x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 36-3857664 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Two North Riverside Plaza, Suite 800, Chicago, Illinois | 60606 |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | o |
Emerging growth company | o |
Page | ||
Item 1. | Financial Statements (unaudited) | |
Index To Financial Statements | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
As of | As of | ||||||
March 31, 2019 | December 31, 2018 | ||||||
(unaudited) | |||||||
Assets | |||||||
Investment in real estate: | |||||||
Land | $ | 1,412,050 | $ | 1,408,832 | |||
Land improvements | 3,184,597 | 3,143,745 | |||||
Buildings and other depreciable property | 747,268 | 720,900 | |||||
5,343,915 | 5,273,477 | ||||||
Accumulated depreciation | (1,668,008 | ) | (1,631,888 | ) | |||
Net investment in real estate | 3,675,907 | 3,641,589 | |||||
Cash and restricted cash | 144,222 | 68,974 | |||||
Notes receivable, net | 34,811 | 35,041 | |||||
Investment in unconsolidated joint ventures | 58,465 | 57,755 | |||||
Deferred commission expense | 40,405 | 40,308 | |||||
Other assets, net | 55,067 | 46,227 | |||||
Assets held for sale, net | — | 35,914 | |||||
Total Assets | $ | 4,008,877 | $ | 3,925,808 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Mortgage notes payable, net | $ | 2,147,490 | $ | 2,149,726 | |||
Term loan, net | 198,706 | 198,626 | |||||
Accounts payable and other liabilities | 120,298 | 102,854 | |||||
Deferred revenue – upfront payments from right-to-use contracts | 118,134 | 116,363 | |||||
Deferred revenue – right-to-use annual payments | 13,046 | 10,055 | |||||
Accrued interest payable | 8,729 | 8,759 | |||||
Rents and other customer payments received in advance and security deposits | 86,519 | 81,114 | |||||
Distributions payable | 58,637 | 52,617 | |||||
Liabilities related to assets held for sale | — | 12,350 | |||||
Total Liabilities | 2,751,559 | 2,732,464 | |||||
Equity: | |||||||
Stockholders’ Equity: | |||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized as of March 31, 2019 and December 31, 2018; none issued and outstanding. | — | — | |||||
Common stock, $0.01 par value, 200,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 89,996,134 and 89,921,018 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively. | 896 | 896 | |||||
Paid-in capital | 1,332,410 | 1,329,391 | |||||
Distributions in excess of accumulated earnings | (152,848 | ) | (211,034 | ) | |||
Accumulated other comprehensive income | 1,368 | 2,299 | |||||
Total Stockholders’ Equity | 1,181,826 | 1,121,552 | |||||
Non-controlling interests – Common OP Units | 75,492 | 71,792 | |||||
Total Equity | 1,257,318 | 1,193,344 | |||||
Total Liabilities and Equity | $ | 4,008,877 | $ | 3,925,808 |
Quarters Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenues: | ||||||||
Rental income | $ | 223,566 | $ | 206,993 | ||||
Right-to-use annual payments | 12,316 | 11,519 | ||||||
Right-to-use contracts current period, gross | 3,838 | 3,162 | ||||||
Right-to-use contract upfront payments, deferred, net | (1,771 | ) | (1,285 | ) | ||||
Other income | 10,370 | 13,036 | ||||||
Gross revenues from home sales | 6,475 | 8,309 | ||||||
Brokered resale and ancillary services revenues, net | 1,559 | 1,401 | ||||||
Interest income | 1,751 | 1,950 | ||||||
Income from other investments, net | 986 | 940 | ||||||
Total revenues | 259,090 | 246,025 | ||||||
Expenses: | ||||||||
Property operating and maintenance | 77,948 | 76,332 | ||||||
Real estate taxes | 15,323 | 14,135 | ||||||
Sales and marketing, gross | 3,409 | 2,812 | ||||||
Right-to-use contract commissions, deferred, net | (191 | ) | (24 | ) | ||||
Property management | 13,685 | 13,681 | ||||||
Depreciation and amortization | 37,977 | 32,374 | ||||||
Cost of home sales | 6,632 | 8,574 | ||||||
Home selling expenses | 1,083 | 1,075 | ||||||
General and administrative | 9,909 | 8,038 | ||||||
Other expenses | 427 | 343 | ||||||
Interest and related amortization | 26,393 | 25,703 | ||||||
Total expenses | 192,595 | 183,043 | ||||||
Gain on sale of real estate, net | 52,507 | — | ||||||
Income before equity in income of unconsolidated joint ventures | 119,002 | 62,982 | ||||||
Equity in income of unconsolidated joint ventures | 1,533 | 1,195 | ||||||
Consolidated net income | 120,535 | 64,177 | ||||||
Income allocated to non-controlling interests – Common OP Units | (7,226 | ) | (3,955 | ) | ||||
Net income available for Common Stockholders | $ | 113,309 | $ | 60,222 | ||||
Consolidated net income | $ | 120,535 | $ | 64,177 | ||||
Other comprehensive income (loss): | ||||||||
Adjustment for fair market value of swap | (931 | ) | 1,873 | |||||
Consolidated comprehensive income | 119,604 | 66,050 | ||||||
Comprehensive income allocated to non-controlling interests – Common OP Units | (7,170 | ) | (4,070 | ) | ||||
Comprehensive income attributable to Common Stockholders | $ | 112,434 | $ | 61,980 | ||||
Earnings per Common Share – Basic | $ | 1.26 | $ | 0.68 | ||||
Earnings per Common Share – Fully Diluted | $ | 1.26 | $ | 0.68 | ||||
Weighted average Common Shares outstanding – Basic | 89,780 | 88,524 | ||||||
Weighted average Common Shares outstanding – Fully Diluted | 95,624 | 94,577 | ||||||
Common Stock | Paid-in Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests – Common OP Units | Total Equity | ||||||||||||||||||
Balance, December 31, 2018 | $ | 896 | $ | 1,329,391 | $ | (211,034 | ) | $ | 2,299 | $ | 71,792 | $ | 1,193,344 | ||||||||||
Exchange of Common OP Units for common stock | — | 66 | — | — | (66 | ) | — | ||||||||||||||||
Issuance of common stock through exercise of options | — | 53 | — | — | 53 | ||||||||||||||||||
Issuance of common stock through employee stock purchase plan | — | 652 | — | — | — | 652 | |||||||||||||||||
Compensation expenses related to restricted stock and stock options | — | 2,420 | — | — | — | 2,420 | |||||||||||||||||
Repurchase of common stock or Common OP Units | — | (53 | ) | — | — | (53 | ) | ||||||||||||||||
Adjustment for Common OP Unitholders in the Operating Partnership | — | (56 | ) | — | — | 56 | — | ||||||||||||||||
Adjustment for fair market value of swap | — | — | — | (931 | ) | — | (931 | ) | |||||||||||||||
Consolidated net income | — | — | 113,309 | — | 7,226 | 120,535 | |||||||||||||||||
Distributions | — | — | (55,123 | ) | — | (3,516 | ) | (58,639 | ) | ||||||||||||||
Other | — | (63 | ) | — | — | — | (63 | ) | |||||||||||||||
Balance, March 31, 2019 | $ | 896 | $ | 1,332,410 | $ | (152,848 | ) | $ | 1,368 | $ | 75,492 | $ | 1,257,318 |
Common Stock | Paid-in Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling interests – Common OP Units | Total Equity | ||||||||||||||||||
Balance, December 31, 2017 | $ | 883 | $ | 1,242,109 | $ | (211,980 | ) | $ | 942 | $ | 68,088 | $ | 1,100,042 | ||||||||||
Cumulative effect of change in accounting principle (ASC 606, Revenue Recognition) | — | — | (15,186 | ) | — | — | (15,186 | ) | |||||||||||||||
Balance, January 1, 2018 | 883 | 1,242,109 | (227,166 | ) | 942 | 68,088 | 1,084,856 | ||||||||||||||||
Exchange of Common OP Units for common stock | — | 80 | — | — | (80 | ) | — | ||||||||||||||||
Issuance of common stock through employee stock purchase plan | — | 503 | — | — | — | 503 | |||||||||||||||||
Compensation expenses related to restricted stock and stock options | — | 1,800 | — | — | — | 1,800 | |||||||||||||||||
Adjustment for Common OP Unitholders in the Operating Partnership | — | 782 | — | — | (782 | ) | — | ||||||||||||||||
Adjustment for fair market value of swap | — | — | — | 1,873 | — | 1,873 | |||||||||||||||||
Consolidated net income | — | — | 60,222 | — | 3,955 | 64,177 | |||||||||||||||||
Distributions | — | — | (48,805 | ) | — | (3,205 | ) | (52,010 | ) | ||||||||||||||
Other | — | (60 | ) | — | — | — | (60 | ) | |||||||||||||||
Balance, March 31, 2018 | $ | 883 | $ | 1,245,214 | $ | (215,749 | ) | $ | 2,815 | $ | 67,976 | $ | 1,101,139 |
Quarters Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash Flows From Operating Activities: | |||||||
Consolidated net income | $ | 120,535 | $ | 64,177 | |||
Adjustments to reconcile Consolidated net income to Net cash provided by operating activities: | |||||||
Gain on sale of real estate, net | (52,507 | ) | — | ||||
Depreciation and amortization | 38,404 | 32,717 | |||||
Amortization of loan costs | 887 | 871 | |||||
Debt premium amortization | (101 | ) | (357 | ) | |||
Equity in income of unconsolidated joint ventures | (1,533 | ) | (1,195 | ) | |||
Distributions of income from unconsolidated joint ventures | 677 | 490 | |||||
Proceeds from insurance claims, net | 4,150 | 3,031 | |||||
Compensation expense related to restricted stock and stock options | 2,420 | 1,800 | |||||
Revenue recognized from right-to-use contract upfront payments | (2,067 | ) | (1,877 | ) | |||
Commission expense recognized related to right-to-use contracts | 938 | 901 | |||||
Long-term incentive plan compensation | (3,987 | ) | 238 | ||||
Changes in assets and liabilities: | |||||||
Notes receivable activity, net | 122 | 639 | |||||
Deferred commission expense | (1,035 | ) | (812 | ) | |||
Other assets, net | (9,238 | ) | 8,977 | ||||
Accounts payable and other liabilities | 20,402 | 4,527 | |||||
Deferred revenue – upfront payments from right-to-use contracts | 3,838 | 3,162 | |||||
Deferred revenue – right-to-use annual payments | 2,991 | 3,179 | |||||
Rents and other customer payments received in advance and security deposits | 3,202 | 1,233 | |||||
Net cash provided by operating activities | 128,098 | 121,701 | |||||
Cash Flows From Investing Activities: | |||||||
Real estate acquisitions, net | (13,012 | ) | (29,929 | ) | |||
Proceeds from disposition of property, net | 77,746 | — | |||||
Investment in unconsolidated joint ventures | — | (3,791 | ) | ||||
Distributions of capital from unconsolidated joint ventures | 58 | — | |||||
Proceeds from insurance claims | 761 | 265 | |||||
Repayments of notes receivable | — | 13,823 | |||||
Capital improvements | (52,441 | ) | (31,316 | ) | |||
Net cash provided by (used in) investing activities | 13,112 | (50,948 | ) | ||||
Cash Flows From Financing Activities: | |||||||
Proceeds from stock options and employee stock purchase plan | 652 | 503 | |||||
Distributions: | |||||||
Common Stockholders | (49,457 | ) | (43,202 | ) | |||
Common OP Unitholders | (3,161 | ) | (2,844 | ) | |||
Principal payments and mortgage debt payoff | (13,683 | ) | (11,787 | ) | |||
New mortgage notes payable financing proceeds | — | 64,014 | |||||
Line of Credit payoff | — | (77,000 | ) | ||||
Line of Credit proceeds | — | 47,000 | |||||
Debt issuance and defeasance costs | (250 | ) | (1,645 | ) | |||
Other | (63 | ) | (57 | ) | |||
Net cash used in financing activities | (65,962 | ) | (25,018 | ) | |||
Net increase in Cash and restricted cash | 75,248 | 45,735 | |||||
Cash and restricted cash, beginning of period | 68,974 | 35,631 | |||||
Cash and restricted cash, end of period | $ | 144,222 | $ | 81,366 |
Quarters Ended March 31, | |||||||
2019 | 2018 | ||||||
Supplemental Information: | |||||||
Cash paid during the period for interest | $ | 25,729 | $ | 25,943 | |||
Building and other depreciable property – reclassification of rental homes | $ | 5,520 | $ | 9,385 | |||
Other assets, net – reclassification of rental homes | $ | (5,520 | ) | $ | (9,385 | ) | |
Real estate acquisitions: | |||||||
Investment in real estate | $ | (25,797 | ) | $ | (48,186 | ) | |
Debt assumed | 11,208 | 9,200 | |||||
Debt financed | — | 8,786 | |||||
Other liabilities | 1,577 | 271 | |||||
Real estate acquisitions, net | $ | (13,012 | ) | $ | (29,929 | ) | |
Real estate dispositions: | |||||||
Investment in real estate | $ | 35,572 | $ | — | |||
Notes receivable, net | 295 | — | |||||
Other assets, net | 97 | — | |||||
Mortgage notes payable, net | (11,175 | ) | — | ||||
Other liabilities | 450 | — | |||||
Gain on sale of real estate, net | 52,507 | ||||||
Real estate dispositions, net | $ | 77,746 | $ | — |
(amounts in thousands) | As of March 31, 2019 | |||
2019 | $ | 73,507 | ||
2020 | 97,380 | |||
2021 | 41,914 | |||
2022 | 20,021 | |||
2023 | 19,702 | |||
Thereafter | 84,616 | |||
Total | $ | 337,140 |
(amounts in thousands) | As of March 31, 2019 | As of December 31, 2018 | ||||||
2019 | $ | 3,925 | $ | 4,921 | ||||
2020 | 4,801 | 4,801 | ||||||
2021 | 4,179 | 4,179 | ||||||
2022 | 2,103 | 2,103 | ||||||
2023 | 953 | 953 | ||||||
Thereafter | 5,054 | 5,054 | ||||||
Total undiscounted rental payments | 21,015 | 22,011 | ||||||
Less imputed interest | 3,087 | 3,289 | ||||||
Total lease liabilities | $ | 17,928 | $ | 18,722 |
Quarters Ended March 31, | |||||||
(amounts in thousands, except per share data) | 2019 | 2018 | |||||
Numerator: | |||||||
Net income available to Common Stockholders – Basic | 113,309 | 60,222 | |||||
Amounts allocated to dilutive securities | 7,226 | 3,955 | |||||
Net income available to Common Stockholders – Fully Diluted | $ | 120,535 | $ | 64,177 | |||
Denominator: | |||||||
Weighted average Common Shares outstanding – Basic | 89,780 | 88,524 | |||||
Effect of dilutive securities: | |||||||
Exchange of Common OP Units for Common Shares | 5,741 | 5,828 | |||||
Restricted stock and stock options | 103 | 225 | |||||
Weighted average Common Shares outstanding – Fully Diluted | 95,624 | 94,577 | |||||
Earnings per Common Share – Basic | $ | 1.26 | $ | 0.68 | |||
Earnings per Common Share – Fully Diluted | $ | 1.26 | $ | 0.68 |
Distribution Amount Per Share | For the Quarter Ended | Stockholder Record Date | Payment Date | |||
$0.5500 | March 31, 2018 | March 30, 2018 | April 13, 2018 | |||
$0.5500 | June 30, 2018 | June 29, 2018 | July 13, 2018 | |||
$0.5500 | September 30, 2018 | September 28, 2018 | October 12, 2018 | |||
$0.5500 | December 31, 2018 | December 28, 2018 | January 11, 2019 | |||
$0.6125 | March 31, 2019 | March 29, 2019 | April 12, 2019 |
Investment as of | Income/(Loss) for Quarters Ended | |||||||||||||||||||||||
Investment | Location | Number of Sites (a) | Economic Interest (b) | March 31, 2019 | December 31, 2018 | March 31, 2019 | March 31, 2018 | |||||||||||||||||
Meadows | Various (2,2) | 1,077 | 50% | $ | 443 | $ | 346 | $ | 397 | $ | 418 | |||||||||||||
Lakeshore | Florida (3,3) | 720 | (c) | 2,217 | 2,263 | 69 | 45 | |||||||||||||||||
Voyager | Arizona (1,1) | 1,801 | 50% | (d) | 3,651 | 3,135 | 604 | 571 | ||||||||||||||||
Loggerhead | Florida | 2,343 | 49% | 35,789 | 35,789 | 321 | — | |||||||||||||||||
ECHO JV | Various | — | 50% | 16,365 | 16,222 | 142 | 161 | |||||||||||||||||
5,941 | $ | 58,465 | $ | 57,755 | $ | 1,533 | $ | 1,195 |
(a) | Loggerhead sites represent marina slip count. |
(b) | The percentages shown approximate our economic interest as of March 31, 2019. Our legal ownership interest may differ. |
(c) | Includes two joint ventures in which we own a 65% interest and Crosswinds joint venture in which we own a 49% interest. |
(d) | Voyager joint venture primarily consists of a 50% interest in Voyager RV Resort and 33% interest in the utility plant servicing the Property. |
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||
(amounts in thousands) | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Mortgage notes payable, excluding deferred financing costs | $ | 2,236,125 | $ | 2,172,139 | $ | 2,164,563 | $ | 2,174,715 |
As of March 31, | As of December 31, | |||||||||
(amounts in thousands) | Balance Sheet Location | 2019 | 2018 | |||||||
Interest Rate Swap | Other assets, net | $ | 1,368 | $ | 2,299 |
Derivatives in Cash Flow Hedging Relationship | Amount of (gain)/loss recognized in OCI on derivative for the quarter ended March 31, | Location of (gain)/ loss reclassified from accumulated OCI into income | Amount of (gain)/loss reclassified from accumulated OCI into income for the quarter ended March 31, | |||||||||||||||
(amounts in thousands) | 2019 | 2018 | (amounts in thousands) | 2019 | 2018 | |||||||||||||
Interest Rate Swap | $ | 606 | $ | (1,746 | ) | Interest Expense | $ | (325 | ) | $ | 127 |
(amounts in thousands) | Property Operations | Home Sales and Rentals Operations | Consolidated | ||||||||
Operations revenues | $ | 246,016 | $ | 10,337 | $ | 256,353 | |||||
Operations expenses | (108,970 | ) | (8,919 | ) | $ | (117,889 | ) | ||||
Income from segment operations | 137,046 | 1,418 | $ | 138,464 | |||||||
Interest income | 894 | 850 | $ | 1,744 | |||||||
Depreciation and amortization | (35,543 | ) | (2,434 | ) | $ | (37,977 | ) | ||||
Gain on sale of real estate, net | 52,507 | — | $ | 52,507 | |||||||
Income (loss) from operations | $ | 154,904 | $ | (166 | ) | $ | 154,738 | ||||
Reconciliation to consolidated net income: | |||||||||||
Corporate interest income | 7 | ||||||||||
Income from other investments, net | 986 | ||||||||||
General and administrative | (9,909 | ) | |||||||||
Other expenses | (427 | ) | |||||||||
Interest and related amortization | (26,393 | ) | |||||||||
Equity in income of unconsolidated joint ventures | 1,533 | ||||||||||
Consolidated net income | $ | 120,535 | |||||||||
Total assets | $ | 3,771,453 | $ | 237,424 | $ | 4,008,877 | |||||
Capital improvements | $ | 24,406 | $ | 28,035 | $ | 52,441 |
(amounts in thousands) | Property Operations | Home Sales and Rentals Operations | Consolidated | ||||||||
Operations revenues | $ | 231,016 | $ | 12,119 | $ | 243,135 | |||||
Operations expenses | (105,512 | ) | (11,073 | ) | (116,585 | ) | |||||
Income from segment operations | 125,504 | 1,046 | 126,550 | ||||||||
Interest income | 808 | 907 | 1,715 | ||||||||
Depreciation and amortization | (29,874 | ) | (2,500 | ) | (32,374 | ) | |||||
Income (loss) from operations | $ | 96,438 | $ | (547 | ) | $ | 95,891 | ||||
Reconciliation to consolidated net income: | |||||||||||
Corporate interest income | 235 | ||||||||||
Income from other investments, net | 940 | ||||||||||
General and administrative | (8,038 | ) | |||||||||
Other expenses | (343 | ) | |||||||||
Interest and related amortization | (25,703 | ) | |||||||||
Equity in income of unconsolidated joint ventures | 1,195 | ||||||||||
Consolidated net income | $ | 64,177 | |||||||||
Total assets | $ | 3,547,466 | $ | 142,617 | $ | 3,690,083 | |||||
Capital improvements | $ | 21,267 | $ | 10,049 | $ | 31,316 |
Quarters Ended March 31, | |||||||
(amounts in thousands) | 2019 | 2018 | |||||
Revenues: | |||||||
Rental income | $ | 219,982 | $ | 203,478 | |||
Right-to-use annual payments | 12,316 | 11,519 | |||||
Right-to-use contracts current period, gross | 3,838 | 3,162 | |||||
Right-to-use contract upfront payments, deferred, net | (1,771 | ) | (1,285 | ) | |||
Other income | 10,370 | 13,036 | |||||
Ancillary services revenues, net | 1,281 | 1,106 | |||||
Total property operations revenues | 246,016 | 231,016 | |||||
Expenses: | |||||||
Property operating and maintenance | 76,744 | 74,908 | |||||
Real estate taxes | 15,323 | 14,135 | |||||
Sales and marketing, gross | 3,409 | 2,812 | |||||
Right-to-use contract commissions, deferred, net | (191 | ) | (24 | ) | |||
Property management | 13,685 | 13,681 | |||||
Total property operations expenses | 108,970 | 105,512 | |||||
Income from property operations segment | $ | 137,046 | $ | 125,504 |
Quarters Ended March 31, | |||||||
(amounts in thousands) | 2019 | 2018 | |||||
Revenues: | |||||||
Rental income (a) | $ | 3,584 | $ | 3,515 | |||
Gross revenue from home sales | 6,475 | 8,309 | |||||
Brokered resale revenues, net | 278 | 282 | |||||
Ancillary services revenues, net | — | 13 | |||||
Total revenues | 10,337 | 12,119 | |||||
Expenses: | |||||||
Property operating and maintenance | 1,204 | 1,424 | |||||
Cost of home sales | 6,632 | 8,574 | |||||
Home selling expenses | 1,083 | 1,075 | |||||
Total expenses | 8,919 | 11,073 | |||||
Income from home sales and rentals operations segment | $ | 1,418 | $ | 1,046 |
(a) | Segment information includes income related to rental homes. Income related to Site rent on rental homes is included within property operations. |
Total Sites as of March 31, 2019 | ||
MH Community Sites | 71,900 | |
RV Community Sites: | ||
Annual | 29,500 | |
Seasonal | 11,300 | |
Transient | 11,800 | |
Right-to-use Membership (1) | 24,300 | |
Joint Ventures (2) | 5,900 | |
154,700 |
(1) | Primarily utilized to service the approximately 112,400 membership customers who have entered into a right-to-use contract. Includes approximately 5,900 Sites rented on an annual basis. |
(2) | Includes approximately 2,700 annual Sites, 400 seasonal Sites, and 500 transient Sites and includes approximately 2,300 marina slips. |
Property | Location | Type of Property | Transaction Date | Sites | ||||
Total Sites as of January 1, 2018 | 151,323 | |||||||
Acquisitions: | ||||||||
Kingswood | Riverview, Florida | MH | March 8, 2018 | 229 | ||||
Serendipity | Clearwater, Florida | MH | March 15, 2018 | 425 | ||||
Holiday Travel Park | Holiday, Florida | RV | April 20, 2018 | 613 | ||||
Everglades Lakes | Fort Lauderdale, Florida | MH | July 20, 2018 | 612 | ||||
Sunseekers RV Resort | North Fort Myers, Florida | RV | September 21, 2018 | 241 | ||||
Timber Creek RV Resort | Westerly, Rhode Island | RV | November 20, 2018 | 364 | ||||
Palm Lake | Riviera Beach, Florida | MH | December 13, 2018 | 915 | ||||
King Nummy Trail Campground | Cape May Court House, New Jersey | RV | December 20, 2018 | 313 | ||||
Drummer Boy Camping Resort | Gettysburg, Pennsylvania | RV | March 25, 2019 | 465 | ||||
Lake of the Woods Campground | Wautoma, Wisconsin | RV | March 25, 2019 | 303 | ||||
Expansion Site Development: | ||||||||
Sites added in 2018 | 419 | |||||||
Site Reconfigured | (17) | |||||||
Dispositions: | ||||||||
Hoosier Estates | Lebanon, Indiana | MH | January 23, 2019 | (288) | ||||
Lake in the Hills | Auburn Hills, Michigan | MH | January 23, 2019 | (238) | ||||
North Glen Village | Westfield, Indiana | MH | January 23, 2019 | (282) | ||||
Oak Tree Village | Portage, Indiana | MH | January 23, 2019 | (361) | ||||
Swan Creek | Ypsilanti, Michigan | MH | January 23, 2019 | (294) | ||||
Total Sites as of March 31, 2019 | 154,742 | |||||||
Quarters Ended March 31, | |||||||
(amounts in thousands) | 2019 | 2018 | |||||
Computation of Income from Property Operations: | |||||||
Net income available for Common Stockholders | $ | 113,309 | $ | 60,222 | |||
Income allocated to non-controlling interests - Common OP Units | 7,226 | 3,955 | |||||
Equity in income of unconsolidated joint ventures | (1,533 | ) | (1,195 | ) | |||
Income before equity in income of unconsolidated joint ventures | 119,002 | 62,982 | |||||
Gain on sale of real estate, net | (52,507 | ) | — | ||||
Total other expenses, net | 71,969 | 63,568 | |||||
Income from home sales operations and other | (319 | ) | (61 | ) | |||
Income from property operations | $ | 138,145 | $ | 126,489 |
Quarters Ended March 31, | ||||||||
(amounts in thousands) | 2019 | 2018 | ||||||
Computation of FFO and Normalized FFO: | ||||||||
Net income available for Common Stockholders | $ | 113,309 | $ | 60,222 | ||||
Income allocated to non-controlling interests - Common OP units | 7,226 | 3,955 | ||||||
Right-to-use contract upfront payments, deferred, net | 1,771 | 1,285 | ||||||
Right-to-use contract commissions, deferred, net | (191 | ) | (24 | ) | ||||
Depreciation and amortization | 37,977 | 32,374 | ||||||
Depreciation on unconsolidated joint ventures | 433 | 373 | ||||||
Gain on sale of real estate, net | (52,507 | ) | — | |||||
FFO available for Common Stock and OP Unit holders | 108,018 | 98,185 | ||||||
Insurance proceeds due to catastrophic weather event (1) | (349 | ) | (286 | ) | ||||
Normalized FFO available for Common Stock and OP Unit holders | $ | 107,669 | $ | 97,899 | ||||
Weighted average Common Shares outstanding – fully diluted | 95,624 | 94,577 |
Core Portfolio | Total Portfolio | ||||||||||||||||||||||||||||
(amounts in thousands) | 2019 | 2018 | Variance | % Change | 2019 | 2018 | Variance | % Change | |||||||||||||||||||||
Community base rental income | $ | 131,038 | $ | 124,789 | $ | 6,249 | 5.0 | % | $ | 135,282 | $ | 126,739 | $ | 8,543 | 6.7 | % | |||||||||||||
Rental home income | 3,490 | 3,231 | 259 | 8.0 | % | 3,584 | 3,515 | 69 | 2.0 | % | |||||||||||||||||||
Resort base rental income | 65,934 | 63,287 | 2,647 | 4.2 | % | 72,168 | 64,254 | 7,914 | 12.3 | % | |||||||||||||||||||
Right-to-use annual payments | 12,310 | 11,517 | 793 | 6.9 | % | 12,316 | 11,519 | 797 | 6.9 | % | |||||||||||||||||||
Right-to-use contracts current period, gross | 3,838 | 3,162 | 676 | 21.4 | % | 3,838 | 3,162 | 676 | 21.4 | % | |||||||||||||||||||
Utility and other income | 22,617 | 24,059 | (1,442 | ) | (6.0 | )% | 23,751 | 25,521 | (1,770 | ) | (6.9 | )% | |||||||||||||||||
Property operating revenues, excluding deferrals | 239,227 | 230,045 | 9,182 | 4.0 | % | 250,939 | 234,710 | 16,229 | 6.9 | % | |||||||||||||||||||
Property operating and maintenance | 74,301 | 73,137 | 1,164 | 1.6 | % | 77,593 | 74,908 | 2,685 | 3.6 | % | |||||||||||||||||||
Rental home operating and maintenance | 1,182 | 1,360 | (178 | ) | (13.1 | )% | 1,204 | 1,424 | (220 | ) | (15.4 | )% | |||||||||||||||||
Real estate taxes | 14,574 | 13,824 | 750 | 5.4 | % | 15,323 | 14,135 | 1,188 | 8.4 | % | |||||||||||||||||||
Sales and marketing, gross | 3,413 | 2,812 | 601 | 21.4 | % | 3,409 | 2,812 | 597 | 21.2 | % | |||||||||||||||||||
Property operating expenses, excluding deferrals and Property management | 93,470 | 91,133 | 2,337 | 2.6 | % | 97,529 | 93,279 | 4,250 | 4.6 | % | |||||||||||||||||||
Income from property operations, excluding deferrals and Property management (1) | 145,757 | 138,912 | 6,845 | 4.9 | % | 153,410 | 141,431 | 11,979 | 8.5 | % | |||||||||||||||||||
Property management | 13,684 | 13,681 | 3 | — | % | 13,685 | 13,681 | 4 | — | % | |||||||||||||||||||
Income from property operations, excluding deferrals (1) | 132,073 | 125,231 | 6,842 | 5.5 | % | 139,725 | 127,750 | 11,975 | 9.4 | % | |||||||||||||||||||
Right-to-use contracts, deferred and sales and marketing, deferred, net | 1,580 | 1,261 | 319 | 25.3 | % | 1,580 | 1,261 | 319 | 25.3 | % | |||||||||||||||||||
Income from property operations (1) | $ | 130,493 | $ | 123,970 | $ | 6,523 | 5.3 | % | $ | 138,145 | $ | 126,489 | $ | 11,656 | 9.2 | % |
Core Portfolio | Total Portfolio | ||||||||||||||||||||||||||||
(amounts in thousands) | 2019 | 2018 | Variance | % Change | 2019 | 2018 | Variance | % Change | |||||||||||||||||||||
Annual | $ | 37,349 | $ | 35,199 | $ | 2,150 | 6.1 | % | $ | 39,084 | $ | 35,156 | $ | 3,928 | 11.2 | % | |||||||||||||
Seasonal | 19,184 | 18,659 | 525 | 2.8 | % | 21,085 | 19,023 | 2,062 | 10.8 | % | |||||||||||||||||||
Transient | 9,401 | 9,429 | (28 | ) | (0.3 | )% | 11,999 | 10,075 | 1,924 | 19.1 | % | ||||||||||||||||||
Resort base rental income | $ | 65,934 | $ | 63,287 | $ | 2,647 | 4.2 | % | $ | 72,168 | $ | 64,254 | $ | 7,914 | 12.3 | % |
Quarters Ended March 31, | |||||||||||||||
(amounts in thousands, except home sales volumes) | 2019 | 2018 | Variance | % Change | |||||||||||
Gross revenues from new home sales (1) | $ | 4,564 | $ | 6,736 | $ | (2,172 | ) | (32.2 | )% | ||||||
Cost of new home sales (1) | (4,394 | ) | (6,510 | ) | 2,116 | 32.5 | % | ||||||||
Gross profit from new home sales | 170 | 226 | (56 | ) | (24.8 | )% | |||||||||
Gross revenues from used home sales | 1,911 | 1,573 | 338 | 21.5 | % | ||||||||||
Cost of used home sales | (2,238 | ) | (2,064 | ) | (174 | ) | (8.4 | )% | |||||||
Loss from used home sales | (327 | ) | (491 | ) | 164 | 33.4 | % | ||||||||
Brokered resale and ancillary services revenues, net | 1,559 | 1,401 | 158 | 11.3 | % | ||||||||||
Home selling expenses | (1,083 | ) | (1,075 | ) | (8 | ) | (0.7 | )% | |||||||
Income from home sales operations and other | $ | 319 | $ | 61 | $ | 258 | 423.0 | % | |||||||
Home sales volumes | |||||||||||||||
Total new home sales (2) | 91 | 130 | (39 | ) | (30.0 | )% | |||||||||
New Home Sales Volume - ECHO JV | 13 | 18 | (5 | ) | (27.8 | )% | |||||||||
Used home sales | 219 | 241 | (22 | ) | (9.1 | )% | |||||||||
Brokered home resales | 168 | 193 | (25 | ) | (13.0 | )% |
Quarters Ended March 31, | |||||||||||||||
(amounts in thousands, except rental unit volumes) | 2019 | 2018 | Variance | % Change | |||||||||||
Manufactured homes: | |||||||||||||||
Rental operations revenue (1) | $ | 11,211 | $ | 11,087 | $ | 124 | 1.1 | % | |||||||
Rental home operating and maintenance | (1,182 | ) | (1,360 | ) | 178 | 13.1 | % | ||||||||
Income from rental operations | 10,029 | 9,727 | 302 | 3.1 | % | ||||||||||
Depreciation on rental homes (2) | (2,413 | ) | (2,353 | ) | (60 | ) | (2.5 | )% | |||||||
Income from rental operations, net of depreciation | $ | 7,616 | $ | 7,374 | $ | 242 | 3.3 | % | |||||||
Gross investment in new manufactured home rental units (3) | $ | 171,708 | $ | 131,359 | $ | 40,349 | 30.7 | % | |||||||
Gross investment in used manufactured home rental units | $ | 27,330 | $ | 36,122 | $ | (8,792 | ) | (24.3 | )% | ||||||
Net investment in new manufactured home rental units | $ | 141,029 | $ | 104,358 | $ | 36,671 | 35.1 | % | |||||||
Net investment in used manufactured home rental units | $ | 12,671 | $ | 18,731 | $ | (6,060 | ) | (32.4 | )% | ||||||
Number of occupied rentals – new, end of period (4) | 2,860 | 2,529 | 331 | 13.1 | % | ||||||||||
Number of occupied rentals – used, end of period | 1,106 | 1,569 | (463 | ) | (29.5 | )% |
(1) | Rental operations revenue consists of Site rental income and home rental income in our Core Portfolio. Approximately $7.7 million and $7.9 million for the quarters ended March 31, 2019 and 2018, respectively, of Site rental income is included in community base rental income within the Core Portfolio Income from Property Operations table. The remainder of home rental income is included in rental home income in the Core Portfolio Income from Property Operations table. |
(2) | Included in Depreciation and amortization in the Consolidated Statements of Income and Comprehensive Income. |
(3) | Includes both occupied and unoccupied rental homes in our Core Portfolio. New home cost basis does not include the costs associated with our ECHO JV. Our investment in the ECHO JV was $16.4 million and $15.8 million as of March 31, 2019 and 2018, respectively. |
(4) | Occupied rentals as of the end of the period in our Core Portfolio and includes 290 and 276 homes rented through our ECHO JV during the quarters ended March 31, 2019 and 2018, respectively. |
Quarters Ended March 31, | |||||||||||||||
(amounts in thousands, expenses shown as negative) | 2019 | 2018 | Variance | % Change | |||||||||||
Depreciation and amortization | $ | (37,977 | ) | (32,374 | ) | $ | (5,603 | ) | (17.3 | )% | |||||
Interest income | 1,751 | 1,950 | (199 | ) | (10.2 | )% | |||||||||
Income from other investments, net | 986 | 940 | 46 | 4.9 | % | ||||||||||
General and administrative | (9,909 | ) | (8,038 | ) | (1,871 | ) | (23.3 | )% | |||||||
Other expenses | (427 | ) | (343 | ) | (84 | ) | (24.5 | )% | |||||||
Interest and related amortization | (26,393 | ) | (25,703 | ) | (690 | ) | (2.7 | )% | |||||||
Total other income and (expenses), net | $ | (71,969 | ) | $ | (63,568 | ) | $ | (8,401 | ) | (13.2 | )% |
Quarters Ended March 31, | |||||||
(amounts in thousands) | 2019 | 2018 | |||||
Net cash provided by operating activities | $ | 128,098 | $ | 121,701 | |||
Net cash provided by (used in) investing activities | 13,112 | (50,948 | ) | ||||
Net cash used in financing activities | (65,962 | ) | (25,018 | ) | |||
Net increase in cash and restricted cash | $ | 75,248 | $ | 45,735 |
Quarters Ended March 31, | |||||||
(amounts in thousands) | 2019 | 2018 | |||||
Recurring capital expenditures (1) | $ | 10,064 | $ | 8,764 | |||
Property upgrades and development(2) | 12,246 | 12,078 | |||||
New home investments (3)(4) | 27,362 | 9,372 | |||||
Used home investments (4) | 673 | 677 | |||||
Total property | 50,345 | 30,891 | |||||
Corporate | 2,096 | 425 | |||||
Total capital improvements | $ | 52,441 | $ | 31,316 |
(1) | Recurring capital expenditures are primarily comprised of common area improvements, furniture, and mechanical improvements. |
(2) | Includes $1.3 million and $4.8 million of restoration and improvement capital expenditures related to Hurricane Irma for the quarters ended March 31, 2019 and 2018, respectively. |
(3) | Excludes new home investment associated with our ECHO JV. |
(4) | Net proceeds from new and used home sale activities are reflected within Operating Activities. |
• | our ability to control costs and real estate market conditions, our ability to retain customers, the actual use of Sites by customers and our success in acquiring new customers at our Properties (including those that we may acquire); |
• | our ability to maintain historical or increase future rental rates and occupancy with respect to properties currently owned or that we may acquire; |
• | our ability to retain and attract customers renewing, upgrading and entering right-to-use contracts; |
• | our assumptions about rental and home sales markets; |
• | our ability to manage counterparty risk; |
• | our ability to renew our insurance policies at existing rates and on consistent terms; |
• | in the age-qualified Properties, home sales results could be impacted by the ability of potential home buyers to sell their existing residences as well as by financial, credit and capital markets volatility; |
• | results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; |
• | impact of government intervention to stabilize site-built single-family housing and not manufactured housing; |
• | effective integration of recent acquisitions and our estimates regarding the future performance of recent acquisitions; |
• | the completion of future transactions in their entirety, if any, and timing and effective integration with respect thereto; |
• | unanticipated costs or unforeseen liabilities associated with recent acquisitions; |
• | ability to obtain financing or refinance existing debt on favorable terms or at all; |
• | the effect of interest rates; |
• | the effect from any breach of our, or any of our vendor's, data management systems; |
• | the dilutive effects of issuing additional securities; |
• | the outcome of pending or future lawsuits or actions brought against us, including those disclosed in our filings with the Securities and Exchange Commission; and |
• | other risks indicated from time to time in our filings with the Securities and Exchange Commission. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101 | The following materials from Equity LifeStyle Properties, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Changes in Equity, (iv) Consolidated Statements of Cash Flow and (v) Notes to Consolidated Financial Statements, filed herewith. |
EQUITY LIFESTYLE PROPERTIES, INC. | ||
Date: April 30, 2019 | By: | /s/ Marguerite Nader |
Marguerite Nader | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: April 30, 2019 | By: | /s/ Paul Seavey |
Paul Seavey | ||
Executive Vice President, Chief Financial Officer and Treasurer | ||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Equity LifeStyle Properties, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 30, 2019 | By: | /s/ Paul Seavey |
Paul Seavey | ||
Executive Vice President, Chief Financial Officer and Treasurer |
1. | I have reviewed this quarterly report on Form 10-Q of Equity LifeStyle Properties, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 30, 2019 | By: | /s/ Marguerite Nader |
Marguerite Nader | ||
President and Chief Executive Officer |
1. | the Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Equity LifeStyle Properties, Inc. |
Date: April 30, 2019 | By: | /s/ Paul Seavey |
Paul Seavey | ||
Executive Vice President, Chief Financial Officer and Treasurer |
