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Sun Communities, Inc. Reports 2022 Second Quarter Results

·27 min read
Sun Communities, Inc.
Sun Communities, Inc.

Southfield, MI, July 25, 2022 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company" or "SUI"), 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 second quarter results for 2022.

Financial Results for the Quarter and Six Months Ended June 30, 2022

For the quarter ended June 30, 2022, total revenues increased by $210.4 million, or 34.8 percent, to $814.3 million compared to $603.9 million for the same period in 2021. Net income attributable to common shareholders was $74.0 million, or $0.61 per diluted common share, compared to net income attributable to common shareholders of $110.8 million, or $0.98 per diluted common share, for the same period in 2021.

For the six months ended June 30, 2022, total revenues increased by $316.9 million, or 30.3 percent, to approximately $1.4 billion compared to approximately $1.0 billion for the same period in 2021. Net income attributable to common stockholders was $74.7 million, or $0.63 per diluted common share, compared to net income attributable to common stockholders of $135.6 million, or $1.22 per diluted common share, for the same period in 2021.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations ("Core FFO")(1) for the quarter ended June 30, 2022, was $2.02 per diluted share and OP unit ("Share") as compared to $1.80 in the corresponding period in 2021, a 12.2 percent increase. Core FFO(1) for the six months ended June 30, 2022, was $3.37 per share as compared to $3.08 in the corresponding period, an increase of 9.4 percent.

  • Constant Currency Core FFO for the quarter and six months ended June 30, 2022, was $2.04 per Share and $3.39 per Share, respectively, when translating the Company's results from the United Kingdom ("UK"), Canada and Australia at the foreign currency translation rates used in first quarter 2022 guidance.

  • Same Property(2) Net Operating Income ("NOI")(1) for the Company's MH and RV properties increased by 3.6 percent for the quarter ended June 30, 2022, and 5.5 percent for the six months ended June 30, 2022 as compared to the corresponding periods in 2021.

  • Same Property(2) NOI for the Company's Marina properties increased by 7.1 percent for the quarter ended June 30, 2022, and 5.0 percent for the six months ended June 30, 2022 as compared to the corresponding periods in 2021.

  • Acquisitions totaled $1.8 billion during and subsequent to the quarter ended June 30, 2022, including 56 MH communities in the United States and the UK and three marinas in the United States.

"Sun produced solid earnings growth in the second quarter, driven by positive revenue and NOI growth across the portfolio, along with the contribution from recent acquisitions," said Gary A. Shiffman, Chairman and CEO. "We delivered another record quarter of revenue-producing site gains which should contribute to sustained revenue growth. We are continuing to see healthy demand for attainable housing and affordable vacations, and while transient RV is coming off of record levels; the desire to be at a Sun Outdoors RV resort is evident as we convert transient guests to annual customers as vacationers make a Sun community their long-term destination. Additionally, we completed the acquisition of Park Holidays in the UK and are focused on integrating these assets into our MH portfolio and realizing their accretive value. Sun has a cycle-tested portfolio of communities, resorts and marinas that deliver durable and reliable cash flows. We continue to see very favorable supply-demand dynamics and have a differentiated and experienced platform to acquire, develop and efficiently operate properties to create shareholder value."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.2 percent at June 30, 2022 as compared to 97.4 percent at June 30, 2021, a decrease of 20 basis points.

During the quarter ended June 30, 2022, the number of MH and annual RV revenue producing sites increased by 950 sites as compared to an increase of 583 sites during the quarter ended June 30, 2021, a 63.0 percent increase.

During the six months ended June 30, 2022, MH and annual RV revenue producing sites increased by 1,620 sites as compared to an increase of 1,097 sites during the six months ended June 30, 2021, a 47.7 percent increase.

