Sun Communities, Inc. Reports 2021 First Quarter Results
Sun Communities reported strong Q1 2021 results, with total revenues rising by 42.4% to $442 million, compared to $310.3 million in Q1 2020. Net income reached $24.8 million, a turnaround from a net loss of $16.1 million in the previous year. Core Funds from Operations (Core FFO) increased by 3.3% to $1.26 per diluted share. Same Community Net Operating Income (NOI) rose by 2.7%, while occupancy improved to 97.3%. The company successfully acquired over $183 million in assets, and has raised its earnings guidance reflecting market confidence.
- Total revenues increased by 42.4% to $442 million.
- Net income attributable to common stockholders was $24.8 million, compared to a loss of $16.1 million in Q1 2020.
- Core FFO rose to $1.26 per diluted share, up 3.3% from the prior year.
- Same Community NOI increased by 2.7%.
- Occupancy improved to 97.3% from 96.7% year-over-year.
- Successful acquisition totaling $183 million during and after Q1 2021.
- Operating expenses for RV same community properties increased by 5.3%, impacting NOI.
- RV same community NOI declined by 4.0% due to reduced revenues.
Southfield, MI, April 26, 2021 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") communities, recreational vehicle ("RV") resorts and marinas, (collectively, the "properties"), today reported its first quarter results for 2021.
Financial Results for the Quarter Ended March 31, 2021
For the quarter ended March 31, 2021, total revenues increased
Non-GAAP Financial Measures and Portfolio Performance
- Core Funds from Operations ("Core FFO")(1) for the quarter ended March 31, 2021, was
$1.26 per diluted share and OP unit ("Share") as compared to$1.22 in the corresponding period in 2020, a 3.3 percent increase. - Same Community(2) Net Operating Income ("NOI")(1) increased by 2.7 percent for the quarter ended March 31, 2021, as compared to the corresponding period in 2020.
- Same Community(2) Occupancy increased by 190 basis points to 98.8 percent, as compared to 96.9 percent at March 31, 2020.
- MH and Annual RV Revenue Producing Sites increased by 514 sites in the quarter ended March 31, 2021, bringing total portfolio occupancy to 97.3 percent at March 31, 2021, as compared to an increase of 300 sites in the corresponding period in 2020 and total portfolio occupancy of 96.7 percent at March 31, 2020.
- Home Sales Volume increased 9.4 percent for the quarter ended March 31, 2021, as compared to the same period in 2020.
- Acquisitions totaled
$183.0 million during and subsequent to the quarter ended March 31, 2021, including 2 MH communities, 6 RV resorts and 4 marinas.
Gary Shiffman, Chief Executive Officer stated, "Sun delivered a strong start to the year, as we continued to benefit from both the stability of our portfolio and the contribution of our growth initiatives across manufactured housing, RV resorts and marinas. Sustained demand for affordable housing and the desire for RV vacations are providing strong tailwinds, while marinas continue to exhibit durable customer retention and growth. With increased rates of vaccination and the beginning of a return to normalcy, we are seeing higher forward RV bookings providing better visibility into a stronger year ahead. Accordingly, we have increased our earnings guidance to reflect this confidence. To enhance our growth, we delivered approximately 350 ground-up development and expansion sites, and deployed
OPERATING HIGHLIGHTS
Portfolio Occupancy
Total MH and annual RV occupancy was 97.3 percent at March 31, 2021, compared to 96.7 percent at March 31, 2020, an increase of 60 basis points.
During the quarter ended March 31, 2021, MH and annual RV revenue producing sites increased by 514 sites, as compared to an increase of 300 revenue producing sites during the quarter ended March 31, 2020.
Same Community(2) Results
For the 407 MH and RV properties owned and operated by the Company since January 1, 2020, NOI(1) for the quarter ended March 31, 2021 increased 2.7 percent over the same period in 2020, driven by a 3.5 percent increase in revenues. Same Community occupancy(3) increased to 98.8 percent at March 31, 2021 from 96.9 percent at March 31, 2020.
For the MH same community properties, NOI(1) increased by 4.9 percent in the quarter ended March 31, 2021, driven by a 5.1 percent increase in revenues and offset by a 5.7 percent increase in property operating expenses.
For the RV same community properties, NOI(1) declined by 4.0 percent in the quarter ended March 31, 2021, driven by a 0.2 percent decline in revenues and a 5.3 percent increase in property operating expenses. RV same community revenues were impacted by the continued Canadian border closure and the California shelter-in-place order that ran through early February 2021.
Home Sales
During the quarter ended March 31, 2021, the Company sold 835 homes as compared to 763 homes in the same period in 2020. The Company sold 149 and 119 new homes for the quarters ended March 31, 2021 and 2020, respectively, an increase of 25.2 percent. Pre-owned home sales were 686 in the first quarter 2021 as compared to 644 in the same period in 2020, an increase of 6.5 percent.
Marina Results
Marina NOI was
PORTFOLIO ACTIVITY
Acquisitions
During and subsequent to the quarter ended March 31, 2021, the Company acquired the following communities, resorts and marinas:
| Property Name | Property Type | Sites, Wet Slips and Dry Storage Spaces | State / Providence | Total Purchase Price (in millions) | Month Acquired | ||||||||
| Association Island KOA | RV | 294 | NY | $ | 15.0 | January | |||||||
| Blue Water Beach Resort | RV | 177 | UT | 9.0 | February | ||||||||
| Tranquility MHC | MH | 25 | FL | 1.3 | February | ||||||||
| Islamorada and Angler House(a) | Marina | 251 | FL | 18.0 | February | ||||||||
| Prime Martha’s Vineyard(a) | Marina | 390 | MA | 22.2 | March | ||||||||
| Pleasant Beach Campground | RV | 102 | ON | 1.6 | March | ||||||||
| Cherrystone Family Camping Resort | RV | 669 | VA | 59.9 | March | ||||||||
| Beachwood Resort | RV | 672 | WA | 7.0 | March | ||||||||
| Subtotal | 2,580 | 134.0 | |||||||||||
| Acquisitions subsequent to quarter end | |||||||||||||
| Themeworld RV Resort | RV | 148 | FL | 25.0 | April | ||||||||
| Sylvan Glen Estates(b) | MH | 476 | MI | 24.0 | April | ||||||||
| Subtotal | 624 | 49.0 | |||||||||||
| Total acquisitions | 3,204 | $ | 183.0 | ||||||||||
(a) Includes two marinas.
(b) In conjunction with the acquisition, the Company issued 240,000 Series J preferred OP units.
Construction Activity
During the quarter ended March 31, 2021, the Company completed the construction of nearly 250 sites in its newly opened ground-up development in San Diego, California, and over 100 expansion sites in a Texas MH community.
BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS
Debt
As of March 31, 2021, the Company had approximately
Equity Transaction
In March 2021, the Company completed a
Reporting Changes
Refer to the Summary of 2021 Reporting Changes document, which can be found in the Investor Relations section of the Company’s website, for additional information regarding updated and expanded reporting implemented during the quarter.
2021 GUIDANCE
The Company is revising its 2021 guidance for the following metrics:
| Previous Range | Revised Range | ||||||||||
| FY 2021E | FY 2021E | 2Q 2021E | |||||||||
| Basic earnings per share | |||||||||||
| Core FFO(1) per fully diluted Share | |||||||||||
| 1Q21 | 2Q21 | 3Q21 | 4Q21 | ||||||||
| Seasonality of Core FFO(1) per fully diluted Share | 21.0 | % | 26.6 | % | 32.1 | % | 20.3 | % | |||
Seasonality of Core FFO(1) per fully diluted Share is based off of the midpoint of full year guidance.
| Previous Range | Revised Range | ||||||
| FY 2021E | FY 2021E | 2Q 2021E | |||||
| Same Community NOI(1) growth |
Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions or capital markets activity. The settlement of the remaining 4,050,000 shares offered under the March 2021 forward equity sales agreement, is not included in guidance.
