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 nine months ended September 30, 2018 or 2017.

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

Quarter Ended September 30, 2018



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	236,204		$	13,204		$	249,408
Operations expenses	(114,384		)	(12,747		)	(127,131		)
Income from segment operations	121,820			457			122,277
Interest income	863			978			1,841
Depreciation on real estate assets and rental homes	(30,425		)	(2,431		)	(32,856		)
Amortization of in-place leases	(2,124		)	—			(2,124		)
Income (loss) from operations	$	90,134		$	(996	)	$	89,138
Reconciliation to consolidated net income:
Corporate interest income							5
Income from other investments, net							5,421
General and administrative							(8,816		)
Other expenses							(386		)
Interest and related amortization							(26,490		)
Equity in income of unconsolidated joint ventures							788
Consolidated net income							$	59,660

Total assets	$	3,630,136		$	224,901		$	3,855,037
Capital improvements	$	21,722		$	25,339		$	47,061

Quarter Ended September 30, 2017



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	223,184		$	14,415		$	237,599
Operations expenses	(110,431		)	(13,528		)	(123,959		)
Income from segment operations	112,753			887			113,640
Interest income	773			1,042			1,815
Depreciation on real estate assets and rental homes	(27,879		)	(2,614		)	(30,493		)
Amortization of in-place leases	(138		)	—			(138		)
Income (loss) from operations	$	85,509		$	(685	)	$	84,824
Reconciliation to consolidated net income:
Corporate interest income							159
Income from other investments, net							2,052
General and administrative							(7,505		)
Other expenses							(324		)
Interest and related amortization							(25,027		)
Equity in income of unconsolidated joint ventures							686
Consolidated net income							$	54,865

Total assets	$	3,298,122		$	227,725		$	3,525,847
Capital improvements	$	20,308		$	14,104		$	34,412

Nine Months Ended September 30, 2018



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	689,387		$	38,383		$	727,770
Operations expenses	(329,942		)	(36,054		)	(365,996		)
Income from segment operations	359,445			2,329			361,774
Interest income	2,494			2,918			5,412
Depreciation on real estate assets and rental homes	(89,308		)	(7,322		)	(96,630		)
Amortization of in-place leases	(5,069		)	—			(5,069		)
Income (loss) from operations	$	267,562		$	(2,075	)	$	265,487
Reconciliation to consolidated net income:
Corporate interest income							246
Income from other investments, net							9,774
General and administrative							(26,523		)
Other expenses							(1,096		)
Interest and related amortization							(78,478		)
Equity in income of unconsolidated joint ventures							3,596
Consolidated net income							$	173,006

Total assets	$	3,630,136		$	224,901		$	3,855,037
Capital improvements	$	69,591		$	58,845		$	128,436

Nine Months Ended September 30, 2017



(amounts in thousands)	Property Operations			Home Sales and Rentals Operations			Consolidated
Operations revenues	$	648,766		$	37,100		$	685,866
Operations expenses	(310,337		)	(33,604		)	(343,941		)
Income from segment operations	338,429			3,496			341,925
Interest income	2,256			3,122			5,378
Depreciation on real estate assets and rental homes	(82,939		)	(7,910		)	(90,849		)
Amortization of in-place leases	(2,128		)	—			(2,128		)
Income (loss) from operations	$	255,618		$	(1,292	)	$	254,326
Reconciliation to consolidated net income:
Corporate interest income							164
Income from other investments, net							3,918
General and administrative							(23,339		)
Other expenses							(814		)
Interest and related amortization							(74,728		)
Equity in income of unconsolidated joint ventures							2,876
Consolidated net income							$	162,403

Total assets	$	3,298,122		$	227,725		$	3,525,847
Capital improvements	$	52,040		$	35,837		$	87,877

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



	Quarters Ended September 30,						Nine Months Ended September 30,
(amounts in thousands)	2018			2017			2018			2017
Revenues:
Community base rental income	$	130,746		$	123,177		$	386,064		$	365,833
Resort base rental income	64,351			58,471			183,836			169,594
Right-to-use annual payments	12,206			11,531			35,616			34,133
Right-to-use contracts current period, gross	4,863			4,208			11,969			11,212
Right-to-use contract upfront payments, deferred, net	(2,883		)	(1,670		)	(6,189		)	(3,766		)
Utility and other income	25,917			26,295			75,758			69,071
Ancillary services revenues, net	1,004			1,172			2,333			2,689
Total property operations revenues	236,204			223,184			689,387			648,766
Expenses:
Property operating and maintenance	84,445			80,164			239,444			221,119
Real estate taxes	13,240			14,006			40,815			41,986
Sales and marketing, gross	3,568			3,277			9,685			8,861
Right-to-use contract commissions, deferred, net	(458		)	(176		)	(744		)	(372		)
Property management	13,589			13,160			40,742			38,743
Total property operations expenses	114,384			110,431			329,942			310,337
Income from property operations segment	$	121,820		$	112,753		$	359,445		$	338,429

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



	Quarters Ended September 30,				Nine Months Ended September 30,
(amounts in thousands)	2018		2017		2018		2017
Revenues:
Gross revenue from home sales	$	9,339	$	10,012	$	26,753	$	24,872
Brokered resale revenues, net	358		337		1,009		925
Rental home income ^(a)	3,507		3,592		10,583		10,829
Ancillary services revenues, net	—		474		38		474
Total revenues	13,204		14,415		38,383		37,100
Expenses:
Cost of home sales	9,742		10,377		27,948		25,391
Home selling expenses	1,101		1,447		3,149		3,301
Rental home operating and maintenance	1,904		1,704		4,957		4,912
Total expenses	12,747		13,528		36,054		33,604
Income from home sales and rentals operations segment	$	457	$	887	$	2,329	$	3,496

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