What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-29 compared with 2025-07-29 · 124 added, 115 removed, 456 unchanged (34% of the section changed)

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We are a fully integrated owner of lifestyle-oriented properties (“Properties”) consisting of property operations and home sales and rental operations primarily within manufactured home (“MH”) and recreational vehicle (“RV”) communities and marinas.

As of June 30, 2025, we owned or had an ownership interest in a portfolio of 455 Properties located throughout the United States and Canada containing 173,340 individual developed areas (“Sites”).

As of September 30, 2025, we owned or had an ownership interest in a portfolio of 455 Properties located throughout the United States and Canada containing 173,341 individual developed areas (“Sites”).

These Properties are located in 35 states and British Columbia.

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We also generate revenue from customers renting our marina dry storage.

Additionally, we have interests in joint venture Properties for which revenue is classified as Equity in income of unconsolidated joint ventures on the Consolidated Statements of Income and Comprehensive Income.

Additionally, we have interests in joint venture Properties for which revenue is classified as Equity in income/(loss) of unconsolidated joint ventures on the Consolidated Statements of Income and Comprehensive Income.

Management’s Discussion and Analysis (continued)

The following table shows the breakdown of our Sites by type (amounts are approximate):

Total Sites as of June 30, 2025

Total Sites as of September 30, 2025

MH Sites 73,200

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Joint Ventures (2)

Total 173,300

_________________________

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(2) Includes approximately 2,100 annual Sites and 1,800 transient Sites.

(3) Total does not foot due to rounding.

In our Home Sales and Rentals Operations business, our revenue streams include home sales, home rentals and brokerage services and ancillary activities.

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Results Overview

(amounts in thousands) Quarters Ended June 30,

(amounts in thousands) Quarters Ended September 30,

2025 2024 $ Change % Change (1)

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Normalized FFO per fully diluted Common Share and OP Unit $ 0.75 $ 0.72 $ 0.03 4.6 %

Six Months Ended June 30,

Nine Months Ended September 30,

2025 2024 $ Change % Change (1)

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Calculations prepared using actual results without rounding.

Core property operating revenues increased 3.5% and Core income from property operations, excluding property management increased 6.4% for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024.

Core property operating revenues increased 3.1% and Core income from property operations, excluding property management, increased 5.3% for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024.

Management’s Discussion and Analysis (continued)

We continue to focus on the quality of occupancy growth by increasing the number of manufactured homeowners in our Core Portfolio.

Our Core Portfolio average occupancy includes both homeowners and renters in our MH communities and was 94.3% for the quarter ended June 30, 2025 and 94.9% for each of the quarters ended December 31, 2024 and June 30, 2024.

During the quarter ended June 30, 2025, our Core Portfolio occupancy decreased by 40 sites, which included a decrease in homeowner occupancy of 127 sites and an increase in rental occupancy of 87 sites compared to March 31, 2025.

While we continue to focus on increasing the number of manufactured homeowners in our Core Portfolio, we also believe renting our vacant homes represents an attractive source of occupancy and an opportunity to potentially convert the renter to a new homebuyer in the future.

We continue to expect there to be fluctuations in the sources of occupancy depending on local market conditions, availability of vacant sites and success with converting renters to homeowners.

As of June 30, 2025, we had 2,005 occupied rental homes in our Core MH communities.

RV and marina base rental income in our Core Portfolio increased 0.7% for the quarter ended June 30, 2025, compared to the same period in 2024, driven primarily by an increase in Annual RV rental income.

Core RV and marina base rental income from annuals represents 76.1% of total Core RV and marina base rental income and increased 3.7% for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, due to a 6.2% increase in rate, offset by a decline of 2.5% in occupancy.

Core seasonal and transient RV and marina base rental income decreased 6.5% and 8.2%, respectively, for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024 due to returning supply following a period of weather-related disruption and a moderation in demand due in part to cooler weather and elevated levels of precipitation in the Northern and South Central United States that led to fewer transient stays.

We closed 117 new home sales during the quarter ended June 30, 2025 compared to 255 new home sales during the quarter ended June 30, 2024, a decrease of 54.1%.

The decrease in new home sales during the quarter ended June 30, 2025 was driven by a moderation in demand, primarily in the Florida market, resulting in fewer homes being sold, and a change in overall sales mix, resulting in a higher volume of lower priced homes being sold, this quarter as compared to the quarter ended June 30, 2024.

Our gross investment in real estate increased $112.8 million to $8,028.5 million as of June 30, 2025 from $7,915.7 million as of December 31, 2024, primarily due to capital improvements during the six months ended June 30, 2025.

The following chart lists the Properties acquired from January 1, 2024 through June 30, 2025 and Sites added through expansion opportunities at our existing Properties:

While we continue to focus on increasing the number of manufactured homeowners in our Core Portfolio, we also believe that renting our vacant homes represents an attractive source of occupancy and an opportunity to potentially convert the renter to a new homebuyer in the future.

We continue to expect there to be fluctuations in the sources of occupancy gains depending on local market conditions, availability of vacant sites and success with converting renters to homeowners.

Our Core Portfolio average occupancy includes both homeowners and renters in our MH communities and was 94.3% for the quarter ended September 30, 2025, 95.0% for the quarter ended September 30, 2024 and 94.9% for the quarter ended December 31, 2024.

During the quarter ended September 30, 2025, our Core Portfolio occupancy increased by 4 sites, which included an increase in rental occupancy of 86 sites and a decrease in homeowner occupancy of 82 sites compared to June 30, 2025.

As of September 30, 2025, we had 2,091 occupied rental homes in our Core MH communities.

RV and marina base rental income in our Core Portfolio decreased 0.4% for the quarter ended September 30, 2025, compared to the same period in 2024, driven primarily by a decrease in Core Seasonal and Transient RV rental income, partially offset by an increase in Core Annual RV rental income.

Core Seasonal and Core Transient RV and marina base rental income decreased 14.5% and 8.1%, respectively, for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024 due to returning competitor supply following a period of weather-related disruption, a moderation in demand, and a loss of Canadian customers in the Northeastern United States that led to fewer seasonal and transient stays.

Core RV and marina base rental income from annuals represents 71.0% of total Core RV and marina base rental income and increased 3.9% for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024, due to a 6.0% increase in rate, offset by a 2.1% decline in occupancy since the quarter ended September 30, 2024.

We have increased Core Annual RV occupancy by approximately 475 sites during the quarter ended September 30, 2025.

We closed 119 new home sales during the quarter ended September 30, 2025 compared to 174 new home sales during the quarter ended September 30, 2024.

The decrease in new home sales during the quarter ended September 30, 2025 was driven by a moderation in demand, primarily in the Florida market, resulting in fewer homes being sold this quarter as compared to the quarter ended September 30, 2024.

Our gross investment in real estate increased $192.9 million to $8,108.6 million as of September 30, 2025 from $7,915.7 million as of December 31, 2024, primarily due to capital improvements during the nine months ended September 30, 2025.

The following chart lists the Properties acquired from January 1, 2024 through September 30, 2025 and Sites added through expansion opportunities at our existing Properties:

Location Type of Property Transaction Date Sites

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Sites added (reconfigured) in 2025 140

Total Sites as of June 30, 2025 (1)

Total Sites as of September 30, 2025 (1)

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Management’s Discussion and Analysis (continued)

The following table reconciles net income available for Common Stockholders to income from property operations for the quarters and six months ended June 30, 2025 and 2024:

Quarters Ended June 30, Six Months Ended June 30,

The following table reconciles Net income available for Common Stockholders to Income from property operations for the quarters and nine months ended September 30, 2025 and 2024:

Quarters Ended September 30, Nine Months Ended September 30,

(amounts in thousands)

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711 1,402 2,530 3,881

Early debt retirement — 30 — 30

Interest and related amortization 33,659 36,497 96,995 106,077

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_____________________

(1) Casualty-related charges/(recoveries), net for the quarter ended September 30, 2025 includes $3.7 million for reimbursement of capital expenditures.

Casualty-related charges/(recoveries), net for the nine months ended September 30, 2025 includes debris removal and cleanup costs related to hurricane events of $1.0 million and insurance recovery revenue of $5.1 million, including $4.3 million for reimbursement of capital expenditures.

(2) Prior period amounts have been reclassified to conform to the current period presentation.

(2) Casualty-related charges/(recoveries), net for the quarter ended June 30, 2025 includes debris removal and cleanup costs related to hurricane events of $0.3 million and insurance recovery revenue of $0.8 million, including $0.6 million for reimbursement of capital expenditures.

Casualty-related charges/(recoveries), net for the six months ended June 30, 2025 includes debris removal and cleanup costs related to hurricane events of $1.1 million and insurance recovery revenue of $1.5 million, including $0.6 million for reimbursement of capital expenditures.

The following table presents a calculation of FFO available for Common Stock and OP Unitholders and Normalized FFO available for Common Stock and OP Unitholders for the quarters and six months ended June 30, 2025 and 2024:

Quarters Ended June 30, Six Months Ended June 30,

Management’s Discussion and Analysis (continued)

Quarters Ended September 30, Nine Months Ended September 30,

(amounts in thousands)

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Deferred income tax benefit — — — (239)

Early debt retirement — 30 — 30

Transaction/pursuit costs and other — — — 383

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Results of Operations

This section discusses the comparison of our results of operations for the quarters and six months ended June 30, 2025 and 2024 and our operating activities, investing activities and financing activities for the six months ended June 30, 2025 and 2024.

This section discusses the comparison of our results of operations for the quarters and nine months ended September 30, 2025 and 2024 and our operating activities, investing activities and financing activities for the nine months ended September 30, 2025 and 2024.

Our Core Portfolio consists of our Properties owned and operated during all of 2024 and 2025.

Our Non-Core Portfolio includes all Properties that were not owned and operated during all of 2024 and 2025, including six properties in Florida impacted by Hurricane Ian and two properties in California that were impacted by storm and flooding events.

For the comparison of our results of operations for the quarters and six months ended June 30, 2024 and June 30, 2023 and discussion of our operating activities, investing activities and financing activities for the six months ended June 30, 2024 and June 30, 2023, refer to Part I.

Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on July 30, 2024.

