Hilltop 8K Third Quarter Operating Results | HTH 6 Nov 06

Exhibit 99.2

Third Quarter 2006

Supplemental Operating and Financial Data

Affordable Residential Communities

7887 East Belleview Avenue, Suite 200

Englewood, CO 80111

Phone: (866) 847-8931

Fax: (303) 294-0121

www.aboutarc.com

Table of Contents

Portfolio Map	1

Press Release Text	2

Financial Data:
Financial Highlights	6
Balance Sheets	7
Statements of Operations	8
Cash Flows	9
Segment Income / Real Estate Net Segment Income Reconciliation	10

Real Estate Segment	11
Occupancy	12
Operating Results by Occupancy Level	13
Top 20 Markets	14
Asset Highlights	15
Debt Analysis	16
Investor Inquiries	17

Portfolio Map

Press Release Text

AFFORDABLE RESIDENTIAL COMMUNITIES ANNOUNCES
THIRD QUARTER 2006 RESULTS

DENVER, CO — (BUSINESS WIRE) — Thursday, November 2, 2006 — Affordable Residential Communities Inc. (NYSE:ARC) today announced results for the third quarter ended September 30, 2006.

Third Quarter Operating Results

Consolidated gross revenue for the third quarter of 2006 was $61.2 million compared to $61.6 million in the second quarter of 2006 and $65.7 million in the third quarter of 2005. Net loss attributable to common stockholders for the third quarter of 2006 was ($9.8) million, or ($0.24) per share, compared to net income of $0.2 million, or $0.01 per share, in the second quarter of 2006 and a net loss of ($126.9) million, or ($3.10) per share, in the third quarter of 2005. The third and second quarter of 2006 results include gains on sales of discontinued operations of $5.2 million, or $0.13 per share, and $15.6 million, or $0.38 per share, respectively. Net loss attributable to common stockholders for the third quarter of 2005 includes $101.0 million of impairment and executive severance charges, net of minority interest.

Net loss from continuing operations in the third quarter of 2006 was ($12,7) million, as compared to ($12.8) million in the second quarter of 2006, reflecting a reduction in retail net segment losses and decreased depreciation and interest expense partially offset by decreased community net segment income. As compared to the third quarter of 2005 loss from continuing operations of ($117.8) million, net segment income reflects increased net segment income and reduced property management, general and administrative and interest expenses. The 2005 results from continuing operations include $94.7 million of impairment and executive severance charges, net of minority interest.

Net segment income was $33.8 million in the third quarter of 2006 as compared to $34.8 million in the second quarter of 2006, reflecting decreased community net segment income partially offset by decreased retail net segment losses. Community net segment income decreased to $34.9 million the third quarter of 2006 as compared to $36.9 million in the second quarter of 2006 primarily as a result of higher operating expenses primarily for repairs and maintenance. Net segment income increased by $9.9 million as compared to the $23.9 million recorded in the third quarter of 2005, reflecting increased real estate net segment income and reduced retail sales net segment loss.

Retail net segment loss was ($1.1) million in the third quarter of 2006, as compared to ($1.7) million in the second quarter of 2006 and ($4.7) million in the third quarter of 2005. Third quarter 2006 results reflect decreased operating expenses, increased gross margins and lower volume of homes sold. The decreased operating expenses resulted primarily from decreased commissions incurred for leasing activity and decreased advertising expenses.

Net occupancy decreased by 121 residents during the third quarter of 2006 to overall occupancy of 83.3% compared with a net occupancy decrease of 85 residents in the second quarter of 2006 to 83.5% and a net occupancy increase of 351 residents to 85.2% in the third quarter of 2005. As compared to the second quarter of 2006, the Company had approximately equal homeowner and home renter activity. As compared to the third quarter of 2005, the Company had lower homeowner and home renter move-outs, higher homeowner and home renter move-ins and lower home sales and lease with option to purchase transactions.

General and administrative and property management expenses were $5.0 million and $1.5 million, respectively, in the third quarter of 2006 as compared to $5.0 million and $1.6 million in the second quarter of 2006, respectively, and $7.3 million and $3.0 million in the third quarter of 2005, respectively. As compared to the third quarter of 2005, such expenses reflect lower employee costs for salary and benefits and travel and lower costs related to compliance with Company’s internal control evaluation as required by the Sarbanes-Oxley Act. In addition, the third quarter of 2005 includes a $1.0 million charge for executive severance.

Interest expense was $18.7 million in the third quarter of 2006, as compared to $20.0 million in the second quarter of 2006 and $19.6 million in the third quarter of 2005. As compared to the second quarter of 2006, interest expense reflects decreases in rates on the Company’s variable rate debt, primarily due to the refinance of our senior variable rate mortgage and revolving credit mortgage facility, as discussed below. As compared to the third quarter of 2005, interest expense also reflects lower average debt balances as a result of repayments from the net proceeds of community sales in the first nine months of 2006.

Nine Month Operating Results

Consolidated gross revenue for the nine months ended September 30, 2006, was $183.2 million as compared to $193.0 million in the nine months ended September 30, 2005. Real estate revenue was $174.1 million in the nine months ended September 30, 2006 as compared to $156.9 million in the nine months ended September 30, 2005. Retail home sales revenue for the nine months ended September 30, 2006, was $7.6 million as compared to $34.6 million in the nine months ended September 30, 2005.

Net loss attributable to common shareholders for the nine months ended September 30, 2006 was ($13.5) million, or ($0.33) per share, compared to a net loss of ($161.0) million, or ($3.94) per share, in the nine months ended September 30, 2005. Net income in the nine months ended September 30, 2006 includes gains on sales of discontinued operations of $31.1 million, or $0.75 per share, associated with the closing of community sales contracts as discussed below. Net income in the nine months ended September 30, 2005, includes $101.0 million, or $2.47 per share, of impairment and executive severance charges, net of minority interest.

Community Sales Results

During the second quarter of 2006, the Company discontinued, and entered into contracts to sell, two communities in addition to the previously announced contracts to sell 38 communities. Through September 30, 2006, the Company has closed sales for 39 of these 40 communities, resulting in $83.7 million of cash proceeds net of related debt, defeasance and other closing costs of $74.3 million. The Company expects to close the sale of one additional community during 2007. However, there can be no assurance that the Company will realize net cash proceeds from the sale of this community or that the sale under this contract will ultimately close.

For the third quarter and first nine months of 2006, the Company recorded gains totaling $5.2 million and $31.1 million, respectively, on the closing of the above-mentioned community sales. The Company records such gains on sales only when the sales close. In the third quarter of 2005, the Company recorded charges of $6.5 million for the discontinued communities in which the Company expected to incur a loss. There can be no assurances that the remaining community sale transactions will close, or that, if it does close, any gain will be recognized with respect to any such transaction.

Balance Sheet and Liquidity

At September 30, 2006, the Company had $31.1 million in cash and cash equivalents, approximately $105.8 million of additional borrowing capacity available under its lease receivables line of credit and approximately $18.7 million available under its consumer finance facility. On July 11, 2006, as previously announced, the Company entered into a $230 million mortgage debt facility in which it repaid approximately $175 million of its senior variable rate mortgage and its revolving credit mortgage facility and, with the additional $55 million, paid debt issuance expenses and partially repaid its lease receivables facility and its consumer finance facility. The Company also used the excess funds to complete a partial defeasance of one of its communities that is held for sale. As a result of the refinancing, the Company increased the proportion of our fixed rate debt to approximately 91% at September 30, 2006, as compared to 75% at June 30, 2006.

At September 30, 2006, the Company had approximately $1.1 billion in outstanding debt. The weighted average interest rate on the Company’s aggregate outstanding debt was 6.64% at September 30, 2006 as compared to 7,12% at June 30, 2006. Approximately 98% of the Company’s outstanding debt is due in 2008 or later.

Third Quarter 2006 Conference Call

The Company will host a conference call, tomorrow, Friday, November 3, 2006, at 9:00 A.M. Eastern time. The call will be webcast live over the Internet from the Company’s website at www.aboutarc.com under the section titled “Webcast”. Participants should follow the instructions provided on the website for the download and installation of audio applications necessary to join the webcast. The call also can be accessed live over the phone by dialing (800) 289-0533 or (913) 981-5525 for international callers.

A replay will be available at approximately 8:00 P.M. Eastern time after the call and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 for international callers; the password is 2709498. The replay will be available from November 3, 2006 through November 10, 2006, and also will be archived on ARC’s website.

About Affordable Residential Communities Inc.

Affordable Residential Communities Inc. (“ARC”), excluding discontinued operations, currently owns and operates approximately 57,375 homesites located in 276 communities in 24 states. ARC is focused on the acquisition, renovation, repositioning and operation of primarily all-age manufactured home communities with headquarters in Englewood, CO.

CONTACTS

Affordable Residential Communities Inc.

Larry Willard, Chief Executive Officer

(866) 847-8931 invcstor-relations@aboutarc.com

Integrated Corporate Relations, Inc.

Brad Cohen, (203) 682-8211

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ materially from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: general risks affecting the real estate industry; the Company’s ability to maintain or increase rental rates and occupancy with respect to properties currently owned; the Company’s assumptions or) rental home and home sales and financing activity; completion of pending acquisitions and sales, if any, and terms of and timing with respect thereto; the Company’s growth and expansion into new markets or successful integration of acquisitions; and the effect of interest rates. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found in the Company’s 2005 Annual Report on Form 10-K (included under the heading “Forward-Looking Statements”), and in the Company’s Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s internet site (http://www.sec.gov). The forward-looking statements contained in this news release speak only as of the date of the release, and the Company assumes no obligation to update the forward-looking statements or update the reasons why actual results could differ from those contained in the forward-looking statements.

Financial Highlights

	Three Months Ended
($ in thousands, except per share data)	09/30/06			06/30/06			03/31/06			12/31/05			9/30/05			06/30/05			03/31/05
Operating Data
Revenue
Real estate	$	58,584		$	58,241		$	57,295		$	55,088		$	53,931		$	51,722		$	51,258
Retail home sales	1,916			2,993			2,688			4,733			10,773			16,394			7,465
Finance and insurance	678			390			390			428			950			410			136
Total revenue	$	61,178		$	61,624		$	60,373		$	60,249		$	65,654		$	68,526		$	58,859

Avg. monthly rental income per occupied homesite	$	363		$	362		$	355		$	342		$	333		$	327		$	326
Avg. monthly homeowner rental income per homeowner occupied homesite	$	312		$	311		$	306		$	290		$	284		$	285		$	283
Avg. monthly home renter income per occupied rental home	$	595		$	604		$	605		$	607		$	595		$	585		$	627
Average occupied homesites	47,791			47,912			47,881			48,380			48,686			47,866			47,471

Net segment income
Real estate	$	34,921		$	36,914		$	35,700		$	31,235		$	29,455		$	29,531		$	28,993
Retail home sales	(1,147		)	(1,749		)	(811		)	(3,206		)	(4,707		)	(850		)	(2,862		)
Finance and insurance	12			(318		)	(358		)	(394		)	(859		)	(716		)	(292		)
Total net segment income	$	33,786		$	34,847		$	34,531		$	27,635		$	23,889		$	27,965		$	25,839

Net income (loss)
Continuing operations	$	(15,319	)	$	(15,382	)	$	(15,113	)	$	(29,326	)	$	(120,366	)	$	(18,494	)	$	(15,912	)
Discontinued operations	5,473			15,629			11,166			(4,465		)	(6,563		)	301			40
Net income (loss) to common stockholders	$	(9,846	)	$	247		$	(3,947	)	$	(33,791	)	$	(126,929	)	$	(18,193	)	$	(15,872	)

Diluted earnings per share
Continuing operations	$	(0.37	)	$	(0.37	)	$	(0.37	)	$	(0.72	)	$	(2.94	)	$	(0.45	)	$	(0.39	)
Discontinued operations	0.13			0.38			0.27			(0.11		)	(0.16		)	—			—
Net income (loss) to common stockholders	$	(0.24	)	$	0.01		$	(0.10	)	$	(0.83	)	$	(3.10	)	$	(0.45	)	$	(0.39	)

Distributions
Common stock and operating partnership units	$	—		$	—		$	—		$	—		$	—		$	0.1875		$	0.3125
Preferred stock	$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156

Cash Flows
Operating	$	9,831		$	11,516		$	3,939		$	6,734		$	(688	)	$	(5,608	)	$	6,597
Investing	20,740			57,251			60,857			(16,871		)	(56,289		)	(46,458		)	6,670
Financing	(31,657		)	(67,884		)	(61,410		)	(8,015		)	86,566			28,155			(5,726		)
Increase (decrease) in cash	$	(1,086	)	$	883		$	3,386		$	(18,152	)	$	29,589		$	(23,911	)	$	7,541

Share Detail
Weighted average number of shares outstanding
Common stock	41,313			41,292			41,179			40,957			40,886			40,877			40,876
Operating partnership units	1,490			1,512			1,616			1,832			2,038			2,398			2,403
Preferred partnership units (common stock equiv. shares)	1,821			1,641			1,680			1,851			1,890			1,883			1,987
Restricted stock	9			9			11			54			57			38			14
Total weighted average shares outstanding	44,633			44,454			44,486			44,694			44,871			45,196			45,280

	09/30/06			06/30/06			03/31/06			12/31/05			9/30/05			06/30/05			03/31/05
Balance Sheet Data
Total assets	$	1,561,483		$	1,600,539		$	1,658,843		$	1,728,481		$	1,769,472		$	1,804,786		$	1,791,285
Total debt	$	1,053,959		$	1,063,784		$	1,106,853		$	1,146,930		$	1,149,114		$	1,033,722		$	983,172

Market Value
Common equity	$	400,485		$	444,045		$	433,534		$	390,458		$	414,678		$	546,759		$	517,078
Preferred equity	118,150			114,250			109,550			97,000			104,250			128,250			125,500
OP units	14,373			16,158			15,929			17,449			18,623			30,190			30,334
Preferred partnership units	17,642			17,642			17,642			17,642			17,642			25,142			25,142
Total market value of equity incl. minority interest	$	550,650		$	592,095		$	576,655		$	522,549		$	555,193		$	730,342		$	698,055
Debt / total assets	67.5		%	66.5		%	66.7		%	66.4		%	64.9		%	57.3		%	54.9		%
Debt / total market capitalization	65.7		%	64.2		%	65.7		%	68.7		%	67.4		%	58.6		%	58.5		%

Other Data
Total properties	276			276			276			276			276			276			276
Total homesites	57,375			57,359			57,365			57,248			57,232			57,430			57,922
Occupied homesites	47,783			47,904			47,989			47,995			48,767			48,416			47,631
Occupancy percentage – total portfolio	83.3		%	83.5		%	83.7		%	83.8		%	85.2		%	84.3		%	82.2		%

Balance Sheets

($ in thousands)	09/30/06			06/30/06			03/31/06			12/31/05			09/30/05			06/30/05			03/31/05
Assets
Rental property
Land	$	194,532		$	194,532		$	194,507		$	194,557		$	194,522		$	194,522		$	194,522
Land improvements and buildings	1,192,172			1,191,605			1,191,187			1,191,538			1,190,683			1,202,654			1,187,504
Manufactured homes and improvements	265,482			262,850			261,552			261,164			250,797			222,222			192,496
Furniture, equipment and vehicles	13,900			13,582			12,955			16,046			14,351			13,872			13,277
Rental property, gross	1,666,086			1,662,569			1,660,201			1,663,305			1,650,353			1,633,270			1,587,799
Accumulated depreciation
On improvements to land and buildings	(198,443		)	(186,432		)	(174,130		)	(164,259		)	(154,270		)	(141,694		)	(128,373		)
On rental homes and improvements	(56,527		)	(50,052		)	(43,629		)	(37,077		)	(29,493		)	(26,339		)	(25,600		)
On furniture, equipment and vehicles	(7,645		)	(7,053		)	(6,441		)	(7,280		)	(6,502		)	(5,966		)	(5,456		)
Total accumulated depreciation	(262,615		)	(243,537		)	(224,200		)	(208,616		)	(190,265		)	(173,999		)	(159,429		)
Rental property, net	1,403,471			1,419,032			1,436,001			1,454,689			1,460,088			1,459,271			1,428,370

Assets held for sale	15,012			28,814			77,331			130,733			133,684			140,112			144,087
Cash and cash equivalents	31,109			32,195			31,312			27,926			46,078			16,489			40,400
Restricted cash	6,782			6,648			6,702			7,022			3,419			3,712			7,330
Tenant and other receivables, net	4,481			4,449			3,368			3,945			6,408			8,659			4,397
Notes receivable, net	31,266			32,485			33,622			33,418			31,501			23,199			14,009
Inventory	30			96			13			50			125			307			4,696
Loan origination costs, net	17,834			14,982			15,417			16,178			16,931			13,747			13,071
Loan reserves	34,906			38,635			35,307			35,088			39,784			35,453			31,756
Goodwill	—			—			—			—			3,990			78,783			78,783
Lease intangibles and customer relationships, net	7,858			9,259			10,660			12,055			13,456			14,857			16,091
Prepaid expenses and other assets	8,734			13,944			9,110			7,377			14,008			10,198			8,295
Total assets	$	1,561,483		$	1,600,539		$	1,658,843		$	1,728,481		$	1,769,472		$	1,804,786		$	1,791,285

Liabilities and Stockholders’ Equity
Notes payable	$	1,053,959		$	1,063,784		$	1,106,853		$	1,146,930		$	1,149,114		$	1,033,722		$	983,172
Liabilities related to assets held for sale	361			20,721			37,279			56,220			59,351			60,252			61,792
Accounts payable and accrued expenses	28,447			28,012			27,382			34,545			33,768			40,197			47,768
Tenant deposits and other liabilities	16,795			16,345			15,957			14,789			15,384			13,954			12,825
Total liabilities	1,099,562			1,128,862			1,187,471			1,252,484			1,257,617			1,148,125			1,105,557

Minority interest	28,704			29,195			29,293			31,902			33,512			51,440			54,918

Stockholders’ equity
Preferred stock	119,108			119,108			119,108			119,108			119,108			119,108			119,108
Common stock	413			413			413			410			410			410			409
Paid-in capital	794,449			793,868			793,712			791,201			791,232			790,983			790,390
Accumulated other comprehensive income	—			—			—			583			1,008			1,206			1,519
Retained deficit	(480,753		)	(470,907		)	(471,154		)	(467,207		)	(433,415		)	(306,486		)	(280,616		)
Total stockholders’ equity	433,217			442,482			442,079			444,095			478,343			605,221			630,810
Total liabilities and stockholders’ equity	$	1,561,483		$	1,600,539		$	1,658,843		$	1,728,481		$	1,769,472		$	1,804,786		$	1,791,285

Statements of Operations

	Three Months Ended
($ in thousands; except per share data)	09/30/06			06/30/06			03/31/06			12/31/05			09/30/05			06/30/05			03/31/05

Revenue
Communities	$	58,584		$	58,241		$	57,295		$	55,088		$	53,931		$	51,722		$	51,258
Retail home sales	1,916			2,993			2,688			4,733			10,773			16,394			7,465
Finance and insurance	678			390			390			428			950			410			136
Total revenue	61,178			61,624			60,373			60,249			65,654			68,526			58,859

Operating Expenses
Communities	18,847			16,299			16,455			19,467			20,538			18,121			18,298
Retail home sales	3,063			4,742			3,499			7,939			15,480			17,244			10,327
Finance and insurance	666			708			748			822			1,809			1,126			428
Real estate taxes	4,816			5,028			5,140			4,386			3,938			4,070			3,967
Property management	1,549			1,586			1,592			1,815			3,030			2,368			2,143
General and administrative	4,974			4,991			4,421			8,417			7,334			6,389			5,494
Total expenses	33,915			33,354			31,855			42,846			52,129			49,318			40,657

