011, FFO was $99.7 million, or $2.57 per share on a fully-diluted basis, compared to $97.3 million, or $2.74 per share on a fully-diluted basis, for the same period in 2010. Excluding approximately $15.2 million and $17.3 million in transaction costs incurred in connection with the Acquisition (as described below) during the three and nine months ended September 30, 2011, respectively, FFO would have been $47.0 million and $117.0 million, or $1.08 and $3.01 per share on a fully-diluted basis, for the three and nine months ended September 30, 2011, respectively.
Net loss available to common stockholders totaled ($2.9) million, or ($0.07) per share on a fully-diluted basis, for the three months ended September 30, 2011 compared to net income available to common stockholders of $11.6 million, or $0.37 per share on a fully-diluted basis, for the same period in 2010. Net income available to common stockholders totaled $22.9 million, or $0.67 per share on a fully-diluted basis for the nine months ended September 30, 2011, compared to $32.6 million, or $1.06 per share on a fully-diluted basis, for the same period in 2010. Excluding approximately $15.2 million and $17.3 million in transaction costs incurred in connection with the Acquisition (as described below) during the three and nine months ended September 30, 2011, respectively, net income available to common stockholders would have been $12.4 million and $40.3 million, or $0.28 and $1.04 per share on a fully-diluted basis, for the three and nine months ended September 30, 2011, respectively. See the attachment to this press release for a reconciliation of FFO and FFO per share to net income available to common shares and net income per common share, respectively, the most directly comparable GAAP measures.
 
 	b)	Portfolio Performance	
For the three months ended September 30, 2011 property operating revenues, excluding deferrals, were $154.6 million, compared to $130.6 million in the same period in 2010. Our property operating revenues for the nine months ended September 30, 2011 were $411.8 million, compared to $385.6 million for the same period in 2010. Our property operating revenues for the three and nine months ended September 30, 2011 include approximately $22.1 million of property operating revenues from 58 properties acquired during the three months ended September 30, 2011.

For the three months ended September 30, 2011, our Core property operating revenues increased approximately 1.5 percent as compared to the same period in 2010. Core property operating expenses for the three months ended September 30, 2011 decreased approximately 0.7 percent, resulting in an increase of approximately 4.1 percent to income from Core property operations over the same period in 2010. For the nine months ended September 30, 2011, our Core property operating revenues increased approximately 1.0 percent and Core property operating expenses decreased approximately 0.7 percent, resulting in an increase of approximately 2.8 percent to income from Core property operations over the same period in 2010.
A number of the Company’s locations on the east coast of the United States were closed during the weekend of August 27th due to power outages and other weather related issues caused by Hurricane Irene and a few properties remained closed over the Labor Day holiday weekend. As a result of Hurricane Irene, the Company’s income from Core property operations was approximately $0.6 million less than expected due to the costs associated with the clean-up of flood damage and other items such as wind blown debris, falling trees and tree branches as well as reduced transient RV income due to property closures.
 
 	c)	Asset-related Transactions	
On May 31, 2011, the Company’s operating partnership entered into purchase and other agreements (the “Purchase Agreements”) to acquire a portfolio of 75 manufactured home communities and one RV resort (the “Acquisition Properties”) containing 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the Acquisition Properties (the “Home Related Assets”) for a stated purchase price of $1.43 billion (the “Acquisition”). Total transaction costs associated with the Acquisition are expected to be approximately $22 million of which approximately $17.3 million were incurred during the nine months ended September 30, 2011.
During the three months ended September 30, 2011, the Company closed on 58 of the Acquisition Properties and certain Home Related Assets associated with such 58 Acquisition Properties for a stated aggregate purchase price of approximately $1,047.0 million. The Company funded the purchase price of these closings with (i) the issuance of 1,708,276 shares of its Common Stock, to the seller with an aggregate stated value of approximately $99.1 million, (ii) the issuance of 1,242,462 shares of Series B Subordinated Non-Voting Cumulative Preferred Stock (“Series B Preferred Stock”) to the seller with an aggregate stated value of approximately $72.1 million, (iii) the assumption of approximately $328.0 million of mortgage debt secured by 18 Acquisition Properties, (iv) approximately $200 million of cash from an unsecured term loan we closed on July 1, 2011 and (iv) cash of approximately $348.0 million primarily from net proceeds of the June 2011 Common Stock offering. The assumed mortgage debt has stated interest rates ranging from 4.65% to 7.31% per annum and matures on dates ranging from 2013 to 2020.
During October of 2011, the Company closed on three of the Acquisition Properties and certain Home Related Assets associated with such three Acquisition Properties for a stated aggregate purchase price of approximately $110 million. The Company funded the purchase price of this closing with (i) the issuance of 497,538 shares of Series B Preferred Stock to the seller with an aggregate stated value of approximately $29.0

million, (ii) the assumption of approximately $56.0 million of mortgage debt secured by the three Acquisition Properties and (iii) approximately $25.0 million of cash. The Company expects to close on 14 of the remaining Acquisition Properties on or before November 1, 2011. As previously discussed in our press release dated October 3, 2011, the Company is continuing to perform due diligence on the Clinton property and therefore, the Company is unable to provide a current estimate of a closing date for the Clinton property. The remainder of the Acquisition is also subject to other customary closing conditions. Accordingly, no assurances can be given that the remainder of the Acquisition will be completed in its entirety in accordance with the anticipated timing or at all.
 
 	d)	Balance Sheet	
Our cash balance as of September 30, 2011 was approximately $213.0 million. We expect to use most of our September 30, 2011 cash balance on the completion of the Acquisition during the fourth quarter of 2011. Our average long-term debt balance was approximately $2.1 billion in the quarter, with a weighted average interest rate, including amortization, of approximately 5.83 percent per annum and weighted average maturity of 5.70 years. Interest coverage was approximately 2.5 times in the quarter ended September 30, 2011.
During the three months ended September 30, 2011, the Company closed on $200.0 million of financings secured by 20 manufactured home communities and three resort properties with a weighted average interest rate of 5.02% per annum, maturing in 2021.
 
 	e)	Guidance	
A supplemental package with additional information on September 30, 2011 results, the Acquisition and guidance is available via the Company’s website in the Investor Information section under Quarterly Supplemental Packages and will be filed as Exhibit 99.2 on the Company’s Form 8-K filed on October 18, 2011.
The Company’s annualized dividend for 2011 is $1.50 per common share. At the next quarterly Board of Directors meeting, management of the Company intends to recommend an increase of $0.25 per common share to the annual dividend for 2012 for a total dividend of $1.75 per common share.
The Company’s guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2011 and 2012 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 of 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) completion of the Acquisition in its entirety and on the schedule assumed, (viii) transaction costs associated with the Acquisition and (ix) our ability to integrate and operate the Acquisition Properties in accordance with our estimates. Results for 2011 and 2012 also may be impacted by, among other things (i) continued competitive housing options and new home sales initiatives impacting occupancy levels at certain properties; (ii) variability in income from home sales operations, including anticipated expansion projects; (iii) potential effects of uncontrollable factors such as environmental remediation costs and hurricanes; (iv) potential acquisitions, investments and dispositions; (v) mortgage debt maturing during 2012; (vi) changes in interest rates; and (vii) continued initiatives regarding rent control legislation in California and related legal fees. Quarter-to-quarter results during the year are impacted by the seasonality at certain of the properties.

As of October 17, 2011, Equity LifeStyle Properties, Inc. owns or has an interest in 368 quality properties in 32 states and British Columbia consisting of 136,100 sites. The Company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
A live webcast of Equity LifeStyle Properties, Inc.’s conference call discussing these results will be available via the Company’s website in the Investor Info section at  www.equitylifestyle.com  at 10:00 a.m. Central time on October 18, 2011.
This news 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 the Company’s expectations, goals or intentions regarding the future, statements regarding the anticipated closing of its pending Acquisition and the expected effect of the Acquisition on the Company. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
 
 	•	 	the Company’s ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its Properties (including those that it may acquire);	
 
 	•	 	the Company’s ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire;	
 
 	•	 	the Company’s assumptions about rental and home sales markets;	
 
 	•	 	the Company’s assumptions and guidance concerning 2011 and 2012 estimated net income and funds from operations;	
 
 	•	 	in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers 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;	
 
 	•	 	the completion of the Acquisition in its entirety and future acquisitions, if any, timing and effective integration with respect thereto and the Company’s estimates regarding the future performance of the Acquisition Properties;	
 
 	•	 	unanticipated costs or unforeseen liabilities associated with the Acquisition;	
 
 	•	 	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; ” and	
 
 	•	 	other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission.	
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. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.

