Skip to main content

Sun Communities, Inc. Reports 2023 Fourth Quarter and Full Year Results; Provides 2024 Guidance and Increases Annual Distribution Rate for 2024


     

Total Revenue Increased 7.8% and 8.6% for the Quarter and Full Year

Net Loss per Diluted Share of $0.65 and $1.72 for the Quarter and Full Year

Core FFO per Share of $1.34 and $7.10 for the Quarter and Full Year

     

Total Same Property NOI Increased by 9.6% and 7.3% for the Quarter and Full Year

Same Property Adjusted Occupancy for MH and RV Increased by 230 Basis Points, Year-over-Year

Revenue Producing Site Gains of 3,268 for the Year, Including 2,111 Transient-to-Annual RV Site Conversions

     

Establishing Guidance for 2024

Expecting Total Same Property NOI Growth of 4.8% - 6.0%

Expecting Core FFO per Share of $7.04 to $7.24

Increasing Annual Distribution by 1.1% in 2024, to $3.76 per share

     

Southfield, MI, Feb. 20, 2024 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company" or "SUI"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities and marinas (collectively, the "properties"), today reported its fourth quarter and full year results for 2023.

Financial Results for the Quarter and Year Ended December 31, 2023

  • For the quarter ended December 31, 2023, net loss attributable to common shareholders was $80.9 million, or $0.65 per diluted share, compared to net income attributable to common shareholders of $4.7 million, or $0.04 per diluted share for the same period in 2022.

  • For the year ended December 31, 2023, net loss attributable to common shareholders was $213.3 million, or $1.72 per diluted share, compared to net income attributable to common shareholders of $242.0 million, or $2.00 per diluted share, for the same period in 2022.

Non-GAAP Financial Measures

  • Core Funds from Operations ("Core FFO") for the quarter and year ended December 31, 2023, were $1.34 per common share and dilutive convertible securities ("Share") and $7.10 per Share, respectively.

  • Same Property Net Operating Income ("NOI") increased by 9.6% and 7.3% for the quarter and year ended December 31, 2023, respectively, as compared to the corresponding periods in 2022.

"The fourth quarter culminated a year of solid real property performance. Same property NOI surpassed our expectations and highlights the resilience of our portfolio, supported by the robust demand and limited supply fundamentals of our properties," said Gary A. Shiffman, Chairman, President and CEO. "We realized solid occupancy gains in our manufactured housing and RV communities, high levels of conversion of transient to annual RV sites and continued double digit NOI increases in our marinas. In the UK, although real property performance remains strong, macro headwinds continue to impact home sales. We are focused on realizing the consistent growth our portfolio provides and delivering reliable results from our real property assets. By remaining disciplined in pursuing new acquisition and development activity, de-leveraging our balance sheet, and maximizing the efficiency of our operating platform, we are confident in our strategic positioning to re-accelerate earnings growth in the coming years."

OPERATING HIGHLIGHTS

North America Portfolio Occupancy

  • MH and annual RV sites were 97.4% occupied at December 31, 2023, as compared to 96.8% at December 31, 2022.

  • During the quarter ended December 31, 2023, the number of MH and annual RV revenue producing sites increased by 683 sites, as compared to an increase of 613 sites during the corresponding period in 2022, an 11.4% increase. During the year ended December 31, 2023, MH and annual RV revenue producing sites increased by 3,268 sites, an 11.8% increase over the 2,922 sites gained during 2022.

  • Transient-to-annual RV site conversions totaled 296 sites during the fourth quarter of 2023 and accounted for 43.3% of the revenue producing site gains. Transient-to-annual RV site conversions totaled 2,111 and accounted for 64.6% of the revenue producing site gains for the year ended December 31, 2023.

Same Property Results

For the properties owned and operated by the Company since at least January 1, 2022, the following table reflects the percentage changes for the quarter and year ended December 31, 2023:

 Quarter Ended December 31, 2023
 MH RV Marina Total
Revenue        7.6        %         2.1        %         8.2        %         6.3        %
Expense        4.8        %         (4.7)        %         0.4        %         0.3        %
NOI        8.6        %         9.3        %         12.5        %         9.6        %
        
 Year Ended December 31, 2023
 MH RV Marina Total
Revenue        7.0        %         3.3        %         9.1        %         6.2        %
Expense        7.5        %         1.4        %         3.9        %         4.2        %
NOI        6.8        %         4.8        %         11.7        %         7.3        %
        
Number of Properties288  160  119  567 

Same Property adjusted blended occupancy for MH and RV increased by 230 basis points to 98.9% at December 31, 2023, from 96.6% at December 31, 2022.

INVESTMENT ACTIVITY

During the quarter ended December 31, 2023, the Company expanded its existing communities by over 30 sites and delivered over 75 sites at one ground-up development property.

Subsequent to the quarter, the Company acquired one land parcel zoned and entitled for MH development, located in the U.S. for an aggregate purchase price of $11.7 million.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

As of December 31, 2023, the Company had $7.8 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.8 years. At December 31, 2023, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.

During the quarter, the Company:

  • Entered into new mortgage term loans for $252.8 million in aggregate that mature in November 2030 and bear interest at a fixed rate of 6.49%. The proceeds were used to repay $117.8 million of mortgage term loans that matured in 2023 and pay down amounts drawn under the Company's senior credit facility.

  • Sold its 41.8 million share position in Ingenia Communities Group (ASX: INA), generating $102.5 million of proceeds, net of underwriting and other fees, with a realized loss of $8.0 million. The net proceeds were used to pay down amounts drawn under the Company's senior credit facility. The Company continues to own a 50% interest in Sungenia, a joint venture formed between the Company and the Ingenia Communities Group in November 2018.

  • Completed a transaction with an unrelated entity, whereby the Company received net cash proceeds of $53.4 million in exchange for relinquishing right, title and interest in certain MH installment notes receivable. Based on the transaction structure, which in the event of a borrower default allows the Company to repurchase the underlying homes collateralizing the notes, requirements for sale accounting were not met and the notes receivable continue to be recognized on the Company's consolidated balance sheets at December 31, 2023, and referred to as collateralized receivables. The proceeds were used to pay down borrowings outstanding under the Company's senior credit facility.
  • Simplified the structure of certain of its consolidated variable interest entities, Sun NG Whitewater RV Resorts LLC, Sun NG Beaver Brook LLC, Sun NG RV Resorts and four standalone affiliates (collectively "Sun NG") in a transaction with the Company's joint venture partner in Sun NG:

    • Sold the Company's majority equity interests in three properties for proceeds of $166.1 million, which resulted in a gain on disposition of $13.2 million;

    • Acquired all of the joint venture partner's noncontrolling equity interests in 14 properties and a significant portion of the noncontrolling equity interests in five stand-alone joint venture properties, for $149.5 million; and

    • Settled a total of $39.2 million of preferred equity interests, including $35.2 million of mandatorily redeemable equity interests classified as Unsecured debt, and issued Series L preferred OP units valued at $2.0 million.

  • Sold its investment in Rezplot Systems LLC ("Rezplot"), a nonconsolidated affiliate. Rezplot is an RV reservation software technology company operating under the Campspot brand. Total proceeds of $27.5 million included the settlement of notes receivable from Rezplot with a recorded balance of $12.2 million and resulted in a gain on sale of $15.3 million.

Subsequent to the quarter, the Company:

  • Issued $500.0 million of senior unsecured notes with an interest rate of 5.5% and a five-year term, due January 15, 2029, and received net proceeds of $495.4 million, after deducting underwriters' discounts and estimated offering expenses. The majority of the net proceeds were used to pay down borrowings outstanding under the Company's senior credit facility, reducing its floating-rate debt to total debt to approximately 10%.

  • Reached an agreement to sell two operating communities located in Florida and Arizona with 533 aggregated developed sites for total cash consideration of approximately $53.0 million. The sale is expected to close during the quarter ending March 31, 2024, with a total estimated gain of approximately $7.0 million.

