Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.01 Par Value | |
Trading Symbol | ELS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 186,495,861 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000895417 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investment in real estate: | ||
Land | $ 2,088,657 | $ 2,088,657 |
Land improvements | 4,435,288 | 4,380,649 |
Buildings and other depreciable property | 1,229,374 | 1,236,985 |
Investment in real estate | 7,753,319 | 7,706,291 |
Accumulated depreciation | (2,497,039) | (2,448,876) |
Net investment in real estate | 5,256,280 | 5,257,415 |
Cash and restricted cash | 47,281 | 29,937 |
Notes receivable, net | 49,346 | 49,937 |
Investment in unconsolidated joint ventures | 84,989 | 85,304 |
Deferred commission expense | 54,024 | 53,641 |
Other assets, net | 138,314 | 137,499 |
Total Assets | 5,630,234 | 5,613,733 |
Liabilities: | ||
Mortgage notes payable, net | 2,974,728 | 2,989,959 |
Term loans, net | 497,875 | 497,648 |
Unsecured line of credit | 6,000 | 31,000 |
Accounts payable and other liabilities | 171,061 | 151,567 |
Deferred membership revenue | 223,470 | 218,337 |
Accrued interest payable | 12,543 | 12,657 |
Rents and other customer payments received in advance and security deposits | 131,547 | 126,451 |
Distributions payable | 93,264 | 87,493 |
Total Liabilities | 4,110,488 | 4,115,112 |
Stockholders' Equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2024 and December 31, 2023; none issued and outstanding. | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 186,493,598 and 186,426,281 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively. | 1,917 | 1,917 |
Paid-in capital | 1,644,410 | 1,644,319 |
Distributions in excess of accumulated earnings | (202,721) | (223,576) |
Accumulated other comprehensive income | 5,280 | 6,061 |
Total Stockholders’ Equity | 1,448,886 | 1,428,721 |
Non-controlling interests – Common OP Units | 70,860 | 69,900 |
Total Equity | 1,519,746 | 1,498,621 |
Total Liabilities and Equity | $ 5,630,234 | $ 5,613,733 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 186,493,598 | 186,426,281 |
Common stock, shares outstanding (in shares) | 186,493,598 | 186,426,281 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Rental income | $ 316,599 | $ 296,451 |
Other income | 15,548 | 17,714 |
Interest income | 2,168 | 2,088 |
Income from other investments, net | 2,038 | 2,091 |
Total revenues | 386,568 | 369,952 |
Expenses: | ||
Property operating and maintenance | 114,783 | 112,483 |
Real estate taxes | 20,787 | 18,316 |
Membership sales and marketing | 5,297 | 4,838 |
Depreciation and amortization | 51,108 | 50,502 |
Home selling expenses and ancillary operating expenses | 6,147 | 6,924 |
General and administrative | 11,989 | 11,661 |
Casualty-related charges/(recoveries), net | (14,843) | 0 |
Other expenses | 1,331 | 1,468 |
Interest and related amortization | 33,543 | 32,588 |
Total expenses | 271,819 | 281,385 |
Income before income taxes and other items | 114,749 | 88,567 |
Loss on sale of real estate and impairment, net | 0 | (2,632) |
Income tax benefit | 239 | 0 |
Equity in income of unconsolidated joint ventures | 283 | 524 |
Consolidated net income | 115,271 | 86,459 |
Income allocated to non-controlling interests – Common OP Units | (5,366) | (4,088) |
Net income available for Common Stockholders | 109,905 | 82,371 |
Other comprehensive income (loss): | ||
Adjustment for fair market value of swap | (781) | (3,978) |
Consolidated comprehensive income | 114,490 | 82,481 |
Comprehensive income allocated to non-controlling interests – Common OP Units | (5,329) | (3,899) |
Comprehensive income attributable to Common Stockholders | $ 109,161 | $ 78,582 |
Earnings per Common Share – Basic (in usd per share) | $ 0.59 | $ 0.44 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.59 | $ 0.44 |
Weighted average common shares outstanding – basic (in shares) | 186,287 | 185,900 |
Weighted average common shares outstanding – fully diluted (in shares) | 195,545 | 195,369 |
Annual membership subscriptions | ||
Revenues: | ||
Contract revenue | $ 16,215 | $ 15,970 |
Membership upgrade sales | ||
Revenues: | ||
Contract revenue | 3,947 | 3,505 |
Home sales, brokered resales and ancillary services | ||
Revenues: | ||
Contract revenue | 30,053 | 32,133 |
Expenses: | ||
Cost of services | 21,967 | 23,141 |
Property management | ||
Expenses: | ||
Cost of services | $ 19,710 | $ 19,464 |
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, 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 |
Beginning balance at Dec. 31, 2023 | 1,498,621 | 1,917 | 1,644,319 | (223,576) | 6,061 | 69,900 |
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of Common Stock through employee stock purchase plan | 382 | 382 | ||||
Compensation expenses related to restricted stock and stock options | 1,716 | 1,716 | ||||
Repurchase of Common Stock or Common OP Units | (1,908) | (1,908) | ||||
Adjustment for Common OP Unitholders in the Operating Partnership | 0 | 58 | (58) | |||
Adjustment for fair market value of swap | (781) | (781) | ||||
Consolidated net income | 115,271 | 109,905 | 5,366 | |||
Distributions | (93,398) | (89,050) | (4,348) | |||
Other | (157) | (157) | ||||
Ending balance at Mar. 31, 2024 | $ 1,519,746 | $ 1,917 | $ 1,644,410 | $ (202,721) | $ 5,280 | $ 70,860 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities: | ||
Consolidated net income | $ 115,271 | $ 86,459 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Loss on sale of real estate and impairment, net | 0 | 2,632 |
Depreciation and amortization | 52,427 | 51,860 |
Amortization of loan costs | 1,286 | 1,208 |
Debt premium amortization | 0 | (32) |
Equity in income of unconsolidated joint ventures | (283) | (524) |
Distributions of income from unconsolidated joint ventures | 224 | 174 |
Proceeds from insurance claims, net | (12,349) | 5,795 |
Compensation expense related to incentive plans | 2,497 | 3,330 |
Revenue recognized from membership upgrade sales upfront payments | (3,947) | (3,505) |
Commission expense recognized related to membership sales | 1,108 | 1,095 |
Deferred income tax benefit | (239) | 0 |
Changes in assets and liabilities: | ||
Manufactured homes, net | 2,333 | (19,574) |