Comparison of the Quarter Ended June 30, 2025 to the Quarter Ended June 30, 2024

For the comparison of our results of operations for the quarters and nine months ended September 30, 2024 and September 30, 2023 and discussion of our operating activities, investing activities and financing activities for the nine months ended September 30, 2024 and September 30, 2023, refer to Part I.

Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, filed with the SEC on October 30, 2024.

Comparison of the Quarter Ended September 30, 2025 to the Quarter Ended September 30, 2024

Income from Property Operations

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Core Portfolio Total Portfolio

Quarters Ended June 30, Quarters Ended June 30,

Quarters Ended September 30, Quarters Ended September 30,

(amounts in thousands) 2025 2024 Variance %

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Property operating revenues 358,830 347,886 10,944 3.1 % 365,127 352,867 12,260 3.5 %

Utilities expense 38,164 38,013 151 0.4 % 39,182 38,596 586 1.5 %

Utility expense 44,786 42,495 2,291 5.4 % 45,830 42,998 2,832 6.6 %

Payroll 31,512 31,564 (52) (0.2) % 32,502 32,247 255 0.8 %

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1) MH base rental income, 2) Rental home income, 3) RV and marina base rental income and 4) Utility income, which is calculated by subtracting Other income on the Consolidated Statements of Income and Comprehensive Income from Utility and other income in this table.

The difference between the sum of the total portfolio income items and Rental income on the Consolidated Statements of Income and Comprehensive Income is bad debt expense, which is presented in Property operating and maintenance expense in this table.

(2) Beginning in the first quarter of 2025, membership upgrade product offerings include two- to four-year term subscription products, which are recognized in Annual membership subscriptions.

Prices for two-year products range between $4,000 to $8,000 and between approximately $7,000 to $14,000 for the four-year product, which results in approximately $2,500 to $3,000 of earned revenue on an annual basis.

(3) Membership upgrade revenue is net of deferrals of $3.1 million and $4.7 million for the quarters ended June 30, 2025 and 2024, respectively.

(3) Membership upgrade revenue is net of deferrals of $3.1 million and $5.9 million for the quarters ended September 30, 2025 and 2024, respectively.

(4) Includes bad debt expense for all periods presented.

(5) Membership sales and marketing expense is net of sales commission deferrals of $0.9 million for the quarters ended June 30, 2025 and 2024.

(5) Membership sales and marketing expense is net of sales commission deferrals of $0.9 million and $1.2 million for the quarters ended September 30, 2025 and 2024, respectively.

(6) See Part I.

Management’s Discussion and Analysis—Non-GAAP Financial Measures for definitions and reconciliations of these Non-GAAP measures to Net Income available for Common Shareholders.

Total Portfolio Income from property operations for the quarter ended June 30, 2025 increased $9.7 million, or 5.8%, from the quarter ended June 30, 2024 driven by an increase of $10.3 million, or 6.3%, from our Core Portfolio, offset by a decrease of $0.6 million from our Non-Core Portfolio.

The increase in Income from property operations from our Core Portfolio was primarily due to higher Property operating revenues, primarily in MH base rental income and Utility and other income.

Property operating expenses for the quarter ended June 30, 2025 were comparable to the same period in 2024.

Total Portfolio Income from property operations for the quarter ended September 30, 2025 increased $9.9 million, or 5.6%, from the quarter ended September 30, 2024 driven by an increase of $10.1 million, or 5.8%, from our Core Portfolio, offset by a decrease of $0.2 million from our Non-Core Portfolio.

The increase in Income from property operations from our

Management’s Discussion and Analysis (continued)

Core Portfolio was primarily due to higher Property operating revenues, primarily in MH base rental income and Utility and other income, and lower Membership sales and marketing expense, partially offset by higher Utility expense.

Property Operating Revenues

MH base rental income in our Core Portfolio for the quarter ended June 30, 2025 increased $9.7 million, or 5.5%, from the quarter ended June 30, 2024, which reflects 5.8% growth from rate increases offset by a decrease of 0.3% in occupancy.

The average monthly base rental income per Site in our Core Portfolio increased to approximately $904 for the quarter ended June 30, 2025 from approximately $854 for the quarter ended June 30, 2024.

The average occupancy for our Core Portfolio was 94.3% and 94.9% for the quarters ended June 30, 2025 and 2024, respectively.

MH base rental income in our Core Portfolio for the quarter ended September 30, 2025 increased $9.8 million, or 5.5%, from the quarter ended September 30, 2024, which reflects 6.0% growth from rate increases offset by a 0.5% decrease in occupancy.

The average monthly MH base rental income per Site in our Core Portfolio increased to approximately $912 for the quarter ended September 30, 2025 from approximately $861 for the quarter ended September 30, 2024.

The average occupancy for our Core Portfolio was 94.3% and 95.0% for the quarters ended September 30, 2025 and 2024, respectively.

RV and marina base rental income is comprised of the following:

Core Portfolio Total Portfolio

Quarters Ended June 30, Quarters Ended June 30,

Quarters Ended September 30, Quarters Ended September 30,

(amounts in thousands) 2025 2024 Variance %

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RV and marina base rental income $ 110,798 $ 111,212 $ (414) (0.4) % $ 115,428 $ 113,357 $ 2,071 1.8 %

RV and marina base rental income in our Core Portfolio for the quarter ended June 30, 2025 increased $0.7 million, or 0.7%, from the quarter ended June 30, 2024 driven by an increase in Annual RV and marina base rental income.

