Sun Communities, Inc. Reports 2024 First Quarter Results
Total Revenue Increased by 3.1%
Net Loss per Diluted Share of $0.22
Core FFO per Share of $1.19
Total North America Same Property NOI Increased by 7.9%
North America Same Property Adjusted Blended Occupancy for MH and RV
Increased by 180 Basis Points, Year-over-Year
Revenue Producing Site Gains of 233, Including 176 Transient-to-Annual RV Site Conversions
Full-Year Core FFO per Share Guidance for 2024 of $7.06 - $7.22
Guidance Range for Full-Year North America Same Property NOI Growth of 4.6% - 5.8%
*Southfield, April 29, 2024 (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, marinas, and communities in the United Kingdom ("UK") (collectively, the "properties"), today reported its first quarter results for 2024.
*Financial Results for the Quarter Ended **March 31, 2024*
· For the quarter ended March 31, 2024, net loss attributable to common shareholders was $27.4 million, or $0.22 per diluted share, compared to net loss attributable to common shareholders of $44.9 million, or $0.36 per diluted share for the same period in 2023.
*Non-GAAP Financial Measures*
· *Core Funds from Operations ("Core FFO")* for the quarter ended March 31, 2024, was $1.19 per common share and dilutive convertible securities ("Share"), as compared to $1.23 for the same period in 2023.
· *Same Property Net Operating Income ("NOI")*
· *North American, Same Property NOI *increased by 7.9% for the quarter ended March 31, 2024, as compared to the corresponding period in 2023.· *UK Same Property NOI *increased $3.3 million, or 44.5%, for the quarter ended March 31, 2024, as compared to the corresponding period in 2023.
"The first quarter results demonstrated a strong start to the year as we achieved solid same property NOI growth in the quarter, showcasing the resiliency of our portfolio," said Gary A. Shiffman, Chairman, President and CEO. "Our performance highlights the quality of the portfolio and the favorable fundamentals underpinning our asset classes, driven by consistent demand in a supply constrained environment. We are intently focused on realizing the dependable growth embedded in our portfolio and confident that we are positioned to drive reliable earnings growth and value creation over the long-term."
*OPERATING HIGHLIGHTS*
*North America Portfolio Occupancy*
· MH and annual RV sites were 97.5% occupied at March 31, 2024, as compared to 96.9% at March 31, 2023.· Transient-to-annual RV site conversions totaled 176 sites during the first quarter of 2024 and accounted for 75.5% of revenue producing site gains.
*Same Property* *Results*
For the properties owned and operated by the Company since at least January 1, 2023, the following table reflects the percentage changes for the quarter ended March 31, 2024:
*Quarter Ended March 31, 2024* *North America* *MH* *RV* *Marina* *Total* *UK*
Revenue 6.8 % 3.1 % 7.1 % 6.0 % 12.3 %
Expense 3.4 % (1.8) % 6.5 % 2.2 % (1.7) %
*NOI* 8.0 % 8.1 % 7.5 % 7.9 % 44.5 %
*Number of Properties* 291 165 127 583 53
Same Property adjusted blended occupancy for MH and RV increased by 180 basis points to 98.9% at March 31, 2024, from 97.1% at March 31, 2023.
*INVESTMENT ACTIVITY*
During the quarter ended March 31, 2024, the Company:
· Sold two operating communities located in Florida and Arizona with 533 developed sites in aggregate for total cash consideration of approximately $51.7 million. The gain from the sale of the properties was $6.2 million.· Expanded one existing community by approximately 30 sites and delivered 70 sites at one ground-up development property.· Acquired two land parcels located in the U.S. for an aggregate purchase price of $12.9 million. In conjunction with one of the acquisitions, the Company issued 4,452 common OP units valued at $0.6 million.
Subsequent to the quarter, the Company acquired three marina properties for total consideration of $12.0 million. In conjunction with one of the acquisitions, the Company issued 19,326 common OP units valued at $2.5 million.
*BALANCE** SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS*
As of March 31, 2024, the Company had $7.9 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.8 years. At March 31, 2024, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.
During the quarter, the Company:
· Issued $500.0 million of senior unsecured notes with an interest rate of 5.5%, due January 15, 2029, and received net proceeds of $495.4 million, after deducting underwriters' discounts and estimated offering expenses. The majority of the net proceeds were used to reduce floating-rate debt.
*2024 GUIDANCE*
The Company is updating full year, and establishing second quarter, 2024 guidance for diluted EPS and Core FFO per Share as follows:
*Full Year Ending **December 31, 2024* *Second Quarter** Ending **June 30, 2024* *Prior FY Guidance* *Revised FY Range*
*Reconciliation of Diluted EPS to Core FFO per Share* *Low* *High* *Low* *High* *Low* *High*
*Diluted EPS* $ 2.08 $ 2.28 $ 1.89 $ 2.05 $ 0.61 $ 0.69
Depreciation and amortization 5.35 5.35 5.45 5.45 1.33 1.33
Gain on sale of assets (0.30 ) (0.30 ) (0.34 ) (0.34 ) (0.10 ) (0.10 )
Distributions on preferred OP units 0.10 0.10 0.10 0.10 0.02 0.02
Noncontrolling interest 0.10 0.10 0.09 0.09 0.03 0.03
Transaction costs and other non-recurring G&A expenses 0.07 0.07 0.14 0.14 0.02 0.02
Deferred tax benefit (0.18 ) (0.18 ) (0.18 ) (0.18 ) (0.05 ) (0.05 )
Difference in weighted average share count attributed to dilutive convertible securities (0.11 ) (0.11 ) (0.09 ) (0.09 ) (0.03 ) (0.03 )
Other adjustments^(a) (0.07 ) (0.07 ) — — — —
Core FFO^(b)(c) per Share $ 7.04 $ 7.24 $ 7.06 $ 7.22 $ 1.83 $ 1.91
^(a) Other adjustments consist primarily of remeasurement (gains) / losses, contingent legal and insurance gains and other items presented in the table that reconciles Net loss attributable to SUI common shareholders to Core FFO on page 6.
^(b) The diluted share counts for the quarter ending June 30, 2024 and the year ending December 31, 2024 are estimated to be 129.6 million.
^(c) The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the table presented below. The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material.
*Exchange Rates in Effect at:* *December 31, 2023* *March 31, 2024*
U.S. Dollar ("USD") / Pound Sterling ("GBP") 1.27 1.26
USD / Canadian Dollar ("CAD") 0.75 0.74
USD / Australian Dollar ("AUS") 0.68 0.65
The Company's updated guidance for the full year ending December 31, 2024 is reflected below. Note that certain prior period amounts have been reclassified to conform with current period presentation, with no effect on net income / (loss) and Core FFO. The reclassifications more precisely align certain indirect expenses with underlying activity drivers.
*Same Property Portfolio (in millions and %)*^*(a)*
*FY **2023** Actual Results*
*Expected Change in **2024* *Prior FY Range* *April 29, 2024** Update*
*North America*
Revenues from real property $ 1,734.6 6.4% - 6.8% 5.4% - 5.8%
Total property operating expenses $ 582.3 8.1% - 9.1% 6.0% - 7.0%
*Total North America Same Property NOI*^*(b)(c)* *$* *1,152.3* *5.0% - 6.2%* *4.6%** - **5.8%*
MH NOI (291 properties) $ 607.9 6.0% - 7.0% 6.2% - 7.1%
RV NOI (165 properties) $ 291.7 2.1% - 3.5% (0.3)% - 1.3%
Marina NOI (127 properties) $ 252.7 6.1% - 7.5% 6.4% - 7.6%
*UK (53 properties)*
Revenues from real property $ 137.9 4.8% - 5.4% 6.4% - 7.0%
Total property operating expenses $ 68.7 7.4% - 8.4% 6.0% - 6.9%
*Total UK Same Property NOI*^*(b)* *$* *69.2* *1.3% - 3.3%* *6.0%** - **8.0%*
For the second quarter ending June 30, 2024, the Company's guidance range assumes North America Same Property NOI growth of 3.4% - 4.9% and UK Same Property NOI growth of 2.5% - 5.0%.
