UMH PROPERTIES, INC. (UMH)

CIK: 0000752642. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-25.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=752642. Latest filing source: 0001493152-26-008042.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000752642.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000752642.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001493152-26-020513.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The
following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with
the consolidated financial statements and footnotes thereto included elsewhere herein and in the Company’s annual report on Form
10-K for the year ended December 31, 2025.

The
Company is a Maryland corporation that operates as a self-administered, self-managed REIT with headquarters in Freehold, New Jersey.
The Company’s primary business is the ownership and operation of manufactured home communities, which includes leasing
manufactured home spaces generally on an annual or month-to-month basis to residents. The Company also leases manufactured homes to
residents and, through its wholly-owned taxable REIT subsidiary, S&F, sells manufactured homes to
residents and prospective residents of our communities and for placement on customers’ privately-owned land. The Company also provides financing to home purchasers through its COP
program with Triad Financial. During 2022, the
Company also formed a qualified opportunity zone fund to acquire, develop and redevelop manufactured housing communities requiring
substantial capital investment and located in areas designated as qualified opportunity zones by the Treasury Department pursuant to
a program authorized under the 2017 Tax Cuts and Jobs Act to encourage long-term investment in economically distressed areas. The
Company currently holds a 77% interest in the qualified opportunity zone fund.

As
of March 31, 2026, the Company operated a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included
in our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate in which the Company
has a 40% interest. One of these joint ventures owns two communities in Florida (Sebring Square and Rum Runner) and one joint venture
owns one community in Pennsylvania (Honey Ridge). Of the 142 majority owned communities, 140 are owned 100% by the Company with the remaining
two owned by the Company’s Opportunity Zone Fund, in which the Company has a 77% interest. The Company’s portfolio of 145
communities contain a total of approximately 27,100 developed homesites, of which 11,200 contain rental homes that are leased to residents.
These 145 communities are located in twelve states consisting of New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland,
Michigan, Alabama, South Carolina, Florida and Georgia. In addition, the Company has over 1,000 self-storage units that are available
for leasing by residents. UMH has continued to execute our growth strategy of purchasing well-located communities in our target markets,
including the energy-rich Marcellus and Utica Shale regions.

The
Company earns income from the operation of its manufactured home communities which includes leasing of manufactured homesites, the rental
of manufactured homes, the sale and finance of manufactured homes, the brokering of third party home sales, self-storage leases, oil
and gas leases, cable service agreements and from appreciation in the values of the manufactured home communities and vacant land owned
by the Company. In addition, the Company receives property management and other fees from its joint venture arrangements with Nuveen
and from its opportunity zone fund.

27

The
primary focus of our business is the operation of our manufactured home communities - leasing of manufactured homesites and
manufactured homes in our communities to residents. The sales of homes are integrated with the leasing of these manufactured homes and homesites.
Management views the Company’s business as a single segment based on its method of internal reporting in addition to its
allocation of capital and resources. Capital and resources are allocated to further the goal of maintaining and increasing occupancy
and net operating income in our communities. Our chief executive officer, with the assistance of our chief operating officer, is the
principal decision-maker regarding allocation of resources. These decisions are based on the occupancy of the communities and
community net operating income, not based on the performance of home sales. Sales of homes are necessary to maintain and increase occupancy at our communities. We primarily
order homes to fill vacant sites in the communities. These homes are either rented or sold, based on the needs of the potential
residents. Although certain components of the sales operation are tracked (sales, cost of sales, etc.), separate discrete financial
information for the entire sales operation is not available. Most of the personnel costs, office expenses, maintenance and other
expenses are borne by the community and cannot be allocated. The components of the sales operation play no material role in
decisions about resources to be allocated. Resources are allocated to maintaining and increasing occupancy and net operating income
in our communities.

The
Company believes that its capital structure, which allows for the ownership of assets using a balanced combination of equity obtained
through the issuance of common stock, preferred stock and debt, will enhance shareholder returns as the properties appreciate over time.

The
Company intends to continue to increase its real estate investments and investments in expansions. Our business plan includes acquiring
communities that over time are expected to yield in excess of our cost of funds and then investing in physical improvements, including
adding rental homes onto otherwise vacant sites. This has resulted in increased occupancy rates and improved operating results. For the
three months ended March 31, 2026, rental and related income increased 9% from the prior year period and Community Net Operating Income
(“NOI”), as defined below, increased 8%. Same property NOI, which includes communities owned and operated as of January 1,
2025 (excluding Memphis Blues, Duck River Estates and River Bluff Estates), increased 7% for the three months ended March 31, 2026 over
the prior year period driven by a 110 basis point increase in occupancy, to 89.0%, and rental rate increases of 5.0%. We have been positioning
ourselves for future growth and will continue to seek opportunistic investments. In addition, on behalf of our joint venture arrangements
with Nuveen Real Estate, we will seek opportunities to acquire manufactured home communities that are under development and/or newly
developed and meet certain other investment guidelines. We will also seek additional opportunities, through our opportunity zone fund,
to acquire communities that require substantial capital investment and are located in qualified opportunity zones.

The
macro-economic environment and current housing fundamentals continue to favor home rentals. Although 30-year fixed rate mortgage rates
have shown signs of stabilizing, they are still approximately 6%. Housing inventory has improved but affordability remains a challenge
for many prospective buyers, especially lower and middle-income households. We believe rental homes in a manufactured home community
allow the resident to obtain the efficiencies of factory-built housing and the amenities of community living for less than the cost of
other forms of affordable housing. We continue to see strong demand for rental homes. During the three months ended March 31, 2026, our
portfolio of rental homes increased by 121 homes, net of rental home sales. Occupied rental homes represent approximately 44.2% of total
occupied sites. Occupancy in rental homes continues to be strong and registered at 94.6% as of March 31, 2026. Our manufactured home
communities compare favorably with other types of rental housing, including apartments, and we will continue to allocate capital to rental
home purchases, as demand dictates.

28

See
PART I, Item 1 – Business in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a more complete
discussion of the economic and industry-wide factors relevant to the Company and the opportunities and challenges, and risks on which
the Company is focused.

Significant
Accounting Policies and Estimates

The
discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s consolidated
financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America
(“U.S. GAAP”). The preparation of these consolidated financial statements requires management to make estimates and judgments
that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities
at the date of the Company’s consolidated financial statements. Actual results may differ from these estimates under different
assumptions or conditions.

On
a regular basis, management evaluates our assumptions, judgments and estimates. Management believes there have been no material changes
to the items that we disclosed as our significant accounting policies and estimates under Item 7, “Management’s Discussion
and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31,
2025.

Supplemental
Measures

In
addition to the results reported in accordance with U.S. GAAP, management’s discussion and analysis of financial condition and
results of operations include certain non-U.S. GAAP financial measures that in management’s view of the business we believe are
meaningful as they allow the investor the ability to understand key operating details of our business both with and without regard to
certain accounting conventions or items that may not always be indicative of recurring annual cash flows of the portfolio. These non-U.S.
GAAP financial measures as determined and presented by us may not be comparable to related or similarly titled measures reported by other
companies, and include Community Net Operating Income (“Community NOI”), Funds from Operations Attributable to Common Shareholders
(“FFO”) and Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”).

29

We
define Community NOI as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance,
community salaries, utilities, insurance and other expenses. We believe that Community NOI is helpful to investors and analysts as a
direct measure of the actual operating results of our manufactured home communities, rather than our Company overall. Community NOI should
not be considered a substitute for the reported results prepared in accordance with U.S. GAAP. Community NOI should not be considered
as an alternative to net income (loss) as an indicator of our financial performance, or to cash flows as a measure of liquidity; nor
is it indicative of funds available for our cash needs, including our ability to make cash distributions.

The
Company’s Community NOI for the three months ended March 31, 2026 and 2025 is calculated as follows (in thousands):

Three Months Ended

3/31/26

3/31/25

Rental and Related Income

$

59,469

$

54,574

Less: Community Operating Expenses

(25,312

)

(23,029

)

Community NOI

$

34,157

$

31,545

We
assess and measure our overall operating results based upon FFO, an industry performance measure which management believes is a useful
indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure
of a REIT. FFO, as defined by Nareit, represents net income (loss) attributable to common shareholders, as defined by accounting principles
generally accepted in the U.S. (“U.S. GAAP”), excluding certain gains or losses from sales of previously depreciated real
estate assets, impairment charges related

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-31.

Item
7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

2025
Accomplishments

During
2025, UMH made substantial progress on multiple fronts – generating solid operating results, achieving strong growth and improving
our financial position. We have:

●

Increased
Rental and Related Income by 10%;

●

Increased
Community Net Operating Income (“NOI”) by 9%;

●

Increased
Normalized Funds from Operations (“Normalized FFO”) by 15%;

●

Increased
Normalized FFO per diluted share by 2% from $0.93 per diluted share in 2024 to $0.95 per diluted share in 2025;

●

Increased
Same Property NOI by 9%;

●

Increased
Same Property Occupancy by 80 basis points from 87.5% to 88.3%;

●

Improved
our Same Property expense ratio from 39.7% at yearend 2024 to 39.3% at yearend 2025;

●

Acquired
five communities containing 587 homesites for a total cost of approximately $41.8 million;

●

Increased
Sales of Manufactured Homes by 4%;

●

In
May 2025, completed the addition of ten communities to our Fannie Mae credit facility through Wells Fargo Bank, N.A., for total
proceeds of approximately $101.4 million. The interest only loan for these ten communities is at a fixed rate of 5.855% with a
10-year term;

●

In
November 2025, completed the addition of another seven communities to our Fannie Mae credit facility through Wells Fargo Bank, N.A.,
for total proceeds of approximately $91.8 million. The interest only loan for these seven communities is at a fixed rate of 5.46%
with a 9-year term;

●

Issued
approximately $80.2 million aggregate principal amount of 5.85% Series B Bonds due 2030 in an offering to investors in Israel;

●

Amended
our $35 million revolving line of credit with OceanFirst Bank to extend the maturity date to June 1, 2027;

●

Raised
our quarterly common stock dividend by $0.01 representing a 4.7% increase to $0.225 per share or $0.90 annualized, representing our
fifth consecutive common stock dividend increase within the last five years, resulting in a total increase of $0.18 or 25% over this
period;

●

Issued
and sold approximately 2.6 million shares of Common Stock through our At-the-Market Sale Program at a weighted average price of
$17.59 per share, generating gross proceeds of $45.1 million and net proceeds of $44.1 million, after offering expenses;

●

Issued
and sold approximately 93,000 shares of Series D Preferred Stock through our At-the-Market Sale Programs at a weighted average price
of $22.93 per share, generating gross proceeds of $2.1 million and net proceeds of $2.0 million, after offering expenses; and

●

Subsequent
to year end, issued and sold approximately 66,000 shares of Series D Preferred Stock through our At-the-Market Sale Program at a
weighted average price of $22.51 per share, generating gross proceeds and net proceeds, after offering expenses, of $1.5 million.

Refer
to the discussion below in this Item 7, Management’s Discussion and Analysis of Financial Condition, Results of Operations, and
Non-U.S. GAAP Measures, contained in this Form 10-K for information regarding the presentation of community NOI, and for the presentation
and reconciliation of funds from operations and normalized funds from operations to net income (loss) attributable to common shareholders.

Overview

The
following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with
the historical Consolidated Financial Statements and Notes thereto included elsewhere in this Form 10-K.

The
Company is incorporated in Maryland and operates as a self-administered, self-managed REIT with its headquarters in Freehold, New Jersey.
The Company’s primary business is the ownership and operation of manufactured home communities, which includes leasing manufactured
home spaces on an annual or month-to-month basis to residents. The Company also leases manufactured homes to residents and, through its
wholly-owned taxable REIT subsidiary, S&F, sells and finances the sale of manufactured homes to residents and prospective residents
of our communities and for placement on customers’ privately-owned land. During 2022, the Company also formed an opportunity zone
fund to acquire, develop and redevelop manufactured housing communities requiring substantial capital investment and located in areas
designated as Qualified Opportunity Zones by the Treasury Department pursuant to a program authorized under the 2017 Tax Cuts and Jobs
Act to encourage long-term investment in economically distressed areas. The Company holds a 77% interest in its OZ Fund.

-43-

As of December
31, 2025, the Company operated a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included in
our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate in which the Company
has a 40% interest. One of these joint ventures owns two communities in Florida (Sebring Square and Rum Runner) and one joint
venture owns one community in Pennsylvania (Honey Ridge). Of the 142 majority owned communities, 140 are owned 100% by the Company
with the remaining two owned by the Company’s Opportunity Zone Fund, in which the Company has a 77% interest. The
Company’s portfolio of 145 communities contain a total of approximately 27,100 developed homesites, of which 11,000 contain
rental homes that are leased to residents. These 145 communities are located in twelve states consisting of New Jersey, New York,
Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. In addition, the Company
has over 1,000 self-storage units that are available for leasing by residents. UMH has continued to execute our growth strategy of purchasing well-located communities in our
target markets, including the energy-rich Marcellus and Utica Shale regions.

The
Company earns income from the operation of its manufactured home communities which includes leasing of manufactured homesites, the rental
of manufactured homes, the sale and finance of manufactured homes, the brokering of third party home sales, self-storage leases, oil
and gas leases, cable service agreements and from appreciation in the values of the manufactured home communities and vacant land owned
by the Company. In addition, the Company receives property management and other fees from its joint venture arrangements with Nuveen
and from its opportunity zone fund. Management views the Company as a single segment based on its method of internal reporting in addition
to its allocation of capital and resources.

Occupancy
in our properties, as well as our ability to increase rental rates, directly affects revenues. In 2025, total income increased 9%
from the prior year due to our rental program, rent increases and the growth of our sales business. Community NOI (as defined below
under Non-U.S. GAAP Measures) increased 9% from the prior year. Overall occupancy increased 80 basis points from 87.3% as of December 31, 2024 to 88.1% as of
December 31, 2025. Same property occupancy, which includes communities owned and operated as of January 1, 2024, increased 80 basis
points from 87.5% as of December 31, 2024 to 88.3% as of December 31, 2025. (Unless expressly indicated, information in this report
with respect to the Company’s properties, including financial and operating results for the year ended December 31, 2025, does
not include the properties owned by the Company’s joint ventures with Nuveen.)

Demand
for quality affordable housing remains healthy while inventory is scarce. Our property type offers substantial comparative value that
should result in continued high demand.

The
macro-economic environment and current housing fundamentals continue to favor home rentals. Although 30-year fixed rate mortgage rates
have shown signs of stabilizing, they are still approximately 6%. Housing inventory has improved but affordability remains a challenge
for many prospective buyers, especially lower and middle-income households. We believe rental homes in a manufactured home community
allow the resident to obtain the efficiencies of factory-built housing and the amenities of community living for less than the cost of
other forms of affordable housing. We continue to see strong demand for rental homes. During 2025, our portfolio of rental homes increased
by 571 homes, net of rental home sales. Occupied rental homes represent approximately 43.6% of total occupied sites. Occupancy in rental
homes continues to be strong and registered at 93.8% as of December 31, 2025. Our manufactured home communities compare favorably with
other types of rental housing, including apartments, and we will continue to allocate capital to rental home purchases, as demand dictates.

The
Company holds a portfolio of marketable equity securities of other REITs with a fair value of $23.8 million as of December 31, 2025,
representing 1.1% of our undepreciated assets (total assets excluding accumulated depreciation). The REIT securities portfolio
provides the Company with additional diversification, liquidity and income. As of December 31, 2025, 97% of the Company’s
portfolio consisted of REIT common stocks and 3% consisted of REIT preferred stocks. Other than purchasing marketable equity securities through automatic dividend
reinvestments, the Company has not made any purchases of REIT securities during 2023, 2024 and 2025 and the Company
does not intend to increase its investment in the REIT securities portfolio.

-44-

The Company’s
weighted average yield on the securities portfolio was approximately 5.2% at December 31, 2025. At December 31, 2025, the Company had
net unrealized losses of $40.8 million in its REIT securities portfolio. During 2025, the Company sold positions in securities, generating
a net realized loss of $221,000.

The
Company continues to strengthen its balance sheet. During the year ended December 31, 2025, through an at-the-market sale program for
our Common Stock that was established in September 2024 (the “September 2024 Common ATM Program”), the Company issued and
sold a total of 2.6 million shares of our Common Stock, generating gross proceeds of $45.1 million and net proceeds of $44.1 million,
after offering expenses. Additionally, during 2025 the Company raised approximately $9.3 million in new capital through the Dividend
Reinvestment and Stock Purchase Plan (“DRIP”).

During
the year ended December 31, 2025, through an at-the-market sale program for our Preferred Stock that was established in January 2023
(the “2023 Preferred ATM Program”), and an at-the-market sale program for our Preferred Stock that was established in March
2025 (the “2025 Preferred ATM Program”), the Company issued and sold a total of approximately 93,000 shares of our Series
D Preferred Stock, generating gross proceeds of $2.1 million and net proceeds of $2.0 million, after offering expenses.

On
July 22, 2025, the Company issued approximately $80.2 million aggregate principal amount of its 5.85% Series B Bonds Due 2030 (the “Series
B Bonds”) in an offering to investors in Israel. The net proceeds, after deducting offering discounts, fees and other transaction
costs, were approximately $75.1 million.

The
Company believes that its capital structure, which allows for the ownership of assets using a balanced combination of equity obtained
through the issuance of Common Stock, Preferred Stock and debt, will enhance shareholder returns as the properties appreciate over time.

On
December 31, 2025, the Company had approximately $72 million in cash and cash equivalents and $260 million available on our credit
facility, with a potential total availability of up to $500 million pursuant to an accordion feature. We also had $129 million available
on our revolving lines of credit for the financing of home sales and the purchase of inventory and $55 million available on our lines
of credit secured by rental homes and rental home leases.

The
Company intends to continue to increase its real estate investments. Our business plan includes acquiring communities that over time
are expected to yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto
otherwise vacant sites. As part of this plan, we intend to continue to seek opportunities, through opportunity zone funds, to
acquire communities that require substantial capital investment and are located in qualified opportunity zones. In addition, on
behalf of our joint venture arrangements with Nuveen Real Estate, we will continue to seek opportunities to acquire manufactured
home communities that are under development and/or newly developed and meet certain other investment guidelines. There is no
guarantee that any of these additional opportunities will continue to materialize or that the Company will be able to take advantage
of such opportunities. The growth of our real estate portfolio and success of the joint ventures depends on the availability of
suitable properties which meet the Company’s investment criteria and appropriate financing. Competition in the market areas in
which the Company operates is significant. To the extent that funds or appropriate communities are not available, fewer acquisitions
will be made.

See
PART I, Item 1- Business and Item 1A – Risk Factors for a more complete discussion of the economic and industry-wide factors relevant
to the Company, the Company’s lines of business and principal products and services, and the opportunities, challenges and risks
on which the Company is focused.

-45-

Acquisitions
in 2025

Community

Date of Acquisition

State

Number
of

Sites

Purchase
Price (in thousands)

Number
of

Acres

Occupancy at Acquisition

Cedar Grove

March
24, 2025

NJ

186

$

17,000

25

100

%

Maplewood Village

March
24, 2025

NJ

80

7,600

13

100

%

Conowingo Court

July
2, 2025

MD

142

9,855

54

70

%

Maybelle Manor

July
2, 2025

MD

49

4,770

28

100

%

Albany Dunes

October
7, 2025

GA

130

2,600

40

32

%

Total 2025

587

$

41,825

160

78

%

Results
of Operations

2025
vs. 2024

Rental
and related income increased from $207.0 million for the year ended December 31, 2024 to $226.7 million for the year ended December 31,
2025, or 10%. This increase was due to acquisitions, increases in rental rates and same property occupancy and additional rental homes.
Since 2024, the Company has been raising rental rates by approximately 5% to 6% annually at most communities. The Company has been acquiring communities
with vacant sites that can potentially be occupied and earn income in the future. Overall occupancy was 88.1% and 87.3% at December 31,
2025 and 2024, respectively. Same property occupancy has increased 80 basis points from 87.5% at December 31, 2024 to 88.3% at December
31, 2025. Demand for rental homes continues to be strong. As of December 31, 2025, we had approximately 10,900 rental homes, not including rental homes in the joint venture communities, with an occupancy
rate of 93.8%. We continue to evaluate the demand for rental homes and will invest in additional homes as demand dictates.

Community
operating expenses increased from $87.4 million for the year ended December 31, 2024 to $96.0 million for the year ended December 31,
2025, or 10%. This increase was due to acquisitions and an increase in payroll costs, real estate taxes, snow removal and water and sewer
costs. This increase also includes one-time legal and professional fees of $724,000 for 2025.

Community
NOI increased from $119.7 million for the year ended December 31, 2024 to $130.7 million for the year ended December 31, 2025, or 9%.
This increase was primarily due to acquisitions, the increases in rental rates, occupancy and rental homes. The operating expense ratio
(defined as community operating expenses divided by rental and related income), without the one-time legal and professional fees, improved
20 basis points from 42.2% in 2024 to 42.0% for 2025. Many recently acquired communities have deferred maintenance requiring higher than
normal expenditures in the first few years of ownership. Since most of the community expenses consist of fixed costs, as occupancy rates
increase, these expense ratios are expected to continue to improve. Due to the Company’s ability to increase its rental rates annually
(subject to limitations on rent increases in certain jurisdictions), increasing costs due to inflation and changing prices have generally
not had a material effect on revenue and income from continuing operations.

Sales
of manufactured homes increased from $33.5 million for the year ended December 31, 2024 to $35.0 million for the year ended December
31, 2025, or 4%. Cost of sales of manufactured homes increased from $21.9 million for the year ended December 31, 2024 to $22.6 million
for the year ended December 31, 2025, or 3%. The gross profit percentage was 36% and 35% for the years ended December 31, 2025 and 2024,
respectively. Selling expenses increased from $6.8 million for the year ended December 31, 2024 to $7.3 million for the year ended December
31, 2025, or 7%. Gain from the sales operations, excluding interest on the financing of inventory, increased 8% and amounted to a gain
of $5.2 million and $4.8 million for the years ended December 31, 2025 and 2024, respectively. Conventional home prices have flattened
as sellers begin to outnumber buyers. Although the housing market supply has increased in recent months it remains below the available
units that prevailed before the COVID-19 pandemic. The inherent relative affordability of our property type has become more and more
apparent, which should result in increased demand. The Company continues to be optimistic about future sales and rental prospects given
the fundamental need for affordable housing. The Company believes that sales of new homes produce new rental revenue and represent an
investment in the upgrading of our communities.

-46-

General
and administrative expenses remained relatively stable for the year ended December 31, 2024 compared to the year ended December 31, 2025.
General and administrative expenses as a percentage of gross revenue (total income plus interest, dividends and other income) was approximately
7.9% and 8.7% for the years ended December 31, 2025 and 2024, respectively.

Depreciation
expense increased from $60.2 million for the year ended December 31, 2024 to $66.6 million for the year ended December 31, 2025, or 10%.
This increase was primarily due to acquisitions and the increases in rental homes and expansions during 2025 and 2024.

Interest
income increased from $7.1 million for the year ended December 31, 2024 to $8.7 million for the year ended December 31, 2025, or 23%.
This increase was due to an increase in interest earned from our excess cash and from our notes receivable. The average balance in cash
in money market accounts increased from approximately $26.6 million in 2024 to $50.1 million in 2025. The average interest rate earned
on this cash was approximately 3.2% and 3.7% in 2025 and 2024, respectively. Additionally, there was an increase in the average balance
of notes receivable from $83.9 million in 2024 to $95.4 million in 2025. The weighted average interest rate earned on these notes receivable
was approximately 7.0% and 7.1% in 2025 and 2024, respectively.

Dividend
income remained relatively stable at just under $1.5 million for the year ended December 31, 2024 compared to the year ended
December 31, 2025.

The
Company recognized a realized loss on sales of marketable securities of $221,000 and $3.8 million for the years ended December 31, 2025
and 2024, respectively. The change in fair value of marketable securities amounted to a decrease of $2.3 million and an
increase of $1.2 million for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company had total
net unrealized losses of $40.8 million in its REIT securities portfolio.

Interest
expense, including amortization of financing costs, increased from $27.3 million for the year ended December 31, 2024 to $29.7 million
for the year ended December 31, 2025, or 9%. This increase was mainly due to the issuance of the Series B Bonds in July 2025 and the
refinancing of mortgage debt at higher rates. The average balance of our total debt increased from $652.4 million at December 31, 2024
to $688.0 million at December 31, 2025. The weighted average interest rate on our total debt increased from 4.4% at December 31, 2024
to 4.9% at December 31, 2025, respectively.

2024
vs. 2023

Rental
and related income increased from $189.7 million for the year ended December 31, 2023 to $207.0 million for the year ended December 31,
2024, or 9%. This increase was due to increases in rental rates, same property occupancy and additional rental homes. During 2024, the
Company raised rental rates by 5% to 6% at most communities. Rent increases vary depending on overall market conditions and demand. Occupancy,
as well as the ability to increase rental rates, directly affects revenues. The Company has been acquiring communities with vacant sites
that can potentially be occupied and earn income in the future. Overall occupancy was 87.3% and 86.7% at December 31, 2024 and 2023,
respectively. As of December 31, 2024, we had approximately 10,300 rental homes with an occupancy rate of 94.0%.

Community
operating expenses increased from $81.3 million for the year ended December 31, 2023 to $87.4 million for the year ended December 31,
2024, or 7%. This increase was due to increases in payroll and payroll costs, real estate taxes, insurance, professional fees, waste
removal, water expenses and sewer expenses.

Community
NOI increased from $108.4 million for the year ended December 31, 2023 to $119.7 million for the year ended December 31, 2024, or 10%.
This increase was primarily due to the increases in rental rates, occupancy and rental homes. The operating expense ratio (defined as
community operating expenses divided by rental and related income) improved 70 basis points from 42.9% in 2023 to 42.2% for 2024.

Sales
of manufactured homes increased from $31.2 million for the year ended December 31, 2023 to $33.5 million for the year ended December
31, 2024, or 8%. The total number of homes sold increased 16% from 341 homes in 2023 to 394 homes in 2024. Cost of sales of manufactured
homes increased from $21.1 million for the year ended December 31, 2023 to $21.9 million for the year ended December 31, 2024, or 4%.
The gross profit percentage was 35% and 32% for the years ended December 31, 2024 and 2023, respectively. Selling expenses remained relatively
stable for the years ended December 31, 2023 and 2024. Gain from the sales operations, excluding interest on the financing of inventory,
increased 53% and amounted to a gain of $4.8 million and $3.1 million for the years ended December 31, 2024 and 2023, respectively.

-47-

General
and administrative expenses increased from $19.7 million for the year ended December 31, 2023 to $21.8 million for the year ended December
31, 2024, or 11%. This increase was primarily due to an increase in payroll and related personnel cost and an increase in meeting costs
as a result of our biennial in-person employee training meeting (which was not held during 2023). General and administrative expenses,
excluding non-recurring expenses, as a percentage of gross revenue (total income plus interest, dividends and other income) was approximately
8.7% and 8.1% for the years ended December 31, 2024 and 2023, respectively.

Depreciation
expense increased from $55.7 million for the year ended December 31, 2023 to $60.2 million for the year ended December 31, 2024, or 8%.
This increase was primarily due to the increases in rental homes during 2024 and 2023.

Interest
income increased from $5.0 million for the year ended December 31, 2023 to $7.1 million for the year ended December 31, 2024, or 43%.
This increase was primarily due to an increase in the average balance of notes receivable from $71.5 million for the year ended December
31, 2023 to $83.9 million for the year ended December 31, 2024 and interest earned on excess cash during 2024. The weighted average interest
rate earned on notes receivables increased 10 basis points and was 7.1% and 7.0% as of December 31, 2024 and 2023, respectively.

Dividend
income decreased from $2.3 million for the year ended December 31, 2023 to $1.5 million for the year ended December 31, 2024, or 37%.
This decrease was due to reduced dividends from a combination of our smaller securities portfolio and the weighted average yield on our
dividends received from our marketable securities investments. The weighted average yield decreased 220 basis points from 6.7% in 2023
to 4.5% in 2024.

The
Company recognized a realized loss on sales of marketable securities of $3.8 million for the year ended December 31, 2024. The Company
recognized a realized gain on sales of marketable securities of $183,000 for the year ended December 31, 2023. The change
in fair value of marketable securities amounted to an increase of $1.2 million and a decrease of $3.6 million for the years ended December
31, 2024 and 2023, respectively. As of December 31, 2024, the Company had total net unrealized losses of $38.5 million in its REIT securities
portfolio.

Interest
expense, including amortization of financing costs, decreased from $32.5 million for the year ended December 31, 2023 to $27.3 million
for the year ended December 31, 2024, or 16%. This decrease was due to a decrease in the average balance of mortgages and loans from
$626.2 million at December 31, 2023 to $551.9 million at December 31, 2024. The weighted average interest rate on our total debt decreased
from 4.6% at December 31, 2023 to 4.4% at December 31, 2024, respectively.

Non-U.S.
GAAP Measures

In
addition to the results reported in accordance with U.S. GAAP, management’s discussion and analysis of financial condition and
results of operations include certain non-U.S. GAAP financial measures that in management’s view of the business we believe are
meaningful as they allow the investor the ability to understand key operating details of our business both with and without regard to
certain accounting conventions or items that may not always be indicative of recurring annual cash flows of the portfolio. These non-U.S.
GAAP financial measures as determined and presented by us may not be comparable to related or similarly titled measures reported by other
companies, and include Community Net Operating Income (“Community NOI”), Funds from Operations Attributable to Common Shareholders
(“FFO”) and Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”).

We
define Community NOI as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance,
community salaries, utilities, insurance and other expenses. We believe that Community NOI is helpful to investors and analysts as a
direct measure of the actual operating results of our manufactured home communities, rather than our Company overall. Community NOI should
not be considered a substitute for the reported results prepared in accordance with U.S. GAAP. Community NOI should not be considered
as an alternative to net income (loss) as an indicator of our financial performance, or to cash flows as a measure of liquidity; nor
is it indicative of funds available for our cash needs, including our ability to make cash distributions.

-48-

The
Company’s Community NOI for the years ended December 31, 2025, 2024 and 2023 is calculated as follows (in thousands):

2025

2024

2023

Rental and Related Income

$

226,713

$

207,019

$

189,749

Community Operating Expenses

(95,977

)

(87,354

)

(81,343

)

Community NOI

$

130,736

$

119,665

$

108,406

We
assess and measure our overall operating results based upon FFO, an industry performance measure which management believes is a useful
indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure
of a REIT. FFO, as defined by Nareit, represents net income (loss) attributable to common shareholders, as defined by accounting principles
generally accepted in the U.S. (“U.S. GAAP”), excluding certain gains or losses from sales of previously depreciated real
estate assets, impairment charges related to depreciable real estate assets, the change in the fair value of marketable securities, and
the gain or loss on the sale of marketable securities plus certain non-cash items such as real estate asset depreciation and amortization.
Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation
of Nareit FFO to make an election to include or exclude gains and losses on the sale of these assets, such as marketable equity securities,
and include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the
adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude the change in the fair value
of marketable securities from our FFO calculation. Nareit created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance.
We define Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), as FFO, excluding certain
one-time charges. FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. FFO and
Normalized FFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost
basis. However, other REITs may use different methodologies to calculate FFO and Normalized FFO and, accordingly, our FFO and Normalized
FFO may not be comparable to all other REITs. The items excluded from FFO and Normalized FFO are significant components in understanding
the Company’s financial performance.

FFO
and Normalized FFO (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative
to net income (loss) as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii)
are not alternatives to cash flow as a measure of liquidity. FFO and Normalized FFO, as calculated by the Company, may not be comparable
to similarly titled measures reported by other REITs.

-49-

The
Company’s FFO and Normalized FFO attributable to common shareholders for the years ended December 31, 2025, 2024 and 2023 are calculated
as follows (in thousands):

2025

2024

2023

Net Income (Loss) Attributable to Common Shareholders

$

5,966

$

2,472

$

(8,714

)

Depreciation Expense

66,555

60,239

55,719

Depreciation Expense from Unconsolidated Joint Ventures

902

824

692

Loss on Sales of Investment Property and Equipment

64

113

-0-

(Increase) Decrease in Fair Value of Marketable Securities

2,259

(1,167

)

3,555

(Gain) Loss on Sales of Marketable Securities, net

221

3,778

(183

)

FFO Attributable to Common Shareholders

75,967

66,259

51,069

Adjustments:

Amortization

2,992

2,384

2,135

Non-Recurring
Other Expense (1)

1,139

846

1,329

Normalized FFO Attributable to Common Shareholders

$

80,098

$

69,489

$

54,533

(1)

Consists
of one-time legal and professional fees ($579) and costs associated with acquisition not completed ($560) for 2025. Consists of
one-time legal and professional fees ($452), costs associated with acquisition not completed ($12) and costs associated with the
liquidation/sale of inventory in a particular sales center ($382) for 2024. Consists of the previously disclosed special bonus and
restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period
($862), non-recurring expenses for the joint venture with Nuveen ($135), one-time legal fees ($76), fees related to the
establishment of the OZ Fund ($37), and costs associated with acquisitions and financing that were not completed ($219) in
2023.