The increase in Annual RV and marina base rental income of 3.7% was partially offset by decreases in Seasonal and Transient RV and marina base rental income of 6.5% and 8.2%, respectively, for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024.

The decreases in Seasonal and Transient RV and marina base rental income were primarily due to returning supply following a period of weather-related disruption and a moderation in demand due in part to cooler weather and elevated levels of precipitation in the Northern and South Central United States that led to fewer transient stays.

Utility and other income in our Core Portfolio for the quarter ended June 30, 2025 increased $1.5 million, or 4.9%, from the quarter ended June 30, 2024.

The increase was primarily due to a $1.0 million and $0.4 million increase in utility income and pass-through income, respectively.

The utility recovery rate (utility income divided by utility expenses) for the quarters ended June 30, 2025 and 2024 was approximately 49% and 46%, respectively.

RV and marina base rental income in our Core Portfolio for the quarter ended September 30, 2025 decreased $0.4 million, or 0.4%, from the quarter ended September 30, 2024 driven by decreases in Seasonal and Transient RV and marina base rental income of 14.5% and 8.1%, respectively.

The decreases in Core Seasonal RV and marina base rental income was primarily due to returning competitor supply and a moderation in demand.

The decrease in Core Transient RV and marina base rental income was primarily due to returning competitor supply following a period of weather-related disruption, a moderation in demand, and a loss of Canadian guests.

The decreases in Core Seasonal and Transient RV and marina income were partially offset by an increase in Core Annual RV and marina base rental income of 3.9%.

Utility and other income in our Core Portfolio for the quarter ended September 30, 2025 increased $1.3 million, or 3.8%, from the quarter ended September 30, 2024.

The increase was primari ly due to a $1.5 million and $0.4 million incre ase in utility income and pass-through income, respectively, partially offset by a decrease of $0.6 million in insurance proceeds.

The utility recovery rate (utility income divided by utility expenses) for the quarters ended September 30, 2025 and 2024 was approximately 48% and 47%, respectively.

Property Operating Expenses

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended June 30, 2025 were in line with the quarter ended June 30, 2024, driven by increases in Repairs and maintenance expenses of $2.0 million, Real estate taxes of $1.5 million, and Utilities expense of $0.2 million, partially offset by a decrease in Membership sales and marketing of $2.1 million, Insurance and other of $1.2 million, and Rental home operating and maintenance of $0.3 million.

The increase in Repairs and maintenance expenses is primarily due to higher lawn and common area maintenance expense, contract repairs and extraordinary repairs and maintenance expenses.

The increase in Real estate taxes was primarily driven by higher real estate taxes in Florida.

The increase in Utilities expense is due to increases in trash, water and electric expense.

The decrease in Membership sales and marketing expense was driven by a decrease in allowances for credit losses related to financed membership products that are no longer being offered beginning in the first quarter of 2025.

The decrease in Insurance and other expenses was primarily driven by a decrease in administrative, insurance and rental home expense.

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended September 30, 2025 increased $0.8 million , or 0.5%, from the quarter ended September 30, 2024, driven by increases in Utility expense o f $2.3 million, Insurance and other of $0.6 million and Repairs and maintenance of $0.5 million, partially offset by a decrease in Membership sales and marketin g of $2.2 million and Real estate taxes of $0.2 million .

The increase in Utility expense was due to increases in sewer, water and trash expense.

The increase in Insurance and other was primarily driven by an increase in miscellaneous expense and bad debt expense, partially offset by a decrease in insurance expense.

The increase in Repairs and maintenance was primarily due to higher lawn and common area maintenance expense and contract repairs, partially offset by a decrease in extraordinary repairs and maintenance expenses.

The decrease in Membership sales and marketing expense was driven by a decrease in commissions and allowances for credit losses related to financed membership products that are no longer being offered beginning in the first quarter of 2025.

The decrease in Real estate taxes was primarily driven by lower real estate taxes in Florida.

Management’s Discussion and Analysis (continued)

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The following table summarizes certain financial and statistical data for our Home Sales and Other Operations:

Quarters Ended June 30,

Quarters Ended September 30,

(amounts in thousands, except home sales volumes) 2025 2024 Variance %

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Brokered home resales 113 135 (22) (16.3) %

Gross revenues from new home sales decreased $13.3 million and Cost of new home sales decreased $10.7 million during the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 as a result of a moderation in demand, primarily in the Florida market, resulting in fewer homes being sold, and a change in overall sales mix, resulting in a higher volume of lower priced homes being sold, during the quarter ended June 30, 2025 as compared to the quarter ended June 30, 2024.

Gross revenues from new home sal es decreased $5.6 million and Cost of new home sales decreased $4.3 million dur ing the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024 as a result of a change in overall sales mix, resulting in a higher percentage of lower priced homes being sold, primarily in the Florida market, during the quarter ended September 30, 2025 as compared to the quarter ended September 30, 2024.

Rental Operations

The following table summarizes certain financial and statistical data for our MH Rental Operations:

Quarters Ended June 30,

Quarters Ended September 30,

(amounts in thousands, except rental unit volumes)

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(1) Consists of Site rental income and home rental income.

Approximately $5.2 million for the quarters ended June 30, 2025 and 2024 of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table.

Approximat ely $5.5 million an d $5.1 million for the quarters ended September 30, 2025 and 2024 of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table.

The remainder of home rental income is included in Rental home income in our Core Portfolio Income from Property Operations table.

(2) Presented in Depreciation and amortization in the Consolidated Statements of Income and Comprehensive Income.

Rental operations revenues were $0.2 million, or 1.8%, higher during the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 primarily due to increases in rate.

Rental operations revenues w ere $0.6 million, or 6.8%, higher during the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024 primarily due to an increase in the number of occupied rentals.

Management’s Discussion and Analysis (continued)

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The following table summarizes Other income and expenses, net:

Quarters Ended June 30,

Quarters Ended September 30,

(amounts in thousands, expenses shown as negative)

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Other expenses (711) (1,402) 691 49.3 %

Early debt retirement — (30) 30 100.0 %

Interest and related amortization (33,659) (36,497) 2,838 7.8 %

Total other income and expenses, net $ (90,732) $ (93,515) $ 2,783 3.0 %

Total Other income and expenses, net decreased $1.7 million for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 primarily due to lower Interest and related amortization and Other expenses, partially offset by higher General and administrative expense and Depreciation and amortization.

Total Other income and expenses, net dec reased $2.8 million for the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024 primarily due to lower Interest and related amortization, Other expenses and General and Administrative expense, and higher Interest income, partially offset by higher Depreciation and amortization.

Casualty-related charges/(recoveries), net

During the quarters ended June 30, 2025 and 2024, we recognized expenses of approximately $0.3 million and $0.7 million, respectively, related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accruals of approximately $0.2 million and $0.7 million related to the expenses incurred during the same periods.

During the quarters ended June 30, 2025 and 2024, we also recognized excess insurance recovery revenue of approximately $0.6 million and $6.2 million, respectively, for reimbursement of capital expenditures related to Hurricane Ian.

During the quarter ended September 30, 2024, we recognized expenses of approximately $2.3 million related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accruals of approximately $1.3 million related to the expenses incurred during the same period.

During the quarters ended September 30, 2025 and 2024, we also recognized excess insurance recovery revenue of approximately $3.7 million and $0.5 million, respectively, for reimbursement of capital expenditures related to Hurricane Ian.

The debris and cleanup costs and offsetting recovery accrual and reimbursement of capital expenditures are reflected in Casualty-related charges/(recoveries), net on the Consolidated Statements of Income and Comprehensive Income.

Gain/(Loss) on sale of real estate and impairment, net

Gain/(Loss) on sale of real estate and impairment, net was $1.8 million lower during the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024, primarily due to a write down of certain assets of $1.8 million as a result of Hurricane Helene in 2024.

Equity in income of unconsolidated joint ventures

Equity in income of unconsolidated joint ventures was $0.6 million lower during the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 primarily due to lower joint venture income and higher depreciation on joint ventures.

Equity in income of unconsolidated joint ventures was $4.2 million lower during the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024 primarily due to decreases in distributions from unconsolidated joint ventures that exceeded our basis in the unconsolidated joint ventures and decreases in net income at certain of our unconsolidated joint ventures.

Management’s Discussion and Analysis (continued)

Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Income from Property Operations

The following table summarizes certain financial and statistical data for the Core Portfolio and the total portfolio for the six months ended June 30, 2025 and 2024:

The following table summarizes certain financial and statistical data for the Core Portfolio and the total portfolio for the nine months ended September 30, 2025 and 2024:

Core Portfolio Total Portfolio

Six Months Ended June 30, Six Months Ended June 30,

Nine Months Ended September 30, Nine Months Ended September 30,

(amounts in thousands) 2025 2024 Variance %

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Property operating revenues 1,058,463 1,026,052 32,411 3.2 % 1,080,227 1,045,146 35,081 3.4 %

Utilities expense 77,625 76,708 917 1.2 % 79,451 77,798 1,653 2.1 %

Utility expense 122,411 119,203 3,208 2.7 % 125,281 120,796 4,485 3.7 %

Payroll 89,921 90,246 (325) (0.4) % 92,588 92,055 533 0.6 %

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(2) Beginning in the first quarter of 2025, membership upgrade product offerings include two- to four-year term subscription products, which are recognized in Annual membership subscriptions.

(3) Membership upgrade revenue is net of deferrals of $4.0 million and $8.3 million for the six months ended June 30, 2025 and 2024, respectively.

(3) Membership upgrade revenue is net of deferrals of $7.1 million and $14.2 million for the nine months ended September 30, 2025 and 2024, respectively.

(4) Includes bad debt expense for all periods presented.

(5) Membership sales and marketing expense is net of sales commission deferrals of $1.1 million and $1.3 million the six months ended June 30, 2025 and 2024, respectively.

(5) Membership sales and marketing expense is net of sales commission deferrals of $2.0 million and $2.4 million the nine months ended September 30, 2025 and 2024, respectively.

(6) See Part I.

Management’s Discussion and Analysis—Non-GAAP Financial Measures for definitions and reconciliation of these Non-GAAP measures to Net Income available for Common Shareholders.

