News Release Details

Sun Communities, Inc. Reports 2022 Fourth Quarter and Full Year Results; Provides 2023 Guidance and Increases Annual Distribution Rate for 2023

Feb 22, 2023
         

Net Income per Diluted Share of $0.04 and $2.00 for the Quarter and Year End, Respectively

Core FFO(1) per Share of $1.33 and $7.35 for the Quarter and Year End,
Respectively, Increased 1.5% and 12.9% over the 2021 Periods

         

Strong Demand and Accretive Investments Drive Continued Solid Performance
Record Volume of Transient-to-Annual RV Conversions Propel Record Gains in Revenue Producing Sites

         

Establishing Guidance for 2023

Expecting Total Same Property NOI(1)(2) Growth of 4.9% - 5.9%

Increasing Annual Distribution by 5.7% in 2023, to $3.72 per share

         

Southfield, MI, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company" or "SUI"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities and marinas (collectively, the "properties"), today reported its fourth quarter and full-year results for 2022.

Financial Results for the Quarter and Year Ended December 31, 2022

  • For the quarter ended December 31, 2022, net income attributable to common shareholders was $4.7 million, or $0.04 per diluted share, compared to net income attributable to common shareholders of $12.9 million, or $0.11 per diluted share, for the same period in 2021.

  • For the year ended December 31, 2022, net income attributable to common shareholders was $242.0 million, or $2.00 per diluted share, compared to net income attributable to common shareholders of $380.2 million, or $3.36 per diluted share, for the same period in 2021.

Non-GAAP Financial Measures

  • Core Funds from Operations ("Core FFO")(1) for the quarter and year ended December 31, 2022, was $1.33 per common share and dilutive convertible securities ("Share") and $7.35 per Share, respectively, representing 1.5% and 12.9% increases as compared to the corresponding periods in 2021.

  • Constant Currency Core Funds from Operations ("Constant Currency Core FFO")(1) for the quarter and year ended December 31, 2022, was $1.34 per Share and $7.44 per Share, respectively.

  • Same Property Net Operating Income ("NOI")(1)(2) for MH and RV properties increased by 4.4% and 5.4% for the quarter and year ended December 31, 2022, respectively, as compared to the corresponding periods in 2021. For the Company's Marina properties, Same Property NOI(1) increased by 10.4% and 7.7% for the quarter and year ended December 31, 2022, respectively, as compared to the corresponding periods in 2021.

"We are pleased to report another year of strong performance and earnings growth. The resilient demand for our manufactured housing, RV and marina properties, combined with the limited supply for each, are the foundations of our business model, which generates positive results throughout economic cycles," said Gary A. Shiffman, Chairman and CEO. "We delivered a record number of revenue producing sites in 2022, primarily driven by record conversions to annual leases at our RV communities, and we have nearly 16,200 sites in our portfolio available for development. We are optimistic in our outlook for 2023, supported by our healthy rental rate increases in our MH, annual RV and Marina properties. We will be disciplined in terms of capital deployment, pursuing selective acquisition opportunities while continuing to leverage our development platform to create new supply to meet the strong demand and deliver value for our shareholders."

OPERATING HIGHLIGHTS

Portfolio Occupancy

  • Total MH and annual RV occupancy (excluding UK Operations) was 96.8% at December 31, 2022, as compared to 97.4% at December 31, 2021.

  • Revenue Producing Sites Gains - During the quarter ended December 31, 2022, the number of MH and annual RV revenue producing sites increased by 613 sites, as compared to an increase of 810 sites during the corresponding period in 2021. During the year ended December 31, 2022, MH and annual RV revenue producing sites increased by 2,922 sites, a 17.7% increase over the 2,483 sites gained during 2021.

  • Transient-to-annual RV site conversions totaled a record 2,257 sites in 2022, and accounted for 77.2% of 2022's revenue producing site gains.

Same Property Results(2)

  • MH and RV - For the 421 MH and RV properties owned and operated by the Company since at least January 1, 2021, the following table reflects the percentage changes, both in total and by segment, for the quarter and year ended December 31, 2022:

  Quarter Ended December 31, 2022
  Total MH and RV
Same Property(2)
  MH
Same Property(2)
  RV
Same Property(2)
Revenue         4.9         %           4.7         %           5.3         %
Expense         5.8         %           12.0         %           (0.9)        %
NOI(1)         4.4         %           2.2         %           11.8         %


  Year Ended December 31, 2022
  Total MH and RV Same Property(2)   MH
Same Property(2)
  RV
Same Property(2)
Revenue         5.7         %           4.5         %           7.6         %
Expense         6.2         %           8.1         %           4.2         %
NOI(1)         5.4         %           3.3         %           10.3         %

Same Property adjusted blended occupancy(3) increased to 98.6% at December 31, 2022, from 96.8% at December 31, 2021, an increase of 180 basis points.

  • Marina - For the 101 Marina properties owned and operated by the Company since at least January 1, 2021, the following table reflects the percentage increases for the quarter and year ended December 31, 2022:

  Quarter Ended December 31, 2022   Year Ended December 31, 2022
Revenue         8.2         %           7.0         %
Expense         4.2         %           5.8         %
NOI(1)         10.4         %           7.7         %

UK Operations Results

During 2022, the Company expanded its MH segment into the United Kingdom ("UK") with the acquisition of Park Holidays, the second largest owner and operator of holiday parks in the UK. UK Operations contributed $23.3 million of NOI(1) in the quarter ended December 31, 2022, and contributed $128.3 million of NOI(1) in the period from date of acquisition to December 31, 2022. On a constant currency basis, UK Operations contributed $27.0 million of NOI(1) in the quarter ended December 31, 2022, and contributed $143.9 million of NOI(1) in the period from date of acquisition to December 31, 2022. Refer to page 13 for additional information regarding UK operating results.

Hurricane Ian Update

As previously announced, the Company's properties in Florida sustained damage from Hurricane Ian in September 2022. Complete asset impairments occurred at three communities in the Fort Myers area, which will require redevelopment. Charges, net of expected insurance recoveries, of $17.3 million were recognized as "Catastrophic event-related charges, net" in the Consolidated Statements of Operations for the year ended December 31, 2022. After quarter end, the Company received a reimbursement from its insurer for $3.5 million related to losses from debris and tree removal, common area repairs and flooding damage.

The foregoing estimates are based on current information available, and the Company continues to assess these estimates. The actual final impairment, insurance recoveries and net charges could vary from these estimates. Any changes to these estimates will be recognized in the period(s) in which they are determined.

INVESTMENT ACTIVITY

Acquisitions

Acquisitions totaled $66.7 million during the quarter ended December 31, 2022, including one MH community, one RV community and two marinas in the United States and one MH community in the UK. Refer to page 17 for additional detail on acquisitions and dispositions.

Development and Expansion Activities

During the year ended December 31, 2022, the Company:

  • Acquired six land parcels located in the United States and UK for the potential development of over 1,300 sites, for an aggregate purchase price of $26.2 million.

  • Constructed over 270 sites in the fourth quarter, bringing the total for the year to more than 840 sites at six ground-up development properties. This includes over 445 sites at two development properties acquired in the second quarter.

  • Expanded existing communities by nearly 980 sites, bringing the total for the year to nearly 1,160 sites at 11 expansion properties.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of December 31, 2022, the Company had $7.2 billion in debt outstanding with a weighted average interest rate of 3.8% and a weighted average maturity of 7.4 years. At December 31, 2022, the Company's net debt to trailing twelve-month Recurring EBITDA(1) ratio was 6.0 times.

During and subsequent to the quarter ended December 31, 2022, the Company completed previously announced secured financings on 23 properties that raised proceeds of $311.0 million. The loans mature between February 13, 2026 and December 15, 2029 and have fixed interest rates of 4.5% to 5.0%. The Company used the proceeds to repay borrowings outstanding under its senior credit facility.

Subsequent to the quarter ended December 31, 2022, the Company issued $400.0 million of senior unsecured notes with an interest rate of 5.7% and a 10-year term. The Company used net proceeds of $395.3 million, to repay borrowings outstanding under its unsecured revolving line of credit.

2023 Distributions

The Company's Board of Directors has approved setting the 2023 annual distribution rate at $3.72 per common share and unit, an increase of $0.20, or 5.7%, over the current annual dividend rate of $3.52 per common share and unit for 2022. This increase will begin with the first quarter distribution to be paid in April 2023. 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.

2023 GUIDANCE

Establishing Full-Year and First Quarter 2023 Guidance

The Company is establishing full-year and first quarter 2023 guidance for diluted EPS and Core FFO(1) per Share as follows:

Reconciliation of Diluted EPS to Core FFO(1) per Share   First Quarter Ending
March 31, 2023
  Full-Year Ending
December 31, 2023
    Low   High   Low   High
Diluted EPS   $         (0.03 )   $         0.02             $         2.50             $         2.70          
Depreciation and amortization             1.24                       1.24                       5.02                       5.02          
Gain on sale of assets             (0.07 )             (0.07 )             (0.32 )             (0.32 )
FFO(1) per Share   $         1.14             $         1.19             $         7.20             $         7.40          
Business combination expense and other acquisition related costs             0.01                       0.01                       0.03                       0.03          
Other adjustments(a)             —                       —                       (0.01 )             (0.01 )
Core FFO(1)(b) per Share   $         1.15             $         1.20             $         7.22             $         7.42          

(a) Other adjustments include the same categories presented in the table that reconciles Net income attributable to SUI common shareholders to FFO on page 6.

(b) The Company's initial guidance translates forecasted results from operations in Canada, Australia and the UK using the relevant exchange rates in effect on December 31, 2022, which are provided in the 2023 Guidance Assumptions for Consolidated Portfolio table.

2023 Guidance Assumptions for Consolidated Portfolio
        Expected %
Total Expected NOI(1) from Real Property:       Change in 2023
Revenues        
Real property (excluding transient)       9.8% - 10.2%
Real property (transient)       0.9% - 2.1%
Revenues from real property       8.1% - 8.7%
Total property operating expenses       13.5% - 13.9%
Total NOI(1) from real property       4.5% - 5.7%
         
Expected Ranges:       (in millions)
Service, retail, dining and entertainment NOI(1)       $49.5 - $52.1
Interest income, brokerage commissions and other revenues, net       $82.6 - $84.8
General and administrative expenses       $256.5 - $261.6
         
UK Operations:        
NOI(1) from real property and home sales(a)       $155.5 - $165.1
         
Other MH / RV Operational Guidance - North America:       # of sites
Increase in revenue producing sites       2,800 - 3,100
Vacant site additions from expansions and ground-up developments       1,000 - 1,300
         
Exchange rates in effect at:       December 31, 2022
U.S. Dollar ("USD") / Pound Sterling ("GBP")       1.21
USD / Canadian Dollar ("CAD")       0.74
USD / Australian Dollar ("AUS")       0.68

(a) UK NOI(1) from real property is included in Total NOI(1) from real property.

The Company expects total Same Property NOI(1) to increase 4.9% - 5.9% during the year ending December 31, 2023, inclusive of 3.3% - 4.4% total Same Property NOI(1) growth during the first quarter ending March 31, 2023.

2023 Guidance Assumptions for Same Property(1)(a) Portfolio   FY 2022
(in millions)
  Expected %
Change in 2023
MH NOI(1) (289 properties)   $ 570.3   4.2% - 5.0%
RV NOI(1) (163 properties)   $ 281.0   5.1% - 6.4%
Marina NOI(1) (120 properties)   $ 217.0   6.3% - 7.7%
         
Total Same Property Portfolio (572 properties)        
Income from real property(b)   $ 1,608.9   6.6% - 7.0%
Total property operating expenses(b)(c)   $ 540.6   9.1% - 10.0%
NOI(1)   $ 1,068.3   4.9% - 5.9%
         
2023 Average Rental Rate Increases:       Guidance(d)
MH       6.2% - 6.4%
Annual RV       7.7% - 7.9%
Marina       7.3% - 7.6%
         
MH - UK Operations       7.2% - 7.4%

(a) The amounts in the table reflect constant currency, as Canadian currency figures included within the 2022 actual amounts have been translated at the assumed exchange rate used for 2023 guidance.

(b) Total Same Property results net $101.3 million and $105.5 million of utility revenue against the related utility expense in property operating expenses for 2022 actual results and 2023 guidance, respectively.

(c) FY 2022 results exclude $1.3 million of expense incurred at recently acquired properties in order to bring them up to the Company's operating standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy.

(d) Rental rate guidance for 2023 is unchanged from the ranges provided by the Company in its third quarter 2022 supplemental information package.

Seasonality   1Q23   2Q23   3Q23   4Q23
Same Property NOI(1)                
MH   25 %   25 %   25 %   25 %
RV   15 %   26 %   42 %   17 %
Marina   19 %   27 %   30 %   24 %
Total Same Property   21 %   26 %   30 %   23 %
NOI(1) from UK Operations   16 %   29 %   38 %   17 %
Consolidated EBITDA(1)   19 %   27 %   33 %   21 %
Core FFO(1) per Share   16 %   27 %   36 %   21 %

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions, dispositions and capital markets activity completed through February 22, 2023, and the effect of a property disposition under contract expected to close in March 2023. These estimates exclude all other prospective acquisitions, dispositions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter results will be held on Thursday, February 23, 2023 at 11:00 A.M. (ET). To participate, call toll-free at (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 9, 2023 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 13734720. The conference call will be available live on the Company's website located at www.suncommunities.com. The replay will also be available on the website.

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 (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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 document 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 and uncertainties, both general and specific to the matters discussed in this document, some of which are beyond the Company's control. These risks and uncertainties 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 described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 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 and related restrictions on business operations;
  • Changes in general economic conditions, including inflation, deflation and energy costs, the real estate industry and the markets within which the Company operates;
  • Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
  • The Company's liquidity and refinancing demands;
  • The Company's ability to obtain or refinance maturing debt;
  • The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes;
  • Availability of capital;
  • Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pound sterling;
  • 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 estate 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 or incorporated by reference into this document, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company 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 the Company's behalf are qualified in their entirety by these cautionary statements.

Company Overview and Investor Information

 

The Company

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2022, the Company owned, operated, or had an interest in a portfolio of 669 developed MH, RV and Marina properties comprising over 179,700 developed sites and approximately 47,800 wet slips and dry storage spaces in the United States, the United Kingdom and Canada.

For more information about the Company, please visit www.suncommunities.com.

Company Contacts  
   
Management: Investor Relations:
  • Gary A. Shiffman, Chairman, President and CEO
Sara Ismail, Vice President
  • Fernando Castro-Caratini, EVP and CFO
(248) 208-2500
  • Bruce D. Thelen, EVP and COO
investorrelations@suncommunities.com


Corporate Debt Ratings  
Moody's S&P:
Baa3 | Stable BBB | Stable


Equity Research Coverage        
Bank of America Merrill Lynch   Joshua Dennerlein   joshua.dennerlein@bofa.com
Barclays   Anthony Powell   anthony.powell@barclays.com
BMO Capital Markets   John Kim   jp.kim@bmo.com
Citi Research   Nicholas Joseph   nicholas.joseph@citi.com
Evercore ISI   Samir Khanal   samir.khanal@evercoreisi.com
    Steve Sakwa   steve.sakwa@evercoreisi.com
Green Street Advisors   John Pawlowski   jpawlowski@greenstreetadvisors.com
JMP Securities   Aaron Hecht   ahecht@jmpsecurities.com
RBC Capital Markets   Brad Heffern   brad.heffern@rbccm.com
Robert W. Baird & Co.   Wesley Golladay   wgolladay@rwbaird.com
Truist Securities   Anthony Hau   anthony.hau@truist.com
UBS   Michael Goldsmith   michael.goldsmith@ubs.com
Wolfe Research   Andrew Rosivach   arosivach@wolferesearch.com
    Keegan Carl   kcarl@wolferesearch.com

Financial and Operating Highlights

(amounts in millions, except for *)

 


  Quarter Ended
  12/31/2022   9/30/2022   6/30/2022   3/31/2022   12/31/2021
Financial Information                  
Basic Earnings per share ("EPS")* $         0.04           $         1.32           $         0.61           $         0.01           $         0.11        
Diluted EPS* $         0.04           $         1.32           $         0.61           $         0.01           $         0.11        
                   
Cash distributions declared per common share* $         0.88           $         0.88           $         0.88           $         0.88           $         0.83        
                   
FFO(1)(4) per Share* $         1.02           $         2.54           $         1.95           $         1.28           $         1.28        
Core FFO(1)(4) per Share* $         1.33           $         2.65           $         2.02           $         1.34           $         1.31        
Constant Currency Core FFO(1)(4) per Share* $         1.34           $         2.71           $         2.04           $         1.34           $         1.31        
                   
Recurring EBITDA(1) $         236.3           $         408.1           $         328.4           $         221.0           $         208.6        
Recurring EBITDA(1) (TTM) / Interest 5.2x   5.7x   5.9x   6.2x   6.2x
                   
Balance Sheet                  
Total assets $         17,084.2           $         16,484.6           $         16,397.8           $         13,914.2           $         13,494.1        
Total debt $         7,197.2           $         6,711.0           $         6,930.9           $         6,076.5           $         5,671.8        
Total liabilities $         8,992.8           $         8,354.6           $         8,566.3           $         6,980.7           $         6,474.6        


Operating Information*                  
Properties                  
MH         353             350             349             293             292  
RV         182             181             182             182             185  
Marina         134             131             130             128             125  
Total         669             662             661             603             602  
                   
United States and Canada                  
Manufactured home sites         99,977             99,428             99,185             98,279             98,621  
Annual RV sites         30,333             32,026             31,768             31,121             30,540  
Transient RV sites         28,038             27,945             28,682             29,267             29,847  
Total sites         158,348             159,399             159,635             158,667             159,008  
Marina wet slips and dry storage spaces(a)         47,823             46,185             45,905             45,725             45,155  
                   
MH occupancy         95.9         %           96.2         %           96.3         %           96.7         %           96.6         %
Annual RV occupancy         100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Blended MH and annual RV occupancy         96.8         %           97.1         %           97.2         %           97.5         %           97.4         %
                   
United Kingdom                  
Manufactured home sites         18,227             17,733             17,112     616     N/A
Transient RV sites         3,143             3,203             3,306             —             N/A
Total sites         21,370             20,936             20,418             616                     —          
MH occupancy         89.0         %           91.7         %           91.4         %           94.8         %   N/A


MH and RV Revenue Producing Site Net Gains(5)*
(excluding UK Operations)
                 
MH net leased sites         346           122           132           65           321
RV net leased sites         267           567           818           605           489
Total net leased sites         613           689           950           670           810

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

Portfolio Overview as of December 31, 2022

 


    MH & RV Properties
    Properties

  MH & Annual RV   RV Transient Sites

  Total MH and RV Sites

  Sites for Development(b)

Location     Sites   Occupancy %(a)      
Florida           129                   39,618                   97.4         %           4,660                   44,278                   3,539        
Michigan           84                   32,471                   96.7         %           749                   33,220                   1,337        
California           37                   6,861                   98.6         %           1,936                   8,797                   942        
Texas           31                   8,778                   94.3         %           2,566                   11,344                   2,015        
Ontario, Canada           16                   4,611                   100.0         %           628                   5,239                   1,473        
Connecticut           16                   1,907                   93.4         %           98                   2,005                   —        
Maine           16                   2,548                   95.1         %           1,108                   3,656                   202        
Arizona           13                   4,537                   91.3         %           986                   5,523                   6        
Indiana           12                   3,155                   96.6         %           1,023                   4,178                   177        
New Jersey           11                   2,817                   100.0         %           1,225                   4,042                   262        
Colorado           11                   2,799                   88.2         %           987                   3,786                   1,493        
Virginia           10                   1,286                   99.8         %           2,163                   3,449                   752        
New York           10                   1,497                   98.5         %           1,443                   2,940                   778        
New Hampshire           10                   1,728                   100.0         %           652                   2,380                   111        
Other           74                   15,697                   97.9         %           7,814                   23,511                   1,220        
North America Total           480                   130,310                   96.8         %           28,038                   158,348                   14,307        
United Kingdom           55                   18,227                   89.0         %           3,143                   21,370                   1,888        
Total           535                   148,537                   95.9         %           31,181                   179,718                   16,195        

(a) As of December 31, 2022, total portfolio MH occupancy was 94.8% inclusive of the impact of over 2,300 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0%.

(b) Total sites for development were comprised of 54% for expansion, 25% for greenfield development and 21% for redevelopment.

    Marina    
    Properties

      Wet Slips and Dry Storage Spaces

   
Location            
Florida           21                       5,054            
Rhode Island           12                       3,421            
Connecticut           11                       3,325            
California           11                       5,705            
New York           9                       3,018            
Maryland           9                       2,632            
Massachusetts           9                       2,520            
Other           52                       22,148            
Total           134                       47,823            


    Properties

      Sites, Wet Slips and Dry Storage Spaces

   
             
Total Portfolio           669                       227,541            

Consolidated Balance Sheets
(amounts in millions)

 


       
  December 31, 2022   December 31, 2021
Assets      
Land $         4,322.3             $         2,556.3          
Land improvements and buildings           10,903.4                       9,958.3          
Rental homes and improvements           645.2                       591.7          
Furniture, fixtures and equipment           839.0                       656.4          
Investment property           16,709.9                       13,762.7          
Accumulated depreciation           (2,738.9 )             (2,337.2 )
Investment property, net           13,971.0                       11,425.5          
Cash, cash equivalents and restricted cash           90.4                       78.2          
Marketable securities           127.3                       186.9          
Inventory of manufactured homes           202.7                       51.1          
Notes and other receivables, net           617.3                       469.6          
Goodwill           1,018.4                       495.4          
Other intangible assets, net           402.0                       306.8          
Other assets, net           655.1                       480.6          
Total Assets $         17,084.2             $         13,494.1          
Liabilities      
Secured debt $         3,217.8             $         3,380.7          
Unsecured debt           3,979.4                       2,291.1          
Distributions payable           111.3                       98.4          
Advanced reservation deposits and rent           352.1                       242.8          
Accrued expenses and accounts payable           396.3                       237.5          
Other liabilities           935.9                       224.1          
Total Liabilities           8,992.8                       6,474.6          
Commitments and contingencies      
Temporary equity           202.9                       288.9          
Shareholders' Equity      
Common stock           1.2                       1.2          
Additional paid-in capital           9,549.7                       8,175.6          
Accumulated other comprehensive income / (loss)           (9.9 )             3.1          
Distributions in excess of accumulated earnings           (1,731.2 )             (1,556.0 )
Total SUI shareholders' equity           7,809.8                       6,623.9          
Noncontrolling interests      
Common and preferred OP units           78.7                       86.8          
Consolidated entities           —                       19.9          
Total noncontrolling interests           78.7                       106.7          
Total Shareholders' Equity           7,888.5                       6,730.6          
Total Liabilities, Temporary Equity and Shareholders' Equity $         17,084.2             $         13,494.1          

Consolidated Statements of Operations
(amounts in millions, except for per share amounts)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   % Change   December 31, 2022   December 31, 2021   % Change
Revenues                      
Real property (excluding transient) $         390.8             $         338.5                     15.5         %   $         1,548.9             $         1,316.8                     17.6         %
Real property - transient           49.8                       45.8                     8.7         %             353.3                       281.4                     25.6         %
Home sales           107.7                       65.1                     65.4         %             465.8                       280.2                     66.2         %
Service, retail, dining and entertainment           108.6                       80.3                     35.2         %             531.6                       351.8                     51.1         %
Interest           9.9                       4.2                     135.7         %             35.2                       12.2                     188.5         %
Brokerage commissions and other, net           7.5                       8.5                     (11.8)        %             34.9                       30.2                     15.6         %
Total Revenues           674.3                       542.4                     24.3         %             2,969.7                       2,272.6                     30.7         %
Expenses                      
Property operating and maintenance           155.4                       125.6                     23.7         %             624.6                       500.8                     24.7         %
Real estate tax           27.4                       24.4                     12.3         %             110.6                       94.8                     16.7         %
Home costs and selling           76.0                       48.9                     55.4         %             311.2                       205.8                     51.2         %
Service, retail, dining and entertainment           109.4                       80.3                     36.2         %             472.7                       307.9                     53.5         %
General and administrative           69.8                       54.6                     27.8         %             256.8                       181.3                     41.6         %
Catastrophic event-related charges, net           5.2                       (0.9 )   N/M             17.5                       2.2             N/M
Business combinations           0.8                       0.4                     100.0         %             24.7                       1.4             N/M
Depreciation and amortization           154.8                       144.6                     7.1         %             604.8                       522.7                     15.7         %
Loss on extinguishment of debt           —                       —             N/A             4.4                       8.1                     (45.7)        %
Interest           67.6                       42.4                     59.4         %             229.8                       158.6                     44.9         %
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.1                     —         %             4.2                       4.2                     —         %
Total Expenses           667.5                       521.4                     28.0         %             2,661.3                       1,987.8                     33.9         %
Income Before Other Items           6.8                       21.0                     (67.6)        %             308.4                       284.8                     8.3         %
Gain / (loss) on remeasurement of marketable securities           20.6                       (9.7 )   N/M             (53.4 )             33.5             N/M
Gain / (loss) on foreign currency exchanges           (16.3 )             3.4             N/M             5.4                       (3.7 )   N/M
Gain / (loss) on dispositions of properties           (0.3 )             —             N/A             12.2                       108.1                     (88.7)        %
Other expense, net(6)           (4.7 )             (2.1 )           (123.8)        %             (2.1 )             (12.1 )           (82.6)        %
Gain / (loss) on remeasurement of notes receivable           (0.9 )             0.1             N/M             (0.8 )             0.7             N/M
Income / (loss) from nonconsolidated affiliates           (0.9 )             1.1             N/M             2.9                       4.0                     (27.5)        %
Loss on remeasurement of investment in nonconsolidated affiliates           (2.8 )             (0.1 )   N/M             (2.7 )             (0.2 )   N/M
Current tax benefit / (expense)           2.2                       0.2             N/M             (10.3 )             (1.2 )           (758.3)        %
Deferred tax benefit / (expense)           0.3                       1.0                     (70.0)        %             4.2                       (0.1 )   N/M
Net Income           4.0                       14.9                     (73.2)        %             263.8                       413.8                     (36.2)        %
Less: Preferred return to preferred OP units / equity interests           2.4                       3.1                     (22.6)        %             11.0                       12.1                     (9.1)        %
Less: Income / (loss) attributable to noncontrolling interests           (3.1 )             (1.1 )           (181.8)        %             10.8                       21.5                     (49.8)        %
Net Income Attributable to SUI Common Shareholders $         4.7             $         12.9                     (63.6)        %   $         242.0             $         380.2                     (36.3)        %
                       
Weighted average common shares outstanding - basic(7)           123.1                       115.2                     6.9         %             120.2                       112.6                     6.7         %
Weighted average common shares outstanding - diluted(4)(7)           125.8                       115.7                     8.7         %             122.9                       115.1                     6.8         %
                       
Basic EPS $         0.04             $         0.11                     (63.6)        %   $         2.00             $         3.36                     (40.5)        %
Diluted EPS(4) $         0.04             $         0.11                     (63.6)        %   $         2.00             $         3.36                     (40.5)        %

N/M = Percentage change is not meaningful.

N/A = Percentage change is not applicable.

Reconciliation of Net Income Attributable to SUI Common Shareholders to FFO(1)
(amounts in millions, except for per share data)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Net Income Attributable to SUI Common Shareholders $         4.7             $         12.9             $         242.0             $         380.2          
Adjustments              
Depreciation and amortization           154.0                       144.5                       602.6                       521.9          
Depreciation on nonconsolidated affiliates           —                       —                       0.1                       0.1          
(Gain) / loss on remeasurement of marketable securities           (20.6 )             9.7                       53.4                       (33.5 )
Loss on remeasurement of investment in nonconsolidated affiliates           2.8                       0.1                       2.7                       0.2          
(Gain) / loss on remeasurement of notes receivable           0.9                       (0.1 )             0.8                       (0.7 )
(Gain) / loss on dispositions of properties           0.3                       —                       (12.2         )             (108.1 )
Add: Returns on preferred OP units           0.5                       0.8                       9.5                       4.0          
Add: Income / (loss) attributable to noncontrolling interests           (2.5 )             (1.3 )             10.4                       14.7          
Gain on dispositions of assets, net           (10.7 )             (14.2 )             (54.9         )             (60.5 )
FFO(1)(4) $         129.4             $         152.4             $         854.4             $         718.3          
               
Adjustments              
Business combination expense and other acquisition related costs(8)           7.3                       3.3                       47.4                       10.0          
Loss on extinguishment of debt           —                       —                       4.4                       8.1          
Catastrophic event-related charges, net           5.2                       (0.9 )             17.5                       2.2          
Loss of earnings - catastrophic event-related charges, net           4.6                       (0.2 )             4.8                       0.2          
(Gain) / loss on foreign currency exchanges           16.3                       (3.4 )             (5.4         )             3.7          
Other adjustments, net(9)           5.5                       4.7                       0.4                       16.2          
Core FFO(1)(4) $         168.3             $         155.9             $         923.5             $         758.7          
               
Foreign currency translation impact(a)           1.7                       —                       11.0                       —          
Constant Currency Core FFO(1)(4) $         170.0             $         155.9             $         934.5             $         758.7          
               
Weighted Average Common Shares Outstanding - Diluted(7)           126.5                       119.3                       125.6                       116.5          
               
FFO(1)(4) per Share $         1.02             $         1.28             $         6.80             $         6.16          
               
Core FFO(1)(4) per Share $         1.33             $         1.31             $         7.35             $         6.51          
               
Constant Currency Core FFO(1)(4) per Share $         1.34             $         1.31             $         7.44             $         6.51          

(a) The Company calculated the foreign currency translation impact by comparing the actual weighted average foreign currency rates with the weighted average foreign currency rates used for guidance, as follows:

  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2022
  Actual   Guidance   Actual   Guidance
U.S. Dollars per Pounds Sterling $         1.1452           $         1.330           $         1.2041           $         1.330        
U.S. Dollars per Canadian Dollars $         0.7380           $         0.770           $         0.7692           $         0.770        
U.S. Dollars per Australian Dollars $         0.6463           $         0.756           $         0.7282           $         0.756        

Reconciliation of Net Income Attributable to SUI Common Shareholders to NOI(1)
(amounts in millions)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Net Income Attributable to SUI Common Shareholders $         4.7             $         12.9             $         242.0             $         380.2          
Interest income           (9.9 )             (4.2 )             (35.2 )             (12.2 )
Brokerage commissions and other revenues, net           (7.5 )             (8.5 )             (34.9 )             (30.2 )
General and administrative           69.8                       54.6                       256.8                       181.3          
Catastrophic event-related charges, net           5.2                       (0.9 )             17.5                       2.2          
Business combination expense           0.8                       0.4                       24.7                       1.4          
Depreciation and amortization           154.8                       144.6                       604.8                       522.7          
Loss on extinguishment of debt           —                       —                       4.4                       8.1          
Interest expense           67.6                       42.4                       229.8                       158.6          
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.1                       4.2                       4.2          
(Gain) / loss on remeasurement of marketable securities           (20.6 )             9.7                       53.4                       (33.5 )
(Gain) / loss on foreign currency exchanges           16.3                       (3.4 )             (5.4 )             3.7          
(Gain) / loss on disposition of property           0.3                       —                       (12.2 )             (108.1 )
Other expense, net(6)           4.7                       2.1                       2.1                       12.1          
(Gain) / loss on remeasurement of notes receivable           0.9                       (0.1 )             0.8                       (0.7 )
(Income) / loss from nonconsolidated affiliates           0.9                       (1.1 )             (2.9 )             (4.0 )
Loss on remeasurement of investment in nonconsolidated affiliates           2.8                       0.1                       2.7                       0.2          
Current tax expense / (benefit)           (2.2 )             (0.2 )             10.3                       1.2          
Deferred tax expense / (benefit)           (0.3 )             (1.0 )             (4.2 )             0.1          
Preferred return to preferred OP units / equity interests           2.4                       3.1                       11.0                       12.1          
Add: Income / (loss) attributable to noncontrolling interests           (3.1 )             (1.1 )             10.8                       21.5          
NOI(1) $         288.7             $         250.5             $         1,380.5             $         1,120.9          


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Real Property NOI(1) $         257.8             $         234.3           $         1,167.0           $         1,002.6        
Home Sales NOI(1)           31.7                       16.2                     154.6                     74.4        
Service, retail, dining and entertainment NOI(1)           (0.8 )             —                     58.9                     43.9        
NOI(1) $         288.7             $         250.5           $         1,380.5           $         1,120.9        

Reconciliation of Net Income Attributable to SUI Common Shareholders to Recurring EBITDA(1)
(amounts in millions)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Net Income Attributable to SUI Common Shareholders $         4.7             $         12.9             $         242.0             $         380.2          
Adjustments              
Depreciation and amortization           154.8                       144.6                       604.8                       522.7          
Loss on extinguishment of debt           —                       —                       4.4                       8.1          
Interest expense           67.6                       42.4                       229.8                       158.6          
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.1                       4.2                       4.2          
Current tax (benefit) / expense           (2.2 )             (0.2 )             10.3                       1.2          
Deferred tax (benefit) / expense           (0.3 )             (1.0 )             (4.2 )             0.1          
(Income) / loss from nonconsolidated affiliates           0.9                       (1.1 )             (2.9 )             (4.0 )
Less: (Gain) / loss on dispositions of properties           0.3                       —                       (12.2 )             (108.1 )
Less: Gain on dispositions of assets, net           (10.7 )             (14.2 )             (54.9 )             (60.5 )
EBITDAre(1) $         216.2             $         184.5             $         1,021.3             $         902.5          
Adjustments              
Catastrophic event-related charges, net           5.2                       (0.9 )             17.5                       2.2          
Business combination expense           0.8                       0.4                       24.7                       1.4          
(Gain) / loss on remeasurement of marketable securities           (20.6 )             9.7                       53.4                       (33.5 )
(Gain) / loss on foreign currency transactions           16.3                       (3.4 )             (5.4 )             3.7          
Other expense, net(6)           4.7                       2.1                       2.1                       12.1          
(Gain) / loss on remeasurement of notes receivable           0.9                       (0.1 )             0.8                       (0.7 )
Loss on remeasurement of investment in nonconsolidated affiliates           2.8                       0.1                       2.7                       0.2          
Preferred return to preferred OP units / equity interests           2.4                       3.1                       11.0                       12.1          
Add: Income / (loss) attributable to noncontrolling interests           (3.1 )             (1.1 )             10.8                       21.5          
Add: Gain on dispositions of assets, net           10.7                       14.2                       54.9                       60.5          
Recurring EBITDA(1) $         236.3             $         208.6             $         1,193.8             $         982.0          

Same Property Summary(2) - MH / RV
(amounts in millions)

 


  Three Months Ended
  Total Same Property - MH / RV   MH   RV
  December 31, 2022   December 31, 2021   % Change(a)   December 31, 2022   December 31, 2021   % Change(a)   December 31, 2022   December 31, 2021   % Change(a)
Financial Information                                  
Revenue                                  
Real property (excluding transient and other) $         237.1           $         221.7                   7.0         %   $         187.6           $         178.5                   5.1         %   $         49.5           $         43.1                   14.7         %
Real property - transient           35.9                     37.8                   (5.1)        %             0.3                     0.3                   25.5         %             35.6                     37.6                   (5.3)        %
Other           7.9                     8.3                   (5.6)        %             4.3                     4.8                   (11.2)        %             3.6                     3.6                   1.9         %
Total Operating           280.9                     267.8                   4.9         %             192.2                     183.6                   4.7         %             88.7                     84.3                   5.3         %
Expense                                  
Property Operating(10)(11)           95.9                     90.6                   5.8         %             52.7                     47.1                   12.0         %             43.2                     43.6                   (0.9)        %
Real Property NOI(1) $         185.0           $         177.2                   4.4         %   $         139.5           $         136.5                   2.2         %   $         45.5           $         40.7                   11.8         %

(a) Percentages are calculated based on unrounded numbers.

                                   
  Year Ended
  Total Same Property - MH / RV   MH   RV
  December 31, 2022   December 31, 2021   % Change(a)   December 31, 2022   December 31, 2021   % Change(a)   December 31, 2022   December 31, 2021   % Change(a)
Financial Information                                  
Revenue                                  
Real property (excluding transient and other) $         929.3           $         873.0                   6.4         %   $         739.9           $         707.4                   4.6         %   $         189.4           $         165.6                   14.4         %
Real property - transient           245.0                     237.5                   3.1         %             1.2                     1.5                   (14.8)        %             243.8                     236.1                   3.3         %
Other           43.5                     41.9                   3.9         %             19.8                     19.0                   3.7         %             23.7                     22.8                   4.0         %
Total Operating           1,217.8                     1,152.4                   5.7         %             760.9                     727.9                   4.5         %             456.9                     424.5                   7.6         %
Expense                                  
Property Operating(10)(11)           398.1                     374.9                   6.2         %             202.7                     187.5                   8.1         %             195.4                     187.4                   4.2         %
Real Property NOI(1) $         819.7           $         777.5                   5.4         %   $         558.2           $         540.4                   3.3         %   $         261.5           $         237.1                   10.3         %

(a) Percentages are calculated based on unrounded numbers.
Same Property Summary(2) - MH / RV (Continued)
(amounts in millions)

 


  As of        
  December 31, 2022   December 31, 2021   Change   % Change
Other Information              
Number of properties(a)           421                       421                       —              
               
MH occupancy           97.1         %            
RV occupancy           100.0         %            
MH & RV blended occupancy(3)           97.8         %            
               
Adjusted MH occupancy(3)           98.2         %            
Adjusted RV occupancy(3)           100.0         %            
Adjusted MH & RV blended occupancy(3)           98.6         %             96.8         %             1.8         %    
               
Sites available for development           7,092                       7,670                       (578         )    
               
Monthly base rent per site - MH $         635             $         607             $         28             4.6%(13)
Monthly base rent per site - RV(12) $         555             $         516             $         39             7.6%(13)
Monthly base rent per site - Total(12) $         617             $         587             $         30             5.0%(13)
               
Monthly base rent per site - MH Rental Program $         1,225             $         1,117             $         108                     9.7         %

(a) Financial results from properties disposed of, and the three impaired communities in the Fort Myers, Florida area related to Hurricane Ian, during the year have been removed from Same Property reporting.

Same Property Summary - Marina
(amounts in millions)

 


  Three Months Ended
  December 31, 2022   December 31, 2021   % Change(a)
Revenue          
Real property (excluding transient and other) $         54.0           $         50.0                   8.2         %
Real property - transient           2.9                     2.7                   5.1         %
Other           2.8                     2.5                   11.2         %
Total Operating           59.7                     55.2                   8.2         %
Expense          
Property Operating(10)           20.6                     19.8                   4.2         %
Real Property NOI(1) $         39.1           $         35.4                   10.4         %

(a) Percentages are calculated based on unrounded numbers.

           
  Year Ended
  December 31, 2022   December 31, 2021   % Change(a)
Revenue          
Real property (excluding transient and other) $         221.4           $         205.6                   7.7         %
Real property - transient           12.4                     13.0                   (5.1)        %
Other           12.3                     11.4                   8.7         %
Total Operating           246.1                     230.0                   7.0         %
Expense          
Property Operating(10)           84.1                     79.5                   5.8         %
Real Property NOI(1) $         162.0           $         150.5                   7.7         %

(a) Percentages are calculated based on unrounded numbers.

           
  As of
  December 31, 2022   December 31, 2021   % Change
Other Information          
Number of properties         101                   101                   —         %
Wet slip and dry storage spaces         35,546                   35,744                   (0.6)        %

Acquisitions and Other Summary (excluding UK Operations)(14)
(amounts in millions, except for statistical data)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2022
Revenues      
Real property (excluding transient and other) $         35.3   $         145.8          
Real property - transient           7.2             57.4          
Other           3.4             23.2          
Total Operating           45.9             226.4          
Expenses      
Property Operating(10)           22.6             92.1          
Real Property NOI(1) $         23.3   $         134.3          
       
Other Information     December 31, 2022
Number of properties               92          
MH and RV Developed sites               6,961          
MH and RV Occupied sites               5,559          
MH and RV Occupancy %               79.9         %
Transient sites               7,689          
Wet slips and dry storage spaces               12,277          

UK Operations Summary
(amounts in millions, except for statistical data)

 


  Three Months Ended   YTD Since Acquisition
December 31, 2022

  December 31, 2022  
Revenues      
Real property (excluding transient and other) $         21.9     $         60.0  
Real property - transient           3.8               38.5  
Other           0.2               1.2  
Total Operating           25.9               99.7  
Expenses      
Property Operating(10)           15.5               48.7  
Real Property NOI(1)           10.4               51.0  
       
Home sales      
Revenue           45.7               190.4  
Cost of home sales           26.7               102.4  
Home selling expenses           1.9               5.5  
NOI(1)           17.1               82.5  
       
Retail, dining and entertainment      
Revenue           5.0               32.8  
Expense           9.2               38.0  
Net Operating Loss           (4.2 )             (5.2 )
       
UK Operations NOI(1) $         23.3     $         128.3  
Adjustment      
Foreign currency translation impact           3.7               15.6  
UK Operations NOI(1) - Constant Currency $         27.0     $         143.9  
       
Other information      
Number of properties               55  
Developed sites               18,227  
Occupied sites               16,223  
Occupancy %               89.0         %
Transient sites               3,143  
Sites available for development               1,888  
       
Home Sales      
New home sales volume           212               1,158  
Pre-owned home sales volume           345               1,019  
Total home sales volume           557               2,177  

Marina Segment Summary
(amounts in millions, except for statistical data)

 


    Three Months Ended   Year Ended
    December 31, 2022   December 31, 2021   % Change   December 31, 2022   December 31, 2021   % Change
Financial Information                        
Revenues                        
Real property (excluding transient and other)   $         81.7           $         70.1                   16.5         %   $         321.8           $         251.0                   28.2         %
Real property - transient             4.2                     3.4                   23.5         %             18.9                     14.8                   27.7         %
Other             4.5                     2.6                   73.1         %             23.8                     12.4                   91.9         %
Total Operating             90.4                     76.1                   18.8         %             364.5                     278.2                   31.0         %
Expenses                        
Property Operating(10)             32.1                     26.3                   22.1         %             121.4                     95.6                   27.0         %
Real Property NOI(1)             58.3                     49.8                   17.1         %             243.1                     182.6                   33.1         %
                         
Service, retail, dining and entertainment                        
Revenue             91.4                     68.8                   32.8         %             402.3                     270.8                   48.6         %
Expense             84.8                     65.0                   30.5         %             356.9                     241.1                   48.0         %
NOI(1)             6.6                     3.8                   73.7         %             45.4                     29.7                   52.9         %
                         
Marina NOI(1)   $         64.9           $         53.6                   21.1         %   $         288.5           $         212.3                   35.9         %
                         
Other information                        
Number of properties                         134             125                   7.2         %
Total wet slips and dry storage spaces                         47,823             45,155                   5.9         %

Home Sales Summary (excluding UK home sales)
(amounts in millions, except for *)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   % Change   December 31, 2022   December 31, 2021   % Change
Financial Information                      
New Homes                      
New home sales $         30.6             $         25.7                     19.1         %   $         126.0             $         114.9                     9.7         %
New home cost of sales           25.0                       21.3                     17.4         %             103.3                       94.1                     9.8         %
Gross profit – new homes           5.6                       4.4                     27.3         %             22.7                       20.8                     9.1         %
Gross margin % – new homes           18.3         %             17.1         %                 18.0         %             18.1         %    
Average selling price – new homes* $         196,154             $         172,389                     13.8         %   $         179,232             $         156,902                     14.2         %
                       
Pre-owned Homes                      
Pre-owned home sales $         31.4             $         39.4                     (20.3)        %   $         149.4             $         165.3                     (9.6)        %
Pre-owned home cost of sales           18.2                       22.6                     (19.5)        %             81.6                       93.0                     (12.3)        %
Gross profit – pre-owned homes           13.2                       16.8                     (21.4)        %             67.8                       72.3                     (6.2)        %
Gross margin % – pre-owned homes           42.0         %             42.4         %                 45.4         %             43.7         %    
Average selling price – pre-owned homes* $         60,618             $         50,153                     20.9         %   $         59,546             $         49,255                     20.9         %
                       
Total Home Sales                      
Revenue from home sales $         62.0             $         65.1                     (4.8)        %   $         275.4             $         280.2                     (1.7)        %
Cost of home sales           43.2                       43.9                     (1.6)        %             184.9                       187.1                     (1.2)        %
Home selling expenses           4.2                       5.0                     (16.0)        %             18.4                       18.7                     (1.6)        %
Home Sales NOI(1) $         14.6             $         16.2                     (9.9)        %   $         72.1             $         74.4                     (3.1)        %
                       
Other Information                      
New home sales volume*           156                       149                     4.7         %             703                       732                     (4.0)        %
Pre-owned home sales volume*           518                       784                     (33.9)        %             2,509                       3,356                     (25.2)        %
Total home sales volume*           674                       933                     (27.8)        %             3,212                       4,088                     (21.4)        %

Refer to the UK Operations Summary on page 13 for financial and statistical information related to the Company's home sales in the UK.

Rental Program Summary
(amounts in millions, except for *)

 


  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   % Change   December 31, 2022   December 31, 2021   % Change
Financial Information                      
Revenues $         31.9           $         32.3                   (1.2)        %   $         127.6           $         138.1                   (7.6)        %
Expenses           8.0                     4.4                   81.8         %             23.9                     19.7                   21.3         %
Rental Program NOI(1) $         23.9           $         27.9                   (14.3)        %   $         103.7           $         118.4                   (12.4)        %
                       
Other Information                      
Number of sold rental homes*           132                     272                   (51.5)        %             640                     1,071                   (40.2)        %
Number of occupied rentals, end of period*                       9,334                     9,870                   (5.4)        %
Investment in occupied rental homes, end of period             $         572.3           $         556.3                   2.9         %
Weighted average monthly rental rate, end of period*             $         1,221           $         1,112                   9.8         %

Operating Statistics for MH and Annual RVs (excluding UK Operations)

 


Locations   Resident Move-outs   Net Leased Sites   New Home Sales   Pre-owned Home Sales   Brokered
Re-sales
Florida           2,142                   1,249                     199                   321                   1,499        
Michigan           517                   337                     56                   1,326                   272        
Ontario, Canada           463                   248                     80                   21                   328        
Texas           522                   269                     84                   234                   81        
Arizona           118                   224                     49                   34                   152        
Indiana           59                   —                     7                   189                   25        
California           149                   25                     26                   11                   134        
Colorado           3                   26                     23                   36                   56        
Connecticut           36                   17                     38                   4                   42        
New York           78                   19                     11                   7                   12        
New Hampshire           1                   (12 )           7                   1                   51        
Maine           104                   64                     16                   32                   8        
New Jersey           173                   263                     2                   7                   8        
Virginia           147                   33                     —                   9                   9        
Other states           658                   160                     105                   277                   187        
Year Ended December 31, 2022           5,170                   2,922                     703                   2,509                   2,864        


Total For Year Ended   Resident Move-outs   Net Leased Sites   New Home Sales   Pre-owned Home Sales   Brokered
Re-sales
2021           5,276                   2,483                   732                   3,356                   3,528        
2020           5,365                   2,505                   570                   2,296                   2,557        


Percentage Trends   Resident Move-outs   Resident
Re-sales
2022           3.0         %           6.7         %
2021           2.7         %           8.4         %
2020           3.3         %           6.9         %

Acquisitions and Dispositions
(amounts in millions, except for *)

 


Property Name   Property Type   Number of Properties*   Sites, Wet Slips and Dry Storage Spaces*   Expansion or Development Sites*   State, Province or Country   Total Purchase/Sale Price   Month Acquired
ACQUISITIONS                            
Harrison Yacht Yard(a)   Marina           —                   21                   —           MD   $         5.8           January
Outer Banks   Marina           1                   196                   —           NC             5.0           January
Jarrett Bay Boatworks   Marina           1                   12                   —           NC             51.4           February
Tower Marine   Marina           1                   446                   —           MI             20.0           March
Sandy Bay   MH           1           730   456   UK             183.5           March
First Quarter 2022               4                   1,405                   456               $         265.7            
                             
Park Holidays   MH           40                   15,906                   608           UK   $         1,242.1           April
Christies Parks(a)   MH           —                   249                   —           UK             10.1           April
Bluewater   Marina           1                   200                   —           Multiple             25.0           April
Bluewater Yacht Sales(a)   Marina           —                   —                   —           Multiple             17.6           April
Bodmin Holiday Park   MH           1                   69                   —           UK             12.6           April
Kittery Point   Marina           1                   62                   —           ME             7.9           May
Spanish Trails MHC   MH           1                   195                   6           AZ             20.6           June
Pine Acre Trails   MH           1                   251                   603           TX             29.7           June
Bel Air Estates & Sunrise Estates   MH           2                   379                   —           CA             40.0           June
Park Leisure   MH           11                   2,914                   123           UK             223.4           June
Second Quarter 2022               58                   20,225                   1,340               $         1,629.0            
                             
Montauk Yacht Club   Marina           1                   232                   —           NY   $         190.0           July
Callaly Leisure(b)   MH           1                   380                   823           UK             23.9           September
Third Quarter 2022               2                   612                   823               $         213.9            
                             
Newhaven   MH           1           224           14           UK   $         6.2           October
Bayfront Marina   Marina           1           583           —           CA             12.0           November
Marina Bay Yacht Harbor   Marina           1                   800                              CA             16.0           December
Jellystone Lincoln   RV           1                   267                   —           DE             17.0           December
Norway Commons   MH           1                   231                   22           ME             15.5           December
Fourth Quarter 2022               5                   2,105                   36               $         66.7            
                             
Acquisitions in 2022               69                   24,347                   2,655               $         2,175.3            


DISPOSITIONS                            
Southern Pines   MH           1                   107                   —           FL   $         10.0           March
New Ranch   MH           1                   94                   —           FL             8.2           March
Country Squire   MH / RV           1                   122                   —           FL             11.3           March
First Quarter 2022               3                   323                                  $         29.5            
                             
The Sands RV & Golf Course   RV           1                   514                   —           CA   $         15.0           September
Third Quarter 2022               1                   514                                  $         15.0            
                             
Dispositions in 2022               4                   837                                  $         44.5            

(a) Combined with an existing property.

(b) Contains one development property.

Capital Expenditures and Investments
(amounts in millions, except for *)

 


  Year Ended
  December 31, 2022   December 31, 2021   December 31, 2020
  MH / RV   Marina   MH / RV   Marina   MH / RV   Marina
Recurring Capital Expenditures $         51.0           $         22.8           $         45.3           $         19.3           $         31.4           $         2.1        
Non-Recurring Capital Expenditures                      
Lot Modifications           39.1           N/A   $         28.8           N/A   $         29.4           N/A
Growth Projects           28.4                     71.1                     25.6                     51.4                     28.3                     —        
Rebranding           15.0           N/A             6.1           N/A   N/A   N/A
Acquisitions           2,788.1                     522.5                     944.3                     852.9                     571.9                     2,533.7        
Expansion and Development           247.9                     13.9                     191.8                     9.9                     248.2                     —        
Total Non-Recurring Capital Expenditures           3,118.5                     607.5                     1,196.6                     914.2                     877.8                     2,533.7        
Total $         3,169.5           $         630.3           $         1,241.9           $         933.5           $         909.2           $         2,535.8        
Other Information                      
Recurring Capex per Site / Slip / Dry Storage Space* $         397           $         582           $         371           $         491           $         265           N/A

The Company classifies its investments in properties into the following categories:

Recurring Capital Expenditures - Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities and marinas. Recurring capital expenditures at the Company's MH and RV properties include items such as: major road, driveway, pool improvements; clubhouse renovations; adding or replacing streetlights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at its marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.

Non-Recurring Capital Expenditures

Lot Modifications – Lot modification capital expenditures are incurred to modify the foundational structures required to set a new home after a previous home has been removed. These expenditures are necessary to create a revenue stream from a new site renter and often improve the quality of the community. Other lot modification expenditures include land improvements added to annual RV sites to aid in the conversion of transient RV guests to annual contracts.

Growth Projects – Growth projects consist of revenue generating or expense reducing activities at MH and RV communities, and marinas. This includes, but is not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.

Rebranding – Rebranding includes new signage at the Company's RV communities and costs of building an RV mobile application and updated website.

Acquisitions – Capital expenditures related to acquisitions represent the purchase price of existing operating properties and land parcels to develop expansions or new properties. Expenditures consist of capital improvements identified during due diligence that are necessary to bring the properties to the Company's operating standards. These costs for the year ended December 31, 2022, include $114.0 million at its MH and RV properties and $166.3 million at its marina properties. For the years ended December 31, 2021 and 2020, these costs were $75.8 million at its MH and RV properties and $100.7 million at its marina properties, and $40.6 million at its MH and RV properties, respectively. These include items such as: upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovation including larger decks, heaters and furniture; new maintenance facilities; lot modifications; and new signage including main signs and internal road signs. These are considered acquisition costs and although identified during due diligence, often require 24 to 36 months after closing to complete.

Expansions and Developments – Expansion and development expenditures consist primarily of construction costs such as roads, activities and amenities, and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at the Company's MH and RV communities. Expenditures also include costs to rebuild after damage has been incurred at MH, RV or marina properties, and research and development.

Recurring Capex per Site / Slip / Dry Storage Space – Average based on actual number of MH / RV sites and Marina wet slips and dry storage spaces associated with the recurring capital expenditures in each period.

Outstanding Securities and Capitalization
(shares and units in thousands; dollar amounts in millions, except for *)

 


Outstanding Securities - As of December 31, 2022
                   
  Number of Units / Shares Outstanding   Conversion Rate*   If Converted(a)   Issuance Price
Per Unit*
  Annual Distribution Rate
Common shares         124,045           N/A   N/A   N/A   $3.52^
                   
Convertible Securities                  
Common OP units         2,419                   1.0000                   2,419           N/A   Mirrors common share distributions
                   
Preferred OP Units                  
Series A-1         208                   2.4390                   506           $         100.00                   6.00         %
Series A-3         40                   1.8605                   75           $         100.00                   4.50         %
Series C         306                   1.1100                   340           $         100.00                   5.00         %
Series D         489                   0.8000                   391           $         100.00                   4.00         %
Series E         80                   0.6897                   55           $         100.00                   5.50         %
Series F         90                   0.6250                   56           $         100.00                   3.00         %
Series G         241                   0.6452                   155           $         100.00                   3.20         %
Series H         581                   0.6098                   354           $         100.00                   3.00         %
Series J         240                   0.6061                   145           $         100.00                   2.85         %
Total         2,275                       2,077                
Total convertible securities outstanding         4,694                       4,496                

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

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

Capitalization - As of December 31, 2022            
             
Equity   Shares   Share Price*   Total
Common shares           124,045           $         143.00           $         17,738.4        
Common OP units           2,419           $         143.00                     345.9        
Subtotal           126,464               $         18,084.3        
             
Preferred OP units, as converted           2,077           $         143.00                     297.0        
Total diluted shares outstanding           128,541               $         18,381.3        
             
Debt            
Secured debt           $         3,217.8        
Unsecured debt                     3,979.4        
Total debt           $         7,197.2        
             
Total Capitalization           $         25,578.5        

Debt Analysis

(amounts in millions, except for *)

 


  Quarter Ended
  12/31/2022   9/30/2022   6/30/2022   3/31/2022   12/31/2021
Debt Outstanding                  
Secured debt $         3,217.8             $         3,006.0             $         3,335.7             $         3,366.6             $         3,380.7          
Unsecured debt                  
Senior unsecured notes           1,779.6                       1,779.1                       1,778.6                       1,186.7                       1,186.4          
Line of credit and other debt(15)(a)           2,130.6                       1,856.0                       1,746.7                       1,453.3                       1,034.8          
Preferred Equity - Sun NG Resorts - mandatorily redeemable           35.2                       35.2                       35.2                       35.2                       35.2          
Preferred OP units - mandatorily redeemable           34.0                       34.7                       34.7                       34.7                       34.7          
Total unsecured debt           3,979.4                       3,705.0                       3,595.2                       2,709.9                       2,291.1          
Total debt $         7,197.2             $         6,711.0             $         6,930.9             $         6,076.5             $         5,671.8          
                   
% Fixed / Floating(b)*                  
Fixed           77.2         %             79.0         %             74.9         %             76.2         %             81.8         %
Floating           22.8         %             21.0         %             25.1         %             23.8         %             18.2         %
Total           100.0         %             100.0         %             100.0         %             100.0         %             100.0         %
                   
Weighted Average Interest Rates*                  
Secured debt           3.72         %             3.67         %             3.78         %             3.78         %             3.78         %
Senior unsecured notes(c)           2.90         %             2.90         %             2.90         %             2.55         %             2.55         %
Line of credit and other debt(15)(c)           4.42         %             3.26         %             2.28         %             1.25         %             0.98         %
Preferred Equity - Sun NG Resorts - mandatorily redeemable           6.00         %             6.00         %             6.00         %             6.00         %             6.00         %
Preferred OP units - mandatorily redeemable           5.92         %             5.93         %             5.93         %             5.93         %             5.93         %
Total average           3.75         %             3.37         %             3.20         %             2.96         %             3.04         %
                   
Debt Ratios*                  
Net Debt / Recurring EBITDA(1) (TTM) 6.0x   5.7x   6.3x   5.9x   5.7x
Net Debt / Enterprise Value           27.9         %             27.5         %             25.0         %             21.9         %             18.0         %
Net Debt / Gross Assets           35.9         %             34.6         %             35.7         %             36.6         %             35.4         %
                   
Coverage Ratios*                  
Recurring EBITDA(1) (TTM) / Interest 5.2x   5.7x   5.9x   6.2x   6.2x
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution 5.1x   5.6x   5.8x   6.0x   6.0x


Maturities / Principal Amortization Next Five Years   2023       2024       2025       2026       2027  
Secured debt                  
Maturities $         117.8             $         128.8             $         50.6             $         573.4             $         4.0          
Principal amortization           55.6                       56.4                       54.2                       46.2                       40.5          
Line of credit and other debt(15)           10.0                       9.8                       1,058.6                       1,055.2                       —          
Preferred Equity - Sun NG Resorts - mandatorily redeemable           —                       33.4                       1.8                       —                       —          
Preferred OP units - mandatorily redeemable           —                       26.7                       —                       —                       —          
Total $         183.4             $         255.1             $         1,165.2             $         1,674.8             $         44.5          
                   
Weighted average rate of maturities*           3.54         %             4.03         %             4.04         %             3.82         %             4.34         %

(a) As of December 31, 2022, £400.0 million ($483.6 million) was swapped to fix the floating rate, resulting in an interest rate of 3.66%.

(b) Percentages include the impact of hedge activity.

(c) Weighted average interest rate includes the impact of derivative transactions.

Endnotes, Reconciliations and Definitions

 

(1)   Investors in and analysts following the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), and earnings before interest, tax, depreciation and amortization ("EBITDA") as supplemental performance measures. The Company believes that FFO, NOI and EBITDA are appropriate measures given their wide use by and relevance to investors and analysts. Additionally, FFO, NOI and EBITDA are commonly used in various ratios, pricing multiples, yields and returns and valuation calculations used to measure financial position, performance and value.

  • FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles ("GAAP") depreciation and amortization of real estate assets.
  • NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.
  • EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.

FFO

FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating property, plus real estate related depreciation and amortization, real estate related impairments, and after adjustments for nonconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company's operating performance. By excluding gains and losses related to sales of previously depreciated operating real estate assets, real estate related impairment and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not readily apparent from GAAP net income (loss). Management believes the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. The Company also uses FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of the Company's core business ("Core FFO"). In addition, the Company calculates Constant Currency Core FFO by translating the operating results from the UK, Canada and Australia at the foreign currency exchange rates used for guidance. The Company believes that Core FFO and Constant Currency Core FFO provide enhanced comparability for investor evaluations of period-over-period results.

The Company believes that GAAP net income (loss) is the most directly comparable measure to FFO. The principal limitation of FFO is that it does not replace GAAP net income (loss) as a financial performance measure or GAAP cash flow from operating activities as a measure of the Company's liquidity. Because FFO excludes significant economic components of GAAP net income (loss) including depreciation and amortization, FFO should be used as a supplement to GAAP net income (loss) and not as an alternative to it. Furthermore, FFO is not intended as a measure of a REIT's ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO is calculated in accordance with the Company's interpretation of standards established by Nareit, which may not be comparable to FFO reported by other REITs that interpret the Nareit definition differently.

NOI

NOI is derived from revenues minus property operating expenses and real estate taxes. NOI is a non-GAAP financial measure that the Company believes is helpful to investors as a supplemental measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. The Company uses NOI as a key measure when evaluating performance and growth of particular properties and / or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense and non-property specific expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall. In addition, the Company calculates Constant Currency NOI for its UK Operations by translating the operating results from the UK at the foreign currency exchange rate used for guidance. The Company believes that NOI and Constant Currency NOI provide enhanced comparability for investor evaluation of properties performance and growth over time.

The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating activities as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level. In addition, the Company calculates Constant Currency NOI for its UK Operations by translating the operating results at the foreign currency exchange rate used for guidance. The Company believes that NOI and Constant Currency NOI provide enhanced comparability for investor evaluations of period-over-period results.

Same Property NOI - A key management tool used when evaluating performance and growth of the Company's properties is a comparison of the Same Property portfolio. The Company defines same properties as those the Company has owned and operated continuously since January 1, 2021. Same properties exclude ground-up development properties, acquired properties and properties sold after December 31, 2020. The Company believes that Same Property NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the Same property portfolio from one period to the next. The Same Property data may change from time-to-time depending on acquisitions, dispositions, management discretion, significant transactions or unique situations. Same Property NOI does not include the revenues and expenses related to home sales, service, retail, dining and entertainment activities at the properties.

EBITDA

EBITDA as defined by Nareit (referred to as "EBITDAre") is calculated as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus or minus losses or gains on the disposition of depreciated property (including losses or gains on change of control), plus impairment write-downs of depreciated property and of investments in nonconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity's share of EBITDAre of nonconsolidated affiliates. EBITDAre is a non-GAAP financial measure that the Company uses to evaluate its ability to incur and service debt, fund dividends and other cash needs and cover fixed costs. Investors utilize EBITDAre as a supplemental measure to evaluate and compare investment quality and enterprise value of REITs. The Company also uses EBITDAre excluding certain gain and loss items that management considers unrelated to measurement of the Company's performance on a basis that is independent of capital structure ("Recurring EBITDA").

The Company believes that GAAP net income (loss) is the most directly comparable measure to EBITDAre. EBITDAre is not intended to be used as a measure of the Company's cash generated by operations or its dividend-paying capacity, and should therefore not replace GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating, investing and financing activities as measures of liquidity.

(2)   Same Property results for the Company's MH and RV properties reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at the 2022 average exchange rate of $0.7366 USD per Canadian dollar.

(3)   The Same Property MH and RV blended occupancy for 2022 is derived from 123,349 developed sites, of which 120,614 were occupied. The Same Property adjusted MH and RV blended occupancy percentage is derived from 122,351 developed sites, of which 120,614 were occupied. The number of developed sites excludes RV transient sites and nearly 1,000 recently completed but vacant MH expansion sites.

The Same Property adjusted MH and RV blended occupancy percentage for 2021 has been adjusted to reflect incremental period-over-period growth from newly occupied expansion sites and the conversion of transient RV sites to annual RV sites.

(4)   The effect of certain anti-dilutive convertible securities is excluded from these items.

(5)   Revenue producing site net gains do not include occupied sites acquired during the year.

(6)   Other expense, net was as follows (in millions):

  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Litigation settlement $         —             $         —             $         3.4             $         —          
Contingent consideration expense           —                       (1.7 )             —                       (11.0 )
Long term lease termination expense           (4.4 )             —                       (4.3 )             —          
Repair reserve on repossessed homes           (0.3 )             (0.4 )             (1.2 )             (1.1 )
Other expense, net $         (4.7 )   $         (2.1 )   $         (2.1 )   $         (12.1 )

(7)   Calculations of Diluted weighted average common shares outstanding for EPS and FFO are as follows:

  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Diluted Weighted Average Common Shares Outstanding - EPS              
Weighted average common shares outstanding - Basic         123.1                   115.2                   120.2                   112.6        
Common shares dilutive effect: forward equity offering         —                   0.2                   0.2                   —        
Dilutive restricted stock         0.3                   0.3                   —                   —        
Common and preferred OP units dilutive effect         2.4                   —                   2.5                   2.5        
Weighted Average Common Shares Outstanding - Diluted         125.8                   115.7                   122.9                   115.1        
               
Diluted Weighted Average Common Shares Outstanding - FFO(1)              
Weighted average common shares outstanding - Basic         123.1                   115.2                   120.2                   112.6        
Common shares dilutive effect from forward equity sale         —                   0.2                   0.2                   —        
Restricted stock         0.3                   0.3                   0.4                   0.2        
Common OP units         2.4                   2.5                   2.5                   2.5        
Common stock issuable upon conversion of certain preferred OP units         0.7                   1.1                   2.3                   1.2        
Weighted Average Common Shares Outstanding - Diluted         126.5                   119.3                   125.6                   116.5        

(8)   Other acquisition related costs represent (a) nonrecurring integration expenses associated with acquisitions during the three months and year ended December 31, 2022 and 2021, (b) costs associated with potential acquisitions that will not close, (c) costs associated with the termination of the bridge loan commitment during the three months ended March 31, 2022 related to the acquisition of Park Holidays and (d) expenses incurred to bring recently acquired properties up to the Company's operating standards, including items such as tree trimming and painting costs that do not meet the Company's capitalization policy.

(9)   Other adjustments, net was as follows (in millions):

  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Litigation settlement $         —             $         —             $         (3.4 )   $         —        
Contingent consideration benefit           —                       1.7                       —                       11.0        
Long term lease termination expense           4.4                       —                       4.3                       —        
Deferred tax (benefit) / expense           (0.3 )             (1.0 )             (4.2 )             0.1        
RV rebranding non-recurring cost           1.4                       4.0                       3.6                       5.1        
Accelerated deferred compensation amortization           0.1                       —                       0.5                       —        
Gain on sale of investment in a non-consolidated affiliate           (0.1 )             —                       (0.4 )             —        
Other adjustments, net $         5.5             $         4.7             $         0.4             $         16.2        

(10)   Results for the Company's Same Property MH / RV, Same Property marina, UK Operations and Acquisitions and Other, net certain utility revenue against the related utility expense in Property Operating expense as follows (in millions):

  Three Months Ended   Year Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Same Property MH / RV $         18.5           $         17.2           $         79.0           $         71.4        
Same Property Marina           3.1                     2.7                     11.4                     11.1        
UK Operations           3.3           N/A             8.9           N/A
Acquisition and Other (excluding UK operations)           3.4             1.3             13.0             5.4
Total $         28.3           $         21.2           $         112.3           $         87.9        

Marina segment results (page 14) - Summary of utility revenue netted against the related utility expense in Property Operating expense (in millions). These amounts are broken out and included within Same Property Marina and Acquisition and Other in the table above.

  Three Months Ended   Year Ended
  December 31, 2022