Net Earnings per Diluted Share of
$1.31 for the Quarter
Core FFO per Share of $2.57
for the Quarter Exceeded the High-End of Guidance
Range
Total Same Property NOI Grew by 6.7% for the
Quarter over the 2022 Period, Exceeding the High-End of Guidance
Range by 220 Basis Points
Strong Demand and Effective Expense
Management Continue to Drive Outperformance
Same Property Adjusted Occupancy for MH and
RV Increased by 170 Basis Points, Year-over-Year
Transient-to-Annual RV Site Conversions of
nearly 537 Sites for the Quarter and 1,815 for the
Year-to-Date
Revising Full-Year Core FFO per Share
Guidance for 2023 to $7.05 - $7.13
Increasing Guidance Range for Full-Year Total
Same Property NOI Growth to 6.0% - 6.4%
Establishing Preliminary Guidance for 2024
Rental Rate Increases of 5.4% for MH, 6.5% for Annual RV, and 5.6%
for Marina in North America, and 7.1% for UK
Southfield, MI, Oct. 25, 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 third quarter
results for 2023.
Financial Results for the Quarter
and Nine Months Ended September 30,
2023
- For the quarter ended September 30,
2023, net income attributable to common shareholders was
$163.1 million, or $1.31 per diluted share, compared to net
income attributable to common shareholders of $162.6 million,
or $1.32 per diluted share for the same period in 2022.
- For the nine months ended September
30, 2023, net income attributable to common shareholders was
$222.8 million, or $1.79 per diluted share, compared to net
income attributable to common shareholders of $237.3 million,
or $1.97 per diluted share, for the same period in 2022.
Non-GAAP Financial Measures
- Core Funds from Operations
("Core FFO") for the quarter and nine months ended
September 30, 2023, were $2.57 per common share and dilutive
convertible securities ("Share") and $5.76 per Share,
respectively.
- Same Property Net Operating
Income ("NOI") increased by 6.7% and 6.6% for the quarter
and nine months ended September 30, 2023, respectively, as compared
to the corresponding periods in 2022.
"In the third quarter, we again delivered strong
performance in our core real property portfolio, with Same Property
NOI growth and Core FFO exceeding our expectations," said Gary A.
Shiffman, Chairman, President and CEO. "This strength was exhibited
across Manufactured Housing, RV and Marinas, all of which
demonstrate the continued favorable backdrop of high demand and
limited supply. Furthermore, we are positioned for ongoing organic
growth with 2024 expected rental rate increases of approximately
5.4% for MH, 6.5% for RV, and 5.6% for Marina in North America and
7.1% for UK." He continued, "Our current objectives include
implementing select changes to help our best-in-class portfolio
deliver the FFO per share growth Sun shareholders historically have
enjoyed. These changes include selective capital recycling
opportunities and using the proceeds to de-lever. With the strength
of our core business, which has a positive track record throughout
economic cycles, and our focus on our durable cash flow business,
we remain confident in our ability to create shareholder
value."
OPERATING HIGHLIGHTS
North America Portfolio
Occupancy
- Total MH and annual RV occupancy
was 97.2% at September 30, 2023, as compared to 97.1% at September
30, 2022.
- During the quarter ended September
30, 2023, the number of MH and annual RV revenue producing sites
increased by 744 sites, as compared to an increase of 689 sites
during the corresponding period in 2022, an 8.0% increase.
- Transient-to-annual RV site
conversions totaled 537 sites during the third quarter of 2023 and
account for 72.2% of the revenue producing site gains. Total
transient-to-annual RV site conversions totaled 1,815 for the nine
months ended September 30, 2023.
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 for the quarter and nine months
ended September 30, 2023:
|
Quarter Ended September 30, 2023 |
|
MH |
|
RV |
|
Marina |
|
Total |
Revenue |
7.4 |
% |
|
2.2 |
% |
|
8.4 |
% |
|
5.5 |
% |
Expense |
5.7 |
% |
|
(0.8) % |
|
7.4 |
% |
|
3.0 |
% |
NOI |
8.0 |
% |
|
4.1 |
% |
|
8.9 |
% |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
MH |
|
RV |
|
Marina |
|
Total |
Revenue |
6.8 |
% |
|
3.6 |
% |
|
9.4 |
% |
|
6.2 |
% |
Expense |
8.5 |
% |
|
3.1 |
% |
|
5.1 |
% |
|
5.5 |
% |
NOI |
6.2 |
% |
|
3.9 |
% |
|
11.5 |
% |
|
6.6 |
% |
|
|
|
|
|
|
|
|
Number of
Properties |
288 |
|
|
161 |
|
|
119 |
|
|
568 |
|
Same Property adjusted blended occupancy for MH
and RV increased by 170 basis points to 98.8% at September 30,
2023, from 97.1% at September 30, 2022.
INVESTMENT ACTIVITY
During the quarter ended September 30, 2023, the
Company:
- Expanded its existing communities
by nearly 170 sites.
- Delivered over 70 sites at one
ground-up development property.
BALANCE SHEET, CAPITAL MARKETS ACTIVITY
AND OTHER ITEMS
As of September 30, 2023, the Company had $7.7
billion in debt outstanding with a weighted average interest rate
of 4.1% and a weighted average maturity of 6.8 years. At September
30, 2023, the Company's net debt to trailing twelve-month Recurring
EBITDA ratio was 6.1 times.
During the quarter, the Company entered into
interest rate swap contracts to hedge variable rate borrowings of
$125.0 million in aggregate under its senior credit facility. The
interest rate swaps lock in a weighted average SOFR rate of 4.771%,
and inclusive of spread, an all-in rate of 5.681% through the
maturity date of April 7, 2026.
Subsequent to the quarter, the Company:
- Entered into an interest rate swap
contract to hedge variable rate borrowings of $25.0 million
under its senior credit facility. The interest rate swap lock in a
weighted average SOFR rate of 4.684%, and inclusive of spread, an
all-in rate of 5.594% through the term loan maturity date of April
7, 2026.
- Terminated one SOFR interest rate
swap hedging variable rate borrowings of $50.0 million under
its senior credit facility and received a cash settlement payment
of $6.0 million. The net accumulated gain is included in
Accumulated other comprehensive income on the Company's
Consolidated Balance Sheets, and will be amortized as a reduction
to Interest expense over the term of the hedged transaction.
- Entered into a new mortgage term
loan for $252.8 million that matures in November 2030 and
bears interest at a fixed rate of 6.49%. The proceeds were used to
repay $117.8 million of mortgage term loans that mature in
2023 and pay down amounts drawn under the Company's senior credit
facility.
- Sold its 41.8 million share
position in Ingenia Communities Group (ASX: INA), generating
$102.5 million of proceeds, net of underwriting and other
estimated fees, with an estimated realized loss of $9.0 million.
The proceeds were used to pay down amounts drawn under the
Company's senior credit facility.
UK Notes Receivable from Real Estate
Operators
From time to time, the Company extends loans to
third party real estate developers and operators to facilitate the
Company's potential acquisition and development pipeline. At
September 30, 2023, the Company had a $361.1 million note
receivable due from Royale Holdings Group HoldCo Limited, a real
estate development owner / operator in the UK, and certain other
parties (the "Note"). As of the same date, the borrowings under the
Note bear interest at a weighted average rate of 12.4%. The Note is
not related to the Company's manufactured housing portfolio in the
UK that operates under the Park Holidays brand.
Since inception, the Company has elected to
measure the Note at fair value, using pricing models with the
assistance of third-party valuation specialists, in accordance with
Accounting Standards Codification Topic 820, "Fair Value
Measurements and Disclosures." The Company has also
periodically engaged third party valuation specialists to appraise
the collateral in order to assess the fair value of the Note.
The Note is collateralized by a first-priority
security interest in three real estate properties and three MH
manufacturers in the UK. The real estate collateral consists of MH
development properties that comprised a significant majority of the
total appraised value of all collateral securing the Note at
September 30, 2023.
The Note matured on July 31, 2023, and remained due at September
30, 2023. On September 29, 2023, the Company appointed receivers
over the real estate collateral and is assessing courses of action
with respect to the other collateral.
The Company expects the receivers to start to
market the real estate collateral for sale during the fourth
quarter of 2023. Upon completion of the marketing process, the
Company may elect to credit bid certain amounts due under the Note
for the real estate collateral. If that were to occur and no
third-party bid is received that exceeds the Company's credit bid,
the Company may elect to receive the real estate collateral in
satisfaction of related amounts due under the Note. If a
third-party bid is received that exceeds the Company's bid, the
Company will receive the cash proceeds of that bid up to the
outstanding loan amount including interest, fees, and penalties, as
applicable.
UK Contemplated Asset Sale
As previously disclosed, the Company had agreed to sell an
operating MH community in the UK, Sandy Bay, in February 2023,
which was expected to close in the third quarter. While the sale
contract is no longer in effect, the asset remained classified as
held for sale at September 30, 2023.
2023 GUIDANCE UPDATE
The Company is updating full-year 2023 and
establishing fourth 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 |
|
Fourth Quarter
Ending
December 31, 2023 |
|
Prior FY Guidance |
|
Revised FY Range |
|
Diluted EPS |
|
$ |
2.11 |
|
|
$ |
2.25 |
|
|
$ |
1.92 |
|
|
$ |
2.00 |
|
|
$ |
0.12 |
|
|
$ |
0.20 |
|
Depreciation and amortization |
|
|
5.07 |
|
|
|
5.07 |
|
|
|
5.06 |
|
|
|
5.06 |
|
|
|
1.26 |
|
|
|
1.26 |
|
Distributions on preferred OP units |
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Noncontrolling interest |
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Gain on sale of assets |
|
|
(0.28 |
) |
|
|
(0.28 |
) |
|
|
(0.25 |
) |
|
|
(0.25 |
) |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
Business combination expense and other acquisition related
costs |
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Other adjustments(a) |
|
|
(0.10 |
) |
|
|
(0.10 |
) |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Core
FFO(b) per
Share |
|
$ |
7.09 |
|
|
$ |
7.23 |
|
|
$ |
7.05 |
|
|
$ |
7.13 |
|
|
$ |
1.28 |
|
|
$ |
1.36 |
|
(a) Other adjustments consist
primarily of deferred taxes, changes in remeasurement (gains) /
losses, contingent legal and insurance gains and other items
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 $7.09 per Share midpoint of the revised
full-year guidance range is 1.0% lower than the prior range
provided in July, primarily reflecting higher interest expense
related to the UK Note remaining outstanding and lower expected
transient RV revenues.
For the fourth quarter ending December 31, 2023,
the Company's guidance ranges assume Total Same Property NOI growth
of 4.4% - 5.9%. The midpoints of Same Property NOI growth for the
fourth quarter ending December 31, 2023 are 5.1% for Manufactured
Housing, 3.6% for RV and 6.2% for Marina.
