ELS Stories Fourth Quarter Outcomes

Continued Sturdy Efficiency;

Gives 2023 Steerage and Will increase Annual Dividend

Fairness LifeStyle Properties, Inc. (NYSE: ELS) (referred to herein as “we,” “us,” and “our”) right this moment introduced outcomes for the quarter and yr ended December 31, 2022. All per share outcomes are reported on a completely diluted foundation until in any other case famous.

Monetary Outcomes for the Quarter and Yr Ended December 31, 2022

For the quarter ended December 31, 2022, whole revenues elevated $5.3 million, or 1.6%, to $340.6 million, in comparison with $335.3 million for a similar interval in 2021. For the quarter ended December 31, 2022, internet revenue accessible for Widespread Stockholders elevated $7.5 million, to $73.0 million, or $0.39 per Widespread Share, in comparison with $65.5 million, or $0.36 per Widespread Share, for a similar interval in 2021.

For the yr ended December 31, 2022, whole revenues elevated $130.7 million, or 9.9%, to $1,447.1 million, in comparison with $1,316.4 million for a similar interval in 2021. For the yr ended December 31, 2022, internet revenue accessible for Widespread Stockholders elevated $22.1 million, or $0.10 per Widespread Share, to $284.6 million, or $1.53 per Widespread Share, in comparison with $262.5 million, or $1.43 per Widespread Share, for a similar interval in 2021.

Non-GAAP Monetary Measures and Portfolio Efficiency

For the quarter ended December 31, 2022, Funds from Operations (“FFO”) accessible for Widespread Inventory and OP Unit holders elevated $3.6 million, or $0.01 per Widespread Share, to $126.6 million, or $0.65 per Widespread Share, in comparison with $123.0 million, or $0.64 per Widespread Share, for a similar interval in 2021. For the yr ended December 31, 2022, FFO accessible for Widespread Inventory and OP Unit holders elevated $38.0 million, or $0.16 per Widespread Share, to $523.6 million, or $2.68 per Widespread Share, in comparison with $485.6 million, or $2.52 per Widespread Share, for a similar interval in 2021.

For the quarter ended December 31, 2022, Normalized Funds from Operations (“Normalized FFO”) accessible for Widespread Inventory and OP Unit holders elevated $4.6 million, or $0.02 per Widespread Share, to $128.1 million, or $0.66 per Widespread Share, in comparison with $123.6 million, or $0.64 per Widespread Share, for a similar interval in 2021. For the yr ended December 31, 2022, Normalized FFO accessible for Widespread Inventory and OP Unit holders elevated $42.7 million, or $0.19 per Widespread Share, to $531.6 million, or $2.72 per Widespread Share, in comparison with $489.0 million, or $2.53 per Widespread Share, for a similar interval in 2021.

For the quarter ended December 31, 2022, property working revenues, excluding deferrals, elevated $9.8 million to $306.4 million, in comparison with $296.6 million for a similar interval in 2021. For the yr ended December 31, 2022, property working revenues, excluding deferrals, elevated $91.9 million to $1,277.5 million, in comparison with $1,185.6 million for a similar interval in 2021. For the quarter ended December 31, 2022, revenue from property operations, excluding deferrals and property administration, elevated $8.2 million to $180.6 million, in comparison with $172.4 million for a similar interval in 2021. For the yr ended December 31, 2022, revenue from property operations, excluding deferrals and property administration, elevated $49.9 million to $731.9 million, in comparison with $682.0 million for a similar interval in 2021.

For the quarter ended December 31, 2022, Core property working revenues, excluding deferrals, elevated roughly 5.1% and Core revenue from property operations, excluding deferrals and property administration, elevated roughly 7.3%, in comparison with the identical interval in 2021. For the yr ended December 31, 2022, Core property working revenues, excluding deferrals, elevated roughly 6.1% and Core revenue from property operations, excluding deferrals and property administration, elevated roughly 5.7%, in comparison with the identical interval in 2021.

Enterprise Updates

Pages 1 and a pair of of this Earnings Launch and Supplemental Monetary Data present an replace on operations and 2023 steerage.

Funding Exercise

In November 2022, we acquired an 80% curiosity in a three way partnership with RVC Out of doors Locations for a complete buy worth of $2.4 million. The three way partnership owns one Leisure Car (“RV”) property underneath development positioned in Sandusky, Ohio.

In November 2022, we acquired a 50% curiosity in a three way partnership with Kampgrounds of America for a complete buy worth of $5.1 million. The three way partnership owns and operates, by means of its wholly owned subsidiary, Bald Mountain RV, LLC, a 283-site RV group positioned in Hiawassee, Georgia.

In December 2022, we accomplished the acquisition of Whippoorwill, a 288-site RV group positioned in Marmora, New Jersey for a purchase order worth of $21.8 million.

2023 Dividends

Our Board of Administrators has authorized setting the annual dividend charge for 2023 at $1.79 per share of Widespread Inventory, a rise of 9.1%, or $0.15, over the present $1.64 per share of Widespread Inventory for 2022. Our Board of Administrators, in its sole discretion, will decide the quantity of every quarterly dividend prematurely of fee.

About Fairness LifeStyle Properties

We’re a self-administered, self-managed actual property funding belief (“REIT”) with headquarters in Chicago. As of January 30, 2023, we personal or have an curiosity in 448 properties in 35 states and British Columbia consisting of 170,965 websites.

For extra data, please contact our Investor Relations Division at (800) 247-5279 or at investor_relations@equitylifestyle.com.

Convention Name

A stay audio webcast of our convention name discussing these outcomes will happen tomorrow, Tuesday, January 31, 2023, at 10:00 a.m. Central Time. Please go to the Investor Relations part at www.equitylifestyleproperties.com for the hyperlink. A replay of the webcast will likely be accessible for 2 weeks at this web site.

Ahead-Wanting Statements

Along with historic data, this press launch consists of sure “forward-looking statements” inside the that means of the Non-public Securities Litigation Reform Act of 1995. When used, phrases similar to “anticipate,” “count on,” “consider,” “venture,” “intend,” “could also be” and “will likely be” and comparable phrases or phrases, or the unfavourable thereof, until the context requires in any other case, are supposed to establish forward-looking statements and will embody with out limitation, data relating to our expectations, objectives or intentions relating to the longer term, and the anticipated impact of our acquisitions. These forward-looking statements are topic to quite a few assumptions, dangers and uncertainties, together with, however not restricted to:

• our capacity to regulate prices and actual property market situations, our capacity to retain prospects, the precise use of websites by prospects and our success in buying new prospects at our properties (together with people who we could purchase);
• our capacity to keep up historic or improve future rental charges and occupancy with respect to properties presently owned or that we could purchase;
• our capacity to draw and retain prospects coming into, renewing and upgrading membership subscriptions;
• our assumptions about rental and residential gross sales markets;
• our assumptions and steerage regarding Internet Revenue, FFO and Normalized FFO per share information;
• our capacity to handle counterparty threat;
• our capacity to resume our insurance coverage insurance policies at present charges and on constant phrases;
• house gross sales outcomes may very well be impacted by the power of potential homebuyers to promote their present residences in addition to by monetary, credit score and capital markets volatility;
• outcomes from house gross sales and occupancy will proceed to be impacted by native financial situations, together with an satisfactory provide of properties at cheap prices, lack of inexpensive manufactured house financing and competitors from different housing choices together with site-built single-family housing;
• influence of presidency intervention to stabilize site-built single-family housing and never manufactured housing;
• efficient integration of current acquisitions and our estimates relating to the longer term efficiency of current acquisitions;
• the completion of future transactions of their entirety, if any, and timing and efficient integration with respect thereto;
• unanticipated prices or unexpected liabilities related to current acquisitions;
• the impact of Hurricane Ian on our enterprise together with, however not restricted to the next: (i) the timing and value of restoration, (ii) the influence of the situation of properties and houses on occupancy demand and associated lease income and (iii) the timing and quantity of insurance coverage proceeds;
• our capacity to acquire financing or refinance present debt on favorable phrases or in any respect;
• the impact of inflation and rates of interest;
• the impact from any breach of our, or any of our distributors’ information administration programs;
• the dilutive results of issuing extra securities;
• the end result of pending or future lawsuits or actions introduced by or in opposition to us, together with these disclosed in our filings with the Securities and Trade Fee; and
• different dangers indicated every now and then in our filings with the Securities and Trade Fee.