Total Portfolio Income from property operations for the six months ended June 30, 2025 increased $15.5 million, or 4.3%, from the same period in 2024 driven by an increase of $17.4 million, or 5.0%, from our Core Portfolio, offset by a decrease of $1.9 million from our Non-Core Portfolio.

The increase in Income from property operations from our Core Portfolio was primarily due to higher Property operating revenues, primarily in MH base rental income and Utility and other income, partially offset by an increase in Repairs and maintenance and Real estate taxes.

Total Portfolio Income from property operations for the nine months ended September 30, 2025 increased $25.4 million, or 4.8%, from the same period in 2024 driven by an increase of $27.4 million, or 5.3%, from our Core Portfolio, offset by a decrease of $2.0 million from our Non-Core Portfolio .

The increase in Income from property operations from our Core Portfolio was primarily due to higher Property operating revenues, primarily in MH base rental income and Utility and other income, and lower Membership sales and marketing expense, partially offset by an increase in Repairs and maintenance, Utility expense and Real estate taxes.

Property Operating Revenues

MH base rental income in our Core Portfolio for the six months ended June 30, 2025 increased $19.2 million, or 5.5%, from the same period in 2024, which reflects 5.7% growth from rate increases and a decline in occupancy of 0.2%.

The average monthly base rental income per Site in our Core Portfolio increased to approximately $899 for the six months ended June 30, 2025 from approximately $851 for the six months ended June 30, 2024.

The average occupancy for the Core Portfolio was 94.4% and 94.9% for the six months ended June 30, 2025 and 2024, respectively.

MH base rental income in our Core Portfolio for the nine months ended September 30, 2025 increased $29.1 million, or 5.5%, from the same period in 2024, which reflects 5.8% growth from rate increases and a decline in occupancy of 0.3%.

Th e average monthly MH base rental income per Site in our Core Portfolio increased to approxi mately $904 for the nine months ended September 30, 2025 from approximately $854 for the nine months ended September 30, 2024.

The average occupancy for the Core Portfolio w as 94.4% a nd 94.9% for the nine months ended September 30, 2025 and 2024, respectively.

Management’s Discussion and Analysis (continued)

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Core Portfolio Total Portfolio

Six Months Ended June 30, Six Months Ended June 30,

Nine Months Ended September 30, Nine Months Ended September 30,

(amounts in thousands)

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RV and marina base rental income $ 328,495 $ 327,946 $ 549 0.2 % $ 343,116 $ 336,887 $ 6,229 1.8 %

RV and marina base rental income in our Core Portfolio for the six months ended June 30, 2025 increased $1.0 million, or 0.4%, from the same period in 2024 due to an increase in Annual RV and marina base rental income of 3.9%, partially offset by decreases in Seasonal and Transient RV and marina base rental income of 5.6% and 8.6%, respectively, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The decreases in Seasonal and Transient RV and marina base rental income were primarily driven by returning competitor supply following a period of weather-related disruption, a return to normalized demand and cooler weather and elevated levels of precipitation in the Northern and South Central United States that contributed to fewer stays in the second quarter.

Utility and other income in our Core Portfolio for the six months ended June 30, 2025 increased $2.7 million, or 4.4%, from the same period in 2024.

The increase was primarily due to an increase in utility income and pass-through income of $1.8 million and $1.0 million, respectively.

The utility recovery rate (utility income divided by utility expenses) for the six months ended June 30, 2025 and 2024 was approximately 48% and 46%, respectively.

RV and marina base rental income in our Core Portfolio for the nine months ended September 30, 2025 increased $0.5 million, or 0.2%, from the s ame period in 2024 due to an increase in Annual RV and marina base ren tal income of 3.9%, partially offset by decreases in Seasonal and Transient RV and marina base rental income of 7.1% and 8.4%, respec tively, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Utility and other i ncome in our Core Portfolio for the nine months ended September 30, 2025 increased $4.0 million, or 4.2%, from the same pe riod in 2024.

The increase was primarily due to an increase in utility income and pass-through income of $3.3 million and $1.4 million, r espectively, partially offset by a decrease in other property income and insurance proceeds.

The utility recovery rate (utility income divided by utility expenses) for the nine months ended September 30, 2025 and 2024 was approximately 48% and 47%, respectively.

Property Operating Expenses

Property operating expenses, excluding property management, in our Core Portfolio for the six months ended June 30, 2025 increased $2.1 million, or 0.7%, from the same period in 2024 driven by increases in Repairs and maintenance expenses, Real estate taxes, and Utilities expense of $3.4 million, $2.1 million, and $0.9 million, respectively, partially offset by decreases in Membership sales and marketing expenses, Rental home operating and maintenance, and Payroll of $3.5 million, $0.5 million, and $0.3 million, respectively.

The increase in Repairs and maintenance expenses was primarily driven by increases in lawn and common area maintenance expenses, contract repairs and extraordinary repairs and maintenance expenses, partially offset by a decrease in maintenance and housekeeping supplies.

Property operating expenses, excluding property management, in our Core Portfolio for the nine months ended September 30, 2025 increased $2.9 million, or 0.6%, from the same period in 2024 driven by increases in Repairs and maintenance, Utility expense and Real estate taxes of $3.8 million, $3.2 million and $1.8 million, respectively, partially offset by a decrease in Membership sales and marketing expenses of $5.7 million.

