Sun Communities Inc., a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, announced Monday (Oct. 3) that it has entered into a senior secured revolving credit facility in the amount of $130 million with the company’s bank group led by Bank of America, N.A. (administrative agent) and Merrill Lynch, Pierce, Fenner & Smith Inc. (sole lead arranger and sole book manager).
The credit facility replaces the Southfield, Mich.-based company’s $115 million revolving line of credit which was scheduled to mature on Oct. 1. The facility is secured primarily by a first priority lien on all of the company’s equity interests in each entity that owns all or a portion of the properties constituting the borrowing base, according to a news release.
The facility has a built-in accordion feature allowing up to $20 million in additional borrowings and a year extension option, both at the company’s discretion. The facility will bear interest at a floating rate based on Eurodollar plus a margin that is determined based on the company’s leverage ratio calculated in accordance with the facility, which can range from 2.25% to 2.95%. Based on the company’s current leverage ratio, the margin will be 2.75%.
Other banks participating in the transaction include Fifth Third Bank, PNC Bank, The PrivateBank, Citibank, N.A. and Comerica Bank.
At the time of the closing, there were $95 million of borrowings under the facility, including letters of credit issued in the normal course of the company’s business.
Sun Communities, Inc., a Southfield, Mich.-based real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities in 18 states, announced Wednesday (June 1) that on May 27, 2011, it acquired the Orange City RV Resort in Orange City, Florida, from NHC-FL7 L.P.
The purchase price was $6.47M, paid in cash.
Orange City RV Resort contains 517 developed recreational vehicle sites and is located 25 miles from Daytona area beaches and 35 miles from Disney World and other Orlando area attractions.
Prior to the announced acquisition, Sun Communities listed a portfolio of 136 communities comprising approximately 47,600 developed sites that the company owned and operated.
Sun Communities Inc., a Southfield, Mich.-based real estate investment trust (REIT) that owns and operates 136 manufactured housing and recreational vehicle communities, reported it plans to buy a 521-site RV community in Orange City, Fla.
The company previously provided third-party management services to the community and has good working knowledge of the property, Sun stated in a news release announcing its first quarter financial results. The approximate purchase price is $6.5 million and, subject to the execution of a definitive purchase agreement and the satisfaction of customary closing conditions, the closing is expected in May.
Highlights of the company’s news release follows:
Three Months Ended March 31, 2011, vs. March 31, 2010
- Funds from Operations (FFO) excluding certain items described in this release was $19 million compared to $17.7 million in the first quarter of 2010, an increase of 1.3 million or 7.3%.
- Same Site Net Operating Income (NOI) increased by 4.2%.
- Total revenues were $69.6 million, up $2.2 million or 3.3%.
- Home sales increased 9.8%, from 325 units to 357 units.
“We completed another solid quarter producing additional occupancy growth, increased home sales and strong same site NOI growth, as well as adding $32.1 million of equity to our balance sheet and refinancing $104.0 million of our 2011 debt maturities,” said Gary A. Shiffman, chairman and CEO. “These transactions strengthen our balance sheet and when added to growth from our core portfolio, as well as from several community expansion and acquisition opportunities, present a compelling prospect for a successful year at Sun.”
Funds from Operations
FFO increased to $18.8 million, or $0.82 per diluted share and OP Unit, in the first quarter of 2011 as compared to $17.6 million, or $0.84 per Share, in the first quarter of 2010.
Net Income Attributable to Common Stockholders
Net income attributable to common stockholders for the first quarter of 2011 was $2.4 million, or $0.11 per diluted common share, compared with net income of $1.3 million, or $0.07 per diluted common share, for the first quarter of 2010.
During the first quarter of 2011, revenue producing sites increased by 143 sites, compared to an increase of 242 sites during the first quarter of 2010.
Occupancy increased to 84.6% at March 31, 2011 from 83.9% at March 31, 2010. Excluding the 78 recently developed expansion sites that remained vacant at March 31, 2011; occupancy would have been 84.8%.
