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Sun Communities Incurs 3Q Net Loss; Sales Up

October 25, 2012 by · Leave a Comment 

Sun Communities Inc., a real estate investment trust based in Southfield, Mich., that owns and operates manufactured housing and recreational vehicle communities, today (Oct. 25) reported its third quarter results for the period ending Sept. 30.

The company showed revenue of $83.1 million for the third quarter versus $74.7 million the year prior while sales for the nine months totaled $248. 6 million, up from $212.7 million. Sun Communities incurred a third-quarter net loss of $275,000 compared to a loss of $21,000 a year ago. Net income for the nine months was $8.6 million versus $1.6 million.

Highlights in the company’s filing with the Securities and Exchange Commission (SEC) included:

• Funds from operations (FFO) excluding transaction costs incurred in connection with acquisition activity was 71 cents per share and OP Unit, compared to 75 cents per share in the third quarter of 2011. FFO per share for the quarter was impacted by the dilutive effect of the company’s recent equity offerings.

• Same site net operating income increased by 4.4%.

• The number of home sales increased by 7.6% as compared to 2011.

• A 3 million share public offering of common stock was completed for net proceeds of $132.0 million.

“The $300 million of equity we raised during the year has allowed us to reposition our balance sheet, significantly reduce our leverage ratios, improve our liquidity position and acquire six high quality communities,” said Gary A. Shiffman, chairman and CEO. “With the strong year-to-date performance of our core portfolio and inclusive of the estimated accretion from the recently announced Rudgate portfolio, we expect to be able to offset the dilution for all of the equity raised during the year and achieve FFO per share in the range of $3.20 – $3.22.”

To view the entire report click here.

To view the entire report click here.

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