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Sun Communities, Inc. Reports 2020 First Quarter Results and Provides Update on COVID-19 Effects

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Sun Communities, Inc. Reports 2020 First Quarter Results and Provides Update on COVID-19 Effects


NEWS RELEASE

April 22, 2020

Southfield, Michigan, April 22, 2020 (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 first quarter results for 2020 and provided an update on the effects of, and its response to, the COVID-19 pandemic.

Financial Results for the Three Months Ended March 31, 2020

For the three months ended March 31, 2020, total revenues increased $23.0 million, or 8.0 percent, to $310.3 million compared to $287.3 million for the same period in 2019. Net loss attributable to common stockholders was $16.1 million, or $0.17 per diluted common share, for the three months ended March 31, 2020, as compared to net income attributable to common stockholders of $34.3 million, or $0.40 per diluted common share, for the same period in 2019.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations (“Core FFO”)(1) for the three months ended March 31, 2020, was $1.22 per diluted share and OP unit (“Share”) as compared to $1.18 in the prior year, an increase of 3.4 percent.

  • Same Community(2) Net Operating Income (“NOI”)(1) increased by 6.7 percent for the three months ended March 31, 2020, as compared to the corresponding period in 2019.

  • Revenue Producing Sites increased by 300 sites for the three months ended March 31, 2020, bringing total portfolio occupancy to 96.7 percent.

  • MH rent collections for the month of April total approximately 98 percent as of April 21, 2020.

Gary Shiffman, Chief Executive Officer of Sun Communities stated, “We want to convey our best wishes for the health and safety of all of our stakeholders during these unprecedented times. Sun is deeply committed to prioritizing the welfare of its residents, guests and team members every day, and in light of the widespread concern over COVID-19 across the nation, we have re-doubled our efforts. We have moved swiftly to develop a rent deferral program for residents that have been adversely impacted by the pandemic and we have taken decisive measures to reduce controllable expenses and preserve the Company’s financial flexibility.”

Mr. Shiffman continued, “The ultimate impact of disruption from the virus will be determined by the length of time that the COVID-19 pandemic remains a threat and depends on a multitude of variables over which we have no control. It is important to remember the pandemic is not a permanent condition, but a point in time that has dramatically impacted consumers, businesses and travel. We know that with time, this disruption will cease, and we firmly believe the fundamental thesis of manufactured housing communities and recreational vehicle resorts remains intact. We offer unparalleled value to our residents and guests in housing and vacationing options. We are confident Sun is prepared to withstand these challenges and navigate this evolving situation with its strong balance sheet, superior properties and dedicated team members.”

COVID-19 and Impact on Operations

Since the declaration of COVID-19 as a pandemic at the beginning of March, the Company has adopted recommendations and protocols from the Centers for Disease Control, the World Health Organization and federal, state and local authorities where it operates, to ensure the safety and well-being of its team members, residents and guests.

The Company is continuing to provide essential services using social distancing techniques and minimal contact. The Company’s community and resort offices are partially staffed with reduced hours and open for essential services only. To promote social distancing, the Company is encouraging its residents to use its online rent payment portals and other payment methods. Amenities have been closed at the direction of state and local municipalities and to prevent social gathering.

Certain of the Company’s RV resorts remain open, where government regulations permit, however all indoor and outdoor activities have been suspended to encourage social distancing. Forty four RV resorts in the northern United States and Canada, that normally would commence operations in early spring, have had their openings delayed and do not yet have confirmed opening dates from local municipalities.

The Company has implemented measures to mitigate the impact of COVID-19 on the business. These efforts include increasing its cash position, bolstering liquidity and eliminating, reducing or deferring non-essential expenditures. Additionally, the Board of Directors and executive officers have elected to forgo base compensation for at least the second quarter. Cost containment measures have also included the additional furlough of team members and reductions in base compensation for non-furloughed team members. The Company will provide health benefit coverage to furloughed team members, if enrolled, at no cost to the team members.

The impact of stay-at-home orders and travel restrictions is expected to have a significant impact on the Company’s transient RV financial results including a reduction of revenue earned from the rental of sites, ancillary income and fee generation. These reductions, combined with the potential impact on manufactured housing operations and home selling activities, offset by the Company’s implementation of cost saving measures, could have an estimated net reduction for the second quarter of 2020 of $15.0 - $18.0 million from the Company’s original expectations.


OPERATING HIGHLIGHTS

Portfolio Occupancy

Total portfolio occupancy was 96.7 percent at March 31, 2020, compared to 96.4 percent at March 31, 2019.

During the three months ended March 31, 2020, revenue producing sites increased by 300 sites, as compared to an increase of 571 revenue producing sites during the three months ended March 31, 2019.


Same Community(2) Results

For the 367 communities owned and operated by the Company since January 1, 2019, NOI(1) for the three months ended March 31, 2020 increased 6.7 percent over the same period in 2019, as a result of a 5.2 percent increase in revenues and a 1.8 percent increase in operating expenses. Same Community occupancy(3) increased to 98.4 percent at March 31, 2020 from 96.6 percent at March 31, 2019.


Home Sales

During the three months ended March 31, 2020, the Company sold 763 homes as compared to 798 homes sold during the same period in 2019. New home sales volume was 119 and 125 for the three months ended March 31, 2020 and 2019, respectively. Rental home sales volume, which are included in total home sales, were 234 and 210 for the three months ended March 31, 2020 and 2019, respectively.


PORTFOLIO ACTIVITY

Acquisitions

During the three months ended March 31, 2020, the Company acquired the following communities:

Community Name

Type

Sites

Development sites

State

Total Purchase Price (in millions)

Month Acquired

Cape Cod (1)

RV

230

MA

$

13.5

January

Jellystone Natural Bridge

RV

299

VA

$

11.5

February

(1) In conjunction with the acquisition, we issued Series E Preferred Operating Partnership (“OP”) Units. As of March 31, 2020, 90,000 Series E Preferred OP Units were outstanding.


BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

Debt Transactions

During the three months ended March 31, 2020, the Company completed a 15-year, $230.0 million term loan transaction that carries an interest rate of 3.0 percent. The Company repaid a $99.6 million term loan due to mature in 2021 with an interest rate of 5.8 percent. Also, during the quarter, the Company repaid four term loans secured by two properties with a weighted average interest rate of 5.8 percent totaling $19.9 million which were set to mature in 2020.

As of March 31, 2020, the Company had $3.9 billion of debt outstanding. The weighted average interest rate was 3.64 percent and the weighted average maturity was 10.6 years. The Company had $382.5 million of unrestricted cash on hand. At period-end the Company’s net debt to trailing twelve-month Recurring EBITDA(1) ratio was 5.6 times.

2020 Distributions

As previously announced, the Company increased its annual distribution by 5.3 percent to $3.16 per common share from $3.00 per common share. The increase began with the distribution declared in March 2020 that was paid after quarter end. While the Company has adopted the annual distribution policy, the amount of each quarterly distribution on the Company’s common stock will be subject to approval by its Board of Directors.


GUIDANCE 2020 UPDATE

The duration of the unprecedented COVID-19 crisis is unknown and its impact is continually evolving. Given the uncertainty surrounding the impact from the COVID-19 pandemic on its operations, the Company has withdrawn full year 2020 operational and financial guidance previously issued on February 19, 2020.

When the Company has more clarity on the suspension of travel restrictions and stay-at-home orders, it expects to provide updated guidance for the balance of 2020.


EARNINGS CONFERENCE CALL

A conference call to discuss first quarter operating results will be held on Thursday, April 23, 2020 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 May 7, 2020 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 13699860. 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 March 31, 2020, owned, operated, or had an interest in a portfolio of 424 communities comprising nearly 142,000 developed sites in 33 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 the effects of the COVID-19 pandemic and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations; 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 March 31, 2020)



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


Quarter Ended

3/31/2020

12/31/2019

9/30/2019

6/30/2019

3/31/2019

Financial Information

Total revenues

$

310,302

$

301,819

$

362,443

$

312,445

$

287,330

Net income / (loss)

$

(15,478

)

$

30,685

$

64,451

$

45,116

$

37,127

Net Income / (loss) attributable to Sun Communities Inc. common stockholders

$

(16,086

)

$

28,547

$

57,002

$

40,385

$

34,331

Basic earnings / (loss) per share*

$

(0.17

)

$

0.31

$

0.63

$

0.46

$

0.40

Diluted earnings / (loss) per share*

$

(0.17

)

$

0.31

$

0.63

$

0.46

$

0.40

Cash distributions declared per common share*

$

0.79

$

0.75

$

0.75

$

0.75

$

0.75

Recurring EBITDA (1)

$

156,552

$

144,738

$

179,953

$

151,502

$

147,714

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$

95,046

$

105,533

$

119,496

$

108,112

$

106,779

Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)

$

117,267

$

104,534

$

137,369

$

108,002

$

106,259

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted*

$

0.98

$

1.11

$

1.27

$

1.18

$

1.19

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

$

1.22

$

1.10

$

1.46

$

1.18

$

1.18

Balance Sheet

Total assets

$

8,209,047

$

7,802,060

$

7,397,854

$

7,222,084

$

7,098,662

Total debt

$

3,926,494

$

3,434,402

$

3,271,341

$

3,107,775

$

3,448,117

Total liabilities

$

4,346,127

$

3,848,104

$

3,720,983

$

3,542,188

$

3,846,325


Quarter Ended

3/31/2020

12/31/2019

9/30/2019

6/30/2019

3/31/2019

Operating Information*

Communities

424

422

389

382

379

Manufactured home sites

93,834

93,821

88,024

87,555

87,425

Annual RV sites

26,148

26,056

25,756

25,009

24,750

Transient RV sites

21,880

21,416

20,882

20,585

20,173

Total sites

141,862

141,293

134,662

133,149

132,348

MH occupancy

95.8

%

95.5

%

95.7

%

95.7

%

95.4

%

RV occupancy

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Total blended MH and RV occupancy

96.7

%

96.4

%

96.7

%

96.6

%

96.4

%

New home sales

119

140

167

139

125

Pre-owned home sales

644

668

739

788

673

Total home sales

763

808

906

927

798


Quarter Ended

3/31/2020

12/31/2019

9/30/2019

6/30/2019

3/31/2019

Net Leased Sites (24)

MH net leased sites

287

437

296

410

398

RV net leased sites

13

232

470

258

173

Total net leased sites

300

669

766

668

571


Balance Sheets
(amounts in thousands)


(Unaudited)

March 31, 2020

December 31, 2019

Assets

Land

$

1,418,985

$

1,414,279

Land improvements and buildings

6,697,376

6,595,272

Rental homes and improvements

640,709

627,175

Furniture, fixtures and equipment

285,922

282,874

Investment property

9,042,992

8,919,600

Accumulated depreciation

(1,754,591

)

(1,686,980

)

Investment property, net

7,288,401

7,232,620

Cash, cash equivalents and restricted cash

394,740

34,830

Marketable securities

55,602

94,727

Inventory of manufactured homes

64,436

62,061

Notes and other receivables, net

186,692

157,926

Other assets, net

219,176

219,896

Total Assets

$

8,209,047

$

7,802,060

Liabilities

Mortgage loans payable

$

3,273,808

$

3,180,592

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

35,249

Preferred OP units - mandatorily redeemable

34,663

34,663

Lines of credit (5)

582,774

183,898

Distributions payable

75,636

71,704

Advanced reservation deposits and rent

151,144

133,420

Accrued expenses and accounts payable

110,512

127,289

Other liabilities

82,341

81,289

Total Liabilities

4,346,127

3,848,104

Commitments and contingencies

Series D preferred OP units

50,387

50,913

Equity Interests - NG Sun LLC and NG Whitewater

26,063

27,091

Stockholders' Equity

Common stock

933

932

Additional paid-in capital

5,211,678

5,213,264

Accumulated other comprehensive loss

(8,325

)

