Investment in Joint Ventures

6 Months Ended

Jun. 30, 2014

Investment in Unconsolidated Joint Ventures

We recorded approximately $2.5 million and $1.2 million (net of approximately $0.5 million and $0.5 million of depreciation expense) of equity in income from unconsolidated joint ventures for each of the six months ended June 30, 2014 and 2013, respectively. We received approximately $1.8 million and $1.1 million in distributions from such joint ventures for each of the six months ended June 30, 2014 and 2013, respectively. Approximately $1.1 million of the distributions received exceeded our basis in our joint venture and as such was recorded as income from unconsolidated joint ventures for the six months ended June 30, 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 June 30, 2014 and December 31, 2013):



						Investment as of				JV Income for the Six Months Ended
Investment	Location	Number of Sites	Economic Interest ^(a)			June 30, 2014		December 31, 2013		June 30, 2014		June 30, 2013
Meadows	Various (2,2)	1,027	50	%		$	2,129	$	1,679	$	600	$	532
Lakeshore	Florida (2,2)	342	65	%		8		145		1,213		141
Voyager	Arizona (1,1)	1,706	50	%	^(b)	7,383		7,074		700		699
Other	Various (0,0)	—	20	%		—		—		—		(187		)
ECHO JV	Various (0,0)	—	50	%		5,189		2,685		18		—
		3,075				$	14,709	$	11,583	$	2,531	$	1,185

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(a)	The percentages shown approximate our economic interest as of June 30, 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.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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