What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-07-28 compared with 2026-04-28 · 231 added, 78 removed, 330 unchanged (48% of the section changed)

5 unchanged sentences

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 March 31, 2026, we owned or had an ownership interest in a portfolio of 453 Properties located throughout the United States and Canada containing 173,419 individual developed areas (“Sites”).

As of June 30, 2026, we owned or had an ownership interest in a portfolio of 453 Properties located throughout the United States and Canada containing 173,559 individual developed areas (“Sites”).

These Properties are located in 35 states and British Columbia.

21 unchanged sentences

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/(loss) 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 in the Consolidated Statements of Income and Comprehensive Income.

Management’s Discussion and Analysis (continued)

1 unchanged sentence

Total Sites as of

March 31, 2026

June 30, 2026

Seasonal 9,800

2 unchanged sentences

Membership (2)

Total 173,600

_________________________

2 unchanged sentences

Includes approximately 6,000 Sites rented on an annual basis.

(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.

12 unchanged sentences

Results Overview

(amounts in thousands) Quarters Ended March 31,

(amounts in thousands) Quarters Ended June 30,

2026 2025 $ Change % Change (1)

2 unchanged sentences

Normalized FFO per fully diluted Common Share and OP Unit $ 0.74 $ 0.69 $ 0.05 7.7 %

Six Months Ended June 30,

2026 2025 $ Change % Change (1)

Net Income per fully diluted Common Share $ 1.05 $ 0.99 $ 0.06 6.6 %

FFO per fully diluted Common Share and OP Unit $ 1.60 $ 1.52 $ 0.08 5.1 %

Normalized FFO per fully diluted Common Share and OP Unit $ 1.58 $ 1.52 $ 0.06 3.6 %

_____________________

Calculations prepared using actual results without rounding.

For the quarter ended March 31, 2026, property operating revenues in our Core Portfolio increased 3.7% and property operating expenses in our Core Portfolio, excluding property management, increased 1.8% from the same period in 2025, resulting in increased Income from property operations, excluding property management, of 4.9%.

For the quarter ended June 30, 2026, property operating revenues in our Core Portfolio increased 4.9% and property operating expenses in our Core Portfolio, excluding property management, increased 2.9% from the same period in 2025, resulting in increased Income from property operations, excluding property management, of 6.5%.

Management’s Discussion and Analysis (continued)

1 unchanged sentence

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 93.8% for the quarter ended March 31, 2026, 94.4% for the quarter ended March 31, 2025 and 94.0% for the quarter ended December 31, 2025.

The decline in average occupancy compared to the quarter ended March 31, 2025 was primarily driven by 362 expansion sites that were added since March 31, 2025.

During the quarter ended March 31, 2026, our Core Portfolio occupancy increased by 54 sites, which included increases in rental occupancy of 24 sites and homeowner occupancy of 30 sites compared to December 31, 2025.

As of March 31, 2026, we had 2,135 occupied rental homes in our Core MH communities.

RV and marina base rental income in our Core Portfolio decreased 1.4% for the quarter ended March 31, 2026, compared to the same period in 2025, due to an increase in Core Annual RV and marina rental income of 4.2%, offset by decreases in Core Seasonal and Transient RV and marina rental income of 14.8% and 6.9%, respectively.

The increase in Core Annual RV and marina base rental income was driven by a 5.1% increase in rate, offset by a 0.9% decline in occupancy since the quarter ended March 31, 2025.

The decreases in Core Seasonal and Transient RV and marina rental income were driven by a moderation in demand driven in part by the loss of Canadian guests.

We closed 87 new home sales during the quarter ended March 31, 2026 compared to 117 new home sales during the quarter ended March 31, 2025.

The decrease in new home sales during the quarter ended March 31, 2026 was driven by timing of supply of new homes resulting in fewer homes being sold this quarter as compared to the quarter ended March 31, 2025.

Our gross investment in real estate increased $55.6 million to $8,234.3 million as of March 31, 2026 from $8,178.7 million as of December 31, 2025, primarily due to capital improvements during the quarter ended March 31, 2026.

The following chart lists the Properties acquired from January 1, 2025 through March 31, 2026 and Sites added through expansion opportunities at our existing Properties:

Our Core Portfolio average occupancy includes both homeowners and renters in our MH communities and was 93.8% for the quarter ended June 30, 2026, 94.3% for the quarter ended June 30, 2025 and 94.0% for the quarter ended December 31, 2025.

The decline in average occupancy compared to the quarter ended June 30, 2025 was primarily driven by 503 expansion sites that were added since June 30, 2025.

During the quarter ended June 30, 2026, our Core Portfolio occupancy increased by 13 sites, which included increases in rental occupancy of 11 sites and homeowner occupancy of 2 sites compared to March 31, 2026.