(1,331

)

Distributions in excess of accumulated earnings

(1,479,424

)

(1,393,141

)

Total Sun Communities, Inc. stockholders' equity

3,724,862

3,819,724

Noncontrolling interests

Common and preferred OP units

52,234

47,686

Consolidated variable interest entities

9,374

8,542

Total noncontrolling interests

61,608

56,228

Total Stockholders' Equity

3,786,470

3,875,952

Total Liabilities, Temporary Equity and Stockholders' Equity

$

8,209,047

$

7,802,060



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


Three Months Ended

March 31, 2020

March 31, 2019

Change

% Change

Revenues

Income from real property (excluding transient revenue)

$

212,530

$

190,565

$

21,965

11.5

%

Transient revenue

25,255

24,518

737

3.0

%

Revenue from home sales

40,587

39,618

969

2.4

%

Rental home revenue

15,472

13,971

1,501

10.7

%

Ancillary revenue

10,195

10,178

17

0.2

%

Interest income

2,350

4,800

(2,450

)

(51.0

)%

Brokerage commissions and other revenues, net

3,913

3,680

233

6.3

%

Total Revenues

310,302

287,330

22,972

8.0

%

Expenses

Property operating and maintenance

64,057

57,909

6,148

10.6

%

Real estate taxes

17,176

15,330

1,846

12.0

%

Cost of home sales

30,032

29,277

755

2.6

%

Rental home operating and maintenance

5,494

4,832

662

13.7

%

Ancillary expenses

7,482

7,101

381

5.4

%

Home selling expenses

3,992

3,324

668

20.1

%

General and administrative expenses

25,517

21,887

3,630

16.6

%

Catastrophic weather-related charges, net

606

782

(176

)

(22.5

)%

Depreciation and amortization

83,689

76,556

7,133

9.3

%

Loss on extinguishment of debt

3,279

653

2,626

402.1

%

Interest expense

32,416

34,014

(1,598

)

(4.7

)%

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,094

(53

)

(4.8

)%

Total Expenses

274,781

252,759

22,022

8.7

%

Income Before Other Items

35,521

34,571

950

2.7

%

Gain / (loss) on remeasurement of marketable securities

(28,647

)

267

(28,914

)

N/M (a)

Gain / (loss) on foreign currency translation

(17,479

)

1,965

(19,444

)

N/M (a)

Other expense, net (6)

(302

)

(67

)

(235

)

350.7

%

Loss on remeasurement of notes receivable

(2,112

)

(2,112

)

N/A

Income from nonconsolidated affiliates

52

388

(336

)

(86.6

)%

Loss on remeasurement of investment in nonconsolidated affiliates

(2,191

)

(2,191

)

N/A

Current tax expense

(450

)

(214

)

(236

)

110.3

%

Deferred tax benefit

130

217

(87

)

(40.1

)%

Net Income / (Loss)

(15,478

)

37,127

(52,605

)

(141.7

)%

Less: Preferred return to preferred OP units / equity

1,570

1,323

247

18.7

%

Less: Income / (loss) attributable to noncontrolling interests

(962

)

1,041

(2,003

)

(192.4

)%

Net Income / (Loss) Attributable to Sun Communities, Inc.

(16,086

)

34,763

(50,849

)

(146.3

)%

Less: Preferred stock distribution

432

(432

)

(100.0

)%

Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders

$

(16,086

)

$

34,331

$

(50,417

)

(146.9

)%

Weighted average common shares outstanding - basic

92,410

85,520

6,890

8.1

%

Weighted average common shares outstanding - diluted

92,935

86,033

6,902

8.0

%

Basic earnings / (loss) per share

$

(0.17

)

$

0.40

$

(0.57

)

(142.5

)%

Diluted earnings / (loss) per share

$

(0.17

)

$

0.40

$

(0.57

)

(142.5

)%

(a) Percentage change is not meaningful, (“N/M”)


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

Outstanding Securities - As of March 31, 2020

Number of Units/Shares Outstanding

Conversion Rate*

If Converted

Issuance Price per unit*

Annual Distribution Rate*

Non-convertible Securities

Common shares

93,327

N/A

N/A

N/A

$3.16^

Convertible Securities

Series A-1 preferred OP units

303

2.4390

738

$

100

6.0

%

Series A-3 preferred OP units

40

1.8605

75

$

100

4.5

%

Series C preferred OP units

310

1.1100

345

$

100

4.5

%

Series D preferred OP units

489

0.8000

391

$

100

3.8

%

Series E preferred OP units

90

0.6897

62

$

100

5.25

%

Common OP units

2,408

1.0000

2,408

N/A

Mirrors common shares distributions

^ Annual distribution is based on the last quarterly distribution annualized.


Capitalization - As of March 31, 2020

Equity

Shares

Share Price*

Total

Common shares

93,327

$

124.85

$

11,651,876

Common OP units

2,408

$

124.85

300,639

Subtotal

95,735

$

11,952,515

Series A-1 preferred OP units

738

$

124.85

$

92,139

Series A-3 preferred OP units

75

$

124.85

9,364

Series C preferred OP units

345

$

124.85

43,073

Series D preferred OP units

391

$

124.85

48,816

Series E preferred OP units

62

$

124.85

7,741

Total diluted shares outstanding

97,346

$

12,153,648

Debt

Mortgage loans payable

$

3,273,808

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

Preferred OP units - mandatorily redeemable

34,663

Lines of credit (5)

582,774

Total debt

$

3,926,494

Total Capitalization

$

16,080,142


Reconciliations to Non-GAAP Financial Measures


Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to FFO(1)
(amounts in thousands except for per share data)


Three Months Ended

March 31, 2020

March 31, 2019

Net Income / (Loss) Attributable To Sun Communities, Inc. Common Stockholders

$

(16,086

)

$

34,331

Adjustments

Depreciation and amortization

83,752

76,712

(Gain) / loss on remeasurement of marketable securities

28,647

(267

)

Loss on remeasurement of investment in nonconsolidated affiliates

2,191

Loss on remeasurement of notes receivable

2,112

Income / (loss) attributable to noncontrolling interests

(882

)

723

Preferred return to preferred OP units

874

527

Preferred distribution to Series A-4 preferred stock

432

Gain on disposition of assets, net

(5,562

)

(5,679

)

FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities (1) (7)

$

95,046

$

106,779

Adjustments

Other acquisition related costs (8)

385

160

Loss on extinguishment of debt

3,279

653

Catastrophic weather-related charges, net

606

782

Loss of earnings - catastrophic weather related (9)

300

(Gain) / loss on foreign currency translation

17,479

(1,965

)

Other expense, net (6)

302

67

Deferred tax benefits

(130

)

(217

)

Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible
Securities (1) (7)

$

117,267

$

106,259

Weighted average common shares outstanding - basic

92,410

85,520

Add

Common OP units

2,412

2,722

Common stock issuable upon conversion of stock options

1

1

Restricted stock

524

512

Common stock issuable upon conversion of Series A-3 preferred OP units

75

75

Common stock issuable upon conversion of Series A-1 preferred OP units

746

803

Common stock issuable upon conversion of Series C preferred OP units

345

Common stock issuable upon conversion of Series A-4 preferred stock

472

Weighted Average Common Shares Outstanding - Fully Diluted

96,513

90,105

FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities (1) (7) Per Share - Fully Diluted

$

0.98

$

1.19

Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities (1) (7) Per Share - Fully Diluted

$

1.22

$

1.18



Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA (1)
(amounts in thousands)


Three Months Ended

March 31, 2020

March 31, 2019

Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders

$

(16,086

)

$

34,331

Adjustments

Depreciation and amortization

83,689

76,556

Loss on extinguishment of debt

3,279

653

Interest expense

32,416

34,014

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,094

Current tax expense

450

214

Deferred tax benefit

(130

)

(217

)

Income from nonconsolidated affiliates

(52

)

(388

)

Less: Gain on dispositions of assets, net

(5,562

)

(5,679

)

EBITDAre (1)

$

99,045

$

140,578

Adjustments

Catastrophic weather related charges, net

606

782

(Gain) / loss on remeasurement of marketable securities

28,647

(267

)

(Gain) / loss on foreign currency translation

17,479

(1,965

)

Other expense, net (6)

302

67

Loss on remeasurement of notes receivable

2,112

Loss on remeasurement of investment in nonconsolidated affiliates

2,191

Preferred return to preferred OP units / equity

1,570

1,323

Income / (loss) attributable to noncontrolling interests

(962

)

1,041

Preferred stock distribution

432

Plus: Gain on dispositions of assets, net

5,562

5,679

Recurring EBITDA (1)

$

156,552

$

147,670



Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to NOI (1)
(amounts in thousands)


Three Months Ended

March 31, 2020

March 31, 2019

Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders

$

(16,086

)

$

34,331

Other revenues

(6,263

)

(8,480

)

Home selling expenses

3,992

3,324

General and administrative expenses

25,517

21,887

Catastrophic weather-related charges, net

606

782

Depreciation and amortization

83,689

76,556

Loss on extinguishment of debt

3,279

653

Interest expense

32,416

34,014

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,094

(Gain) / loss on remeasurement of marketable securities

28,647

(267

)

(Gain) / loss on foreign currency translation

17,479

(1,965

)

Other expense, net (6)

302

67

Loss on remeasurement of notes receivable

2,112

Income from nonconsolidated affiliates

(52

)

(388

)

Loss on remeasurement of investment in nonconsolidated affiliates

2,191

Current tax expense

450

214

Deferred tax benefit

(130

)

(217

)

Preferred return to preferred OP units / equity

1,570

1,323

Income / (loss) attributable to noncontrolling interests

(962

)

1,041

Preferred stock distribution

432

NOI (1) / Gross Profit

$

179,798

$

164,401


Three Months Ended

March 31, 2020

March 31, 2019

Real Property NOI (1)

$

156,552

$

141,844

Home Sales NOI (1) / Gross Profit

10,555

10,341

Rental Program NOI (1)

27,985

26,017

Ancillary NOI (1) / Gross Profit

2,713

3,077

Site rent from Rental Program (included in Real Property NOI) (1) (10)

(18,007

)

(16,878

)

NOI (1) / Gross Profit

$

179,798

$

164,401



Non-GAAP and Other Financial Measures


Debt Analysis
(amounts in thousands)


Quarter Ended

3/31/2020

12/31/2019

9/30/2019

6/30/2019

3/31/2019

Debt Outstanding

Mortgage loans payable

$

3,273,808

$

3,180,592

$

2,967,128

$

2,863,485

$

2,879,017

Secured borrowings on collateralized receivables (4)

93,669

98,299

102,676

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

35,249

35,249

35,249

35,249

Preferred OP units - mandatorily redeemable

34,663

34,663

34,663

34,663

34,663

Lines of credit (5)

582,774

183,898

140,632

76,079

396,512

Total debt

$

3,926,494

$

3,434,402

$

3,271,341

$

3,107,775

$

3,448,117

% Fixed / Floating

Fixed

85.2

%

94.7

%

95.7

%

97.6

%

88.5

%

Floating

14.8

%

5.3

%

4.3

%

2.4

%

11.5

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Weighted Average Interest Rates

Mortgage loans payable

3.91

%

4.05

%

4.13

%

4.24

%

4.24

%

Preferred Equity - Sun NG Resorts - mandatorily redeemable

6.00

%

6.00

%

6.00

%

6.00

%

6.00

%

Preferred OP units - mandatorily redeemable

5.93

%

6.50

%

6.50

%

6.50

%

6.50

%

Lines of credit (5)

1.85

%

2.71

%

3.23

%

3.34

%

3.73

%

Average before secured borrowings (4)

3.64

%

4.03

%

4.14

%

4.27

%

4.22