Consolidated Variable Interest Entities

3 Months Ended

Mar. 31, 2020

DisclosureofVariableInterestEntities [Abstract]

The Operating Partnership

We consolidate the Operating Partnership under the guidance set forth in FASB ASC Topic 810 “Consolidation.” ASU 2015-02 modified the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or, alternatively, voting interest entities. We evaluated the application of ASU 2015-02 and concluded that the Operating Partnership met the criteria of a VIE. Our significant asset is our investment in the Operating Partnership, and consequently, substantially all of our assets and liabilities represent those assets and liabilities of the Operating Partnership. We are the sole general partner and generally have the power to manage and have complete control over the Operating Partnership and the obligation to absorb its losses or the right to receive its benefits.

Sun NG RV Resorts LLC (“Sun NG Resorts”); Rudgate Village SPE, LLC, Rudgate Clinton SPE, LLC, and Rudgate Clinton Estates SPE, LLC (collectively, “Rudgate”); Sun NG Whitewater RV LLC (“NG Sun Whitewater RV LLC”);

We consolidate Sun NG Resorts, Rudgate, and Sun NG Whitewater RV LLC, under the guidance set forth in FASB ASC Topic 810 “Consolidation.” We concluded that each of them is a VIE where we are the primary beneficiary, as we have the power to direct the significant activities, absorb the significant losses and receive the significant benefits from the entity. Refer to Note 3, “Real Estate Acquisitions,” Note 8, “Debt and Lines of Credit,” and Note 9, “Equity and Temporary Equity” for additional information on Sun NG Resorts.

The following table summarizes the assets and liabilities of Sun NG Resorts, Rudgate, and NG Sun Whitewater RV LLC included in our Consolidated Balance Sheets after eliminations (in thousands):



	March 31, 2020		December 31, 2019
Assets
Investment property, net	$	350,019	$	344,300
Other assets, net	23,751		23,894
Total Assets	$	373,770	$	368,194

Liabilities and Other Equity
Debt	$	46,727	$	46,993
Preferred Equity - Sun NG Resorts - mandatorily redeemable	35,249		35,249
Other liabilities	19,604		13,631
Total Liabilities	101,580		95,873
Equity Interest - NG Sun LLC & NG Sun Whitewater RV LLC	26,063		27,091
Noncontrolling interests	9,374		8,542
Total Liabilities and Other Equity	$	137,017	$	131,506

Investment property, net and other assets, net related to the consolidated VIEs, with the exception of the Operating Partnership, comprised approximately 4.6 percent and 4.7 percent of our consolidated total assets at March 31, 2020 and December 31, 2019, respectively. Debt, Preferred Equity and other liabilities comprised approximately 2.3 percent and 2.5 percent of our consolidated total liabilities at March 31, 2020 and December 31, 2019, respectively. Equity Interests and Noncontrolling interests related to the consolidated VIEs, on an absolute basis, comprised approximately less than 1.0 percent of our consolidated total equity at March 31, 2020 and at December 31, 2019, respectively.