The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. The estimates and assumptions are forward looking based on the Company's current assessment of economic and market conditions, as well as other risks outlined below under the caption "Cautionary Statement Regarding Forward-Looking Statements."
EARNINGS CONFERENCE CALL
A conference call to discuss first quarter results will be held on Tuesday, April 27, 2021 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through May 11, 2021 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13717209. The conference call will be available live on Sun Communities' website located at www.suncommunities.com. The replay will also be available on the website.
Sun Communities, Inc. is a REIT that, as of March 31, 2021, owned, operated, or had an interest in a portfolio of 562 developed MH, RV and marina properties comprising over 151,600 developed sites and nearly 38,800 wet slips and dry storage spaces in 39 states and Ontario, Canada.
For more information about Sun Communities, Inc., please visit www.suncommunities.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company's control. These risks, uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and the Company's other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:
- outbreaks of disease, including the COVID-19 pandemic, and related stay at home orders, quarantine policies and restrictions on travel, trade and business operations;
- changes in general economic conditions, the real estate industry and the markets in which the Company operates;
- difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
- the Company's liquidity and refinancing demands;
- the Company's ability to obtain or refinance maturing debt;
- the Company's ability to maintain compliance with covenants contained in its debt facilities;
- availability of capital;
- changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;
- the Company's ability to maintain rental rates and occupancy levels;
- the Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
- increases in interest rates and operating costs, including insurance premiums and real property taxes;
- risks related to natural disasters such as hurricanes, earthquakes, floods, and wildfires;
- general volatility of the capital markets and the market price of shares of the Company's capital stock;
- the Company's ability to maintain its status as a REIT;
- changes in real estate and zoning laws and regulations;
- legislative or regulatory changes, including changes to laws governing the taxation of REITs;
- litigation, judgments or settlements;
- competitive market forces;
- ability of purchasers of manufactured homes and boats to obtain financing; and
- level of repossessions by manufactured home and lenders.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.
Investor Information
| RESEARCH COVERAGE | ||||||
| Firm | Analyst | Phone | ||||
| Bank of America Merrill Lynch | Joshua Dennerlein | (646) 855-1681 | joshua.dennerlein@baml.com | |||
| Berenberg Capital Markets | Keegan Carl | (646) 949-9052 | keegan.carl@berenberg-us.com | |||
| BMO Capital Markets | John Kim | (212) 885-4115 | johnp.kim@bmo.com | |||
| Citi Research | Michael Bilerman | (212) 816-1383 | michael.bilerman@citi.com | |||
| Nicholas Joseph | (212) 816-1909 | nicholas.joseph@citi.com | ||||
| Evercore ISI | Steve Sakwa | (212) 446-9462 | steve.sakwa@evercoreisi.com | |||
| Samir Khanal | (212) 888-3796 | samir.khanal@evercoreisi.com | ||||
| Green Street Advisors | John Pawlowski | (949) 640-8780 | jpawlowski@greenstreetadvisors.com | |||
| Robert W. Baird & Co. | Wesley Golladay | (216) 737-7510 | wgolladay@rwbaird.com | |||
| RBC Capital Markets | Brad Heffern | (512) 708-6311 | brad.heffern@rbccm.com | |||
| Wells Fargo | Todd Stender | (562) 637-1371 | todd.stender@wellsfargo.com | |||
| INQUIRIES | ||||||
| Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department. | ||||||
| At Our Website | www.suncommunities.com | |||||
| By Email | investorrelations@suncommunities.com | |||||
| By Phone | (248) 208-2500 | |||||
Portfolio Overview
(As of March 31, 2021)
Financial and Operating Highlights
(amounts in thousands, except for *)
| Quarter Ended | ||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | ||||||||||||||||
| Financial Information | ||||||||||||||||||||
| Total revenues | $ | 442,015 | $ | 384,265 | $ | 400,514 | $ | 303,266 | $ | 310,302 | ||||||||||
| Net income / (loss) | $ | 27,941 | $ | 9,818 | $ | 89,756 | $ | 63,355 | $ | (15,478 | ) | |||||||||
| Net income / (loss) attributable to Sun Communities Inc. common stockholders | $ | 24,782 | $ | 7,586 | $ | 81,204 | $ | 58,910 | $ | (16,086 | ) | |||||||||
| Basic earnings / (loss) per share* | $ | 0.23 | $ | 0.07 | $ | 0.83 | $ | 0.61 | $ | (0.17 | ) | |||||||||
| Diluted earnings / (loss) per share* | $ | 0.23 | $ | 0.07 | $ | 0.83 | $ | 0.61 | $ | (0.17 | ) | |||||||||
| Cash distributions declared per common share* | $ | 0.83 | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.79 | ||||||||||
| Recurring EBITDA(1) | $ | 190,830 | $ | 168,527 | $ | 199,321 | $ | 148,650 | $ | 156,552 | ||||||||||
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) | $ | 135,925 | $ | 110,849 | $ | 165,209 | $ | 118,092 | $ | 95,046 | ||||||||||
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) | $ | 141,036 | $ | 124,872 | $ | 162,624 | $ | 110,325 | $ | 117,267 | ||||||||||
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted* | $ | 1.22 | $ | 1.03 | $ | 1.63 | $ | 1.20 | $ | 0.98 | ||||||||||
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted* | $ | 1.26 | $ | 1.16 | $ | 1.60 | $ | 1.12 | $ | 1.22 | ||||||||||
| Balance Sheet | ||||||||||||||||||||
| Total assets | $ | 11,454,209 | $ | 11,206,586 | $ | 8,335,717 | $ | 8,348,659 | $ | 8,209,047 | ||||||||||
| Total debt | $ | 4,417,935 | $ | 4,757,076 | $ | 3,340,613 | $ | 3,390,771 | $ | 3,926,494 | ||||||||||
| Total liabilities | $ | 5,101,512 | $ | 5,314,879 | $ | 3,791,922 | $ | 3,845,308 | $ | 4,346,127 | ||||||||||
| Quarter Ended | ||||||||||||||
| 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | ||||||||||
| Operating Information* | ||||||||||||||
| Properties | 562 | 552 | 432 | 426 | 424 | |||||||||
| Manufactured home sites | 96,876 | 96,688 | 95,209 | 94,232 | 93,834 | |||||||||
| Annual RV sites | 28,441 | 27,564 | 26,817 | 26,240 | 26,148 | |||||||||
| Transient RV sites | 26,295 | 25,043 | 23,728 | 22,360 | 21,880 | |||||||||
| Total sites | 151,612 | 149,295 | 145,754 | 142,832 | 141,862 | |||||||||
| Marina wet slips and dry storage spaces | 38,753 | 38,152 | N/A | N/A | N/A | |||||||||
| MH occupancy | 96.5 | % | 96.6 | % | 96.4 | % | 96.5 | % | 95.8 | % | ||||
| Annual RV occupancy | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
| Blended MH and annual RV occupancy | 97.3 | % | 97.3 | % | 97.2 | % | 97.3 | % | 96.7 | % | ||||
| New home sales | 149 | 156 | 155 | 140 | 119 | |||||||||
| Pre-owned home sales | 686 | 626 | 555 | 471 | 644 | |||||||||
| Total home sales | 835 | 782 | 710 | 611 | 763 | |||||||||
| Quarter Ended | ||||||||||||||
| 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | ||||||||||
| Revenue Producing Site Gains(5) | ||||||||||||||
| MH net leased sites | 127 | 247 | 349 | 759 | 287 | |||||||||
| RV net leased sites | 387 | 331 | 427 | 92 | 13 | |||||||||
| Total net leased sites | 514 | 578 | 776 | 851 | 300 | |||||||||
Consolidated Balance Sheets
(amounts in thousands)
| March 31, 2021 | December 31, 2020 | |||||||||
| Assets | ||||||||||
| Land | $ | 2,190,762 | $ | 2,119,364 | ||||||
| Land improvements and buildings | 8,664,199 | 8,480,597 | ||||||||
| Rental homes and improvements | 652,559 | 637,603 | ||||||||
| Furniture, fixtures and equipment | 491,735 | 447,039 | ||||||||
| Investment property | 11,999,255 | 11,684,603 | ||||||||
| Accumulated depreciation | (2,088,105 | ) | (1,968,812 | ) | ||||||
| Investment property, net | 9,911,150 | 9,715,791 | ||||||||
| Cash, cash equivalents and restricted cash | 120,174 | 92,641 | ||||||||
| Marketable securities | 127,821 | 124,726 | ||||||||
| Inventory of manufactured homes | 43,242 | 46,643 | ||||||||
| Notes and other receivables, net | 249,009 | 221,650 | ||||||||
| Goodwill | 438,842 | 428,833 | ||||||||
| Other intangible assets, net | 300,554 | 305,611 | ||||||||
| Other assets, net | 263,417 | 270,691 | ||||||||
| Total Assets | $ | 11,454,209 | $ | 11,206,586 | ||||||
| Liabilities | ||||||||||
| Mortgage loans payable | $ | 3,430,420 | $ | 3,444,967 | ||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | 35,249 | ||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | 34,663 | ||||||||
| Lines of credit and other debt | 917,603 | 1,242,197 | ||||||||
| Distributions payable | 95,076 | 86,988 | ||||||||
| Advanced reservation deposits and rent | 280,301 | 187,730 | ||||||||
| Accrued expenses and accounts payable | 160,072 | 148,435 | ||||||||
| Other liabilities | 148,128 | 134,650 | ||||||||
| Total Liabilities | 5,101,512 | 5,314,879 | ||||||||
| Commitments and contingencies | ||||||||||
| Temporary equity | 261,059 | 264,379 | ||||||||
| Stockholders' Equity | ||||||||||
| Common stock | 1,118 | 1,076 | ||||||||
| Additional paid-in capital | 7,618,128 | 7,087,658 | ||||||||
| Accumulated other comprehensive loss | 4,033 | 3,178 | ||||||||
| Distributions in excess of accumulated earnings | (1,631,044 | ) | (1,566,636 | ) | ||||||
| Total Sun Communities, Inc. stockholders' equity | 5,992,235 | 5,525,276 | ||||||||
| Noncontrolling interests | ||||||||||
| Common and preferred OP units | 82,502 | 85,968 | ||||||||
| Consolidated variable interest entities | 16,901 | 16,084 | ||||||||
| Total noncontrolling interests | 99,403 | 102,052 | ||||||||
| Total Stockholders' Equity | 6,091,638 | 5,627,328 | ||||||||
| Total Liabilities, Temporary Equity and Stockholders' Equity | $ | 11,454,209 | $ | 11,206,586 | ||||||
Statements of Operations - Quarter to Date Comparison
(In thousands, except per share amounts) (Unaudited)
| Three Months Ended | ||||||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | % Change | |||||||||||||||
| Revenues | ||||||||||||||||||
| Real property (excluding transient) | $ | 298,077 | $ | 228,002 | $ | 70,075 | 30.7 | % | ||||||||||
| Real property - transient | 32,536 | 30,347 | 2,189 | 7.2 | % | |||||||||||||
| Home sales | 52,199 | 40,587 | 11,612 | 28.6 | % | |||||||||||||
| Service, retail, dining and entertainment | 50,612 | 5,103 | 45,509 | 891.8 | % | |||||||||||||
| Interest | 2,631 | 2,350 | 281 | 12.0 | % | |||||||||||||
| Brokerage commissions and other, net | 5,960 | 3,913 | 2,047 | 52.3 | % | |||||||||||||
| Total Revenues | 442,015 | 310,302 | 131,713 | 42.4 | % | |||||||||||||
| Expenses | ||||||||||||||||||
| Property operating and maintenance | 103,553 | 69,834 | 33,719 | 48.3 | % | |||||||||||||
| Real estate tax | 22,408 | 17,176 | 5,232 | 30.5 | % | |||||||||||||
| Home costs and selling | 41,590 | 34,039 | 7,551 | 22.2 | % | |||||||||||||
| Service, retail, dining and entertainment | 45,431 | 6,682 | 38,749 | 579.9 | % | |||||||||||||
| General and administrative | 38,203 | 25,349 | 12,854 | 50.7 | % | |||||||||||||
| Catastrophic event-related charges, net | 2,414 | 606 | 1,808 | 298.3 | % | |||||||||||||
| Business combination | 1,232 | — | 1,232 | N/A | ||||||||||||||
| Depreciation and amortization | 123,304 | 83,689 | 39,615 | 47.3 | % | |||||||||||||
| Loss on extinguishment of debt | — | 3,279 | (3,279 | ) | (100.0 | ) | % | |||||||||||
| Interest | 39,517 | 32,416 | 7,101 | 21.9 | % | |||||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,036 | 1,041 | (5 | ) | (0.5 | ) | % | |||||||||||
| Total Expenses | 418,688 | 274,111 | 144,577 | 52.7 | % | |||||||||||||
| Income Before Other Items | 23,327 | 36,191 | (12,864 | ) | (35.5 | ) | % | |||||||||||
| Gain / (loss) on remeasurement of marketable securities | 3,661 | (28,647 | ) | 32,308 | 112.8 | % | ||||||||||||
| Gain / (loss) on foreign currency translation | 25 | (17,479 | ) | 17,504 | 100.1 | % | ||||||||||||
| Other expense, net(6) | (1,099 | ) | (972 | ) | (127 | ) | (13.1 | ) | % | |||||||||
| Income / (loss) on remeasurement of notes receivable | 376 | (2,112 | ) | 2,488 | 117.8 | % | ||||||||||||
| Income from nonconsolidated affiliates | 1,171 | 52 | 1,119 | N/M | ||||||||||||||
| Income / (loss) on remeasurement of investment in nonconsolidated affiliates | 104 | (2,191 | ) | 2,295 | 104.7 | % | ||||||||||||
| Current tax benefit / (expense) | 229 | (450 | ) | 679 | 150.9 | % | ||||||||||||
| Deferred tax benefit | 147 | 130 | 17 | 13.1 | % | |||||||||||||
| Net Income / (Loss) | 27,941 | (15,478 | ) | 43,419 | 280.5 | % | ||||||||||||
| Less: Preferred return to preferred OP units / equity | 2,864 | 1,570 | 1,294 | 82.4 | % | |||||||||||||
| Less: Income / (loss) attributable to noncontrolling interests | 295 | (962 | ) | 1,257 | 130.7 | % | ||||||||||||
| Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders | $ | 24,782 | $ | (16,086 | ) | $ | 40,868 | 254.1 | % | |||||||||
| Weighted average common shares outstanding - basic | 107,932 | 92,410 | 15,522 | 16.8 | % | |||||||||||||
| Weighted average common shares outstanding - diluted | 108,161 | 92,411 | 15,750 | 17.0 | % | |||||||||||||
| Basic earnings / (loss) per share | $ | 0.23 | $ | (0.17 | ) | $ | 0.40 | 235.3 | % | |||||||||
| Diluted earnings / (loss) per share | $ | 0.23 | $ | (0.17 | ) | $ | 0.40 | 235.3 | % | |||||||||
N/M = Percentage change is not meaningful.
Outstanding Securities and Capitalization
(amounts in thousands except for *)
| Outstanding Securities - As of March 31, 2021 | |||||||||||
| Number of Units / Shares Outstanding | Conversion Rate* | If Converted(1) | Issuance Price Per Unit* | Annual Distribution Rate* | |||||||
| Non-convertible Securities | |||||||||||
| Common shares | 111,835 | N/A | N/A | N/A | |||||||
| Convertible Securities | |||||||||||
| Common OP units | 2,582 | 1.0000 | 2,582 | N/A | Mirrors common shares distributions | ||||||
| Series A-1 preferred OP units | 290 | 2.4390 | 708 | $ | 100 | 6.00 | % | ||||
| Series A-3 preferred OP units | 40 | 1.8605 | 75 | $ | 100 | 4.50 | % | ||||
| Series C preferred OP units | 306 | 1.1100 | 340 | $ | 100 | 5.00 | % | ||||
| Series D preferred OP units | 489 | 0.8000 | 391 | $ | 100 | 4.00 | % | ||||
| Series E preferred OP units | 90 | 0.6897 | 62 | $ | 100 | 5.25 | % | ||||
| Series F preferred OP units | 90 | 0.6250 | 56 | $ | 100 | 3.00 | % | ||||
| Series G preferred OP units | 241 | 0.6452 | 155 | $ | 100 | 3.20 | % | ||||
| Series H preferred OP units | 581 | 0.6098 | 355 | $ | 100 | 3.00 | % | ||||
| Series I preferred OP units | 922 | 0.6098 | 562 | $ | 100 | 3.00 | % | ||||
^ Annual distribution is based on the last quarterly distribution annualized.
(1) Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.
| Capitalization - As of March 31, 2021 | |||||||||||
| Equity | Shares | Share Price* | Total | ||||||||
| Common shares | 111,835 | $ | 150.04 | $ | 16,779,723 | ||||||
| Common OP units | 2,582 | $ | 150.04 | 387,403 | |||||||
| Subtotal | 114,417 | $ | 17,167,126 | ||||||||
| Preferred OP units as converted | 2,704 | $ | 150.04 | $ | 405,708 | ||||||
| Total diluted shares outstanding | 117,121 | 17,572,834 | |||||||||
| Debt | |||||||||||
| Mortgage loans payable | $ | 3,430,420 | |||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | ||||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | ||||||||||
| Lines of credit and other debt | 917,603 | ||||||||||
| Total debt | $ | 4,417,935 | |||||||||
| Total Capitalization | $ | 21,990,769 | |||||||||
Reconciliations to Non-GAAP Financial Measures
Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to FFO(1)
(amounts in thousands except for per share data)
| Three Months Ended | |||||||||
| March 31, 2021 | March 31, 2020 | ||||||||
| Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders | $ | 24,782 | $ | (16,086 | ) | ||||
| Adjustments | |||||||||
| Depreciation and amortization | 123,076 | 83,752 | |||||||
| Depreciation on nonconsolidated affiliates | 30 | — | |||||||
| (Gain) / loss on remeasurement of marketable securities | (3,661 | ) | 28,647 | ||||||
| (Gain) / loss on remeasurement of investment in nonconsolidated affiliates | (104 | ) | 2,191 | ||||||
| (Gain) / loss on remeasurement of notes receivable | (376 | ) | 2,112 | ||||||
| Loss attributable to noncontrolling interests | (147 | ) | (882 | ) | |||||
| Preferred return to preferred OP units | 480 | 874 | |||||||
| Gain on disposition of assets, net | (8,155 | ) | (5,562 | ) | |||||
| FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) | $ | 135,925 | $ | 95,046 | |||||
| Adjustments | |||||||||
| Business combination expense and other acquisition related costs(7) | 1,953 | 385 | |||||||
| Loss on extinguishment of debt | — | 3,279 | |||||||
| Catastrophic event-related charges, net | 2,414 | 606 | |||||||
| Loss of earnings - catastrophic event-related | 200 | 300 | |||||||
| (Gain) / loss on foreign currency translation | (25 | ) | 17,479 | ||||||
| Other expense, net(6) | 716 | 302 | |||||||
| Deferred tax benefits | (147 | ) | (130 | ) | |||||
| Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) | $ | 141,036 | $ | 117,267 | |||||
| Weighted average common shares outstanding - basic | 107,932 | 92,410 | |||||||
| Add | |||||||||
| Common shares dilutive effect: March 2021 forward equity offering | 229 | — | |||||||
| Common stock issuable upon conversion of stock options | — | 1 | |||||||
| Restricted stock | 191 | 524 | |||||||
| Common OP units | 2,596 | 2,412 | |||||||
| Common stock issuable upon conversion of certain preferred OP units | 791 | 1,166 | |||||||
| Weighted Average Common Shares Outstanding - Fully Diluted | 111,739 | 96,513 | |||||||
| FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted | $ | 1.22 | $ | 0.98 | |||||
| Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted | $ | 1.26 | $ | 1.22 | |||||
Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to NOI(1)
(amounts in thousands)
| Three Months Ended | |||||||||
| March 31, 2021 | March 31, 2020 | ||||||||
| Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders | $ | 24,782 | $ | (16,086 | ) | ||||
| Interest income | (2,631 | ) | (2,350 | ) | |||||
| Brokerage commissions and other revenues, net | (5,960 | ) | (3,913 | ) | |||||
| General and administrative expense | 38,203 | 25,349 | |||||||
| Catastrophic event-related charges, net | 2,414 | 606 | |||||||
| Business combination expense | 1,232 | — | |||||||
| Depreciation and amortization | 123,304 | 83,689 | |||||||
| Loss on extinguishment of debt | — | 3,279 | |||||||
| Interest expense | 39,517 | 32,416 | |||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,036 | 1,041 | |||||||
| (Gain) / loss on remeasurement of marketable securities | (3,661 | ) | 28,647 | ||||||
| (Gain) / loss on foreign currency translation | (25 | ) | 17,479 | ||||||
| Other expense, net(6) | 1,099 | 972 | |||||||
| (Income) / loss on remeasurement of notes receivable | (376 | ) | 2,112 | ||||||
| Income from nonconsolidated affiliates | (1,171 | ) | (52 | ) | |||||
| (Income) / loss on remeasurement of investment in nonconsolidated affiliates | (104 | ) | 2,191 | ||||||
| Current tax (benefit) / expense | (229 | ) | 450 | ||||||
| Deferred tax benefit | (147 | ) | (130 | ) | |||||
| Preferred return to preferred OP units / equity | 2,864 | 1,570 | |||||||
| Income / (loss) attributable to noncontrolling interests | 295 | (962 | ) | ||||||
| NOI(1) | $ | 220,442 | $ | 176,308 | |||||
| Three Months Ended | ||||||||
| March 31, 2021 | March 31, 2020 | |||||||
| Real Property NOI(1) | $ | 204,652 | $ | 171,339 | ||||
| Home Sales NOI(1) | 10,609 | 6,548 | ||||||
| Service, retail, dining and entertainment NOI(1) | 5,181 | (1,579 | ) | |||||
| NOI(1) | $ | 220,442 | $ | 176,308 | ||||
Reconciliation of Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA(1)
(amounts in thousands)
| Three Months Ended | |||||||||
| March 31, 2021 | March 31, 2020 | ||||||||
| Net Income / (Loss) Attributable to Sun Communities, Inc. Common Stockholders | $ | 24,782 | $ | (16,086 | ) | ||||
| Adjustments | |||||||||
| Depreciation and amortization | 123,304 | 83,689 | |||||||
| Loss on extinguishment of debt | — | 3,279 | |||||||
| Interest expense | 39,517 | 32,416 | |||||||
| Interest on mandatorily redeemable preferred OP units / equity | 1,036 | 1,041 | |||||||
| Current tax expense / (benefit) | (229 | ) | 450 | ||||||
| Deferred tax benefit | (147 | ) | (130 | ) | |||||
| Income from nonconsolidated affiliates | (1,171 | ) | (52 | ) | |||||
| Less: Gain on dispositions of assets, net | (8,155 | ) | (5,562 | ) | |||||
| EBITDAre(1) | $ | 178,937 | $ | 99,045 | |||||
| Adjustments | |||||||||
| Catastrophic event-related charges, net | 2,414 | 606 | |||||||
| Business combination expense | 1,232 | — | |||||||
| (Gain) / loss on remeasurement of marketable securities | (3,661 | ) | 28,647 | ||||||
| (Gain) / loss on foreign currency translation | (25 | ) | 17,479 | ||||||
| Other expense, net(6) | 1,099 | 972 | |||||||
| (Income) / loss on remeasurement of notes receivable | (376 | ) | 2,112 | ||||||
| (Gain) / loss on remeasurement of investment in nonconsolidated affiliates | (104 | ) | 2,191 | ||||||
| Preferred return to preferred OP units / equity | 2,864 | 1,570 | |||||||
| Income / (loss) attributable to noncontrolling interests | 295 | (962 | ) | ||||||
| Plus: Gain on dispositions of assets, net | 8,155 | 5,562 | |||||||
| Recurring EBITDA(1) | $ | 190,830 | $ | 157,222 | |||||
Non-GAAP and Other Financial Measures
Debt Analysis
(amounts in thousands)
| Quarter Ended | |||||||||||||||||||
| 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | |||||||||||||||
| Debt Outstanding | |||||||||||||||||||
| Mortgage loans payable | $ | 3,430,420 | $ | 3,444,967 | $ | 3,191,380 | $ | 3,205,507 | $ | 3,273,808 | |||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,249 | 35,249 | 35,249 | 35,249 | 35,249 | ||||||||||||||
| Preferred OP units - mandatorily redeemable | 34,663 | 34,663 | 34,663 | 34,663 | 34,663 | ||||||||||||||
| Lines of credit and other debt | 917,603 | 1,242,197 | 79,321 | 115,352 | 582,774 | ||||||||||||||
| Total debt | $ | 4,417,935 | $ | 4,757,076 | $ | 3,340,613 | $ | 3,390,771 | $ | 3,926,494 | |||||||||
| % Fixed / Floating | |||||||||||||||||||
| Fixed | 79.3 | % | 74.0 | % | 97.6 | % | 96.6 | % | 85.2 | % | |||||||||
| Floating | 20.7 | % | 26.0 | % | 2.4 | % | 3.4 | % | 14.8 | % | |||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
| Weighted Average Interest Rates | |||||||||||||||||||
| Mortgage loans payable | 3.78 | % | 3.78 | % | 3.88 | % | 3.88 | % | 3.91 | % | |||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | |||||||||
| Preferred OP units - mandatorily redeemable | 5.93 | % | 5.93 | % | 5.93 | % | 5.93 | % | 5.93 | % | |||||||||
| Lines of credit and other debt(8) | 1.75 | % | 2.08 | % | 1.32 | % | 2.03 | % | 1.85 | % | |||||||||
| Total average | 3.39 | % | 3.37 | % | 3.86 | % | 3.86 | % | 3.64 | % | |||||||||
| Debt Ratios | |||||||||||||||||||
| Net Debt / Recurring EBITDA(1) (TTM) | 6.1 | 6.9 | 5.0 | 4.8 | 5.6 | ||||||||||||||
| Net Debt / Enterprise Value | 19.7 | % | 21.4 | % | 18.3 | % | 17.8 | % | 22.6 | % | |||||||||
| Net Debt / Gross Assets | 31.8 | % | 35.5 | % | 31.6 | % | 29.7 | % | 35.6 | % | |||||||||
| Coverage Ratios | |||||||||||||||||||
| Recurring EBITDA(1) (TTM) / Interest | 5.0 | 4.9 | 4.8 | 4.5 | 4.5 | ||||||||||||||
| Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution | 4.8 | 4.8 | 4.6 | 4.4 | 4.3 | ||||||||||||||
| Maturities / Principal Amortization Next Five Years | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||
| Mortgage loans payable | |||||||||||||||||||
| Maturities | $ | — | $ | 82,155 | $ | 185,618 | $ | 315,330 | $ | 50,528 | |||||||||
| Principal amortization | 44,810 | 61,364 | 60,739 | 57,293 | 53,879 | ||||||||||||||
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | — | — | — | 33,428 | 1,821 | ||||||||||||||
| Preferred OP units - mandatorily redeemable | — | — | — | 27,373 | — | ||||||||||||||
| Lines of credit and other debt | 7,494 | 13,233 | 377,876 | 519,000 | — | ||||||||||||||
| Total | $ | 52,304 | $ | 156,752 | $ | 624,233 | $ | 952,424 | $ | 106,228 | |||||||||
| Weighted average rate of maturities | — | % | 4.46 | % | 4.08 | % | 4.47 | % | 4.04 | % | |||||||||
Same Community(2)
(amounts in thousands except for Other Information)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Same Community | MH | RV | ||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | % Change | March 31, 2021 | March 31, 2020 | Change | % Change | March 31, 2021 | March 31, 2020 | Change | % Change | |||||||||||||||||||||||||||||||||||||||
| Financial Information | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Real property (excluding Transient) | $ | 215,471 | $ | 205,218 | $ | 10,253 | 5.0 | % | $ | 172,741 | $ | 164,828 | $ | 7,913 | 4.8 | % | $ | 42,729 | $ | 40,390 | $ | 2,339 | 5.8 | % | ||||||||||||||||||||||||||
| Real property - transient | 25,907 | 28,870 | (2,963 | ) | (10.3 | ) | % | 601 | 928 | (327 | ) | (35.2 | ) | % | 25,306 | 27,942 | (2,636 | ) | (9.4 | ) | % | |||||||||||||||||||||||||||||
| Other | 7,047 | 5,895 | 1,152 | 19.5 | % | 4,826 | 3,810 | 1,016 | 26.7 | % | 2,222 | 2,085 | 137 | 6.6 | % | |||||||||||||||||||||||||||||||||||
| Total Operating | 248,425 | 239,983 | 8,442 | 3.5 | % | 178,168 | 169,566 | 8,602 | 5.1 | % | 70,257 | 70,417 | (160 | ) | (0.2 | ) | % | |||||||||||||||||||||||||||||||||
| Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Property Operating (9)(10) | 73,015 | 69,189 | 3,826 | 5.5 | % | 43,005 | 40,685 | 2,320 | 5.7 | % | 30,010 | 28,504 | 1,506 | 5.3 | % | |||||||||||||||||||||||||||||||||||
| Real Property NOI(1) | $ | 175,410 | $ | 170,794 | $ | 4,616 | 2.7 | % | $ | 135,163 | $ | 128,881 | $ | 6,282 | 4.9 | % | $ | 40,247 | $ | 41,913 | $ | (1,666 | ) | (4.0 | ) | % | ||||||||||||||||||||||||
| As of | |||||||||||||
| March 31, 2021 | March 31, 2020 | Change | % Change | ||||||||||
| Other Information | |||||||||||||
| Number of properties | 407 | 407 | — | ||||||||||
| MH occupancy | 97.3 | % | |||||||||||
| RV occupancy | 100.0 | % | |||||||||||
| MH & RV blended occupancy(3) | 97.9 | % | |||||||||||
| Adjusted MH occupancy(3) | 98.4 | % | |||||||||||
| Adjusted RV occupancy(3) | 100.0 | % | |||||||||||
| Adjusted MH & RV blended occupancy(3) | 98.8 | % | 96.9 | % | 1.9 | % | |||||||
| Sites available for development | 7,373 | 6,975 | 398 | ||||||||||
| Monthly base rent per site - MH | $ | 599 | $ | 580 | $ | 19 | |||||||
| Monthly base rent per site - RV(11) | $ | 524 | $ | 499 | $ | 25 | |||||||
| Monthly base rent per site - Total(11) | $ | 582 | $ | 562 | $ | 20 | |||||||
Marina Summary
(amounts in thousands except for statistical data)
| Three Months Ended | ||||
| March 31, 2021 | ||||
| Financial Information | ||||
| Revenues | ||||
| Real property (excluding Transient) | $ | 46,106 | ||
| Real property - transient | 868 | |||
| Other | 1,649 | |||
| Total Operating | 48,623 | |||
| Expenses | ||||
| Property Operating | 23,575 | |||
| Real Property NOI | 25,048 | |||
| Service, retail, dining and entertainment | ||||
| Service, retail, dining and entertainment revenue | 44,354 | |||
| Service, retail, dining and entertainment expense | 38,009 | |||
| Service, Retail, Dining and Entertainment NOI | 6,345 | |||
| Marina NOI | $ | 31,393 | ||
| Other Information - Marinas | March 31, 2021 | |||
| Number of properties(a) | 110 | |||
| Total wet slips and dry storage | 38,753 | |||
(a) Marina properties comprised of four properties acquired in 2021 and 106 properties acquired in 2020.
MH and RV Acquisitions and Other Summary(13)
(amounts in thousands except for statistical data)
| Three Months Ended | ||||
| March 31, 2021 | ||||
| Financial Information | ||||
| Revenues | ||||
| Real property (excluding transient) | $ | 7,189 | ||
| Real property - transient | 5,761 | |||
| Other income | 302 | |||
| Total Operating | 13,252 | |||
| Expenses | ||||
| Property Operating | 9,058 | |||
| Real Property NOI | $ | 4,194 | ||
| Other Information - MH and RVs | March 31, 2021 | |||
| Number of properties | 45 | |||
| Occupied sites | 4,864 | |||
| Developed sites | 5,730 | |||
| Occupancy % | 84.9 | % | ||
| Transient sites | 6,598 | |||
Home Sales Summary
(amounts in thousands except for *)
| Three Months Ended | |||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | % Change | ||||||||||||
| Financial Information | |||||||||||||||
| New Homes | |||||||||||||||
| New home sales | $ | 22,972 | $ | 15,596 | $ | 7,376 | 47.3 | % | |||||||
| New home cost of sales | 18,674 | 12,610 | 6,064 | 48.1 | % | ||||||||||
| Gross Profit – new homes | 4,298 | 2,986 | 1,312 | 43.9 | % | ||||||||||
| Gross margin % – new homes | 18.7 | % | 19.1 | % | (0.4 | ) | % | ||||||||
| Average selling price – new homes* | $ | 154,174 | $ | 131,059 | $ | 23,115 | 17.6 | % | |||||||
| Pre-owned Homes | |||||||||||||||
| Pre-owned home sales | $ | 29,227 | $ | 24,991 | $ | 4,236 | 17.0 | % | |||||||
| Pre-owned home cost of sales | 18,584 | 17,422 | 1,162 | 6.7 | % | ||||||||||
| Gross Profit – pre-owned homes | 10,643 | 7,569 | 3,074 | 40.6 | % | ||||||||||
| Gross margin % – pre-owned homes | 36.4 | % | 30.3 | % | 6.1 | % | |||||||||
| Average selling price – pre-owned homes* | $ | 42,605 | $ | 38,806 | $ | 3,799 | 9.8 | % | |||||||
| Total Home Sales | |||||||||||||||
| Revenue from home sales | $ | 52,199 | $ | 40,587 | $ | 11,612 | 28.6 | % | |||||||
| Cost of home sales | 37,258 | 30,032 | 7,226 | 24.1 | % | ||||||||||
| Home selling expenses | 4,332 | 4,007 | 325 | 8.1 | % | ||||||||||
| NOI(1) – home sales | $ | 10,609 | $ | 6,548 | $ | 4,061 | 62.0 | % | |||||||
| Statistical Information | |||||||||||||||
| New home sales volume* | 149 | 119 | 30 | 25.2 | % | ||||||||||
| Pre-owned home sales volume* | 686 | 644 | 42 | 6.5 | % | ||||||||||
| Total home sales volume* | 835 | 763 | 72 | 9.4 | % | ||||||||||
Rental Program Summary
(amounts in thousands except for *)
| Three Months Ended | ||||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | % Change | |||||||||||||
| Financial Information | ||||||||||||||||
| Revenues | ||||||||||||||||
| Home rent | $ | 17,022 | $ | 15,469 | $ | 1,553 | 10.0 | % | ||||||||
| Site rent | 19,117 | 18,007 | 1,110 | 6.2 | % | |||||||||||
| Total | 36,139 | 33,476 | 2,663 | 8.0 | % | |||||||||||
| Expenses | ||||||||||||||||
| Rental Program operating and maintenance | 5,224 | 4,823 | 401 | 8.3 | % | |||||||||||
| Rental Program NOI(1) | $ | 30,915 | $ | 28,653 | $ | 2,262 | 7.9 | % | ||||||||
| Other Information | ||||||||||||||||
| Number of sold rental homes* | 211 | 234 | (23 | ) | (9.8 | ) | % | |||||||||
| Number of occupied rentals, end of period* | 11,473 | 11,431 | 42 | 0.4 | % | |||||||||||
| Investment in occupied rental homes, end of period | $ | 621,869 | $ | 596,319 | $ | 25,550 | 4.3 | % | ||||||||
| Weighted average monthly rental rate, end of period* | $ | 1,055 | $ | 1,009 | $ | 46 | 4.6 | % | ||||||||
The Rental Program NOI is included in Real Property NOI. The Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company's operations.
| MH and RV Property Summary | |||||||||||||||
| 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | |||||||||||
| FLORIDA | |||||||||||||||
| Properties | 128 | 128 | 127 | 125 | 125 | ||||||||||
| MH & Annual RV Developed sites(14) | 40,011 | 39,803 | 39,517 | 39,241 | 39,380 | ||||||||||
| Occupied MH & Annual RV(14) | 39,283 | 39,063 | 38,743 | 38,453 | 38,526 | ||||||||||
| MH & Annual RV Occupancy %(14) | 98.2 | % | 98.1 | % | 98.0 | % | 98.0 | % | 97.8 | % | |||||
| Transient RV sites | 5,823 | 6,011 | 5,993 | 5,547 | 5,311 | ||||||||||
| Sites for development | 1,497 | 1,497 | 1,427 | 1,427 | 1,527 | ||||||||||
| MICHIGAN | |||||||||||||||
| Properties | 74 | 74 | 74 | 72 | 72 | ||||||||||
| MH & Annual RV Developed sites(14) | 29,092 | 29,086 | 29,086 | 27,901 | 27,883 | ||||||||||
| Occupied MH & Annual RV(14) | 28,145 | 28,109 | 28,033 | 27,191 | 26,863 | ||||||||||
| MH & Annual RV Occupancy %(14) | 96.7 | % | 96.6 | % | 96.4 | % | 97.5 | % | 96.3 | % | |||||
| Transient RV sites | 541 | 546 | 546 | 572 | 590 | ||||||||||
| Sites for development | 1,182 | 1,182 | 1,182 | 1,182 | 1,115 | ||||||||||
| CALIFORNIA | |||||||||||||||
| Properties | 36 | 35 | 34 | 32 | 31 | ||||||||||
| MH & Annual RV Developed sites(14) | 6,734 | 6,675 | 6,372 | 6,364 | 5,986 | ||||||||||
| Occupied MH & Annual RV(14) | 6,609 | 6,602 | 6,290 | 6,272 | 5,948 | ||||||||||
| MH & Annual RV Occupancy %(14) | 98.1 | % | 98.9 | % | 98.7 | % | 98.6 | % | 99.4 | % | |||||
| Transient RV sites | 2,418 | 2,231 | 2,236 | 1,978 | 1,947 | ||||||||||
| Sites for development | 127 | 373 | 373 | 264 | 302 | ||||||||||
| TEXAS | |||||||||||||||
| Properties | 24 | 24 | 24 | 23 | 23 | ||||||||||
| MH & Annual RV Developed sites(14) | 7,928 | 7,766 | 7,659 | 7,641 | 7,627 | ||||||||||
| Occupied MH & Annual RV(14) | 7,671 | 7,572 | 7,427 | 7,289 | 7,076 | ||||||||||
| MH & Annual RV Occupancy %(14) | 96.8 | % | 97.5 | % | 97.0 | % | 95.4 | % | 92.8 | % | |||||
| Transient RV sites | 1,773 | 1,810 | 1,917 | 1,590 | 1,612 | ||||||||||
| Sites for development | 1,275 | 1,378 | 1,378 | 565 | 555 | ||||||||||
| ONTARIO, CANADA | |||||||||||||||
| Properties | 16 | 15 | 15 | 15 | 15 | ||||||||||
| MH & Annual RV Developed sites(14) | 4,199 | 4,090 | 4,067 | 3,980 | 3,977 | ||||||||||
| Occupied MH & Annual RV(14) | 4,199 | 4,090 | 4,067 | 3,980 | 3,977 | ||||||||||
| MH & Annual RV Occupancy %(14) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
| Transient RV sites | 964 | 966 | 920 | 1,007 | 1,009 | ||||||||||
| Sites for development | 1,525 | 1,525 | 1,593 | 1,593 | 1,608 | ||||||||||
| CONNECTICUT | |||||||||||||||
| Properties | 16 | 16 | 16 | 16 | 16 | ||||||||||
| MH & Annual RV Developed sites(14) | 1,897 | 1,897 | 1,898 | 1,898 | 1,892 | ||||||||||
| Occupied MH & Annual RV(14) | 1,746 | 1,739 | 1,736 | 1,735 | 1,721 | ||||||||||
| MH & Annual RV Occupancy %(14) | 92.0 | % | 91.7 | % | 91.5 | % | 91.4 | % | 91.0 | % | |||||
| Transient RV sites | 108 | 108 | 107 | 107 | 113 | ||||||||||
| Sites for development | — | — | — | — | — | ||||||||||
| ARIZONA | |||||||||||||||
| Properties | 14 | 14 | 13 | 13 | 13 | ||||||||||
| MH & Annual RV Developed sites(14) | 4,391 | 4,323 | 4,274 | 4,259 | 4,268 | ||||||||||
| Occupied MH & Annual RV(14) | 4,101 | 4,030 | 3,957 | 3,932 | 3,923 | ||||||||||
| MH & Annual RV Occupancy %(14) | 93.4 | % | 93.2 | % | 92.6 | % | 92.3 | % | 91.9 | % | |||||
| Transient RV sites | 1,270 | 1,337 | 1,386 | 1,401 | 1,392 | ||||||||||
| Sites for development | — | — | — | — | — | ||||||||||
| MAINE | |||||||||||||||
| Properties | 13 | 13 | 7 | 7 | 7 | ||||||||||
| MH & Annual RV Developed sites(14) | 2,190 | 2,190 | 1,092 | 1,074 | 1,083 | ||||||||||
| Occupied MH & Annual RV(14) | 2,119 | 2,121 | 1,089 | 1,069 | 1,079 | ||||||||||
| MH & Annual RV Occupancy %(14) | 96.8 | % | 96.8 | % | 99.7 | % | 99.5 | % | 99.6 | % | |||||
| Transient RV sites | 805 | 805 | 819 | 837 | 828 | ||||||||||
| Sites for development | 30 | 30 | 30 | 30 | 30 | ||||||||||
| INDIANA | |||||||||||||||
| Properties | 12 | 12 | 11 | 11 | 11 | ||||||||||
| MH & Annual RV Developed sites(14) | 3,087 | 3,087 | 3,087 | 3,087 | 3,087 | ||||||||||
| Occupied MH & Annual RV(14) | 2,961 | 2,950 | 2,957 | 2,961 | 2,914 | ||||||||||
| MH & Annual RV Occupancy %(14) | 95.9 | % | 95.6 | % | 95.8 | % | 95.9 | % | 94.4 | % | |||||
| Transient RV sites | 1,089 | 1,089 | 534 | 534 | 534 | ||||||||||
| Sites for development | 277 | 277 | 277 | 277 | 277 | ||||||||||
| COLORADO | |||||||||||||||
| Properties | 10 | 10 | 10 | 10 | 10 | ||||||||||
| MH & Annual RV Developed sites(14) | 2,453 | 2,453 | 2,453 | 2,441 | 2,423 | ||||||||||
| Occupied MH & Annual RV(14) | 2,395 | 2,380 | 2,365 | 2,327 | 2,318 | ||||||||||
| MH & Annual RV Occupancy %(14) | 97.6 | % | 97.0 | % | 96.4 | % | 95.3 | % | 95.7 | % | |||||
| Transient RV sites | 962 | 962 | 930 | 574 | 291 | ||||||||||
| Sites for development | 1,250 | 1,250 | 1,282 | 1,566 | 1,867 | ||||||||||
| NEW HAMPSHIRE | |||||||||||||||
| Properties | 10 | 10 | 10 | 10 | 10 | ||||||||||
| MH & Annual RV Developed sites(14) | 1,776 | 1,777 | 1,833 | 1,827 | 1,816 | ||||||||||
| Occupied MH & Annual RV(14) | 1,769 | 1,767 | 1,822 | 1,816 | 1,806 | ||||||||||
| MH & Annual RV Occupancy %(14) | 99.6 | % | 99.4 | % | 99.4 | % | 99.4 | % | 99.4 | % | |||||
| Transient RV sites | 456 | 460 | 404 | 410 | 421 | ||||||||||
| Sites for development | 151 | 151 | 151 | 151 | 151 | ||||||||||
| NEW YORK | |||||||||||||||
| Properties | 10 | 9 | 9 | 9 | 9 | ||||||||||
| MH & Annual RV Developed sites(14) | 1,452 | 1,419 | 1,414 | 1,403 | 1,400 | ||||||||||
| Occupied MH & Annual RV(14) | 1,415 | 1,380 | 1,371 | 1,358 | 1,355 | ||||||||||
| MH & Annual RV Occupancy %(14) | 97.5 | % | 97.3 | % | 97.0 | % | 96.8 | % | 96.8 | % | |||||
| Transient RV sites | 1,689 | 1,422 | 900 | 911 | 916 | ||||||||||
| Sites for development | 371 | 371 | 371 | 371 | 371 | ||||||||||
| OHIO | |||||||||||||||
| Properties | 9 | 9 | 9 | 9 | 9 | ||||||||||
| MH & Annual RV Developed sites(14) | 2,797 | 2,790 | 2,790 | 2,778 | 2,768 | ||||||||||
| Occupied MH & Annual RV(14) | 2,760 | 2,755 | 2,758 | 2,736 | 2,702 | ||||||||||
| MH & Annual RV Occupancy %(14) | 98.7 | % | 98.7 | % | 98.9 | % | 98.5 | % | 97.6 | % | |||||
| Transient RV sites | 128 | 135 | 135 | 147 | 152 | ||||||||||
| Sites for development | 22 | 22 | 22 | 22 | 59 | ||||||||||
| OTHER STATES | |||||||||||||||
| Properties | 80 | 77 | 73 | 74 | 73 | ||||||||||
| MH & Annual RV Developed sites(14) | 17,310 | 16,896 | 16,484 | 16,578 | 16,392 | ||||||||||
| Occupied MH & Annual RV(14) | 16,796 | 16,394 | 15,977 | 16,046 | 15,788 | ||||||||||
| MH & Annual RV Occupancy %(14) | 97.0 | % | 97.0 | % | 96.9 | % | 96.8 | % | 96.3 | % | |||||
| Transient RV sites | 8,269 | 7,161 | 6,901 | 6,745 | 6,764 | ||||||||||
| Sites for development | 1,969 | 1,969 | 2,044 | 2,294 | 2,428 | ||||||||||
| TOTAL - MH AND ANNUAL RV PORTFOLIO | |||||||||||||||
| Properties | 452 | 446 | 432 | 426 | 424 | ||||||||||
| MH & Annual RV Developed sites(14) | 125,317 | 124,252 | 122,026 | 120,472 | 119,982 | ||||||||||
| Occupied MH & Annual RV(14) | 121,969 | 120,952 | 118,592 | 117,165 | 115,996 | ||||||||||
| MH & Annual RV Occupancy %(14) | 97.3 | % | (15) | 97.3 | % | 97.2 | % | 97.3 | % | 96.7 | % | ||||
| Transient RV sites | 26,295 | 25,043 | 23,728 | 22,360 | 21,880 | ||||||||||
| Sites for development(16) | 9,676 | 10,025 | 10,130 | 9,742 | 10,290 | ||||||||||
| % Communities age restricted | 32.7 | % | 33.2 | % | 33.6 | % | 34.0 | % | 34.0 | % | |||||
| Marina Property Summary(a) | ||||||
| 3/31/2021 | 12/31/2020 | |||||
| FLORIDA | ||||||
| Properties | 16 | 14 | ||||
| Total wet slips and dry storage spaces | 3,796 | 3,564 | ||||
| CONNECTICUT | ||||||
| Properties | 11 | 11 | ||||
| Total wet slips and dry storage spaces | 3,257 | 3,254 | ||||
| RHODE ISLAND | ||||||
| Properties | 11 | 11 | ||||
| Total wet slips and dry storage spaces | 2,676 | 2,656 | ||||
| MASSACHUSETTS | ||||||
| Properties | 9 | 7 | ||||
| Total wet slips and dry storage spaces | 2,613 | 2,193 | ||||
| NEW YORK | ||||||
| Properties | 8 | 8 | ||||
| Total wet slips and dry storage spaces | 2,524 | 2,524 | ||||
| MARYLAND | ||||||
| Properties | 8 | 8 | ||||
| Total wet slips and dry storage spaces | 2,104 | 2,106 | ||||
| OTHER STATES | ||||||
| Properties | 47 | 47 | ||||
| Total wet slips and dry storage spaces | 21,783 | 21,855 | ||||
| TOTAL - MARINA PORTFOLIO | ||||||
| Properties | 110 | 106 | ||||
| Total wet slips and dry storage spaces | 38,753 | 38,152 | ||||
(a) Total wet slips and dry storage spaces are adjusted each quarter based on sites configuration and usability.
Capital Improvements, Development and Acquisitions
(amounts in thousands except for *)
| Recurring Capital Expenditures Average / MH & RV Site* | Recurring Capital Expenditures Average / Marina Site* | Recurring Capital Expenditures - MH / RV(17) | Recurring Capital Expenditures - Marina(17) | Lot Modifications(18) | Acquisitions(19) | Expansion and Development(20) | Growth Projects(21) | |||||||||||||||||
| YTD 2021 | $ | 86 | $ | 79 | $ | 10,544 | $ | 3,144 | $ | 7,260 | $ | 173,307 | $ | 46,859 | $ | 18,051 | ||||||||
| 2020 | $ | 265 | N/A | $ | 31,398 | $ | 2,074 | $ | 29,789 | $ | 3,105,296 | $ | 248,146 | $ | 28,315 | |||||||||
| 2019 | $ | 345 | N/A | $ | 30,382 | N/A | $ | 31,135 | $ | 930,668 | $ | 281,808 | $ | 9,638 | ||||||||||
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 | 505 | 212 | 59 | 48 | 448 | |||||||||||
| Michigan | 140 | 36 | 11 | 351 | 48 | |||||||||||
| Ontario, Canada | 325 | 18 | 11 | — | 64 | |||||||||||
| Texas | 82 | 99 | 14 | 86 | 18 | |||||||||||
| Arizona | 20 | 71 | 11 | 8 | 60 | |||||||||||
| Indiana | 17 | 11 | 2 | 68 | 5 | |||||||||||
| Ohio | 38 | 5 | — | 19 | 3 | |||||||||||
| California | 32 | 7 | 6 | 3 | 34 | |||||||||||
| Colorado | — | 15 | 12 | 6 | 9 | |||||||||||
| Connecticut | 11 | 7 | 9 | — | 9 | |||||||||||
| New York | 54 | 8 | — | 1 | 4 | |||||||||||
| New Hampshire | — | 2 | 3 | — | 10 | |||||||||||
| Maine | 54 | (2 | ) | 1 | 4 | — | ||||||||||
| Other states | 510 | 25 | 10 | 92 | 46 | |||||||||||
| Three Months Ended March 31, 2021 | 1,788 | 514 | 149 | 686 | 758 | |||||||||||
| Total For Year Ended | Resident Move-outs | Net Leased Sites(5) | New Home Sales | Pre-owned Home Sales | Brokered Re-sales | ||||||||||
| 2020 | 5,365 | 2,505 | 570 | 2,296 | 2,557 | ||||||||||
| 2019 | 4,139 | 2,674 | 571 | 2,868 | 2,231 | ||||||||||
| Percentage Trends | Resident Move-outs | Resident Re-sales | ||||
| 2021 TTM | 3.2 | % | 7.2 | % | ||
| 2020 | 3.3 | % | 6.9 | % | ||
| 2019 | 2.6 | % | 6.6 | % | ||
Footnotes and Definitions
(1) 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 2021 average exchange rates.
(3) The MH and RV blended occupancy is derived from 119,587 developed sites, of which 117,105 were occupied. The adjusted MH and RV blended occupancy percentage for 2020 has been adjusted to reflect incremental period-over-period growth from newly rented expansion sites and the conversion of transient RV sites to annual RV sites. The adjusted MH and RV blended occupancy percentage for 2021 is derived from 118,526 developed sites, of which 117,105 were occupied. The number of developed sites excludes RV transient sites and over 1,050 recently completed but vacant MH expansion sites.
(4) The effect of certain anti-dilutive convertible securities is excluded from these items.
(5) Revenue producing site gains do not include occupied sites acquired during that year.
(6) Other expense, net was as follows (in thousands):
| Three Months Ended | |||||||||
| March 31, 2021 | March 31, 2020 | ||||||||
| Foreign currency remeasurement loss | $ | (20 | ) | $ | (220 | ) | |||
| Contingent consideration expense | (71 | ) | (82 | ) | |||||
| GTSC repair reserve | (383 | ) | (670 | ) | |||||
| Non-cash lease amortization expense | (625 | ) | — | ||||||
| Other expense, net | $ | (1,099 | ) | $ | (972 | ) | |||
(7) Other acquisition related 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. These costs also include nonrecurring integration expenses associated with a new acquisition.
(8) 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 7.0 percent for the quarter ended March 31, 2021, 6.0 percent for the quarters ended December 31, September 30 and June 30, 2020, and 7.0 percent for the quarter ended March 31, 2020. However, the Company pays no interest if the floor plan balance is repaid within 60 days.
(9) Same Community results net
(10) Same Community supplies and repair expense excludes
(11) Monthly base rent per site pertains to annual RV sites and excludes transient RV sites.
(12) Calculated using actual results without rounding.
(13) MH and RV acquisitions and other is comprised of six properties acquired and three properties that the Company has an interest in, but does not operate in 2021, 23 properties acquired in 2020, two Florida Keys properties that require redevelopment as a result of damage sustained from Hurricane Irma in 2017, six recently opened ground-up developments, one property undergoing redevelopment, four properties previously classified as held for sale and other miscellaneous transactions and activity.
(14) Includes MH and annual RV sites, and excludes transient RV sites, as applicable.
(15) As of March 31, 2021, total portfolio MH occupancy was 96.5 percent inclusive of the impact of over 1,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.
(16) Total sites for development were comprised of approximately 77.3 percent for expansion, 20.4 percent for greenfield development and 2.3 percent for redevelopment.
(17) Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities, resorts and marinas. Recurring capital expenditures at our MH and RV properties 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. Recurring capital expenditures at our marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades.The minimum capitalized amount is five hundred dollars.
(18) 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.
(19) 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 quarter ended March 31, 2021 include
(20) Expansion and development expenditures consist primarily of construction costs and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at our MH communities and RV resorts.
(21) Growth projects consist of revenue generating or expense reducing activities at MH communities, RV resorts and marinas. This includes, but is not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.
Certain financial information has been revised to reflect reclassifications in prior periods to conform to current period presentation.
Attachment
FAQ
What were Sun Communities' total revenues for Q1 2021?
How did net income change for Sun Communities in Q1 2021?
What is the Core FFO per diluted share for Sun Communities in Q1 2021?
What was the occupancy rate for Sun Communities in Q1 2021?
What is the significance of the acquisitions made by Sun Communities?