Our steerage acknowledges the existence of unstable financial situations, which can influence our present steerage assumptions. Components impacting 2023 steerage embody, however aren’t restricted to the next: (i) the combo of web site utilization inside the portfolio; (ii) yield administration on our short-term resort and marina websites; (iii) scheduled or carried out charge will increase on group, resort and marina websites; (iv) scheduled or carried out charge will increase in annual funds underneath membership subscriptions; (v) occupancy adjustments; (vi) our capacity to draw and retain membership prospects; (vii) change in buyer demand relating to journey and outside trip locations; (viii) our capacity to handle bills in an inflationary setting; (ix) our capacity to combine and function current acquisitions in accordance with our estimates; (x) our capacity to execute enlargement/improvement alternatives within the face of provide chain delays/shortages; (xi) completion of pending transactions of their entirety and on assumed schedule; (xii) our capacity to draw and retain property workers, notably seasonal workers; (xiii) ongoing authorized issues and associated charges; and (xiv) prices to revive property operations and potential income losses following storms or different unplanned occasions. As well as, these forward-looking statements, together with our 2023 steerage are topic to dangers associated to the COVID-19 pandemic, lots of that are unknown, together with the period of the pandemic, the extent of the antagonistic well being influence on the final inhabitants and on our residents, prospects and workers particularly, its influence on the employment charge and the financial system, the extent and influence of governmental responses and the influence of operational adjustments we’ve carried out and will implement in response to the pandemic.

For additional data on these and different components that would influence us and the statements contained herein, discuss with our filings with the Securities and Trade Fee, together with the “Danger Components” part in our most up-to-date Annual Report on Kind 10-Ok and subsequent quarterly experiences on Kind 10-Q.

These forward-looking statements are based mostly on administration’s current expectations and beliefs about future occasions. As with all projection or forecast, these statements are inherently inclined to uncertainty and adjustments in circumstances. We’re underneath no obligation to, and expressly disclaim any obligation to, replace or alter our forward-looking statements whether or not because of such adjustments, new data, subsequent occasions or in any other case.

Supplemental Monetary Data

Operations and Monetary Replace

• Internet revenue accessible for Widespread Stockholders was $1.53 per absolutely diluted share, for the yr ended December 31, 2022, 7.0% increased than the yr ended December 31, 2021.
• Normalized FFO per Widespread Share on a completely diluted foundation was $2.72 for the yr ended December 31, 2022, 7.4% increased than the yr ended December 31, 2021.
• Acquired 4 RV communities, one membership RV group, an 80% curiosity in two joint ventures with RV properties underneath improvement, a 50% curiosity in a single three way partnership with one RV group, and three land parcels with an combination worth of roughly $150.9 million.
• Added 1,036 enlargement websites through the yr ended December 31, 2022.
• New house gross sales of 1,176 for the yr ended December 31, 2022, which was the very best in firm historical past.
• Throughout the yr ended December 31, 2022, we entered right into a $200.0 million unsecured time period mortgage settlement. The time period of the mortgage is 5 years and bears curiosity at a charge of Secured In a single day Financing Fee (“SOFR”) plus roughly 1.30% to 1.80%, relying on leverage ranges.
• Throughout the yr ended December 31, 2022, we closed on a secured refinancing transaction producing gross proceeds of $200.0 million. The mortgage is secured by one MH group, has a set rate of interest of three.36% every year and matures in 11 years.
• Throughout the yr ended December 31, 2022, we entered into our present at-the-market (“ATM”) fairness providing program with an combination providing worth of as much as $500.0 million. The total capability stays accessible for issuance.
• Acknowledged $40.6 million of bills for particles elimination and cleanup prices associated to Hurricane Ian and an offsetting insurance coverage restoration income accrual of $40.6 million for the quarter and yr ended December 31, 2022.
• Recorded a $5.4 million discount to the carrying worth of sure property and offsetting insurance coverage restoration income of $5.4 million because of Hurricane Ian for the yr ended December 31, 2022.

Core Portfolio

• Core portfolio generated development of 5.7% in revenue from property operations, excluding deferrals and property administration, for the yr ended December 31, 2022, in comparison with the yr ended December 31, 2021.
• Core MH base rental revenue elevated by 5.8% through the yr ended December 31, 2022, in comparison with the yr ended December 31, 2021. The rise is because of 5.4% development from charge will increase and 0.4% from occupancy good points.
• Maintained common Core MH occupancy at 95.1% for the years ended December 31, 2022 and 2021.
• Manufactured householders inside our Core portfolio elevated by 637 to 66,069 as of December 31, 2022, in comparison with 65,432 as of December 31, 2021.
• Core RV and marina base rental revenue for the yr ended December 31, 2022 elevated by 9.1%, in comparison with the yr ended December 31, 2021.
• Mixed Core Seasonal and Transient RV base rental revenue for the yr ended December 31, 2022 elevated by 9.5% or $11.1 million, in comparison with the yr ended December 31, 2021.
• RV Annual occupancy inside our Core RV and Thousand Trails portfolios elevated by 570 through the yr ended December 31, 2022, in comparison with the yr ended December 31, 2021.

Non-Core Portfolio

• Throughout the quarter ended December 31, 2022, operations at our Fort Myers Seaside, Gulf Air, Pine Island, and Ramblers Relaxation properties have been interrupted because of Hurricane Ian, subsequently we designated them as Non-core properties. This alteration is mirrored all through the outcomes represented on this launch and in our Supplemental Monetary Data package deal.

2023 Steerage (1) (2)
($ in tens of millions, besides per share)						2023
						First Quarter		Full Yr
Internet Revenue/share						$0.42 to $0.48		$1.65 to $1.75
FFO/share						$0.70 to $0.76		$2.79 to $2.89
Normalized FFO/share						$0.70 to $0.76		$2.79 to $2.89
		2022 Precise				2023 Progress Charges
Core Portfolio:		First Quarter		Full Yr		First Quarter		Full Yr
MH base rental revenue		$154.4		$626.0		6.0% to six.6%		6.0% to 7.0%
RV and marina base rental revenue (3)		$102.7		$393.4		5.8% to six.4%		5.7% to six.7%
Property working revenues		$310.2		$1,240.2		5.7% to six.3%		5.7% to six.7%
Property working bills		$124.9		$526.4		7.5% to eight.1%		6.7% to 7.7%
Revenue from property operations, excluding deferrals and property administration		$185.3		$713.8		4.4% to five.0%		5.0% to six.0%
Non Core Portfolio:						2023 Full Yr
Revenue from property operations, excluding deferrals and property administration						$17.7 to $21.7
Different Steerage Assumptions:						2023 Full Yr
Property administration and normal administrative						$114.4 to $120.4
Debt Assumptions:
Weighted common debt excellent						$3,300 to $3,500
Curiosity and associated amortization						$127.5 to $133.5

