Investment in Joint Ventures

3 Months Ended

Mar. 31, 2014

Investment in Joint Ventures

Investment in Unconsolidated Joint Ventures

We recorded approximately $1.9 million and $0.6 million (net of approximately $0.2 million and $0.3 million of depreciation expense) of equity in income from unconsolidated joint ventures for each of the quarters ended March 31, 2014 and 2013, respectively. We received approximately $1.4 million and $0.5 million in distributions from such joint ventures for each of the quarters ended March 31, 2014 and 2013, respectively. Approximately $1.1 million of the distributions received exceeded our basis in our joint venture and as such was recorded in income from unconsolidated joint ventures for the quarter ended March 31, 2014.

During the year ended December 31, 2013, we entered into an agreement with an unaffiliated third party to create a new joint venture named ECHO Financing, LLC (the “ECHO JV”). We entered into the ECHO JV in order to buy and sell homes, as well as to offer another financing option to purchasers of homes at our Properties. Each party to the venture made an initial contribution of $1.0 million in exchange for a pro rata ownership interest in the joint venture, which resulted in us owning 50% of the ECHO JV. We account for our investment in the ECHO JV using the equity method of accounting, since we do not have a controlling direct or indirect voting interest, but we can exercise significant influence with respect to its operations and major decisions.

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, 2014 and December 31, 2013):

						Investment as of				JV Income for the Quarters Ended
Investment	Location	Number of  Sites	Economic Interest (a)			March 31, 2014		December 31, 2013		March 31, 2014			March 31, 2013
Meadows	Various (2,2)	1,027	50	%		$	1,806	$	1,679	$	277		$	286
Lakeshore	Florida (2,2)	342	65	%		46		145		1,179			65
Voyager	Arizona (1,1)	1,706	50	%	(b)	7,449		7,074		438			413
Other	Various (0,0)	—	20	%		—		—		—			(188		)
ECHO JV	Various (0,0)	—	50	%		5,176		2,685		(7		)	—
		3,075				$	14,477	$	11,583	$	1,887		$	576

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(a) The percentages shown approximate our economic interest as of March 31, 2014. Our legal ownership interest may differ.

(b) Voyager joint venture primarily consists of a 50% interest in Voyager RV Resort and 33% interest in the utility providing water to the Property.