Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Commission File Number | 1-11718 | |
Entity Registrant Name | EQUITY LIFESTYLE PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 36-3857664 | |
Entity Address, Street Name | Two North Riverside Plaza | |
Entity Address, Suite Number | Suite 800 | |
Entity Address, City | Chicago, | |
Entity Address, State | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 279-1400 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | ELS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 186,392,726 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 on Form 10-Q/A (the “Amended Report”) amends and restates certain items noted below in the Quarterly Report on Form 10-Q of Equity Lifestyle Properties (the “Company”) for the quarter ended September 30, 2023, originally filed with the Securities and Exchange Commission (“SEC”) on October 24, 2023 (the “Original Report”). | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000895417 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment in real estate: | ||
Land | $ 2,088,657 | $ 2,084,532 |
Land improvements | 4,307,943 | 4,115,439 |
Buildings and other depreciable property | 1,228,897 | 1,169,590 |
Investment in real estate | 7,625,497 | 7,369,561 |
Accumulated depreciation | (2,401,384) | (2,258,540) |
Net investment in real estate | 5,224,113 | 5,111,021 |
Cash and restricted cash | 59,680 | 22,347 |
Notes receivable, net | 49,684 | 45,356 |
Investment in unconsolidated joint ventures | 84,328 | 81,404 |
Deferred commission expense | 53,180 | 50,441 |
Other assets, net | 155,306 | 181,950 |
Total Assets | 5,626,291 | 5,492,519 |
Liabilities: | ||
Mortgage notes payable, net | 3,005,034 | 2,693,167 |
Term loan, net | 497,422 | 496,817 |
Unsecured line of credit | 0 | 198,000 |
Accounts payable and other liabilities | 189,090 | 175,148 |
Deferred membership revenue | 216,021 | 197,743 |
Accrued interest payable | 12,296 | 11,739 |
Rents and other customer payments received in advance and security deposits | 121,930 | 122,318 |
Distributions payable | 87,491 | 80,102 |
Total Liabilities | 4,129,284 | 3,975,034 |
Stockholders' Equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of September 30, 2023 and December 31, 2022; none issued and outstanding. | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 186,390,612 and 186,120,298 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively. | 1,917 | 1,916 |
Paid-in capital | 1,641,553 | 1,628,618 |
Distributions in excess of accumulated earnings | (232,081) | (204,248) |
Accumulated other comprehensive income | 15,564 | 19,119 |
Total Stockholders’ Equity | 1,426,953 | 1,445,405 |
Non-controlling interests – Common OP Units | 70,054 | 72,080 |
Total Equity | 1,497,007 | 1,517,485 |
Total Liabilities and Equity | $ 5,626,291 | $ 5,492,519 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 186,390,612 | 186,120,298 |
Common stock, shares outstanding (in shares) | 186,390,612 | 186,120,298 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Rental income | $ 303,334 | $ 289,016 | $ 888,440 | $ 849,411 |
Other income | 15,658 | 15,580 | 51,283 | 43,316 |
Interest income | 2,276 | 1,865 | 6,623 | 5,346 |
Income from other investments, net | 2,333 | 2,399 | 6,897 | 6,920 |
Total revenues | 388,813 | 380,969 | 1,128,779 | 1,106,476 |
Expenses: | ||||
Property operating and maintenance | 126,846 | 123,181 | 361,543 | 341,480 |
Real estate taxes | 19,017 | 17,734 | 56,165 | 56,373 |
Membership sales and marketing | 5,696 | 5,937 | 16,055 | 15,720 |
Depreciation and amortization | 50,968 | 52,547 | 152,934 | 152,737 |
Home selling expenses and ancillary operating expenses | 7,164 | 7,080 | 21,258 | 21,146 |
General and administrative | 9,895 | 11,086 | 38,163 | 34,834 |
Casualty-related charges/(recoveries), net | 0 | 0 | 0 | 0 |
Other expenses | 1,338 | 1,627 | 4,187 | 6,880 |
Early debt retirement | 68 | 0 | 68 | 1,156 |
Interest and related amortization | 33,434 | 29,759 | 99,144 | 85,276 |
Total expenses | 307,784 | 308,178 | 894,107 | 883,469 |
Loss on sale of real estate and impairment, net | (949) | (3,747) | (3,581) | (3,747) |
Income before equity in income of unconsolidated joint ventures | 80,080 | 69,044 | 231,091 | 219,260 |
Equity in income of unconsolidated joint ventures | 661 | 1,465 | 2,158 | 2,889 |
Consolidated net income | 80,741 | 70,509 | 233,249 | 222,149 |
Income allocated to non-controlling interests – Common OP Units | (3,772) | (3,346) | (10,981) | (10,563) |
Redeemable perpetual preferred stock dividends | 0 | 0 | (8) | (8) |
Net income available for Common Stockholders | 76,969 | 67,163 | 222,260 | 211,578 |
Other comprehensive income (loss): | ||||
Adjustment for fair market value of swap | (1,763) | 4,235 | (3,555) | 16,952 |
Consolidated comprehensive income | 78,978 | 74,744 | 229,694 | 239,101 |
Comprehensive income allocated to non-controlling interests – Common OP Units | (3,690) | (3,547) | (10,814) | (11,370) |
Comprehensive income attributable to Common Stockholders | $ 75,288 | $ 71,197 | $ 218,872 | $ 227,723 |
Earnings per Common Share – Basic (in usd per share) | $ 0.41 | $ 0.36 | $ 1.19 | $ 1.14 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.41 | $ 0.36 | $ 1.19 | $ 1.14 |
Weighted average common shares outstanding – basic (in shares) | 186,100 | 185,814 | 186,008 | 185,758 |
Weighted average common shares outstanding – fully diluted (in shares) | 195,440 | 195,269 | 195,414 | 195,248 |
Annual membership subscriptions | ||||
Revenues: | ||||
Contract revenue | $ 16,673 | $ 16,254 | $ 48,832 | $ 47,003 |
Membership upgrade sales | ||||
Revenues: | ||||
Contract revenue | 3,744 | 3,308 | 10,863 | 9,543 |
Home sales, brokered resales and ancillary services | ||||
Revenues: | ||||
Contract revenue | 44,795 | 52,547 | 115,841 | 144,937 |
Expenses: | ||||
Cost of services | 33,471 | 40,224 | 85,880 | 111,894 |
Property management | ||||
Expenses: | ||||
Cost of services | $ 19,887 | $ 19,003 | $ 58,710 | $ 55,973 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Redeemable Perpetual Preferred Stock | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests – Common OP Units |
Beginning balance at Dec. 31, 2021 | $ 1,486,171 | $ 1,913 | $ 1,593,362 | $ 0 | $ (183,689) | $ 3,524 | $ 71,061 |
Increase (Decrease) in Stockholders' Equity | |||||||
Exchange of Common OP Units for Common Stock | 0 | 67 | (67) | ||||
Issuance of Common Stock through employee stock purchase plan | 513 | 513 | |||||
Issuance of Common Stock | 28,370 | 3 | 28,367 | ||||
Compensation expenses related to restricted stock and stock options | 2,590 | 2,590 | |||||
Repurchase of Common Stock or Common OP Units | (3,449) | (3,449) | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | (1,641) | 1,641 | ||||
Adjustment for fair market value of swap | 9,924 | 9,924 | |||||
Consolidated net income | 87,050 | 82,906 | 4,144 | ||||
Distributions | (80,187) | (76,375) | (3,812) | ||||
Other | (645) | (645) | |||||
Ending balance at Mar. 31, 2022 | 1,530,337 | 1,916 | 1,619,164 | 0 | (177,158) | 13,448 | 72,967 |
Beginning balance at Dec. 31, 2021 | 1,486,171 | 1,913 | 1,593,362 | 0 | (183,689) | 3,524 | 71,061 |
Increase (Decrease) in Stockholders' Equity | |||||||
Adjustment for fair market value of swap | 16,952 | ||||||
Ending balance at Sep. 30, 2022 | 1,519,389 | 1,916 | 1,625,751 | 0 | (200,969) | 20,476 | 72,215 |
Beginning balance at Mar. 31, 2022 | 1,530,337 | 1,916 | 1,619,164 | 0 | (177,158) | 13,448 | 72,967 |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of Common Stock through employee stock purchase plan | 1,388 | 1,388 | |||||
Compensation expenses related to restricted stock and stock options | 2,681 | 2,681 | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | (303) | 303 | ||||
Adjustment for fair market value of swap | 2,793 | 2,793 | |||||
Consolidated net income | 64,590 | 8 | 61,509 | 3,073 | |||
Distributions | (79,999) | (8) | (76,179) | (3,812) | |||
Other | (54) | (54) | |||||
Ending balance at Jun. 30, 2022 | 1,521,736 | 1,916 | 1,622,876 | 0 | (191,828) | 16,241 | 72,531 |
Increase (Decrease) in Stockholders' Equity | |||||||
Exchange of Common OP Units for Common Stock | 0 | 0 | 203 | (203) | |||
Issuance of Common Stock through employee stock purchase plan | 458 | 458 | |||||
Compensation expenses related to restricted stock and stock options | 2,654 | 2,654 | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | (342) | 342 | ||||
Adjustment for fair market value of swap | 4,235 | 4,235 | |||||
Consolidated net income | 70,510 | 67,164 | 3,346 | ||||
Distributions | (80,106) | (76,305) | (3,801) | ||||
Other | (98) | (98) | |||||
Ending balance at Sep. 30, 2022 | 1,519,389 | 1,916 | 1,625,751 | 0 | (200,969) | 20,476 | 72,215 |
Beginning balance at Dec. 31, 2022 | 1,517,485 | 1,916 | 1,628,618 | 0 | (204,248) | 19,119 | 72,080 |
Increase (Decrease) in Stockholders' Equity | |||||||
Exchange of Common OP Units for Common Stock | 0 | 198 | (198) | ||||
Issuance of Common Stock through employee stock purchase plan | 363 | 363 | |||||
Compensation expenses related to restricted stock and stock options | 2,549 | 2,549 | |||||
Repurchase of Common Stock or Common OP Units | (1,932) | (1,932) | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | 168 | (168) | ||||
Adjustment for fair market value of swap | (3,978) | (3,978) | |||||
Consolidated net income | 86,459 | 82,371 | 4,088 | ||||
Distributions | (87,462) | (83,326) | (4,136) | ||||
Other | (98) | (98) | |||||
Ending balance at Mar. 31, 2023 | 1,513,386 | 1,916 | 1,629,866 | 0 | (205,203) | 15,141 | 71,666 |
Beginning balance at Dec. 31, 2022 | 1,517,485 | 1,916 | 1,628,618 | 0 | (204,248) | 19,119 | 72,080 |
Increase (Decrease) in Stockholders' Equity | |||||||
Adjustment for fair market value of swap | (3,555) | ||||||
Ending balance at Sep. 30, 2023 | 1,497,007 | 1,917 | 1,641,553 | 0 | (232,081) | 15,564 | 70,054 |
Beginning balance at Mar. 31, 2023 | 1,513,386 | 1,916 | 1,629,866 | 0 | (205,203) | 15,141 | 71,666 |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of Common Stock through employee stock purchase plan | 504 | 504 | |||||
Compensation expenses related to restricted stock and stock options | 8,584 | 8,584 | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | (503) | 503 | ||||
Adjustment for fair market value of swap | 2,186 | 2,186 | |||||
Consolidated net income | 66,049 | 8 | 62,920 | 3,121 | |||
Distributions | (87,500) | (8) | (83,357) | (4,135) | |||
Other | (97) | (97) | |||||
Ending balance at Jun. 30, 2023 | 1,503,112 | 1,916 | 1,638,354 | 0 | (225,640) | 17,327 | 71,155 |
Increase (Decrease) in Stockholders' Equity | |||||||
Exchange of Common OP Units for Common Stock | 0 | 1 | 812 | (813) | |||
Issuance of Common Stock through employee stock purchase plan | 736 | 736 | |||||
Compensation expenses related to restricted stock and stock options | 1,799 | 1,799 | |||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | (27) | 27 | ||||
Adjustment for fair market value of swap | (1,763) | (1,763) | |||||
Consolidated net income | 80,741 | 76,969 | 0 | 3,772 | |||
Distributions | (87,497) | (83,410) | (4,087) | ||||
Other | (121) | (121) | |||||
Ending balance at Sep. 30, 2023 | $ 1,497,007 | $ 1,917 | $ 1,641,553 | $ 0 | $ (232,081) | $ 15,564 | $ 70,054 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Consolidated net income | $ 233,249 | $ 222,149 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Loss on sale of real estate and impairment, net | 3,581 | 3,747 |
Early debt retirement | 68 | 1,156 |
Depreciation and amortization | 156,967 | 156,074 |
Amortization of loan costs | 3,637 | 3,631 |
Debt premium amortization | (62) | (145) |
Equity in income of unconsolidated joint ventures | (2,158) | (2,889) |