The assumptions underlying the Company's revised
2023 full-year guidance are as follows:
|
|
FY 2022 |
|
Expected Change in 2023 |
2023 Guidance Assumptions (dollars in
millions) |
|
Results |
|
Prior FY Guidance |
|
Revised FY Range |
Consolidated Portfolio: |
|
|
|
|
|
|
Total real property NOI |
|
|
|
6.1% - 6.9% |
|
6.9% - 7.1% |
Service, retail, dining and
entertainment NOI |
|
|
|
$50.4 - $52.9 |
|
$51.2 - $52.2 |
North America home sales
contribution to Core FFO(a) |
|
|
|
$18.9 - $21.7 |
|
$19.4 - $20.5 |
Interest
income(b) |
|
|
|
N/A |
|
$44.8 - $45.1 |
Brokerage commissions and
other, net(c) |
|
|
|
N/A |
|
$50.9 - $51.4 |
General and administrative
expenses |
|
|
|
($255.4) - ($249.9) |
|
($253.6) - ($252.1) |
|
|
|
|
|
|
|
UK |
|
|
|
|
|
|
UK real property
NOI(d) |
|
|
|
$63.6 - $65.6 |
|
$64.1 - $65.1 |
UK home sales NOI |
|
|
|
$65.7 - $75.4 |
|
$68.2 - $72.2 |
UK NOI |
|
|
|
$129.3 - $141.0 |
|
$132.3 - $137.3 |
|
|
|
|
|
|
|
Same Property
Portfolio(e) |
|
|
|
|
|
|
MH NOI (288 properties) |
|
$ |
569.2 |
|
5.2% - 5.8% |
|
5.8% - 6.1% |
RV NOI (161 properties) |
|
$ |
281.8 |
|
3.4% - 4.6% |
|
3.5% - 4.2% |
Marina NOI (119
properties) |
|
$ |
210.8 |
|
8.0% - 9.0% |
|
10.0% - 10.3% |
|
|
|
|
|
|
|
Total Same Property
Pool (568 Properties): |
|
|
|
|
|
|
Revenue from real
property |
|
$ |
1,600.4 |
|
6.2% - 6.5% |
|
5.8% - 6.0% |
Property operating
expenses(f)(g) |
|
$ |
538.6 |
|
7.2% - 7.9% |
|
5.2% - 5.4% |
Same Property
NOI |
|
$ |
1,061.8 |
|
5.3% - 6.1% |
|
6.0% - 6.4% |
|
|
|
|
|
|
|
Exchange rates in
effect at: |
|
December 31, 2022 |
|
June 30, 2023 |
|
September 30, 2023 |
U.S. Dollar ("USD") / Pound
Sterling ("GBP") |
|
|
1.21 |
|
1.27 |
|
1.22 |
USD / Canadian Dollar
("CAD") |
|
|
0.74 |
|
0.75 |
|
0.74 |
USD /
Australian Dollar ("AUS") |
|
|
0.68 |
|
0.66 |
|
0.64 |
Footnotes
to 2023 Guidance Assumptions |
|
|
|
|
|
|
(a) |
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. |
(b) |
Interest income recognized from the UK Note during the first nine
months ended September 30, 2023, totaled $27.9 million, or $0.22
per Share. No interest income from the UK Note is included in the
Company's fourth quarter guidance. The following table summarizes
the interest income contribution inclusive of fourth quarter
guidance: |
|
Interest Income - 2023 Guidance |
|
Nine Months
Ended
September 30, 2023 |
|
4Q23
Guidance |
|
FY 2023
Guidance |
|
UK Note |
|
$ |
27.9 |
|
$ |
0.0 |
|
$ |
27.9 |
|
Other |
|
|
12.7 |
|
4.2 - 4.5 |
|
16.9 - 17.2 |
|
Total |
|
$ |
40.6 |
|
$4.2 - $4.5 |
|
$44.8 - $45.1 |
(c) |
For the third
quarter and nine months ended September 30, 2023, Brokerage
commissions and other, net includes recognition of $12.9 million of
business interruption proceeds, which nets against accrued 'Loss of
earnings - catastrophic event-related charges, net' in the
Reconciliation of Net Income Attributable to SUI Common
Shareholders to Core FFO table. |
(d) |
UK Real Property NOI is included in the Total Real Property NOI
forecast and the properties are excluded from the 2023 Same
Property pool. |
(e) |
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. |
(f) |
Total Same Property results net $101.1 million of utility revenue
for 2022 actual results and $109.7 million for 2023 guidance
against the related utility expense in property operating
expenses. |
(g) |
2022 actual results exclude $1.3 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. |
Seasonality (Updated as of October 25, 2023) |
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
Same Property NOI: |
|
|
|
|
|
|
|
|
MH |
|
25 |
% |
|
25 |
% |
|
25 |
% |
|
25 |
% |
RV |
|
16 |
% |
|
25 |
% |
|
42 |
% |
|
17 |
% |
Marina |
|
20 |
% |
|
27 |
% |
|
30 |
% |
|
23 |
% |
Total Same Property |
|
21 |
% |
|
26 |
% |
|
30 |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
UK NOI: |
|
|
|
|
|
|
|
|
Real property |
|
10 |
% |
|
27 |
% |
|
44 |
% |
|
19 |
% |
Home sales |
|
18 |
% |
|
35 |
% |
|
33 |
% |
|
14 |
% |
Total NOI from UK Operations |
|
14 |
% |
|
31 |
% |
|
38 |
% |
|
17 |
% |
|
|
|
|
|
|
|
|
|
Consolidated Service,
Retail, Dining and Entertainment NOI |
|
5 |
% |
|
36 |
% |
|
49 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA |
|
19 |
% |
|
27 |
% |
|
34 |
% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
Core FFO per Share |
|
17 |
% |
|
28 |
% |
|
36 |
% |
|
19 |
% |
Preliminary 2024 Rental Rate
Increases
The Company expects to realize the following rental rate increases,
on average, during 2024:
Average 2024 Rental Rate Increases Expected |
|
Manufactured Housing: |
|
North America |
5.4 |
% |
UK |
7.1 |
% |
Annual RV |
6.5 |
% |
Marina |
5.6 |
% |
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 October 25, 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 third quarter
results will be held on Thursday, October 26, 2023 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
November 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 13739128. 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 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, 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, 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 September 30, 2023, the Company owned,
operated, or had an interest in a portfolio of 670 developed MH, RV
and Marina properties comprising approximately 180,170 developed
sites and approximately 48,030 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 |
|
Eric Wolfe |
|
eric.wolfe@citi.com |
|
|
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 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
Financial
Information |
|
|
|
|
|
|
|
|
|
Basic earnings / (loss) per
share* |
$ |
1.31 |
|
|
$ |
0.72 |
|
|
$ |
(0.24 |
) |
|
$ |
0.04 |
|
|
$ |
1.32 |
|
Diluted earnings / (loss) per
share* |
$ |
1.31 |
|
|
$ |
0.72 |
|
|
$ |
(0.24 |
) |
|
$ |
0.04 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
Cash distributions declared
per common share* |
$ |
0.93 |
|
|
$ |
0.93 |
|
|
$ |
0.93 |
|
|
$ |
0.88 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
FFO per
Share(a)* |
$ |
2.55 |
|
|
$ |
1.95 |
|
|
$ |
1.14 |
|
|
$ |
1.02 |
|
|
$ |
2.54 |
|
Core FFO per
Share(a)* |
$ |
2.57 |
|
|
$ |
1.96 |
|
|
$ |
1.23 |
|
|
$ |
1.33 |
|
|
$ |
2.65 |
|
|
|
|
|
|
|
|
|
|
|
Real Property NOI |
|
|
|
|
|
|
|
|
|
MH |
$ |
182.5 |
|
|
$ |
168.7 |
|
|
$ |
156.9 |
|
|
$ |
153.5 |
|
|
$ |
166.8 |
|
RV |
|
128.4 |
|
|
|
76.5 |
|
|
|
45.8 |
|
|
|
46.1 |
|
|
|
127.0 |
|
Marinas |
|
83.1 |
|
|
|
72.4 |
|
|
|
52.0 |
|
|
|
58.3 |
|
|
|
77.8 |
|
Total |
$ |
394.0 |
|
|
$ |
317.6 |
|
|
$ |
254.7 |
|
|
$ |
257.9 |
|
|
$ |
371.6 |
|
|
|
|
|
|
|
|
|
|
|
Recurring EBITDA |
$ |
433.0 |
|
|
$ |
339.7 |
|
|
$ |
237.4 |
|
|
$ |
236.3 |
|
|
$ |
408.1 |
|
TTM Recurring EBITDA /
Interest* |
4.0 x |
|
4.3 x |
|
4.6 x |
|
5.2 x |
|
5.7 x |
Net Debt / TTM Recurring
EBITDA |
6.1 x |
|
6.2 x |
|
6.1 x |
|
6.0 x |
|
5.7 x |
|
|
|
|
|
|
|
|
|
|
Balance
Sheet |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
17,605.3 |
|
|
$ |
17,561.4 |
|
|
$ |
17,363.8 |
|
|
$ |
17,084.2 |
|
|
$ |
16,484.6 |
|
Total debt |
$ |
7,665.0 |
|
|
$ |
7,614.0 |
|
|
$ |
7,462.0 |
|
|
$ |
7,197.2 |
|
|
$ |
6,711.0 |
|
Total liabilities |
$ |
9,465.0 |
|
|
$ |
9,474.8 |
|
|
$ |
9,294.8 |
|
|
$ |
8,992.8 |
|
|
$ |
8,354.6 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Information* |
|
|
|
|
|
|
|
|
|
Properties |
|
|
|
|
|
|
|
|
|
MH |
|
353 |
|
|
|
354 |
|
|
|
354 |
|
|
|
353 |
|
|
|
350 |
|
RV |
|
182 |
|
|
|
182 |
|
|
|
182 |
|
|
|
182 |
|
|
|
181 |
|
Marina |
|
135 |
|
|
|
135 |
|
|
|
135 |
|
|
|
134 |
|
|
|
131 |
|
Total |
|
670 |
|
|
|
671 |
|
|
|
671 |
|
|
|
669 |
|
|
|
662 |
|
|
|
|
|
|
|
|
|
|
|
Sites, Wet Slips and Dry
Storage Spaces* |
|
|
|
|
|
|
|
|
|
Manufactured homes |
|
118,250 |
|
|
|
118,170 |
|
|
|
117,970 |
|
|
|
118,020 |
|
|
|
116,910 |
|
Annual RV |
|
32,150 |
|
|
|
31,620 |
|
|
|
30,860 |
|
|
|
30,330 |
|
|
|
32,030 |
|
Transient site |
|
29,770 |
|
|
|
30,270 |
|
|
|
30,870 |
|
|
|
31,180 |
|
|
|
31,150 |
|
Total sites |
|
180,170 |
|
|
|
180,060 |
|
|
|
179,700 |
|
|
|
179,530 |
|
|
|
180,090 |
|
Marina wet slips and dry storage spaces(b) |
|
48,030 |
|
|
|
48,180 |
|
|
|
47,990 |
|
|
|
47,820 |
|
|
|
46,190 |
|
|
|
|
|
|
|
|
|
|
|
Occupancy* |
|
|
|
|
|
|
|
|
|
MH occupancy (including UK) |
|
95.4 |
% |
|
|
95.3 |
% |
|
|
95.1 |
% |
|
|
95.0 |
% |
|
|
95.5 |
% |
Annual RV occupancy |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Blended MH and annual RV occupancy |
|
96.4 |
% |
|
|
96.3 |
% |
|
|
96.1 |
% |
|
|
96.0 |
% |
|
|
96.5 |
% |
|
|
|
|
|
|
|
|
|
|
MH and RV
Revenue Producing Site Net Gains(c)
(excluding UK Operations)* |
MH leased sites, net |
|
207 |
|
|
|
285 |
|
|
|
278 |
|
|
|
346 |
|
|
|
122 |
|
RV leased sites, net |
|
537 |
|
|
|
754 |
|
|
|
524 |
|
|
|
267 |
|
|
|
567 |
|
Total leased sites, net |
|
744 |
|
|
|
1,039 |
|
|
|
802 |
|
|
|
613 |
|
|
|
689 |
|
(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.