Same Property(2) Results - MH and RV

For the 425 MH and RV properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases, both in total, and by segment, for the quarter and six months ended June 30, 2022:

 

Quarter Ended June 30, 2022

 

Total MH and RV
Same Property

 

MH
Same Property

 

RV
Same Property

Revenue

4.8

%

 

4.4

%

 

5.4

%

Expense

7.3

%

 

8.3

%

 

6.4

%

NOI

3.6

%

 

3.1

%

 

4.6

%


 

Six Months Ended June 30, 2022

 

Total MH and RV Same Property

 

MH
Same Property

 

RV
Same Property

Revenue

6.8

%

 

4.4

%

 

11.3

%

Expense

9.7

%

 

8.6

%

 

11.0

%

NOI

5.5

%

 

3.1

%

 

11.5

%

Same Property adjusted occupancy(3) increased to 98.5 percent at June 30, 2022 from 96.8 percent at June 30, 2021, an increase of 170 basis points.
Same Property(2) Results - Marina

For the 101 Marina properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases for the quarter and six months ended June 30, 2022:

 

Quarter Ended June 30, 2022

 

Six Months Ended June 30, 2022

Revenue

6.1

%

 

6.8

%

Expense

3.4

%

 

10.0

%

NOI

7.1

%

 

5.0

%

UK Operations Results

During the quarter ended June 30, 2022, as previously announced, the Company acquired Park Holidays, a portfolio of 40 properties and an additional two properties that are managed by the Park Holidays team. UK operations, a component of the Company's MH segment, contributed $40.5 million of NOI in the quarter ended June 30, 2022. Refer to page 16 for additional information regarding UK operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended June 30, 2022, the Company acquired the following properties:

Property Name

 

Property Type

 

Sites,
Wet Slips and
Dry Storage Spaces

 

Development Sites

 

State, Province or Country

 

Total
Purchase Price
(in millions)

 

Month Acquired

Park Holidays(a)

 

MH

 

15,906

 

1,140

 

UK

 

$

1,242.1

 

April

Christies Parks(b)

 

MH

 

249

 

 

UK

 

 

10.1

 

April

Bluewater Yacht Sales

 

Marina

 

200

 

 

Various states

 

 

25.0

 

April

Jarrett Bay Boatworks (Bluewater Yacht Sales)(b)

 

Marina

 

 

 

Various states

 

 

17.6

 

April

Bodmin Holiday Park

 

MH

 

69

 

 

UK

 

 

12.6

 

April

Kittery Point

 

Marina

 

62

 

 

ME

 

 

7.9

 

May

Spanish Trails MHC

 

MH

 

195

 

6

 

AZ

 

 

21.9

 

June

Pine Acre Trails

 

MH

 

251

 

603

 

TX

 

 

29.7

 

June

Bel Air Estates & Sunrise Estates(c)

 

MH

 

379

 

 

CA

 

 

40.0

 

June

Park Leisure(d)

 

MH

 

2,914

 

391

 

UK

 

 

223.4

 

June

Subtotal

 

 

 

20,225

 

2,140

 

 

 

$

1,630.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions subsequent to quarter end

 

 

 

 

 

 

 

 

Gurney's Star Island Marina & Resort

 

Marina

 

230

 

 

NY

 

$

190.0

 

July

Subtotal

 

 

 

230

 

 

 

 

$

190.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total acquisitions

 

 

 

20,455

 

2,140

 

 

 

$

1,820.3

 

 

(a) Includes 40 owned and two managed properties.

(b) Combined with an existing property.

(c) Includes two properties.

(d) Includes 11 communities.

During and subsequent to the six months ended June 30, 2022, the Company acquired 63 properties totaling 21,860 sites, wet slips and dry storage spaces and 2,596 sites for expansion for a total purchase price of $2.1 billion.

Development and Expansion Activities

During and subsequent to the quarter ended June 30, 2022, the Company acquired three land parcels located in the United States for the potential development of over 650 sites, for an aggregate purchase price of $10.7 million.

During the quarter and the six months ended June 30, 2022, the Company completed the construction of nearly 110 sites and over 134 sites, respectively, in one ground-up development and three expansion sites.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of June 30, 2022, the Company had $6.9 billion in debt outstanding. The weighted average interest rate was 3.4 percent and the weighted average years to maturity was 7.9 years. At June 30, 2022, the Company's net debt to trailing twelve-month Recurring EBITDA(1) ratio was 6.3 times.

Senior Credit Facility Amendment

As previously announced, during the quarter ended June 30, 2022, in conjunction with the closing of the Park Holidays acquisition, the Company amended its senior credit facility.

The amendment increased the aggregate amount of the Company's senior credit facility to $4.2 billion with the ability to upsize the total borrowings by an additional $800.0 million, subject to certain conditions. The increased aggregate amount under the senior credit facility consists of the following: (a) a revolving loan in the amount up to $3.05 billion and (b) a term loan facility of $1.15 billion, with the ability to draw funds from the combined facilities in U.S. dollars, Pounds sterling, Euros, Canadian dollars and Australian dollars, subject to certain limitations. The amendment extended the maturity date of the revolving loan facility to April 7, 2026. At the Company's option, that maturity date may be extended two additional six-month periods. In addition, the amendment established the maturity date of the term loan facility under the amendment as April 7, 2025, which may not be further extended.

Senior Unsecured Notes

As previously announced, during the quarter ended June 30, 2022, the Company issued $600.0 million of senior unsecured notes with an interest rate of 4.2 percent and a 10-year term, due April 15, 2032 (the "2032 Notes"). The net proceeds from the offering were $592.3 million after deducting underwriters' discounts and estimated offering expenses. The Company used the net proceeds from the offering to repay borrowings outstanding under its senior credit facility.

In connection with the 2032 Notes issuance, the Company settled four 10-year Treasury rate locks totaling $600.0 million and received a settlement payment of $35.3 million. This lowered the effective interest rate on the 2032 Notes from 4.2 percent to 3.6 percent.

Interest Rate Swap

Subsequent to the quarter ended June 30, 2022, the Company entered into interest rate swap agreements to hedge variable rate borrowings of £400.0 million under the term loan on the Senior Credit Facility. The interest rate swaps lock in a total fixed rate, inclusive of spread, of 3.67 percent through the term loan maturity date of April, 2025.
Equity Transactions

Forward Share Settlements

As previously announced, during the quarter ended June 30, 2022, the Company settled forward sale agreements with respect to 1,200,000 shares of common stock under its at the market offering sales program and 4,025,000 shares of common stock in connection with its November 2021 registered forward equity offering. The aggregate net proceeds from the settlement of these forward sale agreements was $934.9 million. The Company used the net proceeds to repay borrowings outstanding under its senior credit facility.

Subsequent to the quarter ended June 30, 2022, the Company settled forward sale agreements with respect to 986,909 shares of common stock under its at the market offering sales program. The aggregate net proceeds from the settlement of these forward sale agreements was $180.7 million. The Company used the net proceeds to repay borrowings outstanding under its senior credit facility.

At the Market Offering

During the quarter ended June 30, 2022, the Company entered into forward sale agreements with respect to 290,600 shares of common stock under its at the market offering program for $50.1 million. These forward sale agreements were not settled as of June 30, 2022, but the Company expects to settle them by June 30, 2023.

The following table presents the Company's outstanding unsettled forward sale agreements as of July 22, 2022:

Forward Equity Agreements

 

Shares Sold

 

Shares Settled

 

Shares Remaining

 

Net Proceeds Received
(in millions)

 

Anticipated Net Proceeds Remaining
(in millions)

Q3 2021 ATM Forward Agreements

 

107,400

 

 

107,400

 

$

 

$

21.4

Q1 2022 ATM Forward Agreements

 

600,503

 

455,500

 

145,003

 

 

80.3

 

 

26.0

Q2 2022 ATM Forward Agreements

 

290,600

 

18,700

 

271,900

 

 

3.4

 

 

46.7

Total Unsettled Forward Equity Agreements

 

998,503

 

474,200

 

524,303

 

$

83.7

 

$

94.1

GUIDANCE

The Company is updating its full-year guidance for Basic earnings per share and incorporating the anticipated effects from translating the Company's results from the UK, Canada and Australia by introducing a constant currency adjustment to Core FFO ("Constant Currency Core FFO") per fully diluted share(1)(4). The Company is revising its full-year guidance for Basic earnings per share from the prior range of $2.46 - $2.58 to a new range of $1.91 - $2.01. The Company is revising its Constant Currency Core FFO per fully diluted share(1)(4) from $7.20 - $7.32 to a new range of $7.22 - $7.32, representing a 1-cent increase at the midpoint. The Company is also establishing guidance for third quarter Basic earnings per share and Constant Currency Core FFO per fully diluted share(1)(4) of $1.25 - $1.30 and $2.56 - $2.61, respectively. Reconciliations of projected Basic earnings per share to Constant Currency Core FFO per fully diluted share(1)(4) are as follows:

Reconciliation of Basic earnings per share to Core FFO per diluted share and Constant Currency Core FFO per diluted share(1)(4)

 

Previous Range
FY 2022E

 

Revised Range
FY 2022E

 

3Q 2022E

Basic earnings per share

 

$

2.46

 

 

$

2.58

 

 

$

1.91

 

 

$

2.01

 

 

$

1.25

 

 

$

1.30

 

Depreciation and amortization

 

 

4.65

 

 

 

4.65

 

 

 

4.94

 

 

 

4.94

 

 

 

1.26

 

 

 

1.26

 

Gain on sale of assets

 

 

(0.46

)

 

 

(0.46

)

 

 

(0.51

)

 

 

(0.51

)

 

 

(0.09

)

 

 

(0.09

)

Other adjustments(a)

 

 

0.55

 

 

 

0.55

 

 

 

0.83

 

 

 

0.83

 

 

 

0.10

 

 

 

0.10

 

Core FFO per fully diluted Share

 

$

7.20

 

 

$

7.32

 

 

$

7.17

 

 

$

7.27

 

 

$

2.52

 

 

$

2.57

 

Constant currency adjustment(b)

 

 

 

 

 

 

 

 

0.05

 

 

 

0.05

 

 

 

0.04

 

 

 

0.04

 

Constant Currency Core FFO per fully diluted share

 

$

7.20

 

 

$

7.32

 

 

$

7.22

 

 

$

7.32

 

 

$

2.56

 

 

$

2.61

 

(a) Other adjustments include the same categories presented in the table that reconciles the Net income attributable to SUI common shareholders to FFO on page 9.

(b) The Company calculates the foreign currency translation impact comparing the weighted average foreign currency rate for revised guidance ($1.2146 U.S. dollars ("USD") per British pound sterling ("GBP")) with the weighted average foreign currency rate used in April 2022 guidance ($1.330 USD per GBP). The impact of fluctuations in Canadian and Australian foreign currency rates on revised or initial guidance are not material.

Basic earnings per share, Core FFO per fully diluted share(1)(4) and Constant Currency Core FFO per fully diluted share(1)(4) are calculated independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation. Seasonality of Constant Currency Core FFO per fully diluted Share(1)(4) is based off the midpoint of full-year guidance and is expected to be as follows:

 

1Q22

 

2Q22

 

3Q22

 

4Q22

Seasonality of Constant Currency Core FFO per fully diluted Share(1)(4)

18.5

%

 

28.0

%

 

35.5

%

 

18.0

%

Same Property NOI Growth: The Company is updating its expectations for Same Property NOI Growth as follows:

 

 

Previous Range

 

Revised Range

 

Guidance

MH and RV 2022 Same Property Portfolio (428 properties):

 

FY 2022E

 

FY 2022E

 

3Q 2022E

MH and RV Same Property NOI(1) growth

 

6.5% - 7.3%

 

6.0% - 6.8%

 

6.4% - 7.2%

Within the Marina Portfolio, certain amounts have been revised to conform with current presentation, with no effect on net income. These include reclassifications of certain revenues and expenses between Real property and Service, retail, dining and entertainment within our Marina portfolio. 2021 Same Property Marina NOI is presented below reflecting these reclassifications, along with updated guidance on NOI growth the Company expects from the 2022 same property Marina portfolio:

Marina 2022 Same Property Portfolio (101 properties) (in milions):

 

2021 Marina Same Property NOI(1) Originally Reported
in Feb-2022 for
FY 2022 Guidance

 

2021 Marina Same Property NOI(1) Reclassified for
FY 2022 Guidance,
As Revised

Marina Same Property NOI(1)

 

$

132.2

 

$

151.1


 

 

Original Guidance FY 2022E
Provided
in Feb-2022

 

Current Guidance

Marina 2022 Same Property Growth:

 

 

FY 2022E

 

3Q22E

Marina Same Property NOI(1) growth

 

6.0% - 7.4%

 

6.0% - 6.8%

 

7.6% - 9.0%


 

1H22

 

3Q22

 

4Q22

Seasonality of Marina Same Property NOI(1)

45.2

%

 

31.5

%

 

23.3

%

UK Operations Guidance. For the third quarter ending September 30, 2022, and the six months ending December 31, 2022, the Company is establishing guidance for NOI from its UK Operations before and after the anticipated effects from currency translation. The following guidance for UK Operations is incorporated into the Company's Core FFO per fully diluted share(1)(4) and Constant Currency Core FFO per fully diluted share(1)(4) guidance and seasonality figures provided above (in millions).

 

 

Quarter Ending

 

Six Months Ending

 

 

September 30, 2022

 

December 31, 2022

UK Operations NOI

 

$53.9 - $56.7

 

$72.4 - $76.2

UK Operations NOI - constant currency

 

$59.0 - $62.1

 

$79.3 - $83.5

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions and capital markets activity completed through the date of this release. These estimates exclude prospective acquisitions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

EARNINGS CONFERENCE CALL

A conference call to discuss second quarter results will be held on Tuesday, July 26, 2022 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through August 9, 2022 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 13730379. 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.

SUI is a REIT that, as of June 30, 2022, owned, operated, or had an interest in a portfolio of 661 developed MH, RV and Marina properties comprising over 180,300 developed sites and over 45,900 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

For more information about SUI, 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 (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this filing 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 our current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this filing. These risks and uncertainties may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and in 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, including inflation, deflation, and energy costs, 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 and its unsecured notes;

  • Availability of capital;

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

  • 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;

  • 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, droughts 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;

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

  • The level of repossessions by manufactured home and boat 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 or incorporated by reference into this filing, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company 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 the Company's behalf are qualified in their entirety by these cautionary statements.

Portfolio Overview, Research Coverage and Inquiries
(As of June 30, 2022)

 

RESEARCH COVERAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

Refer to the Investor relations section of our website for research analyst coverage detail.

 

 

 

 

 

 

 

INQUIRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company welcomes questions or comments from shareholders, 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

 

 

 

 

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

 


 

Quarter Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Financial Information

 

 

 

 

 

 

 

 

 

Total revenues

$

814.3

 

$

548.5

 

$

542.4

 

$

684.3

 

$

603.9

Net income

$

81.3

 

$

1.5

 

$

14.8

 

$

250.2

 

$

120.8

Net income attributable to SUI common shareholders

$

74.0

 

$

0.7

 

$

12.8

 

$

231.8

 

$

110.8

Basic earnings per share*

$

0.61

 

$

0.01

 

$

0.11

 

$

2.00

 

$

0.98

Diluted earnings per share*

$

0.61

 

$

0.01

 

$

0.11

 

$

2.00

 

$

0.98

 

 

 

 

 

 

 

 

 

 

Cash distributions declared per common share*

$

0.88

 

$

0.88

 

$

0.83

 

$

0.83

 

$

0.83

 

 

 

 

 

 

 

 

 

 

FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4)

$

246.0

 

$

155.3

 

$

152.3

 

$

223.1

 

$

198.4

Core FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4)

$

254.6

 

$

162.8

 

$

155.8

 

$

244.5

 

$

209.6

Constant Currency Core FFO Attributable to SUI Shareholders and Dilutive Convertible Securities

$

256.6

 

N/A

 

N/A

 

N/A

 

N/A

FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

1.95

 

$

1.28

 

$

1.28

 

$

1.92

 

$

1.70

Core FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

2.02

 

$

1.34

 

$

1.31

 

$

2.11

 

$

1.80

Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities Per Share - Fully Diluted*

$

2.04

 

N/A

 

N/A

 

N/A

 

N/A

 

 

 

 

 

 

 

 

 

 

Recurring EBITDA(1)

$

328.4

 

$

221.0

 

$

208.6

 

$

314.5

 

$

268.1

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

Total assets

$

16,397.8

 

$

13,914.2

 

$

13,494.1

 

$

12,583.3

 

$

12,041.0

Total debt

$

6,930.9

 

$

6,076.5

 

$

5,671.8

 

$

4,689.4

 

$

4,311.2

Total liabilities

$

8,566.3

 

$

6,980.7

 

$

6,474.6

 

$

5,488.5

 

$

5,099.6


 

Quarter Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Operating Information*

 

 

 

 

 

 

 

 

 

Properties

661

 

 

603

 

 

602

 

 

584

 

 

569

 

 

 

 

 

 

 

 

 

 

 

United States and Canada

 

 

 

 

 

 

 

 

 

Manufactured home sites

99,185

 

 

98,279

 

 

98,621

 

 

98,301

 

 

97,448

 

Annual RV sites

31,768

 

 

31,121

 

 

30,540

 

 

29,640

 

 

28,807

 

Transient RV sites

28,682

 

 

29,267

 

 

29,847

 

 

27,922

 

 

27,032

 

Total sites

159,635

 

 

158,667

 

 

159,008

 

 

155,863

 

 

153,287

 

Marina wet slips and dry storage spaces(a)

45,905

 

 

45,725

 

 

45,155

 

 

43,615

 

 

40,179

 

 

 

 

 

 

 

 

 

 

 

MH occupancy

96.3

%

 

96.7

%

 

96.6

%

 

96.6

%

 

96.7

%

Annual RV occupancy

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

Blended MH and annual RV occupancy

97.2

%

 

97.5

%

 

97.4

%

 

97.4

%

 

97.4

%

 

 

 

 

 

 

 

 

 

 

United Kingdom

 

 

 

 

 

 

 

 

 

Manufactured home sites

17,330

 

 

616

 

 

N/A

 

N/A

 

N/A

Transient RV sites

3,349

 

 

 

 

N/A

 

N/A

 

N/A

Total sites

20,679

 

 

616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MH occupancy

91.4

%

 

94.8

%

 

N/A

 

N/A

 

N/A

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

 

Quarter Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Revenue Producing Site Net Gains(5)*

 

 

 

 

 

 

 

 

 

MH net leased sites(i)

132

 

65

 

321

 

144

 

226

RV net leased sites(i)

818

 

605

 

489

 

432

 

357

Total net leased sites(i)

950

 

670

 

810

 

576

 

583

(i) These figures do not include UK operations volumes.

Consolidated Balance Sheets
(amounts in millions)

 


 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Land

$

3,766.7

 

 

$

2,556.3

 

Land improvements and buildings

 

10,867.1

 

 

 

9,958.3

 

Rental homes and improvements

 

580.6

 

 

 

591.7

 

Furniture, fixtures and equipment

 

749.9

 

 

 

656.4

 

Investment property

 

15,964.3

 

 

 

13,762.7

 

Accumulated depreciation

 

(2,554.3

)

 

 

(2,337.2

)

Investment property, net

 

13,410.0

 

 

 

11,425.5

 

Cash, cash equivalents and restricted cash

 

184.7

 

 

 

78.2

 

Marketable securities

 

114.6

 

 

 

186.9

 

Inventory of manufactured homes

 

108.1

 

 

 

51.1

 

Notes and other receivables, net

 

509.0

 

 

 

469.6

 

Goodwill

 

954.0

 

 

 

495.4

 

Other intangible assets, net

 

399.1

 

 

 

306.8

 

Other assets, net

 

718.3

 

 

 

480.6

 

Total Assets

$

16,397.8

 

 

$

13,494.1

 

Liabilities

 

 

 

Secured debt

$

3,335.7

 

 

$

3,380.7

 

Unsecured debt

 

3,595.2

 

 

 

2,291.1

 

Distributions payable

 

109.3

 

 

 

98.4

 

Advanced reservation deposits and rent

 

385.2

 

 

 

242.8

 

Accrued expenses and accounts payable

 

361.0

 

 

 

237.5

 

Other liabilities

 

779.9

 

 

 

224.1

 

Total Liabilities

 

8,566.3

 

 

 

6,474.6

 

Commitments and contingencies

 

 

 

Temporary equity

 

293.3

 

 

 

288.9

 

Shareholders' Equity

 

 

 

Common stock

 

1.2

 

 

 

1.2

 

Additional paid-in capital

 

9,159.1

 

 

 

8,175.6

 

Accumulated other comprehensive income / (loss)

 

(28.3

)

 

 

3.1

 

Distributions in excess of accumulated earnings

 

(1,684.7

)

 

 

(1,556.0

)

Total SUI shareholders' equity

 

7,447.3

 

 

 

6,623.9

 

Noncontrolling interests

 

 

 

Common and preferred OP units

 

86.2

 

 

 

86.8

 

Consolidated entities

 

4.7

 

 

 

19.9

 

Total noncontrolling interests

 

90.9

 

 

 

106.7

 

Total Shareholders' Equity

 

7,538.2

 

 

 

6,730.6

 

Total Liabilities, Temporary Equity and Shareholders' Equity

$

16,397.8

 

 

$

13,494.1

 

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

 


 

Three Months Ended

 

Six Months Ended

 

June 30, 2022

 

June 30, 2021

 

Change

 

% Change

 

June 30, 2022

 

June 30, 2021

 

Change

 

% Change

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real property (excluding transient)

$

389.6

 

 

$

328.3

 

 

$

61.3

 

 

18.7

%

 

$

732.8

 

 

$

626.3

 

 

$

106.5

 

 

17.0

%

Real property - transient

 

98.1

 

 

 

77.0

 

 

 

21.1

 

 

27.4

%

 

 

143.1

 

 

 

109.5

 

 

 

33.6

 

 

30.7

%

Home sales

 

142.7

 

 

 

81.8

 

 

 

60.9

 

 

74.4

%

 

 

207.4

 

 

 

134.0

 

 

 

73.4

 

 

54.8

%

Service, retail, dining and entertainment

 

168.0

 

 

 

107.1

 

 

 

60.9

 

 

56.9

%

 

 

248.8

 

 

 

157.8

 

 

 

91.0

 

 

57.7

%

Interest

 

7.3

 

 

 

2.8

 

 

 

4.5

 

 

160.7

%

 

 

14.1

 

 

 

5.4

 

 

 

8.7

 

 

161.1

%

Brokerage commissions and other, net

 

8.6

 

 

 

6.9

 

 

 

1.7

 

 

24.6

%

 

 

16.6

 

 

 

12.9

 

 

 

3.7

 

 

28.7

%

Total Revenues

 

814.3

 

 

 

603.9

 

 

 

210.4

 

 

34.8

%

 

 

1,362.8

 

 

 

1,045.9

 

 

 

316.9

 

 

30.3

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

155.2

 

 

 

123.8

 

 

 

31.4

 

 

25.4

%

 

 

284.5

 

 

 

224.4

 

 

 

60.1

 

 

26.8

%

Real estate tax

 

27.7

 

 

 

23.2

 

 

 

4.5

 

 

19.4

%

 

 

53.8

 

 

 

45.6

 

 

 

8.2

 

 

18.0

%

Home costs and selling

 

92.9

 

 

 

58.8

 

 

 

34.1

 

 

58.0

%

 

 

138.8

 

 

 

100.4

 

 

 

38.4

 

 

38.2

%

Service, retail, dining and entertainment

 

147.9

 

 

 

84.7

 

 

 

63.2

 

 

74.6

%

 

 

218.4

 

 

 

133.1

 

 

 

85.3

 

 

64.1

%

General and administrative

 

62.2

 

 

 

45.3

 

 

 

16.9

 

 

37.3

%

 

 

117.9

 

 

 

83.5

 

 

 

34.4

 

 

41.2

%

Catastrophic event-related charges, net

 

0.1

 

 

 

0.4

 

 

 

(0.3

)

 

(75.0)        %

 

 

0.1

 

 

 

2.8

 

 

 

(2.7

)

 

(96.4)        %

Business combinations

 

15.0

 

 

 

(0.2

)

 

 

15.2

 

 

N/M

 

 

15.5

 

 

 

1.0

 

 

 

14.5

 

 

N/M

Depreciation and amortization

 

150.2

 

 

 

127.1

 

 

 

23.1

 

 

18.2

%

 

 

298.7

 

 

 

251.0

 

 

 

47.7

 

 

19.0

%

Loss on extinguishment of debt

 

0.1

 

 

 

8.1

 

 

 

(8.0

)

 

(98.8)        %

 

 

0.4

 

 

 

8.1

 

 

 

(7.7

)

 

(95.1)        %

Interest

 

55.3

 

 

 

37.7

 

 

 

17.6

 

 

46.7

%

 

 

100.5

 

 

 

77.2

 

 

 

23.3

 

 

30.2

%

Interest on mandatorily redeemable preferred OP units / equity

 

1.1

 

 

 

1.0

 

 

 

0.1

 

 

10.0

%

 

 

2.1

 

 

 

2.0

 

 

 

0.1

 

 

5.0

%

Total Expenses

 

707.7

 

 

 

509.9

 

 

 

197.8

 

 

38.8

%

 

 

1,230.7

 

 

 

929.1

 

 

 

301.6

 

 

32.5

%

Income Before Other Items

 

106.6

 

 

 

94.0

 

 

 

12.6

 

 

13.4

%

 

 

132.1

 

 

 

116.8

 

 

 

15.3

 

 

13.1

%

Gain / (loss) on remeasurement of marketable securities

 

(32.3

)

 

 

27.5

 

 

 

(59.8

)

 

N/M

 

 

(66.8

)

 

 

31.2

 

 

 

(98.0

)

 

N/M

Gain / (loss) on foreign currency exchanges

 

9.0

 

 

 

(0.1

)

 

 

9.1

 

 

N/M

 

 

6.8

 

 

 

(0.1

)

 

 

6.9

 

 

N/M

Gain / (loss) on dispositions of properties

 

(0.1

)

 

 

 

 

 

(0.1

)

 

N/A

 

 

13.3

 

 

 

 

 

 

13.3

 

 

N/A

Other income / (expense), net(6)

 

0.4

 

 

 

(0.2

)

 

 

0.6

 

 

N/M

 

 

(0.2

)

 

 

(0.7

)

 

 

0.5

 

 

(71.4)        %

Gain on remeasurement of notes receivable

 

 

 

 

0.1

 

 

 

(0.1

)

 

N/A

 

 

0.2

 

 

 

0.5

 

 

 

(0.3

)

 

(60.0)        %

Income from nonconsolidated affiliates

 

0.9

 

 

 

0.8

 

 

 

0.1

 

 

12.5

%

 

 

1.8

 

 

 

2.0

 

 

 

(0.2

)

 

(10.0)        %

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

 

0.4

 

 

 

(0.1

)

 

 

0.5

 

 

N/M

 

 

0.5

 

 

 

 

 

 

0.5

 

 

N/A

Current tax expense

 

(3.9

)

 

 

(1.2

)

 

 

(2.7

)

 

(225.0)        %

 

 

(5.2

)

 

 

(1.0

)