Notes receivable, net | 539 | (1,345) |
Deferred commission expense | (1,491) | (1,744) |
Other assets, net | 11,396 | 5,856 |
Accounts payable and other liabilities | 15,801 | 9,553 |
Deferred membership revenue | 9,080 | 10,074 |
Rents and other customer payments received in advance and security deposits | 5,095 | 7,668 |
Net cash provided by operating activities | 198,748 | 158,980 |
Cash Flows From Investing Activities: | ||
Real estate acquisitions, net | 0 | (8,803) |
Investment in unconsolidated joint ventures | (1,330) | (1,752) |
Distributions of capital from unconsolidated joint ventures | 1,586 | 1,012 |
Proceeds from insurance claims, net | 3,158 | 4,070 |
Capital improvements | (54,706) | (60,974) |
Net cash used in investing activities | (51,292) | (66,447) |
Cash Flows From Financing Activities: | ||
Proceeds from stock options and employee stock purchase plan | 382 | 363 |
Distributions: | ||
Common Stockholders | (83,426) | (76,309) |
Common OP Unitholders | (4,074) | (3,799) |
Share based award tax withholding payments | (1,908) | (1,932) |
Principal payments and mortgage debt repayment | (15,929) | (16,443) |
Line of credit repayment | (158,000) | (104,000) |
Line of credit proceeds | 133,000 | 118,000 |
Other | (157) | (99) |
Net cash used in financing activities | (130,112) | (84,219) |
Net increase in cash and restricted cash | 17,344 | 8,314 |
Cash and restricted cash, beginning of period | 29,937 | 22,347 |
Cash and restricted cash, end of period | 47,281 | 30,661 |
Supplemental Information: | ||
Cash paid for interest, net | 33,630 | 31,630 |
Cash paid for the purchase of manufactured homes | 12,927 | 35,481 |
Real estate acquisitions: | ||
Investment in real estate | 0 | (9,535) |
Other assets, net | 0 | 14 |
Rents and other customer payments received in advance and security deposits | 0 | 718 |
Real estate acquisitions, net | $ 0 | $ (8,803) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024. 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, 2023. 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, 2024 | |
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 March 31, 2024 and December 31, 2023, restricted cash consisted of $32.2 million and $25.7 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, 2024, we recognized approximately $0.5 million of expense related to debris removal and cleanup related to Hurricane Ian, and we recorded an offsetting insurance recovery revenue accrual of $0.5 million to offset the expenses incurred during the quarter. We also recorded $14.8 million of insurance recovery revenue for reimbursement of capital expenditures related to Hurricane Ian. The debris and cleanup costs and offsetting recovery accrual and reimbursement of capital expenditures are reflected in Casualty-related charges/(recoveries), net on the Consolidated Statements of Income and Comprehensive Income. (d) New Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280) : I mprovements to Reportable Segment Disclosures (“ASU 2023-07”), which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) adopted final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors , that requires registrants to provide climate-related disclosures in their annual reports and registration statements. On April 4, 2024, the SEC voluntarily stayed implementation of the final rule pending the completion of judicial review. We are currently evaluating the impact of the rule on our disclosures. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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 other factors. 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, 2024 2024 $ 79,784 2025 103,593 2026 26,912 2027 25,354 2028 23,690 Thereafter 50,860 Total $ 310,193 Lessee We lease land under non-cancelable operating leases at 10 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 2033. For the quarters ended March 31, 2024 and 2023, total operating lease payments were $1.6 million and $1.5 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, 2024: As of March 31, 2024 (amounts in thousands) Ground Leases Office and Other Leases Total 2024 $ 550 $ 3,202 $ 3,752 2025 680 3,757 4,437 2026 684 3,393 4,077 2027 689 3,130 3,819 2028 685 2,955 3,640 Thereafter 3,840 10,744 14,584 Total undiscounted rental payments 7,128 27,181 34,309 Less imputed interest (1,774) (4,524) (6,298) Total lease liabilities $ 5,354 $ 22,657 $ 28,011 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 other factors. 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, 2024 2024 $ 79,784 2025 103,593 2026 26,912 2027 25,354 2028 23,690 Thereafter 50,860 Total $ 310,193 Lessee We lease land under non-cancelable operating leases at 10 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 2033. For the quarters ended March 31, 2024 and 2023, total operating lease payments were $1.6 million and $1.5 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, 2024: As of March 31, 2024 (amounts in thousands) Ground Leases Office and Other Leases Total 2024 $ 550 $ 3,202 $ 3,752 2025 680 3,757 4,437 2026 684 3,393 4,077 2027 689 3,130 3,819 2028 685 2,955 3,640 Thereafter 3,840 10,744 14,584 Total undiscounted rental payments 7,128 27,181 34,309 Less imputed interest (1,774) (4,524) (6,298) Total lease liabilities $ 5,354 $ 22,657 $ 28,011 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, 2024 | |
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, 2024 and 2023: Quarters Ended March 31, (amounts in thousands, except per share data) 2024 2023 Numerators: Net income available for Common Stockholders – Basic $ 109,905 $ 82,371 Amounts allocated to non controlling interest (dilutive securities) 5,366 4,088 Net income available for Common Stockholders – Fully Diluted $ 115,271 $ 86,459 Denominators: Weighted average Common Shares outstanding – Basic 186,287 185,900 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,105 9,262 Stock options and restricted stock 153 207 Weighted average Common Shares outstanding – Fully Diluted 195,545 195,369 Earnings per Common Share – Basic $ 0.59 $ 0.44 Earnings per Common Share – Fully Diluted $ 0.59 $ 0.44 |
Common Stock and Other Equity R