As of June 30, 2026, we had 2,146 occupied rental homes in our Core MH communities.

RV and marina base rental income in our Core Portfolio increased 1.8% for the quarter ended June 30, 2026, compared to the same period in 2025, due to an increase in Core Annual RV and marina base rental income of 5.4%, offset by decreases in Core Seasonal and Transient RV and marina base rental income of 11.2% and 8.9%, respectively.

The increase in Core Annual RV and marina base rental income was driven by a 5.3% increase in rate and a 0.1% gain in occupancy since the quarter ended June 30, 2025.

The decreases in Core Seasonal and Transient RV and marina base rental income were primarily due to lower occupancy.

We closed 98 new home sales during the quarter ended June 30, 2026 compared to 117 new home sales during the quarter ended June 30, 2025.

Our gross investment in real estate increased $234.3 million to $8,413.0 million as of June 30, 2026 from $8,178.7 million as of December 31, 2025, primarily due to the consolidation of our investments in certain RVC joint ventures of $103.3 million and capital improvements during the six months ended June 30, 2026.

The following chart lists the Properties acquired from January 1, 2025 through June 30, 2026 and Sites added through expansion opportunities at our existing Properties:

Location Type of Property Transaction Date Sites

6 unchanged sentences

Valley Vista Benson, Arizona RV October 1, 2025 (145)

Total Sites as of March 31, 2026 (1)

Total Sites as of June 30, 2026 (1)

______________________

(1) Sites are approximate.

(2) Includes RVC site count.

Non-GAAP Financial Measures

14 unchanged sentences

Core Portfolio income from property operations, excluding property management, is useful to investors for annual comparison as it removes the fluctuations associated with acquisitions, dispositions and significant transactions or unique situations.

Our Non-Core Portfolio includes all Properties that were not owned and operated during all of 2025 and 2026, including six Properties in Florida impacted by Hurricane Ian and two Properties in California that were impacted by storm and flooding events.

Our Non-Core Portfolio includes all Properties that were not owned and operated during all of 2025 and 2026, including six Properties in Florida impacted by Hurricane Ian, two Properties in California that were impacted by storm and flooding events and seven acquired RVC properties.

FFO and Normalized FFO

15 unchanged sentences

The following table reconciles Net income available for Common Stockholders to Income from property operations:

Quarters Ended March 31,

Quarters Ended June 30, Six Months Ended June 30,

(amounts in thousands)

2026 2025 2026 2025

Computation of Income from Property Operations:

Net income available for Common Stockholders $ 96,316 $ 79,708 $ 204,220 $ 188,900

Redeemable perpetual preferred stock dividends 8 8 8 8

Income allocated to non-controlling interests – Common OP Units 3,194 3,777 6,781 8,978

1 unchanged sentence

Equity in (income)/loss of unconsolidated joint ventures (668) 47 209 (4,854)

(Gain)/Loss on sale of real estate and impairment, net 507 683 507 683

Gross revenues from home sales, brokered resales and ancillary services (22,805) (22,798) (41,901) (43,721)

7 unchanged sentences

Casualty-related charges/(recoveries), net (1)

(7,094) (541) (7,026) (324)

Other expenses 1,209 (59) 2,442 1,819

3 unchanged sentences

Income from property operations $ 187,132 $ 175,307 $ 396,045 $ 372,892

______________________

Casualty-related charges/(recoveries), net for the quarter and six months ended June 30, 2026 includes insurance recovery revenue of $7.1 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:

Quarters Ended March 31,

Quarters Ended June 30, Six Months Ended June 30,

(amounts in thousands)

2026 2025 2026 2025

Computation of FFO and Normalized FFO:

3 unchanged sentences

Depreciation on unconsolidated joint ventures 890 1,466 2,367 2,797

(Gain)/Loss on sale of real estate and impairment, net 507 683 507 683

FFO available for Common Stock and OP Unit holders 154,544 138,283 320,648 304,949

1 unchanged sentence

Other items (1)

860 — 1,985 —

Normalized FFO available for Common Stock and OP Unit holders $ 148,326 $ 137,690 $ 315,622 $ 304,356

1 unchanged sentence

_____________________

(1) Represents expenses of $1.1 million related to non-operating legal expenses during the quarter ended March 31, 2026.

(1) Represents expenses of $0.9 million and $2.0 million related to non-operating legal expenses during the quarter and six months ended June 30, 2026, respectively.

Management’s Discussion and Analysis (continued)

Results of Operations

This section discusses the comparison of our results of operations for the quarters ended March 31, 2026 and 2025.

