Sun Communities, Inc. Reports 2020 Fourth Quarter Results and 2021 Guidance
Sun Communities, Inc. (NYSE: SUI) reported strong Q4 2020 results, with total revenues rising by 27.3% to $384.3 million and net income of $7.6 million. For the full year, revenues increased to $1.4 billion, a 10.6% rise. Core Funds from Operations per share grew by 5.5% in Q4 and 3.5% for the year. The company acquired $3.0 billion in properties, boosting occupancy to 97.3%. Despite some increases in operational expenses, same community net operating income grew by 2.1% in Q4. A dividend increase of 5.1% was also announced for 2021, reflecting strong financial performance.
- Total revenues increased 27.3% to $384.3 million in Q4 2020.
- Net income for Q4 2020 reached $7.6 million, or $0.07 per diluted share.
- Core FFO per share increased by 5.5% to $1.16 in Q4.
- Total revenue for 2020 rose by 10.6% to $1.4 billion.
- Same Community NOI increased by 2.1% in Q4 and 4.0% for the year.
- Acquired approximately $3.0 billion in operating properties in 2020.
- Occupancy rate improved to 97.3% from 96.4% year-over-year.
- Dividend increased by 5.1% for 2021.
- Expenses increased by 13.6% in Q4, impacting same community NOI growth.
Southfield, MI, Feb. 17, 2021 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas, (collectively, the “properties”), today reported its fourth quarter results for 2020.
Financial Results for the Quarter and Year Ended December 31, 2020
For the quarter ended December 31, 2020, total revenues increased
For the year ended December 31, 2020, total revenues increased
Non-GAAP Financial Measures and Portfolio Performance
- Core Funds from Operations (“Core FFO”)(1) for the quarter ended December 31, 2020, was
$1.16 per diluted share and OP unit (“Share”) as compared to$1.10 in the corresponding period in 2019, a 5.5 percent increase. Core FFO(1) for the year ended December 31, 2020, was$5.09 per Share as compared to$4.92 in the prior year, an increase of 3.5 percent.
- Same Community(2) Net Operating Income (“NOI”)(1) increased by 2.1 percent and 4.0 percent for the quarter and year ended December 31, 2020, respectively, as compared to the corresponding periods in 2019.
- Acquired approximately
$3.0 billion of operating properties including the$2.1 billion acquisition of Safe Harbor Marinas in 2020.
- MH and Annual RV Revenue Producing Sites increased by 578 sites in the fourth quarter and 2,505 sites during the year ended December 31, 2020, bringing total portfolio occupancy to 97.3 percent.
- MH and Annual RV Rent Collections for the fourth quarter were over 96.0 percent and 97.0 percent, respectively.
Gary Shiffman, Chief Executive Officer stated, “As we reflect on the events of 2020, we are pleased with our performance and the demonstrated resilience and stability of our business and operating platform, particularly in light of the challenging environment. We generated 4.0 percent same community NOI growth, delivered 3.5 percent year over year Core FFO(1) per Share growth, deployed
Mr. Shiffman continued, “The dedication and perseverance of our team to create value for our shareholders continues to be a key factor in our success.”
OPERATING HIGHLIGHTS
Portfolio Occupancy
Total MH and annual RV occupancy was 97.3 percent at December 31, 2020, compared to 96.4 percent at December 31, 2019, an increase of 90 basis points.
During the quarter ended December 31, 2020, MH and annual RV revenue producing sites increased by 578 sites, bringing full year 2020 revenue producing site gains to 2,505 sites.
Same Community(2) Results
For the 367 MH and RV properties owned and operated by the Company since January 1, 2019, NOI(1) for the quarter ended December 31, 2020 increased 2.1 percent over the same period in 2019, resulting from a 5.7 percent increase in revenues and a 13.6 percent increase in expenses. Adjusted to remove the impact of
For the year ended December 31, 2020, NOI(1) increased 4.0 percent over the same period in 2019, resulting from a 3.6 percent increase in revenues and a 3.0 percent increase in expenses. Adjusted to remove the impact of
Home Sales
During the quarter ended December 31, 2020, the Company sold 782 homes as compared to 808 homes in the same period in 2019. The Company sold 156 and 140 new homes for the quarters ended December 31, 2020 and 2019, respectively, an increase of 11.4 percent. Pre-owned home sales were 626 in the fourth quarter 2020 as compared to 668 in the same period in 2019. Rental home sales, which are included in total pre-owned home sales, were 269 and 281 for the quarters ended December 31, 2020 and 2019, respectively.
During the year ended December 31, 2020, the Company sold 2,866 homes as compared to 3,439 homes sold during 2019. The Company sold 570 and 571 new homes during the years ended December 31, 2020 and 2019, respectively. Pre-owned home sales were 2,296 during the year ended December 31, 2020, as compared to 2,868 during 2019. Rental home sales, which are included in total pre-owned home sales, were 850 and 1,140 for the years ended December 31, 2020 and 2019, respectively.
Rent Collections
For the fourth quarter of 2020, MH and annual RV rent collections were over 96.0 percent and 97.0 percent, respectively, after adjusting for the impact of COVID-19 related hardship deferrals and prepaid rent balances.
January 2021 rent collections were 97.0 percent for MH and 97.0 percent for annual RV.
PORTFOLIO ACTIVITY
Acquisitions
During and subsequent to the quarter ended December 31, 2020, the Company acquired the following communities and resorts:
| Property Name | Property Type | Sites | State | Total Purchase Price (in millions) | Month Acquired | ||||||||
| Gig Harbor | RV | 115 | WA | $ | 15.3 | November | |||||||
| Maine MH Portfolio(a) | MH | 1,083 | ME | $ | 81.3 | November | |||||||
| Mouse Mountain | MH / RV | 304 | FL | $ | 15.5 | December | |||||||
| Lakeview Mobile Estates | MH | 296 | CA | $ | 23.8 | December | |||||||
| Shenandoah Acres | RV | 522 | VA | $ | 17.0 | December | |||||||
| Jellystone at Barton Lake | RV | 555 | IN | $ | 24.0 | December | |||||||
| Kittatinny Portfolio(b) | RV | 527 | NY & PA | $ | 16.3 | December | |||||||
| Association Island KOA | RV | 294 | NY | $ | 15.0 | January | |||||||
| Blue Water | RV | 177 | UT | $ | 9.0 | February | |||||||
| Tranquility MHC | MH | 25 | FL | $ | 1.3 | February | |||||||
| 3,898 | $ | 218.5 | |||||||||||
(a) Includes six MH communities.
(b) Includes two RV resorts.
During and subsequent to the quarter ended December 31, 2020, the Company acquired the following marinas:
| Property Name | Wet Slips & Dry Storage Spaces | State | Total Purchase Price (in millions) | Month Acquired | |||||||
| Safe Harbor Marinas(a) | 37,305 | Various | $ | 2,016.4 | October | ||||||
| Hideaway Bay(b) | 628 | GA | $ | 32.9 | November | ||||||
| Anacapa Isle(b) | 453 | CA | $ | 13.9 | December | ||||||
| Annapolis | 184 | MD | $ | 31.0 | December | ||||||
| Wickford | 60 | RI | $ | 3.5 | December | ||||||
| Rybovich Portfolio(c) | 78 | FL | $ | 368.8 | December | ||||||
| Rockland | 173 | ME | $ | 16.0 | December | ||||||
| Islamorada and Angler House(d) | 251 | FL | $ | 18.0 | February | ||||||
| 39,132 | $ | 2,500.5 | |||||||||
(a) Includes 99 owned marinas located in 22 states. In conjunction with the acquisition, the Company issued Series H preferred OP units. As of December 31, 2020, 581,407 Series H preferred OP units were outstanding.
(b) Acquired in connection with Safe Harbor Marinas acquisition. Transfer of the marinas was contingent on receiving third party consents.
(c) Includes two marinas. In conjunction with the acquisition, the Company issued Series I preferred OP units. As of December 31, 2020, 922,000 Series I preferred OP units were outstanding.
(d) Includes two marinas.
During the year ended December 31, 2020, the Company acquired 24 MH communities and RV resorts with 6,919 sites and 106 marinas with over 38,800 wet slips and dry rack storage spaces for a total purchase price of approximately
Construction Activity
During the quarter ended December 31, 2020, the Company completed the construction of nearly 50 sites in two ground-up developments and one redevelopment property, and over 120 expansion sites in one RV resort and one MH community. Full-year ground-up and redevelopment site deliveries were over 1,000 sites in five properties and over 300 total expansion sites in eight properties.
BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS
Debt Transactions
As of December 31, 2020, the Company had approximately
During the quarter ended December 31, 2020, as previously disclosed, the Company entered into a new
Equity Transactions
During the quarter ended December 31, 2020, as previously disclosed, the Company closed an underwritten registered public offering of 9,200,000 shares of common stock. Proceeds from the offering were
2021 Distributions
The Company’s Board of Directors has approved setting the 2021 annual distribution rate at
New Director
On February 11, 2020 the Board of Directors increased the size of the board from seven to eight directors and appointed Tonya Allen to the Company’s Board of Directors as an independent director. Ms. Allen brings an expert perspective on sustainability and social issues, an important focus for the Company.
2021 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 through the date of this release and exclude prospective acquisitions and capital markets activity. The estimates and assumptions are forward-looking based on the Company’s current assessment of economic and market conditions, as well as other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.
Notes to 2021 guidance:
- Includes contributions from recently completed acquisitions
$218.5 million of MH community and RV resort acquisitions in the fourth quarter 2020 and subsequent to year end$437.3 million of marina acquisitions subsequent to the closing of the Safe Harbor transaction on October 30, 2020
- Includes a lower transient RV revenue estimate of
$8.0 -$10.0 million in the first quarter 2021 due to the extension of the Canadian border closure order and the California travel restrictions imposed through early February, 2021
Earnings and Core FFO(1)
| Net Income | |
| Weighted average common shares outstanding (in millions) | 106.9 |
| First quarter 2021, basic earnings per share | |
| Full year 2021, basic earnings per share |
| Core FFO(1) | |
| Weighted average common shares outstanding, fully diluted (in millions)(i) | 112.7 |
| First quarter 2021, Core FFO(1) per Share | |
| Full year 2021, Core FFO(1) per Share |
(i) Certain securities that are dilutive to the computation of Core FFO(1) per fully diluted share in the table above have been excluded from the computation of net income per fully diluted share, as inclusion of these securities would have been anti-dilutive to net income per fully diluted share.
| 1Q21 | 2Q21 | 3Q21 | 4Q21 | |||||||||
| Seasonality of Core FFO(1) | 19.6 | % | 26.2 | % | 32.8 | % | 21.4 | % | ||||
Total MH and RV Portfolio
Number of properties: 446
| 2020 Actual (in millions) | 2021E Change % | |||||
| Income from real property | $ | 1,002.4 | ||||
| Total property operating expenses | 367.3 | |||||
| Net operating income | $ | 635.1 | ||||
| 1Q21 | 2Q21 | 3Q21 | 4Q21 | |||||||||
| Seasonality of total MH and RV portfolio NOI | 22.6 | % | 25.0 | % | 28.6 | % | 23.8 | % | ||||
| 2021E | |||
| MH weighted average monthly rental rate increase | 3.2 | % | |
| RV weighted average monthly rental rate increase | 4.3 | % | |
| Blended weighted average monthly rental rate increase | 3.4 | % | |
| Increase in revenue producing sites | 2,150 - 2,350 | ||
| New home sales volume | 550 - 650 | ||
| Pre-owned home sales volume | 2,400 - 2,600 | ||
| Newly built ground-up and expansion sites | 1,200 - 1,600 | ||
General and Administrative Expenses
| 2021E | ||
| General and administrative expenses |
General and administrative expenses include the impact of the Company’s entry into the marina asset class. The marina portfolio is operated as an independent wholly-owned subsidiary retaining its own senior management, property management and back office operations. As significant growth potential through the consolidation of the highly fragmented marina industry is anticipated, costs associated with scaling to effectively operate a larger portfolio are required. As a general practice, marina acquisitions are underwritten with an expected incremental general and administrative cost of 3.0 percent of revenues.
Same Community(2) Portfolio
Number of MH and RV properties: 407
Same community NOI(1) growth is expected to be between 5.6 percent and 6.6 percent for full year 2021.
Marinas
NOI(1) inclusive of the contribution from service and ancillary operations is expected to be
| 1Q21 | 2Q21 | 3Q21 | 4Q21 | |||||||||
| Seasonality of marina NOI(1) | 18.0 | % | 29.0 | % | 28.6 | % | 24.4 | % | ||||
EARNINGS CONFERENCE CALL
A conference call to discuss fourth quarter operating results will be held on Thursday, February 18, 2021 at 11:00 A.M. (ET). To participate, call toll-free 877-407-9039. Callers outside the U.S. or Canada can access the call at 201-689-8470. A replay will be available following the call through March 4, 2021 and can be accessed toll-free by calling 844-512-2921 or 412-317-6671. The Conference ID number for the call and the replay is 13713712. 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, 2020, owned, operated, or had an interest in a portfolio of 552 developed MH, RV and marina properties comprising over 188,000 developed sites in 39 states and Ontario, Canada.
For more information about Sun Communities, Inc., please visit www.suncommunities.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as “forecasts,” “intends,” “intend,” “intended,” “goal,” “estimate,” “estimates,” “expects,” “expect,” “expected,” “project,” “projected,” “projections,” “plans,” “predicts,” “potential,” “seeks,” “anticipates,” “anticipated,” “should,” “could,” “may,” “will,” “designed to,” “foreseeable future,” “believe,” “believes,” “scheduled,” “guidance”, “target” and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the Company’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and September 30, 2020, and the Company’s other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:
- outbreaks of disease, including the COVID-19 pandemic, and related stay at home orders, quarantine policies and restrictions on travel, trade and business operations;
- changes in general economic conditions, the real estate industry and the markets in which the Company operates;
- difficulties in the Company’s ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
- the Company’s liquidity and refinancing demands;
- the Company’s ability to obtain or refinance maturing debt;
- the Company’s ability to maintain compliance with covenants contained in its debt facilities;
- availability of capital;
- changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;
- the Company’s ability to maintain rental rates and occupancy levels;
- the Company’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
- increases in interest rates and operating costs, including insurance premiums and real property taxes;
- risks related to natural disasters such as hurricanes, earthquakes, floods, and wildfires;
- general volatility of the capital markets and the market price of shares of the Company’s capital stock;
- the Company’s ability to maintain its status as a REIT;
- changes in real estate and zoning laws and regulations;
- legislative or regulatory changes, including changes to laws governing the taxation of REITs;
- litigation, judgments or settlements;
- competitive market forces;
- 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 statement.
Investor Information
| RESEARCH COVERAGE | ||||||
| Firm | Analyst | Phone | ||||
| Bank of America Merrill Lynch | Joshua Dennerlein | (646) 855-1681 | joshua.dennerlein@baml.com | |||
| Berenberg Capital Markets | Keegan Carl | (646) 949-9052 | keegan.carl@berenberg-us.com | |||
| BMO Capital Markets | John Kim | (212) 885-4115 | johnp.kim@bmo.com | |||
| Citi Research | Michael Bilerman | (212) 816-1383 | michael.bilerman@citi.com | |||
| Nicholas Joseph | (212) 816-1909 | nicholas.joseph@citi.com | ||||
| Evercore ISI | Steve Sakwa | (212) 446-9462 | steve.sakwa@evercoreisi.com | |||
| Samir Khanal | (212) 888-3796 | samir.khanal@evercoreisi.com | ||||
| Green Street Advisors | John Pawlowski | (949) 640-8780 | jpawlowski@greenstreetadvisors.com | |||
| Robert W. Baird & Co. | Wesley Golladay | (216) 737-7510 | wgolladay@rwbaird.com | |||
| Wells Fargo | Todd Stender | (562) 637-1371 | todd.stender@wellsfargo.com | |||
| INQUIRIES | ||||||
| Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department. | ||||||
| At Our Website | www.suncommunities.com | |||||
| By Email | investorrelations@suncommunities.com | |||||
| By Phone | (248) 208-2500 | |||||
Portfolio Overview
(As of December 31, 2020)
Financial and Operating Highlights
(amounts in thousands, except for *)
| Quarter Ended | ||||||||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||
| Financial Information | ||||||||||||||||||||
| Total revenues | $ | 384,265 | $ | 400,514 | $ | 303,266 | $ | 310,302 | $ | 301,819 | ||||||||||
| Net income / (loss) | $ | 9,818 | $ | 89,756 | $ | 63,355 | $ | (15,478 | ) | $ | 30,685 | |||||||||
| Net income / (loss) attributable to Sun Communities Inc. common stockholders | $ | 7,586 | $ | 81,204 | $ | 58,910 | $ | (16,086 | ) | $ | 28,547 | |||||||||
| Basic earnings / (loss) per share* | $ | 0.07 | $ | 0.83 | $ | 0.61 | $ | (0.17 | ) | $ | 0.31 | |||||||||
| Diluted earnings / (loss) per share* | $ | 0.07 | $ | 0.83 | $ | 0.61 | $ | (0.17 | ) | $ | 0.31 | |||||||||
| Cash distributions declared per common share* | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.75 | ||||||||||
| Recurring EBITDA(1) | $ | 168,527 | $ | 199,321 | $ | 148,650 | $ | 156,552 | $ | 144,738 | ||||||||||
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) | $ | 110,849 | $ | 165,209 | $ | 118,092 | $ | 95,046 | $ | 105,533 | ||||||||||
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) | $ | 124,872 | $ | 162,624 | $ | 110,325 | $ | 117,267 | $ | 104,534 | ||||||||||
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted* | $ | 1.03 | $ | 1.63 | $ | 1.20 | $ | 0.98 | $ | 1.11 | ||||||||||
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted* | $ | 1.16 | $ | 1.60 | $ | 1.12 | $ | 1.22 | $ | 1.10 | ||||||||||
| Balance Sheet | ||||||||||||||||||||
| Total assets | $ | 11,206,586 | $ | 8,335,717 | $ | 8,348,659 | $ | 8,209,047 | $ | 7,802,060 | ||||||||||
| Total debt | $ | 4,757,076 | $ | 3,340,613 | $ | 3,390,771 | $ | 3,926,494 | $ | 3,434,402 | ||||||||||
| Total liabilities | $ | 5,314,879 | $ | 3,791,922 | $ | 3,845,308 | $ | 4,346,127 | $ | 3,848,104 | ||||||||||
| Quarter Ended | ||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||
| Operating Information* | ||||||||||||||
| Properties | 552 | 432 | 426 | 424 | 422 | |||||||||
| Manufactured home sites | 96,688 | 95,209 | 94,232 | 93,834 | 93,821 | |||||||||
| Annual RV sites | 27,564 | 26,817 | 26,240 | 26,148 | 26,056 | |||||||||
| Transient RV sites | 25,043 | 23,728 | 22,360 | 21,880 | 21,416 | |||||||||
| Total sites | 149,295 | 145,754 | 142,832 | 141,862 | 141,293 | |||||||||
| Wet slips and dry storage spaces | 38,881 | N/A | N/A | N/A | N/A | |||||||||
| MH occupancy | 96.6 | % | 96.4 | % | 96.5 | % | 95.8 | % | 95.5 | % | ||||
| RV annual occupancy | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
| Total blended MH and annual RV occupancy | 97.3 | % | 97.2 | % | 97.3 | % | 96.7 | % | 96.4 | % | ||||
| New home sales | 156 | 155 | 140 | 119 | 140 | |||||||||
| Pre-owned home sales | 626 | 555 | 471 | 644 | 668 | |||||||||
| Total home sales | 782 | 710 | 611 | 763 | 808 | |||||||||
| Quarter Ended | ||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||
| Net Leased Sites(5) | ||||||||||||||
| MH net leased sites | 247 | 349 | 759 | 287 | 437 | |||||||||
| RV net leased sites | 331 | 427 | 92 | 13 | 232 | |||||||||
| Total net leased sites | 578 | 776 | 851 | 300 | 669 | |||||||||
Consolidated Balance Sheets
(amounts in thousands)
| December 31, 2020 | December 31, 2019 | |||||||||
| Assets | ||||||||||
| Land | $ | 2,119,364 | $ | 1,414,279 | ||||||
| Land improvements and buildings | 8,480,597 | 6,595,272 | ||||||||
| Rental homes and improvements | 637,603 | 627,175 | ||||||||
| Furniture, fixtures and equipment | 447,039 | 282,874 | ||||||||
| Investment property | 11,684,603 | 8,919,600 | ||||||||
| Accumulated depreciation | (1,968,812 | ) | (1,686,980 | ) | ||||||
| Investment property, net | 9,715,791 | 7,232,620 | ||||||||
| Cash, cash equivalents and restricted cash | 98,294 | 34,830 | ||||||||
| Marketable securities | 124,726 | 94,727 | ||||||||
| Inventory of manufactured homes | 46,643 | 62,061 | ||||||||
| Notes and other receivables, net | 221,650 | 157,926 | ||||||||
| Goodwill | 428,833 | — | ||||||||
| Other intangible assets, net | 305,611 | 66,948 | ||||||||
| Other assets, net | 265,038 | 152,948 | ||||||||
| Total Assets | $ | 11,206,586 | $ | 7,802,060 | ||||||
| Liabilities | ||||||||||
| Mortgage loans payable | $ | 3,444,967 | $ | 3,180,592 | ||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | 35,249 | ||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | 34,663 | ||||||||
| Lines of credit and other debt(6) | 1,242,197 | 183,898 | ||||||||
| Distributions payable | 86,988 | 71,704 | ||||||||
| Advanced reservation deposits and rent | 187,730 | 133,420 | ||||||||
| Accrued expenses and accounts payable | 148,435 | 127,289 | ||||||||
| Other liabilities | 134,650 | 81,289 | ||||||||
| Total Liabilities | 5,314,879 | 3,848,104 | ||||||||
| Commitments and contingencies | ||||||||||
| Series D preferred OP units | 49,600 | 50,913 | ||||||||
| Series F preferred OP units | 8,871 | — | ||||||||
| Series G preferred OP units | 25,074 | — | ||||||||
| Series H preferred OP units | 57,833 | — | ||||||||
| Series I preferred OP units | 94,532 | — | ||||||||
| Other redeemable noncontrolling interests | 28,469 | 27,091 | ||||||||
| Stockholders' Equity | ||||||||||
| Common stock | 1,076 | 932 | ||||||||
| Additional paid-in capital | 7,087,658 | 5,213,264 | ||||||||
| Accumulated other comprehensive loss | 3,178 | (1,331 | ) | |||||||
| Distributions in excess of accumulated earnings | (1,566,636 | ) | (1,393,141 | ) | ||||||
| Total Sun Communities, Inc. stockholders' equity | 5,525,276 | 3,819,724 | ||||||||
| Noncontrolling interests | ||||||||||
| Common and preferred OP units | 85,968 | 47,686 | ||||||||
| Consolidated variable interest entities | 16,084 | 8,542 | ||||||||
| Total noncontrolling interests | 102,052 | 56,228 | ||||||||
| Total Stockholders' Equity | 5,627,328 | 3,875,952 | ||||||||
| Total Liabilities, Temporary Equity and Stockholders' Equity | $ | 11,206,586 | $ | 7,802,060 | ||||||
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, 2020 | December 31, 2019 | Change | % Change | December 31, 2020 | December 31, 2019 | Change | % Change | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||
| Income from real property (excluding transient revenue) | $ | 249,065 | $ | 205,131 | $ | 43,934 | 21.4 | % | $ | 895,945 | $ | 793,403 | $ | 102,542 | 12.9 | % | |||||||||||||||||||||
| Transient revenue | 27,929 | 19,886 | 8,043 | 40.4 | % | 134,691 | 121,504 | 13,187 | 10.9 | % | |||||||||||||||||||||||||||
| Revenue from home sales | 48,920 | 45,271 | 3,649 | 8.1 | % | 175,699 | 181,936 | (6,237 | ) | (3.4 | ) | % | |||||||||||||||||||||||||
| Rental home revenue | 16,035 | 14,745 | 1,290 | 8.7 | % | 62,646 | 57,572 | 5,074 | 8.8 | % | |||||||||||||||||||||||||||
| Ancillary revenue | 35,644 | 10,481 | 25,163 | 240.1 | % | 102,017 | 77,638 | 24,379 | 31.4 | % | |||||||||||||||||||||||||||
| Interest income | 2,510 | 3,368 | (858 | ) | (25.5 | ) | % | 10,119 | 17,857 | (7,738 | ) | (43.3 | ) | % | |||||||||||||||||||||||
| Brokerage commissions and other revenues, net | 4,162 | 2,937 | 1,225 | 41.7 | % | 17,230 | 14,127 | 3,103 | 22.0 | % | |||||||||||||||||||||||||||
| Total Revenues | 384,265 | 301,819 | 82,446 | 27.3 | % | 1,398,347 | 1,264,037 | 134,310 | 10.6 | % | |||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||
| Property operating and maintenance | 88,889 | 63,486 | 25,403 | 40.0 | % | 308,797 | 266,378 | 42,419 | 15.9 | % | |||||||||||||||||||||||||||
| Real estate taxes | 20,265 | 15,425 | 4,840 | 31.4 | % | 72,606 | 61,880 | 10,726 | 17.3 | % | |||||||||||||||||||||||||||
| Cost of home sales | 36,434 | 34,327 | 2,107 | 6.1 | % | 131,884 | 134,357 | (2,473 | ) | (1.8 | ) | % | |||||||||||||||||||||||||
| Rental home operating and maintenance | 6,058 | 5,542 | 516 | 9.3 | % | 22,186 | 21,995 | 191 | 0.9 | % | |||||||||||||||||||||||||||
| Ancillary expenses | 27,671 | 9,099 | 18,572 | 204.1 | % | 63,402 | 47,432 | 15,970 | 33.7 | % | |||||||||||||||||||||||||||
| Home selling expenses | 4,626 | 3,768 | 858 | 22.8 | % | 15,134 | 14,690 | 444 | 3.0 | % | |||||||||||||||||||||||||||
| General and administrative expenses | 31,795 | 25,434 | 6,361 | 25.0 | % | 111,288 | 93,964 | 17,324 | 18.4 | % | |||||||||||||||||||||||||||
| Catastrophic weather-related charges, net | 831 | 435 | 396 | 91.0 | % | 885 | 1,737 | (852 | ) | (49.1 | ) | % | |||||||||||||||||||||||||
| Business combination expense | 23,008 | — | 23,008 | N/A | 23,008 | — | 23,008 | N/A | |||||||||||||||||||||||||||||
| Depreciation and amortization | 117,423 | 98,826 | 18,597 | 18.8 | % | 376,876 | 328,067 | 48,809 | 14.9 | % | |||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | 3,027 | (3,027 | ) | N/A | 5,209 | 16,505 | (11,296 | ) | (68.4 | ) | % | |||||||||||||||||||||||||
| Interest expense | 35,013 | 33,259 | 1,754 | 5.3 | % | 129,071 | 133,153 | (4,082 | ) | (3.1 | ) | % | |||||||||||||||||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,047 | 1,207 | (160 | ) | (13.3 | ) | % | 4,177 | 4,698 | (521 | ) | (11.1 | ) | % | |||||||||||||||||||||||
| Total Expenses | 393,060 | 293,835 | 99,225 | 33.8 | % | 1,264,523 | 1,124,856 | 139,667 | 12.4 | % | |||||||||||||||||||||||||||
| Income / (Loss) Before Other Items | (8,795 | ) | 7,984 | (16,779 | ) | (210.2 | ) | % | 133,824 | 139,181 | (5,357 | ) | (3.8 | ) | % | ||||||||||||||||||||||
| Gain on remeasurement of marketable securities | 8,765 | 17,692 | (8,927 | ) | (50.5 | ) | % | 6,129 | 34,240 | (28,111 | ) | (82.1 | ) | % | |||||||||||||||||||||||
| Gain on foreign currency translation | 10,480 | 4,522 | 5,958 | 131.8 | % | 8,039 | 4,557 | 3,482 | 76.4 | % | |||||||||||||||||||||||||||
| Gain on disposition of property | — | — | — | N/A | 5,595 | — | 5,595 | N/A | |||||||||||||||||||||||||||||
| Other income / (expense), net(7) | (390 | ) | 424 | (814 | ) | (192.0 | ) | % | (3,768 | ) | (1,100 | ) | (2,668 | ) | 242.5 | % | |||||||||||||||||||||
| Loss on remeasurement of notes receivable | (964 | ) | — | (964 | ) | N/A | (3,275 | ) | — | (3,275 | ) | N/A | |||||||||||||||||||||||||
| Income / (loss) from nonconsolidated affiliates | 392 | (6 | ) | 398 | N/M | 1,740 | 1,374 | 366 | 26.6 | % | |||||||||||||||||||||||||||
| Loss on remeasurement of investment in nonconsolidated affiliates | (103 | ) | — | (103 | ) | N/A | (1,608 | ) | — | (1,608 | ) | N/A | |||||||||||||||||||||||||
| Current tax expense | (328 | ) | (189 | ) | (139 | ) | 73.5 | % | (790 | ) | (1,095 | ) | 305 | (27.9 | ) | % | |||||||||||||||||||||
| Deferred tax benefit | 761 | 258 | 503 | 195.0 | % | 1,565 | 222 | 1,343 | 605.0 | % | |||||||||||||||||||||||||||
| Net Income | 9,818 | 30,685 | (20,867 | ) | (68.0 | ) | % | 147,451 | 177,379 | (29,928 | ) | (16.9 | ) | % | |||||||||||||||||||||||
| Less: Preferred return to preferred OP units / equity | 2,136 | 1,418 | 718 | 50.6 | % | 6,935 | 6,058 | 877 | 14.5 | % | |||||||||||||||||||||||||||
| Less: Income attributable to noncontrolling interests | 96 | 720 | (624 | ) | (86.7 | ) | % | 8,902 | 9,768 | (866 | ) | (8.9 | ) | % | |||||||||||||||||||||||
| Net Income Attributable to Sun Communities, Inc. | 7,586 | 28,547 | (20,961 | ) | (73.4 | ) | % | 131,614 | 161,553 | (29,939 | ) | (18.5 | ) | % | |||||||||||||||||||||||
| Less: Preferred stock distribution | — | — | — | N/A | — | 1,288 | (1,288 | ) | N/A | ||||||||||||||||||||||||||||
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | $ | 7,586 | $ | 28,547 | $ | (20,961 | ) | (73.4 | ) | % | $ | 131,614 | $ | 160,265 | $ | (28,651 | ) | (17.9 | ) | % | |||||||||||||||||
| Weighted average common shares outstanding - basic | 104,275 | 91,342 | 12,933 | 14.2 | % | 97,521 | 88,460 | 9,061 | 10.2 | % | |||||||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 104,744 | 91,893 | 12,851 | 14.0 | % | 97,522 | 88,915 | 8,607 | 9.7 | % | |||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.07 | $ | 0.31 | $ | (0.24 | ) | (77.4 | ) | % | $ | 1.34 | $ | 1.80 | $ | (0.46 | ) | (25.6 | ) | % | |||||||||||||||||
| Diluted earnings per share | $ | 0.07 | $ | 0.31 | $ | (0.24 | ) | (77.4 | ) | % | $ | 1.34 | $ | 1.80 | $ | (0.46 | ) | (25.6 | ) | % | |||||||||||||||||
N/M = Percentage change is not meaningful.
Outstanding Securities and Capitalization
(amounts in thousands except for *)
| Outstanding Securities - As of December 31, 2020 | |||||||||||
| Number of Units / Shares Outstanding | Conversion Rate* | If Converted(1) | Issuance Price Per Unit* | Annual Distribution Rate* | |||||||
| Non-convertible Securities | |||||||||||
| Common shares | 107,626 | N/A | N/A | N/A | |||||||
| Convertible Securities | |||||||||||
| Common OP units | 2,607 | 1.0000 | 2,607 | N/A | Mirrors common shares distributions | ||||||
| Series A-1 preferred OP units | 295 | 2.4390 | 719 | $ | 100 | 6.00 | % | ||||
| Series A-3 preferred OP units | 40 | 1.8605 | 75 | $ | 100 | 4.50 | % | ||||
| Series C preferred OP units | 306 | 1.1100 | 340 | $ | 100 | 4.50 | % | ||||
| Series D preferred OP units | 489 | 0.8000 | 391 | $ | 100 | 3.80 | % | ||||
| Series E preferred OP units | 90 | 0.6897 | 62 | $ | 100 | 5.25 | % | ||||
| Series F preferred OP units | 90 | 0.6250 | 56 | $ | 100 | 3.00 | % | ||||
| Series G preferred OP units | 241 | 0.6452 | 155 | $ | 100 | 3.20 | % | ||||
| Series H preferred OP units | 581 | 0.6098 | 355 | $ | 100 | 3.00 | % | ||||
| Series I preferred OP units | 922 | 0.6098 | 562 | $ | 100 | 3.00 | % | ||||
^ Annual distribution is based on the last quarterly distribution annualized.
(1) Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.
| Capitalization - As of December 31, 2020 | |||||||||||
| Equity | Shares | Share Price* | Total | ||||||||
| Common shares | 107,626 | $ | 151.95 | $ | 16,353,771 | ||||||
| Common OP units | 2,607 | $ | 151.95 | 396,134 | |||||||
| Subtotal | 110,233 | $ | 16,749,905 | ||||||||
| Preferred OP units as converted | 2,715 | $ | 151.95 | $ | 412,544 | ||||||
| Total diluted shares outstanding | 112,948 | 17,162,449 | |||||||||
| Debt | |||||||||||
| Mortgage loans payable | $ | 3,444,967 | |||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | ||||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | ||||||||||
| Lines of credit and other debt(6) | 1,242,197 | ||||||||||
| Total debt | $ | 4,757,076 | |||||||||
| Total Capitalization | $ | 21,919,525 | |||||||||
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, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Net Income Attributable To Sun Communities, Inc. Common Stockholders | $ | 7,586 | $ | 28,547 | $ | 131,614 | $ | 160,265 | |||||||||||
| Adjustments | |||||||||||||||||||
| Depreciation and amortization | 117,354 | 98,950 | 376,897 | 328,646 | |||||||||||||||
| Depreciation on nonconsolidated affiliates | 38 | — | 66 | — | |||||||||||||||
| Gain on remeasurement of marketable securities | (8,765 | ) | (17,692 | ) | (6,129 | ) | (34,240 | ) | |||||||||||
| Loss on remeasurement of investment in nonconsolidated affiliates | 103 | — | 1,608 | — | |||||||||||||||
| Loss on remeasurement of notes receivable | 964 | — | 3,275 | — | |||||||||||||||
| Income attributable to noncontrolling interests | 4 | 482 | 7,881 | 8,474 | |||||||||||||||
| Preferred return to preferred OP units | 494 | 519 | 2,231 | 2,610 | |||||||||||||||
| Preferred distribution to Series A-4 preferred stock | — | — | — | 1,288 | |||||||||||||||
| Gain on disposition of properties | — | — | (5,595 | ) | — | ||||||||||||||
| Gain on disposition of assets, net | (6,929 | ) | (5,273 | ) | (22,180 | ) | (26,356 | ) | |||||||||||
| FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) | $ | 110,849 | $ | 105,533 | $ | 489,668 | $ | 440,687 | |||||||||||
| Adjustments | |||||||||||||||||||
| Business combination expense | 23,008 | — | 23,008 | — | |||||||||||||||
| Other acquisition related costs(8) | 1,035 | 244 | 2,326 | 1,146 | |||||||||||||||
| Loss on extinguishment of debt | — | 3,027 | 5,209 | 16,505 | |||||||||||||||
| Catastrophic weather-related charges, net | 831 | 398 | 885 | 1,737 | |||||||||||||||
| Gain on foreign currency translation | (10,480 | ) | (4,522 | ) | (8,039 | ) | (4,557 | ) | |||||||||||
| Other (income) / expense, net(7) | 390 | (424 | ) | 3,768 | 1,100 | ||||||||||||||
| Other adjustments(a) | (761 | ) | 278 | (1,265 | ) | 314 | |||||||||||||
| Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) | $ | 124,872 | $ | 104,534 | $ | 515,560 | $ | 456,932 | |||||||||||
| Weighted average common shares outstanding - basic | 104,275 | 91,342 | 97,521 | 88,460 | |||||||||||||||
| Add | |||||||||||||||||||
| Common stock issuable upon conversion of stock options | 1 | 1 | 1 | 1 | |||||||||||||||
| Restricted stock | 468 | 550 | 455 | 454 | |||||||||||||||
| Common OP units | 2,496 | 2,300 | 2,458 | 2,448 | |||||||||||||||
| Common stock issuable upon conversion of certain preferred OP units | 798 | 1,270 | 907 | 1,454 | |||||||||||||||
| Weighted Average Common Shares Outstanding - Fully Diluted | 108,038 | 95,463 | 101,342 | 92,817 | |||||||||||||||
| FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted | $ | 1.03 | $ | 1.11 | $ | 4.83 | $ | 4.75 | |||||||||||
| Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted | $ | 1.16 | $ | 1.10 | $ | 5.09 | $ | 4.92 | |||||||||||
(a) Adjustments include deferred compensation amortization upon retirement and deferred tax (benefit) / expense.
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, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | $ | 7,586 | $ | 28,547 | $ | 131,614 | $ | 160,265 | |||||||||||
| Adjustments | |||||||||||||||||||
| Depreciation and amortization | 117,423 | 98,826 | 376,876 | 328,067 | |||||||||||||||
| Loss on extinguishment of debt | — | 3,027 | 5,209 | 16,505 | |||||||||||||||
| Interest expense | 35,013 | 33,259 | 129,071 | 133,153 | |||||||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,047 | 1,207 | 4,177 | 4,698 | |||||||||||||||
| Current tax expense | 328 | 189 | 790 | 1,095 | |||||||||||||||
| Deferred tax benefit | (761 | ) | (258 | ) | (1,565 | ) | (222 | ) | |||||||||||
| (Income) / loss from nonconsolidated affiliates | (392 | ) | 6 | (1,740 | ) | (1,374 | ) | ||||||||||||
| Less: Gain on dispositions of assets, net | (6,929 | ) | (5,273 | ) | (22,180 | ) | (26,356 | ) | |||||||||||
| Less: Gain on disposition of properties | — | — | (5,595 | ) | — | ||||||||||||||
| EBITDAre(1) | $ | 153,315 | $ | 159,530 | $ | 616,657 | $ | 615,831 | |||||||||||
| Adjustments | |||||||||||||||||||
| Catastrophic weather related charges, net | 831 | 435 | 885 | 1,737 | |||||||||||||||
| Business combination expense | 23,008 | — | 23,008 | — | |||||||||||||||
| Gain on remeasurement of marketable securities | (8,765 | ) | (17,692 | ) | (6,129 | ) | (34,240 | ) | |||||||||||
| Gain on foreign currency translation | (10,480 | ) | (4,522 | ) | (8,039 | ) | (4,557 | ) | |||||||||||
| Other (income) / expense, net(6) | 390 | (424 | ) | 3,768 | 1,100 | ||||||||||||||
| Loss on remeasurement of notes receivable | 964 | — | 3,275 | — | |||||||||||||||
| Loss on remeasurement of investment in nonconsolidated affiliates | 103 | — | 1,608 | — | |||||||||||||||
| Preferred return to preferred OP units / equity | 2,136 | 1,418 | 6,935 | 6,058 | |||||||||||||||
| Income attributable to noncontrolling interests | 96 | 720 | 8,902 | 9,768 | |||||||||||||||
| Preferred stock distribution | — | — | — | 1,288 | |||||||||||||||
| Plus: Gain on dispositions of assets, net | 6,929 | 5,273 | 22,180 | 26,356 | |||||||||||||||
| Recurring EBITDA(1) | $ | 168,527 | $ | 144,738 | $ | 673,050 | $ | 623,341 | |||||||||||
Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to NOI(1)
(amounts in thousands)
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | $ | 7,586 | $ | 28,547 | $ | 131,614 | $ | 160,265 | |||||||||||
| Interest income | (2,510 | ) | (3,368 | ) | (10,119 | ) | (17,857 | ) | |||||||||||
| Brokerage commissions and other revenues, net | (4,162 | ) | (2,937 | ) | (17,230 | ) | (14,127 | ) | |||||||||||
| Home selling expenses | 4,626 | 3,768 | 15,134 | 14,690 | |||||||||||||||
| General and administrative expenses | 31,795 | 25,434 | 111,288 | 93,964 | |||||||||||||||
| Catastrophic weather-related charges, net | 831 | 435 | 885 | 1,737 | |||||||||||||||
| Business combination expense | 23,008 | — | 23,008 | — | |||||||||||||||
| Depreciation and amortization | 117,423 | 98,826 | 376,876 | 328,067 | |||||||||||||||
| Loss on extinguishment of debt | — | 3,027 | 5,209 | 16,505 | |||||||||||||||
| Interest expense | 35,013 | 33,259 | 129,071 | 133,153 | |||||||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,047 | 1,207 | 4,177 | 4,698 | |||||||||||||||
| Gain on remeasurement of marketable securities | (8,765 | ) | (17,692 | ) | (6,129 | ) | (34,240 | ) | |||||||||||
| Gain on foreign currency translation | (10,480 | ) | (4,522 | ) | (8,039 | ) | (4,557 | ) | |||||||||||
| Gain on disposition of property | — | — | (5,595 | ) | — | ||||||||||||||
| Other (income) / expense, net(7) | 390 | (424 | ) | 3,768 | 1,100 | ||||||||||||||
| Loss on remeasurement of notes receivable | 964 | — | 3,275 | — | |||||||||||||||
| Loss / (income) from nonconsolidated affiliates | (392 | ) | 6 | (1,740 | ) | (1,374 | ) | ||||||||||||
| Loss on remeasurement of investment in nonconsolidated affiliates | 103 | — | 1,608 | — | |||||||||||||||
| Current tax expense | 328 | 189 | 790 | 1,095 | |||||||||||||||
| Deferred tax benefit | (761 | ) | (258 | ) | (1,565 | ) | (222 | ) | |||||||||||
| Preferred return to preferred OP units / equity | 2,136 | 1,418 | 6,935 | 6,058 | |||||||||||||||
| Income attributable to noncontrolling interests | 96 | 720 | 8,902 | 9,768 | |||||||||||||||
| Preferred stock distribution | — | — | — | 1,288 | |||||||||||||||
| NOI(1) / Gross Profit | $ | 198,276 | $ | 167,635 | $ | 772,123 | $ | 700,011 | |||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Real Property NOI(1) | $ | 167,840 | $ | 146,106 | $ | 649,233 | $ | 586,649 | |||||||||||
| Home Sales NOI(1) / Gross Profit | 12,486 | 10,944 | 43,815 | 47,579 | |||||||||||||||
| Rental Program NOI(1) | 29,101 | 26,682 | 115,283 | 104,382 | |||||||||||||||
| Ancillary NOI(1) / Gross Profit | 7,973 | 1,382 | 38,615 | 30,206 | |||||||||||||||
| Site rent from Rental Program (included in Real Property NOI)(1)(9) | (19,124 | ) | (17,479 | ) | (74,823 | ) | (68,805 | ) | |||||||||||
| NOI(1) / Gross Profit | $ | 198,276 | $ | 167,635 | $ | 772,123 | $ | 700,011 | |||||||||||
Non-GAAP and Other Financial Measures
Debt Analysis
(amounts in thousands)
| Quarter Ended | |||||||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | |||||||||||||||
| Debt Outstanding | |||||||||||||||||||
| Mortgage loans payable | $ | 3,444,967 | $ | 3,191,380 | $ | 3,205,507 | $ | 3,273,808 | $ | 3,180,592 | |||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | 35,249 | 35,249 | 35,249 | 35,249 | ||||||||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | 34,663 | 34,663 | 34,663 | 34,663 | ||||||||||||||
| Lines of credit and other debt(6) | 1,242,197 | 79,321 | 115,352 | 582,774 | 183,898 | ||||||||||||||
| Total debt | $ | 4,757,076 | $ | 3,340,613 | $ | 3,390,771 | $ | 3,926,494 | $ | 3,434,402 | |||||||||
| % Fixed / Floating | |||||||||||||||||||
| Fixed | 74.0 | % | 97.6 | % | 96.6 | % | 85.2 | % | 94.7 | % | |||||||||
| Floating | 26.0 | % | 2.4 | % | 3.4 | % | 14.8 | % | 5.3 | % | |||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
| Weighted Average Interest Rates | |||||||||||||||||||
| Mortgage loans payable | 3.78 | % | 3.88 | % | 3.88 | % | 3.91 | % | 4.05 | % | |||||||||
| 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 | % | 6.50 | % | |||||||||
| Lines of credit and other debt(6) | 2.08 | % | 1.32 | % | 2.03 | % | 1.85 | % | 2.71 | % | |||||||||
| Total average | 3.37 | % | 3.86 | % | 3.86 | % | 3.64 | % | 4.03 | % | |||||||||
| Debt Ratios | |||||||||||||||||||
| Net Debt / Recurring EBITDA(1) (TTM) | 6.9 | 5.0 | 4.8 | 5.6 | 5.5 | ||||||||||||||
| Net Debt / Enterprise Value | 21.4 | % | 18.3 | % | 17.8 | % | 22.6 | % | 19.0 | % | |||||||||
| Net Debt / Gross Assets | 35.5 | % | 31.6 | % | 29.7 | % | 35.6 | % | 36.0 | % | |||||||||
| Coverage Ratios | |||||||||||||||||||
| Recurring EBITDA(1) (TTM) / Interest | 4.9 | 4.8 | 4.5 | 4.5 | 4.4 | ||||||||||||||
| Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution | 4.8 | 4.6 | 4.4 | 4.3 | 4.2 | ||||||||||||||
| Maturities / Principal Amortization Next Five Years | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||
| Mortgage loans payable | |||||||||||||||||||
| Maturities | $ | — | $ | 82,155 | $ | 185,618 | $ | 315,330 | $ | 50,528 | |||||||||
| Principal amortization | 59,585 | 61,364 | 60,739 | 57,293 | 53,879 | ||||||||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | — | — | — | 33,428 | 1,821 | ||||||||||||||
| Preferred OP units - mandatorily redeemable | — | — | — | 27,373 | — | ||||||||||||||
| Lines of credit and other debt(6) | 10,000 | 14,794 | 65,403 | 1,152,000 | — | ||||||||||||||
| Total | $ | 69,585 | $ | 158,313 | $ | 311,760 | $ | 1,585,424 | $ | 106,228 | |||||||||
| Weighted average rate of maturities | — | % | 4.46 | % | 4.08 | % | 4.47 | % | 4.04 | % | |||||||||
Real Property Operations – Same Community(2)
(amounts in thousands except for Other Information)
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | Change | % Change | December 31, 2020 | December 31, 2019 | Change | % Change | ||||||||||||||||||||||||
| Financial Information | |||||||||||||||||||||||||||||||
| Income from real property(10) | $ | 214,996 | $ | 203,422 | $ | 11,574 | 5.7 | % | $ | 876,981 | $ | 846,231 | $ | 30,750 | 3.6 | % | |||||||||||||||
| Property operating expenses | |||||||||||||||||||||||||||||||
| Payroll and benefits | 21,440 | 19,472 | 1,968 | 10.1 | % | 81,897 | 82,727 | (830 | ) | (1.0 | ) | % | |||||||||||||||||||
| Legal, taxes, and insurance | 3,170 | 2,919 | 251 | 8.6 | % | 10,860 | 10,351 | 509 | 4.9 | % | |||||||||||||||||||||
| Utilities(10) | 16,399 | 14,120 | 2,279 | 16.1 | % | 66,214 | 63,410 | 2,804 | 4.4 | % | |||||||||||||||||||||
| Supplies and repair(11) | 8,393 | 6,926 | 1,467 | 21.2 | % | 33,616 | 33,153 | 463 | 1.4 | % | |||||||||||||||||||||
| Other(a) | 6,309 | 5,462 | 847 | 15.5 | % | 27,916 | 26,738 | 1,178 | 4.4 | % | |||||||||||||||||||||
| Real estate taxes | 15,786 | 14,039 | 1,747 | 12.4 | % | 63,706 | 59,649 | 4,057 | 6.8 | % | |||||||||||||||||||||
| Property operating expenses | 71,497 | 62,938 | 8,559 | 13.6 | % | 284,209 | 276,028 | 8,181 | 3.0 | % | |||||||||||||||||||||
| Real Property NOI(1) | $ | 143,499 | $ | 140,484 | $ | 3,015 | 2.1 | % | $ | 592,772 | $ | 570,203 | $ | 22,569 | 4.0 | % | |||||||||||||||
(a) Includes COVID-19 personal protective equipment expense of
| As of | |||||||||||||
| December 31, 2020 | December 31, 2019 | Change | % Change | ||||||||||
| Other Information | |||||||||||||
| Number of properties | 367 | 367 | — | ||||||||||
| MH occupancy(3) | 97.4 | % | |||||||||||
| RV occupancy(3) | 100.0 | % | |||||||||||
| MH & RV blended occupancy(3) | 98.0 | % | |||||||||||
| Adjusted MH occupancy(3) | 98.5 | % | |||||||||||
| Adjusted RV occupancy(3) | 100.0 | % | |||||||||||
| Adjusted MH & RV blended occupancy(3) | 98.8 | % | 97.0 | % | 1.8 | % | |||||||
| Sites available for development | 6,682 | 6,314 | 368 | ||||||||||
| Monthly base rent per site - MH | $ | 600 | $ | 580 | $ | 20 | |||||||
| Monthly base rent per site - RV(12) | $ | 514 | $ | 488 | $ | 26 | |||||||
| Monthly base rent per site - Total(12) | $ | 579 | $ | 558 | $ | 21 | |||||||
Home Sales Summary
(amounts in thousands except for *)
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | Change | % Change | December 31, 2020 | December 31, 2019 | Change | % Change | ||||||||||||||||||||||||||
| Financial Information | |||||||||||||||||||||||||||||||||
| New Homes | |||||||||||||||||||||||||||||||||
| New home sales | $ | 21,192 | $ | 19,900 | $ | 1,292 | 6.5 | % | $ | 79,728 | $ | 71,760 | $ | 7,968 | 11.1 | % | |||||||||||||||||
| New home cost of sales | 17,922 | 16,817 | 1,105 | 6.6 | % | 65,533 | 61,557 | 3,976 | 6.5 | % | |||||||||||||||||||||||
| NOI(1) / Gross Profit – new homes | 3,270 | 3,083 | 187 | 6.1 | % | 14,195 | 10,203 | 3,992 | 39.1 | % | |||||||||||||||||||||||
| Gross margin % – new homes | 15.4 | % | 15.5 | % | (0.1 | ) | % | 17.8 | % | 14.2 | % | 3.6 | % | ||||||||||||||||||||
| Average selling price – new homes* | $ | 135,846 | $ | 142,143 | $ | (6,297 | ) | (4.4 | ) | % | $ | 139,874 | $ | 125,674 | $ | 14,200 | 11.3 | % | |||||||||||||||
| Pre-owned Homes | |||||||||||||||||||||||||||||||||
| Pre-owned home sales | $ | 27,728 | $ | 25,371 | $ | 2,357 | 9.3 | % | $ | 95,971 | $ | 110,176 | $ | (14,205 | ) | (12.9 | ) | % | |||||||||||||||
| Pre-owned home cost of sales | 18,512 | 17,510 | 1,002 | 5.7 | % | 66,351 | 72,800 | (6,449 | ) | (8.9 | ) | % | |||||||||||||||||||||
| NOI(1) / Gross Profit – pre-owned homes | 9,216 | 7,861 | 1,355 | 17.2 | % | 29,620 | 37,376 | (7,756 | ) | (20.8 | ) | % | |||||||||||||||||||||
| Gross margin % – pre-owned homes | 33.2 | % | 31.0 | % | 2.2 | % | 30.9 | % | 33.9 | % | (3.0 | ) | % | ||||||||||||||||||||
| Average selling price – pre-owned homes* | $ | 44,294 | $ | 37,981 | $ | 6,313 | 16.6 | % | $ | 41,799 | $ | 38,416 | $ | 3,383 | 8.8 | % | |||||||||||||||||
| Total Home Sales | |||||||||||||||||||||||||||||||||
| Revenue from home sales | $ | 48,920 | $ | 45,271 | $ | 3,649 | 8.1 | % | $ | 175,699 | $ | 181,936 | $ | (6,237 | ) | (3.4 | ) | % | |||||||||||||||
| Cost of home sales | 36,434 | 34,327 | 2,107 | 6.1 | % | 131,884 | 134,357 | (2,473 | ) | (1.8 | ) | % | |||||||||||||||||||||
| NOI(1) / Gross Profit – home sales | $ | 12,486 | $ | 10,944 | $ | 1,542 | 14.1 | % | $ | 43,815 | $ | 47,579 | $ | (3,764 | ) | (7.9 | ) | % | |||||||||||||||
| Statistical Information | |||||||||||||||||||||||||||||||||
| New home sales volume* | 156 | 140 | 16 | 11.4 | % | 570 | 571 | (1 | ) | (0.2 | ) | % | |||||||||||||||||||||
| Pre-owned home sales volume* | 626 | 668 | (42 | ) | (6.3 | ) | % | 2,296 | 2,868 | (572 | ) | (19.9 | ) | % | |||||||||||||||||||
| Total home sales volume* | 782 | 808 | (26 | ) | (3.2 | ) | % | 2,866 | 3,439 | (573 | ) | (16.7 | ) | % | |||||||||||||||||||
Rental Program Summary
(amounts in thousands except for *)
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | Change | % Change | December 31, 2020 | December 31, 2019 | Change | % Change | ||||||||||||||||||||||||||
| Financial Information | |||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||
| Rental home revenue | $ | 16,035 | $ | 14,745 | $ | 1,290 | 8.7 | % | $ | 62,646 | $ | 57,572 | $ | 5,074 | 8.8 | % | |||||||||||||||||
| Site rent from Rental Program(1)(9) | 19,124 | 17,479 | 1,645 | 9.4 | % | 74,823 | 68,805 | 6,018 | 8.7 | % | |||||||||||||||||||||||
| Rental Program revenue | 35,159 | 32,224 | 2,935 | 9.1 | % | 137,469 | 126,377 | 11,092 | 8.8 | % | |||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||
| Repairs and refurbishment | 3,263 | 3,273 | (10 | ) | (0.3 | ) | % | 11,886 | 12,591 | (705 | ) | (5.6 | ) | % | |||||||||||||||||||
| Taxes and insurance | 2,382 | 1,857 | 525 | 28.3 | % | 8,460 | 7,488 | 972 | 13.0 | % | |||||||||||||||||||||||
| Other | 413 | 412 | 1 | 0.2 | % | 1,840 | 1,916 | (76 | ) | (4.0 | ) | % | |||||||||||||||||||||
| Rental Program operating and maintenance | 6,058 | 5,542 | 516 | 9.3 | % | 22,186 | 21,995 | 191 | 0.9 | % | |||||||||||||||||||||||
| Rental Program NOI(1) | $ | 29,101 | $ | 26,682 | $ | 2,419 | 9.1 | % | $ | 115,283 | $ | 104,382 | $ | 10,901 | 10.4 | % | |||||||||||||||||
| Other Information | |||||||||||||||||||||||||||||||||
| Number of sold rental homes* | 269 | 281 | (12 | ) | (4.3 | ) | % | 850 | 1,140 | (290 | ) | (25.4 | ) | % | |||||||||||||||||||
| Number of occupied rentals, end of period* | 11,752 | 11,325 | 427 | 3.8 | % | ||||||||||||||||||||||||||||
| Investment in occupied rental homes, end of period | $ | 629,162 | $ | 584,771 | $ | 44,391 | 7.6 | % | |||||||||||||||||||||||||
| Weighted average monthly rental rate, end of period* | $ | 1,042 | $ | 997 | $ | 45 | 4.5 | % | |||||||||||||||||||||||||
Acquisitions and Other Summary(14)
(amounts in thousands except for statistical data)
| Three Months Ended | Year Ended | |||||||
| December 31, 2020 | December 31, 2020 | |||||||
| Financial Information | ||||||||
| Revenues | ||||||||
| Income from real property | $ | 52,737 | $ | 115,994 | ||||
| Property and Operating Expenses | ||||||||
| Payroll and benefits | 9,791 | 19,348 | ||||||
| Legal, taxes & insurance | 1,064 | 1,844 | ||||||
| Utilities | 5,492 | 12,307 | ||||||
| Supplies and repairs | 2,205 | 6,076 | ||||||
| Other | 5,365 | 11,058 | ||||||
| Real estate taxes | 4,479 | 8,900 | ||||||
| Property operating expenses | 28,396 | 59,533 | ||||||
| Net operating income (NOI)(1) | $ | 24,341 | $ | 56,461 | ||||
| Other Information - MH and RVs | December 31, 2020 | |||||||
| Number of properties | 79 | |||||||
| Occupied sites | 11,070 | |||||||
| Developed sites | 12,118 | |||||||
| Occupancy % | 91.4 | % | ||||||
| Transient sites | 6,942 | |||||||
| Other Information - Marinas | December 31, 2020 | |||
| Number of properties | 106 | |||
| Wet slips | 29,530 | |||
| Dry storage | 9,351 | |||
| Total wet slips and dry storage | 38,881 |
| MH and RV Property Summary | |||||||||||||||
| Properties | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||
| FLORIDA | |||||||||||||||
| Properties | 128 | 127 | 125 | 125 | 125 | ||||||||||
| Developed sites(15) | 39,803 | 39,517 | 39,241 | 39,380 | 39,230 | ||||||||||
| Occupied(15) | 39,063 | 38,743 | 38,453 | 38,526 | 38,346 | ||||||||||
| Occupancy %(15) | 98.1 | % | 98.0 | % | 98.0 | % | 97.8 | % | 97.7 | % | |||||
| Sites for development | 1,497 | 1,427 | 1,427 | 1,527 | 1,527 | ||||||||||
| MICHIGAN | |||||||||||||||
| Properties | 74 | 74 | 72 | 72 | 72 | ||||||||||
| Developed sites(15) | 29,086 | 29,086 | 27,901 | 27,883 | 27,905 | ||||||||||
| Occupied(15) | 28,109 | 28,033 | 27,191 | 26,863 | 26,785 | ||||||||||
| Occupancy %(15) | 96.6 | % | 96.4 | % | 97.5 | % | 96.3 | % | 96.0 | % | |||||
| Sites for development | 1,182 | 1,182 | 1,182 | 1,115 | 1,115 | ||||||||||
| CALIFORNIA | |||||||||||||||
| Properties | 35 | 34 | 32 | 31 | 31 | ||||||||||
| Developed sites(15) | 6,675 | 6,372 | 6,364 | 5,986 | 5,981 | ||||||||||
| Occupied(15) | 6,602 | 6,290 | 6,272 | 5,948 | 5,941 | ||||||||||
| Occupancy %(15) | 98.9 | % | 98.7 | % | 98.6 | % | 99.4 | % | 99.3 | % | |||||
| Sites for development | 373 | 373 | 264 | 302 | 302 | ||||||||||
| TEXAS | |||||||||||||||
| Properties | 24 | 24 | 23 | 23 | 23 | ||||||||||
| Developed sites(15) | 7,766 | 7,659 | 7,641 | 7,627 | 7,615 | ||||||||||
| Occupied(15) | 7,572 | 7,427 | 7,289 | 7,076 | 7,006 | ||||||||||
| Occupancy %(15) | 97.5 | % | 97.0 | % | 95.4 | % | 92.8 | % | 92.0 | % | |||||
| Sites for development | 1,378 | 1,378 | 565 | 555 | 555 | ||||||||||
| ONTARIO, CANADA | |||||||||||||||
| Properties | 15 | 15 | 15 | 15 | 15 | ||||||||||
| Developed sites(15) | 4,090 | 4,067 | 3,980 | 3,977 | 4,031 | ||||||||||
| Occupied(15) | 4,090 | 4,067 | 3,980 | 3,977 | 4,031 | ||||||||||
| Occupancy %(15) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
| Sites for development | 1,525 | 1,593 | 1,593 | 1,608 | 1,611 | ||||||||||
| ARIZONA | |||||||||||||||
| Properties | 14 | 13 | 13 | 13 | 13 | ||||||||||
| Developed sites(15) | 4,323 | 4,274 | 4,259 | 4,268 | 4,263 | ||||||||||
| Occupied(15) | 4,030 | 3,957 | 3,932 | 3,923 | 3,892 | ||||||||||
| Occupancy %(15) | 93.2 | % | 92.6 | % | 92.3 | % | 91.9 | % | 91.3 | % | |||||
| Sites for development | — | — | — | — | — | ||||||||||
| INDIANA | |||||||||||||||
| Properties | 12 | 11 | 11 | 11 | 11 | ||||||||||
| Developed sites(15) | 3,087 | 3,087 | 3,087 | 3,087 | 3,087 | ||||||||||
| Occupied(15) | 2,950 | 2,957 | 2,961 | 2,914 | 2,900 | ||||||||||
| Occupancy %(15) | 95.6 | % | 95.8 | % | 95.9 | % | 94.4 | % | 93.9 | % | |||||
| Sites for development | 277 | 277 | 277 | 277 | 277 | ||||||||||
| COLORADO | |||||||||||||||
| Properties | 10 | 10 | 10 | 10 | 10 | ||||||||||
| Developed sites(14) | 2,453 | 2,453 | 2,441 | 2,423 | 2,423 | ||||||||||
| Occupied(15) | 2,380 | 2,365 | 2,327 | 2,318 | 2,322 | ||||||||||
| Occupancy %(15) | 97.0 | % | 96.4 | % | 95.3 | % | 95.7 | % | 95.8 | % | |||||
| Sites for development | 1,250 | 1,282 | 1,566 | 1,867 | 1,867 | ||||||||||
| OHIO | |||||||||||||||
| Properties | 9 | 9 | 9 | 9 | 9 | ||||||||||
| Developed sites(15) | 2,790 | 2,790 | 2,778 | 2,768 | 2,770 | ||||||||||
| Occupied(15) | 2,755 | 2,758 | 2,736 | 2,702 | 2,716 | ||||||||||
| Occupancy %(15) | 98.7 | % | 98.9 | % | 98.5 | % | 97.6 | % | 98.1 | % | |||||
| Sites for development | 22 | 22 | 22 | 59 | 59 | ||||||||||
| OTHER STATES | |||||||||||||||
| Properties | 125 | 115 | 116 | 115 | 113 | ||||||||||
| Developed sites(15) | 24,179 | 22,721 | 22,780 | 22,583 | 22,572 | ||||||||||
| Occupied(15) | 23,401 | 21,995 | 22,024 | 21,749 | 21,678 | ||||||||||
| Occupancy %(15) | 96.8 | % | 96.8 | % | 96.7 | % | 96.3 | % | 96.0 | % | |||||
| Sites for development | 2,521 | 2,596 | 2,846 | 2,980 | 2,980 | ||||||||||
| TOTAL - MH AND ANNUAL RV PORTFOLIO | |||||||||||||||
| Properties | 446 | 432 | 426 | 424 | 422 | ||||||||||
| Developed sites(15) | 124,252 | 122,026 | 120,472 | 119,982 | 119,877 | ||||||||||
| Occupied(15) | 120,952 | 118,592 | 117,165 | 115,996 | 115,617 | ||||||||||
| Occupancy %(15) | 97.3 | % | (16) | 97.2 | % | 97.3 | % | 96.7 | % | 96.4 | % | ||||
| Sites for development(17) | 10,025 | 10,130 | 9,742 | 10,290 | 10,293 | ||||||||||
| % Communities age restricted | 33.2 | % | 33.6 | % | 34.0 | % | 34.0 | % | 34.1 | % | |||||
| TRANSIENT RV SITE SUMMARY | |||||||||||||||
| Location | |||||||||||||||
| Florida | 6,011 | 5,993 | 5,547 | 5,311 | 5,465 | ||||||||||
| California | 2,231 | 2,236 | 1,978 | 1,947 | 1,952 | ||||||||||
| Texas | 1,810 | 1,917 | 1,590 | 1,612 | 1,623 | ||||||||||
| Maryland | 1,515 | 1,515 | 1,515 | 1,488 | 1,488 | ||||||||||
| New York | 1,422 | 900 | 911 | 916 | 923 | ||||||||||
| Arizona | 1,337 | 1,386 | 1,401 | 1,392 | 1,397 | ||||||||||
| Indiana | 1,089 | 534 | 534 | 534 | 534 | ||||||||||
| Ontario, Canada | 966 | 920 | 1,007 | 1,009 | 939 | ||||||||||
| Colorado | 962 | 930 | 574 | 291 | 291 | ||||||||||
| Maine | 805 | 819 | 837 | 828 | 811 | ||||||||||
| New Jersey | 813 | 828 | 857 | 875 | 864 | ||||||||||
| Virginia | 737 | 564 | 598 | 630 | 324 | ||||||||||
| Other states | 5,345 | 5,186 | 5,011 | 5,047 | 4,805 | ||||||||||
| Total Transient RV Sites | 25,043 | 23,728 | 22,360 | 21,880 | 21,416 | ||||||||||
| Marina Property Summary | |||
| MARINAS | 12/31/2020 | ||
| MICHIGAN | |||
| Properties | 5 | ||
| Total wet slips and dry storage spaces | 4,468 | ||
| FLORIDA | |||
| Properties | 14 | ||
| Total wet slips and dry storage spaces | 3,573 | ||
| CONNECTICUT | |||
| Properties | 11 | ||
| Total wet slips and dry storage spaces | 3,254 | ||
| GEORGIA | |||
| Properties | 4 | ||
| Total wet slips and dry storage spaces | 2,834 | ||
| RHODE ISLAND | |||
| Properties | 11 | ||
| Total wet slips and dry storage spaces | 2,690 | ||
| NEW YORK | |||
| Properties | 8 | ||
| Total wet slips and dry storage spaces | 2,620 | ||
| OTHER STATES | |||
| Properties | 53 | ||
| Total wet slips and dry storage spaces | 19,442 | ||
| TOTAL - MARINA PORTFOLIO | |||
| Properties | 106 | ||
| Total wet slips and dry storage spaces | 38,881 | ||
Capital Improvements, Development, and Acquisitions
(amounts in thousands except for *)
| Recurring Capital Expenditures Average / Site* | Recurring Capital Expenditures(18) | Lot Modifications(19) | Acquisitions(20) | Expansion and Development(21) | Revenue Producing /Expense Reduction Projects(22) | Marina Related Capital Expenditures(a) | |||||||||||||||
| 2020 | $ | 265 | $ | 31,398 | $ | 29,789 | $ | 3,099,547 | $ | 246,454 | $ | 23,683 | $ | 14,147 | |||||||
| 2019 | $ | 345 | $ | 30,382 | $ | 31,135 | $ | 930,668 | $ | 281,808 | $ | 9,638 | N/A | ||||||||
| 2018 | $ | 263 | $ | 24,265 | $ | 22,867 | $ | 414,840 | $ | 152,672 | $ | 3,864 | N/A | ||||||||
(a) Includes capital improvements at recently acquired marinas, recurring capital expenditures, revenue producing capital expenditures and expansion and development.
Operating Statistics for MH and Annual RVs
| Locations | Resident Move-outs | Net Leased Sites(5) | New Home Sales | Pre-owned Home Sales | Brokered Re-sales | ||||||||||
| Florida | 2,303 | 410 | 164 | 209 | 1,251 | ||||||||||
| Michigan | 422 | 601 | 43 | 1,148 | 159 | ||||||||||
| Ontario, Canada | 677 | 59 | 37 | 21 | 424 | ||||||||||
| Texas | 398 | 566 | 73 | 254 | 68 | ||||||||||
| Arizona | 81 | 138 | 43 | 28 | 143 | ||||||||||
| Indiana | 67 | 50 | 4 | 187 | 18 | ||||||||||
| Ohio | 95 | 39 | — | 98 | 9 | ||||||||||
| California | 116 | 47 | 29 | 15 | 94 | ||||||||||
| Colorado | 22 | 58 | 33 | 26 | 48 | ||||||||||
| Other states | 1,184 | 537 | 144 | 310 | 343 | ||||||||||
| Year Ended December 31, 2020 | 5,365 | 2,505 | 570 | 2,296 | 2,557 | ||||||||||
| Total For Year Ended | Resident Move-outs | Net Leased Sites(5) | New Home Sales | Pre-owned Home Sales | Brokered Re-sales | ||||||||||
| 2019 | 4,139 | 2,674 | 571 | 2,868 | 2,231 | ||||||||||
| 2018 | 3,435 | 2,600 | 526 | 3,103 | 2,147 | ||||||||||
| Percentage Trends | Resident Move-outs | Resident Re-sales | ||||
| 2020 | 3.3 | % | 6.9 | % | ||
| 2019 | 2.6 | % | 6.6 | % | ||
| 2018 | 2.4 | % | 7.2 | % | ||
Footnotes and Definitions
- Investors in and analysts following the real estate industry utilize funds from operations (“FFO”), net operating income (“NOI”), and earnings before interest, tax, depreciation and amortization (“EBITDA”) as supplemental performance measures. The Company believes that FFO, NOI, and EBITDA are appropriate measures given their wide use by and relevance to investors and analysts. Additionally, FFO, NOI, and EBITDA are commonly used in various ratios, pricing multiples, yields and returns and valuation calculations used to measure financial position, performance and value.
- FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles (“GAAP”) depreciation and amortization of real estate assets.
- NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.
- EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating property, plus real estate related depreciation and amortization, real estate related impairments, and after adjustments for nonconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company’s operating performance. By excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing perspective not readily apparent from GAAP net income (loss). Management believes the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. The Company also uses FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of our core business (“Core FFO”). The Company believes that Core FFO provides enhanced comparability for investor evaluations of period-over-period results.
The Company believes that GAAP net income (loss) is the most directly comparable measure to FFO. The principal limitation of FFO is that it does not replace GAAP net income (loss) as a performance measure or GAAP cash flow from operations as a liquidity measure. Because FFO excludes significant economic components of GAAP net income (loss) including depreciation and amortization, FFO should be used as a supplement to GAAP net income (loss) and not as an alternative to it. Further, FFO is not intended as a measure of a REIT’s ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO is calculated in accordance with the Company’s interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that interpret the NAREIT definition differently.
NOI is derived from revenues minus property operating expenses and real estate taxes. NOI is a non-GAAP financial measure that the Company believes is helpful to investors as a supplemental measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. The Company uses NOI as a key measure when evaluating performance and growth of particular properties and / or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense and non-property specific expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.
The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company’s financial performance or GAAP cash flow from operating activities as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation, and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level.
EBITDA as defined by NAREIT (referred to as “EBITDAre”) is calculated as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus or minus losses or gains on the disposition of depreciated property (including losses or gains on change of control), plus impairment write-downs of depreciated property and of investments in nonconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of nonconsolidated affiliates. EBITDAre is a non-GAAP financial measure that the Company uses to evaluate its ability to incur and service debt, fund dividends and other cash needs and cover fixed costs. Investors utilize EBITDAre as a supplemental measure to evaluate and compare investment quality and enterprise value of REITs. The Company also uses EBITDAre excluding certain gain and loss items that management considers unrelated to measurement of the Company’s performance on a basis that is independent of capital structure (“Recurring EBITDA”).
The Company believes that GAAP net income (loss) is the most directly comparable measure to EBITDAre. EBITDAre is not intended to be used as a measure of the Company’s cash generated by operations or its dividend-paying capacity, and should therefore not replace GAAP net income (loss) as an indication of the Company’s financial performance or GAAP cash flow from operating, investing and financing activities as measures of liquidity.
(2) Same Community results reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at 2020 average exchange rates.
(3) The Same Community occupancy percentage is 97.4 percent for MH, 100.0 percent for RV, and 98.0 percent for the blended MH and RV. The MH and RV blended occupancy is derived from 112,134 developed sites, of which 109,882 were occupied. The Same Community occupancy percentage for 2019 has been adjusted to reflect incremental period-over-period growth from filled expansion sites and the conversion of transient RV sites to annual RV sites. The adjusted Same Community occupancy percentage for 2020 is derived from 111,196 developed sites, of which 109,882 were occupied. The number of developed sites excludes RV transient sites and approximately 950 recently completed but vacant MH expansion sites.
(4) The effect of certain anti-dilutive convertible securities is excluded from these items.
(5) Net leased sites do not include occupied sites acquired during that year.
(6) Lines of credit and other debt includes the Company’s MH floor plan facility. The effective interest rate on the MH floor plan facility was 6.0 percent for the quarters ended December 31, September 30 and June 30, 2020, and 7.0 percent for the quarters ended March 31, 2020, and December 31, 2019. However, the Company pays no interest if the floor plan balance is repaid within 60 days.
(7) Other expense, net was as follows (in thousands):
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Foreign currency remeasurement gain / (loss) | $ | (318 | ) | $ | (16 | ) | $ | (373 | ) | $ | (77 | ) | |||||||
| Collateralized receivables derecognition gain | — | 587 | — | 587 | |||||||||||||||
| Contingent consideration value expense | (72 | ) | (82 | ) | (2,962 | ) | (1,503 | ) | |||||||||||
| Long term lease termination expense | — | (65 | ) | (433 | ) | (107 | ) | ||||||||||||
| Other expense, net | $ | (390 | ) | $ | 424 | $ | (3,768 | ) | $ | (1,100 | ) | ||||||||
(8) These costs represent the expenses incurred to bring recently acquired 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.
(9) The renter’s monthly payment includes the site rent and an amount attributable to the home lease. The site rent is reflected in Real Property Operations’ segment revenue. For purposes of management analysis, site rent is included in Rental Program revenue to evaluate the incremental revenue gains associated with the Rental Program, and to assess the overall growth and performance of the Rental Program and financial impact on the Company’s operations.
(10) Same Community results net
(11) Same Community supplies and repair expense excludes
(12) Monthly base rent per site pertains to annual RV sites and excludes transient RV sites.
(13) Calculated using actual results without rounding.
(14) Acquisitions and other is comprised of 130 properties acquired and three properties that the Company has an interest in, but does not operate in 2020, 42 properties acquired in 2019, one property being operated under a temporary use permit, three Florida Keys properties that require redevelopment as a result of damage sustained from Hurricane Irma in 2017, five recently opened ground-up developments, one property undergoing redevelopment, and other miscellaneous transactions and activity.
(15) Includes MH and annual RV sites, and excludes transient RV sites, as applicable.
(16) As of December 31, 2020, total portfolio MH occupancy was 96.6 percent inclusive of the impact of over 1,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.
(17) Total sites for development were comprised of 75.7 percent for expansion, 22.2 percent for greenfield development and 2.2 percent for redevelopment.
(18) MH recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities. These capital expenditures include items such as: major road, driveway, pool improvements; clubhouse renovations; adding or replacing street lights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. The minimum capitalized amount is five hundred dollars.
(19) MH lot modification capital expenditures improve the asset quality of the community. These costs are incurred when an existing older home moves out, and the site is prepared for a new home, more often than not, a multi-sectional home. These activities, which are mandated by strict manufacturer’s installation requirements and state building code, include items such as new foundations, driveways, and utility upgrades.
(20) Capital expenditures related to acquisitions represent the purchase price of existing operating properties (including marinas) and land parcels to develop expansions or new properties. These costs for the year ended December 31, 2020 include
(21) MH expansion and development expenditures consist primarily of construction costs and costs necessary to complete home site improvements, such as driveways, sidewalks and landscaping.
(22) MH capital costs related to revenue generating activities consist primarily of garages, sheds, sub-metering of water, sewer and electricity. Revenue generating attractions at our RV resorts are also included here and, occasionally, a special capital project requested by residents and accompanied by an extra rental increase will be classified as revenue producing.
Certain financial information has been revised to reflect reclassifications in prior periods to conform to current period presentation.
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