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Reportable Segments
 3 Months Ended
Mar. 31, 2013
Reportable Segments
Note 13 – Reportable Segments
Operating segments are defined as components of an entity for which separate financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker evaluates and assesses performance on a monthly basis. Segment operating performance is measured on Net Operating Income (“NOI”). NOI is defined as total operating revenues less total operating expenses. Segments are assessed before interest income, depreciation and amortization of in-place leases.
We have 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.
All revenues are from external customers and there is no customer who contributed 10% or more of our total revenues during the quarters ended March 31, 2013 and 2012.
Note 13 – Reportable Segments (continued)
The following tables summarize our segment financial information for the quarters ended March 31, 2013 and 2012 (amounts in thousands):
Quarter Ended March 31, 2013
 
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
178,509

 
$
7,322

 
$
185,831

Operations expenses
(81,738
)
 
(5,674
)
 
(87,412
)
Income from segment operations
96,771

 
1,648

 
98,419

Interest income
801

 
1,356

 
2,157

Depreciation on real estate and rental homes
(24,956
)
 
(1,827
)
 
(26,783
)
Amortization of in-place leases
(159
)
 
—

 
(159
)
Income from operations
$
72,457

 
$
1,177

 
73,634

Reconciliation to Consolidated net income
 
 
 
 
 
Other revenues
 
 
 
 
2,600

General and administrative
 
 
 
 
(6,816
)
Interest and related amortization
 
 
 
 
(30,252
)
Rent control initiatives and other
 
 
 
 
(232
)
Equity in income of unconsolidated joint ventures
 
 
 
 
576

Gain on sale of property, net of tax
 
 
 
 
958

Consolidated net income
 
 
 
 
$
40,468

Total assets
$
3,106,264

 
$
320,302

 
$
3,426,566

Capital improvements
$
4,311

 
$
12,726

 
$
17,037

Quarter Ended March 31, 2012
 
Property
Operations
 
Home Sales
and  Rentals
Operations
 
Consolidated
Operations revenues
$
171,741

 
$
5,432

 
$
177,173

Operations expenses
(78,116
)
 
(4,154
)
 
(82,270
)
Income from segment operations
93,625

 
1,278

 
94,903

Interest income
854

 
1,667

 
2,521

Depreciation on real estate and rental homes
(24,677
)
 
(1,422
)
 
(26,099
)
Amortization of in-place leases
(17,894
)
 
(471
)
 
(18,365
)
Income from operations
$
51,908

 
$
1,052

 
52,960

Reconciliation to Consolidated net income
 
 
 
 
 
Other revenues
 
 
 
 
1,597

General and administrative
 
 
 
 
(6,232
)
Interest and related amortization
 
 
 
 
(30,956
)
Rent control initiatives and other
 
 
 
 
(479
)
Equity in income of unconsolidated joint ventures
 
 
 
 
763

Consolidated net income
 
 
 
 
$
17,653

Total assets
$
3,268,224

 
$
224,345

 
$
3,492,569

Capital improvements
$
5,464

 
$
8,673

 
$
14,137


Note 13 – Reportable Segments (continued)
The following table summarizes our financial information for the Property Operations segment for the quarters ended March 31, 2013 and 2012 (amounts in thousands):        
 
Quarters Ended
 
March 31,
2013
 
March 31,
2012
Revenues:
 
 
 
Community base rental income
$
105,813

 
$
102,954

Resort base rental income
40,739

 
37,579

Right-to-use annual payments
11,523

 
11,751

Right-to-use contracts current period, gross
2,831

 
2,244

Right-to-use contracts current period, deferred
(1,040
)
 
(607
)
Utility income and other
17,165

 
16,403

Ancillary services revenues, net
1,478

 
1,417

Total property operations revenues
178,509

 
171,741

Expenses:
 
 
 
Property operating and maintenance
56,674

 
54,442

Real estate taxes
12,917

 
12,522

Sales and marketing, gross
2,361

 
1,643

Sales and marketing deferred commissions, net
(463
)
 
(242
)
Property management
10,249

 
9,751

Total property operations expenses
81,738

 
78,116

Income from property operations segment
$
96,771

 
$
93,625

The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters ended March 31, 2013 and 2012 (amounts in thousands):
 
Quarters Ended
March 31,
2013
 
March 31,
2012
Revenues:
 
 
 
Gross revenue from home sales
$
2,839

 
$
2,060

Brokered resale revenues, net
318

 
329

Rental home income (a)
4,165

 
3,043

Total revenues
7,322

 
5,432

Expenses:
 
 
 
Cost of home sales
2,960

 
2,216

Home selling expenses
527

 
333

Rental home operating and maintenance
2,187

 
1,605

Total expenses
5,674

 
4,154

Income from home sales and rentals operations segment
$
1,648

 
$
1,278

______________________
(a)
Does not include approximately $10.6 million and $8.1 million for the quarters ended March 31, 2013 and 2012, respectively, of site rental income included in Community base rental income.