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Reportable Segments
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Reportable Segments
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 six months ended June 30, 2015 or 2014.
The following tables summarize our segment financial information for the quarters and six months ended June 30, 2015 and 2014 (amounts in thousands):
Quarter Ended June 30, 2015
 
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
184,125

 
$
13,441

 
$
197,566

Operations expenses
(90,677
)
 
(11,502
)
 
(102,179
)
Income from segment operations
93,448

 
1,939

 
95,387

Interest income
713

 
1,001

 
1,714

Depreciation on real estate assets and rental homes
(25,586
)
 
(2,749
)
 
(28,335
)
Amortization of in-place leases
(669
)
 
—

 
(669
)
Income from operations
$
67,906

 
$
191

 
68,097

Reconciliation to Consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
22

Income from other investments, net
 
 
 
 
2,178

General and administrative
 
 
 
 
(7,541
)
Property rights initiatives and other
 
 
 
 
(694
)
Early debt retirement
 
 
 
 
69

Interest and related amortization
 
 
 
 
(26,145
)
Equity in income of unconsolidated joint ventures
 
 
 
 
840

Consolidated net income
 
 
 
 
$
36,826

 
 
 
 
 
 
Total assets
$
3,192,050

 
$
255,458

 
$
3,447,508

Quarter Ended June 30, 2014
 
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
173,928

 
$
10,591

 
$
184,519

Operations expenses
(85,984
)
 
(8,422
)
 
(94,406
)
Income from segment operations
87,944

 
2,169

 
90,113

Interest income
774

 
1,045

 
1,819

Depreciation on real estate assets and rental homes
(24,949
)
 
(2,813
)
 
(27,762
)
Amortization of in-place leases
(1,401
)
 
—

 
(1,401
)
Income from operations
$
62,368

 
$
401

 
62,769

Reconciliation to Consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
59

Income from other investments, net
 
 
 
 
2,628

General and administrative
 
 
 
 
(6,794
)
Property rights initiatives and other
 
 
 
 
(1,001
)
Interest and related amortization
 
 
 
 
(28,265
)
Equity in income of unconsolidated joint ventures
 
 
 
 
644

Consolidated net income
 
 
 
 
$
30,040

 
 
 
 
 
 
Total assets
$
3,143,600

 
$
286,824

 
$
3,430,424



Six Months Ended June 30, 2015
 
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
378,814

 
$
24,227

 
$
403,041

Operations expenses
(177,957
)
 
(20,700
)
 
(198,657
)
Income from segment operations
200,857

 
3,527

 
204,384

Interest income
1,422

 
2,089

 
3,511

Depreciation on real estate assets and rental homes
(50,965
)
 
(5,486
)
 
(56,451
)
Amortization of in-place leases
(1,334
)
 
—

 
(1,334
)
Income from operations
$
149,980

 
$
130

 
150,110

Reconciliation to Consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
45

Income from other investments, net
 
 
 
 
3,297

General and administrative
 
 
 
 
(14,947
)
Property rights initiatives and other
 
 
 
 
(1,247
)
Early debt retirement
 
 
 
 
(16,922
)
Interest and related amortization
 
 
 
 
(53,421
)
Equity in income of unconsolidated joint ventures
 
 
 
 
1,724

Consolidated net income
 
 
 
 
$
68,639

 
 
 
 
 
 
Total assets
$
3,192,050

 
$
255,458

 
$
3,447,508

Capital improvements
$
22,557

 
$
19,702

 
$
42,259


Six Months Ended June 30, 2014
 
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
357,145

 
$
19,821

 
$
376,966

Operations expenses
(169,805
)
 
(16,267
)
 
(186,072
)
Income from segment operations
187,340

 
3,554

 
190,894

Interest income
1,571

 
2,154

 
3,725

Depreciation on real estate assets and rental homes
(49,806
)
 
(5,597
)
 
(55,403
)
Amortization of in-place leases
(2,716
)
 
—

 
(2,716
)
Income from operations
$
136,389

 
$
111

 
136,500

Reconciliation to Consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
850

Income from other investments, net
 
 
 
 
4,229

General and administrative
 
 
 
 
(12,555
)
Property rights initiatives and other
 
 
 
 
(1,312
)
Interest and related amortization
 
 
 
 
(56,313
)
Equity in income of unconsolidated joint ventures
 
 
 
 
2,531

Consolidated net income
 
 
 
 
$
73,930

 
 
 
 
 
 
Total assets
$
3,143,600

 
$
286,824

 
$
3,430,424

Capital improvements
$
13,519

 
$
13,015

 
$
26,534

The following table summarizes our financial information for the Property Operations segment for the quarters and six months ended June 30, 2015 and 2014 (amounts in thousands):    
 
Quarters Ended
 
Six Months Ended
 
June 30,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Revenues:
 
 
 
 
 
 
 
Community base rental income
$
110,073

 
$
106,502

 
$
219,343

 
$
212,547

Resort base rental income
41,427

 
36,888

 
93,072

 
81,837

Right-to-use annual payments
10,945

 
11,241

 
21,926

 
22,455

Right-to-use contracts current period, gross
3,578

 
3,263

 
6,375

 
6,344

Right-to-use contract upfront payments, deferred, net
(1,455
)
 
(1,168
)
 
(2,228
)
 
(2,315
)
Utility and other income
18,901

 
16,919

 
37,983

 
34,490

Ancillary services revenues, net
656

 
283

 
2,343

 
1,787

Total property operations revenues
184,125

 
173,928

 
378,814

 
357,145

Expenses:
 
 
 
 
 
 
 
Property operating and maintenance
64,178

 
61,217

 
125,295

 
119,913

Real estate taxes
12,652

 
12,157

 
25,246

 
24,642

Sales and marketing, gross
3,512

 
2,869

 
6,034

 
5,432

Right-to-use contract commissions, deferred, net
(764
)
 
(710
)
 
(1,007
)
 
(1,265
)
Property management
11,099

 
10,451

 
22,389

 
21,083

Total property operations expenses
90,677

 
85,984

 
177,957

 
169,805

Income from property operations segment
$
93,448

 
$
87,944

 
$
200,857

 
$
187,340

    
The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters and six months ended June 30, 2015 and 2014 (amounts in thousands):
 
Quarters Ended
 
Six Months Ended
June 30,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Revenues:
 
 
 
 
 
 
 
Gross revenue from home sales
$
9,526

 
$
6,560

 
$
16,463

 
$
11,738

Brokered resale revenues, net
356

 
285

 
651

 
580

Rental home income (a)
3,559

 
3,746

 
7,113

 
7,503

Total revenues
13,441

 
10,591

 
24,227

 
19,821

Expenses:
 
 
 
 
 
 
 
Cost of home sales
9,093

 
6,155

 
15,817

 
11,523

Home selling expenses
720

 
628

 
1,525

 
1,197

Rental home operating and maintenance
1,689

 
1,639

 
3,358

 
3,547

Total expenses
11,502

 
8,422

 
20,700

 
16,267

Income from home sales and rentals operations segment
$
1,939

 
$
2,169

 
$
3,527

 
$
3,554

______________________
(a)
Segment information does not include Site rental income included in Community base rental income.