Leases

12 Months Ended

Dec. 31, 2024

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, 2024
2025	$	82,241
2026	79,298
2027	50,292
2028	26,646
2029	22,032
Thereafter	45,074
Total	$	305,583

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 2033. For the years ended December 31, 2024, 2023 and 2022, total operating lease payments were $4.5 million, $6.5 million and $9.3 million, respectively.

The following table presents the operating lease payments for the year ended December 31, 2024, 2023 and 2022:

	Years Ended December 31,
(amounts in thousands)	2024		2023		2022
Fixed lease cost:
Ground leases	$	643	$	671	$	3,601
Office and other leases	3,795		3,836		3,739
Variable lease cost:
Ground leases	59		1,969		1,938
Total lease cost	$	4,497	$	6,476	$	9,278

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, 2024:

(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2025	$	680	$	4,180	$	4,860
2026	684		3,957		4,641
2027	689		3,408		4,097
2028	685		3,029		3,714
2029	627		3,042		3,669
Thereafter	3,212		7,853		11,065
Total undiscounted rental payments	6,577		25,469		32,046
Less imputed interest	(1,605)		(3,388)		(4,993)
Total lease liabilities	$	4,972	$	22,081	$	27,053

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 $23.9 million and $27.1 million, respectively, as of December 31, 2024. The weighted average remaining lease term for our operating leases was eight years, and the weighted average incremental borrowing rate was 4.1% at December 31, 2024.

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.

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, 2024
2025	$	82,241
2026	79,298
2027	50,292
2028	26,646
2029	22,032
Thereafter	45,074
Total	$	305,583

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 2033. For the years ended December 31, 2024, 2023 and 2022, total operating lease payments were $4.5 million, $6.5 million and $9.3 million, respectively.

The following table presents the operating lease payments for the year ended December 31, 2024, 2023 and 2022:

	Years Ended December 31,
(amounts in thousands)	2024		2023		2022
Fixed lease cost:
Ground leases	$	643	$	671	$	3,601
Office and other leases	3,795		3,836		3,739
Variable lease cost:
Ground leases	59		1,969		1,938
Total lease cost	$	4,497	$	6,476	$	9,278

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, 2024:

(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2025	$	680	$	4,180	$	4,860
2026	684		3,957		4,641
2027	689		3,408		4,097
2028	685		3,029		3,714
2029	627		3,042		3,669
Thereafter	3,212		7,853		11,065
Total undiscounted rental payments	6,577		25,469		32,046
Less imputed interest	(1,605)		(3,388)		(4,993)
Total lease liabilities	$	4,972	$	22,081	$	27,053

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 $23.9 million and $27.1 million, respectively, as of December 31, 2024. The weighted average remaining lease term for our operating leases was eight years, and the weighted average incremental borrowing rate was 4.1% at December 31, 2024.

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.