Sun Communities, Inc. Reports 2021 Second Quarter Results

·22 min read


NEWS RELEASE

July 26, 2021

Sun Communities, Inc. Reports 2021 Second Quarter Results

Southfield, MI, July 26, 2021 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") communities, recreational vehicle ("RV") resorts and marinas, (collectively, the "properties"), today reported its second quarter results for 2021.

Financial Results for the Quarter and Six Months Ended June 30, 2021

For the quarter ended June 30, 2021, total revenues increased $300.6 million, or 99.1 percent, to approximately $603.9 million compared to $303.3 million for the same period in 2020. Net income attributable to common stockholders increased $51.9 million or 88.0 percent, to approximately $110.8 million, or $0.98 per diluted common share, compared to net income attributable to common stockholders of $58.9 million, or $0.61 per diluted common share, for the same period in 2020.

For the six months ended June 30, 2021, total revenues increased $432.3 million, or 70.5 percent, to $1.0 billion compared to approximately $613.6 million for the same period in 2020. Net income attributable to common stockholders increased $92.7 million or 216.5 percent, to approximately $135.6 million, or $1.22 per diluted common share, compared to net income attributable to common stockholders of $42.8 million, or $0.45 per diluted common share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations ("Core FFO")(1) for the quarter ended June 30, 2021, was $1.80 per diluted share and OP unit ("Share") as compared to $1.12 in the corresponding period in 2020, a 60.7 percent increase.

  • Same Community(2) Net Operating Income ("NOI")(1) increased by 21.6 percent for the quarter ended June 30, 2021, as compared to the corresponding period in 2020.

  • Home Sales Volume increased 89.5 percent to 1,158 homes for the quarter ended June 30, 2021, as compared to 611 homes in the same period in 2020.

  • Acquisitions totaled $719.4 million during and subsequent to the quarter ended June 30, 2021, including 10 MH communities, two RV resorts and six marinas.

Gary Shiffman, Chief Executive Officer stated, "Sun's ongoing strong momentum continued through the second quarter, as we saw robust performance across RV, Manufactured Housing and Marinas. Our RV business is demonstrating the growing appeal of an RV vacation for consumers, marinas are in the midst of an active boating season and our results continue to track ahead of our underwriting, and in our manufactured housing business, we are benefiting from sustained demand for affordable housing. Furthermore, our RV forward bookings have continued to accelerate and we are pleased to again increase our guidance for the year."

Mr. Shiffman continued, "We have remained active in terms of new site deliveries and have more than 9,400 sites available for development, representing an attractive source of growth and value creation over time. We also deployed over $719 million in acquisitions, including six marinas as we begin to realize the meaningful consolidation opportunity we have in the marina industry. To support this ongoing growth, we are pleased to have received investment grade ratings and completed our inaugural unsecured bond issuance as we issued $600 million in senior unsecured notes. This additional financing option provides Sun enhanced financial flexibility to efficiently match fund our investment activities as we continue to realize compelling growth opportunities across all of our businesses."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.4 percent at June 30, 2021, compared to 97.3 percent at June 30, 2020, an increase of 10 basis points.

During the quarter ended June 30, 2021, MH and annual RV revenue producing sites increased by 583 sites, as compared to an increase of 851 revenue producing sites during the quarter ended June 30, 2020.

During the six months ended June 30, 2021, MH and annual RV revenue producing sites increased by 1,097 sites, as compared to an increase of 1,151 revenue producing sites during the six months ended June 30, 2020.

Same Community(2) Results

For the 405 MH and RV properties owned and operated by the Company since January 1, 2020, the following table reflects the NOI(1) percentage increases, in total and by segment, for the quarter and six months ended June 30, 2021:

Quarter Ended June 30, 2021

Total Same Community

MH

RV

Revenue

22.5

%

6.9

%

64.4

%

Expense

24.7

%

11.8

%

41.9

%

NOI

21.6

%

5.4

%

85.1

%


Six Months Ended June 30, 2021

Total Same Community

MH

RV

Revenue

12.8

%

6.0

%

30.2

%

Expense

15.2

%

8.7

%

24.2

%

NOI

11.8

%

5.1

%

34.8

%

Same Community adjusted occupancy(3) increased to 98.8 percent at June 30, 2021 from 97.2 percent at June 30, 2020.

Home Sales

During the quarter ended June 30, 2021, the Company sold 1,158 homes as compared to 611 homes in the same period in 2020, an increase of 89.5 percent. The Company sold 227 and 140 new homes for the quarters ended June 30, 2021 and 2020, respectively, an increase of 62.1 percent. Pre-owned home sales were 931 in the second quarter 2021 as compared to 471 in the same period in 2020, an increase of 97.7 percent.

During the six months ended June 30, 2021, the Company sold 1,993 homes as compared to 1,374 homes in the same period in 2020, an increase of 45.1 percent. The Company sold 376 and 259 new homes for the six months ended June 30, 2021 and 2020, respectively, an increase of 45.2 percent. Pre-owned home sales were 1,617 in the six months ended June 30, 2021 as compared to 1,115 in the same period in 2020, an increase of 45.0 percent.

Marina Results

Marina NOI was $62.8 million and $94.2 million for the quarter and six months ended June 30, 2021, respectively. Refer to page 15 for additional information regarding the marina portfolio operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended June 30, 2021, the Company acquired the following communities, resorts and marinas:

Property Name

Property Type

Sites,
Wet Slips and
Dry Storage Spaces

Development Sites

State / Province

Total
Purchase Price
(in millions)

Month Acquired

ThemeWorld RV Resort

RV

148

FL

$

25.0

April

Sylvan Glen Estates(a)

MH

476

MI

24.0

April

Shelter Island Boatyard

Marina

55

N/A

CA

10.0

May

Lauderdale Marine Center

Marina

202

N/A

FL

340.2

May

Apponaug Harbor(b)

Marina

378

N/A

RI

6.6

June

Cabrillo Isle(c)

Marina

483

N/A

CA

46.9

June

Marathon Marina

Marina

147

N/A

FL

19.1

June

Subtotal

1,889

471.8

Acquisitions subsequent to quarter end

Allen Harbor

Marina

165

N/A

RI

4.0

July

Cisco Grove Campground & RV

RV

18

407

CA

6.6

July

Four Leaf Portfolio(d)

MH

2,714

171

MI / IN

215.0

July

Harborage Yacht Club

Marina

300

N/A

FL

22.0

July

Subtotal

3,197

578

247.6

Total acquisitions

5,086

578

$

719.4

(a) In conjunction with the acquisition, the Company issued 240,000 Series J preferred OP units.

(b) Combined with an existing adjacent marina.

(c) Acquired in connection with Safe Harbor Marinas acquisition. Transfer of the marinas was contingent on receiving third party consent.

(d) Contains nine MH communities.

During and subsequent to the six months ended June 30, 2021 the Company acquired 28 properties totaling 7,666 sites, wet slips and dry storage spaces, and 578 sites for development for a total purchase price of $853.4 million.