Distributions of income from unconsolidated joint ventures | 1,155 | 340 |
Proceeds from insurance claims, net | 21,770 | (457) |
Compensation expense related to incentive plans | 15,275 | 5,367 |
Revenue recognized from membership upgrade sales upfront payments | (10,863) | (9,543) |
Commission expense recognized related to membership sales | 3,122 | 2,850 |
Changes in assets and liabilities: | ||
Manufactured homes, net | (31,980) | (6,972) |
Notes receivable, net | (4,365) | (3,954) |
Deferred commission expense | (5,861) | (5,531) |
Other assets, net | (5,076) | (298) |
Accounts payable and other liabilities | 12,165 | 15,475 |
Deferred membership revenue | 29,140 | 28,080 |
Rents and other customer payments received in advance and security deposits | (1,106) | (3,957) |
Net cash provided by operating activities | 418,658 | 405,123 |
Cash Flows From Investing Activities: | ||
Real estate acquisitions, net | (9,326) | (119,255) |
Investment in unconsolidated joint ventures | (6,060) | (16,022) |
Distributions of capital from unconsolidated joint ventures | 3,730 | 3,602 |
Proceeds from insurance claims, net | 5,309 | 1,405 |
Capital improvements | (231,172) | (185,916) |
Net cash used in investing activities | (237,519) | (316,186) |
Cash Flows From Financing Activities: | ||
Proceeds from stock options and employee stock purchase plan | 1,604 | 2,359 |
Gross proceeds from the issuance of common stock | 0 | 28,370 |
Distributions: | ||
Common Stockholders | (242,994) | (219,854) |
Common OP Unitholders | (12,069) | (10,997) |
Preferred Stockholders | (8) | (8) |
Share based award tax withholding payments | (1,932) | (3,449) |
Principal payments and mortgage debt repayment | (148,811) | (119,608) |
Mortgage notes payable financing proceeds | 463,753 | 200,000 |
Term loan proceeds | 0 | 200,000 |
Line of credit repayment | (605,000) | (495,016) |
Line of credit proceeds | 407,000 | 241,000 |
Debt issuance and defeasance costs | (5,033) | (3,826) |
Other | (316) | (796) |
Net cash used in financing activities | (143,806) | (181,825) |
Net increase (decrease) in cash and restricted cash | 37,333 | (92,888) |
Cash and restricted cash, beginning of period | 22,347 | 123,398 |
Cash and restricted cash, end of period | 59,680 | 30,510 |
Supplemental Information: | ||
Cash paid for interest, net | 97,297 | 82,368 |
Cash paid for the purchase of manufactured homes | 90,477 | 82,698 |
Real estate acquisitions: | ||
Investment in real estate | (10,057) | (119,796) |
Notes receivable, net | 0 | (772) |
Other assets, net | 13 | 0 |
Deferred membership revenue | 0 | 315 |
Other liabilities | 0 | 702 |
Rents and other customer payments received in advance and security deposits | 718 | 296 |
Real estate acquisitions, net | $ (9,326) | $ (119,255) |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Equity LifeStyle Properties, Inc. (“ELS”), a Maryland corporation, together with MHC Operating Limited Partnership (the “Operating Partnership”) and its other consolidated subsidiaries (the “Subsidiaries”), are referred to herein as “we,” “us,” and “our”. We are a fully integrated owner of lifestyle-oriented properties (“Properties”) consisting of property operations and home sales and rental operations primarily within manufactured home (“MH”) and recreational vehicle (“RV”) communities and marinas. We provide our customers the opportunity to place manufactured homes and cottages, RVs and/or boats on our Properties either on a long-term or short-term basis. Our customers may lease individual developed areas (“Sites”) or enter into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays. Our Properties are owned primarily by the Operating Partnership and managed internally by affiliates of the Operating Partnership. ELS is the sole general partner of the Operating Partnership, has exclusive responsibility and discretion in management and control of the Operating Partnership and held a 95.3% interest as of September 30, 2023. As the general partner with control, ELS is the primary beneficiary of, and therefore consolidates, the Operating Partnership. Equity method of accounting is applied to entities in which ELS does not have a controlling interest or for variable interest entities in which ELS is not considered the primary beneficiary, but with respect to which it can exercise significant influence over operations and major decisions. Our exposure to losses associated with unconsolidated joint ventures is primarily limited to the carrying value of these investments. Accordingly, distributions from a joint venture in excess of our carrying value are recognized in earnings. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Securities and Exchange Commission (“SEC”) rules and regulations for Quarterly Reports on Form 10-Q. Accordingly, they do not include all of the information and note disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as amended on January 22, 2024. Intercompany balances and transactions have been eliminated. All adjustments to the unaudited interim consolidated financial statements are of a normal, recurring nature and, in the opinion of management, are necessary for a fair presentation of results for these interim periods. Revenues and expenses are subject to seasonal fluctuations and accordingly, quarterly interim results may not be indicative of full year results. Certain prior period amounts have been reclassified on our unaudited interim consolidated financial statements to conform with current year presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Revenue Recognition Our revenue streams are predominantly derived from customers renting our Sites or entering into membership subscriptions. Leases with customers renting our Sites are accounted for as operating leases. The rental income associated with these leases is accounted for in accordance with the Accounting Standards Codification (“ASC”) 842, Leases, and is recognized over the term of the respective lease or the length of a customer’s stay. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. RV and marina Sites are leased to those who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those customers renting marina dry storage slips. Annual Sites are leased on an annual basis, including those Northern Properties that are open for the summer season. Seasonal Sites are leased to customers generally for one ASC 842, Leases to combine the lease and non-lease components. We assessed the criteria and concluded that the timing and pattern of transfer for rental income and the associated utility recoveries are the same and, as our leases qualify as operating leases, we account for and present rental income and utility recoveries as a single component under Rental income in our Consolidated Statements of Income and Comprehensive Income. In addition, customers may lease homes that are located in our communities. These leases are accounted for as operating leases. Rental income derived from customers leasing homes is also accounted for in accordance with ASC 842, Leases and is recognized over the term of the respective lease. The allowance for credit losses related to the collectability of lease receivables is presented as a reduction to Rental income. Lease receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. The estimate for credit losses is a result of our ongoing assessments and evaluations of collectability, including historical loss experience, current market conditions and future expectations in forecasting credit losses. Annual membership subscriptions and membership upgrade sales are accounted for in accordance with ASC 606 , Revenue from Contracts with Customers. Membership subscriptions provide our customers access to specific Properties for limited stays at a specified group of Properties. Payments are deferred and recognized on a straight-line basis over the one-year period during which access to Sites at certain Properties is provided. Membership subscription receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Membership upgrades grant certain additional access rights to the customer and require non-refundable upfront payments. The non-refundable upfront payments are recognized on a straight-line basis over 20 years. Financed upgrade sales (also known as contract receivables) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Revenue from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. We have a limited program under which we purchase loans made by an unaffiliated lender to homebuyers at our Properties. Financed home sales (also known as chattel loans) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. (b) Restricted Cash As of September 30, 2023 and December 31, 2022, restricted cash consisted of $21.2 million and $19.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. (c) Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. (d) Insurance Recoveries We carry comprehensive insurance coverage for losses resulting from property damage and environmental liability and business interruption claims on all of our properties. We record the estimated amount of expected insurance proceeds for property damage, clean-up costs and other losses incurred as an asset (typically a receivable from our insurance carriers) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the losses incurred and any amount of insurance recovery related to business interruption are considered a gain contingency and will be recognized in the period in which the insurance proceeds are received. During the nine months ended September 30, 2023, we recognized expenses of approximately $12.1 million related to debris removal and cleanup related to Hurricane Ian and an offsetting insurance recovery revenue accrual of $12.1 million related to the expected insurance recovery as a result of Hurricane Ian which is included in Casualty-related charges/(recoveries), net in the Consolidated Statements of Income and Comprehensive Income. During the nine months ended September 30, 2023, we received insurance proceeds of approximately $48.8 million, of which $9.6 million represented business interruption recovery revenue. (e) Prior period correction We previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 the correction of an error related to the classification of cash outflows associated with the purchase of manufactured homes in the Consolidated Statements of Cash Flows. Based on an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting Bulletins 99, Materiality and 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , the Company previously concluded that this error was immaterial. Following receipt of a further comment letter from the SEC, the Company and the Audit Committee, on January 19, 2024, determined that the error was material to its previously issued financial statements, as included in the Annual Report on Form 10-K for the year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. The Company previously classified cash outflows associated with the purchase of manufactured homes within investing activities in the Consolidated Statements of Cash Flows. Based on the predominance principle in ASC 230-10-45-22, the Company determined that all of the cash flows associated with the purchase and sale of manufactured homes should be classified within operating activities in the Consolidated Statements of Cash Flows. There was no impact to Cash and restricted cash, the Consolidated Statements of Income and Comprehensive Income, Consolidated Balance Sheets, or Consolidated Statements of Changes in Equity for any periods presented herein. The impact of the restatements on the line items within the previously reported Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 previously