Other Assets

3 Months Ended

Mar. 31, 2023

Other Assets

Other Assets

8. Other Assets

Other assets consist of the following:

	March 31,		December 31,
	2023		2022
Accounts receivable, net	$	9,648	$	9,035
Homesite sales receivable		12,414		10,086
Notes receivable, net		810		1,742
Inventory		4,127		3,976
Prepaid expenses		8,830		9,393
Straight-line rent		2,544		2,546
Operating lease right-of-use assets		1,063		678
Other assets		11,487		13,138
Retained interest investments		5,802		8,197
Accrued interest receivable for Senior Notes held by SPE		935		2,938
Total other assets	$	57,660	$	61,729

Accounts Receivable, Net

The Company’s accounts receivable, net primarily includes leasing receivables, membership initiation fees, hospitality receivables and other receivables. At each reporting period, accounts receivable in the scope of Financial Instruments—Credit Losses (Topic 326) are pooled by type and judgements are made based on historical losses and expected credit losses based on economic trends to determine the allowance for credit losses primarily using the aging method. Actual losses could differ from those estimates. Write-offs are recorded when the Company concludes that all or a portion of the receivable is no longer collectible and recoveries on receivables previously charged-off are credited to the allowance. As of both March 31, 2023 and December 31, 2022, accounts receivable were presented net of allowance for credit losses of $0.3 million. As of both March 31, 2023 and December 31, 2022, there was no allowance for lease related receivables. During the three months ended March 31, 2023, allowance for credit losses related to accounts receivable, net increased less than $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.

The following table presents the changes in homesite sales receivable:

	March 31, 2023		March 31, 2022
Balance at beginning of period	$	10,086	$	7,651
Increases due to revenue recognized for homesites sold		4,234		2,375
Decreases due to amounts received		(1,906)		(1,191)
Balance at end of period	$	12,414	$	8,835

Notes Receivable, Net

Notes receivable, net consists of the following:

	March 31,		December 31,
	2023		2022
Various interest-bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, due May 2023	$	374	$	1,296
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		63		68
Mortgage note, secured by certain real estate, bearing interest at a rate of 5.0% due November 2023		14		19
Total notes receivable, net	$	810	$	1,742

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 receivable and the need for an allowance for credit losses at each reporting period. As of both March 31, 2023 and December 31, 2022, notes receivable were presented net of allowance for credit losses of $0.1 million. As of both March 31, 2023 and December 31, 2022, accrued interest receivable related to notes receivable was $0.1 million, which is included within other assets on the condensed consolidated balance sheets.

Other Assets

Other assets as of March 31, 2023 and December 31, 2022, include $6.7 million and $7.3 million, respectively, of escrow deposits primarily related to financing and development requirements for certain of the Company’s projects. Other assets as of March 31, 2023 and December 31, 2022, also include $3.7 million and $4.6 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 condensed consolidated financial statements as of March 31, 2023 and December 31, 2022. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the estimated remaining principal of $6.6 million to be received at the end of the installment notes’ fifteen-year maturity period in 2024. During the three months ended March 31, 2023, an installment note matured and the Company received $2.7 million of remaining principal. The Company had a beneficial or retained interest investment related to these SPEs of $5.8 million and $8.2 million as of March 31, 2023 and December 31, 2022, respectively, recorded in other assets on the Company’s condensed consolidated balance sheets.