Subsequent to the quarter ended June 30, 2021, the Company sold two MH communities located in Indiana and Missouri for $67.5 million. The assets and liabilities associated with the transaction were classified as held for sale on the Consolidated Balance Sheets as of June 30, 2021.

Construction Activity

During the quarter ended June 30, 2021, the Company completed the construction of over 100 sites in two ground-up developments and over 120 expansion sites in two MH communities and one RV resort.

Year to date June 30, 2021, the Company completed the construction of over 350 sites in three ground-up development and over 230 expansion sites in three MH communities and one RV resort.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of June 30, 2021, the Company had approximately $4.3 billion in debt outstanding. The weighted average interest rate was 3.5 percent and the weighted average maturity was 10.4 years. At June 30, 2021, the Company's net debt to trailing twelve month Recurring EBITDA(1) ratio was 5.1 times. The Company had $103.5 million of unrestricted cash on hand.

Senior Unsecured Notes

On June 14, 2021, the Company received investment grade ratings of BBB and Baa3 with a stable outlook from S&P Global and Moody's, respectively.

On June 28, 2021, Sun Communities Operating Limited Partnership ("SCOLP"), the Company's operating partnership, issued $600.0 million of senior unsecured notes with an interest rate of 2.7 percent and a ten-year term, due 2031. The net proceeds from the offering were $592.4 million, after deducting underwriters' discount and estimated offering expenses.

Credit Agreement

On June 14, 2021, SCOLP, as borrower, and the Company, as guarantor, entered into a new credit agreement with certain lenders. The new credit agreement combines and replaces SCOLP's $750.0 million credit facility which was scheduled to mature May 21, 2023, and the $1.8 billion credit facility of the Company's marina subsidiary, Safe Harbor Marinas, LLC (the "Safe Harbor Facility") which was scheduled to mature on October 11, 2024. The Safe Harbor Facility was terminated in connection with the execution of the new credit agreement and all amounts due and outstanding were repaid on or prior to the date of the New Credit Agreement. The Company recognized a loss on extinguishment of debt in its Consolidated Statement of Operations related to the termination of these prior credit facilities of $0.2 million and $7.9 million, respectively.

Pursuant to the New Credit Agreement, SCOLP may borrow up to $2.0 billion under a revolving loan (the "New Credit Facility") to fund the business of SCOLP and all its subsidiaries. The New Credit Facility has a four-year term ending June 14, 2025. Subject to the satisfaction of certain conditions, the term may be extended for two additional six-month periods, and additional borrowings not to exceed $1.0 billion is permitted. However, the maturity date with respect to $500.0 million of available borrowing under the New Credit Facility is October 11, 2024, which may not be extended. The New Credit Facility bears interest at a floating rate based on the Adjusted Eurocurrency Rate or Australian Bank Bill Swap Bid Rate (BBSY), plus a margin which can range from 0.725 percent to 1.400 percent. As of June 30, 2021, the margin based on our credit ratings was 0.850 percent on the New Credit Facility. The Company had $190.3 million of borrowings on the New Credit Facility as of June 30, 2021.
Equity Transactions

Public Equity Offering

In May and June 2021, the Company completed the physical settlement of the remaining 4,050,000 shares offered under the forward sale agreement pursuant to the Company's March 2021 equity offering of 8,050,000 shares. Net proceeds of $539.7 million after deducting expenses related to the offering, were used to acquire assets and pay down the Safe Harbor Facility.

At the Market Offering Sales Agreements

In June 2021, the Company entered into an At the Market Offering (ATM) Sales Agreement (the "Sales Agreement") with certain sales agents, forward sellers, pursuant to which the Company may sell, from time to time, up to an aggregate gross sales price of $500.0 million of its common stock. No shares were sold during the quarter ending June 30, 2021 under the ATM program. Upon entering into the Sales Agreement, the Company simultaneously terminated its previous ATM sales agreement entered into in July 2017.

2021 GUIDANCE

The Company is providing revised or initial 2021 guidance for the following metrics:

Previous Range

Revised Range

FY 2021E

FY 2021E

3Q 2021E

Basic earnings per share

$1.68 - $1.84

$2.24 - $2.36

$0.90 - $0.96

Core FFO(1) per fully diluted Share

$5.92 - $6.08

$6.25 - $6.37

$2.00 - $2.06

1Q21

2Q21

3Q21

4Q21

Seasonality of Core FFO(1) per fully diluted Share

20.0

%

28.5

%

32.1

%

19.4

%

Seasonality of Core FFO(1) per fully diluted Share is based off of the midpoint of full year guidance.

Previous Range

Revised Range

FY 2021E

FY 2021E

3Q 2021E

Same Community NOI(1) growth

7.5% - 8.5%

9.9% - 10.7%

11.2% - 12.0%

Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions or capital markets activity.

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. The estimates and assumptions are forward looking based on the Company's current assessment of economic and market conditions, as well as other risks outlined below under the caption "Cautionary Statement Regarding Forward-Looking Statements."

EARNINGS CONFERENCE CALL

A conference call to discuss second quarter results will be held on Tuesday, July 27, 2021 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through August 10, 2021 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13720116. The conference call will be available live on Sun Communities' website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of June 30, 2021, owned, operated, or had an interest in a portfolio of 569 developed MH, RV and marina properties comprising over 153,300 developed sites and nearly 41,300 wet slips and dry storage spaces in 39 states and Ontario, Canada.

For more information about Sun Communities, Inc., please visit www.suncommunities.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company's control. These risks, uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and in the Company's other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

  • outbreaks of disease, including the COVID-19 pandemic, and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations;

  • changes in general economic conditions, the real estate industry and the markets in which the Company operates;

  • difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;

  • the Company's liquidity and refinancing demands;

  • the Company's ability to obtain or refinance maturing debt;

  • the Company's ability to maintain compliance with covenants contained in its debt facilities and its senior unsecured notes;

  • availability of capital;

  • changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;

  • the Company's ability to maintain rental rates and occupancy levels;

  • the Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;

  • increases in interest rates and operating costs, including insurance premiums and real property taxes;

  • risks related to natural disasters such as hurricanes, earthquakes, floods and wildfires;

  • general volatility of the capital markets and the market price of shares of the Company's capital stock;

  • the Company's ability to maintain its status as a REIT;

  • changes in real estate and zoning laws and regulations;

  • legislative or regulatory changes, including changes to laws governing the taxation of REITs;

  • litigation, judgments or settlements;

  • competitive market forces;

  • the ability of purchasers of manufactured homes and boats to obtain financing; and

  • the level of repossessions by manufactured home lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.

Investor Information


RESEARCH COVERAGE

Firm

Analyst

Phone

Email

Bank of America Merrill Lynch

Joshua Dennerlein

(646) 855-1681

joshua.dennerlein@baml.com

Berenberg Capital Markets

Keegan Carl

(646) 949-9052

keegan.carl@berenberg-us.com

BMO Capital Markets

John Kim

(212) 885-4115

johnp.kim@bmo.com

Citi Research

Michael Bilerman

(212) 816-1383

michael.bilerman@citi.com

Nicholas Joseph

(212) 816-1909

nicholas.joseph@citi.com

Evercore ISI

Steve Sakwa

(212) 446-9462

steve.sakwa@evercoreisi.com

Samir Khanal

(212) 888-3796

samir.khanal@evercoreisi.com

Green Street Advisors

John Pawlowski

(949) 640-8780

jpawlowski@greenstreetadvisors.com

Robert W. Baird & Co.

Wesley Golladay

(216) 737-7510

wgolladay@rwbaird.com

RBC Capital Markets

Brad Heffern

(512) 708-6311

brad.heffern@rbccm.com

UBS

Michael Goldsmith

(212) 713-2951

michael.goldsmith@ubs.com

Wells Fargo

Todd Stender

(562) 637-1371

todd.stender@wellsfargo.com

INQUIRIES

Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department.

At Our Website

www.suncommunities.com

By Email

investorrelations@suncommunities.com

By Phone

(248) 208-2500

Portfolio Overview
(As of June 30, 2021)


Financial and Operating Highlights
(amounts in thousands, except for *)


Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Financial Information

Total revenues

$

603,863

$

442,015

$

384,265

$

400,514

$

303,266

Net income

$

120,849

$

27,941

$

9,818

$

89,756

$

63,355

Net income attributable to Sun Communities Inc. common stockholders

$

110,770

$

24,782

$

7,586

$

81,204

$

58,910

Basic earnings per share*

$

0.98

$

0.23

$

0.07

$

0.83

$

0.61

Diluted earnings per share*

$

0.98

$

0.23

$

0.07

$

0.83

$

0.61

Cash distributions declared per common share*

$

0.83

$

0.83

$

0.79

$

0.79

$

0.79

Recurring EBITDA(1)

$

268,225

$

190,830

$

168,527

$

199,321

$

148,650

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)

$

198,017

$

135,925

$

110,849

$

165,209

$

118,092

Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)

$

209,620

$

141,036

$

124,872

$

162,624

$

110,325

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

1.70

$

1.22

$

1.03

$

1.63

$

1.20

Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*

$

1.80

$

1.26

$

1.16

$

1.60

$

1.12

Balance Sheet

Total assets

$

12,040,990

$

11,454,209

$

11,206,586

$

8,335,717

$

8,348,659

Total debt

$

4,311,175

$

4,417,935

$

4,757,076

$

3,340,613

$

3,390,771

Total liabilities

$

5,099,563

$

5,101,512

$

5,314,879

$

3,791,922

$

3,845,308


Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Operating Information*

Properties

569

562

552

432

426

Manufactured home sites

97,448

96,876

96,688

95,209

94,232

Annual RV sites

28,807

28,441

27,564

26,817

26,240

Transient RV sites

27,032

26,295

25,043

23,728

22,360

Total sites

153,287

151,612

149,295

145,754

142,832

Marina wet slips and dry storage spaces

41,275

38,753

38,152

N/A

N/A

MH occupancy

96.7

%

96.5

%

96.6

%

96.4

%

96.5

%

Annual RV occupancy

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Blended MH and annual RV occupancy

97.4

%

97.3

%

97.3

%

97.2

%

97.3

%

New home sales

227

149

156

155

140

Pre-owned home sales

931

686

626

555

471

Total home sales

1,158

835

782

710

611


Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Revenue Producing Site Gains(5)

MH net leased sites

226

127

247

349

759

RV net leased sites

357

387

331

427

92

Total net leased sites

583

514

578

776

851

Consolidated Balance Sheets
(amounts in thousands)


June 30, 2021

December 31, 2020

Assets

Land

$

2,412,629

$

2,119,364

Land improvements and buildings

8,995,041

8,480,597

Rental homes and improvements

622,397

637,603

Furniture, fixtures and equipment

529,549

447,039

Investment property

12,559,616

11,684,603

Accumulated depreciation

(2,165,564

)

(1,968,812

)

Investment property, net

10,394,052

9,715,791

Cash, cash equivalents and restricted cash

119,612

92,641

Marketable securities

153,049

124,726

Inventory of manufactured homes

43,686

46,643

Notes and other receivables, net

262,333

221,650

Goodwill

448,317

428,833

Other intangible assets, net

295,663

305,611

Other assets, net

324,278

270,691

Total Assets

$

12,040,990

$

11,206,586

Liabilities

Secured debt

$

3,457,734

$

3,489,983

Unsecured debt

853,441

1,267,093

Distributions payable

98,429

86,988

Advanced reservation deposits and rent

290,913

187,730

Accrued expenses and accounts payable

214,200

148,435

Other liabilities

184,846

134,650

Total Liabilities

5,099,563

5,314,879

Commitments and contingencies

Temporary equity

285,603

264,379

Stockholders' Equity

Common stock

1,159

1,076

Additional paid-in capital

8,163,095

7,087,658

Accumulated other comprehensive income

5,197

3,178

Distributions in excess of accumulated earnings

(1,614,243

)

(1,566,636

)

Total Sun Communities, Inc. stockholders' equity

6,555,208

5,525,276

Noncontrolling interests

Common and preferred OP units

82,865

85,968

Consolidated variable interest entities

17,751

16,084

Total noncontrolling interests

100,616

102,052

Total Stockholders' Equity

6,655,824

5,627,328

Total Liabilities, Temporary Equity and Stockholders' Equity

$

12,040,990

$

11,206,586

Statements of Operations - Quarter to Date and Year to Date Comparison
(In thousands, except per share amounts) (Unaudited)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

Revenues

Real property (excluding transient)

$

328,907

$

225,413

$

103,494

45.9

%

$

626,984

$

453,415

$

173,569

38.3

%

Real property - transient

76,998

25,714

51,284

199.4

%

109,534

56,061

53,473

95.4

%

Home sales

81,848

38,530

43,318

112.4

%

134,047

79,117

54,930

69.4

%

Service, retail, dining and entertainment

106,452

7,700

98,752

N/M

157,064

12,803

144,261

N/M

Interest

2,719

2,635

84

3.2

%

5,350

4,985

365

7.3

%

Brokerage commissions and other, net

6,939

3,274

3,665

111.9

%

12,899

7,187

5,712

79.5

%

Total Revenues

603,863

303,266

300,597

99.1

%

1,045,878

613,568

432,310

70.5

%

Expenses

Property operating and maintenance

129,961

70,804

59,157

83.6

%

233,514

140,638

92,876

66.0

%

Real estate tax

23,202

17,723

5,479

30.9

%

45,610

34,899

10,711

30.7

%

Home costs and selling

58,763

32,051

26,712

83.3

%

100,353

66,090

34,263

51.8

%

Service, retail, dining and entertainment

78,585

7,242

71,343

N/M

124,016

13,924

110,092

N/M

General and administrative

45,127

26,527

18,600

70.1

%

83,330

51,876

31,454

60.6

%

Catastrophic event-related charges, net

355

(566

)

921

162.7

%

2,769

40

2,729

N/M

Business combination, net

(201

)

(201

)

