News Release Details

NEWS RELEASE
July 30, 2015                                                                         
  

Southfield, Michigan, July 30, 2015 - Sun Communities, Inc. (NYSE: SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates manufactured housing ("MH") and recreational vehicle ("RV") communities, today reported its second quarter results.

Highlights:  Three Months Ended June 30, 2015

• Funds from operations ("FFO")⁽¹⁾ excluding certain items was $0.87 per diluted share and OP unit ("Share") for the three months ended June 30, 2015, representing a 10 percent increase over the same period last year.
   
• Same site Net Operating Income ("NOI")⁽²⁾ increased by 8.8 percent as compared to the three months ended June 30, 2014.
   
• Revenue producing sites increased by 500 sites during the three months ended June 30, 2015, bringing total portfolio occupancy to 93.5 percent.
   
• New home sales more than doubled as compared to the three months ended June 30, 2014.  Total homes sales increased by 10.6 percent for the same period.
   
• Acquired seven MH communities; six in Florida and one in South Carolina adding 3,554 sites for approximately $288.8 million and one RV resort in Texas with 241 sites for $27.1 million.

"We have successfully merged the operations and cultures of our recent portfolio acquisitions and are operating as a unified portfolio.  The acquired communities are delivering solid results which complement the excellent performance of our core portfolio," said Gary A. Shiffman, Chairman and CEO.  "We plan to continue to acquire high quality assets with significant upside potential where Sun's experienced operations team can utilize their expertise to build long term shareholder value," Shiffman added.

Funds from Operations ("FFO")⁽¹⁾

FFO⁽¹⁾ excluding certain items was $52.0 million and $34.7 million, or $0.87 and $0.79 per Share, for the three months ended June 30, 2015 and 2014, respectively.  For the six months ended June 30, 2015 and 2014 FFO⁽¹⁾ excluding certain items was $100.4 million and $72.9 million, or $1.76 and $1.74 per Share, respectively.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders for the second quarter of 2015 was $12.3 million, or $0.23 per diluted common share, as compared to net income of $4.9 million, or $0.12 per diluted common share for the second quarter of 2014. 

Net income attributable to common stockholders for the six months ended June 30, 2015 was $19.2 million, or $0.36 per diluted common share, as compared to net income of $12.8 million, or $0.33 per diluted common share for the six months ended June 30, 2014.

Community Occupancy

Total portfolio occupancy increased to 93.5 percent at June 30, 2015 from 91.0 percent at June 30, 2014.  During the second quarter of 2015, revenue producing sites increased by 500 sites, or 17.1 percent, as compared to 427 revenue producing sites gained in the second quarter of 2014.

Revenue producing sites increased by 999 sites for the six months ended June 30, 2015 as compared to 987 revenue producing sites gained during the six months ended June 30, 2014.

Same Site Results

For the 177 communities owned throughout 2015 and 2014, second quarter 2015 total revenues increased 8.2 percent and total expenses increased 6.8 percent, resulting in an increase in NOI⁽²⁾ of 8.8 percent over the second quarter of 2014.  Same site occupancy increased to 94.6 percent at June 30, 2015 from 93.1 percent at June 30, 2014.

For the six months ended June 30, 2015, total revenues increased 7.4 percent and total expenses increased 4.6 percent, resulting in an increase in NOI⁽²⁾ of 8.7 percent over the six months ended June 30, 2014.

"Our same site revenue growth is primarily from occupancy gains and rental increases and is being further enhanced by the solid growth in our transient RV revenues which is demonstrated by the 9% year over year revenue growth during the Memorial Day and Fourth of July holiday weekends," said Mr. Shiffman.  "We are pleased that our RV communities continue to offer a resort experience attracting both new and loyal repeat travelers."

Home Sales

Sales of 65 new homes occurred during the second quarter of 2015, representing an increase of over 140%   for the same three month period in 2014.   Total home sales were 576 for the second quarter as compared to 521 homes sold during the second quarter of 2014.

During the six months ended June 30, 2015, 1,119 homes were sold compared to the 890 for the same period ending 2014, resulting in an additional 229 homes sold during 2015 or a 25.7 percent increase.  Rental homes sales, which are included in total home sales, were 388 and 354 for the six months ended June 30, 2015 and 2014.

On a same site basis the average selling price of new homes sold during the first six months of 2015 was $91,122, an increase of 8.1 percent, from $84,310 during the same period in 2014.  The increase in average selling price for pre-owned homes was 10.3 percent, or $26,529 as compared to $24,046 for the first half of 2015 and 2014, respectively.

Acquisitions ⁽³⁾

In addition to the previously announced $256.2 million acquisition of six manufactured home communities in the Orlando, Florida area, the Company completed the acquisition of two additional communities:

• Lakeside Crossing - a high quality age restricted manufactured home community near Myrtle Beach, South Carolina, for cash of $32.6 million (including associated manufactured homes). This community has 419 sites and approximately 275 zoned and approved expansion sites.  With this acquisition the Company is now operating in 30 states.
   
• La Hacienda - a high end recreational vehicle resort located in Austin, Texas for $27.1 million in cash. This resort is comprised of 241 sites. In recognition of its superior quality, La Hacienda was recently awarded the 2014 Large Park of the Year Award by the Texas Association of Campground Owners.

Debt Transaction

In May 2015, the Company defeased a total of $70.6 million aggregate principal amount of collateralized term loans with an interest rate of 5.32% that were due to mature on July 1, 2016. This transaction released ten communities, of which three communities are under contract to be disposed as described below, and three communities are identified as potential disposition communities. As a result of the defeasance, the Company recognized a loss on debt extinguishment of $2.8 million.

Equity Transaction

On July 29, 2015, the Company entered into a repurchase agreement with certain holders of the Company's 6.50% Series A-4 Cumulative Convertible Preferred Stock under which, at the holders' election, the Company is obligated to repurchase up to 5,926,322 shares of the Series A-4 preferred stock from the holders of those shares. Each holder may elect to sell its shares to the Company until August 10, 2015. The purchase price is $31.08 per Series A-4 preferred share, which consists of a price per share of $30.90 plus $0.18 for accrued and unpaid distributions from and including June 30, 2015 to, but not including, August 10, 2015. Neither the foregoing description of the repurchase agreement nor this press release is an offer to purchase or a solicitation of an offer to sell the Series A-4 preferred shares.

Anticipated Transactions

The Company has entered into agreements to acquire three recreational vehicle communities containing approximately 1,185 developed sites for a combined purchase price of $76.2 million and has completed its due diligence with respect to such communities.

The Company has entered into an agreement to sell six of its manufactured home communities containing approximately 2,200 sites and associated homes and notes for net proceeds of $68.0 million which transaction includes a significant non-refundable deposit.

The Company has received a commitment letter from certain lenders for a new $450 million senior unsecured credit facility that the Company expects will replace its current $350 million senior secured revolving credit facility.

The Company expects these transactions to close in August 2015, except for the sale of three of the manufactured home communities, which is expected to close in October 2015.  The closing of the credit facility is subject to negotiation and execution of definitive agreements, the closing of each of the acquisitions and dispositions is subject to customary closing conditions, and there can be no assurance that any of these transactions will close.

Guidance

The Company has increased its guidance for full-year 2015 FFO⁽¹⁾ excluding certain items to $3.62 -$3.72 per Share, an increase of  $0.07 at the midpoint, from its most recently issued guidance of $3.55 - $3.65 per Share. The revised guidance takes into consideration the Company's out performance as compared to its internal estimates, incorporates the anticipated acquisition of three communities and disposition of six communities as noted above. Guidance includes no impact from the 6.50% Series A-4 Cumulative Convertible Preferred Stock repurchase agreement as the Company has no indication of how many shareholders will exercise their sale right. FFO⁽¹⁾ excluding certain items assumes that all transaction costs and debt extinguishment costs are added back in the computation of FFO⁽¹⁾ while the distribution from affiliates is removed from FFO⁽¹⁾.

The Company provides guidance for FFO⁽¹⁾ excluding certain items of $1.03 - $1.05 per Share for the third quarter 2015.

Below are updates to the guidance previously provided. Items not addressed below remain unchanged.

• Recreational Vehicle Revenue: Revenue from the Company's recreational vehicle communities contains a component of transient revenue from guest stays that are other than a full year or full season.  Transient revenue is expected to be approximately $39.5 million for the year of which the Company expects to earn 45.3 percent in the third quarter and 15.1 percent in the fourth quarter.
   
• Same Site Portfolio: The Company's same site property portfolio of 171 communities has been adjusted for the out performance of the portfolio and the six anticipated dispositions discussed above.

