Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

17. Leases

Lessee Accounting

We lease land under non-cancelable operating leases at certain MH, RV and Marina properties expiring at various dates through 2100. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of revenues at those properties. We also have other operating leases, primarily office space and equipment expiring at various dates through 2042.

Future minimum lease payments under non-cancellable leases as of June 30, 2023 where we are the lessee include (in millions):

Maturity of Lease Liabilities	Operating Leases		Finance Leases		Total
2023 (excluding six months ended June 30, 2023)	$	7.1	$	0.4	$	7.5
2024	14.1		4.6		18.7
2025	13.6		0.5		14.1
2026	12.0		0.5		12.5
2027	10.1		0.5		10.6
Thereafter	244.2		20.9		265.1
Total Lease Payments	$	301.1	$	27.4	$	328.5
Less: Imputed interest	(140.0)		(13.0)		(153.0)
Present Value of Lease Liabilities	$	161.1	$	14.4	$	175.5

Right-of-use ("ROU") assets and lease liabilities for finance and operating leases as included in our Consolidated Balance Sheets are as follows (in millions):

	Financial Statement Classification	As of
Description		June 30, 2023		December 31, 2022
Lease Assets
Finance lease, right-of-use asset, net of accumulated amortization	Investment property, net	$	32.8	$	32.2
Operating lease, right-of-use asset, net	Other assets, net	$	178.8	$	189.4
Below market operating leases, net	Other assets, net	$	97.3	$	90.9
Lease Liabilities
Finance lease liabilities	Other liabilities	$	14.4	$	15.0
Operating lease liabilities	Other liabilities	$	161.1	$	160.3

Lease expense for finance and operating leases as included in our Consolidated Statements of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Finance Lease Expense
Amortization of ROU assets	Depreciation and amortization	$	0.6	$	0.9	$	1.3	$	0.9
Interest on lease liabilities	Interest expense	0.1		—		0.3		0.1
Operating lease cost	General and administrative expense, Property operating and maintenance, Depreciation and amortization	2.3		6.8		6.9		7.8
Variable lease cost	Property operating and maintenance	1.1		0.6		2.7		3.4
Total Lease Expense		$	4.1	$	8.3	$	11.2	$	12.2

Lease term, discount rates and additional information for finance and operating leases are as follows:

	As of
	June 30, 2023
Lease Term and Discount Rate
Weighted-average Remaining Lease Terms (years)
Finance lease	35.06
Operating lease	35.00
Weighted-average Discount Rate
Finance lease	3.38	%
Operating lease	3.81	%

	Six Months Ended
	June 30, 2023		June 30, 2022
Other Information (in millions)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flow from operating leases	$	6.6	$	5.5
Financing cash flow from finance leases	0.5		0.6
Total Cash Paid on Lease Liabilities	$	7.1	$	6.1

Lessor Accounting

We are not the lessor for any finance leases at our MH, RV or Marina properties as of June 30, 2023.

Nearly all of our operating leases with our residents and customers at our MH and RV properties where we are the lessor are either month-to-month or for a time period not to exceed one year. As of June 30, 2023, future minimum lease payments with our residents or customers would not exceed 12 months.

We do not have any operating leases with real estate operators on our MH properties. At our RV communities and marinas, future minimum lease payments under non-cancellable leases with real estate operators where we are the lessor include the following as of June 30, 2023 (in millions):

Maturity of Lease Payments	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	17.0
2024	19.6
2025	10.9
2026	6.8
2027	5.9
Thereafter	52.2
Total Undiscounted Cash Flows	$	112.4

The components of lease income for our operating leases, as included in our Consolidated Statement of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating Leases
Fixed lease income	Income from real property; Brokerage commissions and other revenue, net	$	5.3	$	6.9	$	13.2	$	14.0
Variable lease income(1)	Income from real property; Brokerage commissions and other revenue, net	$	0.8	$	0.8	$	2.3	$	1.5

(1)Consists of rent primarily based on a percentage of acquisition costs and net operating income.

Failed Sale Leaseback

In connection with our acquisition of Park Holidays, we assumed ground lease arrangements for 34 UK properties that we concluded to be failed sale-leaseback transactions under ASC Topic 842, "Leases." The arrangements have maturities ranging from 2117 through 2197 with an option to repurchase for £1.00 at the end of the term. The obligation related to the underlying ground leases has been recorded as a financial liability in Other Liabilities on the Consolidated Balance Sheets. The financial liability was $356.8 million and $339.7 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents the future minimum rental payments for this financial liability as of June 30, 2023 (in millions):

Maturity of Financial Liability	June 30, 2023
2023 (excluding six months ended June 30, 2023)	$	3.6
2024	11.7
2025	11.8
2026	11.9
2027	11.9
Thereafter	1,763.0
Total Payments	$	1,813.9
Less: Imputed interest	(1,457.1)
Present Value of Financial Liability	$	356.8

Leases

17. Leases

Lessee Accounting

We lease land under non-cancelable operating leases at certain MH, RV and Marina properties expiring at various dates through 2100. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of revenues at those properties. We also have other operating leases, primarily office space and equipment expiring at various dates through 2042.

