Sun Communities Details Acquisition Program
Sun Communities Inc., a Southfield, Mich.-based real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, today (July 25) reported its second-quarter results.
Highlights for the quarter ending June 30 include:
- Funds from operations (FFO) excluding $1.1 million of acquisitions costs was $0.69 per diluted share and OP unit for the three months ended June 30, 2013.
- Same site Net Operating Income (NOI) increased by 5.5% as compared to the three months ended June 30, 2012.
- Net income attributable to common stockholders was $1.0 million, or $0.03 per share, compared with net income of $1.7 million, or $0.06 per share, for the second quarter of 2012.
- Revenue producing sites increased by 494 sites, compared to an increase of 410 during the three months ended June 30, 2012, bringing total portfolio occupancy to 89.2% as compared to 86.8% at June 30, 2012.
- Total home sales increased 5% as compared to the three months ended June 30, 2012.
- Two recreational vehicle communities were acquired during the second quarter for $28.9 million increasing the year-to-date total to 12 properties acquired for $140.9 million.
“Core portfolio performance has been right on budget with solid same site growth in NOI and occupancy,” said Gary A. Shiffman, Chairman and CEO. “In the last 18 months, we have executed a substantial acquisition program including a significant commitment to the recreational vehicle business. In addition, we have dramatically reduced our leverage while increasing both the term and amount of our credit facility. Our attention is now concentrated on maximizing the earnings power of our portfolio with a special focus on our investment in recreational vehicle communities.
“Approximately 60% of the capital expenditures planned for the repositioning of the 10 “Morgan” RV properties on the Eastern Seaboard have been completed. We are beginning to experience both positive feedback and results from residents who have begun to return to the communities since the opening of the season in June.”
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