filed in the Original Report is as follows (in thousands): Nine Months Ended September 30, 2022 Operating Activities As Reported Adjustment As Restated Manufactured homes, net $ — (6,972) $ (6,972) Other assets, net $ 75,428 (75,726) $ (298) Net cash provided by operating activities $ 487,821 (82,698) $ 405,123 Investing Activities Capital improvements $ (268,614) 82,698 $ (185,916) Net cash used in investing activities $ (398,884) 82,698 $ (316,186) Cash and restricted cash, end of period $ 30,510 — $ 30,510 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessor The leases entered into between a customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases: (amounts in thousands) As of September 30, 2023 2023 $ 31,687 2024 129,794 2025 55,073 2026 24,570 2027 23,096 Thereafter 58,914 Total $ 323,134 Lessee We lease land under non-cancelable operating leases at ten Properties expiring on various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended September 30, 2023 and 2022, total operating lease payments were $1.6 million and $2.7 million, respectively. For the nine months ended September 30, 2023 and 2022, total operating lease payments were $4.9 million and $8.2 million, respectively. The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of September 30, 2023: As of September 30, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 152 $ 1,698 $ 1,850 2024 675 3,407 4,082 2025 680 3,108 3,788 2026 684 2,613 3,297 2027 689 2,424 3,113 Thereafter 4,525 10,794 15,319 Total undiscounted rental payments 7,405 24,044 31,449 Less imputed interest (1,890) (3,397) (5,287) Total lease liabilities $ 5,515 $ 20,647 $ 26,162 Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net Accounts payable and other liabilities ROU assets and lease liabilities from our operating leases, included within Other assets, net Accounts payable and other liabilities |
Leases | Leases Lessor The leases entered into between a customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases: (amounts in thousands) As of September 30, 2023 2023 $ 31,687 2024 129,794 2025 55,073 2026 24,570 2027 23,096 Thereafter 58,914 Total $ 323,134 Lessee We lease land under non-cancelable operating leases at ten Properties expiring on various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended September 30, 2023 and 2022, total operating lease payments were $1.6 million and $2.7 million, respectively. For the nine months ended September 30, 2023 and 2022, total operating lease payments were $4.9 million and $8.2 million, respectively. The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of September 30, 2023: As of September 30, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 152 $ 1,698 $ 1,850 2024 675 3,407 4,082 2025 680 3,108 3,788 2026 684 2,613 3,297 2027 689 2,424 3,113 Thereafter 4,525 10,794 15,319 Total undiscounted rental payments 7,405 24,044 31,449 Less imputed interest (1,890) (3,397) (5,287) Total lease liabilities $ 5,515 $ 20,647 $ 26,162 Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net Accounts payable and other liabilities ROU assets and lease liabilities from our operating leases, included within Other assets, net Accounts payable and other liabilities |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per share of common stock (“Common Share”) for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands, except per share data) 2023 2022 2023 2022 Numerators: Net income available for Common Stockholders – Basic $ 76,969 $ 67,163 $ 222,260 $ 211,578 Amounts allocated to non controlling interest (dilutive securities) 3,772 3,346 10,981 10,563 Net income available for Common Stockholders – Fully Diluted $ 80,741 $ 70,509 $ 233,241 $ 222,141 Denominators: Weighted average Common Shares outstanding – Basic 186,100 185,814 186,008 185,758 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,235 9,288 9,246 9,295 Stock options and restricted stock 105 167 160 195 Weighted average Common Shares outstanding – Fully Diluted 195,440 195,269 195,414 195,248 Earnings per Common Share – Basic $ 0.41 $ 0.36 $ 1.19 $ 1.14 Earnings per Common Share – Fully Diluted $ 0.41 $ 0.36 $ 1.19 $ 1.14 |
Common Stock and Other Equity R
Common Stock and Other Equity Related Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Common Stock and Other Equity Related Transactions | Common Stockholder Distribution Activity The following quarterly distributions have been declared and paid to Common Stockholders and the Operating Partnership unit (“OP Unit”) holders since January 1, 2022: Distribution Amount Per Share For the Quarter Ended Stockholder Record Date Payment Date $0.4100 March 31, 2022 March 25, 2022 April 8, 2022 $0.4100 June 30, 2022 June 24, 2022 July 8, 2022 $0.4100 September 30, 2022 September 30, 2022 October 14, 2022 $0.4100 December 31, 2022 December 30, 2022 January 13, 2023 $0.4475 March 31, 2023 March 31, 2023 April 14, 2023 $0.4475 June 30, 2023 June 30, 2023 July 14, 2023 $0.4475 September 30, 2023 September 29, 2023 October 13, 2023 Exchanges Subject to certain limitations, OP Unit holders can request an exchange of any or all of their OP Units for shares of Common Stock at any time. Upon receipt of such a request, we may, in lieu of issuing shares of Common Stock, cause the Operating Partnership to pay cash. During the nine months ended September 30, 2023 and 2022, 131,192 and 34,680 OP Units, respectively, were exchanged for an equal number of shares of Common Stock. |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions On March 28, 2023, we completed the acquisition of Red Oak Shores Campground, a 223-site RV community located in Ocean View, New Jersey for a purchase price of $9.5 million. The acquisition was accounted for as an asset acquisition under ASC 805, Business Combinations and was funded from our unsecured line of credit. Impairment During the nine months ended September 30, 2023, we recorded impairment charges of approximately $3.6 million primarily related to flooding events at certain Properties in California. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | The following table summarizes our investments in unconsolidated joint ventures (investment and income/(loss) amounts in thousands with the number of Properties shown parenthetically as of September 30, 2023 and December 31, 2022 , respectively): Investment as of Income/(Loss) for the Nine Months Ended Investment Location Number of Sites Economic (a) September 30, 2023 December 31, 2022 September 30, 2023 September 30, 2022 Meadows Various (2,2) 1,077 50 % $ 407 $ 158 $ 1,649 $ 1,850 Lakeshore Florida (3,3) 721 (b) 3,048 2,625 487 480 Voyager Arizona (1,1) — — % (c) — 139 694 39 ECHO JV Various — 50 % 2,764 2,963 (199) 843 RVC Various 1,283 80 % (d) 61,805 60,323 (297) (323) Mulberry Farms Arizona 200 50 % 10,560 9,902 96 — Hiawassee KOA JV Georgia 283 50 % 5,744 5,294 (272) — 3,564 $ 84,328 $ 81,404 $ 2,158 $ 2,889 _____________________ (a) The percentages shown approximate our economic interest as of September 30, 2023. Our legal ownership interest may differ. (b) Includes two joint ventures in which we own a 65% interest in each and the Crosswinds joint venture in which we own a 49% interest. (c) In March of 2023, we sold our 33% interest in the utility plant servicing Voyager RV Resort. (d) Includes three joint ventures of which one joint venture owns a portfolio of seven operating RV communities and two joint ventures each own an RV property under development. We received approximately $4.9 million and $3.9 million in distributions from our unconsolidated joint ventures for the nine months ended September 30, 2023 and 2022, respectively. Approximately $1.4 million and $1.7 million of the distributions made to us exceeded our basis in our unconsolidated joint ventures for the nine months ended September 30, 2023 and 2022, respectively, and as such, were recorded as income from unconsolidated joint ventures. |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements Mortgage Notes Payable Our mortgage notes payable are classified as Level 2 in the fair value hierarchy. The following table presents the fair value of our mortgage notes payable: As of September 30, 2023 As of December 31, 2022 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,116,027 $ 3,032,920 $ 2,043,412 $ 2,718,114 The weighted average interest rate on our outstanding mortgage indebtedness, including the impact of premium/discount amortization and loan cost amortization on mortgage indebtedness, as of September 30, 2023, was approximately 3.7% per annum. The debt bears interest at stated rates ranging from 2.4% to 5.1% per annum and matures on various dates ranging from 2025 to 2041. The debt encumbered a total of 120 and 114 of our Properties as of September 30, 2023 and December 31, 2022, respectively, and the gross carrying value of such Properties was approximately $3,167.2 million and $2,868.3 million, as of September 30, 2023 and December 31, 2022, respectively. During the quarter ended June 30, 2023, we closed on a secured financing transaction generating gross proceeds of $89.0 million. The loan represents an incremental borrowing from an existing secured facility, has a fixed interest rate of 5.04% per annum and matures in ten years. During the quarter ended September 30, 2023, we closed on three secured financing transactions generating gross proceeds of $375.0 million. The loans are secured by 20 MH and RV properties, have a weighted average fixed interest rate of 5.05% per annum and a weighted average maturity of approximately eight years. During the quarter ended September 30, 2023, proceeds from the four secured financing transactions were used to repay $100.4 million of principal on three mortgage loans that were due to mature in 2023 and 2024 and the remaining outstanding balance on our unsecured line of credit (the “LOC”). The repaid mortgage loans had a weighted average fixed interest rate of 4.94% per annum and were secured by 14 MH and RV properties. Unsecured Debt We previously entered into a Third Amended and Restated Credit Agreement (“Credit Agreement”), pursuant to which we have access to a $500.0 million LOC and a $300.0 million senior unsecured term loan (the “$300 million Term Loan”). On March 1, 2023, we amended the Credit Agreement to transition the LIBOR rate borrowings to Secured Overnight Financing Rate (“SOFR”) borrowings. The LOC bears interest at a rate of SOFR plus 1.25% to 1.65% and requires an annual facility fee of 0.20% to 0.35%. The $300 million Term Loan has an interest rate of SOFR plus 1.40% to 1.95% per annum. For both the LOC and the $300 million Term Loan, the spread over SOFR is variable based on leverage throughout the respective loan terms. As of September 30, 2023, the Company has no remaining LIBOR based borrowings. The LOC had no outstanding balance and $198.0 million outstanding as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, our LOC had a remaining borrowing capacity of $500.0 million. As of September 30, 2023, we were in compliance in all material respects with the covenants in all our borrowing arrangements. During the year ended December 31, 2022, we entered into a $200.0 million senior unsecured term loan agreement (the “$200 million Term Loan”). The maturity date is January 21, 2027, with an interest rate of SOFR plus approximately 1.30% to 1.80%, depending on leverage levels. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Derivative Instruments and Hedging Cash Flow Hedges of Interest Rate Risk We record all derivatives at fair value. Our objective in utilizing interest rate derivatives is to add stability to our interest expense and to manage our exposure to interest rate movements. We do not enter into derivatives for speculative purposes. In March 2021, we entered into a Swap Agreement (the “2021 Swap”) with a notional amount of $300.0 million allowing us to trade the variable interest rate associated with our $300.0 million Term Loan for a fixed interest rate. In March 2023, we amended the 2021 Swap agreement to reflect the change in the $300.0 million Term Loan interest rate benchmark from LIBOR to SOFR (see Note 8. Borrowing Arrangements ). The 2021 Swap has a fixed interest rate of 0.41% per annum and matures on March 25, 2024. Based on the leverage as of September 30, 2023, our spread over SOFR was 1.40% resulting in an estimated all-in interest rate of 1.81% per annum. In April 2023, we entered into a Swap Agreement (the “2023 Swap”) with a notional amount of $200.0 million allowing us to trade the variable interest rate associated with our $200.0 million Term Loan for a fixed interest rate. The 2023 Swap has a fixed interest rate of 3.68% per annum and matures on January 21, 2027. Based on the leverage as of September 30, 2023, our spread over SOFR was 1.20% resulting in an estimated all-in interest rate of 4.88% per annum. Our derivative financial instrument was classified as Level 2 in the fair value hierarchy. The following table presents the fair value of our derivative financial instrument: As of September 30, As of December 31, (amounts in thousands) Balance Sheet Location 2023 2022 Interest Rate Swaps Other assets, net $ 15,564 $ 19,119 The following table presents the effect of our derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income: Derivatives in Cash Flow Hedging Relationship Amount of (gain)/loss recognized Location of (gain)/ loss reclassified from Amount of (gain)/loss reclassified from (amounts in thousands) 2023 2022 (amounts in thousands) 2023 2022 Interest Rate Swaps $ (9,364) $ (18,479) Interest Expense $ (12,919) $ (1,527) During the next twelve months, we estimate that $10.7 million will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense. This estimate may be subject to change as the underlying SOFR changes. We determined that no adjustment was necessary for non-performance risk on our derivative obligation. As of September 30, 2023, we had not posted any collateral related to the 2021 Swap or 2023 Swap. |
Deferred Revenue from Membershi
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense | Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense The components of the change in deferred revenue from membership upgrades and deferred commission expense were as follows: (amounts in thousands) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Deferred revenue - upfront payments from membership upgrade sales, beginning $ 185,660 $ 163,957 Membership upgrade sales (1) 28,041 27,771 Revenue recognized from membership upgrade sales upfront payments (10,863) (9,543) Net increase in deferred revenue - upfront payments from membership grade sales (1) 17,178 18,228 Deferred revenue - upfront payments from membership upgrade sales, ending (2) $ 202,838 $ 182,185 Deferred commission expense, beginning $ 50,441 $ 47,349 Deferred commission expense 5,861 5,531 Commission expense recognized (3,122) (2,850) Net increase in deferred commission expense (1) 2,739 2,681 Deferred commission expense, ending $ 53,180 $ 50,030 _____________________ (1) We present membership upgrade sales and related commissions on a net basis in the Consolidated Statements of Income and Comprehensive Income. (2) Included in Deferred membership revenue on the Consolidated Balance Sheets. |
Equity Incentive Awards
Equity Incentive Awards | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Awards | Equity Incentive Awards Our 2014 Equity Incentive Plan (the “2014 Plan”) was adopted by the Board of Directors on March 11, 2014 and approved by our stockholders on May 13, 2014. During the quarter ended March 31, 2023, 82,884 shares of restricted stock were awarded to certain members of our management team. Of these shares, 50% are time-based awards, vesting in equal installments over a three-year period on January 30, 2024, February 4, 2025 and February 3, 2026, respectively, and have a grant date fair value of $3.0 million. The remaining 50% are performance-based awards vesting in equal installments on January 30, 2024, February 4, 2025 and February 3, 2026, respectively, upon meeting performance conditions as established by the Compensation Committee in the year of the vesting period. They are valued using the closing price at the grant date when all the key terms and conditions are known to all parties. The 13,812 shares of restricted stock subject to 2023 performance goals have a grant date fair value of $1.0 million. During the quarter ended June 30, 2023, we awarded to certain members of our Board of Directors 60,391 shares of restricted stock at a fair value of approximately $4.1 million and options to purchase 8,450 shares of common stock with an exercise price of $68.01. These are time-based awards subject to various vesting dates between October 25, 2023 and April 24, 2026. Stock-based compensation expense, reported in General and administrative expense on the Consolidated Statements of Income and Comprehensive Income, was $1.8 million and $2.6 million for the quarters ended September 30, 2023 and 2022, respectively, and $12.9 million and $7.9 million for the nine months ended September 30, 2023 and 2022, respectively. Stock-based compensation expense of $12.9 million for the nine months ended September 30, 2023 includes accelerated vesting of stock-based compensation expense of $6.3 million recognized during the quarter ended June 30, 2023, as a result of the passing of a member of our Board of Directors. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are involved in various legal and regulatory proceedings (“Proceedings”) arising in the ordinary course of business. The Proceedings include, but are not limited to, legal claims made by employees, vendors and customers, and notices, consent decrees, information requests, additional permit requirements and other similar enforcement actions by governmental agencies relating to our utility infrastructure, including water and wastewater treatment plants and other waste treatment facilities and electrical systems. Additionally, in the ordinary course of business, our operations are subject to audit by various taxing authorities. Management believes these Proceedings taken together do not represent a material liability. In addition, to the extent any such Proceedings or audits relate to newly acquired Properties, we consider any potential indemnification obligations of sellers in our favor. Beginning on August 31, 2023 through October 12, 2023, certain private party plaintiffs filed several putative class actions against Datacomp Appraisal Systems, Inc. (“Datacomp”) and several owner/operators of manufactured housing communities, including ELS (the “Datacomp Litigation”), alleging that the community owner/operators used JLT Market Reports produced by Datacomp to conspire to raise manufactured home lot rents in violation of Section 1 of the Sherman Act. ELS purchased Datacomp in connection with the MHVillage/Datacomp acquisition during the year ended December 31, 2021. We believe that the Datacomp Litigation is without merit, and we intend to vigorously defend our interests in this matter. As of September 30, 2023, we have not made an accrual, as we are unable to predict the outcome of this matter or reasonably estimate any possible loss. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments We have identified two reportable segments: (i) Property Operations and (ii) Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease Properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the Properties. The distribution of the Properties throughout the United States reflects our belief that geographic diversification helps insulate the portfolio from regional economic influences. All revenues were from external customers and there is no customer who contributed 10% or more of our total revenues during the quarters and nine months ended September 30, 2023 or 2022. The following tables summarize our segment financial information for the quarters and nine months ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 351,243 $ 32,961 $ 384,204 Operations expenses (183,579) (28,502) (212,081) Income from segment operations 167,664 4,459 172,123 Interest income 1,637 631 2,268 Depreciation and amortization (48,242) (2,726) (50,968) Loss on sale of real estate and impairment, net (949) — (949) Income from operations $ 120,110 $ 2,364 $ 122,474 Reconciliation to consolidated net income: Corporate interest income 8 Income from other investments, net 2,333 General and administrative (9,895) Other expenses (1,338) Interest and related amortization (33,434) Equity in income of unconsolidated joint ventures 661 Early debt retirement (68) Consolidated net income $ 80,741 Total assets $ 5,351,993 $ 274,298 $ 5,626,291 Capital improvements (1) $ 79,750 $ 2,420 $ 82,170 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Quarter Ended September 30, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 338,208 $ 38,497 $ 376,705 Operations expenses (179,775) (33,384) (213,159) Income from segment operations 158,433 5,113 163,546 Interest income 1,441 422 1,863 Depreciation and amortization (50,026) (2,521) (52,547) Loss on sale of real estate and impairment, net (2,289) (1,458) (3,747) Income from operations $ 107,559 $ 1,556 $ 109,115 Reconciliation to consolidated net income: Corporate interest income 2 Income from other investments, net 2,399 General and administrative (1) (11,086) Other expenses (1) (1,627) Interest and related amortization (29,759) Equity in income of unconsolidated joint ventures 1,465 Consolidated net income $ 70,509 Total assets $ 5,160,230 $ 245,216 $ 5,405,446 Capital improvements (2) $ 49,553 $ 6,026 $ 55,579 ______________________ (1) Prior period amounts have been reclassified to conform to the current period presentation. (2) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Nine Months Ended September 30, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 1,029,609 $ 85,650 $ 1,115,259 Operations expenses (526,052) (73,559) (599,611) Income from segment operations 503,557 12,091 515,648 Interest income 4,819 1,782 6,601 Depreciation and amortization (144,659) (8,275) (152,934) Loss on sale of real estate and impairment, net (3,581) — (3,581) Income from operations $ 360,136 $ 5,598 $ 365,734 Reconciliation to consolidated net income: Corporate interest income 22 Income from other investments, net 6,897 General and administrative (38,163) Other expenses (4,187) Interest and related amortization (99,144) Equity in income of unconsolidated joint ventures 2,158 Early debt retirement (68) Consolidated net income $ 233,249 Total assets $ 5,351,993 $ 274,298 $ 5,626,291 Capital improvements (1) $ 208,576 $ 22,596 $ 231,172 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Nine Months Ended September 30, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 984,535 $ 109,675 $ 1,094,210 Operations expenses (506,739) (95,847) (602,586) Income from segment operations 477,796 13,828 491,624 Interest income 4,198 1,143 5,341 Depreciation and amortization (145,200) (7,537) (152,737) Loss on sale of real estate and impairment,, net (2,289) (1,458) (3,747) Income from operations $ 334,505 $ 5,976 $ 340,481 Reconciliation to consolidated net income: Corporate interest income 5 Income from other investments, net 6,920 General and administrative (1) (34,834) Other expenses (1) (6,880) Interest and related amortization (85,276) Equity in income of unconsolidated joint ventures 2,889 Early debt retirement (1,156) Consolidated net income $ 222,149 Total assets $ 5,160,230 $ 245,216 $ 5,405,446 Capital improvements (2) $ 169,233 $ 16,683 $ 185,916 ________________ (1) Prior period amounts have been reclassified to conform to the current period presentation. (2) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. The following table summarizes our financial information for the Property Operations segment for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands) 2023 2022 2023 2022 Revenues: Rental income $ 299,781 $ 285,272 $ 877,310 $ 837,892 Annual membership subscriptions 16,673 16,254 48,832 47,003 Membership upgrade sales (1) 3,744 3,308 10,863 9,543 Other income 15,658 15,580 51,283 43,316 Gross revenues from ancillary services 15,387 17,794 41,321 46,781 Total property operations revenues 351,243 338,208 1,029,609 984,535 Expenses: Property operating and maintenance 125,081 121,692 357,660 337,363 Real estate taxes 19,017 17,734 56,165 56,373 Membership sales and marketing (1) 5,696 5,937 16,055 15,720 Cost of ancillary services 8,226 9,765 20,562 24,639 Ancillary operating expenses 5,672 5,644 16,900 16,671 Property management 19,887 19,003 58,710 55,973 Total property operations expenses 183,579 179,775 526,052 506,739 Income from property operations segment $ 167,664 $ 158,433 $ 503,557 $ 477,796 _____________________ (1) We present membership upgrade sales and related commissions on a net basis in the Consolidated Statements of Income and Comprehensive Income. The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands) 2023 2022 2023 2022 Revenues: Rental income (1) $ 3,553 $ 3,744 $ 11,130 $ 11,519 Gross revenue from home sales and brokered resales 29,408 34,753 74,520 98,156 Total revenues 32,961 38,497 85,650 109,675 Expenses: Rental home operating and maintenance 1,765 1,489 3,883 4,117 Cost of home sales and brokered resales 25,245 30,459 65,318 87,255 Home selling expenses 1,492 1,436 4,358 4,475 Total expenses 28,502 33,384 73,559 95,847 Income from home sales and rentals operations segment $ 4,459 $ 5,113 $ 12,091 $ 13,828 ______________________ (1) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | ||||||
Consolidated net income | $ 80,741 | $ 66,049 | $ 86,459 | $ 70,510 | $ 64,590 | $ 87,050 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Equity LifeStyle Properties, Inc. (“ELS”), a Maryland corporation, together with MHC Operating Limited Partnership (the “Operating Partnership”) and its other consolidated subsidiaries (the “Subsidiaries”), are referred to herein as “we,” “us,” and “our”. We are a fully integrated owner of lifestyle-oriented properties (“Properties”) consisting of property operations and home sales and rental operations primarily within manufactured home (“MH”) and recreational vehicle (“RV”) communities and marinas. We provide our customers the opportunity to place manufactured homes and cottages, RVs and/or boats on our Properties either on a long-term or short-term basis. Our customers may lease individual developed areas (“Sites”) or enter into right-to-use contracts, also known as membership subscriptions, which provide them access to specific Properties for limited stays. Our Properties are owned primarily by the Operating Partnership and managed internally by affiliates of the Operating Partnership. ELS is the sole general partner of the Operating Partnership, has exclusive responsibility and discretion in management and control of the Operating Partnership and held a 95.3% interest as of September 30, 2023. As the general partner with control, ELS is the primary beneficiary of, and therefore consolidates, the Operating Partnership. |
Consolidation | Equity method of accounting is applied to entities in which ELS does not have a controlling interest or for variable interest entities in which ELS is not considered the primary beneficiary, but with respect to which it can exercise significant influence over operations and major decisions. Our exposure to losses associated with unconsolidated joint ventures is primarily limited to the carrying value of these investments. Accordingly, distributions from a joint venture in excess of our carrying value are recognized in earnings. |
Revenue Recognition | Revenue Recognition Our revenue streams are predominantly derived from customers renting our Sites or entering into membership subscriptions. Leases with customers renting our Sites are accounted for as operating leases. The rental income associated with these leases is accounted for in accordance with the Accounting Standards Codification (“ASC”) 842, Leases, and is recognized over the term of the respective lease or the length of a customer’s stay. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. RV and marina Sites are leased to those who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those customers renting marina dry storage slips. Annual Sites are leased on an annual basis, including those Northern Properties that are open for the summer season. Seasonal Sites are leased to customers generally for one ASC 842, Leases to combine the lease and non-lease components. We assessed the criteria and concluded that the timing and pattern of transfer for rental income and the associated utility recoveries are the same and, as our leases qualify as operating leases, we account for and present rental income and utility recoveries as a single component under Rental income in our Consolidated Statements of Income and Comprehensive Income. In addition, customers may lease homes that are located in our communities. These leases are accounted for as operating leases. Rental income derived from customers leasing homes is also accounted for in accordance with ASC 842, Leases and is recognized over the term of the respective lease. The allowance for credit losses related to the collectability of lease receivables is presented as a reduction to Rental income. Lease receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. The estimate for credit losses is a result of our ongoing assessments and evaluations of collectability, including historical loss experience, current market conditions and future expectations in forecasting credit losses. Annual membership subscriptions and membership upgrade sales are accounted for in accordance with ASC 606 , Revenue from Contracts with Customers. Membership subscriptions provide our customers access to specific Properties for limited stays at a specified group of Properties. Payments are deferred and recognized on a straight-line basis over the one-year period during which access to Sites at certain Properties is provided. Membership subscription receivables are presented within Other assets, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Membership upgrades grant certain additional access rights to the customer and require non-refundable upfront payments. The non-refundable upfront payments are recognized on a straight-line basis over 20 years. Financed upgrade sales (also known as contract receivables) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. Revenue from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. We have a limited program under which we purchase loans made by an unaffiliated lender to homebuyers at our Properties. Financed home sales (also known as chattel loans) are presented within Notes receivable, net on the Consolidated Balance Sheets and are net of an allowance for credit losses. |
Restricted Cash | Restricted Cash As of September 30, 2023 and December 31, 2022, restricted cash consisted of $21.2 million and $19.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
Insurance Recoveries | Insurance RecoveriesWe carry comprehensive insurance coverage for losses resulting from property damage and environmental liability and business interruption claims on all of our properties. We record the estimated amount of expected insurance proceeds for property damage, clean-up costs and other losses incurred as an asset (typically a receivable from our insurance carriers) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the losses incurred and any amount of insurance recovery related to business interruption are considered a gain contingency and will be recognized in the period in which the insurance proceeds are received. |
Prior period correction | Prior period correction We previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 the correction of an error related to the classification of cash outflows associated with the purchase of manufactured homes in the Consolidated Statements of Cash Flows. Based on an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting Bulletins 99, Materiality and 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , the Company previously concluded that this error was immaterial. Following receipt of a further comment letter from the SEC, the Company and the Audit Committee, on January 19, 2024, determined that the error was material to its previously issued financial statements, as included in the Annual Report on Form 10-K for the year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. The Company previously classified cash outflows associated with the purchase of manufactured homes within investing activities in the Consolidated Statements of Cash Flows. Based on the predominance principle in ASC 230-10-45-22, the Company determined that all of the cash flows associated with the purchase and sale of manufactured homes should be classified within operating activities in the Consolidated Statements of Cash Flows. There was no impact to Cash and restricted cash, the Consolidated Statements of Income and Comprehensive Income, Consolidated Balance Sheets, or Consolidated Statements of Changes in Equity for any periods presented herein. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Impact of the Consolidated Statements of Cash Flows | The impact of the restatements on the line items within the previously reported Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 previously filed in the Original Report is as follows (in thousands): Nine Months Ended September 30, 2022 Operating Activities As Reported Adjustment As Restated Manufactured homes, net $ — (6,972) $ (6,972) Other assets, net $ 75,428 (75,726) $ (298) Net cash provided by operating activities $ 487,821 (82,698) $ 405,123 Investing Activities Capital improvements $ (268,614) 82,698 $ (185,916) Net cash used in investing activities $ (398,884) 82,698 $ (316,186) Cash and restricted cash, end of period $ 30,510 — $ 30,510 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Rents Expected to be Received | The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases: (amounts in thousands) As of September 30, 2023 2023 $ 31,687 2024 129,794 2025 55,073 2026 24,570 2027 23,096 Thereafter 58,914 Total $ 323,134 |
Summary of Minimum Future Operating Lease Payments | The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of September 30, 2023: As of September 30, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 152 $ 1,698 $ 1,850 2024 675 3,407 4,082 2025 680 3,108 3,788 2026 684 2,613 3,297 2027 689 2,424 3,113 Thereafter 4,525 10,794 15,319 Total undiscounted rental payments 7,405 24,044 31,449 Less imputed interest (1,890) (3,397) (5,287) Total lease liabilities $ 5,515 $ 20,647 $ 26,162 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock (“Common Share”) for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands, except per share data) 2023 2022 2023 2022 Numerators: Net income available for Common Stockholders – Basic $ 76,969 $ 67,163 $ 222,260 $ 211,578 Amounts allocated to non controlling interest (dilutive securities) 3,772 3,346 10,981 10,563 Net income available for Common Stockholders – Fully Diluted $ 80,741 $ 70,509 $ 233,241 $ 222,141 Denominators: Weighted average Common Shares outstanding – Basic 186,100 185,814 186,008 185,758 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,235 9,288 9,246 9,295 Stock options and restricted stock 105 167 160 195 Weighted average Common Shares outstanding – Fully Diluted 195,440 195,269 195,414 195,248 Earnings per Common Share – Basic $ 0.41 $ 0.36 $ 1.19 $ 1.14 Earnings per Common Share – Fully Diluted $ 0.41 $ 0.36 $ 1.19 $ 1.14 |
Common Stock and Other Equity_2
Common Stock and Other Equity Related Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Dividends Declared | The following quarterly distributions have been declared and paid to Common Stockholders and the Operating Partnership unit (“OP Unit”) holders since January 1, 2022: Distribution Amount Per Share For the Quarter Ended Stockholder Record Date Payment Date $0.4100 March 31, 2022 March 25, 2022 April 8, 2022 $0.4100 June 30, 2022 June 24, 2022 July 8, 2022 $0.4100 September 30, 2022 September 30, 2022 October 14, 2022 $0.4100 December 31, 2022 December 30, 2022 January 13, 2023 $0.4475 March 31, 2023 March 31, 2023 April 14, 2023 $0.4475 June 30, 2023 June 30, 2023 July 14, 2023 $0.4475 September 30, 2023 September 29, 2023 October 13, 2023 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Our Investment in Unconsolidated Joint Ventures | The following table summarizes our investments in unconsolidated joint ventures (investment and income/(loss) amounts in thousands with the number of Properties shown parenthetically as of September 30, 2023 and December 31, 2022 , respectively): Investment as of Income/(Loss) for the Nine Months Ended Investment Location Number of Sites Economic (a) September 30, 2023 December 31, 2022 September 30, 2023 September 30, 2022 Meadows Various (2,2) 1,077 50 % $ 407 $ 158 $ 1,649 $ 1,850 Lakeshore Florida (3,3) 721 (b) 3,048 2,625 487 480 Voyager Arizona (1,1) — — % (c) — 139 694 39 ECHO JV Various — 50 % 2,764 2,963 (199) 843 RVC Various 1,283 80 % (d) 61,805 60,323 (297) (323) Mulberry Farms Arizona 200 50 % 10,560 9,902 96 — Hiawassee KOA JV Georgia 283 50 % 5,744 5,294 (272) — 3,564 $ 84,328 $ 81,404 $ 2,158 $ 2,889 _____________________ (a) The percentages shown approximate our economic interest as of September 30, 2023. Our legal ownership interest may differ. (b) Includes two joint ventures in which we own a 65% interest in each and the Crosswinds joint venture in which we own a 49% interest. (c) In March of 2023, we sold our 33% interest in the utility plant servicing Voyager RV Resort. (d) Includes three joint ventures of which one joint venture owns a portfolio of seven operating RV communities and two joint ventures each own an RV property under development. |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Fair Value of Mortgage Debt | The following table presents the fair value of our mortgage notes payable: As of September 30, 2023 As of December 31, 2022 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,116,027 $ 3,032,920 $ 2,043,412 $ 2,718,114 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of our derivative financial instrument: As of September 30, As of December 31, (amounts in thousands) Balance Sheet Location 2023 2022 Interest Rate Swaps Other assets, net $ 15,564 $ 19,119 |
Schedule of Effect of Derivative Instruments on Consolidated Statements of Operations | The following table presents the effect of our derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income: Derivatives in Cash Flow Hedging Relationship Amount of (gain)/loss recognized Location of (gain)/ loss reclassified from Amount of (gain)/loss reclassified from (amounts in thousands) 2023 2022 (amounts in thousands) 2023 2022 Interest Rate Swaps $ (9,364) $ (18,479) Interest Expense $ (12,919) $ (1,527) |
Deferred Revenue from Members_2
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Deferred Revenue and Deferred Commissions | The components of the change in deferred revenue from membership upgrades and deferred commission expense were as follows: (amounts in thousands) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Deferred revenue - upfront payments from membership upgrade sales, beginning $ 185,660 $ 163,957 Membership upgrade sales (1) 28,041 27,771 Revenue recognized from membership upgrade sales upfront payments (10,863) (9,543) Net increase in deferred revenue - upfront payments from membership grade sales (1) 17,178 18,228 Deferred revenue - upfront payments from membership upgrade sales, ending (2) $ 202,838 $ 182,185 Deferred commission expense, beginning $ 50,441 $ 47,349 Deferred commission expense 5,861 5,531 Commission expense recognized (3,122) (2,850) Net increase in deferred commission expense (1) 2,739 2,681 Deferred commission expense, ending $ 53,180 $ 50,030 _____________________ (1) We present membership upgrade sales and related commissions on a net basis in the Consolidated Statements of Income and Comprehensive Income. (2) Included in Deferred membership revenue on the Consolidated Balance Sheets. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information | The following tables summarize our segment financial information for the quarters and nine months ended September 30, 2023 and 2022: Quarter Ended September 30, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 351,243 $ 32,961 $ 384,204 Operations expenses (183,579) (28,502) (212,081) Income from segment operations 167,664 4,459 172,123 Interest income 1,637 631 2,268 Depreciation and amortization (48,242) (2,726) (50,968) Loss on sale of real estate and impairment, net (949) — (949) Income from operations $ 120,110 $ 2,364 $ 122,474 Reconciliation to consolidated net income: Corporate interest income 8 Income from other investments, net 2,333 General and administrative (9,895) Other expenses (1,338) Interest and related amortization (33,434) Equity in income of unconsolidated joint ventures 661 Early debt retirement (68) Consolidated net income $ 80,741 Total assets $ 5,351,993 $ 274,298 $ 5,626,291 Capital improvements (1) $ 79,750 $ 2,420 $ 82,170 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Quarter Ended September 30, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 338,208 $ 38,497 $ 376,705 Operations expenses (179,775) (33,384) (213,159) Income from segment operations 158,433 5,113 163,546 Interest income 1,441 422 1,863 Depreciation and amortization (50,026) (2,521) (52,547) Loss on sale of real estate and impairment, net (2,289) (1,458) (3,747) Income from operations $ 107,559 $ 1,556 $ 109,115 Reconciliation to consolidated net income: Corporate interest income 2 Income from other investments, net 2,399 General and administrative (1) (11,086) Other expenses (1) (1,627) Interest and related amortization (29,759) Equity in income of unconsolidated joint ventures 1,465 Consolidated net income $ 70,509 Total assets $ 5,160,230 $ 245,216 $ 5,405,446 Capital improvements (2) $ 49,553 $ 6,026 $ 55,579 ______________________ (1) Prior period amounts have been reclassified to conform to the current period presentation. (2) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Nine Months Ended September 30, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 1,029,609 $ 85,650 $ 1,115,259 Operations expenses (526,052) (73,559) (599,611) Income from segment operations 503,557 12,091 515,648 Interest income 4,819 1,782 6,601 Depreciation and amortization (144,659) (8,275) (152,934) Loss on sale of real estate and impairment, net (3,581) — (3,581) Income from operations $ 360,136 $ 5,598 $ 365,734 Reconciliation to consolidated net income: Corporate interest income 22 Income from other investments, net 6,897 General and administrative (38,163) Other expenses (4,187) Interest and related amortization (99,144) Equity in income of unconsolidated joint ventures 2,158 Early debt retirement (68) Consolidated net income $ 233,249 Total assets $ 5,351,993 $ 274,298 $ 5,626,291 Capital improvements (1) $ 208,576 $ 22,596 $ 231,172 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. Nine Months Ended September 30, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 984,535 $ 109,675 $ 1,094,210 Operations expenses (506,739) (95,847) (602,586) Income from segment operations 477,796 13,828 491,624 Interest income 4,198 1,143 5,341 Depreciation and amortization (145,200) (7,537) (152,737) Loss on sale of real estate and impairment,, net (2,289) (1,458) (3,747) Income from operations $ 334,505 $ 5,976 $ 340,481 Reconciliation to consolidated net income: Corporate interest income 5 Income from other investments, net 6,920 General and administrative (1) (34,834) Other expenses (1) (6,880) Interest and related amortization (85,276) Equity in income of unconsolidated joint ventures 2,889 Early debt retirement (1,156) Consolidated net income $ 222,149 Total assets $ 5,160,230 $ 245,216 $ 5,405,446 Capital improvements (2) $ 169,233 $ 16,683 $ 185,916 ________________ (1) Prior period amounts have been reclassified to conform to the current period presentation. (2) Amounts are restated. See Part I. Item 1. Financial Statements - Note 2. Summary of Significant Accounting Policies: (e) Prior Period Correction for more information. |
Summary of Financial Information for the Property Operations Segment | The following table summarizes our financial information for the Property Operations segment for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands) 2023 2022 2023 2022 Revenues: Rental income $ 299,781 $ 285,272 $ 877,310 $ 837,892 Annual membership subscriptions 16,673 16,254 48,832 47,003 Membership upgrade sales (1) 3,744 3,308 10,863 9,543 Other income 15,658 15,580 51,283 43,316 Gross revenues from ancillary services 15,387 17,794 41,321 46,781 Total property operations revenues 351,243 338,208 1,029,609 984,535 Expenses: Property operating and maintenance 125,081 121,692 357,660 337,363 Real estate taxes 19,017 17,734 56,165 56,373 Membership sales and marketing (1) 5,696 5,937 16,055 15,720 Cost of ancillary services 8,226 9,765 20,562 24,639 Ancillary operating expenses 5,672 5,644 16,900 16,671 Property management 19,887 19,003 58,710 55,973 Total property operations expenses 183,579 179,775 526,052 506,739 Income from property operations segment $ 167,664 $ 158,433 $ 503,557 $ 477,796 _____________________ (1) We present membership upgrade sales and related commissions on a net basis in the Consolidated Statements of Income and Comprehensive Income. The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters and nine months ended September 30, 2023 and 2022: Quarters Ended September 30, Nine Months Ended September 30, (amounts in thousands) 2023 2022 2023 2022 Revenues: Rental income (1) $ 3,553 $ 3,744 $ 11,130 $ 11,519 Gross revenue from home sales and brokered resales 29,408 34,753 74,520 98,156 Total revenues 32,961 38,497 85,650 109,675 Expenses: Rental home operating and maintenance 1,765 1,489 3,883 4,117 Cost of home sales and brokered resales 25,245 30,459 65,318 87,255 Home selling expenses 1,492 1,436 4,358 4,475 Total expenses 28,502 33,384 73,559 95,847 Income from home sales and rentals operations segment $ 4,459 $ 5,113 $ 12,091 $ 13,828 ______________________ (1) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Sep. 30, 2023 |
Operating Partnership | |
Other Ownership Interests [Line Items] | |
Ownership interest (percent) | 95.30% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narratives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Estimated membership upgrade contract term | 20 years | |
Cash and cash equivalents, restricted cash | $ 21.2 | $ 19.7 |
Offsetting insurance recovery | 48.8 | |
Business interruption recovery revenue | 9.6 | |
Hurricane Ian | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Expenses related to removal and cleanup | 12.1 | |