Future minimum lease payments under non-cancellable leases as of June 30, 2023 where we are the lessee include (in millions):

Maturity of Lease Liabilities	Operating Leases		Finance Leases		Total
2023 (excluding six months ended June 30, 2023)	$	7.1	$	0.4	$	7.5
2024	14.1		4.6		18.7
2025	13.6		0.5		14.1
2026	12.0		0.5		12.5
2027	10.1		0.5		10.6
Thereafter	244.2		20.9		265.1
Total Lease Payments	$	301.1	$	27.4	$	328.5
Less: Imputed interest	(140.0)		(13.0)		(153.0)
Present Value of Lease Liabilities	$	161.1	$	14.4	$	175.5

Right-of-use ("ROU") assets and lease liabilities for finance and operating leases as included in our Consolidated Balance Sheets are as follows (in millions):

	Financial Statement Classification	As of
Description		June 30, 2023		December 31, 2022
Lease Assets
Finance lease, right-of-use asset, net of accumulated amortization	Investment property, net	$	32.8	$	32.2
Operating lease, right-of-use asset, net	Other assets, net	$	178.8	$	189.4
Below market operating leases, net	Other assets, net	$	97.3	$	90.9
Lease Liabilities
Finance lease liabilities	Other liabilities	$	14.4	$	15.0
Operating lease liabilities	Other liabilities	$	161.1	$	160.3

Lease expense for finance and operating leases as included in our Consolidated Statements of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Finance Lease Expense
Amortization of ROU assets	Depreciation and amortization	$	0.6	$	0.9	$	1.3	$	0.9
Interest on lease liabilities	Interest expense	0.1		—		0.3		0.1
Operating lease cost	General and administrative expense, Property operating and maintenance, Depreciation and amortization	2.3		6.8		6.9		7.8
Variable lease cost	Property operating and maintenance	1.1		0.6		2.7		3.4
Total Lease Expense		$	4.1	$	8.3	$	11.2	$	12.2

Lease term, discount rates and additional information for finance and operating leases are as follows:

	As of
	June 30, 2023
Lease Term and Discount Rate
Weighted-average Remaining Lease Terms (years)
Finance lease	35.06
Operating lease	35.00
Weighted-average Discount Rate
Finance lease	3.38	%
Operating lease	3.81	%

	Six Months Ended
	June 30, 2023		June 30, 2022
Other Information (in millions)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flow from operating leases	$	6.6	$	5.5
Financing cash flow from finance leases	0.5		0.6
Total Cash Paid on Lease Liabilities	$	7.1	$	6.1

Lessor Accounting

We are not the lessor for any finance leases at our MH, RV or Marina properties as of June 30, 2023.

Nearly all of our operating leases with our residents and customers at our MH and RV properties where we are the lessor are either month-to-month or for a time period not to exceed one year. As of June 30, 2023, future minimum lease payments with our residents or customers would not exceed 12 months.

We do not have any operating leases with real estate operators on our MH properties. At our RV communities and marinas, future minimum lease payments under non-cancellable leases with real estate operators where we are the lessor include the following as of June 30, 2023 (in millions):

Maturity of Lease Payments	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	17.0
2024	19.6
2025	10.9
2026	6.8
2027	5.9
Thereafter	52.2
Total Undiscounted Cash Flows	$	112.4

The components of lease income for our operating leases, as included in our Consolidated Statement of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating Leases
Fixed lease income	Income from real property; Brokerage commissions and other revenue, net	$	5.3	$	6.9	$	13.2	$	14.0
Variable lease income(1)	Income from real property; Brokerage commissions and other revenue, net	$	0.8	$	0.8	$	2.3	$	1.5

(1)Consists of rent primarily based on a percentage of acquisition costs and net operating income.

Failed Sale Leaseback

In connection with our acquisition of Park Holidays, we assumed ground lease arrangements for 34 UK properties that we concluded to be failed sale-leaseback transactions under ASC Topic 842, "Leases." The arrangements have maturities ranging from 2117 through 2197 with an option to repurchase for £1.00 at the end of the term. The obligation related to the underlying ground leases has been recorded as a financial liability in Other Liabilities on the Consolidated Balance Sheets. The financial liability was $356.8 million and $339.7 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents the future minimum rental payments for this financial liability as of June 30, 2023 (in millions):

Maturity of Financial Liability	June 30, 2023
2023 (excluding six months ended June 30, 2023)	$	3.6
2024	11.7
2025	11.8
2026	11.9
2027	11.9
Thereafter	1,763.0
Total Payments	$	1,813.9
Less: Imputed interest	(1,457.1)
Present Value of Financial Liability	$	356.8

Leases

17. Leases

Lessee Accounting

We lease land under non-cancelable operating leases at certain MH, RV and Marina properties expiring at various dates through 2100. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of revenues at those properties. We also have other operating leases, primarily office space and equipment expiring at various dates through 2042.

