Other Assets

12 Months Ended

Dec. 31, 2022

Other Assets

Other Assets

8. Other Assets

Other assets consist of the following:

	December 31,		December 31,
	2022		2021
Investments - equity securities	$	—	$	450
Accounts receivable, net		9,035		13,813
Homesite sales receivable		10,086		7,651
Notes receivable, net		1,742		12,377
Inventory		3,976		2,797
Prepaid expenses		9,393		7,175
Straight-line rent		2,546		2,489
Operating lease right-of-use assets		678		732
Other assets		13,138		5,987
Retained interest investments		8,197		13,826
Accrued interest receivable for Senior Notes held by SPE		2,938		2,938
Total other assets	$	61,729	$	70,235

Investments – Equity Securities

As of December 31, 2022, the Company did not have any investments – equity securities. As of December 31, 2021, investments – equity securities included $0.5 million of preferred stock investments recorded at fair value. During the year ended December 31, 2021, the Company recognized unrealized loss of $0.9 million on investments related to equity securities still held as of December 31, 2021. During the year ended December 31, 2020, the Company recognized an unrealized loss of $4.6 million on investments related to equity securities still held as of December 31, 2020. These amounts were included within investment income, net on the consolidated statements of income.

Accounts Receivable, Net

Accounts receivable, net primarily includes leasing receivables, membership initiation fees, hospitality receivables and other receivables. As of December 31, 2022 and 2021, accounts receivable were presented net of allowance for credit losses of $0.3 million and $0.4 million, respectively. As of both December 31, 2022 and 2021, accounts receivable were presented net of allowance for lease related receivables of less than $0.1 million. During 2022, allowance for credit losses related to accounts receivable, net decreased $0.1 million.

Homesite Sales Receivable

Homesite sales receivable from contracts with customers include estimated homesite residuals and certain estimated fees that are recognized as revenue at the time of sale to homebuilders, subject to constraints. Any change in circumstances from the estimated amounts will be updated at each reporting period. The receivable will be collected as the homebuilders build the homes and sell to retail consumers, which can occur over multiple years. See Note 2. Summary of Significant Accounting Policies for additional information.

The following table presents the changes in homesite sales receivable:

	December 31, 2022		December 31, 2021
Balance at beginning of year	$	7,651	$	5,675
Increases due to revenue recognized for homesites sold		7,660		7,213
Decreases due to amounts received		(5,225)		(5,237)
Balance at end of year	$	10,086	$	7,651

Notes Receivable, Net

Notes receivable, net consist of the following:

	December 31,		December 31,
	2022		2021
Interest-bearing revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, secured by the JV's real property — bearing interest at a rate of 5.0%, matures June 2025	$	—	$	7,075
Various interest-bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, due May 2023		1,296		4,824
Interest-bearing notes with JV partner, secured by the partner's membership interest in the JV — bearing interest at a rate of 8.0%, due May 2039		359		359
Non-interest-bearing note with a tenant for tenant improvements, due October 2025		68		76
Mortgage note, secured by certain real estate, bearing interest at a rate of 4.8% due November 2023		19		43
Total notes receivable, net	$	1,742	$	12,377

In June 2020, the Company entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV. The Latitude JV Note was provided to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures for additional information.

The Company may allow homebuilders to pay for homesites during the home construction period in the form of homebuilder notes. The Company evaluates the carrying value of all notes and the need for an allowance for credit losses at each reporting date. As of both December 31, 2022 and 2021, notes receivable were presented net of allowance for credit losses of $0.1 million. As of both December 31, 2022 and 2021, accrued interest receivable related to notes receivable was $0.1 million, which is included within other assets on the consolidated balance sheets.

Other Assets

Other assets as of December 31, 2022 and 2021, include $7.3 million and $3.9 million, respectively, of escrow deposits primarily related to financing and development requirements for certain of the Company’s projects. Other assets as of December 31, 2022 and 2021, also include $4.6 million and $0.6 million, respectively, for the fair value of derivative assets. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

Retained Interest Investments

The Company has a beneficial interest in certain bankruptcy-remote qualified SPEs used in the installment sale monetization of certain sales of timberlands in 2008. The SPEs’ assets are not available to satisfy the Company’s liabilities or obligations and the liabilities of the SPEs are not the Company’s liabilities or obligations. Therefore, the SPEs’ assets and liabilities are not consolidated in the Company’s financial statements as of December 31, 2022 and 2021. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the remaining principal of approximately $10.2 million to be received at the end of the installment notes’ fifteen-year maturity period, in 2023 through 2024. During 2022, two installment notes matured and the Company received $6.9 million of remaining principal. The Company has beneficial or retained interest investments related to these SPEs of $8.2 million and $13.8 million as of December 31, 2022 and 2021, respectively, recorded in other assets on the Company’s consolidated balance sheets.