Sun Communities, Inc. Reports 2023 First Quarter Results
Real Property Revenue Increased 13.8%, Year-over-Year
Net Loss per Diluted Share of $0.24
Core FFO per Share of $1.23 Exceeded Midpoint of Guidance by 4.7%
Total Same Property NOI Grew 6.7%, Exceeding Internal Expectations
Strong Demand and Effective Expense Management Drove Outperformance
Same Property Adjusted Occupancy for MH and RV Increased 190 Basis Points, Year-over-Year
Solid Transient-to-Annual RV Conversions of 524 Sites
Reiterating Full-Year Core FFO per Share Guidance for 2023 of $7.22 - $7.42
Expecting Total Same Property NOI Growth of 5.0% - 6.0%
*Southfield, MI, April 26, 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 first quarter results for 2023.
*Financial Results for the **Quarter Ended March 31, 2023*
· For the quarter ended March 31, 2023, net loss attributable to common shareholders was $30.1 million, or $0.24 per diluted share, compared to net income attributable to common shareholders of $0.7 million, or $0.01 per diluted share, for the same period in 2022.
*Non-GAAP Financial Measures*
· *Core Funds from Operations ("Core FFO")* for the quarter ended March 31, 2023, was $1.23 per common share and dilutive convertible securities ("Share"), as compared to $1.34 for the same period in 2022.· *Same Property Net Operating Income ("NOI")* increased by 6.7% for the quarter ended March 31, 2023, as compared to the corresponding period in 2022.
"We are pleased with the start to the year, delivering first quarter results which exceeded our expectations. The sustained demand for manufactured housing, RV vacationing and marinas is evident in the 6.7% same property NOI growth in the quarter," said Gary A. Shiffman, Chairman, President and CEO. "During the quarter, we added over 800 revenue producing sites across our manufactured home and RV communities and delivered over 330 development and expansion sites. We also further enhanced our balance sheet by raising nearly $600 million of long-term, fixed rate debt, the proceeds from which we used to pay down variable rate borrowings. We remain focused on building a stream of long-term, durable revenue and are optimistic in our outlook for 2023."
*OPERATING HIGHLIGHTS*
*North America Portfolio Occupancy*
· Total MH and annual RV occupancy was 96.9% at March 31, 2023, as compared to 97.5% at March 31, 2022.· During the quarter ended March 31, 2023, the number of MH and annual RV revenue producing sites increased by 802 sites, as compared to an increase of 670 sites during the corresponding period in 2022, a 19.7% increase.· Transient-to-annual RV site conversions totaled 524 sites during the first quarter of 2023 and account for 65.3% of the revenue producing site gains.
*Same Property* *Results*
For the properties owned and operated by the Company since at least January 1, 2022, the following table reflects the percentage changes, by segment and in total, for the quarter ended March 31, 2023:
*Quarter Ended March 31, 2023* *MH* *RV* *Marina* *Total*
Revenue 6.4 % 6.2 % 10.9 % 7.2 %
Expense 10.4 % 8.1 % 4.3 % 8.2 %
*NOI* 5.0 % 4.4 % 15.1 % 6.7 %
*Number of Properties* 289 161 119 569
Same Property adjusted blended occupancy for MH and RV increased to 98.6% at March 31, 2023, from 96.7% at March 31, 2022, an increase of 190 basis points.
*INVESTMENT ACTIVITY*
*Acquisitions*
During the quarter ended March 31, 2023 the Company acquired one MH community and one marina in the United States ("U.S.") for an aggregate purchase price of $107.0 million. Refer to page 13 for additional details.
*Development and Expansion Activities*
During the quarter ended March 31, 2023, the Company:
· Delivered over 200 sites at three ground-up development properties.· Expanded our existing communities by over 130 sites.· Invested $34.9 million to acquire three land parcels located in the U.S. and UK for the potential development of nearly 1,250 sites.
*BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS*
*Debt*
As of March 31, 2023, the Company had $7.5 billion in debt outstanding with a weighted average interest rate of 3.9% and a weighted average maturity of 7.4 years. At March 31, 2023, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.
