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