(d)
Portfolio Overview as of September 30, 2023
|
|
MH & RV Properties |
|
|
Properties
|
|
MH & Annual RV |
|
RV Transient Sites
|
|
Total MH and RV Sites
|
|
Sites for Development
|
Location |
|
|
Sites |
|
Occupancy % |
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
Florida |
|
129 |
|
40,460 |
|
97.5 |
% |
|
3,950 |
|
44,410 |
|
3,400 |
Michigan |
|
85 |
|
32,850 |
|
96.7 |
% |
|
630 |
|
33,480 |
|
1,300 |
California |
|
37 |
|
6,920 |
|
98.8 |
% |
|
1,880 |
|
8,800 |
|
850 |
Texas |
|
31 |
|
8,950 |
|
95.2 |
% |
|
2,580 |
|
11,530 |
|
4,000 |
Ontario, Canada |
|
16 |
|
4,680 |
|
100.0 |
% |
|
500 |
|
5,180 |
|
1,450 |
Connecticut |
|
16 |
|
1,930 |
|
94.8 |
% |
|
80 |
|
2,010 |
|
— |
Maine |
|
15 |
|
2,470 |
|
95.6 |
% |
|
1,070 |
|
3,540 |
|
200 |
Arizona |
|
13 |
|
4,570 |
|
94.4 |
% |
|
940 |
|
5,510 |
|
— |
Indiana |
|
12 |
|
3,160 |
|
97.2 |
% |
|
1,020 |
|
4,180 |
|
180 |
New Jersey |
|
11 |
|
3,000 |
|
100.0 |
% |
|
1,050 |
|
4,050 |
|
260 |
Colorado |
|
11 |
|
2,810 |
|
89.1 |
% |
|
990 |
|
3,800 |
|
1,490 |
Virginia |
|
10 |
|
1,480 |
|
99.9 |
% |
|
1,970 |
|
3,450 |
|
750 |
New York |
|
10 |
|
1,520 |
|
99.1 |
% |
|
1,420 |
|
2,940 |
|
780 |
New Hampshire |
|
10 |
|
1,740 |
|
99.9 |
% |
|
680 |
|
2,420 |
|
80 |
Other |
|
74 |
|
15,810 |
|
98.5 |
% |
|
7,730 |
|
23,540 |
|
940 |
North America Total |
|
480 |
|
132,350 |
|
97.2 |
% |
|
26,490 |
|
158,840 |
|
15,680 |
United Kingdom |
|
55 |
|
18,050 |
|
90.6 |
% |
|
3,280 |
|
21,330 |
|
2,290 |
Total |
|
535 |
|
150,400 |
|
96.4 |
% |
|
29,770 |
|
180,170 |
|
17,970 |
|
|
Marina |
|
|
|
|
Properties
|
|
|
|
Wet Slips and Dry Storage Spaces
|
|
|
Location |
|
|
|
|
|
|
Florida |
|
21 |
|
|
|
5,200 |
|
|
Rhode Island |
|
12 |
|
|
|
3,460 |
|
|
California |
|
11 |
|
|
|
5,710 |
|
|
Connecticut |
|
11 |
|
|
|
3,330 |
|
|
New York |
|
9 |
|
|
|
3,020 |
|
|
Maryland |
|
9 |
|
|
|
2,480 |
|
|
Massachusetts |
|
9 |
|
|
|
2,520 |
|
|
Other |
|
53 |
|
|
|
22,310 |
|
|
Total |
|
135 |
|
|
|
48,030 |
|
|
|
|
Properties
|
|
|
|
Sites, Wet Slips and Dry Storage Spaces
|
|
|
|
|
|
|
|
|
|
Total
Portfolio |
|
670 |
|
|
|
228,200 |
|
|
Consolidated Balance Sheets
(amounts in millions)
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Land |
$ |
3,996.4 |
|
|
$ |
4,322.3 |
|
Land improvements and buildings |
|
11,418.4 |
|
|
|
10,903.4 |
|
Rental homes and improvements |
|
725.6 |
|
|
|
645.2 |
|
Furniture, fixtures and equipment |
|
995.1 |
|
|
|
839.0 |
|
Investment property |
|
17,135.5 |
|
|
|
16,709.9 |
|
Accumulated depreciation |
|
(3,144.8 |
) |
|
|
(2,738.9 |
) |
Investment property, net |
|
13,990.7 |
|
|
|
13,971.0 |
|
Cash, cash equivalents and restricted cash |
|
62.0 |
|
|
|
90.4 |
|
Marketable securities |
|
112.8 |
|
|
|
127.3 |
|
Inventory of manufactured homes |
|
219.8 |
|
|
|
202.7 |
|
Notes and other receivables, net |
|
832.2 |
|
|
|
617.3 |
|
Goodwill |
|
1,084.1 |
|
|
|
1,018.4 |
|
Other intangible assets, net |
|
374.7 |
|
|
|
402.0 |
|
Other assets, net |
|
929.0 |
|
|
|
655.1 |
|
Total Assets |
$ |
17,605.3 |
|
|
$ |
17,084.2 |
|
Liabilities |
|
|
|
Secured debt |
$ |
3,359.5 |
|
|
$ |
3,217.8 |
|
Unsecured debt |
|
4,305.5 |
|
|
|
3,979.4 |
|
Distributions payable |
|
118.2 |
|
|
|
111.3 |
|
Advanced reservation deposits and rent |
|
372.7 |
|
|
|
352.1 |
|
Accrued expenses and accounts payable |
|
380.2 |
|
|
|
396.3 |
|
Other liabilities |
|
928.9 |
|
|
|
935.9 |
|
Total Liabilities |
|
9,465.0 |
|
|
|
8,992.8 |
|
Commitments and contingencies |
|
|
|
Temporary equity |
|
304.5 |
|
|
|
202.9 |
|
Shareholders'
Equity |
|
|
|
Common stock |
|
1.2 |
|
|
|
1.2 |
|
Additional paid-in capital |
|
9,581.6 |
|
|
|
9,549.7 |
|
Accumulated other comprehensive income / (loss) |
|
5.2 |
|
|
|
(9.9 |
) |
Distributions in excess of accumulated earnings |
|
(1,848.2 |
) |
|
|
(1,731.2 |
) |
Total SUI shareholders' equity |
|
7,739.8 |
|
|
|
7,809.8 |
|
Noncontrolling interests |
|
|
|
Common and preferred OP units |
|
96.0 |
|
|
|
78.7 |
|
Total noncontrolling interests |
|
96.0 |
|
|
|
78.7 |
|
Total Shareholders' Equity |
|
7,835.8 |
|
|
|
7,888.5 |
|
Total Liabilities, Temporary Equity and Shareholders'
Equity |
$ |
17,605.3 |
|
|
$ |
17,084.2 |
|
Consolidated Statements of Operations
(amounts in millions, except for per share
amounts)
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
|
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Real property (excluding transient) |
$ |
457.2 |
|
|
$ |
425.3 |
|
|
7.5 |
% |
|
$ |
1,285.5 |
|
|
$ |
1,158.1 |
|
|
11.0 |
% |
Real property - transient |
|
161.6 |
|
|
|
160.4 |
|
|
0.7 |
% |
|
|
300.9 |
|
|
|
303.5 |
|
|
(0.9) % |
Home sales |
|
117.8 |
|
|
|
150.7 |
|
|
(21.8) % |
|
|
326.7 |
|
|
|
358.1 |
|
|
(8.8) % |
Service, retail, dining and entertainment |
|
205.4 |
|
|
|
174.2 |
|
|
17.9 |
% |
|
|
498.9 |
|
|
|
423.0 |
|
|
17.9 |
% |
Interest |
|
15.2 |
|
|
|
11.2 |
|
|
35.7 |
% |
|
|
40.6 |
|
|
|
25.3 |
|
|
60.5 |
% |
Brokerage commissions and other, net |
|
26.0 |
|
|
|
10.8 |
|
|
140.7 |
% |
|
|
45.3 |
|
|
|
27.4 |
|
|
65.3 |
% |
Total Revenues |
|
983.2 |
|
|
|
932.6 |
|
|
5.4 |
% |
|
|
2,497.9 |
|
|
|
2,295.4 |
|
|
8.8 |
% |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
195.5 |
|
|
|
184.7 |
|
|
5.8 |
% |
|
|
530.7 |
|
|
|
469.2 |
|
|
13.1 |
% |
Real estate tax |
|
29.3 |
|
|
|
29.4 |
|
|
(0.3) % |
|
|
89.4 |
|
|
|
83.2 |
|
|
7.5 |
% |
Home costs and selling |
|
80.5 |
|
|
|
96.4 |
|
|
(16.5) % |
|
|
224.9 |
|
|
|
235.2 |
|
|
(4.4) % |
Service, retail, dining and entertainment |
|
178.7 |
|
|
|
144.9 |
|
|
23.3 |
% |
|
|
450.4 |
|
|
|
363.3 |
|
|
24.0 |
% |
General and administrative |
|
66.2 |
|
|
|
69.1 |
|
|
(4.2) % |
|
|
192.4 |
|
|
|
187.0 |
|
|
2.9 |
% |
Catastrophic event-related charges, net |
|
(3.1 |
) |
|
|
12.2 |
|
|
(125.4) % |
|
|
(2.2 |
) |
|
|
12.3 |
|
|
(117.9) % |
Business combinations |
|
— |
|
|
|
8.4 |
|
|
(100.0) % |
|
|
3.0 |
|
|
|
23.9 |
|
|
(87.4) % |
Depreciation and amortization |
|
162.6 |
|
|
|
149.7 |
|
|
8.6 |
% |
|
|
482.3 |
|
|
|
447.7 |
|
|
7.7 |
% |
Asset impairments |
|
1.2 |
|
|
|
1.6 |
|
|
(25.0) % |
|
|
10.1 |
|
|
|
2.3 |
|
|
N/M |
Loss on extinguishment of debt |
|
— |
|
|
|
4.0 |
|
|
(100.0) % |
|
|
— |
|
|
|
4.4 |
|
|
(100.0) % |
Interest |
|
84.1 |
|
|
|
61.7 |
|
|
36.3 |
% |
|
|
239.9 |
|
|
|
162.2 |
|
|
47.9 |
% |
Interest on mandatorily redeemable preferred OP units / equity |
|
0.8 |
|
|
|
1.0 |
|
|
(20.0) % |
|
|
2.7 |
|
|
|
3.1 |
|
|
(12.9) % |
Total Expenses |
|
795.8 |
|
|
|
763.1 |
|
|
4.3 |
% |
|
|
2,223.6 |
|
|
|
1,993.8 |
|
|
11.5 |
% |
Income Before Other
Items |
|
187.4 |
|
|
|
169.5 |
|
|
10.6 |
% |
|
|
274.3 |
|
|
|
301.6 |
|
|
(9.1) % |
Gain / (loss) on remeasurement of marketable securities |
|
6.1 |
|
|
|
(7.2 |
) |
|
N/M |
|
|
(8.0 |
) |
|
|
(74.0 |
) |
|
(89.2) % |
Gain / (loss) on foreign currency exchanges |
|
(6.5 |
) |
|
|
14.9 |
|
|
N/M |
|
|
(6.5 |
) |
|
|
21.7 |
|
|
N/M |
Gain / (loss) on dispositions of properties |
|
(0.7 |
) |
|
|
(0.8 |
) |
|
(12.5) % |
|
|
(2.9 |
) |
|
|
12.5 |
|
|
N/M |
Other income / (expense), net(a) |
|
(3.7 |
) |
|
|
2.8 |
|
|
N/M |
|
|
(5.5 |
) |
|
|
2.6 |
|
|
N/M |
Gain / (loss) on remeasurement of notes receivable |
|
(1.3 |
) |
|
|
(0.1 |
) |
|
N/M |
|
|
(3.1 |
) |
|
|
0.1 |
|
|
N/M |
Income from nonconsolidated affiliates |
|
1.4 |
|
|
|
2.0 |
|
|
(30.0) % |
|
|
0.5 |
|
|
|
3.8 |
|
|
(86.8) % |
Gain / (loss) on remeasurement of investment in nonconsolidated
affiliates |
|
— |
|
|
|
(0.4 |
) |
|
(100.0) % |
|
|
(4.5 |
) |
|
|
0.1 |
|
|
N/M |
Current tax expense |
|
(4.6 |
) |
|
|
(7.3 |
) |
|
(37.0) % |
|
|
(13.9 |
) |
|
|
(12.5 |
) |
|
11.2 |
% |
Deferred tax benefit |
|
2.3 |
|
|
|
3.6 |
|
|
(36.1) % |
|
|
14.6 |
|
|
|
3.9 |
|
|
274.4 |
% |
Net
Income |
|
180.4 |
|
|
|
177.0 |
|
|
1.9 |
% |
|
|
245.0 |
|
|
|
259.8 |
|
|
(5.7) % |
Less: Preferred return to preferred OP units / equity
interests |
|
3.3 |
|
|
|
2.5 |
|
|
32.0 |
% |
|
|
9.0 |
|
|
|
8.6 |
|
|
4.7 |
% |
Less: Income attributable to noncontrolling interests |
|
14.0 |
|
|
|
11.9 |
|
|
17.6 |
% |
|
|
13.2 |
|
|
|
13.9 |
|
|
(5.0) % |
Net Income
Attributable to SUI Common Shareholders |
$ |
163.1 |
|
|
$ |
162.6 |
|
|
0.3 |
% |
|
$ |
222.8 |
|
|
$ |
237.3 |
|
|
(6.1) % |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic(a) |
|
123.5 |
|
|
|
122.4 |
|
|
0.9 |
% |
|
|
123.4 |
|
|
|
119.2 |
|
|
3.5 |
% |
Weighted average common shares
outstanding - diluted(a) |
|
123.5 |
|
|
|
122.8 |
|
|
0.6 |
% |
|
|
123.4 |
|
|
|
121.9 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.31 |
|
|
$ |
1.32 |
|
|
(0.8) % |
|
$ |
1.79 |
|
|
$ |
1.98 |
|
|
(9.6) % |
Diluted earnings per
share(b) |
$ |
1.31 |
|
|
$ |
1.32 |
|
|
(0.8) % |
|
$ |
1.79 |
|
|
$ |
1.97 |
|
|
(9.1) % |
(a) Refer to Definitions and Notes
for additional information.
(b) Excludes the effect of certain
anti-dilutive convertible securities.
N/M = Percentage change is not meaningful.
