1. The Company is required by GAAP to defer recognition of the non-refundable upfront payments from the entry of right-to-use contracts over the estimated customer life. The customer life is currently estimated to range from one to 31 years and is based upon historical attrition rates provided to the Company by Privileged Access. The amount shown represents the deferral of a substantial portion of current period contracts sales, offset by amortization of prior period sales.
2. The Company is required by GAAP to defer recognition of the commission paid related to the entry of right-to-use contracts. The deferred commissions will be amortized on the same method as the related non-refundable upfront payments from the entry of right-to-use contracts. The amount shown represents the deferral of a substantial portion of current period contract commissions, offset by the amortization of prior period commissions.
3. For the three months and year ended December 31, 2011, the Company previously reported FFO and FAD including a deduction for rental home depreciation expense. To conform with the 2012 presentation of FFO and FAD, rental home depreciation expense was added back to previously reported FFO and FAD for the three months and year ended December 31, 2011.
4. See definition of FFO and FAD page 21.5. FFO adjusted to include a deduction for depreciation expense on rental homes would have been $48.6 million, or $1.07 per fully diluted share, and $43.5 million, or $0.96 per fully diluted share, for the three months ending December 31, 2012 and 2011, respectively, and $203.9 million, or $4.49 per fully diluted share, and $143.2 million, or $3.55 per fully diluted share, for the year ended December 31, 2012 and 2011, respectively.
|Consolidated Income from Property Operations (1)|
|Three Months Ended||Year Ended|
|December 31,||December 31,|
|Community base rental income (2)||$||104.4||$||99.1||$||414.2||$||318.9|
|Rental home income||4.0||2.7||14.1||8.0|
|Resort base rental income (3)||29.8||28.6||134.3||130.5|
|Right-to-use annual payments||11.6||12.1||47.7||49.1|
|Right-to-use contracts current period, gross||3.8||4.8||13.4||17.9|
|Utility and other income||14.3||13.8||64.4||53.8|
|Property operating revenues||167.9||161.1||688.1||578.2|
|Property operating, maintenance, and real estate taxes||65.2||63.3||274.6||238.2|
|Rental home operating and maintenance||2.2||1.8||7.4||4.9|
|Sales and marketing, gross||3.0||2.9||10.8||11.2|
|Property operating expenses||70.4||68.0||292.8||254.3|
|Income from property operations||$||97.5||$||93.1||$||395.3||$||323.9|
|Manufactured home site figures and occupancy averages:|
|Monthly base rent per site||$||524||$||517||$||522||$||533|
|Core total sites||44,101||44,104||44,102||44,104|
|Core occupied sites||40,462||40,215||40,333||40,094|
|Core occupancy %||91.7||%||91.2||%||91.5||%||90.9||%|
|Core monthly base rent per site||$||570||$||557||$||567||$||554|
|Resort base rental income:|
|Total resort base rental income||$||29.8||$||28.6||$||134.3||$||130.5|