*Consolidated Portfolio Guidance For **2024*
*(in millions and %)*
*FY **2023** Actual Results*
*Expected Change / Range in **2024* *Prior FY Range* *April 29, 2024** Update*
Revenues from real property $ 2,059.8 7.1% - 7.6% 6.3% - 6.6%
Total property operating expenses $ 810.4 8.1% - 8.4% 5.7% - 6.0%
*Total Real Property NOI* *$* *1,249.4* *6.3% - 7.3%* *6.5% - 7.3%*
Service, retail, dining and entertainment NOI $ 68.5 $58.4 - $63.2 $63.0 - $67.0
Interest income $ 45.4 $17.6 - $18.6 $17.8 - $18.8
Brokerage commissions and other, net^(d)(e) $ 60.6 $44.8 - $47.2 $37.6 - $39.6
FFO contribution from North American home sales $ 17.0 $14.4 - $15.9 $13.0 - $13.9
FFO contribution from UK home sales^(f) $ 59.2 $62.3 - $69.9 $55.4 - $62.4
Income from nonconsolidated affiliates $ 16.0 $13.7 - $14.7 $11.1 - $11.9
General and administrative expenses^(g) $ 272.1 $262.2 - $267.4 $269.7 - $274.7
Interest expense $ 325.8 $356.3 - $362.7 $355.6 - $361.1
Current tax expense $ 14.5 $14.6 - $16.8 $13.2 - $14.8
*Expected *
*Range in FY **2024*
*Seasonality* *1Q24* *2Q24* *3Q24* *4Q24*
*North America Same Property NOI:*
MH 25 % 25 % 25 % 25 %
RV 17 % 25 % 41 % 17 %
Marina 19 % 26 % 31 % 24 %
*Total* *22* *%* *25* *%* *30* *%* *23* *%*
*UK Same Property NOI* *14* *%* *25* *%* *40* *%* *21* *%*
*Home Sales FFO*
North America 11 % 40 % 29 % 20 %
UK 17 % 31 % 33 % 19 %
*Consolidated Service, Retail, Dining and Entertainment NOI* 3 % 37 % 46 % 14 %
*Consolidated EBITDA* 18 % 27 % 33 % 22 %
*Core FFO per Share* 17 % 26 % 35 % 22 %
*Footnotes to **2024** Guidance Assumptions*
(a) The amounts in the Same Property Portfolio table reflect constant currency, as Canadian and Pound Sterling currency figures included within the 2023 amounts have been translated at the assumed exchange rates used for 2024 guidance.
(b) Total North America Same Property results net $112.2 million and $115.0 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively. Total UK Same Property results net $16.8 million and $17.7 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively.
(c) 2023 North America Same Property actual results exclude $0.4 million of expenses 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.
(d) Brokerage commissions and other, net includes $23.4 million of business interruption income for the full year in 2023 and $15.7 million in 2024 for the second through fourth quarters. Expected business interruption recovery for the first quarter of 2024 in the amount of $5.3 million was recorded as an adjustment to Core FFO in the loss of earnings - Catastrophic event-related charges, net line item.
(e) Brokerage commissions and other, net included approximately $8.5 million of lease income in 2023 that will be recognized in total real property NOI in 2024.
(f) Includes UK home sales from Park Holidays and Sandy Bay.
(g) General and administrative in Consolidated Statements of Operations includes $29.6 million and $18.4 million of non-recurring expenses for 2023 results and 2024 updated guidance, respectively.
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 29, 2024. 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 Tuesday, April 30, 2024 at 2:00 P.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 14, 2024 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 13745022. The conference call will be available live on the Company's website located at www.suninc.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 and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, 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:
*∙* Changes in general economic conditions, including inflation, deflation, 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;
*∙* Outbreaks of disease and related restrictions on business operations;
*∙* 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;
*∙* The Company's remediation plan and its ability to remediate the material weakness in its internal control over financial reporting;
*∙* Expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
*∙* 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, including costs associated with prosecuting or defending claims and any adverse outcomes;
*∙* 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, 2024, the Company owned, operated, or had an interest in a portfolio of 665 developed MH, RV, Marina, and UK properties comprising approximately 180,110 developed sites and approximately 48,040 wet slips and dry storage spaces in the U.S., Canada and the UK.
For more information about the Company, please visit www.suninc.com.
*Company Contacts*
*Investor Relations*
Sara Ismail, Vice President
(248) 208-2500
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 Eric Wolfe eric.wolfe@citi.com Nicholas Joseph nicholas.joseph@citi.com
Deutsche Bank Conor Peaks conor.peaks@db.com Omotayo Okusanya omotayo.okusanya@db.com
Evercore ISI Samir Khanal samir.khanal@evercoreisi.com Steve Sakwa steve.sakwa@evercoreisi.com
Green Street Advisors John Pawlowski jpawlowski@greenstreet.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*
*($ in millions, except Per Share amounts)*
*Quarters Ended* *3/31/2024* *12/31/2023* *9/30/2023* *6/30/2023* *3/31/2023*
*Financial Information*
Basic earnings / (loss) per share^(a) $ (0.22 ) $ (0.65 ) $ 0.97 $ (1.67 ) $ (0.36 )
Diluted earnings / (loss) per share^(a) $ (0.22 ) $ (0.65 ) $ 0.97 $ (1.68 ) $ (0.36 )
Cash distributions declared per common share $ 0.94 $ 0.93 $ 0.93 $ 0.93 $ 0.93
FFO per Share^(a)(b) $ 1.12 $ 1.41 $ 2.55 $ 1.96 $ 1.14
Core FFO per Share^(b) $ 1.19 $ 1.34 $ 2.57 $ 1.96 $ 1.23
Real Property NOI
MH $ 162.5 $ 155.6 $ 153.1 $ 151.3 $ 150.6
RV 51.2 50.4 128.2 75.6 45.1
Marina 56.9 65.3 83.1 72.2 52.2
UK 15.3 14.0 29.0 17.3 6.4
Total $ 285.9 $ 285.3 $ 393.4 $ 316.4 $ 254.3
Recurring EBITDA $ 234.0 $ 256.0 $ 433.0 $ 339.7 $ 237.4
TTM Recurring EBITDA / Interest 3.7 x 3.9 x 4.0 x 4.3 x 4.6 x
Net Debt / TTM Recurring EBITDA 6.1 x 6.1 x 6.1 x 6.2 x 6.1 x
*Balance Sheet*
Total assets^(a) $ 17,113.3 $ 16,940.7 $ 17,246.6 $ 17,234.9 $ 17,348.1
Total debt $ 7,872.0 $ 7,777.3 $ 7,665.0 $ 7,614.0 $ 7,462.0
Total liabilities $ 9,830.0 $ 9,506.8 $ 9,465.0 $ 9,474.8 $ 9,294.8
*Operating Information*
Properties
MH 296 298 298 299 299
RV 179 179 182 182 182
Marina 136 135 135 135 135
UK 54 55 55 55 55
Total 665 667 670 671 671
Sites, Wet Slips and Dry Storage Spaces
MH 99,930 100,320 100,200 100,220 100,120
Annual RV 33,290 32,390 32,150 31,620 30,860
UK 18,110 18,110 18,050 17,950 17,850
Transient 28,780 28,490 29,770 30,270 30,870
Total sites 180,110 179,310 180,170 180,060 179,700
Marina wet slips and dry storage spaces^(c) 48,040 48,030 48,030 48,180 47,990
*Occupancy*
MH 96.7 % 96.6 % 96.3 % 96.2 % 96.0 %
Annual RV 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Blended MH and annual RV 97.5 % 97.4 % 97.2 % 97.1 % 96.9 %
UK 88.9 % 89.5 % 90.6 % 90.1 % 90.1 %
*MH and RV Revenue Producing Site Net Gains*^*(d)*
MH leased sites, net 57 387 207 285 278
RV leased sites, net 176 296 537 754 524
Total leased sites, net 233 683 744 1,039 802
^(a) As adjusted for Park Holidays non-cash goodwill impairment. Refer to Definitions and Notes for additional information.
