Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Lessor

Rental income derived from customers renting our Sites is accounted for in accordance with ASC 842, Leases, and is recognized over the term of the respective operating lease or the length of a customer's stay. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina Sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina Sites are leased to customers generally for one to six months. Transient RV and marina Sites are leased to customers on a short-term basis. In addition, customers may lease homes that are located in our communities.

The leases entered into between the customer and us for a rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of December 31, 2023
2024	$	91,108
2025	87,803
2026	26,025
2027	24,543
2028	22,812
Thereafter	49,268
Total	$	301,559

Lessee

We lease land under non-cancelable operating leases at 10 Properties expiring at various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space expiring at various dates through 2032. For the years ended December 31, 2023, 2022 and 2021, total operating lease payments were $6.5 million, $9.3 million and $10.4 million, respectively.

The following table presents the operating lease payments for the year ended December 31, 2023, 2022 and 2021:

	Years Ended December 31,
(amounts in thousands)	2023		2022		2021
Fixed lease cost:
Ground leases (1)	$	671	$	3,601	$	5,906
Office and other leases	3,836		3,739		3,529
Variable lease cost:
Ground leases (1)	1,969		1,938		871
Office and other leases	—		—		50
Total lease cost	$	6,476	$	9,278	$	10,356

__________________

(1)The Westwinds ground leases expired August 31, 2022, for additional information see Part I. Item 1. Financial Statements—Note 16. Commitments and Contingencies.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of December 31, 2023:

(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2024	$	675	$	3,774	$	4,449
2025	680		3,339		4,019
2026	684		2,967		3,651
2027	689		2,695		3,384
2028	685		2,511		3,196
Thereafter	3,840		8,395		12,235
Total undiscounted rental payments	7,253		23,681		30,934
Less imputed interest	(1,832)		(3,362)		(5,194)
Total lease liabilities	$	5,421	$	20,319	$	25,740

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $23.6 million and $25.7 million, respectively, as of December 31, 2023. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 3.9% at December 31, 2023.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $25.9 million and $28.0 million, respectively, as of December 31, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at December 31, 2022.

Leases

Leases

Lessor

Rental income derived from customers renting our Sites is accounted for in accordance with ASC 842, Leases, and is recognized over the term of the respective operating lease or the length of a customer's stay. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina Sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina Sites are leased to customers generally for one to six months. Transient RV and marina Sites are leased to customers on a short-term basis. In addition, customers may lease homes that are located in our communities.

The leases entered into between the customer and us for a rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of December 31, 2023
2024	$	91,108
2025	87,803
2026	26,025
2027	24,543
2028	22,812
Thereafter	49,268
Total	$	301,559

Lessee

We lease land under non-cancelable operating leases at 10 Properties expiring at various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space expiring at various dates through 2032. For the years ended December 31, 2023, 2022 and 2021, total operating lease payments were $6.5 million, $9.3 million and $10.4 million, respectively.

The following table presents the operating lease payments for the year ended December 31, 2023, 2022 and 2021:

	Years Ended December 31,
(amounts in thousands)	2023		2022		2021
Fixed lease cost:
Ground leases (1)	$	671	$	3,601	$	5,906
Office and other leases	3,836		3,739		3,529
Variable lease cost:
Ground leases (1)	1,969		1,938		871
Office and other leases	—		—		50
Total lease cost	$	6,476	$	9,278	$	10,356

__________________

(1)The Westwinds ground leases expired August 31, 2022, for additional information see Part I. Item 1. Financial Statements—Note 16. Commitments and Contingencies.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of December 31, 2023:

(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2024	$	675	$	3,774	$	4,449
2025	680		3,339		4,019
2026	684		2,967		3,651
2027	689		2,695		3,384
2028	685		2,511		3,196
Thereafter	3,840		8,395		12,235
Total undiscounted rental payments	7,253		23,681		30,934
Less imputed interest	(1,832)		(3,362)		(5,194)
Total lease liabilities	$	5,421	$	20,319	$	25,740

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $23.6 million and $25.7 million, respectively, as of December 31, 2023. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 3.9% at December 31, 2023.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $25.9 million and $28.0 million, respectively, as of December 31, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at December 31, 2022.