Offsetting insurance recovery | $ 12.1 | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lessor operating lease term | 1 month | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lessor operating lease term | 6 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Impact of the Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||||
Manufactured homes, net | $ (31,980) | $ (6,972) | ||
Other assets, net | (5,076) | (298) | ||
Net cash provided by operating activities | 418,658 | 405,123 | ||
Investing Activities | ||||
Capital improvements | $ (82,170) | $ (55,579) | (231,172) | (185,916) |
Net cash used in investing activities | $ (237,519) | (316,186) | ||
As Reported | ||||
Operating Activities | ||||
Manufactured homes, net | 0 | |||
Other assets, net | 75,428 | |||
Net cash provided by operating activities | 487,821 | |||
Investing Activities | ||||
Capital improvements | (268,614) | |||
Net cash used in investing activities | (398,884) | |||
Adjustment | ||||
Operating Activities | ||||
Manufactured homes, net | (6,972) | |||
Other assets, net | (75,726) | |||
Net cash provided by operating activities | (82,698) | |||
Investing Activities | ||||
Capital improvements | 82,698 | |||
Net cash used in investing activities | $ 82,698 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rents Expected to be Received (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
2023 | $ 31,687 |
2024 | 129,794 |
2025 | 55,073 |
2026 | 24,570 |
2027 | 23,096 |
Thereafter | 58,914 |
Total | $ 323,134 |
Leases - Narratives (Details)
Leases - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |||||
Number of non-cancelable operating leases, lessee (leases) | property | 10 | 10 | |||
Operating lease payments | $ 1,600 | $ 2,700 | $ 4,900 | $ 8,200 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets, net | Other assets, net | Other assets, net | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts payable and other liabilities | Accounts payable and other liabilities | Accounts payable and other liabilities | ||
Right of use asset | $ 24,000 | $ 24,000 | $ 25,900 | ||
Operating lease liability | $ 26,162 | $ 26,162 | $ 28,000 | ||
Weighted average operating lease term | 9 years | 9 years | 9 years | ||
Operating lease weighted average interest rate (percent) | 3.80% | 3.80% | 3.80% |
Leases - Summary of Minimum Fut
Leases - Summary of Minimum Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | $ 1,850 | |
2024 | 4,082 | |
2025 | 3,788 | |
2026 | 3,297 | |
2027 | 3,113 | |
Thereafter | 15,319 | |
Total undiscounted rental payments | 31,449 | |
Less imputed interest | (5,287) | |
Total lease liabilities | 26,162 | $ 28,000 |
Ground Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | 152 | |
2024 | 675 | |
2025 | 680 | |
2026 | 684 | |
2027 | 689 | |
Thereafter | 4,525 | |
Total undiscounted rental payments | 7,405 | |
Less imputed interest | (1,890) | |
Total lease liabilities | 5,515 | |
Office and Other Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | 1,698 | |
2024 | 3,407 | |
2025 | 3,108 | |
2026 | 2,613 | |
2027 | 2,424 | |
Thereafter | 10,794 | |
Total undiscounted rental payments | 24,044 | |
Less imputed interest | (3,397) | |
Total lease liabilities | $ 20,647 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerators: | ||||
Net income available for Common Stockholders – Basic | $ 76,969 | $ 67,163 | $ 222,260 | $ 211,578 |
Amounts allocated to non controlling interest (dilutive securities) | 3,772 | 3,346 | 10,981 | 10,563 |
Net income available for Common Stockholders – Fully Diluted | $ 80,741 | $ 70,509 | $ 233,241 | $ 222,141 |
Denominators: | ||||
Weighted average Common Shares outstanding – Basic (in shares) | 186,100 | 185,814 | 186,008 | 185,758 |
Effect of dilutive securities: | ||||
Exchange of Common OP Units for Common Shares (in shares) | 9,235 | 9,288 | 9,246 | 9,295 |
Stock options and restricted stock (in shares) | 105 | 167 | 160 | 195 |
Weighted average Common Shares outstanding – Fully Diluted (in shares) | 195,440 | 195,269 | 195,414 | 195,248 |
Earnings per Common Share – Basic (in usd per share) | $ 0.41 | $ 0.36 | $ 1.19 | $ 1.14 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.41 | $ 0.36 | $ 1.19 | $ 1.14 |
Common Stock and Other Equity_3
Common Stock and Other Equity Related Transactions - Dividend Distributions (Details) - $ / shares | Oct. 13, 2023 | Jul. 14, 2023 | Apr. 14, 2023 | Jan. 13, 2023 | Oct. 14, 2022 | Jul. 08, 2022 | Apr. 08, 2022 |
Class of Stock [Line Items] | |||||||
Common stock, dividends paid (in usd per share) | $ 0.4475 | $ 0.4475 | $ 0.4100 | $ 0.4100 | $ 0.4100 | $ 0.4100 | |
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Common stock, dividends paid (in usd per share) | $ 0.4475 |
Common Stock and Other Equity_4
Common Stock and Other Equity Related Transactions - Narratives (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
OP units were exchanged for an equal number of shares of common stock (in shares) | 131,192 | 34,680 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) $ in Millions | 9 Months Ended | |
Mar. 28, 2022 USD ($) site | Sep. 30, 2023 USD ($) | |
Asset Acquisition [Line Items] | ||
Impairment | $ 3.6 | |
Red Oak Shores Campground | ||
Asset Acquisition [Line Items] | ||
Number of sites acquired | site | 223 | |
Purchase price | $ 9.5 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures - Schedule of Investments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 site | Sep. 30, 2023 | Sep. 30, 2023 joint_venture | Sep. 30, 2023 community | Feb. 28, 2023 | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments | ||||||||||
Number of Sites | 3,564 | 2 | ||||||||
Investment in unconsolidated joint ventures | $ 84,328 | $ 84,328 | $ 81,404 | |||||||
Equity in income (loss) of unconsolidated joint ventures | 661 | $ 1,465 | 2,158 | $ 2,889 | ||||||
Voyager | Servicing Assets | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Economic interest | 33% | |||||||||
Lakeshore Investment One | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Economic interest | 65% | |||||||||
Lakeshore Investment Two | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Economic interest | 65% | |||||||||
Crosswinds | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Economic interest | 49% | |||||||||
Various | Meadows | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 1,077 | |||||||||
Economic interest | 50% | |||||||||
Investment in unconsolidated joint ventures | 407 | 407 | 158 | |||||||
Equity in income (loss) of unconsolidated joint ventures | 1,649 | 1,850 | ||||||||
Various | ECHO JV | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 0 | |||||||||
Economic interest | 50% | |||||||||
Investment in unconsolidated joint ventures | 2,764 | 2,764 | 2,963 | |||||||
Equity in income (loss) of unconsolidated joint ventures | (199) | 843 | ||||||||
Various | RVC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 1,283 | |||||||||
Economic interest | 80% | |||||||||
Investment in unconsolidated joint ventures | 61,805 | 61,805 | 60,323 | |||||||
Equity in income (loss) of unconsolidated joint ventures | (297) | (323) | ||||||||
Various | Three Joint Ventures | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | joint_venture | 3 | |||||||||
Various | Operating RVs | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | 1 | 7 | ||||||||
Various | RV Property Under Development | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | joint_venture | 2 | |||||||||
Florida | Lakeshore | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 721 | |||||||||
Investment in unconsolidated joint ventures | 3,048 | 3,048 | 2,625 | |||||||
Equity in income (loss) of unconsolidated joint ventures | 487 | 480 | ||||||||
Arizona | Voyager | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 0 | |||||||||
Economic interest | 0% | |||||||||
Investment in unconsolidated joint ventures | 0 | 0 | 139 | |||||||
Equity in income (loss) of unconsolidated joint ventures | 694 | 39 | ||||||||
Arizona | Mulberry Farms | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 200 | |||||||||
Economic interest | 50% | |||||||||
Investment in unconsolidated joint ventures | 10,560 | 10,560 | 9,902 | |||||||
Equity in income (loss) of unconsolidated joint ventures | 96 | 0 | ||||||||
Georgia | Hiawassee KOA JV | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Number of Sites | site | 283 | |||||||||
Economic interest | 50% | |||||||||
Investment in unconsolidated joint ventures | $ 5,744 | 5,744 | $ 5,294 | |||||||
Equity in income (loss) of unconsolidated joint ventures | $ (272) | $ 0 |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Narratives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Distributions from joint ventures, including those in excess of basis | $ 4.9 | $ 3.9 |
Distributions from joint ventures | $ 1.4 | $ 1.7 |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value of Mortgage Debt (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,116,027 | $ 2,043,412 |
Carrying Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 3,032,920 | $ 2,718,114 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narratives (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 01, 2023 | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) community property loan | Sep. 30, 2023 USD ($) community property loan | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) property | Apr. 30, 2023 USD ($) | Mar. 31, 2021 USD ($) | |
Debt Instrument | ||||||||
Investment in real estate | $ 5,224,113,000 | $ 5,224,113,000 | $ 5,111,021,000 | |||||
Mortgage notes payable financing proceeds | 463,753,000 | $ 200,000,000 | ||||||
Unsecured line of credit | 0 | 0 | 198,000,000 | |||||
Asset Pledged as Collateral | ||||||||
Debt Instrument | ||||||||
Investment in real estate | $ 3,167,200,000 | $ 3,167,200,000 | 2,868,300,000 | |||||
Secured Debt | ||||||||
Debt Instrument | ||||||||
Number of loans | loan | 4 | 4 | ||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||||
Unsecured line of credit | 0 | 0 | $ 198,000,000 | |||||
Line of credit, remaining borrowing amount | $ 500,000,000 | $ 500,000,000 | ||||||
Minimum | Line of Credit | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.25% | |||||||
Minimum | Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Annual facility fee (in percentage) | 0.20% | |||||||
Maximum | Line of Credit | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.65% | |||||||
Maximum | Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Annual facility fee (in percentage) | 0.35% | |||||||
Secured Mortgage Notes Payable | ||||||||
Debt Instrument | ||||||||
Weighted average interest rate (in percentage) | 3.70% | 3.70% | ||||||
Number of pledged properties | property | 120 | 120 | 114 | |||||
Secured Mortgage Notes Payable | Minimum | Secured Debt | ||||||||
Debt Instrument | ||||||||
Stated interest rate (in percentage) | 2.40% | 2.40% | ||||||
Secured Mortgage Notes Payable | Maximum | Secured Debt | ||||||||
Debt Instrument | ||||||||
Stated interest rate (in percentage) | 5.10% | 5.10% | ||||||
The June 2023 Secured Refinancing | Secured Debt | ||||||||
Debt Instrument | ||||||||
Stated interest rate (in percentage) | 5.04% | |||||||
Mortgage notes payable financing proceeds | $ 89,000,000 | |||||||
Debt instrument, term (in years) | 10 years | |||||||
The September 2023 Secured Refinancing | Secured Debt | ||||||||
Debt Instrument | ||||||||
Weighted average interest rate (in percentage) | 5.05% | 5.05% | ||||||
Number of pledged properties | community | 20 | 20 | ||||||
Mortgage notes payable financing proceeds | $ 375,000,000 | |||||||
Debt instrument, term (in years) | 8 years | |||||||
Number of loans | loan | 3 | 3 | ||||||