^*The foregoing table nets $20.3 million of utility revenue against the related utility expense in property operating and maintenance expense.

• Acquisition Portfolio:  Information pertaining to the 77 properties excluded from the Company's same site portfolio is presented in the table below.

• Home Sales: the table below details the Company's 2015 projected home sales.

 The gain on sale of the rental homes, which is included in the table above and excluded from FFO⁽¹⁾, is expected to approximate $7.8 million.

• Other Income, net: Interest income, ancillary revenues net of ancillary expenses, brokerage commissions and other income, net, is expected to approximate $24.2 million.
   
• Rental Home Program: the table below details the Company's 2015 projected rental program.

• General and Administrative Expenses-real property: These expenses are estimated at $40.0 - $41.0 million.

The estimates and assumptions presented above represent the mid-point of a range of possible outcomes and may differ materially from actual results.

The estimates and assumptions presented above are forward looking based on the Company's current assessment of economic and market conditions, as well as other risks outlined below under the caption "Forward-Looking Statements."

Earnings Conference Call

A conference call to discuss second quarter operating results will be held on Thursday July 30, 2015 at 11:00 A.M. (ET). To participate, call toll-free 888-572-7034.  Callers outside the U.S. or Canada can access the call at 719-785-1753.  A replay will be available following the call through August 13, 2015, and can be accessed toll-free by calling 888-203-1112 or by calling 719-457-0820.  The Conference ID number for the call and the replay is 5006919. The conference call will be available live on Sun Communities website www.suncommunities.com.  Replay will also be available on the website.

Sun Communities, Inc. is a REIT that currently owns and operates a portfolio of 251 communities comprising approximately 93,100 developed sites.

For more information about Sun Communities, Inc., please visit our website at www.suncommunities.com.

Contact

Please address all inquiries to our investor relations department, at our website www.suncommunities.com, by phone (248) 208-2500, by email investorrelations@suncommunities.com or by mail Sun Communities, Inc. Investor Relations, 27777 Franklin Road, Ste. 200, Southfield, MI 48034.

Forward-Looking Statements
This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. Forward-looking statements can be identified by words such as "will," "may," "could," "expect," "anticipate," "believes," "intends," "should," "plans," "estimates," "approximate", "guidance" and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include national, regional and local economic climates, the ability to maintain rental rates and occupancy levels, competitive market forces, the performance of the recent acquisitions, the ability to integrate future acquisitions smoothly and efficiently, changes in market rates of interest, the ability of manufactured home buyers to obtain financing, the level of repossessions by manufactured home lenders and those risks and uncertainties referenced under the headings entitled "Risk Factors" contained in our 2014 Annual Report on Form 10-K, and the Company's other periodic filings with the Securities and Exchange Commission.

The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in the Company's assumptions, expectations of future events, or trends.

⁽¹⁾      Funds from operations attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ("FFO") is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income (loss) (computed in accordance with generally accepted accounting principles "GAAP"), excluding gains (or losses) from sales of depreciable operating property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company's operating performance. Management generally considers FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not readily apparent from net loss. Management believes that the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. FFO is computed in accordance with the Company's interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than the Company.

Because FFO excludes significant economic components of net income (loss) including depreciation and amortization, FFO should be used as an adjunct to net income (loss) and not as an alternative to net income (loss). The principal limitation of FFO is that it does not represent cash flow from operations as defined by GAAP and is a supplemental measure of performance that does not replace net income (loss) as a measure of performance or net cash provided by operating activities as a measure of liquidity. In addition, FFO is not intended as a measure of a REIT's ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO only provides investors with an additional performance measure.

⁽²⁾      Investors in and analysts following the real estate industry utilize NOI as a supplemental performance measure. NOI is derived from revenues minus property operating expenses and real estate taxes. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company believes that net income (loss) is the most directly comparable GAAP measurement to NOI. Net income (loss) includes interest and depreciation and amortization which often have no effect on the market value of a property and therefore limit its use as a performance measure. In addition, such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset. The Company believes that NOI is helpful to investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. The Company uses NOI as a key management tool when evaluating performance and growth of particular properties and/or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense, and non-property specific expenses such as general and administrative expenses, all of which are significant costs, and therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.

⁽³⁾       The consideration amounts presented with respect to acquired communities represent the economic transaction and do not contemplate the fair value purchase accounting required by GAAP.

