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
- Raised $249.5 million in net proceeds from a follow-on offering of 5.8 million shares of common stock.
- Same site Net Operating Income (NOI) increased by 5.6% as compared to the first quarter of 2012.
- Revenue producing sites increased by 621 sites, compared to an increase of 294 during the first quarter of 2012.
- Funds From Operations (FFO) excluding certain items as described in this release was $0.93 per diluted share and OP Unit, compared to $0.90 per share in the first quarter of 2012.
- Home sales increased 16.2% as compared to the first quarter of 2012.
“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.
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.
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.
Sun Communities Inc.’s RV Resorts division has purchased the Yogi Bear’s Jellystone Park of Western New York located near North Java.
The deal, effective April 18, brings the 100-acre family camping resort in Wyoming County into the corporate network of Sun Communities, which oversees management at 185 communities in 25 states. Jellystone is its first property in New York, Buffalo Business First reported.
Jellystone is part of Sun’s recent expansion into the RV park business. The company announced last month it invested over $250 million over the past 18 months in the acquisition and quality enhancements of RV communities.The purchase price was not immediately disclosed.
Jellystone was owned and managed privately since 2004 by Scott and Sue Crompton. An announcement to customers via email and Facebook issued Saturday (April 20) promised a smooth transition, as well as plans for improvements scheduled to take place during 2013.
Jackie Maguire was named new resort manager. Through its Facebook page, the camp promised the same park, same staff and same “great family camping location” but under new ownership. Plans call for keeping existing pricing in place, with all activities remaining all-inclusive.
The campground, which accommodates tents, RVs and cabin campers, includes a multi-level water playground, a lake for swimming and fishing as well as activities like mini-golf, go-carts and hiking.
Among the improvements completed already for the upcoming season, the park has upgraded its Lakefront Cabins and Boo Boo Chalets and will be adding a new structure to its wooden playground prior to opening weekend in May. Additional changes will include renovations to the pool and mini golf course; installation of a full court basketball court; and a larger golf cart fleet.
Based in Southfield, Mich., Sun Communities is a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities.
Sun Communities Inc., a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, announced it has invested over $250 million in the acquisition and quality enhancements of RV communities in 18 months, according to a news release.
This commitment is now complimented by the branding of these destination resorts as “Sun RV Resorts” which will operate over 30 communities from Arizona to Maine to Wisconsin to Florida.
Sun Communities Inc. is headquartered in Southfield, Mich.
“Our vision is to have our brand distinguish the entire guest experience from start to finish – every touch point, from initial inquiries through our enhanced Internet site to the reservation and checkout processes will reflect a positive concern for the satisfaction of every guest,” said Gary Shiffman, chairman and CEO. “Guests will have confidence that they will receive first-class customer service throughout their stay, including quality hook-up and site accommodations, vacation rentals, and a wide range of attractive amenities at each Sun RV Resort.”
Sun intends to continue investment in Sun RV Resorts to provide its guests with enjoyable and accessible vacation destinations. “Our decision to “brand” our RV resorts represents our commitment to excellence in accommodations, service, and staff at all of our resorts. This will be enhanced as we continue to expand our vacation offerings and our geographic diversity,” said John McLaren, COO.
Sun RV Resorts is owned and operated by Sun Communities Inc., a leading provider of manufactured home communities and RV resorts with over 38 years of experience owning, operating and managing multiple properties. Sun Communities currently has 183 communities in 24 states, serving over 150,000 residents and guests. For more information, visit www.sunrvresorts.com and www.suncommunities.com.
Sun Communities Inc. announced that it plans to offer 4.5 million shares of its common stock in an underwritten registered public offering.
Southfield, Mich.-based Sun Communities owns and operates a portfolio of 183 RV and manufactured housing communities comprising approximately 67,380 developed sites.
The company expects to grant the underwriters a 30-day option to purchase up to an additional 675,000 shares of its common stock.
The company intends to use the net proceeds of the offering to repay outstanding debt, to fund possible future acquisitions of properties and for working capital and general corporate purposes.
