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Reportable Segments
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Reportable Segments 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 were from external customers and there was no customer who contributed 10% or more of our total revenues during the quarters and nine months ended September 30, 2019 or 2018.
The following tables summarize our segment financial information for the quarters and nine months ended September 30, 2019 and 2018:
Quarter Ended September 30, 2019
(amounts in thousands)
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
249,632

 
$
12,668

 
$
262,300

Operations expenses
(122,683
)
 
(11,070
)
 
(133,753
)
Income from segment operations
126,949

 
1,598

 
128,547

Interest income
985

 
840

 
1,825

Depreciation and amortization
(34,273
)
 
(2,759
)
 
(37,032
)
Income (loss) from operations
$
93,661

 
$
(321
)
 
$
93,340

Reconciliation to consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
$
6

Income from other investments, net
 
 
 
 
7,029

General and administrative
 
 
 
 
(8,710
)
Other expenses
 
 
 
 
(1,460
)
Interest and related amortization
 
 
 
 
(25,547
)
Equity in income of unconsolidated joint ventures
 
 
 
 
3,518

Consolidated net income
 
 
 
 
$
68,176

 
 
 
 
 
 
Total assets
$
3,871,379

 
$
266,092

 
$
4,137,471

Capital improvements
$
26,000

 
$
42,344

 
$
68,344


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 and amortization
(32,549
)
 
(2,431
)
 
(34,980
)
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



Nine Months Ended September 30, 2019

(amounts in thousands)
Property
Operations
 
Home Sales
and Rentals
Operations
 
Consolidated
Operations revenues
$
729,496

 
$
34,841

 
$
764,337

Operations expenses
(348,546
)
 
(30,547
)
 
(379,093
)
Income from segment operations
380,950

 
4,294

 
385,244

Interest income
2,829

 
2,535

 
5,364

Depreciation and amortization
(105,013
)
 
(7,772
)
 
(112,785
)
Gain on sale of real estate, net
52,507

 
—

 
52,507

Income (loss) from operations
$
331,273

 
$
(943
)
 
$
330,330

Reconciliation to consolidated net income:
 
 
 
 
 
Corporate interest income
 
 
 
 
$
21

Income from other investments, net
 
 
 
 
8,894

General and administrative
 
 
 
 
(27,844
)
Other expenses
 
 
 
 
(2,427
)
Interest and related amortization
 
 
 
 
(77,964
)
Equity in income of unconsolidated joint ventures
 
 
 
 
8,277

Early debt retirement
 
 
 
 
(1,491
)
Consolidated net income
 
 
 
 
$
237,796

 
 
 
 
 
 
Total assets
$
3,871,379

 
$
266,092

 
$
4,137,471

Capital improvements
$
78,907

 
$
110,881

 
$
189,788

 
 
 
 
 
 

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 and amortization
(94,377
)
 
(7,322
)
 
(101,699
)
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 venture
 
 
 
 
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

 
 
 
 
 
 


The following table summarizes our financial information for the Property Operations segment for the quarters and nine months ended September 30, 2019 and 2018:    
 
Quarters Ended September 30,
 
Nine Months Ended September 30,
(amounts in thousands)
2019

2018

2019

2018
Revenues:
 
 
 
 
 
 
 
Rental income
$
221,306

 
$
207,595

 
$
649,663

 
$
606,667

Right-to-use annual payments (membership subscriptions)
13,150

 
12,206

 
38,052

 
35,616

Right-to-use contracts current period, gross (membership upgrade sales)
5,730

 
4,863

 
14,609

 
11,969

Right-to-use contract upfront payments, deferred, net
(3,530
)
 
(2,883
)
 
(8,213
)
 
(6,189
)
Other income
11,263

 
13,419

 
31,898

 
38,991

Ancillary services revenues, net
1,713

 
1,004

 
3,487

 
2,333

Total property operations revenues
249,632

 
236,204

 
729,496

 
689,387

Expenses:

 
 
 
 
 
 
Property operating and maintenance
89,162

 
84,445

 
249,482

 
239,444

Real estate taxes
15,166

 
13,240

 
45,596

 
40,815

Sales and marketing, gross
4,063

 
3,568

 
11,686

 
9,685

Right-to-use contract commissions, deferred, net
(313
)
 
(458
)
 
(893
)
 
(744
)
Property management
14,605

 
13,589

 
42,675

 
40,742

Total property operations expenses
122,683

 
114,384

 
348,546

 
329,942

Income from property operations segment
$
126,949

 
$
121,820

 
$
380,950

 
$
359,445


The following table summarizes our financial information for the Home Sales and Rentals Operations segment for the quarters and nine months ended September 30, 2019 and 2018:
 
Quarters Ended September 30,
 
Nine Months Ended September 30,
(amounts in thousands)
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Rental income (a)
$
3,810

 
$
3,507

 
$
11,026

 
$
10,583

Gross revenue from home sales
8,438

 
9,339

 
22,738

 
26,753

Brokered resale revenues, net
420

 
358

 
1,077

 
1,009

Ancillary services revenues, net
—

 
—

 
—

 
38

Total revenues
12,668

 
13,204

 
34,841

 
38,383

Expenses:
 
 
 
 
 
 
 
Property operating and maintenance
1,603

 
1,904

 
4,099

 
4,957

Cost of home sales
8,434

 
9,742

 
23,230

 
27,948

Home selling expenses
1,033

 
1,101

 
3,218

 
3,149

Total expenses
11,070

 
12,747

 
30,547

 
36,054

Income from home sales and rentals operations segment
$
1,598

 
$
457

 
$
4,294

 
$
2,329

______________________
(a)
Segment information includes income related to rental homes. Income related to Site rent on rental homes is included within property operations.