2013-02-21 14:34:41 -
NEWS RELEASE
February 21, 2013
Sun Communities, Inc. Reports 2012 Fourth Quarter and Year End Results
Southfield, MI, February 21, 2013 - Sun Communities, Inc. (NYSE: SUI) (the
"Company"), a real estate investment trust ("REIT") that owns and
operates
manufactured housing and recreational vehicle communities, today reported its
fourth quarter and year end results.
Highlights for the year ended December 31, 2012:
* Acquired 14 communities for approximately $305.1 million.
* Raised $382.8 million in common stock and preferred equity offerings.
* Same site Net Operating Income ("NOI")((2)) increased by 5.5 percent.
* Home sales increased by 21.1 percent as compared to 2011.
* FFO((1) )excluding certain items as described in this release was $3.19 per
diluted share and OP Unit ("Share") compared to $3.13 per Share in 2011.
* Total portfolio occupancy increased to 87.3 percent at December 31, 2012
from 85.3 percent at December 31, 2011.
"We have substantially strengthened our balance sheet to establish a sound
foundation to exploit growth opportunities through acquisitions and expansions",
said Gary A. Shiffman, Chairman and CEO. "The achievements noted above clearly
demonstrate management 's capabilities to fill and manage communities
profitably. It is our intention to leverage those attributes through additional
growth. I am confident that our management team is well situated to integrate
and maximize performance of manufactured housing and/or recreational vehicle
communities", added Shiffman.
Funds from Operations ("FFO")((1))
FFO((1)) was $23.3 million, or $0.71 per Share, in the fourth quarter of 2012 as
compared to $19.7 million, or $0.79 per Share, in the fourth quarter of 2011.
Excluding approximately $2.9 million and $0.5 million in transaction costs
incurred in connection with acquisition activity during the three months ended
December 31, 2012 and 2011, respectively, FFO((1)) was $26.2 million and $20.1
million, or $0.80 and $0.81 per Share for the three months ended December
31, 2012 and 2011, respectively.
FFO((1)) was $92.4 million, or $3.05 per Share, for the year ended December
31, 2012 as compared to $73.7 million, or $3.06 per Share, for the year ended
December 31, 2011. Excluding approximately $4.3 million and $1.6 million of
costs which are primarily transaction costs incurred in connection with
acquisition activity during the years ended December 31, 2012 and 2011,
respectively, FFO((1)) was $96.7 million and $75.3 million, or $3.19 and $3.13
per Share for the years ended December 31, 2012 and 2011, respectively.
Net Income (Loss) Attributable to Common Stockholders
Net loss attributable to common stockholders for the fourth quarter of 2012 was
$(1.4) million, or $(0.05) per diluted common share, compared with net loss of
$(2.2) million, or $(0.10) per diluted common share, for the fourth quarter of
2011. Net income attributable to common stockholders for the year ended
December 31, 2012 was $5.0 million, or $0.18 per diluted common share, compared
with net loss of $(1.1) million, or $(0.05) per diluted common share, for the
year ended December 31, 2011.
Community Occupancy
During the fourth quarter of 2012, revenue producing sites increased by 94 sites
as compared to 173 revenue producing sites gained in the fourth quarter of
2011. For the the year ended December 31, 2012, revenue producing sites
increased by 1,069 sites, comprised of 439 sites from properties acquired in
2011 and 2012 and 630 sites from same site communities. This compares to an
increase of 892 sites during the year ended December 31, 2011, comprised of 160
sites from properties acquired in 2011 and 732 sites from same site communities.
Total portfolio occupancy was 87.3 percent at December 31, 2012 as compared to
85.3 percent at December 31, 2011.
Same Site Results
For 136 communities owned throughout 2012 and 2011, fourth quarter 2012 total
revenues increased 4.2 percent and total expenses increased 3.3 percent,
resulting in an increase in NOI((2)) of 4.6 percent over the fourth quarter of
2011. For the year ended December 31, 2012, total revenues increased 4.5
percent and total expenses increased 2.2 percent, resulting in an increase in
NOI((2)) of 5.5 percent over the year ended December 31, 2011.
Same site occupancy increased to 86.7 percent at December 31, 2012 from 85.8
percent at December 31, 2011.
Home Sales
During the fourth quarter of 2012, 489 homes were sold, an increase of 136
sales, or 38.5 percent, from the 353 homes sold during the fourth quarter of
2011. Rental home sales included in total home sales above totaled 275 and 193
for the fourth quarters of 2012 and 2011, respectively.
During the year ended December 31, 2012, 1,742 homes were sold, an increase of
303 sales, or 21.1 percent, from the 1,439 homes sold during the year ended
December 31, 2011. Rental home sales included in total home sales above totaled
953 and 789 for the year ended December 31, 2012 and 2011, respectively.
Acquisitions
On October 22, 2012 the Company acquired Rainbow Recreational Vehicle Resort
with approximately 500 sites located in Frostproof, Florida for a purchase price
of $7.7 million.
On November 15, 2012, the Company acquired four manufactured home communities
with approximately 1,996 sites located in southeast Michigan for a purchase
price of $71.1 million. The Company also provided $15.0 million of mezzanine
financing for two additional manufactured housing communities which is
subordinated to $45.9 million of third-party senior debt . The Company entered
into management agreements under which it manages and operates these two
communities which are comprised of 1,598 manufactured housing sites. As the
Company is the primary beneficiary and holds a controlling financial interest in
these two communities, the Company accounts for these as variable interest
entities and their operating results are included in the consolidated financial
statements.
On December 15, 2012, the Company acquired Lake-In-Wood Camping Resort, a
recreational vehicle community with approximately 425 sites located in Lancaster
County, Pennsylvania for $14.2 million.
On December 28, 2012, the Company acquired a 5-star institutional quality, age
restricted resort, Palm Creek Golf & RV Resort, for an aggregate purchase price
of $88.1 million. The community has 283 manufactured home sites, 1,580
recreational vehicle sites and expansion potential of approximately 550
manufactured housing or 990 recreational vehicle sites. Palm Creek Golf & RV
Resort is located in Casa Grande, Arizona.
As previously announced, subsequent to year end the Company acquired ten
recreational vehicle communities, with approximately 3,700 sites located in
Ohio, Virginia, Maine, Massachusetts, Connecticut, New Jersey and Wisconsin, for
a purchase price of $111.5 million.
The table below summarizes the growth in the number of communities and sites
since December 31, 2010.
+--------------------------+
| Increase in Increase in |
Total Total | Properties Developed |
Number of Developed MH Developed RV| Year Over Sites Year |
Communities sites sites | Year Over Year |
-------------------------------------------+--------------------------+
2010 136 42,442 5,241 | |
| |
2011 159 47,935 6,876 |23 7,128 |
| |
2012 173 52,833 10,864 |14 8,886 |
| |
YTD 2013 183 52,833 14,548 |10 3,684 |
----------------------------------------------------+--------------------------+
TOTAL CHANGE FROM 2010 |47 19,698 |
| |
Growth Percentage since 12/2010 |35 % 41 % |
+--------------------------+
"The acquisition environment remains very robust. The timing is perfect for us
as our performance metrics are all excellent and continuing to get better. Our
management team and supporting systems are broad, deep and talented. We look
forward to further growth through acquisitions", said Gary A. Shiffman, Chairman
and CEO.
Equity Transactions
In November 2012, the Company closed an underwritten registered public offering
of 3,400,000 shares of 7.125% Series A (NYSE: SUIPr-A) preferred stock at a
price of $25.00 per share. The net proceeds from the offering were $82.2 million
after deducting the underwriting discounts and expenses related to the offering.
$55.3 million of the net proceeds of the offering was used to fund the
acquisition on November 15, 2012.
2013 Guidance
Based on its current outlook, the Company anticipates that FFO((1)) per Share
for the full year 2013 will be between $3.45 to $3.55, which would produce
FFO((1)) growth of 8.2% to 11.3% when compared to 2012 results. FFO((1))
guidance for the first quarter of 2013 is $0.96-$0.98 per Share.The Company's
guidance is based on several key variables and assumptions, which are summarized
below.
Following are the assumptions reflected in the Company's 2013 guidance:
* Rent Increase: The weighted average site rental increase for the total
portfolio is expected to be 3.0 percent.
* Occupancy: Revenue producing sites in our total portfolio are expected to
increase by approximately 1,500 sites. An increase in revenue producing
sites is budgeted in all major markets. Total portfolio occupancy is
projected to be approximately 88.3 percent at year end, an increase in
occupancy of 100 basis points from 2012.
* Same Site Portfolio: The Company's same property portfolio of 159
communities is expected to generate revenue growth of approximately 4.7 -4.9
percent and property and operating expense growth of 2.5-2.6 percent
resulting in NOI ((2) )growth of approximately 5.6-5.9 percent. Revenue
producing sites are expected to increase by approximately 1,200 sites in our
same site portfolio.
* Home Sales/Rental Home program: The Company expects to sell approximately
2,000 homes, including 1,000 rental homes, an increase of 15.0 percent over
2012. Guidance assumes an increase of approximately1,000 occupied rental
units; approximately one third of these are expected to be added in
communities acquired by the Company in 2012.
* Recurring capital expenditures: The Company expects recurring capital
expenditures to approximate $9.3-$9.6 million for 2013, or about $0.29 per
Share. Using the midpoint of earnings guidance and after consideration of
recurring capital expenditures, the payout ratio will approximate 79.0
percent when compared to an annual dividend rate of $2.52 per Share.
* General and administrative expenses-real property: These expenses are
estimated at $23.5-$24.0 million . General and administrative expenses-real
property are inclusive of our property management costs for regional and
senior level operations personnel.
* Debt: Mortgage debt maturities in 2013 are $9.9 million excluding the $36.0
million seller note associated with the Palm Creek Golf & RV resort
acquisition, as it was repaid on January 2, 2013. The Company's Debt to
EBITDA((3)) multiple is projected to be 7.6-7.8 by year end.
* Expansions: The Company continues to look at expansion opportunities in
communities that are near 95 percent occupied and which continue to exhibit
strong demand. Guidance includes the expansion of six Texas communities and
three additional expansions in various states, which will add approximately
1,130 developed sites by year end. The expansions are expected to open in
late third and fourth quarter of 2013 and have an estimated fill rate of
6-8 sites per month.
* Acquisitions: Guidance includes income from communities acquired through
February 2013 but no prospective acquisitions.
The estimates and assumptions presented above 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 "Forward-Looking Statements."
Earnings Conference Call
A conference call to discuss fourth quarter operating results will be held on
Thursday, February 21, 2013 at 11:00 A.M. (EST). To participate, call toll-free
877-941-0844. Callers outside the U.S. or Canada can access the call at
480-629-9835. A replay will be available following the call through March
7, 2013, and can be accessed toll-free by calling 800-406-7325 or by calling
303-590-3030. The Conference ID number for the call and the replay is 4591331.
The conference call will be available live on Sun Communities website
www.suncommunities.com. Replay will also be available on the website.
Sun Communities, Inc. is a REIT that currently owns and operates a portfolio of
183 communities comprising approximately 67,380 developed sites.
For more information about Sun Communities, Inc., please visit our website at
www.suncommunities.com.
Contact
Please address all inquiries to our investor relations department, at our
website www.suncommunities.com, by phone (248) 208-2500, by facsimile (248)
208-2645 or by mail Sun Communities, Inc. Investor Relations, 27777 Franklin
Road, Southfield, MI 48034.
1. Funds from operations ("FFO") is defined by the National Association of Real
Estate Investment Trusts ("NAREIT") as net income (loss) (computed in
accordance with generally accepted accounting principles "GAAP"), excluding
gains (or losses) from sales of depreciable operating property, plus real
estate-related depreciation and amortization, and after adjustments for
unconsolidated 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. Management generally considers FFO to be a
useful measure for reviewing comparative operating and financial performance
because, 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 year over year, reflects the impact to operations from trends in
occupancy rates, rental rates and operating costs, providing perspective not
readily apparent from net loss. Management believes that 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. FFO is computed in accordance with the Company's
interpretation of standards established by NAREIT, which may not be
comparable to FFO reported by other REITs that do not define the term in
accordance with the current NAREIT definition or that interpret the current
NAREIT definition differently than the Company.
Because FFO excludes significant economic components of net income (loss)
including depreciation and amortization, FFO should be used as an adjunct to net
income (loss) and not as an alternative to net income (loss). The principal
limitation of FFO is that it does not represent cash flow from operations as
defined by GAAP and is a supplemental measure of performance that does not
replace net income (loss) as a measure of performance or net cash provided by
operating activities as a measure of liquidity. In addition, 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 only provides
investors with an additional performance measure.
2. Investors in and analysts following the real estate industry utilize NOI as
a supplemental performance measure. NOI is derived from revenues minus
property operating expenses and real estate taxes. NOI does not represent
cash generated from operating activities in accordance with GAAP and should
not be considered to be an alternative to net income (loss) (determined in
accordance with GAAP) as an indication of the Company's financial
performance or to be an alternative to cash flow from operating activities
(determined in accordance with GAAP) 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. The Company
believes that net income (loss) is the most directly comparable GAAP
measurement to NOI. Net income (loss) includes interest and depreciation and
amortization which often have no effect on the market value of a property
and therefore limit its use as a performance measure. In addition, such
expenses are often incurred at a parent company level and therefore are not
necessarily linked to the performance of a real estate asset. The Company
believes that NOI is helpful to investors as a 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 management tool 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, and therefore,
NOI is a measure of the operating performance of the properties of the
Company rather than of the Company overall.
3. EBITDA is defined as NOI plus other income, plus (minus) equity earnings
(loss) from affiliates, minus general and administrative expenses. EBITDA
includes EBITDA from discontinued operations.
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. Forward-looking
statements can be identified by words such as "will," "may,"
"could," "expect,"
"anticipate," "believes," "intends,"
"should," "plans," "estimates,"
"approximate", "guidance" and similar expressions in this press
release that
predict or indicate future events and trends and that do not report historical
matters.
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, some of which are beyond our
control. These risks, uncertainties, and other factors may cause the actual
results of the Company to be materially different from any future results
expressed or implied by such forward-looking statements. Such risks and
uncertainties include national, regional and local economic climates, the
ability to maintain rental rates and occupancy levels, competitive market
forces, changes in market rates of interest, the ability of manufactured home
buyers to obtain financing, the level of repossessions by manufactured home
lenders and those risks and uncertainties referenced under the headings entitled
"Risk Factors" contained in our 2011 Annual Report, and the Company's
other
periodic filings with the Securities and Exchange Commission.
The forward-looking statements contained in this press release speak only as of
the date hereof and the Company expressly disclaims any obligation to provide
public updates, revisions or amendments to any forward- looking statements made
herein to reflect changes in the Company's assumptions, expectations of future
events, or trends.
Consolidated Balance Sheets
(in thousands, except per share amounts)
December 31, 2012 December 31, 2011
--------------------- ---------------------
ASSETS
Investment property, net (including
$56,326 and $0 for consolidated
variable interest entities,
respectively) $ 1,518,136 $ 1,196,606
Cash and cash equivalents 29,508 5,857
Inventory of manufactured homes 7,527 5,832
Notes and other receivables 139,067 114,884
Other assets 59,879 44,795
--------------------- ---------------------
TOTAL ASSETS $ 1,754,117 $ 1,367,974
--------------------- ---------------------
LIABILITIES
Debt (including $45,900 and $0 for
consolidated variable interest
entities, respectively) $ 1,423,720 $ 1,268,191
Lines of credit 29,781 129,034
Other liabilities 87,626 71,404
--------------------- ---------------------
TOTAL LIABILITIES $ 1,541,127 $ 1,468,629
--------------------- ---------------------
Commitments and contingencies
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.01 par value,
10,000 shares authorized (December
31, 2012 and 2011, 3,400 and 0
shares issued, respectively) $ 34 $ -
Common stock, $0.01 par value,
90,000 shares authorized (December
31, 2012 and 2011, 31,557 and
23,612 shares issued, respectively) 316 236
Additional paid-in capital 940,202 555,981
Accumulated other comprehensive
loss (696) (1,273)
Distributions in excess of
accumulated earnings (683,734) (617,953)
Treasury stock, at cost (December
31, 2012 and 2011, 1,802 shares) (63,600) (63,600)
--------------------- ---------------------
Total Sun Communities, Inc.
stockholders' equity (deficit) 192,522 (126,609)
Noncontrolling interests:
Series A-1 preferred OP units 45,548 45,548
Common OP units (24,572) (19,594)
Consolidated variable interest
entities (508) -
--------------------- ---------------------
Total Noncontrolling Interest 20,468 25,954
--------------------- ---------------------
TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) 212,990 (100,655)
--------------------- ---------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 1,754,117 $ 1,367,974
--------------------- ---------------------
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ---------------------------
2012 2011 2012 2011
----------- ---------------- ----------- ---------------
REVENUES
Income from real
property $ 66,943 $ 59,262 $ 255,761 $ 223,613
Revenue from home
sales 13,634 7,756 45,147 32,252
Rental home revenue 7,075 5,883 26,589 22,290
Ancillary revenues,
net 135 158 484 592
Interest 3,111 2,720 11,018 9,509
Other income, net 87 707 617 929
----------- ---------------- ----------- ---------------
Total revenues 90,985 76,486 339,616 289,185
----------- ---------------- ----------- ---------------
COSTS AND EXPENSES
Property operating and
maintenance 17,578 15,384 68,839 59,190
Real estate taxes 4,466 4,830 19,207 17,547
Cost of home sales 10,383 6,143 34,918 25,392
Rental home operating
and maintenance 5,051 4,516 18,141 16,196
General and
administrative - real
property 4,632 5,255 20,037 19,704
General and
administrative - home
sales and rentals 2,522 2,122 8,980 8,156
Acquisition related
costs 2,862 450 4,296 1,971
Depreciation and
amortization 26,647 20,645 89,674 74,193
Asset impairment
charge - 1,382 - 1,382
Interest 17,215 17,349 67,859 64,606
Interest on
mandatorily redeemable
debt 822 844 3,321 3,333
----------- ---------------- ----------- ---------------
Total expenses 92,178 78,920 335,272 291,670
----------- ---------------- ----------- ---------------
Income (loss) before
income taxes and
distributions from
affiliate (1,193) (2,434) 4,344 (2,485)
Provision for state
income taxes (59) (128) (249) (150)
Distributions from
affiliate 650 450 3,900 2,100
----------- ---------------- ----------- ---------------
Net income (loss) (602) (2,112) 7,995 (535)
Less: Preferred
return to Series A-1
preferred OP units 585 586 2,329 1,222
Less: Amounts
attributable to
noncontrolling
interests (781) (475) (318) (671)
Less: Series A
Preferred Stock
Distributions $ 1,026 $ - $ 1,026 $ -
----------- ---------------- ----------- ---------------
Net income (loss)
attributable to Sun
Communities, Inc.
common stockholders $ (1,432) $ (2,223) $ 4,958 $ (1,086)
----------- ---------------- ----------- ---------------
Weighted average
common shares
outstanding:
Basic 29,444 21,474 27,255 21,147
Diluted 29,444 21,474 27,272 21,147
Earnings (loss) per
share:
Basic $ (0.05) $ (0.10) $ 0.18 $ (0.05)
Diluted $ (0.05) $ (0.10) $ 0.18 $ (0.05)
Dividends per common
share: $ 0.63 $ 0.63 $ 2.52 $ 3.15
Reconciliation of Net Income (Loss) to FFO((1))
(in thousands, except per share amounts)
Three Months
Ended December Twelve Months Ended
31, December 31,
-------------------------------- --------------------------
2012 2011 2012 2011
----------- -------------------- ----------- --------------
Net income (loss)
attributable to Sun
Communities, Inc.
common stockholders $ (1,432) $ (2,223) $ 4,958 $ (1,086)
Adjustments:
Preferred return to
Series A-1
preferred OP units 585 586 2,329 1,222
Amounts
attributable to
noncontrolling
interests (781) (475) (318) (671)
Depreciation and
amortization 26,779 20,903 90,577 75,479
Asset impairment
charge - 1,382 - 1,382
Gain on disposition
of assets, net (1,813) (488) (5,137) (2,635)
----------- -------------------- ----------- --------------
Funds from
operations ("FFO")
((1)) 23,338 19,685 92,409 73,691
----------- -------------------- ----------- --------------
Adjustments:
Acquisition related
costs 2,862 450 4,296 1,971
Benefit for
state income taxes
((4)) - - - (407)
----------- -------------------- ----------- --------------
Funds from
operations
excluding certain
items $ 26,200 $ 20,135 $ 96,705 $ 75,255
----------- -------------------- ----------- --------------
Weighted average
common shares
outstanding: 29,444 21,474 26,970 21,147
Add:
OP Units 2,070 2,072 2,071 2,075
Restricted stock 294 276 285 235
Common stock
issuable upon
conversion of
Series A-1
preferred OP units 1,111 1,111 1,111 580
Common stock
issuable upon
conversion of stock
options 15 14 17 16
----------- -------------------- ----------- --------------
Weighted average
common shares
outstanding - fully
diluted 32,934 24,947 30,454 24,053
----------- -------------------- ----------- --------------
Funds from
operations per
Share - fully
diluted $ 0.71 $ 0.79 $ 3.05 $ 3.06
Funds from
operations per
Share excluding
certain items-
fully diluted $ 0.80 $ 0.81 $ 3.19 $ 3.13
4. The state income tax benefit for the period ended December 31, 2011
represents the reversal of the Michigan Business Tax expense excluded from
FFO((1)) in a prior period.
Statement of Operations - Same Site
(in thousands except for Other Information)
Three Months Ended December 31, Twelve Months Ended
December 31,
------------------------------------------
--------------------------------------------
%
2012 2011 Change Change 2012 2011
Change % Change
---------- ---------- ---------- --------- ----------- ----------- ----------
---------
REVENUES:
Income from
real
property $ 52,374 $ 50,249 $ 2,125 4.2 % $ 207,849 $ 198,806 $
9,043 4.5 %
PROPERTY OPERATING
EXPENSES:
Payroll and
benefits 3,935 3,647 288 7.9 % 15,766 15,414
352 2.3 %
Legal,
taxes, &
insurance 717 766 (49) (6.4 )% 2,652 2,993
(341) (11.4 )%
Utilities 2,743 2,601 142 5.5 % 11,288 11,004
284 2.6 %
Supplies and
repair 1,786 1,905 (119) (6.2 )% 8,428 8,163
265 3.2 %
Other 1,484 1,317 167 12.7 % 5,737 5,119
618 12.1 %
Real estate
taxes 4,034 3,999 35 0.9 % 16,157 16,055
102 0.6 %
---------- ---------- ---------- ----------- ----------- ----------
Property
operating
expenses 14,699 14,235 464 3.3 % 60,028 58,748
1,280 2.2 %
---------- ---------- ---------- ----------- ----------- ----------
NET
OPERATING
INCOME
("NOI")((2)) $ 37,675 $ 36,014 $ 1,661 4.6 % $ 147,821 $ 140,058
$ 7,763 5.5 %
---------- ---------- ---------- ----------- ----------- ----------
As of December 31,
-----------------------------
OTHER INFORMATION 2012 2011 Change
---------- ---------- -------
Number of properties 136 136 -
Developed sites 48,222 47,850 372
Occupied sites ((5)) 39,860 39,230 630
Occupancy % ((5) (6)) 86.7 % 85.8 % 0.9 %
Weighted average monthly rent per site - MH ((7)) $ 437 $ 425 $ 12
Weighted average monthly rent per site -
Permanent RV ((7)) $ 453 $ 431 $ 22
Sites available for development 4,908 5,247 (339 )
5. Occupied sites and occupancy % include manufactured housing and permanent RV
sites, and exclude transient RV sites.
6. Occupancy % excludes recently completed but vacant expansion sites.
7. Weighted average rent pertains to manufactured housing and permanent
recreational vehicle sites and excludes transient recreational vehicle
sites.
Rental Program Summary
(in thousands except for *)
Three Months Ended December 31, Twelve Months Ended December
31,
-----------------------------------------
--------------------------------------------
%
%
2012 2011 Change Change 2012 2011
Change Change
---------- ---------- ---------- -------- ------------- ----------- ----------
-------
REVENUES:
Rental home
revenue $ 7,075 $ 5,883 $ 1,192 20.3 % $ 26,589 $ 22,290 $
4,299 19.3 %
Site rent
included in
income from
real property 10,272 8,490 1,782 21.0 % 38,636 31,897
6,739 21.1 %
---------- ---------- ---------- ------------- ----------- ----------
Rental
program
revenue 17,347 14,373 2,974 20.7 % 65,225 54,187
11,038 20.4 %
---------- ---------- ---------- ------------- ----------- ----------
EXPENSES:
Commissions 560 479 81 16.9 % 2,207 1,908
299 15.7 %
Repairs and
refurbishment 2,434 2,335 99 4.2 % 9,002 8,080
922 11.4 %
Taxes and
insurance 958 794 164 20.7 % 3,467 3,100
367 11.8 %
Marketing and
other 1,099 908 191 21.0 % 3,465 3,108
357 11.5 %
---------- ---------- ---------- ------------- ----------- ----------
Rental
program
operating and
maintenance 5,051 4,516 535 11.8 % 18,141 16,196
1,945 12.0 %
---------- ---------- ---------- ------------- ----------- ----------
NET OPERATING
INCOME
("NOI") ((2)) $ 12,296 $ 9,857 $ 2,439 24.7 % $ 47,084 $
37,991 $ 9,093 23.9 %
---------- ---------- ---------- ------------- ----------- ----------
Occupied rental home information as of December
31, 2012 and 2011:
Number of occupied rentals, end
of period* 8,110 7,047
1,063 15.1 %
Investment in occupied rental
homes $ 287,261 $ 237,383
$ 49,878 21.0 %
Number of sold rental homes* 953 789
164 20.8 %
Weighted average monthly rental
rate* $ 782 $ 756
$ 26 3.4 %
Acquisition Summary - Properties Acquired in 2011 and 2012
(amounts in thousands except for statistical data)
Three Months Ended Twelve Months Ended
December 31, 2012 December 31, 2012
-------------------------- -------------------------
REVENUES:
Income from real property $ 11,029 $ 34,134
Revenue from home sales 1,218 2,742
Rental home revenue 667 1,692
-------------------------- -------------------------
Total revenues 12,914 38,568
-------------------------- -------------------------
COSTS AND EXPENSES:
Property operating and
maintenance 3,374 11,191
Real estate taxes 432 3,050
Cost of home sales 1,013 2,194
Rental home operating and
maintenance 275 682
-------------------------- -------------------------
Total expenses 5,094 17,117
-------------------------- -------------------------
NET OPERATING INCOME
("NOI")( (2)) $ 7,820 $ 21,451
-------------------------- -------------------------
Home sales volume :
Pre-Owned Homes 28 89
As of December 31, 2012
-------------------------
Other information:
Number of properties 37
Developed sites 11,573
Occupied sites ((4)) 10,552
Occupancy % ((4)(5)) 91.2 %
Weighted average monthly
rent per site ((6)) $ 406
Occupied rental home
information :
Number of occupied
rentals, end of period 650
Investment in occupied
rental homes (in
thousands) $ 24,571
Number of sold rental
homes 30
Weighted average monthly
rental rate $ 829
4th Quarter Earnings Release:
hugin.info/143420/R/1679883/548707.pdf
4th Quarter Supplemental Information:
hugin.info/143420/R/1679883/548722.pdf
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Source: Sun Communities via Thomson Reuters ONE
[HUG#1679883]