Consolidated Balance Sheets
(in thousands, except per share amounts)

	(unaudited)  June 30, 2015				December 31, 2014
ASSETS
Investment property, net (including $92,687 and $94,230 for consolidated variable interest entities at June 30, 2015 and December 31, 2014)	$	3,716,141			$	2,568,164
Cash and cash equivalents	11,930				83,459
Inventory of manufactured homes	10,246				8,860
Notes and other receivables, net	188,036				174,857
Other assets, net	106,496				102,352
TOTAL ASSETS	$	4,032,849			$	2,937,692
LIABILITIES
Debt (including $64,968 and $65,849 for consolidated variable interest entities at June 30, 2015 and December 31, 2014)	$	2,343,821			$	1,826,293
Lines of credit	37,742				5,794
Other liabilities	235,508				165,453
TOTAL LIABILITIES	$	2,617,071			$	1,997,540
Commitments and contingencies
Series A-4 preferred stock, $0.01 par value. Issued and outstanding: 6,365 shares at June 30, 2015 and 483 shares at December 31, 2014	$	190,079			$	13,610
Series A-4 preferred OP units	$	24,155			$	18,722
STOCKHOLDERS' EQUITY
Series A preferred stock, $0.01 par value. Issued and outstanding: 3,400 shares at June 30, 2015 and December 31, 2014	$	34			$	34
Common stock, $0.01 par value. Authorized: 90,000 shares; Issued and outstanding: 53,783 shares at June 30, 2015 and 48,573 shares at December 31, 2014	538				486
Additional paid-in capital	2,038,229				1,741,154
Distributions in excess of accumulated earnings	(911,628		)		(863,545		)
Total Sun Communities, Inc. stockholders' equity	1,127,173				878,129
Noncontrolling interests:
Common and preferred OP units	75,356				30,107
Consolidated variable interest entities	(985		)		(416		)
Total noncontrolling interest	74,371				29,691
TOTAL STOCKHOLDERS' EQUITY	1,201,544				907,820
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,032,849			$	2,937,692

Consolidated Statements of Operations
(Unaudited - dollars in thousands, except per share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
	2015				2014				2015				2014
REVENUES
Income from real property	$	125,833			$	86,105			$	245,358			$	173,602
Revenue from home sales	18,734				14,813				35,568				24,936
Rental home revenue	11,495				9,733				22,624				19,135
Ancillary revenues	5,254				4,254				8,445				6,690
Interest	3,893				3,526				7,877				6,880
Brokerage commissions and other income, net	729				95				1,266				382
Total revenues	165,938				118,526				321,138				231,625
COSTS AND EXPENSES
Property operating and maintenance	34,507				25,193				63,721				48,382
Real estate taxes	8,796				6,079				17,511				12,088
Cost of home sales	13,702				11,100				26,259				18,948
Rental home operating and maintenance	5,479				5,213				11,084				10,464
Ancillary expenses	4,149				3,139				6,695				5,057
General and administrative - real property	10,486				8,393				20,316				16,206
General and administrative - home sales and rentals	3,957				3,119				7,445				5,618
Transaction costs	2,037				1,104				11,486				1,864
Depreciation and amortization	41,411				30,045				85,412				58,934
Extinguishment of debt	2,800				-				2,800				-
Interest	26,751				17,940				52,140				35,530
Interest on mandatorily redeemable debt	787				806				1,639				1,609
Total expenses	154,862				112,131				306,508				214,700
Income before other gains (losses)	11,076				6,395				14,630				16,925
(Loss) gain on disposition of properties, net	(13		)		885				8,756				885
Provision for state income taxes	(77		)		(70		)		(152		)		(139		)
Distributions from affiliate	7,500				400				7,500				800
Net income	18,486				7,610				30,734				18,471
Less: Preferred return to Series A-1 preferred OP units	622				664				1,253				1,336
Less: Preferred return to Series A-3 preferred OP units	46				46				91				91
Less: Preferred return to Series A-4 preferred OP units	353				-				706				-
Less:  Preferred return to Series C preferred OP units	340				-				340				-
Less: Amounts attributable to noncontrolling interests	743				458				1,007				1,242
Net income attributable to Sun Communities, Inc.	16,382				6,442				27,337				15,802
Less: Preferred stock distributions	4,088				1,514				8,174				3,028
Net income attributable to Sun Communities, Inc. common stockholders	$	12,294			$	4,928			$	19,163			$	12,774
Weighted average common shares outstanding:
Basic	52,846				40,331				52,672				38,413
Diluted	53,237				40,546				53,060				38,631
Earnings per share:
Basic	$	0.23			$	0.12			$	0.36			$	0.33
Diluted	$	0.23			$	0.12			$	0.36			$	0.33