Common Stock and Other Equity Related Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Common Stock and Other Equity Related Transactions | 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, 2023: Distribution Amount Per Share For the Quarter Ended Stockholder Record Date Payment Date $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 $0.4475 December 31, 2023 December 29, 2023 January 12, 2024 $0.4775 March 31, 2024 March 28, 2024 April 12, 2024 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. There were no OP units exchanged for Common Stock during the quarter ended March 31, 2024 and 25,496 OP Units exchanged for an equal number of shares of Common Stock during the quarter ended March 31, 2023. Equity Offering Program On February 28, 2024, we entered into a new at-the-market (“ATM”) equity offering program, 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, 2024, the full capacity of our ATM equity offering program remained available for issuance. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures The following table summarizes our investments in unconsolidated joint ventures (investment and income/(loss) amounts in thousands): Investment as of Income/(Loss) for the Quarters Ended Investment Location (a) Number of Sites Economic (b) March 31, 2024 December 31, 2023 March 31, 2024 March 31, 2023 Meadows Various (2,2) 1,077 50 % $ 611 $ 534 $ 676 $ 374 Lakeshore Florida (3,3) 721 (c) 3,395 3,387 182 172 Voyager Arizona (1,1) — — % (d) — — — 692 ECHO JV Various — 50 % 2,786 2,773 13 (190) RVC Various 1,283 80 % (e) 62,401 62,441 (414) (353) Mulberry Farms Arizona 200 50 % 10,255 10,546 (291) (31) Hiawassee KOA JV Georgia 283 50 % 5,541 5,623 117 (140) 3,564 $ 84,989 $ 85,304 $ 283 $ 524 _____________________ (a) The number of Properties are shown parenthetically for the quarters ended March 31, 2024 and 2023, respectively. (b) The percentages shown approximate our economic interest as of March 31, 2024. Our legal ownership interest may differ. (c) 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. (d) In March 2023, we sold our 33% interest in the utility plant servicing Voyager RV Resort. (e) 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 $1.8 million and $1.2 million in distributions from our unconsolidated joint ventures for the quarters ended March 31, 2024 and 2023, respectively. Approximately $0.6 million and $0.3 million of the distributions made to us exceeded our basis in our unconsolidated joint ventures for the quarters ended March 31, 2024 and 2023, respectively, and as such, were recorded as income from unconsolidated joint ventures. |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 As of December 31, 2023 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,412,142 $ 3,001,219 $ 2,425,384 $ 3,017,149 The weighted average interest rate on our outstanding mortgage indebtedness, including the impact of loan cost amortization on mortgage indebtedness, as of March 31, 2024, was approximately 3.9% 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 of our Properties as of both March 31, 2024 and December 31, 2023, and the gross carrying value of such Properties was approximately $3,208.4 million and $3,194.1 million, as of March 31, 2024 and December 31, 2023, 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 line of credit (“LOC”) and a $300.0 million senior unsecured term loan (the “$300 million Term Loan”). We have the option to increase the borrowing capacity of the LOC by $200.0 million, subject to certain conditions. The LOC bears interest at a rate of SOFR plus 0.10% plus 1.25% to 1.65% and requires an annual facility fee of 0.20% to 0.35% and matures on April 18, 2025. The $300 million Term Loan has an interest rate of SOFR plus 0.10% 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. During the year ended December 31, 2022, we entered into a $200.0 million senior unsecured term loan agreement (the “200.0 million Term Loan”). The maturity date is January 21, 2027, with an interest rate of SOFR plus 0.10% plus 1.20% to 1.70%, depending on leverage levels. The LOC had a balance of $6.0 million and $31.0 million outstanding as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, our LOC had a remaining borrowing capacity of $493.9 million. As of March 31, 2024, we were in compliance in all material respects with the covenants in all our borrowing arrangements. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 3 Months Ended |
Mar. 31, 2024 | |
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 7. Borrowing Arrangements ). The 2021 Swap had a fixed interest rate of 0.41% per annum. The 2021 Swap matured on March 25, 2024. 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, 2024, our spread over SOFR was 1.20% resulting in an estimated all-in interest rate of 4.88% per annum. In April 2024, we entered into new swap agreements. See Note 13. Subsequent Events for additional information. Our derivative financial instruments are classified as Level 2 in the fair value hierarchy. The following table presents the fair value of our derivative financial instruments: As of March 31, As of December 31, (amounts in thousands) Balance Sheet Location 2024 2023 Interest Rate Swaps Other assets, net $ 5,280 $ 6,061 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) 2024 2023 (amounts in thousands) 2024 2023 Interest Rate Swaps $ (4,057) $ 523 Interest Expense $ (4,838) $ (3,455) During the next twelve months, we estimate that $2.6 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 March 31, 2024, we had not posted any collateral related to the 2023 Swap. |
Deferred Revenue from Membershi
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense | 3 Months Ended |
Mar. 31, 2024 | |
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) Quarter Ended March 31, 2024 Quarter Ended March 31, 2023 Deferred revenue - upfront payments from membership upgrade sales, beginning $ 206,625 $ 185,660 Membership upgrade sales 7,543 7,975 Revenue recognized from membership upgrade sales upfront payments (3,947) (3,505) Net increase in deferred revenue - upfront payments from membership grade sales 3,596 4,470 Deferred revenue - upfront payments from membership upgrade sales, ending (a) $ 210,221 $ 190,130 Deferred commission expense, beginning $ 53,641 $ 50,441 Deferred commission expense 1,491 1,744 Commission expense recognized (1,108) (1,095) Net increase in deferred commission expense 383 649 Deferred commission expense, ending $ 54,024 $ 51,090 _____________________ (a) Included in Deferred membership revenue on the Consolidated Balance Sheets. |