UK Note Receivable

As previously announced, the Company completed an administration process related to three real estate assets that collateralized the majority of a note receivable extended to Royale Holdings Group HoldCo Limited ("Royale Life"). On December 28, 2023, the Company acquired the assets through a credit bid, a potential outcome that management had previously discussed. During the quarter, the Company engaged third party valuation specialists to appraise the assets in accordance with Accounting Standards Codification Topic 820 – Fair Value Measurements and Disclosures and recognized such assets at fair value totaling $263.8 million, as Investment Property on the Company's Consolidated Balance Sheets as of December 31, 2023. There was no resulting remeasurement adjustment.

The Company also previously announced that the note receivable was further collateralized by a first priority security interest in three MH manufacturers in the UK and that it was continuing to work through courses of action in connection with such collateral. These assets were remeasured during the fourth quarter which resulted in an unfavorable adjustment of $102.9 million.

Subsequent to quarter end, the Company completed a receivership process related to the manufacturers. The receivers sold such assets for total consideration of $10.7 million, resulting in cash proceeds to the Company of approximately $7.0 million, net of non-cash consideration and fees. The sale of these assets resulted in an incremental fair value remeasurement adjustment of $0.8 million.

Sandy Bay Update

As previously disclosed, the Company had agreed to sell Sandy Bay, an MH operating community in the UK. The property had been classified as held for sale on its Consolidated Balance Sheets at September 30, 2023. As of December 31, 2023, the asset was reclassified as held for use and the Company is now operating the property.

Park Holidays Goodwill Impairment

During year end audit procedures, the Company reviewed controls relating to the valuation of its Park Holidays business and associated goodwill. In connection with the review, the Company concluded that changes in certain triggering factors relevant to the valuation of the Park Holidays business, including financial projections and increased interest rates, should have been taken into account when preparing the Company’s interim financial statements for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023. The total non-cash goodwill impairment recognized during 2023 was $369.9 million. The Company intends to restate such interim financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

2024 Distributions

The Company's Board of Directors has approved setting the 2024 annual distribution rate at $3.76 per common share and unit, an increase of $0.04, or 1.1%, over the current annual dividend rate of $3.72 per common share and unit for 2023. This increase will begin with the first quarter distribution to be paid in April 2024. While the Board of Directors has adopted the new annual distribution policy, the amount of each quarterly distribution on the Company's common stock will be subject to approval by the Board of Directors.

New Directors

On February 15, 2024, the Company added Jerry Ehlinger and Craig A. Leupold to its Board of Directors as independent directors. Mr. Ehlinger and Mr. Leupold bring new and thoughtful real estate industry perspectives to the Company.

2024 GUIDANCE

The Company is establishing full year and first quarter 2024 guidance for diluted EPS and Core FFO per Share as follows:

  First Quarter Ending March 31, 2024 Full Year Ending
December 31, 2024
  Low High Low High
Diluted EPS $        (0.08) $        (0.03) $        2.08          $        2.28         
Depreciation and amortization          1.32                   1.32                   5.35                   5.35         
Gain on sale of assets          (0.05)          (0.05)          (0.30)          (0.30)
Distributions on preferred OP units          0.02                   0.02                   0.10                   0.10         
Noncontrolling interest          —                   —                   0.10                   0.10         
Transaction costs and other non-recurring G&A expenses          0.02                   0.02                   0.07                   0.07         
Deferred tax benefit          (0.02)          (0.02)          (0.18)          (0.18)
Difference in weighted average share count attributed to dilutive convertible securities          —                   —                   (0.11)          (0.11)
Other adjustments(b)          (0.07)          (0.07)          (0.07)          (0.07)
Core FFO(c) per Share $        1.14          $        1.19          $        7.04          $        7.24         

(a) The diluted share counts for the quarter ending March 31, 2024 and the year ending December 31, 2024 are 129.7 million and 129.8 million, respectively.

(b) Other adjustments consist primarily of remeasurement (gains) / losses, contingent legal and insurance gains and other items presented in the table that reconciles Net income / (loss) attributable to SUI common shareholders to Core FFO on page 6.

(c) The Company's initial guidance translates forecasted results from operations in Canada, Australia and the UK using the relevant exchange rates in effect on December 31, 2023, as follows:

Exchange Rates in Effect at: December 31, 2023
U.S. Dollar ("USD") / Pound Sterling ("GBP") 1.27
USD / Canadian Dollar ("CAD") 0.75
USD / Australian Dollar ("AUS") 0.68

The Company's guidance for the full year ending December 31, 2024 is reflected below. Note that certain prior period amounts have been reclassified to conform with current period presentation, with no effect on net income / (loss). The reclassifications more precisely align certain indirect expenses with underlying activity drivers. The Company has noted these line items in its guidance footnotes below, and has provided 2023 quarterly results that reflect these classifications in the "Definitions and Notes" section of this supplemental information package.

  FY 2023 Results
(in millions)

 Expected % Change in FY 2024

Same Property Portfolio(a)  
North America    
Revenues from real property $1,737.3 6.4% - 6.8%
Total property operating expenses $582.9 8.1% - 9.1%
Total North America Same Property NOI $1,154.4 5.0% - 6.2%
     
MH NOI $609.9 6.0% - 7.0%
RV NOI $291.7 2.1% - 3.5%
Marina NOI $252.7 6.1% - 7.5%
     
UK    
Revenues from real property $138.9 4.8% - 5.4%
Total property operating expenses $69.1 7.4% - 8.4%
Total UK Same Property NOI $69.8 1.3% - 3.3%
     
Total Same Property NOI(b)(c) $1,224.1 4.8% - 6.0%


Average Rental Rate Increases Expected  
MH 5.4%
Annual RV 6.5%
Marina 5.6%
UK 7.1%

For the first quarter ending March 31, 2024, the Company's guidance range assumes Total Same Property NOI growth of 6.0% - 7.3%.



Consolidated Portfolio Guidance For 2024
 FY 2023 Results
(in millions)
 Expected
Change / Range
in FY 2024
Revenues from real property $2,059.8 7.1% - 7.6%
Total property operating expenses(d) $810.4 8.1% - 8.4%
Total Real Property NOI $1,249.4 6.3% - 7.3%
     
Service, retail, dining and entertainment NOI(d) $68.5 $58.4 - $63.2
Interest income $45.4 $17.6 - $18.6
Brokerage commissions and other, net(e)(f) $60.6 $44.8 - $47.2
FFO contribution from North American home sales(d) $17.0 $14.4 - $15.9
Income from nonconsolidated affiliates $16.0 $13.7 - $14.7
General and administrative expenses(d) $272.1 $262.2 - $267.4
Interest expense $325.8 $356.3 - $362.7
Current tax expense $14.5 $14.6 - $16.8


  FY 2023 Results
(in millions)

 Expected
Range in FY 2024

UK Home Sales  
UK homes sales volume(g)  2,857 2,650 - 2,850
FFO contribution from UK home sales ($ in millions)(d)(g) $59.2 $62.3 - $69.9


Other Guidance Assumptions  Expected
Range in FY 2024
Increase in revenue producing sites (North America) 2,450 - 2,750


Seasonality 1Q24 2Q24 3Q24 4Q24
North America Same Property NOI:        
MH 25% 25% 25% 25%
RV 16% 26% 41% 17%
Marina 18% 27% 31% 24%
Total 21% 25% 30% 24%
         
UK Same Property NOI 13% 26% 41% 20%
         
Home Sales FFO        
North America 24% 32% 26% 18%
UK 18% 30% 33% 19%
Total Home Sales 19% 30% 32% 19%
         
Consolidated Service, Retail, Dining and Entertainment NOI 3% 36% 47% 14%
         
Consolidated EBITDA 19% 26% 33% 22%
         
Core FFO per Share 16% 27% 36% 21%


Footnotes to 2024 Guidance Assumptions    
(a)The amounts in the Same Property Portfolio table reflect constant currency, as Canadian and Pound Sterling currency figures included within the 2023 amounts have been translated at the assumed exchange rates used for 2024 guidance.
(b)Total Same Property results net $129.2 million and $133.2 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively.
(c)2023 actual results exclude $0.4 million of expenses incurred at recently acquired properties to bring them up to the Company's standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy.
(d)The table below summarizes the impacts of 2023 expense reclassification. Please refer to the "Definitions and Notes" section for quarterly data.
      