BofA Merrill Lynch, Citigroup and BMO Capital Markets are acting as joint book-running managers for the proposed offering.
Sun Communities Inc., a real estate investment trust (REIT) based in Southfield Mich., that owns and operates manufactured housing and recreational vehicle communities, today (Feb. 21) reported its fourth quarter and year-end results.
According to a news release, highlights for the year ended Dec. 31, 2012, include:
• Acquired 14 communities for approximately $305.1 million.
•Raised $382.8 million in common stock and preferred equity offerings.
• Same site Net Operating Income (NOI) increased by 5.5%.
• Home sales increased by 21.1% as compared to 2011.
• FFO excluding certain items as described in the release was $3.19 per diluted share compared to $3.13 per share in 2011.
• Total portfolio occupancy increased to 87.3% at Dec. 31, 2012, from 85.3% at Dec. 31, 2011.
“We have substantially strengthened our balance sheet to establish a sound foundation to exploit growth opportunities through acquisitions and expansions,” said Gary A. Shiffman, chairman and CEO. “The achievements noted above clearly demonstrate management ‘s capabilities to fill and manage communities profitably. It is our intention to leverage those attributes through additional growth. I am confident that our management team is well situated to integrate and maximize performance of manufactured housing and/or recreational vehicle communities.”
Click here to read the entire year-end report.
Sun Communities Inc. announced today (Feb. 13) that on Feb. 8 it acquired 10 recreational vehicle communities located in the Eastern U.S. for $111.47 million.
According to a news release from the Southfield, Mich.-based owner of RV parks and manufactured housing communities, the newly purchased properties and associated intangibles are from Gwynns Island RV Resort LLC; Indian Creek RV Resort LLC; Lake Laurie RV Resort LLC; Newpoint RV Resort LLC; Peters Pond RV Resort Inc; Seaport LLC; Virginia Tent LLC; Wagon Wheel Maine LLC; Westward Ho RV Resort LLC; and Wild Acres LLC.
In connection with this transaction, the company also purchased certain cottages and homes located in the communities for an additional $1.32 million.
Th acquired communities, located in Maine, Virginia, Connecticut, Massachusetts, New Jersey, Ohio and Wisconsin, are comprised of nearly 3,700 sites of which approximately 40% are filled with recreational vehicles under annual rental contracts.
“While currently under-managed and in need of immediate capital improvements, these ‘Class A’ locations afford us a unique opportunity to enhance long-term growth through application of our existing management expertise, superior reservation systems and marketing programs and provide us entry into a new geographic footprint,” said Gary A. Shiffman, chairman and CEO. “The acquired portfolio provides economies of scale and cross marketing opportunities from North to South when combined with our current recreational vehicle holdings, and tempers seasonality of our revenues as the majority of these communities have seasons that run from May – September rather than the traditional October – April.”
The company also announced that on Feb. 6, it borrowed $61.5 million from Bank of Montreal, as lender and administrative agent, secured by first priority liens on all of the company’s equity interests in certain of its subsidiaries that directly or indirectly own 20 manufactured home or recreational vehicle communities.
Sun Communities Inc. is a Real Estate Investment Trust (REIT) that currently owns and operates a portfolio of 183 communities comprising approximately 67,381 developed sites.
Sun Communities Operating Limited Partnership (SCOLP), the primary operating subsidiary of Sun Communities Inc. and newly formed wholly owned subsidiaries of SCOLP, entered into an agreement on Dec. 9, to purchase 11 Morgan RV resorts for $135 million, according to a filing with the Securities and Exchange Commission (SEC).
Properties listed in the SEC document include: Ideal Private Resorts LLC, Morgan Fiesta Key LLC, Gwynns Island RV Resort LLC, Indian Creek RV Resort LLC, Lake Laurie RV Resort LLC, Newpoint RV Resort LLC, Peters Pond RV Resort Inc., Seaport LLC, Virginia Tent LLC, Wagon Wheel Maine LLC, Westward Ho RV Resort LLC and Wild Acres LLC.
The aggregate purchase price under the agreements is $135 million, subject to certain adjustments, which will be paid by cash to pay off all existing secured debt and the balance will be paid in a combination of cash and up to $10 million of newly created Series A-3 Preferred OP Units of SCOLP, as determined by the contributors prior to closing.
Sun Communities Inc., a leading owner of RV parks and manufactured housing communities, announced Tuesday (Nov. 6) that it has priced an underwritten registered public offering of 3 million shares of its 7.125% Series A Cumulative Redeemable Preferred Stock at $25 per share.
Net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses, are expected to be approximately $72.1 million, or approximately $83 million if the underwriters’ option to purchase additional shares is exercised in full.
The Southfield, Mich.-based company intends to use up to $55.3 million of the net proceeds of the offering to fund the purchase price for the acquisition of four manufactured home communities located in Michigan that it has agreed to acquire, as previously disclosed, which, subject to the satisfaction of closing contingencies, is scheduled to close by Nov. 15.
The company intends to use the remaining net proceeds of the offering for financing activities, to fund possible future acquisitions of properties and for working capital and general corporate purposes.
In addition, the company has granted the underwriters a 30-day option to purchase an additional 450,000 shares of the Series A Preferred Stock on the same terms and conditions. The offering is expected to close on Nov. 14, subject to the satisfaction or waiver of customary closing conditions. Distributions on the Series A Preferred Stock will be paid quarterly in arrears on or about Jan. 15, April 15, July 15 and Oct. 15 of each year, commencing Jan. 15, 2013, at a rate per annum of 7.125% of the liquidation value of $25 per share (equivalent to $1.78125 per share per annum).
The company has applied to list the Series A Preferred Stock on the New York Stock Exchange under the symbol “SUI-PrA”, subject to official notice of issuance. The company expects that trading will commence within 30 days after initial delivery of the Series A Preferred Stock.
Citigroup and BofA Merrill Lynch are acting as joint book-running managers for the offering. BMO Capital Markets and Janney Montgomery Scott are acting as co-managers for the offering.
Sun Communities Inc. has agreed to pay $70.8 million for four manufactured housing communities in Eastern Michigan, according to a news release.
Sun Communities, a real estate investment trust (REIT) based in Southfield, Mich., that owns and operates manufactured housing and recreational vehicle communities, entered into the purchase agreement on Oct. 3 with Rudgate Silver Springs Company LLC, Rudgate West Company LP, Rudgate East Company Limited Partnership, Rudgate East Company II Partnership and Rudgate Hunters Crossing LLC.
The purchase includes the assumption of $15.7 million of debt with the balance paid in cash.
The four communities are comprised of 1,996 manufactured housing sites. The closing of this transaction is subject to customary closing conditions, including the consent of the existing lenders, and this transaction is expected to close in November.
Sun Communities will also be providing approximately $15.3 million of mezzanine financing subordinated to $45.9 million of third-party senior debt for two additional manufactured housing communities owned by Rudgate Village Co. LP, Rudgate Clinton Co. LP and Rudgate Clinton Estates LLC.
The company will also enter into management agreements under which it will manage these two communities. The two communities, which are also located in Eastern Michigan, are comprised of 1,598 manufactured housing sites.
Sun Communities Inc., a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, reported an increase in funds from operations (FFO) for the Southfield, Mich.-based company’s first quarter ended March 31.
• FFO increased to $25.7 million, or 89 cents per share, in the first quarter as compared to $18.8 million, or 82 cents per Share, in the first quarter of 2011.
• Same site Net Operating Income (“NOI”) increased by 7.3%.
• Revenue producing sites increased by 294 sites, compared to an increase of 143 sites during the first quarter of 2011.
“We are pleased to report another quarter of strong core portfolio results as all significant growth drivers continue to meet or exceed expectations”, said Gary A. Shiffman, chairman and CEO. “Our expansions and acquisitions, particularly our Kentland acquisition, are adding to overall performance and contributing to revenue and occupancy gains.”
Net income attributable to common stockholders for the first quarter of 2012 was $5.4 million, or $0.21 per diluted common share, compared with net income of $2.4 million, or $0.11 per diluted common share, for the first quarter of 2011.
To view the entire report click here.