(1)	First quarter and full yr 2023 steerage ranges symbolize a spread of potential outcomes and the midpoint displays administration’s estimate of the probably final result. Precise development charges and per share quantities may fluctuate materially from development charges and per share quantities offered above if any of our assumptions, together with occupancy and charge adjustments, our capacity to combine and function current acquisitions and prices to revive property operations and potential income losses following storms or different unplanned occasions, is inaccurate. See Ahead-Wanting Statements on this launch for extra components impacting our 2023 steerage assumptions.
(2)	Steerage assumptions don’t embody future capital occasions (financing transactions, acquisitions or tendencies) or using free money move.
(3)	Core RV Annual income represents roughly 61.5% and 66.5% of first quarter 2023 and full yr 2023 RV and marina base rental revenue, respectively. Core RV Annual income first quarter 2023 development charge vary is 8.2% to eight.8% and the total yr 2023 development charge vary is 7.5% to eight.5%.

Investor Data
Fairness Analysis Protection(1)
Financial institution of America Securities		Barclays		BMO Capital Markets
Jeffrey Spector/Joshua Dennerlein		Anthony Powell		John Kim
Citi Analysis		Colliers Securities		Evercore ISI
Nick Joseph		David Toti		Steve Sakwa/Samir Khanal
Inexperienced Road Advisors		RBC Capital Markets		Robert W. Baird & Firm
John Pawlowski		Brad Heffern		Wes Golladay
Truist		UBS		Wolfe Analysis
Anthony Hau		Michael Goldsmith		Andrew Rosivach/Keegan Carl

______________________
1.	Any opinions, estimates or forecasts relating to our efficiency made by these analysts or businesses don’t symbolize our opinions, forecasts or predictions. We don’t, by reference to those companies, suggest our endorsement of or concurrence with such data, conclusions or suggestions.

Monetary Highlights
(In tens of millions, besides Widespread Shares and OP Items excellent and per share information, unaudited)
	As of and for the Quarter Ended
	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Working Data
Whole revenues	$	340.6		$	381.0		$	365.3		$	360.2		$	335.3
Internet revenue	$	76.7		$	70.5		$	64.6		$	87.1		$	68.8
Internet revenue accessible for Widespread Stockholders	$	73.0		$	67.2		$	61.5		$	82.9		$	65.5
Adjusted EBITDAre (1)	$	159.2		$	166.4		$	153.3		$	168.4		$	150.7
FFO accessible for Widespread Inventory and OP Unit holders (1)(2)	$	126.6		$	134.4		$	121.6		$	140.9		$	123.0
Normalized FFO accessible for Widespread Inventory and OP Unit holders (1)(2)	$	128.1		$	136.8		$	125.3		$	141.4		$	123.6
Funds Obtainable for Distribution (“FAD”) for Widespread Inventory and OP Unit holders (1)(2)	$	106.9		$	115.4		$	103.6		$	125.1		$	102.3
Widespread Shares and OP Items Excellent (In hundreds) and Per Share Knowledge
Widespread Shares and OP Items, finish of the interval		195,386			195,380			195,373			195,303			194,946
Weighted common Widespread Shares and OP Items excellent – Absolutely Diluted		195,281			195,269			195,227			195,246			193,412
Internet revenue per Widespread Share – Absolutely Diluted (3)	$	0.39		$	0.36		$	0.33		$	0.45		$	0.36
FFO per Widespread Share and OP Unit – Absolutely Diluted	$	0.65		$	0.69		$	0.62		$	0.72		$	0.64
Normalized FFO per Widespread Share and OP Unit – Absolutely Diluted	$	0.66		$	0.70		$	0.64		$	0.72		$	0.64
Dividends per Widespread Share	$	0.4100		$	0.4100		$	0.4100		$	0.4100		$	0.3625
Steadiness Sheet
Whole property	$	5,493		$	5,405		$	5,400		$	5,265		$	5,308
Whole liabilities	$	3,975		$	3,886		$	3,878		$	3,734		$	3,822
Market Capitalization
Whole debt (4)	$	3,416		$	3,329		$	3,298		$	3,193		$	3,303
Whole market capitalization (5)	$	16,038		$	15,607		$	17,066		$	18,130		$	20,392
Ratios
Whole debt / whole market capitalization		21.3	%		21.3	%		19.3	%		17.6	%		16.2	%
Whole debt / Adjusted EBITDAre (6)		5.3			5.2			5.3			5.2			5.6
Curiosity protection (7)		5.6			5.7			5.7			5.7			5.5
Mounted fees(8)		5.6			5.6			5.6			5.6			5.5

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1.	See Non-GAAP Monetary Measures Definitions and Reconciliations on the finish of the supplemental monetary data for definitions of Adjusted EBITDAre, FFO, Normalized FFO and FAD and a reconciliation of Consolidated internet revenue to Adjusted EBITDAre.
2.	See web page 9 for a reconciliation of Internet revenue accessible for Widespread Stockholders to Non-GAAP monetary measures FFO accessible for Widespread Inventory and OP Unit holders, Normalized FFO accessible for Widespread Inventory and OP Unit holders and FAD for Widespread Inventory and OP Unit holders.
3.	Internet revenue per Widespread Share – Absolutely Diluted is calculated earlier than Revenue allotted to non-controlling curiosity – Widespread OP Items.
4.	Excludes deferred financing prices of roughly $28.1 million as of December 31, 2022.
5.	See web page 17 for the calculation of market capitalization as of December 31, 2022.
6.	Calculated utilizing trailing twelve months Adjusted EBITDAre.
7.	Calculated by dividing trailing twelve months Adjusted EBITDAre by the curiosity expense incurred throughout the identical interval.
8.	See Non-GAAP Monetary Measures Definitions and Reconciliations on the finish of the supplemental monetary data for a definition of fastened fees. This ratio is calculated by dividing trailing twelve months Adjusted EBITDAre by the sum of fastened fees and most well-liked inventory dividends, if any, throughout the identical interval.

Consolidated Steadiness Sheets
(In hundreds, besides share and per share information)
	December 31, 2022				December 31, 2021
	(unaudited)
Belongings
Funding in actual property:
Land	$	2,084,532			$	2,019,787
Land enhancements		4,115,439				3,912,062
Buildings and different depreciable property		1,169,590				1,057,215
		7,369,561				6,989,064
Collected depreciation		(2,258,540	)			(2,103,774	)
Internet funding in actual property		5,111,021				4,885,290
Money and restricted money		22,347				123,398
Notes receivable, internet		45,356				39,955
Funding in unconsolidated joint ventures		81,404				70,312
Deferred fee expense		50,441				47,349
Different property, internet		181,950				141,567
Whole Belongings	$	5,492,519			$	5,307,871
Liabilities and Fairness
Liabilities:
Mortgage notes payable, internet	$	2,693,167			$	2,627,783
Time period mortgage, internet		496,817				297,436
Unsecured line of credit score		198,000				349,000
Accounts payable and different liabilities		175,148				172,285
Deferred membership income		197,743				176,439
Accrued curiosity payable		11,739				9,293
Rents and different buyer funds acquired prematurely and safety deposits		122,318				118,696
Distributions payable		80,102				70,768
Whole Liabilities		3,975,034				3,821,700
Fairness:
Most popular inventory, $0.01 par worth, 10,000,000 shares licensed as of December 31, 2022 and December 31, 2021; none issued and excellent.		—				—
Widespread inventory, $0.01 par worth, 600,000,000 shares licensed as of December 31, 2022 and December 31, 2021; 186,120,298 and 185,640,379 shares issued and excellent as of December 31, 2022 and December 31, 2021, respectively.		1,916				1,913
Paid-in capital		1,628,618				1,593,362
Distributions in extra of collected earnings		(204,248	)			(183,689	)
Collected different complete revenue		19,119				3,524
Whole Stockholders’ Fairness		1,445,405				1,415,110
Non-controlling pursuits – Widespread OP Items		72,080				71,061
Whole Fairness		1,517,485				1,486,171
Whole Liabilities and Fairness	$	5,492,519			$	5,307,871

