NEWS RELEASE
February 24, 2015
Southfield, MI, February 24, 2015 - 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 results.
Highlights: Three Months Ended December 31, 2014
* Funds from operations ("FFO")((1)) excluding transaction costs was $0.69 per
diluted share and OP unit ("Share") for the three months ended December
31, 2014.
* Same site Net Operating Income ("NOI")((2)) increased by 6.2 percent as
compared to the three months ended December 31, 2013.
* Revenue producing sites increased by 475 sites bringing total portfolio
occupancy to 92.6 percent.
* Home sales increased 11.3 percent as compared to the fourth quarter of 2013.
* Completed the purchase of the first phase of the American Land Lease ("ALL")
59 community portfolio acquisition in November 2014 and the second phase on
January 6, 2015, for approximately $1.33 billion.
"The last half of 2014 was spent planning for and executing the on-boarding of
the American Land Lease portfolio. The transition was executed swiftly and we
are encouraged by the early contribution the properties are making to our
expanded portfolio," said Gary A. Shiffman, Chairman and CEO. "With our core
portfolio continuing to produce strong results, we believe we have successfully
created an enhanced platform that is positioned to provide both short term and
long term future growth," Shiffman added.
Funds from Operations ("FFO")((1))
FFO((1)) excluding certain items was $35.2 million and $30.7 million, or $0.69
and $0.78 per Share, for the three months ended December 31, 2014 and 2013,
respectively. For the twelve months ended December 31, 2014 and 2013, FFO((1))
excluding certain items was $148.4 million and $121.5 million, or $3.37 and
$3.22 per Share, respectively.
Net Income/(Loss) Attributable to Common Stockholders
Net loss attributable to common stockholders for the fourth quarter of 2014 was
$(13.1) million, or $(0.28) per diluted common share, as compared to net income
of $0.1 million, for the fourth quarter of 2013.
Net income attributable to common stockholders for the year ended December
31, 2014 was $22.4 million, or $0.54 per diluted common share, as compared to
net income of $10.6 million, or $0.31 per diluted common share, for the year
ended December 31, 2013.
Community Occupancy
Total portfolio occupancy increased to 92.6 percent at December 31, 2014 from
89.7 percent at December 31, 2013. During the fourth quarter of 2014, revenue
producing sites increased by 475 sites as compared to 573 revenue producing
sites gained in the fourth quarter of 2013.
During the year ended December 31, 2014, revenue producing sites increased by
1,890 sites as compared to an increase of 1,885 sites during the year ended
December 31, 2013.
Same Site Results
For the 163 communities owned throughout 2014 and 2013, fourth quarter 2014
total revenues increased 6.6 percent and total expenses increased 7.6 percent,
resulting in an increase in NOI((2)) of 6.2 percent over the fourth quarter of
2013. Same site occupancy increased to 93.2 percent at December 31, 2014 from
91.5 percent at December 31, 2013.
For the year ended December 31, 2014, total revenues increased 6.6 percent and
total expenses increased 4.1 percent, resulting in an increase in NOI((2)) of
7.7 percent over the year ended December 31, 2013.
Home Sales
During the fourth quarter of 2014, 552 homes were sold as compared to 496 homes
sold during the fourth quarter of 2013. Rental home sales, which are included
in total home sales, were 237 and 235 for the fourth quarters of 2014 and 2013,
respectively.
During the year ended December 31, 2014, 1,966 homes were sold compared to
1,929 homes sold during the year ended December 31, 2013. For the 113 new homes
and 1,853 pre-owned homes sold during the year, the average selling price was
$83,750 and $24,010, respectively. Rental home sales, which are included in
total home sales, were 799 and 924 for the year ended December 31, 2014 and
2013, respectively.
Acquisitions
As previously announced, the Company completed the acquisition of the 59 ALL
communities (and the associated manufactured homes and notes receivable) in two
closings; one on November 26, 2014 and one on January 6, 2015. The aggregate
consideration was $1.33 billion, consisting of assumed and new debt of $731.6
million, $161.3 million in cash, the issuance of $262.1 million in a combination
of the Company's common stock and common OP units of the Company's subsidiary
Sun Communities Operating Limited Partnership ("SCOLP"), and the issuance of
$175.0 million in a combination of the Company's newly-created 6.50% Series A-4
Cumulative Convertible Preferred Stock and SCOLP's Series A-4 preferred OP
units.
Concurrent with the transaction one of the selling entities purchased 150,000
shares of the Company's common stock and 200,000 Series A-4 Preferred OP Units
of SCOLP, for an aggregate purchase price of $12.5 million.
On December 19, 2014, the Company purchased Oak Creek manufactured housing
community in Coarsegold, California at a purchase price of $15.8 million,
consisting of the assumption of $9.9 million of debt and $5.9 million in
cash. The community contains 198 sites.
During the fourth quarter of 2014 the Company announced that it entered into
agreements with a group of related selling entities ("Berger") to acquire a
portfolio of seven manufactured housing communities, including associated
manufactured homes and certain intangibles. After acquisition the communities
will be operated as six communities. The communities are located in the Orlando,
Florida area, are comprised of approximately 3,150 manufactured housing sites
(approximately 60% are in age-restricted communities) and are 96% occupied. In
addition to the developed sites, there are approximately 380 potential expansion
sites in the communities. Total consideration for the acquisition is
approximately $257.6 million, including the assumption of approximately $157.5
million of debt. The balance of the consideration will be paid in a combination
of up to approximately $41.8 million in cash, common OP Units of SCOLP (at an
issuance price of $61 per unit) and newly-created Series C preferred OP units in
SCOLP (at an issuance price of $100 per unit).
The transaction is subject to the Company's satisfaction with its due diligence
investigation and customary closing conditions, including consent of the
existing lenders and is expected to close in the second quarter of 2015.
Dispositions
On January 14, 2015, the Company completed the sale of one manufactured home
community located in Indiana for proceeds of $18.0 million.
The Company continues to actively evaluate the portfolio for potential future
dispositions in 2015, seeking to redeploy capital to geographic locations
providing greater future returns to our stockholders.
Debt Transactions
During the quarter, in addition to the debt transactions related to the ALL
acquisition, the Company entered into a fifteen year loan agreement under which
it borrowed $74.0 million at a blended fixed interest rate of 3.65%. The loan is
collateralized by one recreational vehicle community which was unencumbered and
one manufactured home community whose previous debt was extinguished in the
third quarter of 2014.
Equity Transaction
Between December 23, 2014 and January 8, 2015 the Company sold 500,000 shares
of its common stock through its at the market sales program at a weighted
average price of $63.46 per share. Net proceeds from the transactions were $31.3
million.
2015 Guidance
The Company anticipates 2015 FFO((1)) per Share will be in the range of $3.53
to 3.63 per Share.
Revenues and expenses contain a component of seasonality; therefore, FFO((1))
per Share is not earned evenly throughout the year. The Company expects
estimated FFO((1)) to be earned, 24%, 23% , 28% and 25% in the first, second,
third and fourth quarters, respectively.
FFO((1)) guidance for the first quarter of 2015 is $0.84-$0.86 per Share.
The Company's guidance is based on several key variables and assumptions, which
are summarized below.
* Rent Increase: The weighted average site rental increase for the total
portfolio is expected to be 3.4%.
* Occupancy: Revenue producing sites in the Company's total portfolio are
expected to increase by approximately 2,100 sites, bringing total portfolio
occupancy to 93.9%.
* Recreational Vehicle Revenue: Revenue from the Company's recreational
vehicle communities contains a component of transient revenue from guest
stays that are other than a full year or full season. Transient revenue is
expected to be approximately $34.1 million and is expected to be earned
25%, 18.8%, 43.2%, 13% in the first, second, third and fourth quarters,
respectively.
* Same Site Portfolio: The Company's same site property portfolio of 177
communities is expected to generate revenue growth of approximately 6.3% and
operating expense growth of 2.6% resulting in NOI((2) )growth of
approximately 7.9%. Revenue producing sites are expected to increase by
approximately 1,600 sites in our same site portfolio.
SAME SITE PORTFOLIO (177 communities) 2014 Forecasted 2015
(amounts in millions) Actual % Growth Projected
------------------------------------------- ----------- ------------ ----------
REVENUES:
Revenue- annual and seasonal $ 272.2 6.5 % $ 289.9
Revenue- transient 21.5 6.0 % 22.8
Other property income 16.3 3.7 % 16.9
----------- ----------
Income from real property* 310.0 6.3 % 329.6
----------- ----------
PROPERTY OPERATING EXPENSES:
Real estate tax 22.5 4.4 % 23.5
Property operating and maintenance
expense * 72.3 2.1 % 73.8
----------- ----------
Total operating expense 94.8 2.6 % 97.3
----------- ----------
NOI( (2) )from Real Property $ 215.2 7.9 % $ 232.3
----------- ----------
(* )The foregoing table nets $20.9 million of utility revenue against the
related utility expense in property operating and maintenance expense.
* Acquisition Portfolio: Information pertaining to the 73 properties excluded
from the Company's same site portfolio is presented in the table below.
ACQUISITION PORTFOLIO (73 communities) 2015
(amounts in millions) Projected
------------------------------------------ ----------------
REVENUES:
Revenue- annual and seasonal $ 126.5
Revenue- transient 11.4
Utility and other property income 7.0
----------------
Income from real property 144.9
----------------
PROPERTY OPERATING EXPENSES:
Real estate tax 11.8
Property operating and maintenance 30.1
----------------
Total operating expense 41.9
----------------
NOI( (2) )from Real Property $ 103.0
----------------
* Home Sales: the table below details our 2015 projected home sales.
HOME SALES 2015
(amounts in millions, except items with *) Projected
---------------------------------------------- -----------------
Number of new home sales* 214
Average selling price* $ 83,359
Revenue from new home sales 17.8
Cost of new home sales 15.1
-----------------
Gross profit/(NOI) ((2)) $ 2.7
-----------------
Number of pre-owned home sales* 2,086
Average selling price* $ 24,139
Revenue from pre-owned home sales 50.3
Cost of pre-owned home sales 36.5
-----------------
Gross profit/(NOI)( (2)) $ 13.8
-----------------
The gain on sale of the rental homes, which is included in the table above and
excluded from FFO ((1)), is expected to approximate $7.5 million.
Other Income: Interest income, ancillary revenues, net, brokerage commissions
and other income, net, is expected to approximate $23.0 million.
* Rental Home Program: Guidance assumes an increase of approximately 1,000
occupied rental units; approximately 72% of these additions are expected to
be in communities acquired or expanded.
RENTAL PROGRAM 2014 Forecasted 2015
(amounts in millions) Actual % Growth Projected
--------------------------------------- ---------- ------------ ----------
Rental home revenue $ 39.2 15.6 % $ 45.3
Rental home operating and maintenance 23.3 9.0 % 25.4
---------- ----------
Rental Program NOI( (2)) $ 15.9 25.0 % $ 19.9
---------- ----------
* General and Administrative Expenses-real property: These expenses are
estimated at $36.0 - $37.0 million.
* General and Administrative Expenses-home sales and rental: These expenses
are estimated at $13.0 -$13.5 million.
* Expansions: The Company continues to expand communities that are near 95%
occupied and which continue to exhibit strong demand. Guidance includes the
expansion of 8 communities located in Texas, California, Ohio and Maryland
which will add approximately 800 developed sites by year end. The expansions
have an estimated fill rate of 6-8 sites per month.
* Acquisitions: Guidance includes acquisitions completed through the date of
this release, a $5.5 million MH acquisition and the Berger transaction as
described above. No additional prospective acquisitions are included. The
Company continues to evaluate additional acquisition opportunities. All
transaction related costs are assumed to be added back in the calculation of
FFO((1)).
* Dispositions: Guidance includes the effect of dispositions completed through
the date of this release. No prospective dispositions are included.
* Weighted Average Shares : Guidance assumes the following fully diluted
weighted average shares.
ESTIMATED 2015 WEIGHTED AVERAGE SHARES ( in thousands)
-------------------------------------------------------------------------------
Weighted average common shares outstanding: 52,723
Common stock issuable upon conversion of stock options 19
Restricted stock 383
Common OP Units 2,889
Common stock issuable upon conversion of Series A-1 preferred OP
units 1,047
Common stock issuable upon conversion of Series A-3 preferred OP
units 73
---------
Weighted average common shares outstanding - fully diluted 57,134
---------
The estimates and assumptions presented above represent the mid-point of 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 "Forward-Looking Statements."
Earnings Conference Call
A conference call to discuss fourth quarter operating results will be held on
Tuesday, February 24th, 2015 at 11:00 A.M. (EST). To participate, call toll-free
888-539-3696. Callers outside the U.S. or Canada can access the call at
719-325-2469. A replay will be available following the call through March
10, 2015, and can be accessed toll-free by calling 888-203-1112 or by calling
719-457-0820. The Conference ID number for the call and the replay is
8682902. 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
242 communities comprising approximately 88,900 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 email
investorrelations@suncommunities.com or by mail Sun Communities, Inc. Investor
Relations, 27777 Franklin Road, Ste. 200, Southfield, MI 48034.
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, the performance of the recent acquisitions, the ability to integrate
future acquisitions smoothly and efficiently, 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 2013
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.
((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.
Consolidated Balance Sheets
(in thousands, except per share amounts)
--------------------------------------------------------------------------------
December December
31, 2014 31, 2013
--------------- --------------
ASSETS
Investment property, net (including $93,769 and
$56,805 for consolidated variable interest
entities at December 31, 2014 and 2013) $ 2,568,164 $ 1,755,052
Cash and cash equivalents 83,459 4,753
Inventory of manufactured homes 8,860 5,810
Notes and other receivables, net 174,857 162,141
Other assets, net 102,352 67,148
--------------- --------------
TOTAL ASSETS $ 2,937,692 $ 1,994,904
--------------- --------------
LIABILITIES
Debt (including $65,849 and $45,209 for
consolidated variable interest entities at
December 31, 2014 and 2013) $ 1,826,293 $ 1,311,437
Lines of credit 5,794 181,383
Other liabilities 164,583 117,673
--------------- --------------
TOTAL LIABILITIES $ 1,996,670 $ 1,610,493
--------------- --------------
Commitments and contingencies
STOCKHOLDERS' EQUITY
Series A Preferred Stock, $0.01 par value.
Authorized: 10,000 shares;
Issued and outstanding: 3,400 shares at December
31, 2014 and 2013 $ 34 $ 34
Series A-4 Preferred Stock, $0.01 par value.
Authorized: 6,331 shares;
Issued and outstanding: 483 shares at December
31, 2014 and none at December 31, 2013 5 -
Common stock, $0.01 par value. Authorized:
90,000 shares;
Issued and outstanding: 48,573 shares at
December 31, 2014 and 36,140 shares at December
31, 2013 486 361
Additional paid-in capital 1,754,759 1,141,590
Accumulated other comprehensive loss - (366 )
Distributions in excess of accumulated earnings (864,019 ) (773,775 )
--------------- --------------
Total Sun Communities, Inc. stockholders' equity 891,265 367,844
Noncontrolling interests:
Series A-1 preferred OP units 42,910 45,548
Series A-3 preferred OP units 3,463 3,463
Series A-4 preferred OP units 18,852 -
Common OP units (15,052 ) (31,907 )
Consolidated variable interest entities (416 ) (537 )
--------------- --------------
Total noncontrolling interest 49,757 16,567
--------------- --------------
TOTAL STOCKHOLDERS' EQUITY 941,022 384,411
--------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,937,692 $ 1,994,904
--------------- --------------
Consolidated Statements of Operations
(in thousands, except per share amounts)
--------------------------------------------------------------------------------
Three Months Ended
December 31, Year Ended December 31,
-------------------------- --------------------------
2014 2013 2014 2013
------------- ------------ ------------- ------------
REVENUES
Income from real property $ 89,946 $ 78,128 $ 357,793 $ 313,097
Revenue from home sales 15,105 14,652 53,954 54,852
Rental home revenue 10,249 8,717 39,213 32,500
Ancillary revenues, net 19 (226 ) 5,217 1,151
Interest 4,037 3,486 14,462 13,073
Brokerage commissions and
other income, net 316 200 1,036 549
------------- ------------ ------------- ------------
Total revenues 119,672 104,957 471,675 415,222
------------- ------------ ------------- ------------
COSTS AND EXPENSES
Property operating and
maintenance 24,721 21,044 101,134 87,637
Real estate taxes 6,089 5,138 24,181 22,284
Cost of home sales 11,084 10,937 40,556 40,297
Rental home operating and
maintenance 6,574 6,183 23,270 20,435
General and
administrative - real
property 8,592 6,855 31,769 25,941
General and
administrative - home
sales and rentals 2,921 2,439 10,853 9,913
Transaction costs 13,996 1,159 18,259 3,928
Depreciation and
amortization 44,875 29,962 133,726 110,078
Asset impairment charge - - 837 -
Interest 19,622 18,451 73,771 73,339
Interest on mandatorily
redeemable debt 793 808 3,210 3,238
------------- ------------ ------------- ------------
Total expenses 139,267 102,976 461,566 397,090
------------- ------------ ------------- ------------
Income before other gains
(losses), income taxes
and distributions from
affiliate (19,595 ) 1,981 10,109 18,132
Gain on disposition of
properties, net 3,138 - 17,654 -
Gain on settlement 4,452 - 4,452 -
Provision for state
income taxes (12 ) (48 ) (219 ) (234 )
Distributions from
affiliate - 700 1,200 2,250
------------- ------------ ------------- ------------
Net income (loss) (12,017 ) 2,633 33,196 20,148
Less: Preferred return to
Series A-1 preferred OP
units 657 689 2,654 2,598
Less: Preferred return to
Series A-3 preferred OP
units 45 45 181 166
Less: Preferred return to
Series A-4 preferred OP
units 100 - 100 -
Less: Amounts
attributable to
noncontrolling interests (1,341 ) 303 1,752 718
------------- ------------ ------------- ------------
Net income (loss)
attributable to Sun
Communities, Inc. (11,478 ) 1,596 28,509 16,666
Less: Preferred stock
distributions 1,591 1,514 6,133 6,056
------------- ------------ ------------- ------------
Net income (loss)
attributable to Sun
Communities, Inc. common
stockholders $ (13,069 ) $ 82 $ 22,376 $ 10,610
------------- ------------ ------------- ------------
Weighted average common
shares outstanding:
Basic 47,499 35,508 41,337 34,228
Diluted 47,499 35,676 41,805 34,410
Earnings (loss) per
share:
Basic $ (0.28 ) $ - $ 0.54 $ 0.31
Diluted $ (0.28 ) $ - $ 0.54 $ 0.31
Distributions per common
share: $ 0.65 $ 0.63 $ 2.60 $ 2.52
Reconciliation of Net Income (Loss) to FFO((1))
(in thousands, except per share amounts)
--------------------------------------------------------------------------------
Three Months Ended
December 31, Year Ended December 31,
-------------------------- --------------------------
2014 2013 2014 2013
------------- ------------ ------------- ------------
Net income (loss)
attributable to Sun
Communities, Inc. common
stockholders $ (13,070 ) $ 82 $ 22,376 $ 10,610
Adjustments:
Preferred return to
Series A-1 preferred OP
units 657 705 - 2,598
Preferred return to
Series A-3 preferred OP
units 45 45 181 166
Preferred return to
Series A-4 preferred OP
units - - 100 -
Preferred distribution to
Series A-4 Preferred
Stock 76 - 76 -
Amounts attributable to
noncontrolling interests (1,308 ) 325 1,086 718
Depreciation and
amortization 44,482 30,157 134,252 111,083
Asset impairment charge - - 837 -
Gain on disposition of
properties, net (3,138 ) - (17,654 ) -
Gain on disposition of
assets, net (2,043 ) (1,787 ) (6,705 ) (7,592 )
------------- ------------ ------------- ------------
Funds from operations
("FFO") ((1)) 25,701 29,527 134,549 117,583
Adjustments:
Transaction costs 13,996 1,159 18,259 3,928
Gain on settlement (4,452 ) - (4,452 ) -
------------- ------------ ------------- ------------
Funds from operations
excluding certain items $ 35,245 $ 30,686 $ 148,356 $ 121,511
------------- ------------ ------------- ------------
Weighted average common
shares outstanding: 47,499 35,508 41,337 34,228
Add:
Common stock issuable
upon conversion of stock
options 15 12 16 15
Restricted stock 304 156 237 167
Common OP Units 2,250 2,069 2,114 2,069
Common stock issuable
upon conversion of Series
A-1 preferred OP units 1,060 1,111 - 1,111
Common stock issuable
upon conversion of Series
A-3 preferred OP units 75 75 75 67
Common stock issuable
upon conversion of Series
A-4 preferred OP units - - 28 -
Series A-4 Preferred
Stock 215 - 215 -
------------- ------------ ------------- ------------
Weighted average common
shares outstanding -
fully diluted 51,418 38,931 44,022 37,657
------------- ------------ ------------- ------------
FFO((1)) per Share -
fully diluted $ 0.50 $ 0.75 $ 3.06 $ 3.11
FFO((1)) per Share
excluding certain items -
fully diluted $ 0.69 $ 0.78 $ 3.37 $ 3.22
Statement of Operations - Same Site
(in thousands except for Other Information)
--------------------------------------------------------------------------------
Three Months Ended December 31, Year Ended
December 31,
-----------------------------------------------
-------------------------------------------------
%
%
2014 2013 Change Change 2014 2013
Change Change
------------ ------------ ----------- --------- ------------- -------------
------------ --------
REVENUES:
Income from
real
property $ 73,544 $ 68,986 $ 4,558 6.6 % $ 291,720 $ 273,574
$ 18,146 6.6 %
PROPERTY OPERATING
EXPENSES:
Payroll and
benefits 5,623 5,367 256 4.8 % 22,585 22,918
(333 ) (1.5 )%
Legal,
taxes, &
insurance 1,152 1,232 (80 ) (6.5 )% 4,630 4,390
240 5.5 %
Utilities 3,669 3,697 (28 ) (0.8 )% 16,593 15,620
973 6.2 %
Supplies and
repair 2,913 2,378 535 22.5 % 11,396 10,222
1,174 11.5 %
Other 2,381 1,906 475 24.9 % 8,354 7,610
744 9.8 %
Real estate
taxes 5,092 4,770 322 6.8 % 21,418 20,876
542 2.6 %
------------ ------------ ----------- ------------- -------------
------------
Property
operating
expenses 20,830 19,350 1,480 7.6 % 84,976 81,636
3,340 4.1 %
------------ ------------ ----------- ------------- -------------
------------
NET
OPERATING
INCOME
("NOI")((2)) $ 52,714 $ 49,636 $ 3,078 6.2 % $ 206,744 $
191,938 $ 14,806 7.7 %
------------ ------------ ----------- ------------- -------------
------------
As of December 31,
------------------------------
OTHER INFORMATION 2014 2013 Change
---------- ---------- --------
Number of properties 163 163 -
Developed sites 61,734 61,141 593
Occupied sites ((3)) 52,831 51,119 1,712
Occupancy % ((3) (4)) 93.2 % 91.5 % 1.7 %
Weighted average monthly rent per site - MH $ 461 $ 446 $ 15
Weighted average monthly rent per site - RV
((5)) $ 413 $ 405 $ 8
Weighted average monthly rent per site - Total $ 456 $ 442 $ 14
Sites available for development 5,823 6,339 (516 )
((3) )Includes manufactured housing and annual/seasonal recreational
vehicle sites, and excludes transient recreational vehicle sites, which are
included in total developed sites.
((4) )Occupancy % excludes recently completed but vacant expansion sites.
((5) )Weighted average rent pertains to annual/seasonal RV sites and
excludes transient RV sites.
Rental Program Summary
(amounts in thousands except for *)
--------------------------------------------------------------------------------
Three Months Ended December 31, Year Ended
December 31,
----------------------------------------------
--------------------------------------------------
%
2014 2013 Change Change 2014 2013
Change % Change
------------ ------------ ----------- -------- ------------- -------------
------------ ---------
REVENUES:
Rental home
revenue $ 10,249 $ 8,717 $ 1,532 17.6 % $ 39,213 $ 32,500
$ 6,713 20.7 %
Site rent
included in
Income from
real property 14,130 12,301 1,829 14.9 % 54,289 46,416
7,873 17.0 %
------------ ------------ ------------- ------------- -------------
------------
Rental
Program
revenue 24,379 21,018 3,361 16.0 % 93,502 78,916
14,586 18.5 %
------------ ------------ ----------- ------------- -------------
------------
EXPENSES:
Commissions 708 703 5 0.7 % 2,607 2,507
100 4.0 %
Repairs and
refurbishment 3,209 3,030 179 5.9 % 11,068 9,411
1,657 17.6 %
Taxes and
insurance 1,351 1,213 138 11.4 % 5,286 4,446
840 18.9 %
Marketing and
other 1,306 1,237 69 5.6 % 4,309 4,071
238 5.8 %
------------ ------------ ----------- ------------- -------------
------------
Rental
Program
operating and
maintenance 6,574 6,183 391 6.3 % 23,270 20,435
2,835 13.9 %
------------ ------------ ----------- ------------- -------------
------------
NET OPERATING
INCOME
("NOI") ((3)) $ 17,805 $ 14,835 $ 2,970 20.0 % $ 70,232 $
58,481 $ 11,751 20.1 %
------------ ------------ ----------- ------------- -------------
------------
Occupied rental home information as of December 31, 2014 and 2013:
Number of
occupied
rentals, end
of period* 10,973 9,726
1,247 12.8 %
Investment in
occupied
rental homes $ 429,605 $ 355,789
$ 73,816 20.7 %
Number of
sold rental
homes* 799 924
(125 ) (13.5 )%
Weighted
average
monthly
rental rate* $ 822 $ 796
$ 26 3.3 %
Homes Sales Summary
(amounts in thousands except for *)
--------------------------------------------------------------------------------
Three Months Ended December 31, Year Ended December
31,
-------------------------------------------------
-------------------------------------------------
%
2014 2013 Change Change 2014 2013
Change % Change
------------ ------------ ------------- --------- ------------ ------------
------------- ---------
New
home
sales $ 2,639 $ 2,727 $ (88 ) (3.2 )% $ 9,464 $ 6,645 $
2,819 42.4 %
Pre-
owned
home
sales 12,466 11,925 541 4.5 % 44,490 48,207
(3,717 ) (7.7 )%
------------ ------------ ------------- ------------ ------------
-------------
Revenue
from
home
sales 15,105 14,652 453 3.1 % 53,954 54,852
(898 ) (1.6 )%
------------ ------------ ------------- ------------ ------------
-------------
New
home
cost of
sales 2,192 2,249 (57 ) (2.5 )% 7,977 5,557
2,420 43.5 %
Pre-
owned
home
cost of
sales 8,892 8,688 204 2.3 % 32,579 34,740
(2,161 ) (6.2 )%
------------ ------------ ------------- ------------ ------------
-------------
Cost of
home
sales 11,084 10,937 147 1.3 % 40,556 40,297
259 0.6 %
------------ ------------ ------------- ------------ ------------
-------------
NOI /
Gross
Profit
((2)) $ 4,021 $ 3,715 $ 306 8.2 % $ 13,398 $ 14,555 $
(1,157 ) (7.9 )%
------------ ------------ ------------- ------------ ------------
-------------
Gross
profit
- new
homes $ 447 $ 478 $ (31 ) (6.5 )% $ 1,487 $ 1,088 $
399 36.7 %
Gross
margin
% - new
homes 16.9 % 17.5 % (0.6 )% 15.7 % 16.4 %
(0.7 )%
Average
selling
price -
new
homes* $ 79,984 $ 85,195 $ (5,211 ) (6.1 )% $ 83,750 $ 78,179 $
5,571 7.1 %
Gross
profit
- pre-
owned
homes $ 3,574 $ 3,237 $ 337 10.4 % $ 11,911 $ 13,467 $
(1,556 ) (11.6 )%
Gross
margin
% -
pre-
owned
homes 28.7 % 27.1 % 1.6 % 26.8 % 27.9 %
(1.1 )%
Average
selling
price -
pre-
owned
homes* $ 24,030 $ 25,674 $ (1,644 ) (6.4 )% $ 24,010 $ 26,136 $
(2,126 ) (8.1 )%
Home sales volume:
New
home
sales 33 32 1 3.1 % 113 85
28 32.9 %
Pre-
owned
home
sales 519 464 55 11.9 % 1,853 1,844
9 0.5 %
------------ ------------ ------------- ------------ ------------
-------------
Total
homes
sold 552 496 56 11.3 % 1,966 1,929
37 1.9 %
------------ ------------ ------------- ------------ ------------
-------------
Acquisition Summary - Properties Acquired in 2013 and 2014
(amounts in thousands except for statistical data)
--------------------------------------------------------------------------------
Three Months Ended Year Ended December
December 31, 2014 31, 2014
-------------------------- -------------------------
REVENUES:
Income from real property $ 11,416 $ 41,753
Revenue from home sales 773 1,168
Rental home revenue 404 765
Ancillary revenues, net 118 5,087
-------------------------- -------------------------
Total revenues 12,711 48,773
-------------------------- -------------------------
COSTS AND EXPENSES:
Property operating and
maintenance 3,956 16,488
Real estate taxes 996 2,238
Cost of home sales 635 923
Rental home operating and
maintenance 96 267
-------------------------- -------------------------
Total expenses 5,683 19,916
-------------------------- -------------------------
NET OPERATING INCOME
("NOI")( (2)) $ 7,028 $ 28,857
-------------------------- -------------------------
As of December 31, 2014
-------------------------
Other information:
Number of properties 54
Developed sites 17,820
Occupied sites ((3)) 12,509
Occupancy % ((3)) 92.8 %
Weighted average monthly
rent per site - MH $ 445
Weighted average monthly
rent per site - RV ((5)) $ 349
Weighted average monthly
rent per site - Total $ 422
Home sales volume :
Pre-owned homes 92
Occupied rental home
information :
Number of occupied
rentals, end of period 507
Investment in occupied
rental homes (in
thousands) $ 11,706
Weighted average monthly
rental rate $ 852
((3) )Includes manufactured housing and annual/seasonal recreational
vehicle sites, and excludes transient recreational vehicle sites, which are
included in total developed sites.
((5) )Weighted average rent pertains to annual/seasonal RV sites and
excludes transient RV sites.
4th Quarter Supplemental Information:
http://hugin.info/143420/R/1896695/672966.pdf
4th Quarter Earnings and 2015 Guidance Release:
http://hugin.info/143420/R/1896695/672956.pdf
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