This section discusses the comparison of our results of operations for the quarters and six months ended June 30, 2026 and 2025 and our operating activities, investing activities and financing activities for the six months ended June 30, 2026 and 2025.

Our Core Portfolio could change from time-to-time depending on acquisitions, dispositions and significant transactions or unique situations.

Our Core Portfolio consists of our Properties owned and operated during all of 2025 and 2026.

For the comparison of our results of operations for the quarters ended March 31, 2025 and March 31, 2024 and discussion of our operating activities, investing activities and financing activities for the quarters ended March 31, 2025 and March 31, 2024, 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 March 31, 2025, filed with the SEC on April 30, 2025.

Comparison of the Quarter Ended March 31, 2026 to the Quarter Ended March 31, 2025

For the comparison of our results of operations for the quarters and six months ended June 30, 2025 and June 30, 2024 and discussion of our operating activities, investing activities and financing activities for the six months ended June 30, 2025 and June 30, 2024, 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, 2025, filed with the SEC on July 29, 2025.

Comparison of the Quarter Ended June 30, 2026 to the Quarter Ended June 30, 2025

Income from Property Operations

1 unchanged sentence

Core Portfolio Total Portfolio

Quarters Ended March 31, Quarters Ended March 31,

Quarters Ended June 30, Quarters Ended June 30,

(amounts in thousands) 2026 2025 Variance %

20 unchanged sentences

Membership sales and marketing 4,544 4,042 502 12.4 % 4,551 4,062 489 12.0 %

3,822 3,874 (52) (1.3) % 3,837 3,931 (94) (2.4) %

Property operating expenses, excluding property management 154,868 150,546 4,322 2.9 % 160,305 155,365 4,940 3.2 %

6 unchanged sentences

(1) Rental income consists of the following total portfolio income items in this table:

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 Insurance and other in this table.

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 in 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 in the Consolidated Statements of Income and Comprehensive Income is bad debt expense, which is presented in Insurance and other in this table.

(2) Membership upgrade product offerings consist of 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 $0.9 million for the quarter ended March 31, 2025.

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

(5) Membership sales and marketing expense is net of sales commission deferrals of $0.9 million and $0.3 million for the quarters ended March 31, 2026 and 2025, respectively.

(4) See Non-GAAP Financial Measures section of the Management’s Discussion and Analysis for definitions and reconciliations of these Non-GAAP measures to Net Income available for Common Stockholders.

Total Portfolio income from property operations for the quarter ended March 31, 2026 increased $11.3 million, or 5.7%, from the same period in 2025 driven by an increase of $12.3 million, or 6.4%, from our Core Portfolio, offset by a decrease of $1.0 million from our Non-Core Portfolio.

Total Portfolio income from property operations for the quarter ended June 30, 2026 increased $11.8 million, or 6.7%, from the same period in 2025 driven by increases of $11.5 million, or 6.6%, from our Core Portfolio and $0.3 million from our Non-Core Portfolio.

Management’s Discussion and Analysis (continued)

Property Operating Revenues

MH base rental income in our Core Portfolio for the quarter ended March 31, 2026 increased $10.6 million, or 5.7%, from the same period in 2025, which reflects 5.9% growth from rate increases.

The average monthly MH base rental income per Site in our Core Portfolio increased to approximately $948 for the quarter ended March 31, 2026 from approximately $895 for the quarter ended March 31, 2025.

MH base rental income in our Core Portfolio for the quarter ended June 30, 2026 increased $10.7 million, or 5.8%, from the same period in 2025, which reflects 5.8% growth from rate increases.

The average monthly MH base rental income per Site in our Core Portfolio increased to approximately $956 for the quarter ended June 30, 2026 from approximately $904 for the quarter ended June 30, 2025.

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

Core Portfolio Total Portfolio

Quarters Ended March 31, Quarters Ended March 31,

Quarters Ended June 30, Quarters Ended June 30,

(amounts in thousands) 2026 2025 Variance %

4 unchanged sentences

RV and marina base rental income $ 103,442 $ 101,586 $ 1,856 1.8 % $ 110,475 $ 106,123 $ 4,352 4.1 %

RV and marina base rental income in our Core Portfolio for the quarter ended March 31, 2026 decreased $1.6 million, or 1.4%, from the same period in 2025 due to an increase in Core Annual RV and marina base rental income of 4.2%, offset by decreases in Core Seasonal and Transient RV and marina base rental income of 14.8% and 6.9%, respectively.

The decreases in Core Seasonal and Transient RV and marina base rental income were primarily due to softer demand driven in part by a loss of Canadian customers.

Utility and other income in our Core Portfolio for the quarter ended March 31, 2026 increased $1.8 million, or 5.4%, from the same period in 2025.