Consolidated Statements of Revenue
(In hundreds, unaudited)
	Quarters Ended December 31,								Years Ended December 31,
	2022				2021				2022				2021
Revenues:
Rental revenue	$	269,190			$	258,282			$	1,118,601			$	1,032,575
Annual membership subscriptions		16,212				15,203				63,215				58,251
Membership improve gross sales present interval, gross		6,890				6,927				34,661				36,270
Membership improve gross sales upfront funds, deferred, internet		(3,475	)			(3,945	)			(21,703	)			(25,079	)
Different revenue		12,828				13,539				56,144				50,298
Gross revenues from house gross sales, brokered resales and ancillary providers (1)		35,242				42,467				180,179				152,517
Curiosity revenue		2,084				1,702				7,430				7,016
Revenue from different investments, internet		1,633				1,159				8,553				4,555
Whole revenues		340,604				335,334				1,447,080				1,316,403
Bills:
Property working and upkeep		101,677				98,283				443,157				398,983
Actual property taxes		17,772				18,517				74,145				72,671
Gross sales and advertising and marketing, gross		5,047				4,756				23,513				23,743
Membership gross sales commissions, deferred, internet		(450	)			(670	)			(3,196	)			(5,075	)
Property administration		18,110				17,024				74,083				65,979
Depreciation and amortization		49,625				50,317				202,362				188,444
Price of house gross sales, brokered resales and ancillary providers (1)		27,118				35,081				139,012				120,623
Residence promoting bills and ancillary working bills (1)		6,175				5,949				27,321				23,538
Normal and administrative (1)		10,022				8,983				44,857				39,576
Casualty-related fees/(recoveries), internet (2)		—				—				—				—
Different bills (1)		1,769				1,398				8,646				4,241
Early debt retirement		—				—				1,156				2,784
Curiosity and associated amortization		31,286				27,951				116,562				108,718
Whole bills		268,151				267,589				1,151,618				1,044,225
Achieve/(loss) on sale of actual property and impairment, internet (3)		3,747				—				—				(59	)
Revenue earlier than fairness in revenue of unconsolidated joint ventures		76,200				67,745				295,462				272,119
Fairness in revenue of unconsolidated joint ventures		474				1,095				3,363				3,881
Consolidated internet revenue		76,674				68,840				298,825				276,000
Revenue allotted to non-controlling pursuits – Widespread OP Items		(3,635	)			(3,286	)			(14,198	)			(13,522	)
Redeemable perpetual most well-liked inventory dividends		(8	)			(8	)			(16	)			(16	)
Internet revenue accessible for Widespread Stockholders	$	73,031			$	65,546			$	284,611			$	262,462

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1.	Prior interval quantities have been reclassified to evolve to the present interval presentation.
2.	Casualty-related fees/(recoveries), internet consists of particles elimination and cleanup prices associated to Hurricane Ian of $40.6 million and insurance coverage restoration income of $40.6 million for the quarter and yr ended December 31, 2022.
3.	Displays a $1.7 million discount to the carrying worth of sure property because of Hurricane Ian and insurance coverage restoration income of $5.4 million for the quarter ended December 31, 2022. Displays a $5.4 million discount to the carrying worth of sure property and insurance coverage restoration income of $5.4 million because of Hurricane Ian for the yr ended December 31, 2022.

Non-GAAP Monetary Measures

This doc accommodates sure non-GAAP measures utilized by administration that we consider are useful to grasp our enterprise. We consider traders ought to evaluation these non-GAAP measures together with GAAP internet revenue and money flows from working actions, investing actions and financing actions, when evaluating an fairness REIT’s working efficiency. Our definitions and calculations of those non-GAAP monetary and working measures and different phrases could differ from the definitions and methodologies utilized by different REITs and, accordingly, will not be comparable. These non-GAAP monetary and working measures don’t symbolize money generated from working actions in accordance with GAAP, nor do they symbolize money accessible to pay distributions and shouldn’t be thought-about as a substitute for internet revenue, decided in accordance with GAAP, as a sign of our monetary efficiency, or to money flows from working actions, decided in accordance with GAAP, as a measure of our liquidity, nor are they indicative of funds accessible to fund our money wants, together with our capacity to make money distributions. For definitions and reconciliations of non-GAAP measures to our monetary statements as ready underneath GAAP, discuss with each Reconciliation of Internet Revenue to Non-GAAP Monetary Measures on web page 9 and Non-GAAP Monetary Measures Definitions and Reconciliations on pages 19-21.

Chosen Non-GAAP Monetary Measures
(In tens of millions, besides per share information, unaudited)
	Quarter Ended
	December 31, 2022
Revenue from property operations, excluding deferrals and property administration – 2022 Core (1)	$	174.8
Revenue from property operations, excluding deferrals and property administration – Non-Core (1)		5.8
Property administration and normal and administrative		(28.1	)
Different revenue and bills (excluding transaction/pursuit prices)		6.9
Curiosity and associated amortization		(31.3	)
Normalized FFO accessible for Widespread Inventory and OP Unit holders (2)	$	128.1
Transaction/pursuit prices (3)		(0.4	)
Lease termination bills (4)		(1.1	)
FFO accessible for Widespread Inventory and OP Unit holders (2)	$	126.6
FFO per Widespread Share and OP Unit – Absolutely Diluted	$	0.65
Normalized FFO per Widespread Share and OP Unit – Absolutely Diluted	$	0.66
Normalized FFO accessible for Widespread Inventory and OP Unit holders (2)	$	128.1
Non-revenue producing enhancements to actual property		(21.2	)
FAD for Widespread Inventory and OP Unit holders (2)	$	106.9
Weighted common Widespread Shares and OP Items – Absolutely Diluted		195.3

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1.	See pages 11-12 for particulars of the Core Revenue from Property Operations, excluding deferrals and property administration. See web page 13 for particulars of the Non-Core Revenue from Property Operations, excluding deferrals and property administration.
2.	See web page 9 for a reconciliation of Internet revenue accessible for Widespread Stockholders to FFO accessible for Widespread Inventory and OP Unit holders, Normalized FFO accessible for Widespread Inventory and OP Unit holders and FAD for Widespread Inventory and OP Unit holders.
3.	Represents transaction/pursuit prices associated to unconsummated acquisitions included in Different bills within the Consolidated Statements of Revenue on web page 6.
4.	Represents non-operating bills related to the Westwinds floor leases that terminated on August 31, 2022. As such, the bills aren’t comparable from interval to interval and have been added again to Normalized FFO.

Reconciliation of Internet Revenue to Non-GAAP Monetary Measures
(In hundreds, besides per share information, unaudited)
		Quarters Ended December 31,								Years Ended December 31,
		2022				2021				2022				2021
Internet revenue accessible for Widespread Stockholders		$	73,031			$	65,546			$	284,611			$	262,462
Revenue allotted to non-controlling pursuits – Widespread OP Items			3,635				3,286				14,198				13,522
Membership improve gross sales upfront funds, deferred, internet			3,475				3,945				21,703				25,079
Membership gross sales commissions, deferred, internet			(450	)			(670	)			(3,196	)			(5,075	)
Depreciation and amortization			49,625				50,317				202,362				188,444
Depreciation on unconsolidated joint ventures			1,075				536				3,886				1,083
(Achieve)/loss on sale of actual property and impairment, internet (1)			(3,747	)			—				—				59
FFO accessible for Widespread Inventory and OP Unit holders			126,644				122,960				523,564				485,574
Early debt retirement			—				—				1,156				2,784
Transaction/pursuit prices (2)			423				598				3,807				598
Lease termination bills (3)			1,046				—				3,119				—
Normalized FFO accessible for Widespread Inventory and OP Unit holders			128,113				123,558				531,646				488,956
Non-revenue producing enhancements to actual property			(21,246	)			(21,247	)			(80,527	)			(70,510	)
FAD for Widespread Inventory and OP Unit holders		$	106,867			$	102,311			$	451,119			$	418,446
Internet revenue accessible per Widespread Share – Primary		$	0.39			$	0.36			$	1.53			$	1.43
Internet revenue accessible per Widespread Share – Absolutely Diluted (4)		$	0.39			$	0.36			$	1.53			$	1.43
FFO per Widespread Share and OP Unit – Primary		$	0.65			$	0.64			$	2.68			$	2.52
FFO per Widespread Share and OP Unit – Absolutely Diluted		$	0.65			$	0.64			$	2.68			$	2.52
Normalized FFO per Widespread Share and OP Unit – Primary		$	0.66			$	0.64			$	2.73			$	2.54
Normalized FFO per Widespread Share and OP Unit – Absolutely Diluted		$	0.66			$	0.64			$	2.72			$	2.53
Weighted common Widespread Shares excellent – Primary			185,848				183,889				185,780				182,917
Weighted common Widespread Shares and OP Items excellent – Primary			195,117				193,183				195,069				192,656
Weighted common Widespread Shares and OP Items excellent – Absolutely Diluted			195,281				193,412				195,255				192,883

______________________
1.	Displays a $1.7 million discount to the carrying worth of sure property because of Hurricane Ian and insurance coverage restoration income of $5.4 million for the quarter ended December 31, 2022. Displays a $5.4 million discount to the carrying worth of sure property and insurance coverage restoration income of $5.4 million because of Hurricane Ian for the yr ended December 31, 2022.
2.	Represents transaction/pursuit prices associated to unconsummated acquisitions included in Different bills within the Consolidated Statements of Revenue on web page 6.
3.	Represents non-operating bills related to the Westwinds floor leases that terminated on August 31, 2022. As such, the bills aren’t comparable from interval to interval and have been added again to Normalized FFO.
4.	Internet revenue per absolutely diluted Widespread Share is calculated earlier than Revenue allotted to non-controlling curiosity – Widespread OP Items.

Consolidated Revenue from Property Operations (1)
In tens of millions, besides house web site and occupancy figures, unaudited)
	Quarters Ended December 31,								Years Ended December 31,
	2022				2021				2022				2021
MH base rental revenue (2)	$	158.9			$	152.8			$	634.0			$	603.1
Rental house revenue (2)		3.7				4.0				15.2				16.7
RV and marina base rental revenue (2)		92.6				89.6				409.6				362.8
Annual membership subscriptions		16.2				15.2				63.2				58.3
Membership improve gross sales present interval, gross		6.9				6.9				34.7				36.3
Utility and different revenue (2)		28.1				28.1				120.8				108.4
Property working revenues		306.4				296.6				1,277.5				1,185.6
Property working, upkeep and actual property taxes (2)		120.8				119.4				522.1				479.9
Gross sales and advertising and marketing, gross		5.0				4.8				23.5				23.7
Property working bills		125.8				124.2				545.6				503.6
Revenue from property operations, excluding deferrals and property administration (1)	$	180.6			$	172.4			$	731.9			$	682.0
Manufactured house web site figures and occupancy averages:
Whole websites		72,715				73,457				73,265				73,232
Occupied websites		68,968				69,672				69,509				69,463
Occupancy %		94.8	%			94.8	%			94.9	%			94.9	%
Month-to-month base lease per web site	$	768			$	731			$	760			$	723
RV and marina base rental revenue:
Annual	$	67.1			$	63.5			$	266.1			$	237.2
Seasonal		13.3				11.6				58.9				41.7
Transient		12.2				14.5				84.6				83.9
Whole RV and marina base rental revenue	$	92.6			$	89.6			$	409.6			$	362.8

______________________
1.	Excludes property administration and the GAAP deferral of membership improve gross sales upfront funds and membership gross sales commissions, internet.
2.	MH base rental revenue, Rental house revenue, RV and marina base rental revenue and Utility revenue, internet of unhealthy debt expense, are offered in Rental revenue within the Consolidated Statements of Revenue on web page 6. Unhealthy debt expense is offered in Property working, upkeep and actual property taxes on this desk.

Core Revenue from Property Operations (1)
(In tens of millions, besides house web site and occupancy figures, unaudited)
	Quarters Ended December 31,									Years Ended December 31,
	2022			2021			Change (2)			2022			2021			Change (2)
MH base rental revenue	$	158.8		$	149.8		6.0	%		$	626.0		$	591.7		5.8	%
Rental house revenue		3.7			4.0		(6.7	)%			15.2			16.7		(8.8	)%
RV and marina base rental revenue		81.7			77.3		5.7	%			352.7			323.4		9.1	%
Annual membership subscriptions		16.0			15.2		5.8	%			62.5			58.1		7.5	%
Membership improve gross sales present interval, gross		6.9			6.9		0.3	%			33.4			36.2		(7.8	)%
Utility and different revenue		25.1			24.8		1.3	%			105.3			100.4		4.9	%
Property working revenues		292.2			278.0		5.1	%			1,195.1			1,126.5		6.1	%
Utility expense		33.3			31.4		6.0	%			138.7			125.4		10.6	%
Payroll		25.5			23.9		6.8	%			108.4			100.6		7.7	%
Restore & Upkeep		16.7			17.5		(4.7	)%			81.0			75.2		7.7	%
Insurance coverage and different (3)		20.1			21.2		(5.0	)%			86.4			83.3		3.7	%
Actual property taxes		16.8			16.3		3.3	%			67.1			64.6		4.0	%
Gross sales and advertising and marketing, gross		5.0			4.8		6.9	%			22.9			23.8		(3.4	)%
Property working bills		117.4			115.1		2.1	%			504.5			472.9		6.7	%
Revenue from property operations, excluding deferrals and property administration (1)	$	174.8		$	162.9		7.3	%		$	690.6		$	653.6		5.7	%
Occupied websites (4)		68,880			68,895

_____________________
1.	Excludes property administration and the GAAP deferral of membership upgrades gross sales upfront funds and membership gross sales commissions, internet. Core properties exclude Fort Myers Seaside, Gulf Air, Pine Island and Ramblers Relaxation.
2.	Calculations ready utilizing precise outcomes with out rounding.
3.	Consists of unhealthy debt expense for the intervals offered.
4.	Occupied websites are offered as of the tip of the interval. Occupied websites have decreased by 15 from 68,895 at December 31, 2021.