Equity Incentive Awards
Equity Incentive Awards | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, 90,378 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 February 4, 2025, February 3, 2026 and February 7, 2027, respectively, and have a grant date fair value of $3.0 million. The remaining 50% are performance-based awards vesting in equal installments on February 4, 2025, February 3, 2026 and February 7, 2027, 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 15,062 shares of restricted stock subject to 2024 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 $1.7 million and $2.5 million for the quarters ended March 31, 2024 and 2023, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 in the U.S. District Court for the Northern District of Illinois, Eastern Division, 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. On December 15, 2023, the plaintiffs filed an amended consolidated complaint captioned , In re Manufactured Home Lot Rents Antitrust Litigation, No. 1:23-cv-6715 . Plaintiffs seek both injunctive relief and monetary damages, including attorneys’ fees. The defendants filed a motion to dismiss on January 29, 2024. We believe that the Datacomp Litigation is without merit, and we intend to vigorously defend our interests in this matter. As of March 31, 2024, 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 ended March 31, 2024 or 2023. The following tables summarize our segment financial information for the quarters ended March 31, 2024 and 2023: Quarter Ended March 31, 2024 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 359,736 $ 22,626 $ 382,362 Operations expenses (169,405) (19,286) (188,691) Income from segment operations 190,331 3,340 193,671 Interest income 1,686 443 2,129 Depreciation and amortization (48,540) (2,568) (51,108) Income from operations $ 143,477 $ 1,215 $ 144,692 Reconciliation to consolidated net income: Corporate interest income 39 Income from other investments, net 2,038 General and administrative (11,989) Casualty-related charges/(recoveries), net 14,843 Other expenses (1,331) Interest and related amortization (33,543) Income tax benefit 239 Equity in income of unconsolidated joint ventures 283 Consolidated net income $ 115,271 Total assets $ 5,366,765 $ 263,469 $ 5,630,234 Capital improvements $ 51,408 $ 3,298 $ 54,706 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 $ 51,412 $ 9,562 $ 60,974 The following table summarizes our financial information for the Property Operations segment for the quarters ended March 31, 2024 and 2023: Quarters Ended March 31, (amounts in thousands) 2024 2023 Revenues: Rental income $ 313,083 $ 292,579 Annual membership subscriptions 16,215 15,970 Membership upgrade sales 3,947 3,505 Other income 15,548 17,714 Gross revenues from ancillary services 10,943 11,969 Total property operations revenues 359,736 341,737 Expenses: Property operating and maintenance 113,405 111,524 Real estate taxes 20,787 18,316 Membership sales and marketing 5,297 4,838 Cost of ancillary services 5,493 5,297 Ancillary operating expenses 4,713 5,584 Property management 19,710 19,464 Total property operations expenses 169,405 165,023 Income from property operations segment $ 190,331 $ 176,714 The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters ended March 31, 2024 and 2023: Quarters Ended March 31, (amounts in thousands) 2024 2023 Revenues: Rental income (1) $ 3,516 $ 3,872 Gross revenue from home sales and brokered resales 19,110 20,164 Total revenues 22,626 24,036 Expenses: Rental home operating and maintenance 1,378 959 Cost of home sales and brokered resales 16,474 17,844 Home selling expenses 1,434 1,340 Total expenses 19,286 20,143 Income from home sales and rentals operations segment $ 3,340 $ 3,893 ______________________ (1) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 1, 2024, we entered into three Swap Agreements (“2024 Swaps”) with an aggregate notional value of $300.0 million allowing us to trade the variable interest rate associated with our $300.0 million Term Loan (see Note 7. Borrowing Arrangements ) for a fixed interest rate. The 2024 Swaps have a weighted average fixed interest rate of 4.65% per annum and mature on April 17, 2026. Based on the leverage as of March 31, 2024, our spread over SOFR was 1.40%, resulting in an estimated weighted average all-in fixed interest rate of 6.05% per annum. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Consolidated net income | $ 115,271 | $ 86,459 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024. 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 March 31, 2024 and December 31, 2023, restricted cash consisted of $32.2 million and $25.7 million, respectively, primarily related to cash reserved for customer deposits and escrows for insurance and real estate taxes. |
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. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280) : I mprovements to Reportable Segment Disclosures (“ASU 2023-07”), which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) adopted final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors , that requires registrants to provide climate-related disclosures in their annual reports and registration statements. On April 4, 2024, the SEC voluntarily stayed implementation of the final rule pending the completion of judicial review. We are currently evaluating the impact of the rule on our disclosures. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2024 $ 79,784 2025 103,593 2026 26,912 2027 25,354 2028 23,690 Thereafter 50,860 Total $ 310,193 |