The company rented an additional 94 homes during the three months ended March 31, 2011, bringing the total number of occupied rentals to 6,235.
Same Site Results
For 136 communities owned throughout 2011 and 2010, first quarter 2011 total revenues increased 3.1% and total expenses increased 0.4%, resulting in an increase in NOI of 4.2% over the first quarter of 2010.
During the first quarter of 2011, 357 homes were sold, an increase of 9.8% from the 325 homes sold during the first quarter of 2010. Rental home sales, included in total home sales above, totaled 216 and 178 for the three months ended March 31, 2011 and March 31, 2010, respectively, resulting in an increase of 21.3%.
During the quarter, the company sold 975,882 shares of common stock at a weighted average price of $32.93 per share, resulting in additional net capital of approximately $32.1 million. This additional capital is expected to be utilized in connection with the previously announced portfolio acquisition expected to close in May. Currently, the funds have been used to pay down the company’s unsecured line of credit.
On March 1, 2011, Sun completed a collateralized mortgage backed security financing with JPMorgan Chase Bank, National Association for $115 million bearing an interest rate of 5.837% and a maturity of March 1, 2021. The loan refinanced $104.8 million of CMBS debt which was scheduled to mature in July 2011 and was collateralized using the same property pool.
The company has also entered into a term sheet to complete a $23.8 million CMBS financing with Merrill Lynch Mortgage Lending, Inc. The financing is expected to bear interest at approximately 5.8%, based on current indicative pricing, with a 10-year maturity and replaces currently existing mortgage debt on three properties which was scheduled to mature in June 2012.
The previously announced acquisition of 18 manufactured housing communities and one recreational vehicle community continues to progress and is expected to close in May. The acquisition remains subject to certain final closing conditions including the consent of existing lenders.
Sun Communities Inc., a real estate investment trust that owns and operates manufactured housing and recreational vehicle communities, has announced that it has agreed to buy 18 manufactured housing communities and one RV park located in Western Michigan from Kentland Corp. for $139.3 million.
Under the terms of the agreement, Sun acquires the communities, personal property and other intangibles associated with the communities, according to a news release.
It is expected that Sun will assume approximately $77 million of existing debt, issue approximately $46 million of preferred OP units and pay the estimated balance of $16.3 million in cash, exclusive of the cash purchase price for inventory and notes receivable.
The portfolio consists of 5,490 sites and is largely situated in Western Michigan. It is approximately 79% occupied and reflects a generally high level of quality with minimal deferred maintenance.
“We believe that our management team supported by our systems and procedures will strongly enhance the value of the portfolio over time,” said Gary A. Shiffman, chairman and CEO.
The company also announced it entered into a preliminary agreement with Fannie Mae and PNC Bank, which is subject to final approval, to settle the litigation the company commenced in November 2009 over certain fees charged when Sun’s variable rate loan facility was extended in April 2009. Upon consummation of the settlement, the maturity date of Sun’s entire $367.0 million credit facility with PNC Bank and Fannie Mae will be extended from 2014 to 2023.
Sun Communities Inc. is a REIT that currently owns and operates a portfolio of 136 communities comprising approximately 47,600 developed sites.
Sun Communities Inc., a real estate investment trust (REIT) that operates RV parks and manufacturing housing communities across the U.S., was one of 14 REITs named by KBW Inc., a full-service investment bank that specializes in the financial services sector, to its inaugural REIT “Dividend” Honor Roll of superior performers, The Street reported.
Honor Roll winners are publicly-traded REITs with a market capitalization of $500 million or greater that have consecutively increased or maintained regular cash dividends since 2000 and whose 2011 adjusted funds from operations (AFFO) payment ratio is lower than 95%.
KBW found that 14 companies, out of nearly 114 total companies screened, now qualify for inclusion in the KBW REIT “Dividend” Honor Roll.