The increase in Repairs and maintenance was primarily driven by increases in lawn and common area maintenance expenses and contract repairs, partially offset by a decrease in extraordinary repairs and maintenance expenses.

The increase in Utility expense was due to increases in trash, water, sewer and electric expense, partially offset by a decrease in cable expense.

The increase in Real estate taxes was primarily due to an increase in real estate taxes in our Florida portfolio.

The increase in Utilities expense was due to increases in water, trash and electric expense, partially offset by a decrease in cable and sewer expense.

The decrease in Membership sales and marketing expense was primarily driven by a decrease in allowances for credit losses related to financed membership products that beginning in the first quarter of 2025 are no longer being offered.

The decrease in Rental home operating and maintenance expense was primarily driven by a decrease in rental home repairs and maintenance expenses.

The decrease in Payroll expenses was primarily driven by reduced temporary labor and overtime costs.

The decrease in Membership sales and marketing expense was primarily driven by a decrease in commissions and allowances for credit losses related to financed membership products that beginning in the first quarter of 2025 are no longer being offered.

Home Sales and Other

The following table summarizes certain financial and statistical data for Home Sales and Other Operations:

Management’s Discussion and Analysis (continued)

Six Months Ended June 30,

Nine Months Ended September 30,

(amounts in thousands, except home sales volumes)

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Brokered home resales 337 396 (59) (14.9) %

Gross revenues from new home sales decreased $21.5 million and Cost of new home sales decreased $17.6 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 driven by a moderation in demand, primarily in the Florida and Arizona markets, which resulted in fewer homes being sold during the six months ended June 30, 2025, a change in overall sales mix, resulting in a higher volume of lower priced homes being sold, and disruption due to Hurricanes Milton and Helene.

Management’s Discussion and Analysis (continued)

Gross revenues from new home sales decreased $27.2 million and Cost of new home sales decreased $21.9 million during the nine months ended September 30, 2025 com pared to the nine months ended September 30, 2024 driven by a moderation in demand, primarily in the South and West regions, disruption in demand due to hurricane events, and a change in overall sales mix, resulting in a higher percentage of lower priced homes being sold.

Rental Operations

The following table summarizes certain financial and statistical data for MH Rental Operations:

Six Months Ended June 30,

Nine Months Ended September 30,

(amounts in thousands, except rental unit volumes)

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(1) Consists of Site rental income and home rental income in our Core Portfolio.

Approximately $10.2 million and $10.8 million of Site rental income for the six months ended June 30, 2025 and 2024, respectively, are included in MH base rental income within the Core Portfolio Income from Property Operations table.

Approximately $15.7 million and $15.9 million of Site rental income for the nine months ended September 30, 2025 and 2024, respectively, are included in MH base rental income within the Core Portfolio Income from Property Operations table.

The remainder of home rental income is included in Rental home income within the Core Portfolio Income from Property Operations table.

(2) Presented in Depreciation and amortization in the Consolidated Statements of Income and Comprehensive Income.

Rental operations revenues were $0.5 million, or 2.9%, lower during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a net decrease in the number of occupied rentals.

Management’s Discussion and Analysis (continued)

Rental operations revenues were $0.1 million, or 0.2%, higher during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in the number of occupied rentals.

Miscellaneous Other Income and Expenses

The following table summarizes Other income and expenses, net:

Six Months Ended June 30,

Nine Months Ended September 30,

(amounts in thousands, expenses shown as negative)

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(2,530) (3,881) 1,351 34.8 %

Early debt retirement — (30) 30 100.0 %

Interest and related amortization (96,995) (106,077) 9,082 8.6 %

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(1) Prior period amounts have been reclassified to conform to the current period presentation.

Total Other income and expenses, net decreased $6.3 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to lower Interest and related amortization and General and administrative expenses, partially offset by higher Depreciation and amortization.

Total Other income and expenses, net decreased $9.1 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower Interest and related amortization, General and administrative expenses and Other expenses, partially offset by higher Depreciation and amortization and lower Income from other investments, net.

Casualty-related charges/(recoveries), net

During the six months ended June 30, 2025 and 2024, we recognized expenses of approximately $1.1 million and $1.2 million, respectively, related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accruals of $0.8 million and $1.2 million related to the expenses incurred during the same periods.

During the six months ended June 30, 2025 and 2024, we also recognized insurance recovery revenue in excess of expenses for Hurricane Ian of $0.6 million and $21.0 million, respectively, within Casualty-related charges/(recoveries), net.

During the nine months ended September 30, 2025 and 2024, we recognized expenses of approximately $1.0 million and $3.5 million, respectively, related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accruals of $0.8 million and $2.5 million, respectively, related to the expenses incurred during the same periods.

During the nine months ended September 30, 2025 and 2024, we also recognized insurance recovery revenue in excess of expenses for

Management’s Discussion and Analysis (continued)

Hurricane Ian of $4.3 million and $21.5 million, respectively, within Casualty-related charges/(recoveries), net.

Gain/(Loss) on sale of real estate and impairment, net

Gain/(Loss) on sale of real estate and impairment, net was $1.1 million lower during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to a write down of certain assets of $0.7 million related to the discontinuation of certain capital projects in 2025 co mpared to $1.8 million as a result of Hurricane Helene in 2024.

