Investment Property

3 Months Ended

Mar. 31, 2012

Real Estate Investment Property, Net [Abstract]

Investment Property

 Investment Property

The following table sets forth certain information regarding investment property (in thousands):

	March 31, 2012			December 31, 2011
Land	$	153,412		$	140,230
Land improvements and buildings	1,358,006			1,342,325
Rental homes and improvements	263,549			246,245
Furniture, fixtures, and equipment	41,826			41,172
Land held for future development	25,606			24,633
Investment property	1,842,399			1,794,605
Accumulated depreciation	(613,191		)	(597,999		)
Investment property, net	$	1,229,208		$	1,196,606

Land improvements and buildings consist primarily of infrastructure, roads, landscaping, clubhouses, maintenance buildings and amenities.

See Note 2 for details on recent acquisitions.

In September 2009, a flood caused substantial damage to our property, Countryside Village of Atlanta, located in Lawrenceville, Georgia, which included the destruction of 109 home sites. We have comprehensive insurance coverage for both the property damage and business interruption, subject to deductibles and certain limitations. In December 2011, we settled our insurance claim, which resulted in total proceeds of $4.8 million. We are currently in the process of investigating the feasibility of, and seeking approval from FEMA for, rebuilding the damaged home sites, and have commenced discussions with our lender relative to the potential use of the insurance proceeds for such purpose.

In December 2011, we recorded impairment charges of $1.4 million associated with a long-lived asset for our manufactured housing community in Reidsville, North Carolina. This community consists of 45 developed sites with expansion potential of 145 sites. We reviewed the carrying value of the long-lived asset to be held and used for a possible impairment and based on our analysis, it indicated a possible impairment existed. Circumstances that prompted this test of recoverability included a decrease in the net operating income and an adverse judgment that limits the number of rental homes in the community. We considered both of these factors and determined that we will not be expanding the community. We recognized the impairment loss because the long-lived asset's carrying value was deemed not recoverable and exceeded estimated fair value. We estimated the fair value of these long lived assets based on future cash flows and any potential disposition proceeds for the given asset. We used variables such as estimated holding period, rental rates, occupancy and operating expenses during the holding period, as well as disposition proceeds to forecast future cash flows.