 (in millions, except for *) FY 2023 Reported  FY 2023 Adjusted
 Consolidated portfolio property operating expenses $(807.9) $(810.4)
 Service, retail, dining and entertainment NOI $53.9  $68.5 
 General and administrative expenses $(270.2) $(272.1)
 North America home sales FFO contribution $18.2  $17.0 
 UK home sales FFO contribution $68.3  $59.2 
 Average NOI margin per home sold* $24,300  $21,100 
(e)Brokerage commissions and other, net includes $23.4 million and $21.0 million of business interruption income in 2023 and 2024, respectively.
(f)Brokerage commissions and other, net included approximately $8.5 million of lease income in 2023 that will be recognized in total real property NOI in 2024.
(g)Includes UK home sales from Park Holidays and Sandy Bay.

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions, dispositions and capital markets activity completed through February 20, 2024. These estimates exclude all other prospective acquisitions, dispositions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter results will be held on Wednesday February 21, 2024 at 11:00 A.M. (ET). To participate, call toll-free at (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 March 6, 2024 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 13743159. The conference call will be available live on the Company's website located at www.suninc.com. The replay will also be available on the website.

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 (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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 document 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 and uncertainties, both general and specific to the matters discussed in this document, some of which are beyond the Company's control. These risks and 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 described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, 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:

Changes in general economic conditions, including inflation, deflation and energy costs, the real estate industry and the markets within 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 unsecured notes;
Availability of capital;
Outbreaks of disease and related restrictions on business operations;
Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pound sterling;
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;
The Company's remediation plan and its ability to remediate the material weakness in its internal control over financial reporting;
Expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
Increases in interest rates and operating costs, including insurance premiums and real estate taxes;
Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts 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, including costs associated with prosecuting or defending claims and any adverse outcomes;
Competitive market forces;
The ability of purchasers of manufactured homes and boats to obtain financing; and
The level of repossessions by manufactured home and boat 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 or incorporated by reference into this document, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company 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 the Company's behalf are qualified in their entirety by these cautionary statements.

Company Overview and Investor Information

 

The Company

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.

For more information about the Company, please visit www.suninc.com.

Company Contacts 
  
ManagementInvestor Relations
  • Gary A. Shiffman, Chairman, President and CEO
Sara Ismail, Vice President
  • Fernando Castro-Caratini, EVP and CFO
(248) 208-2500
  • Bruce D. Thelen, EVP and COO
investorrelations@suncommunities.com
  


Corporate Debt Ratings 
Moody'sS&P
Baa3 | StableBBB | Stable
  


Equity Research Coverage    
Bank of America Merrill Lynch Joshua Dennerlein joshua.dennerlein@bofa.com
Barclays Anthony Powell anthony.powell@barclays.com
BMO Capital Markets John Kim jp.kim@bmo.com
Citi Research Eric Wolfe eric.wolfe@citi.com
  Nicholas Joseph nicholas.joseph@citi.com
Deutsche Bank Conor Peaks conor.peaks@db.com
  Omotayo Okusanya omotayo.okusanya@db.com
Evercore ISI Samir Khanal samir.khanal@evercoreisi.com
  Steve Sakwa steve.sakwa@evercoreisi.com
Green Street Advisors John Pawlowski jpawlowski@greenstreetadvisors.com
JMP Securities Aaron Hecht ahecht@jmpsecurities.com
RBC Capital Markets Brad Heffern brad.heffern@rbccm.com
Robert W. Baird & Co. Wesley Golladay wgolladay@rwbaird.com
Truist Securities Anthony Hau anthony.hau@truist.com
UBS Michael Goldsmith michael.goldsmith@ubs.com
Wells Fargo James Feldman james.feldman@wellsfargo.com
Wolfe Research Andrew Rosivach arosivach@wolferesearch.com
  Keegan Carl kcarl@wolferesearch.com

Financial and Operating Highlights
($ in millions, except Per Share amounts)

 


 Quarters Ended
 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Financial Information         
Basic earnings / (loss) per share (a)$        (0.65        ) $        0.97          $        (1.67        ) $        (0.36        ) $        0.04         
Diluted earnings / (loss) per share(a)$        (0.65        ) $        0.97          $        (1.68        ) $        (0.36        ) $        0.04         
          
Cash distributions declared per common share$        0.93          $        0.93          $        0.93          $        0.93          $        0.88         
          
FFO per Share(a)(b)$        1.41          $        2.55          $        1.96          $        1.14          $        1.02         
Core FFO per Share(b)$        1.34          $        2.57          $        1.96          $        1.23          $        1.33         
          
Real Property NOI         
MH$        169.3          $        182.5          $        168.7          $        156.9          $        153.5         
RV         51.0                   128.4                   76.5                   45.8                   46.0         
Marinas         65.3                   83.1                   72.4                   52.0                   58.3         
Total$        285.6          $        394.0          $        317.6          $        254.7          $        257.8         
          
Recurring EBITDA$        256.0          $        433.0          $        339.7          $        237.4          $        236.3         
TTM Recurring EBITDA / Interest3.9 x 4.0 x 4.3 x 4.6 x 5.2 x
Net Debt / TTM Recurring EBITDA6.1 x 6.1 x 6.2 x 6.1 x 6.0 x
          
Balance Sheet         
Total assets(a)$        16,940.7          $        17,246.6          $        17,234.9          $        17,348.1          $        17,084.2         
Total debt$        7,777.3          $        7,665.0          $        7,614.0          $        7,462.0          $        7,197.2         
Total liabilities$        9,506.8          $        9,465.0          $        9,474.8          $        9,294.8          $        8,992.8         
          
Operating Information         
Properties         
MH         353                   353                   354                   354                   353         
RV         179                   182                   182                   182                   182         
Marina         135                   135                   135                   135                   134         
Total         667                   670                   671                   671                   669         
          
Sites, Wet Slips and Dry Storage Spaces         
Manufactured homes         118,430                   118,250                   118,170                   117,970                   118,020         
Annual RV         32,390                   32,150                   31,620                   30,860                   30,330         
Transient sites         28,490                   29,770                   30,270                   30,870                   31,180         
Total sites         179,310                   180,170                   180,060                   179,700                   179,530         
Marina wet slips and dry storage spaces(c)         48,030                   48,030                   48,180                   47,990                   47,820         
          
Occupancy         
MH occupancy (including UK)         95.5        %          95.4        %          95.3        %          95.1        %          95.0        %
Annual RV occupancy         100.0        %          100.0        %          100.0        %          100.0        %          100.0        %
Blended MH and annual RV occupancy         96.4        %          96.4        %          96.3        %          96.1        %          96.0        %
          
MH and RV Revenue Producing Site Net Gains(d) (excluding UK Operations)
MH leased sites, net         387                   207                   285                   278                   346         
RV leased sites, net         296                   537                   754                   524                   267         
Total leased sites, net         683                   744                   1,039                   802                   613         

(a) .As adjusted for Park Holidays non-cash goodwill impairment. Refer to Definitions and Notes for additional information.

(b) Excludes the effects of certain anti-dilutive convertible securities.

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

(d) Revenue producing site net gains do not include occupied sites acquired during the year.

Portfolio Overview as of December 31, 2023

 


  MH & RV Properties
  Properties

 MH & Annual RV RV Transient Sites

 Total MH and RV Sites

 Sites for Development

Location  Sites Occupancy %   
North America            
Florida         129                 40,650                 97.7        %         3,760                 44,410                 3,400        
Michigan         85                 32,890                 97.1        %         610                 33,500                 1,310        
California         37                 6,920                 98.8        %         1,880                 8,800                 850        
Texas         29                 8,990                 96.1        %         1,830                 10,820                 3,920        
Ontario, Canada         16                 4,700                 100.0        %         480                 5,180                 1,450        
Connecticut         16                 1,920                 95.0        %         80                 2,000                 —        
Maine         15                 2,470                 96.0        %         1,070                 3,540                 200        
Arizona         13                 4,590                 94.7        %         920                 5,510                 —        
Indiana         12                 3,150                 97.8        %         1,030                 4,180                 180        
New Jersey         11                 2,970                 100.0        %         1,070                 4,040                 260        
Colorado         11                 2,900                 87.0        %         990                 3,890                 1,420        
Virginia         10                 1,500                 99.9        %         1,950                 3,450                 750        
New York         10                 1,520                 99.3        %         1,420                 2,940                 780        
Other         83                 17,540                 98.7        %         8,200                 25,740                 1,010        
North America Total         477                 132,710                 97.4        %         25,290                 158,000                 15,530        
United Kingdom         55                 18,110                 89.5        %         3,200                 21,310                 2,450        
Total         532                 150,820                 96.4        %         28,490                 179,310                 17,980        


  Marina  
  Properties

   Wet Slips and Dry Storage Spaces

  
Location      
Florida         21                   5,200          
Rhode Island         12                   3,460          
California         11                   5,710          
Connecticut         11                   3,330          
New York         9                   3,020          
Massachusetts         9                   2,520          
Maryland         9                   2,480          
Other         53                   22,310          
Total         135                   48,030          


  Properties

   Sites, Wet Slips and Dry Storage Spaces

  
       
Total Portfolio         667                   227,340          

Consolidated Balance Sheets
(amounts in millions)

 


 December 31, 2023 December 31, 2022
Assets   
Land$        4,278.2          $        4,322.3         
Land improvements and buildings         11,682.2                   10,903.4         
Rental homes and improvements         744.4                   645.2         
Furniture, fixtures and equipment         1,011.7                   839.0         
Investment property         17,716.5                   16,709.9         
Accumulated depreciation         (3,272.9)          (2,738.9)
Investment property, net         14,443.6                   13,971.0         
Cash, cash equivalents and restricted cash         42.7                   90.4         
Marketable securities         —                   127.3         
Inventory of manufactured homes         205.6                   202.7         
Notes and other receivables, net         421.6                   617.3         
Collateralized receivables, net(a)         56.2                   —         
Goodwill         733.0                   1,018.4         
Other intangible assets, net         369.5                   402.0         
Other assets, net         668.5                   655.1         
Total Assets$        16,940.7          $        17,084.2         
Liabilities   
Mortgage loans payable$        3,478.9          $        3,217.8         
Secured borrowings on collateralized receivables(a)         55.8                   —         
Unsecured debt         4,242.6                   3,979.4         
Distributions payable         118.2                   111.3         
Advanced reservation deposits and rent         344.5                   352.1         
Accrued expenses and accounts payable         313.7                   396.3         
Other liabilities         953.1                   935.9         
Total Liabilities         9,506.8                   8,992.8         
Commitments and contingencies   
Temporary equity         260.9                   202.9         
Shareholders' Equity   
Common stock         1.2                   1.2         
Additional paid-in capital         9,466.9                   9,549.7         
Accumulated other comprehensive income / (loss)         12.2                   (9.9)
Distributions in excess of accumulated earnings         (2,397.5)          (1,731.2)
Total SUI shareholders' equity         7,082.8                   7,809.8         
Noncontrolling interests   
Common and preferred OP units         90.2                   78.7         
Total noncontrolling interests         90.2                   78.7         
Total Shareholders' Equity         7,173.0                   7,888.5         
Total Liabilities, Temporary Equity and Shareholders' Equity$        16,940.7          $        17,084.2         

(a) Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information.

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

 


 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 % Change December 31, 2023 December 31, 2022 % Change
Revenues           
Real property (excluding transient)(a)$        428.7          $        390.8                  9.7        % $        1,714.2          $        1,548.9                  10.7        %
Real property - transient         44.7                   49.8                  (10.2)        %          345.6                   353.3                  (2.2)        %
Home sales         93.2                   107.7                  (13.5)        %          419.9                   465.8                  (9.9)        %
Service, retail, dining and entertainment         140.0                   108.6                  28.9        %          638.9                   531.6                  20.2        %
Interest         4.8                   9.9                  (51.5)        %          45.4                   35.2                  29.0        %
Brokerage commissions and other, net         15.3                   7.5                  104.0        %          60.6                   34.9                  73.6        %
Total Revenues         726.7                   674.3                  7.8        %          3,224.6                   2,969.7                  8.6        %
Expenses           
Property operating and maintenance(a)         159.8                   155.4                  2.8        %          690.5                   624.6                  10.6        %
Real estate tax         28.0                   27.4                  2.2        %          117.4                   110.6                  6.1        %
Home costs and selling         70.5                   76.0                  (7.2)        %          295.4                   311.2                  (5.1)        %
Service, retail, dining and entertainment         134.6                   109.4                  23.0        %          585.0                   472.7                  23.8        %
General and administrative         77.8                   69.8                  11.5        %          270.2                   256.8                  5.2        %
Catastrophic event-related charges, net         6.0                   5.2                  15.4        %          3.8                   17.5          N/M
Business combinations         —                   0.8                  (100.0)        %          3.0                   24.7                  (87.9)        %
Depreciation and amortization         177.7                   154.1                  15.3        %          660.0                   601.8                  9.7        %
Asset impairments         —                   0.7                  (100.0)        %          10.1                   3.0                  236.7        %
Goodwill impairment         —                   —          N/A          369.9                   —          N/A
Loss on extinguishment of debt         —                   —          N/A          —                   4.4                  (100.0)        %
Interest         85.9                   67.6                  27.1        %          325.8                   229.8                  41.8        %
Interest on mandatorily redeemable preferred OP units / equity         0.6                   1.1                  (45.5)        %          3.3                   4.2                  (21.4)        %
Total Expenses         740.9                   667.5                  11.0        %          3,334.4                   2,661.3                  25.3        %
Income / (Loss) Before Other Items         (14.2)          6.8          N/M          (109.8)          308.4          N/M
Gain / (loss) on remeasurement of marketable securities         (8.0)          20.6          N/M          (16.0)          (53.4)         (70.0)        %
Gain / (loss) on foreign currency exchanges         6.2                   (16.3) N/M          (0.3)          5.4          N/M
Gain / (loss) on disposition of properties         13.9                   (0.3) N/M          11.0                   12.2                  (9.8)        %
Other expense, net(b)         (2.0)          (4.7)         (57.4)        %          (7.5)          (2.1)         257.1        %
Loss on remeasurement of notes receivable         (103.6)          (0.9) N/M          (106.7)          (0.8) N/M
Income / (loss) from nonconsolidated affiliates         15.5                   (0.9) N/M          16.0                   2.9          N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates         0.3                   (2.8) N/M          (4.2)          (2.7)         55.6        %
Current tax benefit / (expense)         (0.6)          2.2          N/M          (14.5)          (10.3)         40.8        %
Deferred tax benefit         8.3                   0.3          N/M          22.9                   4.2          N/M
Net Income / (Loss)         (84.2)          4.0          N/M          (209.1)          263.8          N/M
Less: Preferred return to preferred OP units / equity interests         3.3                   2.4                  37.5        %          12.3                   11.0                  11.8        %
Less: Income / (loss) attributable to noncontrolling interests         (6.6)          (3.1)         112.9        %          (8.1)          10.8                  (175.0)        %
Net Income / (Loss) Attributable to SUI Common Stockholders$        (80.9) $        4.7          N/M $        (213.3) $        242.0                  (188.1)        %
            
Weighted average common shares outstanding - basic(b)         123.5                   123.1                  0.3        %          123.4                   120.2                  2.7        %
Weighted average common shares outstanding - diluted(b)         126.4                   125.8                  0.5        %          123.8                   122.9                  0.7        %
            
Basic earnings / (loss) per share$        (0.65) $        0.04          N/M $        (1.71) $        2.00          N/M
Diluted earnings / (loss) per share(c)$        (0.65) $        0.04          N/M $        (1.72) $        2.00          N/M

(a) Refer to "Utility Revenues" within Definitions and Notes for additional information.

(b) Refer to Definitions and Notes for additional information.

(c) Excludes the effect of certain anti-dilutive convertible securities.

N/M = Not meaningful.

N/A = Not applicable.

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Core FFO
(amounts in millions, except for per share data)

 


 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net Income / (Loss) Attributable to SUI Common Shareholders$        (80.9) $        4.7          $        (213.3) $        242.0         
Adjustments       
Depreciation and amortization         176.7                   153.3                   657.2                   599.6         
Depreciation on nonconsolidated affiliates         —                   —                   0.2                   0.1         
Asset impairments         —                   0.7                   10.1                   3.0         
Goodwill impairment         —                   —                   369.9                   —         
(Gain) / loss on remeasurement of marketable securities         8.0                   (20.6)          16.0                   53.4         
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         (0.3)          2.8                   4.2                   2.7         
Loss on remeasurement of notes receivable         103.6                   0.9                   106.7                   0.8         
Loss on remeasurement of collateralized receivables and secured borrowings, net         0.4                   —                   0.4                   —         
(Gain) / loss on dispositions of properties, including tax effect         (13.9)          0.3                   (8.9)          (12.2)
Add: Returns on preferred OP units         3.2                   0.5                   11.8                   9.5         
Add: Income / (loss) attributable to noncontrolling interests         (6.5)          (2.5)          (8.1)          10.4         
Gain on dispositions of assets, net         (9.0)          (10.7)          (38.0)          (54.9)
FFO(a)$        181.3          $        129.4                   908.2          $        854.4         
        
Adjustments       
Business combination expense         —                   0.8                   3.0                   24.7         
Acquisition and other transaction costs(a)         12.7                   6.5                   25.3                   22.7         
Loss on extinguishment of debt         —                   —                   —                   4.4         
Catastrophic event-related charges, net         6.0                   5.2                   3.8                   17.5         
Loss of earnings - catastrophic event-related charges, net(b)         (2.8)          4.6                   2.1                   4.8         
(Gain) / loss on foreign currency exchanges         (6.2)          16.3                   0.3                   (5.4)
Other adjustments, net(a)         (17.8)          5.5                   (27.4)          0.4         
Core FFO(a)(c)$        173.2          $        168.3          $        915.3          $        923.5         
        
Weighted Average Common Shares Outstanding - Diluted         129.0                   126.5                   128.9                   125.6         
        
FFO per Share(c)$        1.41          $        1.02          $        7.05          $        6.80         
        
Core FFO per Share(c)$        1.34          $        1.33          $        7.10          $        7.35         

(a) Refer to Definitions and Notes for additional information.

(b) Loss of earnings - catastrophic event-related charges, net include the following:

 Quarter Ended Year Ended
 December 31, 2023 December 31, 2023
Hurricane Ian - Three Fort Myers, Florida RV communities impaired   
Estimated loss of earnings in excess of the applicable business interruption deductible$        5.1          $        21.9         
Insurance recoveries realized for previously estimated loss of earnings through August 31, 2023         (7.9)          (19.7)
Hurricane Irma - Three Florida Keys communities impaired   
Estimated loss of earnings in excess of the applicable business interruption deductible         —                   0.5         
Reversal of unpaid previously estimated loss of earnings that the Company does not expect to recover         —                   (0.6)
Loss of earnings - catastrophic event-related charges, net$        (2.8) $        2.1         

(c) Excludes the effect of certain anti-dilutive convertible securities.

Refer to Definitions and Notes for additional information for Home sales contribution to FFO.

    

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to NOI
(amounts in millions)

 


 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net Income / (Loss) Attributable to SUI Common Shareholders$        (80.9) $        4.7          $        (213.3) $        242.0         
Interest income         (4.8)          (9.9)          (45.4)          (35.2)
Brokerage commissions and other revenues, net         (15.3)          (7.5)          (60.6)          (34.9)
General and administrative         77.8                   69.8                   270.2                   256.8         
Catastrophic event-related charges, net         6.0                   5.2                   3.8                   17.5         
Business combination expense         —                   0.8                   3.0                   24.7         
Depreciation and amortization         177.7                   154.1                   660.0                   601.8         
Asset impairments         —                   0.7                   10.1                   3.0         
Goodwill impairment         —                   —                   369.9                   —         
Loss on extinguishment of debt         —                   —                   —                   4.4         
Interest expense         85.9                   67.6                   325.8                   229.8         
Interest on mandatorily redeemable preferred OP units / equity         0.6                   1.1                   3.3                   4.2         
(Gain) / loss on remeasurement of marketable securities         8.0                   (20.6)          16.0                   53.4         
(Gain) / loss on foreign currency exchanges         (6.2)          16.3                   0.3                   (5.4)
(Gain) / loss on disposition of properties         (13.9)          0.3                   (11.0)          (12.2)
Other expense, net(a)         2.0                   4.7                   7.5                   2.1         
Loss on remeasurement of notes receivable         103.6                   0.9                   106.7                   0.8         
(Income) / loss from nonconsolidated affiliates         (15.5)          0.9                   (16.0)          (2.9)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         (0.3)          2.8                   4.2                   2.7         
Current tax (benefit) / expense         0.6                   (2.2)          14.5                   10.3         
Deferred tax benefit         (8.3)          (0.3)          (22.9)          (4.2)
Add: Preferred return to preferred OP units / equity interests         3.3                   2.4                   12.3                   11.0         
Add: Income / (loss) attributable to noncontrolling interests         (6.6)          (3.1)          (8.1)          10.8         
NOI$        313.7          $        288.7          $        1,430.3          $        1,380.5         


 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Real Property NOI(a)$        285.6         $        257.8          $        1,251.9         $        1,167.0        
Home Sales NOI(a)         22.7                  31.7                   124.5                  154.6        
Service, retail, dining and entertainment NOI(a)         5.4                  (0.8)          53.9                  58.9        
NOI$        313.7         $        288.7          $        1,430.3         $        1,380.5        

(a) Refer to Definitions and Notes for additional information.

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Recurring EBITDA
(amounts in millions)

 


 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net Income / (Loss) Attributable to SUI Common Stockholders$        (80.9) $        4.7          $        (213.3) $        242.0         
Adjustments       
Depreciation and amortization         177.7                   154.1                   660.0                   601.8         
Asset impairments         —                   0.7                   10.1                   3.0         
Goodwill impairment         —                   —                   369.9                   —         
Loss on extinguishment of debt         —                   —                   —                   4.4         
Interest expense         85.9                   67.6                   325.8                   229.8         
Interest on mandatorily redeemable preferred OP units / equity         0.6                   1.1                   3.3                   4.2         
Current tax (benefit) / expense         0.6                   (2.2)          14.5                   10.3         
Deferred tax benefit         (8.3)          (0.3)          (22.9)          (4.2)
(Income) / loss from nonconsolidated affiliates         (15.5)          0.9                   (16.0)          (2.9)
Less: (Gain) / loss on dispositions of properties         (13.9)          0.3                   (11.0)          (12.2)
Less: Gain on dispositions of assets, net         (9.0)          (10.7)          (38.0)          (54.9)
EBITDAre$        137.2          $        216.2          $        1,082.4          $        1,021.3         
Adjustments       
Catastrophic event-related charges, net         6.0                   5.2                   3.8                   17.5         
Business combination expense         —                   0.8                   3.0                   24.7         
(Gain) / loss on remeasurement of marketable securities         8.0                   (20.6)          16.0                   53.4         
(Gain) / loss on foreign currency exchanges         (6.2)          16.3                   0.3                   (5.4)
Other expense, net(a)         2.0                   4.7                   7.5                   2.1         
Loss on remeasurement of notes receivable         103.6                   0.9                   106.7                   0.8         
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         (0.3)          2.8                   4.2                   2.7         
Add: Preferred return to preferred OP units / equity interests         3.3                   2.4                   12.3                   11.0         
Add: Income / (loss) attributable to noncontrolling interests         (6.6)          (3.1)          (8.1)          10.8         
Add: Gain on dispositions of assets, net         9.0                   10.7                   38.0                   54.9         
Recurring EBITDA$        256.0          $        236.3          $        1,266.1          $        1,193.8         

(a) Refer to Definitions and Notes for additional information.

Real Property Operations - Total Portfolio
(amounts in millions, except statistical information)

 


 Quarter Ended December 31, 2023 Quarter Ended December 31, 2022
 MH       MH      
Financial InformationNorth America UK Total RV Marinas Total North America UK Total RV Marinas Total
Revenues                       
Real property (excluding transient)(a)$        229.3  $        29.0  $        258.3  $        70.0  $        100.4 $        428.7  $        213.2  $        25.4  $        238.6          $        60.7          $        91.5 $        390.8 
Real property - transient         0.4           4.2           4.6           35.5           4.6          44.7           0.4           3.8           4.2                   41.4                   4.2          49.8 
Total operating revenues         229.7           33.2           262.9           105.5           105.0          473.4           213.6           29.2           242.8                   102.1                   95.7          440.6 
Expenses                       
Property operating expenses         74.3           19.3           93.6           54.5           39.7          187.8           70.5           18.8           89.3                   56.1                   37.4          182.8 
Real Property NOI$        155.4  $        13.9  $        169.3  $        51.0  $        65.3 $        285.6  $        143.1  $        10.4  $        153.5          $        46.0          $        58.3 $        257.8 
                        
 Year Ended December 31, 2023 Year Ended December 31, 2022
 MH       MH      
Financial InformationNorth America UK Total RV Marinas Total North America UK(b) Total RV Marinas Total
Revenues                       
Real property (excluding transient)(a)$        906.1  $        114.2  $        1,020.3  $        287.1  $        406.8 $        1,714.2  $        844.0  $        70.1  $        914.1          $        268.9          $        365.9 $        1,548.9 
Real property - transient         1.9           42.1           44.0           276.8           24.8          345.6           1.6           38.5           40.1                   294.4                   18.8          353.3 
Total operating revenues         908.0           156.3           1,064.3           563.9           431.6          2,059.8           845.6           108.6           954.2                   563.3                   384.7          1,902.2 
Expenses                       
Property operating expenses         297.5           89.6           387.1           262.1           158.7          807.9           274.6           57.6           332.2                   261.4                   141.6          735.2 
Real Property NOI$        610.5  $        66.7  $        677.2  $        301.8  $        272.9 $        1,251.9  $        571.0  $        51.0  $        622.0          $        301.9          $        243.1 $        1,167.0 
                        
 As of December 31, 2023 As of December 31, 2022
 MH       MH      
Other informationNorth America UK Total RV Marinas Total North America UK(b) Total RV Marinas Total
Number of properties         298           55           353           179           135          667           298           55           353           182           134          669 
Sites, wet slips and dry storage spaces                       
Sites, wet slips and dry storage spaces(c)         100,320           18,110           118,430           32,390           48,030          198,850           99,980           18,040           118,020           30,330           47,820          196,170 
Transient sitesN/M          3,200           3,200           25,290  N/A          28,490  N/M          3,140           3,140           28,040  N/A          31,180 
Total         100,320           21,310           121,630           57,680           48,030          227,340           99,980           21,180           121,160           58,370           47,820          227,350 
                        
MH and Annual RV Occupancy         96.6        %          89.5        %          95.5        %          100.0        % N/A          96.4        %          95.9        %          89.0        %          95.0        %          100.0        % N/A          96.0        %

N/M = Not meaningful. N/A = Not applicable.

(a) Refer to "Utility Revenues" within Definitions and Notes for additional information.

(b) UK amounts for the year ended December 31, 2022 cover April 8, 2022 (date of acquisition) to December 31, 2022.

(c) MH annual sites included 10,237 and 9,334 rental homes in the Company's Rental Program at December 31, 2023 and 2022, respectively. The Company's investment in occupied rental homes at December 31, 2023 was $697.1 million, an increase of 21.8% from $572.3 million at December 31, 2022.

Real Property Operations - Same Property Portfolio(a)
(amounts in millions, except for statistical information)

 


 Quarter Ended December 31, 2023 Quarter Ended December 31, 2022 Total Change

 % Change(c)
 MH(b) RV(b) Marina Total MH(b) RV(b) Marina Total  MH RV Marina Total
Financial Information                         
Same Property Revenues                         
Real property (excluding transient)$        211.0 $        65.4 $        81.5 $        357.9 $        196.3 $        56.5 $        75.4 $        328.2 $        29.7          7.5        %         15.8        %         8.1        %         9.1        %
Real property - transient         0.5          32.2          4.2          36.9          0.3          39.1          3.8          43.2          (6.3)         66.1        %         (17.7)        %         9.9        %         (14.6)        %
Total Same Property operating revenues         211.5          97.6          85.7          394.8          196.6          95.6          79.2          371.4  23.4          7.6        %         2.1        %         8.2        %         6.3        %
Same Property Expenses                         
Same Property operating expenses(d)(e)         56.8          46.9          28.0          131.7          54.3          49.2          27.9          131.4  0.3          4.8        %         (4.7)        %         0.4        %         0.3        %
Real Property NOI(e)$        154.7 $        50.7 $        57.7 $        263.1 $        142.3 $        46.4 $        51.3 $        240.0 $        23.1          8.6        %         9.3        %         12.5        %         9.6        %
                          


        


 Year Ended December 31, 2023 Year Ended December 31, 2022 Total Change

 % Change(c)
 MH(b) RV(b) Marina Total MH(b) RV(b) Marina Total  MH RV Marina Total
Financial Information                         
Same Property Revenues                         
Real property (excluding transient)$        830.4 $        263.8 $        326.0 $        1,420.2 $        776.2 $        228.1 $        302.4 $        1,306.7 $        113.5          7.0        %         15.6        %         7.8        %         8.7        %
Real property - transient         1.6          256.2          21.7          279.5          1.2          275.4          16.4          293.0          (13.5)         25.9        %         (7.0)        %         32.6        %         (4.6)        %
Total Same Property operating revenues         832.0          520.0          347.7          1,699.7          777.4          503.5          318.8          1,599.7          100.0          7.0        %         3.3        %         9.1        %         6.2        %
Same Property Expenses                         
Same Property operating expenses(d)(e)         223.8          224.7          112.1          560.6          208.2          221.7          107.9          537.8          22.8          7.5        %         1.4        %         3.9        %         4.2        %
Real Property NOI(e)$        608.2 $        295.3 $        235.6 $        1,139.1 $        569.2 $        281.8 $        210.9 $        1,061.9 $        77.2          6.8        %         4.8        %         11.7        %         7.3        %
                          
Other Information                         
Number of properties         288          160          119          567          288          160          119          567          
Sites, wet slips and dry storage spaces         98,620          54,370          40,890          193,880          98,340          54,400          41,000          193,740          

(a) Refer to the Definitions and Notes for additional information.

(b) Same Property results for the Company's MH and RV properties reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at the average exchange rate of $0.7377 USD and $0.7418 USD per Canadian dollar, respectively, during the quarter and year ended December 31, 2023.

(c) Percentages are calculated based on unrounded numbers.

(d) Refer to "Utility Revenues" within Definitions and Notes for additional information.

Real Property Operations - Same Property Portfolio(a) (Continued)
(amounts in millions, except for statistical information)

     

(e) Total Same Property operating expenses consist of the following components for the periods shown (in millions) and exclude amounts invested into recently acquired properties to bring them up to the Company's standards:

 Quarter Ended Year Ended
 December 31, 2023 December 31, 2022 Change % Change December 31, 2023 December 31, 2022 Change % Change
Payroll and benefits$        44.8 $        42.5 $        2.3          5.5        % $        190.6 $        181.6 $        9.0          5.0        %
Real estate taxes         26.0          25.4          0.6          2.3        %          107.2          103.1          4.1          4.0        %
Supplies and repairs         17.2          20.5          (3.3)         (16.1)        %          75.2          78.9          (3.7)         (4.7)        %
Utilities         15.4          16.8          (1.4)         (8.3)        %          64.7          67.0          (2.3)         (3.4)        %
Legal, state / local taxes, and insurance         13.8          10.9          2.9          27.0        %          55.8          39.2          16.6          42.3        %
Other         14.5          15.3          (0.8)         (5.0)        %          67.1          68.0          (0.9)         (1.4)        %
Total Same Property Operating Expenses$        131.7 $        131.4 $        0.3          0.3        % $        560.6 $        537.8 $        22.8          4.2        %


  As of
  December 31, 2023 December 31, 2022
  MH RV MH RV
Other Information        
Number of properties          288                   160                   288                   160         
         
Sites        
MH and Annual RV sites          98,620                   32,090                   98,340                   30,030         
Transient RV sites N/M          22,280          N/M          24,370         
Total          98,620                   54,370                   98,340                   54,400         
         
MH and Annual RV Occupancy        
Occupancy(b)          97.3        %          100.0        %          96.6        %          100.0        %
Monthly base rent per site $        670          $        593          $        630          $        546         
% Change of monthly base rent(c)          6.4        %          8.7        % N/A N/A
         
Rental Program Statistics included in MH:        
Number of occupied sites, end of period(d)          10,010          N/A          9,310          N/A
Monthly rent per site – MH Rental Program $        1,292          N/A $        1,221          N/A
% Change(d)          5.8        % N/A N/A N/A

N/M = Not meaningful.

N/A = Not applicable.

(a) Refer to Definitions and Notes for additional information.

(b) Same Property blended occupancy for MH and RV was 97.9% at December 31, 2023, up 50 basis points from 97.4% at December 31, 2022. Adjusting for expansion sites delivered and leased, Same Property adjusted blended occupancy for MH and RV increased by 230 basis points year over year, to 98.9% at December 31, 2023, from 96.6% at December 31, 2022.

(c) Calculated using actual results without rounding.

(d) Occupied rental program sites in Same Property are included in total sites.

Home Sales Summary
($ in millions, except for average selling price)

 


 Quarter Ended Year Ended
Financial InformationDecember 31, 2023 December 31, 2022 % Change December 31, 2023 December 31, 2022 % Change
North America           
Home sales$        61.9          $        62.0                  (0.2)        % $        233.8          $        275.4                  (15.1)        %
Home cost and selling expenses         48.5                   47.4                  2.3        %          178.7                   203.3                  (12.1)        %
NOI$        13.4          $        14.6                  (8.2)        % $        55.1          $        72.1                  (23.6)        %
NOI margin %         21.6        %          23.5        %            23.6        %          26.2        %  
            
UK(a)           
Home sales$        31.3          $        45.7                  (31.5)        % $        186.1          $        190.4          (2.3)        %
Home cost and selling expenses         22.0                   28.6                  (23.1)        %          116.7                   107.9          8.2        %
NOI$        9.3          $        17.1                  (45.6)        % $        69.4          $        82.5          (15.9)        %
NOI margin %         29.7        %          37.4        %            37.3        %          43.3        %  
            
Total(a)           
Home sales$        93.2          $        107.7                  (13.5)        % $        419.9          $        465.8                  (9.9)        %
Home cost and selling expenses         70.5                   76.0                  (7.2)        %          295.4                   311.2                  (5.1)        %
NOI$        22.7          $        31.7                  (28.4)        % $        124.5          $        154.6                  (19.5)        %
NOI margin %         24.4        %          29.4        %            29.6        %          33.2        %  
            
Other information           
Units Sold:           
North America         656                   674                  (2.7)        %          2,565                   3,212          (20.1)        %
UK(a)         547                   565                  (3.2)        %          2,857                   2,343          21.9        %
Total home sales(a)         1,203                   1,239                  (2.9)        %          5,422                   5,555          (2.4)        %
            
Average Selling Price:           
North America$        94,360          $        91,988                  2.6        % $        91,150          $        85,741          6.3        %
UK(a)$        57,221          $        80,885                  (29.3)        % $        65,138          $        81,263          (19.8)        %

(a) UK amounts for the year ended December 31, 2022 cover the period from April 8, 2022 (date of acquisition) through December 31, 2022.

Operating Statistics for MH and Annual RVs (excluding UK Operations)

 


  Resident Move-outs        
  % of Total Sites Number of Move-outs  Leased Sites, Net(a) New Home Sales Pre-owned Home Sales Brokered
Re-sales
2023         3.6        %         6,590                 3,268                 564                 2,001                 2,296        
2022         3.0        %         5,170                 2,922                 703                 2,509                 2,864        
2021         2.7        %         5,276                 2,483                 732                 3,356                 3,528        

(a) Net increase in revenue producing sites.

Acquisitions and Dispositions
(amounts in millions, except for *)

 


Property Name Property Type Number of Properties* Sites, Wet Slips and Dry Storage Spaces* Expansion or Development Sites* State, Province or Country Total Purchase / Sale Price Month
ACQUISITIONS              
Fox Run(a) MH         1                 68                 72         MI $        7.0         January
Savannah Yacht Center(b) Marina         1                 24                 —         GA          100.0         March
First Quarter 2023           2                 92                 72           $        107.0          
               
Acquisitions in 2023           2                 92                 72           $        107.0          
               
DISPOSITIONS              
Cedar Haven MH         1                 155                 —         ME $        6.8         August
Third Quarter 2023           1                 155                            $        6.8          
               
Sun NG properties(c) RV         3                 955                 —         Various $        166.1         December
Fourth Quarter 2023           3                 955                            $        166.1          
               
Dispositions in 2023           4                 1,110                            $        172.9          

(a) In conjunction with the acquisition of this ground-up development project, the Company issued 31,289 Common OP units valued at $4.4 million. The Company also delivered 68 of the 140 sites during the first quarter.

(b) In conjunction with this acquisition, the Company issued one million Series K preferred OP units to cover the total purchase price of $100.0 million.

(c) Sale price represents the total value of the three joint venture properties that were disposed of as part of the transaction with the Company's joint venture partner in Sun NG.

Capital Expenditures and Investments
(amounts in millions, except for *)

 


 Year Ended
 December 31, 2023 December 31, 2022 December 31, 2021
 MH / RV Marina MH / RV Marina MH / RV Marina
Recurring Capital Expenditures(a)$        51.8         $        35.5         $        51.0         $        22.8         $        45.3         $        19.3        
            
Non-Recurring Capital Expenditures(a)           
Lot Modifications$        54.9         N/A $        39.1         N/A $        28.8         N/A
Growth Projects         21.6                  82.9                  28.4                  71.1                  25.6                  51.4        
Rebranding         4.7         N/A          15.0         N/A  6.1 N/A
Acquisitions         182.4                  186.3                  2,788.1                  522.5                  944.3                  852.9        
Expansion and Development         250.3                  26.0                  247.9                  13.9                  191.8                  9.9        
Total Non-Recurring Capital Expenditures         513.9                  295.2                  3,118.5                  607.5                  1,196.6                  914.2        
Total$        565.7         $        330.7         $        3,169.5         $        630.3         $        1,241.9         $        933.5        
Other Information           
Recurring Capex per Site, Slip and Dry Storage Spaces(b)*$        388         $        867         $        397         $        582         $        371         $        491        

N/A = Not applicable.

(a) Refer to Definitions and Notes for additional information.

(b) Average based on actual number of MH and RV sites and Marina wet slips and dry storage spaces associated with the recurring capital expenditures in each period.

Capitalization Overview
(Shares and units in thousands, dollar amounts in millions, except for *)

 


  As of
  December 31, 2023
Equity and enterprise value Common Equivalent Shares Share Price* Capitalization
Common shares         124,436         $        133.65         $        16,630.9         
Convertible securities      
Common OP units         2,735         $        133.65                  365.5         
Preferred OP units         2,646         $        133.65                  353.6         
Diluted shares outstanding and market capitalization(a)         129,817                    17,350.0         
Plus: Debt, per the balance sheet              7,777.3         
Total capitalization              25,127.3         
Less: Cash and cash equivalents (excluding restricted cash)              (29.2)
Enterprise value(b)     $        25,098.1         
       
       
Debt   Weighted Average Maturity
(in years)*
 Debt Outstanding
Mortgage loans payable    9.2 $        3,478.9         
Secured borrowings on collateralized receivables(b)    14.2          55.8         
Unsecured debt    4.7          4,242.6         
Total carrying value of debt per consolidated balance sheet    6.8          7,777.3         
Plus: Unamortized deferred financing costs and discounts / premiums on debt              39.1         
Total debt(c)     $        7,816.4         
       
       
Corporate debt rating and outlook      
Moody's     Baa3 | Stable
S&P     BBB | Stable

(a) Refer to "Securities" within Definitions and Notes for additional information related to our securities outstanding.

(b) Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information.

(c) Refer to "Enterprise Value" and "Net Debt" within Definitions and Notes for additional information.

Summary of Outstanding Debt

(amounts in millions, except for *)

 


  Quarter Ended
  December 31, 2023
  Debt Outstanding Weighted Average Interest Rate(a)* Maturity Date*
Secured Debt:      
Mortgage loans payable $        3,478.9                 3.99        % Various
Secured borrowings on collateralized receivables(b)          55.8                 8.56        % Various
Total Secured Debt          3,534.7                 4.07        %  
       
Unsecured Debt:      
Senior Credit Facility:      
Revolving credit facilities (in USD)(c)          944.1                 6.07        % April 2026
GBP term loan (in USD)(d)          1,113.2                 4.88        % April 2025
Total senior credit facility          2,057.3            
Other unsecured term loan          7.8                 6.41        % October 2025
Senior credit facility and other term loan          2,065.1                 5.43        %  
       
Senior Unsecured Notes:      
2028 senior unsecured notes          446.8                 2.30        % November 2028
2031 senior unsecured notes          742.4                 2.70        % July 2031
2032 senior unsecured notes          592.6                 3.62        % April 2032
2033 senior unsecured notes          395.7                 5.51        % January 2033
Total Senior Unsecured Notes          2,177.5                 3.38        %  
       
Total Unsecured Debt          4,242.6                 4.37        %  
Total debt, per consolidated balance sheets          7,777.3                 4.23        %  
Plus: Unamortized deferred financing costs, discounts / premiums on debt, and fair value adjustments(a)          39.1            
Total debt $        7,816.4            

(a)  Includes the effect of amortizing deferred financing costs, loan premiums / discounts, and derivatives, as well as fair value adjustments on the Secured borrowings on collateralized receivables.

(b)   Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information.

(c)  As of December 31, 2023, the Company's revolving credit facilities consisted of:

  • $418.0 million borrowed on its U.S. line of credit at the Secured Overnight Financing Rate ("SOFR") plus 85 basis points, of which $150.0 million was swapped to a weighted average fixed SOFR rate of 4.757% for an all-in fixed rate of 5.707%.
  • $526.1 million USD equivalent borrowed on its GBP line of credit at the Daily Sterling Overnight Index Average ("SONIA") plus 85 basis points.

(d)  As of December 31, 2023, £500.0 million ($636.6 million) was swapped to a weighted average fixed SONIA rate of 2.924% for an all-in fixed rate, inclusive of spread, of 3.906%.

Debt Maturities(e)

Year Mortgage Loans Payable(f) Secured Borrowings on Collateralized Receivables(g)(b) Principal Amortization Senior
Credit Facility
 Senior
Unsecured Notes
 Other Unsecured Debt Total
2024 $        128.8         $        2.3         $        56.5         $        —         $        —         $        7.8         $        195.4        
2025          50.6                  2.5                  54.2                  1,114.8                  —                  —                  1,222.1        
2026          658.4                  2.7                  46.3                  944.1                  —                  —                  1,651.5        
2027          4.0                  3.0                  40.6                  —                  —                  —                  47.6        
2028          303.8                  3.2                  43.4                  —                  450.0                  —                  800.4        
Thereafter          1,525.2                  40.2                  584.0                  —                  1,750.0                  —                  3,899.4        
Total $        2,670.8         $        53.9         $        825.0         $        2,058.9         $        2,200.0         $        7.8         $        7,816.4        

(e) Debt maturities include the unamortized deferred financing costs, discount / premiums, and fair value adjustments associated with outstanding debt.

(f) For the Mortgage loan payables maturing between 2024 - 2028:

 2024  2025  2026  2027  2028 
Weighted average interest rate        4.03        %         4.04        %         3.97        %         4.34        %         4.04        %

(g) Balance at December 31, 2023 excludes fair value adjustments of $1.9 million.
555

Debt Analysis

 


    As of
    December 31, 2023
Select Credit Ratios    
Net debt / TTM recurring EBITDA(a)   6.1 x
Net debt / enterprise value           30.9        %
Net debt / gross assets           38.3        %
Unencumbered assets / total assets           76.5        %
Floating rate debt / total debt(b)           16.4        %
     
Coverage Ratios    
TTM Recurring EBITDA(a) / interest   3.9 x
TTM Recurring EBITDA(a) / interest + preferred distributions + preferred stock distribution   3.8 x
     
Senior Credit Facility Covenants Requirement  
Maximum leverage ratio <65.0 %         35.9        %
Minimum fixed charge coverage ratio >1.40 x 3.02 x
Maximum secured leverage ratio <40.0 %         13.8        %
     
Senior Unsecured Note Covenants Requirement  
Total debt / total assets ≤60.0 %         41.7        %
Secured debt / total assets ≤40.0 %         18.9        %
Consolidated income available for debt service / debt service ≥1.50 x 3.97 x
Unencumbered total asset value / total unsecured debt ≥150.0 %         335.2        %

(a) Refer to page 8 for additional detail on the Company's TTM Recurring EBITDA.

(b) Percentage includes the impact of hedge activities.

^ Excludes the Company's borrowings under its senior credit facility.

Definitions and Notes

 

2024 Guidance - Presentation Conformity of 2023 Results

Effective January 1, 2024, we have reclassified certain indirect expenses to more precisely align with underlying activity drivers. The corresponding prior period amounts have been reclassified to conform with the 2024 presentation as shown in the table below ($ in millions, except average NOI margin per home sold):

 Quarter Ended Year Ended
 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 31, 2023
 Reported Reclassified Reported Reclassified Reported Reclassified Reported Reclassified Reported Reclassified
Consolidated portfolio property operating expenses$        (186.7) $        (187.3) $        (208.6) $        (209.5) $        (224.8) $        (225.4) $        (187.8) $        (188.2) $        (807.9) $        (810.4)
Service, retail, dining and entertainment NOI$        2.6          $        2.6          $        19.2          $        26.0          $        26.7          $        32.0          $        5.4          $        7.9          $        53.9          $        68.5         
General and administrative expenses$        (63.9) $        (64.2) $        (62.3) $        (62.8) $        (66.2) $        (66.9) $        (77.8) $        (78.2) $        (270.2) $        (272.1)
North America Home sales FFO contribution$        2.6          $      �� 3.5          $        6.1          $        5.5          $        4.8          $        3.2          $        4.7          $        4.8          $        18.2          $        17.0         
UK Home Sales FFO contribution$        12.6          $        12.4          $        24.7          $        20.0          $        22.0          $        19.5          $        9.0          $        7.3          $        68.3          $        59.2         
Average UK NOI margin per home sold$        21,159          $        21,173          $        29,560          $        23,763          $        25,830          $        23,088          $        17,200          $        13,900          $        24,307          $        21,132         

Capital Expenditures and Investment Activity - The Company classifies its investments in properties into the following categories:

  • Recurring Capital Expenditures - Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing items used to operate the communities and marinas. Recurring capital expenditures at the Company's MH and RV properties include major road, driveway and pool improvements; clubhouse renovations; adding or replacing streetlights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at the Company's marinas include dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.

  • Non-Recurring Capital Expenditures - The following investment and reinvestment activities are non-recurring in nature:

    • Lot Modifications - Lot modification capital expenditures are incurred to modify the foundational structures required to set a new home after a previous home has been removed. These expenditures are necessary to create a revenue stream from a new site renter and often improve the quality of the community. Other lot modification expenditures include land improvements added to annual RV sites to aid in the conversion of transient RV guests to annual contracts. See page 12 for move-out rates.

    • Growth Projects - Growth projects consist of revenue-generating or expense-reducing activities at the properties. These include, but are not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades, such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.

    • Rebranding - Rebranding includes new signage at the Company's RV communities and costs of building an RV mobile application and updated website.

    • Acquisitions - Total acquisition investments represent the purchase price paid for operating properties (detailed for the current calendar year on page 13), the purchase price paid for land parcels for future ground-up development and expansions activities, and any capital improvements identified during due diligence needed to bring acquired properties up to the Company's operating standards.

Capital improvements subsequent to acquisition often require 24 to 36 months to complete after closing and include upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovations including larger decks, heaters and furniture; new maintenance facilities; lot modifications; and new signage including main signs and internal road signs.
For the year ended December 31, 2023, the components of total acquisition investment are as follows (in millions):

  Year Ended December 31, 2023
  MH and RV Marina Total
Purchase price of property acquisitions $        7.2         $        100.6         $        107.8        
Capitalized transaction costs for property acquisitions          5.7                  1.7                  7.4        
Purchase price of land acquisitions (including capitalized transaction costs)(a)          38.2                  —                  38.2