Tables follow:
Equity LifeStyle Properties, Inc.
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands except for per share data)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	September 30,
2011	 	 	September 30,
2010	 	 	September 30,
2011	 	 	September 30,
2010	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Community base rental income	  	$	87,149	  	 	$	65,043	  	 	$	219,740	  	 	$	194,066	  	
Resort base rental income	  	 	36,139	  	 	 	35,991	  	 	 	101,858	  	 	 	101,440	  	
Right-to-use annual payments	  	 	12,444	  	 	 	12,554	  	 	 	37,019	  	 	 	37,628	  	
Right-to-use contracts current period, gross	  	 	4,386	  	 	 	4,552	  	 	 	13,096	  	 	 	15,170	  	
Right-to-use contracts, deferred, net of prior period amortization	  	 	(2,858	) 	 	 	(3,330	) 	 	 	(8,768	) 	 	 	(11,829	) 	
Utility and other income	  	 	14,498	  	 	 	12,490	  	 	 	40,044	  	 	 	37,297	  	
Gross revenues from home sales	  	 	1,636	  	 	 	1,765	  	 	 	4,281	  	 	 	4,759	  	
Brokered resale revenues, net	  	 	141	  	 	 	237	  	 	 	608	  	 	 	718	  	
Ancillary services revenues, net	  	 	1,134	  	 	 	1,262	  	 	 	2,261	  	 	 	2,458	  	
Interest income	  	 	2,328	  	 	 	1,048	  	 	 	4,379	  	 	 	3,237	  	
Income from other investments, net	  	 	4,394	  	 	 	2,583	  	 	 	6,242	  	 	 	5,244	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	161,391	  	 	 	134,195	  	 	 	420,760	  	 	 	390,188	  	
 	 	 	 	 	
Expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating and maintenance	  	 	56,451	  	 	 	51,495	  	 	 	148,417	  	 	 	141,947	  	
Real estate taxes	  	 	10,304	  	 	 	7,938	  	 	 	26,522	  	 	 	24,578	  	
Sales and marketing, gross	  	 	2,950	  	 	 	3,052	  	 	 	8,289	  	 	 	9,900	  	
Sales and marketing, deferred commissions, net	  	 	(1,148	) 	 	 	(1,274	) 	 	 	(3,495	) 	 	 	(4,343	) 	
Property management	  	 	9,201	  	 	 	8,373	  	 	 	25,857	  	 	 	24,906	  	
Depreciation on real estate and other costs	  	 	32,448	  	 	 	17,096	  	 	 	66,960	  	 	 	50,959	  	
Cost of home sales	  	 	1,552	  	 	 	1,431	  	 	 	4,020	  	 	 	4,318	  	
Home selling expenses	  	 	356	  	 	 	456	  	 	 	1,239	  	 	 	1,388	  	
General and administrative	  	 	6,412	  	 	 	5,818	  	 	 	18,070	  	 	 	17,042	  	
Transaction costs	  	 	15,216	  	 	 	—  	  	 	 	17,333	  	 	 	—  	  	
Rent control initiatives	  	 	211	  	 	 	106	  	 	 	799	  	 	 	1,119	  	
Depreciation on corporate assets	  	 	256	  	 	 	246	  	 	 	759	  	 	 	835	  	
Interest and related amortization	  	 	26,084	  	 	 	22,465	  	 	 	68,931	  	 	 	69,221	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	160,293	  	 	 	117,202	  	 	 	383,701	  	 	 	341,870	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before equity in income of unconsolidated joint ventures	  	 	1,098	  	 	 	16,993	  	 	 	37,059	  	 	 	48,318	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity in income of unconsolidated joint ventures	  	 	257	  	 	 	314	  	 	 	1,582	  	 	 	1,714	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated income from continuing operations	  	 	1,355	  	 	 	17,307	  	 	 	38,641	  	 	 	50,032	  	
 	 	 	 	 	
Discontinued Operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from discontinued operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(231	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated net income	  	 	1,355	  	 	 	17,307	  	 	 	38,641	  	 	 	49,801	  	
 	 	 	 	 	
Loss (income) allocated to non-controlling interest – Common OP Units	  	 	289	  	 	 	(1,722	) 	 	 	(3,121	) 	 	 	(5,083	) 	
Income allocated to non-controlling interest – Perpetual Preferred OP Units	  	 	—  	  	 	 	(4,031	) 	 	 	(2,801	) 	 	 	(12,101	) 	
Series A Redeemable Perpetual Preferred Stock Dividends	  	 	(4,031	) 	 	 	—  	  	 	 	(9,319	) 	 	 	—  	  	
Series B Redeemable Preferred Stock Dividends	  	 	(466	) 	 	 	—  	  	 	 	(466	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income available for Common Shares	  	$	(2,853	) 	 	$	$11,554	  	 	$	22,934	  	 	$	32,617	  	

Net (loss) income per Common Share – Basic	  	$	(0.07	) 	 	$	0.38	  	 	$	0.67	  	 	$	1.07	  	
Net (loss) income per Common Share – Fully Diluted (1)	  	$	(0.07	) 	 	$	0.37	  	 	$	0.67	  	 	$	1.06	  	
 	 	 	 	 	
Average Common Shares – Basic	  	 	38,346	  	 	 	30,620	  	 	 	34,017	  	 	 	30,447	  	
Average Common Shares and OP Units – Basic	  	 	43,230	  	 	 	35,260	  	 	 	38,530	  	 	 	35,239	  	
Average Common Shares and OP Units – Fully Diluted	  	 	43,602	  	 	 	35,530	  	 	 	38,858	  	 	 	35,491	  	
 
(1)	As a result of the Net loss available for Common Shares for the three months ended September 30, 2011, both the Company’s Common OP Units and the Series B Preferred Stock are considered anti-dilutive, and excluded from the computation of the Net Loss Per Common Share – Fully Diluted for the three months ended September 30, 2011 only.	

Equity LifeStyle Properties, Inc.
(Unaudited)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
Reconciliation of Net (Loss) Income to FFO and FAD
(amounts in 000s, except for per share data)	  	September 30,
2011	 	 	September 30,
2010	 	 	September 30,
2011	 	 	September 30,
2010	 	
Computation of funds from operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income available for Common Shares	  	$	(2,853	) 	 	$	11,554	  	 	$	22,934	  	 	$	32,617	  	
(Loss) income allocated to common OP Units	  	 	(289	) 	 	 	1,722	  	 	 	3,121	  	 	 	5,083	  	
Series B Redeemable Preferred Stock Dividends	  	 	466	  	 	 	—  	  	 	 	466	  	 	 	—  	  	
Right-to-use contract upfront payment, deferred, net(1)	  	 	2,858	  	 	 	3,330	  	 	 	8,768	  	 	 	11,829	  	
Right-to-use contract commissions, deferred, net(2)	  	 	(1,148	) 	 	 	(1,274	) 	 	 	(3,495	) 	 	 	(4,343	) 	
Depreciation on real estate assets and other costs	  	 	32,448	  	 	 	17,096	  	 	 	66,960	  	 	 	50,959	  	
Depreciation on unconsolidated joint ventures	  	 	307	  	 	 	305	  	 	 	921	  	 	 	913	  	
Loss on discontinued operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	231	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations (FFO)	  	$	31,789	  	 	$	32,733	  	 	$	99,675	  	 	$	97,289	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-revenue producing improvements to real estate	  	 	(6,618	) 	 	 	(4,913	) 	 	 	(14,614	) 	 	 	(13,982	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds available for distribution (FAD)	  	$	25,171	  	 	$	27,820	  	 	$	85,061	  	 	$	83,307	  	

FFO per Common Share – Basic	  	$	0.74	  	 	$	0.93	  	 	$	2.59	  	 	$	2.76	  	
FFO per Common Share – Fully Diluted	  	$	0.73	  	 	$	0.92	  	 	$	2.57	  	 	$	2.74	  	
 	 	 	 	 	
FAD per Common Share – Basic	  	$	0.58	  	 	$	0.79	  	 	$	2.21	  	 	$	2.36	  	
FAD per Common Share – Fully Diluted	  	$	0.58	  	 	$	0.78	  	 	$	2.19	  	 	$	2.35	  	
 
(2)	The Company is required by GAAP to defer recognition of the non-refundable upfront payments from the entry of right-to-use contracts over the estimated customer life. The customer life is currently estimated to range from one to 31 years and is determined based upon historical attrition rates provided to the Company by Privileged Access. The amount shown represents the deferral of a substantial portion of current period contract sales, offset by the amortization of prior period sales.	
(3)	The Company is required by GAAP to defer recognition of the commission paid related to the entry of right-to-use contracts. The deferred commissions will be amortized on the same method as the related non-refundable upfront payments from the entry of right-to-use contracts. The amount shown represents the deferral of a substantial portion of current period contract commissions, offset by the amortization of prior period commissions.	

Total Common Shares and OP Units Outstanding:	  	As Of
September 30,
2011	 	  	As Of
December 31,
2010	 	
Total Common Shares Outstanding	  	 	39,240,264	  	  	 	30,972,353	  	
Total Common OP Units Outstanding	  	 	4,108,942	  	  	 	4,431,420	  	
 	 	 	
Selected Balance Sheet Data:	  	September 30,
2011
(amounts in 000s)	 	  	December 31,
2010
(amounts in 000s)	 	
Net investment in real estate	  	$	2,914,307	  	  	$	1,884,322	  	
Cash and short-term investments	  	$	212,796	  	  	$	64,925	  	
Total assets	  	$	3,292,805	  	  	$	2,048,395	  	
 	 	 	
Mortgage notes payable	  	$	1,893,298	  	  	$	1,412,919	  	
Term loan	  	$	200,000	  	  	$	—  	  	
Unsecured lines of credit(1)	  	$	—  	  	  	$	—  	  	
Total liabilities	  	$	2,308,412	  	  	$	1,588,237	  	
Perpetual Preferred OP Units	  	$	—  	  	  	$	200,000	  	
8.034% Series A Cumulative Redeemable Perpetual Preferred Stock	  	$	200,000	  	  	$	—  	  	
Series B Subordinated Non-Voting Cumulative Redeemable Preferred Stock	  	$	84,234	  	  	$	—  	  	
Total equity	  	$	700,159	  	  	$	260,158	  	
 
(1)	As of September 30, 2011, the Company has an unsecured line of credit with a borrowing capacity of $380.0 million, accrues interest at LIBOR plus 1.65% to 2.50% per annum and contains a 0.30% to 0.40% facility fee. The unsecured line of credit matures on September 18, 2015 and has an eight-month extension option.	

Equity LifeStyle Properties, Inc.
(Unaudited)
Summary of Total Sites as of September 30, 2011:

 	  	Sites	 	
 	 	
Community sites	  	 	67,200	  	
Resort sites:	  	 	 	 	
Annuals	  	 	20,800	  	
Seasonal	  	 	8,900	  	
Transient	  	 	9,700	  	
Membership(1)	  	 	24,300	  	
Joint Ventures(2)	  	 	3,100	  	
 	  	 	 	 	
 	  	 	134,000	  	

(1)	Sites primarily utilized by approximately 106,000 members.	
(2)	Joint Venture income is included in Equity in income from unconsolidated joint ventures.	

