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Sun Communities, Inc. Reports 2018 First Quarter Results

NEWS RELEASE
April 23, 2018

Southfield, Michigan, April 23, 2018 - Sun Communities, Inc. (SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities, today reported its first quarter results for 2018. 

Financial Results for the Three Months Ended March 31, 2018

For the three months ended March 31, 2018, total revenues increased $23.5 million, or 10.0 percent, to $257.9 million compared to $234.4 million for the same period in 2017. Net income attributable to common stockholders was $30.0 million, or $0.38 per diluted common share, for the three months ended March 31, 2018, as compared to net income attributable to common stockholders of $21.1 million, or $0.29 net income per diluted common share, for the same period in 2017.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations ("Core FFO")(1) for the three months ended March 31, 2018, was $1.14 per diluted share and OP unit ("Share") as compared to $1.10 in the prior year, an increase of 3.6 percent.
     
  • Same Community(2) Net Operating Income ("NOI")(1) increased by 5.3 percent for the three months ended March 31, 2018, as compared to the same period in 2017.
     
  • Recurring EBITDA(1) increased by 8.0 percent for the three months ended March 31, 2018, as compared to the same period in 2017.
     
  • Home sales volumes increased 1.3 percent for the three months ended March 31, 2018, as compared to the same period in 2017.  New home sales volumes increased 39.5 percent to 106 for the three months ended March 31, 2018, as compared to 76 in the same period in 2017.
     
  • Revenue producing sites increased by 616 sites for the three months ended March 31, 2018, as compared to a 687 site increase in the same period in 2017.

"Our positive results in the first quarter of 2018 were driven by solid occupancy gains, strong home sales and rentals, and a robust winter RV season," said Gary A. Shiffman, Chairman and Chief Executive Officer. "Our continued revenue growth underscores the ongoing demand for Sun`s communities. Furthermore, we delivered 246 new expansion sites in the quarter, which should contribute to our growth as they become revenue producing sites over time. Finally, our well positioned balance sheet supports an active pipeline of acquisition opportunities as we continue to pursue single asset and small portfolio investments. These combined elements are essential to Sun`s ability to generate superior total shareholder return over time."

OPERATING HIGHLIGHTS

Community Occupancy

Total portfolio occupancy was 95.8 percent at March 31, 2018, compared to 95.9 percent at March 31, 2017. The slight decline in occupancy was primarily attributable to recently completed but vacant MH expansion sites.

During the three months ended March 31, 2018, revenue producing sites increased by 616 sites, as compared to a 687 revenue producing site increase during the first quarter of 2017.


Same Community(2) Results

For the 336 stabilized communities owned and operated by the Company since January 1, 2017, NOI(1) for the three months ended March 31, 2018 increased 5.3 percent over the same period in 2017, as a result of a 5.7 percent increase in revenues and a 6.6 percent increase in operating expenses.  Operating expenses during the quarter increased primarily due to higher than expected insurance and utility expenses. Same Community occupancy(3) increased to 97.6 percent at March 31, 2018 from 95.4 percent at March 31, 2017.


Home Sales

During the three months ended March 31, 2018, the Company sold 837 homes as compared to 826 homes sold during the same period in 2017, a 1.3 percent increase.

Rental homes sales, which are included in total home sales, were 234 and 240 for the three months ended March 31, 2018 and 2017, respectively.


BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

Debt Transactions

During the quarter ended March 31, 2018, the Company repaid four collateralized term loans totaling $24.4 million with a weighted average interest rate of 6.36 percent, releasing three encumbered communities.  The loans were due to mature in March 2019.

As of March 31, 2018, the Company had $3.1 billion of debt outstanding. The weighted average interest rate was 4.45 percent and the weighted average maturity was 8.5 years. The Company had $15.2 million of unrestricted cash on hand. At period-end the Company`s net debt to trailing twelve month Recurring EBITDA(1) ratio was 6.2 times.

Equity Transactions

After quarter end, the Company issued 220,000 shares of common stock through its At-the-Market equity sales program at a weighted average price of $91.31 per share. Net proceeds from the sales were $19.8 million.

2018 Distributions

As previously announced, the Company increased its annual distribution by 6.0 percent to $2.84 per common share from $2.68 per common share. The increase began with the distribution declared in March 2018 that was paid after quarter end.


GUIDANCE 2018

The Company affirms full year 2018 net income per diluted share to be in the range of $1.26 to $1.42 and Core FFO(1) per Share to be in the range of $4.48 to $4.58. The Company anticipates second quarter 2018 net income per diluted share to be in the range of $0.24 to $0.28 and Core FFO(1) per Share to be in the range of $1.03 to $1.06.

The Company is adjusting its 2018 Same Community NOI(1) growth guidance for the year by 25 basis points to 6.75 percent to 7.25 percent from the prior range of 7.0 percent to 7.5 percent. Guidance does not include prospective acquisitions or capital markets activity.

Core FFO(1) per Share estimates assume certain gain and loss items that management considers unrelated to the operational and financial performance of our core business will be adjusted from FFO(1). The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. The estimates and assumptions are forward looking based on the Company`s current assessment of economic and market conditions, as well as other risks outlined below under the caption "Forward-Looking Statements."


EARNINGS CONFERENCE CALL

A conference call to discuss first quarter operating results will be held on Tuesday, April 24, 2018 at 1:00 P.M. (ET). To participate, call toll-free 877-407-9039. Callers outside the U.S. or Canada can access the call at 201-689-8470. A replay will be available following the call through May 8, 2018 and can be accessed toll-free by calling 844-512-2921 or 412-317-6671. The Conference ID number for the call and the replay is 13677309. The conference call will be available live on Sun Communities` website www.suncommunities.com. Replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of March 31, 2018, owned, operated, or had an interest in a portfolio of 350 communities comprising approximately 122,000 developed sites in 29 states and Ontario, Canada.

For more information about Sun Communities, Inc., please visit www.suncommunities.com.

CONTACT

Please address all inquiries to our investor relations department at our website www.suncommunities.com, by phone (248) 208-2500, by email investorrelations@suncommunities.com or by mail Sun Communities, Inc. Attn: Investor Relations, 27777 Franklin Road, Ste. 200, Southfield, MI 48034.


Forward-Looking Statements

This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. Forward-looking statements can be identified by words such as "will," "may," "could," "expect," "anticipate," "believes," "intends," "should," "plans," "estimates," "approximate," "guidance," and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements reflect the Company`s current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties, and other factors, some of which are beyond the Company`s control. These risks, uncertainties, and other factors may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include national, regional and local economic climates, the ability to maintain rental rates and occupancy levels, competitive market forces, the performance of recent acquisitions, the ability to integrate future acquisitions smoothly and efficiently, changes in market rates of interest, changes in foreign currency exchange rates, the ability of manufactured home buyers to obtain financing and the level of repossessions by manufactured home lenders.  Further details of potential risks that may affect the Company are described in its periodic reports filed with the U.S. Securities and Exchange Commission, including in the "Risk Factors" section of the Company`s Annual Report on Form 10-K.

The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company`s assumptions, expectations of future events, or trends.


Investor Information                                                           


RESEARCH COVERAGE            
             
Firm   Analyst   Phone   Email
Bank of America Merrill Lynch   Joshua Dennerlein   (646) 855-1681   joshua.dennerlein@baml.com
BMO Capital Markets   John Kim   (212) 885-4115   johnp.kim@bmo.com
Citi Research   Michael Bilerman   (212) 816-1383   michael.bilerman@citi.com
    Nicholas Joseph   (212) 816-1909   nicholas.joseph@citi.com
Evercore ISI   Steve Sakwa   (212) 446-9462   steve.sakwa@evercoreisi.com
    Samir Khanal   (212) 888-3796   samir.khanal@evercoreisi.com
Green Street Advisors   John Pawlowski   (949) 640-8780   jpawlowski@greenstreetadvisors.com
    Ryan Lumb   (949) 640-8780   rlumb@greenstreetadvisors.com
RBC Capital Markets   Wes Golladay   (440) 715-2650   wes.golladay@rbccm.com
Robert W. Baird & Co.   Drew Babin   (610) 238-6634   dbabin@rwbaird.com
Wells Fargo   Todd Stender   (562) 637-1371   todd.stender@wellsfargo.com
             
             
INQUIRIES            
             
Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department.
             
At Our Website   www.suncommunities.com        
             
By Email   investorrelations@suncommunities.com    
             
By Phone   (248) 208-2500        
             
             
             
             
             
             
             
             


Portfolio Overview                                                                           
(As of March 31, 2018)

 


Balance Sheets                                                                                                                                              
(amounts in thousands)

    3/31/2018   12/31/2017
ASSETS:        
Land   $ 1,114,609     $ 1,107,838  
Land improvements and buildings   5,128,186     5,102,014  
Rental homes and improvements   538,672     528,074  
Furniture, fixtures and equipment   148,197     144,953  
Investment property   6,929,664     6,882,879  
Accumulated depreciation   (1,287,010 )   (1,237,525 )
Investment property, net   5,642,654     5,645,354  
Cash and cash equivalents   15,153     10,127  
Inventory of manufactured homes   36,311     30,430  
Notes and other receivables, net   193,851     163,496  
Collateralized receivables, net (4)   123,155     128,246  
Other assets, net   138,529     134,304  
Total assets   $ 6,149,653     $ 6,111,957  
LIABILITIES:        
Mortgage loans payable   $ 2,826,225     $ 2,867,356  
Secured borrowings (4)   124,077     129,182  
Preferred OP units - mandatorily redeemable   37,338     41,443  
Lines of credit   141,800     41,257  
Distributions payable   58,663     55,225  
Other liabilities   282,993     270,741  
Total liabilities   3,471,096     3,405,204  
Series A-4 preferred stock   32,414     32,414  
Series A-4 preferred OP units   10,492     10,652  
STOCKHOLDERS` EQUITY:        
Common stock   799     797  
Additional paid-in capital   3,759,066     3,758,533  
Accumulated other comprehensive (loss) / income   (670 )   1,102  
Distributions in excess of accumulated earnings   (1,187,563 )   (1,162,001 )
Total SUI stockholder`s equity   2,571,632     2,598,431  
Noncontrolling interests:        
Common and preferred OP units   59,268     60,971  
Consolidated variable interest entities   4,751     4,285  
Total noncontrolling interest   64,019     65,256  
Total stockholders` equity   2,635,651     2,663,687  
Total liabilities & stockholders` equity   $ 6,149,653     $ 6,111,957  



Statements of Operations - Quarter to Date Comparison                                                            
(amounts in thousands, except per share amounts)

  Three Months Ended March 31,
  2018   2017   Change   % Change
REVENUES:              
Income from real property (excluding transient revenue) $ 175,210     $ 161,876     $ 13,334     8.2 %
Transient revenue 22,001     21,178     823     3.9 %
Revenue from home sales 34,900     27,263     7,637     28.0 %
Rental home revenue 13,020     12,339     681     5.5 %
Ancillary revenues 6,568     6,219     349     5.6 %
Interest 5,316     4,646     670     14.4 %
Brokerage commissions and other revenues, net 901     879     22     2.5 %
Total revenues 257,916     234,400     23,516     10.0 %
               
EXPENSES:              
Property operating and maintenance 51,630     47,166     4,464     9.5 %
Real estate taxes 13,836     13,143     693     5.3 %
Cost of home sales 26,571     20,883     5,688     27.2 %
Rental home operating and maintenance 5,170     5,102     68     1.3 %
Ancillary expenses 5,266     4,668     598     12.8 %
Home selling expenses 3,290     3,111     179     5.8 %
General and administrative 19,931     17,932     1,999     11.1 %
Transaction costs (5) -     2,386     (2,386 )   100.0 %
Catastrophic weather related charges, net (2,213 )   87     (2,300 )   (2,643.7 )%
Depreciation and amortization 66,437     62,766     3,671     5.8 %
Loss on extinguishment of debt 196     466     (270 )   (57.9 )%
Interest 31,138     31,322     (184 )   (0.6 )%
Interest on mandatorily redeemable preferred OP units 619     784     (165 )   (21.0 )%
Total expenses 221,871     209,816     12,055     5.7 %
Income before other items 36,045     24,584     11,461     46.6 %
Other (expense) / income, net (6) (2,617 )   839     (3,456 )   (411.9 )%
Current tax expense (174 )   (178 )   4     2.2 %
Deferred tax benefit 347     300     47     15.7 %
Net income 33,601     25,545     8,056     31.5 %
Less: Preferred return to preferred OP units (1,080 )   (1,174 )   94     (8.0 )%
Less: Amounts attributable to noncontrolling interests (2,094 )   (1,088 )   (1,006 )   92.5 %
Less: Preferred stock distribution (441 )   (2,179 )   1,738     (79.8 )%
NET INCOME ATTRIBUTABLE TO SUI $ 29,986     $ 21,104     $ 8,882     42.1 %
               
Weighted average common shares outstanding:              
Basic 78,855     72,677     6,178     8.5 %
Diluted 79,464     73,120     6,344     8.7 %
Earnings per share:              
Basic $ 0.38     $ 0.29     $ 0.09     31.0 %
Diluted $ 0.38     $ 0.29     $ 0.09     31.0 %



Outstanding Securities and Capitalization 
(in thousands except for *)

Outstanding Securities - As of March 31, 2018
                   
  Number of Units/Shares Outstanding   Conversion Rate*   If Converted   Issuance Price per unit*   Annual Distribution Rate*
Convertible Securities                  
Series A-1 preferred OP units 342   2.4390   834   $100   6.0%
Series A-3 preferred OP units 40   1.8605   74   $100   4.5%
Series A-4 preferred OP units 422   0.4444   188   $25   6.5%
Series C preferred OP units 316   1.1100   351   $100   4.5%
Common OP units 2,739   1.0000   2,739   N/A   Mirrors common shares distributions
Series A-4 cumulative convertible preferred stock 1,085   0.4444   482   $25   6.5%
                   
Non-Convertible Securities                  
Common shares 79,885   N/A   N/A   N/A   $2.84^
^ Annual distribution is based on the last quarterly distribution annualized.


Capitalization - As of March 31, 2018            
             
Equity   Shares   Share Price*   Total
Common shares   79,885     $ 91.37     $ 7,299,092  
Common OP units   2,739     $ 91.37     250,262  
Subtotal   82,624         $ 7,549,354  
             
Series A-1 preferred OP units   834     $ 91.37     76,203  
Series A-3 preferred OP units   74     $ 91.37     6,761  
Series A-4 preferred OP units   188     $ 91.37     17,178  
Series C preferred OP units   351     $ 91.37     32,071  
Total diluted shares outstanding   84,071         $ 7,681,567  
 
Debt
Mortgage loans payable           $ 2,826,225  
Secured borrowings (4)           124,077  
Preferred OP units - mandatorily redeemable           37,338  
Lines of credit           141,800  
Total Debt           $ 3,129,440  
 
Preferred
A-4 preferred stock   1,085     $ 25.00     $ 27,125  
Total Capitalization           $ 10,838,132  


Reconciliations to Non-GAAP Financial Measures


Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Funds from Operations                                                                               
(amounts in thousands except for per share data)

  Three Months Ended March 31,
  2018   2017
Net income attributable to Sun Communities, Inc. common stockholders $ 29,986     $ 21,104  
Adjustments:      
Depreciation and amortization 66,646     62,817  
Amounts attributable to noncontrolling interests 1,889     900  
Preferred return to preferred OP units 553     586  
Preferred distribution to Series A-4 preferred stock 441     665  
Gain on disposition of assets, net (4,539 )   (2,681 )
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8)

$ 94,976     $ 83,391  
Adjustments:      
Transaction costs (5) -     2,386  
Other acquisition related costs (7) 135     844  
Loss on extinguishment of debt 196     466  
Catastrophic weather related charges, net (2,213 )   87  
Loss of earnings - catastrophic weather related (9) 325     -  
Other expense / (income), net (6) 2,617     (839 )
Debt premium write-off (782 )   (414 )
Deferred tax benefit (347 )   (300 )
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8)

$ 94,907     $ 85,621  
       
Weighted average common shares outstanding - basic: 78,855     72,677  
Add:      
Common stock issuable upon conversion of stock options 2     2  
Restricted stock 607     561  
Common OP units 2,741     2,754  
Common stock issuable upon conversion of Series A-1 preferred OP units 836     892  
Common stock issuable upon conversion of Series A-3 preferred OP units 75     75  
Common stock issuable upon conversion of Series A-4 preferred stock 482     727  
Weighted average common shares outstanding - fully diluted 83,598     77,688  
       
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) per share - fully diluted $ 1.14     $ 1.07  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) per share - fully diluted

$ 1.14     $ 1.10  


Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA
(amounts in thousands)


  Three Months Ended
 March 31,
  2018   2017
Net income attributable to Sun Communities, Inc., common stockholders $ 29,986     $ 21,104  
Adjustments:      
Interest expense (net of debt premium write-offs of $0.8 million and $0.4 million in Q1 2018 and Q1 2017, respectively) 31,757     32,106  
Loss on extinguishment of debt 196     466  
Current tax expense 174     178  
Deferred tax benefit (347 )   (300 )
Depreciation and amortization 66,437     62,766  
Gain on disposition of assets, net (4,539 )   (2,681 )
EBITDAre (1) $ 123,664     $ 113,639  
Adjustments:      
Transaction costs (5) -     2,386  
Other expense / (income), net (6) 2,617     (839 )
Catastrophic weather related charges, net (2,213 )   87  
Amounts attributable to noncontrolling interests 2,094     1,088  
Preferred return to preferred OP units 1,080     1,174  
Preferred stock distribution 441     2,179  
Plus: Gain on dispositions of assets, net 4,539     2,681  
Recurring EBITDA (1) $ 132,222     $ 122,395  



Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Net Operating Income
(amounts in thousands)


  Three Months Ended
 March 31,
  2018   2017
Net income attributable to Sun Communities, Inc., common stockholders: $ 29,986     $ 21,104  
Other revenues (6,217 )   (5,525 )
Home selling expenses 3,290     3,111  
General and administrative 19,931     17,932  
Transaction costs (5) -     2,386  
Depreciation and amortization 66,437     62,766  
Loss on extinguishment of debt 196     466  
Interest expense 31,757     32,106  
Catastrophic weather related charges, net (2,213 )   87  
Other expense / (income), net (6) 2,617     (839 )
Current tax expense 174     178  
Deferred tax benefit (347 )   (300 )
Preferred return to preferred OP units 1,080     1,174  
Amounts attributable to noncontrolling interests 2,094     1,088  
Preferred stock distributions 441     2,179  
NOI(1) / Gross Profit $ 149,226     $ 137,913  


  Three Months Ended
 March 31,
  2018   2017
Real Property NOI (1) $ 131,745     $ 122,745  
Rental Program NOI (1) 24,159     22,956  
Home Sales NOI (1) / Gross Profit 8,329     6,380  
Ancillary NOI (1) / Gross Profit 1,302     1,551  
Site rent from Rental Program (included in Real Property NOI) (1)(10) (16,309 )   (15,719 )
NOI (1) / Gross profit $ 149,226     $ 137,913  



Non-GAAP and Other Financial Measures


Financial and Operating Highlights                                                                                                           
(amounts in thousands, except for *)

  Quarter Ended
  3/31/2018   12/31/2017   9/30/2017   6/30/2017   3/31/2017
FINANCIAL INFORMATION                  
Total revenues $ 257,916     $ 242,026     $ 268,245     $ 237,899     $ 234,400  
Net income $ 33,601     $ 10,342     $ 28,958     $ 16,974     $ 25,545  
Net income attributable to common stockholders $ 29,986     $ 7,438     $ 24,115     $ 12,364     $ 21,104  
Earnings per share basic* $ 0.38     $ 0.09     $ 0.31     $ 0.16     $ 0.29  
Earnings per share diluted* $ 0.38     $ 0.09     $ 0.31     $ 0.16     $ 0.29  
                   
Recurring EBITDA (1) $ 132,222     $ 119,408     $ 132,524     $ 114,324     $ 122,395  
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) $ 94,976     $ 76,609     $ 86,917     $ 73,202     $ 83,391  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) $ 94,907     $ 81,812     $ 93,757     $ 76,194     $ 85,621  
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) per share - fully diluted* $ 1.14     $ 0.92     $ 1.05     $ 0.92     $ 1.07  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (8) per share - fully diluted* $ 1.14     $ 0.98     $ 1.13     $ 0.96     $ 1.10  
                   
BALANCE SHEETS                  
Total assets $ 6,149,653     $ 6,111,957     $ 6,157,836     $ 6,178,713     $ 5,902,447  
Total debt $ 3,129,440     $ 3,079,238     $ 3,003,427     $ 3,018,653     $ 3,140,547  
Total liabilities $ 3,471,096     $ 3,405,204     $ 3,351,021     $ 3,373,695     $ 3,478,132  


  Quarter Ended
  3/31/2018   12/31/2017   9/30/2017   6/30/2017   3/31/2017
OPERATING INFORMATION*                  
New home sales 106     103     102     81     76  
Pre-owned home sales 731     747     703     720     750  
Total homes sold 837     850     805     801     826  
                   
Communities 350     350     348     344     342  
Developed sites 106,617     106,036     104,359     103,377     102,268  
Transient RV sites 15,693     15,856     15,915     16,187     16,282  
Total sites 122,310     121,892     120,274     119,564     118,550  
                   
MH occupancy 94.7 %   94.6 %   95.2 %   95.1 %   94.8 %
RV occupancy 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
Total blended MH and RV occupancy 95.8 %   95.8 %   96.2 %   96.1 %   95.9 %



Debt Analysis
(amounts in thousands)

...
  Quarter Ended
  3/31/2018   12/31/2017   9/30/2017   6/30/2017   3/31/2017
DEBT OUTSTANDING                  
Mortgage loans payable $ 2,826,225     $ 2,867,356     $ 2,822,640     $ 2,832,819     $ 2,774,645  
  Secured borrowings (4) 124,077     129,182     134,884     139,496     141,671  
Preferred OP units - mandatorily redeemable 37,338     41,443     45,903     45,903     45,903  
Lines of credit (11) 141,800     41,257     -     435     178,328  
Total debt $ 3,129,440     $ 3,079,238     $ 3,003,427     $ 3,018,653     $ 3,140,547  
                   
% FIXED/FLOATING                  
Fixed 90.6 %   93.7 %   94.9 %   94.9 %   89.4 %
Floating 9.4 %   6.3 %   5.1 %   5.1 %   10.6 %
Total 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                   
WEIGHTED AVERAGE INTEREST RATES                  
Mortgage loans payable 4.25 %   4.25 %   4.26 %   4.26 %   4.26 %
Preferred OP units - mandatorily redeemable 6.61 %   6.75 %   6.87 %   6.87 %   6.87 %
Lines of credit (11) 3.01 %   2.79 %   - %   - %   2.52 %
Average before Secured borrowings (4) 4.22 %   4.26 %   4.30 %   4.30 %   4.19 %
Secured borrowings (4) 9.97 %   9.97 %   9.98 %   9.99 %   10.01 %
Total average 4.45 %   4.50 %   4.56 %   4.56 %   4.45 %
                   
DEBT RATIOS                  
Net Debt / Recurring EBITDA (1) (TTM) 6.2     6.3     6.0     6.0     7.0  
Net Debt / Enterprise Value 28.8 %   28.2 %   28.3 %   27.2 %   32.8 %
Net Debt + Preferred Stock / Enterprise Value 29.0 %   28.5 %   29.4 %   28.4 %   34.2 %
Net Debt / Gross Assets 41.9 %   41.8 %   39.0 %   38.0 %   44.8 %
                   
COVERAGE RATIOS