- RV Business - http://www.rvbusiness.com -

Sun Communities Sees ‘Dramatic’ 1Q Growth

Sun Communities Inc. , a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, today (April 25) reported its first quarter results.

Highlights: Three Months Ended March 31, 2013

“The company has grown dramatically while operating metrics continue to set new standards and records with each passing quarter. When we also consider the successful efforts to strengthen the balance sheet, we see a transformed company,” said Gary A. Shiffman, chairman and CEO. “Our primary goal now is to bring performance to the bottom line through 2013 and 2014″, added Shiffman.

Funds from Operations 

FFO was $30.7 million, or $0.90 per share, in the first quarter of 2013 as compared to $25.7 million, or $0.89 per share, in the first quarter of 2012. Excluding approximately $1.0 million and $0.2 million of transaction costs incurred in connection with acquisition activity during the three months ended March 31, 2013 and 2012, respectively, FFO was $31.7 million and $25.9 million, or $0.93 and $0.90 per share for the three months ended March 31, 2013 and 2012, respectively.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders for the first quarter of 2013 was $5.7 million, or $0.19 per diluted common share, compared with net income of $5.4 million, or $0.21 per diluted common share, for the first quarter of 2012.

Community Occupancy

During the first quarter of 2013, revenue producing sites increased by 621 sites as compared to 294 revenue producing sites gained in the first quarter of 2012. Of the 621 sites, 435 were gained in same site properties while the remaining 186 were gained in properties acquired in 2012 and 2013. Total portfolio occupancy increased to 88.6% at March 31, 2013, from 86% at March 31, 2012.

The company rented an additional 474 homes during the three months ended March 31, 2013, bringing the total number of occupied rentals to 8,584.

Same Site Results

For 159 communities owned throughout 2013 and 2012, first quarter 2013 total revenues increased 4.9% and total expenses increased 3.2%, resulting in an increase in NOI of 5.6% over the first quarter of 2012. Same site occupancy increased to 88% at March 31, 2013 from 86.1% at March 31, 2012.

Home Sales

During the first quarter of 2013, 466 homes were sold, an increase of 65 sales, or 16.2%, from the 401 homes sold during the first quarter of 2012. Rental home sales, which are included in total home sales, totaled 236 and 218 for the first quarters of 2013 and 2012, respectively.


Subsequent to quarter end, on April 18, the company acquired a recreational vehicle community, personal property, inventory and other associated intangibles for an aggregate purchase price of $9.8 million paid in cash. This community is located in New York and is comprised of 299 sites.

As previously announced, the company acquired 10 recreational vehicle communities located in Maine, Virginia, Connecticut, Massachusetts, New Jersey, Ohio and Wisconsin in February 2013. The communities are comprised of over 3,600 sites of which over 40% are reserved under annual rental contracts.

“Recent acquisitions have served to diversify the company geographically into new markets as well as to expand our commitment to recreational vehicle properties. While formerly limited to seasonal operations during the months of December through April primarily in our Southern Florida and Texas RV communities, our geographic footprint now extends North to Wisconsin and the eastern seaboard up to Maine where the RV season is opposite of the South, running from June through October. We’ve created a year round business with complimentary northern and southern seasons which will provide more efficient and effective use of our staff, marketing and RV systems,” said Shiffman.

[Slashdot] [Digg] [Reddit] [Facebook] [Google] [StumbleUpon]