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, 2024: As of March 31, 2024 (amounts in thousands) Ground Leases Office and Other Leases Total 2024 $ 550 $ 3,202 $ 3,752 2025 680 3,757 4,437 2026 684 3,393 4,077 2027 689 3,130 3,819 2028 685 2,955 3,640 Thereafter 3,840 10,744 14,584 Total undiscounted rental payments 7,128 27,181 34,309 Less imputed interest (1,774) (4,524) (6,298) Total lease liabilities $ 5,354 $ 22,657 $ 28,011 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted 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, 2024 and 2023: Quarters Ended March 31, (amounts in thousands, except per share data) 2024 2023 Numerators: Net income available for Common Stockholders – Basic $ 109,905 $ 82,371 Amounts allocated to non controlling interest (dilutive securities) 5,366 4,088 Net income available for Common Stockholders – Fully Diluted $ 115,271 $ 86,459 Denominators: Weighted average Common Shares outstanding – Basic 186,287 185,900 Effect of dilutive securities: Exchange of Common OP Units for Common Shares 9,105 9,262 Stock options and restricted stock 153 207 Weighted average Common Shares outstanding – Fully Diluted 195,545 195,369 Earnings per Common Share – Basic $ 0.59 $ 0.44 Earnings per Common Share – Fully Diluted $ 0.59 $ 0.44 |
Common Stock and Other Equity_2
Common Stock and Other Equity Related Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023: Distribution Amount Per Share For the Quarter Ended Stockholder Record Date Payment Date $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 $0.4475 December 31, 2023 December 29, 2023 January 12, 2024 $0.4775 March 31, 2024 March 28, 2024 April 12, 2024 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): Investment as of Income/(Loss) for the Quarters Ended Investment Location (a) Number of Sites Economic (b) March 31, 2024 December 31, 2023 March 31, 2024 March 31, 2023 Meadows Various (2,2) 1,077 50 % $ 611 $ 534 $ 676 $ 374 Lakeshore Florida (3,3) 721 (c) 3,395 3,387 182 172 Voyager Arizona (1,1) — — % (d) — — — 692 ECHO JV Various — 50 % 2,786 2,773 13 (190) RVC Various 1,283 80 % (e) 62,401 62,441 (414) (353) Mulberry Farms Arizona 200 50 % 10,255 10,546 (291) (31) Hiawassee KOA JV Georgia 283 50 % 5,541 5,623 117 (140) 3,564 $ 84,989 $ 85,304 $ 283 $ 524 _____________________ (a) The number of Properties are shown parenthetically for the quarters ended March 31, 2024 and 2023, respectively. (b) The percentages shown approximate our economic interest as of March 31, 2024. Our legal ownership interest may differ. (c) 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. (d) In March 2023, we sold our 33% interest in the utility plant servicing Voyager RV Resort. (e) 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, 2024 | |
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, 2024 As of December 31, 2023 (amounts in thousands) Fair Value Carrying Value Fair Value Carrying Value Mortgage notes payable, excluding deferred financing costs $ 2,412,142 $ 3,001,219 $ 2,425,384 $ 3,017,149 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 instruments: As of March 31, As of December 31, (amounts in thousands) Balance Sheet Location 2024 2023 Interest Rate Swaps Other assets, net $ 5,280 $ 6,061 |
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) 2024 2023 (amounts in thousands) 2024 2023 Interest Rate Swaps $ (4,057) $ 523 Interest Expense $ (4,838) $ (3,455) |
Deferred Revenue from Members_2
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) Quarter Ended March 31, 2024 Quarter Ended March 31, 2023 Deferred revenue - upfront payments from membership upgrade sales, beginning $ 206,625 $ 185,660 Membership upgrade sales 7,543 7,975 Revenue recognized from membership upgrade sales upfront payments (3,947) (3,505) Net increase in deferred revenue - upfront payments from membership grade sales 3,596 4,470 Deferred revenue - upfront payments from membership upgrade sales, ending (a) $ 210,221 $ 190,130 Deferred commission expense, beginning $ 53,641 $ 50,441 Deferred commission expense 1,491 1,744 Commission expense recognized (1,108) (1,095) Net increase in deferred commission expense 383 649 Deferred commission expense, ending $ 54,024 $ 51,090 _____________________ (a) Included in Deferred membership revenue on the Consolidated Balance Sheets. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information | The following tables summarize our segment financial information for the quarters ended March 31, 2024 and 2023: Quarter Ended March 31, 2024 (amounts in thousands) Property Home Sales Consolidated Operations revenues $ 359,736 $ 22,626 $ 382,362 Operations expenses (169,405) (19,286) (188,691) Income from segment operations 190,331 3,340 193,671 Interest income 1,686 443 2,129 Depreciation and amortization (48,540) (2,568) (51,108) Income from operations $ 143,477 $ 1,215 $ 144,692 Reconciliation to consolidated net income: Corporate interest income 39 Income from other investments, net 2,038 General and administrative (11,989) Casualty-related charges/(recoveries), net 14,843 Other expenses (1,331) Interest and related amortization (33,543) Income tax benefit 239 Equity in income of unconsolidated joint ventures 283 Consolidated net income $ 115,271 Total assets $ 5,366,765 $ 263,469 $ 5,630,234 Capital improvements $ 51,408 $ 3,298 $ 54,706 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 $ 51,412 $ 9,562 $ 60,974 |
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, 2024 and 2023: Quarters Ended March 31, (amounts in thousands) 2024 2023 Revenues: Rental income $ 313,083 $ 292,579 Annual membership subscriptions 16,215 15,970 Membership upgrade sales 3,947 3,505 Other income 15,548 17,714 Gross revenues from ancillary services 10,943 11,969 Total property operations revenues 359,736 341,737 Expenses: Property operating and maintenance 113,405 111,524 Real estate taxes 20,787 18,316 Membership sales and marketing 5,297 4,838 Cost of ancillary services 5,493 5,297 Ancillary operating expenses 4,713 5,584 Property management 19,710 19,464 Total property operations expenses 169,405 165,023 Income from property operations segment $ 190,331 $ 176,714 The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters ended March 31, 2024 and 2023: Quarters Ended March 31, (amounts in thousands) 2024 2023 Revenues: Rental income (1) $ 3,516 $ 3,872 Gross revenue from home sales and brokered resales 19,110 20,164 Total revenues 22,626 24,036 Expenses: Rental home operating and maintenance 1,378 959 Cost of home sales and brokered resales 16,474 17,844 Home selling expenses 1,434 1,340 Total expenses 19,286 20,143 Income from home sales and rentals operations segment $ 3,340 $ 3,893 ______________________ (1) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Mar. 31, 2024 |