Liquidity
and Capital Resources

The
Company operates as a REIT deriving its income primarily from real estate rental operations. The Company’s principal liquidity
demands have historically been, and are expected to continue to be, distributions to the Company’s shareholders, acquisitions,
capital improvements, development and expansions of properties, debt service, purchases of manufactured home inventory and rental
homes, financing of manufactured home sales and payments of expenses relating to real estate operations. The Company’s ability
to generate cash adequate to meet these demands is dependent primarily on income from its real estate investments and marketable
securities portfolio, the sale of real estate investments and marketable securities, refinancing of mortgage debt, leveraging of
real estate investments, availability of bank borrowings, lines of credit, and other incurrence of indebtedness, proceeds from the
DRIP, and access to the capital markets, including sales of Common Stock and Series D Preferred Stock through its At-the-Market Sale
Programs. The Company’s operating cash flows are expected to be sufficient to fund recurring operating expenses and required
distributions to maintain REIT qualification. Access to the capital markets, including the Company’s at-the-market programs,
is primarily utilized to fund growth initiatives, acquisitions, development, and balance sheet management rather than to support
recurring operating expenses. The Company may sell marketable securities from its investment portfolio, borrow on its unsecured
credit facility or lines of credit, incur other indebtedness, finance and refinance its properties, and/or raise capital through the
DRIP and capital markets, including through the Company’s At-the-Market Sale Programs. In order to provide continued financial
flexibility to opportunistically access the capital markets, on September 16, 2024, the Company terminated its successful
then-existing at-the-market Common Stock program and implemented a new September 2024 Common ATM Program, which allows the Company
to offer and sell shares of Common Stock, having an aggregate sales price of up to $150 million, from time to time through the
distribution agents thereunder. Additionally, on March 5, 2025, the Company terminated its successful then-existing 2023 Preferred
ATM Program and implemented a new 2025 Preferred ATM Program which allows the Company to offer and sell shares of Series D Preferred
Stock having an aggregate sales price of up to $100 million from time to time through B. Riley, as distribution agent.

-50-

The
Company intends to continue to increase its real estate investments. Our business plan includes acquiring communities that over time
are expected to yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto
otherwise vacant sites. As part of this plan, we intend to continue to seek opportunities, through opportunity zone funds, to acquire
communities that require substantial capital investment and are located in qualified opportunity zones. In addition, on behalf of our
joint ventures with Nuveen Real Estate, we will continue to seek opportunities to acquire manufactured home communities that are under
development and/or newly developed and meet certain other investment guidelines. There is no guarantee that any of these additional opportunities
will materialize or that the Company will be able to take advantage of such opportunities. The growth of our real estate portfolio and
success of our joint venture depends on the availability of suitable properties which meet the Company’s investment criteria and
appropriate financing. Competition in the market areas in which the Company operates is significant. To the extent that funds or appropriate
communities are not available, fewer acquisitions will be made.

The
Company continues to strengthen its capital and liquidity positions. During the year ended December 31, 2025, the Company issued and
sold 2.6 million shares of Common Stock through our September 2024 Common ATM Program at a weighted average price of $17.59 per
share, generating gross proceeds of $45.1 million and net proceeds of $44.1 million, after offering expenses.

Through
our Preferred ATM Programs, the Company issued and sold a total of 93,000 shares of our Series D Preferred Stock generating gross proceeds
of $2.1 million and net proceeds after offering expenses of $2.0 million during the year ended December 31, 2025.

As
of December 31, 2025, $44.6 million of Common Stock remained available for sale under the September 2024 Common ATM Program and $99.0
million in shares of Series D Preferred Stock remained available for sale under the 2025 Preferred ATM Program. Subsequent to year end,
the Company issued and sold a total of 66,000 shares of Preferred Stock under the 2025 Preferred ATM Program for gross proceeds of $1.5
million.

In
addition, the Company has a DRIP in which participants can purchase original issue shares of Common Stock from the Company at a price
of approximately 95% of market. During 2025, amounts received under the DRIP, including dividends reinvested of $3.5 million, totaled
$9.3 million. The Company issued a total of 591,000 shares under the DRIP during 2025.

On
July 22, 2025, the Company issued approximately $80.2 million aggregate principal amount of its 5.85% Series B Bonds due 2030 in an offering
to investors in Israel. The net proceeds, after deducting offering discounts, fees and other transaction costs, were approximately $75.1
million.

The
Company also has the ability to finance home sales, inventory purchases and rental home purchases. The Company has a $35 million revolving
line of credit for the financing of homes that was not utilized at December 31, 2025, revolving credit facilities totaling $93.6 million
to finance inventory purchases, that were not utilized at December 31, 2025 and $44.0 million available on our lines of credit secured
by rental homes and rental homes leases.

As
of December 31, 2025, the Company had $72.1 million of cash and cash equivalents and marketable securities of $23.8 million. The
Company operated 145 communities (including 142 communities in which the Company owned either a 100% interest or a majority interest
and three communities owned by the Company’s joint ventures with Nuveen), of which 63 are unencumbered. Except for the 30
communities in the borrowing base for our unsecured credit facility, these unencumbered communities can be used to raise additional
funds. Our marketable securities, unencumbered properties, and lines of credit provide the Company with additional liquidity. The
Company holds a 40% equity interest in the entities formed under its joint ventures with Nuveen, which owns three newly developed
communities that are unencumbered.

The
Company’s focus is on real estate investments. The Company has historically financed purchases of real estate primarily through
mortgages. During 2025, total investment property, including rental homes, increased 12% or $200.3 million. See Note 3 of the Notes to
Consolidated Financial Statements for additional information on our acquisitions and Note 7 of the Notes to Consolidated Financial Statements
for related debt transactions. The Company continues to evaluate acquisition opportunities. The funds for these acquisitions (including
the Company’s 40% share of acquisition costs that may be incurred pursuant to its joint ventures with Nuveen Real Estate) may come
from bank borrowings, proceeds from the DRIP, and private placements or public offerings of debt, Common Stock or Preferred Stock, including
under the September 2024 Common ATM Program or the 2025 Preferred ATM Program or any other at-the-market sale programs that the Company
may commence. To the extent that funds or appropriate properties are not available, fewer acquisitions will be made.

