Company Announcements

Sun Communities, Inc. Reports 2021 Fourth Quarter Results and 2022 Guidance

Source: OMX
Sun Communities, Inc. Reports 2021 Fourth Quarter Results and 2022 Guidance

Southfield, MI, Feb. 21, 2022 (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 fourth quarter results for 2021.

Financial Results for the Quarter and Year Ended December 31, 2021

For the quarter ended December 31, 2021, total revenues increased by $158.2 million, or 41.2 percent, to $542.4 million compared to approximately $384.3 million for the same period in 2020. Net income attributable to common stockholders increased by $5.2 million, or 69.1 percent, to $12.8 million, or $0.11 per diluted common share, compared to net income attributable to common stockholders of $7.6 million, or $0.07 per diluted common share, for the same period in 2020.

For the year ended December 31, 2021, total revenues increased by $874.3 million, or 62.5 percent, to approximately $2.3 billion compared to $1.4 billion for the same period in 2020. Net income attributable to common stockholders increased by $248.5 million, or 188.8 percent, to $380.2 million, or $3.36 per diluted common share, compared to net income attributable to common stockholders of $131.6 million, or $1.34 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 December 31, 2021, was $1.31 per diluted share and OP unit ("Share") as compared to $1.16 in the corresponding period in 2020, a 12.9 percent increase. Core FFO(1) for the year ended December 31, 2021, was $6.51 per Share as compared to $5.09 in the prior year, an increase of 27.9 percent.

  • Same Community(2) Net Operating Income ("NOI")(1) increased by 8.4 percent and 11.2 percent for the quarter and year ended December 31, 2021, as compared to the corresponding period in 2020.

  • Home Sales Volume increased 19.3 percent to 933 homes for the quarter ended December 31, 2021, as compared to 782 homes in the same period in 2020, and 42.6 percent to 4,088 homes for the year ended December 31, 2021, as compared to 2,866 homes in the same period in 2020.

  • Acquisitions totaled $385.4 million during and subsequent to the quarter ended December 31, 2021, including 12 RV resorts and 7 marinas.

"A strong fourth quarter concluded an incredibly productive year for Sun Communities, where we made meaningful progress in each of our internal and external growth initiatives," said Gary A. Shiffman, Chairman and CEO. "Robust demand for the attainable housing and outdoor experiences that Sun provides resulted in compelling organic growth, driving an 11.2 percent same community NOI increase for the year, further building on our demonstrated strength throughout the pandemic. We expanded our portfolio, completing $1.4 billion of high-quality acquisitions across manufactured housing communities, RV resorts and marinas and opened four new ground-up development properties. We also continued to grow our pipeline for future growth with land purchases for greenfield development and site expansions. We are particularly excited to be entering the UK market with our announced planned acquisition of Park Holidays, a leading holiday park platform with irreplaceable seaside communities. With a proven track record of execution, accretive growth and favorable tailwinds supporting ongoing demand, we are continuing to invest in our platform in order to realize additional opportunities of accelerated growth and create shareholder value for years to come."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.4 percent at December 31, 2021 as compared to 97.3 percent at December 31, 2020, an increase of 10 basis points.

During the quarter ended December 31, 2021, MH and annual RV revenue producing sites increased by 810 sites as compared to an increase of 578 sites during the quarter ended December 31, 2020, a 40.1 percent increase.

During the year ended December 31, 2021, MH and annual RV revenue producing sites increased by 2,483 sites as compared to an increase of 2,505 sites during the year ended December 31, 2020.

Same Community(2) Results

For the 403 MH and RV properties owned and operated by the Company since January 1, 2020, the following table reflects the percentage increases, in total and by segment, for the quarter and year ended December 31, 2021:

 Quarter Ended December 31, 2021
 Total Same Community MH RV
Revenue        8.5        %         5.5        %         15.7        %
Expense        8.7        %         2.4        %         17.5        %
NOI        8.4        %         6.7        %         14.1        %


 Year Ended December 31, 2021
 Total Same Community MH RV
Revenue        11.8        %         5.7        %         24.8        %
Expense        13.1        %         8.1        %         19.4        %
NOI        11.2        %         4.9        %         28.9        %

Same Community adjusted occupancy(3) increased to 98.9 percent at December 31, 2021 from 97.5 percent at December 31, 2020, an increase of 140 basis points.

Home Sales

The following table reflects the home sales volume changes for the quarter and year ended December 31, 2021:

 Quarter Ended Year Ended
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
New home sales volume        149                 156                 (7)         (4.5)        %         732                 570                 162                 28.4        %
Pre-owned home sales volume        784                 626                 158                  25.2        %         3,356                 2,296                 1,060                 46.2        %
Total home sales volume        933                 782                 151                  19.3        %         4,088                 2,866                 1,222                 42.6        %

Marina Results

Marina NOI was approximately $53.6 million and $212.2 million for the quarter and year ended December 31, 2021, respectively. Refer to page 15 for additional information regarding the marina portfolio operating results.

PORTFOLIO ACTIVITY

Acquisitions

During and subsequent to the quarter ended December 31, 2021, the Company acquired the following properties:

Property Name Property Type Sites,
Wet Slips and
Dry Storage Spaces
 Development Sites State / Province Total
Purchase Price
(in millions)
 Month Acquired
Beaver Brook Campground RV         204                 150         ME $        4.5         October
Emerald Coast Marina         311                 —         FL          52.0         November
Tall Pines Harbor Campground RV         241                 —         VA          10.5         November
Wells Beach Resort Campground RV         231                 —         ME          12.2         November
Port Royal Marina         167                 —         SC          20.5         November
Podickory Point Marina         209                 —         MD          3.2         December
Sunroad Marina (completion of August 2022 acquisition) Marina         —                 —         CA          30.2         December
Jellystone Park at Mammoth Cave RV         315                 —         KY          32.5         December
South Bay Marina         333                 —         CA          12.0         December
Wentworth by the Sea Marina         155                 —         NH          14.3         December
Rocky Mountain RV Park RV         75                 —         MT          12.5         December
Haas Lake RV Park Campground RV         492                 —         MI          20.0         December
Pearwood RV Resort RV         144                 —         TX          10.3         December
Holly Shores Camping Resort RV         310                 —         NJ          27.5         December
Pheasant Ridge RV Park RV         130                 —         OR          19.0         December
Coyote Ranch Resort RV         165                 165         TX          12.6         December
Jellystone Park at Whispering Pines RV         131                 —         TX          13.8         December
Hospitality Creek Campground RV         230                 —         NJ          15.6         December
Subtotal           3,843                 315           $        323.2          
             
Acquisitions subsequent to quarter end        
Harrison Yacht Yard Marina         21                 —         MD $        5.8         January
Outer Banks Marina         196                 —         NC          5.0         January
Jarrett Bay Boatworks Marina         12                 —         NC          51.4         February
Subtotal           229                 —           $        62.2          
             
Total acquisitions           4,072                 315           $        385.4          

During and subsequent to the year ended December 31, 2021, the Company acquired 56 properties totaling 16,045 sites, wet slips and dry storage spaces and 1,062 sites for expansion for a total purchase price of $1.5 billion.

During the quarter ended December 31, 2021, the Company entered into a definitive agreement to acquire Park Holidays UK ("Park Holidays"), an owner and operator of holiday communities in the United Kingdom, for £950.0 million, or approximately $1.3 billion. The Company anticipates that the closing of the Park Holidays acquisition (the "Park Holidays Acquisition") will occur in mid-March of 2022. The closing of the Park Holidays Acquisition is subject to the receipt of a required regulatory approval. There can be no assurances as to the actual closing or timing of the closing.

During the quarter ended December 31, 2021, the Company acquired Leisure Systems, Inc. ("LSI") for a total purchase price of $23.0 million. LSI is the franchisor for the Jellystone Park™ system.

Development Activity

During the quarter ended December 31, 2021, the Company completed the construction of nearly 450 sites in six ground-up developments and over 250 expansion sites in three MH communities and three RV resorts.

During the year ended December 31, 2021, the Company completed the construction of over 1,030 sites in eight ground-up developments and re-developments, and nearly 580 expansion sites in six MH communities and five RV resorts.

During the quarter ended December 31, 2021, the Company acquired eight land parcels, which are located across the United States and the United Kingdom for the potential development of nearly 3,300 sites, for total consideration of $165.1 million.

During the year ended December 31, 2021, the Company acquired 11 land parcels, which are located across the United States and the United Kingdom, for the potential development of nearly 4,000 sites for total purchase price of $172.8 million.

               

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of December 31, 2021, the Company had approximately $5.7 billion in debt outstanding. The weighted average interest rate was 3.0 percent and the weighted average maturity was 8.8 years. At December 31, 2021, the Company's net debt to trailing twelve month Recurring EBITDA(1) ratio was 5.7 times. The Company had $65.8 million of unrestricted cash on hand.

Senior Unsecured Notes

During the quarter ended December 31, 2021, Sun Communities Operating Limited Partnership ("SCOLP"), the Company's operating partnership, issued $450.0 million of senior unsecured notes with an interest rate of 2.3 percent and a seven-year term, due November 1, 2028 (the "2028 Notes"), and $150.0 million of senior unsecured notes with an interest rate of 2.7 percent, with a 10-year term, due July 15, 2031 (the "2031 Notes"). The 2031 Notes are additional notes of the same series as the $600.0 million aggregate principal amount of 2.7 percent Senior Notes which are due July 15, 2031 that SCOLP issued on June 28, 2021. The net proceeds from the offering were approximately $595.5 million after deducting underwriters' discounts and estimated offering expenses.

Amended Senior Credit Facility

The Company has obtained commitments from its lender group to amend, extend and upsize its senior credit facility simultaneously with, and conditioned on, the closing of the Park Holidays Acquisition. The proposed amendment (the "Proposed Loan Amendment") would provide for borrowings on the following terms:

  • Up to an aggregate of $4.2 billion in total borrowings with the ability to upsize the total borrowings by an additional $800.0 million (subject to certain conditions), an increase from the existing total borrowing limit of $2.0 billion with the ability to upsize the total borrowings by an additional $1.0 billion (subject to certain conditions);
  • A revolving loan facility of up to $3.05 billion, and a term loan facility of $1.15 billion, to fund the business of the Company and all its subsidiaries;
  • The ability to draw funds from the combined facilities in U.S. dollars, British pounds, Euros, Canadian dollars and Australian dollars, subject to certain limitations;
  • An extension of the maturity date of the revolving loan facility to the fifth anniversary of the date of the Proposed Loan Amendment, assuming the exercise of two six-month extension options;
  • A maturity date for the term loan facility of the third anniversary of the date of the Proposed Loan Amendment; and
  • Interest at a floating rate based on Term SOFR, the Adjusted Eurocurrency Rate, the Australian Bank Bill Swap Bid Rate (BBSY), the Daily SONIA Rate or the Canadian Dollar Offered Rate plus a margin which can range from 0.725 percent to 1.600 percent. As of February 18, 2022, the margin based on the Company's credit ratings would have been 0.850 percent on the proposed revolving loan facility and 0.950 percent on the proposed term loan facility.

The closing of the Proposed Loan Amendment is subject to, among other things, the completion of the Park Holidays Acquisition, the negotiation and execution of definitive documentation acceptable to the Company's lender group and customary closing contingencies. There can be no assurance that the Company will be able to successfully enter into the Proposed Loan Amendment on the terms described above or at all. If the Proposed Loan Amendment is not entered into, the Company may use its previously announced £950 million bridge loan commitment entered into in November 2021 to fund all or a portion of the purchase price for the Park Holidays Acquisition.

Equity Transaction

Public Equity Offerings

In November 2021, the Company entered into two forward sale agreements (the "November 2021 Forward Sale Agreements") relating to an underwritten registered public offering of 4,025,000 shares of the Company's common stock at a public offering price of $185.00 per share. The offering closed on November 18, 2021. The Company did not initially receive any proceeds from the sale of shares of its common stock by the forward purchaser or its affiliates. The Company intends to use the net proceeds, if any, received upon the future settlement of the November 2021 Forward Sale Agreements, which it expects to occur no later than November 18, 2022, to fund a portion of the total consideration for the Park Holidays Acquisition, to repay borrowings outstanding under its senior credit facility, to fund possible future acquisitions of properties and/or for working capital and general corporate purposes.

At the Market Offering

On December 17, 2021, the Company entered into an At the Market Offering Sales Agreement (the "Sales Agreement") with certain sales agents and forward sellers pursuant to which it may sell, from time to time, up to an aggregate gross sales price of $1.25 billion of its common stock. The sales agents and forward sellers are entitled to compensation in an agreed amount not to exceed 2.0 percent. Upon entering into the Sales Agreement, the Company simultaneously terminated the At the Market Offering Sales Agreement, dated June 4, 2021 (the "June 2021 Sales Agreement"), which the Company entered into in connection with a prior "at the market" offering program.

During the quarter ended December 31, 2021, the Company entered into forward sale agreements with respect to 1,712,709 shares of common stock under the June 2021 Sales Agreement for $335.1 million prior to the termination of the agreement. Year to date, the Company entered into forward sale agreements with respect to 1,820,109 shares of common stock for $356.5 million under the June 2021 Sales Agreement (the "ATM Forward Sale Agreements" and together with the November 2021 Forward Sale Agreements, the "Outstanding Forward Sale Agreements"). The ATM Forward Sale Agreements were not settled as of December 31, 2021, but the Company expects to settle them no later than September 2022. The Company intends to use the net proceeds, if any, received upon the future settlement of the ATM Forward Sale Agreements, to fund a portion of the total consideration for the Park Holidays Acquisition, to repay borrowings outstanding under its senior credit facility, to fund possible future acquisitions of properties and/or for working capital and general corporate purposes.

2022 Distributions

The Company's Board of Directors has approved setting the 2022 annual distribution rate at $3.52 per common share, an increase of $0.20, or 6.0 percent, over the current $3.32 per common share for 2021. This increase will begin with the first quarter distribution to be paid in April 2022. While the Board of Directors has adopted the new annual distribution policy, the amount of each quarterly distribution on the Company's common stock will be subject to approval by the Board of Directors.

2022 GUIDANCE

The estimates and assumptions presented below represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions completed through the date of this release, the expected contribution from the Park Holidays Acquisition, expected borrowings under the Proposed Loan Amendment and expected proceeds from the physical settlement of the Outstanding Forward Sale Agreements. These estimates exclude prospective acquisitions other than the Park Holidays Acquisition and prospective capital markets activity other than as described in the preceding sentence. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions, are based in part on the assumptions described below under the caption Notes and Assumptions to 2022 Guidance and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

Earnings and Core FFO(1)

 Net Income
Weighted average common shares outstanding (in millions)(a)120.2
First quarter 2022, basic earnings per share$0.12 - $0.16
Full year 2022, basic earnings per share$2.70 - $2.86


 Core FFO(1)
Weighted average common shares outstanding, fully diluted (in millions)(a)126.0
First quarter 2022, Core FFO(1) per Share$1.23 - $1.27
Full year 2022, Core FFO(1) per Share$7.07 - $7.23


 1Q22 2Q22 3Q22 4Q22
Seasonality of Core FFO(1) per fully diluted Share17.4% 27.5% 35.7% 19.4%

(a) Includes 5.8 million forward equity shares assumed to settle in mid-March 2022.

Basic earnings per share and Core FFO(1) per fully diluted share are calculated independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation.

Total MH, RV and Marina Portfolio

Number of properties: 605

  2021 Actual
(in millions)
 2022E
Change %
Income from real property (excluding transient revenue) $        1,318.4         10.1% - 10.5%
Transient revenue          281.4         20.5% - 21.5%
Income from real property $        1,599.8         11.9% - 12.4%
Property operating and maintenance          522.9         13.5% - 13.9%
Real estate taxes          94.8         11.3% - 11.8%
Total property operating expenses $        617.7         13.1% - 13.6%
Net operating income(1) $        982.1         10.9% - 11.9%

Same Property(2) Portfolio(a)

Number of properties: 529

 MH and RV (428 properties) Marina (101 properties)
 2021 Actual
(in millions)
 2022E
Change %
 2021 Actual
(in millions)
 2022E
Change %
Income from real property(b)$        1,179.6         6.6% - 6.9% $        231.2         5.3% - 6.0%
Total property operating expenses(b)(c)         382.5         7.2% - 7.8%          99.0         4.0% - 4.4%
Net operating income(1)$        797.1         6.0% - 6.8% $        132.2         6.0% - 7.4%

(a) The amounts in the table reflect constant currency, as Canadian currency figures included within the 2021 actual amounts have been translated at the assumed exchange rate used for 2022 guidance.

(b) MH and RV Same Property results net $72.0 million and $76.2 million of utility revenue against the related utility expense in property operating expenses for 2021 and 2022 guidance, respectively. Marina Same Property results net $11.1 million and $11.3 million of utility revenue against the related utility expense in property operating and maintenance expenses for 2021 and 2022 guidance, respectively.

(c) For 2021, MH and RV Same Property total property operating expenses exclude $2.8 million of expense incurred for recently acquired properties to bring the properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy.

For the first quarter 2022, Same Property MH and RV NOI(1) growth is expected to be 5.4% - 6.2% and Same Property Marina NOI(1) growth is expected to be 2.6% - 4.1%.

  1Q22 2Q22 3Q22 4Q22
Same Property NOI(1) Seasonality        
MH 25.0% 24.8% 24.8% 25.4%
RV 16.7% 26.0% 38.9% 18.4%
Marina 18.2% 27.3% 30.7% 23.8%
         
Weighted average monthly rental rate increase        
MH       4.0% - 4.2%
RV       5.7% - 5.9%
MH and RV       4.4% - 4.6%

Total Company Supplementary Information(a):

  2021 Actual
(in millions)
 2022E
Change %
Service, retail, dining and entertainment revenues, net $        64.5         19.6% - 24.7%
Home sales contribution to Core FFO(1)(b), net of home selling expenses $        13.9         (42.6)% - (39.5)%
Interest income $        12.2         68.2% - 72.5%
Brokerage commissions and other revenues, net, and income from nonconsolidated affiliates $        30.1         (10.2)% - (7.9)%
General and administrative expenses $        181.2         27.4% - 30.1%


 2022E
Increase in revenue producing sites2,500 - 2,800
  
New home sales volume650 - 750
Pre-owned home sales volume2,200 - 2,400
  
Newly built ground-up and expansion sites1,600 - 2,000

(a) Total Company supplementary information excludes Park Holidays.

(b) Includes gross profit from new and certain pre-owned home sales. Gross profit from pre-owned home sales of depreciated rental homes is excluded.

Notes and Assumptions to 2022 Guidance:

Inclusion of Acquisitions

The foregoing guidance, except as otherwise noted, includes:

  • Expected contributions from $62.2 million of property acquisitions completed in 2022 through the date of this release; and
  • Expected contribution from the Park Holidays Acquisition.

Park Holidays Acquisition Assumptions

The foregoing guidance assumes:

  • The Park Holidays Acquisition closes in mid-March 2022;
  • Estimated contribution of $99.5 - $104.6 million of EBITDA, inclusive of $29.1 - $30.5 million of general and administrative expenses;
  • Estimated income tax expense of $20.6 - $21.3 million;
  • The Outstanding Forward Sale Agreements are physically settled in mid-March 2022 and the Company receives net proceeds from such settlement of approximately $1.06 billion, which is used to pay down the Company's senior credit facility; and
  • The Proposed Loan Amendment is completed in mid-March 2022 and on that date the Company borrows approximately $1.3 billion in British pounds to fund the purchase price for the Park Holidays Acquisition.

The table below shows Park Holidays' full year EBITDA seasonality if the transaction had closed on January 1, 2022:

  1Q22 2Q22 3Q22 4Q22
Seasonality of Park Holidays 6.7% 31.6% 49.9% 11.8%

Actual future events may not coincide with the foregoing assumptions and other key assumptions relating to the 2022 guidance. Without limiting the foregoing or the matters described under the caption Cautionary Statement Regarding Forward-Looking Statements below, in particular:

  • The closing of the Park Holidays Acquisition is subject to the receipt of a required regulatory approval and there can be no assurances as to the actual closing or timing of the closing;
  • The closing of the Proposed Loan Amendment is subject to, among other things, the completion of the Park Holidays Acquisition, the negotiation and execution of definitive documentation acceptable to the Company's lender group, and customary closing contingencies. There can be no assurance that the Company will be able to successfully enter into the Proposed Loan Amendment on the terms described in this document or at all; and
  • The proceeds to the Company from the settlement of the Outstanding Forward Sale Agreements may be less than the amount assumed above.

If any assumptions relating to the 2022 guidance prove to be incorrect, the foregoing estimates may differ materially from actual results.

EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter results will be held on Tuesday, February 22, 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 March 8, 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 13725426. 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 December 31, 2021, owned, operated, or had an interest in a portfolio of 602 developed MH, RV and marina properties comprising over 159,000 developed sites and over 45,000 wet slips and dry storage spaces in 39 states, Canada and Puerto Rico.

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 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, 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 (including the Park Holidays Acquisition), developments and expansions successfully;
  • The Company's liquidity and refinancing demands;
  • The Company's ability to obtain or refinance maturing debt and to complete the Proposed Loan Amendment;
  • The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes;
  • Availability of capital;
  • The Company’s ability to physically settle the Outstanding Forward Sale Agreements and receive the expected amount of proceeds;
  • Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and British pound;
  • 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, 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 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
Barclays Anthony Powell (212) 526-8768 anthony.powell@barclays.com
  Allison Gelman (212) 526-3367 allison.gelman@barclays.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
RBC Capital Markets Brad Heffern (512) 708-6311 brad.heffern@rbccm.com
Robert W. Baird & Co. Wesley Golladay (216) 737-7510 wgolladay@rwbaird.com
UBS Michael Goldsmith (212) 713-2951 michael.goldsmith@ubs.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 December 31, 2021)

 



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

 


 Quarter Ended
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Financial Information          
Total revenues$        542,433         $        684,294         $        603,863         $        442,015         $        384,265         
Net income$        14,786         $        250,161         $        120,849         $        27,941         $        9,818         
Net income attributable to Sun Communities Inc. common stockholders$        12,830         $        231,770         $        110,770         $        24,782         $        7,586         
Basic earnings per share*$        0.11         $        2.00         $        0.98         $        0.23         $        0.07         
Diluted earnings per share*$        0.11         $        2.00         $        0.98         $        0.23         $        0.07         
           
Cash distributions declared per common share*$        0.83         $        0.83         $        0.83         $        0.83         $        0.79         
           
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)
$        152,302         $        223,069         $        198,017         $        135,925         $        110,849         
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*$        1.28         $        1.92         $        1.70         $        1.22         $        1.03         
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)
$        155,825         $        244,535         $        209,620         $        141,036         $        124,872         
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*$        1.31         $        2.11         $        1.80         $        1.26         $        1.16         
Recurring EBITDA(1) $        208,570         $        314,499         $        268,225         $        190,830         $        168,527         
           
Balance Sheet          
Total assets$        13,494,084         $        12,583,296         $        12,040,990         $        11,454,209         $        11,206,586         
Total debt$        5,671,834         $        4,689,437         $        4,311,175         $        4,417,935         $        4,757,076         
Total liabilities$        6,474,597         $        5,488,469         $        5,099,563         $        5,101,512         $        5,314,879         


 Quarter Ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Operating Information*          
Properties        602          584          569          562          552  
           
Manufactured home sites        98,621          98,301          97,448          96,876          96,688  
Annual RV sites        30,540          29,640          28,807          28,441          27,564  
Transient RV sites        29,847          27,922          27,032          26,295          25,043  
Total sites        159,008          155,863          153,287          151,612          149,295  
Marina wet slips and dry storage spaces        45,155          43,615 (a)        40,179 (a)        39,338 (a)        38,739 (a)
           
MH occupancy        96.6        %         96.6        %         96.7        %         96.5        %         96.6        % 
Annual RV occupancy        100.0        %         100.0        %         100.0        %         100.0        %         100.0        % 
Blended MH and annual RV occupancy        97.4        %         97.4        %         97.4        %         97.3        %         97.3        % 
           
New home sales volume        149          207          227          149          156  
Pre-owned home sales volume        784          955          931          686          626  
Total home sales volume        933          1,162          1,158          835          782  

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

 Quarter Ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Revenue Producing Site Net Gains(5)          
MH net leased sites        321         144         226                 127         247 
RV net leased sites        489         432         357                 387         331 
Total net leased sites        810         576         583                 514         578 

Consolidated Balance Sheets
(amounts in thousands)

 


  December 31, 2021 December 31, 2020
Assets    
Land $        2,556,284          $        2,119,364         
Land improvements and buildings          9,958,320                   8,480,597         
Rental homes and improvements          591,733                   637,603         
Furniture, fixtures and equipment          656,367                   447,039         
Investment property          13,762,704                   11,684,603         
Accumulated depreciation          (2,337,247)          (1,968,812)
Investment property, net          11,425,457                   9,715,791         
Cash, cash equivalents and restricted cash          78,198                   92,641         
Marketable securities          186,898                   124,726         
Inventory of manufactured homes          51,055                   46,643         
Notes and other receivables, net          469,594                   221,650         
Goodwill          495,353                   428,833         
Other intangible assets, net          306,755                   305,611         
Other assets, net          480,774                   270,691         
Total Assets $        13,494,084          $        11,206,586         
Liabilities    
Secured debt $        3,380,739          $        3,489,983         
Unsecured debt          2,291,095                   1,267,093         
Distributions payable          98,372                   86,988         
Advanced reservation deposits and rent          242,778                   187,730         
Accrued expenses and accounts payable          237,529                   148,435         
Other liabilities          224,084                   134,650         
Total Liabilities          6,474,597                   5,314,879         
Commitments and contingencies    
Temporary equity          288,882                   264,379         
Stockholders' Equity    
Common stock          1,160                   1,076         
Additional paid-in capital          8,175,676                   7,087,658         
Accumulated other comprehensive income          3,053                   3,178         
Distributions in excess of accumulated earnings          (1,555,994)          (1,566,636)
Total Sun Communities, Inc. stockholders' equity          6,623,895                   5,525,276         
Noncontrolling interests    
Common and preferred OP units          86,766                   85,968         
Consolidated entities          19,944                   16,084         
Total noncontrolling interests          106,710                   102,052         
Total Stockholders' Equity          6,730,605                   5,627,328         
Total Liabilities, Temporary Equity and Stockholders' Equity $        13,494,084          $        11,206,586         

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

 


 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
Revenues               
Real property (excluding transient)$        338,887          $        264,198          $        74,689                  28.3        % $        1,318,424          $        957,689          $        360,735                  37.7        %
Real property - transient         45,826                   35,957                   9,869                  27.4        %          281,432                   172,430                   109,002                  63.2        %
Home sales         65,006                   48,920                   16,086                  32.9        %          280,152                   175,699                   104,453                  59.4        %
Service, retail, dining and entertainment         80,135                   28,518                   51,617                  181.0        %          350,238                   65,180                   285,058                  437.3        %
Interest         4,192                   2,510                   1,682                  67.0        %          12,232                   10,119                   2,113                  20.9        %
Brokerage commissions and other, net         8,387                   4,162                   4,225                  101.5        %          30,127                   17,230                   12,897                  74.9        %
Total Revenues         542,433                   384,265                   158,168                  41.2        %          2,272,605                   1,398,347                   874,258                  62.5        %
Expenses               
Property operating and maintenance         131,309                   96,798                   34,511                  35.7        %          522,918                   336,211                   186,707                  55.5        %
Real estate tax         24,454                   20,265                   4,189                  20.7        %          94,815                   72,606                   22,209                  30.6        %
Home costs and selling         48,850                   41,086                   7,764                  18.9        %          205,770                   147,075                   58,695                  39.9        %
Service, retail, dining and entertainment         74,646                   26,457                   48,189                  182.1        %          285,768                   57,996                   227,772                  392.7        %
General and administrative         54,604                   30,906                   23,698                  76.7        %          181,210                   109,616                   71,594                  65.3        %
Catastrophic event-related charges, net         (858)          831                   (1,689)         (203.2)        %          2,239                   885                   1,354                  153.0        %
Business combinations         331                   23,008                   (22,677)         (98.6)        %          1,362                   23,008                   (21,646)         (94.1)        %
Depreciation and amortization         144,677                   117,423                   27,254                  23.2        %          522,745                   376,876                   145,869                  38.7        %
Loss on extinguishment of debt         19                   —                   19          N/A          8,127                   5,209                   2,918                  56.0        %
Interest         42,405                   35,013                   7,392                  21.1        %          158,629                   129,071                   29,558                  22.9        %
Interest on mandatorily redeemable preferred OP units / equity         1,047                   1,047                   —                  —        %          4,171                   4,177                   (6)         (0.1)        %
Total Expenses         521,484                   392,834                   128,650                  32.7        %          1,987,754                   1,262,730                   725,024                  57.4        %
Income / (loss) Before Other Items         20,949                   (8,569)          29,518                  344.5        %          284,851                   135,617                   149,234                  110.0        %
Gain / (loss) on remeasurement of marketable securities         (9,770)          8,765                   (18,535)         (211.5)        %          33,457                   6,129                   27,328                  445.9        %
Gain / (loss) on foreign currency translation         3,364                   10,162                   (6,798)         (66.9)        %          (3,743)          7,666                   (11,409)         (148.8)        %
Gain on dispositions of properties         —                   —                   —          N/A          108,104                   5,595                   102,509          N/M
Other expense, net(6)         (2,081)          (298)          (1,783) N/M          (12,122)          (5,188)          (6,934)         133.7        %
Gain / (loss) on remeasurement of notes receivable         124                   (964)          1,088                  112.9        %          685                   (3,275)          3,960                  (120.9)        %
Income from nonconsolidated affiliates         1,065                   392                   673                  171.7        %          3,992                   1,740                   2,252                  129.4        %
Loss on remeasurement of investment in nonconsolidated affiliates         (30)          (103)          73                  (70.9)        %          (160)          (1,608)          1,448                  (90.0)        %
Current tax benefit / (expense)         182                   (328)          510                  155.5        %          (1,236)          (790)          (446)         56.5        %
Deferred tax benefit / (expense)         983                   761                   222                  29.2        %          (91)          1,565                   (1,656)         (105.8)        %
Net Income         14,786                   9,818                   4,968                  50.6        %          413,737                   147,451                   266,286                  180.6        %
Less: Preferred return to preferred OP units / equity interests         3,095                   2,136                   959                  44.9        %          12,095                   6,935                   5,160                  74.4        %
Less: Income / (loss) attributable to noncontrolling interests         (1,139)          96                   (1,235) N/M          21,490                   8,902                   12,588                  141.4        %
Net Income Attributable to Sun Communities, Inc.$        12,830          $        7,586          $        5,244                  69.1        % $        380,152          $        131,614          $        248,538                  188.8        %
                
Weighted average common shares outstanding - basic         115,179                   104,275                   10,904                  10.5        %          112,582                   97,521                   15,061                  15.4        %
Weighted average common shares outstanding - diluted         115,700                   104,744                   10,956                  10.5        %          115,144                   97,522                   17,622                  18.1        %
                
Basic earnings per share$        0.11          $        0.07          $        0.04                  57.1        % $        3.36          $        1.34          $        2.02                  150.7        %
Diluted earnings per share$        0.11          $        0.07          $        0.04                  57.1        % $        3.36          $        1.34          $        2.02                  150.7        %

N/M = Percentage change is not meaningful.

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

 


Outstanding Securities - As of December 31, 2021
          
 Number of Units / Shares Outstanding Conversion Rate* If Converted(1) Issuance Price Per Unit* Annual Distribution Rate*
Non-convertible Securities         
Common shares115,976 N/A N/A N/A $3.32^
          
Convertible Securities         
Common OP units2,538 1.0000 2,538 N/A Mirrors common shares distributions
          
Series A-1 preferred OP units275 2.4390 671 $100 6.00%
Series A-3 preferred OP units40 1.8605 75 $100 4.50%
Series C preferred OP units306 1.1100 340 $100 5.00%
Series D preferred OP units489 0.8000 391 $100 4.00%
Series E preferred OP units90 0.6897 62 $100 5.25%
Series F preferred OP units90 0.6250 56 $100 3.00%
Series G preferred OP units241 0.6452 155 $100 3.20%
Series H preferred OP units581 0.6098 355 $100 3.00%
Series I preferred OP units922 0.6098 562 $100 3.00%
Series J preferred OP units240 0.6061 145 $100 2.85%

^ 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 December 31, 2021      
       
Equity Shares Share Price* Total
Common shares         115,976         $        209.97         $        24,351,481        
Common OP units         2,538         $        209.97                  532,904        
Subtotal         118,514           $        24,884,385        
       
Preferred OP units, as converted         2,812         $        209.97                  590,436        
Total diluted shares outstanding         121,326           $        25,474,821        
       
Debt      
Secured debt     $        3,380,739        
Unsecured debt              2,291,095        
Total debt     $        5,671,834        
       
Total Capitalization     $        31,146,655        

Reconciliations to Non-GAAP Financial Measures

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

 


 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders$        12,830          $        7,586          $        380,152          $        131,614         
Adjustments       
Depreciation and amortization         144,489                   117,354                   521,856                   376,897         
Depreciation on nonconsolidated affiliates         32                   38                   123                   66         
(Gain) / loss on remeasurement of marketable securities         9,770                   (8,765)          (33,457        )          (6,129)
Loss on remeasurement of investment in nonconsolidated affiliates         30                   103                   160                   1,608         
(Gain) / loss on remeasurement of notes receivable         (124)          964                   (685        )          3,275         
Income / (loss) attributable to noncontrolling interests         (1,330)          4                   14,783                   7,881         
Preferred return to preferred OP units         845                   494                   1,888                   2,231         
Interest expense on Aspen preferred OP units         —                   —                   2,056                   —         
Gain on dispositions of properties         —                   —                   (108,104        )          (5,595)
Gain on dispositions of assets, net         (14,240)          (6,929)          (60,485        )          (22,180)
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)$        152,302          $        110,849          $        718,287          $        489,668         
        
Adjustments       
Business combination expense and other acquisition related costs(7)         3,291                   24,043                   10,005                   25,334         
Loss on extinguishment of debt         19                   —                   8,127                   5,209         
Catastrophic event-related charges, net         (857)          831                   2,239                   885         
Gain / (loss) on earnings - catastrophic event-related charges         (200)          —                   200                   —         
(Gain) / loss on foreign currency translation         (3,364)          (10,162)          3,743                   (7,666)
Other adjustments, net(8)         4,634                   (689)          16,139                   2,130         
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)$        155,825          $        124,872          $        758,740          $        515,560         
        
Weighted average common shares outstanding - basic         115,179                   104,275                   112,582                   97,521         
Add       
Common shares dilutive effect from forward equity sale         207                   —                   —                   —         
Common stock issuable upon conversion of stock options         —                   1                   —                   1         
Restricted stock         314                   468                   220                   455         
Common OP units         2,527                   2,496                   2,562                   2,458         
Common stock issuable upon conversion of certain preferred OP units         1,086                   798                   1,151                   907         
Weighted Average Common Shares Outstanding - Fully Diluted         119,313                   108,038                   116,515                   101,342         
        
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted$        1.28          $        1.03          $        6.16          $        4.83         
        
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted$        1.31          $        1.16          $        6.51          $        5.09         

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

 


 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders$        12,830          $        7,586          $        380,152          $        131,614         
Interest income         (4,192)          (2,510)          (12,232)          (10,119)
Brokerage commissions and other revenues, net         (8,387)          (4,162)          (30,127)          (17,230)
General and administrative expense         54,604                   30,906                   181,210                   109,616         
Catastrophic event-related charges, net         (858)          831                   2,239                   885         
Business combination expense         331                   23,008                   1,362                   23,008         
Depreciation and amortization         144,677                   117,423                   522,745                   376,876         
Loss on extinguishment of debt         19                   —                   8,127                   5,209         
Interest expense         42,405                   35,013                   158,629                   129,071         
Interest on mandatorily redeemable preferred OP units / equity         1,047                   1,047                   4,171                   4,177         
(Gain) / loss on remeasurement of marketable securities         9,770                   (8,765)          (33,457)          (6,129)
(Gain) / loss on foreign currency translation         (3,364)          (10,162)          3,743                   (7,666)
Gain on disposition of property         —                   —                   (108,104)          (5,595)
Other expense, net(6)         2,081                   298                   12,122                   5,188         
(Gain) / loss on remeasurement of notes receivable         (124)          964                   (685)          3,275         
Income from nonconsolidated affiliates         (1,065)          (392)          (3,992)          (1,740)
Loss on remeasurement of investment in nonconsolidated affiliates         30                   103                   160                   1,608         
Current tax (benefit) / expense         (182)          328                   1,236                   790         
Deferred tax (benefit) / expense         (983)          (761)          91                   (1,565)
Preferred return to preferred OP units / equity interests         3,095                   2,136                   12,095                   6,935         
Less: Income / (loss) attributable to noncontrolling interests         (1,139)          96                   21,490                   8,902         
NOI(1)$        250,595          $        192,987          $        1,120,975          $        757,110         


 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Real Property NOI(1)$        228,950         $        183,092         $        982,123         $        721,302        
Home Sales NOI(1)         16,156                  7,834                  74,382                  28,624        
Service, retail, dining and entertainment NOI(1)         5,489                  2,061                  64,470                  7,184        
NOI(1)$        250,595         $        192,987         $        1,120,975         $        757,110        

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

 


 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders$        12,830          $        7,586          $        380,152          $        131,614         
Adjustments       
Depreciation and amortization         144,677                   117,423                   522,745                   376,876         
Loss on extinguishment of debt         19                   —                   8,127                   5,209         
Interest expense         42,405                   35,013                   158,629                   129,071         
Interest on mandatorily redeemable preferred OP units / equity         1,047                   1,047                   4,171                   4,177         
Current tax (benefit) / expense         (182)          328                   1,236                   790         
Deferred tax (benefit) / expense         (983)          (761)          91                   (1,565)
Income from nonconsolidated affiliates         (1,065)          (392)          (3,992)          (1,740)
Less: Gain on dispositions of properties         —                   —                   (108,104)          (5,595)
Less: Gain on dispositions of assets, net         (14,240)          (6,929)          (60,485)          (22,180)
EBITDAre(1)$        184,508          $        153,315          $        902,570          $        616,657         
Adjustments       
Catastrophic event-related charges, net         (858)          831                   2,239                   885         
Business combination expense         331                   23,008                   1,362                   23,008         
(Gain) / loss on remeasurement of marketable securities         9,770                   (8,765)          (33,457)          (6,129)
(Gain) / loss on foreign currency translation         (3,364)          (10,162)          3,743                   (7,666)
Other expense, net(6)         2,081                   298                   12,122                   5,188         
(Gain) / loss on remeasurement of notes receivable         (124)          964                   (685)          3,275         
Loss on remeasurement of investment in nonconsolidated affiliates         30                   103                   160                   1,608         
Preferred return to preferred OP units / equity interests         3,095                   2,136                   12,095                   6,935         
Income / (loss) attributable to noncontrolling interests         (1,139)          96                   21,490                   8,902         
Plus: Gain on dispositions of assets, net         14,240                   6,929                   60,485                   22,180         
Recurring EBITDA(1) $        208,570          $        168,753          $        982,124          $        674,843         

Non-GAAP and Other Financial Measures

Debt Analysis
(amounts in thousands)

 


 Quarter Ended
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Debt Outstanding         
Secured debt$        3,380,739          $        3,403,436          $        3,457,734          $        3,472,930          $        3,489,983         
Unsecured debt         
Senior unsecured notes         1,186,350                   591,252                   591,688                   —                   —         
Line of credit and other debt(9)         1,034,833                   624,837                   191,841                   875,093                   1,197,181         
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         
Total unsecured debt         2,291,095                   1,286,001                   853,441                   945,005                   1,267,093         
Total debt$        5,671,834          $        4,689,437          $        4,311,175          $        4,417,935          $        4,757,076         
          
% Fixed / Floating         
Fixed         81.8        %          86.7        %          94.7        %          79.3        %          74.0        %
Floating         18.2        %          13.3        %          5.3        %          20.7        %          26.0        %
Total         100.0        %          100.0        %          100.0        %          100.0        %          100.0        %
          
Weighted Average Interest Rates         
Secured debt         3.78        %          3.78        %          3.75        %          3.75        %          3.75        %
Senior unsecured notes         2.55        %          2.70        %          2.70        %          —        %          —        %
Line of credit and other debt(9)         0.98        %          0.98        %          0.93        %          1.77        %          2.11        %
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        %
Total average         3.04        %          3.30        %          3.52        %          3.39        %          3.37        %
          
Debt Ratios         
Net Debt / Recurring EBITDA(1) (TTM)         5.7                   4.9                   5.1                   6.1                   6.9         
Net Debt / Enterprise Value         18.0        %          17.1        %          16.8        %          19.7        %          21.4        %
Net Debt / Gross Assets         35.4        %          31.2        %          29.6        %          31.8        %          35.5        %
          
Coverage Ratios         
Recurring EBITDA(1) (TTM) / Interest 6.2   6.1   5.6   5.0   4.9 
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution 6.0   6.0   5.5   4.8   4.8 


Maturities / Principal Amortization Next Five Years 2022   2023   2024   2025   2026 
Secured debt         
Maturities$        70,678          $        185,619          $        315,330          $        50,528          $        521,582         
Principal amortization         61,281                   60,865                   57,424                   54,019                   45,867         
Line of credit and other debt(9)         10,000                   10,000                   10,000                   1,004,833                   —         
Preferred Equity - Sun NG Resorts - mandatorily redeemable         —                   —                   33,428                   1,821                   —         
Preferred OP units - mandatorily redeemable         —                   —                   27,373                   —                   —         
Total$        141,959          $        256,484          $        443,555          $        1,111,201          $        567,449         
          
Weighted average rate of maturities         4.48        %          4.08        %          4.47        %          4.04        %          3.75        %

Same Community(2) Summary
(amounts in thousands)

 


                        
 Three Months Ended
 Total Same Community MH RV
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
Financial Information                       
Revenue                       
Real property (excluding transient)$        222,383         $        208,958         $        13,425                 6.4        % $        174,863         $        167,575         $        7,288                  4.3        % $        47,520         $        41,383         $        6,137                 14.8        %
Real property - transient         30,822                  26,800                  4,022                 15.0        %          261                  379                  (118)         (31.1)        %          30,561                  26,421                  4,140                 15.7        %
Other         7,934                  4,938                  2,996                 60.7        %          4,793                  2,520                  2,273                  90.2        %          3,141                  2,418                  723                 29.9        %
Total Operating         261,139                  240,696                  20,443                 8.5        %          179,917                  170,474                  9,443                  5.5        %          81,222                  70,222                  11,000                 15.7        %
Expense                       
Property Operating(10)(11)         83,982                  77,247                  6,735                 8.7        %          45,842                  44,775                  1,067                  2.4        %          38,140                  32,472                  5,668                 17.5        %
Real Property NOI(1)$        177,157         $        163,449         $        13,708                 8.4        % $        134,075         $        125,699         $        8,376                  6.7        % $        43,082         $        37,750         $        5,332                 14.1        %


 Year Ended
 Total Same Community MH RV
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
Financial Information                       
Revenue                       
Real property (excluding Transient)$        875,361         $        824,669         $        50,692                 6.1        % $        693,374         $        663,564         $        29,810                  4.5        % $        181,987         $        161,105         $        20,882                 13.0        %
Real property - transient         194,754                  144,077                  50,677                 35.2        %          1,460                  1,722                  (262)         (15.2)        %          193,294                  142,355                  50,939                 35.8        %
Other         39,011                  23,362                  15,649                 67.0        %          19,265                  10,298                  8,967                  87.1        %          19,746                  13,064                  6,682                 51.1        %
Total Operating         1,109,126                  992,108                  117,018                 11.8        %          714,099                  675,584                  38,515                  5.7        %          395,027                  316,524                  78,503                 24.8        %
Expense                       
Property Operating(10)(11)         345,737                  305,561                  40,176                 13.1        %          182,771                  169,072                  13,699                  8.1        %          162,966                  136,489                  26,477                 19.4        %
Real Property NOI(1)$        763,389         $        686,547         $        76,842                 11.2        % $        531,328         $        506,512         $        24,816                  4.9        % $        232,061         $        180,035         $        52,026                 28.9        %

Same Community(2) Summary (continued)

 


 As of     
 December 31, 2021 December 31, 2020 Change % Change
Other Information       
Number of properties         403                   403                   —           
        
MH occupancy         97.6        %      
RV occupancy         100.0        %      
MH & RV blended occupancy(3)         98.2        %      
        
Adjusted MH occupancy(3)         98.6        %      
Adjusted RV occupancy(3)         100.0        %      
Adjusted MH & RV blended occupancy(3)         98.9        %          97.5        %          1.4        %  
        
Sites available for development         6,866                   7,332                   (466        )  
        
Monthly base rent per site - MH$        611          $        591          $        20          3.4%(13)
Monthly base rent per site - RV(12)$        537          $        512          $        25          4.8%(13)
Monthly base rent per site - Total(12)$        593          $        573          $        20          3.6%(13)

Marina Summary
(amounts in thousands except for statistical data)

 


     
  Three Months Ended Year Ended
  December 31, 2021 December 31, 2021
Financial Information    
Revenues    
Real property (excluding transient) $        70,076         $        250,984
Real property - transient          3,414                  14,790
Other          2,919                  14,053
Total Operating          76,409                  279,827
Expenses    
Property Operating(a)          31,895                  117,711
Real Property NOI          44,514                  162,116
Service, retail, dining and entertainment    
Revenue          68,468                  269,170
Expense          59,408                  219,040
NOI          9,060                  50,130
     
Marina NOI $        53,574         $        212,246
     
Other Information    December 31, 2021
Number of properties(b)            125
Total wet slips and dry storage            45,155

(a) Marina results net $4.5 million for the quarter ended December 31, 2021, and $15.0 million for the year ended December 31, 2021 of certain utility revenue against the related utility expense in property operating and maintenance expense.

(b) Marina properties consisted of 19 properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary(14)
(amounts in thousands except for statistical data)

 


    
 Three Months Ended Year Ended
 December 31, 2021 December 31, 2021
Financial Information   
Revenues   
Real property (excluding transient)$        11,111 $        40,359         
Real property - transient         11,590          71,888         
Other         1,845          9,202         
Total Operating         24,546          121,449         
Expenses   
Property Operating(a)         17,267          64,832         
Real Property NOI$        7,279 $        56,617         
    
Other Information   December 31, 2021
Number of properties           74         
Occupied sites           8,126         
Developed sites           9,278         
Occupancy %           87.6        %
Transient sites           11,307         

(a) MH and RV Acquisitions and Other results net $1.3 million and $5.4 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and year ended December 31, 2021.

Home Sales Summary
(amounts in thousands except for *)

 


                
 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
Financial Information               
New Homes               
New home sales$        25,686          $        21,192          $        4,494                  21.2        % $        114,852          $        79,728          $        35,124                  44.1        %
New home cost of sales         21,304                   17,922                   3,382                  18.9        %          94,103                   65,533                   28,570                  43.6        %
Gross Profit – new homes         4,382                   3,270                   1,112                  34.0        %          20,749                   14,195                   6,554                  46.2        %
Gross margin % – new homes         17.1        %          15.4        %          1.7        %            18.1        %          17.8        %          0.3        %  
Average selling price – new homes*$        172,389          $        135,846          $        36,543                  26.9        % $        156,902          $        139,874          $        17,028                  12.2        %
                
Pre-owned Homes               
Pre-owned home sales$        39,320          $        27,728          $        11,592                  41.8        % $        165,300          $        95,971          $        69,329                  72.2        %
Pre-owned home cost of sales         22,655                   18,512                   4,143                  22.4        %          93,024                   66,351                   26,673                  40.2        %
Gross Profit – pre-owned homes         16,665                   9,216                   7,449                  80.8        %          72,276                   29,620                   42,656                  144.0        %
Gross margin % – pre-owned homes         42.4        %          33.2        %          9.2        %            43.7        %          30.9        %          12.8        %  
Average selling price – pre-owned homes*$        50,153          $        44,294          $        5,859                  13.2        % $        49,255          $        41,799          $        7,456                  17.8        %
                
Total Home Sales               
Revenue from home sales$        65,006          $        48,920          $        16,086                  32.9        % $        280,152          $        175,699          $        104,453                  59.4        %
Cost of home sales         43,959                   36,434                   7,525                  20.7        %          187,127                   131,884                   55,243                  41.9        %
Home selling expenses         4,891                   4,652                   239                  5.1        %          18,643                   15,191                   3,452                  22.7        %
Home Sales NOI(1)$        16,156          $        7,834          $        8,322                  106.2        % $        74,382          $        28,624          $        45,758                  159.9        %
                
Other Information               
New home sales volume*         149                   156                   (7        )         (4.5)        %          732                   570                   162                  28.4        %
Pre-owned home sales volume*         784                   626                   158                  25.2        %          3,356                   2,296                   1,060                  46.2        %
Total home sales volume*         933                   782                   151                  19.3        %          4,088                   2,866                   1,222                  42.6        %

Rental Program Summary
(amounts in thousands except for *)

 


                
 Three Months Ended Year Ended
 December 31, 2021 December 31, 2020 Change % Change December 31, 2021 December 31, 2020 Change % Change
Financial Information               
Revenues               
Home rent$        15,991         $        15,939         $        52                  0.3        % $        66,442         $        62,546         $        3,896                  6.2        %
Site rent         16,320                  19,124                  (2,804)         (14.7)        %          71,670                  74,823                  (3,153)         (4.2)        %
Total         32,311                  35,063                  (2,752)         (7.8)        %          138,112                  137,369                  743                  0.5        %
                
Expenses               
Rental Program operating and maintenance         4,393                  5,832                  (1,439)         (24.7)        %          19,725                  20,408                  (683)         (3.3)        %
Rental Program NOI(1)$        27,918         $        29,231         $        (1,313)         (4.5)        % $        118,387         $        116,961         $        1,426                  1.2        %
                
Other Information               
Number of sold rental homes*         272                  269                  3                  1.1        %          1,071                  850                  221                  26.0        %
Number of occupied rentals, end of period*                 9,870                  11,752                  (1,882)         (16.0)        %
Investment in occupied rental homes, end of period        $        556,342         $        629,162         $        (72,820)         (11.6)        %
Weighted average monthly rental rate, end of period*        $        1,110         $        1,042         $        68                  6.5        %

Rental Program NOI is included in Real Property NOI. 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(15)        
           
           
  12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
FLORIDA          
Properties         132                  131                  129                  128                  128         
MH & Annual RV Developed sites         40,783                  40,500                  40,171                  40,011                  39,803         
Occupied MH & Annual RV         40,019                  39,747                  39,402                  39,283                  39,063         
MH & Annual RV Occupancy %         98.1        %         98.1        %         98.1        %         98.2        %         98.1        %
Transient RV sites         5,950                  6,163                  5,895                  5,823                  6,011         
Sites for development         1,268                  1,414                  1,414                  1,497                  1,497         
MICHIGAN          
Properties         84                  83                  75                  74                  74         
MH & Annual RV Developed sites         32,257                  31,997                  29,600                  29,092                  29,086         
Occupied MH & Annual RV         31,061                  30,782                  28,671                  28,145                  28,109         
MH & Annual RV Occupancy %         96.3        %         96.2        %         96.9        %         96.7        %         96.6        %
Transient RV sites         869                  554                  509                  541                  546         
Sites for development         1,422                  1,481                  1,182                  1,182                  1,182         
CALIFORNIA          
Properties         36                  37                  36                  36                  35         
MH & Annual RV Developed sites         6,787                  6,760                  6,736                  6,734                  6,675         
Occupied MH & Annual RV         6,672                  6,642                  6,613                  6,609                  6,602         
MH & Annual RV Occupancy %         98.3        %         98.3        %         98.2        %         98.1        %         98.9        %
Transient RV sites         2,147                  2,410                  2,416                  2,418                  2,231         
Sites for development         534                  534                  127                  127                  373         
TEXAS           
Properties         30                  26                  25                  24                  24         
MH & Annual RV Developed sites         8,192                  8,004                  7,947                  7,928                  7,766         
Occupied MH & Annual RV         8,006                  7,805                  7,731                  7,671                  7,572         
MH & Annual RV Occupancy %         97.7        %         97.5        %         97.3        %         96.8        %         97.5        %
Transient RV sites         2,576                  2,131                  1,835                  1,773                  1,810         
Sites for development         1,184                  1,066                  1,194                  1,275                  1,378         
ONTARIO, CANADA          
Properties         16                  16                  16                  16                  15         
MH & Annual RV Developed sites         4,363                  4,361                  4,302                  4,199                  4,090         
Occupied MH & Annual RV         4,363                  4,361                  4,302                  4,199                  4,090         
MH & Annual RV Occupancy %         100.0        %         100.0        %         100.0        %         100.0        %         100.0        %
Transient RV sites         874                  807                  870                  964                  966         
Sites for development         1,429                  1,525                  1,525                  1,525                  1,525         
CONNECTICUT          
Properties         16                  16                  16                  16                  16         
MH & Annual RV Developed sites         1,902                  1,901                  1,901                  1,897                  1,897         
Occupied MH & Annual RV         1,765                  1,760                  1,757                  1,746                  1,739         
MH & Annual RV Occupancy %         92.8        %         92.6        %         92.4        %         92.0        %         91.7        %
Transient RV sites         103                  104                  104                  108                  108         
Sites for development         —                  —                  —                  —                  —         
MAINE          
Properties         15                  13                  13                  13                  13         
MH & Annual RV Developed sites         2,424                  2,220                  2,204                  2,190                  2,190         
Occupied MH & Annual RV         2,339                  2,136                  2,127                  2,119                  2,121         
MH & Annual RV Occupancy %         96.5        %         96.2        %         96.5        %         96.8        %         96.8        %
Transient RV sites         1,007                  776                  792                  805                  805         
Sites for development         180                  30                  30                  30                  30         
           
           
ARIZONA          
Properties         12                  12                  14                  14                  14         
MH & Annual RV Developed sites         4,123                  4,071                  4,401                  4,391                  4,323         
Occupied MH & Annual RV         3,917                  3,853                  4,116                  4,101                  4,030         
MH & Annual RV Occupancy %         95.0        %         94.6        %         93.5        %         93.4        %         93.2        %
Transient RV sites         1,185                  1,237                  1,260                  1,270                  1,337         
Sites for development         —                  —                  —                  —                  —         
INDIANA          
Properties         12                  12                  12                  12                  12         
MH & Annual RV Developed sites         3,174                  3,057                  3,087                  3,087                  3,087         
Occupied MH & Annual RV         3,047                  2,963                  2,970                  2,961                  2,950         
MH & Annual RV Occupancy %         96.0        %         96.9        %         96.2        %         95.9        %         95.6        %
Transient RV sites         1,002                  1,089                  1,089                  1,089                  1,089         
Sites for development         177                  204                  277                  277                  277         
NEW JERSEY          
Properties         11                  9                  8                  8                  8         
MH & Annual RV Developed sites         2,554                  2,551                  2,396                  2,366                  2,347         
Occupied MH & Annual RV         2,554                  2,551                  2,396                  2,366                  2,347         
MH & Annual RV Occupancy %         100.0        %         100.0        %         100.0        %         100.0        %         100.0        %
Transient RV sites         1,436                  899                  762                  794                  813         
Sites for development         262                  262                  262                  262                  262         
COLORADO          
Properties         10                  10                  10                  10                  10         
MH & Annual RV Developed sites         2,552                  2,552                  2,453                  2,453                  2,453         
Occupied MH & Annual RV         2,442                  2,431                  2,420                  2,395                  2,380         
MH & Annual RV Occupancy %         95.7        %         95.3        %         98.7        %         97.6        %         97.0        %
Transient RV sites         987                  987                  987                  962                  962         
Sites for development         1,744                  1,629                  1,225                  1,250                  1,250         
NEW HAMPSHIRE          
Properties         10                  10                  10                  10                  10         
MH & Annual RV Developed sites         1,748                  1,777                  1,777                  1,776                  1,777         
Occupied MH & Annual RV         1,740                  1,769                  1,769                  1,769                  1,767         
MH & Annual RV Occupancy %         99.5        %         99.5        %         99.5        %         99.6        %         99.4        %
Transient RV sites         650                  602                  602                  456                  460         
Sites for development         111                  111                  151                  151                  151         
NEW YORK          
Properties         10                  10                  10                  10                  9         
MH & Annual RV Developed sites         1,482                  1,457                  1,457                  1,452                  1,419         
Occupied MH & Annual RV         1,455                  1,432                  1,428                  1,415                  1,380         
MH & Annual RV Occupancy %         98.2        %         98.3        %         98.0        %         97.5        %         97.3        %
Transient RV sites         1,659                  1,684                  1,684                  1,689                  1,422         
Sites for development         371                  371                  371                  371                  371         
VIRGINIA          
Properties         10                  9                  9                  8                  8         
MH & Annual RV Developed sites         1,253                  1,238                  1,198                  1,179                  1,138         
Occupied MH & Annual RV         1,251                  1,237                  1,194                  1,177                  1,134         
MH & Annual RV Occupancy %         99.8        %         99.9        %         99.7        %         99.8        %         99.6        %
Transient RV sites         2,182                  1,956                  1,996                  1,365                  737         
Sites for development         367                  162                  162                  162                  162         
OHIO           
Properties         9                  9                  9                  9                  9         
MH & Annual RV Developed sites         2,796                  2,796                  2,797                  2,797                  2,790         
Occupied MH & Annual RV         2,759                  2,753                  2,770                  2,760                  2,755         
MH & Annual RV Occupancy %         98.7        %         98.5        %         99.0        %         98.7        %         98.7        %
Transient RV sites         129                  129                  128                  128                  135         
Sites for development         22                  22                  22                  22                  22         
OTHER STATES           
Properties         64                  61                  63                  64                  61         
MH & Annual RV Developed sites         12,771                  12,699                  13,828                  13,765                  13,411         
Occupied MH & Annual RV         12,443                  12,390                  13,344                  13,253                  12,913         
MH & Annual RV Occupancy %         97.4        %         97.6        %         96.5        %         96.3        %         96.3        %
Transient RV sites         7,091                  6,394                  6,103                  6,110                  5,611         
Sites for development         1,601                  1,501                  1,501                  1,545                  1,545         
           
TOTAL - MH AND RV PORTFOLIO           
Properties         477                  464                  455                  452                  446         
MH & Annual RV Developed sites         129,161                  127,941                  126,255                  125,317                  124,252         
Occupied MH & Annual RV         125,833                  124,612                  123,010                  121,969                  120,952         
MH & Annual RV Occupancy %         97.4        %(16)        97.4        %         97.4        %         97.3        %         97.3        %
Transient RV sites         29,847                  27,922                  27,032                  26,295                  25,043         
Sites for development(17)         10,672                  10,312                  9,443                  9,676                  10,025         
% Communities age restricted         31.4        %         32.3        %         32.5