Reconciliation of Net Income Attributable to SUI Common
Shareholders to Core FFO
(amounts in millions, except for per share
data)
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Net Income
Attributable to SUI Common Shareholders |
$ |
163.1 |
|
|
$ |
162.6 |
|
|
$ |
222.8 |
|
|
$ |
237.3 |
|
Adjustments |
|
|
|
|
|
|
|
Depreciation and amortization |
|
162.2 |
|
|
|
149.2 |
|
|
|
480.5 |
|
|
|
446.3 |
|
Depreciation on nonconsolidated affiliates |
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
Asset impairments |
|
1.2 |
|
|
|
1.6 |
|
|
|
10.1 |
|
|
|
2.3 |
|
(Gain) / loss on remeasurement of marketable securities |
|
(6.1 |
) |
|
|
7.2 |
|
|
|
8.0 |
|
|
|
74.0 |
|
(Gain) / loss on remeasurement of investment in nonconsolidated
affiliates |
|
— |
|
|
|
0.4 |
|
|
|
4.5 |
|
|
|
(0.1 |
) |
(Gain) / loss on remeasurement of notes receivable |
|
1.3 |
|
|
|
0.1 |
|
|
|
3.1 |
|
|
|
(0.1 |
) |
(Gain) / loss on dispositions of properties, including tax
effect |
|
0.7 |
|
|
|
0.8 |
|
|
|
5.0 |
|
|
|
(12.5 |
) |
Add: Returns on preferred OP units |
|
1.8 |
|
|
|
1.3 |
|
|
|
6.2 |
|
|
|
9.5 |
|
Add: Income attributable to noncontrolling interests |
|
12.6 |
|
|
|
10.5 |
|
|
|
11.9 |
|
|
|
14.1 |
|
Gain on dispositions of assets, net |
|
(10.5 |
) |
|
|
(11.9 |
) |
|
|
(29.0 |
) |
|
|
(44.2 |
) |
FFO(a) |
$ |
326.4 |
|
|
$ |
321.8 |
|
|
$ |
723.3 |
|
|
$ |
726.7 |
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
Business combination expense and other acquisition related
costs(a) |
|
4.2 |
|
|
|
19.2 |
|
|
|
15.6 |
|
|
|
40.1 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
4.0 |
|
|
|
— |
|
|
|
4.4 |
|
Catastrophic event-related charges, net |
|
(3.1 |
) |
|
|
12.2 |
|
|
|
(2.2 |
) |
|
|
12.3 |
|
Loss of earnings - catastrophic event-related charges,
net(b) |
|
(6.1 |
) |
|
|
0.2 |
|
|
|
4.9 |
|
|
|
0.2 |
|
(Gain) / loss on foreign currency exchanges |
|
6.5 |
|
|
|
(14.9 |
) |
|
|
6.5 |
|
|
|
(21.7 |
) |
Other adjustments, net(a) |
|
1.1 |
|
|
|
(6.5 |
) |
|
|
(9.6 |
) |
|
|
(5.1 |
) |
Core
FFO(a)(c) |
$ |
329.0 |
|
|
$ |
336.0 |
|
|
$ |
738.5 |
|
|
$ |
756.9 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding - Diluted |
|
128.0 |
|
|
|
126.7 |
|
|
|
128.3 |
|
|
|
125.4 |
|
|
|
|
|
|
|
|
|
FFO per
Share(c) |
$ |
2.55 |
|
|
$ |
2.54 |
|
|
$ |
5.64 |
|
|
$ |
5.80 |
|
|
|
|
|
|
|
|
|
Core FFO per
Share(c) |
$ |
2.57 |
|
|
$ |
2.65 |
|
|
$ |
5.76 |
|
|
$ |
6.04 |
|
(a) Refer to Definitions and Notes
for additional information.
(b) Loss of earnings - catastrophic
event-related charges, net include the following:
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2023 |
Hurricane Ian - Three Fort
Myers, Florida RV communities impaired |
|
|
|
Estimated loss of earnings in excess of the applicable business
interruption deductible |
$ |
6.3 |
|
|
$ |
16.8 |
|
Insurance recoveries received for previously estimated loss of
earnings through April 30, 2023 |
|
(11.8 |
) |
|
|
(11.8 |
) |
Hurricane Irma - Three Florida
Keys communities impaired |
|
|
|
Estimated loss of earnings in excess of the applicable business
interruption deductible |
|
— |
|
|
|
0.5 |
|
Reversal of unpaid previously estimated loss of earnings that the
Company does not expect to recover |
|
(0.6 |
) |
|
|
(0.6 |
) |
Loss of earnings -
catastrophic event-related charges, net |
$ |
(6.1 |
) |
|
$ |
4.9 |
|
(c) Excludes the effect of certain
anti-dilutive convertible securities.
Refer to Definitions and Notes for additional
information for Home sales contribution to FFO.
Reconciliation of Net Income Attributable to SUI Common
Shareholders to NOI
(amounts in millions)
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Net Income
Attributable to SUI Common Shareholders |
$ |
163.1 |
|
|
$ |
162.6 |
|
|
$ |
222.8 |
|
|
$ |
237.3 |
|
Interest income |
|
(15.2 |
) |
|
|
(11.2 |
) |
|
|
(40.6 |
) |
|
|
(25.3 |
) |
Brokerage commissions and other revenues, net |
|
(26.0 |
) |
|
|
(10.8 |
) |
|
|
(45.3 |
) |
|
|
(27.4 |
) |
General and administrative |
|
66.2 |
|
|
|
69.1 |
|
|
|
192.4 |
|
|
|
187.0 |
|
Catastrophic event-related charges, net |
|
(3.1 |
) |
|
|
12.2 |
|
|
|
(2.2 |
) |
|
|
12.3 |
|
Business combination expense |
|
— |
|
|
|
8.4 |
|
|
|
3.0 |
|
|
|
23.9 |
|
Depreciation and amortization |
|
162.6 |
|
|
|
149.7 |
|
|
|
482.3 |
|
|
|
447.7 |
|
Asset impairments |
|
1.2 |
|
|
|
1.6 |
|
|
|
10.1 |
|
|
|
2.3 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
4.0 |
|
|
|
— |
|
|
|
4.4 |
|
Interest expense |
|
84.1 |
|
|
|
61.7 |
|
|
|
239.9 |
|
|
|
162.2 |
|
Interest on mandatorily redeemable preferred OP units / equity |
|
0.8 |
|
|
|
1.0 |
|
|
|
2.7 |
|
|
|
3.1 |
|
(Gain) / loss on remeasurement of marketable securities |
|
(6.1 |
) |
|
|
7.2 |
|
|
|
8.0 |
|
|
|
74.0 |
|
(Gain) / loss on foreign currency exchanges |
|
6.5 |
|
|
|
(14.9 |
) |
|
|
6.5 |
|
|
|
(21.7 |
) |
(Gain) / loss on disposition of properties |
|
0.7 |
|
|
|
0.8 |
|
|
|
2.9 |
|
|
|
(12.5 |
) |
Other (income) / expense, net(a) |
|
3.7 |
|
|
|
(2.8 |
) |
|
|
5.5 |
|
|
|
(2.6 |
) |
(Gain) / loss on remeasurement of notes receivable |
|
1.3 |
|
|
|
0.1 |
|
|
|
3.1 |
|
|
|
(0.1 |
) |
Income from nonconsolidated affiliates |
|
(1.4 |
) |
|
|
(2.0 |
) |
|
|
(0.5 |
) |
|
|
(3.8 |
) |
(Gain) / loss on remeasurement of investment in nonconsolidated
affiliates |
|
— |
|
|
|
0.4 |
|
|
|
4.5 |
|
|
|
(0.1 |
) |
Current tax expense |
|
4.6 |
|
|
|
7.3 |
|
|
|
13.9 |
|
|
|
12.5 |
|
Deferred tax benefit |
|
(2.3 |
) |
|
|
(3.6 |
) |
|
|
(14.6 |
) |
|
|
(3.9 |
) |
Add: Preferred return to preferred OP units / equity interests |
|
3.3 |
|
|
|
2.5 |
|
|
|
9.0 |
|
|
|
8.6 |
|
Add: Income attributable to noncontrolling interests |
|
14.0 |
|
|
|
11.9 |
|
|
|
13.2 |
|
|
|
13.9 |
|
NOI |
$ |
458.0 |
|
|
$ |
455.2 |
|
|
$ |
1,116.6 |
|
|
$ |
1,091.8 |
|
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Real Property
NOI(a) |
$ |
394.0 |
|
$ |
371.6 |
|
$ |
966.3 |
|
$ |
909.2 |
Home Sales
NOI(a) |
|
37.3 |
|
|
54.3 |
|
|
101.8 |
|
|
122.9 |
Service, retail, dining and
entertainment NOI(a) |
|
26.7 |
|
|
29.3 |
|
|
48.5 |
|
|
59.7 |
NOI |
$ |
458.0 |
|
$ |
455.2 |
|
$ |
1,116.6 |
|
$ |
1,091.8 |
(a) Refer to Definitions and Notes
for additional information.
Reconciliation of Net Income Attributable to SUI Common
Shareholders to Recurring EBITDA
(amounts in millions)
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Net Income
Attributable to SUI Common Shareholders |
$ |
163.1 |
|
|
$ |
162.6 |
|
|
$ |
222.8 |
|
|
$ |
237.3 |
|
Adjustments |
|
|
|
|
|
|
|
Depreciation and amortization |
|
162.6 |
|
|
|
149.7 |
|
|
|
482.3 |
|
|
|
447.7 |
|
Asset impairments |
|
1.2 |
|
|
|
1.6 |
|
|
|
10.1 |
|
|
|
2.3 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
4.0 |
|
|
|
— |
|
|
|
4.4 |
|
Interest expense |
|
84.1 |
|
|
|
61.7 |
|
|
|
239.9 |
|
|
|
162.2 |
|
Interest on mandatorily redeemable preferred OP units / equity |
|
0.8 |
|
|
|
1.0 |
|
|
|
2.7 |
|
|
|
3.1 |
|
Current tax expense |
|
4.6 |
|
|
|
7.3 |
|
|
|
13.9 |
|
|
|
12.5 |
|
Deferred tax benefit |
|
(2.3 |
) |
|
|
(3.6 |
) |
|
|
(14.6 |
) |
|
|
(3.9 |
) |
Income from nonconsolidated affiliates |
|
(1.4 |
) |
|
|
(2.0 |
) |
|
|
(0.5 |
) |
|
|
(3.8 |
) |
Less: (Gain) / loss on dispositions of properties |
|
0.7 |
|
|
|
0.8 |
|
|
|
2.9 |
|
|
|
(12.5 |
) |
Less: Gain on dispositions of assets, net |
|
(10.5 |
) |
|
|
(11.9 |
) |
|
|
(29.0 |
) |
|
|
(44.2 |
) |
EBITDAre |
$ |
402.9 |
|
|
$ |
371.2 |
|
|
$ |
930.5 |
|
|
$ |
805.1 |
|
Adjustments |
|
|
|
|
|
|
|
Catastrophic event-related charges, net |
|
(3.1 |
) |
|
|
12.2 |
|
|
|
(2.2 |
) |
|
|
12.3 |
|
Business combination expense |
|
— |
|
|
|
8.4 |
|
|
|
3.0 |
|
|
|
23.9 |
|
(Gain) / loss on remeasurement of marketable securities |
|
(6.1 |
) |
|
|
7.2 |
|
|
|
8.0 |
|
|
|
74.0 |
|
(Gain) / loss on foreign currency exchanges |
|
6.5 |
|
|
|
(14.9 |
) |
|
|
6.5 |
|
|
|
(21.7 |
) |
Other (income) / expense, net(a) |
|
3.7 |
|
|
|
(2.8 |
) |
|
|
5.5 |
|
|
|
(2.6 |
) |
(Gain) / loss on remeasurement of notes receivable |
|
1.3 |
|
|
|
0.1 |
|
|
|
3.1 |
|
|
|
(0.1 |
) |
(Gain) / loss on remeasurement of investment in nonconsolidated
affiliates |
|
— |
|
|
|
0.4 |
|
|
|
4.5 |
|
|
|
(0.1 |
) |
Add: Preferred return to preferred OP units / equity interests |
|
3.3 |
|
|
|
2.5 |
|
|
|
9.0 |
|
|
|
8.6 |
|
Add: Income attributable to noncontrolling interests |
|
14.0 |
|
|
|
11.9 |
|
|
|
13.2 |
|
|
|
13.9 |
|
Add: Gain on dispositions of assets, net |
|
10.5 |
|
|
|
11.9 |
|
|
|
29.0 |
|
|
|
44.2 |
|
Recurring
EBITDA |
$ |
433.0 |
|
|
$ |
408.1 |
|
|
$ |
1,010.1 |
|
|
$ |
957.5 |
|
(a) Refer to Definitions and Notes
for additional information.
Real Property Operations - Total Portfolio
(amounts in millions, except statistical
information)
|
Quarter Ended September 30, 2023 |
|
Quarter Ended September 30, 2022 |
|
MH |
|
|
|
|
|
|
|
MH |
|
|
|
|
|
|
Financial
Information |
North America |
|
UK |
|
Total |
|
RV |
|
Marinas |
|
Total |
|
North America |
|
UK |
|
Total |
|
RV |
|
Marinas |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property (excluding transient) |
$ |
229.4 |
|
|
$ |
29.3 |
|
|
$ |
258.7 |
|
|
$ |
82.5 |
|
|
$ |
116.0 |
|
$ |
457.2 |
|
|
$ |
213.5 |
|
|
$ |
24.7 |
|
|
$ |
238.2 |
|
|
$ |
78.4 |
|
|
$ |
108.7 |
|
$ |
425.3 |
|
Real property - transient |
|
0.8 |
|
|
|
23.0 |
|
|
|
23.8 |
|
|
|
128.0 |
|
|
|
9.8 |
|
|
161.6 |
|
|
|
0.3 |
|
|
|
21.8 |
|
|
|
22.1 |
|
|
|
131.2 |
|
|
|
7.1 |
|
|
160.4 |
|
Total operating revenues |
|
230.2 |
|
|
|
52.3 |
|
|
|
282.5 |
|
|
|
210.5 |
|
|
|
125.8 |
|
|
618.8 |
|
|
|
213.8 |
|
|
|
46.5 |
|
|
|
260.3 |
|
|
|
209.6 |
|
|
|
115.8 |
|
|
585.7 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
76.7 |
|
|
|
23.3 |
|
|
|
100.0 |
|
|
|
82.1 |
|
|
|
42.7 |
|
|
224.8 |
|
|
|
72.2 |
|
|
|
21.3 |
|
|
|
93.5 |
|
|
|
82.6 |
|
|
|
38.0 |
|
|
214.1 |
|
Real Property NOI |
$ |
153.5 |
|
|
$ |
29.0 |
|
|
$ |
182.5 |
|
|
$ |
128.4 |
|
|
$ |
83.1 |
|
$ |
394.0 |
|
|
$ |
141.6 |
|
|
$ |
25.2 |
|
|
$ |
166.8 |
|
|
$ |
127.0 |
|
|
$ |
77.8 |
|
$ |
371.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
MH |
|
|
|
|
|
|
|
MH |
|
|
|
|
|
|
Financial
Information |
North America |
|
UK |
|
Total |
|
RV |
|
Marinas |
|
Total |
|
North America |
|
UK(a) |
|
Total |
|
RV |
|
Marinas |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property (excluding transient) |
$ |
676.9 |
|
|
$ |
85.1 |
|
|
$ |
762.0 |
|
|
$ |
217.1 |
|
|
$ |
306.4 |
|
$ |
1,285.5 |
|
|
$ |
630.8 |
|
|
$ |
44.7 |
|
|
$ |
675.5 |
|
|
$ |
208.2 |
|
|
$ |
274.4 |
|
$ |
1,158.1 |
|
Real property - transient |
|
1.5 |
|
|
|
37.9 |
|
|
|
39.4 |
|
|
|
241.3 |
|
|
|
20.2 |
|
|
300.9 |
|
|
|
1.2 |
|
|
|
34.7 |
|
|
|
35.9 |
|
|
|
253.0 |
|
|
|
14.6 |
|
|
303.5 |
|
Total operating revenues |
|
678.4 |
|
|
|
123.0 |
|
|
|
801.4 |
|
|
|
458.4 |
|
|
|
326.6 |
|
|
1,586.4 |
|
|
|
632.0 |
|
|
|
79.4 |
|
|
|
711.4 |
|
|
|
461.2 |
|
|
|
289.0 |
|
|
1,461.6 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
223.1 |
|
|
|
70.3 |
|
|
|
293.4 |
|
|
|
207.6 |
|
|
|
119.1 |
|
|
620.1 |
|
|
|
204.1 |
|
|
|
38.8 |
|
|
|
242.9 |
|
|
|
205.3 |
|
|
|
104.2 |
|
|
552.4 |
|
Real Property NOI |
$ |
455.3 |
|
|
$ |
52.7 |
|
|
$ |
508.0 |
|
|
$ |
250.8 |
|
|
$ |
207.5 |
|
$ |
966.3 |
|
|
$ |
427.9 |
|
|
$ |
40.6 |
|
|
$ |
468.5 |
|
|
$ |
255.9 |
|
|
$ |
184.8 |
|
$ |
909.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2023 |
|
As of September 30, 2022 |
|
MH |
|
|
|
|
|
|
|
MH |
|
|
|
|
|
|
Other
information |
North America |
|
UK |
|
Total |
|
RV |
|
Marinas |
|
Total |
|
North America |
|
UK(a) |
|
Total |
|
RV |
|
Marinas |
|
Total |
Number of properties |
|
298 |
|
|
|
55 |
|
|
|
353 |
|
|
|
182 |
|
|
|
135 |
|
|
670 |
|
|
|
296 |
|
|
|
54 |
|
|
|
350 |
|
|
|
181 |
|
|
|
131 |
|
|
662 |
|
Sites, wet slips and dry storage spaces |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sites, wet slips and dry storage spaces(b) |
|
100,200 |
|
|
|
18,050 |
|
|
|
118,250 |
|
|
|
32,150 |
|
|
|
48,030 |
|
|
198,430 |
|
|
|
99,430 |
|
|
|
17,480 |
|
|
|
116,910 |
|
|
|
32,030 |
|
|
|
46,190 |
|
|
195,130 |
|
Transient sites |
N/M |
|
|
3,280 |
|
|
|
3,280 |
|
|
|
26,490 |
|
|
N/A |
|
|
29,770 |
|
|
N/M |
|
|
3,200 |
|
|
|
3,200 |
|
|
|
27,950 |
|
|
N/A |
|
|
31,150 |
|
Total |
|
100,200 |
|
|
|
21,330 |
|
|
|
121,530 |
|
|
|
58,640 |
|
|
|
48,030 |
|
|
228,200 |
|
|
|
99,430 |
|
|
|
20,680 |
|
|
|
120,110 |
|
|
|
59,980 |
|
|
|
46,190 |
|
|
226,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MH and Annual RV Occupancy |
|
96.3 |
% |
|
|
90.6 |
% |
|
|
95.4 |
% |
|
|
100.0 |
% |
|
N/A |
|
|
96.4 |
% |
|
|
96.2 |
% |
|
|
91.7 |
% |
|
|
95.5 |
% |
|
|
100.0 |
% |
|
N/A |
|
|
96.5 |
% |
N/M = Not meaningful. N/A = Not applicable.
(a) UK amounts for the nine months
ended September 30, 2022 cover April 8, 2022 (date of acquisition)
to September 30, 2022.
(b) MH annual sites included 9,834
and 9,126 rental homes in the Company's Rental Program during the
quarter ended September 30, 2023 and 2022, respectively. The
Company's investment in occupied rental homes at September 30, 2023
was $655.8 million, an increase of 20.6% from $543.8 million at
September 30, 2022.
Real Property Operations - Same Property
Portfolio(a)
(amounts in millions, except for statistical
information)
|
Quarter Ended September 30, 2023 |
|
Quarter Ended September 30, 2022 |
|
Total Change
|
|
% Change(c) |
|
MH(b) |
|
RV(b) |
|
Marina |
|
Total |
|
MH(b) |
|
RV(b) |
|
Marina |
|
Total |
|
|
MH |
|
RV |
|
Marina |
|
Total |
Financial
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property (excluding transient) |
$ |
209.2 |
|
$ |
74.4 |
|
$ |
91.0 |
|
$ |
374.6 |
|
$ |
195.0 |
|
$ |
64.7 |
|
$ |
85.8 |
|
$ |
345.5 |
|
$ |
29.1 |
|
|
7.3 |
% |
|
15.0 |
% |
|
6.0 |
% |
|
8.4 |
% |
Real property - transient |
|
0.4 |
|
|
118.4 |
|
|
7.9 |
|
|
126.7 |
|
|
0.2 |
|
|
123.9 |
|
|
5.4 |
|
|
129.5 |
|
|
(2.8 |
) |
|
72.6 |
% |
|
(4.4) % |
|
47.1 |
% |
|
(2.1) % |
Total Same Property operating revenues |
|
209.6 |
|
|
192.8 |
|
|
98.9 |
|
|
501.3 |
|
|
195.2 |
|
|
188.6 |
|
|
91.2 |
|
|
475.0 |
|
|
26.3 |
|
|
7.4 |
% |
|
2.2 |
% |
|
8.4 |
% |
|
5.5 |
% |
Same Property Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property operating expenses(d)(e) |
|
57.1 |
|
|
69.3 |
|
|
29.7 |
|
|
156.1 |
|
|
54.1 |
|
|
69.8 |
|
|
27.7 |
|
|
151.6 |
|
|
4.5 |
|
|
5.7 |
% |
|
(0.8) % |
|
7.4 |
% |
|
3.0 |
% |
Real Property
NOI(e) |
$ |
152.5 |
|
$ |
123.5 |
|
$ |
69.2 |
|
$ |
345.2 |
|
$ |
141.1 |
|
$ |
118.8 |
|
$ |
63.5 |
|
$ |
323.4 |
|
$ |
21.8 |
|
|
8.0 |
% |
|
4.1 |
% |
|
8.9 |
% |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
Total Change
|
|
% Change(c) |
|
MH(b) |
|
RV(b) |
|
Marina |
|
Total |
|
MH(b) |
|
RV(b) |
|
Marina |
|
Total |
|
|
MH |
|
RV |
|
Marina |
|
Total |
Financial
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property (excluding transient) |
$ |
619.5 |
|
$ |
198.7 |
|
$ |
244.5 |
|
$ |
1,062.7 |
|
$ |
579.9 |
|
$ |
171.9 |
|
$ |
227.1 |
|
$ |
978.9 |
|
$ |
83.8 |
|
|
6.8 |
% |
|
15.6 |
% |
|
7.7 |
% |
|
8.6 |
% |
Real property - transient |
|
1.0 |
|
|
224.4 |
|
|
17.5 |
|
|
242.9 |
|
|
0.9 |
|
|
236.7 |
|
|
12.5 |
|
|
250.1 |
|
|
(7.2 |
) |
|
11.8 |
% |
|
(5.2) % |
|
39.5 |
% |
|
(2.9) % |
Total Same Property operating revenues |
|
620.5 |
|
|
423.1 |
|
|
262.0 |
|
|
1,305.6 |
|
|
580.8 |
|
|
408.6 |
|
|
239.6 |
|
|
1,229.0 |
|
|
76.6 |
|
|
6.8 |
% |
|
3.6 |
% |
|
9.4 |
% |
|
6.2 |
% |
Same Property Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property operating expenses(d)(e) |
|
167.0 |
|
|
178.4 |
|
|
84.1 |
|
|
429.5 |
|
|
154.0 |
|
|
172.9 |
|
|
80.1 |
|
|
407.0 |
|
|
22.5 |
|
|
8.5 |
% |
|
3.1 |
% |
|
5.1 |
% |
|
5.5 |
% |
Real Property
NOI(e) |
$ |
453.5 |
|
$ |
244.7 |
|
$ |
177.9 |
|
$ |
876.1 |
|
$ |
426.8 |
|
$ |
235.7 |
|
$ |
159.5 |
|
$ |
822.0 |
|
$ |
54.1 |
|
|
6.2 |
% |
|
3.9 |
% |
|
11.5 |
% |
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of properties |
|
288 |
|
|
161 |
|
|
119 |
|
|
568 |
|
|
288 |
|
|
161 |
|
|
119 |
|
|
568 |
|
|
|
|
|
|
|
|
|
|
Sites, wet slips and dry storage spaces |
|
98,590 |
|
|
54,630 |
|
|
40,890 |
|
|
194,110 |
|
|
97,830 |
|
|
54,340 |
|
|
40,690 |
|
|
192,860 |
|
|
|
|
|
|
|
|
|
|
(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 of $0.7453 USD and $0.7431 USD per Canadian dollar during the
quarter and nine months ended September 30, 2023, respectively.
(c) Percentages are calculated based
on unrounded numbers.
Real Property Operations - Same Property
Portfolio(a)
(Continued)
(amounts in millions, except for statistical
information)
(d) The Company nets certain utility
revenues (which include utility reimbursement revenues from
residents) against related utility expenses in property operating
expenses as follows (in millions):
|
Quarter Ended September 30, 2023 |
|
Quarter Ended September 30, 2022 |
|
MH |
|
RV |
|
Marina |
|
Total |
|
MH |
|
RV |
|
Marina |
|
Total |
Utility revenue netted against related utility expense |
$ |
18.2 |
|
$ |
6.3 |
|
$ |
5.9 |
|
$ |
30.4 |
|
$ |
17.2 |
|
$ |
5.8 |
|
$ |
5.2 |
|
$ |
28.2 |
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
MH |
|
RV |
|
Marina |
|
Total |
|
MH |
|
RV |
|
Marina |
|
Total |
Utility revenue netted against related utility expense |
$ |
52.1 |
|
$ |
15.3 |
|
$ |
16.7 |
|
$ |
84.1 |
|
$ |
48.2 |
|
$ |
14.3 |
|
$ |
14.1 |
|
$ |
76.6 |
(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 |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
Change |
|
% Change |
|
September 30, 2023 |
|
September 30, 2022 |
|
Change |
|
% Change |
Payroll and benefits |
$ |
54.8 |
|
$ |
51.6 |
|
$ |
3.2 |
|
|
6.2 |
% |
|
$ |
146.2 |
|
$ |
139.5 |
|
$ |
6.7 |
|
|
4.8 |
% |
Real estate taxes |
|
26.4 |
|
|
25.9 |
|
|
0.5 |
|
|
2.1 |
% |
|
|
81.2 |
|
|
77.7 |
|
|
3.5 |
|
|
4.6 |
% |
Supplies and repairs |
|
22.9 |
|
|
24.4 |
|
|
(1.5 |
) |
|
(6.2) % |
|
|
58.0 |
|
|
58.4 |
|
|
(0.4 |
) |
|
(0.7) % |
Utilities |
|
18.9 |
|
|
19.8 |
|
|
(0.9 |
) |
|
(4.2) % |
|
|
49.5 |
|
|
50.3 |
|
|
(0.8 |
) |
|
(1.6) % |
Legal, state / local taxes,
and insurance |
|
14.0 |
|
|
9.5 |
|
|
4.5 |
|
|
47.7 |
% |
|
|
42.0 |
|
|
28.3 |
|
|
13.7 |
|
|
48.2 |
% |
Other |
|
19.1 |
|
|
20.4 |
|
|
(1.3 |
) |
|
(6.7) % |
|
|
52.6 |
|
|
52.8 |
|
|
(0.2 |
) |
|
(0.4) % |
Total Same Property
Operating Expenses |
$ |
156.1 |
|
$ |
151.6 |
|
$ |
4.5 |
|
|
3.0 |
% |
|
$ |
429.5 |
|
$ |
407.0 |
|
$ |
22.5 |
|
|
5.5 |
% |
Real Property Operations - Same Property
Portfolio(a)
(Continued)
|
|
As of |
|
|
September 30, 2023 |
|
September 30, 2022 |
|
|
MH |
|
RV |
|
MH |
|
RV |
Other
Information |
|
|
|
|
|
|
|
|
Number of properties |
|
|
288 |
|
|
|
161 |
|
|
|
288 |
|
|
|
161 |
|
|
|
|
|
|
|
|
|
|
Sites |
|
|
|
|
|
|
|
|
MH and Annual RV sites |
|
|
98,590 |
|
|
|
31,850 |
|
|
|
97,830 |
|
|
|
29,790 |
|
Transient RV sites |
|
N/M |
|
|
22,780 |
|
|
N/M |
|
|
24,550 |
|
Total |
|
|
98,590 |
|
|
|
54,630 |
|
|
|
97,830 |
|
|
|
54,340 |
|
|
|
|
|
|
|
|
|
|
MH and Annual RV
Occupancy |
|
|
|
|
|
|
|
|
Occupancy(b) |
|
|
97.0 |
% |
|
|
100.0 |
% |
|
|
96.8 |
% |
|
|
100.0 |
% |
Monthly base rent per site |
|
$ |
661 |
|
|
$ |
580 |
|
|
$ |
623 |
|
|
$ |
533 |
|
% Change of monthly base rent(c) |
|
|
6.1 |
% |
|
|
8.8 |
% |
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
Rental Program Statistics
included in MH: |
|
|
|
|
|
|
|
|
Number of occupied sites, end of period(d) |
|
|
9,680 |
|
|
N/A |
|
|
9,110 |
|
|
N/A |
Monthly rent per site – MH Rental Program |
|
$ |
1,282 |
|
|
N/A |
|
$ |
1,193 |
|
|
N/A |
% Change(d) |
|
|
7.5 |
% |
|
N/A |
|
N/A |
|
N/A |
N/M = Not meaningful. N/A = Not applicable.
(a) Refer to Definitions and Notes
for additional information.
(b) Same Property adjusted blended
occupancy for MH and RV combined increased to 98.8% at September
30, 2023, from 97.1% at September 30, 2022. The 170 basis point
increase was driven by MH expansion fills and the conversion of
transient RV sites to annual sites.
(c) Calculated using actual results
without rounding.
(d) Occupied rental program sites in
Same Property are included in total sites.
Home Sales Summary
(amounts in millions, except for *)
|
Quarter Ended |
|
Nine Months Ended |
Financial
Information |
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
|
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
North America |
|
|
|
|
|
|
|
|
|
|
|
Home sales |
$ |
62.4 |
|
|
$ |
66.6 |
|
|
(6.3) % |
|
$ |
171.9 |
|
|
$ |
213.4 |
|
|
(19.4) % |
Home cost and selling expenses |
|
48.0 |
|
|
|
51.5 |
|
|
(6.8) % |
|
|
130.2 |
|
|
|
155.9 |
|
|
(16.5) % |
NOI |
$ |
14.4 |
|
|
$ |
15.1 |
|
|
(4.6) % |
|
$ |
41.7 |
|
|
$ |
57.5 |
|
|
(27.5) % |
NOI margin %* |
|
23.1 |
% |
|
|
22.7 |
% |
|
|
|
|
24.3 |
% |
|
|
26.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK(a) |
|
|
|
|
|
|
|
|
|
|
|
Home sales |
$ |
55.4 |
|
|
$ |
84.1 |
|
|
(34.1) % |
|
$ |
154.8 |
|
|
$ |
144.7 |
|
|
7.0 |
% |
Home cost and selling expenses |
|
32.5 |
|
|
|
44.9 |
|
|
(27.6) % |
|
|
94.7 |
|
|
|
79.3 |
|
|
19.4 |
% |
NOI |
$ |
22.9 |
|
|
$ |
39.2 |
|
|
(41.6) % |
|
$ |
60.1 |
|
|
$ |
65.4 |
|
|
(8.1) % |
NOI margin %* |
|
41.3 |
% |
|
|
46.6 |
% |
|
|
|
|
38.8 |
% |
|
|
45.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total(a) |
|
|
|
|
|
|
|
|
|
|
|
Home sales |
$ |
117.8 |
|
|
$ |
150.7 |
|
|
(21.8) % |
|
$ |
326.7 |
|
|
$ |
358.1 |
|
|
(8.8) % |
Home cost and selling expenses |
|
80.5 |
|
|
|
96.4 |
|
|
(16.5) % |
|
|
224.9 |
|
|
|
235.2 |
|
|
(4.4) % |
NOI |
$ |
37.3 |
|
|
$ |
54.3 |
|
|
(31.3) % |
|
$ |
101.8 |
|
|
$ |
122.9 |
|
|
(17.2) % |
NOI margin %* |
|
31.7 |
% |
|
|
36.0 |
% |
|
|
|
|
31.2 |
% |
|
|
34.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
information |
|
|
|
|
|
|
|
|
|
|
|
Units Sold:* |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
636 |
|
|
|
724 |
|
|
(12.2) % |
|
|
1,909 |
|
|
|
2,538 |
|
|
(24.8) % |
UK(a) |
|
884 |
|
|
|
1,016 |
|
|
(13.0) % |
|
|
2,310 |
|
|
|
1,778 |
|
|
29.9 |
% |
Total home sales(a) |
|
1,520 |
|
|
|
1,740 |
|
|
(12.6) % |
|
|
4,219 |
|
|
|
4,316 |
|
|
(2.2) % |
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Price:* |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
98,113 |
|
|
$ |
91,989 |
|
|
6.7 |
% |
|
$ |
90,047 |
|
|
$ |
84,082 |
|
|
7.1 |
% |
UK(a) |
$ |
62,670 |
|
|
$ |
82,776 |
|
|
(24.3) % |
|
$ |
67,013 |
|
|
$ |
81,384 |
|
|
(17.7) % |
(a) UK amounts for the nine months
ended September 30, 2022 cover the period from April 8, 2022 (date
of acquisition) through September 30, 2022.
Operating Statistics for MH and Annual RVs (excluding UK
Operations)
|
|
Resident Move-outs |
|
|
|
|
|
|
|
|
|
|
% of Total Sites |
|
Number of Move-outs |
|
Leased Sites,
Net(b) |
|
New Home Sales |
|
Pre-owned Home Sales |
|
Brokered
Re-sales |
2023 - YTD as of September 30 |
|
3.7 |
% |
(a) |
5,651 |
|
2,585 |
|
421 |
|
1,488 |
|
1,818 |
2022 |
|
3.0 |
% |
|
5,170 |
|
2,922 |
|
703 |
|
2,509 |
|
2,864 |
2021 |
|
2.7 |
% |
|
5,276 |
|
2,483 |
|
732 |
|
3,356 |
|
3,528 |
(a) Percentage calculated on a
trailing 12-month basis.
(b) Net increase in revenue producing
sites.
Acquisitions and Dispositions
(amounts in millions, except for *)
Property Name |
|
Property Type |
|
Number of Properties* |
|
Sites, Wet Slips and Dry Storage Spaces* |
|
Expansion or Development Sites* |
|
State, Province or Country |
|
Total Purchase / Sale Price |
|
Month Acquired |
ACQUISITIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Run(a) |
|
MH |
|
1 |
|
68 |
|
72 |
|
MI |
|
$ |
7.0 |
|
January |
Savannah Yacht Center(b) |
|
Marina |
|
1 |
|
24 |
|
— |
|
GA |
|
|
100.0 |
|
March |
First Quarter 2023 |
|
|
|
2 |
|
92 |
|
72 |
|
|
|
$ |
107.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions in 2023 |
|
|
|
2 |
|
92 |
|
72 |
|
|
|
$ |
107.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISPOSITIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cedar Haven |
|
MH |
|
1 |
|
155 |
|
— |
|
ME |
|
$ |
6.8 |
|
August |
Third Quarter 2023 |
|
|
|
1 |
|
155 |
|
— |
|
|
|
$ |
6.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions in 2023 |
|
|
|
1 |
|
155 |
|
— |
|
|
|
$ |
6.8 |
|
|
(a) In conjunction with the
acquisition of this ground-up development project, the Company
issued 31,289 Common OP units valued at $4.4 million. The
Company also delivered 68 of the 140 sites during the first
quarter.
(b) In conjunction with this
acquisition, the Company issued one million Series K preferred OP
units to cover the total purchase price of $100.0 million.
Capital Expenditures and Investments
(amounts in millions, except for *)
|
Nine Months Ended |
|
Year Ended |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2021 |
|
MH / RV |
|
Marina |
|
MH / RV |
|
Marina |
|
MH / RV |
|
Marina |
Recurring Capital
Expenditures(a) |
$ |
36.1 |
|
$ |
24.9 |
|
$ |
51.0 |
|
$ |
22.8 |
|
$ |
45.3 |
|
$ |
19.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Recurring Capital
Expenditures(a) |
|
|
|
|
|
|
|
|
|
|
|
Lot Modifications |
$ |
41.3 |
|
N/A |
|
$ |
39.1 |
|
N/A |
|
$ |
28.8 |
|
N/A |
Growth Projects |
|
20.5 |
|
|
61.0 |
|
|
28.4 |
|
|
71.1 |
|
|
25.6 |
|
|
51.4 |
Rebranding |
|
3.9 |
|
N/A |
|
|
15.0 |
|
N/A |
|
|
6.1 |
|
N/A |
Acquisitions |
|
147.2 |
|
|
172.1 |
|
|
2,788.1 |
|
|
522.5 |
|
|
944.3 |
|
|
852.9 |
Expansion and Development |
|
207.1 |
|
|
24.9 |
|
|
247.9 |
|
|
13.9 |
|
|
191.8 |
|
|
9.9 |
Total Non-Recurring Capital
Expenditures |
|
420.0 |
|
|
258.0 |
|
|
3,118.5 |
|
|
607.5 |
|
|
1,196.6 |
|
|
914.2 |
Total |
$ |
456.1 |
|
$ |
282.9 |
|
$ |
3,169.5 |
|
$ |
630.3 |
|
$ |
1,241.9 |
|
$ |
933.5 |
Other
Information |
|
|
|
|
|
|
|
|
|
|
|
Recurring Capex per Site, Slip and Dry Storage
Spaces(b)* |
$ |
270 |
|
$ |
608 |
|
$ |
397 |
|
$ |
582 |
|
$ |
371 |
|
$ |
491 |
(a) Refer to Definitions and Notes
for additional information.
(b) Average based on actual number of
MH and RV sites and Marina wet slips and dry storage spaces
associated with the recurring capital expenditures in each
period.
Capitalization Overview
(Shares and units in thousands, dollar amounts in millions,
except for *)
|
|
As of |
|
|
September 30, 2023 |
Equity and enterprise
value |
|
Common Equivalent Shares |
|
Share Price* |
|
Capitalization |
Common shares |
|
124,447 |
|
$ |
118.34 |
|
$ |
14,727.1 |
|
Convertible securities |
|
|
|
|
|
|
Common OP units |
|
2,632 |
|
$ |
118.34 |
|
|
311.5 |
|
Preferred OP units |
|
2,633 |
|
$ |
118.34 |
|
|
311.6 |
|
Diluted shares outstanding and market
capitalization(a) |
|
129,712 |
|
|
|
|
15,350.2 |
|
Plus: Debt, per the balance sheet |
|
|
|
|
|
|
7,665.0 |
|
Total capitalization |
|
|
|
|
|
|
23,015.2 |
|
Less: Cash and cash equivalents (excluding restricted cash) |
|
|
|
|
|
|
(46.0 |
) |
Enterprise value(b) |
|
|
|
|
|
$ |
22,969.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
|
Weighted Average Maturity
(in years)* |
|
Debt Outstanding |
Secured debt |
|
|
|
|
9.3 |
|
$ |
3,359.5 |
|
Unsecured debt |
|
|
|
|
4.9 |
|
|
4,305.5 |
|
Total debt, per consolidated balance sheet |
|
|
|
|
6.8 |
|
|
7,665.0 |
|
Plus: Unamortized deferred financing costs and discounts / premiums
on debt |
|
|
|
|
|
|
40.1 |
|
Total debt(b) |
|
|
|
|
|
$ |
7,705.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt rating
and outlook |
|
|
|
|
|
|
Moody's |
|
|
|
|
|
Baa3 | Stable |
S&P |
|
|
|
|
|
BBB | Stable |
(a) Refer to "Securities" within
Definitions and Notes for additional information related to our
securities outstanding.
(b) Refer to "Enterprise Value" and
"Net Debt" within Definitions and Notes for additional
information.