“While there is a tremendous amount of focus by REIT investors on net asset value creation, we continue to believe, over time, dividends are a particularly relevant weighing mechanism and ultimately a key factor for investing in the sector,” noted KBW’s Sheila McGrath, senior vice president for equity REIT research. “For this reason, dividends were the primary selection criteria for the honor roll, and interestingly, the REITs awarded have significantly outperformed both the sector and the overall market in the last decade.”
In terms of stock price performance, REIT Honor Roll companies significantly outperformed both the Morgan Stanley REIT Index (RMS) and the overall stock market for the period 2000-2010.
For the five-year period (2005-2010) the Honor Roll returned 71% vs. 16% and 12% for the RMS and S&P 500, respectively. For the 10-year period (2000-2010) those selected in the Honor Roll returned 424% vs. 173% and 15% for the RMS and S&P 500, respectively.
Sun Communities Inc., a real estate investment trust that owns and operates 136 manufactured housing and recreational vehicle communities, announced on Wednesday (March 2) the completion of a $115 million collateralized mortgage backed security (CMBS) financing with JPMorgan Chase Bank, National Association.
The CMBS, which is for a term of 10 years, is secured by 11 properties and carries a fixed interest rate of 5.837% and principal payments based on a 30-year amortization period, according to a news release. The company said $104.8 million of the proceeds were used to repay interest and principal on existing debt. The remaining proceeds were used to pay closing costs and expenses, fund escrows and approximately $8.3 million will be used to pay down the company’s revolving line of credit.
“We are pleased to have successfully completed our plan to refinance this debt several months in advance of its maturity, while paying no pre-payment penalty, and to be a significant piece of a current CMBS transaction,” said Gary A. Shiffman, chairman and CEO. “The conclusion of this transaction allows us to further focus our attention on our remaining strategic initiatives for 2011.”
Sun Communities Inc. announced its quarterly results on Thursday (Feb. 24).
The company reported 78 cents earnings per share for the quarter, beating the Thomson Reuters consensus estimate of 77 cents by a penny. During the same quarter in 2010, the company posted 70 cents earnings per share. The company’s quarterly revenue was up 1.1% on a year-over-year basis, American Banking & Marketing News reported.
Total revenues were $263.1 million, up $6.5 million or 2.6%.
Sun Communities Inc. is a self-administered and self-managed real estate investment trust (REIT). The company owns, operates and develops 124 manufactured housing communities, four RV parks and eight MH/RV communities concentrated in the Midwestern, South and Southeast.
Shares of Sun Communities Inc. traded down 1.69% during mid-day trading on Thursday, hitting $33.09. Sun Communities Inc has a 52- week low of $18.81 and a 52-week high of $35.11. The stock’s 50-day moving average is $33.50 and its 200-day moving average is $32.27. On average, analysts predict that Sun Communities Inc will post 82 cents earnings per share next quarter. The company has a market cap of $648.5 million.
Shares of Sun Communities Inc. hit a new 52-week high today (Feb. 7) on Wall Street. The stock traded as high as $34.49 during mid-day trading and last traded at $34.27. The stock previously closed at $34.02, American Banking News reported.
Sun Communities Inc. is a self-administered and self-managed real estate investment trust that owns, operates and develops manufactured housing communities and RV parks concentrated in the Midwest, South and Southeast.
The company’s stock traded up 0.79% during mid-day trading today. The stock has a 52-week low of $17.12 and a 52-week high of $35.11. Its 50-day moving average is $33.31 and its 200-day moving average is $31.71. The company has a market cap of $672.0 million
As of Dec. 31, 2009, the company owned and operated a portfolio of 136 properties located in 18 states, including 124 manufactured housing communities, four recreational vehicle communities and eight properties containing both manufactured housing and recreational vehicle sites.
