Reportable Segments

We have identified 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. The distribution of the Properties throughout the United States reflects our belief that geographic diversification helps insulate the portfolio from regional economic influences.

All revenues are from external customers and there is no customer who contributed 10% or more of our total revenues during the quarters and six months ended June 30, 2018 or 2017.

The following tables summarize our segment financial information for the quarters and six months ended June 30, 2018 and 2017:

Quarter Ended June 30, 2018



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	222,167		$	13,060		$	235,227
Operations expenses	(110,046		)	(12,234		)	(122,280		)
Income from segment operations	112,121			826			112,947
Interest income	823			1,033			1,856
Depreciation on real estate assets and rental homes	(30,061		)	(2,391		)	(32,452		)
Amortization of in-place leases	(1,893		)	—			(1,893		)
Income (loss) from operations	$	80,990		$	(532	)	$	80,458
Reconciliation to consolidated net income:
Corporate interest income							6
Income from other investments, net							3,413
General and administrative							(9,669		)
Other expenses							(367		)
Interest and related amortization							(26,285		)
Equity in income of unconsolidated joint ventures							1,613
Consolidated net income							$	49,169

Total assets	$	3,477,455		$	222,734		$	3,700,189
Capital improvements	$	26,602		$	23,459		$	50,061

Quarter Ended June 30, 2017



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	206,594		$	11,811		$	218,405
Operations expenses	(102,649		)	(10,481		)	(113,130		)
Income from segment operations	103,945			1,330			105,275
Interest income	754			1,041			1,795
Depreciation on real estate assets and rental homes	(27,609		)	(2,638		)	(30,247		)
Amortization of in-place leases	(958		)	—			(958		)
Income (loss) from operations	$	76,132		$	(267	)	$	75,865
Reconciliation to Consolidated net income:
Corporate interest income							3
Income from other investments, net							1,109
General and administrative							(8,461		)
Other expenses							(271		)
Interest and related amortization							(24,822		)
Equity in income of unconsolidated joint ventures							1,040
Consolidated net income							$	44,463

Total assets	$	3,267,947		$	217,411		$	3,485,358
Capital improvements	$	18,534		$	10,576		$	29,110

Six Months Ended June 30, 2018



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	453,183		$	25,179		$	478,362
Operations expenses	(215,558		)	(23,307		)	(238,865		)
Income from segment operations	237,625			1,872			239,497
Interest income	1,631			1,940			3,571
Depreciation on real estate assets and rental homes	(53,084		)	(10,690		)	(63,774		)
Amortization of in-place leases	(2,945		)	—			(2,945		)
Income (loss) from operations	$	183,227		$	(6,878	)	$	176,349
Reconciliation to consolidated net income:
Corporate interest income							241
Income from other investments, net							4,353
General and administrative							(17,707		)
Other expenses							(710		)
Interest and related amortization							(51,988		)
Equity in income of unconsolidated joint ventures							2,808
Consolidated net income							$	113,346

Total assets	$	3,477,455		$	222,734		$	3,700,189
Capital improvements	$	47,870		$	33,507		$	81,377

Six Months Ended June 30, 2017



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	425,582		$	22,685		$	448,267
Operations expenses	(199,906		)	(20,076		)	(219,982		)
Income from segment operations	225,676			2,609			228,285
Interest income	1,484			2,079			3,563
Depreciation on real estate assets and rental homes	(55,062		)	(5,295		)	(60,357		)
Amortization of in-place leases	(1,990		)	—			(1,990		)
Income (loss) from operations	$	170,108		$	(607	)	$	169,501
Reconciliation to Consolidated net income:
Corporate interest income							5
Income from other investments, net							1,866
General and administrative							(15,834		)
Other expenses							(490		)
Interest and related amortization							(49,701		)
Equity in income of unconsolidated joint ventures							2,190
Consolidated net income							$	107,537

Total assets	$	3,267,947		$	217,411		$	3,485,358
Capital improvements	$	31,731		$	21,733		$	53,464

The following table summarizes our financial information for the Property Operations segment for the quarters and six months ended June 30, 2018 and 2017:



	Quarters Ended						Six Months Ended
(amounts in thousands)	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Revenues:
Community base rental income	$	128,579		$	121,964		$	255,318		$	242,656
Resort base rental income	55,231			50,055			119,485			111,123
Right-to-use annual payments	11,891			11,350			23,410			22,602
Right-to-use contracts current period, gross	3,944			3,798			7,106			7,004
Right-to-use contract upfront payments, deferred, net	(2,021		)	(1,321		)	(3,306		)	(2,096		)
Utility and other income	24,320			20,650			49,841			42,776
Ancillary services revenues, net	223			98			1,329			1,517
Total property operations revenues	222,167			206,594			453,183			425,582
Expenses:
Property operating and maintenance	80,091			72,901			154,999			140,955
Real estate taxes	13,440			13,943			27,575			27,980
Sales and marketing, gross	3,305			2,894			6,117			5,584
Right-to-use contract commissions, deferred, net	(262		)	(112		)	(286		)	(196		)
Property management	13,472			13,023			27,153			25,583
Total property operations expenses	110,046			102,649			215,558			199,906
Income from property operations segment	$	112,121		$	103,945		$	237,625		$	225,676

The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters and six months ended June 30, 2018 and 2017:



	Quarters Ended				Six Months Ended
(amounts in thousands)	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenues:
Gross revenue from home sales	$	9,105	$	7,833	$	17,414	$	14,860
Brokered resale revenues, net	369		346		651		588
Rental home income ^(a)	3,561		3,632		7,076		7,237
Ancillary services revenues, net	25		—		38		—
Total revenues	13,060		11,811		25,179		22,685
Expenses:
Cost of home sales	9,632		7,895		18,206		15,014
Home selling expenses	973		929		2,048		1,854
Rental home operating and maintenance	1,629		1,657		3,053		3,208
Total expenses	12,234		10,481		23,307		20,076
Income from home sales and rentals operations segment	$	826	$	1,330	$	1,872	$	2,609

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