The increase was primari ly due to increases of $1.4 million and $0.3 million in utility income and pass-through income, respectively.

The increase in utility income was driven by higher expenses driving additional recovery primarily in sewer, trash, water and cable recovery income.

The utility recovery rate (utility income divided by utility expenses) for the quarters ended March 31, 2026 and 2025 were approximately 50% and 48%, respectively.

RV and marina base rental income in our Core Portfolio for the quarter ended June 30, 2026 increased $1.9 million, or 1.8%, from the same period in 2025 due to an increase in Core Annual RV and marina base rental income of 5.4%, offset by decreases in Core Seasonal and Transient RV and marina base rental income of 11.2% and 8.9%, respectively.

The increase in Core Annual RV and marina base rental income was driven by an increase in rate of 5.3%.

The decrease in Core Transient RV and marina base rental income was primarily due to lower occupancy in the South, Pacific West and Central regions.

Utility and other income in our Core Portfolio for the quarter ended June 30, 2026 increased $2.2 million, or 6.6%, from the same period in 2025.

The increase was primarily due to increases of $1.8 million and $0.4 million in utility income and pass-through income, respectively.

The increase in utility income was driven by higher expenses driving additional recovery primarily in sewer, electric, trash and water.

The utility recovery rate (utility income divided by utility expenses) for the quarters ended June 30, 2026 and 2025 were approximately 50.5% and 48.8%, respectively.

The increase in pass-through income was primarily driven by increases in real estate tax pass-throughs to customers in Florida.

Property Operating Expenses

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended March 31, 2026 increased $2.5 million, or 1.8%, from the same period in 2025, driven by increases in Repairs and maintenance of $1.4 million, Utility expense of $0.7 million and Real estate taxes of $0.4 million.

The increase in Repairs and maintenance was primarily driven by higher extraordinary repair and maintenance, lawn and common area maintenance expenses and contract repairs, partially offset by lower security guard expenses.

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

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

Property operating expenses, excluding property management, in our Core Portfolio for the quarter ended June 30, 2026 increased $4.3 million, or 2.9%, from the same period in 2025, driven by increases in Utility expense of $2.2 million and Repairs and maintenance of $1.4 million, partially offset by a decrease in Insurance and other of $0.5 million.

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

The increase in Repair and maintenance expense was due to increases in extraordinary repair and maintenance expense, lawn and common area maintenance expense and pool expense.

The decrease in Insurance and other was due primarily to a decrease in insurance expense as a result of our April 1, 2026 property and casualty insurance renewal.

Management’s Discussion and Analysis (continued)

1 unchanged sentence

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

Quarters Ended March 31,

Quarters Ended June 30,

(amounts in thousands, except home sales volumes) 2026 2025 Variance %

10 unchanged sentences

Brokered home resales 143 126 17 13.5 %

Gross revenues from new home sal es decreased $1.7 million a nd Cost of new home sales decreased $0.6 million dur ing the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 as a result of a change in overall sales mix, resulting in a higher percentage of lower priced homes being sold during the quarter ended March 31, 2026 as compared to the same period in 2025.

Gross revenues from brokered resales and ancillary services and Cost of brokered resales and ancillary services increased by $0.5 million and $0.6 million, respectively, dur ing the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025.

The increases were the result of higher revenue and cost of sales related to ancillary services offered at our Properties.

Rental Operations

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

Quarters Ended March 31,

Quarters Ended June 30,

(amounts in thousands, except rental unit volumes)

13 unchanged sentences

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

Approximat ely $6.0 million an d $5.0 million of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table for the quarters ended March 31, 2026 and 2025, respectively.

Approximately $6.0 million and $5.2 million of Site rental income is included in MH base rental income in the Core Portfolio Income from Property Operations table for the quarters ended June 30, 2026 and 2025, respectively.

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 $1.3 million, or 15.8%, hig her during the quarter ended March 31, 2026 compared to the same period in 2025 primarily due to a 12.1% growth in occupancy and a 3.7% growth in rate.

Rental operations revenues were $1.2 million, or 13.4%, higher during the quarter ended June 30, 2026 compared to the same period in 2025 primarily due to a 8.9% growth in occupancy and a 4.5% growth in rate.

Management’s Discussion and Analysis (continued)

1 unchanged sentence

The following table summarizes Other income and expenses, net:

Quarters Ended March 31,

Quarters Ended June 30,

(amounts in thousands, expenses shown as negative)

7 unchanged sentences

Total other income and expenses, net $ (93,153) $ (90,959) $ (2,194) (2.4) %

Total other income and expenses, net decreased $6.2 million, or 7.0%, for the quarter ended March 31, 2026 compared to the same period in 2025 primarily due to higher Interest and related amortization, Depreciation and amortization and General and administrative expense.

Total other income and expenses, net decreased $2.2 million, or 2.4%, for the quarter ended June 30, 2026 compared to the same period in 2025 primarily due to higher Interest and related amortization, Other expenses, and General and administrative, partially offset by an increase in Income from other investments, net.

Casualty-related charges/(recoveries), net

During the quarter ended June 30, 2025, we recognized expenses of approximately $0.3 million related to debris removal and cleanup costs from hurricane events, with insurance recovery revenue accrual of approximately $0.2 million related to the expenses incurred during the same period.

During the quarters ended June 30, 2026 and 2025, we also recognized excess insurance recovery revenue of approximately $7.1 million and $0.6 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 presented in Casualty-related charges/(recoveries), net in the Consolidated Statements of Income and Comprehensive Income.

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

During the quarter ended June 30, 2026, we recognized an impairment of $0.5 million related to home fixed assets.

During the quarter ended June 30, 2025, we recognized an impairment of $0.7 million related to the discontinuation of certain capital projects.

Equity in income/(loss) of unconsolidated joint ventures

Equity in income/(loss) of unconsolidated joint ventures was $5.8 million lower during the quarter ended March 31, 2026 compared to the same period in 2025, primarily due to a distribution from an unconsolidated joint venture that refinanced a secured loan and distributed proceeds in 2025.

Equity in income/(loss) of unconsolidated joint ventures was $0.7 million higher during the quarter ended June 30, 2026 compared to the same period in 2025 due to higher joint venture income and lower depreciation on joint ventures.

Management’s Discussion and Analysis (continued)

Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025

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, 2026 and 2025:

Core Portfolio Total Portfolio

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

(amounts in thousands) 2026 2025 Variance %

Change 2026 2025 Variance %

MH base rental income (1)

$ 392,008 $ 370,717 $ 21,291 5.7 % $ 392,460 $ 371,086 $ 21,374 5.8 %

Rental home income (1)

7,638 6,911 727 10.5 % 7,691 6,933 758 10.9 %

RV and marina base rental income (1)

217,926 217,697 229 0.1 % 231,733 227,688 4,045 1.8 %

Annual membership subscriptions 36,590 32,916 3,674 11.2 % 37,118 33,244 3,874 11.7 %

Membership upgrade revenue (2)(3)

6,240 6,105 135 2.2 % 6,240 6,172 68 1.1 %

Utility and other income (1)

69,211 65,287 3,924 6.0 % 70,322 69,977 345 0.5 %

Property operating revenues 729,613 699,633 29,980 4.3 % 745,564 715,100 30,464 4.3 %

Utility expense 80,497 77,625 2,872 3.7 % 82,864 79,451 3,413 4.3 %

Payroll 59,060 58,409 651 1.1 % 61,376 60,086 1,290 2.1 %

Repairs and maintenance 53,637 50,856 2,781 5.5 % 55,274 52,384 2,890 5.5 %

Insurance and other (1)(4)

51,941 52,593 (652) (1.2) % 54,394 55,202 (808) (1.5) %

Real estate taxes 42,662 42,250 412 1.0 % 43,926 43,488 438 1.0 %

Rental home operating and maintenance 2,767 2,446 321 13.1 % 2,781 2,451 330 13.5 %

Membership sales and marketing 8,366 7,916 450 5.7 % 8,388 7,993 395 4.9 %

Property operating expenses, excluding property management 298,930 292,095 6,835 2.3 % 309,003 301,055 7,948 2.6 %

Income from property operations, excluding property management (5)

430,683 407,538 23,145 5.7 % 436,561 414,045 22,516 5.4 %

Property management 40,516 41,153 (637) (1.5) % 40,516 41,153 (637) (1.5) %

Income from property operations (5)

$ 390,167 $ 366,385 $ 23,782 6.5 % $ 396,045 $ 372,892 $ 23,153 6.2 %

__________________________

(1) Rental income consists of the following total portfolio income items in this table:

(2) Membership upgrade product offerings consist of two- to four-year term subscription products, which are recognized in Annual membership subscriptions.

(3) Membership upgrade revenue is net of deferrals of $0.2 million for the six months ended June 30, 2025.

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

(5) See Non-GAAP Financial Measures section of the Management’s Discussion and Analysis for definitions and reconciliations of these Non-GAAP measures to Net Income available for Common Stockholders.

Total Portfolio income from property operations for the six months ended June 30, 2026 increased $23.2 million, or 6.2%, from the same period in 2025 driven by an increase of $23.8 million, or 6.5%, from our Core Portfolio, offset by a decrease of $0.6 million from our Non-Core Portfolio.

Property Operating Revenues

MH base rental income in our Core Portfolio for the six months ended June 30, 2026 increased $21.3 million, or 5.7%, from the same period in 2025, which reflects 5.9% growth from rate increases and a decline in occupancy of 0.2%.

Th e average monthly MH base rental income per Site in our Core Portfolio increased to approximately $952 for the six months ended June 30, 2026 from approximately $899 for the six months ended June 30, 2025.

Average occupancy for the Core Portfolio was 93.8% and 94.4% for the six months ended June 30, 2026 and 2025, respectively.

Management’s Discussion and Analysis (continued)

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

Core Portfolio Total Portfolio

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

(amounts in thousands)

2026 2025 Variance %

Change 2026 2025 Variance %

Annual $ 161,101 $ 153,673 $ 7,428 4.8 % $ 166,795 $ 158,176 $ 8,619 5.4 %

Seasonal 29,212 33,992 (4,780) (14.1) % 32,198 36,328 (4,130) (11.4) %

Transient 27,613 30,032 (2,419) (8.1) % 32,740 33,184 (444) (1.3) %

RV and marina base rental income $ 217,926 $ 217,697 $ 229 0.1 % $ 231,733 $ 227,688 $ 4,045 1.8 %

RV and marina base rental income in our Core Portfolio for the six months ended June 30, 2026 increased $0.2 million, or 0.1%, from the same period in 2025 due to an increase in Annual RV and marina base rental income of 4.8%, partially offset by decreases in Seasonal and Transient RV and marina base rental income of 14.1% and 8.1%, r espec tively.

The increase in Core Annual RV and marina base rental income was driven by an increase in rate of 5.2%.

The decreases in Seasonal and Transient RV and marina base rental income were primarily due to lower occupancy in the South and Central regions.

Utility and other i ncome in our Core Portfolio for the six months ended June 30, 2026 increased $3.9 million, or 6.0%, from the same period in 2025.

T he increase was primarily due to an increase in utility income and pass-through income of $3.2 million and $0.7 million, respectively.

The increase in utility income was driven by higher expenses driving additional recovery primarily in water, sewer and trash, and the increase in pass-through income was primarily driven by increases in real estate tax pass-throughs to customers in Florida.

The utility recovery rate (utility income divided by utility expenses) for the six months ended June 30, 2026 and 2025 was approximately 50.4% and 48.2%, respectively.

Property Operating Expenses

Property operating expenses, excluding property management, in our Core Portfolio for the six months ended June 30, 2026 increased $6.8 million, or 2.3%, from the same period in 2025 driven by increases in Utility expense of $2.9 million, Repairs and maintenance of $2.8 million and Real estate taxes of $0.4 million, partially offset by a decrease in Insurance and other expenses of $0.7 million.

The increase in Utility expense was due to increases in sewer, water and trash expenses, partially offset by decreases in gas and cable expenses.

The increase in Repair and maintenance expense was driven by increases in extraordinary repairs and maintenance as a result of adverse weather events, lawn and common area maintenance, contract repairs, pool and maintenance and housekeeping supplies expenses, partially offset by a decrease in security guard expenses.

The increase in Real estate taxes was primarily due to an increase in our Florida, Kentucky, Ohio and Wisconsin portfolios, partially offset by lower real estate tax assessments in our Texas portfolio.

The decrease in Insurance and other expenses was due to a decrease in insurance expense as a result of our property and casualty renewal on April 1, 2026, partially offset by an increase in administrative and rental home expenses.

Home Sales and Other

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

Six Months Ended June 30,

(amounts in thousands, except home sales volumes)

2026 2025 Variance %

Gross revenues from new home sales $ 16,736 $ 18,873 $ (2,137) (11.3) %

Cost of new home sales 16,556 17,490 (934) (5.3) %

Gross revenues from used home sales 1,526 1,535 (9) (0.6) %

Cost of used home sales 2,681 1,762 919 52.2 %

Gross revenues from brokered resales and ancillary services 23,639 23,313 326 1.4 %

Cost of brokered resales and ancillary services 11,266 10,916 350 3.2 %

Home selling and ancillary operating expenses 14,441 13,156 1,285 9.8 %

Home sales volumes

New home sales 185 234 (49) (20.9) %

Used home sales 279 142 137 96.5 %

Brokered home resales 256 224 32 14.3 %

Management’s Discussion and Analysis (continued)

Gross revenues from new home sales decreased $2.1 million and Cost of new home sales decreased $0.9 million during the six months ended June 30, 2026 com pared to the same period in 2025 as a result of a change in overall sales mix, resulting in a higher percentage of lower p riced homes being sold during the six months ended June 30, 2026 as compared to the same period in 2025.