Future minimum lease payments under non-cancellable leases as of June 30, 2023 where we are the lessee include (in millions):

Maturity of Lease Liabilities	Operating Leases		Finance Leases		Total
2023 (excluding six months ended June 30, 2023)	$	7.1	$	0.4	$	7.5
2024	14.1		4.6		18.7
2025	13.6		0.5		14.1
2026	12.0		0.5		12.5
2027	10.1		0.5		10.6
Thereafter	244.2		20.9		265.1
Total Lease Payments	$	301.1	$	27.4	$	328.5
Less: Imputed interest	(140.0)		(13.0)		(153.0)
Present Value of Lease Liabilities	$	161.1	$	14.4	$	175.5

Right-of-use ("ROU") assets and lease liabilities for finance and operating leases as included in our Consolidated Balance Sheets are as follows (in millions):

	Financial Statement Classification	As of
Description		June 30, 2023		December 31, 2022
Lease Assets
Finance lease, right-of-use asset, net of accumulated amortization	Investment property, net	$	32.8	$	32.2
Operating lease, right-of-use asset, net	Other assets, net	$	178.8	$	189.4
Below market operating leases, net	Other assets, net	$	97.3	$	90.9
Lease Liabilities
Finance lease liabilities	Other liabilities	$	14.4	$	15.0
Operating lease liabilities	Other liabilities	$	161.1	$	160.3

Lease expense for finance and operating leases as included in our Consolidated Statements of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Finance Lease Expense
Amortization of ROU assets	Depreciation and amortization	$	0.6	$	0.9	$	1.3	$	0.9
Interest on lease liabilities	Interest expense	0.1		—		0.3		0.1
Operating lease cost	General and administrative expense, Property operating and maintenance, Depreciation and amortization	2.3		6.8		6.9		7.8
Variable lease cost	Property operating and maintenance	1.1		0.6		2.7		3.4
Total Lease Expense		$	4.1	$	8.3	$	11.2	$	12.2

Lease term, discount rates and additional information for finance and operating leases are as follows:

	As of
	June 30, 2023
Lease Term and Discount Rate
Weighted-average Remaining Lease Terms (years)
Finance lease	35.06
Operating lease	35.00
Weighted-average Discount Rate
Finance lease	3.38	%
Operating lease	3.81	%

	Six Months Ended
	June 30, 2023		June 30, 2022
Other Information (in millions)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flow from operating leases	$	6.6	$	5.5
Financing cash flow from finance leases	0.5		0.6
Total Cash Paid on Lease Liabilities	$	7.1	$	6.1

Lessor Accounting

We are not the lessor for any finance leases at our MH, RV or Marina properties as of June 30, 2023.

Nearly all of our operating leases with our residents and customers at our MH and RV properties where we are the lessor are either month-to-month or for a time period not to exceed one year. As of June 30, 2023, future minimum lease payments with our residents or customers would not exceed 12 months.

We do not have any operating leases with real estate operators on our MH properties. At our RV communities and marinas, future minimum lease payments under non-cancellable leases with real estate operators where we are the lessor include the following as of June 30, 2023 (in millions):

Maturity of Lease Payments	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	17.0
2024	19.6
2025	10.9
2026	6.8
2027	5.9
Thereafter	52.2
Total Undiscounted Cash Flows	$	112.4

The components of lease income for our operating leases, as included in our Consolidated Statement of Operations are as follows (in millions):

		Three Months Ended				Six Months Ended
Description	Financial Statement Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating Leases
Fixed lease income	Income from real property; Brokerage commissions and other revenue, net	$	5.3	$	6.9	$	13.2	$	14.0
Variable lease income(1)	Income from real property; Brokerage commissions and other revenue, net	$	0.8	$	0.8	$	2.3	$	1.5

(1)Consists of rent primarily based on a percentage of acquisition costs and net operating income.

Failed Sale Leaseback

In connection with our acquisition of Park Holidays, we assumed ground lease arrangements for 34 UK properties that we concluded to be failed sale-leaseback transactions under ASC Topic 842, "Leases." The arrangements have maturities ranging from 2117 through 2197 with an option to repurchase for £1.00 at the end of the term. The obligation related to the underlying ground leases has been recorded as a financial liability in Other Liabilities on the Consolidated Balance Sheets. The financial liability was $356.8 million and $339.7 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents the future minimum rental payments for this financial liability as of June 30, 2023 (in millions):

Maturity of Financial Liability	June 30, 2023
2023 (excluding six months ended June 30, 2023)	$	3.6
2024	11.7
2025	11.8
2026	11.9
2027	11.9
Thereafter	1,763.0
Total Payments	$	1,813.9
Less: Imputed interest	(1,457.1)
Present Value of Financial Liability	$	356.8