Sun Communities Inc., a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, today (Feb. 23) reported results for its fourth quarter and year, ended Dec. 31.
Highlights: Years Ended December 31, 2011 vs. December 31, 2010
• FFO (funds from operations), adjusted excluding certain items described in this release was $3.13 per share compared to $2.97 per share in 2010, an increase of $0.16 per share or 5.4%.
• Same site net operating income increased by 3.6%.
• Same site revenue producing sites increased by 732 sites bringing same site occupancy to 85.8%. Additionally, the company gained 160 revenue producing sites in communities acquired since June of 2011.
• The company acquired 23 properties in 2011 for approximately $175.1 million.
• After year end, the company completed a public equity offering resulting in net proceeds of approximately $156 million.
“Each year of late has proven to be our best in a very long time as every performance measure continues to outpace prior achievements,” said Gary A. Shiffman, president and CEO of the Southfield, Mich.-based company. “This year is no exception, as our accomplishments include achieving our highest revenue producing site gain since 1999, our largest FFO per share growth in a decade, our highest same site NOI increase since 2005, another year-over-year increase in home sales and our sixth year of significantly increasing resident applications.”
“This coupled with our development of expansions in full communities with above-average demand and significant acquisitions continue to establish new thresholds of performance. Our 2012 guidance supports this trend with still stronger metrics across the board. In addition to our operational focus, 2011 was a year of strong balance sheet focus. As noted, we have greatly improved the profile of our debt and maturities and renewed the line of credit. In January 2012, we were able to successfully access the equity marketplace reducing our leverage, improving our coverage ratios and providing for the company to fully exploit acquisition opportunities.”
The company expects 2012 FFO per share to be in the range of $3.17 to $3.27.