Early termination of debt	556			—			—			—			—			—			—
Depreciation and amortization	21,145			21,790			21,624			23,164			19,614			18,773			16,309
Loss on sale of airplane	—			—			541			—			—			—			—
Real estate and retail home asset impairment	—			—			—			(1,336		)	23,158			—			—
Goodwill impairment	—			—			—			3,990			74,793			—			—
Net consumer finance interest expense	—			—			—			—			20			204			445
Interest expense	18,740			20,016			19,589			20,251			19,577			17,044			15,698
Interest income	(255		)	(448		)	(423		)	(883		)	(743		)	(269		)	(372		)
Income (loss) before minority interest	(12,923		)	(13,088		)	(12,813		)	(27,783		)	(122,894		)	(16,544		)	(13,878		)
Minority interest	182			284			278			1,035			5,106			628			544
Income (loss) from continuing operations	(12,741		)	(12,804		)	(12,535		)	(26,748		)	(117,788		)	(15,916		)	(13,334		)
Discontinued operations, net	5,473			15,629			11,166			(4,465		)	(6,563		)	301			40
Income (loss) before preferred stock dividend	(7,268		)	2,825			(1,369		)	(31,213		)	(124,351		)	(15,615		)	(13,294		)
Preferred stock dividend	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)
Income (loss) available to common stockholders	$	(9,846	)	$	247		$	(3,947	)	$	(33,791	)	$	(126,929	)	$	(18,193	)	$	(15,872	)

Earnings per share
Basic	$	(0.24	)	$	0.01		$	(0.10	)	$	(0.83	)	$	(3.10	)	$	(0.45	)	$	(0.39	)
Diluted	$	(0.24	)	$	0.01		$	(0.10	)	$	(0.83	)	$	(3.10	)	$	(0.45	)	$	(0.39	)

Distributions per share/unit
Common stock/operating partnership units	$	—		$	—		$	—		$	—		$	—		$	0.1875		$	0.3125
Preferred stock	$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156		$	0.5156

Weighted average shares outstanding
Basic	41,313			41,292			41,179			40,957			40,886			40,877			40,876
Diluted	44,633			44,454			44,486			44,694			44,871			45,196			45,280

Statement of Cash Flows

	Three Months Ended
	09/30/06			06/30/06			03/31/06			12/31/05			09/30/05			06/30/05			03/31/05
Cash flow from operating activities
Net income (loss)	$	(7,268	)	$	2,825		$	(1,369	)	$	(31,213	)	$	(124,351	)	$	(15,615	)	$	(13,294	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	21,145			21,790			21,624			23,164			19,615			18,773			16,309
Amortization of loan origination costs	1,123			1,611			1,434			1,960			1,875			1,728			1,693
Adjustments to fair value for interest rate caps	137			(124		)	(312		)	(2		)	(7		)	8			219
Stock and option grant compensation expense	352			49			49			(25		)	81			312			14
Partnership preferred unit distributions declared	276			276			276			275			299			393			393
Minority interest	(458		)	(706		)	(408		)	(1,509		)	(5,701		)	(1,021		)	(937		)
Real estate and retail home asset impairment	—			—			—			(1,336		)	23,158			—			—
Goodwill impairment	—			—			—			3,990			74,793			—			—
Depreciation and minority interest included in income from discontinued operations	195			686			470			(409		)	1,216			1,710			2,066
(Gain) loss on sale of discontinued operations	(5,221		)	(15,613		)	(10,296		)	—			—			(52		)	730
Loss on sale of airplane	—			—			541			—			—			—			—
Impairment charges on assets held for sale	—			—			—			3,708			6,546			—			—
(Gain) loss on sale of manufactured homes	(414		)	(428		)	(364		)	198			(622		)	(1,718		)	(86		)
Changes in operating assets and liabilities, net of acquisitions	(36		)	1,150			(7,706		)	7,933			2,410			(10,126		)	(510		)
Net cash provided by (used in) operating activities	9,831			11,516			3,939			6,734			(688		)	(5,608		)	6,597

Cash flow from investing activities
Purchases of manufactured homes	(4,052		)	(4,729		)	(1,964		)	(14,274		)	(38,679		)	(56,619		)	(11,681		)
Proceeds from community sales	20,414			62,627			60,804			—			—			11,343			37,378
Proceeds from manufactured home sales	1,835			2,867			2,561			2,599			3,037			5,774			7,240
Proceeds from sale of airplane	—			—			1,170			—			—			—			—
Community improvements and equipment purchases	(1,052		)	(240		)	(1,815		)	(6,304		)	(16,387		)	(6,246		)	(26,359		)
Restricted cash	(134		)	54			320			(3,603		)	293			3,618			(9		)
Loan reserves	3,729			(3,328		)	(219		)	4,711			(4,553		)	(4,328		)	101
Net cash provided by (used in) investing activities	20,740			57,251			60,857			(16,871		)	(56,289		)	(46,458		)	6,670

Cash flow from financing activities
Proceeds from issuance of debt	230,318			7,500			23,035			17,688			156,652			91,825			63,658
Repayment of debt	(260,046		)	(66,454		)	(80,918		)	(21,090		)	(47,647		)	(42,809		)	(51,543		)
Deposits on refinance	4,900			(4,900		)	—			—			—			—			—
Payment of common and OP Unit dividends	—			—			—			—			(8,103		)	(13,524		)	(13,521		)
Payment of preferred dividends	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)
Payment of partnership preferred distributions	(276		)	(276		)	(276		)	(275		)	(299		)	(393		)	(393		)
Repurchase of OP Units for cash	—			—			—			(1		)	(4,572		)	(1,836		)	—
Repurchase of PPUs	—			—			—			—			(2,501		)	—			—
Loan origination costs	(3,975		)	(1,176		)	(673		)	(1,759		)	(4,386		)	(2,530		)	(1,349		)
Net cash provided by (used in) financing activities	(31,657		)	(67,884		)	(61,410		)	(8,015		)	86,566			28,155			(5,726		)
Net increase (decrease) in cash and cash equivalents	(1,086		)	883			3,386			(18,152		)	29,589			(23,911		)	7,541
Cash and cash equivalents, beginning of period	32,195			31,312			27,926			46,078			16,489			40,400			32,859
Cash and cash equivalents, end of period	$	31,109		$	32,195		$	31,312		$	27,926		$	46,078		$	16,489		$	40,400