^(b) Excludes the effect of certain anti-dilutive convertible securities.
^(c) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability.
^(d) Revenue producing site net gains do not include occupied sites acquired during the year.
*Portfolio Overview as of March 31, 2024*
*MH & RV Properties* *Properties*
*MH & Annual RV* *Transient RV*
* Sites*
*Total Sites*
*Sites for Development**Location* *Sites* *Occupancy %*
North America
Florida 128 41,180 97.7 % 3,950 45,130 2,950
Michigan 85 32,950 96.9 % 580 33,530 1,290
California 37 6,920 98.8 % 1,870 8,790 850
Texas 29 9,020 96.5 % 1,800 10,820 3,850
Ontario, Canada 16 4,610 100.0 % 590 5,200 1,450
Connecticut 16 1,910 95.0 % 90 2,000 —
Maine 15 2,490 96.1 % 1,050 3,540 200
Arizona 12 4,480 97.4 % 830 5,310 1,120
Indiana 12 3,140 98.2 % 1,030 4,170 180
New Jersey 11 2,950 100.0 % 1,040 3,990 260
Colorado 11 2,900 87.7 % 980 3,880 1,420
Virginia 10 1,610 99.9 % 2,070 3,680 750
New York 10 1,510 99.2 % 1,430 2,940 780
Other 83 17,550 98.8 % 8,250 25,800 1,000
*Total* 475 133,220 97.5 % 25,560 158,780 16,100
*Properties*
*UK Properties* *Transient Sites*
*Total Sites*
*Sites for Development**Location* *Sites* *Occupancy %*
United Kingdom 54 18,110 88.9 % 3,220 21,330 2,410
*Marina* *Properties*
*Wet Slips and Dry Storage Spaces*
*Location*
Florida 21 5,150
Rhode Island 12 3,460
California 11 5,710
Connecticut 11 3,330
New York 9 3,020
Massachusetts 9 2,560
Maryland 9 2,480
Other 54 22,330
*Total* *136* *48,040*
*Properties*
*Sites, Wet Slips and Dry Storage Spaces*
*Total Portfolio* *665* *228,150*
*Consolidated Balance Sheets*
*(amounts in millions)*
*March 31, 2024* *December 31, 2023*
*Assets*
Land $ 4,551.7 $ 4,278.2
Land improvements and buildings 11,529.5 11,682.2
Rental homes and improvements 755.9 744.4
Furniture, fixtures and equipment 1,031.3 1,011.7
Investment property 17,868.4 17,716.5
Accumulated depreciation (3,410.5 ) (3,272.9 )
Investment property, net 14,457.9 14,443.6
Cash, cash equivalents and restricted cash 132.5 42.7
Inventory of manufactured homes 191.0 205.6
Notes and other receivables, net 469.1 421.6
Collateralized receivables, net^(a) 56.5 56.2
Goodwill 731.4 733.0
Other intangible assets, net 361.7 369.5
Other assets, net 713.2 668.5
*Total Assets* $ 17,113.3 $ 16,940.7
*Liabilities*
Mortgage loans payable $ 3,465.5 $ 3,478.9
Secured borrowings on collateralized receivables^(a) 56.1 55.8
Unsecured debt 4,350.4 4,242.6
Distributions payable 119.7 118.2
Advanced reservation deposits and rent 480.4 344.5
Accrued expenses and accounts payable 370.4 313.7
Other liabilities 987.5 953.1
*Total Liabilities* 9,830.0 9,506.8
Commitments and contingencies
Temporary equity 259.7 260.9
*Shareholders' Equity*
Common stock 1.2 1.2
Additional paid-in capital 9,471.4 9,466.9
Accumulated other comprehensive income 6.7 12.2
Distributions in excess of accumulated earnings (2,540.6 ) (2,397.5 )
*Total SUI shareholders' equity* 6,938.7 7,082.8
Noncontrolling interests
Common and preferred OP units 84.9 90.2
Total noncontrolling interests 84.9 90.2
*Total Shareholders' Equity* 7,023.6 7,173.0
*Total Liabilities, Temporary Equity and Shareholders' Equity* $ 17,113.3 $ 16,940.7
^(a) Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information.
*Consolidated Statements of Operations*
*(amounts in millions, except for per share amounts)*
*Quarter Ended* *March 31, 2024* *March 31, 2023* *% Change*
*Revenues* *As Restated*
Real property (excluding transient)^(a) $ 435.4 $ 398.2 9.3 %
Real property - transient 41.5 43.4 (4.4) %
Home sales 68.9 86.3 (20.2) %
Service, retail, dining and entertainment 117.9 102.4 15.1 %
Interest 4.6 11.4 (59.6) %
Brokerage commissions and other, net 3.0 9.5 (68.4) %
*Total Revenues* 671.3 651.2 3.1 %
*Expenses*
Property operating and maintenance^(a) 159.7 157.2 1.6 %
Real estate tax 31.3 30.1 4.0 %
Home costs and selling 51.9 62.6 (17.1) %
Service, retail, dining and entertainment 115.9 99.8 16.1 %
General and administrative 78.5 64.1 22.5 %
Catastrophic event-related charges, net 7.2 1.0 N/M
Business combinations — 2.8 (100.0) %
Depreciation and amortization 165.3 155.6 6.2 %
Asset impairments 20.7 2.4 N/M
Goodwill impairment — 15.4 (100.0) %
Loss on extinguishment of debt 0.6 — N/A
Interest 89.7 76.6 17.1 %
Interest on mandatorily redeemable preferred OP units / equity — 1.0 (100.0) %
*Total Expenses* 720.8 668.6 7.8 %
*Loss Before Other Items* (49.5 ) (17.4 ) 184.5 %
Loss on remeasurement of marketable securities — (19.9 ) (100.0) %
Gain / (loss) on foreign currency exchanges 1.1 (2.7 ) N/M
Gain / (loss) on dispositions of properties 5.4 (1.6 ) N/M
Other income / (expense), net^(b) 8.0 (1.0 ) N/M
Loss on remeasurement of notes receivable (0.7 ) (1.7 ) (58.8) %
Income / (loss) from nonconsolidated affiliates 1.4 (0.2 ) N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates 5.2 (4.5 ) N/M
Current tax expense (2.1 ) (3.9 ) (46.2) %
Deferred tax benefit 5.7 4.6 23.9 %
*Net Loss* (25.5 ) (48.3 ) (47.2) %
Less: Preferred return to preferred OP units / equity interests 3.2 2.4 33.3 %
Less: Loss attributable to noncontrolling interests (1.3 ) (5.8 ) (77.6) %
*Net Loss Attributable to SUI Common Shareholders* $ (27.4 ) $ (44.9 ) (39.0) %
Weighted average common shares outstanding - basic^(b) 123.6 123.3 0.2 %
Weighted average common shares outstanding - diluted^(b) 126.6 126.2 0.3 %
Basic loss per share $ (0.22 ) $ (0.36 ) (38.9) %
Diluted loss per share^(c) $ (0.22 ) $ (0.36 ) (38.9) %
^(a) Refer to "Utility Revenues" within Definitions and Notes for additional information.
^(b) Refer to Definitions and Notes for additional information.
^(c) Excludes the effect of certain anti-dilutive convertible securities.
N/M = Not meaningful.
N/A = Not applicable.
*Reconciliation of Net Loss Attributable to SUI Common Shareholders to Core FFO*
*(amounts in millions, except for per share data)*
*Quarter Ended* *March 31, 2024* *March 31, 2023* *As Restated*
*Net Loss Attributable to SUI Common Shareholders* $ (27.4 ) $ (44.9 )
Adjustments
Depreciation and amortization 164.5 154.9
Depreciation on nonconsolidated affiliates 0.1 —
Asset impairments 20.7 2.4
Goodwill impairment — 15.4
Loss on remeasurement of marketable securities — 19.9
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates (5.2 ) 4.5
Loss on remeasurement of notes receivable 0.7 1.7
(Gain) / loss on dispositions of properties, including tax effect (5.3 ) 3.5
Add: Returns on preferred OP units 2.1 2.1
Add: Loss attributable to noncontrolling interests (0.9 ) (5.7 )
Gain on dispositions of assets, net (5.4 ) (7.9 )
*FFO*^*(a)* $ 143.9 $ 145.9
Adjustments
Business combination expense — 2.8
Acquisition and other transaction costs^(a) 9.9 3.7
Loss on extinguishment of debt 0.6 —
Catastrophic event-related charges, net 7.2 1.0
Loss of earnings - catastrophic event-related charges, net^(b) 5.3 5.5
(Gain) / loss on foreign currency exchanges (1.1 ) 2.7
Other adjustments, net^(a) (12.4 ) (3.6 )
*Core FFO*^*(a)(c)* $ 153.4 $ 158.0
*Weighted Average Common Shares Outstanding - Diluted* 128.7 128.2
*FFO per Share*^*(c)* $ 1.12 $ 1.14
*Core FFO per Share*^*(c)* $ 1.19 $ 1.23
^(a) Refer to Definitions and Notes for additional information.
^(b) Loss of earnings - catastrophic event-related charges, net include the following:
*Quarter Ended* *March 31, 2024* *March 31, 2023*
Hurricane Ian - Three Fort Myers, Florida RV communities impaired
Estimated loss of earnings in excess of the applicable business interruption deductible $ 5.3 $ 5.3
Hurricane Irma - Three Florida Keys communities impaired
Estimated loss of earnings in excess of the applicable business interruption deductible — 0.2
*Loss of earnings - catastrophic event-related charges, net* $ 5.3 $ 5.5
^(c) Excludes the effect of certain anti-dilutive convertible securities.
Refer to Definitions and Notes for Home sales contribution to FFO.
*Reconciliation of Net Loss Attributable to SUI Common Shareholders to NOI*
*(amounts in millions)*
*Quarter Ended* *March 31, 2024* *March 31, 2023* *As Restated*
*Net Loss Attributable to SUI Common Shareholders* $ (27.4 ) $ (44.9 )
Interest income (4.6 ) (11.4 )
Brokerage commissions and other revenues, net (3.0 ) (9.5 )
General and administrative 78.5 64.1
Catastrophic event-related charges, net 7.2 1.0
Business combination expense — 2.8
Depreciation and amortization 165.3 155.6
Asset impairments 20.7 2.4
Goodwill impairment — 15.4
Loss on extinguishment of debt 0.6 —
Interest expense 89.7 76.6
Interest on mandatorily redeemable preferred OP units / equity — 1.0
Loss on remeasurement of marketable securities — 19.9
(Gain) / loss on foreign currency exchanges (1.1 ) 2.7
(Gain) / loss on disposition of properties (5.4 ) 1.6
Other (income) / expense, net^(a) (8.0 ) 1.0
Loss on remeasurement of notes receivable 0.7 1.7
(Income) / loss from nonconsolidated affiliates (1.4 ) 0.2
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates (5.2 ) 4.5
Current tax expense 2.1 3.9
Deferred tax benefit (5.7 ) (4.6 )
Add: Preferred return to preferred OP units / equity interests 3.2 2.4
Add: Loss attributable to noncontrolling interests (1.3 ) (5.8 )
*NOI* $ 304.9 $ 280.6
*Quarter Ended* *March 31, 2024* *March 31, 2023*
Real property NOI^(a) $ 285.9 $ 254.3
Home sales NOI ^(a) 17.0 23.7
Service, retail, dining and entertainment NOI^(a) 2.0 2.6
*NOI* $ 304.9 $ 280.6
^(a) Refer to Definitions and Notes for additional information.
*Reconciliation of Net Loss Attributable to SUI Common Shareholders to Recurring EBITDA*
*(amounts in millions)*
*Quarter Ended* *March 31, 2024* *March 31, 2023* *As Restated*
*Net Loss Attributable to SUI Common Shareholders* $ (27.4 ) $ (44.9 )
Adjustments
Depreciation and amortization 165.3 155.6
Asset impairments 20.7 2.4
Goodwill impairment — 15.4
Loss on extinguishment of debt 0.6 —
Interest expense 89.7 76.6
Interest on mandatorily redeemable preferred OP units / equity — 1.0
Current tax expense 2.1 3.9
Deferred tax benefit (5.7 ) (4.6 )
(Income) / loss from nonconsolidated affiliates (1.4 ) 0.2
Less: (Gain) / loss on dispositions of properties (5.4 ) 1.6
Less: Gain on dispositions of assets, net (5.4 ) (7.9 )
*EBITDAre* $ 233.1 $ 199.3
Adjustments
Catastrophic event-related charges, net 7.2 1.0
Business combination expense — 2.8
Loss on remeasurement of marketable securities — 19.9
(Gain) / loss on foreign currency exchanges (1.1 ) 2.7
Other (income) / expense, net^(a) (8.0 ) 1.0
Loss on remeasurement of notes receivable 0.7 1.7
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates (5.2 ) 4.5
Add: Preferred return to preferred OP units / equity interests 3.2 2.4
Add: Loss attributable to noncontrolling interests (1.3 ) (5.8 )
Add: Gain on dispositions of assets, net 5.4 7.9
*Recurring EBITDA* $ 234.0 $ 237.4
^(a) Refer to Definitions and Notes for additional information.
*Real Property Operations - Total Portfolio*
*(amounts in millions, except statistical information)*
*Quarter Ended March 31, 2024* *Quarter Ended March 31, 2023*
*Financial Information* *MH* *RV* *Marinas* *UK* *Total* *MH* *RV* *Marinas* *UK* *Total*
*Revenues*
Real property (excluding transient)^(a) $ 237.6 $ 70.0 $ 92.4 $ 35.4 $ 435.4 $ 223.5 $ 61.8 $ 85.4 $ 27.5 $ 398.2
Real property - transient 0.4 34.5 4.0 2.6 41.5 0.5 37.8 3.7 1.4 43.4
Total operating revenues 238.0 104.5 96.4 38.0 476.9 224.0 99.6 89.1 28.9 441.6
*Expenses*
Property operating expenses 75.5 53.3 39.5 22.7 191.0 73.4 54.5 36.9 22.5 187.3
*Real Property NOI* $ 162.5 $ 51.2 $ 56.9 $ 15.3 $ 285.9 $ 150.6 $ 45.1 $ 52.2 $ 6.4 $ 254.3 *As of **March 31, 2024* *As of **March 31, 2023*
*Other information* *MH* *RV* *Marinas* *UK* *Total* *MH* *RV* *Marinas* *UK* *Total*
*Number of properties* 296 179 136 54 665 299 182 135 55 671
*Sites, wet slips and dry storage spaces*
Sites, wet slips and dry storage spaces^(b) 99,930 33,290 48,040 18,110 199,370 100,120 30,860 47,990 17,850 196,820
Transient sites N/A 25,560 N/A 3,220 28,780 N/A 27,610 N/A 3,260 30,870
Total 99,930 58,850 48,040 21,330 228,150 100,120 58,470 47,990 21,110 227,690
*Occupancy* 96.7 