Sun Communities Reporting FFO Gains for 1Q
Sun Communities Inc., a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, today reported results for its first quarter, ended March 31.
The company reported that Funds From Operations (FFO) excluding acquisition related costs was $38.3 million, or 95 cents per share, compared with $31.7 million, or 93 cents per share the previous year.
Net income attributable to common stockholders for the first quarter was $7.8 million, or 21 cents per diluted common share, as compared to net income of $5.7 million, or 19 cents per diluted common share, for the first quarter of 2013.
Other highlights include:
• Same site Net Operating Income (NOI) increased by 6.6% as compared to the first quarter of 2013.
• Revenue producing sites increased by 560 sites bringing total portfolio occupancy to 90.2%.
• Raised $214 million in net proceeds from an equity offering of 4.8 million shares of common stock. The company said $27.6 million of the proceeds were received after quarter end when the underwriters exercised their option to purchase additional shares.
• Four recreational vehicle communities were acquired during the first quarter of 2014 for $106 million.
“Despite some literally strong headwinds, we earned FFO per share above our guidance for the quarter,” said Gary A. Shiffman, Chairman and CEO. “Results were strong across the board with a 560 site gain in occupancy, home sales improvement each month throughout the quarter, and same site NOI growth of 6.6%. In addition, with our most recent equity offering we continued our commitment to acquire properties on a leverage neutral basis and have excellent financial flexibility to support our continuing investment in new properties with strong growth potential.”
He added, “With interest from both small investors and private equity investors and the favorable debt financing available for manufactured housing communities, we are taking advantage of the attractive market for asset dispositions and have 11 properties selected for potential sale. When all 11 properties are sold our site counts in Michigan and Indiana will reduce by approximately 8% and 25%, respectively.”
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