-51-

The
Company owned approximately 10,900 rental homes, not including rental homes in the joint venture communities, or approximately 41% of our total
homesites as of December 31, 2025. During 2025, our rental home portfolio increased by a net of 571 homes and we sold 163 rental
homes, representing a net increase of $65.4 million. The Company markets these rental homes for sale to existing residents. The
Company estimates that in 2026 it will order approximately 800 manufactured homes to use as rental units at its properties for a
total invoice cost of approximately $60 million. Rental home rates on new homes range from approximately $850 to $2,000 per month,
including lot rent, depending on size, location and market conditions. During 2025, the Company also invested approximately $49
million in other improvements to its communities.

The
following table summarizes cash flow activity for the years ended December 31, 2025, 2024 and 2023 (in thousands):

2025

2024

2023

Net Cash Provided by Operating Activities

$

81,973

$

81,601

$

120,077

Net Cash Used in Investing Activities

(209,200

)

(139,865

)

(165,573

)

Net Cash Provided by Financing Activities

99,342

102,638

69,057

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

$

(27,885

)

$

44,374

$

23,561

Net cash provided by operating activities remained relatively stable from
2025 compared to 2024. Net
cash provided by operating activities decreased by $38.5 million in 2024 primarily due to an increase in Community NOI and an increase
in inventory.

Net
cash used in investing activities increased by $69.3 million in 2025, primarily due to the purchase of five communities, investment property
and equipment and additions to land development. Net cash used in investing activities decreased by $25.7 million in 2024, primarily
due to the decrease in purchase of investment property and equipment.

Net
cash provided by financing activities decreased by $3.3 million in 2025 to $99.3 million. The Company issued and sold 2.6 million
shares of its Common Stock during 2025 through the September 2024 Common ATM Program, raising net proceeds of approximately $44.1
million. The Company also received $9.3 million, including dividends reinvested, through the DRIP. In addition, the Company issued
and sold 93,000 shares of its Series D Preferred Stock during 2025 through the Preferred ATM Programs, raising net proceeds of
approximately $2.0 million. During 2025, the Company distributed to our common shareholders a total of $74.8 million, including
dividends reinvested. In addition, the Company also paid $20.5 million in preferred dividends during 2025. The Company also made
principal payments on its mortgages and loans, net of new debt financing, totaling $120.4 million.

Net
cash provided by financing activities increased by $33.6 million in 2024 to $102.6 million. The Company issued and sold 12.5 million
shares of its Common Stock during 2024 through the Common ATM Programs, raising net proceeds of approximately $220.6 million. The Company
also received $10.2 million, including dividends reinvested, through the DRIP. In addition, the Company issued and sold 1.2 million shares
of its Series D Preferred Stock during 2024 through the 2023 Preferred ATM Program, raising net proceeds of approximately $28.0 million.
During 2024, the Company distributed to our common shareholders a total of $62.3 million, including dividends reinvested. In addition,
the Company also paid $19.2 million in preferred dividends during 2024. The Company also made principal payments on its mortgages and
loans, net of new debt financing, totaling $77.7 million.

Cash
flows were primarily used for capital improvements, payment of dividends, purchase of inventory and rental homes, loans to customers
for the sales of manufactured homes, and expansion of existing communities. The Company meets maturing mortgage obligations by using
a combination of positive cash flows and refinancing. The dividend payments were primarily made from cash flows from operations. Excluding
expansions and rental home purchases, the Company is budgeting approximately $30 to $40 million in capital improvements for 2026.

The
Company’s significant commitments and contractual obligations relate to its mortgages, loans payable and other indebtedness, acquisitions
of manufactured home communities, retirement benefits, and the lease on its corporate offices as described in Note 10 to the Consolidated
Financial Statements.

-52-

As
of December 31, 2025, the Company had total assets of $1.7 billion and total liabilities of $791.8 million. Our net debt (net of cash
and cash equivalents) to total market capitalization as of December 31, 2025 and 2024 was approximately 28% and 21%, respectively. Our
net debt, less securities (net of cash and cash equivalents and marketable securities) to total market capitalization as of December
31, 2025 and 2024 was approximately 27% and 19%, respectively. As of December 31, 2025, the Company had six mortgages totaling $38.2
million due within the next 12 months.

The
Company believes that cash on hand, funds generated from operations, the DRIP and capital markets, the funds available on the lines of
credit, together with the ability to finance and refinance its properties will provide sufficient funds to adequately meet its obligations
and generate funds for new investments over the next several years.

Contractual
Obligations

The
Company has investments in entities formed under its joint venture relationship with Nuveen Real Estate which are accounted for under
the equity method of accounting as we have the ability to exercise significant influence, but not control, over the operating and financial
decisions for the joint venture entities. The terms of the joint venture arrangements require the Company to fund 40% and Nuveen to fund
60% of the total capital contributions made by the members. See Item 2 – “Properties” and Note 5, “Investment
in Joint Ventures,” of the Notes to Consolidated Financial Statements for additional information.

Our
other primary contractual obligations relate to our loans and mortgages payable and other indebtedness, our operating lease obligations
and our obligations regarding the financing of our home sales. See Note 2 “Summary of Significant Accounting Policies”, Note
7 “Loans and Mortgages Payable”, Note 10 “Related Party Transactions and Other Matters” and Note 14 “Commitments,
Contingencies and Legal Matters” of the Notes to Consolidated Financial Statements for additional information.

Critical
Accounting Policies and Estimates

Our
consolidated financial statements have been prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures. Actual results could differ
from these estimates.

For
additional information regarding our significant accounting policies, see Note 2 of the Notes to Consolidated Financial Statements.

Recent
Accounting Pronouncements

See
Note 2 of the Notes to Consolidated Financial Statements.