Rental Operations

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

Six Months Ended June 30,

(amounts in thousands, except rental unit volumes)

2026 2025 Variance %

Rental operations revenue (1)

$ 19,641 $ 17,143 $ 2,498 14.6 %

Rental home operating and maintenance 2,767 2,446 321 13.1 %

Depreciation on rental homes (2)

5,441 5,123 318 6.2 %

Gross investment in new manufactured home rental units $ 281,885 $ 227,739 $ 54,146 23.8 %

Gross investment in used manufactured home rental units $ 16,464 $ 10,010 $ 6,454 64.5 %

Net investment in new manufactured home rental units $ 237,937 $ 188,686 $ 49,251 26.1 %

Net investment in used manufactured home rental units $ 13,408 $ 6,513 $ 6,895 105.9 %

Number of occupied rentals – new, end of period 1,962 1,816 146 8.0 %

Number of occupied rentals – used, end of period 184 189 (5) (2.6) %

______________________

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

Approximately $12.0 million and $10.2 million of Site rental income for the six months ended June 30, 2026 and 2025, 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 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 $2.5 million, or 14.6%, higher during the six months ended June 30, 2026 compared to the same period in 2025 primarily due to a 10.5% growth in occupancy and a 4.1% growth in rate.

Other Income and Expenses

The following table summarizes Other income and expenses, net:

Six Months Ended June 30,

(amounts in thousands, expenses shown as negative)

2026 2025 Variance %

Depreciation and amortization $ (106,773) $ (103,591) $ (3,182) (3.1) %

Interest income 3,771 4,440 (669) (15.1) %

Income from other investments, net 7,583 4,102 3,481 84.9 %

General and administrative (22,973) (19,694) (3,279) (16.6) %

Other expenses (2,442) (1,819) (623) (34.2) %

Interest and related amortization (67,469) (63,336) (4,133) (6.5) %

Total other income and expenses, net $ (188,303) $ (179,898) $ (8,405) (4.7) %

Total other income and expenses, net decreased $8.4 million during the six months ended June 30, 2026 compared to the same period in 2025 primarily due to higher Interest and related amortization, Depreciation and amortization, General and administrative expenses and Other expenses and lower Interest Income, partially offset by higher Income from other investments, net.

Casualty-related charges/(recoveries), net

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

During the six months ended June 30, 2026 and 2025, we also recognized insurance recovery revenue in excess of expenses for Hurricane Ian of $7.1 million and $0.6 million, respectively, within Casualty-related charges/(recoveries), net.

Management’s Discussion and Analysis (continued)

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

During the six months ended June 30, 2026, we recognized an impairment of $0.5 million related to home fixed assets.

During the six months ended June 30, 2025, we recognized an impairment of $0.7 million related to the discontinuation of certain capital projects.

Equity in income/(loss) of unconsolidated joint ventures

Equity in income/(loss) of unconsolidated joint ventures was $5.1 million lower during the six months ended June 30, 2026 compared to the same period in 2025 primarily due to a distribution from an unconsolidated joint venture that refinanced a secured loan and distributed proceeds in 2025.

Management’s Discussion and Analysis (continued)

Liquidity and Capital Resources

8 unchanged sentences

Accessing long-term, low-cost secured debt continues to be our focus.

As of March 31, 2026 and December 31, 2025, secured debt encumbered a total of 112 of our Properties, and the gross carrying value of such Properties was approximately $3,284.3 million and $3,266.6 million, respectively.

As of June 30, 2026 and December 31, 2025, secured debt encumbered a total of 112 of our Properties, and the gross carrying value of such Properties was approximately $3,304.6 million and $3,266.6 million, respectively.

On November 1, 2024, we entered into our current 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 March 31, 2026, the full capacity of our current ATM equity offering program remained available for issuance.

As of March 31, 2026, we had available liquidity in the form of approximately 406.1 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 June 30, 2026, the full capacity of our current ATM equity offering program remained available for issuance.

As of June 30, 2026, we had available liquidity in the form of approximately 406.0 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.

Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The changes in the fair value of the designated derivative are recorded in Accumulated other comprehensive income/(loss) on the Consolidated Balance Sheets and subsequently reclassified into earnings on the Consolidated Statements of Income and Comprehensive Income in the period that the hedged forecasted transaction affects earnings.

For additional information

Management’s Discussion and Analysis (continued)

regarding our interest rate swaps, see Part I.

The changes in the fair value of the designated derivative are recorded in Accumulated other comprehensive income/(loss) on the Consolidated Balance Sheets and subsequently reclassified into earnings in the Consolidated Statements of Income and Comprehensive Income in the period that the hedged forecasted transaction affects earnings.

For additional information regarding our interest rate swaps, see Part I.

Financial Statements—Note 8.

1 unchanged sentence

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 March 31, 2026, our LOC had a remaining borrowing capacity of $410.4 million with the option to increase the borrowing capacity by $200.0 million, subject to certain conditions.

As of June 30, 2026, our LOC had a remaining borrowing capacity of $372.4 million with the option to increase the borrowing capacity by $200.0 million, subject to certain conditions.

The LOC bears interest at a rate of SOFR plus 0.10% plus 1.25% to 1.65% and requires an annual facility fee of 0.20% to 0.35%.

1 unchanged sentence

The following table summarizes our cash flows activity:

For the quarters ended March 31,

For the six months ended June 30,

(amounts in thousands) 2026 2025

3 unchanged sentences

Net increase (decrease) in cash and restricted cash $ 9,497 $ 8,432

Management’s Discussion and Analysis (continued)

Operating Activities

Net cash provided by operating activities increased $0.8 million to $194.2 million for the quarter ended March 31, 2026 from $193.4 million for the quarter ended March 31, 2025.

The increase in net cash provided by operating activities was primarily due to an increase in cash inflows related to accounts payable and other liabilities, partially offset by an increase in cash outflows related to manufactured homes, net, a decrease in cash inflows in other assets, net and a decrease in net income.

Net cash provided by operating activities increased $17.5 million to $342.2 million for the six months ended June 30, 2026 from $324.7 million for the six months ended June 30, 2025.

The increase in net cash provided by operating activities was primarily due to an increase in accounts payable and other liabilities and an increase in net income, partially offset by an increase in cash outflows related to manufactured homes, net and other assets, net.

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

For the quarters ended March 31,

For the six months ended June 30,

(amounts in thousands)

3 unchanged sentences

Investing Activities

Net cash used in investing activities increased $2.0 million to $44.3 million for the quarter ended March 31, 2026 from $42.3 million for the quarter ended March 31, 2025.

The increase was primarily driven by cash outflows related to capital improvements and decreases in distributions of capital from unconsolidated joint ventures and proceeds from insurance claims, net, offset by a decrease in investment in unconsolidated joint ventures.

Net cash used in investing activities decreased $47.9 million to $109.0 million for the six months ended June 30, 2026 from $156.9 million for the six months ended June 30, 2025.

The decrease was primarily driven by a decrease in issuance of notes receivable and a decrease in distributions of capital from unconsolidated joint ventures.

Capital Improvements

The following table summarizes capital improvements:

For the quarters ended March 31,

For the six months ended June 30,

(amounts in thousands) 2026 2025

2 unchanged sentences

Improvements and renovations (2)

19,734 16,336

Property upgrades and development (3)

5 unchanged sentences

______________________

Management’s Discussion and Analysis (continued)

(1) Includes upkeep of property infrastructure including utilities and streets and replacement of community equipment and vehicles.

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

(3) Includes $3.2 million and $7.4 million of restoration and improvement capital expenditures related to hurricane events for the quarters ended March 31, 2026 and 2025, respectively.

(3) Includes $8.6 million and $13.9 million of restoration and improvement capital expenditures related to hurricane events for the six months ended June 30, 2026 and 2025, respectively.

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

Financing Activities

Net cash used in financing activities increased $8.6 million to $136.8 million for the quarter ended March 31, 2026 from $128.2 million for the quarter ended March 31, 2025.

The increase was primarily due to an increase in distributions to common stock holders of $8.6 million.

Net cash used in financing activities increased $64.3 million to $223.7 million for the six months ended June 30, 2026 from $159.4 million for the six months ended June 30, 2025.

The increase was primarily due to an increase in distributions to common stockholders and OP unit holders of $13.1 million and decrease in term loan proceeds of $150.0 million, partially offset by a decrease in cash outflows related to principal payments and mortgage debt repayment of $86.3 million, an increase in net line of credit borrowings of $9.5 million and a decrease in cash outflows related to debt issuance and defeasance costs of $2.5 million.

Contractual Obligations

2 unchanged sentences

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Contractual Obligations in our 2025 Form 10-K.

Management’s Discussion and Analysis (continued)

Off-Balance Sheet Arrangements

As of March 31, 2026, we have no off-balance sheet arrangements.

As of June 30, 2026, we have no off-balance sheet arrangements.

Critical Accounting Policies and Estimates

1 unchanged sentence

Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2025 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 March 31, 2026.

There have been no significant changes to our critical accounting policies and estimates during the quarter ended June 30, 2026.

Forward-Looking Statements

17 unchanged sentences

• the effect of potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs to our business;

Management’s Discussion and Analysis (continued)

• our ability to obtain financing or refinance existing debt on favorable terms or at all;

16 unchanged sentences

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