Segment Income / Real Estate Net Segment Income Reconciliation

	Three Months Ended
($ in thousands)	09/30/06			06/30/06			03/31/06			12/31/05			9/30/05			06/30/05			03/31/05
Revenue
Real estate	$	58,584		$	58,241		$	57,295		$	55,088		$	53,931		$	51,722		$	51,258
Retail homes sales	1,916			2,993			2,688			4,733			10,773			16,394			7,465
Finance and insurance	678			390			390			428			950			410			136
Segment revenue	61,178			61,624			60,373			60,249			65,654			68,526			58,859

Expenses
Property operations	18,847			16,299			16,455			19,467			20,538			18,121			18,298
Real estate taxes	4,816			5,028			5,140			4,386			3,938			4,070			3,967
Retail homes sales	3,063			4,742			3,499			7,939			15,480			17,244			10,327
Finance and insurance	666			708			748			822			1,809			1,126			428
Segment expenses	27,392			26,777			25,842			32,614			41,765			40,561			33,020

Net Segment Income
Real estate	34,921			36,914			35,700			31,235			29,455			29,531			28,993
Retail homes sales	(1,147		)	(1,749		)	(811		)	(3,206		)	(4,707		)	(850		)	(2,862		)
Finance and insurance	12			(318		)	(358		)	(394		)	(859		)	(716		)	(292		)
Net segment income	33,786			34,847			34,531			27,635			23,889			27,965			25,839
Other expenses:
Property management	1,549			1,586			1,592			1,815			3,030			2,368			2,143
General and administrative	4,974			4,991			4,421			8,417			7,334			6,389			5,494
Early termination of debt	556			—			—			—			—			—			—
Depreciation and amortization	21,145			21,790			21,624			23,164			19,614			18,773			16,309
Loss on sale of airplane	—			—			541			—			—			—			—
Retail home sales asset impairment and other exp.	—			—			—			(1,336		)	23,158			—			—
Goodwill impairment	—			—			—			3,990			74,793			—			—
Net consumer finance interest expense	—			—			—			—			20			204			445
Interest expense	18,740			20,016			19,589			20,251			19,577			17,044			15,698
Total other expenses	46,964			48,383			47,767			56,301			147,526			44,778			40,089
Interest income	255			448			423			883			743			269			372
Loss before allocation to minority interest	(12,923		)	(13,088		)	(12,813		)	(27,783		)	(122,894		)	(16,544		)	(13,878		)
Minority interest	182			284			278			1,035			5,106			628			544
Net loss from continuing operations	(12,741		)	(12,804		)	(12,535		)	(26,748		)	(117,788		)	(15,916		)	(13,334		)
Income (loss) from discontinued operations	243			659			1,650			(4,665		)	(6,859		)	266			773
Gain (loss) on sale of discontinued operations	5,220			15,613			10,297			—			—			52			(730		)
Income tax on discontinued operations	206			(74		)	(371		)	—			—			—			—
Minority interest in discontinued operations	(196		)	(569		)	(410		)	200			296			(17		)	(3		)
Net income (loss)	(7,268		)	2,825			(1,369		)	(31,213		)	(124,351		)	(15,615		)	(13,294		)

Preferred stock dividend	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)	(2,578		)
Net income (loss) avail. to common stockholders	$	(9,846	)	$	247		$	(3,947	)	$	(33,791	)	$	(126,929	)	$	(18,193	)	$	(15,872	)

Results include charges as scheduled below:
Loss on sale of airplane	$	—		$	—		$	541		$	—		$	—		$	—		$	—
Early termination of debt	556			—			—			—			—			—			—
Real estate and retail home asset impairment	—			—			—			(1,336		)	23,158			—			—
Goodwill impairment	—			—			—			3,990			74,793			—			—
Impairment charges included in discontinued operations	—			—			—			3,708			6,546			—			—
Executive severance charges	—			—			—			1,870			1,000			—			—
Minority interest portion of above	(19		)	—			(19		)	(354		)	(4,531		)	—			—
Total	$	537		$	—		$	522		$	7,878		$	100,966		$	—		$	—

Real Estate Segment

	2006									2005
($ in thousands)	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
For the full quarter noted:
Average total homesites	57,370			57,361			57,336			57,239			57,335			57,813			57,938
Average total rental homes	9,490			9,339			9,271			9,145			8,434			7,789			7,568
Average occupied homesites – homeowners	39,335			39,779			40,276			40,782			41,338			41,573			41,858
Average occupied homesites – home renters	8,456			8,133			7,605			7,598			7,348			6,293			5,613
Average occupied homesites – total	47,791			47,912			47,881			48,380			48,686			47,866			47,471
Average occupancy – rental homes	89.1		%	87.0		%	82.0		%	83.1		%	87.1		%	80.8		%	74.2		%
Average occupancy – total	83.3		%	83.5		%	83.5		%	84.5		%	84.9		%	82.8		%	81.9		%

For the full quarter noted:
Real estate revenue
Homeowner rental income	$	36,801		$	37,082		$	36,951		$	35,489		$	35,276		$	35,570		$	35,594
Home renter rental income	15,090			14,764			13,825			13,841			13,108			11,037			10,562
Other	223			201			217			259			245			308			270
Rental income	52,114			52,047			50,993			49,589			48,629			46,915			46,426
Utility and other income	6,470			6,194			6,302			5,499			5,302			4,807			4,832
Total real estate revenue	58,584			58,241			57,295			55,088			53,931			51,722			51,258

Real estate expenses
Property operations expenses	18,847			16,299			16,455			19,467			20,538			18,121			18,298
Real estate taxes	4,816			5,028			5,140			4,386			3,938			4,070			3,967
Total real estate expenses	23,663			21,327			21,595			23,853			24,476			22,191			22,265

Real estate net segment income	$	34,921		$	36,914		$	35,700		$	31,235		$	29,455		$	29,531		$	28,993

Average monthly rental income per total occupied homesite (a)	$	363		$	362		$	355		$	342		$	333		$	327		$	326
Average monthly homeowner rental income per homeowner occupied homesite (b)	$	312		$	311		$	306		$	290		$	284		$	285		$	283
Average monthly home renter income per occupied rental home (c)	$	595		$	604		$	605		$	607		$	595		$	585		$	627

(a) Average monthly rental income per occupied homesite is defined as total rental income (including homeowner, home renter, and other) divided by average total occupied homesites divided by the number of months in the period.

(b) Average monthly homeowner rental income per homeowner occupied homesite is defined as homeowner rental income divided by average homeowner occupied homesites divided by the number of months in the period.

(c) Average monthly home renter income per occupied rental home is defined as total home renter rental income divided by average occupied rental homes divided by the number of months in the period.

