Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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, 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, $0.01 Par Value | |
Trading Symbol | ELS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 186,209,657 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 on Form 10-Q/A (the “Amended Report”) amends and restates certain items noted below in the Quarterly Report on Form 10-Q of Equity Lifestyle Properties (the “Company”) for the quarter ended March 31, 2023, originally filed with the Securities and Exchange Commission (“SEC”) on April 25, 2023 (the “Original Report”). | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000895417 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment in real estate: | ||
Land | $ 2,086,725 | $ 2,084,532 |
Land improvements | 4,170,166 | 4,115,439 |
Buildings and other depreciable property | 1,197,416 | 1,169,590 |
Investment in real estate | 7,454,307 | 7,369,561 |
Accumulated depreciation | (2,306,538) | (2,258,540) |
Net investment in real estate | 5,147,769 | 5,111,021 |
Cash and restricted cash | 30,661 | 22,347 |
Notes receivable, net | 46,655 | 45,356 |
Investment in unconsolidated joint ventures | 81,135 | 81,404 |
Deferred commission expense | 51,090 | 50,441 |
Other assets, net | 162,003 | 181,950 |
Total Assets | 5,519,313 | 5,492,519 |
Liabilities: | ||
Mortgage notes payable, net | 2,677,318 | 2,693,167 |
Term loan, net | 497,039 | 496,817 |
Unsecured line of credit | 212,000 | 198,000 |
Accounts payable and other liabilities | 185,126 | 175,148 |
Deferred membership revenue | 204,312 | 197,743 |
Accrued interest payable | 12,090 | 11,739 |
Rents and other customer payments received in advance and security deposits | 130,704 | 122,318 |
Distributions payable | 87,338 | 80,102 |
Total Liabilities | 4,005,927 | 3,975,034 |
Stockholders' Equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2023 and December 31, 2022; none issued and outstanding. | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 186,205,815 and 186,120,298 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. | 1,916 | 1,916 |
Paid-in capital | 1,629,866 | 1,628,618 |
Distributions in excess of accumulated earnings | (205,203) | (204,248) |
Accumulated other comprehensive income | 15,141 | 19,119 |
Total Stockholders’ Equity | 1,441,720 | 1,445,405 |
Non-controlling interests – Common OP Units | 71,666 | 72,080 |
Total Equity | 1,513,386 | 1,517,485 |
Total Liabilities and Equity | $ 5,519,313 | $ 5,492,519 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 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) | 186,205,815 | 186,120,298 |
Common stock, shares outstanding (in shares) | 186,205,815 | 186,120,298 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Rental income | $ 296,451 | $ 285,065 |
Other income | 17,714 | 13,542 |
Interest income | 2,088 | 1,759 |
Income from other investments, net | 2,091 | 1,904 |
Total revenues | 369,952 | 360,189 |
Expenses: | ||
Property operating and maintenance | 112,483 | 103,992 |
Real estate taxes | 18,316 | 19,457 |
Membership sales and marketing | 4,838 | 4,331 |
Depreciation and amortization | 50,502 | 49,394 |
Home selling expenses and ancillary operating expenses | 6,924 | 6,481 |
General and administrative | 11,661 | 12,072 |
Casualty-related charges/(recoveries), net | 0 | 0 |
Other expenses | 1,468 | 1,048 |
Early debt retirement | 0 | 516 |
Interest and related amortization | 32,588 | 27,464 |
Total expenses | 281,385 | 273,310 |
Loss on sale of real estate and impairment, net | (2,632) | 0 |
Income before equity in income of unconsolidated joint ventures | 85,935 | 86,879 |
Equity in income of unconsolidated joint ventures | 524 | 171 |
Consolidated net income | 86,459 | 87,050 |
Income allocated to non-controlling interests – Common OP Units | (4,088) | (4,144) |
Net income available for Common Stockholders | 82,371 | 82,906 |
Other comprehensive income (loss): | ||
Adjustment for fair market value of swap | (3,978) | 9,924 |
Consolidated comprehensive income | 82,481 | 96,974 |
Comprehensive income allocated to non-controlling interests – Common OP Units | (3,899) | (4,616) |
Comprehensive income attributable to Common Stockholders | $ 78,582 | $ 92,358 |
Earnings per Common Share – Basic (in usd per share) | $ 0.44 | $ 0.45 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.44 | $ 0.45 |
Weighted average common shares outstanding – basic (in shares) | 185,900 | 185,690 |
Weighted average common shares outstanding – fully diluted (in shares) | 195,369 | 195,246 |
Annual membership subscriptions | ||
Revenues: | ||
Contract revenue | $ 15,970 | $ 15,157 |
Membership upgrade sales | ||
Revenues: | ||
Contract revenue | 3,505 | 3,067 |
Home sales, brokered resales and ancillary services | ||
Revenues: | ||
Contract revenue | 32,133 | 39,695 |
Expenses: | ||
Cost of services | 23,141 | 30,684 |
Property management | ||
Expenses: | ||
Cost of services | $ 19,464 | $ 17,871 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | 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 | $ (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 | (177,158) | 13,448 | 72,967 |
Beginning balance at Dec. 31, 2022 | 1,517,485 | 1,916 | 1,628,618 | (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 | $ (205,203) | $ 15,141 | $ 71,666 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Consolidated net income | $ 86,459 | $ 87,050 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Loss on sale of real estate and impairment, net | 2,632 | 0 |
Early debt retirement | 0 | 516 |
Depreciation and amortization | 51,860 | 50,237 |
Amortization of loan costs | 1,208 | 1,213 |
Debt premium amortization | (32) | (60) |
Equity in income of unconsolidated joint ventures | (524) | (171) |
Distributions of income from unconsolidated joint ventures | 174 | 0 |
