Notes Receivable, net

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Notes Receivable, net

Notes Receivable, net

Notes receivable generally are presented at their outstanding unpaid principal balances, net of any allowances and unamortized discounts or premiums. Interest income is accrued on the unpaid principal balance. Discounts or premiums are amortized to income using the interest method.

We provide financing for non-refundable upfront payments required for membership upgrades (“Contracts Receivable”). As of December 31, 2024 and 2023, Contracts Receivable, net of allowance, was $42.3 million for both years. Contracts Receivable, as of December 31, 2024, had an average stated interest rate of 13.1% per annum, a weighted average term remaining of 4.6 years and require monthly payments of principal and interest.

In certain cases, we purchase loans made by an unaffiliated lender to finance the sales of homes to our customers at our Properties (referred to as “Chattel Loans”). These loans are secured by the underlying homes sold and require monthly principal and interest payments. As of December 31, 2024 and 2023, we had $8.4 million and $7.6 million of Chattel Loans, respectively. As of December 31, 2024, the Chattel Loans receivable had an average stated interest rate of approximately 7.6% per annum and had a weighted average term remaining of approximately 12 years.