Equity in income of unconsolidated joint ventures

Equity in income of unconsolidated joint ventures was $4.0 million higher during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a distribution from an unconsolidated joint venture that refinanced a secured loan and distributed proceeds, of which $6.2 million exceeded our basis in the joint venture.

Equity in income of unconsolidated joint ventures was $0.2 million lower during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to decreases in net income at certain of our unconsolidated joint ventures.

Management’s Discussion and Analysis (continued)

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On November 1, 2024, we entered into a new ATM equity offering program with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our common stock, par value $0.01 per share, having an aggregate offering price of up to $700.0 million.

As of June 30, 2025, the full capacity of our ATM equity offering program remained available for issuance.

As of June 30, 2025, we had available liquidity in the form of approximately 408.8 million shares of authorized and unissued common stock, par value $0.01 per share, and 10.0 million shares of authorized and unissued preferred stock registered for sale under the Securities Act of 1933, as amended.

As of September 30, 2025, the full capacity of our ATM equity offering program remained available for issuance.

As of September 30, 2025, we had available liquidity in the form of approximately 406.2 million shares of authorized and unissued common stock, par value $0.01 per share, and 10.0 million shares of authorized and unissued preferred stock registered for sale under the Securities Act of 1933, as amended.

We also utilize interest rate swaps to add stability to our interest expense and to manage our exposure to interest rate movements.

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We expect to meet our short-term liquidity requirements, including principal payments, capital improvements and dividend distributions for the next twelve months, generally through available cash, net cash provided by operating activities, issuances of equity under our ATM equity offering program and our LOC.

As of June 30, 2025, our LOC had a borrowing capacity of $409.9 million.

As of September 30, 2025, our LOC had a borrowing capacity of $454.9 million.

We expect to meet certain long-term liquidity requirements, such as scheduled debt maturities, property acquisitions and capital improvements, using long-term collateralized and uncollateralized borrowings including the existing LOC and the issuance of debt securities or the issuance of equity including under our ATM equity offering program.

The following table summarizes our cash flows activity:

For the six months ended June 30,

For the nine months ended September 30,

(amounts in thousands) 2025 2024

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Operating Activities

Net cash provided by operating activities decreased $17.2 million to $324.7 million for the six months ended June 30, 2025 from $341.9 million for the six months ended June 30, 2024.

Net cash provided by operating activities decreased $19.7 million to $471.7 million for the nine months ended September 30, 2025 from $491.4 million for the nine months ended September 30, 2024.

The decrease in net cash provided by operating activities was primarily due to increases in cash outflows related to manufactured homes, net and accounts payable and other liabilities, partially offset by a decrease in cash outflows related to business interruption insurance proceeds, net and an increase in cash inflows related to notes receivable, net.

Management’s Discussion and Analysis (continued)

The following table summarizes our purchase and sale activity of manufactured homes:

For the six months ended June 30,

For the nine months ended September 30,

(amounts in thousands)

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Investing Activities

Net cash used in investing activities increased $52.3 million to $156.9 million for the six months ended June 30, 2025 from $104.6 million for the six months ended June 30, 2024.

The increase was primarily driven by the $56.1 million term loan to RVC.

Net cash used in investing activities increased $71.8 million to $223.7 million for the nine months ended September 30, 2025 from $151.9 million for the nine months ended September 30, 2024.

The increase was primarily driven by the $56.1 million term loan to RVC and decreases in proceeds from insurance claims, net and distributions of capital from unconsolidated joint ventures.

Capital Improvements

The following table summarizes capital improvements:

For the six months ended June 30,

For the nine months ended September 30,

(amounts in thousands) 2025 2024

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(2) Includes enhancements to amenities such as buildings, common areas, swimming pools and replacement of furniture and site amenities.

(3) Includes $13.9 million and $10.4 million of restoration and improvement capital expenditures related to hurricane activity for the six months ended June 30, 2025 and 2024, respectively.

(3) Includes $19.0 million and $12.3 million of restoration and improvement capital expenditures related to hurricane events for the nine months ended September 30, 2025 and 2024, respectively.

(4) Includes capital expenditures to improve the infrastructure required to set manufactured homes.

Financing Activities

Net cash used in financing activities decreased $72.2 million to $159.4 million for the six months ended June 30, 2025 from $231.6 million for the six months ended June 30, 2024.

Net cash used in financing activities decreased $95.8 million to $233.3 million for the nine months ended September 30, 2025 from $329.0 million for the nine months ended September 30, 2024.

The decrease was primarily due to lower net debt repayments of $119.0 million, partially offset by increases in distributions to common stock and OP unit holders of $27.5 million.

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Off-Balance Sheet Arrangements

As of June 30, 2025, we have no off-balance sheet arrangements.

As of September 30, 2025, we have no off-balance sheet arrangements.

Critical Accounting Policies and Estimates

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Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K for a discussion of our critical accounting policies.

There have been no significant changes to our critical accounting policies and estimates during the quarter ended June 30, 2025.

There have been no significant changes to our critical accounting policies and estimates during the quarter ended September 30, 2025.

Management’s Discussion and Analysis (continued)

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis