Sun Communities, Inc. Reports 2021 First Quarter Results

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Southfield, MI, April 26, 2021 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") communities, recreational vehicle ("RV") resorts and marinas, (collectively, the "properties"), today reported its first quarter results for 2021.

Financial Results for the Quarter Ended March 31, 2021

For the quarter ended March 31, 2021, total revenues increased $131.7 million, or 42.4 percent, to approximately $442.0 million compared to $310.3 million for the same period in 2020. Net income attributable to common stockholders was $24.8 million, or $0.23 per diluted common share, for the quarter ended March 31, 2021, as compared to net loss attributable to common stockholders of $16.1 million, or $0.17 per diluted common share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations ("Core FFO")(1) for the quarter ended March 31, 2021, was $1.26 per diluted share and OP unit ("Share") as compared to $1.22 in the corresponding period in 2020, a 3.3 percent increase.

  • Same Community(2) Net Operating Income ("NOI")(1) increased by 2.7 percent for the quarter ended March 31, 2021, as compared to the corresponding period in 2020.

  • Same Community(2) Occupancy increased by 190 basis points to 98.8 percent, as compared to 96.9 percent at March 31, 2020.

  • MH and Annual RV Revenue Producing Sites increased by 514 sites in the quarter ended March 31, 2021, bringing total portfolio occupancy to 97.3 percent at March 31, 2021, as compared to an increase of 300 sites in the corresponding period in 2020 and total portfolio occupancy of 96.7 percent at March 31, 2020.

  • Home Sales Volume increased 9.4 percent for the quarter ended March 31, 2021, as compared to the same period in 2020.

  • Acquisitions totaled $183.0 million during and subsequent to the quarter ended March 31, 2021, including 2 MH communities, 6 RV resorts and 4 marinas.

Gary Shiffman, Chief Executive Officer stated, "Sun delivered a strong start to the year, as we continued to benefit from both the stability of our portfolio and the contribution of our growth initiatives across manufactured housing, RV resorts and marinas. Sustained demand for affordable housing and the desire for RV vacations are providing strong tailwinds, while marinas continue to exhibit durable customer retention and growth. With increased rates of vaccination and the beginning of a return to normalcy, we are seeing higher forward RV bookings providing better visibility into a stronger year ahead. Accordingly, we have increased our earnings guidance to reflect this confidence. To enhance our growth, we delivered approximately 350 ground-up development and expansion sites, and deployed $183.0 million into the acquisition of irreplaceable assets. As we execute on our investment strategies and further reinforce the high quality of our brand and offerings to our residents and guests, we are well positioned to continue to deliver industry-leading results."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.3 percent at March 31, 2021, compared to 96.7 percent at March 31, 2020, an increase of 60 basis points.

During the quarter ended March 31, 2021, MH and annual RV revenue producing sites increased by 514 sites, as compared to an increase of 300 revenue producing sites during the quarter ended March 31, 2020.

Same Community(2) Results

For the 407 MH and RV properties owned and operated by the Company since January 1, 2020, NOI(1) for the quarter ended March 31, 2021 increased 2.7 percent over the same period in 2020, driven by a 3.5 percent increase in revenues. Same Community occupancy(3) increased to 98.8 percent at March 31, 2021 from 96.9 percent at March 31, 2020.

For the MH same community properties, NOI(1) increased by 4.9 percent in the quarter ended March 31, 2021, driven by a 5.1 percent increase in revenues and offset by a 5.7 percent increase in property operating expenses.

For the RV same community properties, NOI(1) declined by 4.0 percent in the quarter ended March 31, 2021, driven by a 0.2 percent decline in revenues and a 5.3 percent increase in property operating expenses. RV same community revenues were impacted by the continued Canadian border closure and the California shelter-in-place order that ran through early February 2021.

Home Sales

During the quarter ended March 31, 2021, the Company sold 835 homes as compared to 763 homes in the same period in 2020. The Company sold 149 and 119 new homes for the quarters ended March 31, 2021 and 2020, respectively, an increase of 25.2 percent. Pre-owned home sales were 686 in the first quarter 2021 as compared to 644 in the same period in 2020, an increase of 6.5 percent.

Marina Results

Marina NOI was $31.4 million for the quarter ended March 31, 2021. Refer to page 14 for additional information regarding the marina portfolio operating results.

PORTFOLIO ACTIVITY

Acquisitions

During and subsequent to the quarter ended March 31, 2021, the Company acquired the following communities, resorts and marinas:

Property Name

Property Type

Sites,
Wet Slips and
Dry Storage Spaces

State / Providence

Total
Purchase Price
(in millions)

Month Acquired

Association Island KOA

RV

294

NY

$

15.0

January

Blue Water Beach Resort

RV

177

UT

9.0

February

Tranquility MHC

MH

25

FL

1.3

February

Islamorada and Angler House(a)

Marina

251

FL

18.0

February

Prime Martha’s Vineyard(a)

Marina

390

MA

22.2

March

Pleasant Beach Campground

RV

102

ON

1.6

March

Cherrystone Family Camping Resort

RV

669

VA

59.9

March

Beachwood Resort

RV

672

WA

7.0

March

Subtotal

2,580

134.0

Acquisitions subsequent to quarter end

Themeworld RV Resort

RV

148

FL

25.0

April

Sylvan Glen Estates(b)

MH

476

MI

24.0

April

Subtotal

624

49.0

Total acquisitions

3,204

$

183.0

(a) Includes two marinas.

(b) In conjunction with the acquisition, the Company issued 240,000 Series J preferred OP units.

Construction Activity

During the quarter ended March 31, 2021, the Company completed the construction of nearly 250 sites in its newly opened ground-up development in San Diego, California, and over 100 expansion sites in a Texas MH community.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of March 31, 2021, the Company had approximately $4.4 billion of debt outstanding. The weighted average interest rate was 3.4 percent and the weighted average maturity was 9.5 years. The Company had $105.1 million of unrestricted cash on hand. At March 31, 2021, the Company's net debt to trailing twelve month Recurring EBITDA(1) ratio was 6.1 times.

Equity Transaction

In March 2021, the Company completed a $1.1 billion underwritten public offering of an aggregate 8,050,000 shares at a public offering price of $140.00 per share, before underwriting discounts and commissions. The offering consisted of 4,000,000 shares offered directly by the Company and 4,050,000 shares offered under a forward equity sales agreement. The Company sold the 4,000,000 shares on March 9, 2021 and received net proceeds of $537.6 million which it used to pay down revolving debt. The Company expects to settle the remaining forward equity sales agreement by March 2022.

Reporting Changes

Refer to the Summary of 2021 Reporting Changes document, which can be found in the Investor Relations section of the Company’s website, for additional information regarding updated and expanded reporting implemented during the quarter.

2021 GUIDANCE

The Company is revising its 2021 guidance for the following metrics:

Previous Range

Revised Range

FY 2021E

FY 2021E

2Q 2021E

Basic earnings per share

$1.66 - $1.82

$1.68 - $1.84

$0.53 - $0.57

Core FFO(1) per fully diluted Share

$5.79 - $5.95

$5.92 - $6.08

$1.57 - $1.63

1Q21

2Q21

3Q21

4Q21

Seasonality of Core FFO(1) per fully diluted Share

21.0

%

26.6

%

32.1

%

20.3

%

Seasonality of Core FFO(1) per fully diluted Share is based off of the midpoint of full year guidance.

Previous Range

Revised Range

FY 2021E

FY 2021E

2Q 2021E

Same Community NOI(1) growth

5.6% - 6.6%

7.5% - 8.5%

16.4% - 17.4%

Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions or capital markets activity. The settlement of the remaining 4,050,000 shares offered under the March 2021 forward equity sales agreement, is not included in guidance.

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 "Cautionary Statement Regarding Forward-Looking Statements."

EARNINGS CONFERENCE CALL

A conference call to discuss first quarter results will be held on Tuesday, April 27, 2021 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 11, 2021 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 13717209. 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, 2021, owned, operated, or had an interest in a portfolio of 562 developed MH, RV and marina properties comprising over 151,600 developed sites and nearly 38,800 wet slips and dry storage spaces in 39 states and Ontario, Canada.

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

CAUTIONARY STATEMENT REGARDING 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. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. 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, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company's control. These risks, uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and the Company's other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

  • outbreaks of disease, including the COVID-19 pandemic, and related stay at home orders, quarantine policies and restrictions on travel, trade and business operations;

  • changes in general economic conditions, the real estate industry and the markets in which the Company operates;

  • difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;

  • the Company's liquidity and refinancing demands;

  • the Company's ability to obtain or refinance maturing debt;

  • the Company's ability to maintain compliance with covenants contained in its debt facilities;

  • availability of capital;

  • changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;

  • the Company's ability to maintain rental rates and occupancy levels;

  • the Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;

  • increases in interest rates and operating costs, including insurance premiums and real property taxes;

  • risks related to natural disasters such as hurricanes, earthquakes, floods, and wildfires;

  • general volatility of the capital markets and the market price of shares of the Company's capital stock;

  • the Company's ability to maintain its status as a REIT;

  • changes in real estate and zoning laws and regulations;

  • legislative or regulatory changes, including changes to laws governing the taxation of REITs;

  • litigation, judgments or settlements;

  • competitive market forces;

  • ability of purchasers of manufactured homes and boats to obtain financing; and

  • level of repossessions by manufactured home and lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.

Investor Information


RESEARCH COVERAGE

Firm

Analyst

Phone

Email

Bank of America Merrill Lynch

Joshua Dennerlein

(646) 855-1681

joshua.dennerlein@baml.com

Berenberg Capital Markets

Keegan Carl

(646) 949-9052

keegan.carl@berenberg-us.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

Robert W. Baird & Co.

Wesley Golladay

(216) 737-7510

wgolladay@rwbaird.com

RBC Capital Markets

Brad Heffern

(512) 708-6311

brad.heffern@rbccm.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, 2021)


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


Quarter Ended

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Financial Information

Total revenues

$

442,015

$

384,265

$

400,514

$

303,266

$

310,302

Net income / (loss)

$

27,941

$

9,818

$

89,756

$

63,355

$

(15,478

)

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

$

24,782

$

7,586

$

81,204

$

58,910

$

(16,086

)

Basic earnings / (loss) per share*

$

0.23

$

0.07

$

0.83

$

0.61

$

(0.17

)

Diluted earnings / (loss) per share*

$

0.23

$

0.07

$

0.83

$

0.61

$

(0.17

)

Cash distributions declared per common share*

$

0.83

$

0.79

$

0.79

$

0.79

$

0.79

Recurring EBITDA(1)

$

190,830

$

168,527

$

199,321

$

148,650

$

156,552

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)

$

135,925

$

110,849

$

165,209

$

118,092

$

95,046

Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)

$

141,036

$

124,872

$

162,624

$

110,325

$

117,267

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

1.22

$

1.03

$

1.63

$

1.20

$

0.98

Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

1.26

$

1.16

$

1.60

$

1.12

$

1.22

Balance Sheet

Total assets

$

11,454,209

$

11,206,586

$

8,335,717

$

8,348,659

$

8,209,047

Total debt

$

4,417,935

$

4,757,076

$

3,340,613

$

3,390,771

$

3,926,494

Total liabilities

$

5,101,512

$

5,314,879

$

3,791,922

$

3,845,308

$

4,346,127


Quarter Ended

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Operating Information*

Properties

562

552

432

426

424

Manufactured home sites

96,876

96,688

95,209

94,232

93,834

Annual RV sites

28,441

27,564

26,817

26,240

26,148

Transient RV sites

26,295

25,043

23,728

22,360

21,880

Total sites

151,612

149,295

145,754

142,832

141,862

Marina wet slips and dry storage spaces

38,753

38,152

N/A

N/A

N/A

MH occupancy

96.5

%

96.6

%

96.4

%

96.5

%

95.8

%

Annual RV occupancy

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Blended MH and annual RV occupancy

97.3

%

97.3

%

97.2

%

97.3

%

96.7

%

New home sales

149

156

155

140

119

Pre-owned home sales

686

626

555

471

644

Total home sales

835

782

710

611

763


Quarter Ended

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Revenue Producing Site Gains(5)

MH net leased sites

127

247

349

759

287

RV net leased sites

387

331

427

92

13

Total net leased sites

514

578

776

851

300

Consolidated Balance Sheets
(amounts in thousands)


March 31, 2021

December 31, 2020

Assets

Land

$

2,190,762

$

2,119,364

Land improvements and buildings

8,664,199

8,480,597

Rental homes and improvements

652,559

637,603

Furniture, fixtures and equipment

491,735

447,039

Investment property

11,999,255

11,684,603

Accumulated depreciation

(2,088,105

)

(1,968,812

)

Investment property, net

9,911,150

9,715,791

Cash, cash equivalents and restricted cash

120,174

92,641

Marketable securities

127,821

124,726

Inventory of manufactured homes

43,242

46,643

Notes and other receivables, net

249,009

221,650

Goodwill

438,842

428,833

Other intangible assets, net

300,554

305,611

Other assets, net

263,417

270,691

Total Assets

$

11,454,209

$

11,206,586

Liabilities

Mortgage loans payable

$

3,430,420

$

3,444,967

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

35,249

Preferred OP units - mandatorily redeemable

34,663

34,663

Lines of credit and other debt

917,603

1,242,197

Distributions payable

95,076

86,988

Advanced reservation deposits and rent

280,301

187,730

Accrued expenses and accounts payable

160,072

148,435

Other liabilities

148,128

134,650

Total Liabilities

5,101,512

5,314,879

Commitments and contingencies

Temporary equity

261,059

264,379

Stockholders' Equity

Common stock

1,118

1,076

Additional paid-in capital

7,618,128

7,087,658

Accumulated other comprehensive loss

4,033

3,178

Distributions in excess of accumulated earnings

(1,631,044

)

(1,566,636

)

Total Sun Communities, Inc. stockholders' equity

5,992,235

5,525,276

Noncontrolling interests

Common and preferred OP units

82,502

85,968

Consolidated variable interest entities

16,901

16,084

Total noncontrolling interests

99,403

102,052

Total Stockholders' Equity

6,091,638

5,627,328

Total Liabilities, Temporary Equity and Stockholders' Equity

$

11,454,209

$

11,206,586

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


Three Months Ended

March 31, 2021

March 31, 2020

Change

% Change

Revenues

Real property (excluding transient)

$

298,077

$

228,002

$

70,075

30.7

%

Real property - transient

32,536

30,347

2,189

7.2

%

Home sales

52,199

40,587

11,612

28.6

%

Service, retail, dining and entertainment

50,612

5,103

45,509

891.8

%

Interest

2,631

2,350

281

12.0

%

Brokerage commissions and other, net

5,960

3,913

2,047

52.3

%

Total Revenues

442,015

310,302

131,713

42.4

%

Expenses

Property operating and maintenance

103,553

69,834

33,719

48.3

%

Real estate tax

22,408

17,176

5,232

30.5

%

Home costs and selling

41,590

34,039

7,551

22.2

%

Service, retail, dining and entertainment

45,431

6,682

38,749

579.9

%

General and administrative

38,203

25,349

12,854

50.7

%

Catastrophic event-related charges, net

2,414

606

1,808

298.3

%

Business combination

1,232

1,232

N/A

Depreciation and amortization

123,304

83,689

39,615

47.3

%

Loss on extinguishment of debt

3,279

(3,279

)

(100.0

)

%

Interest

39,517

32,416

7,101

21.9

%

Interest on mandatorily redeemable preferred OP units / equity

1,036

1,041

(5

)

(0.5

)

%

Total Expenses

418,688

274,111

144,577

52.7

%

Income Before Other Items

23,327

36,191

(12,864

)

(35.5

)

%

Gain / (loss) on remeasurement of marketable securities

3,661

(28,647

)

32,308

112.8

%

Gain / (loss) on foreign currency translation

25

(17,479

)

17,504

100.1

%

Other expense, net(6)

(1,099

)

(972

)

(127

)

(13.1

)

%

Income / (loss) on remeasurement of notes receivable

376

(2,112

)

2,488

117.8

%

Income from nonconsolidated affiliates

1,171

52

1,119

N/M

Income / (loss) on remeasurement of investment in nonconsolidated affiliates

104

(2,191

)

2,295

104.7

%

Current tax benefit / (expense)

229

(450

)

679

150.9

%

Deferred tax benefit

147

130

17

13.1

%

Net Income / (Loss)

27,941

(15,478

)

43,419

280.5

%

Less: Preferred return to preferred OP units / equity

2,864

1,570

1,294

82.4

%

Less: Income / (loss) attributable to noncontrolling interests

295

(962

)

1,257

130.7

%

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

$

24,782

$

(16,086

)

$

40,868

254.1

%

Weighted average common shares outstanding - basic

107,932

92,410

15,522

16.8

%

Weighted average common shares outstanding - diluted

108,161

92,411

15,750

17.0

%

Basic earnings / (loss) per share

$

0.23

$

(0.17

)

$

0.40

235.3

%

Diluted earnings / (loss) per share

$

0.23

$

(0.17

)

$

0.40

235.3

%

N/M = Percentage change is not meaningful.

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


Outstanding Securities - As of March 31, 2021

Number of Units / Shares Outstanding

Conversion Rate*

If Converted(1)

Issuance Price Per Unit*

Annual Distribution Rate*

Non-convertible Securities

Common shares

111,835

N/A

N/A

N/A

$3.32^

Convertible Securities

Common OP units

2,582

1.0000

2,582

N/A

Mirrors common shares distributions

Series A-1 preferred OP units

290

2.4390

708

$

100

6.00

%

Series A-3 preferred OP units

40

1.8605

75

$

100

4.50

%

Series C preferred OP units

306

1.1100

340

$

100

5.00

%

Series D preferred OP units

489

0.8000

391

$

100

4.00

%

Series E preferred OP units

90

0.6897

62

$

100

5.25

%

Series F preferred OP units

90

0.6250

56

$

100

3.00

%

Series G preferred OP units

241

0.6452

155

$

100

3.20

%

Series H preferred OP units

581

0.6098

355

$

100

3.00

%

Series I preferred OP units

922

0.6098

562

$

100

3.00

%

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

(1) Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

Capitalization - As of March 31, 2021

Equity

Shares

Share Price*

Total

Common shares

111,835

$

150.04

$

16,779,723

Common OP units

2,582

$

150.04

387,403

Subtotal

114,417

$

17,167,126

Preferred OP units as converted

2,704

$

150.04

$

405,708

Total diluted shares outstanding

117,121

17,572,834

Debt

Mortgage loans payable

$

3,430,420

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

Preferred OP units - mandatorily redeemable

34,663

Lines of credit and other debt

917,603

Total debt

$

4,417,935

Total Capitalization

$

21,990,769

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, 2021

March 31, 2020

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

$

24,782

$

(16,086

)

Adjustments

Depreciation and amortization

123,076

83,752

Depreciation on nonconsolidated affiliates

30

(Gain) / loss on remeasurement of marketable securities

(3,661

)

28,647

(Gain) / loss on remeasurement of investment in nonconsolidated affiliates

(104

)

2,191

(Gain) / loss on remeasurement of notes receivable

(376

)

2,112

Loss attributable to noncontrolling interests

(147

)

(882

)

Preferred return to preferred OP units

480

874

Gain on disposition of assets, net

(8,155

)

(5,562

)

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)

$

135,925

$

95,046

Adjustments

Business combination expense and other acquisition related costs(7)

1,953

385

Loss on extinguishment of debt

3,279

Catastrophic event-related charges, net

2,414

606

Loss of earnings - catastrophic event-related

200

300

(Gain) / loss on foreign currency translation

(25

)

17,479

Other expense, net(6)

716

302

Deferred tax benefits

(147

)

(130

)

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)

$

141,036

$

117,267

Weighted average common shares outstanding - basic

107,932

92,410

Add

Common shares dilutive effect: March 2021 forward equity offering

229

Common stock issuable upon conversion of stock options

1

Restricted stock

191

524

Common OP units

2,596

2,412

Common stock issuable upon conversion of certain preferred OP units

791

1,166

Weighted Average Common Shares Outstanding - Fully Diluted

111,739

96,513

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)
Per Share - Fully Diluted

$

1.22

$

0.98

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted

$

1.26

$

1.22

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


Three Months Ended

March 31, 2021

March 31, 2020

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

$

24,782

$

(16,086

)

Interest income

(2,631

)

(2,350

)

Brokerage commissions and other revenues, net

(5,960

)

(3,913

)

General and administrative expense

38,203

25,349

Catastrophic event-related charges, net

2,414

606

Business combination expense

1,232

Depreciation and amortization

123,304

83,689

Loss on extinguishment of debt

3,279

Interest expense

39,517

32,416

Interest on mandatorily redeemable preferred OP units / equity

1,036

1,041

(Gain) / loss on remeasurement of marketable securities

(3,661

)

28,647

(Gain) / loss on foreign currency translation

(25

)

17,479

Other expense, net(6)

1,099

972

(Income) / loss on remeasurement of notes receivable

(376

)

2,112

Income from nonconsolidated affiliates

(1,171

)

(52

)

(Income) / loss on remeasurement of investment in nonconsolidated affiliates

(104

)

2,191

Current tax (benefit) / expense

(229

)

450

Deferred tax benefit

(147

)

(130

)

Preferred return to preferred OP units / equity

2,864

1,570

Income / (loss) attributable to noncontrolling interests

295

(962

)

NOI(1)

$

220,442

$

176,308


Three Months Ended

March 31, 2021

March 31, 2020

Real Property NOI(1)

$

204,652

$

171,339

Home Sales NOI(1)

10,609

6,548

Service, retail, dining and entertainment NOI(1)

5,181

(1,579

)

NOI(1)

$

220,442

$

176,308

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


Three Months Ended

March 31, 2021

March 31, 2020

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

$

24,782

$

(16,086

)

Adjustments

Depreciation and amortization

123,304

83,689

Loss on extinguishment of debt

3,279

Interest expense

39,517

32,416

Interest on mandatorily redeemable preferred OP units / equity

1,036

1,041

Current tax expense / (benefit)

(229

)

450

Deferred tax benefit

(147

)

(130

)

Income from nonconsolidated affiliates

(1,171

)

(52

)

Less: Gain on dispositions of assets, net

(8,155

)

(5,562

)

EBITDAre(1)

$

178,937

$

99,045

Adjustments

Catastrophic event-related charges, net

2,414

606

Business combination expense

1,232

(Gain) / loss on remeasurement of marketable securities

(3,661

)

28,647

(Gain) / loss on foreign currency translation

(25

)

17,479

Other expense, net(6)

1,099

972

(Income) / loss on remeasurement of notes receivable

(376

)

2,112

(Gain) / loss on remeasurement of investment in nonconsolidated affiliates

(104

)

2,191

Preferred return to preferred OP units / equity

2,864

1,570

Income / (loss) attributable to noncontrolling interests

295

(962

)

Plus: Gain on dispositions of assets, net

8,155

5,562

Recurring EBITDA(1)

$

190,830

$

157,222

Non-GAAP and Other Financial Measures

Debt Analysis
(amounts in thousands)


Quarter Ended

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Debt Outstanding

Mortgage loans payable

$

3,430,420

$

3,444,967

$

3,191,380

$

3,205,507

$

3,273,808

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 and other debt

917,603

1,242,197

79,321

115,352

582,774

Total debt

$

4,417,935

$

4,757,076

$

3,340,613

$

3,390,771

$

3,926,494

% Fixed / Floating

Fixed

79.3

%

74.0

%

97.6

%

96.6

%

85.2

%

Floating

20.7

%

26.0

%

2.4

%

3.4

%

14.8

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Weighted Average Interest Rates

Mortgage loans payable

3.78

%

3.78

%

3.88

%

3.88

%

3.91

%

Preferred Equity - Sun NG Resorts - mandatorily redeemable

6.00

%

6.00

%

6.00

%

6.00

%

6.00

%

Preferred OP units - mandatorily redeemable

5.93

%

5.93

%

5.93

%

5.93

%

5.93

%

Lines of credit and other debt(8)

1.75

%

2.08

%

1.32

%

2.03

%

1.85

%

Total average

3.39

%

3.37

%

3.86

%

3.86

%

3.64

%

Debt Ratios

Net Debt / Recurring EBITDA(1) (TTM)

6.1

6.9

5.0

4.8

5.6

Net Debt / Enterprise Value

19.7

%

21.4

%

18.3

%

17.8

%

22.6

%

Net Debt / Gross Assets

31.8

%

35.5

%

31.6

%

29.7

%

35.6

%

Coverage Ratios

Recurring EBITDA(1) (TTM) / Interest

5.0

4.9

4.8

4.5

4.5

Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution

4.8

4.8

4.6

4.4

4.3


Maturities / Principal Amortization Next Five Years

2021

2022

2023

2024

2025

Mortgage loans payable

Maturities

$

$

82,155

$

185,618

$

315,330

$

50,528

Principal amortization

44,810

61,364

60,739

57,293

53,879

Preferred Equity - Sun NG Resorts - mandatorily redeemable

33,428

1,821

Preferred OP units - mandatorily redeemable

27,373

Lines of credit and other debt

7,494

13,233

377,876

519,000

Total

$

52,304

$

156,752

$

624,233

$

952,424

$

106,228

Weighted average rate of maturities

%

4.46

%

4.08

%

4.47

%

4.04

%

Same Community(2)
(amounts in thousands except for Other Information)


Three Months Ended

Total Same Community

MH

RV

March 31, 2021

March 31, 2020

Change

% Change

March 31, 2021

March 31, 2020

Change

% Change

March 31, 2021

March 31, 2020

Change

% Change

Financial Information

Revenue

Real property (excluding Transient)

$

215,471

$

205,218

$

10,253

5.0

%

$

172,741

$

164,828

$

7,913

4.8

%

$

42,729

$

40,390

$

2,339

5.8

%

Real property - transient

25,907

28,870

(2,963

)

(10.3

)

%

601

928

(327

)

(35.2

)

%

25,306

27,942

(2,636

)

(9.4

)

%

Other

7,047

5,895

1,152

19.5

%

4,826

3,810

1,016

26.7

%

2,222

2,085

137

6.6

%

Total Operating

248,425

239,983

8,442

3.5

%

178,168

169,566

8,602

5.1

%

70,257

70,417

(160

)

(0.2

)

%

Expense

Property Operating (9)(10)

73,015

69,189

3,826

5.5

%

43,005

40,685

2,320

5.7

%

30,010

28,504

1,506

5.3

%

Real Property NOI(1)

$

175,410

$

170,794

$

4,616

2.7

%

$

135,163

$

128,881

$

6,282

4.9

%

$

40,247

$

41,913

$

(1,666

)

(4.0

)

%


As of

March 31, 2021

March 31, 2020

Change

% Change

Other Information

Number of properties

407

407

MH occupancy

97.3

%

RV occupancy

100.0

%

MH & RV blended occupancy(3)

97.9

%

Adjusted MH occupancy(3)

98.4

%

Adjusted RV occupancy(3)

100.0

%

Adjusted MH & RV blended occupancy(3)

98.8

%

96.9

%

1.9

%

Sites available for development

7,373

6,975

398

Monthly base rent per site - MH

$

599

$

580

$

19

3.2%(12)

Monthly base rent per site - RV(11)

$

524

$

499

$

25

5.0%(12)

Monthly base rent per site - Total(11)

$

582

$

562

$

20

3.5%(12)

Marina Summary
(amounts in thousands except for statistical data)


Three Months Ended

March 31, 2021

Financial Information

Revenues

Real property (excluding Transient)

$

46,106

Real property - transient

868

Other

1,649

Total Operating

48,623

Expenses

Property Operating

23,575

Real Property NOI

25,048

Service, retail, dining and entertainment

Service, retail, dining and entertainment revenue

44,354

Service, retail, dining and entertainment expense

38,009

Service, Retail, Dining and Entertainment NOI

6,345

Marina NOI

$

31,393

Other Information - Marinas

March 31, 2021

Number of properties(a)

110

Total wet slips and dry storage

38,753

(a) Marina properties comprised of four properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary(13)
(amounts in thousands except for statistical data)


Three Months Ended

March 31, 2021

Financial Information

Revenues

Real property (excluding transient)

$

7,189

Real property - transient

5,761

Other income

302

Total Operating

13,252

Expenses

Property Operating

9,058

Real Property NOI

$

4,194

Other Information - MH and RVs

March 31, 2021

Number of properties

45

Occupied sites

4,864

Developed sites

5,730

Occupancy %

84.9

%

Transient sites

6,598

Home Sales Summary
(amounts in thousands except for *)


Three Months Ended

March 31, 2021

March 31, 2020

Change

% Change

Financial Information

New Homes

New home sales

$

22,972

$

15,596

$

7,376

47.3

%

New home cost of sales

18,674

12,610

6,064

48.1

%

Gross Profit – new homes

4,298

2,986

1,312

43.9

%

Gross margin % – new homes

18.7

%

19.1

%

(0.4

)

%

Average selling price – new homes*

$

154,174

$

131,059

$

23,115

17.6

%

Pre-owned Homes

Pre-owned home sales

$

29,227

$

24,991

$

4,236

17.0

%

Pre-owned home cost of sales

18,584

17,422

1,162

6.7

%

Gross Profit – pre-owned homes

10,643

7,569

3,074

40.6

%

Gross margin % – pre-owned homes

36.4

%

30.3

%

6.1

%

Average selling price – pre-owned homes*

$

42,605

$

38,806

$

3,799

9.8

%

Total Home Sales

Revenue from home sales

$

52,199

$

40,587

$

11,612

28.6

%

Cost of home sales

37,258

30,032

7,226

24.1

%

Home selling expenses

4,332

4,007

325

8.1

%

NOI(1) – home sales

$

10,609

$

6,548

$

4,061

62.0

%

Statistical Information

New home sales volume*

149

119

30

25.2

%

Pre-owned home sales volume*

686

644

42

6.5

%

Total home sales volume*

835

763

72

9.4

%

Rental Program Summary
(amounts in thousands except for *)


Three Months Ended

March 31, 2021

March 31, 2020

Change

% Change

Financial Information

Revenues

Home rent

$

17,022

$

15,469

$

1,553

10.0

%

Site rent

19,117

18,007

1,110

6.2

%

Total

36,139

33,476

2,663

8.0

%

Expenses

Rental Program operating and maintenance

5,224

4,823

401

8.3

%

Rental Program NOI(1)

$

30,915

$

28,653

$

2,262

7.9

%

Other Information

Number of sold rental homes*

211

234

(23

)

(9.8

)

%

Number of occupied rentals, end of period*

11,473

11,431

42

0.4

%

Investment in occupied rental homes, end of period

$

621,869

$

596,319

$

25,550

4.3

%

Weighted average monthly rental rate, end of period*

$

1,055

$

1,009

$

46

4.6

%

The Rental Program NOI is included in Real Property NOI. The Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company's operations.

MH and RV Property Summary

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

FLORIDA

Properties

128

128

127

125

125

MH & Annual RV Developed sites(14)

40,011

39,803

39,517

39,241

39,380

Occupied MH & Annual RV(14)

39,283

39,063

38,743

38,453

38,526

MH & Annual RV Occupancy %(14)

98.2

%

98.1

%

98.0

%

98.0

%

97.8

%

Transient RV sites

5,823

6,011

5,993

5,547

5,311

Sites for development

1,497

1,497

1,427

1,427

1,527

MICHIGAN

Properties

74

74

74

72

72

MH & Annual RV Developed sites(14)

29,092

29,086

29,086

27,901

27,883

Occupied MH & Annual RV(14)

28,145

28,109

28,033

27,191

26,863

MH & Annual RV Occupancy %(14)

96.7

%

96.6

%

96.4

%

97.5

%

96.3

%

Transient RV sites

541

546

546

572

590

Sites for development

1,182

1,182

1,182

1,182

1,115

CALIFORNIA

Properties

36

35

34

32

31

MH & Annual RV Developed sites(14)

6,734

6,675

6,372

6,364

5,986

Occupied MH & Annual RV(14)

6,609

6,602

6,290

6,272

5,948

MH & Annual RV Occupancy %(14)

98.1

%

98.9

%

98.7

%

98.6

%

99.4

%

Transient RV sites

2,418

2,231

2,236

1,978

1,947

Sites for development

127

373

373

264

302

TEXAS

Properties

24

24

24

23

23

MH & Annual RV Developed sites(14)

7,928

7,766

7,659

7,641

7,627

Occupied MH & Annual RV(14)

7,671

7,572

7,427

7,289

7,076

MH & Annual RV Occupancy %(14)

96.8

%

97.5

%

97.0

%

95.4

%

92.8

%

Transient RV sites

1,773

1,810

1,917

1,590

1,612

Sites for development

1,275

1,378

1,378

565

555

ONTARIO, CANADA

Properties

16

15

15

15

15

MH & Annual RV Developed sites(14)

4,199

4,090

4,067

3,980

3,977

Occupied MH & Annual RV(14)

4,199

4,090

4,067

3,980

3,977

MH & Annual RV Occupancy %(14)

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Transient RV sites

964

966

920

1,007

1,009

Sites for development

1,525

1,525

1,593

1,593

1,608

CONNECTICUT

Properties

16

16

16

16

16

MH & Annual RV Developed sites(14)

1,897

1,897

1,898

1,898

1,892

Occupied MH & Annual RV(14)

1,746

1,739

1,736

1,735

1,721

MH & Annual RV Occupancy %(14)

92.0

%

91.7

%

91.5

%

91.4

%

91.0

%

Transient RV sites

108

108

107

107

113

Sites for development

ARIZONA

Properties

14

14

13

13

13

MH & Annual RV Developed sites(14)

4,391

4,323

4,274

4,259

4,268

Occupied MH & Annual RV(14)

4,101

4,030

3,957

3,932

3,923

MH & Annual RV Occupancy %(14)

93.4

%

93.2

%

92.6

%

92.3

%

91.9

%

Transient RV sites

1,270

1,337

1,386

1,401

1,392

Sites for development

MAINE

Properties

13

13

7

7

7

MH & Annual RV Developed sites(14)

2,190

2,190

1,092

1,074

1,083

Occupied MH & Annual RV(14)

2,119

2,121

1,089

1,069

1,079

MH & Annual RV Occupancy %(14)

96.8

%

96.8

%

99.7

%

99.5

%

99.6

%

Transient RV sites

805

805

819

837

828

Sites for development

30

30

30

30

30

INDIANA

Properties

12

12

11

11

11

MH & Annual RV Developed sites(14)

3,087

3,087

3,087

3,087

3,087

Occupied MH & Annual RV(14)

2,961

2,950

2,957

2,961

2,914

MH & Annual RV Occupancy %(14)

95.9

%

95.6

%

95.8

%

95.9

%

94.4

%

Transient RV sites

1,089

1,089

534

534

534

Sites for development

277

277

277

277

277

COLORADO

Properties

10

10

10

10

10

MH & Annual RV Developed sites(14)

2,453

2,453

2,453

2,441

2,423

Occupied MH & Annual RV(14)

2,395

2,380

2,365

2,327

2,318

MH & Annual RV Occupancy %(14)

97.6

%

97.0

%

96.4

%

95.3

%

95.7

%

Transient RV sites

962

962

930

574

291

Sites for development

1,250

1,250

1,282

1,566

1,867

NEW HAMPSHIRE

Properties

10

10

10

10

10

MH & Annual RV Developed sites(14)

1,776

1,777

1,833

1,827

1,816

Occupied MH & Annual RV(14)

1,769

1,767

1,822

1,816

1,806

MH & Annual RV Occupancy %(14)

99.6

%

99.4

%

99.4

%

99.4

%

99.4

%

Transient RV sites

456

460

404

410

421

Sites for development

151

151

151

151

151

NEW YORK

Properties

10

9

9

9

9

MH & Annual RV Developed sites(14)

1,452

1,419

1,414

1,403

1,400

Occupied MH & Annual RV(14)

1,415

1,380

1,371

1,358

1,355

MH & Annual RV Occupancy %(14)

97.5

%

97.3

%

97.0

%

96.8

%

96.8

%

Transient RV sites

1,689

1,422

900

911

916

Sites for development

371

371

371

371

371

OHIO

Properties

9

9

9

9

9

MH & Annual RV Developed sites(14)

2,797

2,790

2,790

2,778

2,768

Occupied MH & Annual RV(14)

2,760

2,755

2,758

2,736

2,702

MH & Annual RV Occupancy %(14)

98.7

%

98.7

%

98.9

%

98.5

%

97.6

%

Transient RV sites

128

135

135

147

152

Sites for development

22

22

22

22

59

OTHER STATES

Properties

80

77

73

74

73

MH & Annual RV Developed sites(14)

17,310

16,896

16,484

16,578

16,392

Occupied MH & Annual RV(14)

16,796

16,394

15,977

16,046

15,788

MH & Annual RV Occupancy %(14)

97.0

%

97.0

%

96.9

%

96.8

%

96.3

%

Transient RV sites

8,269

7,161

6,901

6,745

6,764

Sites for development

1,969

1,969

2,044

2,294

2,428

TOTAL - MH AND ANNUAL RV PORTFOLIO

Properties

452

446

432

426

424

MH & Annual RV Developed sites(14)

125,317

124,252

122,026

120,472

119,982

Occupied MH & Annual RV(14)

121,969

120,952

118,592

117,165

115,996

MH & Annual RV Occupancy %(14)

97.3

%

(15)

97.3

%

97.2

%

97.3

%

96.7

%

Transient RV sites

26,295

25,043

23,728

22,360

21,880

Sites for development(16)

9,676

10,025

10,130

9,742

10,290

% Communities age restricted

32.7

%

33.2

%

33.6

%

34.0

%

34.0

%


Marina Property Summary(a)

3/31/2021

12/31/2020

FLORIDA

Properties

16

14

Total wet slips and dry storage spaces

3,796

3,564

CONNECTICUT

Properties

11

11

Total wet slips and dry storage spaces

3,257

3,254

RHODE ISLAND

Properties

11

11

Total wet slips and dry storage spaces

2,676

2,656

MASSACHUSETTS

Properties

9

7

Total wet slips and dry storage spaces

2,613

2,193

NEW YORK

Properties

8

8

Total wet slips and dry storage spaces

2,524

2,524

MARYLAND

Properties

8

8

Total wet slips and dry storage spaces

2,104

2,106

OTHER STATES

Properties

47

47

Total wet slips and dry storage spaces

21,783

21,855

TOTAL - MARINA PORTFOLIO

Properties

110

106

Total wet slips and dry storage spaces

38,753

38,152

(a) Total wet slips and dry storage spaces are adjusted each quarter based on sites configuration and usability.

Capital Improvements, Development and Acquisitions
(amounts in thousands except for *)


Recurring
Capital Expenditures
Average / MH & RV Site*

Recurring Capital Expenditures Average / Marina Site*

Recurring
Capital Expenditures - MH / RV(17)

Recurring Capital Expenditures - Marina(17)

Lot
Modifications(18)

Acquisitions(19)

Expansion
and
Development(20)

Growth Projects(21)

YTD 2021

$

86

$

79

$

10,544

$

3,144

$

7,260

$