Other Assets

9 Months Ended

Sep. 30, 2023

Other Assets

Other Assets

8. Other Assets

Other assets consist of the following:

	September 30,		December 31,
	2023		2022
Accounts receivable, net	$	19,842	$	9,035
Homesite sales receivable		27,900		10,086
Notes receivable, net		422		1,742
Inventory		4,517		3,976
Prepaid expenses		13,488		9,393
Straight-line rent		2,562		2,546
Operating lease right-of-use assets		1,009		678
Other assets		16,352		13,138
Retained interest investments		—		8,197
Accrued interest receivable for Senior Notes held by SPE		935		2,938
Total other assets	$	87,027	$	61,729

Accounts Receivable, Net

The Company’s accounts receivable, net primarily includes leasing receivables, membership 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. Accounts receivable as of September 30, 2023 and December 31, 2022, include $9.7 million and $1.8 million, respectively, of club membership initiation fee installments receivable. As of September 30, 2023 and December 31, 2022, accounts receivable were presented net of allowance for credit losses of $0.4 million and $0.3 million, respectively. As of both September 30, 2023 and December 31, 2022, there was no allowance for lease related receivables. During the nine months ended September 30, 2023, allowance for credit losses related to accounts receivable, net increased $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:

	September 30, 2023		September 30, 2022
Balance at beginning of period	$	10,086	$	7,651
Increases due to revenue recognized for homesites sold		24,377		4,678
Decreases due to amounts received		(6,563)		(3,240)
Balance at end of period	$	27,900	$	9,089

Notes Receivable, Net

Notes receivable, net consists of the following:

	September 30,		December 31,
	2023		2022
Various interest-bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, paid in full May 2023	$	—	$	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		59		68
Mortgage note, secured by certain real estate, bearing interest at a rate of 6.6% due November 2023		4		19
Total notes receivable, net	$	422	$	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 September 30, 2023 and December 31, 2022, notes receivable were presented net of allowance for credit losses of less than $0.1 million. As of both September 30, 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.

Prepaid Expenses

Prepaid expenses as of September 30, 2023 and December 31, 2022, include $6.4 million and $2.8 million, respectively, related to prepaid insurance.

Other Assets

Other assets as of September 30, 2023 and December 31, 2022, include $11.0 million and $7.6 million, respectively, of restricted cash and escrow deposits primarily related to requirements for financing and development, or advance draws on construction loans for certain of the Company’s projects. Other assets as of September 30, 2023 and December 31, 2022, also include $4.5 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 had a beneficial interest in a bankruptcy-remote qualified SPE used in the installment sale monetization of certain sales of timberlands in 2008. During the nine months ended September 30, 2023, the installment notes were prepaid, in full, and the Company received $10.6 million of remaining principal. As of December 31, 2022, the Company had a beneficial or retained interest investment related to the SPEs of $8.2 million recorded in other assets on the Company’s condensed consolidated balance sheets.