N/A

1,031

1,031

N/A

Depreciation and amortization

126,423

87,265

39,158

44.9

%

249,727

170,954

78,773

46.1

%

Loss on extinguishment of debt

8,108

1,930

6,178

320.1

%

8,108

5,209

2,899

55.7

%

Interest

37,681

31,428

6,253

19.9

%

77,198

63,844

13,354

20.9

%

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,042

(1

)

(0.1

)

%

2,077

2,083

(6

)

(0.3

)

%

Total Expenses

509,045

275,446

233,599

84.8

%

927,733

549,557

378,176

68.8

%

Income Before Other Items

94,818

27,820

66,998

240.8

%

118,145

64,011

54,134

84.6

%

Gain / (loss) on remeasurement of marketable securities

27,494

24,519

2,975

12.1

%

31,155

(4,128

)

35,283

N/M

Gain / (loss) on foreign currency translation

(264

)

10,374

(10,638

)

(102.5

)

%

(239

)

(7,105

)

6,866

(96.6

)

%

Other expense, net(6)

(660

)

(821

)

161

19.6

%

(1,759

)

(1,793

)

34

(1.9

)

%

Gain / (loss) on remeasurement of notes receivable

93

246

(153

)

(62.2

)

%

469

(1,866

)

2,335

N/M

Income from nonconsolidated affiliates

794

92

702

N/M

1,965

144

1,821

N/M

Gain / (loss) on remeasurement of investment in nonconsolidated affiliates

(115

)

1,132

(1,247

)

(110.2

)

%

(11

)

(1,059

)

1,048

(99.0

)

%

Current tax expense

(1,245

)

(119

)

(1,126

)

N/M

(1,016

)

(569

)

(447

)

78.6

%

Deferred tax benefit / (expense)

(66

)

112

(178

)

N/M

81

242

(161

)

(66.5

)

%

Net Income

120,849

63,355

57,494

90.7

%

148,790

47,877

100,913

210.8

%

Less: Preferred return to preferred OP units / equity

3,035

1,584

1,451

91.6

%

5,899

3,154

2,745

87.0

%

Less: Income attributable to noncontrolling interests

7,044

2,861

4,183

146.2

%

7,339

1,899

5,440

286.5

%

Net Income Attributable to Sun Communities, Inc.

$

110,770

$

58,910

$

51,860

88.0

%

$

135,552

$

42,824

$

92,728

216.5

%

Weighted average common shares outstanding - basic

112,082

95,859

16,223

16.9

%

110,007

94,134

15,873

16.9

%

Weighted average common shares outstanding - diluted

112,082

95,860

16,222

16.9

%

112,593

94,525

18,068

19.1

%

Basic earnings per share

$

0.98

$

0.61

$

0.37

60.7

%

$

1.22

$

0.45

$

0.77

171.1

%

Diluted earnings per share

$

0.98

$

0.61

$

0.37

60.7

%

$

1.22

$

0.45

$

0.77

171.1

%

N/M = Percentage change is not meaningful.

Outstanding Securities and Capitalization
(amounts in thousands except for *)


Outstanding Securities - As of June 30, 2021

Number of Units / Shares Outstanding

Conversion Rate*

If Converted(1)

Issuance Price Per Unit*

Annual Distribution Rate*

Non-convertible Securities

Common shares

115,889

N/A

N/A

N/A

$3.32^

Convertible Securities

Common OP units

2,569

1.0000

2,569

N/A

Mirrors common shares distributions

Series A-1 preferred OP units

288

2.4390

703

$

100

6.00

%

Series A-3 preferred OP units

40

1.8605

75

$

100

4.50

%

Series C preferred OP units

306

1.1100

340

$

100

5.00

%

Series D preferred OP units

489

0.8000

391

$

100

4.00

%

Series E preferred OP units

90

0.6897

62

$

100

5.25

%

Series F preferred OP units

90

0.6250

56

$

100

3.00

%

Series G preferred OP units

241

0.6452

155

$

100

3.20

%

Series H preferred OP units

581

0.6098

355

$

100

3.00

%

Series I preferred OP units

922

0.6098

562

$

100

3.00

%

Series J preferred OP units

240

0.6061

145

$

100

2.85

%

^ Annual distribution is based on the last quarterly distribution annualized.

(1) Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

Capitalization - As of June 30, 2021

Equity

Shares

Share Price*

Total

Common shares

115,889

$

171.40

$

19,863,375

Common OP units

2,569

$

171.40

440,327

Subtotal

118,458

$

20,303,702

Preferred OP units as converted

2,844

$

171.40

487,462

Total diluted shares outstanding

121,302

$

20,791,164

Debt

Secured debt

$

3,457,734

Unsecured debt

853,441

Total debt

$

4,311,175

Total Capitalization

$

25,102,339

Reconciliations to Non-GAAP Financial Measures

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO(1)
(amounts in thousands except for per share data)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net Income Attributable to Sun Communities, Inc. Common Stockholders

$

110,770

$

58,910

$

135,552

$

42,824

Adjustments

Depreciation and amortization

126,227

87,296

249,303

171,048

Depreciation on nonconsolidated affiliates

31

19

61

19

(Gain) / loss on remeasurement of marketable securities

(27,494

)

(24,519

)

(31,155

)

4,128

(Gain) / loss on remeasurement of investment in nonconsolidated affiliates

115

(1,132

)

11

1,059

(Gain) / loss on remeasurement of notes receivable

(93

)

(246

)

(469

)

1,866

Income attributable to noncontrolling interests

5,033

1,942

4,886

1,646

Preferred return to preferred OP units

478

958

1,000

Interest expense on Aspen preferred OP units

514

1,028

Gain on disposition of assets, net

(17,564

)

(4,178

)

(25,719

)

(9,740

)

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)

$

198,017

$

118,092

$

334,456

$

213,850

Adjustments

Business combination expense and other acquisition related costs(7)

2,284

504

4,237

889

Loss on extinguishment of debt

8,108

1,930

8,108

5,209

Catastrophic event-related charges, net

364

(567

)

2,778

39

Loss of earnings - catastrophic event-related

200

300

(Gain) / loss on foreign currency translation

264

(10,374

)

239

7,105

Other expense, net

517

552

1,233

854

Deferred tax (benefits) / expenses

66

188

(81

)

58

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)

$

209,620

$

110,325

$

351,170

$

228,304

Weighted average common shares outstanding - basic

112,082

95,859

110,007

94,134

Add

Common stock issuable upon conversion of stock options

1

1

Restricted stock

580

305

372

390

Common OP units

2,577

2,448

2,586

2,430

Common stock issuable upon conversion of certain preferred OP units

1,174

1,180

815

Weighted Average Common Shares Outstanding - Fully Diluted

116,413

98,613

114,145

97,770

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted

$

1.70

$

1.20

$

2.93

$

2.19

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted

$

1.80

$

1.12

$

3.08

$

2.34

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to NOI(1)
(amounts in thousands)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net Income Attributable to Sun Communities, Inc. Common Stockholders

$

110,770

$

58,910

$

135,552

$

42,824

Interest income

(2,719

)

(2,635

)

(5,350

)

(4,985

)

Brokerage commissions and other revenues, net

(6,939

)

(3,274

)

(12,899

)

(7,187

)

General and administrative expense

45,127

26,527

83,330

51,876

Catastrophic event-related charges, net

355

(566

)

2,769

40

Business combination expense, net

(201

)

1,031

Depreciation and amortization

126,423

87,265

249,727

170,954

Loss on extinguishment of debt

8,108

1,930

8,108

5,209

Interest expense

37,681

31,428

77,198

63,844

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,042

2,077

2,083

(Gain) / loss on remeasurement of marketable securities

(27,494

)

(24,519

)

(31,155

)

4,128

(Gain) / loss on foreign currency translation

264

(10,374

)

239

7,105

Other expense, net(6)

660

821

1,759

1,793

(Gain) / loss on remeasurement of notes receivable

(93

)

(246

)

(469

)

1,866

Income from nonconsolidated affiliates

(794

)

(92

)

(1,965

)

(144

)

(Gain) / loss on remeasurement of investment in nonconsolidated affiliates

115

(1,132

)

11

1,059

Current tax expense

1,245

119

1,016

569

Deferred tax (benefit) / expense

66

(112

)

(81

)

(242

)

Preferred return to preferred OP units / equity

3,035

1,584

5,899

3,154

Income attributable to noncontrolling interests

7,044

2,861

7,339

1,899

NOI(1)

$

303,694

$

169,537

$

524,136

$

345,845


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Real Property NOI(1)

$

252,742

$

162,600

$

457,394

$

333,939

Home Sales NOI(1)

23,085

6,479

33,694

13,027

Service, retail, dining and entertainment NOI(1)

27,867

458

33,048

(1,121

)

NOI(1)

$

303,694

$

169,537

$

524,136

$

345,845

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA(1)
(amounts in thousands)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net Income Attributable to Sun Communities, Inc. Common Stockholders

$

110,770

$

58,910

$

135,552

$

42,824

Adjustments

Depreciation and amortization

126,423

87,265

249,727

170,954

Loss on extinguishment of debt

8,108

1,930

8,108

5,209

Interest expense

37,681

31,428

77,198

63,844

Interest on mandatorily redeemable preferred OP units / equity

1,041

1,042

2,077

2,083

Current tax expense

1,245

119

1,016

569

Deferred tax (benefit) / expense

66

(112

)

(81

)

(242

)

Income from nonconsolidated affiliates

(794

)

(92

)

(1,965

)

(144

)

Less: Gain on dispositions of assets, net

(17,564

)

(4,178

)

(25,719

)

(9,740

)

EBITDAre(1)

$

266,976

$

176,312

$

445,913

$

275,357

Adjustments

Catastrophic event-related charges, net

355

(566

)

2,769

40

Business combination expense

(201

)

1,031

(Gain) / loss on remeasurement of marketable securities

(27,494

)

(24,519

)

(31,155

)

4,128

(Gain) / loss on foreign currency translation

264

(10,374

)

239

7,105

Other expense, net(6)

660

821

1,759

1,793

(Gain) / loss on remeasurement of notes receivable

(93

)

(246

)

(469

)

1,866

(Gain) / loss on remeasurement of investment in nonconsolidated affiliates

115

(1,132

)

11

1,059

Preferred return to preferred OP units / equity

3,035

1,584

5,899

3,154

Income attributable to noncontrolling interests

7,044

2,861

7,339

1,899

Plus: Gain on dispositions of assets, net

17,564

4,178

25,719

9,740

Recurring EBITDA(1)

$

268,225

$

148,919

$

459,055

$

306,141

Non-GAAP and Other Financial Measures

Debt Analysis
(amounts in thousands)


Quarter Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Debt Outstanding

Mortgage term loans

$

3,418,097

$

3,430,420

$

3,444,967

$

3,191,380

$

3,205,507

Collateralized term loan

39,637

42,510

45,016

47,546

50,006

Total secured debt

3,457,734

3,472,930

3,489,983

3,238,926

3,255,513

Senior unsecured notes

591,688

Line of credit and other debt

191,841

875,093

1,197,181

31,775

65,346

Preferred Equity - Sun NG Resorts - mandatorily redeemable

35,249

35,249

35,249

35,249

35,249

Preferred OP units - mandatorily redeemable

34,663

34,663

34,663

34,663

34,663

Total unsecured debt

853,441

945,005

1,267,093

101,687

135,258

Total debt

$

4,311,175

$

4,417,935

$

4,757,076

$

3,340,613

$

3,390,771

% Fixed / Floating

Fixed

94.7

%

79.3

%

74.0

%

97.6

%

96.6

%

Floating

5.3

%

20.7

%

26.0

%

2.4

%

3.4

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Weighted Average Interest Rates

Mortgage term loans

3.78

%

3.78

%

3.78

%

3.88

%

3.88

%

Collateralized term loan

1.30

%

1.29

%

1.31

%

1.31

%

1.31

%

Senior unsecured notes

2.70

%

%

%

%

%

Line of credit and other debt(8)

0.93

%

1.77

%

2.11

%

1.34

%

2.57

%

Preferred Equity - Sun NG Resorts - mandatorily redeemable

6.00

%

6.00

%

6.00

%

6.00

%

6.00

%

Preferred OP units - mandatorily redeemable

5.93

%

5.93

%

5.93

%

5.93

%

5.93

%

Total average

3.52

%

3.39

%

3.37

%

3.86

%

3.86

%

Debt Ratios

Net Debt / Recurring EBITDA(1) (TTM)

5.1

6.1

6.9

5.0

4.8

Net Debt / Enterprise Value

16.8

%

19.7

%

21.4

%

18.3

%

17.8

%

Net Debt / Gross Assets

29.6

%

31.8

%

35.5

%

31.6

%

29.7

%

Coverage Ratios

Recurring EBITDA(1) (TTM) / Interest

5.6

5.0

4.9

4.8

4.5

Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution

5.5

4.8

4.8

4.6

4.4


Maturities / Principal Amortization Next Five Years

2021

2022

2023

2024

2025

Mortgage term loans

Maturities

$

$

82,155

$

185,619

$

315,330

$

50,529

Principal amortization

30,083

61,411

60,788

57,344

53,933

Collateralized term loan

4,621

10,000

25,016

Line of credit and other debt

1,509

190,332

Preferred Equity - Sun NG Resorts - mandatorily redeemable

33,428

1,821

Preferred OP units - mandatorily redeemable

27,373

Total

$

34,704

$

155,075

$

271,423

$

433,475

$

296,615

Weighted average rate of maturities

%

4.46

%

4.08

%

4.47

%

4.04

%

Same Community(2)
(amounts in thousands)


Three Months Ended

Total Same Community

MH

RV

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

Financial Information

Revenue

Real property (excluding transient)

$

219,693

$

205,449

$

14,244

6.9

%

$

174,158

$

166,473

$

7,685

4.6

%

$

45,535

$

38,976

$

6,559

16.8

%

Real property - transient

51,481

21,510

29,971

139.3

%

362

173

189

109.2

%

51,119

21,337

29,782

139.6

%

Other

10,798

3,219

7,579

235.4

%

4,869

1,130

3,739

330.9

%

5,929

2,089

3,840

183.8

%

Total Operating

281,972

230,178

51,794

22.5

%

179,389

167,776

11,613

6.9

%

102,583

62,402

40,181

64.4

%

Expense

Property Operating(9)(10)

87,459

70,159

17,300

24.7

%

44,984

40,226

4,758

11.8

%

42,475

29,933

12,542

41.9

%

Real Property NOI(1)

$

194,513

$

160,019

$

34,494

21.6

%

$

134,405

$

127,550

$

6,855

5.4

%

$

60,108

$

32,469

$

27,639

85.1

%


Six Months Ended

Total Same Community

MH

RV

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

Financial Information

Revenue

Real property (excluding Transient)

$

435,054

$

410,667

$

24,387

5.9

%

$

346,900

$

331,301

$

15,599

4.7

%

$

88,154

$

79,366

$

8,788

11.1

%

Real property - transient

76,883

49,869

27,014

54.2

%

962

1,101

(139

)

(12.6

)

%

75,921

48,768

27,153

55.7

%

Other

17,793

9,071

8,722

96.2

%

9,695

4,940

4,755

96.3

%

8,098

4,131

3,967

96.0

%

Total Operating

529,730

469,607

60,123

12.8

%

357,557

337,342

20,215

6.0

%

172,173

132,265

39,908

30.2

%

Expense

Property Operating(9)(10)

159,973

138,879

21,094

15.2

%

87,989

80,911

7,078

8.7

%

71,984

57,968

14,016

24.2

%

Real Property NOI(1)

$

369,757

$

330,728

$

39,029

11.8

%

$

269,568

$

256,431

$

13,137

5.1

%

$

100,189

$

74,297

$

25,892

34.8

%

Same Community(2) (continued)


As of

June 30, 2021

June 30, 2020

Change

% Change

Other Information

Number of properties

405

405

MH occupancy

97.4

%

RV occupancy

100.0

%

MH & RV blended occupancy(3)

98.0

%

Adjusted MH occupancy(3)

98.5

%

Adjusted RV occupancy(3)

100.0

%

Adjusted MH & RV blended occupancy(3)

98.8

%

97.2

%

1.6

%

Sites available for development

7,246

7,553

(307

)

Monthly base rent per site - MH

$

601

$

583

$

18

3.1%(12)

Monthly base rent per site - RV(11)

$

527

$

504

$

23

4.7%(12)

Monthly base rent per site - Total(11)

$

584

$

565

$

19

3.3%(12)

Marina Summary
(amounts in thousands except for statistical data)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2021

Financial Information

Revenues

Real property (excluding transient)

$

61,914

$

108,020

Real property - transient

4,257

5,125

Other

3,671

5,319

Total Operating

69,842

118,464

Expenses

Property Operating(a)

28,246

51,821

Real Property NOI

41,596

66,643

Service, retail, dining and entertainment

Service, retail, dining and entertainment revenue

82,238

126,592

Service, retail, dining and entertainment expense

61,017

99,026

Service, Retail, Dining and Entertainment NOI

21,221

27,566

Marina NOI

$

62,817

$

94,209

Other Information - Marinas

June 30, 2021

Number of properties(b)

114

Total wet slips and dry storage

41,275

(a) Marina results net $3.7 million and $6.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

(b) Marina properties comprised of eight properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary(13)
(amounts in thousands except for statistical data)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2021

Financial Information

Revenues

Real property (excluding transient)

$

8,522

$

15,820

Real property - transient

21,259

27,525

Other income

2,767

3,122

Total Operating

32,548

46,467

Expenses

Property Operating(a)

15,915

25,475

Real Property NOI

$

16,633

$

20,992

Other Information - MH and RVs

June 30, 2021

Number of properties

50

Occupied sites

5,474

Developed sites

6,322

Occupancy %

86.6

%

Transient sites

8,122

(a) MH and RV Acquisitions and Other results net $1.1 million and $2.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

Home Sales Summary
(amounts in thousands except for *)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

Financial Information

New Homes

New home sales

$

34,761

$

19,206

$

15,555

81.0

%

$

57,733

$

34,802

$

22,931

65.9

%

New home cost of sales

28,269

15,707

12,562

80.0

%

46,943

28,317

18,626

65.8

%

Gross Profit – new homes

6,492

3,499

2,993

85.5

%

10,790

6,485

4,305

66.4

%

Gross margin % – new homes

18.7

%

18.2

%

0.5

%

18.7

%

18.6

%

0.1

%

Average selling price – new homes*

$

153,132

$

137,186

$

15,946

11.6

%

$

153,545

$

134,371

$

19,174

14.3

%

Pre-owned Homes

Pre-owned home sales

$

47,087

$

19,324

$

27,763

143.7

%

$

76,314

$

44,315

$

31,999

72.2

%

Pre-owned home cost of sales

25,945

13,474

12,471

92.6

%

44,529

30,896

13,633

44.1

%

Gross Profit – pre-owned homes

21,142

5,850

15,292

261.4

%

31,785

13,419

18,366

136.9

%

Gross margin % – pre-owned homes

44.9

%

30.3

%

14.6

%

41.7

%

30.3

%

11.4

%

Average selling price – pre-owned homes*

$

50,577

$

41,028

$

9,549

23.3

%

$

47,195

$

39,744

$

7,451

18.7

%

Total Home Sales

Revenue from home sales

$

81,848

$

38,530

$

43,318

112.4

%

$

134,047

$

79,117

$

54,930

69.4

%

Cost of home sales

54,214

29,181

25,033

85.8

%

91,472

59,213

32,259

54.5

%

Home selling expenses

4,549

2,870

1,679

58.5

%

8,881

6,877

2,004

29.1

%

Home Sales NOI(1)

$

23,085

$

6,479

$

16,606

256.3

%

$

33,694

$

13,027

$

20,667

158.6

%

Statistical Information

New home sales volume*

227

140

87

62.1

%

376

259

117

45.2

%

Pre-owned home sales volume*

931

471

460

97.7

%

1,617

1,115

502

45.0

%

Total home sales volume*

1,158

611

547

89.5

%

1,993

1,374

619

45.1

%

Rental Program Summary
(amounts in thousands except for *)


Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

Change

% Change

June 30, 2021

June 30, 2020

Change

% Change

Financial Information

Revenues

Home rent

$

17,060

$

14,968

$

2,092

14.0

%

$

34,082

$

30,436

$

3,646

12.0

%

Site rent

18,649

18,591

58

0.3

%

37,766

36,598

1,168

3.2

%

Total

35,709

33,559

2,150

6.4

%

71,848

67,034

4,814

7.2

%

Expenses

Rental Program operating and maintenance

4,561

4,425

136

3.1

%

9,785

9,248

537

5.8

%

Rental Program NOI(1)

$

31,148

$

29,134

$

2,014

6.9

%

$

62,063

$

57,786

$

4,277

7.4

%

Other Information

Number of sold rental homes*

281

122

159

130.3

%

492

356

136

38.2

%

Number of occupied rentals, end of period*

10,951

11,785

(834

)

(7.1

)

%

Investment in occupied rental homes, end of period

$

601,798

$

621,327

$

(19,529

)

(3.1

)

%

Weighted average monthly rental rate, end of period*

$

1,076

$

1,018

$

58

5.7

%

Rental Program NOI is included in Real Property NOI. Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company's operations.

MH and RV Property Summary

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

FLORIDA

Properties

129

128

128

127

125

MH & Annual RV Developed sites(14)

40,171

40,011

39,803

39,517

39,241

Occupied MH & Annual RV(14)

39,402

39,283

39,063

38,743

38,453

MH & Annual RV Occupancy %(14)

98.1

%

98.2

%

98.1

%

98.0

%

98.0

%

Transient RV sites

5,895

5,823

6,011

5,993

5,547

Sites for development

1,414

1,497

1,497

1,427

1,427

MICHIGAN

Properties

75

74

74

74

72

MH & Annual RV Developed sites(14)

29,600

29,092

29,086

29,086

27,901

Occupied MH & Annual RV(14)

28,671

28,145

28,109

28,033

27,191

MH & Annual RV Occupancy %(14)

96.9

%

96.7

%

96.6

%

96.4

%

97.5

%

Transient RV sites

509

541

546

546

572

Sites for development

1,182

1,182

1,182

1,182

1,182

CALIFORNIA

Properties

36

36

35

34

32

MH & Annual RV Developed sites(14)

6,736

6,734

6,675

6,372

6,364

Occupied MH & Annual RV(14)

6,613

6,609

6,602

6,290

6,272

MH & Annual RV Occupancy %(14)

98.2

%

98.1

%

98.9

%

98.7

%

98.6

%

Transient RV sites

2,416

2,418

2,231

2,236

1,978

Sites for development

127

127

373

373

264

TEXAS

Properties

25

24

24

24

23

MH & Annual RV Developed sites(14)

7,947

7,928

7,766

7,659

7,641

Occupied MH & Annual RV(14)

7,731

7,671

7,572

7,427

7,289

MH & Annual RV Occupancy %(14)

97.3

%

96.8

%

97.5

%

97.0

%

95.4

%

Transient RV sites

1,835

1,773

1,810

1,917

1,590

Sites for development

1,194

1,275

1,378

1,378

565

ONTARIO, CANADA

Properties

16

16

15

15

15

MH & Annual RV Developed sites(14)

4,302

4,199

4,090

4,067

3,980

Occupied MH & Annual RV(14)

4,302

4,199

4,090

4,067

3,980

MH & Annual RV Occupancy %(14)

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Transient RV sites

870

964

966

920

1,007

Sites for development

1,525

1,525

1,525

1,593

1,593

CONNECTICUT

Properties

16

16

16

16

16

MH & Annual RV Developed sites(14)

1,901

1,897

1,897

1,898

1,898

Occupied MH & Annual RV(14)

1,757

1,746

1,739

1,736

1,735

MH & Annual RV Occupancy %(14)

92.4

%

92.0

%

91.7

%

91.5

%

91.4

%

Transient RV sites

104

108

108

107

107

Sites for development

ARIZONA

Properties

14

14

14

13

13

MH & Annual RV Developed sites(14)

4,401

4,391

4,323

4,274

4,259

Occupied MH & Annual RV(14)

4,116

4,101

4,030

3,957

3,932

MH & Annual RV Occupancy %(14)

93.5

%

93.4

%

93.2

%

92.6

%

92.3

%

Transient RV sites

1,260

1,270

1,337

1,386

1,401

Sites for development

MAINE

Properties

13

13

13

7

7

MH & Annual RV Developed sites(14)

2,204

2,190

2,190

1,092

1,074

Occupied MH & Annual RV(14)

2,127

2,119

2,121

1,089

1,069

MH & Annual RV Occupancy %(14)

96.5

%

96.8

%

96.8

%

99.7

%

99.5

%

Transient RV sites

792

805

805

819

837

Sites for development

30

30

30

30

30

INDIANA

Properties

12

12

12

11

11

MH & Annual RV Developed sites(14)

3,087

3,087

3,087

3,087

3,087

Occupied MH & Annual RV(14)

2,970

2,961

2,950

2,957

2,961

MH & Annual RV Occupancy %(14)

96.2

%

95.9

%

95.6

%

95.8

%

95.9

%

Transient RV sites

1,089

1,089

1,089

534

534

Sites for development

277

277

277

277

277

COLORADO

Properties

10

10

10

10

10

MH & Annual RV Developed sites(14)

2,453

2,453

2,453

2,453

2,441

Occupied MH & Annual RV(14)

2,420

2,395

2,380

2,365

2,327

MH & Annual RV Occupancy %(14)

98.7

%

97.6

%

97.0

%

96.4

%

95.3

%

Transient RV sites

987

962

962

930

574

Sites for development

1,225

1,250

1,250

1,282

1,566

NEW HAMPSHIRE

Properties

10

10

10

10

10

MH & Annual RV Developed sites(14)

1,777

1,776

1,777

1,833

1,827

Occupied MH & Annual RV(14)

1,769

1,769

1,767

1,822

1,816

MH & Annual RV Occupancy %(14)

99.5

%

99.6

%

99.4

%

99.4

%

99.4

%

Transient RV sites

602

456

460

404

410

Sites for development

151

151

151

151

151

NEW YORK

Properties

10

10

9

9

9

MH & Annual RV Developed sites(14)

1,457

1,452

1,419

1,414

1,403

Occupied MH & Annual RV(14)

1,428

1,415

1,380

1,371

1,358

MH & Annual RV Occupancy %(14)

98.0

%

97.5

%

97.3

%

97.0

%

96.8

%

Transient RV sites

1,684

1,689

1,422

900

911

Sites for development

371

371

371

371

371

OHIO

Properties

9

9

9

9

9

MH & Annual RV Developed sites(14)

2,797

2,797

2,790

2,790

2,778

Occupied MH & Annual RV(14)

2,770

2,760

2,755

2,758

2,736

MH & Annual RV Occupancy %(14)

99.0

%

98.7

%

98.7

%

98.9

%

98.5

%

Transient RV sites

128

128

135

135

147

Sites for development

22

22

22

22

22

OTHER STATES

Properties

80

80

77

73

74

MH & Annual RV Developed sites(14)

17,422

17,310

16,896

16,484

16,578

Occupied MH & Annual RV(14)

16,934

16,796

16,394

15,977

16,046

MH & Annual RV Occupancy %(14)

97.2

%

97.0

%

97.0

%

96.9

%

96.8

%

Transient RV sites

8,861

8,269

7,161

6,901

6,745

Sites for development

1,925

1,969

1,969

2,044

2,294

TOTAL - MH AND RV PORTFOLIO

Properties

455

452

446

432

426

MH & Annual RV Developed sites(14)

126,255

125,317

124,252

122,026

120,472

Occupied MH & Annual RV(14)

123,010

121,969

120,952

118,592

117,165

MH & Annual RV Occupancy %(14)

97.4

%

(15)

97.3

%

97.3

%

97.2

%

97.3

%

Transient RV sites

27,032

26,295

25,043

23,728

22,360

Sites for development(16)

9,443

9,676

10,025

10,130

9,742

% Communities age restricted

32.5

%

32.7

%

33.2

%

33.6

%

34.0

%


Marina Property Summary(a)

6/30/2021

03/31/2021

12/31/2020

FLORIDA

Properties

18

16

14

Total wet slips and dry storage spaces

4,186

3,837

3,585

CONNECTICUT

Properties

11

11

11

Total wet slips and dry storage spaces

3,262

3,262

3,262

RHODE ISLAND

Properties

11

11

11

Total wet slips and dry storage spaces

3,207

2,829

2,829

MASSACHUSETTS

Properties

9

9

7

Total wet slips and dry storage spaces

2,650

2,650

2,223

NEW YORK

Properties

8

8

8

Total wet slips and dry storage spaces

2,629

2,629

2,629

MARYLAND

Properties

8

8

8

Total wet slips and dry storage spaces

2,110

2,110

2,110

OTHER STATES

Properties

49

47

47

Total wet slips and dry storage spaces

23,231

22,693

22,693

TOTAL - MARINA PORTFOLIO

Properties

114

110

106

Total wet slips and dry storage spaces

41,275

40,010

39,331

(a) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability.

Capital Improvements, Development and Acquisitions
(amounts in thousands except for *)


Recurring Capital Expenditures Average / MH & RV Site*

Recurring Capital Expenditures Average / Marina Site*

Recurring Capital Expenditures - MH / RV(17)

Recurring Capital Expenditures - Marina(17)

Lot Modifications(18)

Acquisitions(19)

Expansion
and
Development(20)

Growth Projects(21)

YTD 2021

$

178

$

149

$

21,697

$

5,909

$

16,945

$

692,344

$

90,380

$

36,357

2020

$

265

N/A

$

31,398

$

2,074

$

29,789

$

3,105,296

$

248,146

$

28,315

2019

$

345

N/A

$

30,382

N/A

$

31,135

$

930,668

$

281,808

$

9,638

Operating Statistics for MH and Annual RVs


Locations

Resident Move-outs

Net Leased Sites(5)

New Home Sales

Pre-owned Home Sales

Brokered
Re-sales

Florida

1,251

319

116

126

972

Michigan

241

113

29

807

124

Ontario, Canada

471

121

43

5

221

Texas

177

159

44

213

39

Arizona

60

86

15

23

132

Indiana

34

20

5

147

9

Ohio

58

15

1

59

9

California

68

11

14

4

82

Colorado

1

40

34

16

21

Connecticut

19

18

20

2

25

New York

87

24

6

1

7

New Hampshire

2

4

22

Maine

73

6

6

6

1

Other states

702

163

39

208

110

Six Months Ended June 30, 2021

3,242

1,097

376

1,617

1,774


Total For Year Ended

Resident Move-outs

Net Leased Sites(5)

New Home Sales

Pre-owned Home Sales

Brokered
Re-sales

2020

5,365

2,505

570

2,296

2,557

2019

4,139

2,674

571

2,868

2,231


Percentage Trends

Resident Move-outs

Resident
Re-sales

2021 TTM

2.1

%

8.1

%

2020

3.3

%

6.9

%

2019

2.6

%

6.6

%

Footnotes and Definitions

(1) Investors in and analysts following the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), and earnings before interest, tax, depreciation and amortization ("EBITDA") as supplemental performance measures. The Company believes that FFO, NOI, and EBITDA are appropriate measures given their wide use by and relevance to investors and analysts. Additionally, FFO, NOI, and EBITDA are commonly used in various ratios, pricing multiples, yields and returns and valuation calculations used to measure financial position, performance and value.

  • FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles ("GAAP") depreciation and amortization of real estate assets.

  • NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.

  • EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.

FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating property, plus real estate related depreciation and amortization, real estate related impairments, and after adjustments for nonconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company's operating performance. By excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing perspective not readily apparent from GAAP net income (loss). Management believes the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. The Company also uses FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of our core business ("Core FFO"). The Company believes that Core FFO provides enhanced comparability for investor evaluations of period-over-period results.

The Company believes that GAAP net income (loss) is the most directly comparable measure to FFO. The principal limitation of FFO is that it does not replace GAAP net income (loss) as a performance measure or GAAP cash flow from operations as a liquidity measure. Because FFO excludes significant economic components of GAAP net income (loss) including depreciation and amortization, FFO should be used as a supplement to GAAP net income (loss) and not as an alternative to it. Further, FFO is not intended as a measure of a REIT's ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO is calculated in accordance with the Company's interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that interpret the NAREIT definition differently.

NOI is derived from revenues minus property operating expenses and real estate taxes. NOI is a non-GAAP financial measure that the Company believes is helpful to investors as a supplemental measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. The Company uses NOI as a key measure when evaluating performance and growth of particular properties and / or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense and non-property specific expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.

The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating activities as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation, and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level.

EBITDA as defined by NAREIT (referred to as "EBITDAre") is calculated as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus or minus losses or gains on the disposition of depreciated property (including losses or gains on change of control), plus impairment write-downs of depreciated property and of investments in nonconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity's share of EBITDAre of nonconsolidated affiliates. EBITDAre is a non-GAAP financial measure that the Company uses to evaluate its ability to incur and service debt, fund dividends and other cash needs and cover fixed costs. Investors utilize EBITDAre as a supplemental measure to evaluate and compare investment quality and enterprise value of REITs. The Company also uses EBITDAre excluding certain gain and loss items that management considers unrelated to measurement of the Company's performance on a basis that is independent of capital structure ("Recurring EBITDA").

The Company believes that GAAP net income (loss) is the most directly comparable measure to EBITDAre. EBITDAre is not intended to be used as a measure of the Company's cash generated by operations or its dividend-paying capacity, and should therefore not replace GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating, investing and financing activities as measures of liquidity.

(2) Same Community results reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at 2021 average exchange rates.

(3) The MH and RV blended occupancy is derived from 119,933 developed sites, of which 117,536 were occupied. The adjusted MH and RV blended occupancy percentage for 2020 has been adjusted to reflect incremental period-over-period growth from newly rented expansion sites and the conversion of transient RV sites to annual RV sites. The adjusted MH and RV blended occupancy percentage for 2021 is derived from 118,907 developed sites, of which 117,536 were occupied. The number of developed sites excludes RV transient sites and over 1,000 recently completed but vacant MH expansion sites.

(4) The effect of certain anti-dilutive convertible securities is excluded from these items.

(5) Revenue producing site gains do not include occupied sites acquired during that year.

(6) Other expense, net was as follows (in thousands):

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Foreign currency remeasurement income / (loss)

$

181

$

(195

)

$

159

$

(415

)

Contingent consideration expense

(72

)

(84

)

(143

)

(166

)

Long term lease termination expense

(273

)

(273

)

GTSC repair reserve

(144

)

(269

)

(525

)

(939

)

Non-cash lease amortization expense

(625

)