Operating Partnership | |
Other Ownership Interests [Line Items] | |
Ownership interest (percent) | 95.30% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Estimated membership upgrade contract term | 20 years | |
Cash and cash equivalents, restricted cash | $ 32.2 | $ 25.7 |
Hurricane Ian | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Expenses related to removal and cleanup | 0.5 | |
Offsetting insurance recovery | 0.5 | |
Insurance recoveries | $ 14.8 | |
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 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rents Expected to be Received (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
2024 | $ 79,784 |
2025 | 103,593 |
2026 | 26,912 |
2027 | 25,354 |
2028 | 23,690 |
Thereafter | 50,860 |
Total | $ 310,193 |
Leases - Narratives (Details)
Leases - Narratives (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Leases [Abstract] | |||
Number of non-cancelable operating leases, lessee (leases) | property | 10 | ||
Operating lease payments | $ 1,600 | $ 1,500 | |
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 | $ 25,800 | $ 23,600 | |
Operating lease liability | $ 28,011 | $ 25,700 | |
Weighted average operating lease term | 8 years | 8 years | |
Operating lease weighted average interest rate (percent) | 4% | 3.90% |
Leases - Summary of Minimum Fut
Leases - Summary of Minimum Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2024 | $ 3,752 | |
2025 | 4,437 | |
2026 | 4,077 | |
2027 | 3,819 | |
2028 | 3,640 | |
Thereafter | 14,584 | |
Total undiscounted rental payments | 34,309 | |
Less imputed interest | (6,298) | |
Total lease liabilities | 28,011 | $ 25,700 |
Ground Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2024 | 550 | |
2025 | 680 | |
2026 | 684 | |
2027 | 689 | |
2028 | 685 | |
Thereafter | 3,840 | |
Total undiscounted rental payments | 7,128 | |
Less imputed interest | (1,774) | |
Total lease liabilities | 5,354 | |
Office and Other Leases | ||
Future Minimum Lease Payments Under Noncancelable Operating Leases [Line Items] | ||
2024 | 3,202 | |
2025 | 3,757 | |
2026 | 3,393 | |
2027 | 3,130 | |
2028 | 2,955 | |
Thereafter | 10,744 | |
Total undiscounted rental payments | 27,181 | |
Less imputed interest | (4,524) | |
Total lease liabilities | $ 22,657 |
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, 2024 | Mar. 31, 2023 | |
Numerators: | ||
Net income available for Common Stockholders – Basic | $ 109,905 | $ 82,371 |
Amounts allocated to non controlling interest (dilutive securities) | 5,366 | 4,088 |
Net income available for Common Stockholders – Fully Diluted | $ 115,271 | $ 86,459 |
Denominators: | ||
Weighted average Common Shares outstanding – Basic (in shares) | 186,287 | 185,900 |
Effect of dilutive securities: | ||
Exchange of Common OP Units for Common Shares (in shares) | 9,105 | 9,262 |
Stock options and restricted stock (in shares) | 153 | 207 |
Weighted average Common Shares outstanding – Fully Diluted (in shares) | 195,545 | 195,369 |
Earnings per Common Share – Basic (in usd per share) | $ 0.59 | $ 0.44 |
Earnings per Common Share – Fully Diluted (in usd per share) | $ 0.59 | $ 0.44 |
Common Stock and Other Equity_3
Common Stock and Other Equity Related Transactions - Distributions (Details) - $ / shares | Apr. 12, 2024 | Jan. 12, 2024 | Oct. 13, 2023 | Jul. 14, 2023 | Apr. 14, 2023 |
Class of Stock [Line Items] | |||||
Common stock, dividends paid (in usd per share) | $ 0.4475 | $ 0.4475 | $ 0.4475 | $ 0.4475 | |
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Common stock, dividends paid (in usd per share) | $ 0.4775 |
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, 2024 | Mar. 31, 2023 | Feb. 28, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||
OP units were exchanged for an equal number of shares of common stock (in shares) | 0 | 25,496 | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
ATM equity offering | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in usd per share) | $ 0.01 | |||
Aggregate offering price | $ 500 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures - Schedule of Investments (Details) $ in Thousands | 3 Months Ended | |||||||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 site | Mar. 31, 2024 | Mar. 31, 2024 joint_venture | Mar. 31, 2024 community | Dec. 31, 2023 USD ($) | Feb. 28, 2023 | |
Schedule of Equity Method Investments | ||||||||
Number of Sites | 3,564 | 2 | ||||||
Investment in unconsolidated joint ventures | $ 84,989 | $ 85,304 | ||||||
Equity in income of unconsolidated joint ventures | 283 | $ 524 | ||||||
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 | 611 | 534 | ||||||
Equity in income of unconsolidated joint ventures | 676 | 374 | ||||||
Various | ECHO JV | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of Sites | site | 0 | |||||||
Economic interest | 50% | |||||||
Investment in unconsolidated joint ventures | 2,786 | 2,773 | ||||||
Equity in income of unconsolidated joint ventures | 13 | (190) | ||||||
Various | RVC | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of Sites | site | 1,283 | |||||||
Economic interest | 80% | |||||||
Investment in unconsolidated joint ventures | 62,401 | 62,441 | ||||||
Equity in income of unconsolidated joint ventures | (414) | (353) | ||||||
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 | 3,395 | 3,387 | ||||||
Equity in income of unconsolidated joint ventures | 182 | 172 | ||||||
Arizona | Voyager | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of Sites | site | 0 | |||||||
Economic interest | 0% | |||||||
Investment in unconsolidated joint ventures | 0 | 0 | ||||||
Equity in income of unconsolidated joint ventures | 0 | 692 | ||||||
Arizona | Mulberry Farms | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of Sites | site | 200 | |||||||
Economic interest | 50% | |||||||
Investment in unconsolidated joint ventures | 10,255 | 10,546 | ||||||
Equity in income of unconsolidated joint ventures | (291) | (31) | ||||||
Georgia | Hiawassee KOA JV | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of Sites | site | 283 | |||||||
Economic interest | 50% | |||||||
Investment in unconsolidated joint ventures | 5,541 | $ 5,623 | ||||||