Core Revenue from Property Operations (continued)
(In tens of millions, besides house web site and occupancy figures, unaudited)
	Quarters Ended December 31,										Years Ended December 31,
	2022				2021				Change (1)		2022				2021				Change (1)
Core manufactured house web site figures and occupancy averages:
Whole websites		72,454				72,348						72,455				72,208
Occupied websites		68,913				68,802						68,913				68,675
Occupancy %		95.1	%			95.1	%					95.1	%			95.1	%
Month-to-month base lease per web site	$	768			$	726					$	757			$	718
Core RV and marina base rental revenue:
Annual (2)	$	58.2			$	53.4			9.0%		$	224.6			$	206.4			8.8%
Seasonal		12.2				10.4			17.4%			52.1				37.6			38.6%
Transient		11.3				13.6			(16.5)%			76.0				79.4			(4.3)%
Whole Seasonal and Transient	$	23.5			$	24.0			(1.8)%		$	128.1			$	117.0			9.5%
Whole RV and marina base rental revenue	$	81.7			$	77.4			5.7%		$	352.7			$	323.4			9.1%
Core utility data:
Revenue	$	15.0			$	13.6			10.3%		$	61.1			$	55.0			11.1%
Expense		33.3				31.4			6.0%			138.7				125.4			10.6%
Expense, internet	$	18.3			$	17.8			2.8%		$	77.6			$	70.4			10.2%
Utility Restoration Fee (3)		45.0	%			43.3	%					44.1	%			43.9	%

_____________________
1.	Calculations ready utilizing precise outcomes with out rounding.
2.	Core Annual marina base rental revenue represents roughly 99% of the whole Core marina base rental revenue for all intervals offered.
3.	Calculated by dividing the utility revenue by utility expense.

Non-Core Revenue from Property Operations (1)
(In tens of millions, unaudited)
	Quarter Ended			Yr Ended
	December 31, 2022			December 31, 2022
MH base rental revenue	$	0.1		$	8.0
RV and marina base rental revenue		10.9			56.9
Annual membership subscriptions		0.2			0.7
Utility and different revenue		3.0			15.5
Membership improve gross sales present interval, gross		—			1.3
Property working revenues		14.2			82.4
Property working bills (2)		8.4			41.2
Revenue from property operations, excluding deferrals and property administration (1)	$	5.8		$	41.2

______________________
1.	Excludes property administration and the GAAP deferral of membership improve gross sales upfront funds and membership gross sales commissions, internet.
2.	Consists of unhealthy debt expense for the intervals offered.

Revenue from Rental Residence Operations
(In tens of millions, besides occupied leases, unaudited)
		Quarters Ended December 31,						Years Ended December 31,
		2022			2021			2022			2021
Manufactured properties:
Rental operations revenues (1)		$	10.2		$	11.5		$	42.9		$	48.2
Rental house operations expense (2)			1.3			1.6			5.4			5.7
Revenue from rental house operations			8.9			9.9			37.5			42.5
Depreciation on rental properties (3)			2.5			2.6			10.1			10.5
Revenue from rental operations, internet of depreciation		$	6.4		$	7.3		$	27.4		$	32.0
Occupied leases: (4)
New			2,481			3,038
Used			330			424
Whole occupied rental websites			2,811			3,462
		As of December 31, 2022						As of December 31, 2021
Price foundation in rental properties: (5)		Gross			Internet of Depreciation			Gross			Internet of Depreciation
New		$	237.8		$	196.1		$	226.8		$	184.5
Used			14.7			8.2			16.1			8.7
Whole rental properties		$	252.5		$	204.3		$	242.9		$	193.2

______________________
1.	For the quarters ended December 31, 2022 and 2021, roughly $6.5 million and $7.5 million, respectively, of the rental operations income is included within the MH base rental revenue within the Core Revenue from Property Operations on pages 11-12. The rest of the rental operations income is included in Rental house revenue for the quarters ended December 31, 2022 and 2021 within the Core Revenue from Property Operations on pages 11-12.
2.	Rental house operations expense is included in Property working, upkeep and actual property taxes within the Consolidated Revenue from Property Operations on web page 10. Rental house operations expense is included in Insurance coverage and different within the Core Revenue from Property Operations on pages 11-12.
3.	Depreciation on rental properties in our Core portfolio is offered in Depreciation and amortization within the Consolidated Statements of Revenue on web page 6.
4.	Occupied leases as of the tip of the interval in our Core portfolio. Included in occupied leases as of December 31, 2021 have been 236 properties rented by means of ECHO Financing LLC (“ECHO three way partnership”). On December 22, 2022 we accomplished the acquisition of all properties held by the ECHO three way partnership.
5.	Consists of each occupied and unoccupied rental properties in our Core portfolio. New house price foundation doesn’t embody the prices related to our ECHO three way partnership for 2021.

Whole Websites and Residence Gross sales
(In hundreds, besides websites and residential sale volumes, unaudited)
Abstract of Whole Websites as of December 31, 2022
	Websites (1)
MH websites	72,700
RV websites:
Annual	34,200
Seasonal	12,700
Transient	15,300
Marina slips	6,900
Membership (2)	25,800
Joint Ventures (3)	3,300
Whole	170,900

Residence Gross sales – Choose Knowledge
	Quarters Ended December 31,						Years Ended December 31,
	2022			2021			2022			2021
Whole New Residence Gross sales Quantity (4)		219			338			1,176			1,163
New Residence Gross sales Quantity – ECHO three way partnership		6			26			78			82
New Residence Gross sales Gross Revenues (4)	$	24,562		$	30,089		$	116,790		$	94,160
Whole Used Residence Gross sales Quantity		87			118			337			432
Used Residence Gross sales Gross Revenues	$	1,064		$	1,445		$	4,401		$	4,297
Brokered Residence Resales Quantity		134			192			808			735
Brokered Residence Resales Gross Revenues	$	604		$	589		$	3,195		$	2,144

______________________
1.	MH websites are typically leased on an annual foundation to residents who personal or lease factory-built properties, together with manufactured properties. Annual RV and marina websites are leased on an annual foundation to prospects who typically have an RV, factory-built cottage, boat or different unit positioned on the positioning, together with these Northern properties which are open for the summer season season. Seasonal RV and marina websites are leased to prospects typically for one to 6 months. Transient RV and marina websites are leased to prospects on a short-term foundation.
2.	Websites primarily utilized by roughly 128,400 members. Consists of roughly 6,400 websites rented on an annual foundation.
3.	Joint ventures have roughly 2,000 annual websites and 1,300 transient websites.
4.	Whole new house gross sales quantity consists of house gross sales from our ECHO three way partnership by means of December 22, 2022. New house gross sales gross revenues doesn’t embody the revenues related to the ECHO three way partnership.

Memberships – Choose Knowledge
(Unaudited)
		Years Ended December 31,
		2018			2019			2020			2021			2022
Member Depend (1)			111,094			115,680			116,169			125,149			128,439
Thousand Trails Tenting Go (TTC) Origination			37,528			41,484			44,129			50,523			51,415
TTC Gross sales			17,194			19,267			20,587			23,923			23,237
RV Seller TTC Activations			20,334			22,217			23,542			26,600			28,178
Variety of annuals (2)			5,888			5,938			5,986			6,320			6,390
Variety of improve gross sales (3)			2,500			2,919			3,373			4,863			4,068
(In hundreds, unaudited)
Annual membership subscriptions		$	47,778		$	51,015		$	53,085		$	58,251		$	63,215
RV base rental revenue from annuals		$	18,363		$	19,634		$	20,761		$	23,127		$	25,945
RV base rental revenue from seasonals/transients		$	19,840		$	20,181		$	18,126		$	25,562		$	24,316
Membership improve gross sales present interval, gross		$	15,191		$	19,111		$	21,739		$	36,270		$	34,661
Utility and different revenue		$	2,410		$	2,422		$	2,426		$	2,735		$	2,626

______________________
1.	Members have entered into annual subscriptions with us that entitle them to make use of sure properties on a steady foundation for as much as 21 days.
2.	Members who lease a particular web site for a whole yr in reference to their membership subscriptions.
3.	Present members who’ve upgraded memberships are eligible for enhanced advantages, together with however not restricted to longer stays, the power to make earlier reservations, potential reductions on rental items, and potential entry to extra properties. Upgrades require a non-refundable upfront fee.

Market Capitalization
(In tens of millions, besides share and OP Unit information, unaudited)
Capital Construction as of December 31, 2022
		Whole Widespread Shares/Items			% of Whole Widespread Shares/Items			Whole			% of Whole			% of Whole Market Capitalization
Secured Debt								$	2,718		79.6	%
Unsecured Debt									698		20.4	%
Whole Debt (1)								$	3,416		100.0	%		21.3	%
Widespread Shares			186,120,298		95.3	%
OP Items			9,265,565		4.7	%
Whole Widespread Shares and OP Items			195,385,863		100.0	%
Widespread Inventory worth at December 31, 2022		$	64.60
Honest Worth of Widespread Shares and OP Items								$	12,622		100.0	%
Whole Fairness								$	12,622		100.0	%		78.7	%
Whole Market Capitalization								$	16,038					100.0	%

______________________
1.	Excludes deferred financing prices of roughly $28.1 million.

Debt Maturity Schedule
Debt Maturity Schedule as of December 31, 2022
(In hundreds, unaudited)
Yr		Secured Debt				Weighted Common Curiosity Fee			Unsecured Debt (1)				Weighted Common Curiosity Fee			Whole Debt				% of Whole Debt			Weighted Common Curiosity Fee
2023		$	92,512			4.91	%		$	—			—	%		$	92,512			2.87	%		4.91	%
2024			10,003			5.49	%			—			—	%			10,003			0.31	%		5.49	%
2025			93,206			3.45	%			—			—	%			93,206			2.90	%		3.45	%
2026			—			—	%			300,000			1.79	%			300,000			9.32	%		1.79	%
2027			—			—	%			200,000			4.94	%			200,000			6.22	%		4.94	%
2028			207,117			4.19	%			—			—	%			207,117			6.44	%		4.19	%
2029			39,320			4.10	%			—			—	%			39,320			1.22	%		4.10	%
2030			275,385			2.69	%			—			—	%			275,385			8.56	%		2.69	%
2031			259,461			2.46	%			—			—	%			259,461			8.06	%		2.46	%
Thereafter			1,740,974			3.76	%			—			—	%			1,740,974			54.10	%		3.76	%
Whole		$	2,717,978			3.60	%		$	500,000			3.05	%		$	3,217,978			100.0	%		3.52	%
Unsecured Line of Credit score			—							198,000							198,000
Be aware Premiums			136							—							136
Whole Debt			2,718,114							698,000							3,416,114
Deferred Financing Prices			(24,948	)						(3,183	)						(28,131	)
Whole Debt, internet		$	2,693,166						$	694,817						$	3,387,983						3.72	%(1)
Common Years to Maturity			11.2							3.3							9.6

______________________
1.	Displays efficient rate of interest for the yr ended December 31, 2022, together with curiosity related to the road of credit score and amortization of be aware premiums and deferred financing prices.

Non-GAAP Monetary Measures Definitions and Reconciliations

FUNDS FROM OPERATIONS (FFO). We outline FFO as internet revenue, computed in accordance with GAAP, excluding good points or losses from gross sales of properties, depreciation and amortization associated to actual property, impairment fees and changes to mirror our share of FFO of unconsolidated joint ventures. Changes for unconsolidated joint ventures are calculated to mirror FFO on the identical foundation. We compute FFO in accordance with our interpretation of requirements established by the Nationwide Affiliation of Actual Property Funding Trusts (“NAREIT”), which will not be similar to FFO reported by different REITs that don’t outline the time period in accordance with the present NAREIT definition or that interpret the present NAREIT definition in a different way than we do. We obtain non-refundable upfront funds from membership improve contracts. In accordance with GAAP, the non-refundable upfront funds and associated commissions are deferred and amortized over the estimated membership improve contract time period. Though the NAREIT definition of FFO doesn’t handle the therapy of non-refundable upfront funds, we consider that it’s applicable to regulate for the influence of the deferral exercise in our calculation of FFO.

We consider FFO, as outlined by the Board of Governors of NAREIT, is usually a measure of efficiency for an fairness REIT. Whereas FFO is a related and broadly used measure of working efficiency for fairness REITs, it doesn’t symbolize money move from operations or internet revenue as outlined by GAAP, and it shouldn’t be thought-about as a substitute for these indicators in evaluating liquidity or working efficiency.

NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO). We outline Normalized FFO as FFO excluding non-operating revenue and expense objects, similar to good points and losses from early debt extinguishment, together with prepayment penalties and defeasance prices, transaction/pursuit prices, and different miscellaneous non-comparable objects. Normalized FFO offered herein just isn’t essentially similar to Normalized FFO offered by different actual property firms as a result of the truth that not all actual property firms use the identical methodology for computing this quantity.

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

We consider that FFO, Normalized FFO and FAD are useful to traders as supplemental measures of the efficiency of an fairness REIT. We consider that by excluding the impact of good points or losses from gross sales of properties, depreciation and amortization associated to actual property and impairment fees, that are based mostly on historic prices and could also be of restricted relevance in evaluating present efficiency, FFO can facilitate comparisons of working efficiency between intervals and amongst different fairness REITs. We additional consider that Normalized FFO offers helpful data to traders, analysts and our administration as a result of it permits them to match our working efficiency to the working efficiency of different actual property firms and between intervals on a constant foundation with out having to account for variations not associated to our operations. For instance, we consider that excluding the early extinguishment of debt and different miscellaneous non-comparable objects from FFO permits traders, analysts and our administration to evaluate the sustainability of working efficiency in future intervals as a result of these prices don’t have an effect on the longer term operations of the properties. In some instances, we offer details about recognized non-cash parts of FFO and Normalized FFO as a result of it permits traders, analysts and our administration to evaluate the influence of these objects.

INCOME FROM PROPERTY OPERATIONS, EXCLUDING DEFERRALS AND PROPERTY MANAGEMENT. We outline Revenue from property operations, excluding deferrals and property administration as rental revenue, membership subscriptions and improve gross sales, utility and different revenue much less property and rental house working and upkeep bills, actual property taxes, gross sales and advertising and marketing bills, excluding property administration and the GAAP deferral of membership improve gross sales upfront funds and membership gross sales commissions, internet. For comparative functions, we current unhealthy debt expense inside Property working, upkeep and actual property taxes within the present and prior intervals. We consider that this Non-GAAP monetary measure is useful to traders and analysts as a measure of the working outcomes of our properties.

The next desk reconciles Internet revenue accessible for Widespread Stockholders to Revenue from property operations:

		Quarters Ended December 31,								Years Ended December 31,
(quantities in hundreds)		2022				2021				2022				2021
Internet revenue accessible for Widespread Stockholders		$	73,031			$	65,546			$	284,611			$	262,462
Redeemable perpetual most well-liked inventory dividends			8				8				16				16
Revenue allotted to non-controlling pursuits – Widespread OP Items			3,635				3,286				14,198				13,522
Fairness in revenue of unconsolidated joint ventures			(474	)			(1,095	)			(3,363	)			(3,881	)
Revenue earlier than fairness in revenue of unconsolidated joint ventures			76,200				67,745				295,462				272,119
(Achieve)/loss on sale of actual property and impairment, internet (1)			(3,747	)			—				—				59
Membership improve gross sales upfront funds, deferred, internet			3,475				3,945				21,703				25,079
Gross revenues from house gross sales, brokered resales and ancillary providers (2)			(35,242	)			(42,467	)			(180,179	)			(152,517	)
Curiosity revenue			(2,084	)			(1,702	)			(7,430	)			(7,016	)
Revenue from different investments, internet			(1,633	)			(1,159	)			(8,553	)			(4,555	)
Membership gross sales commissions, deferred, internet			(450	)			(670	)			(3,196	)			(5,075	)
Property administration			18,110				17,024				74,083				65,979
Depreciation and amortization			49,625				50,317				202,362				188,444
Price of house gross sales, brokered resales and ancillary providers (2)			27,118				35,081				139,012				120,623
Residence promoting bills and ancillary working bills (2)			6,175				5,949				27,321				23,538
Normal and administrative (2)			10,022				8,983				44,857				39,576
Casualty-related fees/(recoveries), internet (3)			—				—				—				—
Different bills (2)			1,769				1,398				8,646				4,241
Early debt retirement			—				—				1,156				2,784
Curiosity and associated amortization			31,286				27,951				116,562				108,718
Revenue from property operations, excluding deferrals and property administration			180,624				172,395				731,806				681,997
Membership improve gross sales upfront funds, and membership gross sales commissions, deferred, internet			(3,025	)			(3,275	)			(18,507	)			(20,004	)
Property administration			(18,110	)			(17,024	)			(74,083	)			(65,979	)
Revenue from property operations		$	159,489			$	152,096			$	639,216			$	596,014

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) AND ADJUSTED EBITDAre. We outline EBITDAre as internet revenue or loss excluding curiosity revenue and expense, revenue taxes, depreciation and amortization, good points or losses from gross sales of properties, impairments fees, and changes to mirror our share of EBITDAre of unconsolidated joint ventures. We compute EBITDAre in accordance with our interpretation of the requirements established by NAREIT, which will not be similar to EBITDAre reported by different REITs that don’t outline the time period in accordance with the present NAREIT definition or that interpret the present NAREIT definition in a different way than we do. We obtain non-refundable upfront funds from membership improve contracts. In accordance with GAAP, the non-refundable upfront funds and associated commissions are deferred and amortized over the estimated buyer life. Though the NAREIT definition of EBITDAre doesn’t handle the therapy of non-refundable upfront funds, we consider that it’s applicable to regulate for the influence of the deferral exercise in our calculation of EBITDAre.

We outline Adjusted EBITDAre as EBITDAre excluding non-operating revenue and expense objects, similar to good points and losses from early debt extinguishment, together with prepayment penalties and defeasance prices, transaction/pursuit prices and different miscellaneous non-comparable objects.

We consider that EBITDAre and Adjusted EBITDAre could also be helpful to an investor in evaluating our working efficiency and liquidity as a result of the measures are broadly used to measure the working efficiency of an fairness REIT.

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1.	Displays a $1.7 million discount to the carrying worth of sure property because of Hurricane Ian and insurance coverage restoration income of $5.4 million for the quarter ended December 31, 2022. Displays a $5.4 million discount to the carrying worth of sure property and insurance coverage restoration income of $5.4 million because of Hurricane Ian for the yr ended December 31, 2022.
2.	Prior interval quantities have been reclassified to evolve to the present interval presentation.
3.	Casualty-related fees/(recoveries), internet consists of particles elimination and cleanup prices associated to Hurricane Ian of $40.6 million and insurance coverage restoration income of $40.6 million for the quarter and yr ended December 31, 2022.

The next desk reconciles Consolidated internet revenue to EBITDAre and Adjusted EBITDAre:

		Quarters Ended December 31,								Years Ended December 31,
(quantities in hundreds)		2022				2021				2022				2021
Consolidated internet revenue		$	76,674			$	68,840			$	298,825			$	276,000
Curiosity revenue			(2,084	)			(1,702	)			(7,430	)			(7,016	)
Membership improve gross sales upfront funds, deferred, internet			3,475				3,945				21,703				25,079
Membership gross sales commissions, deferred, internet			(450	)			(670	)			(3,196	)			(5,075	)
Actual property depreciation and amortization			49,625				50,317				202,362				188,444
Different depreciation and amortization			1,346				765				4,619				2,927
Curiosity and associated amortization			31,286				27,951				116,562				108,718
(Achieve)/loss on sale of actual property and impairment, internet (1)			(3,747	)			—				—				59
Changes to our share of EBITDAre of unconsolidated joint ventures			1,637				612				5,484				1,390
EBITDAre			157,762				150,058				638,929				590,526
Early debt retirement			—				—				1,156				2,784
Transaction/pursuit prices (2)			423				598				3,807				598
Lease termination bills (3)			1,046				—				3,119				—
Adjusted EBITDAre		$	159,231			$	150,656			$	647,011			$	593,908

CORE. The Core properties embody properties we owned and operated throughout all of 2021 and 2022. We consider Core is a measure that’s helpful to traders for annual comparability because it removes the fluctuations related to acquisitions, tendencies and vital transactions or distinctive conditions.

NON-CORE. The Non-Core properties embody properties that weren’t owned and operated throughout all of 2021 and 2022. This consists of, however just isn’t restricted to, six RV communities and eleven marinas acquired throughout 2021, one membership RV group and three RV communities acquired throughout 2022 and our Westwinds MH group and an adjoining purchasing heart. The bottom leases with respect to Westwinds and the adjoining purchasing heart terminated on August 31, 2022. The Non-Core properties additionally embody Fort Myers Seaside, Gulf Air, Pine Island, and Ramblers Relaxation.

INCOME FROM RENTAL OPERATIONS, NET OF DEPRECIATION. We use Revenue from rental operations, internet of depreciation as a substitute measure to guage the working outcomes of our house rental program. Revenue from rental operations, internet of depreciation, represents revenue from rental operations much less depreciation expense on rental properties. We consider this measure is significant for traders because it offers an entire image of the house rental program working outcomes, together with the influence of depreciation, which impacts our house rental program funding selections.

NON-REVENUE PRODUCING IMPROVEMENTS. Represents capital expenditures that don’t immediately end in elevated income or expense financial savings and are primarily comprised of widespread space enhancements, furnishings and mechanical enhancements.

FIXED CHARGES. Mounted fees encompass curiosity expense, amortization of be aware premiums and debt issuance prices.

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1.	Displays a $1.7 million discount to the carrying worth of sure property because of Hurricane Ian and insurance coverage restoration income of $5.4 million for the quarter ended December 31, 2022. Displays a $5.4 million discount to the carrying worth of sure property and insurance coverage restoration income of $5.4 million because of Hurricane Ian for the yr ended December 31, 2022.
2.	Represents transaction/pursuit prices associated to unconsummated acquisitions included in Different bills within the Consolidated Statements of Revenue on web page 6.
3.	Represents non-operating bills related to the Westwinds floor leases that terminated on August 31, 2022.

 

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Enterprise Wire 2023