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

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)


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  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