Equity in income of unconsolidated joint ventures | $ 117 | $ (140) |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Distributions from joint ventures, including those in excess of basis | $ 1.8 | $ 1.2 |
Distributions from joint ventures | $ 0.6 | $ 0.3 |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value of Mortgage Debt (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,412,142 | $ 2,425,384 |
Carrying Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 3,001,219 | $ 3,017,149 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narratives (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) property | Apr. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2021 USD ($) | |
Debt Instrument | ||||||
Investment in real estate | $ 5,256,280,000 | $ 5,257,415,000 | ||||
Unsecured line of credit | 6,000,000 | 31,000,000 | ||||
Asset Pledged as Collateral | ||||||
Debt Instrument | ||||||
Investment in real estate | $ 3,208,400,000 | 3,194,100,000 | ||||
Line of Credit | SOFR | ||||||
Debt Instrument | ||||||
Variable rate basis adjustment (percent) | 0.10% | |||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Option to increase borrowing capacity | 200,000,000 | |||||
Unsecured line of credit | $ 6,000,000 | 31,000,000 | ||||
Line of credit, remaining borrowing amount | $ 493,900,000 | |||||
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 (percent) | 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 (percent) | 0.35% | |||||
Secured Mortgage Notes Payable | ||||||
Debt Instrument | ||||||
Weighted average interest rate (percent) | 3.90% | |||||
Number of pledged properties | property | 120 | 120 | ||||
Secured Mortgage Notes Payable | Minimum | Secured Debt | ||||||
Debt Instrument | ||||||
Stated interest rate (percent) | 2.40% | |||||
Secured Mortgage Notes Payable | Maximum | Secured Debt | ||||||
Debt Instrument | ||||||
Stated interest rate (percent) | 5.10% | |||||
Senior Unsecured Term Loan | Unsecured Debt | ||||||
Debt Instrument | ||||||
Debt face amount | $ 300,000,000 | $ 200,000,000 | $ 200,000,000 | $ 300,000,000 | $ 300,000,000 | |
Senior Unsecured Term Loan | Unsecured Debt | SOFR | ||||||
Debt Instrument | ||||||
Variable rate basis adjustment (percent) | 0.10% | 0.10% | ||||
Senior Unsecured Term Loan | Minimum | Unsecured Debt | SOFR | ||||||
Debt Instrument | ||||||
Debt instrument, variable rate (percent) | 1.40% | 1.20% | ||||
Senior Unsecured Term Loan | Maximum | Unsecured Debt | SOFR | ||||||
Debt Instrument | ||||||
Debt instrument, variable rate (percent) | 1.95% | 1.70% |
Derivative Instruments and He_3
Derivative Instruments and Hedging - Narratives (Details) - USD ($) | 1 Months Ended | ||||
Apr. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2021 | |
Senior Unsecured Term Loan | Unsecured Debt | |||||
Derivative | |||||
Debt face amount | $ 200,000,000 | $ 300,000,000 | $ 300,000,000 | $ 200,000,000 | $ 300,000,000 |
Interest Rate Swaps | |||||
Derivative | |||||
Derivative, notional amount | $ 200,000,000 | $ 300,000,000 | |||
Derivative fixed interest rate (percent) | 3.68% | 0.41% | |||
Derivative instrument, effective interest rate (percent) | 4.88% | ||||
Interest Rate Swaps | Cash Flow Hedging | |||||
Derivative | |||||
Amounts expected to be reclassified from AOCI as a decrease to interest expense | $ 2,600,000 | ||||
Interest Rate Swaps | SOFR | |||||
Derivative | |||||
Basis spread on variable rate (percent) | 1.20% |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
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 | $ 5,280 | $ 6,061 |
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 | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative | ||
Amount of (gain)/loss recognized in OCI on derivative | $ (4,057) | $ 523 |
Cash Flow Hedging | Interest Expense | ||
Derivative | ||
Amount of (gain)/loss reclassified from accumulated OCI into income | $ (4,838) | $ (3,455) |
Deferred Revenue from Members_3
Deferred Revenue from Membership Upgrade Sales and Deferred Commission Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue - upfront payments from membership upgrade sales, beginning | $ 218,337 | |
Revenue recognized from membership upgrade sales upfront payments | (3,947) | $ (3,505) |
Net increase in deferred revenue - upfront payments from membership grade sales | 9,080 | 10,074 |
Deferred revenue - upfront payments from membership upgrade sales, ending (a) | 223,470 | |
Deferred Commissions Expense | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Deferred commission expense, beginning | 53,641 | 50,441 |
Deferred commission expense | 1,491 | 1,744 |
Commission expense recognized | (1,108) | (1,095) |
Net increase in deferred commission expense | 383 | 649 |
Deferred commission expense, ending | 54,024 | 51,090 |
Membership Subscription | ||
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue - upfront payments from membership upgrade sales, beginning | 206,625 | 185,660 |
Membership upgrade sales | 7,543 | 7,975 |
Revenue recognized from membership upgrade sales upfront payments | (3,947) | (3,505) |
Net increase in deferred revenue - upfront payments from membership grade sales | 3,596 | 4,470 |
Deferred revenue - upfront payments from membership upgrade sales, ending (a) | $ 210,221 | $ 190,130 |
Equity Incentive Awards (Detail
Equity Incentive Awards (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to incentive plans | $ 1.7 | $ 2.5 |
Restricted Stock | 2014 Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (in shares) | 90,378 | |
Shares categorized as vesting (percent) | 50% | |
Vesting period (in years) | 3 years | |
Fair value of shares issued | $ 3 | |
Shares categorized as performance based (percent) | 50% | |
Performance Shares | 2014 Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (in shares) | 15,062 | |
Fair value of shares issued | $ 1 |
Reportable Segments - Narrative
Reportable Segments - Narratives (Details) | 3 Months Ended |
Mar. 31, 2024 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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information | |||
Operations revenues | $ 386,568 | $ 369,952 | |
Depreciation and amortization | (51,108) | (50,502) | |
Income before income taxes and other items | 114,749 | 88,567 | |
Reconciliation to consolidated net income: | |||
Income from other investments, net | 15,548 | 17,714 | |
General and administrative | (11,989) | (11,661) | |
Casualty-related charges/(recoveries), net | 14,843 | 0 | |
Other expenses | (1,331) | (1,468) | |
Interest and related amortization | (33,543) | (32,588) | |
Income tax benefit | 239 | 0 | |
Equity in income of unconsolidated joint ventures | 283 | 524 | |
Consolidated net income | 115,271 | 86,459 | |
Total assets | 5,630,234 | 5,519,313 | $ 5,613,733 |
Capital improvements | 54,706 | 60,974 | |
Property Operations | |||
Reconciliation to consolidated net income: | |||
Total assets | 5,366,765 | 5,239,891 | |
Capital improvements | 51,408 | 51,412 | |
Home Sales and Rentals Operations | |||
Reconciliation to consolidated net income: | |||
Total assets | 263,469 | 279,422 | |
Capital improvements | 3,298 | 9,562 | |
Operating Segments | |||
Segment Reporting Information | |||
Operations revenues | 382,362 | 365,773 | |
Operations expenses | (188,691) | (185,166) | |
Income from segment operations | 193,671 | 180,607 | |
Interest income | 2,129 | 2,080 | |
Depreciation and amortization | (51,108) | (50,502) | |
Loss on sale of real estate and impairment, net | (2,632) | ||
Income before income taxes and other items | 144,692 | 129,553 | |
Operating Segments | Property Operations | |||
Segment Reporting Information | |||
Operations revenues | 359,736 | 341,737 | |
Operations expenses | (169,405) | (165,023) | |
Income from segment operations | 190,331 | 176,714 | |
Interest income | 1,686 | 1,566 | |
Depreciation and amortization | (48,540) | (47,755) | |
Loss on sale of real estate and impairment, net | (2,632) | ||
Income before income taxes and other items | 143,477 | 127,893 | |
Reconciliation to consolidated net income: | |||
Income from other investments, net | 15,548 | 17,714 | |
Operating Segments | Home Sales and Rentals Operations | |||
Segment Reporting Information | |||
Operations revenues | 22,626 | 24,036 | |
Operations expenses | (19,286) | (20,143) | |
Income from segment operations | 3,340 | 3,893 | |
Interest income | 443 | 514 | |
Depreciation and amortization | (2,568) | (2,747) | |
Loss on sale of real estate and impairment, net | 0 | ||
Income before income taxes and other items | 1,215 | 1,660 | |
Segment Reconciling Items | |||
Reconciliation to consolidated net income: | |||
Corporate interest income | 39 | 8 | |
Income from other investments, net | 2,038 | 2,091 | |
General and administrative | (11,989) | (11,661) | |
Casualty-related charges/(recoveries), net | 14,843 | ||
Other expenses | (1,331) | (1,468) | |
Interest and related amortization | (33,543) | (32,588) | |
Income tax benefit | 239 | ||
Equity in income of unconsolidated joint ventures | $ 283 | $ 524 |
Reportable Segments - Income fr
Reportable Segments - Income from Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Rental income | $ 316,599 | $ 296,451 |
Other income | 15,548 | 17,714 |
Total revenues | 386,568 | 369,952 |
Expenses: | ||
Real estate taxes | 20,787 | 18,316 |
Membership sales and marketing | 5,297 | 4,838 |
Property management | ||
Expenses: | ||
Cost of ancillary services | 19,710 | 19,464 |
Operating Segments | ||
Revenues: | ||
Total revenues | 382,362 | 365,773 |
Expenses: | ||
Total expenses | 188,691 | 185,166 |
Income from segment operations | 193,671 | 180,607 |
Operating Segments | Property Operations | ||
Revenues: | ||
Rental income | 313,083 | 292,579 |
Other income | 15,548 | 17,714 |
Total revenues | 359,736 | 341,737 |
Expenses: | ||
Property operating and maintenance | 113,405 | 111,524 |
Real estate taxes | 20,787 | 18,316 |
Membership sales and marketing | 5,297 | 4,838 |
Ancillary operating expenses | 4,713 | 5,584 |
Total expenses | 169,405 | 165,023 |
Income from segment operations | 190,331 | 176,714 |
Operating Segments | Property Operations | Annual membership subscriptions | ||
Revenues: | ||
Contract revenue | 16,215 | 15,970 |
Operating Segments | Property Operations | Membership upgrade sales | ||
Revenues: | ||
Contract revenue | 3,947 | 3,505 |
Operating Segments | Property Operations | Gross revenues from ancillary services | ||
Revenues: | ||
Contract revenue | 10,943 | 11,969 |
Expenses: | ||
Cost of ancillary services | 5,493 | 5,297 |
Operating Segments | Property Operations | Property management | ||
Expenses: | ||
Cost of ancillary services | 19,710 | 19,464 |
Operating Segments | Home Sales and Rentals Operations | ||
Revenues: | ||
Rental income | 3,516 | 3,872 |
Total revenues | 22,626 | 24,036 |
Expenses: | ||
Property operating and maintenance | 1,434 | 1,340 |
Home selling expenses | 16,474 | 17,844 |
Total expenses | 19,286 | 20,143 |
Income from segment operations | 3,340 | 3,893 |
Operating Segments | Home Sales and Rentals Operations | Home sales and brokered resales | ||
Revenues: | ||
Contract revenue | 19,110 | 20,164 |
Expenses: | ||
Cost of ancillary services | $ 1,378 | $ 959 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | |||||
Apr. 01, 2024 USD ($) swapAgreement | Apr. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Senior Unsecured Term Loan | Unsecured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Debt face amount | $ 200,000,000 | $ 300,000,000 | $ 300,000,000 | $ 200,000,000 | $ 300,000,000 | |
Interest Rate Swaps | ||||||
Subsequent Event [Line Items] | ||||||
Derivative, notional amount | $ 200,000,000 | $ 300,000,000 | ||||
Derivative instrument, effective interest rate (percent) | 4.88% | |||||
Interest Rate Swaps | SOFR | ||||||
Subsequent Event [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.20% | |||||
Subsequent Event | Senior Unsecured Term Loan | Unsecured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Debt face amount | $ 300,000,000 | |||||
Subsequent Event | Interest Rate Swaps | ||||||
Subsequent Event [Line Items] | ||||||
Number of interest rate swap agreements | swapAgreement | 3 | |||||
Derivative, notional amount | $ 300,000,000 | |||||
Weighted average interest rate (percent) | 4.65% | |||||
Derivative instrument, effective interest rate (percent) | 6.05% | |||||
Subsequent Event | Interest Rate Swaps | SOFR | ||||||
Subsequent Event [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.40% |