Notes Receivable

9 Months Ended

Sep. 30, 2012

Notes Receivable

Notes Receivable

As of September 30, 2012 and December 31, 2011, the Company had approximately $56.1 million and $64.2 million in notes receivable, respectively. As of September 30, 2012 and December 31, 2011, included in notes receivable, the Company had approximately $35.7 million and $43.4 million, respectively, in Chattel Loans receivable, which require monthly principal and interest payments and are collateralized by homes at certain of the Properties. As of September 30, 2012, the Chattel Loans receivable yielded interest at a stated per annum average rate of approximately 7.8% and had an average term remaining of approximately 14 years . These notes are recorded net of allowances of approximately $0.4 million as of September 30, 2012 and December 31, 2011. During the nine months ended September 30, 2012 and year ended December 31, 2011, approximately $4.2 million and $2.6 million, respectively, was repaid, and an additional $0.5 million and $0.3 million, respectively, was loaned to customers and approximately $3.5 million and $2.7 million, respectively, of homes serving as collateral for Chattel Loans were repossessed and converted to rental units.

As of September 30, 2012 and December 31, 2011, the Company had approximately $16.0 million and $16.4 million, respectively, of Contracts Receivable, including allowances of approximately $0.8 million and $1.0 million, respectively. These Contracts Receivable represent loans to customers who have entered right-to-use contracts. The Contracts Receivable yield interest at a stated per annum average rate of 16%, have a weighted average term remaining of approximately 4 years and require monthly payments of principal and interest. During the nine months ended September 30, 2012 and year ended December 31, 2011, approximately $5.4 million and $7.3 million, respectively, were repaid and an additional $4.7 million and $6.6 million, respectively, were lent to customers.