Occupancy

	2006						2005
($ in thousands)	3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr
At end of quarter:
Total communities owned	276		276		276		276		276		276		276
Total homesites	57,375		57,359		57,365		57,248		57,232		57,430		57,922
Occupied homesites	47,783		47,904		47,989		47,995		48,767		48,416		47,631
Total rental homes owned	9,559		9,420		9,285		9,273		8,889		8,045		7,640
Occupied rental homes	8,643		8,336		7,937		7,468		7,672		6,914		5,978

Homeowner activity :
Homeowner move ins	235		278		253		165		66		135		252
Homeowner move outs	(527	)	(540	)	(548	)	(584	)	(629	)	(741	)	(688	)
Home sales	91		130		132		238		583		902		739
Repossession move outs & other	(227	)	(352	)	(312	)	(387	)	(427	)	(447	)	(602	)
Net homeowner activity	(428	)	(484	)	(475	)	(568	)	(407	)	(151	)	(299	)
Home renter activity :
Home renter move ins	895		945		927		344		416		1,026		838
Home renter lease to own move ins	478		403		389		433		1,764		1,189		793
Home renter move outs	(1,066	)	(949	)	(847	)	(981	)	(1,422	)	(1,279	)	(1,042	)
Net home renter activity	307		399		469		(204	)	758		936		589
Net activity	(121	)	(85	)	(6	)	(772	)	351		785		290
Acquisitions and other- homeowners	—		—		—		—		—		—		—
Acquisitions and other- home renters	—		—		—		—		—		—		—
Net activity, including acquisitions and other	(121	)	(85	)	(6	)	(772	)	351		785		290
Net homeowner activity	(428	)	(484	)	(475	)	(568	)	(407	)	(151	)	(299	)
Occupied homeowner sites, beginning of period	39,568		40,052		40,527		41,095		41,502		41,653		41,952
Occupied homeowner sites, end of period	39,140		39,568		40,052		40,527		41,095		41,502		41,653
Net home renter activity	307		399		469		(204	)	758		936		589
Occupied home renter sites, beginning of period	8,336		7,937		7,468		7,672		6,914		5,978		5,389
Occupied home renter sites, end of period	8,643		8,336		7,937		7,468		7,672		6,914		5,978
Total occupied homesites, end of period	47,783		47,904		47,989		47,995		48,767		48,416		47,631
Occupancy percentage	83.3	%	83.5	%	83.7	%	83.8	%	85.2	%	84.3	%	82.2	%

Operating Results by Occupancy Level (Last 5 Quarters)

			Q3 2006								Q2 2006								Q1 2006
Occupancy		Home-					Margin		EoP						Margin		EoP						Margin		EoP
09/30/06	Comm.	sites	Rev.		NSI **		%		Occ %		Rev.		NSI **		%		Occ %		Rev.		NSI **		%		Occ %

*Total Real Estate Segment*
# 90 - 100%	121	22,463	$	26,838	$	17,273	64.4	%	95.6	%	$	26,602	$	17,943	67.5	%	95.5	%	$	26,350	$	17,418	66.1	%	95.3	%
# 80 - 89.9%	71	16,018	17,292		10,490		60.7	%	85.1	%	16,989		10,708		63.0	%	85.5	%	16,699		10,519		63.0	%	85.3	%
# 70 - 79.9%	40	9,525	8,032		4,384		54.6	%	75.1	%	7,989		4,791		60.0	%	75.1	%	7,874		4,729		60.1	%	75.6	%
# < 70%	44	9,369	6,422		2,774		43.2	%	59.1	%	6,661		3,472		52.1	%	60.1	%	6,372		3,034		47.6	%	61.1	%

Total	276	57,375	$	58,584	$	34,921	59.6	%	83.3	%	$	58,241	$	36,914	63.4	%	83.5	%	$	57,295	$	35,700	62.3	%	83.7	%

			Q4 2005								Q3 2005								Trailing 12 Months
Occupancy		Home-					Margin		EoP						Margin		EoP						Margin		Avg.
09/30/06	Comm.	sites	Rev.		NSI **		%		Occ %		Rev.		NSI **		%		Occ %		Rev.		NSI **		%		Occ %

*Total Real Estate Segment*
# 90 - 100%	121	22,463	$	24,848	$	14,562	58.6	%	95.0	%	$	24,133	$	14,927	61.9	%	95.1	%	$	104,638	$	67,196	64.2	%	95.3	%
# 80 - 89.9%	71	16,018	16,053		8,736		54.4	%	85.4	%	15,496		8,403		54.2	%	86.9	%	67,033		40,453		60.3	%	85.3	%
# 70 - 79.9%	40	9,525	7,708		4,276		55.5	%	75.7	%	7,772		3,781		48.7	%	78.3	%	31,603		18,180		57.5	%	75.4	%
# < 70%	44	9,369	6,479		3,661		56.5	%	62.7	%	6,530		2,344		35.9	%	65.4	%	25,934		12,941		49.9	%	60.7	%

Total	276	57,375	$	55,088	$	31,235	56.7	%	83.8	%	$	53,931	$	29,455	54.6	%	85.2	%	$	229,208	$	138,770	60.5	%	83.6	%

		Comm.

Moved from 80-89% bucket to the 90%+ bucket		6
Moved from 70-79% bucket to the 80-89% bucket		9
Moved from <70% bucket to the 70-79% bucket		2
Moved up 2 or more buckets (Ex. 70-79% to 90%+)		0
Stayed in the same occupancy bucket		249
Went to lower occupancy bucket		10

		276

Notes:

** NSI = Net Segment Income

Affordable Residential Communities

Top 20 Markets

		Percentage
	Number of	of
	Total	Total		Occupancy
Markets (a)	Homesites	Homesites		09/30/06		06/30/06		03/31/06		12/31/05		09/30/05		06/30/05		03/31/05