1. | the Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Equity LifeStyle Properties, Inc. |
Date: April 30, 2019 | By: | /s/ Marguerite Nader |
Marguerite Nader | ||
President and Chief Executive Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 22, 2019 |
|
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ELS | |
Entity Registrant Name | EQUITY LIFESTYLE PROPERTIES INC | |
Entity Central Index Key | 0000895417 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 89,998,829 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 89,996,134 | 89,921,018 |
Common stock, shares outstanding | 89,996,134 | 89,921,018 |
Organization and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
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,” "the Company," and “our.” We are a fully integrated owner and operator of lifestyle-oriented properties ("Properties") consisting primarily of manufactured home ("MH") and recreational vehicle ("RV") communities. We provide our customers the opportunity to place factory-built homes, cottages, cabins or RVs on our Properties either on a long-term or short-term basis. Our customers may lease individual developed areas ("Sites") or enter right-to-use contracts, which provide them access to specific Properties for limited stays. Our Properties are owned primarily by the Operating Partnership and managed internally by wholly-owned 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 94.0% interest as of March 31, 2019. As the general partner with control, ELS is the primary beneficiary 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. Capitalized terms used but not defined herein are as defined in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). 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 the 2018 Form 10-K. Intercompany balances and transactions have been eliminated. All adjustments to the 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 interim consolidated financial statements to conform with current year presentation. |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ("ASU 2016-02") Leases. This new guidance, including the related subsequently issued ASUs, provides the principles for the recognition, measurement, presentation and disclosure of leases, including the requirement that lessees recognize right-of-use ("ROU") assets and lease liabilities for leases on the Consolidated Balance Sheets. We adopted the new lease standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Results for reporting periods beginning January 1, 2019 are presented under the new lease standard. We made an accounting policy election to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less. We elected the package of practical expedients permitted under the transition guidance within the new standard and were not required to reassess the following upon adoption: (i) whether an expired or existing contract met the definition of a lease, (ii) the lease classification at January 1, 2019 for existing leases and (iii) whether leasing costs previously capitalized as initial direct costs would continue to be amortized. Upon adoption, we did not have an adjustment to the opening balance of retained earnings due to the election of these practical expedients. As a lessor, we adopted the practical expedient that allowed us not to separate expenses reimbursed by our customers (“utility recoveries”) from the associated rental revenue if certain criteria were met. We assessed these criteria and concluded the timing and pattern of transfer for rental revenue and the associated utility recoveries are the same and as our leases qualify as operating leases, we accounted for and presented rental revenue and utility recoveries as a single component under Rental income in our Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2019 and 2018. In addition, the new standard requires our expected credit loss related to the collectability of lease receivables to be reflected as an adjustment to the line item Rental income. For the three months ended March 31, 2018, the credit loss related to the collectability of lease receivables was recognized in the line item Property operating and maintenance and was not significant. The guidance regarding capitalization of leasing costs did not have any effect on our consolidated financial statements. On January 1, 2019, we recognized ROU assets of $17.5 million and lease liabilities of $18.7 million on the Consolidated Balance Sheets, principally for our ground and office space leases, in which we are the lessee. For more disclosure on the adoption of the new lease accounting standard, see Note 3. Leases. (b) New Accounting Pronouncements In August 2018, the FASB issued ("ASU 2018-15") Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 provides clarity on the accounting for implementation costs of a cloud computing arrangement that is a service contract. The project stage (that is, preliminary project stage, application development stage, or post implementation stage) and the nature of the implementation costs determine which costs to capitalize as an asset related to the service contract and which ones to expense. This update also requires the capitalized implementation costs to be expensed over the term of the arrangement and to be presented in the same line item in the consolidated financial statements as the fees associated with the service of the arrangement. ASU 2018-15 is effective in fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. This guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently in the process of evaluating the potential impact, if any, that the adoption of this standard may have on the consolidated financial statements and related disclosures. In June 2018, the SEC issued a final rule, Inline XBRL Filing of Tagged Data, which will require the use of the Inline eXtensible Business Reporting Language (XBRL) format for the submission of operating company financial statement information. In addition, the final rule will eliminate the requirement for operating companies to post “Interactive Data Files” (i.e., machine-readable computer code that presents information in XBRL format) on their websites. Large accelerated filers that prepare their financial statements in accordance with GAAP will be subject to Inline XBRL requirements beginning with the fiscal period ending on or after June 15, 2019. We expect to use Inline XBRL starting with the Form 10-Q for the quarter ending June 30, 2019. In June 2016, the FASB issued (“ASU 2016-13”) Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are currently in the process of evaluating the potential impact, if any, that adoption of this standard may have on the consolidated financial statements and related disclosures. (c) Revenue Recognition Right-to-use contracts (also referred to as memberships), 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 in which access to Sites at certain Properties are provided. Right-to-use upgrade contracts 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. Income from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. (d) Restricted Cash As of March 31, 2019 and December 31, 2018, restricted cash consists of $27.4 million and $24.1 million, respectively, primarily related to cash reserved for customer deposits and amounts escrowed for insurance and real estate taxes. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases, Lessor | Leases Lessor Rental income derived from customers renting our Sites is accounted for in accordance with Accounting Standard Codification (ASC) 842, Leases, and is recognized over the term of the respective operating lease or the length of a customer's stay. Our MH community Sites and annual RV community Sites are leased on an annual basis. Seasonal Sites are leased to customers generally for one to six months. Transient Sites are leased to customers on a short-term basis. In addition, customers may lease homes that are located in our Properties. The leases entered into between the customer and us for the rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:
Lessee We lease land under non-cancelable operating leases at 13 Properties expiring at various dates through 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 2026. For the quarters ended March 31, 2019 and 2018, total operating lease payments were $2.3 million and $2.0 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 liabilities for our operating leases:
ROU assets and lease liabilities from our operating leases included within Other assets, net and Accounts payable and other liabilities in the Consolidated Balance Sheets were $16.6 million and $17.9 million, respectively, as of March 31, 2019. The weighted average remaining lease term for our operating leases was 8 years and the weighted average incremental borrowing rate was 4.4% at March 31, 2019. |