Manufactured Home Site Figures and Occupancy Averages:  (1)	  	Three Months Ended	 	 	Nine Months Ended	 	 	
 	  	September 30,
2011	 	 	September 30,
2010	 	 	September 30,
2011	 	 	September 30,
2010	 	 	
Total Sites	  	 	62,549	  	 	 	44,232	  	 	 	50,246	  	 	 	44,232	  	 	
Occupied Sites	  	 	55,442	  	 	 	39,901	  	 	 	45,167	  	 	 	39,852	  	 	
Occupancy %	  	 	88.6	% 	 	 	90.2	% 	 	 	89.9	% 	 	 	90.1	% 	 	
Monthly Base Rent Per Site	  	$	523.97	  	 	$	543.36	  	 	$	540.57	  	 	$	541.08	  	 	
Core (2)Monthly Base Rent Per Site $51	  	$	555.14	  	 	$	543.43	  	 	$	553.13	  	 	$	541.15	  	 	
 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	 	
Home Sales:(1) (Dollar amounts in thousands)	  	September 30,
2011	 	 	September 30,
2010	 	 	September 30,
2011	 	 	September 30,
2010	 	 	
New Home Sales Volume(3)	  	 	13	  	 	 	22	  	 	 	40	  	 	 	62	  	 	
New Home Sales Gross Revenues	  	$	517	  	 	$	1,030	  	 	$	1,666	  	 	$	2,112	  	 	
 	 	 	 	 	 	
Used Home Sales Volume(4)	  	 	240	  	 	 	209	  	 	 	603	  	 	 	577	  	 	
Used Home Sales Gross Revenues	  	$	1,119	  	 	$	735	  	 	$	2,615	  	 	$	2,647	  	 	
 	 	 	 	 	 	
Brokered Home Resale Volume	  	 	177	  	 	 	147	  	 	 	549	  	 	 	525	  	 	
Brokered Home Resale Revenues, net	  	$	141	  	 	$	237	  	 	$	608	  	 	$	718	  	 	
 
(1)	Results of continuing operations, excludes discontinued operations.	
(2)	The Core Portfolio may change from time-to-time depending on acquisitions, dispositions and significant transactions or unique situations. The 2011 Core Portfolio includes all Properties acquired prior to December 31, 2009 and which have been owned and operated by the Company continuously since January 1, 2010. Core growth percentages exclude the impact of GAAP deferrals of membership sales and related commission.	
(3)	The three and nine months ended September 30, 2011, included three third-party dealer sales. The three and nine months ended September 30, 2010, included four and 13 third-party dealer sales, respectively.	
(4)	The three and nine months ended September 30, 2011, included zero and one third-party dealer sales, respectively. The three and nine months ended September 30, 2010, included eight and ten third-party dealer sales, respectively.	

Equity LifeStyle Properties, Inc.
Non-GAAP Financial Measures
Funds from Operations (“FFO”), is a non-GAAP financial measure. The Company believes that FFO, as defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), is generally an appropriate 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.
The Company defines FFO as net income, computed in accordance with GAAP, excluding gains or actual or estimated losses from sales of properties, plus real estate related depreciation and amortization, 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. The Company receives 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 nonrefundable right-to-use payments, the Company believes that it is appropriate to adjust for the impact of the deferral activity in its calculation of FFO. The Company believes that FFO is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that by excluding the effect of depreciation, amortization and gains or actual or estimated 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. The Company believes that the adjustment to FFO for the net revenue deferral of upfront non-refundable payments and expense deferral of right-to-use contract commissions also facilitates the comparison to other equity REITs. Investors should review FFO, along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating the Company’s operating performance. The Company computes FFO in accordance with its interpretation of standards established by 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 the Company does. Funds available for distribution (“FAD”) is a non-GAAP financial measure. FAD is defined as FFO less non-revenue producing capital expenditures. Investors should review FFO and FAD, along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating the Company’s operating performance. FFO and FAD 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 the Company’s financial performance, or to cash flow from operating activities, determined in accordance with GAAP, as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions.

Exhibit 99.2

 
Overview
The Company
Equity LifeStyle Properties, Inc. (“ELS”, “we”, ‘us”, “our” or the “Company”) (NYSE:ELS) was formed in December 1992 as a Maryland corporation to continue the property operations, business objectives and acquisition strategies of an entity that had owned and operated properties since 1969. We have been a public company since 1993 and have elected to be taxed as a real estate investment trust, or a REIT, for U.S. federal income tax purposes commencing with our taxable year ended December 31, 1993.
We are a fully integrated owner and operator of lifestyle-oriented properties (“Properties”). We lease individual developed areas, or sites, with access to utilities for placement of factory-built homes, cottages, cabins or recreational vehicles (“RVs”). Customers may lease individual sites or enter right-to-use contracts providing the customer access to specific Properties for limited stays. As of October 17, 2011, we owned or had an ownership interest in a portfolio of 368 Properties located throughout the United States and Canada containing 136,100 residential sites. These Properties are located in 32 states and British Columbia.
This Supplemental Package was prepared to provide (1) certain operational information about the Company for the periods ended September 30, 2011 and 2010, (2) details of the Company’s guidance assumptions for 2012 and the remainder of 2011 and (3) information about the Acquisition.
On May 31, 2011, through our operating partnership, we entered into purchase agreements to acquire a portfolio of 75 manufactured home communities and one RV resort (the “Acquisition Properties”) containing 31,167 sites on approximately 6,500 acres located in 16 states and certain manufactured homes and loans secured by manufactured homes located at the Acquisition Properties for a stated purchase price of $1.43 billion (the “Acquisition”).
As of October 17, 2011, we closed on 61 Acquisition Properties and expect to close on 14 of the remaining Acquisition Properties on or before November 1, 2011. Please refer to footnote 1 on page 20 for a discussion of the status of the Clinton Acquisition Property and pages 18-20 for details on the conditions to closing on the remainder of the Acquisition. Additional details on the Acquisition can be found in the Company’s Current Reports on Form 8-K dated May 31, 2011, July 1, 2011, August 1, 2011, September 1, 2011, October 3, 2011, and October 11, 2011.
Certain statements made within this Supplemental Package may include 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 the Company’s expectations, goals or intentions regarding the future, statements regarding the anticipated closing of the Company’s pending Acquisition and the expected effect of the Acquisition on the Company. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including, but not limited to:
 
 	•	 	the Company’s ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and its success in acquiring new customers at its Properties (including those that it may acquire);	
 
 	•	 	the Company’s ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that the Company may acquire;	
 
 	•	 	the Company’s assumptions about rental and home sales markets;	
 
 	•	 	the Company’s assumptions and guidance concerning 2011 and 2012 estimated net income and funds from operations;	
 
 	•	 	in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers 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;	
 
 	•	 	the completion of the Acquisition in its entirety and future acquisitions, if any, the timing and effective integration with respect thereto and the Company’s estimates regarding the future performance of the Acquisition Properties;	
 
 	•	 	unanticipated costs or unforeseen liabilities associated with the Acquisition;	
 
 	•	 	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 sale of agreements to customers representing a right-to-use the Properties under the Codification Topic “ Revenue Recognition; ” and	
 
 	•	 	other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission.	
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. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.
 
2

 
Table of Contents

 	  	Page	 	
Select Financial Data for the three months ended September 30, 2011	  	 	4	  	
 	 	
Three and Nine Months Ended September 30, 2011 and 2010	  	 	 	 	
Consolidated Income from Property Operations	  	 	5	  	
Core Income from Property Operations	  	 	6	  	
2011 Acquisitions - Income from Property Operations	  	 	7	  	
Core Income from Rental Operations	  	 	8	  	
 	 	
2011 Guidance	  	 	 	 	
2011 Guidance – Selected Financial Data	  	 	9	  	
Fourth Quarter 2011 Guidance - Selected Financial Data	  	 	10	  	
2011 Core Guidance Assumptions	  	 	11	  	
2011 Acquisition Assumptions	  	 	12	  	
 	 	
2012 Preliminary Guidance	  	 	 	 	
2012 Preliminary Guidance - Selected Financial Data	  	 	13	  	
2012 Core Growth Assumptions	  	 	14	  	
2011 Acquisition Assumptions for 2012	  	 	15	  	
 	 	
Other	  	 	 	 	
2011 Acquisition Properties - Income from Property Operations	  	 	17	  	
2011 Acquisition Properties	  	 	18	  	
Debt Maturity Table – As Adjusted	  	 	21	  	
Non-GAAP Financial Measures	  	 	22	  	
 
3

 
Third Quarter 2011 - Selected Financial Data

(In $US Millions, except per share data, unaudited)	  	ELS	 	 	2011
Acquisitions	 	 	Consolidated
Total	 	
Income from Property Operations - 2011 Core(1)	  	$	70.6	  	 	$	—  	  	 	$	70.6	  	
Income from Property Operations - Acquisition properties (2)	  	 	—  	  	 	 	14.5	  	 	 	14.5	  	
Property Management and general and administrative	  	 	(14.5	) 	 	 	(1.1	) 	 	 	(15.6	) 	
Other Income and Expenses	  	 	6.6	  	 	 	1.0	  	 	 	7.6	  	
Financing Costs and Other	  	 	(25.0	) 	 	 	(5.1	) 	 	 	(30.1	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO), excluding transaction costs(3)	  	 	37.7	  	 	 	9.3	  	 	 	47.0	  	
2011 Acquisition Transaction Costs	  	 	—  	  	 	 	(15.2	) 	 	 	(15.2	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO)(3)	  	 	37.7	  	 	 	(5.9	) 	 	 	31.8	  	
Depreciation on Real Estate and Other	  	 	(17.6	) 	 	 	(4.4	) 	 	 	(22.0	) 	
Amortization of In-Place Leases	  	 	—  	  	 	 	(10.8	) 	 	 	(10.8	) 	
Deferral of right-to-use contract sales revenue and commission, net	  	 	(1.7	) 	 	 	—  	  	 	 	(1.7	) 	
(Income) Loss Allocated to OP Units	  	 	(1.6	) 	 	 	1.9	  	 	 	0.3	  	
(Income) Allocated to ELS Series B preferred	  	 	—  	  	 	 	(0.5	) 	 	 	(0.5	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Available to Common Shares	  	$	16.8	  	 	$	(19.7	) 	 	$	(2.9	) 	