During the quarter ended March 31, 2023, the Company completed the following financing activities:
· Entered into a mortgage term loan of $85.0 million. The loan matures on February 13, 2026 and has a fixed interest rate of 5.0%.· Issued $400.0 million of senior unsecured notes with an interest rate of 5.7% and a 10-year term due January 15, 2033.· Entered into two additional mortgage term loans totaling $99.1 million. The loans mature on April 1, 2030 and April 1, 2033 and have a weighted average interest rate of 5.72%.
In all three instances, the Company used the proceeds to repay borrowings outstanding under its senior credit facility.
*2023 GUIDANCE*
*Updating Full-Year and Establishing Second Quarter **2023** Guidance*
The Company is updating full-year 2023 and establishing second quarter 2023 guidance for diluted EPS and Core FFO per Share as follows:
*Reconciliation of Diluted EPS to Core FFO per Share*
*Full-Year Ending **December 31, 2023* *Second Quarter Ending June 30, 2023* *Prior FY Guidance* *Revised FY Range*
*Diluted EPS* $ 2.50 $ 2.70 $ 2.12 $ 2.32 $ 0.72 $ 0.80
Depreciation and amortization 5.02 5.02 5.06 5.06 1.27 1.27
Gain / (loss) on sale of assets (0.32 ) (0.32 ) (0.30 ) (0.30 ) (0.10 ) (0.10 )
*FFO per Share* $ 7.20 $ 7.40 $ 6.88 $ 7.08 $ 1.89 $ 1.97
Business combination expense and other acquisition related costs 0.03 0.03 0.07 0.07 0.01 0.01
Other adjustments^(a) (0.01 ) (0.01 ) 0.27 0.27 — —
*Core FFO*^*(b)** per Share* $ 7.22 $ 7.42 $ 7.22 $ 7.42 $ 1.90 $ 1.98
^(a) Other adjustments include all other categories presented in the table that reconciles Net income attributable to SUI common shareholders to Core FFO on page 6.
^(b) The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the 2023 Guidance Assumptions table presented below. The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material.
The Company's updated full-year guidance reflects changes in the following underlying assumptions, and updated total Same Property NOI growth of 5.0% - 6.0% for the full year includes 3.5% - 4.8% total Same Property NOI growth during the second quarter ending June 30, 2023.
*FY 2022* *Expected % Change in 2023*
*2023** Guidance Assumptions* *Actual Results* *Prior FY Guidance* *April 26, 2023 Update*
*Consolidated Portfolio:*
Total NOI from real property^(a) 4.5% - 5.7% 6.1% - 7.0%
*Same Property Portfolio*^*(b)*
MH NOI (289 properties) $ 569.7 4.2% - 5.0% 4.6% - 5.4%
RV NOI (161 properties) $ 281.7 5.1% - 6.4% 4.4% - 5.6%
Marina NOI (119 properties) $ 210.8 6.3% - 7.7% 6.8% - 8.0%
*Total Same Property Pool (569 Properties):*
Revenue from real property $ 1,601.0 6.6% - 7.0% 6.2% - 6.6%
Property operating expenses^(c)(d) 538.8 9.1% - 10.0% 7.9% - 8.8%
*Same Property NOI* $ 1,062.2 4.9% - 5.9% 5.0% - 6.0%
*Updated Ranges for Other Guidance Points ($ millions):*
UK Operations NOI from real property and home sales^(a) $155.5 - $165.1 $141.3 - $147.9
Service, retail, dining and entertainment NOI $49.5 - $52.1 $53.3 - $55.3
General and administrative expenses $256.5 - $261.6 $252.2 - $256.0
North America home sales contribution to Core FFO^(e) $18.9 - $19.7
*Exchange rates in effect at:* *December 31, 2022* *March 31, 2023*
U.S. Dollar ("USD") / Pound Sterling ("GBP") 1.21 1.24
USD / Canadian Dollar ("CAD") 0.74 0.74
USD / Australian Dollar ("AUS") 0.68 0.67
^(a) UK NOI from real property is included in Total Portfolio NOI from real property.
^(b) The amounts in the table reflect constant currency, as currency figures included within the 2022 actual amounts have been translated at the assumed exchange rate used for 2023 guidance.
^(c) Total Same Property results net $101.1 million of utility revenue for 2022 actual results and $107.7 million for 2023 guidance against the related utility expense in property operating expenses.
^(d) 2022 actual results exclude $1.3 million of expense incurred at recently acquired properties to bring them up to the Company's standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy.
^(e) FFO from home sales in North America is net of home selling expenses and includes the gross profit from new and certain pre-owned home sales. Gross profit from pre-owned home sales of depreciated homes is excluded.*Seasonality (Updated as of April 26, 2023)* *1Q23* *2Q23* *3Q23* *4Q23*
*Same Property NOI*
MH 25 % 25 % 25 % 25 %
RV 16 % 25 % 42 % 17 %
Marina 20 % 26 % 29 % 25 %
*Total Same Property* 21 % 26 % 30 % 23 %
*NOI from UK Operations* 12 % 29 % 40 % 19 %
*Consolidated EBITDA* 19 % 27 % 33 % 21 %
*Core FFO per Share* 17 % 26 % 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 April 26, 2023, and the effect of a property disposition under contract expected to close during the second quarter 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 first quarter results will be held on Thursday, April 27, 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 May 11, 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 13736832. 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, 2022, 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 March 31, 2023, the Company owned, operated, or had an interest in a portfolio of 671 developed MH, RV and Marina properties comprising approximately 179,700 developed sites and approximately 47,990 wet slips and dry storage spaces in the U.S., the UK 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
Wells Fargo James Feldman james.feldman@wellsfargo.com
Wolfe Research Andrew Rosivach arosivach@wolferesearch.com Keegan Carl kcarl@wolferesearch.com
*Financial and Operating Highlights*
*(amounts in millions, except for *)*
*Quarters Ended* *3/31/2023* *12/31/2022* *9/30/2022* *6/30/2022* *3/31/2022*
*Financial Information*
Basic earnings / (loss) per share* $ (0.24 ) $ 0.04 $ 1.32 $ 0.61 $ 0.01
Diluted earnings / (loss) per share* $ (0.24 ) $ 0.04 $ 1.32 $ 0.61 $ 0.01
Cash distributions declared per common share* $ 0.93 $ 0.88 $ 0.88 $ 0.88 $ 0.88
FFO per Share^(a)* $ 1.14 $ 1.02 $ 2.54 $ 1.95 $ 1.28
Core FFO per Share^(a)* $ 1.23 $ 1.33 $ 2.65 $ 2.02 $ 1.34
Recurring EBITDA $ 237.4 $ 236.3 $ 408.1 $ 328.4 $ 221.0
Recurring EBITDA (TTM) / Interest* 4.6 x 5.2 x 5.7 x 5.9 x 6.2 x
*Balance Sheet*
Total assets $ 17,363.8 $ 17,084.2 $ 16,484.6 $ 16,397.8 $ 13,914.2
Total debt $ 7,462.0 $ 7,197.2 $ 6,711.0 $ 6,930.9 $ 6,076.5
Total liabilities $ 9,294.8 $ 8,992.8 $ 8,354.6 $ 8,566.3 $ 6,980.7
*Operating Information****
Properties
MH 354 353 350 349 293
RV 182 182 181 182 182
Marina 135 134 131 130 128
Total 671 669 662 661 603
Sites ,Wet Slips and Dry Storage Spaces*
Manufactured homes 117,970 118,020 116,910 116,420 98,900
Annual RV 30,860 30,330 32,030 31,770 31,120
Transient RV 30,870 31,180 31,150 31,990 29,270
Total sites 179,700 179,530 180,090 180,180 159,290
Marina wet slips and dry storage spaces^(b) 47,990 47,820 46,190 45,910 45,730
*Occupancy****
MH occupancy (including UK) 95.1 % 95.0 % 95.5 % 95.6 % 96.7 %
Annual RV occupancy 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Blended MH and annual RV occupancy 96.1 % 96.0 % 96.5 % 96.6 % 97.5 %
*MH and RV Revenue Producing Site Net Gains*^(c)* (excluding UK Operations)**
MH net leased sites 278 346 122 132 65
RV net leased sites 524 267 567 818 605
Total net leased sites 802 613 689 950 670
^(a) Excludes the effects of certain anti-dilutive convertible securities.
^(b) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability.
^(c) Revenue producing site net gains do not include occupied sites acquired during the year.
*Portfolio Overview** as of **March 31, 2023*
*MH & RV Properties* *Properties*
*MH & Annual RV* *RV Transient Sites*
*Total MH and RV Sites*
*Sites for Development**Location* *Sites* *Occupancy %*
Florida 129 39,920 97.4 % 4,480 44,400 3,400
Michigan 85 32,700 96.4 % 700 33,400 1,250
California 37 6,880 98.7 % 1,920 8,800 940
Texas 31 8,820 95.0 % 2,530 11,350 2,010
Ontario, Canada 16 4,580 100.0 % 570 5,150 1,470
Connecticut 16 1,910 93.7 % 100 2,010 —
Maine 16 2,540 95.4 % 1,130 3,670 200
Arizona 13 4,520 93.5 % 980 5,500 —
Indiana 12 3,160 97.0 % 1,020 4,180 180
New Jersey 11 2,910 100.0 % 1,140 4,050 260
Colorado 11 2,800 88.6 % 990 3,790 1,490
Virginia 10 1,430 99.9 % 2,020 3,450 750
New York 10 1,490 98.4 % 1,450 2,940 780
New Hampshire 10 1,740 99.9 % 660 2,400 100
Other 74 15,580 98.2 % 7,920 23,500 1,220
North America Total 481 130,980 96.9 % 27,610 158,590 14,050
United Kingdom 55 17,850 90.1 % 3,260 21,110 1,820
*Total* *536* *148,830* *96.1* *%* *30,870* *179,700* *15,870*
*Marina* *Properties*
*Wet Slips and Dry Storage Spaces*
*Location*
Florida 21 5,200
Rhode Island 12 3,420
California 11 5,700
Connecticut 11 3,330
New York 9 3,020
Maryland 9 2,630
Massachusetts 9 2,520
Other 53 22,170
*Total* *135* *47,990*
*Properties*
*Sites, Wet Slips and Dry Storage Spaces*
*Total Portfolio* *671* *227,690*
*Consolidated Balance Sheets*
*(amounts in millions)*
*March 31, 2023* *December 31, 2022*
*Assets*
Land $ 3,974.1 $ 4,322.3
Land improvements and buildings 11,202.1 10,903.4
Rental homes and improvements 672.8 645.2
Furniture, fixtures and equipment 869.7 839.0
Investment property 16,718.7 16,709.9
Accumulated depreciation (2,867.9 ) (2,738.9 )
Investment property, net 13,850.8 13,971.0
Cash, cash equivalents and restricted cash 74.8 90.4
Marketable securities 105.5 127.3
Inventory of manufactured homes 232.5 202.7
Notes and other receivables, net 716.7 617.3
Goodwill 1,092.6 1,018.4
Other intangible assets, net 392.7 402.0
Other assets, net 898.2 655.1
*Total Assets* $ 17,363.8 $ 17,084.2
*Liabilities*
Secured debt $ 3,386.4 $ 3,217.8
Unsecured debt 4,075.6 3,979.4
Distributions payable 118.0 111.3
Advanced reservation deposits and rent 433.8 352.1
Accrued expenses and accounts payable 340.9 396.3
Other liabilities 940.1 935.9
*Total Liabilities* 9,294.8 8,992.8
Commitments and contingencies
Temporary equity 298.9 202.9
*Shareholders' Equity*
Common stock 1.2 1.2
Additional paid-in capital 9,556.4 9,549.7
Accumulated other comprehensive income / (loss) 7.7 (9.9 )
Distributions in excess of accumulated earnings (1,875.0 ) (1,731.2 )
*Total SUI shareholders' equity* 7,690.3 7,809.8
Noncontrolling interests
Common and preferred OP units 79.8 78.7
Total noncontrolling interests 79.8 78.7
*Total Shareholders' Equity* 7,770.1 7,888.5
*Total Liabilities, Temporary Equity and Shareholders' Equity* $ 17,363.8 $ 17,084.2
*Consolidated Statements of Operations*
*(amounts in millions, except for per share amounts)*
*Quarter Ended* *March 31, 2023* *March 31, 2022* *% Change*
*Revenues*
Real property (excluding transient) $ 398.0 $ 342.8 16.1 %
Real property - transient 43.4 45.0 (3.6) %
Home sales 86.3 64.7 33.4 %
Service, retail, dining and entertainment 102.6 81.2 26.4 %
Interest 11.4 6.8 67.6 %
Brokerage commissions and other, net 9.5 8.0 18.8 %
*Total Revenues* 651.2 548.5 18.7 %
*Expenses*
Property operating and maintenance 156.6 124.1 26.2 %
Real estate tax 30.1 26.1 15.3 %
Home costs and selling 63.2 45.9 37.7 %
Service, retail, dining and entertainment 100.0 75.7 32.1 %
General and administrative 63.9 55.7 14.7 %
Catastrophic event-related charges, net 1.0 — N/A
Business combinations 2.8 0.5 N/M
Depreciation and amortization 158.0 148.5 6.4 %
Loss on extinguishment of debt — 0.3 (100.0) %
Interest 76.6 45.2 69.5 %
Interest on mandatorily redeemable preferred OP units / equity 1.0 1.0 — %
*Total Expenses* 653.2 523.0 24.9 %
*Income / (Loss) Before Other Items* (2.0 ) 25.5 N/M
Loss on remeasurement of marketable securities (19.9 ) (34.5 ) (42.3) %
Loss on foreign currency exchanges (2.7 ) (2.2 ) 22.7 %
Gain / (loss) on dispositions of properties (1.6 ) 13.4 N/M
Other expense, net^(a) (1.0 ) (0.6 ) 69.5 %
Gain / (loss) on remeasurement of notes receivable (1.7 ) 0.2 N/M
Income / (loss) from nonconsolidated affiliates (0.2 ) 0.9 N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates (4.5 ) 0.1 N/M
Current tax expense (3.9 ) (1.3 ) 200.0 %
Deferred tax benefit 4.6 — N/A
*Net Income / (Loss)* (32.9 ) 1.5 N/M
Less: Preferred return to preferred OP units / equity interests 2.4 3.0 (20.0) %
Less: Loss attributable to noncontrolling interests (5.2 ) (2.2 ) 136.4 %
*Net Income / (Loss) Attributable to SUI Common Shareholders* $ (30.1 ) $ 0.7 N/M
Weighted average common shares outstanding - basic^(a) 123.3 115.3 6.9 %
Weighted average common shares outstanding - diluted^(a) 126.2 115.9 8.9 %
Basic earnings / (loss) per share $ (0.24 ) $ 0.01 N/M
Diluted earnings / (loss) per share^(b) $ (0.24 ) $ 0.01 N/M
^(a) Refer to Definitions and Notes for additional information.
^(b) The effect of certain anti-dilutive convertible securities is excluded from these items.
N/M = Percentage change is not meaningful.
N/A = Percentage change is not applicable.
*Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Core FFO*
*(amounts in millions, except for per share data)*
*Quarter Ended* *March 31, 2023* *March 31, 2022*
*Net Income / (Loss) Attributable to SUI Common Shareholders* $ (30.1 ) $ 0.7
Adjustments
Depreciation and amortization 157.3 148.3
Loss on remeasurement of marketable securities 19.9 34.5
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates 4.5 (0.1 )
(Gain) / loss on remeasurement of notes receivable 1.7 (0.2 )
(Gain) / loss on dispositions of properties, including tax effect 3.5 (13.4 )
Add: Returns on preferred OP units 2.1 2.8
Add: Loss attributable to noncontrolling interests (5.1 ) (2.2 )
Gain on dispositions of assets, net (7.9 ) (15.1 )
*FFO*^*(a)* $ 145.9 $ 155.3
Adjustments
Business combination expense and other acquisition related costs^(a) 6.5 3.1
Loss on extinguishment of debt — 0.3
Catastrophic event-related charges, net 1.0 —
Loss of earnings - catastrophic event-related charges, net 5.5 —
Loss on foreign currency exchanges 2.7 2.2
Other adjustments, net^(a) (3.6 ) 1.9
*Core FFO*^*(a)(b)* $ 158.0 $ 162.8
*Weighted Average Common Shares Outstanding - Diluted* 128.2 121.2
*FFO per Share*^*(b)* $ 1.14 $ 1.28
*Core FFO per Share*^*(b)* $ 1.23 $ 1.34
^(a) Refer to Definitions and Notes for additional information.
^(b) The effect of certain anti-dilutive convertible securities is excluded from these items.
*Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to NOI*
*(amounts in millions)*
*Three Months Ended* *March 31, 2023* *March 31, 2022*
*Net Income / (Loss) Attributable to SUI Common Shareholders* $ (30.1 ) $ 0.7
Interest income (11.4 ) (6.8 )
Brokerage commissions and other revenues, net (9.5 ) (8.0 )
General and administrative 63.9 55.7
Catastrophic event-related charges, net 1.0 —
Business combination expense 2.8 0.5
Depreciation and amortization 158.0 148.5
Loss on extinguishment of debt — 0.3
Interest expense 76.6 45.2
Interest on mandatorily redeemable preferred OP units / equity 1.0 1.0
Loss on remeasurement of marketable securities 19.9 34.5
Loss on foreign currency exchanges 2.7 2.2
(Gain) / loss on disposition of property 1.6 (13.4 )
Other expense, net^(a) 1.0 0.6
(Gain) / loss on remeasurement of notes receivable 1.7 (0.2 )
(Income) / loss from nonconsolidated affiliates 0.2 (0.9 )
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates 4.5 (0.1 )
Current tax expense 3.9 1.3
Deferred tax benefit (4.6 ) —
Preferred return to preferred OP units / equity interests 2.4 3.0
Add: Loss attributable to noncontrolling interests (5.2 ) (2.2 )
*NOI* $ 280.4 $ 261.9
*Three Months Ended* *March 31, 2023* *March 31, 2022*
Real Property NOI^(a) $ 254.7 $ 237.6
Home Sales NOI^(a) 23.1 18.8
Service, retail, dining and entertainment NOI^(a) 2.6 5.5
*NOI* $ 280.4 $ 261.9
^(a) Refer to Definitions and Notes for additional information.
*Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Recurring EBITDA*
*(amounts in millions)*
*Three Months Ended* *March 31, 2023* *March 31, 2022*
*Net Income / (Loss) Attributable to SUI Common Shareholders* $ (30.1 ) $ 0.7
Adjustments
Depreciation and amortization 158.0 148.5
Loss on extinguishment of debt — 0.3
Interest expense 76.6 45.2
Interest on mandatorily redeemable preferred OP units / equity 1.0 1.0
Current tax expense 3.9 1.3
Deferred tax benefit (4.6 ) —
(Income) / loss from nonconsolidated affiliates 0.2 (0.9 )
Less: (Gain) / loss on dispositions of properties 1.6 (13.4 )
Less: Gain on dispositions of assets, net (7.9 ) (15.1 )
*EBITDAre* $ 198.7 $ 167.6
Adjustments
Catastrophic event-related charges, net 1.0 —
Business combination expense 2.8 0.5
Loss on remeasurement of marketable securities 19.9 34.5
Loss on foreign currency exchanges 2.7 2.2
Other expense, net^(a) 1.0 0.6
(Gain) / loss on remeasurement of notes receivable 1.7 (0.2 )
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates 4.5 (0.1 )
Preferred return to preferred OP units / equity interests 2.4 3.0
Add: Loss attributable to noncontrolling interests (5.2 ) (2.2 )
Add: Gain on dispositions of assets, net 7.9 15.1
*Recurring EBITDA* $ 237.4 $ 221.0
^(a) Refer to Definitions and Notes for additional information.
*Real Property Operations - Total Portfolio*
*(amounts in millions, except statistical information)*
*Quarter Ended March 31, 2023* *Quarter Ended March 31, 2022* *MH* *MH* *North America* *UK* *Total MH* *RV* *Marinas* *Total* *North America* *UK* *Total MH* *RV* *Marinas* *Total*
*Financial Information*
*Revenues*
Real property (excluding transient) $ 223.5 $ 27.5 $ 251.0 $ 61.8 $ 85.2 $ 398.0 $ 208.3 N/A $ 208.3 $ 60.7 $ 73.8 $ 342.8
Real property - transient 0.5 1.4 1.9 37.8 3.7 43.4 0.5 N/A 0.5 42.0 2.5 45.0
Total operating revenues 224.0 28.9 252.9 99.6 88.9 441.4 208.8 N/A 208.8 102.7 76.3 387.8
*Expenses*
Property operating expenses 73.4 22.6 96.0 53.8 36.9 186.7 65.3 N/A 65.3 52.6 32.3 150.2
*Real Property NOI* $ 150.6 $ 6.3 $ 156.9 $ 45.8 $ 52.0 $ 254.7 $ 143.5 N/A $ 143.5 $ 50.1 $ 44.0 $ 237.6
*Other information *
*Number of properties* 299 55 354 182 135 671 295 N/A 295 180 128 603
*Sites, wet slips and dry storage spaces*
Sites, wet slips and dry storage spaces^(a) 100,120 17,850 117,970 30,860 47,990 196,820 98,900 N/A 98,900 31,120 45,730 175,750
Transient RV sites^(b) N/A N/A — 30,870 ^(b) N/A 30,870 N/A N/A N/A 29,270 N/A 29,270
Total 100,120 17,850 117,970 61,730 47,990 227,690 98,900 N/A 98,900 60,390 45,730 205,020
*MH and Annual RV Occupancy* 96.0 % 90.1 % 95.1 % 100.0 % N/A N/A 96.7 % N/A 96.7 % 100.0 % N/A N/A
^(a) MH annual sites included 9,520 and 9,470 rental homes in the Company's Rental Program during the quarter ended March 31, 2023 and 2022, respectively.
^(b) RV transient for the quarter ended March 31, 2023 includes 3,260 of UK sites.
*Real Property Operations - Same Property Portfolio*^*(a)*
*(amounts in millions, except for statistical information)*
*Quarter Ended March 31, 2023* *Quarter Ended March 31, 2022* *% Change*
*in Total*^*(d)* *MH*^*(b)* *RV*^*(b)* *Marina* *Total* *MH*^*(b)* *RV*^*(b)* *Marina* *Total*
*Financial Information*
*Same Property Revenues*
Real property (excluding transient) $ 203.9 $ 57.4 $ 69.3 $ 330.6 $ 191.5 $ 49.6 $ 63.3 $ 304.4 8.6 %
Real property - transient 0.3 36.1 3.4 39.8 0.4 38.4 2.3 41.1 (3.2) %
Total Same Property operating revenues 204.2 93.5 72.7 370.4 191.9 88.0 88.0 65.6 345.5 7.2 %
*Same Property Expenses*
Same Property operating expenses^(c)(e) 53.9 47.0 26.9 127.8 48.8 43.5 25.8 118.1 8.2 %
*Real Property NOI*^*(e)* $ 150.3 $ 46.5 $ 45.8 $ 242.6 $ 143.1 $ 44.5 $ 39.8 $ 227.4 6.7 %
*% Change* 5.0 % 4.4 % 15.1 % 6.7 %
*Other Information*
Number of properties 289 161 119 569 289 161 119 569
Sites, wet slips and dry storage spaces 98,630 54,540 41,000 194,170 97,750 54,240 40,830 192,820
^(a) Refer to the Definitions and Notes for additional information.
^(b) 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 average exchange rate during the quarter ended March 31, 2023 of $0.7396 USD per Canadian dollar.
^(c) The Company nets utility revenues (which include utility reimbursement revenues from residents) against related expenses. Refer to Definitions and Notes for more detail.
^(d) Percentages are calculated based on unrounded numbers.
^(e) Total Same Property operating expenses consist of the following components for the periods shown (in millions) and exclude amounts invested into recently acquired properties to bring them up to the Company's standards:
*Quarter Ended* *% Change* *March 31, 2023* *March 31, 2022*
Payroll and benefits $ 42.4 $ 39.7 6.8 %
Real estate taxes 27.7 25.2 9.9 %
Supplies and repairs 14.2 14.6 (2.7) %
Utilities 14.4 14.9 (3.4) %
Legal, state / local taxes, and insurance 14.2 9.6 47.9 %
Other 14.9 14.1 5.7 %
*Total Same Property Operating Expenses* $ 127.8 $ 118.1 8.2 %
*Real Property Operations - Same Property Portfolio*^*(a)**(Continued)*
*As of* *March 31, 2023* *March 31, 2022* *MH* *RV* *MH* *RV*
*Number of properties* 289 161 289 161
*Sites*
MH and Annual RV sites 98,630 30,600 97,750 28,460
Transient RV sites N/A 23,940 N/A 25,780 