News Release Details

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

Feb 21, 2022

Southfield, MI, Feb. 21, 2022 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") communities, recreational vehicle ("RV") resorts and marinas (collectively, the "properties"), today reported its fourth quarter results for 2021.

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

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

For the year ended December 31, 2021, total revenues increased by $874.3 million, or 62.5 percent, to approximately $2.3 billion compared to $1.4 billion for the same period in 2020. Net income attributable to common stockholders increased by $248.5 million, or 188.8 percent, to $380.2 million, or $3.36 per diluted common share, compared to net income attributable to common stockholders of $131.6 million, or $1.34 per diluted common share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations ("Core FFO")(1) for the quarter ended December 31, 2021, was $1.31 per diluted share and OP unit ("Share") as compared to $1.16 in the corresponding period in 2020, a 12.9 percent increase. Core FFO(1) for the year ended December 31, 2021, was $6.51 per Share as compared to $5.09 in the prior year, an increase of 27.9 percent.

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

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

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

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

OPERATING HIGHLIGHTS

Portfolio Occupancy

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

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

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

Same Community(2) Results

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

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


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

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

Home Sales

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

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

Marina Results

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

PORTFOLIO ACTIVITY

Acquisitions

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

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

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

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

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

Development Activity

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

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

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

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

                             

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

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

Senior Unsecured Notes

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

Amended Senior Credit Facility

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

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

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

Equity Transaction

Public Equity Offerings

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

At the Market Offering

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

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

2022 Distributions

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

2022 GUIDANCE

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

Earnings and Core FFO(1)

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


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


  1Q22   2Q22   3Q22   4Q22
Seasonality of Core FFO(1) per fully diluted Share 17.4 %   27.5 %   35.7 %   19.4 %

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

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

Total MH, RV and Marina Portfolio

Number of properties: 605

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

Same Property(2) Portfolio(a)

Number of properties: 529

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

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

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

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

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

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

Total Company Supplementary Information(a):

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


  2022E
Increase in revenue producing sites 2,500 - 2,800
   
New home sales volume 650 - 750
Pre-owned home sales volume 2,200 - 2,400
   
Newly built ground-up and expansion sites 1,600 - 2,000

(a) Total Company supplementary information excludes Park Holidays.

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

Notes and Assumptions to 2022 Guidance:

Inclusion of Acquisitions

The foregoing guidance, except as otherwise noted, includes:

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

Park Holidays Acquisition Assumptions

The foregoing guidance assumes:

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

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

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

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

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

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

EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter results will be held on Tuesday, February 22, 2022 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through March 8, 2022 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13725426. The conference call will be available live on Sun Communities' website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of December 31, 2021, owned, operated, or had an interest in a portfolio of 602 developed MH, RV and marina properties comprising over 159,000 developed sites and over 45,000 wet slips and dry storage spaces in 39 states, Canada and Puerto Rico.

For more information about Sun Communities, Inc., please visit www.suncommunities.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company's control. These risks, uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and in the Company's other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

  • Outbreaks of disease, including the COVID-19 pandemic, and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations;
  • Changes in general economic conditions, the real estate industry and the markets in which the Company operates;
  • Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions (including the Park Holidays Acquisition), developments and expansions successfully;
  • The Company's liquidity and refinancing demands;
  • The Company's ability to obtain or refinance maturing debt and to complete the Proposed Loan Amendment;
  • The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes;
  • Availability of capital;
  • The Company’s ability to physically settle the Outstanding Forward Sale Agreements and receive the expected amount of proceeds;
  • Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and British pound;
  • The Company's ability to maintain rental rates and occupancy levels;
  • The Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
  • Increases in interest rates and operating costs, including insurance premiums and real property taxes;
  • Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts and wildfires;
  • General volatility of the capital markets and the market price of shares of the Company's capital stock;
  • The Company's ability to maintain its status as a REIT;
  • Changes in real estate and zoning laws and regulations;
  • Legislative or regulatory changes, including changes to laws governing the taxation of REITs;
  • Litigation, judgments or settlements;
  • Competitive market forces;
  • The ability of purchasers of manufactured homes and boats to obtain financing; and
  • The level of repossessions by manufactured home and boat lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.

Investor Information

 


RESEARCH COVERAGE            
             
Firm   Analyst   Phone   Email
Bank of America Merrill Lynch   Joshua Dennerlein   (646) 855-1681   joshua.dennerlein@baml.com
Barclays   Anthony Powell   (212) 526-8768   anthony.powell@barclays.com
    Allison Gelman   (212) 526-3367   allison.gelman@barclays.com
Berenberg Capital Markets   Keegan Carl   (646) 949-9052   keegan.carl@berenberg-us.com
BMO Capital Markets   John Kim   (212) 885-4115   johnp.kim@bmo.com
Citi Research   Michael Bilerman   (212) 816-1383   michael.bilerman@citi.com
    Nicholas Joseph   (212) 816-1909   nicholas.joseph@citi.com
Evercore ISI   Steve Sakwa   (212) 446-9462   steve.sakwa@evercoreisi.com
    Samir Khanal   (212) 888-3796   samir.khanal@evercoreisi.com
Green Street Advisors   John Pawlowski   (949) 640-8780   jpawlowski@greenstreetadvisors.com
RBC Capital Markets   Brad Heffern   (512) 708-6311   brad.heffern@rbccm.com
Robert W. Baird & Co.   Wesley Golladay   (216) 737-7510   wgolladay@rwbaird.com
UBS   Michael Goldsmith   (212) 713-2951   michael.goldsmith@ubs.com
             
             
INQUIRIES            
             
Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media or any prospective investor. Please address all inquiries to our Investor Relations department.
             
At Our Website   www.suncommunities.com        
             
By Email   investorrelations@suncommunities.com    
             
By Phone   (248) 208-2500        

Portfolio Overview
(As of December 31, 2021)

 



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

 


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


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

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

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

Consolidated Balance Sheets
(amounts in thousands)

 


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

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

 


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

N/M = Percentage change is not meaningful.

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

 


Outstanding Securities - As of December 31, 2021
                   
  Number of Units / Shares Outstanding   Conversion Rate*   If Converted(1)   Issuance Price Per Unit*   Annual Distribution Rate*
Non-convertible Securities                  
Common shares 115,976   N/A   N/A   N/A   $3.32^
                   
Convertible Securities                  
Common OP units 2,538   1.0000   2,538   N/A   Mirrors common shares distributions
                   
Series A-1 preferred OP units 275   2.4390   671   $ 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 %
Series J preferred OP units 240   0.6061   145   $ 100   2.85 %

^ Annual distribution is based on the last quarterly distribution annualized.

(1)  Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

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

Reconciliations to Non-GAAP Financial Measures

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

 


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

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

 


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


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

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

 


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

Non-GAAP and Other Financial Measures

Debt Analysis
(amounts in thousands)

 


  Quarter Ended
  12/31/2021   9/30/2021   6/30/2021   3/31/2021   12/31/2020
Debt Outstanding                  
Secured debt $         3,380,739             $         3,403,436             $         3,457,734             $         3,472,930             $         3,489,983          
Unsecured debt                  
Senior unsecured notes           1,186,350                       591,252                       591,688                       —                       —          
Line of credit and other debt(9)           1,034,833                       624,837                       191,841                       875,093                       1,197,181          
Preferred Equity - Sun NG Resorts - mandatorily redeemable           35,249                       35,249                       35,249                       35,249                       35,249          
Preferred OP units - mandatorily redeemable           34,663                       34,663                       34,663                       34,663                       34,663          
Total unsecured debt           2,291,095                       1,286,001                       853,441                       945,005                       1,267,093          
Total debt $         5,671,834             $         4,689,437             $         4,311,175             $         4,417,935             $         4,757,076          
                   
% Fixed / Floating                  
Fixed           81.8         %             86.7         %             94.7         %             79.3         %             74.0         %
Floating           18.2         %             13.3         %             5.3         %             20.7         %             26.0         %
Total           100.0         %             100.0         %             100.0         %             100.0         %             100.0         %
                   
Weighted Average Interest Rates                  
Secured debt           3.78         %             3.78         %             3.75         %             3.75         %             3.75         %
Senior unsecured notes           2.55         %             2.70         %             2.70         %             —         %             —         %
Line of credit and other debt(9)           0.98         %             0.98         %             0.93         %             1.77         %             2.11         %
Preferred Equity - Sun NG Resorts - mandatorily redeemable           6.00         %             6.00         %             6.00         %             6.00         %             6.00         %
Preferred OP units - mandatorily redeemable           5.93         %             5.93         %             5.93         %             5.93         %             5.93         %
Total average           3.04         %             3.30         %             3.52         %             3.39         %             3.37         %
                   
Debt Ratios                  
Net Debt / Recurring EBITDA(1) (TTM)           5.7                       4.9                       5.1                       6.1                       6.9          
Net Debt / Enterprise Value           18.0         %             17.1         %             16.8         %             19.7         %             21.4         %
Net Debt / Gross Assets           35.4         %             31.2         %             29.6         %             31.8         %             35.5         %
                   
Coverage Ratios                  
Recurring EBITDA(1) (TTM) / Interest   6.2       6.1       5.6       5.0       4.9  
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution   6.0       6.0       5.5       4.8       4.8  


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

Same Community(2) Summary
(amounts in thousands)

 


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


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

Same Community(2) Summary (continued)

 


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

Marina Summary
(amounts in thousands except for statistical data)

 


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

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

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

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

 


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

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

Home Sales Summary
(amounts in thousands except for *)

 


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

Rental Program Summary
(amounts in thousands except for *)

 


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

Rental Program NOI is included in Real Property NOI. Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company's operations.

MH and RV Property Summary(15)                
                     
                     
    12/31/2021   9/30/2021   6/30/2021   3/31/2021   12/31/2020
FLORIDA                    
Properties           132                     131                     129                     128                     128          
MH & Annual RV Developed sites           40,783                     40,500                     40,171                     40,011                     39,803          
Occupied MH & Annual RV           40,019                     39,747                     39,402                     39,283                     39,063          
MH & Annual RV Occupancy %           98.1         %           98.1         %           98.1         %           98.2         %           98.1         %
Transient RV sites           5,950                     6,163                     5,895                     5,823                     6,011          
Sites for development           1,268                     1,414                     1,414                     1,497                     1,497          
MICHIGAN                    
Properties           84                     83                     75                     74                     74          
MH & Annual RV Developed sites           32,257                     31,997                     29,600                     29,092                     29,086          
Occupied MH & Annual RV           31,061                     30,782                     28,671                     28,145                     28,109          
MH & Annual RV Occupancy %           96.3         %           96.2         %           96.9         %           96.7         %           96.6         %
Transient RV sites           869                     554                     509                     541                     546          
Sites for development           1,422                     1,481                     1,182                     1,182                     1,182          
CALIFORNIA                    
Properties           36                     37                     36                     36                     35          
MH & Annual RV Developed sites           6,787                     6,760                     6,736                     6,734                     6,675          
Occupied MH & Annual RV           6,672                     6,642                     6,613                     6,609                     6,602          
MH & Annual RV Occupancy %           98.3         %           98.3         %           98.2         %           98.1         %           98.9         %
Transient RV sites           2,147                     2,410                     2,416                     2,418                     2,231          
Sites for development           534                     534                     127                     127                     373          
TEXAS                     
Properties           30                     26                     25                     24                     24          
MH & Annual RV Developed sites           8,192                     8,004                     7,947                     7,928                     7,766          
Occupied MH & Annual RV           8,006                     7,805                     7,731                     7,671                     7,572          
MH & Annual RV Occupancy %           97.7         %           97.5         %           97.3         %           96.8         %           97.5         %
Transient RV sites           2,576                     2,131                     1,835                     1,773                     1,810          
Sites for development           1,184                     1,066                     1,194                     1,275                     1,378          
ONTARIO, CANADA                    
Properties           16                     16                     16                     16                     15          
MH & Annual RV Developed sites           4,363                     4,361                     4,302                     4,199                     4,090          
Occupied MH & Annual RV           4,363                     4,361                     4,302                     4,199                     4,090          
MH & Annual RV Occupancy %           100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Transient RV sites           874                     807                     870                     964                     966          
Sites for development           1,429                     1,525                     1,525                     1,525                     1,525          
CONNECTICUT                    
Properties           16                     16                     16                     16                     16          
MH & Annual RV Developed sites           1,902                     1,901                     1,901                     1,897                     1,897          
Occupied MH & Annual RV           1,765                     1,760                     1,757                     1,746                     1,739          
MH & Annual RV Occupancy %           92.8         %           92.6         %           92.4         %           92.0         %           91.7         %
Transient RV sites           103                     104                     104                     108                     108          
Sites for development           —                     —                     —                     —                     —          
MAINE                    
Properties           15                     13                     13                     13                     13          
MH & Annual RV Developed sites           2,424                     2,220                     2,204                     2,190                     2,190          
Occupied MH & Annual RV           2,339                     2,136                     2,127                     2,119                     2,121          
MH & Annual RV Occupancy %           96.5         %           96.2         %           96.5         %           96.8         %           96.8         %
Transient RV sites           1,007                     776                     792                     805                     805          
Sites for development           180                     30                     30                     30                     30          
                     
                     
ARIZONA                    
Properties           12                     12                     14                     14                     14          
MH & Annual RV Developed sites           4,123                     4,071                     4,401                     4,391                     4,323          
Occupied MH & Annual RV           3,917                     3,853                     4,116                     4,101                     4,030          
MH & Annual RV Occupancy %           95.0         %           94.6         %           93.5         %           93.4         %           93.2         %
Transient RV sites           1,185                     1,237                     1,260                     1,270                     1,337          
Sites for development           —                     —                     —                     —                     —          
INDIANA                    
Properties           12                     12                     12                     12                     12          
MH & Annual RV Developed sites           3,174                     3,057                     3,087                     3,087                     3,087          
Occupied MH & Annual RV           3,047                     2,963                     2,970                     2,961                     2,950          
MH & Annual RV Occupancy %           96.0         %           96.9         %           96.2         %           95.9         %           95.6         %
Transient RV sites           1,002                     1,089                     1,089                     1,089                     1,089          
Sites for development           177                     204                     277                     277                     277          
NEW JERSEY                    
Properties           11                     9                     8                     8                     8          
MH & Annual RV Developed sites           2,554                     2,551                     2,396                     2,366                     2,347          
Occupied MH & Annual RV           2,554                     2,551                     2,396                     2,366                     2,347          
MH & Annual RV Occupancy %           100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Transient RV sites           1,436                     899                     762                     794                     813          
Sites for development           262                     262                     262                     262                     262          
COLORADO                    
Properties           10                     10                     10                     10                     10          
MH & Annual RV Developed sites           2,552                     2,552                     2,453                     2,453                     2,453          
Occupied MH & Annual RV           2,442                     2,431                     2,420                     2,395                     2,380          
MH & Annual RV Occupancy %           95.7         %           95.3         %           98.7         %           97.6         %           97.0         %
Transient RV sites           987                     987                     987                     962                     962          
Sites for development           1,744                     1,629                     1,225                     1,250                     1,250          
NEW HAMPSHIRE                    
Properties           10                     10                     10                     10                     10          
MH & Annual RV Developed sites           1,748                     1,777                     1,777                     1,776                     1,777          
Occupied MH & Annual RV           1,740                     1,769                     1,769                     1,769                     1,767          
MH & Annual RV Occupancy %           99.5         %           99.5         %           99.5         %           99.6         %           99.4         %
Transient RV sites           650                     602                     602                     456                     460          
Sites for development           111                     111                     151                     151                     151          
NEW YORK                    
Properties           10                     10                     10                     10                     9          
MH & Annual RV Developed sites           1,482                     1,457                     1,457                     1,452                     1,419          
Occupied MH & Annual RV           1,455                     1,432                     1,428                     1,415                     1,380          
MH & Annual RV Occupancy %           98.2         %           98.3         %           98.0         %           97.5         %           97.3         %
Transient RV sites           1,659