Dallas – Ft. Worth, TX	7,183	12.5	%	80.7	%	80.2	%	80.4	%	81.4	%	84.2	%	82.7	%	79.8	%
Atlanta, GA	4,969	8.7	%	88.6	%	89.2	%	89.1	%	89.1	%	90.0	%	89.2	%	86.7	%
Salt Lake City, UT	3,797	6.6	%	94.0	%	93.4	%	92.6	%	92.2	%	93.1	%	92.1	%	91.1	%
Front Range of CO	3,290	5.7	%	83.4	%	83.8	%	84.0	%	84.9	%	88.2	%	89.1	%	87.0	%
Kansas City – Lawrence – Topeka, MO – KS	2,426	4.2	%	85.9	%	87.4	%	87.2	%	87.6	%	89.6	%	89.6	%	88.1	%
Jacksonville, FL	2,259	3.9	%	90.6	%	90.2	%	90.7	%	89.5	%	89.7	%	88.2	%	86.9	%
Wichita, KS	2,162	3.8	%	60.5	%	61.9	%	64.6	%	64.8	%	67.5	%	66.7	%	62.7	%
St. Louis, MO – IL	1,917	3.3	%	78.6	%	79.5	%	79.1	%	80.3	%	80.9	%	81.0	%	78.7	%
Oklahoma City, OK	1,891	3.3	%	77.6	%	78.2	%	80.1	%	78.4	%	80.5	%	78.5	%	77.1	%
Orlando, FL	1,858	3.2	%	92.9	%	92.9	%	92.4	%	91.1	%	91.0	%	89.2	%	87.9	%
Greensboro – Winston Salem, NC	1,396	2.4	%	65.2	%	66.0	%	67.0	%	68.5	%	69.8	%	69.5	%	68.2	%
Davenport – Moline – Rock Island, IA – IL	1,382	2.4	%	86.5	%	86.5	%	86.9	%	87.0	%	87.8	%	86.8	%	83.9	%
Elkhart – Goshen, IN	1,209	2.1	%	87.0	%	87.5	%	88.5	%	86.5	%	86.8	%	85.6	%	82.1	%
Charleston – North Charleston, SC	1,184	2.1	%	80.6	%	81.5	%	83.0	%	84.1	%	83.7	%	81.8	%	77.9	%
Raleigh – Durham – Chapel Hill, NC	1,092	1.9	%	90.7	%	91.5	%	90.3	%	90.7	%	90.1	%	85.7	%	83.4	%
Sioux City, IA – NE	994	1.7	%	81.1	%	81.2	%	79.6	%	79.3	%	80.5	%	79.8	%	78.5	%
Syracuse, NY	939	1.6	%	59.7	%	61.0	%	61.3	%	64.9	%	67.5	%	64.7	%	54.2	%
Des Moines, IA	859	1.5	%	87.8	%	88.1	%	88.0	%	88.0	%	88.5	%	86.9	%	86.5	%
Flint, MI	838	1.5	%	71.1	%	72.3	%	72.9	%	73.0	%	73.4	%	74.0	%	72.4	%
Pueblo, CO	752	1.3	%	65.6	%	65.0	%	67.0	%	69.1	%	70.5	%	70.0	%	71.0	%

Subtotal – Top 20 Markets	42,397	73.7	%	82.5	%	82.8	%	83.0	%	83.3	%	84.8	%	83.7	%	81.3	%

All Other Markets	14,978	26.3	%	85.6	%	85.6	%	85.4	%	85.4	%	86.5	%	85.9	%	84.8	%

Total / Weighted Average	57,375	100.0	%	83.3	%	83.5	%	83.7	%	83.8	%	85.2	%	84.3	%	82.2	%

	Total	Total		Rental Income Per Occupied Homesite Per Month (b)
Markets (a)	Homesites	Homesites		09/30/06		06/30/06		03/31/06		12/31/05		09/30/05		06/30/05		03/31/05

Dallas – Ft. Worth, TX	7,183	12.5	%	$	401	$	400	$	384	$	370	$	347	$	349	$	353
Atlanta, GA	4,969	8.7	%	390		389		387		371		353		349		345
Salt Lake City, UT	3,797	6.6	%	372		368		364		351		348		348		348
Front Range of CO	3,290	5.7	%	462		463		460		450		430		429		425
Kansas City – Lawrence – Topeka, MO – KS	2,426	4.2	%	321		319		315		295		291		285		280
Jacksonville, FL	2,259	3.9	%	376		374		371		363		350		349		348
Wichita, KS	2,162	3.8	%	310		316		301		279		270		273		287
St. Louis, MO – IL	1,917	3.3	%	336		323		312		306		296		290		287
Oklahoma City, OK	1,891	3.3	%	324		327		317		298		281		289		295
Orlando, FL	1,858	3.2	%	397		397		392		383		375		377		364
Greensboro – Winston Salem, NC	1,396	2.4	%	301		303		296		277		273		270		259
Davenport – Moline – Rock Island, IA – IL	1,382	2.4	%	309		303		295		277		267		265		265
Elkhart – Goshen, IN	1,209	2.1	%	382		384		383		358		335		326		319
Charleston – North Charleston, SC	1,184	2.1	%	305		309		307		276		267		251		241
Raleigh – Durham – Chapel Hill, NC	1,092	1.9	%	397		394		385		365		348		340		344
Sioux City, IA – NE	994	1.7	%	340		337		330		305		295		290		285
Syracuse, NY	939	1.6	%	378		383		380		376		345		340		342
Des Moines, IA	859	1.5	%	360		359		353		318		313		307		302
Flint, MI	838	1.5	%	397		402		395		378		361		358		352
Pueblo, CO	752	1.3	%	329		334		331		321		318		321		327

Subtotal – Top 20 Markets	42,397	73.7	%	373		371		365		349		335		334		332

All Other Markets	14,978	26.3	%	338		336		331		317		312		310		310

Total / Weighted Average	57,375	100.0	%	$	363	$	362	$	355	$	342	$	333	$	327	$	326

(a) Markets are defined by our management.

(b) Rental Income is defined as homeowner rental income, home rental income, and other rental income reduced by move-in bonuses and rent concessions.

Asset Highlights

Capital Expenditure Summary

	Three Months Ended
($ in thousands)	09/30/06		06/30/06		03/31/06		12/31/05		9/30/05		06/30/05		03/31/05

Recurring capital expenditures (a)	$	471	$	562	$	378	$	987	$	2,778	$	2,905	$	3,352

Recurring capital expenditures per avg site per annum	33		39		26		69		194		201		231

Homesite upgrades (b)	175		242		453		2,327		3,659		2,959		2,436

Expansion, development, renovation & improvements (c)	269		166		355		1,944		2,805		4,046		6,226

Other capital expenditures (d)	—		—		—		—		—		191		215
Total capital improvements	$	915	$	970	$	1,186	$	5,258	$	9,242	$	10,101	$	12,229

Recurring capital expenditures including discontinued operations (a)	$	471	$	562	$	378	$	987	$	2,778	$	3,111	$	3,835

Manufactured Home Data

	Three Months Ended
($ in thousands)	09/30/06		06/30/06		03/31/06		12/31/05		9/30/05		06/30/05		03/31/05

Home purchase data
Number of manufactured homes purchased (e)	230		265		144		622		1,427		1,307		982

Home sales data
New homes sold	3		12		11		49		114		186		38
Used homes sold	88		118		121		189		469		716		701
Total homes sales	91		130		132		238		583		902		739

Average homes sale price	$	21,055	$	23,023	$	20,364	$	19,887	$	18,479	$	18,175	$	10,101

	09/30/06		06/30/06		03/31/06		12/31/05		9/30/05		06/30/05		03/31/05
Home Inventory Data
Home inventory	9,559		9,420		9,285		9,273		8,889		8,045		7,640

Gross asset value including setup costs ($000’s)	$	265,482	$	262,850	$	261,552	$	261,164	$	250,797	$	222,222	$	192,496
Gross asset value per home	$	27,773	$	27,903	$	28,169	$	28,164	$	28,214	$	27,622	$	25,196

Current asset value including setup costs ($000’s)	$	208,955	$	212,798	$	217,923	$	224,087	$	221,304	$	195,883	$	166,896
Current asset value per home	$	21,860	$	22,590	$	23,470	$	24,166	$	24,896	$	24,348	$	21,845

Dispositions

		Number of		Number of		Net Assets			Gain (Loss)		Impairment
Transaction	Quarter	Communities		Homesites		Held for Sale			on Sale		Loss

Discontinued	3rd Quarter 2005	79		13,393		$	139,517		$	—	$	(34,794	)
Recontinued	4th Quarter 2005	(41	)	(8,067	)	(67,239		)	—		24,540
		38		5,326		72,278			$	—	$	(10,254	)
Closed	1st Quarter 2006	(27	)	(2,860	)	(34,497		)	10,296		—
Closed	2nd Quarter 2006	(9	)	(1,811	)	(37,881		)	15,613		—
Discontinued	2nd Quarter 2006	2		334		8,193			—		—
Closed	3rd Quarter 2006	(3	)	(639	)	6,558			5,220		—
		1		350		$	14,651		$	31,129	$	(10,254	)

(a) Includes capital expenditures necessary to maintain asset quality, including purchasing and replacing assets used to operate the community. These capital expenditures include repairs of roads, driveways, pools, renovation of clubhouses and replacement or installation of street lights, playground equipment, signage, maintenance facilities, manager housing and property vehicles. These capital expenditures do not include water meters, sheds, homes or community acquisitions. Our minimum capitalizable amount of a project is $500.

(b) Includes capital expenditures that improve homesites for placement of a new home typically when an existing older home moves out and the site is prepared for a new home. Many of these activities are governed by manufacturers’ installation requirements and state building codes and include grading, electrical, concrete, landscaping, drainage and water/sewer lines. We estimate that the new home will be in the community for an average of at least 20 years although we depreciate these costs over 10 years.

(c) These are the costs to develop, expand, renovate and improve communities following acquisition. They include costs for engineering, driveways, paving, utilities, and amenities.

(d) These costs include capitalized interest and wages.

(e) Home purchases for the third quarter 2006 includes 32 homes transferred from discontinued operations.

		Debt Analysis
		As of September 30, 2006

	Debt		% of Total		Interest		Maturity
($ in thousands)	Amount		Debt		Rate		Date
Fixed Rate Debt
Senior fixed rate mortgage due 2009	$	85,041	8.1	%	5.05	%	2009
Senior fixed rate mortgage due 2012	278,452		26.4	%	7.35	%	2012
Senior fixed rate mortgage due 2014	190,122		18.0	%	5.53	%	2014
Senior fixed rate mortgage due 2016	170,000		16.1	%	6.24	%	2016
Senior exchangeable notes due 2025	96,600		9.2	%	7.50	%	2025
Various individual fixed rate mortgages	135,110		12.8	%	7.23	%	2006-2031
Other loans due 2012	1,203		0.2	%	6.97	%	2012
Total fixed rate debt	956,528		90.8	%	6.58	%

Variable Rate Debt (a)
Senior variable rate mortgage due 2009	60,000		5.7	%	6.12	%	2009
Trust preferred securities due 2035	25,780		2.4	%	8.62	%	2035
Lease receivables facility due 2008	10,000		0.9	%	9.45	%	2008
Floorplan lines of credit due 2007	1,651		0.2	%	9.00	%	2007
Total variable rate debt	97,431		9.2	%	7.17	%

Total debt	$	1,053,959	100.0	%	6.64	%

% Fixed / Variable
Fixed	$	956,528	90.8	%	6.58	%
Variable	97,431		9.2	%	7.17	%
Total debt	$	1,053,959	100.0	%	6.64	%

	2006		2007		2008		2009		2010		Thereafter
Maturity Schedule
Senior fixed rate mortgages	$	1,877	$	7,714	$	8,116	$	88,998	$	7,676	$	609,234
Various individual fixed rate mortgages (b)	5,724		2,023		45,069		12,144		5,242		64,908
Senior variable rate mortgage (c)	—		—		—		60,000		—		—
Senior exchangeable notes due 2025	—		—		—		—		—		96,600
Floorplan lines of credit	—		1,651		—		—		—		—
Trust preferred securities due 2035	—		—		—		—		—		25,780
Lease receivables facility	—		—		10,000		—		—		—
Other debt	26		109		117		125		135		691
Total debt maturities	$	7,627	$	11,497	$	63,302	$	161,267	$	13,053	$	797,213

(a) In February 2004 and July 2006, we purchased interest rate caps covering our senior variable rate mortgage.

(b) Includes debt premium of $4,811 related to indebtedness assumed in HTA and DAM acquisitions as of September 30, 2006.

(c) At our option, and subject to certain conditions, we may extend the senior variable rate mortgage due 2009 for two additional twelve-month periods.

Investor Inquiries

Common stock symbol:	ARC
Preferred stock symbol:	ARC-PA

Exchange Traded:	NYSE

2006

2005

Common Stock Dividend Information

Declaration date

N/A

5/23/2005

3/16/2005

Record date

N/A

6/30/2005

3/31/2005

Payment date

N/A

7/15/2005

4/15/2005

Distributions per share

N/A

0.1875

0.3125

Preferred Stock Dividend Information

Declaration date

9/20/2006

6/8/2006

3/2/2006

12/14/2005

9/21/2005

5/23/2005

3/16/2005

Record date

10/13/2006

7/14/2006

4/14/2006

1/13/2006

10/15/2005

7/15/2005

4/15/2005

Payment date

10/30/2006

7/28/2006

4/28/2006

1/30/2006

10/30/2005

7/29/2005

4/29/2005

Distributions per share

0.5156

Inquiries:

Affordable Residential Communities welcomes any questions or comments from our investors, prospective investors, analysts, investment managers or media professionals. Please direct all inquiries to one of the following contact points:

	At our website:	www.aboutarc.com
	By phone:	(866) 847-8931
	By fax:	(303) 294-0121
	By e-mail:	investor.relations@aboutarc.com
	By mail:	Affordable Residential Communities, Inc.
		Investor Relations Department
		7887 East Belleview Avenue
		Suite 200
		Englewood, CO 80111

Hilltop (HTH) 8-KThird Quarter Operating Results