Proceeds from insurance claims, net | 5,795 | 59 |
Compensation expense related to incentive plans | 3,330 | (1,529) |
Revenue recognized from membership upgrade sales upfront payments | (3,505) | (3,067) |
Commission expense recognized related to membership sales | 1,095 | 1,040 |
Changes in assets and liabilities: | ||
Manufactured homes, net | (19,574) | (1,378) |
Notes receivable, net | (1,345) | 189 |
Deferred commission expense | (1,744) | (1,550) |
Other assets, net | 5,856 | 1,857 |
Accounts payable and other liabilities | 9,553 | (1,923) |
Deferred membership revenue | 10,074 | 8,494 |
Rents and other customer payments received in advance and security deposits | 7,668 | 13,665 |
Net cash provided by operating activities | 158,980 | 154,642 |
Cash Flows From Investing Activities: | ||
Real estate acquisitions, net | (8,803) | (15,402) |
Investment in unconsolidated joint ventures | (1,752) | (7,912) |
Distributions of capital from unconsolidated joint ventures | 1,012 | 374 |
Proceeds from insurance claims, net | 4,070 | 1,405 |
Capital improvements | (60,974) | (60,958) |
Net cash used in investing activities | (66,447) | (82,493) |
Cash Flows From Financing Activities: | ||
Proceeds from stock options and employee stock purchase plan | 363 | 513 |
Gross proceeds from the issuance of common stock | 0 | 28,370 |
Distributions: | ||
Common Stockholders | (76,309) | (67,295) |
Common OP Unitholders | (3,799) | (3,373) |
Share based award tax withholding payments | 1,932 | 3,449 |
Principal payments and mortgage debt repayment | (16,443) | (29,592) |
Term loan proceeds | 0 | 200,000 |
Line of Credit repayment | (104,000) | (319,000) |
Line of Credit proceeds | 118,000 | 39,000 |
Debt issuance and defeasance costs | 0 | (1,957) |
Other | (99) | (644) |
Net cash used in financing activities | (84,219) | (157,427) |
Net increase (decrease) in cash and restricted cash | 8,314 | (85,278) |
Cash and restricted cash, beginning of period | 22,347 | 123,398 |
Cash and restricted cash, end of period | 30,661 | 38,120 |
Supplemental Information: | ||
Cash paid for interest, net | 31,630 | 26,839 |
Real estate acquisitions: | ||
Investment in real estate | (9,535) | (15,075) |
Notes receivable, net | 0 | (772) |
Other assets, net | 14 | 0 |
Deferred membership revenue | 0 | 315 |
Other liabilities | 0 | 79 |
Rents and other customer payments received in advance and security deposits | 718 | 51 |
Real estate acquisitions, net | $ (8,803) | $ (15,402) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 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 March 31, 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 | 3 Months Ended |
Mar. 31, 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. Income 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 March 31, 2023 and December 31, 2022, restricted cash consisted of $19.8 million and $19.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. (c) 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 quarter ended March 31, 2023, we recognized expenses of approximately $8.5 million related to debris removal and cleanup related to Hurricane Ian and an offsetting insurance recovery revenue accrual of $8.5 million related to the expected insurance recovery as a result of Hurricane Ian. |
Restatement of Previously Issue
Restatement of Previously Issued Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Consolidated Financial Statements | Restatement of Previously Issued Consolidated Financial Statements During the quarter ended June 30, 2023, the Company identified and corrected an error related to the classification of cash outflows associated with the purchase of manufactured homes in the Consolidated Statements of Cash Flows. Previously, the Company classified these cash outflows 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 the Consolidated Statements of Income and Comprehensive Income, Consolidated Balance Sheets, or Consolidated Statements of Changes in Equity for any periods presented. The Company is correcting this misclassification by restating its Consolidated Statements of Cash Flows through this Amended Report. The impact on the line items within the previously reported Consolidated Statements of Cash Flows for the quarters ended March 31, 2023 and 2022 previously filed in the Original Report are as follows (in thousands): Three Month Ended March 31, 2023 Three Month Ended March 31, 2022 Operating Activities As Reported Adjustment As Restated As Reported Adjustment As Restated Manufactured homes, net $ — (19,574) $ (19,574) $ — $ (1,378) $ (1,378) Other assets, net $ 21,763 (15,907) $ 5,856 $ 23,168 $ (21,311) $ 1,857 Net cash provided by operating activities $ 194,461 (35,481) $ 158,980 $ 177,331 (22,689) $ 154,642 Investing Activities Capital improvements $ (96,455) 35,481 $ (60,974) $ (83,647) $ 22,689 $ (60,958) Net cash used in investing activities $ (101,928) 35,481 $ (66,447) $ (105,182) $ 22,689 $ (82,493) Cash and restricted cash, end of period $ 30,661 — $ 30,661 $ 38,120 — $ 38,120 In addition, capital improvements in our Home Sales and Rental Operations segment shown in Note 14. Reportable Segments has been updated to reflect the restatement to our Consolidated Statements of Cash Flows. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessor The leases entered into between the 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 March 31, 2023 2023 $ 86,670 2024 115,394 2025 42,805 2026 23,963 2027 22,544 Thereafter 57,200 Total $ 348,576 Lessee We lease land under non-cancelable operating leases at 10 Properties expiring at 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 March 31, 2023 and 2022, total operating lease payments were $1.5 million and $2.6 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 March 31, 2023: As of March 31, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 544 $ 3,081 $ 3,625 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 7,797 25,427 33,224 Less imputed interest (2,013) (3,741) (5,754) Total lease liabilities $ 5,784 $ 21,686 $ 27,470 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 the 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 March 31, 2023 2023 $ 86,670 2024 115,394 2025 42,805 2026 23,963 2027 22,544 Thereafter 57,200 Total $ 348,576 Lessee We lease land under non-cancelable operating leases at 10 Properties expiring at 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 March 31, 2023 and 2022, total operating lease payments were $1.5 million and $2.6 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 March 31, 2023: As of March 31, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 544 $ 3,081 $ 3,625 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 7,797 25,427 33,224 Less imputed interest (2,013) (3,741) (5,754) Total lease liabilities $ 5,784 $ 21,686 $ 27,470 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 | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 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 ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands, except per share data) 2023 2022 Numerators: Net income available for Common Stockholders – Basic $ 82,371 $ 82,906 Amounts allocated to non controlling interest (dilutive securities) 4,088 4,144 Net income available for Common Stockholders – Fully Diluted $ 86,459 $ 87,050 Denominators: Weighted average Common Shares outstanding – Basic 185,900 185,690 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,262 9,301 Stock options and restricted stock 207 255 Weighted average Common Shares outstanding – Fully Diluted 195,369 195,246 Earnings per Common Share – Basic $ 0.44 $ 0.45 Earnings per Common Share – Fully Diluted $ 0.44 $ 0.45 |
Common Stock and Other Equity R
Common Stock and Other Equity Related Transactions | 3 Months Ended |
Mar. 31, 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 Equity Offering Program On February 24, 2022, we entered into our current at-the-market (“ATM”) equity offering program with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our common stock, par value $0.01 per share, having an aggregate offering price of up to $500.0 million. As of March 31, 2023, the full capacity remained available for issuance under our ATM equity offering program. 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 quarters ended March 31, 2023 and 2022, 25,496 and 8,640 OP Units, respectively, were exchanged for an equal number of shares of Common Stock. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions 2023 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 quarter ended March 31, 2023, we recorded an impairment charge of approximately $2.6 million related to flooding events at certain Properties in California. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically as of March 31, 2023 and December 31, 2022 , respectively): Investment as of Income/(Loss) for the Quarters Ended Investment Location Number of Sites Economic (a) March 31, 2023 December 31, 2022 March 31, 2023 March 31, 2022 Meadows Various (2,2) 1,077 50 % $ 232 $ 158 $ 374 $ 260 Lakeshore Florida (3,3) 721 (b) 2,866 2,625 172 135 Voyager Arizona (1,1) — — % (c) — 139 692 20 ECHO JV Various — 50 % 2,773 2,963 (190) 177 RVC Various 1,282 80 % (d) 60,036 60,323 (353) (421) Mulberry Farms Arizona 200 50 % 10,071 9,902 (31) — Hiawassee KOA JV Georgia 283 50 % $ 5,157 $ 5,294 $ (140) $ — 3,563 $ 81,135 $ 81,404 $ 524 $ 171 _____________________ (a) The percentages shown approximate our economic interest as of March 31, 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) During the quarter ended March 31, 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 $1.2 million and $0.4 million in distributions from our unconsolidated joint ventures for the quarters ended March 31, 2023 and 2022, respectively. Approximately $0.3 million of the distributions made to us exceeded our basis in our unconsolidated joint ventures for the quarters ended March 31, 2023 and 2022, and as such, were recorded as income from unconsolidated joint ventures. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 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 March 31, 2023 As of December 31, 2022 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,100,665 $ 2,701,638 $ 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 March 31, 2023, was approximately 3.7% per annum. The debt bears interest at stated rates ranging from 2.4% to 8.9% per annum and matures on various dates ranging from 2023 to 2041. The debt encumbered a total of 114 of our Properties as of March 31, 2023 and December 31, 2022, and the gross carrying value of such Properties was approximately $2,895.2 million and $2,868.3 million, as of March 31, 2023 and December 31, 2022, respectively. 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 unsecured line of credit (the “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 March 31, 2023, the Company has no remaining LIBOR based borrowings. The LOC had a balance of $212.0 million and $198.0 million outstanding as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, our LOC had a remaining borrowing capacity of $288.0 million. As of March 31, 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 | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 9.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 March 31, 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 March 31, 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 March 31, As of December 31, (amounts in thousands) Balance Sheet Location 2023 2022 Interest Rate Swap Other assets, net $ 15,141 $ 19,119 The following table presents the effect of our derivative financial instrument 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 Swap $ 523 $ (9,661) Interest Expense $ (3,455) $ 263 During the next twelve months, we estimate that $14.0 million will be reclassified 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 March 31, 2023, we had not posted any collateral related to the 2021 Swap. |