Reconciliation of Net Income to FFO⁽¹⁾
(in thousands, except per share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
	2015				2014				2015				2014
Net income attributable to Sun Communities, Inc. common stockholders	$	12,294			$	4,928			$	19,163			$	12,774
Adjustments:
Preferred return to Series A-1 preferred OP units	622				664				1,253				1,336
Preferred return to Series A-3 preferred OP units	46				46				91				91
Preferred return to Series A-4 preferred stock	2,574				-				-				-
Amounts attributable to noncontrolling interests	566				458				779				1,242
Depreciation and amortization	40,969				30,374				85,234				59,542
Loss (gain) on disposition of properties, net	13				(885		)		(8,756		)		(885		)
Loss (gain) on disposition of assets, net	(2,426		)		(2,014		)		(4,128		)		(3,028		)
Funds from operations ("FFO") attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1)(4)	54,658				33,571				93,636				71,072
Adjustments:
Distribution from affiliate	(7,500		)		-				(7,500		)		-
Transaction costs	2,037				1,104				11,486				1,864
Extinguishment of debt	2,800				-				2,800				-
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities excluding certain items (1)(4)	$	51,995			$	34,675			$	100,422			$	72,936
Weighted average common shares outstanding:	52,846				40,331				52,672				38,413
Add:
Common stock issuable upon conversion of stock options	12				14				14				15
Restricted stock	379				201				374				203
Common OP units	2,916				2,069				2,738				2,069
Common stock issuable upon conversion of Series A-1 preferred OP units	1,012				1,082				1,026				1,095
Common stock issuable upon conversion of Series A-3 preferred OP units	75				75				75				75
Common stock issuable upon conversion of Series A-4 preferred stock	2,829				-				-				-
Weighted average common shares outstanding - fully diluted	60,069				43,772				56,899				41,870
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) per Share - fully diluted	$	0.91			$	0.77			$	1.65			$	1.70
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities excluding certain items(1) per Share - fully diluted	$	0.87			$	0.79			$	1.76			$	1.74

⁽⁴⁾ The effect of certain anti-dilutive convertible securities is excluded from these items.

Statement of Operations - Same Site
(in thousands except for Other Information)

			Three Months Ended June 30,															Six Months Ended June 30,
			2015				2014				Change				% Change			2015				2014				Change				% Change
Income from real property			$	80,836			$	74,727			$	6,109			8.2	%		$	164,719			$	153,301			$	11,418			7.4	%
PROPERTY OPERATING EXPENSES:
Payroll and benefits			7,354				6,620				734				11.1	%		14,027				12,731				1,296				10.2	%
Legal, taxes, & insurance			1,423				1,091				332				30.4	%		2,808				2,356				452				19.2	%
Utilities			4,893				4,825				68				1.4	%		10,045				9,906				139				1.4	%
Supplies and repair			3,683				3,467				216				6.2	%		5,532				5,649				(117		)		(2.1	)%
Other			2,629				2,407				222				9.2	%		4,741				4,606				135				2.9	%
Real estate taxes			5,723				5,648				75				1.3	%		11,518				11,293				225				2.0	%
Property operating expenses			25,705				24,058				1,647				6.8	%		48,671				46,541				2,130				4.6	%
NET OPERATING INCOME ("NOI")(2)			$	55,131			$	50,669			$	4,462			8.8	%		$	116,048			$	106,760			$	9,288			8.7	%

	As of June 30,
OTHER INFORMATION	2015				2014				Change
Number of properties	177				177				-
Developed sites	66,516				66,237				279
Occupied sites (5)	56,063				54,376				1,687
Occupancy % (5) (6)	94.6		%		93.1		%		1.5		%
Weighted average monthly rent per site - MH	$	468			$	453			$	15
Weighted average monthly rent per site - RV (7)	$	399			$	389			$	10
Weighted average monthly rent per site - Total	$	458			$	444			$	14
Sites available for development	6,197				6,118				79

⁽⁵⁾ Includes manufactured housing and annual/seasonal recreational vehicle sites, and excludes transient recreational vehicle sites, which are included in total developed sites.
⁽⁶⁾ Occupancy % excludes recently completed but vacant expansion sites.
⁽⁷⁾ Weighted average rent pertains to annual/seasonal RV sites and excludes transient RV sites.

Rental Program Summary
(amounts in thousands except for *)

	Three Months Ended June 30,															Six Months Ended June 30,
	2015				2014				Change				% Change			2015				2014				Change				% Change
REVENUES:
Rental home revenue	$	11,495			$	9,733			$	1,762			18.1	%		$	22,624			$	19,135			$	3,489			18.2	%
Site rent included in Income from real property	15,551				13,514				2,037				15.1	%		30,678				26,616				4,062				15.3	%
Rental Program revenue	27,046				23,247				3,799				16.3	%		53,302				45,751				7,551				16.5	%
EXPENSES:
Commissions	752				621				131				21.1	%		1,586				1,222				364				29.8	%
Repairs and refurbishment	2,322				2,405				(83		)		(3.5	)%		4,738				4,810				(72		)		(1.5	)%
Taxes and insurance	1,544				1,254				290				23.1	%		3,020				2,622				398				15.2	%
Marketing and other	861				933				(72		)		(7.7	)%		1,740				1,810				(70		)		(3.9	)%
Rental Program operating and maintenance	5,479				5,213				266				5.1	%		11,084				10,464				620				5.9	%
NET OPERATING INCOME ("NOI") (3)	$	21,567			$	18,034			$	3,533			19.6	%		$	42,218			$	35,287			$	6,931			19.6	%
Occupied rental home information as of June 30, 2015 and 2014:
Number of occupied rentals, end of period*																11,395				10,226				1,169				11.4	%
Investment in occupied rental homes																$	445,446			$	384,064			$	61,382			16.0	%
Number of sold rental homes*																388				354				34				9.6	%
Weighted average monthly rental rate*																$	835			$	804			$	31			3.9	%

Homes Sales Summary
(amounts in thousands except for *)

	Three Months Ended June 30,																Six Months Ended June 30,
	2015				2014				Change					% Change			2015				2014				Change				% Change
New home sales	$	5,175			$	2,412			$	2,763				114.6	%		$	10,421			$	4,575			$	5,846			127.8	%
Pre-owned home sales	13,559				12,401				1,158					9.3	%		25,147				20,361				4,786				23.5	%
Revenue from home sales	18,734				14,813				3,921					26.5	%		35,568				24,936				10,632				42.6	%
New home cost of sales	4,418				2,041				2,377					116.5	%		8,609				3,875				4,734				122.2	%
Pre-owned home cost of sales	9,284				9,059				225					2.5	%		17,650				15,073				2,577				17.1	%
Cost of home sales	13,702				11,100				2,602					23.4	%		26,259				18,948				7,311				38.6	%
NOI / Gross Profit (2)	$	5,032			$	3,713			$	1,319				35.5	%		$	9,309			$	5,988			$	3,321			55.5	%
Gross profit - new homes	$	757			$	371			$	386				104.0	%		$	1,812			$	700			$	1,112			158.9	%
Gross margin % - new homes	14.6		%		15.4		%		(0.8		)%						17.4		%		15.3		%		2.1		%
Average selling price - new homes*	$	79,607			$	89,260			$	(9,653	)			(10.8	)%		$	79,546			$	84,730			$	(5,184	)		(6.1	)%
Gross profit - pre-owned homes	$	4,275			$	3,342			$	933				27.9	%		$	7,497			$	5,288			$	2,209			41.8	%
Gross margin % - pre-owned homes	31.5		%		26.9		%		4.6		%						29.8		%		26.0		%		3.8		%
Average selling price - pre-owned homes*	$	26,534			$	25,107			$	1,427				5.7	%		$	25,453			$	24,355			$	1,098			4.5	%
Home sales volume:
New home sales*	65				27				38				140.7		%		131				54				77				142.6	%
Pre-owned home sales*	511				494				17				3.4		%		988				836				152				18.2	%
Total homes sold*	576				521				55				10.6		%		1,119				890				229				25.7	%

Acquisition Summary - Properties Acquired in 2014 and 2015
(amounts in thousands except for statistical data)

⁽⁵⁾     Includes manufactured housing and annual/seasonal recreational vehicle sites, and excludes transient recreational vehicle sites, which are included in total developed sites.
⁽⁷⁾ Weighted average rent pertains to annual/seasonal RV sites and excludes transient RV sites.