Mortgage Loans Maturing In 2023 and 2024 | Mortgage | ||||||||
Debt Instrument | ||||||||
Weighted average interest rate (in percentage) | 4.94% | 4.94% | ||||||
Number of pledged properties | community | 14 | 14 | ||||||
Number of loans | loan | 3 | 3 | ||||||
Repayments of debt | $ 100,400,000 | |||||||
Senior Unsecured Term Loan | Line of Credit | ||||||||
Debt Instrument | ||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||
Senior Unsecured Term Loan | Unsecured Debt | ||||||||
Debt Instrument | ||||||||
Debt face amount | $ 300,000,000 | $ 300,000,000 | $ 200,000,000 | $ 300,000,000 | ||||
Senior Unsecured Term Loan | Minimum | Line of Credit | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.30% | |||||||
Senior Unsecured Term Loan | Minimum | Unsecured Debt | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.40% | |||||||
Senior Unsecured Term Loan | Maximum | Line of Credit | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.80% | |||||||
Senior Unsecured Term Loan | Maximum | Unsecured Debt | SOFR | ||||||||
Debt Instrument | ||||||||
Debt instrument, variable rate (percent) | 1.95% |
Derivative Instruments and He_3
Derivative Instruments and Hedging - Narratives (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2023 | Sep. 30, 2023 | Mar. 31, 2021 | |
Derivative | |||
Reclassified as a decrease to interest expense | $ 10,700,000 | ||
Senior Unsecured Term Loan | Unsecured Debt | |||
Derivative | |||
Debt face amount | $ 200,000,000 | $ 300,000,000 | $ 300,000,000 |
Interest Rate Swaps | |||
Derivative | |||
Derivative, notional amount | $ 200,000,000 | $ 300,000,000 | |
Derivative fixed interest rate ( in percentage) | 3.68% | 0.41% | |
Derivative instrument, effective interest rate | 4.88% | 1.81% | |
Interest Rate Swaps | SOFR | |||
Derivative | |||
Basis spread on variable rate (in percentage) | 1.20% | 1.40% |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative | ||
Derivative asset | $ 15,564 | $ 19,119 |
Derivative Instruments and He_5
Derivative Instruments and Hedging - Effects of Derivative Instruments on Statement of Comprehensive Income and Income Statement (Details) - Interest Rate Swaps - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative | ||
Amount of (gain)/loss recognized in OCI on derivative | $ (9,364) | $ (18,479) |
Cash Flow Hedging | Interest Expense | ||
Derivative | ||
Amount of (gain)/loss reclassified from accumulated OCI into income | $ (12,919) | $ (1,527) |
Deferred Revenue from Members_3
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue - upfront payments from membership upgrade sales, beginning | $ 197,743 | |
Revenue recognized from membership upgrade sales upfront payments | (10,863) | $ (9,543) |
Net increase in deferred revenue - upfront payments from membership grade sales(1) | 29,140 | 28,080 |
Deferred revenue - upfront payments from membership upgrade sales, ending(2) | 216,021 | |
Deferred Commissions Expense | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Deferred commission expense, beginning | 50,441 | 47,349 |
Deferred commission expense | 5,861 | 5,531 |
Commission expense recognized | (3,122) | (2,850) |
Net increase in deferred commission expense(1) | 2,739 | 2,681 |
Deferred commission expense, ending | 53,180 | 50,030 |
Membership Subscription | ||
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue - upfront payments from membership upgrade sales, beginning | 185,660 | 163,957 |
Membership upgrade sales(1) | 28,041 | 27,771 |
Revenue recognized from membership upgrade sales upfront payments | (10,863) | (9,543) |
Net increase in deferred revenue - upfront payments from membership grade sales(1) | 17,178 | 18,228 |
Deferred revenue - upfront payments from membership upgrade sales, ending(2) | $ 202,838 | $ 182,185 |
Equity Incentive Awards (Detail
Equity Incentive Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense related to incentive plans | $ 1.8 | $ 2.6 | $ 12.9 | $ 7.9 | ||
Accelerated vesting of stock-based compensation expense | $ 6.3 | |||||
2014 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options issued (in shares) | 8,450 | |||||
Options issued (in usd per share) | $ 68.01 | |||||
Restricted Stock | 2014 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 60,391 | 82,884 | ||||
Shares categorized as vesting (in percentage) | 50% | |||||
Vesting period (in years) | 3 years | |||||
Fair value of shares issued | $ 4.1 | $ 3 | ||||
Shares categorized as performance based (in percentage) | 50% | |||||
Restricted Stock | 2014 Awards | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Restricted Stock | 2014 Awards | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Restricted Stock | 2014 Awards | Share-based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Performance Shares | 2014 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 13,812 | |||||
Fair value of shares issued | $ 1 |
Reportable Segments - Narrative
Reportable Segments - Narratives (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Reportable Segments - Consolida
Reportable Segments - Consolidated Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||||
Depreciation and amortization | $ (50,968) | $ (52,547) | $ (152,934) | $ (152,737) | |
Loss on sale of real estate and impairment, net | (949) | (3,747) | (3,581) | (3,747) | |
Reconciliation to consolidated net income: | |||||
Income from other investments, net | 2,333 | 2,399 | 6,897 | 6,920 | |
General and administrative | (9,895) | (11,086) | (38,163) | (34,834) | |
Other expenses | (1,338) | (1,627) | (4,187) | (6,880) | |
Interest and related amortization | (33,434) | (29,759) | (99,144) | (85,276) | |
Equity in income of unconsolidated joint ventures | 661 | 1,465 | 2,158 | 2,889 | |
Early debt retirement | (68) | 0 | (68) | (1,156) | |
Consolidated net income | 80,741 | 70,509 | 233,249 | 222,149 | |
Total assets | 5,626,291 | 5,405,446 | 5,626,291 | 5,405,446 | $ 5,492,519 |
Capital improvements (1) | 82,170 | 55,579 | 231,172 | 185,916 | |
Property Operations | |||||
Reconciliation to consolidated net income: | |||||
Total assets | 5,351,993 | 5,160,230 | 5,351,993 | 5,160,230 | |
Capital improvements (1) | 79,750 | 49,553 | 208,576 | 169,233 | |
Home Sales and Rentals Operations | |||||
Reconciliation to consolidated net income: | |||||
Total assets | 274,298 | 245,216 | 274,298 | 245,216 | |
Capital improvements (1) | 2,420 | 6,026 | 22,596 | 16,683 | |
Operating Segments | |||||
Segment Reporting Information | |||||
Operations revenues | 384,204 | 376,705 | 1,115,259 | 1,094,210 | |
Operations expenses | (212,081) | (213,159) | (599,611) | (602,586) | |
Income from segment operations | 172,123 | 163,546 | 515,648 | 491,624 | |
Interest income | 2,268 | 1,863 | 6,601 | 5,341 | |
Depreciation and amortization | (50,968) | (52,547) | (152,934) | (152,737) | |
Loss on sale of real estate and impairment, net | (949) | (3,747) | (3,581) | (3,747) | |
Income from operations | 122,474 | 109,115 | 365,734 | 340,481 | |
Operating Segments | Property Operations | |||||
Segment Reporting Information | |||||
Operations revenues | 351,243 | 338,208 | 1,029,609 | 984,535 | |
Operations expenses | (183,579) | (179,775) | (526,052) | (506,739) | |
Income from segment operations | 167,664 | 158,433 | 503,557 | 477,796 | |
Interest income | 1,637 | 1,441 | 4,819 | 4,198 | |
Depreciation and amortization | (48,242) | (50,026) | (144,659) | (145,200) | |
Loss on sale of real estate and impairment, net | (949) | (2,289) | (3,581) | (2,289) | |
Income from operations | 120,110 | 107,559 | 360,136 | 334,505 | |
Operating Segments | Home Sales and Rentals Operations | |||||
Segment Reporting Information | |||||
Operations revenues | 32,961 | 38,497 | 85,650 | 109,675 | |
Operations expenses | (28,502) | (33,384) | (73,559) | (95,847) | |
Income from segment operations | 4,459 | 5,113 | 12,091 | 13,828 | |
Interest income | 631 | 422 | 1,782 | 1,143 | |
Depreciation and amortization | (2,726) | (2,521) | (8,275) | (7,537) | |
Loss on sale of real estate and impairment, net | 0 | (1,458) | 0 | (1,458) | |
Income from operations | 2,364 | 1,556 | 5,598 | 5,976 | |
Segment Reconciling Items | |||||
Reconciliation to consolidated net income: | |||||
Corporate interest income | 8 | 2 | 22 | 5 | |
Income from other investments, net | 2,333 | 2,399 | 6,897 | 6,920 | |
General and administrative | (9,895) | (11,086) | (38,163) | (34,834) | |
Other expenses | (1,338) | (1,627) | (4,187) | (6,880) | |
Interest and related amortization | (33,434) | (29,759) | (99,144) | (85,276) | |
Equity in income of unconsolidated joint ventures | 661 | $ 1,465 | 2,158 | 2,889 | |
Early debt retirement | $ (68) | $ (68) | $ (1,156) |
Reportable Segments - Income fr
Reportable Segments - Income from Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Other income | $ 15,658 | $ 15,580 | $ 51,283 | $ 43,316 |
Total revenues | 388,813 | 380,969 | 1,128,779 | 1,106,476 |
Expenses: | ||||
Real estate taxes | 19,017 | 17,734 | 56,165 | 56,373 |
Membership sales and marketing | 5,696 | 5,937 | 16,055 | 15,720 |
Total expenses | 307,784 | 308,178 | 894,107 | 883,469 |
Annual membership subscriptions | ||||
Revenues: | ||||
Revenue from contract with customer | 16,673 | 16,254 | 48,832 | 47,003 |
Membership upgrade sales | ||||
Revenues: | ||||
Revenue from contract with customer | 3,744 | 3,308 | 10,863 | 9,543 |
Property management | ||||
Expenses: | ||||
Property management and cost of ancillary services | 19,887 | 19,003 | 58,710 | 55,973 |
Operating Segments | ||||
Expenses: | ||||
Income from segment operations | 172,123 | 163,546 | 515,648 | 491,624 |
Operating Segments | Property Operations | ||||
Revenues: | ||||
Rental income | 299,781 | 285,272 | 877,310 | 837,892 |
Other income | 15,658 | 15,580 | 51,283 | 43,316 |
Total revenues | 351,243 | 338,208 | 1,029,609 | 984,535 |
Expenses: | ||||
Operating and maintenance | 125,081 | 121,692 | 357,660 | 337,363 |
Real estate taxes | 19,017 | 17,734 | 56,165 | 56,373 |
Membership sales and marketing | 5,696 | 5,937 | 16,055 | 15,720 |
Ancillary operating expenses | 5,672 | 5,644 | 16,900 | 16,671 |
Total expenses | 183,579 | 179,775 | 526,052 | 506,739 |
Income from segment operations | 167,664 | 158,433 | 503,557 | 477,796 |
Operating Segments | Property Operations | Annual membership subscriptions | ||||
Revenues: | ||||
Revenue from contract with customer | 16,673 | 16,254 | 48,832 | 47,003 |
Operating Segments | Property Operations | Membership upgrade sales | ||||
Revenues: | ||||
Revenue from contract with customer | 3,744 | 3,308 | 10,863 | 9,543 |
Operating Segments | Property Operations | Ancillary services | ||||
Revenues: | ||||
Revenue from contract with customer | 15,387 | 17,794 | 41,321 | 46,781 |
Expenses: | ||||
Property management and cost of ancillary services | 8,226 | 9,765 | 20,562 | 24,639 |
Operating Segments | Property Operations | Property management | ||||
Expenses: | ||||
Property management and cost of ancillary services | 19,887 | 19,003 | 58,710 | 55,973 |
Operating Segments | Home Sales and Rentals Operations | ||||
Revenues: | ||||
Rental income | 3,553 | 3,744 | 11,130 | 11,519 |
Total revenues | 32,961 | 38,497 | 85,650 | 109,675 |
Expenses: | ||||
Operating and maintenance | 1,765 | 1,489 | 3,883 | 4,117 |
Home selling expenses | 1,492 | 1,436 | 4,358 | 4,475 |
Total expenses | 28,502 | 33,384 | 73,559 | 95,847 |
Income from segment operations | 4,459 | 5,113 | 12,091 | 13,828 |
Operating Segments | Home Sales and Rentals Operations | Home sales And brokered resales | ||||
Revenues: | ||||
Revenue from contract with customer | 29,408 | 34,753 | 74,520 | 98,156 |
Expenses: | ||||
Property management and cost of ancillary services | $ 25,245 | $ 30,459 | $ 65,318 | $ 87,255 |