Summary of Outstanding Debt
(amounts in millions, except for
*)
|
|
Quarter Ended |
|
|
September 30, 2023 |
|
|
Debt Outstanding |
|
Weighted Average Interest
Rate(a)* |
|
Maturity Date* |
Secured
Debt |
|
$ |
3,359.5 |
|
3.81 |
% |
|
Various |
|
|
|
|
|
|
|
Unsecured
Debt: |
|
|
|
|
|
|
Senior Credit Facility: |
|
|
|
|
|
|
Revolving credit facilities (in USD)(b) |
|
|
1,009.3 |
|
5.98 |
% |
|
April 2026 |
GBP term loan (in USD)(c) |
|
|
1,066.4 |
|
4.83 |
% |
|
April 2025 |
Total senior credit facility |
|
|
2,075.7 |
|
|
|
|
Other unsecured term loan |
|
|
9.2 |
|
6.36 |
% |
|
October 2025 |
Senior credit facility and other term loan |
|
|
2,084.9 |
|
5.39 |
% |
|
|
|
|
|
|
|
|
|
Senior Unsecured Notes: |
|
|
|
|
|
|
2028 senior unsecured notes |
|
|
446.7 |
|
2.30 |
% |
|
November 2028 |
2031 senior unsecured notes |
|
|
742.2 |
|
2.70 |
% |
|
July 2031 |
2032 senior unsecured notes |
|
|
592.4 |
|
3.62 |
% |
|
April 2032 |
2033 senior unsecured notes |
|
|
395.6 |
|
5.51 |
% |
|
January 2033 |
Total Senior Unsecured Notes |
|
|
2,176.9 |
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
Mandatorily redeemable preferred equity and OP
units(d) |
|
|
43.7 |
|
6.10 |
% |
|
Various |
Total Unsecured Debt |
|
|
4,305.5 |
|
4.38 |
% |
|
|
Total debt, per
consolidated balance sheets |
|
|
7,665.0 |
|
4.13 |
% |
|
|
Plus: Unamortized
deferred financing costs and discounts / premiums on
debt(a) |
|
|
40.1 |
|
|
|
|
Total
debt |
|
$ |
7,705.1 |
|
|
|
|
(a) Includes the effect of
amortizing deferred financing costs, loan premiums / discounts and
derivatives.
(b) As of September 30,
2023, the Company's revolving credit facilities consisted of:
-
$464.0 million borrowed on its U.S. line of credit at the
Secured Overnight Financing Rate ("SOFR") plus 85 basis points, of
which $125.0 million was swapped to a weighted average fixed SOFR
rate of 4.771% for an all-in fixed rate of 5.681%.
-
$473.8 million USD equivalent borrowed on its GBP line of
credit at the Daily Sterling Overnight Index Average ("SONIA") plus
85 basis points.
-
$71.5 million USD equivalent borrowed on its Australian line
of credit at the Bank Bill Swap Bid Rate ("BBSY") plus 85 basis
points.
(c) As of September 30,
2023, £500.0 million ($610.1 million) was swapped to a
weighted average fixed SONIA rate of 2.924% for an all-in fixed
rate, inclusive of spread, of 3.866%.
(d) Mandatorily redeemable
preferred equity and OP unit distributions are included within the
line item 'Interest on mandatorily redeemable preferred OP units /
equity' on the Company's Consolidated Statements of Operations.
Debt Maturities(e)
Year |
|
Secured Debt(f) |
|
Principal Amortization |
|
Senior
Credit Facility |
|
Senior
Unsecured Notes |
|
Other Unsecured Debt |
|
Total |
2023 |
|
$ |
117.8 |
(g) |
$ |
13.8 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
131.6 |
2024 |
|
|
128.8 |
|
|
56.5 |
|
|
— |
|
|
— |
|
|
51.1 |
|
|
236.4 |
2025 |
|
|
50.5 |
|
|
54.2 |
|
|
1,068.4 |
|
|
— |
|
|
1.8 |
|
|
1,174.9 |
2026 |
|
|
658.4 |
|
|
46.2 |
|
|
1,009.3 |
|
|
— |
|
|
— |
|
|
1,713.9 |
2027 |
|
|
4.0 |
|
|
40.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
44.7 |
Thereafter |
|
|
1,576.2 |
|
|
627.4 |
|
|
— |
|
|
2,200.0 |
|
|
— |
|
|
4,403.6 |
Total |
|
$ |
2,535.7 |
|
$ |
838.8 |
|
$ |
2,077.7 |
|
$ |
2,200.0 |
|
$ |
52.9 |
|
$ |
7,705.1 |
(e) Debt maturities include the
unamortized deferred financing costs and discount / premiums
associated with outstanding debt.
(f) For the secured debt maturing
between 2023 - 2027:
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
|
2027 |
|
Weighted average interest
rate |
3.54 |
% |
|
4.03 |
% |
|
4.04 |
% |
|
3.97 |
% |
|
4.34 |
% |
(g) This debt was paid off with
proceeds from the new secured loan that the Company entered into
subsequent to the quarter ended September 30, 2023. The new
$252.8 million loan matures in November 2030 and bears
interest at a fixed rate of 6.49%.
Debt Analysis
|
|
|
|
As of |
|
|
|
|
September 30, 2023 |
Select Credit
Ratios |
|
|
|
|
Net debt / TTM recurring EBITDA(a) |
|
|
|
6.1 x |
Net debt / enterprise value |
|
|
|
33.2 |
% |
Net debt / gross assets |
|
|
|
36.7 |
% |
Unencumbered assets / total assets |
|
|
|
77.0 |
% |
Floating rate debt / total debt(b) |
|
|
|
17.5 |
% |
|
|
|
|
|
Coverage
Ratios |
|
|
|
|
TTM Recurring EBITDA(a) / interest |
|
|
|
4.0 x |
TTM Recurring EBITDA(a) / interest + preferred
distributions + preferred stock distribution |
|
|
|
4.0 x |
|
|
|
|
|
Senior Credit Facility Covenants |
|
Requirement |
|
|
Maximum leverage ratio |
|
<65.0 % |
|
33.9 |
% |
Minimum fixed charge coverage ratio |
|
>1.40 x |
|
3.23 x |
Maximum secured leverage ratio |
|
<40.0 % |
|
12.5 |
% |
|
|
|
|
|
Senior Unsecured Note Covenants |
|
Requirement |
|
|
Total debt / total assets |
|
≤60.0 % |
|
41.0 |
% |
Secured debt / total assets |
|
≤40.0 % |
|
17.9 |
% |
Consolidated income available for debt service / debt service |
|
≥1.50 x |
|
3.99 x |
Unencumbered total asset value / total unsecured debt |
|
≥150.0 % |
|
334.0 |
% |
(a) Refer to page 8 for additional
detail on the Company's TTM Recurring EBITDA.
(b) Percentage includes the impact of
hedge activities.
^ Excludes the Company's borrowings under its
senior credit facility.
Definitions and Notes
Capital Expenditures and Investment
Activity - The Company classifies its investments in
properties into the following categories:
- Recurring Capital
Expenditures - Property recurring capital expenditures are
necessary to maintain asset quality, including purchasing and
replacing items used to operate the communities and marinas.
Recurring capital expenditures at the Company's MH and RV
properties include major road, driveway and pool improvements;
clubhouse renovations; adding or replacing streetlights; playground
equipment; signage; maintenance facilities; manager housing and
property vehicles. Recurring capital expenditures at the Company's
marinas include dredging, dock repairs and improvements, and
equipment maintenance and upgrades. The minimum capitalized amount
is five hundred dollars.
- Non-Recurring Capital
Expenditures - The following investment and reinvestment
activities are non-recurring in nature:
- Lot Modifications
- Lot modification capital expenditures are incurred to modify the
foundational structures required to set a new home after a previous
home has been removed. These expenditures are necessary to create a
revenue stream from a new site renter and often improve the quality
of the community. Other lot modification expenditures include land
improvements added to annual RV sites to aid in the conversion of
transient RV guests to annual contracts. See page 13 for move-out
rates.
- Growth Projects -
Growth projects consist of revenue-generating or expense-reducing
activities at the properties. These include, but are not limited
to, utility efficiency and renewable energy projects, site, slip or
amenity upgrades, such as the addition of a garage, shed or boat
lift, and other special capital projects that substantiate an
incremental rental increase.
- Rebranding -
Rebranding includes new signage at the Company's RV communities and
costs of building an RV mobile application and updated website.
- Acquisitions -
Total acquisition investments represent the purchase price paid for
operating properties and land parcels for future ground-up
development and expansions activities (detailed for the current
calendar year on page 14), plus any capital improvements identified
during due diligence needed to bring acquired properties up to the
Company's operating standards.
Capital improvements subsequent to acquisition
often require 24 to 36 months to complete after closing and include
upgrading clubhouses; landscaping; new street light systems; new
mail delivery systems; pool renovations including larger decks,
heaters and furniture; new maintenance facilities; lot
modifications; and new signage including main signs and internal
road signs.
For the nine months ended September 30, 2023,
the components of total acquisition investment are as follows (in
millions):
|
|
Nine Months Ended September 30, 2023 |
|
|
MH and RV |
|
Marina |
|
Total |
Purchase price of property
acquisitions |
|
$ |
7.2 |
|
$ |
100.6 |
|
$ |
107.8 |
Capitalized transaction costs
for property acquisitions |
|
|
5.0 |
|
|
1.6 |
|
|
6.6 |
Purchase price of land
acquisitions (including capitalized transaction
costs)(a) |
|
|
36.7 |
|
|
— |
|
|
36.7 |
Capital improvements to recent
property acquisitions |
|
|
98.3 |
|
|
69.9 |
|
|
168.2 |
Total Acquisition
Investments |
|
$ |
147.2 |
|
$ |
172.1 |
|
$ |
319.3 |
(a) Includes the value allocated to
infrastructure improvements associated with acquired land, when
applicable.
- Expansions and
Developments - Expansion and development expenditures
consist primarily of construction costs such as roads, activities,
and amenities, and costs necessary to complete site improvements,
such as driveways, sidewalks and landscaping at the Company's MH
and RV communities. Expenditures also include costs to rebuild
after damage has been incurred at MH, RV or marina properties, and
research and development.
Enterprise Value - Equals total
equity market capitalization, plus total indebtedness reported on
the Company's balance sheet and less cash and cash equivalents
(excluding restricted cash).
GAAP - U.S. Generally Accepted
Accounting Principles.
Home Sales Contribution to FFO
- The reconciliation of NOI from home sales to FFO from home sales
for the quarter and nine months ended September 30, 2023 is as
follows (in millions):
|
Quarter Ended September 30, 2023 |
|
Nine Months Ended September 30, 2023 |
|
North America |
|
UK |
|
Total |
|
North America |
|
UK |
|
Total |
Home Sales NOI |
$ |
14.4 |
|
|
$ |
22.9 |
|
|
$ |
37.3 |
|
|
$ |
41.7 |
|
|
$ |
60.1 |
|
|
$ |
101.8 |
|
Gain on dispositions of
assets, net |
|
(9.6 |
) |
|
|
(0.9 |
) |
|
|
(10.5 |
) |
|
|
(28.2 |
) |
|
|
(0.8 |
) |
|
|
(29.0 |
) |
FFO Contribution from home
sales |
$ |
4.8 |
|
|
$ |
22.0 |
|
|
$ |
26.8 |
|
|
$ |
13.5 |
|
|
$ |
59.3 |
|
|
$ |
72.8 |
|
Interest
Expense - The following is a summary of
the components of the Company's interest expense (in millions):
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Interest on Secured debt,
Senior unsecured notes, Senior Credit Facility, Unsecured Term Loan
and interest rate swaps |
$ |
81.0 |
|
|
$ |
57.2 |
|
|
$ |
228.5 |
|
|
$ |
151.5 |
|
Lease related interest
expense |
|
3.6 |
|
|
|
2.9 |
|
|
|
10.7 |
|
|
|
5.6 |
|
Amortization of deferred
financing costs, debt (premium) or discounts and losses on
hedges |
|
1.5 |
|
|
|
1.3 |
|
|
|
4.5 |
|
|
|
3.7 |
|
Senior credit facility
commitment fees and other finance related charges |
|
1.8 |
|
|
|
1.6 |
|
|
|
5.1 |
|
|
|
5.5 |
|
Capitalized interest |
|
(3.8 |
) |
|
|
(1.3 |
) |
|
|
(8.9 |
) |
|
|
(4.1 |
) |
Interest Expense, per
Consolidated Statements of Operations |
$ |
84.1 |
|
|
$ |
61.7 |
|
|
$ |
239.9 |
|
|
$ |
162.2 |
|
NAREIT - The National
Association of Real Estate Investment Trusts is the worldwide
representative voice for REITs and real estate companies with an
interest in U.S. real estate and capital markets. More information
is available at www.reit.com.
Net Debt - The carrying value
of debt, which includes unamortized premiums, discounts and
deferred financing costs, less, unrestricted cash (i.e., cash and
cash equivalents, excluding restricted cash).
Other Acquisition Related Costs
- In the Company's Reconciliation of Net Income Attributable to SUI
Common Shareholders to Core FFO on page 6, 'Other acquisition
related costs' represent (a) nonrecurring integration expenses
associated with acquisitions during the quarter and nine months
ended September 30, 2023 and 2022, (b) costs associated with
potential acquisitions that will not close, (c) costs associated
with the termination of the bridge loan commitment during the
quarter ended March 31, 2022 related to the acquisition of Park
Holidays and (d) expenses incurred to bring recently acquired
properties up to the Company's operating standards, including items
such as tree trimming and painting costs that do not meet the
Company's capitalization policy.
Other adjustments, net - In the
Company's Reconciliation of Net Income Attributable to SUI Common
Shareholders to Core FFO on page 6, 'Other adjustments, net'
consists of the following (in millions):
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Litigation settlement |
$ |
— |
|
|
$ |
(3.4 |
) |
|
$ |
— |
|
|
$ |
(3.4 |
) |
Long term lease termination
(benefit) / expense |
|
3.3 |
|
|
|
0.2 |
|
|
|
4.0 |
|
|
|
(0.1 |
) |
Severance costs |
|
0.1 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
Deferred tax benefit |
|
(2.3 |
) |
|
|
(3.6 |
) |
|
|
(14.6 |
) |
|
|
(3.9 |
) |
RV rebranding non-recurring
cost |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.2 |
|
Accelerated deferred
compensation amortization |
|
— |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.4 |
|
Other |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
Other adjustments, net |
$ |
1.1 |
|
|
$ |
(6.5 |
) |
|
$ |
(9.6 |
) |
|
$ |
(5.1 |
) |
Other income / (expense), net -
In the Company's Consolidated Statements of Operations on page 5,
'Other income / (expense), net' consists of the following (in
millions):
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Litigation settlement |
$ |
— |
|
|
$ |
3.4 |
|
|
$ |
— |
|
|
$ |
3.4 |
|
Long term lease termination
benefit / (expense) |
|
(3.3 |
) |
|
|
(0.2 |
) |
|
|
(4.0 |
) |
|
|
0.1 |
|
Repair reserve on repossessed
homes |
|
(1.0 |
) |
|
|
(0.4 |
) |
|
|
(2.2 |
) |
|
|
(0.9 |
) |
Other |
|
0.6 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
— |
|
Other income / (expense),
net |
$ |
(3.7 |
) |
|
$ |
2.8 |
|
|
$ |
(5.5 |
) |
|
$ |
2.6 |
|
Same Property - The Company
defines Same Properties as those the Company has owned and operated
continuously since at least January 1, 2022. Same properties
exclude ground-up development properties, acquired properties and
properties sold after December 31, 2021. The Same Property data may
change from time-to-time depending on acquisitions, dispositions,
management discretion, significant transactions or unique
situations.
Securities - The Company had
the following securities outstanding as of September 30, 2023:
|
Number of Units / Shares Outstanding (in
thousands) |
|
Conversion
Rate(a) |
|
If Converted to
Common shares (in
thousands)(b) |
|
Issuance Price
Per Unit |
|
Annual Distribution Rate |
Non Convertible
Securities |
|
|
|
|
|
|
|
|
|
Common shares |
124,447 |
|
N/A |
|
N/A |
|
N/A |
|
$3.72(c) |
|
|
|
|
|
|
|
|
|
|
Convertible Securities
Classified as Equity |
|
|
|
|
|
|
|
|
|
Common OP units |
2,632 |
|
1.0000 |
|
2,632 |
|
N/A |
|
Mirrors common share distributions |
|
|
|
|
|
|
|
|
|
|
Preferred OP Units |
|
|
|
|
|
|
|
|
|
Series A-1 |
202 |
|
2.4390 |
|
493 |
|
$ |
100.00 |
|
6.00 |
% |
Series A-3 |
40 |
|
1.8605 |
|
75 |
|
$ |
100.00 |
|
4.50 |
% |
Series C |
306 |
|
1.1100 |
|
340 |
|
$ |
100.00 |
|
5.00 |
% |
Series D |
489 |
|
0.8000 |
|
391 |
|
$ |
100.00 |
|
4.00 |
% |
Series E |
80 |
|
0.6897 |
|
55 |
|
$ |
100.00 |
|
5.50 |
% |
Series F |
90 |
|
0.6250 |
|
56 |
|
$ |
100.00 |
|
3.00 |
% |
Series G |
211 |
|
0.6452 |
|
136 |
|
$ |
100.00 |
|
3.20 |
% |
Series H |
581 |
|
0.6098 |
|
355 |
|
$ |
100.00 |
|
3.00 |
% |
Series J |
238 |
|
0.6061 |
|
144 |
|
$ |
100.00 |
|
2.85 |
% |
Series K |
1,000 |
|
0.5882 |
|
588 |
|
$ |
100.00 |
|
4.00 |
% |
Total |
3,237 |
|
|
|
2,633 |
|
|
|
|
Total convertible securities outstanding |
5,869 |
|
|
|
5,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible Securities
Classified as Debt |
|
|
|
|
|
|
|
|
|
Aspen preferred OP units |
315 |
|
0.3320 |
|
105 |
|
$ |
27.00 |
|
Variable |
(a) Exchange rates are subject to
adjustment upon stock splits, recapitalizations and similar events.
The exchange rates of certain series of OP units are approximated
to four decimal places.
(b) Calculation may yield minor
differences due to fractional shares paid in cash to the
shareholder at conversion.
(c) Annual distribution is based on
the last quarterly distribution annualized.
Share - In addition to
reporting net income on a diluted basis ("EPS"), the Company
reports FFO and Core FFO on a per common share and dilutive
convertible securities basis (per "Share"). For the periods
presented below, the Company's diluted weighted average common
shares outstanding for EPS and FFO are as follows:
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Diluted Weighted
Average Common Shares Outstanding - EPS |
|
|
|
|
|
|
|
Weighted average common shares
outstanding - Basic |
123.5 |
|
122.4 |
|
123.4 |
|
119.2 |
Common shares dilutive effect
from forward equity sale |
— |
|
— |
|
— |
|
0.2 |
Dilutive restricted stock |
— |
|
— |
|
— |
|
— |
Common and preferred OP units
dilutive effect |
— |
|
0.4 |
|
— |
|
2.5 |
Weighted Average Common Shares Outstanding -
Diluted |
123.5 |
|
122.8 |
|
123.4 |
|
121.9 |
|
|
|
|
|
|
|
|
Diluted Weighted
Average Common Shares Outstanding - FFO |
|
|
|
|
|
|
|
Weighted average common shares
outstanding - Basic |
123.5 |
|
122.4 |
|
123.4 |
|
119.2 |
Common shares dilutive effect
from forward equity sale |
— |
|
— |
|
— |
|
0.2 |
Restricted stock |
0.2 |
|
0.3 |
|
0.4 |
|
0.4 |
Common OP units |
2.6 |
|
2.5 |
|
2.5 |
|
2.5 |
Common stock issuable upon
conversion of certain preferred OP units |
1.7 |
|
1.5 |
|
2.0 |
|
3.1 |
Weighted Average Common Shares Outstanding -
Diluted |
128.0 |
|
126.7 |
|
128.3 |
|
125.4 |
Non-GAAP Supplemental
Measures
Investors and analysts following the real estate
industry use non-GAAP supplemental performance measures, including
net operating income ("NOI"), earnings before interest, tax,
depreciation and amortization ("EBITDA") and funds from operations
("FFO") to assess REITs. The Company believes that NOI, EBITDA and
FFO are appropriate measures given their wide use by and relevance
to investors and analysts. Additionally, NOI, EBITDA and FFO are
commonly used in various ratios, pricing multiples, yields and
returns and valuation calculations used to measure financial
position, performance and value.
NOI provides a measure of rental operations that
does not factor in depreciation, amortization and non-property
specific expenses such as general and administrative expenses.
EBITDA provides a further measure to evaluate
ability to incur and service debt; EBITDA also provides further
measures to evaluate the Company's ability to fund dividends and
other cash needs.
FFO, reflecting the assumption that real estate
values rise or fall with market conditions, principally adjusts for
the effects of GAAP depreciation and amortization of real estate
assets.
- Net Operating Income
("NOI")
- Total Portfolio
NOI - The Company calculates NOI by subtracting property
operating expenses and real estate taxes from operating property
revenues. NOI is a non-GAAP financial measure that the Company
believes is helpful to investors as a supplemental measure of
operating performance because it is an indicator of the return on
property investment and provides a method of comparing property
performance over time. The Company uses NOI as a key measure when
evaluating performance and growth of particular properties and / or
groups of properties. The principal limitation of NOI is that it
excludes depreciation, amortization, interest expense and
non-property specific expenses such as general and administrative
expenses, all of which are significant costs. Therefore, NOI is a
measure of the operating performance of the properties of the
Company rather than of the Company overall. The Company believes
that NOI provides enhanced comparability for investor evaluation of
properties performance and growth over time.
The Company believes that GAAP net income (loss)
is the most directly comparable measure to NOI. NOI should not be
considered to be an alternative to GAAP net income (loss) as an
indication of the Company's financial performance or GAAP cash flow
from operating activities as a measure of the Company's liquidity;
nor is it indicative of funds available for the Company's cash
needs, including its ability to make cash distributions. Because of
the inclusion of items such as interest, depreciation and
amortization, the use of GAAP net income (loss) as a performance
measure is limited as these items may not accurately reflect the
actual change in market value of a property, in the case of
depreciation and in the case of interest, may not necessarily be
linked to the operating performance of a real estate asset, as it
is often incurred at a parent company level and not at a property
level.
- Same Property NOI
- This is a key management tool used when evaluating performance
and growth of the Company's Same Property portfolio. The Company
believes that Same Property NOI is helpful to investors as a
supplemental comparative performance measure of the income
generated from the Same property portfolio from one period to the
next. Same Property NOI does not include the revenues and expenses
related to home sales, service, retail, dining and entertainment
activities at the properties.
- Earnings before interest,
tax, depreciation and amortization
("EBITDA")
- EBITDAre - NAREIT
refers to EBITDA as "EBITDAre" and calculates it as GAAP
net income (loss), plus interest expense, plus income tax expense,
plus depreciation and amortization, plus or minus losses or gains
on the disposition of depreciated property (including losses or
gains on change of control), plus impairment write-downs of
depreciated property and of investments in nonconsolidated
affiliates caused by a decrease in value of depreciated property in
the affiliate, and adjustments to reflect the entity's share of
EBITDAre of nonconsolidated affiliates. EBITDAre
is a non-GAAP financial measure that the Company uses to evaluate
its ability to incur and service debt, fund dividends and other
cash needs and cover fixed costs. Investors utilize
EBITDAre as a supplemental measure to evaluate and compare
investment quality and enterprise value of REITs. Investors utilize
EBITDAre as a supplemental measure to evaluate and compare
investment quality and enterprise value of REITs.
- Recurring EBITDA -
The Company also uses EBITDAre excluding certain gain and
loss items that management considers unrelated to measurement of
the Company's performance on a basis that is independent of capital
structure ("Recurring EBITDA"). The Company believes that GAAP net
income (loss) is the most directly comparable measure to
EBITDAre. EBITDAre is not intended to be used as
a measure of the Company's cash generated by operations or its
dividend-paying capacity, and should therefore not replace GAAP net
income (loss) as an indication of the Company's financial
performance or GAAP cash flow from operating, investing and
financing activities as measures of liquidity.
- Funds from Operations
("FFO")
- FFO - NAREIT
defines FFO as GAAP net income (loss), excluding gains (or losses)
from sales of depreciable operating property, plus real estate
related depreciation and amortization, real estate related
impairments, and after adjustments for nonconsolidated partnerships
and joint ventures. FFO is a non-GAAP financial measure that
management believes is a useful supplemental measure of the
Company's operating performance. By excluding gains and losses
related to sales of previously depreciated operating real estate
assets, real estate related impairment and real estate asset
depreciation and amortization (which can vary among owners of
identical assets in similar condition based on historical cost
accounting and useful life estimates), FFO provides a performance
measure that, when compared period-over-period, reflects the impact
to operations from trends in occupancy rates, rental rates and
operating costs, providing perspective not readily apparent from
GAAP net income (loss). Management believes the use of FFO has been
beneficial in improving the understanding of operating results of
REITs among the investing public and making comparisons of REIT
operating results more meaningful.
- Core FFO - In
addition to FFO, the Company uses FFO excluding certain gain and
loss items that management considers unrelated to the operational
and financial performance of the Company's core business ("Core
FFO"). The Company believes that Core FFO provides enhanced
comparability for investor evaluations of period-over-period
results.
The Company believes that GAAP net income (loss)
is the most directly comparable measure to FFO. The principal
limitation of FFO is that it does not replace GAAP net income
(loss) as a financial performance measure or GAAP cash flow from
operating activities as a measure of the Company's liquidity.
Because FFO excludes significant economic components of GAAP net
income (loss) including depreciation and amortization, FFO should
be used as a supplement to GAAP net income (loss) and not as an
alternative to it. Furthermore, FFO is not intended as a measure of
a REIT's ability to meet debt principal repayments and other cash
requirements, nor as a measure of working capital. FFO is
calculated in accordance with the Company's interpretation of
standards established by NAREIT, which may not be comparable to FFO
reported by other REITs that interpret the NAREIT definition
differently.
Certain financial information has been revised
to reflect reclassifications in prior periods to conform to current
period presentation.
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