Equity Incentive Awards
Equity Incentive Awards | 3 Months Ended |
Mar. 31, 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. Stock based compensation expense, reported in General and administrative expense on the Consolidated Statements of Income and Comprehensive Income, was $2.5 million and $2.6 million for the quarters ended March 31, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
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. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
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 ended March 31, 2023 or 2022. The following tables summarize our segment financial information for the quarters ended March 31, 2023 and 2022: Quarter Ended March 31, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 341,737 $ 24,036 $ 365,773 Operations expenses (165,023) (20,143) (185,166) Income from segment operations 176,714 3,893 180,607 Interest income 1,566 514 2,080 Depreciation and amortization (47,755) (2,747) (50,502) Loss on sale of real estate and impairment, net (2,632) — (2,632) Income from operations $ 127,893 $ 1,660 $ 129,553 Reconciliation to consolidated net income: Corporate interest income 8 Income from other investments, net 2,091 General and administrative (11,661) Other expenses (1,468) Interest and related amortization (32,588) Equity in income of unconsolidated joint ventures 524 Consolidated net income $ 86,459 Total assets $ 5,239,891 $ 279,422 $ 5,519,313 Capital improvements (1) $ 51,412 $ 9,562 $ 60,974 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements—Note 3. Restatement of Previously Issued Consolidated Financial Statements for more information. Quarter Ended March 31, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 325,426 $ 31,100 $ 356,526 Operations expenses (154,988) (27,828) (182,816) Income from segment operations 170,438 3,272 173,710 Interest income 1,377 380 1,757 Depreciation and amortization (46,877) (2,517) (49,394) Income from operations $ 124,938 $ 1,135 $ 126,073 Reconciliation to consolidated net income: Corporate interest income 2 Income from other investments, net 1,904 General and administrative (1) (12,072) Other expenses (1) (1,048) Interest and related amortization (27,464) Equity in income of unconsolidated joint ventures 171 Early debt retirement (516) Consolidated net income $ 87,050 Total assets $ 5,012,335 $ 252,470 $ 5,264,805 Capital improvements (2) $ 54,990 $ 5,968 $ 60,958 ______________________ (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 3. Restatement of Previously Issued Consolidated Financial Statements for more information. The following table summarizes our financial information for the Property Operations segment for the quarters ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands) 2023 2022 Revenues: Rental income $ 292,579 $ 281,104 Annual membership subscriptions 15,970 15,157 Membership upgrade sales (1) 3,505 3,067 Other income 17,714 13,542 Gross revenues from ancillary services 11,969 12,556 Total property operations revenues 341,737 325,426 Expenses: Property operating and maintenance 111,524 102,590 Real estate taxes 18,316 19,457 Membership sales and marketing (1) 4,838 4,331 Cost of ancillary services 5,297 5,721 Ancillary operating expenses 5,584 5,018 Property management 19,464 17,871 Total property operations expenses 165,023 154,988 Income from property operations segment $ 176,714 $ 170,438 _____________________ (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 ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands) 2023 2022 Revenues: Rental income (1) $ 3,872 $ 3,961 Gross revenue from home sales and brokered resales 20,164 27,139 Total revenues 24,036 31,100 Expenses: Rental home operating and maintenance 959 1,402 Cost of home sales and brokered resales 17,844 24,963 Home selling expenses 1,340 1,463 Total expenses 20,143 27,828 Income from home sales and rentals operations segment $ 3,893 $ 3,272 ______________________ (1) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 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 March 31, 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. Income 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 March 31, 2023 and December 31, 2022, restricted cash consisted of $19.8 million and $19.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. |
Insurance Recoveries | 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 quarter ended March 31, 2023, we recognized expenses of approximately $8.5 million related to debris removal and cleanup related to Hurricane Ian and an offsetting insurance recovery revenue accrual of $8.5 million related to the expected insurance recovery as a result of Hurricane Ian. |
Restatement of Previously Iss_2
Restatement of Previously Issued Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of Revisions of Line Items Within the Consolidated Statements of Cash Flows | The impact on the line items within the previously reported Consolidated Statements of Cash Flows for the quarters ended March 31, 2023 and 2022 previously filed in the Original Report are as follows (in thousands): Three Month Ended March 31, 2023 Three Month Ended March 31, 2022 Operating Activities As Reported Adjustment As Restated As Reported Adjustment As Restated Manufactured homes, net $ — (19,574) $ (19,574) $ — $ (1,378) $ (1,378) Other assets, net $ 21,763 (15,907) $ 5,856 $ 23,168 $ (21,311) $ 1,857 Net cash provided by operating activities $ 194,461 (35,481) $ 158,980 $ 177,331 (22,689) $ 154,642 Investing Activities Capital improvements $ (96,455) 35,481 $ (60,974) $ (83,647) $ 22,689 $ (60,958) Net cash used in investing activities $ (101,928) 35,481 $ (66,447) $ (105,182) $ 22,689 $ (82,493) Cash and restricted cash, end of period $ 30,661 — $ 30,661 $ 38,120 — $ 38,120 In addition, capital improvements in our Home Sales and Rental Operations segment shown in Note 14. Reportable Segments has been updated to reflect the restatement to our Consolidated Statements of Cash Flows. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 2023 $ 86,670 2024 115,394 2025 42,805 2026 23,963 2027 22,544 Thereafter 57,200 Total $ 348,576 |
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 March 31, 2023: As of March 31, 2023 (amounts in thousands) Ground Leases Office and Other Leases Total 2023 $ 544 $ 3,081 $ 3,625 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 7,797 25,427 33,224 Less imputed interest (2,013) (3,741) (5,754) Total lease liabilities $ 5,784 $ 21,686 $ 27,470 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 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 ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands, except per share data) 2023 2022 Numerators: Net income available for Common Stockholders – Basic $ 82,371 $ 82,906 Amounts allocated to non controlling interest (dilutive securities) 4,088 4,144 Net income available for Common Stockholders – Fully Diluted $ 86,459 $ 87,050 Denominators: Weighted average Common Shares outstanding – Basic 185,900 185,690 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,262 9,301 Stock options and restricted stock 207 255 Weighted average Common Shares outstanding – Fully Diluted 195,369 195,246 Earnings per Common Share – Basic $ 0.44 $ 0.45 Earnings per Common Share – Fully Diluted $ 0.44 $ 0.45 |
Common Stock and Other Equity_2
Common Stock and Other Equity Related Transactions (Tables) | 3 Months Ended |
Mar. 31, 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 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Our Investment in Unconsolidated Joint Ventures | The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically as of March 31, 2023 and December 31, 2022 , respectively): Investment as of Income/(Loss) for the Quarters Ended Investment Location Number of Sites Economic (a) March 31, 2023 December 31, 2022 March 31, 2023 March 31, 2022 Meadows Various (2,2) 1,077 50 % $ 232 $ 158 $ 374 $ 260 Lakeshore Florida (3,3) 721 (b) 2,866 2,625 172 135 Voyager Arizona (1,1) — — % (c) — 139 692 20 ECHO JV Various — 50 % 2,773 2,963 (190) 177 RVC Various 1,282 80 % (d) 60,036 60,323 (353) (421) Mulberry Farms Arizona 200 50 % 10,071 9,902 (31) — Hiawassee KOA JV Georgia 283 50 % $ 5,157 $ 5,294 $ (140) $ — 3,563 $ 81,135 $ 81,404 $ 524 $ 171 _____________________ (a) The percentages shown approximate our economic interest as of March 31, 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) During the quarter ended March 31, 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) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 As of December 31, 2022 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,100,665 $ 2,701,638 $ 2,043,412 $ 2,718,114 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, As of December 31, (amounts in thousands) Balance Sheet Location 2023 2022 Interest Rate Swap Other assets, net $ 15,141 $ 19,119 |
Schedule of Effect of Derivative Instruments on Consolidated Statements of Operations | The following table presents the effect of our derivative financial instrument 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 Swap $ 523 $ (9,661) Interest Expense $ (3,455) $ 263 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information | The following tables summarize our segment financial information for the quarters ended March 31, 2023 and 2022: Quarter Ended March 31, 2023 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 341,737 $ 24,036 $ 365,773 Operations expenses (165,023) (20,143) (185,166) Income from segment operations 176,714 3,893 180,607 Interest income 1,566 514 2,080 Depreciation and amortization (47,755) (2,747) (50,502) Loss on sale of real estate and impairment, net (2,632) — (2,632) Income from operations $ 127,893 $ 1,660 $ 129,553 Reconciliation to consolidated net income: Corporate interest income 8 Income from other investments, net 2,091 General and administrative (11,661) Other expenses (1,468) Interest and related amortization (32,588) Equity in income of unconsolidated joint ventures 524 Consolidated net income $ 86,459 Total assets $ 5,239,891 $ 279,422 $ 5,519,313 Capital improvements (1) $ 51,412 $ 9,562 $ 60,974 ___________________ (1) Amounts are restated. See Part I. Item 1. Financial Statements—Note 3. Restatement of Previously Issued Consolidated Financial Statements for more information. Quarter Ended March 31, 2022 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 325,426 $ 31,100 $ 356,526 Operations expenses (154,988) (27,828) (182,816) Income from segment operations 170,438 3,272 173,710 Interest income 1,377 380 1,757 Depreciation and amortization (46,877) (2,517) (49,394) Income from operations $ 124,938 $ 1,135 $ 126,073 Reconciliation to consolidated net income: Corporate interest income 2 Income from other investments, net 1,904 General and administrative (1) (12,072) Other expenses (1) (1,048) Interest and related amortization (27,464) Equity in income of unconsolidated joint ventures 171 Early debt retirement (516) Consolidated net income $ 87,050 Total assets $ 5,012,335 $ 252,470 $ 5,264,805 Capital improvements (2) $ 54,990 $ 5,968 $ 60,958 ______________________ (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 3. Restatement of Previously Issued Consolidated Financial Statements 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 ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands) 2023 2022 Revenues: Rental income $ 292,579 $ 281,104 Annual membership subscriptions 15,970 15,157 Membership upgrade sales (1) 3,505 3,067 Other income 17,714 13,542 Gross revenues from ancillary services 11,969 12,556 Total property operations revenues 341,737 325,426 Expenses: Property operating and maintenance 111,524 102,590 Real estate taxes 18,316 19,457 Membership sales and marketing (1) 4,838 4,331 Cost of ancillary services 5,297 5,721 Ancillary operating expenses 5,584 5,018 Property management 19,464 17,871 Total property operations expenses 165,023 154,988 Income from property operations segment $ 176,714 $ 170,438 _____________________ (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 ended March 31, 2023 and 2022: Quarters Ended March 31, (amounts in thousands) 2023 2022 Revenues: Rental income (1) $ 3,872 $ 3,961 Gross revenue from home sales and brokered resales 20,164 27,139 Total revenues 24,036 31,100 Expenses: Rental home operating and maintenance 959 1,402 Cost of home sales and brokered resales 17,844 24,963 Home selling expenses 1,340 1,463 Total expenses 20,143 27,828 Income from home sales and rentals operations segment $ 3,893 $ 3,272 ______________________ (1) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Mar. 31, 2023 |
Operating Partnership | |
Other Ownership Interests [Line Items] | |
Ownership interest (percent) | 95.30% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 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 | $ 19.8 | $ 19.7 |
Hurricane Ian | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Expenses related to removal and cleanup | 8.5 | |
Offsetting insurance recovery | $ 8.5 | |
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 |
Restatement of Previously Iss_3
Restatement of Previously Issued Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Manufactured homes, net | $ (19,574) | $ (1,378) | ||
Other assets, net | 5,856 | 1,857 | ||
Net cash provided by operating activities | 158,980 | 154,642 | ||
Capital improvements | (60,974) | (60,958) | ||
Net cash used in investing activities | (66,447) | (82,493) | ||
Cash and restricted cash, end of year | $ 30,661 | $ 38,120 | $ 22,347 | $ 123,398 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rents Expected to be Received (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
2023 | $ 86,670 |
2024 | 115,394 |
2025 | 42,805 |
2026 | 23,963 |
2027 | 22,544 |
Thereafter | 57,200 |
Total | $ 348,576 |
Leases - Narratives (Details)
Leases - Narratives (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) property | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |||
Number of non-cancelable operating leases, lessee (leases) | property | 10 | ||
Operating lease payments | $ 1,500 | $ 2,600 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | 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 | |
Right of use asset | $ 25,300 | $ 25,900 | |
Operating lease liability | $ 27,470 | $ 28,000 | |
Weighted average operating lease term | 9 years | 9 years | |
Operating lease weighted average interest rate (percent) | 3.80% | 3.80% |
Leases - Summary of Minimum Fut
Leases - Summary of Minimum Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | $ 3,625 | |
2024 | 4,082 | |
2025 | 3,788 | |
2026 | 3,297 | |
2027 | 3,113 | |
Thereafter | 15,319 | |
Total undiscounted rental payments | 33,224 | |
Less imputed interest | (5,754) | |
Total lease liabilities | 27,470 | $ 28,000 |
Ground Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | 544 | |
2024 | 675 | |
2025 | 680 | |
2026 | 684 | |
2027 | 689 | |
Thereafter | 4,525 | |
Total undiscounted rental payments | 7,797 | |
Less imputed interest | (2,013) | |
Total lease liabilities | 5,784 | |
Office and Other Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2023 | 3,081 | |
2024 | 3,407 | |
2025 | 3,108 | |
2026 | 2,613 | |
2027 | 2,424 | |
Thereafter | 10,794 | |
Total undiscounted rental payments | 25,427 | |
Less imputed interest | (3,741) | |
Total lease liabilities | $ 21,686 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerators: | ||
Net income available for Common Stockholders – Basic | $ 82,371 | $ 82,906 |
Amounts allocated to non controlling interest (dilutive securities) | 4,088 | 4,144 |
Net income available for Common Stockholders – Fully Diluted | $ 86,459 | $ 87,050 |
Denominators: | ||
Weighted average Common Shares outstanding – Basic (in shares) | 185,900 | 185,690 |
Effect of dilutive securities: | ||
Exchange of Common OP Units for Common Shares (in shares) | 9,262 | 9,301 |
Stock options and restricted stock (in shares) | 207 | 255 |
Weighted average common shares outstanding – fully diluted (in shares) | 195,369 | 195,246 |
Earnings per Common Share – Basic (in usd per share) | $ 0.44 | $ 0.45 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.44 | $ 0.45 |
Common Stock and Other Equity_3
Common Stock and Other Equity Related Transactions - Dividend Distributions (Details) - $ / shares | 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) | $ 0.4100 | $ 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) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Feb. 24, 2022 | |
Class of Stock [Line Items] | ||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
OP units were exchanged for an equal number of shares of common stock (in shares) | 25,496 | 8,640 | ||
Private Placement | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in usd per share) | $ 0.01 | |||
Aggregate offering price | $ 500 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) $ in Millions | 3 Months Ended | |
Mar. 28, 2022 USD ($) site | Mar. 31, 2023 USD ($) | |
Asset Acquisition [Line Items] | ||
Impairment | $ 2.6 | |
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 | ||||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 site | Mar. 31, 2023 | Mar. 31, 2023 joint_venture | Mar. 31, 2023 community | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments | |||||||
Number of Sites | 3,563 | 2 | |||||
Investment in unconsolidated joint ventures | $ 81,135 | $ 81,404 | |||||
Equity in income (loss) of unconsolidated joint ventures | 524 | $ 171 | |||||
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 | 232 | 158 | |||||
Equity in income (loss) of unconsolidated joint ventures | 374 | 260 | |||||
Various | ECHO JV | |||||||
Schedule of Equity Method Investments | |||||||
Number of Sites | site | 0 | ||||||
Economic interest | 50% | ||||||
Investment in unconsolidated joint ventures | 2,773 | 2,963 | |||||
Equity in income (loss) of unconsolidated joint ventures | (190) | 177 | |||||
Various | RVC | |||||||
Schedule of Equity Method Investments | |||||||
Number of Sites | site | 1,282 | ||||||
Economic interest | 80% | ||||||
Investment in unconsolidated joint ventures | 60,036 | 60,323 | |||||
Equity in income (loss) of unconsolidated joint ventures | (353) | (421) | |||||
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 | 2,866 | 2,625 | |||||
Equity in income (loss) of unconsolidated joint ventures | 172 | 135 | |||||
Arizona | Voyager | |||||||
Schedule of Equity Method Investments | |||||||
Number of Sites | site | 0 | ||||||
Economic interest | 0% | ||||||
Investment in unconsolidated joint ventures | 0 | 139 | |||||
Equity in income (loss) of unconsolidated joint ventures | 692 | 20 | |||||
Arizona | Mulberry Farms | |||||||
Schedule of Equity Method Investments | |||||||
Number of Sites | site | 200 | ||||||
Economic interest | 50% | ||||||
Investment in unconsolidated joint ventures | 10,071 | 9,902 | |||||
Equity in income (loss) of unconsolidated joint ventures | (31) | 0 | |||||
Georgia | Hiawassee KOA JV | |||||||
Schedule of Equity Method Investments | |||||||
Number of Sites | site | 283 | ||||||
Economic interest | 50% | ||||||
Investment in unconsolidated joint ventures | 5,157 | $ 5,294 | |||||
Equity in income (loss) of unconsolidated joint ventures | $ (140) | $ 0 |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Distributions from joint ventures | $ 1.2 | $ 0.4 |
Distributions from joint ventures, including those in excess of basis | $ 0.3 | $ 0.3 |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value of Mortgage Debt (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,100,665 | $ 2,043,412 |
Carrying Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,701,638 | $ 2,718,114 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narratives (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 01, 2023 | Mar. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Debt Instrument | ||||
Weighted average interest rate (in percentage) | 3.70% | |||
Number of pledged properties | property | 114 | |||
Investment in real estate | $ 5,147,769,000 | $ 5,111,021,000 | ||
Unsecured line of credit | 212,000,000 | 198,000,000 | ||
Senior Unsecured Term Loan | Line of Credit | ||||
Debt Instrument | ||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | |||
Asset Pledged as Collateral | ||||
Debt Instrument | ||||
Investment in real estate | $ 2,895,200,000 | $ 2,868,300,000 | ||
Minimum | Senior Unsecured Term Loan | Line of Credit | SOFR | ||||
Debt Instrument | ||||
Debt instrument, variable rate (percent) | 1.30% | |||
Maximum | Senior Unsecured Term Loan | Line of Credit | SOFR | ||||
Debt Instrument | ||||
Debt instrument, variable rate (percent) | 1.80% | |||
Secured Debt | Minimum | ||||
Debt Instrument | ||||
Stated interest rate (in percentage) | 2.40% | |||
Secured Debt | Maximum | ||||
Debt Instrument | ||||
Stated interest rate (in percentage) | 8.90% | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||
Unsecured line of credit | 212,000,000 | $ 198,000,000 | ||
Line of credit, remaining borrowing amount | 288,000,000 | |||
Line of Credit | Minimum | SOFR | ||||
Debt Instrument | ||||
Debt instrument, variable rate (percent) | 1.25% | |||
Line of Credit | Minimum | Revolving Credit Facility | ||||
Debt Instrument | ||||
Annual facility fee (in percentage) | 0.20% | |||
Line of Credit | Maximum | SOFR | ||||
Debt Instrument | ||||
Debt instrument, variable rate (percent) | 1.65% | |||
Line of Credit | Maximum | Revolving Credit Facility | ||||
Debt Instrument | ||||
Annual facility fee (in percentage) | 0.35% | |||
Unsecured Debt | Senior Unsecured Term Loan | ||||
Debt Instrument | ||||
Debt face amount | $ 300,000,000 | $ 300,000,000 | ||
Unsecured Debt | Minimum | Senior Unsecured Term Loan | SOFR | ||||
Debt Instrument | ||||
Debt instrument, variable rate (percent) | 1.40% | |||
Unsecured Debt | Maximum | Senior Unsecured Term Loan | 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 | 3 Months Ended | |
Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2021 | |
Derivative | |||
Reclassified as a decrease to interest expense | $ 14,000,000 | ||
Senior Unsecured Term Loan | Unsecured Debt | |||
Derivative | |||
Debt face amount | $ 300,000,000 | $ 300,000,000 | |
Subsequent Event | Senior Unsecured Term Loan | Unsecured Debt | |||
Derivative | |||
Debt face amount | $ 200,000,000 | ||
Interest Rate Swap | |||
Derivative | |||
Derivative, notional amount | $ 300,000,000 | ||
Derivative fixed interest rate ( in percentage) | 0.41% | ||
Derivative instrument, effective interest rate | 1.81% | ||
Interest Rate Swap | Subsequent Event | |||
Derivative | |||
Derivative, notional amount | $ 200,000,000 | ||
Derivative fixed interest rate ( in percentage) | 3.68% | ||
Derivative instrument, effective interest rate | 4.88% | ||
Interest Rate Swap | SOFR | |||
Derivative | |||
Basis spread on variable rate (in percentage) | 1.40% | ||
Interest Rate Swap | SOFR | Subsequent Event | |||
Derivative | |||
Basis spread on variable rate (in percentage) | 1.20% |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 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 Swap | ||
Derivative | ||
Derivative asset | $ 15,141 | $ 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 Swap - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative | ||
Amount of (gain)/loss recognized in OCI on derivative | $ 523 | $ (9,661) |
Cash Flow Hedging | Interest Expense | ||
Derivative | ||
Amount of (gain)/loss reclassified from accumulated OCI into income | $ (3,455) | $ 263 |
Equity Incentive Awards (Detail
Equity Incentive Awards (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to incentive plans | $ 2.5 | $ 2.6 |
Restricted Stock | 2014 Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (in shares) | 82,884 | |
Shares categorized as vesting (in percentage) | 50% | |
Vesting period (in years) | 3 years | |
Fair value of shares issued | $ 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) | 3 Months Ended |
Mar. 31, 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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||
Depreciation and amortization | $ (50,502) | $ (49,394) | |
Loss on sale of real estate and impairment, net | (2,632) | 0 | |
Reconciliation to consolidated net income: | |||
Income from other investments, net | 2,091 | 1,904 | |
General and administrative | (11,661) | (12,072) | |
Other expenses | (1,468) | (1,048) | |
Interest and related amortization | (32,588) | (27,464) | |
Equity in income of unconsolidated joint ventures | 524 | 171 | |
Early debt retirement | 0 | (516) | |
Consolidated net income | 86,459 | 87,050 | |
Total assets | 5,519,313 | 5,264,805 | $ 5,492,519 |
Capital improvements (1) | 60,974 | 60,958 | |
Property Operations | |||
Reconciliation to consolidated net income: | |||
Total assets | 5,239,891 | 5,012,335 | |
Capital improvements (1) | 51,412 | 54,990 | |
Home Sales and Rentals Operations | |||
Reconciliation to consolidated net income: | |||
Total assets | 279,422 | 252,470 | |
Capital improvements (1) | 9,562 | 5,968 | |
Operating Segments | |||
Segment Reporting Information | |||
Operations revenues | 365,773 | 356,526 | |
Operations expenses | (185,166) | (182,816) | |
Income from segment operations | 180,607 | 173,710 | |
Interest income | 2,080 | 1,757 | |
Depreciation and amortization | (50,502) | (49,394) | |
Loss on sale of real estate and impairment, net | (2,632) | ||
Income from operations | 129,553 | 126,073 | |
Operating Segments | Property Operations | |||
Segment Reporting Information | |||
Operations revenues | 341,737 | 325,426 | |
Operations expenses | (165,023) | (154,988) | |
Income from segment operations | 176,714 | 170,438 | |
Interest income | 1,566 | 1,377 | |
Depreciation and amortization | (47,755) | (46,877) | |
Loss on sale of real estate and impairment, net | (2,632) | ||
Income from operations | 127,893 | 124,938 | |
Operating Segments | Home Sales and Rentals Operations | |||
Segment Reporting Information | |||
Operations revenues | 24,036 | 31,100 | |
Operations expenses | (20,143) | (27,828) | |
Income from segment operations | 3,893 | 3,272 | |
Interest income | 514 | 380 | |
Depreciation and amortization | (2,747) | (2,517) | |
Loss on sale of real estate and impairment, net | 0 | ||
Income from operations | 1,660 | 1,135 | |
Segment Reconciling Items | |||
Reconciliation to consolidated net income: | |||
Corporate interest income | 8 | 2 | |
Income from other investments, net | 2,091 | 1,904 | |
General and administrative | (11,661) | (12,072) | |
Other expenses | (1,468) | (1,048) | |
Interest and related amortization | (32,588) | (27,464) | |
Equity in income of unconsolidated joint ventures | $ 524 | 171 | |
Early debt retirement | $ (516) |
Reportable Segments - Income fr
Reportable Segments - Income from Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Other income | $ 17,714 | $ 13,542 |
Total revenues | 369,952 | 360,189 |
Expenses: | ||
Real estate taxes | 18,316 | 19,457 |
Membership sales and marketing | 4,838 | 4,331 |
Total expenses | 281,385 | 273,310 |
Income before equity in income of unconsolidated joint ventures | 85,935 | 86,879 |
Annual membership subscriptions | ||
Revenues: | ||
Revenue from contract with customer | 15,970 | 15,157 |
Membership upgrade sales | ||
Revenues: | ||
Revenue from contract with customer | 3,505 | 3,067 |
Property management | ||
Expenses: | ||
Property management and cost of ancillary services | 19,464 | 17,871 |
Property Operations | ||
Revenues: | ||
Rental income | 292,579 | 281,104 |
Other income | 17,714 | 13,542 |
Total revenues | 341,737 | 325,426 |
Expenses: | ||
Operating and maintenance | 111,524 | 102,590 |
Real estate taxes | 18,316 | 19,457 |
Membership sales and marketing | 4,838 | 4,331 |
Ancillary operating expenses | 5,584 | 5,018 |
Total expenses | 165,023 | 154,988 |
Income before equity in income of unconsolidated joint ventures | 176,714 | 170,438 |
Property Operations | Annual membership subscriptions | ||
Revenues: | ||
Revenue from contract with customer | 15,970 | 15,157 |
Property Operations | Membership upgrade sales | ||
Revenues: | ||
Revenue from contract with customer | 3,505 | 3,067 |
Property Operations | Ancillary services | ||
Revenues: | ||
Revenue from contract with customer | 11,969 | 12,556 |
Expenses: | ||
Property management and cost of ancillary services | 5,297 | 5,721 |
Property Operations | Property management | ||
Expenses: | ||
Property management and cost of ancillary services | 19,464 | 17,871 |
Home Sales and Rentals Operations | ||
Revenues: | ||
Rental income | 3,872 | 3,961 |
Total revenues | 24,036 | 31,100 |
Expenses: | ||
Operating and maintenance | 959 | 1,402 |
Home selling expenses | 1,340 | 1,463 |
Total expenses | 20,143 | 27,828 |
Income before equity in income of unconsolidated joint ventures | 3,893 | 3,272 |
Home Sales and Rentals Operations | Home sales And brokered resales | ||
Revenues: | ||
Revenue from contract with customer | 20,164 | 27,139 |
Expenses: | ||
Property management and cost of ancillary services | $ 17,844 | $ 24,963 |