Close

Form 8-K SUN COMMUNITIES INC For: Oct 30

October 30, 2014 9:46 AM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report: October 30, 2014
(Date of earliest event reported)

SUN COMMUNITIES, INC.
(Exact name of registrant as specified in its charter)

Maryland
1-12616
38-2730780
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

27777 Franklin Rd.
Suite 200
Southfield, Michigan
48034
(Address of Principal Executive Offices)
(Zip Code)


(248) 208-2500
(Registrants telephone number, including area code)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 2.02
Results of Operations and Financial Condition

On October 30, 2014, Sun Communities, Inc. (the Company) issued a press release, furnished as Exhibit 99.1 and incorporated herein by reference, announcing its financial results for the period ended September 30, 2014, and certain other information.

The Company will hold an investor conference call and webcast at 11:00 a.m. EDT on�October 30, 2014 to disclose and discuss the financial results for the period ended September 30, 2014.

The information contained in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.


Item 9.01
Financial Statements and Exhibits
(d)
Exhibits.
99.1
Press release issued October 30, 2014






SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


SUN COMMUNITIES, INC.

Dated: October 30, 2014
By:
/s/ Karen J. Dearing
Karen J. Dearing, Executive Vice President,
Chief Financial Officer, Secretary and Treasurer






EXHIBIT INDEX

Exhibit No.
Description
99.1
Press release issued October 30, 2014
����





����



NEWS RELEASE
October�30, 2014

Sun Communities, Inc. Reports 2014 Third Quarter Results

Southfield, MI, October�30, 2014 - Sun Communities, Inc. (NYSE: SUI) (the Company), a real estate investment trust (REIT) that owns and operates manufactured housing and recreational vehicle communities, today reported its third quarter results.

Highlights: Three Months Ended September 30, 2014

"
FFO(1) excluding transaction costs was $0.96 per diluted share and OP unit ("Share") for the three months ended September 30, 2014 as compared to $0.82 per Share for the three months ended September 30, 2013.

"
Same site Net Operating Income (NOI)(2) increased by 9.2 percent as compared to the three months ended September 30, 2013.

"
Revenue producing sites increased by 428 sites bringing total portfolio occupancy to 92.5 percent.

"
Announced the American Land Lease ("ALL") 59 community portfolio acquisition for approximately$1.32 billion.

"
Sold six communities, three located in Michigan, two located in Indiana and one in Ohio for total proceeds of $44.6 million.

"
Raised $349.1 million in proceeds from a follow-on offering of 6.9 million shares of common stock.

"This has been a very significant quarter for the Company.� The ALL acquisition will strengthen our holdings with high quality communities in our best markets, provides additional opportunities for solid growth, and substantially increases our market cap," said Gary A. Shiffman, Chairman and CEO. "At the same time, key metrics, such as occupancy increases, revenue increases and same site NOI growth, are very strong and continue to trend in a positive direction, while applications to live in our communities are at a historical high."

Funds from Operations (FFO)(1)

FFO(1) excluding transaction costs was $42.1 million and $32.1 million, or $0.96 and $0.82 per Share for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, FFO(1) excluding transaction costs was $113.2 million and $90.9 million, or $2.69 and $2.44 per Share, respectively.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders for the third quarter of 2014 was $22.7 million, or $0.54 per diluted common share, as compared to net income of $3.7 million, or $0.10 per diluted common share, for the third quarter of 2013.

Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 2



Net income attributable to common stockholders for the nine months ended September 30, 2014 was $35.4 million, or $0.89 per diluted common share, as compared to net income of $10.5 million, or $0.31 per diluted common share, for the nine months ended September 30, 2013.

Community Occupancy

Total portfolio occupancy increased to 92.5 percent at September 30, 2014 from 89.6 percent at September�30, 2013. During the third quarter of 2014, revenue producing sites increased by 428 sites as compared to 197 revenue producing sites gained in the third quarter of 2013.

During the nine months ended September 30, 2014, revenue producing sites increased by 1,415 sites as compared to an increase of 1,312 sites during the nine months ended September 30, 2013.

Same Site Results

For the 163 communities owned throughout 2014 and 2013, third quarter 2014 total revenues increased 6.5 percent and total expenses increased 0.7 percent, resulting in an increase in NOI(2) of 9.2 percent over the third quarter of 2013. Same site occupancy increased to 92.9 percent at September 30, 2014 from 91.4 percent at September�30, 2013.

For the nine months ended September 30, 2014, total revenues increased 6.6 percent and total expenses increased 3.0 percent, resulting in an increase in NOI(2) of 8.2 percent over the nine months ended September 30, 2013.

Home Sales

During the third quarter of 2014, 524 homes were sold as compared to 487 homes sold during the third quarter of 2013. Rental home sales, which are included in total home sales, were 208 and 239 for the third quarters of 2014 and 2013, respectively.

During the nine months ended September 30, 2014, 1,414 homes were sold compared to 1,433 homes sold during the nine months ended September 30, 2013. For the 80 new homes and 1,334 pre-owned homes sold during the first nine months of the year, the average selling price was $85,306 and $24,006, respectively. Rental home sales, which are included in total home sales, were 562 and 689 for the nine months ended September 30, 2014 and 2013, respectively.

Acquisitions

As previously announced, the Company intends to acquire the ALL portfolio as well as other manufactured housing communities from Green Courte Partners and related funds for approximately $1.32 billion. The portfolio is primarily comprised of age-restricted manufactured home communities. The transaction is subject to limited confirmatory diligence and customary closing conditions including loan assumptions, and is expected to close in two stages, with 34 properties expected to close no later than December 31, 2014, and the remaining 25 properties by January 6, 2015.

"The acquisition marketplace continues to be very active. Our acquisitions team has identified those manufactured housing and RV community opportunities which meet our criteria presenting us with a full pipeline of properties to further the Companys growth strategies," Shiffman said.

Sale of Communities


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 3


The Company completed the sale of six manufactured housing communities during the quarter for proceeds totaling $44.6 million. Three of the communities were located in Michigan, two communities were located in Indiana and one community was located in Ohio.

Debt Transactions

During the quarter, the Company entered into a�ten year loan agreement under which it borrowed $63.5 million at a blended interest rate of 4.56%. The loan is collateralized by five recreational vehicle communities. The proceeds were used to pay down the Companys line of credit.

Also during the quarter, the Company paid in full $74.9 million of debt, unencumbering eight manufactured home communities.

Equity Transaction

On September 23, 2014, the Company completed a follow-on offering of 6,900,000 shares of common stock at a price of $50.60 per share. Proceeds from the offering were $349.1 million. The Company used the proceeds to pay down the Companys line of credit and intends to use the remainder towards the portfolio acquisition described above and working capital.

2014 Guidance

Guidance for the remainder of 2014, as presented below, assumes the completion of the acquisition of the first 34 ALL properties in mid-November 2014, excludes transactions and debt extinguishment costs and includes dilution from the Company's recently completed equity offering.

Q4 2014
2014
FFO (1)�excluding transaction and debt extinguishment costs
$0.67 - $0.71
$3.36 - $3.40 per Share

Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 4



"
Same Site Portfolio: Updated same site portfolio performance is being provided to remove recently completed dispositions.

SAME SITE PORTFOLIO (163 communities)
2013
Forecasted
Forecasted 2014
(Dollar amounts in millions)
Actuals
% Growth
Midpoint
REVENUES:
Revenue - annual and seasonal
$
249.1

6.4%
$
265.1

Revenue - transient
12.7

7.1%
13.6

Other property income
11.6

9.5%
12.7

Income from property *
273.4

6.6%
291.4

PROPERTY OPERATING EXPENSES:
Real estate tax
21.5

1.4%
21.8

Property operating and maintenance *
60.7

3.8%
63.0

Total operating expense
82.2

3.2%
84.8

NOI(2)�from Real Property
$
191.2

8.1%
$
206.6


*The foregoing table nets $18.8 million of utility revenue against the related utility expense in property operating and maintenance expense.


"
Acquisition Portfolio: Information pertaining to the 55 properties excluded from the Company's same site portfolio is presented in the table below, including estimated operating results from 34 of the ALL properties expected to close in 2014.

ACQUISITION PORTFOLIO (55 communities)
Forecasted 2014
(Dollar amounts in millions)
Midpoint
REVENUES:
Revenue - annual and seasonal
$
19.9

Revenue - transient
18.1

Other property income
2.5

Income from property
40.5

PROPERTY OPERATING EXPENSES:
Real estate tax
2.1

Property operating and maintenance
16.5

Total operating expense
18.6

NOI(2)�from Real Property
$
21.9



The estimates and assumptions are forward looking based on the Company's current assessment of economic and market conditions, but may be affected by the risks outlined below under the caption "Forward-Looking Statements" and may differ materially from actual results.


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 5


Earnings Conference Call

A conference call to discuss third quarter operating results will be held on Thursday, October 30, 2014 at 11:00 A.M. (EDT). To participate, call toll-free 888-539-3696. Callers outside the U.S. or Canada can access the call at 719-325-2452. A replay will be available following the call through November 13, 2014, and can be accessed toll-free by calling 888-203-1112 or by calling 719-457-0820. The Conference ID number for the call and the replay is 5390763. The conference call will be available live on Sun Communities website www.suncommunities.com. Replay will also be available on the website.

Sun Communities, Inc. is a REIT that currently owns and operates a portfolio of 184 communities comprising approximately 70,000 developed sites.

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

Contact

Please address all inquiries to our investor relations department, at our website www.suncommunities.com, by phone (248) 208-2500, by email [email protected] or by mail Sun Communities, Inc. Investor Relations, 27777 Franklin Road, Ste. 200, Southfield, MI 48034.


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 6


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. Forward-looking statements can be identified by words such as will, may, could, expect, anticipate, believes, intends, should, plans, estimates, approximate, guidance and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements reflect the Companys current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include national, regional and local economic climates, the ability to maintain rental rates and occupancy levels, competitive market forces, the performance of the recent acquisitions, the ability to integrate future acquisitions smoothly and efficiently, the closing of the ALL acquisition on expected time frames and terms, changes in market rates of interest, the ability of manufactured home buyers to obtain financing, the level of repossessions by manufactured home lenders and those risks and uncertainties referenced under the headings entitled Risk Factors contained in our 2013 Annual Report, and the Companys other periodic filings with the Securities and Exchange Commission.

The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in the Companys assumptions, expectations of future events, or trends.


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 7


(1)
Funds from operations (FFO) is defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income (loss) (computed in accordance with generally accepted accounting principles GAAP), excluding gains (or losses) from sales of depreciable operating property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated 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. Management generally considers FFO to be a useful measure for reviewing comparative operating and financial performance because, 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 year over year, reflects the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not readily apparent from net loss. Management believes that 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. FFO is computed in accordance with the Company's interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than the Company.

Because FFO excludes significant economic components of net income (loss) including depreciation and amortization, FFO should be used as an adjunct to net income (loss) and not as an alternative to net income (loss). The principal limitation of FFO is that it does not represent cash flow from operations as defined by GAAP and is a supplemental measure of performance that does not replace net income (loss) as a measure of performance or net cash provided by operating activities as a measure of liquidity. In addition, 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 only provides investors with an additional performance measure.

(2)
Investors in and analysts following the real estate industry utilize NOI as a supplemental performance measure. NOI is derived from revenues minus property operating expenses and real estate taxes. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) 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. The Company believes that net income (loss) is the most directly comparable GAAP measurement to NOI. Net income (loss) includes interest and depreciation and amortization which often have no effect on the market value of a property and therefore limit its use as a performance measure. In addition, such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset. The Company believes that NOI is helpful to investors as a 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 management tool 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, and therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.























Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 8


Consolidated Balance Sheets
(in thousands, except per share amounts)


(unaudited)�
�September 30, 2014
December�31, 2013
ASSETS
Investment property, net (including $55,468 and $56,805 for consolidated variable interest entities at September 30, 2014 and December 31, 2013)
$
1,884,632

$
1,755,052

Cash and cash equivalents
259,152

4,753

Inventory of manufactured homes
5,480

5,810

Notes and other receivables, net
168,341

164,685

Other assets
113,192

68,936

TOTAL ASSETS
$
2,430,797

$
1,999,236

LIABILITIES
Debt (including $44,670 and $45,209 for consolidated variable interest entities at September 30, 2014 and December 31, 2013)
$
1,393,941

$
1,311,437

Lines of credit


181,383

Other liabilities
123,351

109,342

TOTAL LIABILITIES
$
1,517,292

$
1,602,162

Commitments and contingencies
STOCKHOLDERS EQUITY
Preferred stock, $0.01 par value, Authorized: 10,000 shares;
Issued and outstanding: 3,400 shares at September 30, 2014 and December 31, 2013
$
34

$
34

Common stock, $0.01 par value. Authorized: 90,000 shares; Issued and outstanding: 48,010 at September 30, 2014 and 36,140 shares at December 31, 2013
480

361

Additional paid-in capital
1,709,337

1,141,590

Accumulated other comprehensive loss
(277
)
(366
)
Distributions in excess of accumulated earnings
(807,590
)
(761,112
)
Total Sun Communities, Inc. stockholders' equity
901,984

380,507

Noncontrolling interests:
Series A-1 preferred OP units
43,670

45,548

Series A-3 preferred OP units
3,463

3,463

Common OP units
(35,498
)
(31,907
)
Consolidated variable interest entities
(114
)
(537
)
Total noncontrolling interest
11,521

16,567

TOTAL STOCKHOLDERS EQUITY
913,505

397,074

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
$
2,430,797

$
1,999,236




Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 9


Consolidated Statements of Operations
(in thousands, except per share amounts)


Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
2014
2013
REVENUES
Income from real property
$
94,245

$
80,158

$
267,847

$
234,969

Revenue from home sales
13,913

14,145

38,849

40,200

Rental home revenue
9,829

8,445

28,964

23,783

Ancillary revenues, net
3,565

932

5,198

1,376

Interest
3,545

3,442

10,425

9,587

Brokerage commissions and other income, net
338

79

720

349

Total revenues
125,435

107,201

352,003

310,264

COSTS AND EXPENSES
Property operating and maintenance
28,031

24,379

76,413

66,593

Real estate taxes
6,004

5,602

18,092

17,146

Cost of home sales
10,524

10,161

29,472

29,360

Rental home operating and maintenance
6,232

5,504

16,696

14,252

General and administrative - real property
6,971

5,927

23,177

19,086

General and administrative - home sales and rentals
2,313

2,227

7,932

7,473

Transaction costs
2,399

619

4,263

2,769

Depreciation and amortization
29,917

28,790

88,851

80,116

Asset impairment charge
837



837



Interest
18,619

17,823

54,149

54,888

Interest on mandatorily redeemable debt
808

809

2,417

2,430

Total expenses
112,655

101,841

322,299

294,113

Income before gain on dispositions, income taxes and distributions from affiliate
12,780

5,360

29,704

16,151

Gain on disposition of properties, net
13,631



14,516



Provision for state income taxes
(69
)
(90
)
(207
)
(186
)
Distributions from affiliate
400

700

1,200

1,550

Net income
26,742

5,970

45,213

17,515

Less:��Preferred return to Series A-1 preferred OP units
661

690

1,997

1,909

Less:��Preferred return to Series A-3 preferred OP units
45

45

136

121

Less:��Amounts attributable to noncontrolling interests
1,851

(28
)
3,093

415

Net income attributable to Sun Communities, Inc.
24,185

5,263

39,987

15,070

Less:��Series A preferred stock distributions
1,514

1,514

4,542

4,542

Net income attributable to Sun Communities, Inc. common stockholders
$
22,671

$
3,749

$
35,445

$
10,528

Weighted average common shares outstanding:
Basic
41,710

36,128

39,943

34,263

Diluted
41,722

36,143

39,959

34,279

Earnings per share:




Basic
$
0.54

$
0.10

$
0.89

$
0.31

Diluted
$
0.54

$
0.10

$
0.89

$
0.31

Distributions per common share:
$
0.65

$
0.63

$
1.95

$
1.89


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 10


Reconciliation of Net Income to FFO(1)
(in thousands, except per share amounts)



Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
2014
2013
Net income attributable to Sun Communities, Inc. common stockholders
$
22,671

$
3,749

$
35,445

$
10,528

Adjustments:




Preferred return to Series A-1 preferred OP units


690



1,909

Preferred return to Series A-3 preferred OP units


45



121

Amounts attributable to noncontrolling interests
1,220

(28
)
2,067

415

Depreciation and amortization
30,229

29,242

89,772

80,926

Asset impairment charge
837



837



Gain on disposition of properties, net
(13,631
)


(14,516
)


Gain on disposition of assets
(1,634
)
(2,190
)
(4,663
)
(5,806
)
Funds from operations ("FFO") (1)
39,692

31,508

108,942

88,093

Adjustments:
Transaction costs
2,399

619

4,263

2,769

Funds from operations excluding certain items
$
42,091

$
32,127

$
113,205

$
90,862

Weighted average common shares outstanding:
41,023

35,499

39,283

33,802

Add:
Common OP Units
2,069

2,069

2,069

2,069

Restricted stock
687

629

660

461

Common stock issuable upon conversion of Series A-1 preferred OP units


1,111



1,111

Common stock issuable upon conversion of Series A-3 preferred OP units


75



64

Common stock issuable upon conversion of stock options
12

15

16

16

Weighted average common shares outstanding - fully diluted
43,791

39,398

42,028

37,523

FFO(1)�per Share - fully diluted
$
0.91

$
0.80

$
2.59

$
2.36

FFO(1)�per Share excluding certain items - fully diluted
$
0.96

$
0.82

$
2.69

$
2.44




Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 11


Statement of Operations  Same Site
(in thousands except for Other Information)


Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
Change
% Change
2014
2013
Change
% Change
REVENUES:
Income from real property
$
71,263

$
66,914

$
4,349

6.5
�%
$
218,176

$
204,588

$
13,588

6.6
�%
PROPERTY OPERATING EXPENSES:
Payroll and benefits
5,693

6,068

(375
)
(6.2
)%
16,962

17,551

(589
)
(3.4
)%
Legal, taxes, & insurance
1,257

1,174

83

7.1
�%
3,478

3,158

320

10.1
�%
Utilities
3,754

3,690

64

1.7
�%
12,924

11,923

1,001

8.4
�%
Supplies and repair
3,253

3,000

253

8.4
�%
8,483

7,844

639

8.1
�%
Other
1,978

2,124

(146
)
(6.9
)%
5,973

5,704

269

4.7
�%
Real estate taxes
5,491

5,230

261

5.0
�%
16,326

16,106

220

1.4
�%
Property operating expenses
21,426

21,286

140

0.7
�%
64,146

62,286

1,860

3.0
�%
NET OPERATING INCOME ("NOI")(2)
$
49,837

$
45,628

$
4,209

9.2
�%
$
154,030

$
142,302

$
11,728

8.2
�%


As of September 30,
OTHER INFORMATION
2014
2013
Change
Number of properties
163

163



Developed sites
61,609

60,729

880

Occupied sites (3)
52,429

50,534

1,895

Occupancy % (3) (4)
92.9
%
91.4
%
1.5
%
Weighted average monthly rent per site - MH
$
458

$
444

$
14

Weighted average monthly rent per site - RV (5)
$
415

$
408

$
7

Weighted average monthly rent per site - Total
$
453

$
440

$
13

Sites available for development
5,902

6,727

(825
)
(3)
Includes manufactured housing and annual/seasonal recreational vehicle sites, and excludes transient recreational vehicle sites, which are included in total developed sites.
(4)
Occupancy % excludes recently completed but vacant expansion sites.
(5)
Weighted average rent pertains to annual/seasonal RV sites and excludes transient RV sites.



Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 12


Rental Program Summary
(amounts in thousands except for *)
Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
Change
% Change
2014
2013
Change
% Change
REVENUES:
Rental home revenue
$
9,829

$
8,445

$
1,384

16.4
%
$
28,964

$
23,783

$
5,181

21.8
�%
Site rent included in Income from real property
13,543

11,884

1,659

14.0
%
40,159

34,115

6,044

17.7
�%
Rental Program revenue
23,372

20,329

3,043

15.0
%
69,123

57,898

11,225

19.4
�%
EXPENSES:
Commissions
677

550

127

23.1
%
1,899

1,804

95

5.3
�%
Repairs and refurbishment
3,049

2,704

345

12.8
%
7,859

6,381

1,478

23.2
�%
Taxes and insurance
1,313

1,133

180

15.9
%
3,935

3,233

702

21.7
�%
Marketing and other
1,193

1,117

76

6.8
%
3,003

2,834

169

6.0
�%
Rental Program operating and maintenance
6,232

5,504

728

13.2
%
16,696

14,252


2,444

17.1
�%
NET OPERATING INCOME ("NOI") (3)
$
17,140

$
14,825

$
2,315

15.6
%
$
52,427

$
43,646

$
8,781

20.1
�%
Occupied rental home information as of September 30, 2014 and 2013:
Number of occupied rentals, end of period*�
10,116

9,232

884

9.6
�%
Investment in occupied rental homes
$
389,634

$
338,110

$
51,524

15.2
�%
Number of sold rental homes*�
562

689

(127
)
(18.4
)%
Weighted average monthly rental rate*�
$
816

$
795

$
21

2.6
�%



Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 13


Homes Sales Summary
(amounts in thousands except for *)
Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
Change
% Change
2014
2013
Change
% Change
New home sales
$
2,250

$
1,592

$
658

41.3
�%
$
6,825

$
3,918

$
2,907

74.2
�%
Pre-owned home sales
11,663

12,553

(890
)
(7.1
)%
32,024

36,282

(4,258
)
(11.7
)%
Revenue from home sales
13,913

14,145

(232
)
(1.6
)%
38,849

40,200

(1,351
)
(3.4
)%
New home cost of sales
1,910

1,287

623

48.4
�%
5,785

3,308

2,477

74.9
�%
Pre-owned home cost of sales
8,614

8,874

(260
)
(2.9
)%
23,687

26,052

(2,365
)
(9.1
)%
Cost of home sales
10,524

10,161

363

3.6
�%
29,472

29,360

112

0.4
�%
NOI / Gross Profit (2)
$
3,389

$
3,984

$
(595
)
(14.9
)%
$
9,377

$
10,840

$
(1,463
)
(13.5
)%
Gross profit  new homes
$
340

$
305

$
35

11.5
�%
$
1,040

$
610

$
430

70.5
�%
Gross margin %  new homes
15.1
%
19.2
%
(4.1
)%


15.2
%
15.6
%
(0.4
)%


Average selling price - new homes*
$
86,482

$
83,785

$
2,697

3.2
�%
$
85,306

$
73,926

$
11,380

15.4
�%
Gross profit  pre-owned homes
$
3,049

$
3,679

$
(630
)
(17.1
)%
$
8,337

$
10,230

$
(1,893
)
(18.5
)%
Gross margin %  pre-owned homes
26.1
%
29.3
%
(3.2
)%


26.0
%
28.2
%
(2.2
)%


Average selling price - pre-owned homes*
$
23,435

$
26,824

$
(3,389
)
(12.6
)%
$
24,006

$
26,291

$
(2,285
)
(8.7
)%
Home sales volume:
New home sales
26

19

7

36.8
�%
80

53

27

50.9
�%
Pre-owned home sales
498

468

30

6.4
�%
1,334

1,380

(46
)
(3.3
)%
Total homes sold
524

487

37

7.6
�%
1,414

1,433

(19
)
(1.3
)%


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 14


Acquisition Summary - Properties Acquired in 2013 and 2014
(amounts in thousands except for statistical data)


Three Months Ended September 30, 2014
Nine Months Ended September 30, 2014
REVENUES:
Income from real property
$
17,588

$
30,337

Revenue from home sales
151

395

Rental home revenue
105

361

Ancillary revenues, net
3,742

4,969

Total revenues
21,586

36,062

COSTS AND EXPENSES:
Property operating and maintenance
7,101

12,532

Real estate taxes
441

1,242

Cost of home sales
111

288

Rental home operating and maintenance
68

171

Total expenses
7,721

14,233

NET OPERATING INCOME ("NOI")�(2)
$
13,865

$
21,829

As of September 30, 2014
Other information:
Number of properties
21

Developed sites
8,068

Occupied sites (3)
3,794

Occupancy % (3)
96.9
%
Weighted average monthly rent per site - MH
$
402

Weighted average monthly rent per site - RV (5)
$
351

Weighted average monthly rent per site - Total
$
361

Home sales volume :
Pre-owned homes
53

Occupied rental home information :
Number of occupied rentals, end of period
98

Investment in occupied rental homes (in thousands)
$
2,636

Weighted average monthly rental rate
$
801


(3)
Includes manufactured housing and annual/seasonal recreational vehicle sites, and excludes transient recreational vehicle sites, which are included in total developed sites.
(5)
Weighted average rent pertains to annual/seasonal RV sites and excludes transient RV sites.


Sun Communities, Inc. 3rd Quarter 2014�������������������������������� Page 15


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings