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NOTES RECEIVABLE FROM MOBILE HOME PARKS

12 Months Ended

Dec. 31, 2025

NOTES RECEIVABLE FROM MOBILE HOME PARKS

6. NOTES RECEIVABLE FROM MOBILE HOME PARKS (“MHP Notes”)

The notes receivable from mobile home parks (“MHP Notes”) relate to manufactured homes sold to mobile home parks and financed through notes receivable.

Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following:


	As of December 31,		As of December 31,		As of December 31,
	2025		2024		2023
Outstanding principal balance	$	199,083	$	208,175	$	184,280
Loan discount and deferred financing fees		(1,146)		(1,057)		(1,565)
Allowance for loan losses		(1,399)		(654)		(735)
Total	$	196,538	$	206,464	$	181,980

The following table presents a detail of the activity in the allowance for loan losses for the following years:


	Year ended
	December 31,
	2025		2024
Allowance for loan losses, beginning of period	$	654	$	735
Provision for loan losses		745		(81)
(Charge offs) recoveries		—		—
Allowance for loan losses, end of period	$	1,399	$	654

A detailed aging of MHP loans receivable that are past due as of the following:


	As of December 31,			As of December 31,
	2025		%	2024		%
Total MHP loans receivable	$	199,083	100.0		208,175	100.0
Past due MHP loans:
31 - 60 days past due	$	1,674	0.8	$	410	0.2
61 - 90 days past due		711	0.4		—	—
91 - 120 days past due		—	—		—	—
Greater than 120 days past due		754	0.4		—	—
Total past due	$	3,139	1.6	$	410	0.2

We evaluate the credit quality of our MHP portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is generally based upon borrower payment activity relative to the contractual terms of the loan. The following table disaggregates the outstanding principal balance of MHP receivable by credit quality indicator based on delinquency status and fiscal year of origination:


	Year of Origination
	2025		2024		2023		2022		2021		Prior		Total		% of Portfolio
< 30 days past due	$	33,021	$	82,405	$	33,095	$	27,111	$	13,387	$	6,925	$	195,944	%	98.4
30-90 days past due		890		597		784		—		—		114		2,385		1.2
> 90 days past due		—		411		343		—		—		—		754		0.4
Total	$	33,911	$	83,413	$	34,222	$	27,111	$	13,387	$	7,039	$	199,083	%	100.0

Settlement Agreement

In 2024, the Company and various borrowers and guarantors (the “Makers”) entered into a Settlement Agreement and Release (the “Agreement”) to resolve disputes related to previously existing promissory notes with an aggregate principal balance of approximately $55.0 million, of which approximately $37.0 million had been accelerated following default. As consideration under the Agreement, the Makers conveyed to the Company clear title to the Forest Hollow Mobile Home Community in Beaumont, Texas and the Cleveland Mobile Home Community in Richland, Mississippi, together with related personal property and intangible assets, and the parties executed a new $48.6 million promissory note (the “New Note”) bearing a fixed interest rate of 7.9%, requiring monthly interest-only payments for twenty-four months and maturing in July 2026. The New Note is secured by a first-priority interest in more than 1,000 mobile homes and two mobile-home parks located in Louisiana and is personally guaranteed by the individual borrowers. The Company recognized a gain of $5.4 million in 2024 related to the Agreement and the subsequent disposition of the Forest Hollow and Cleveland properties.

As of December 31, 2025, the Company evaluated the recoverability of the New Note and based on an analysis of the fair value of the underlying collateral, the current payment status of the borrowers, and other relevant credit quality indicators, determined that a provision for expected loan losses on the New Note was not necessary.