Notes And Other Receivables

6 Months Ended

Jun. 30, 2023

Notes and Loans Payable, by Type, Current and Noncurrent [Abstract]

Notes And Other Receivables

4. Notes and Other Receivables

The following table sets forth certain information regarding notes and other receivables (in millions):

	June 30, 2023		December 31, 2022
Installment notes receivable on manufactured homes, net	$	59.4	$	65.9
Notes receivable from real estate developers and operators	462.4		305.2
Other receivables, net	211.5		246.2
Total Notes and Other Receivables, net	$	733.3	$	617.3

Installment Notes Receivable on Manufactured Homes

Installment notes receivable are measured at fair value, using indicative pricing models from third party valuation specialists, in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures." The balances of installment notes receivable of $59.4 million (gross installment notes receivable of $62.7 million less fair value adjustment of $3.3 million) and $65.9 million (gross installment notes receivable of $67.3 million less fair value adjustment of $1.4 million) as of June 30, 2023 and December 31, 2022, respectively, are secured by manufactured homes. The notes represent financing to purchasers of manufactured homes located in our communities and require monthly principal and interest payments. The notes had a net weighted average interest rate (net of servicing costs) and maturity of 7.6% and 13.3 years as of June 30, 2023, and 7.6% and 13.8 years as of December 31, 2022, respectively. Refer to Note 15, "Fair Value of Financial Instruments," for additional detail.

Notes Receivable from Real Estate Developers and Operators

Notes receivable from real estate developers and operators are measured at fair value, using indicative pricing models from third party valuation specialists, in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures." As of June 30, 2023 and December 31, 2022, the notes receivable balances include a fully drawn loan provided to a real estate operator to fund investing and financing activities totaling $358.5 million with a net weighted average interest rate and maturity of 12.2% and 0.1 years as of June 30, 2023, and totaling $217.6 million with a net weighted average interest rate and maturity of 15.3% and 0.1 years as of December 31, 2022 (refer to Note 19, "Subsequent Events," for additional information regarding notes receivable activity after June 30, 2023). The additional acquisition and construction loans provided to real estate developers total $103.9 million with a net weighted average interest rate and maturity of 9.0% and 2.4 years as of June 30, 2023, and total $87.6 million with a net weighted average interest rate and maturity of 7.8% and 2.3 years as of December 31, 2022. As of June 30, 2023, the additional acquisition and construction loans provided to real estate developers have $55.9 million of undrawn funds.

There were no adjustments to the fair value of notes receivable from real estate developers and operators during the six months ended June 30, 2023 and year ended December 31, 2022. Refer to Note 15, "Fair Value of Financial Instruments," for additional information.

Other Receivables, net

Other receivables, net were comprised of amounts due from the following categories (in millions):

	June 30, 2023		December 31, 2022
Insurance receivables	$	68.5	$	78.0
Marina customers for storage, service and lease payments, net(1)	51.7		41.8
Home sale proceeds	36.9		28.9
MH and annual RV residents for rent, utility charges, fees and other pass-through charges, net(2)	17.1		61.5
Other receivables(3)	37.3		36.0
Total Other Receivables, net	$	211.5	$	246.2

(1)Net of allowance of $2.6 million and $2.2 million as of June 30, 2023 and December 31, 2022, respectively.

(2)Net of allowance of $4.9 million and $5.9 million as of June 30, 2023 and December 31, 2022, respectively.

(3)Includes receivable from Rezplot Systems LLC, a nonconsolidated affiliate, in which we had 49.0% and 48.9% ownership interest as of June 30, 2023 and December 31, 2022, respectively. In June 2020, we made a convertible secured loan to Rezplot Systems LLC. The note allows for a principal amount of up to $10.0 million to be drawn down over a period of three years, bears an interest rate of 3.0%, matures in June 2024, and is secured by all the assets of Rezplot Systems LLC. In January 2022, we made an additional loan to Rezplot Systems LLC that allows for a principal amount of up to $5.0 million to be drawn over a period of three years, bears an interest rate of 3.0% and matures in January 2025. The outstanding balances were $12.3 million and $12.7 million as of June 30, 2023 and December 31, 2022, respectively. Refer to Note 6, "Investments in Nonconsolidated Affiliates," for additional information on Rezplot Systems LLC.