EQUITY LIFESTYLE PROPERTIES INCELS

EQUITY LIFESTYLE PROPERTIES INC Leases Disclosure

10-KFiled Feb 18, 20263 min read
Leases
Lessor
Rental income derived from customers renting our Sites is recognized over the term of the respective operating lease or the length of a customer’s stay. MH Sites are generally leased on an annual basis to residents who own or lease factory-built homes, including manufactured homes. Annual RV and marina Sites are leased on an annual basis to customers who generally have an RV, factory-built cottage, boat or other unit placed on the site, including those Northern properties that are open for the summer season. Seasonal RV and marina Sites are leased to customers generally for one to six months. Transient RV and marina Sites are leased to customers on a short-term basis. In addition, customers may lease homes that are located in our communities.
The leases entered into between the customer and us for a rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Cancelable, long-term leases are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into cancelable, long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements.

Lessee
We lease land under non-cancelable operating leases at 14 Properties expiring at various dates between 2028 and 2056. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2033. For the years ended December 31, 2025, 2024 and 2023, total operating lease payments were $7.1 million, $4.5 million and $6.5 million, respectively.
The following table presents the operating lease payments in which we are the lessee:
For the Years Ended December 31,
(amounts in thousands)202520242023
Fixed lease cost:
Ground leases$708 $643 $671 
Office and other leases4,203 3,795 3,836 
Variable lease cost:
Ground leases2,235 59 1,969 
Total lease cost$7,146 $4,497 $6,476 
The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of December 31, 2025:
(amounts in thousands)Ground LeasesOffice and Other LeasesTotal
2026$686 $3,813 $4,499 
2027691 3,811 4,502 
2028687 3,369 4,056 
2029629 3,123 3,752 
2030595 2,869 3,464 
Thereafter2,540 5,043 7,583 
Total undiscounted rental payments5,828 22,028 27,856 
Less imputed interest(1,295)(2,597)(3,892)
Total lease liabilities$4,533 $19,431 $23,964 

Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $20.8 million and $24.0 million, respectively, as of December 31, 2025. The weighted average remaining lease term for our operating leases was seven years, and the weighted average incremental borrowing rate was 4.1% at December 31, 2025.
ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $23.9 million and $27.1 million, respectively, as of December 31, 2024. The weighted average remaining lease term for our operating leases was eight years, and the weighted average incremental borrowing rate was 4.1% at December 31, 2024.
Free Sentinel

Want the next EQUITY LIFESTYLE PROPERTIES INC leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment EQUITY LIFESTYLE PROPERTIES INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 25, 2025
2023Feb 22, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Feb 26, 2019
2017Feb 28, 2018
2016Feb 22, 2017
2015Feb 23, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

RevenueSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance