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Sun Communities, Inc. Reports 2019 Second Quarter Results


Southfield, MI, July 24, 2019 (GLOBE NEWSWIRE) --  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 second quarter results for 2019.

Financial Results for the Quarter and Six Months Ended June 30, 2019

For the quarter ended June 30, 2019, total revenues increased $41.0 million, or 15.1 percent, to $312.4 million compared to $271.4 million for the same period in 2018. Net income attributable to common stockholders was $40.4 million, or $0.46 per diluted common share, for the quarter ended June 30, 2019, as compared to net income attributable to common stockholders of $20.4 million, or $0.25 per diluted common share, for the same period in 2018.

For the six months ended June 30, 2019, total revenues increased $70.4 million or 13.3 percent, to $599.8 million compared to $529.4 million for the same period in 2018. Net income attributable to common stockholders was $74.7 million, or $0.86 per diluted common share, for the six months ended June 30, 2019, as compared to net income attributable to common stockholders of $50.4 million, or $0.63 per diluted common share, for the same period in 2018.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations (“Core FFO”)(1) for the quarter ended June 30, 2019, was $1.18 per diluted share and OP unit (“Share”) as compared to $1.07 in the prior year, an increase of 10.3 percent.
     
  • Same Community(2) Net Operating Income (“NOI”)(1) increased by 7.2 percent for the quarter ended June 30, 2019, as compared to the same period in 2018.
     
  • Revenue Producing Sites increased to 668 sites for the quarter ended June 30, 2019 bringing total portfolio occupancy to 96.6 percent.

Gary Shiffman, Chief Executive Officer of Sun Communities stated, “During the second quarter, robust demand across our Manufactured Housing communities and RV resorts, combined with a best in class operating platform allowed us to deliver another quarter of strong performance.  With better than expected same community NOI growth of 7.2 percent as well as Core FFO per share growth of 10.3 percent, we are pleased to announce guidance increases for full year 2019 in these two metrics. Our balance sheet is well-positioned and we have the necessary liquidity to continue to fund Sun’s growth. We continue to execute on our core growth initiatives and remain optimistic about our outlook in both the near and long term.”


OPERATING HIGHLIGHTS

Community Occupancy

Total portfolio occupancy was 96.6 percent at June 30, 2019, compared to 96.1 percent at June 30, 2018. During the quarter ended June 30, 2019, revenue producing sites increased to 668 sites, as compared to 634 revenue producing sites gained during the second quarter of 2018, a 5.4 percent increase.

During the six months ended June 30, 2019, revenue producing sites increased by 1,239 sites, as compared to an increase of 1,250 revenue producing sites during the six months ended June 30, 2018.


Same Community(2) Results

For the 345 communities owned and operated by the Company since January 1, 2018, NOI(1) for the quarter ended June 30, 2019, increased 7.2 percent over the same period in 2018, as a result of a 6.4 percent increase in revenues and a 4.7 percent increase in operating expenses. Same Community occupancy(3) increased to 98.2 percent at June 30, 2019 from 96.2 percent at June 30, 2018.

For the six months ended June 30, 2019, total revenues increased by 6.2 percent while total expenses increased by 3.9 percent, resulting in an increase to NOI(1) of 7.2 percent over the six months ended June 30, 2018.


Home Sales

During the quarter ended June 30, 2019, the Company sold 927 homes as compared to 943 homes sold during the same period in 2018. Rental home sales, which are included in total home sales, were 332 in 2019, an increase of 20.7 percent over the 275 sold during 2018.

During the six months ended June 30, 2019, 1,725 homes were sold compared to 1,780 for the same period in 2018. Rental home sales, which are included in total home sales, were 542 in 2019, an increase of 6.5 percent over the 509 sold during 2018.


PORTFOLIO ACTIVITY

Acquisitions

During the quarter ended June 30, 2019, the Company acquired a 309 site RV resort in Sevierville, Tennessee for a purchase price of $23.0 million and an RV resort located in Strafford, New Hampshire for a purchase price of $2.7 million.

Subsequent to the quarter ended June 30, 2019, the Company acquired a RV resort located in Ponchatoula, Louisiana with 202 developed sites and 69 expansion sites for a purchase price of $23.5 million.

Ground-up Development

During the quarter ended June 30, 2019, the Company opened 281 sites of the ground-up development, Carolina Pines RV Resort in Myrtle Beach, South Carolina. The remaining phases of 565 sites for 846 total developed sites are expected to be completed in 2019 and 2020.


BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

Debt Transactions

As of June 30, 2019, the Company had $3.1 billion of debt outstanding. The weighted average interest rate was 4.4 percent and the weighted average maturity was 9.9 years. The Company had $28.7 million of unrestricted cash on hand. At period-end the Company’s net debt to trailing twelve month Recurring EBITDA(1) ratio was 5.2 times.

During the quarter, the Company amended and restated its credit agreement with Citibank, N.A. and certain other lenders. Pursuant to the agreement, the Company can borrow up to $750.0 million under the senior credit facility comprised of a $650.0 million revolving loan, with the ability to use up to $100.0 million for advances in Australian dollars, and a $100.0 million term loan. As of June 30, 2019 the Company has not drawn any funds on the term loan.

Equity Transactions

During the quarter ended June 30, 2019, the Company closed an underwritten registered public offering of 3,737,500 shares of common stock. Proceeds from the offering were $452.1 million after deducting expenses related to the offering. The Company used the net proceeds of this offering to repay borrowings under the revolving loan under its senior credit facility.


GUIDANCE 2019

The Company is revising its 2019 guidance for the following metrics:

    Previous Range
 FY 2019E
  Revised Range
FY 2019E
  3Q 2019E
Net Income per fully diluted share   $1.61 - $1.71   $1.81 - $1.87   $0.66 - $0.69
Core FFO (1) per fully diluted share   $4.80 - $4.88   $4.84 - $4.90   $1.43 - $1.46

Same Community(2) Portfolio
Number of communities: 345

  2019E Change %
Income from real property 6.0% - 6.2%
Total property operating expenses 4.1% - 4.7%
Net operating income (1) 6.6% - 7.2%

Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions and 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 second quarter operating results will be held on Thursday, July 25, 2019 at 11:00 A.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 August 8, 2019 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 13691366. The conference call will be available live on Sun Communities’ website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of June 30, 2019, owned, operated, or had an interest in a portfolio of 382 communities comprising over 133,000 developed sites in 31 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 to (248) 208-2500, by email to investorrelations@suncommunities.com or by mail to 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
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 June 30, 2019)

 

Balance Sheets                                                                                                                                              
(amounts in thousands)


    6/30/2019   12/31/2018
ASSETS        
Land   $ 1,286,952     $ 1,201,945  
Land improvements and buildings   6,026,193     5,586,250  
Rental homes and improvements   599,150     571,661  
Furniture, fixtures and equipment   215,610     201,090  
Investment property   8,127,905     7,560,946  
Accumulated depreciation   (1,560,061 )   (1,442,630 )
Investment property, net   6,567,844     6,118,316  
Cash and cash equivalents   28,704     50,311  
Marketable securities   53,553     49,037  
Inventory of manufactured homes   55,869     49,199  
Notes and other receivables, net   164,303     160,077  
Collateralized receivables, net (4)   97,658     106,924  
Other assets, net   254,153     176,162  
TOTAL ASSETS   $ 7,222,084     $ 6,710,026  
LIABILITIES        
Mortgage loans payable   $ 2,863,485     $ 2,815,957  
Secured borrowings on collateralized receivables (4)   98,299     107,731  
Preferred Equity - Sun NG Resorts - mandatorily redeemable   35,249     35,277  
Preferred OP units - mandatorily redeemable   34,663     37,338  
Lines of credit (5)   76,079     128,000  
Distributions payable   69,719     63,249  
Advanced reservation deposits and rent   160,527     133,698  
Other liabilities   204,167     157,862  
TOTAL LIABILITIES   3,542,188     3,479,112  
Commitments and contingencies        
Series A-4 preferred stock   31,402     31,739  
Series A-4 preferred OP units   9,590     9,877  
Series D preferred OP units   51,462      
Equity Interests - NG Sun LLC   22,099     21,976  
STOCKHOLDERS' EQUITY        
Common stock   907     864  
Additional paid-in capital   4,851,323     4,398,949  
Accumulated other comprehensive loss   (1,184 )   (4,504 )
Distributions in excess of accumulated earnings   (1,343,792 )   (1,288,486 )
Total Sun Communities, Inc. stockholders' equity   3,507,254     3,106,823  
Noncontrolling interests        
Common and preferred OP units   50,880     53,354  
Consolidated variable interest entities   7,209     7,145  
Total noncontrolling interests   58,089     60,499  
TOTAL STOCKHOLDERS' EQUITY   3,565,343     3,167,322  
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY   $ 7,222,084     $ 6,710,026  



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


  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   Change   % Change   June 30, 2019   June 30, 2018   Change   % Change
REVENUES                              
Income from real property (excluding transient revenue) $ 195,503     $ 177,080     $ 18,423     10.4 %   $ 386,067     $ 352,290     $ 33,777     9.6 %
Transient revenue 30,596     21,590     9,006     41.7 %   56,811     43,591     13,220     30.3 %
Revenue from home sales 47,242     41,217     6,025     14.6 %   86,860     76,117     10,743     14.1 %
Rental home revenue 14,412     13,348     1,064     8.0 %   28,383     26,368     2,015     7.6 %
Ancillary revenue 17,265     12,031     5,234     43.5 %   25,747     18,599     7,148     38.4 %
Interest income 4,919     5,277     (358 )   (6.8 )%   9,719     10,593     (874 )   (8.3 )%
Brokerage commissions and other revenues, net 2,508     891     1,617     181.5 %   6,188     1,851     4,337     234.3 %
Total Revenues 312,445     271,434     41,011     15.1 %   599,775     529,409     70,366     13.3 %
EXPENSES                              
Property operating and maintenance 65,888     58,691     7,197     12.3 %   123,797     110,321     13,476     12.2 %
Real estate taxes 15,726     14,076     1,650     11.7 %   31,056     27,912     3,144     11.3 %
Cost of home sales 34,435     30,932     3,503     11.3 %   63,712     57,503     6,209     10.8 %
Rental home operating and maintenance 5,091     5,315     (224 )   (4.2 )%   9,879     10,542     (663 )   (6.3 )%
Ancillary expenses 12,480     8,241     4,239     51.4 %   19,581     13,624     5,957     43.7 %
Home selling expenses 3,626     3,986     (360 )   (9.0 )%   6,950     7,276     (326 )   (4.5 )%
General and administrative 23,697     21,452     2,245     10.5 %   45,584     41,209     4,375     10.6 %
Catastrophic weather related charges, net 179     53     126     237.7 %   961     (2,160 )   3,121     (144.5 )%
Depreciation and amortization 76,153     67,773     8,380     12.4 %   152,709     134,210     18,499     13.8 %
Loss on extinguishment of debt 70     1,522     (1,452 )   (95.4 )%   723     1,718     (995 )   (57.9 )%
Interest expense 33,661     32,260     1,401     4.3 %   67,675     63,398     4,277     6.7 %
Interest on mandatorily redeemable preferred OP units / equity 1,181     790     391     49.5 %   2,275     1,409     866     61.5 %
Total Expenses 272,187     245,091     27,096     11.1 %   524,902     466,962     57,940     12.4 %
Income Before Other Items 40,258     26,343     13,915     52.8 %   74,873     62,447     12,426     19.9 %
Remeasurement of marketable securities 3,620         3,620     N/A   3,887         3,887     N/A
Other income / (expense), net (6) 1,021     (1,828 )   2,849     155.9 %   2,919     (4,445 )   7,364     (165.7 )%
Income / (loss) from nonconsolidated affiliates 393     (8 )   401     5,012.5 %   737     (67 )   804     (1,200.0 )%
Current tax expense (272 )   (225 )   (47 )   (20.9 )%   (486 )   (399 )   (87 )   21.8 %
Deferred tax benefit / (expense) 96     (112 )   208     (185.7 )%   313     235     78     33.2 %
Net Income 45,116     24,170     20,946     86.7 %   82,243     57,771     24,472     42.4 %
Less: Preferred return to preferred OP units / equity (1,718 )   (1,103 )   (615 )   55.8 %   (3,041 )   (2,183 )   (858 )   39.3 %
Less: Amounts attributable to noncontrolling interests (2,585 )   (2,227 )   (358 )   16.1 %   (3,626 )   (4,321 )   695     (16.1 )%
Net Income Attributable to Sun Communities, Inc. 40,813     20,840     19,973     95.8 %   75,576     51,267     24,309     47.4 %
Less: Preferred stock distribution (428 )   (432 )   4     (0.9 )%   (860 )   (873 )   13     (1.5 )%
Net Income Attributable to Sun Communities, Inc. Common Stockholders $ 40,385     $ 20,408     $ 19,977     97.9 %   $ 74,716     $ 50,394     $ 24,322     48.3 %
                               
Weighted average common shares outstanding                              
Basic 87,130     79,612     7,518     9.4 %   86,325     79,233     7,092     9.0 %
Diluted 87,564     80,116     7,448     9.3 %   86,770     79,905     6,865     8.6 %
Earnings per share:                              
Basic $ 0.46     $ 0.25     $ 0.21     84.0 %   $ 0.86     $ 0.63     $ 0.23     36.5 %
Diluted $ 0.46     $ 0.25     $ 0.21     84.0 %   $ 0.86     $ 0.63     $ 0.23     36.5 %


Outstanding Securities and Capitalization 
(amounts in thousands except for *)

Outstanding Securities - As of June 30, 2019
                   
  Number of Units/Shares Outstanding   Conversion Rate*   If Converted   Issuance Price per unit*   Annual Distribution Rate*
Non-convertible securities                  
Common shares 90,667   N/A   N/A   N/A   $3.00^
                   
Convertible securities                  
Series A-1 preferred OP units 324   2.4390   790   $ 100   6.0 %
Series A-3 preferred OP units 40   1.8605   74   $ 100   4.5 %
Series A-4 preferred OP units 406   0.4444   180   $ 25   6.5 %
Series C preferred OP units 314   1.1100   349   $ 100   4.5 %
Series D preferred OP units 489   0.8000   391   $ 100   3.8 %
Common OP units 2,289   1.0000   2,289   N/A   Mirrors common shares distributions
Series A-4 preferred stock 1,052   0.4444   468   $ 25   6.5 %
^ Annual distribution is based on the last quarterly distribution annualized.


Capitalization - As of June 30, 2019            
             
Equity   Shares   Share Price*   Total
Common shares   90,667     $ 128.19     $ 11,622,603  
Common OP units   2,289     $ 128.19     293,427  
Subtotal   92,956         $ 11,916,030  
             
Series A-1 preferred OP units   790     $ 128.19     101,270  
Series A-3 preferred OP units   74     $ 128.19     9,486  
Series A-4 preferred OP units   180     $ 128.19     23,074  
Series C preferred OP units   349     $ 128.19     44,738  
Series D preferred OP units   391     $ 128.19     50,122  
Total diluted shares outstanding   94,740         $ 12,144,720  
 
Debt
Mortgage loans payable           $ 2,863,485  
Secured borrowings (4)           98,299  
Preferred Equity - Sun NG Resorts - mandatorily redeemable           35,249  
Preferred OP units - mandatorily redeemable           34,663  
Lines of credit (5)           76,079  
Total debt           $ 3,107,775  
 
Preferred
Series A-4 preferred stock   1,052     $ 25.00     $ 26,300  
Total Capitalization           $ 15,278,795  


Reconciliations to Non-GAAP Financial Measures


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


  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Net income attributable to Sun Communities, Inc. common stockholders $ 40,385     $ 20,408     $ 74,716     $ 50,394  
Adjustments              
Depreciation and amortization 76,294     67,977     153,006     134,623  
Remeasurement of marketable securities (3,620 )       (3,887 )    
Amounts attributable to noncontrolling interests 2,158     2,089     2,881     3,978  
Preferred return to preferred OP units 537     552     1,064     1,105  
Preferred distribution to Series A-4 preferred stock 428     432     860     873  
Gain on disposition of assets, net (8,070 )   (5,835 )   (13,749 )   (10,374 )
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$ 108,112     $ 85,623     $ 214,891     $ 180,599  
Adjustments              
Other acquisition related costs (8) 366     301     526     436  
Loss on extinguishment of debt 70     1,522     723     1,718  
Catastrophic weather related charges, net 194     53     976     (2,160 )
Loss of earnings - catastrophic weather related (9) 377     325     377     650  
Other (income) / expense (6) (1,021 )   1,828     (2,919 )   4,445  
Debt premium write-off     (209 )       (991 )
Ground lease intangible write-off     817         817  
Deferred tax (benefit) / expense (96 )   112     (313 )   (235 )
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$ 108,002     $ 90,372     $ 214,261     $ 185,279  
               
Weighted average common shares outstanding - basic 87,130     79,612     86,325     79,233  
Add              
Common stock issuable upon conversion of stock options 1     2     1     2  
Restricted stock 433     502     444     670  
Common OP units 2,487     2,735     2,605     2,738  
Common stock issuable upon conversion of Series A-4 preferred stock 467     472     467     472  
Common stock issuable upon conversion of Series A-3 preferred OP units 75     75     75     75  
Common stock issuable upon conversion of Series A-1 preferred OP units 793     825     798     831  
Weighted average common shares outstanding - fully diluted 91,386     84,223     90,715     84,021  
               
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted

$ 1.18     $ 1.02     $ 2.37     $ 2.15  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted

$ 1.18     $ 1.07     $ 2.36     $ 2.21  


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


  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Net income attributable to Sun Communities, Inc., common stockholders $ 40,385     $ 20,408     $ 74,716     $ 50,394  
Adjustments              
Interest expense 34,842     33,050     69,950     64,807  
Loss on extinguishment of debt 70     1,522     723     1,718  
Current tax expense 272     225     486     399  
Deferred tax  (benefit) / expense (96 )   112     (313 )   (235 )
(Income) / loss from nonconsolidated affiliates (393 )   8     (737 )   67  
Depreciation and amortization 76,153     67,773     152,709     134,210  
Gain on disposition of assets, net (8,070 )   (5,835 )   (13,749 )   (10,374 )
EBITDAre (1) $ 143,163     $ 117,263     $ 283,785     $ 240,986  
Adjustments              
Remeasurement of marketable securities (3,620 )       (3,887 )    
Other (income) / expense, net (6) (1,021 )   1,828     (2,919 )   4,445  
Catastrophic weather related charges, net 179     53     961     (2,160 )
Preferred return to preferred OP units / equity 1,718     1,103     3,041     2,183  
Amounts attributable to noncontrolling interests 2,585     2,227     3,626     4,321  
Preferred stock distribution 428     432     860     873  
Plus: Gain on dispositions of assets, net 8,070     5,835     13,749     10,374  
Recurring EBITDA (1) $ 151,502     $ 128,741     $ 299,216     $ 261,022  



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


  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Net income attributable to Sun Communities, Inc., common stockholders $ 40,385     $ 20,408     $ 74,716     $ 50,394  
Other revenues (7,427 )   (6,168 )   (15,907 )   (12,444 )
Home selling expenses 3,626     3,986     6,950     7,276  
General and administrative 23,697     21,452     45,584     41,209  
Catastrophic weather related charges, net 179     53     961     (2,160 )
Depreciation and amortization 76,153     67,773     152,709     134,210  
Loss on extinguishment of debt 70     1,522     723     1,718  
Interest expense 34,842     33,050     69,950     64,807  
Remeasurement of marketable securities (3,620 )       (3,887 )    
Other (income) / expense, net (6) (1,021 )   1,828     (2,919 )   4,445  
(Income) / loss from nonconsolidated affiliates (393 )   8     (737 )   67  
Current tax expense 272     225     486     399  
Deferred tax  (benefit) / expense (96 )   112     (313 )   (235 )
Preferred return to preferred OP units / equity 1,718     1,103     3,041     2,183  
Amounts attributable to noncontrolling interests 2,585     2,227     3,626     4,321  
Preferred stock distribution 428     432     860     873  
NOI(1) / Gross Profit $ 171,398     $ 148,011     $ 335,843     $ 297,063  


  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Real Property NOI (1) $ 144,485     $ 125,903     $ 288,025     $ 257,648  
Rental Program NOI (1) 26,499     24,572     52,560     48,674  
Home Sales NOI (1) / Gross Profit 12,807     10,285     23,148     18,614  
Ancillary NOI (1) / Gross Profit 4,785     3,790     6,166     4,975  
Site rent from Rental Program (included in Real Property NOI) (1)(10) (17,178 )   (16,539 )   (34,056 )   (32,848 )
NOI (1) / Gross profit $ 171,398     $ 148,011     $ 335,843     $ 297,063  



Non-GAAP and Other Financial Measures


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


  Quarter Ended
  6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
Financial Information                  
Total revenues $ 312,445     $ 287,330     $ 274,004     $ 323,538     $ 271,426  
Net income $ 45,116     $ 37,127     $ 10,672     $ 51,715     $ 24,170  
Net income attributable to Sun Communities Inc. $ 40,385     $ 34,331     $ 9,039     $ 46,060     $ 20,408  
Earnings per share basic* $ 0.46     $ 0.40     $ 0.11     $ 0.56     $ 0.25  
Earnings per share diluted* $ 0.46     $ 0.40     $ 0.11     $ 0.56     $ 0.25  
                   
Cash distributions declared per common share* $ 0.75     $ 0.75     $ 0.71     $ 0.71     $ 0.71  
                   
Recurring EBITDA (1) $ 151,502     $ 147,714     $ 133,335     $ 158,129     $ 128,741  
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$ 108,112     $ 106,779     $ 88,562     $ 117,018     $ 85,623  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$ 108,002     $ 106,259     $ 92,695     $ 116,959     $ 90,372  
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted* $ 1.18     $ 1.19     $ 0.98     $ 1.35     $ 1.02  
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted* $ 1.18     $ 1.18     $ 1.03     $ 1.35     $ 1.07  
                   
Balance Sheet
                 
Total assets $ 7,222,084     $ 7,098,662     $ 6,710,026     $ 6,653,726     $ 6,492,348  
Total debt $ 3,107,775     $ 3,448,117     $ 3,124,303     $ 3,004,929     $ 3,364,081  
Total liabilities $ 3,542,188     $ 3,846,325     $ 3,479,112     $ 3,367,285     $ 3,736,621  


  Quarter Ended
  6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
Operating Information*                  
New home sales 139     125     140     146     134  
Pre-owned home sales 788     673     738     825     809  
Total homes sold 927     798     878     971     943  
                   
Communities 382     379     371     370     367  
                   
Developed sites 112,564     112,175     108,963     108,142     107,192  
Transient RV sites 20,585     20,173     19,491     19,432     19,007  
Total sites 133,149     132,348     128,454     127,574     126,199  
                   
MH occupancy 95.7 %   95.4 %   95.0 %   94.9 %   95.0 %
RV occupancy 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
Total blended MH and RV occupancy 96.6 %   96.4 %   96.1 %   96.1 %   96.1 %



Debt Analysis
(amounts in thousands)


...
  Quarter Ended
  6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
DEBT OUTSTANDING                  
Mortgage loans payable $ 2,863,485     $ 2,879,017     $ 2,815,957     $ 2,819,225     $ 2,636,847  
Secured borrowings on collateralized receivables (4) 98,299     102,676     107,731     113,089     118,242  
Preferred Equity - Sun NG Resorts - mandatorily redeemable 35,249     35,249     35,277     35,277     35,277  
Preferred OP units - mandatorily redeemable 34,663     34,663     37,338     37,338     37,338  
Lines of credit (5) 76,079     396,512     128,000         536,377  
Total debt $ 3,107,775     $ 3,448,117     $ 3,124,303     $ 3,004,929     $ 3,364,081  
                   
% FIXED/FLOATING                  
Fixed 97.6 %   88.5 %   95.9 %   100.0 %   84.0 %
Floating 2.4 %   11.5 %   4.1 %   %   16.0 %
Total 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                   
WEIGHTED AVERAGE INTEREST RATES                  
Mortgage loans payable 4.24 %   4.24 %   4.22 %   4.23 %