Net Income (Loss) Per Common Share - Basic and Fully Diluted (4)	  	 	 	 	 	 	 	 	 	$	(0.07	) 	
FFO Per Share, excluding transaction costs - Fully Diluted	  	 	 	 	 	 	 	 	 	$	1.08	  	
FFO Per Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	0.73	  	
 	 	 	 	
Weighted Average Common Shares Outstanding - Basic(4)	  	 	 	 	 	 	 	 	 	 	38.3	  	
Weighted Average Shares Outstanding - Fully Diluted	  	 	 	 	 	 	 	 	 	 	43.6	  	
 
1)	See page 6 for 2011 Core income from property operations detail.	
2)	See page 7 for 2011 Acquisition income from property operations. Represents actual performance of Acquisition Properties acquired by the Company during the three months ended September 30, 2011 and excludes Acquisition Properties acquired on or after October 1, 2011. The Company’s guidance issued on July 18, 2011 for the quarter ended September 30, 2011 was approximately $15.1 million and included certain assumptions about the timing of closings on Acquisition Properties during the quarter. Certain properties scheduled to close on August 1st and September 1st were delayed and two properties scheduled to close on October 1st were accelerated to close during the third quarter.	
3)	See page 22 for definition of FFO.	
4)	As a result of the Net loss available for Common Shares, both the Company’s common OP Units and the newly issued shares of Series B Preferred Stock are considered anti-dilutive, and therefore both were excluded from the computation of the Net Loss Per Common Share – Basic and Fully Diluted.	
 
4

 
Consolidated Income from Property Operations(1)

(In $US Millions, unaudited)	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	
 	  	Three
Months
Ended
30-Sep-11	 	  	Three
Months
Ended
30-Sep-10	 	  	Nine
Months
Ended
30-Sep-11	 	  	Nine
Months
Ended
30-Sep-10	 	
Community base rental income	  	$	87.2	  	  	$	65.0	  	  	$	219.7	  	  	$	194.1	  	
Resort base rental income (2)	  	 	36.1	  	  	 	36.0	  	  	 	101.9	  	  	 	101.4	  	
Right-to-use annual payments	  	 	12.4	  	  	 	12.6	  	  	 	37.0	  	  	 	37.6	  	
Right-to-use contracts current period, gross	  	 	4.4	  	  	 	4.5	  	  	 	13.1	  	  	 	15.2	  	
Utility and other income	  	 	14.5	  	  	 	12.5	  	  	 	40.0	  	  	 	37.3	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property operating revenues	  	 	154.6	  	  	 	130.6	  	  	 	411.7	  	  	 	385.6	  	
Property operating expenses	  	 	69.7	  	  	 	62.5	  	  	 	183.2	  	  	 	176.4	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income from property operations	  	$	84.9	  	  	$	68.1	  	  	$	228.5	  	  	$	209.2	  	

1)	See October 17, 2011 ELS press release for a complete Consolidated Statement of Operations. The line items that the Company includes in property operating revenues are also individually included in our Consolidated Statement of Operations. Property operating expenses above include the captions property operating and maintenance, real estate taxes and sales and marketing, gross that each appear on our Consolidated Statement of Operations.	
2)	Resort base rental income is comprised of the following:	

 	  	Three
Months
Ended
30-Sep-11	 	  	Three
Months
Ended
30-Sep-10	 	  	Nine
Months
Ended
30-Sep-11	 	  	Nine
Months
Ended
30-Sep-10	 	
Annual	  	$	21.0	  	  	$	20.2	  	  	$	62.0	  	  	$	59.5	  	
Seasonal	  	 	2.5	  	  	 	2.4	  	  	 	16.7	  	  	 	17.4	  	
Transient	  	 	12.6	  	  	 	13.4	  	  	 	23.2	  	  	 	24.5	  	
 
5

 
Core(1) Income from Property Operations

(In $US Millions, unaudited)	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
 	  	Three
Months
Ended
30-Sep-11	 	  	Three
Months
Ended
30-Sep-10	 	  	%
Change    (2)	 	 	Nine
Months
Ended
30-Sep-11	 	  	Nine
Months
Ended
30-Sep-10	 	  	%
Change    (2)	 	
Community base rental income	  	$	66.8	  	  	$	65.0	  	  	 	2.8	% 	 	$	199.4	  	  	$	194.0	  	  	 	2.8	% 	
Resort base rental income(3)	  	 	36.0	  	  	 	35.8	  	  	 	0.4	% 	 	 	101.5	  	  	 	101.3	  	  	 	0.2	% 	
Right-to-use annual payments	  	 	12.4	  	  	 	12.6	  	  	 	-0.9	% 	 	 	37.0	  	  	 	37.6	  	  	 	-1.8	% 	
Right-to-use contracts current period, gross	  	 	4.4	  	  	 	4.6	  	  	 	-3.6	% 	 	 	13.1	  	  	 	15.2	  	  	 	-13.7	% 	
Utility and other income	  	 	12.8	  	  	 	12.4	  	  	 	2.2	% 	 	 	38.2	  	  	 	37.3	  	  	 	2.6	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Property operating revenues	  	 	132.4	  	  	 	130.4	  	  	 	1.5	% 	 	 	389.2	  	  	 	385.4	  	  	 	1.0	% 	
Property operating expenses	  	 	61.8	  	  	 	62.2	  	  	 	-0.6	% 	 	 	174.7	  	  	 	176.1	  	  	 	-0.8	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Income from property operations	  	$	70.6	  	  	$	68.2	  	  	 	3.5	% 	 	$	214.5	  	  	$	209.3	  	  	 	2.5	% 	

1)	2011 Core properties include properties we expect to own and operate during all of 2010 and 2011. Excludes property management expenses and the GAAP deferral of right to use contract upfront payments and related commissions, net.	
2)	Calculations prepared using unrounded numbers.	
3)	Resort base rental income is comprised of the following:	

 	  	Three
Months
Ended
30-Sep-11	 	  	Three
Months
Ended
30-Sep-10	 	  	%
Change    (2)	 	 	Nine
Months
Ended
30-Sep-11	 	  	Nine
Months
Ended
30-Sep-10	 	  	%
Change    (2)	 	
Annual	  	$	21.0	  	  	$	20.2	  	  	 	4.2	% 	 	$	62.0	  	  	$	59.5	  	  	 	4.3	% 	
Seasonal	  	 	2.4	  	  	 	2.3	  	  	 	3.5	% 	 	 	16.5	  	  	 	17.4	  	  	 	-5.1	% 	
Transient	  	 	12.6	  	  	 	13.3	  	  	 	-5.8	% 	 	 	23.0	  	  	 	24.4	  	  	 	-5.9	% 	
 
6

 
2011 Acquisition - Income from Property Operations(1)

(In $US Millions, unaudited)	  	 	 	
 	  	Three and Nine
Months Ended
September 30, 2011	 	
Community base rental income	  	$	20.3	  	
Utility income and other property income	  	 	1.8	  	
 	  	 	 	 	
Property operating revenues	  	 	22.1	  	
 	 	
Property operating expenses	  	 	7.6	  	
 	  	 	 	 	
Income from property operations(2)	  	$	14.5	  	

1)	Represents actual performance of Acquisition Properties acquired by the Company during the three months ended September 30, 2011. The Company acquired (i) 35 Acquisition Properties on July 1, 2011, (ii) 16 Acquisition Properties on August 1, 2011, and (iii) 7 Acquisition Properties on September 1, 2011.	
2)	Excludes property management expenses.	
 
7

 
Core Income from Rental Operations

(In $US Millions except occupied rentals, unaudited)	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three
Months
Ended
30-Sep-11	 	 	Three
Months
Ended
30-Sep-10	 	 	Nine
Months
Ended
30-Sep-11	 	 	Nine
Months
Ended
30-Sep-10	 	
Manufactured homes:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
New Home	  	$	3.3	  	 	$	2.1	  	 	$	8.8	  	 	$	5.8	  	
Used Home	  	 	4.1	  	 	 	3.0	  	 	 	11.4	  	 	 	8.5	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental operations revenues(1)	  	 	7.4	  	 	 	5.1	  	 	 	20.2	  	 	 	14.3	  	
Rental operations expense	  	 	(1.4	) 	 	 	(0.6	) 	 	 	(3.1	) 	 	 	(2.0	) 	
Depreciation	  	 	(1.0	) 	 	 	(0.7	) 	 	 	(2.8	) 	 	 	(2.0	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from rental operations	  	$	5.0	  	 	$	3.8	  	 	$	14.3	  	 	$	10.3	  	

Net basis in new manufactured home rental units as of:	  	$	71.0	  	 	$	54.5	  	 	 	 	 	 	 	 	 	
Net basis in used manufactured home rental units as of:	  	$	25.6	  	 	$	19.7	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Number of occupied rentals - new, end of period:	  	 	1,204	  	 	 	695	  	 	 	 	 	 	 	 	 	
Number of occupied rentals - used, end of period:	  	 	1,888	  	 	 	1,581	  	 	 	 	 	 	 	 	 	
 
1)	For the three and nine months ended September 30, 2011, approximately $5.6 million and $15.4 million, respectively, are included in Community base rental income in the Income from Property Operations table on pages 5 and 6. For the three and nine months ended September 30, 2010, approximately $4.0 million and $11.0 million, respectively, are included in Community base rental income in the Income from Property Operations table on pages 5 and 6. The remainder of the Income from rental operations activity is included in the caption “Ancillary services revenues, net” on our Consolidated Statement of Operations.	
 
8

 
2011 Guidance - Selected Financial Data(1)
The Company’s guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2011 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 of 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) completion of the Acquisition in its entirety and on the schedule assumed, (viii) transaction costs associated with the Acquisition, and (ix) our ability to integrate and operate the Acquisition Properties in accordance with our estimates.

(In $US Millions, except per share data, unaudited)	  	 	 	 	 	 	 	 	 	
 	  	ELS
2011
Guidance	 	 	2011
Acquisitions   (3)	 	 	Total	 	
Income from Property Operations - 2011 Core(2)	  	$	282.9	  	 	$	—  	  	 	$	282.9	  	
Income from Property Operations -2011 Acquisition properties	  	 	—  	  	 	 	37.9	  	 	 	37.9	  	
Property Management and general and administrative	  	 	(57.4	) 	 	 	(2.9	) 	 	 	(60.3	) 	
Other Income and Expenses	  	 	13.0	  	 	 	2.5	  	 	 	15.5	  	
Financing Costs and Other	  	 	(100.7	) 	 	 	(15.0	) 	 	 	(115.7	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO), excluding transaction costs(4)	  	$	137.8	  	 	$	22.5	  	 	$	160.3	  	
2011 Acquisition Transaction Costs(5)	  	 	—  	  	 	 	(22.0	) 	 	 	(22.0	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO)(4)	  	$	137.8	  	 	$	0.5	  	 	$	138.3	  	
Depreciation on Real Estate and Other	  	 	(70.3	) 	 	 	(11.8	) 	 	 	(82.1	) 	
Amortization of In-Place Leases	  	 	—  	  	 	 	(28.0	) 	 	 	(28.0	) 	
Deferral of right-to-use contract sales revenue and commission, net (6)	  	 	(7.2	) 	 	 	—  	  	 	 	(7.2	) 	
(Income) Loss allocated to Common OP Units	  	 	(5.5	) 	 	 	3.7	  	 	 	(1.8	) 	
(Income) allocated to ELS Series B preferred	  	 	—  	  	 	 	(1.1	) 	 	 	(1.1	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Available to Common Shares	  	$	54.8	  	 	$	(36.7	) 	 	$	18.1	  	

Net Income Per Common Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	0.52	  	
FFO Per Share, excluding transaction costs - Fully Diluted	  	 	 	 	 	 	 	 	 	$	3.97	  	
FFO Per Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	3.42	  	
 	 	 	 	
Weighted Average Shares Outstanding - Fully Diluted	  	 	 	 	 	 	 	 	 	 	40.4	  	
 
1)	Each line item represents the mid-point of a range of possible outcomes and reflects management’s best estimate of the most likely outcome. Actual FFO, FFO per share, Net Income and Net Income per share could vary materially from amounts presented above if any of our assumptions are incorrect. The guidance estimate reflects the historical results for the nine months ended September 30, 2011 plus an estimate for the three months ended December 31, 2011.	
2)	See page 11 for Core growth assumptions. Amount represents 2010 Core Income from property operations for the 2011 Core of $276.3 million multiplied by an estimated growth rate of 2.4%.	
3)	2011 Acquisitions guidance makes certain assumptions about the timing of the Acquisition. There can be no assurances that our estimates will reflect actual timing. See page 12 for 2011 Acquisition assumptions.	
4)	See page 22 for definition of FFO.	
5)	Amount represents the Company’s estimate of costs for the Acquisition of which $17.3 million was incurred during the nine months ended September 30, 2011. Estimate assumes the Company acquires 18 Acquisition Properties during the quarter. If the Company does not acquire the Clinton property before January 1, 2012 (see footnote 1 on page 20 for further details), transaction costs will be reduced by approximately $2.0 million. The Clinton property transaction costs include a portion of the seller’s debt defeasance costs.	
6)	Due to the uncertain timing and extent of right to use upfront payments and the resulting deferrals, actual income could differ materially from expected net income.	
 
9

 
Fourth Quarter 2011 Guidance - Selected Financial Data(1)
The Company’s guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2011 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 of 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) completion of the Acquisition in its entirety and on the schedule assumed, (viii) transaction costs associated with the Acquisition, and (ix) our ability to integrate and operate the Acquisition Properties in accordance with our estimates.

(In $US Millions, except per share data, unaudited)	  	ELS
Fourth
Quarter
2011	 	 	2011
Acquisitions   (3)	 	 	Total	 	
Income from Property Operations - 2011 Core(2)	  	$	68.4	  	 	$	—  	  	 	$	68.4	  	
Income from Property Operations - Acquisition properties	  	 	—  	  	 	 	23.4	  	 	 	23.4	  	
Property Management and general and administrative	  	 	(14.5	) 	 	 	(1.8	) 	 	 	(16.3	) 	
Other Income and Expenses	  	 	1.0	  	 	 	1.5	  	 	 	2.5	  	
Financing Costs and Other	  	 	(24.7	) 	 	 	(10.0	) 	 	 	(34.7	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO), excluding transaction costs(4)	  	$	30.2	  	 	$	13.1	  	 	$	43.3	  	
2011 Acquisition Transaction Costs(5)	  	 	—  	  	 	 	(4.7	) 	 	 	(4.7	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO)(4)	  	$	30.2	  	 	$	8.4	  	 	$	38.6	  	
Depreciation on Real Estate and Other	  	 	(17.6	) 	 	 	(7.4	) 	 	 	(25.0	) 	
Amortization of In-Place Leases	  	 	—  	  	 	 	(17.3	) 	 	 	(17.3	) 	
Deferral of right-to-use contract sales revenue and commission, net (6)	  	 	(1.8	) 	 	 	—  	  	 	 	(1.8	) 	
(Income) Allocated to OP Units	  	 	(1.0	) 	 	 	1.6	  	 	 	0.6	  	
(Income) Allocated to ELS Series B preferred	  	 	—  	  	 	 	(0.7	) 	 	 	(0.7	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Available to Common Shares(5)	  	$	9.8	  	 	$	(15.4	) 	 	$	(5.6	) 	

Net Income (Loss) Per Common Share - Basic and Fully Diluted (7)	  	 	 	 	 	 	 	 	 	$	(0.14	) 	
FFO Per Share, excluding transaction costs - Fully Diluted	  	 	 	 	 	 	 	 	 	$	0.96	  	
FFO Per Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	0.85	  	
 	 	 	 	
Weighted Average Common Shares Outstanding - Basic(7)	  	 	 	 	 	 	 	 	 	 	39.1	  	
Weighted Average Shares Outstanding - Fully Diluted	  	 	 	 	 	 	 	 	 	 	45.3	  	
 
1)	Each line item represents the mid-point of a range of possible outcomes and reflects management’s best estimate of the most likely outcome. Actual FFO, FFO per share, Net Income and Net Income per share could vary materially from amounts presented above if any of our assumptions are incorrect.	
2)	See page 11 for Core growth assumptions. Amount represents Core Income from property operations for the 2011 Core of $67.0 million multiplied by an estimated growth rate of 2.1%.	
3)	2011 Acquisitions guidance makes certain assumptions about the timing of the Acquisition. There can be no assurances that our estimates will reflect actual timing. See page 12 for 2011 Acquisition assumptions.	
4)	See page 22 for definition of FFO.	
5)	Amount represents the Company’s estimate of costs for the Acquisition to be incurred during the fourth quarter of 2011. Estimate assumes the Company acquires 18 Acquisition Properties during the quarter. If the Company does not acquire Clinton before January 1, 2012 (see footnote 1 on page 20 for further details), transaction costs will be reduced by approximately $2 million. Clinton transaction costs include a portion of the seller’s debt defeasance costs.	
6)	Due to the uncertain timing and extent of right to use upfront payments and the resulting deferrals, actual income could differ materially from expected net income.	
7)	As a result of the estimated Net loss available for Common Shares, both the Company’s common OP Units and the newly issued shares of Series B Preferred Stock are considered anti-dilutive, and therefore both were excluded from the computation of the Net Loss Per Common Share – Basic and Fully Diluted.	
 
10

 
2011 Core(1) Guidance Assumptions - Income from Property Operations

(In $US Millions, unaudited)	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
 	  	Year
ended
12/31/2010	 	 	2011
Growth
Factors   (2)	 	 	Quarter
ended
12/31/2010	 	 	4Q 2011
Growth
Factors  (2)	 	
Community Base Rental Income	  	$	259.3	  	 	 	2.8	% 	 	$	65.3	  	 	 	2.7	% 	
Resort Base Rental Income(3)	  	 	129.2	  	 	 	0.4	% 	 	 	27.9	  	 	 	0.9	% 	
Right to Use Annual Payments	  	 	49.8	  	 	 	-1.4	% 	 	 	12.2	  	 	 	-0.3	% 	
Right to Use Contracts	  	 	19.5	  	 	 	-9.7	% 	 	 	4.3	  	 	 	4.2	% 	
Utility and Other Income	  	 	48.3	  	 	 	2.1	% 	 	 	11.0	  	 	 	0.7	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property Operating Revenues	  	 	506.1	  	 	 	1.2	% 	 	 	120.7	  	 	 	1.9	% 	
Property Operating Expenses	  	 	(229.8	) 	 	 	-0.2	% 	 	 	(53.7	) 	 	 	1.6	% 	

Income from Property Operations	  	$	276.3	  	 	 	2.4	% 	 	$	67.0	  	 	 	2.1	% 	

1)	2011 Core properties include properties we expect to own and operate during all of 2010 and 2011. Excludes property management expenses and the GAAP deferral of right to use contract upfront payments and related commissions, net.	
2)	Management’s estimate of the growth of the 2011 Core in 2011 compared to actual 2010 performance. Represents the mid-point of a range of possible outcomes. Calculations prepared using unrounded numbers.	
3)	Resort base rental income is comprised of the following:	

 	  	Year
ended
12/31/2010	 	  	2011
Growth
Factors   (2)	 	 	Quarter
ended
12/31/2010	 	  	4Q 2011
Growth
Factors  (2)	 	
Annual	  	$	79.8	  	  	 	4.1	% 	 	$	20.4	  	  	 	3.7	% 	
Seasonal	  	 	21.6	  	  	 	-5.0	% 	 	 	4.1	  	  	 	-4.8	% 	
Transient	  	 	27.8	  	  	 	-6.2	% 	 	 	3.4	  	  	 	-8.8	% 	
 
11

 
2011 Acquisition Assumptions(1)

(In $US Millions, unaudited)	  	 	 	 	 	 	
 	 	 	
 	  	Year ended
December 31,
2011	 	 	Quarter
ended
December 31,
2011	 	
Community base rental income	  	$	52.3	  	 	$	32.0	  	
Resort base rental income	  	 	0.2	  	 	 	0.2	  	
Utility income and other property income	  	 	4.6	  	 	 	2.8	  	
 	  	 	 	 	 	 	 	 	
Property operating revenues	  	 	57.1	  	 	 	35.0	  	
 	 	 	
Property operating expenses	  	 	(19.2	) 	 	 	(11.6	) 	
 	  	 	 	 	 	 	 	 	
Income from property operations(2)	  	$	37.9	  	 	$	23.4	  	

Property management and general and administrative	  	 	(2.9	) 	 	 	(1.8	) 	
Other income and expenses(3)	  	 	2.5	  	 	 	1.5	  	
Financing costs and other	  	 	(15.0	) 	 	 	(10.0	) 	
Depreciation of real estate and other	  	 	(11.8	) 	 	 	(7.4	) 	
Amortization of in-place leases	  	 	(28.0	) 	 	 	(17.3	) 	
 
1)	Each line item represents our estimate of the mid-point of a possible range of outcomes. Guidance also makes certain assumptions about the timing of the Acquisition and mortgage debt assumption approvals. There can be no assurances that our estimates will be reflected in actual results. The guidance estimate for the year ended December 31, 2011 reflects the historical results for the nine months ended September 30, 2011 plus an estimate for the three months ended December 31, 2011.	
2)	Estimates were based on 2011 budgets provided to us by the seller and exclude property management expenses. Seller’s budgets may not be reflective of the Company’s accounting policies, which may impact the timing and amount of actual income from property operations as compared to seller’s budgets. Estimated 2011 income from property operations includes 61 Acquisition Properties acquired on or before October 17, 2011 and 14 Acquisition Properties that we expect to acquire during the fourth quarter of 2011. One Acquisition Property, Clinton, as discussed in footnote 1 on page 20 is excluded from 2011 guidance.	
3)	See footnote 4 on page 16 for discussion of the interest income on recently purchased chattel notes receivable.	
 
12

 
2012 Preliminary Guidance - Selected Financial Data(1)
The Company’s guidance acknowledges the existence of volatile economic conditions, which may impact our current guidance assumptions. Factors impacting 2012 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 of 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) completion of the Acquisition in its entirety and on the schedule assumed, and (viii) our ability to integrate and operate the Acquisition Properties in accordance with our estimates.

(In $US Millions, except per share data, unaudited)	  	 	 	 	 	 	 	 	 	
 	 	 	 	
 	  	2012
Core	 	 	2011
Acquisitions   (3)	 	 	Total (1)	 	
Income from Property Operations - 2012 Core(2)	  	$	288.4	  	 	$	—  	  	 	$	288.4	  	
Income from Property Operations - 2011 Acquisition properties	  	 	—  	  	 	 	101.3	  	 	 	101.3	  	
Property Management and general and administrative	  	 	(58.3	) 	 	 	(7.1	) 	 	 	(65.4	) 	
Other Income and Expenses	  	 	10.8	  	 	 	6.9	  	 	 	17.7	  	
Financing Costs and Other	  	 	(98.9	) 	 	 	(42.2	) 	 	 	(141.1	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations (FFO)(4)	  	$	142.0	  	 	$	58.9	  	 	$	200.9	  	
Depreciation on Real Estate and Other	  	 	(70.3	) 	 	 	(31.7	) 	 	 	(102.0	) 	
Amortization of In-Place Leases	  	 	—  	  	 	 	(48.0	) 	 	 	(48.0	) 	
Deferral of right-to-use contract sales revenue and commission, net (5)	  	 	(7.3	) 	 	 	—  	  	 	 	(7.3	) 	
(Income) Loss Allocated to OP Units	  	 	(5.9	) 	 	 	2.2	  	 	 	(3.7	) 	
(Income) Allocated to ELS Series B preferred	  	 	—  	  	 	 	(3.0	) 	 	 	(3.0	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Available to Common Shares	  	$	58.5	  	 	$	(21.6	) 	 	$	36.9	  	

Net Income (Loss) Per Common Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	0.89	  	
FFO Per Share - Fully Diluted	  	 	 	 	 	 	 	 	 	$	4.42	  	
 	 	 	 	
Weighted Average Shares Outstanding - Fully Diluted	  	 	 	 	 	 	 	 	 	 	45.4	  	
 
1)	Each line item represents the mid-point of a range of possible outcomes and reflects management’s best estimate of the most likely outcome. Actual FFO, FFO per share, Net Income and Net Income per share could vary materially from amounts presented above if any of our assumptions are incorrect.	
2)	See page 14 for 2012 Core growth assumptions. Amount represents estimated 2012 Core income from property operations in 2011 of $282.4 million multiplied by an estimated growth rate of 2.2%.	
3)	2011 Acquisitions guidance makes certain assumptions about the timing of the Acquisition. There can be no assurances that our estimates will reflect actual timing. See page 15 for 2011 Acquisition assumptions.	
4)	See page 22 for definition of FFO.	
5)	Due to the uncertain timing and extent of right to use upfront payments and the resulting deferrals, actual income could differ materially from expected net income.	
 
13

 
2012 Core(1) Growth Assumptions - Income from Property Operations

(In $US Millions, unaudited)	  	 	 	 	 	 	
 	 	 	
 	  	Estimated
2011	 	 	2012
Growth
Factors  (2)	 	
Community Base Rental Income	  	$	266.4	  	 	 	2.3	% 	
Resort Base Rental Income(3)	  	 	130.2	  	 	 	2.3	% 	
Right to Use Annual Payments	  	 	49.1	  	 	 	0.0	% 	
Right to Use Contracts	  	 	17.6	  	 	 	2.3	% 	
Utility and Other Income	  	 	49.5	  	 	 	1.9	% 	
 	  	 	 	 	 	 	 	 	
Property Operating Revenues	  	 	512.8	  	 	 	2.1	% 	
Property Operating Expenses	  	 	(230.4	) 	 	 	1.9	% 	

Income from Property Operations	  	$	282.4	  	 	 	2.2	% 	

1)	2012 Core properties include properties we expect to own and operate during all of 2011 and 2012. Excludes property management expenses and the GAAP deferral of right to use contract upfront payments and related commissions, net. The 2011 estimate reflects the historical results for the 2012 Core for the nine months ended September 30, 2011 plus an estimate for the three months ended December 31, 2011.	
2)	Management’s estimate of the growth of the 2012 Core in 2012 compared to estimated 2011 performance. Represents the mid-point of a range of possible outcomes and was calculated using unrounded numbers.	
3)	Resort base rental income is comprised of the following:	

 	  	Estimated
2011	 	  	2012
Growth
Factors  (2)	 	
 	 	 	
Annual	  	$	83.2	  	  	 	3.6	% 	
Seasonal	  	 	20.6	  	  	 	-0.3	% 	
Transient	  	 	26.4	  	  	 	0.1	% 	
 
14

 
2011 Acquisition Assumptions for 2012(1)

(In $US Millions)	  	 	 	
 	 	
 	  	2012	 	
Community base rental income	  	$	141.8	  	
Resort base rental income	  	 	0.7	  	
Utility income and other property income	  	 	13.1	  	
 	  	 	 	 	
Property operating revenues	  	 	155.6	  	
 	 	
Property operating expenses	  	 	(54.3	) 	
 	  	 	 	 	
Income from property operations	  	$	101.3	  	

Property management and general and administrative	  	 	(7.1	) 	
Other income and expenses(2)	  	 	6.9	  	
Financing costs and other	  	 	(42.2	) 	
Depreciation of real estate and other	  	 	(31.7	) 	
Amortization of in-place leases	  	 	(48.0	) 	
 
1)	Each line item represents our estimate of the mid-point of a possible range of outcomes. 2012 guidance assumes the Acquisition is complete on or before January 1, 2012.	
Footnotes continued on page 16.
 
15

 
2012 Acquisition Assumptions Footnotes (cont.)
 
2)	Includes interest income of approximately $6.5 million for the year ended December 31, 2012 from Notes Receivable acquired from the seller. The Notes Receivable are secured by manufactured homes located at the Acquisition Properties. As of September 30, 2011 the Company’s carrying value of the Notes Receivable was approximately $29 million and the face amount was approximately $80 million. The Company’s carrying value is based on a third party valuation utilizing recent market transactions. Factors used in determining the carrying value included delinquency status, market interest rates and recovery assumptions. The Company expects to acquire an additional $12 million of Notes Receivable on or before January 1, 2012.	

Summary of loans to be acquired in the Acquisition	  	 	 	
Contractual cash flows to maturity	  	$	214.3	  	
Expected cash flows to maturity	  	 	99.5	  	
Face value of loans	  	 	114.7	  	
Carrying value of loans (purchase price)	  	 	42.6	  	
Expected interest income over life of loans	  	 	56.9	  	
The amounts expected to be acquired are subject to change based on closing dates of the Acquisition Properties and subsequent performance on the Notes Receivable. An increase in the estimate of expected cash flows would generally result in additional interest income to be recognized over the remaining life of the underlying pool of loans. A decrease in the estimate of expected cash flows could result in an impairment loss to the carrying value of the loans. The following summarizes our assumptions with respect to the preliminary interest income guidance for 2012.

Assumptions	  	 	 	
Defaults per year, for eight years	  	 	10	% 	
Recoveries as percentage of defaults	  	 	25	% 	
Expected yield	  	 	17	% 	

Preliminary Guidance Estimates	  	2012	 	
Average carrying amount of loans	  	$	37.9	  	
Contractual principal pay downs	  	 	3.9	  	
Contractual interest income	  	 	8.5	  	
Expected cash flows applied to principal	  	 	4.7	  	
Expected cash flows applied to interest income	  	 	6.5	  	
 
16

 
2011 Acquisition Properties - Income from Property Operations(1)

(In $US Millions, unaudited)	  	Three Months
Ended
Sep. 30, 2011	 	  	Three Months
Ended
Sep. 30, 2010	 	  	Nine Months
Ended
Sep. 30, 2011	 	  	Nine Months
Ended
Sep. 30, 2010	 	
Rental income	  	$	34.1	  	  	$	33.6	  	  	$	102.2	  	  	$	101.4	  	
Utility income and other property income	  	 	3.1	  	  	 	3.1	  	  	 	9.4	  	  	 	9.2	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total property operating revenues - Acquisition Core	  	 	37.2	  	  	 	36.7	  	  	 	111.6	  	  	 	110.6	  	
 	 	 	 	 	
Total property operating expenses - Acquisition Core	  	 	12.0	  	  	 	12.2	  	  	 	36.3	  	  	 	36.2	  	

Income from property operations - Acquisition Core(2)	  	 	25.2	  	  	 	24.5	  	  	 	75.3	  	  	 	74.4	  	
Income from property operations - Acquisition Non-Core(3)	  	 	0.5	  	  	 	0.0	  	  	 	1.2	  	  	 	0.0	  	

Income from property operations - Total	  	$	25.7	  	  	$	24.5	  	  	$	76.5	  	  	$	74.4	  	

1)	Table above includes amounts for all 76 Acquisition Properties. Amounts were provided by both the Company and the seller of the Acquisition Properties and excludes property management expense. Income from property operations after the Company acquired the Acquisition Properties were provided by the Company. Income from property operations includes amounts provided by the seller i) for each period presented in 2010, ii) for Acquisition Properties not owned by the Company at any time during the three months ended September 30, 2011 and iii) from July 1 st  through the Company’s acquisition date for Acquisition Properties acquired by the Company during the quarter ended September 30, 2011. Actual results of the Acquisition Properties reported by the seller may not be representative of the performance of the Acquisition Properties once acquired by the Company.	
2)	Acquisition Core includes 73 Acquisition Properties that were owned during both periods presented.	
3)	Acquisition Non-Core includes two Acquisition Properties acquired by the seller in January 2011 and one Acquisition Property acquired by the seller in May 2011.	
 
17

 
2011 Acquisition Properties
The following table sets forth certain information relating to the 76 Acquisition Properties. The table is categorized according to major markets and was provided to the Company by the seller. The accompanying footnotes are an integral part of the table.

Property	  	Address	  	City	  	State	  	ZIP	 	  	Acres	 	  	Sites	 	  	Closing
Schedule (3)	
Florida	  	 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Audubon	  	6565 Beggs Road	  	Orlando	  	FL	  	 	32810	  	  	 	40	  	  	 	280	  	  	September 1	
Beacon Hill Colony	  	1112 W. Beacon Road	  	Lakeland	  	FL	  	 	33803	  	  	 	31	  	  	 	201	  	  	November 1 (4)	
Beacon Terrace	  	2425 Harden Blvd.	  	Lakeland	  	FL	  	 	33803	  	  	 	55	  	  	 	297	  	  	August 1	
Carefree Village	  	8000 Sheldon Road	  	Tampa	  	FL	  	 	33615	  	  	 	58	  	  	 	406	  	  	July 1	
Cheron Village	  	13222 SW 9th Court	  	Davie	  	FL	  	 	33325	  	  	 	30	  	  	 	202	  	  	July 1	
Clover Leaf Farms	  	900 N. Broad Street	  	Brooksville	  	FL	  	 	34601	  	  	 	227	  	  	 	780	  	  	November 1 (4)	
Clover Leaf Forest(2)	  	900 N. Broad Street	  	Brooksville	  	FL	  	 	34601	  	  	 	30	  	  	 	277	  	  	November 1 (4)	
Colony Cove	  	101 Amsterdam Ave	  	Ellenton	  	FL	  	 	34222	  	  	 	531	  	  	 	2,211	  	  	August 1	
Covington Estates	  	3400 Glenwick Ct.	  	Saint Cloud	  	FL	  	 	34772	  	  	 	59	  	  	 	241	  	  	July 1	
Crystal Lakes-Zephyrhills	  	4604 Lake Crystal Blvd.	  	Zephyrhills	  	FL	  	 	33541	  	  	 	146	  	  	 	318	  	  	July 1	
Emerald Lake	  	24300 Airport Road	  	Punta Gorda	  	FL	  	 	33950	  	  	 	34	  	  	 	201	  	  	August 1	
Featherock	  	2200 Highway 60 East	  	Valrico	  	FL	  	 	33594	  	  	 	84	  	  	 	521	  	  	October 11	
Foxwood	  	4705 NW 20th Street	  	Ocala	  	FL	  	 	34482	  	  	 	56	  	  	 	375	  	  	July 1	
Haselton Village	  	14 Coral Street	  	Eustis	  	FL	  	 	32726	  	  	 	52	  	  	 	292	  	  	September 1	
Heron Cay	  	1400 90th Avenue	  	Vero Beach	  	FL	  	 	32966	  	  	 	130	  	  	 	597	  	  	September 1	
Hidden Valley	  	8950 Polynesian Lane	  	Orlando	  	FL	  	 	32836	  	  	 	50	  	  	 	303	  	  	July 1	
Kings & Queens	  	2808 N. Florida Avenue	  	Lakeland	  	FL	  	 	33805	  	  	 	18	  	  	 	107	  	  	July 1	
Lake Village	  	400 Lake Drive	  	Nokomis	  	FL	  	 	34275	  	  	 	65	  	  	 	391	  	  	October 3	
Lake Worth Village	  	4041 Roberts Way #3	  	Lake Worth	  	FL	  	 	33463	  	  	 	117	  	  	 	826	  	  	November 1 (4)	
Lakeland Harbor	  	4747 North Road 33	  	Lakeland	  	FL	  	 	33805	  	  	 	65	  	  	 	504	  	  	August 1	
Lakeland Junction	  	202 E. Griffin Road	  	Lakeland	  	FL	  	 	33805	  	  	 	23	  	  	 	193	  	  	July 1	
Lakeside Terrace	  	24 Sunrise Lane	  	Fruitland Park	  	FL	  	 	34731	  	  	 	39	  	  	 	241	  	  	July 1	
Orange Lake	  	15840-32 SR 50	  	Clermont	  	FL	  	 	34711	  	  	 	38	  	  	 	242	  	  	July 1	
Palm Beach Colony	  	2000 N. Congress Avenue	  	West Palm Beach	  	FL	  	 	33409	  	  	 	48	  	  	 	285	  	  	August 1	
Parkwood Communities	  	414 Springlake Road	  	Wildwood	  	FL	  	 	34785	  	  	 	121	  	  	 	695	  	  	July 1	
Ridgewood Estates	  	101 Amsterdam Ave	  	Ellenton	  	FL	  	 	34222	  	  	 	77	  	  	 	381	  	  	November 1 (4)	
Shady Oaks	  	15777 Bolesta Road	  	Clearwater	  	FL	  	 	33760	  	  	 	31	  	  	 	250	  	  	July 1	
Shady Village	  	15777 Bolesta Road	  	Clearwater	  	FL	  	 	33760	  	  	 	19	  	  	 	156	  	  	July 1	
Starlight Ranch	  	6000 East Pershing Ave	  	Orlando	  	FL	  	 	32822	  	  	 	130	  	  	 	783	  	  	July 1	
Tarpon Glen	  	1038 Sparrow Lane	  	Tarpon Springs	  	FL	  	 	34689	  	  	 	24	  	  	 	170	  	  	July 1	
Vero Palm	  	1400 90th Avenue	  	Vero Beach	  	FL	  	 	32966	  	  	 	64	  	  	 	285	  	  	September 1 (4)	
Village Green	  	7300 20th Street	  	Vero Beach	  	FL	  	 	32966	  	  	 	174	  	  	 	781	  	  	August 1	
Whispering Pines - Largo	  	7501 142nd Ave North	  	Largo	  	FL	  	 	33771	  	  	 	55	  	  	 	392	  	  	November 1 (4)	
Florida Total	  	 	  	 	  	 	  	 	 	 	  	 	2,719	  	  	 	14,184	  	  	 	
See page 20 for footnotes to this table.
 
18

 
2011 Acquisition Properties (continued)

Property	  	Address	  	City	  	State	 	  	ZIP	 	  	Acres	 	  	Sites	 	  	Closing
Schedule (3)	
Northeast	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Stonegate Manor	  	1 Stonegate Drive	  	North Windham	  	 	CT	  	  	 	06256	  	  	 	114	  	  	 	372	  	  	July 1	
The Glen	  	31 Leisurewoods	  	Norwell	  	 	MA	  	  	 	02370	  	  	 	24	  	  	 	36	  	  	August 1	
Hillcrest	  	31 Leisurewoods	  	Rockland	  	 	MA	  	  	 	02370	  	  	 	19	  	  	 	83	  	  	August 1	
Fernwood	  	1901 Fernwood Drive	  	Capitol Heights	  	 	MD	  	  	 	20743	  	  	 	40	  	  	 	329	  	  	November 1 (4)	
Williams Estates and Peppermint Woods	  	3300 Eastern Blvd	  	Middle River	  	 	MD	  	  	 	21200	  	  	 	121	  	  	 	804	  	  	August 1	
Pine Ridge at Crestwood	  	2 Fox Street	  	Whiting	  	 	NJ	  	  	 	08759	  	  	 	188	  	  	 	1,035	  	  	September 1	
The Woodlands	  	6237 South Transit	  	Lockport	  	 	NY	  	  	 	14094	  	  	 	225	  	  	 	1,183	  	  	October 3	
Greenbriar Village	  	63A Greenbriar Drive	  	Bath	  	 	PA	  	  	 	18014	  	  	 	63	  	  	 	319	  	  	November 1 (4)	
Lil Wolf	  	3411 Li’l Wolf Drive	  	Orefield	  	 	PA	  	  	 	18069	  	  	 	56	  	  	 	271	  	  	November 1 (4)	
Mountain View - PA	  	4 East Zimmer Drive	  	Walnutport	  	 	PA	  	  	 	18088	  	  	 	45	  	  	 	189	  	  	August 1	
Regency Lakes	  	216 Regency Lakes Drive	  	Winchester	  	 	VA	  	  	 	22603	  	  	 	165	  	  	 	523	  	  	July 1	
Northeast Total	  	 	  	 	  	 	 	 	  	 	 	 	  	 	1,060	  	  	 	5,144	  	  	 	
West	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Apache East	  	3500 S. Tomahawk	  	Apache Junction	  	 	AZ	  	  	 	85219	  	  	 	17	  	  	 	123	  	  	July 1	
Denali Park	  	3405 S. Tomahawk	  	Apache Junction	  	 	AZ	  	  	 	85219	  	  	 	33	  	  	 	162	  	  	July 1	
Sunshine Valley	  	1650 S. Arizona Avenue	  	Chandler	  	 	AZ	  	  	 	85286	  	  	 	55	  	  	 	380	  	  	September 1	
Westpark	  	2501 W Wickenburg Way	  	Wickenburg	  	 	AZ	  	  	 	85390	  	  	 	48	  	  	 	188	  	  	July 1	
Los Ranchos	  	20843 Waalew Road	  	Apple Valley	  	 	CA	  	  	 	92307	  	  	 	30	  	  	 	389	  	  	November 1 (4)	
Mountain View - NV	  	148 Day Street	  	Henderson	  	 	NV	  	  	 	89074	  	  	 	67	  	  	 	352	  	  	August 1	
West Total	  	 	  	 	  	 	 	 	  	 	 	 	  	 	250	  	  	 	1,594	  	  	 	
Other Midwest / ID	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Coach Royale	  	8597 W. Irving Lane	  	Boise	  	 	ID	  	  	 	83704	  	  	 	12	  	  	 	91	  	  	July 1	
Maple Grove	  	8597 W. Irving Lane	  	Boise	  	 	ID	  	  	 	83704	  	  	 	38	  	  	 	270	  	  	July 1	
Shenandoah Estates	  	5603 Bullrun Lane	  	Boise	  	 	ID	  	  	 	08081	  	  	 	24	  	  	 	154	  	  	November 1 (4)	
West Meadow Estates	  	120 West Driftwood	  	Boise	  	 	ID	  	  	 	83713	  	  	 	29	  	  	 	179	  	  	November 1 (4)	
Hoosier Estates	  	830 Campbell Street	  	Lebanon	  	 	IN	  	  	 	46052	  	  	 	60	  	  	 	288	  	  	November 1 (4)	
North Glen Village	  	18200 US 31 N #292	  	Westfield	  	 	IN	  	  	 	46074	  	  	 	88	  	  	 	289	  	  	November 1 (4)	
Rockford Riverview Estates	  	135 Highview Road	  	Rockford	  	 	MN	  	  	 	55373	  	  	 	88	  	  	 	428	  	  	August 1	
Rosemount Woods	  	13925 Bunratty Ave	  	Rosemount	  	 	MN	  	  	 	55068	  	  	 	50	  	  	 	182	  	  	July 1	
Cedar Knolls	  	12571 Garland Ave	  	Apple Valley	  	 	MN	  	  	 	55124	  	  	 	93	  	  	 	458	  	  	August 1	
Cimarron Park	  	901 Lake Elmo Ave N	  	Lake Elmo	  	 	MN	  	  	 	55042	  	  	 	230	  	  	 	505	  	  	August 1	
Buena Vista	  	4301 El Tora Boulevard	  	Fargo	  	 	ND	  	  	 	58103	  	  	 	76	  	  	 	400	  	  	August 1	
Meadow Park	  	3220 12th Ave North	  	Fargo	  	 	ND	  	  	 	58102	  	  	 	17	  	  	 	117	  	  	September 1	
Other Midwest / ID Total	  	 	  	 	  	 	 	 	  	 	 	 	  	 	804	  	  	 	3,361	  	  	 	
Michigan	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Avon	  	2889 Sandpiper	  	Rochester Hills	  	 	MI	  	  	 	48309	  	  	 	83	  	  	 	617	  	  	July 1	
Chesterfield	  	49900 Fairchild Road	  	Chesterfield	  	 	MI	  	  	 	48051	  	  	 	78	  	  	 	345	  	  	July 1	
Clinton	  	38129 Deacroix	  	Clinton Township	  	 	MI	  	  	 	48038	  	  	 	161	  	  	 	1,000	  	  	                     (1)	
Cranberry Lake	  	9620 Highland Road	  	White Lake	  	 	MI	  	  	 	48386	  	  	 	54	  	  	 	328	  	  	July 1	
Ferrand Estates	  	2680 44th Street	  	Wyoming	  	 	MI	  	  	 	49519	  	  	 	80	  	  	 	420	  	  	September 1	
Grand Blanc	  	8225 Embury Road	  	Grand Blanc	  	 	MI	  	  	 	48439	  	  	 	221	  	  	 	478	  	  	July 1	
Holly Hills	  	16181 Lancaster Way	  	Holly	  	 	MI	  	  	 	48442	  	  	 	198	  	  	 	242	  	  	July 1	
Lake in the Hills	  	2700 Shimmons Road	  	Auburn Hills	  	 	MI	  	  	 	48326	  	  	 	51	  	  	 	238	  	  	July 1	
Macomb	  	45301 Chateau Thierry Blvd.	  	Macomb	  	 	MI	  	  	 	48044	  	  	 	400	  	  	 	1,426	  	  	July 1	
Novi	  	41875 Carousel Street	  	Novi	  	 	MI	  	  	 	48377	  	  	 	118	  	  	 	725	  	  	July 1	
Old Orchard	  	10500 Lapeer Road	  	Davison	  	 	MI	  	  	 	48423	  	  	 	41	  	  	 	200	  	  	July 1	
Royal Estates	  	8300 Ravine Road	  	Kalamazoo	  	 	MI	  	  	 	49009	  	  	 	63	  	  	 	183	  	  	July 1	
Swan Creek	  	6988 McKean	  	Ypsilanti	  	 	MI	  	  	 	48197	  	  	 	59	  	  	 	294	  	  	July 1	
Westbrook	  	45013 Catalpa	  	Macomb	  	 	MI	  	  	 	48044	  	  	 	79	  	  	 	388	  	  	July 1	
Michigan Total	  	 	  	 	  	 	MI Total	  	  	 	 	 	  	 	1,686	  	  	 	6,884	  	  	 	
Grand Total	  	 	  	 	  	 	 	 	  	 	 	 	  	 	6,519	  	  	 	31,167	  	  	 	
See page 20 for footnotes to this table.
 
19

 
2011 Acquisition Properties Footnotes
 
1)	The terms of the purchase agreement for the Acquisition provided for a July 1, 2011 closing for this property. As a result of underwriting issues related to this property, the parties agreed that the Company’s acquisition of the property would be deemed terminated but also agreed that the Company may reinstate the acquisition at any time on or before December 31, 2011. The Company is continuing to perform due diligence on the property. All 2012 guidance estimates assume that the Company will acquire this property on or before January 1, 2012. The guidance for transaction costs in the fourth quarter of 2011 assumes the Company will acquire the property on or before December 31, 2011, but any contribution from the operations of the property is excluded from 2011 guidance. There can be no assurance that the Company will acquire this property.	
2)	This property is a resort property with 146 annual sites.	
3)	In addition to the debt–related assumptions issues highlighted in footnote 4, all future closings are subject to customary closing conditions and due diligence.	
4)	Closing subject to completing loan assumption. Lender has acknowledged request for assumption approval, however lender due diligence and underwriting are not complete.	
 
20

 
Debt Maturity Table – As Adjusted(1)

(In $US Millions, unaudited)	  	 	 	
 	 	
Year	  	Amount	 	
2012	  	$	35	  	
2013	  	 	118	  	
2014	  	 	201	  	
2015	  	 	600	  	
2016	  	 	232	  	
2017	  	 	293	  	
2018	  	 	209	  	
2019	  	 	218	  	
2020	  	 	140	  	
2021+	  	 	210	  	

 	  	$	2,256	  	
 
1)	Represents the Company’s mortgage notes payable excluding net note premiums, and the Company’s $200 million term loan as of September 30, 2011 and is adjusted for the acquisition of each of the remaining 18 Acquisition Properties as if they were acquired on September 30, 2011.	
 
21

 
Non–GAAP Financial Measures
Funds from Operations (“FFO”) - a non-GAAP financial measure. The Company believes that FFO, as defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), is generally an appropriate 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.
The Company defines FFO as net income, computed in accordance with GAAP, excluding gains or actual or estimated losses from sales of properties, plus real estate related depreciation and amortization, 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. The Company receives 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 nonrefundable right-to-use payments, the Company believes that it is appropriate to adjust for the impact of the deferral activity in its calculation of FFO. The Company believes that FFO is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that by excluding the effect of depreciation, amortization and gains or actual or estimated 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. The Company believes that the adjustment to FFO for the net revenue deferral of upfront non-refundable payments and expense deferral of right-to-use contract commissions also facilitates the comparison to other equity REITs. Investors should review FFO, along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating the Company’s operating performance. The Company computes FFO in accordance with its interpretation of standards established by 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 the Company does. Investors should review FFO, along with GAAP net income and cash flow from operating activities, investing activities and financing activities, when evaluating the Company’s operating performance. FFO 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 the Company’s financial performance, or to cash flow from operating activities, determined in accordance with GAAP, as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions.
 
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