Sun Communities Inc., a Southfield, Mich.-based real estate investment trust that owns and operates manufactured housing and recreational vehicle communities, today (Oct. 28) reported improved results for the third quarter ending Sept. 30.
According to a release, highlights for the nine months ended Sept. 30, 2010, vs. Sept. 30, 2009, were as follows:
- Total revenues were $197.8 million, up $5.8 million or 3%.
- Funds from Operations (FFO) excluding certain items was $2.19 per diluted share and OP Unit, an increase of 5.3%.
- Same-site net operating income increased by 2.6%.
- Home sales increased 32.6%, from 811 units to 1,075 units.
“We have finished the quarter with a strong gain of 510 occupied sites year-to-date with gains being achieved throughout the portfolio. Demand has been increasing as applications to live in Sun’s communities have grown each year with 2010 final estimated results of over 22,000 representing more than double the 10,270 applications in 2006. Growth has also been fueled by the fifth year of increased home sales which have approximately tripled since 2005,” said Gary A. Shiffman, chairman and CEO. “We are experiencing continued positive fundamentals reflected in the fifth consecutive quarter of year over year quarterly FFO growth.”
Management projects FFO per share to be in the range of 75 cents to 79 cents for the quarter ending Dec. 31, 2010.
Preliminary guidance for 2011 FFO per share is projected to be in the range of $3.03 to $3.15. The company plans to refine this 2011 FFO guidance once it completes its 2011 budgeting process.
Sun Communities Inc., a Southfield, Mich.-based real estate investment trust (REIT) that owns and operates manufactured housing communities and permanent recreational vehicle revenue producing sites, has reported higher revenues and a smaller loss for the third quarter.
During the quarter ended Sept. 30, total revenues increased to $63.4 million compared to $61.3 million in the third quarter of 2008. Net loss for the third quarter was $2 million, compared with a net loss of $5.5 million for the same period in 2008. Funds from operations increased to $12.5 million in the third quarter compared to $11.3 million in the third quarter of 2008.
Included in net loss for the third quarter is equity loss from affiliate of $800,000 from Origen Financial Inc. and losses due to flood damage of $800,000 at one property near Atlanta, Ga. The company continues to work with its insurer to determine deductible amounts and covered damages.
For the nine months ended Sept. 30, total revenues increased to $191.9 million, compared to $188 million for the same period in 2008, excluding $3.3 million in revenues from gain on sales of vacant land. Net loss for the nine months was $3.4 million, compared to $16 million for the nine months ended Sept. 30,2008.
FFO increased to $41.3 million for the nine months ended Sept. 30, compared to $27.1 million for the same period in 2008.
“Except for rain and reserves, we are happy with our third-quarter results which allow us to affirm guidance for the year,” said Gary A. Shiffman, chairman and CEO. “Efforts to repair the flood damage at our property are occurring swiftly and we commend our staff for their quick response to help our displaced residents. While we battled rain, our affiliate, Origen, battled increasing mark to market loan loss reserves causing them to post a $4.3 million loss for the third quarter. Although reserves have increased, Origen continues to report positive cash flow results as the reserves have no impact on cash flow.”
For 136 communities owned throughout 2009 and 2008, total revenues increased 1.4% for the nine months ended Sept. 30, 2009, and total expenses increased 3.3%, resulting in an increase in net operating income of 0.6%. Same property occupancy in manufactured housing sites was 82.3% at Sept. 30, 2009, compared to 82.2% at Sept. 30, 2008.
For the nine months ended Sept. 30, 2009 and 2008, manufactured housing and permanent recreational vehicle revenue producing sites increased by 243 and 88 sites, respectively, an increase of 155 sites period over the period. Manufactured housing and permanent recreational vehicle revenue producing sites decreased by 46 for the third quarter of 2009, compared to a decrease of 37 sites during the third quarter of 2008. The company rented an additional 232 homes in the first nine months of 2009 bringing the total number of occupied rentals to 5,749.