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Leases, Lessee | Leases Lessor Rental income derived from customers renting our Sites is accounted for in accordance with Accounting Standard Codification (ASC) 842, Leases, and is recognized over the term of the respective operating lease or the length of a customer's stay. Our MH community Sites and annual RV community Sites are leased on an annual basis. Seasonal Sites are leased to customers generally for one to six months. Transient Sites are leased to customers on a short-term basis. In addition, customers may lease homes that are located in our Properties. The leases entered into between the customer and us for the rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:
Lessee We lease land under non-cancelable operating leases at 13 Properties expiring at various dates through 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 2026. For the quarters ended March 31, 2019 and 2018, total operating lease payments were $2.3 million and $2.0 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 liabilities for our operating leases:
ROU assets and lease liabilities from our operating leases included within Other assets, net and Accounts payable and other liabilities in the Consolidated Balance Sheets were $16.6 million and $17.9 million, respectively, as of March 31, 2019. The weighted average remaining lease term for our operating leases was 8 years and the weighted average incremental borrowing rate was 4.4% at March 31, 2019. |
Earnings Per Common Share |
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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 common share for the quarters ended March 31, 2019 and 2018:
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Common Stock and Other Equity Related Transactions |
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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 limited partners of the Operating Partnership (the "Common OP Unit holders") since January 1, 2018.
On October 26, 2018, we entered into our current at-the-market equity offering program with certain sales agents, pursuant to which we may sell, from time-to-time, shares of our Common Stock, par value $0.01 per share, having an aggregate offering price of up to $200.0 million. The full capacity remained available for issuance as of March 31, 2019. Exchanges Subject to certain limitations, Common OP Unit holders can request an exchange of any or all of their OP Units for shares of Common Stock at any time. Upon receipt of such a request, we may, in lieu of issuing shares of Common Stock, cause the Operating Partnership to pay cash. During the quarter ended March 31, 2019, 5,325 OP Units were exchanged for an equal number of shares of Common Stock. During the same period in 2018, 6,838 OP Units were exchanged for an equal number of shares of Common Stock. |
Investment in Real Estate |
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Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions On March 25, 2019, we completed the acquisitions of Drummer Boy Camping Resort, a 465-site RV community located in Gettysburg, Pennsylvania, and Lake of the Woods Campground, a 303-site RV community located in Wautoma, Wisconsin, for a total purchase price of $25.4 million. These acquisitions were funded with available cash and a loan assumption of approximately $10.8 million, excluding mortgage premium of $0.4 million. Dispositions On January 23, 2019, we closed on the sale of five all-age MH communities located in Indiana and Michigan, collectively containing 1,463 sites, for $89.7 million. The assets and liabilities associated with the transaction were classifieds as held for sale on the Consolidated Balance Sheets as of December 31, 2018. We recognized a gain on sale of these Properties of $52.5 million during the first quarter of 2019. |
Investment in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically as of March 31, 2019 and December 31, 2018, respectively):
We received approximately $0.7 million and $0.5 million in distributions from these joint ventures for the quarters ended March 31, 2019 and 2018, respectively. None of the distributions made to us exceeded our basis in joint ventures for the quarters ended March 31, 2019 and 2018. |
Borrowing Arrangements |
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Borrowing Arrangements | Borrowing Arrangements Mortgage Notes Payable During the quarter ended March 31, 2019, we defeased mortgage debt of $11.2 million in conjunction with the disposition of the five MH Properties as disclosed in Note 6. Investment in Real Estate. These loans had a weighted average interest rate of 5.03% per annum. We also assumed mortgage debt of $10.8 million, excluding mortgage note premium of $0.4 million, as a result of acquisitions that closed during the quarter ended March 31, 2019. The loan carries an interest rate of 5.49% per annum and matures in 2024. Our mortgage notes payable is classified as Level 2 in the fair value hierarchy as of March 31, 2019 and December 31, 2018. The following table presents the fair value of our mortgage notes payable:
The weighted average interest rate on our outstanding mortgage indebtedness, including the impact of premium/discount amortization and loan cost amortization on mortgage indebtedness, for the quarter ended March 31, 2019 was approximately 4.5% per annum. The debt bears interest at stated rates ranging from 3.5% to 8.9% per annum and matures on various dates ranging from 2020 to 2041. The debt encumbered a total of 119 and 118 of our Properties as of March 31, 2019 and December 31, 2018, respectively, and the carrying value of such Properties was approximately $2,522.2 million and $2,489.8 million, as of March 31, 2019 and December 31, 2018, respectively. Unsecured Line of Credit During the quarter ended March 31, 2019, we did not borrow or pay off amounts on our unsecured Line of Credit ("LOC"). The full capacity on our LOC remained available. As of March 31, 2019, we were in compliance in all material respects with the covenants in our borrowing arrangements. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk 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 connection with our $200.0 million senior unsecured term loan (the “Term Loan”), which has an interest rate of LIBOR plus 1.20% to 1.90% per annum, we entered into a three-year LIBOR Swap Agreement (the "Swap") allowing us to trade the variable interest rate on the Term Loan for a fixed interest rate. The Swap has a notional amount of $200.0 million of outstanding principal with an underlying LIBOR of 1.85% per annum and matures on November 1, 2020. Based on the leverage as of March 31, 2019 and December 31, 2018, our spread over LIBOR was 1.20% resulting in an estimated all-in interest rate of 3.05% per annum. Our derivative financial instrument is classified as Level 2 in the fair value hierarchy as of March 31, 2019 and December 31, 2018. The following table presents the fair value of our derivative financial instrument:
The following table presents the effect of our derivative financial instrument on the Consolidated Statements of Income and Comprehensive Income:
During the next twelve months through March 31, 2020, we estimate that an additional $1.1 million will be reclassified as an increase to interest expense. This estimate may be subject to change as the underlying LIBOR changes. We determined that no adjustment was necessary for non-performance risk on our derivative obligation. As of March 31, 2019, we did not post any collateral related to this agreement. |
Equity Incentive Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Awards | Equity Incentive Awards Our 2014 Equity Incentive Plan (the “2014 Plan”) was adopted by our Board of Directors on March 11, 2014 and approved by our stockholders on May 13, 2014. During the quarter ended March 31, 2019, 61,200 shares of restricted stock were awarded to certain members of our management team. Of these shares, 50% are time-based awards, vesting in equal installments over a three-year period on January 31, 2020, January 29, 2021, and January 31, 2022, respectively, and have a grant date fair value of $3.2 million. The remaining 50% are performance-based awards, and are valued using the closing price at the grant date when all the key terms and conditions are known to all parties. The 10,201 shares of restricted stock awarded in 2019 subject to 2019 performance goals have a grant date fair value of $1.1 million. Additionally, 11,711 shares of restricted stock awarded in 2018 subject to 2019 performance goals have a grant date fair value of $1.3 million. Compensation expense related to restricted stock and stock options, reported in General and administrative on the Consolidated Statements of Income and Comprehensive Income, for the quarters ended March 31, 2019 and 2018 was approximately $2.4 million and $1.8 million, respectively. |
Commitments and Contingencies |
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Mar. 31, 2019 | |
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, and additional permit requirements and other similar enforcement actions by governmental agencies relating to our utility infrastructure, including water and wastewater treatment plants and other waste treatment facilities and electrical systems. Additionally, in the ordinary course of business, our operations are subject to audit by various taxing authorities. Management believes these Proceedings taken together do not represent a material liability. In addition, to the extent any such proceedings or audits relate to newly acquired Properties, we consider any potential indemnification obligations of sellers in our favor. |
Reportable Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments | Reportable Segments We have identified two reportable segments which are: (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 was no customer who contributed 10% or more of our total revenues during the quarters ended March 31, 2019 or 2018. The following tables summarize our segment financial information for the quarters ended March 31, 2019 and 2018: Quarter Ended March 31, 2019
Quarter Ended March 31, 2018
The following table summarizes our financial information for the Property Operations segment for the quarters ended March 31, 2019 and 2018:
The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters ended March 31, 2019 and 2018:
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Subsequent Event |
3 Months Ended |
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Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 10, 2019, we completed the acquisition of Round Top RV Campground, a 391-site RV community located in Gettysburg, Pennsylvania. The purchase price was approximately $12.4 million. This acquisition was funded with available cash and a loan assumption of approximately $7.8 million, excluding mortgage premium of $0.2 million. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
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,” "the Company," and “our.” We are a fully integrated owner and operator of lifestyle-oriented properties ("Properties") consisting primarily of manufactured home ("MH") and recreational vehicle ("RV") communities. We provide our customers the opportunity to place factory-built homes, cottages, cabins or RVs on our Properties either on a long-term or short-term basis. Our customers may lease individual developed areas ("Sites") or enter right-to-use contracts, which provide them access to specific Properties for limited stays. Our Properties are owned primarily by the Operating Partnership and managed internally by wholly-owned 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 94.0% interest as of March 31, 2019. As the general partner with control, ELS is the primary beneficiary 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. |
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. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ("ASU 2016-02") Leases. This new guidance, including the related subsequently issued ASUs, provides the principles for the recognition, measurement, presentation and disclosure of leases, including the requirement that lessees recognize right-of-use ("ROU") assets and lease liabilities for leases on the Consolidated Balance Sheets. We adopted the new lease standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Results for reporting periods beginning January 1, 2019 are presented under the new lease standard. We made an accounting policy election to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less. We elected the package of practical expedients permitted under the transition guidance within the new standard and were not required to reassess the following upon adoption: (i) whether an expired or existing contract met the definition of a lease, (ii) the lease classification at January 1, 2019 for existing leases and (iii) whether leasing costs previously capitalized as initial direct costs would continue to be amortized. Upon adoption, we did not have an adjustment to the opening balance of retained earnings due to the election of these practical expedients. As a lessor, we adopted the practical expedient that allowed us not to separate expenses reimbursed by our customers (“utility recoveries”) from the associated rental revenue if certain criteria were met. We assessed these criteria and concluded the timing and pattern of transfer for rental revenue and the associated utility recoveries are the same and as our leases qualify as operating leases, we accounted for and presented rental revenue and utility recoveries as a single component under Rental income in our Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2019 and 2018. In addition, the new standard requires our expected credit loss related to the collectability of lease receivables to be reflected as an adjustment to the line item Rental income. For the three months ended March 31, 2018, the credit loss related to the collectability of lease receivables was recognized in the line item Property operating and maintenance and was not significant. The guidance regarding capitalization of leasing costs did not have any effect on our consolidated financial statements. On January 1, 2019, we recognized ROU assets of $17.5 million and lease liabilities of $18.7 million on the Consolidated Balance Sheets, principally for our ground and office space leases, in which we are the lessee. For more disclosure on the adoption of the new lease accounting standard, see Note 3. Leases. (b) New Accounting Pronouncements In August 2018, the FASB issued ("ASU 2018-15") Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 provides clarity on the accounting for implementation costs of a cloud computing arrangement that is a service contract. The project stage (that is, preliminary project stage, application development stage, or post implementation stage) and the nature of the implementation costs determine which costs to capitalize as an asset related to the service contract and which ones to expense. This update also requires the capitalized implementation costs to be expensed over the term of the arrangement and to be presented in the same line item in the consolidated financial statements as the fees associated with the service of the arrangement. ASU 2018-15 is effective in fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. This guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently in the process of evaluating the potential impact, if any, that the adoption of this standard may have on the consolidated financial statements and related disclosures. In June 2018, the SEC issued a final rule, Inline XBRL Filing of Tagged Data, which will require the use of the Inline eXtensible Business Reporting Language (XBRL) format for the submission of operating company financial statement information. In addition, the final rule will eliminate the requirement for operating companies to post “Interactive Data Files” (i.e., machine-readable computer code that presents information in XBRL format) on their websites. Large accelerated filers that prepare their financial statements in accordance with GAAP will be subject to Inline XBRL requirements beginning with the fiscal period ending on or after June 15, 2019. We expect to use Inline XBRL starting with the Form 10-Q for the quarter ending June 30, 2019. In June 2016, the FASB issued (“ASU 2016-13”) Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are currently in the process of evaluating the potential impact, if any, that adoption of this standard may have on the consolidated financial statements and related disclosures. |
Revenue Recognition | Revenue Recognition Right-to-use contracts (also referred to as memberships), 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 in which access to Sites at certain Properties are provided. Right-to-use upgrade contracts 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. Income from home sales is recognized when the earnings process is complete. The earnings process is complete when the home has been delivered, the purchaser has accepted the home and title has transferred. |
Leases (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor Operating Lease, Payments 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:
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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 liabilities for our operating leases:
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Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the quarters ended March 31, 2019 and 2018:
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Common Stock and Other Equity Related Transactions (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | The following quarterly distributions have been declared and paid to common stockholders and the limited partners of the Operating Partnership (the "Common OP Unit holders") since January 1, 2018.
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Investment in Unconsolidated Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of our investment in unconsolidated joint ventures | The following table summarizes our investment in unconsolidated joint ventures (investment amounts in thousands with the number of Properties shown parenthetically as of March 31, 2019 and December 31, 2018, respectively):
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Borrowing Arrangements (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Mortgage Debt | Our mortgage notes payable is classified as Level 2 in the fair value hierarchy as of March 31, 2019 and December 31, 2018. The following table presents the fair value of our mortgage notes payable:
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Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments | The following table presents the fair value of our derivative financial instrument:
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Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the effect of our derivative financial instrument on the Consolidated Statements of Income and Comprehensive Income:
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Derivative Instruments, Gain (Loss) | The following table presents the effect of our derivative financial instrument on the Consolidated Statements of Income and Comprehensive Income:
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Reportable Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment financial information | The following tables summarize our segment financial information for the quarters ended March 31, 2019 and 2018: Quarter Ended March 31, 2019
Quarter Ended March 31, 2018
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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, 2019 and 2018:
The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters ended March 31, 2019 and 2018:
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Organization and Basis of Presentation (Details) |
Mar. 31, 2019 |
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Operating Partnership | |
Other Ownership Interests | |
Ownership interest (percent) | 94.00% |
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle | |||
Right of use asset | $ 16,600 | ||
Operating lease liability | 17,928 | ||
Cash and cash equivalents, restricted cash | $ 27,400 | $ 24,100 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle | |||
Right of use asset | $ 17,500 | ||
Operating lease liability | $ 18,700 |
Leases - Additional Information (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
lease
|
Mar. 31, 2018
USD ($)
|
|
Lease Description | ||
Number of non-cancelable operating leases, lessee (leases) | lease | 13 | |
Operating lease payments | $ 2,300 | $ 2,000 |
Right of use asset | 16,600 | |
Operating lease liability | $ 17,928 | |
Weighted average operating lease term | 8 years | |
Operating lease weighted average interest rate (percent) | 4.40% | |
Minimum | ||
Lease Description | ||
Lessor operating lease term | 1 month | |
Maximum | ||
Lease Description | ||
Lessor operating lease term | 6 months | |
Ground Lease | Maximum | ||
Lease Description | ||
Lease expiration year | 2054 | |
Office Lease | ||
Lease Description | ||
Lease expiration year | 2026 |
Leases - Operating Lease Future Proceeds (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
2019 | $ 73,507 |
2020 | 97,380 |
2021 | 41,914 |
2022 | 20,021 |
2023 | 19,702 |
Thereafter | 84,616 |
Total | $ 337,140 |
Leases - Operating Lease Minimum Payments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Lease Liabilities, Payments Due | ||
2019 | $ 3,925 | |
2020 | 4,801 | |
2021 | 4,179 | |
2022 | 2,103 | |
2023 | 953 | |
Thereafter | 5,054 | |
Total undiscounted rental payments | 21,015 | |
Less imputed interest | 3,087 | |
Total lease liabilities | $ 17,928 | |
Operating Leases Liabilities, Before Adoption | ||
2019 | $ 4,921 | |
2020 | 4,801 | |
2021 | 4,179 | |
2022 | 2,103 | |
2023 | 953 | |
Thereafter | 5,054 | |
Total undiscounted rental payments | 22,011 | |
Less imputed interest | 3,289 | |
Total lease liabilities | $ 18,722 |
Earnings Per Common Share - Calculation of numerator and denominator in eps table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Numerator: | ||
Net income available for Common Stockholders | $ 113,309 | $ 60,222 |
Amounts allocated to dilutive securities | 7,226 | 3,955 |
Net income available to Common Stockholders – Fully Diluted | $ 120,535 | $ 64,177 |
Denominator: | ||
Weighted average Common Shares outstanding – basic (shares) | 89,780 | 88,524 |
Effect of dilutive securities: | ||
Exchange of Common OP Units for Common Shares (shares) | 5,741 | 5,828 |
Restricted stock and options (shares) | 103 | 225 |
Weighted average Common Shares outstanding – Fully Diluted (shares) | 95,624 | 94,577 |
Earnings per Common Share – Basic (usd per share) | $ 1.26 | $ 0.68 |
Earnings per Common Share – Fully Diluted (usd per share) | $ 1.26 | $ 0.68 |
Common Stock and Other Equity Related Transactions - Common Stockholders Distribution Activity (Details) - $ / shares |
Apr. 12, 2019 |
Jan. 11, 2019 |
Oct. 12, 2018 |
Jul. 13, 2018 |
Apr. 13, 2018 |
---|---|---|---|---|---|
Class of Stock [Line Items] | |||||
Common stock, dividends paid (usd per share) | $ 0.5500 | $ 0.5500 | $ 0.5500 | $ 0.550 | |
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Common stock, dividends paid (usd per share) | $ 0.6125 |
Common Stock and Other Equity Related Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Class of Stock [Line Items] | |||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
OP units were exchanged for an equal number of shares of common stock (OP Units) | 5,325 | 6,838 | |
Private Placement | |||
Class of Stock [Line Items] | |||
Common stock, par value (usd per share) | $ 0.01 | ||
Aggregate offering price | $ 200.0 |
Investment in Real Estate (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 25, 2019
USD ($)
site
|
Jan. 23, 2019
USD ($)
property
site
|
Mar. 31, 2019
USD ($)
property
|
|
Disposed of by Sale | Manufactured Homes in Indiana and Michigan | |||
Business Acquisition | |||
Number of properties sold | property | 5 | 5 | |
Number of sites sold (sites) | site | 1,463 | ||
Proceeds from sales of properties | $ 89.7 | ||
Gin on sales of properties | $ 52.5 | ||
Drummer Boy | |||
Business Acquisition | |||
Purchase price | $ 25.4 | ||
Liabilities incurred | 10.8 | ||
Mortgage premium transferred | $ 0.4 | ||
Drummer Boy | Gettysburg, Pennsylvania and Lake of the Woods Campground | |||
Business Acquisition | |||
Number of acquired sites (sites) | site | 465 | ||
Drummer Boy | Wautoma, Wisconsin | |||
Business Acquisition | |||
Number of acquired sites (sites) | site | 303 |
Investment in Unconsolidated Joint Ventures - Additional Information (Detail) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019
USD ($)
joint_venture_site
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2019 |
Mar. 31, 2019
site
|
|
Schedule of Equity Method Investments | ||||
Number of sites | 2 | 5,941 | ||
Economic interest (in percentage) | 65.00% | |||
Income from distribution made to us | $ 700,000 | $ 500,000 | ||
Distributions, including those in excess of basis | $ 0 | $ 0 | ||
Crosswinds | ||||
Schedule of Equity Method Investments | ||||
Economic interest (in percentage) | 49.00% | |||
Recreational Vehicle Resort | Voyager | ||||
Schedule of Equity Method Investments | ||||
Economic interest (in percentage) | 50.00% | |||
Servicing Assets | Voyager | ||||
Schedule of Equity Method Investments | ||||
Economic interest (in percentage) | 33.00% |
Borrowing Arrangements - Additional Information (Detail) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019
USD ($)
Property
property
|
Jan. 23, 2019
property
|
Dec. 31, 2018
USD ($)
Property
|
Mar. 31, 2018 |
|
Debt Instrument | ||||
Number of pledged properties | Property | 119 | 118 | ||
Pledged assets, not separately reported | $ 2,522.2 | $ 2,489.8 | ||
Secured Debt | ||||
Debt Instrument | ||||
Weighted average interest rate (percentage) | 4.50% | |||
Secured Debt | Minimum | ||||
Debt Instrument | ||||
Stated interest rate (in percentage) | 3.45% | |||
Secured Debt | Maximum | ||||
Debt Instrument | ||||
Stated interest rate (in percentage) | 8.87% | |||
Drummer Boy | ||||
Debt Instrument | ||||
Stated interest rate (in percentage) | 5.49% | |||
Disposed of by Sale | ||||
Debt Instrument | ||||
Defeasance of debt | $ 11.2 | |||
Weighted average interest rate (percentage) | 5.03% | |||
Disposed of by Sale | Manufactured Homes in Indiana and Michigan | ||||
Debt Instrument | ||||
Number of properties sold | property | 5 | 5 |
Borrowing Arrangements - Fair Value of Mortgage Debt (Details) - Level 2 - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,236,125 | $ 2,164,563 |
Carrying Value | ||
Debt Instrument | ||
Mortgage notes payable, excluding deferred financing costs | $ 2,172,139 | $ 2,174,715 |
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instrument (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Designated as Hedging Instrument | Interest Rate Swap | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative asset | $ 1,368 | $ 2,299 |
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on Statement of Comprehensive Income and Income Statement (Details) - Interest Rate Swap - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments and Hedging Activities Disclosures | ||
Amount of (gain)/loss recognized in OCI on derivative | $ 606 | $ (1,746) |
Interest Expense | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Amount of (gain)/loss reclassified from accumulated OCI into income | $ (325) | $ 127 |
Reportable Segments - Additional Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2019
integer
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Subsequent Event (Details) - Subsequent Event - Round Top RV Campground $ in Millions |
Apr. 10, 2019
USD ($)
site
|
---|---|
Subsequent Event | |
Number of acquired sites (sites) | site | 391 |
Purchase price | $ 12.4 |
Liabilities incurred | 7.8 |
Mortgage premium transferred | $ 0.2 |
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