Net Income per Diluted Share of $0.42 for the Quarter
Core FFO per Share of $1.86 for the Quarter
North America Same Property NOI increased by 3.6% for the Quarter and
5.6% for the First Six Months of 2024 versus corresponding 2023 Periods
North America Same Property Adjusted Blended Occupancy for MH and RV of 98.7% represents
a 150 basis point year-over-year increase
Reiterating Full-Year Core FFO per Share Guidance for 2024 of $7.06 - $7.22
Full-Year North America Same Property NOI Growth Guidance Range of 4.7% - 5.7%, Maintaining 5.2% Midpoint
and Revising Full-Year UK Same Property NOI Growth Guidance Range to 8.6% - 10.4%
Southfield, MI, July 31, 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 second quarter results for 2024.
Financial Results for the Quarter and Six Months Ended June 30, 2024
- For the quarter ended June 30, 2024, net income attributable to common shareholders was $52.1 million, or $0.42 per diluted share, compared to a net loss attributable to common shareholders of $207.6 million, or $1.68 per diluted share for the same period in 2023.
- For the six months ended June 30, 2024, net income attributable to common shareholders was $24.7 million, or $0.20 per diluted share, compared to a net loss attributable to common shareholders of $252.5 million, or $2.04 per diluted share for the same period in 2023.
Non-GAAP Financial Measures
- Core Funds from Operations ("Core FFO") for the quarter and six months ended June 30, 2024, was $1.86 per common share and dilutive convertible securities ("Share") and $3.05 per Share, respectively, as compared to $1.96 and $3.19 for the same periods in 2023.
- Same Property Net Operating Income ("NOI")
- North American Same Property NOI increased by $10.4 million and $29.8 million, or 3.6% and 5.6%, respectively, for the quarter and six months ended June 30, 2024, as compared to the corresponding periods in 2023.
- UK Same Property NOI increased by $1.7 million and $5.0 million, or 9.3% and 19.4%, respectively, for the quarter and six months ended June 30, 2024, as compared to the corresponding periods in 2023.
"We are pleased to have delivered solid second quarter results, while advancing our strategy focused on delivering reliable earnings growth. In our Manufactured Housing and Marina segments we saw strong NOI growth supported by sustained demand," said Gary A. Shiffman, Chairman, President and CEO. "We are also seeing growth in annual RV revenues, and while transient RV is still experiencing some headwinds, we are actively managing our controllable expenses. Our UK strategy remains focused on shifting a larger proportion of our income from home sale margins to the resilient, reliable NOI generated by real property rents. Finally, we are executing on our capital recycling objectives. Year to date, we have sold over $300 million of properties and used the proceeds to pay down debt."
OPERATING HIGHLIGHTS
North America Portfolio Occupancy
- MH and annual RV sites were 97.5% occupied at June 30, 2024, as compared to 97.1% at June 30, 2023.
- During the quarter ended June 30, 2024, the number of MH and annual RV revenue producing sites increased by approximately 1,230 sites, as compared to an increase of approximately 1,040 sites during the corresponding period in 2023, an 18.7% increase.
- Transient-to-annual RV site conversions totaled approximately 920 sites during the second quarter of 2024, a 22.7% increase over the second quarter of 2023.
Same Property Results
For the properties owned and operated by the Company since at least January 1, 2023, the following table reflects the percentage changes for the quarter and six months ended June 30, 2024:
| Quarter Ended June 30, 2024 | ||||||||||||||
| North America | ||||||||||||||
| MH | RV | Marina | Total | UK | ||||||||||
| Revenue | 7.2 | % | (0.7) % | 5.5 | % | 4.4 | % | 4.9 | % | |||||
| Expense | 9.2 | % | 4.0 | % | 4.2 | % | 6.0 | % | 0.5 | % | ||||
| NOI | 6.4 | % | (4.6) % | 6.1 | % | 3.6 | % | 9.3 | % | |||||
| Six Months Ended June 30, 2024 | ||||||||||||||
| North America | ||||||||||||||
| MH | RV | Marina | Total | UK | ||||||||||
| Revenue | 7.0 | % | 0.9 | % | 6.2 | % | 5.1 | % | 7.9 | % | ||||
| Expense | 6.3 | % | 1.5 | % | 5.3 | % | 4.2 | % | (0.5) % | |||||
| NOI | 7.2 | % | 0.3 | % | 6.7 | % | 5.6 | % | 19.4 | % | ||||
| Number of Properties | 291 | 164 | 127 | 582 | 52 | |||||||||
Same Property adjusted blended occupancy for MH and RV increased by 150 basis points to 98.7% at June 30, 2024, from 97.2% at June 30, 2023.
INVESTMENT ACTIVITY
During and subsequent to the quarter ended June 30, 2024, the Company completed the following dispositions:
- In July, a portfolio of six MH properties across six states for total cash consideration of $224.6 million, with an estimated gain on sale of approximately $140.0 million.
- Net proceeds were used to pay down $62.3 million of mortgage debt and $151.1 million of borrowings under the Company's Senior Credit Facility.
- In July, one MH property for total cash consideration of $38.0 million.
- Net proceeds were used to pay down $16.7 million of mortgage debt and $20.3 million of borrowings under the Company's Senior Credit Facility.
- In May, one Park Holidays property for total cash consideration of $5.4 million.
During the quarter ended June 30, 2024, the Company acquired:
- In April, one marina property and two marina expansion assets for total consideration of $12.0 million including the issuance of common OP units valued at $2.5 million.
- In June, a parcel of land in the UK for total consideration of $9.6 million, that will support the future expansion of an existing Park Holidays property.
BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS
As of June 30, 2024, the Company had $7.9 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.5 years. At June 30, 2024, the Company's Net Debt to trailing twelve-month Recurring EBITDA ratio was 6.2 times. Pro forma solely for the post June 30, 2024 property dispositions and debt repayments outlined in "Investment Activity" above, the Company's Net Debt to trailing twelve-month Recurring EBITDA ratio was 6.0 times.
2024 GUIDANCE
The Company is updating full year, and establishing third quarter 2024 guidance for diluted EPS and Core FFO per Share:
For the year ending December 31, 2024, the Company is re-affirming Core FFO per Share guidance in the range of $7.06 - $7.22 and establishing Core FFO per Share guidance for the third quarter ending September 30, 2024 in the range of $2.46 - $2.56.
| Full Year Ending December 31, 2024 | Third Quarter Ending September 30, 2024 | |||||||||||||||||||||||
| Prior FY Guidance | Revised FY Range | |||||||||||||||||||||||
| Reconciliation of Diluted EPS to Core FFO per Share | Low | High | Low | High | Low | High | ||||||||||||||||||
| Diluted EPS | $ | 1.89 | $ | 2.05 | $ | 2.92 | $ | 3.08 | $ | 2.46 | $ | 2.56 | ||||||||||||
| Depreciation and amortization | 5.45 | 5.45 | 5.53 | 5.53 | 1.33 | 1.33 | ||||||||||||||||||
| Gain on sale of assets | (0.30 | ) | (0.30 | ) | (0.26 | ) | (0.26 | ) | (0.09 | ) | (0.09 | ) | ||||||||||||
| Gain on sale of properties | (0.04 | ) | (0.04 | ) | (1.18 | ) | (1.18 | ) | (1.12 | ) | (1.12 | ) | ||||||||||||
| Distributions on preferred OP units | 0.10 | 0.10 | 0.10 | 0.10 | 0.02 | 0.02 | ||||||||||||||||||
| Noncontrolling interest | 0.09 | 0.09 | 0.08 | 0.08 | 0.06 | 0.06 | ||||||||||||||||||
| Transaction costs and other non-recurring G&A expenses | 0.14 | 0.14 | 0.18 | 0.18 | 0.02 | 0.02 | ||||||||||||||||||
| Deferred tax benefit | (0.18 | ) | (0.18 | ) | (0.23 | ) | (0.23 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||
| Difference in weighted average share count attributed to dilutive convertible securities | (0.09 | ) | (0.09 | ) | (0.14 | ) | (0.14 | ) | (0.11 | ) | (0.11 | ) | ||||||||||||
| Other adjustments(a) | — | — | 0.06 | 0.06 | 0.02 | 0.02 | ||||||||||||||||||
| Core FFO(b)(c) per Share | $ | 7.06 | $ | 7.22 | $ | 7.06 | $ | 7.22 | $ | 2.46 | $ | 2.56 | ||||||||||||
(a) Other adjustments consist primarily of remeasurement (gains) / losses, contingent legal and insurance gains and other items presented in the table that reconciles Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Core FFO on page 6.
(b) The diluted share counts for the quarter ending September 30, 2024 and the year ending December 31, 2024 are estimated to be 129.6 million.
(c) The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the table presented below. The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material.
| Exchange Rates in Effect at: | December 31, 2023 | March 31, 2024 | June 30, 2024 | |||
| U.S. Dollar ("USD") / Pound Sterling ("GBP") | 1.27 | 1.26 | 1.26 | |||
| USD / Canadian Dollar ("CAD") | 0.75 | 0.74 | 0.73 | |||
| USD / Australian Dollar ("AUS") | 0.68 | 0.65 | 0.67 |
The Company's updated 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) and Core FFO. The reclassifications more precisely align certain indirect expenses with underlying activity drivers.
Key adjustments versus prior guidance are:
- Total Real Property NOI growth is 5.8% - 6.4%, 80 basis points lower at the midpoint of guidance for 2024, primarily reflecting the property dispositions and the resultant loss of income from those properties.
- Interest expense guidance is $6.5 million lower at the midpoint primarily due to debt paydown with proceeds generated from the property dispositions.
- Same Property Portfolio
- In North America, the Company is reiterating the prior midpoint of 5.2% for Same Property NOI growth for the full year.
- MH – increasing Same Property NOI growth to a range of 6.8% – 7.4%, an increase of 50 basis points at the midpoint, reflecting continued strong operational trends.
- RV – reducing Same Property NOI growth to a range of (0.7%) – 0.9%, a decrease of 40 basis points at the midpoint, incorporating strength in annual RV and continued transient RV headwinds.
- Marinas – reducing Same Property NOI to a range of 6.2% – 7.2%, a decrease of 30 basis points at the midpoint, reflecting current large-vessel movement dynamics.
- MH – increasing Same Property NOI growth to a range of 6.8% – 7.4%, an increase of 50 basis points at the midpoint, reflecting continued strong operational trends.
- In the UK, the Company is increasing Same Property NOI growth to a range of 8.6% – 10.4% for the full year, an increase of 250 basis points at the midpoint, reflecting continued strong annual rental income performance and expense management.
- Full year 2023 and first half 2024 actual results have been adjusted for property dispositions in the 2024 Same Property Portfolio guidance for comparative performance purposes.
- In North America, the Company is reiterating the prior midpoint of 5.2% for Same Property NOI growth for the full year.
- FFO contribution from UK home sales – lowering full year UK home sales FFO contribution by $850,000 or approximately 1.5% at the midpoint to reflect updated expectations.
- General and administrative expenses, excluding non-recurring expenses – decreasing the midpoint by approximately $5.0 million, or 210 basis points, reflecting corporate cost rationalization.
Supplemental Guidance Tables:
| Same Property Portfolio (in millions and %)(a) | FY 2023 Actual Results | Expected Change in 2024 | |||||||||||||
| Prior FY Range | July 31, 2024 Update | ||||||||||||||
| North America | |||||||||||||||
| Revenues from real property | $ | 1,710.8 | 5.4 | % | - | 5.8 | % | 4.8 | % | - | 5.2 | % | |||
| Total property operating expenses | $ | 575.0 | 6.0 | % | - | 7.0 | % | 4.0 | % | - | 4.8 | % | |||
| Total North America Same Property NOI(b)(c) | $ | 1,135.8 | 4.6 | % | - | 5.8 | % | 4.7 | % | - | 5.7 | % | |||
| MH NOI (284 properties) | $ | 595.5 | 6.2 | % | - | 7.1 | % | 6.8 | % | - | 7.4 | % | |||
| RV NOI (164 properties) | $ | 287.5 | (0.3 | %) | - | 1.3 | % | (0.7 | %) | - | 0.9 | % | |||
| Marina NOI (127 properties) | $ | 252.7 | 6.4 | % | - | 7.6 | % | 6.2 | % | - | 7.2 | % | |||
| UK (52 properties) | |||||||||||||||
| Revenues from real property | $ | 137.6 | 6.4 | % | - | 7.0 | % | 6.7 | % | - | 7.2 | % | |||
| Total property operating expenses | $ | 68.3 | 6.0 | % | - | 6.9 | % | 3.9 | % | - | 4.7 | % | |||
| Total UK Same Property NOI(b) | $ | 69.3 | 6.0 | % | - | 8.0 | % | 8.6 | % | - | 10.4 | % | |||
For the third quarter ending September 30, 2024, the Company's guidance range assumes North America Same Property NOI growth of 3.1% - 4.9% and UK Same Property NOI growth of 2.1% - 4.1%.
| Consolidated Portfolio Guidance For 2024 (in millions and %) | FY 2023 Actual Results | Expected Change / Range in 2024 | |||||||||||||||||
| Prior FY Range | July 31, 2024 Update | ||||||||||||||||||
| Revenues from real property | $ | 2,059.8 | 6.3 | % | - | 6.6 | % | 5.3 | % | - | 5.5 | % | |||||||
| Total property operating expenses | $ | 810.4 | 5.7 | % | - | 6.0 | % | 4.1 | % | - | 4.4 | % | |||||||
| Total Real Property NOI | $ | 1,249.4 | 6.5 | % | - | 7.3 | % | 5.8 | % | - | 6.4 | % | |||||||
| Service, retail, dining and entertainment NOI | $ | 68.5 | $ | 63.0 | - | $ | 67.0 | $ | 63.0 | - | $ | 67.0 | |||||||
| Interest income | $ | 45.4 | $ | 17.8 | - | $ | 18.8 | $ | 17.8 | - | $ | 18.8 | |||||||
| Brokerage commissions and other, net(d)(e) | $ | 60.6 | $ | 37.6 | - | $ | 39.6 | $ | 37.6 | - | $ | 39.6 | |||||||
| FFO contribution from North American home sales | $ | 17.0 | $ | 13.0 | - | $ | 13.9 | $ | 13.0 | - | $ | 13.9 | |||||||
| FFO contribution from UK home sales(f) | $ | 59.2 | $ | 55.4 | - | $ | 62.4 | $ | 55.1 | - | $ | 61.0 | |||||||
| Income from nonconsolidated affiliates | $ | 16.0 | $ | 11.1 | - | $ | 11.9 | $ | 11.1 | - | $ | 11.9 | |||||||
| General and administrative expenses | $ | 272.1 | $ | 269.7 | - | $ | 274.7 | $ | 268.7 | - | $ | 272.0 | |||||||
| General and administrative expenses excluding non-recurring expenses | $ | 242.5 | $ | 251.3 | - | $ | 256.3 | $ | 247.0 | - | $ | 250.3 | |||||||
| Interest expense | $ | 325.8 | $ | 355.6 | - | $ | 361.1 | $ | 350.1 | - | $ | 353.6 | |||||||
| Current tax expense | $ | 14.5 | $ | 13.2 | - | $ | 14.8 | $ | 12.7 | - | $ | 13.7 | |||||||
| Expected Range in FY 2024 |
| Seasonality | 1Q24 | 2Q24 | 3Q24 | 4Q24 | ||||||||
| North America Same Property NOI: | ||||||||||||
| MH | 25 | % | 25 | % | 25 | % | 25 | % | ||||
| RV | 17 | % | 24 | % | 40 | % | 19 | % | ||||
| Marina | 19 | % | 26 | % | 30 | % | 25 | % | ||||
| Total | 22 | % | 25 | % | 30 | % | 23 | % | ||||
| UK Same Property NOI | 14 | % | 26 | % | 39 | % | 21 | % | ||||
| Home Sales FFO | ||||||||||||
| North America | 11 | % | 41 | % | 27 | % | 21 | % | ||||
| UK | 17 | % | 28 | % | 34 | % | 21 | % | ||||
| Consolidated Service, Retail, Dining and Entertainment NOI | 3 | % | 37 | % | 45 | % | 15 | % | ||||
| Consolidated EBITDA | 18 | % | 26 | % | 33 | % | 23 | % | ||||
| Core FFO per Share | 17 | % | 26 | % | 35 | % | 22 | % | ||||
| 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 North America Same Property results net $111.2 million and $113.8 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively. Total UK Same Property results net $16.7 million and $17.9 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively. | ||||
| (c) | 2023 North America Same Property 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) | Brokerage commissions and other, net includes $23.4 million and $16.3 million of business interruption income for the full year 2023 results and 2024 guidance, respectively. Business interruption recovery income for the first through second quarters of 2024 in the amount of $10.6 million was recorded as an adjustment to Core FFO in the loss of earnings - Catastrophic event-related charges, net line item. | ||||
| (e) | 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. | ||||
| (f) | 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 July 31, 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 second quarter results will be held on Thursday, August 1, 2024 at 2:00 P.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 August 15, 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 13747122. 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, 2023, 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, 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 weaknesses 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 June 30, 2024, the Company owned, operated, or had an interest in a portfolio of 666 developed MH, RV, Marina, and UK properties comprising approximately 181,760 developed sites and approximately 48,140 wet slips and dry storage spaces in the U.S., Canada and the UK.
For more information about the Company, please visit www.suninc.com.
| Company Contacts | |
| Investor Relations | |
| Sara Ismail, Vice President | |
| (248) 208-2500 | |
| investorrelations@suncommunities.com | |
| Corporate Debt Ratings | |
| Moody's | S&P |
| Baa3 | Stable | BBB | Stable |
| Equity Research Coverage | ||||
| Bank of America Merrill Lynch | Joshua Dennerlein | joshua.dennerlein@bofa.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@greenstreet.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 | |||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Financial Information | |||||||||||||||||||
| Basic earnings / (loss) per share(a) | $ | 0.42 | $ | (0.22 | ) | $ | (0.65 | ) | $ | 0.97 | $ | (1.67 | ) | ||||||
| Diluted earnings / (loss) per share(a) | $ | 0.42 | $ | (0.22 | ) | $ | (0.65 | ) | $ | 0.97 | $ | (1.68 | ) | ||||||
| Cash distributions declared per common share | $ | 0.94 | $ | 0.94 | $ | 0.93 | $ | 0.93 | $ | 0.93 | |||||||||
| FFO per Share(a)(b) | $ | 1.79 | $ | 1.12 | $ | 1.41 | $ | 2.55 | $ | 1.96 | |||||||||
| Core FFO per Share(b) | $ | 1.86 | $ | 1.19 | $ | 1.34 | $ | 2.57 | $ | 1.96 | |||||||||
| Real Property NOI | |||||||||||||||||||
| MH | $ | 160.7 | $ | 162.5 | $ | 155.6 | $ | 153.1 | $ | 151.3 | |||||||||
| RV | 74.2 | 51.2 | 50.4 | 128.2 | 75.6 | ||||||||||||||
| Marina | 77.7 | 56.9 | 65.3 | 83.1 | 72.2 | ||||||||||||||
| UK | 18.7 | 15.3 | 14.0 | 29.0 | 17.3 | ||||||||||||||
| Total | $ | 331.3 | $ | 285.9 | $ | 285.3 | $ | 393.4 | $ | 316.4 | |||||||||
| Recurring EBITDA | $ | 335.9 | $ | 234.0 | $ | 256.0 | $ | 433.0 | $ | 339.7 | |||||||||
| TTM Recurring EBITDA / Interest | 3.6 x | 3.7 x | 3.9 x | 4.0 x | 4.3 x | ||||||||||||||
| Net Debt / TTM Recurring EBITDA | 6.2 x | 6.1 x | 6.1 x | 6.1 x | 6.2 x | ||||||||||||||
| Balance Sheet | |||||||||||||||||||
| Total assets(a) | $ | 17,011.1 | $ | 17,113.3 | $ | 16,940.7 | $ | 17,246.6 | $ | 17,234.9 | |||||||||
| Total debt | $ | 7,852.8 | $ | 7,872.0 | $ | 7,777.3 | $ | 7,665.0 | $ | 7,614.0 | |||||||||
| Total liabilities | $ | 9,781.6 | $ | 9,830.0 | $ | 9,506.8 | $ | 9,465.0 | $ | 9,474.8 | |||||||||
| Operating Information | |||||||||||||||||||
| Properties | |||||||||||||||||||
| MH | 296 | 296 | 298 | 298 | 299 | ||||||||||||||
| RV | 179 | 179 | 179 | 182 | 182 | ||||||||||||||
| Marina | 137 | 136 | 135 | 135 | 135 | ||||||||||||||
| UK | 54 | 54 | 55 | 55 | 55 | ||||||||||||||
| Total | 666 | 665 | 667 | 670 | 671 | ||||||||||||||
| Sites, Wet Slips and Dry Storage Spaces | |||||||||||||||||||
| MH | 100,160 | 99,930 | 100,320 | 100,200 | 100,220 | ||||||||||||||
| Annual RV | 33,590 | 33,290 | 32,390 | 32,150 | 31,620 | ||||||||||||||
| UK annual | 17,710 | 18,110 | 18,110 | 18,050 | 17,950 | ||||||||||||||
| Transient | 30,300 | 28,780 | 28,490 | 29,770 | 30,270 | ||||||||||||||
| Total sites | 181,760 | 180,110 | 179,310 | 180,170 | 180,060 | ||||||||||||||
| Marina wet slips and dry storage spaces(c) | 48,140 | 48,040 | 48,030 | 48,030 | 48,180 | ||||||||||||||
| Occupancy | |||||||||||||||||||
| MH | 96.7 | % | 96.7 | % | 96.6 | % | 96.3 | % | 96.2 | % | |||||||||
| Annual RV | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
| Blended MH and annual RV | 97.5 | % | 97.5 | % | 97.4 | % | 97.2 | % | 97.1 | % | |||||||||
| UK annual | 89.9 | % | 88.9 | % | 89.5 | % | 90.6 | % | 90.1 | % | |||||||||
| MH and RV Revenue Producing Site Net Gains(d) | |||||||||||||||||||
| MH leased sites, net | 315 | 57 | 387 | 207 | 285 | ||||||||||||||
| RV leased sites, net | 918 | 157 | 296 | 537 | 754 | ||||||||||||||
| Total leased sites, net | 1,233 | 214 | 683 | 744 | 1,039 | ||||||||||||||
(a) As adjusted for non-cash goodwill impairment.
(b) Excludes the effect 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 June 30, 2024
| MH & RV Properties | |||||||||||||
| Properties | MH & Annual RV | Transient RV Sites | Total Sites | Sites for Development | |||||||||
| Location | Sites | Occupancy % | |||||||||||
| North America | |||||||||||||
| Florida | 128 | 40,980 | 97.8 | % | 4,500 | 45,480 | 2,340 | ||||||
| Michigan | 85 | 33,130 | 96.9 | % | 530 | 33,660 | 1,290 | ||||||
| California | 37 | 6,960 | 98.9 | % | 1,840 | 8,800 | 850 | ||||||
| Texas | 29 | 9,090 | 96.6 | % | 1,770 | 10,860 | 3,850 | ||||||
| Ontario, Canada | 16 | 4,640 | 100.0 | % | 540 | 5,180 | 1,450 | ||||||
| Connecticut | 16 | 1,920 | 95.4 | % | 80 | 2,000 | — | ||||||
| Maine | 15 | 2,540 | 96.1 | % | 1,020 | 3,560 | 200 | ||||||
| Arizona | 12 | 4,490 | 97.3 | % | 830 | 5,320 | 1,120 | ||||||
| Indiana | 12 | 3,160 | 97.8 | % | 1,030 | 4,190 | 180 | ||||||
| New Jersey | 11 | 3,000 | 100.0 | % | 1,000 | 4,000 | 260 | ||||||
| Colorado | 11 | 2,910 | 88.1 | % | 970 | 3,880 | 1,390 | ||||||
| Virginia | 10 | 1,660 | 100.0 | % | 2,050 | 3,710 | 750 | ||||||
| New York | 10 | 1,530 | 99.0 | % | 1,420 | 2,950 | 780 | ||||||
| Other | 83 | 17,740 | 98.8 | % | 8,140 | 25,880 | 1,000 | ||||||
| Total | 475 | 133,750 | 97.5 | % | 25,720 | 159,470 | 15,460 | ||||||
| Properties | UK Properties | Transient Sites | Total Sites | Sites for Development | |||||||||
| Location | Sites | Occupancy % | |||||||||||
| United Kingdom | 54 | 17,710 | 89.9 | % | 4,580 | 22,290 | 2,190 | ||||||
| Marina | ||||||||
| Properties | Wet Slips and Dry Storage Spaces | |||||||
| Location | ||||||||
| Florida | 21 | 5,060 | ||||||
| Rhode Island | 12 | 3,460 | ||||||
| Connecticut | 12 | 3,510 | ||||||
| California | 11 | 5,710 | ||||||
| New York | 9 | 3,020 | ||||||
| Massachusetts | 9 | 2,560 | ||||||
| Maryland | 9 | 2,480 | ||||||
| Other | 54 | 22,340 | ||||||
| Total | 137 | 48,140 | ||||||
| Properties | Sites, Wet Slips and Dry Storage Spaces | |||||||
| Total Portfolio | 666 | 229,900 |
Consolidated Balance Sheets
(amounts in millions)
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Land | $ | 4,555.0 | $ | 4,278.2 | |||
| Land improvements and buildings | 11,619.4 | 11,682.2 | |||||
| Rental homes and improvements | 769.2 | 744.4 | |||||
| Furniture, fixtures and equipment | 1,073.3 | 1,011.7 | |||||
| Investment property | 18,016.9 | 17,716.5 | |||||
| Accumulated depreciation | (3,552.2 | ) | (3,272.9 | ) | |||
| Investment property, net | 14,464.7 | 14,443.6 | |||||
| Cash, cash equivalents and restricted cash | 104.2 | 42.7 | |||||
| Inventory of manufactured homes | 182.3 | 205.6 | |||||
| Notes and other receivables, net | 417.4 | 421.6 | |||||
| Collateralized receivables, net(a) | 54.3 | 56.2 | |||||
| Goodwill | 731.7 | 733.0 | |||||
| Other intangible assets, net | 354.2 | 369.5 | |||||
| Other assets, net | 702.3 | 668.5 | |||||
| Total Assets | $ | 17,011.1 | $ | 16,940.7 | |||
| Liabilities | |||||||
| Mortgage loans payable | $ | 3,452.0 | $ | 3,478.9 | |||
| Secured borrowings on collateralized receivables(a) | 54.3 | 55.8 | |||||
| Unsecured debt | 4,346.5 | 4,242.6 | |||||
| Distributions payable | 119.7 | 118.2 | |||||
| Advanced reservation deposits and rent | 423.3 | 344.5 | |||||
| Accrued expenses and accounts payable | 406.3 | 313.7 | |||||
| Other liabilities | 979.5 | 953.1 | |||||
| Total Liabilities | 9,781.6 | 9,506.8 | |||||
| Commitments and contingencies | |||||||
| Temporary equity | 259.7 | 260.9 | |||||
| Shareholders' Equity | |||||||
| Common stock | 1.2 | 1.2 | |||||
| Additional paid-in capital | 9,481.2 | 9,466.9 | |||||
| Accumulated other comprehensive income | 6.0 | 12.2 | |||||
| Distributions in excess of accumulated earnings | (2,604.1 | ) | (2,397.5 | ) | |||
| Total SUI Shareholders' Equity | 6,884.3 | 7,082.8 | |||||
| Noncontrolling interests | |||||||
| Common and preferred OP units | 84.8 | 90.2 | |||||
| Consolidated entities | 0.7 | — | |||||
| Total noncontrolling interests | 85.5 | 90.2 | |||||
| Total Shareholders' Equity | 6,969.8 | 7,173.0 | |||||
| Total Liabilities, Temporary Equity and Shareholders' Equity | $ | 17,011.1 | $ | 16,940.7 | |||
(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 | Six Months Ended | ||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | % Change | June 30, 2024 | June 30, 2023 | % Change | ||||||||||||||||
| Revenues | As Restated | As Restated | |||||||||||||||||||
| Real property (excluding transient)(a) | $ | 462.3 | $ | 430.1 | 7.5 | % | $ | 897.7 | $ | 828.3 | 8.4 | % | |||||||||
| Real property - transient | 89.1 | 95.9 | (7.1) % | 130.6 | 139.3 | (6.2) % | |||||||||||||||
| Home sales | 107.5 | 122.6 | (12.3) % | 176.4 | 208.9 | (15.6) % | |||||||||||||||
| Service, retail, dining and entertainment | 188.6 | 191.0 | (1.3) % | 306.5 | 293.4 | 4.5 | % | ||||||||||||||
| Interest | 5.3 | 14.0 | (62.1) % | 9.9 | 25.4 | (61.0) % | |||||||||||||||
| Brokerage commissions and other, net | 11.2 | 9.8 | 14.3 | % | 14.2 | 19.3 | (26.4) % | ||||||||||||||
| Total Revenues | 864.0 | 863.4 | 0.1 | % | 1,535.3 | 1,514.6 | 1.4 | % | |||||||||||||
| Expenses | |||||||||||||||||||||
| Property operating and maintenance(a) | 188.7 | 179.6 | 5.1 | % | 348.4 | 336.8 | 3.4 | % | |||||||||||||
| Real estate tax | 31.4 | 30.0 | 4.7 | % | 62.7 | 60.1 | 4.3 | % | |||||||||||||
| Home costs and selling | 76.8 | 86.4 | (11.1) % | 128.7 | 149.0 | (13.6) % | |||||||||||||||
| Service, retail, dining and entertainment | 165.9 | 165.0 | 0.5 | % | 281.8 | 264.8 | 6.4 | % | |||||||||||||
| General and administrative | 65.3 | 62.7 | 4.1 | % | 143.8 | 126.8 | 13.4 | % | |||||||||||||
| Catastrophic event-related charges, net | 2.3 | (0.1 | ) | N/M | 9.5 | 0.9 | N/M | ||||||||||||||
| Business combinations | 0.2 | 0.2 | — | % | 0.2 | 3.0 | (93.3) % | ||||||||||||||
| Depreciation and amortization | 172.8 | 164.1 | 5.3 | % | 338.1 | 319.7 | 5.8 | % | |||||||||||||
| Asset impairments(b) | 11.6 | 6.5 | 78.5 | % | 32.3 | 8.9 | 262.9 | % | |||||||||||||
| Goodwill impairment | — | 309.7 | (100.0) % | — | 325.1 | (100.0) % | |||||||||||||||
| Loss on extinguishment of debt | — | — | N/A | 0.6 | — | N/A | |||||||||||||||
| Interest | 89.8 | 79.2 | 13.4 | % | 179.5 | 155.8 | 15.2 | % | |||||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | — | 0.9 | (100.0) % | — | 1.9 | (100.0) % | |||||||||||||||
| Total Expenses | 804.8 | 1,084.2 | (25.8) % | 1,525.6 | 1,752.8 | (13.0) % | |||||||||||||||
| Income / (Loss) Before Other Items | 59.2 | (220.8 | ) | N/M | 9.7 | (238.2 | ) | N/M | |||||||||||||
| Gain / (loss) on remeasurement of marketable securities | — | 5.8 | (100.0) % | — | (14.1 | ) | (100.0) % | ||||||||||||||
| Gain / (loss) on foreign currency exchanges | (2.8 | ) | 2.7 | N/M | (1.7 | ) | — | N/A | |||||||||||||
| Gain / (loss) on dispositions of properties | 2.5 | (0.6 | ) | N/M | 7.9 | (2.2 | ) | N/M | |||||||||||||
| Other income / (expense), net(b) | (1.6 | ) | (0.8 | ) | 100.0 | % | 6.4 | (1.8 | ) | N/M | |||||||||||
| Loss on remeasurement of notes receivable | (0.4 | ) | (0.1 | ) | N/M | (1.1 | ) | (1.8 | ) | (38.9) % | |||||||||||
| Income / (loss) from nonconsolidated affiliates | 3.0 | (0.7 | ) | N/M | 4.4 | (0.9 | ) | N/M | |||||||||||||
| Gain / (loss) on remeasurement of investment in nonconsolidated affiliates | 0.1 | — | N/A | 5.3 | (4.5 | ) | N/M | ||||||||||||||
| Current tax expense | (5.3 | ) | (5.4 | ) | (1.9) % | (7.4 | ) | (9.3 | ) | (20.4) % | |||||||||||
| Deferred tax benefit | 3.7 | 7.7 | (51.9) % | 9.4 | 12.3 | (23.6) % | |||||||||||||||
| Net Income / (Loss) | 58.4 | (212.2 | ) | N/M | 32.9 | (260.5 | ) | N/M | |||||||||||||
| Less: Preferred return to preferred OP units / equity interests | 3.2 | 3.2 | — | % | 6.4 | 5.6 | 14.3 | % | |||||||||||||
| Less: Income / (loss) attributable to noncontrolling interests | 3.1 | (7.8 | ) | N/M | 1.8 | (13.6 | ) | N/M | |||||||||||||
| Net Income / (Loss) Attributable to SUI Common Shareholders | $ | 52.1 | $ | (207.6 | ) | N/M | $ | 24.7 | $ | (252.5 | ) | N/M | |||||||||
| Weighted average common shares outstanding - basic(b) | 123.7 | 123.4 | 0.2 | % | 123.7 | 123.4 | 0.2 | % | |||||||||||||
| Weighted average common shares outstanding - diluted(b) | 123.7 | 126.1 | (1.9) % | 126.4 | 126.2 | 0.2 | % | ||||||||||||||
| Basic earnings / (loss) per share | $ | 0.42 | $ | (1.67 | ) | N/M | $ | 0.20 | $ | (2.03 | ) | N/M | |||||||||
| Diluted earnings / (loss) per share(c) | $ | 0.42 | $ | (1.68 | ) | N/M | $ | 0.20 | $ | (2.04 | ) | 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 | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| As Restated | As Restated | ||||||||||||||
| Net Income / (Loss) Attributable to SUI Common Shareholders | $ | 52.1 | $ | (207.6 | ) | $ | 24.7 | $ | (252.5 | ) | |||||
| Adjustments | |||||||||||||||
| Depreciation and amortization | 172.0 | 163.4 | 336.5 | 318.3 | |||||||||||
| Depreciation on nonconsolidated affiliates | 0.1 | 0.1 | 0.2 | 0.1 | |||||||||||
| Asset impairments | 11.6 | 6.5 | 32.3 | 8.9 | |||||||||||
| Goodwill impairment | — | 309.7 | — | 325.1 | |||||||||||
| (Gain) / loss on remeasurement of marketable securities | — | (5.8 | ) | — | 14.1 | ||||||||||
| (Gain) / loss on remeasurement of investment in nonconsolidated affiliates | (0.1 | ) | — | (5.3 | ) | 4.5 | |||||||||
| Loss on remeasurement of notes receivable | 0.4 | 0.1 | 1.1 | 1.8 | |||||||||||
| (Gain) / loss on dispositions of properties, including tax effect | (1.8 | ) | 0.8 | (7.1 | ) | 4.3 | |||||||||
| Add: Returns on preferred OP units | 2.1 | 3.7 | 4.1 | 6.4 | |||||||||||
| Add: Income / (loss) attributable to noncontrolling interests | 2.7 | (7.9 | ) | 1.7 | (13.5 | ) | |||||||||
| Gain on dispositions of assets, net | (8.6 | ) | (10.6 | ) | (14.0 | ) | (18.5 | ) | |||||||
| FFO(a) | $ | 230.5 | $ | 252.4 | $ | 374.2 | $ | 399.0 | |||||||
| Adjustments | |||||||||||||||
| Business combination expense | 0.2 | 0.2 | 0.2 | 3.0 | |||||||||||
| Acquisition and other transaction costs(a) | 3.1 | 4.7 | 13.0 | 8.4 | |||||||||||
| Loss on extinguishment of debt | — | — | 0.6 | — | |||||||||||
| Catastrophic event-related charges, net | 2.3 | (0.1 | ) | 9.5 | 0.9 | ||||||||||
| Loss of earnings - catastrophic event-related charges, net(b) | 0.3 | 5.5 | 5.6 | 11.0 | |||||||||||
| (Gain) / loss on foreign currency exchanges | 2.8 | (2.7 | ) | 1.7 | — | ||||||||||
| Other adjustments, net(a) | (0.5 | ) | (7.1 | ) | (12.9 | ) | (10.7 | ) | |||||||
| Core FFO(a)(c) | $ | 238.7 | $ | 252.9 | $ | 391.9 | $ | 411.6 | |||||||
| Weighted Average Common Shares Outstanding - Diluted | 128.6 | 129.0 | 128.6 | 129.0 | |||||||||||
| FFO per Share(a)(c) | $ | 1.79 | $ | 1.96 | $ | 2.91 | $ | 3.09 | |||||||
| Core FFO per Share(a)(c) | $ | 1.86 | $ | 1.96 | $ | 3.05 | $ | 3.19 | |||||||
(a) Refer to Definitions and Notes for additional information.
(b) Loss of earnings - catastrophic event-related charges, net include the following:
| Quarter Ended | Six Months Ended | ||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||
| Hurricane Ian - three Fort Myers, Florida RV communities impaired | |||||||||||||
| Estimated loss of earnings in excess of the applicable business interruption deductible | $ | 5.3 | $ | 5.3 | $ | 10.6 | $ | 10.6 | |||||
| Insurance recoveries realized for previously estimated loss of earnings | (5.0 | ) | — | (5.0 | ) | — | |||||||
| Hurricane Irma - three Florida Keys communities impaired | |||||||||||||
| Estimated loss of earnings in excess of the applicable business interruption deductible | — | 0.2 | — | 0.4 | |||||||||
| Loss of earnings - catastrophic event-related charges, net | $ | 0.3 | $ | 5.5 | $ | 5.6 | $ | 11.0 | |||||
(c) Excludes the effect of certain anti-dilutive convertible securities.
Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to NOI
(amounts in millions)
| Quarter Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| As Restated | As Restated | ||||||||||||||
| Net Income / (Loss) Attributable to SUI Common Shareholders | $ | 52.1 | $ | (207.6 | ) | $ | 24.7 | $ | (252.5 | ) | |||||
| Interest income | (5.3 | ) | (14.0 | ) | (9.9 | ) | (25.4 | ) | |||||||
| Brokerage commissions and other revenues, net | (11.2 | ) | (9.8 | ) | (14.2 | ) | (19.3 | ) | |||||||
| General and administrative | 65.3 | 62.7 | 143.8 | 126.8 | |||||||||||
| Catastrophic event-related charges, net | 2.3 | (0.1 | ) | 9.5 | 0.9 | ||||||||||
| Business combination expense | 0.2 | 0.2 | 0.2 | 3.0 | |||||||||||
| Depreciation and amortization | 172.8 | 164.1 | 338.1 | 319.7 | |||||||||||
| Asset impairments | 11.6 | 6.5 | 32.3 | 8.9 | |||||||||||
| Goodwill impairment | — | 309.7 | — | 325.1 | |||||||||||
| Loss on extinguishment of debt | — | — | 0.6 | — | |||||||||||
| Interest expense | 89.8 | 79.2 | 179.5 | 155.8 | |||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | — | 0.9 | — | 1.9 | |||||||||||
| (Gain) / loss on remeasurement of marketable securities | — | (5.8 | ) | — | 14.1 | ||||||||||
| (Gain) / loss on foreign currency exchanges | 2.8 | (2.7 | ) | 1.7 | — | ||||||||||
| (Gain) / loss on disposition of properties | (2.5 | ) | 0.6 | (7.9 | ) | 2.2 | |||||||||
| Other (income) / expense, net(a) | 1.6 | 0.8 | (6.4 | ) | 1.8 | ||||||||||
| Loss on remeasurement of notes receivable | 0.4 | 0.1 | 1.1 | 1.8 | |||||||||||
| (Income) / loss from nonconsolidated affiliates | (3.0 | ) | 0.7 | (4.4 | ) | 0.9 | |||||||||
| (Gain) / loss on remeasurement of investment in nonconsolidated affiliates | (0.1 | ) | — | (5.3 | ) | 4.5 | |||||||||
| Current tax expense | 5.3 | 5.4 | 7.4 | 9.3 | |||||||||||
| Deferred tax benefit | (3.7 | ) | (7.7 | ) | (9.4 | ) | (12.3 | ) | |||||||
| Add: Preferred return to preferred OP units / equity interests | 3.2 | 3.2 | 6.4 | 5.6 | |||||||||||
| Add: Income / (loss) attributable to noncontrolling interests | 3.1 | (7.8 | ) | 1.8 | (13.6 | ) | |||||||||
| NOI | $ | 384.7 | $ | 378.6 | $ | 689.6 | $ | 659.2 | |||||||
| Quarter Ended | Six Months Ended | ||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||
| As Restated | As Restated | ||||||||||
| Real property NOI(a) | $ | 331.3 | $ | 316.4 | $ | 617.2 | $ | 570.7 | |||
| Home sales NOI(a) | 30.7 | 36.2 | 47.7 | 59.9 | |||||||
| Service, retail, dining and entertainment NOI(a) | 22.7 | 26.0 | 24.7 | 28.6 | |||||||
| NOI | $ | 384.7 | $ | 378.6 | $ | 689.6 | $ | 659.2 | |||
(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 | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| As Restated | As Restated | ||||||||||||||
| Net Income / (Loss) Attributable to SUI Common Shareholders | $ | 52.1 | $ | (207.6 | ) | $ | 24.7 | $ | (252.5 | ) | |||||
| Adjustments | |||||||||||||||
| Depreciation and amortization | 172.8 | 164.1 | 338.1 | 319.7 | |||||||||||
| Asset impairments | 11.6 | 6.5 | 32.3 | 8.9 | |||||||||||
| Goodwill impairment | — | 309.7 | — | 325.1 | |||||||||||
| Loss on extinguishment of debt | — | — | 0.6 | — | |||||||||||
| Interest expense | 89.8 | 79.2 | 179.5 | 155.8 | |||||||||||
| Interest on mandatorily redeemable preferred OP units / equity | — | 0.9 | — | 1.9 | |||||||||||
| Current tax expense | 5.3 | 5.4 | 7.4 | 9.3 | |||||||||||
| Deferred tax benefit | (3.7 | ) | (7.7 | ) | (9.4 | ) | (12.3 | ) | |||||||
| (Income) / loss from nonconsolidated affiliates | (3.0 | ) | 0.7 | (4.4 | ) | 0.9 | |||||||||
| Less: (Gain) / loss on dispositions of properties | (2.5 | ) | 0.6 | (7.9 | ) | 2.2 | |||||||||
| Less: Gain on dispositions of assets, net | (8.6 | ) | (10.6 | ) | (14.0 | ) | (18.5 | ) | |||||||
| EBITDAre(a) | $ | 313.8 | $ | 341.2 | $ | 546.9 | $ | 540.5 | |||||||
| Adjustments | |||||||||||||||
| Catastrophic event-related charges, net | 2.3 | (0.1 | ) | 9.5 | 0.9 | ||||||||||
| Business combination expense | 0.2 | 0.2 | 0.2 | 3.0 | |||||||||||
| (Gain) / loss on remeasurement of marketable securities | — | (5.8 | ) | — | 14.1 | ||||||||||
| (Gain) / loss on foreign currency exchanges | 2.8 | (2.7 | ) | 1.7 | — | ||||||||||
| Other (income) / expense, net(a) | 1.6 | 0.8 | (6.4 | ) | 1.8 | ||||||||||
| Loss on remeasurement of notes receivable | 0.4 | 0.1 | 1.1 | 1.8 | |||||||||||
| (Gain) / loss on remeasurement of investment in nonconsolidated affiliates | (0.1 | ) | — | (5.3 | ) | 4.5 | |||||||||
| Add: Preferred return to preferred OP units / equity interests | 3.2 | 3.2 | 6.4 | 5.6 | |||||||||||
| Add: Income / (loss) attributable to noncontrolling interests | 3.1 | (7.8 | ) | 1.8 | (13.6 | ) | |||||||||
| Add: Gain on dispositions of assets, net | 8.6 | 10.6 | 14.0 | 18.5 | |||||||||||
| Recurring EBITDA(a) | $ | 335.9 | $ | 339.7 | $ | 569.9 | $ | 577.1 | |||||||
(a) Refer to Definitions and Notes for additional information.
Real Property Operations - Total Portfolio
(amounts in millions, except statistical information)
| Quarter Ended June 30, 2024 | Quarter Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||
| Financial Information | MH | RV | Marinas | UK | Total | MH | RV | Marinas | UK | Total | |||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||
| Real property (excluding transient)(a) | $ | 239.4 | $ | 80.6 | $ | 111.2 | $ | 31.1 | $ | 462.3 | $ | 224.0 | $ | 72.7 | $ | 105.0 | $ | 28.4 | $ | 430.1 | |||||||||||||||||
| Real property - transient | 0.3 | 67.6 | 7.6 | 13.6 | 89.1 | 0.3 | 75.5 | 6.7 | 13.4 | 95.9 | |||||||||||||||||||||||||||
| Total operating revenues | 239.7 | 148.2 | 118.8 | 44.7 | 551.4 | 224.3 | 148.2 | 111.7 | 41.8 | 526.0 | |||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||
| Property operating expenses | 79.0 | 74.0 | 41.1 | 26.0 | 220.1 | 73.0 | 72.6 | 39.5 | 24.5 | 209.6 | |||||||||||||||||||||||||||
| Real Property NOI | $ | 160.7 | $ | 74.2 | $ | 77.7 | $ | 18.7 | $ | 331.3 | $ | 151.3 | $ | 75.6 | $ | 72.2 | $ | 17.3 | $ | 316.4 | |||||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||
| Financial Information | MH | RV | Marinas | UK | Total | MH | RV | Marinas | UK | Total | |||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||
| Real property (excluding transient)(a) | $ | 477.0 | $ | 150.6 | $ | 203.7 | $ | 66.4 | $ | 897.7 | $ | 447.5 | $ | 134.5 | $ | 190.4 | $ | 55.9 | $ | 828.3 | |||||||||||||||||
| Real property - transient | 0.7 | 102.1 | 11.5 | 16.3 | 130.6 | 0.8 | 113.3 | 10.4 | 14.8 | 139.3 | |||||||||||||||||||||||||||
| Total operating revenues | 477.7 | 252.7 | 215.2 | 82.7 | 1,028.3 | 448.3 | 247.8 | 200.8 | 70.7 | 967.6 | |||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||
| Property operating expenses | 154.4 | 127.3 | 80.6 | 48.8 | 411.1 | 146.4 | 127.1 | 76.4 | 47.0 | 396.9 | |||||||||||||||||||||||||||
| Real Property NOI | $ | 323.3 | $ | 125.4 | $ | 134.6 | $ | 33.9 | $ | 617.2 | $ | 301.9 | $ | 120.7 | $ | 124.4 | $ | 23.7 | $ | 570.7 | |||||||||||||||||
| As of June 30, 2024 | As of June 30, 2023 | ||||||||||||||||||||||||||||||||||||
| Other Information | MH | RV | Marinas | UK | Total | MH | RV | Marinas | UK | Total | |||||||||||||||||||||||||||
| Number of Properties | 296 | 179 | 137 | 54 | 666 | 299 | 182 | 135 | 55 | 671 | |||||||||||||||||||||||||||
| Sites, Wet Slips and Dry Storage Spaces | |||||||||||||||||||||||||||||||||||||
| Sites, wet slips and dry storage spaces(b) | 100,160 | 33,590 | 48,140 | 17,710 | 199,600 | 100,220 | 31,620 | 48,180 | 17,950 | 197,970 | |||||||||||||||||||||||||||
| Transient sites | N/A | 25,720 | N/A | 4,580 | 30,300 | N/A | 26,920 | N/A | 3,350 | 30,270 | |||||||||||||||||||||||||||
| Total | 100,160 | 59,310 | 48,140 | 22,290 | 229,900 | 100,220 | 58,540 | 48,180 | 21,300 | 228,240 | |||||||||||||||||||||||||||
| Occupancy | 96.7 | % | 100.0 | % | N/A | 89.9 | % | 96.7 | % | 96.2 | % | 100.0 | % | N/A | 90.1 | % | 96.3 | % | |||||||||||||||||||
N/M = Not meaningful. N/A = Not applicable.
(a) Refer to "Utility Revenues" within Definitions and Notes for additional information.
(b) MH annual sites included 10,589 and 9,721 rental homes in the Company's Rental Program at June 30, 2024 and 2023, respectively. The Company's investment in occupied rental homes at June 30, 2024 was $709.4 million, an increase of 12.6% from $630.0 million at June 30, 2023.
Real Property Operations - North America Same Property Portfolio(a)
(amounts in millions, except for statistical information)
| Quarter Ended June 30, 2024 | Quarter Ended June 30, 2023 | 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) | $ | 222.1 | $ | 74.1 | $ | 96.0 | $ | 392.2 | $ | 207.1 | $ | 66.8 | $ | 91.4 | $ | 365.3 | $ | 26.9 | 7.2 | % | 11.0 | % | 5.1 | % | 7.4 | % | |||||||||||||
| Real property - transient | 0.3 | 60.5 | 7.5 | 68.3 | 0.3 | 68.9 | 6.6 | 75.8 | (7.5 | ) | (8.4) % | (12.0) % | 11.2 | % | (10.0) % | ||||||||||||||||||||||||
| Total Same Property operating revenues | 222.4 | 134.6 | 103.5 | 460.5 | 207.4 | 135.7 | 98.0 | 441.1 | 19.4 | 7.2 | % | (0.7) % | 5.5 | % | 4.4 | % | |||||||||||||||||||||||
| Same Property Expenses | |||||||||||||||||||||||||||||||||||||||
| Same Property operating expenses(d)(e) | 61.9 | 64.2 | 32.4 | 158.5 | 56.6 | 61.9 | 31.0 | 149.5 | 9.0 | 9.2 | % | 4.0 | % | 4.2 | % | 6.0 | % | ||||||||||||||||||||||
| Real Property NOI(e) | $ | 160.5 | $ | 70.4 | $ | 71.1 | $ | 302.0 | $ | 150.8 | $ | 73.8 | $ | 67.0 | $ | 291.6 | $ | 10.4 | 6.4 | % | (4.6) % | 6.1 | % | 3.6 | % | ||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | 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) | $ | 440.1 | $ | 139.1 | $ | 174.9 | $ | 754.1 | $ | 411.3 | $ | 124.1 | $ | 164.9 | $ | 700.3 | $ | 53.8 | 7.0 | % | 12.1 | % | 6.1 | % | 7.7 | % | |||||||||||||
| Real property - transient | 0.7 | 91.8 | 11.2 | 103.7 | 0.7 | 104.9 | 10.3 | 115.9 | (12.2 | ) | 6.6 | % | (12.4) % | 8.9 | % | (10.4) % | |||||||||||||||||||||||
| Total Same Property operating revenues | 440.8 | 230.9 | 186.1 | 857.8 | 412.0 | 229.0 | 175.2 | 816.2 | 41.6 | 7.0 | % | 0.9 | % | 6.2 | % | 5.1 | % | ||||||||||||||||||||||
| Same Property Expenses | |||||||||||||||||||||||||||||||||||||||
| Same Property operating expenses(d)(e) | 118.1 | 110.0 | 63.7 | 291.8 | 111.1 | 108.4 | 60.5 | 280.0 | 11.8 | 6.3 | % | 1.5 | % | 5.3 | % | 4.2 | % | ||||||||||||||||||||||
| Real Property NOI(e) | $ | 322.7 | $ | 120.9 | $ | 122.4 | $ | 566.0 | $ | 300.9 | $ | 120.6 | $ | 114.7 | $ | 536.2 | $ | 29.8 | 7.2 | % | 0.3 | % | 6.7 | % | 5.6 | % | |||||||||||||
| Other Information | |||||||||||||||||||||||||||||||||||||||
| Number of properties | 291 | 164 | 127 | 582 | 291 | 164 | 127 | 582 | |||||||||||||||||||||||||||||||
| Sites, wet slips and dry storage spaces | 99,390 | 55,590 | 43,380 | 198,360 | 99,380 | 55,200 | 43,620 | 198,200 | |||||||||||||||||||||||||||||||
(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 $0.7309 and $0.7364 USD per Canadian dollar, respectively, during the quarter and six months ended June 30, 2024.
(c) Percentages are calculated based on unrounded numbers.
(d) Refer to "Utility Revenues" within Definitions and Notes for additional information.
Real Property Operations - North America 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 | Six Months Ended | ||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | Change | % Change(c) | June 30, 2024 | June 30, 2023 | Change | % Change(c) | ||||||||||||||||
| Payroll and benefits | $ | 52.3 | $ | 50.3 | $ | 2.0 | 4.0 | % | $ | 94.9 | $ | 93.5 | $ | 1.4 | 1.4 | % | |||||||
| Real estate taxes | 28.8 | 27.6 | 1.2 | 4.4 | % | 57.5 | 55.6 | 1.9 | 3.5 | % | |||||||||||||
| Supplies and repairs | 22.8 | 20.8 | 2.0 | 9.5 | % | 38.2 | 35.2 | 3.0 | 8.7 | % | |||||||||||||
| Utilities | 16.8 | 16.0 | 0.8 | 4.7 | % | 30.6 | 30.5 | 0.1 | 0.2 | % | |||||||||||||
| Legal, state / local taxes, and insurance | 14.7 | 14.1 | 0.6 | 4.1 | % | 29.1 | 28.7 | 0.4 | 1.5 | % | |||||||||||||
| Other | 23.1 | 20.7 | 2.4 | 11.6 | % | 41.5 | 36.5 | 5.0 | 13.8 | % | |||||||||||||
| Total Same Property Operating Expenses | $ | 158.5 | $ | 149.5 | $ | 9.0 | 6.0 | % | $ | 291.8 | $ | 280.0 | $ | 11.8 | 4.2 | % | |||||||
| As of | ||||||||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||||||||
| MH | RV | MH | RV | |||||||||||||
| Other Information | ||||||||||||||||
| Number of properties | 291 | 164 | 291 | 164 | ||||||||||||
| Sites | ||||||||||||||||
| MH and annual RV sites | 99,390 | 33,100 | 99,380 | 31,450 | ||||||||||||
| Transient RV sites | N/A | 22,490 | N/A | 23,750 | ||||||||||||
| Total | 99,390 | 55,590 | 99,380 | 55,200 | ||||||||||||
| MH and Annual RV Occupancy | ||||||||||||||||
| Occupancy(b) | 97.2 | % | 100.0 | % | 96.8 | % | 100.0 | % | ||||||||
| Monthly base rent per site | $ | 692 | $ | 612 | $ | 653 | $ | 575 | ||||||||
| % Change of monthly base rent(c) | 6.0 | % | 6.4 | % | N/A | N/A | ||||||||||
| Rental Program Statistics included in MH: | ||||||||||||||||
| Number of occupied sites, end of period(d) | 10,300 | N/A | 9,680 | N/A | ||||||||||||
| Monthly rent per site – MH rental program | $ | 1,325 | N/A | $ | 1,264 | N/A | ||||||||||
| % Change(d) | 4.8 | % | N/A | N/A | N/A | |||||||||||
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 June 30, 2024, up 30 basis points from 97.6% at June 30, 2023. Adjusting for recently delivered and vacant expansion sites, Same Property adjusted blended occupancy for MH and RV increased by 150 basis points year over year, to 98.7% at June 30, 2024, from 97.2% at June 30, 2023.
(c) Calculated using actual results without rounding.
(d) Occupied rental program sites in Same Property are included in total sites.
Real Property Operations - UK Same Property Portfolio(a)
(amounts in millions, except for statistical information)
| Quarter Ended | Six Months Ended | ||||||||||||||||
| June 30, 2024 | June 30, 2023 | % Change(c) | June 30, 2024 | June 30, 2023 | % Change(c) | ||||||||||||
| Financial Information(b) | |||||||||||||||||
| Same Property Revenues | |||||||||||||||||
| Real property (excluding transient) | $ | 24.7 | $ | 23.1 | 7.1 | % | $ | 49.6 | $ | 46.0 | 7.7 | % | |||||
| Real property - transient | 13.7 | 13.5 | 1.0 | % | 16.2 | 15.0 | 8.3 | % | |||||||||
| Total Same Property operating revenues | 38.4 | 36.6 | 4.9 | % | 65.8 | 61.0 | 7.9 | % | |||||||||
| Same Property Expenses | |||||||||||||||||
| Same Property operating expenses(d) | 18.5 | 18.4 | 0.5 | % | 35.2 | 35.4 | (0.5) % | ||||||||||
| Real Property NOI | $ | 19.9 | $ | 18.2 | 9.3 | % | $ | 30.6 | $ | 25.6 | 19.4 | % | |||||
| As of | |||||||||||
| June 30, 2024 | June 30, 2023 | Change | |||||||||
| Other Information | |||||||||||
| Number of properties | 52 | 52 | — | ||||||||
| Sites | |||||||||||
| UK sites | 16,560 | 16,440 | 120 | ||||||||
| UK transient sites | 3,420 | 3,200 | 220 | ||||||||
| Occupancy(e) | 90.0 | % | 90.7 | % | (0.7) % | ||||||
| Monthly base rent per site | $ | 519 | $ | 481 | $ | 38 | |||||
(a) Refer to the Definitions and Notes for additional information.
(b) Same Property results for the UK properties reflect constant currency for comparative purposes. UK currency figures in the prior comparative period have been translated at the average exchange rate of $1.2618 USD and $1.2649 USD per Pound sterling, respectively, during the quarter and six months ended June 30, 2024.
(c) Percentages are calculated based on unrounded numbers.
(d) Refer to "Utility Revenues" within Definitions and Notes for additional information.
(e) Adjusting for recently delivered and vacant expansion sites, Same Property adjusted occupancy decreased by 40 basis points year-over-year, to 90.8% at June 30, 2024, from 91.2% at June 30, 2023.
Home Sales Summary
($ in millions, except for average selling price)
| Quarter Ended | Six Months Ended | ||||||||||||||||||||
| Financial Information | June 30, 2024 | June 30, 2023 | % Change | June 30, 2024 | June 30, 2023 | % Change | |||||||||||||||
| MH | |||||||||||||||||||||
| Home sales | $ | 58.2 | $ | 62.3 | (6.6) % | $ | 91.0 | $ | 109.5 | (16.9) % | |||||||||||
| Home cost and selling expenses | 45.0 | 46.0 | (2.2) % | 71.2 | 82.0 | (13.2) % | |||||||||||||||
| NOI | $ | 13.2 | $ | 16.3 | (19.0) % | $ | 19.8 | $ | 27.5 | (28.0) % | |||||||||||
| NOI margin % | 22.7 | % | 26.2 | % | 21.8 | % | 25.1 | % | |||||||||||||
| UK | |||||||||||||||||||||
| Home sales | $ | 49.3 | $ | 60.3 | (18.2) % | $ | 85.4 | $ | 99.4 | (14.1) % | |||||||||||
| Home cost and selling expenses | 31.8 | 40.4 | (21.3) % | 57.5 | 67.0 | (14.2) % | |||||||||||||||
| NOI | $ | 17.5 | $ | 19.9 | (12.1) % | $ | 27.9 | $ | 32.4 | (13.9) % | |||||||||||
| NOI margin % | 35.5 | % | 33.0 | % | 32.7 | % | 32.6 | % | |||||||||||||
| Total | |||||||||||||||||||||
| Home sales | $ | 107.5 | $ | 122.6 | (12.3) % | $ | 176.4 | $ | 208.9 | (15.6) % | |||||||||||
| Home cost and selling expenses | 76.8 | 86.4 | (11.1) % | 128.7 | 149.0 | (13.6) % | |||||||||||||||
| NOI | $ | 30.7 | $ | 36.2 | (15.2) % | $ | 47.7 | $ | 59.9 | (20.4) % | |||||||||||
| NOI margin % | 28.6 | % | 29.5 | % | 27.0 | % | 28.7 | % | |||||||||||||
| Other information | |||||||||||||||||||||
| Units Sold: | |||||||||||||||||||||
| MH | 623 | 684 | (8.9) % | 950 | 1,273 | (25.4) % | |||||||||||||||
| UK | 787 | 837 | (6.0) % | 1,408 | 1,426 | (1.3) % | |||||||||||||||
| Total home sales | 1,410 | 1,521 | (7.3) % | 2,358 | 2,699 | (12.6) % | |||||||||||||||
| Average Selling Price: | |||||||||||||||||||||
| MH | $ | 93,419 | $ | 91,082 | 2.6 | % | $ | 95,789 | $ | 86,017 | 11.4 | % | |||||||||
| UK | $ | 62,643 | $ | 72,043 | (13.0) % | $ | 60,653 | $ | 69,705 | (13.0) % | |||||||||||
Operating Statistics for MH and Annual RVs
| Resident Move-outs | |||||||||||||
| % of Total Sites | Number of Move-outs | Leased Sites, Net(b) | New Home Sales | Pre-owned Home Sales | Brokered Re-sales | ||||||||
| 2024 - YTD as of June 30 | 3.1 | % | (a) | 1,236 | 1,447 | 218 | 732 | 822 | |||||
| 2023 | 3.6 | % | 6,590 | 3,268 | 564 | 2,001 | 2,296 | ||||||
| 2022 | 3.0 | % | 5,170 | 2,922 | 703 | 2,509 | 2,864 | ||||||
(a) Percentage calculated on a trailing 12-month basis.
(b) Increase in revenue producing sites, net of new vacancy.
Acquisitions and Dispositions
(amounts in millions, except for *)
| Property Name | Property Type | Number of Properties* | Sites, Wet Slips and Dry Storage Spaces* | State, Province or Country | Total Purchase Price / Sales Proceeds | Month | |||||||
| ACQUISITIONS | |||||||||||||
| First Quarter 2024 | |||||||||||||
| Port of San Juan(a) | Marina | 1 | 8 | PR | $ | — | March | ||||||
| Second Quarter 2024 | |||||||||||||
| Port Milford(b) | Marina | 1 | 92 | CT | 4.0 | April | |||||||
| Oak Leaf(c) | Marina | — | 89 | CT | 5.0 | April | |||||||
| Berth One Palm Beach(c) | Marina | — | 4 | FL | 3.0 | April | |||||||
| Acquisitions to Date | 2 | 193 | $ | 12.0 | |||||||||
| DISPOSITIONS | |||||||||||||
| First Quarter 2024 | |||||||||||||
| Spanish Trails and Sundance | MH | 2 | 533 | AZ & FL | $ | 51.7 | February | ||||||
| Second Quarter 2024 | |||||||||||||
| Littondale | UK | 1 | 114 | UK | 5.4 | May | |||||||
| Subsequent to Second Quarter 2024 | |||||||||||||
| Six Community MH Portfolio | MH | 6 | 2,087 | Various | 224.6 | July | |||||||
| Lake Pointe Village | MH | 1 | 361 | FL | 38.0 | July | |||||||
| Dispositions to Date | 10 | 3,095 | $ | 319.7 | |||||||||
(a) Acquired via ground lease agreement.
(b) In conjunction with this acquisition, the Company issued 19,326 common OP units valued at $2.5 million.
(c) Combined with an existing property.
Capital Expenditures and Investments
(amounts in millions, except for *)
| Six Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2024 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
| MH / RV | Marina | UK | Total | MH / RV | Marina | UK | Total | MH / RV | Marina | UK | Total | ||||||||||||||||||||||||
| Recurring Capital Expenditures(a) | $ | 30.9 | $ | 25.8 | $ | 6.7 | $ | 63.4 | $ | 51.8 | $ | 35.5 | $ | — | $ | 87.3 | $ | 51.0 | $ | 22.8 | $ | — | $ | 73.8 | |||||||||||
| Non-Recurring Capital Expenditures(a) | |||||||||||||||||||||||||||||||||||
| Lot Modifications | $ | 14.1 | N/A | $ | 1.5 | $ | 15.6 | $ | 54.9 | N/A | $ | — | $ | 54.9 | $ | 39.1 | N/A | $ | — | $ | 39.1 | ||||||||||||||
| Growth Projects | 3.0 | 50.0 | 4.7 | 57.7 | 21.6 | 82.9 | — | 104.5 | 28.4 | 71.1 | — | 99.5 | |||||||||||||||||||||||
| Rebranding | — | N/A | 2.9 | 2.9 | 4.7 | N/A | — | 4.7 | 15.0 | N/A | — | 15.0 | |||||||||||||||||||||||
| Acquisitions | 32.2 | 60.8 | 10.5 | 103.5 | 115.1 | 186.3 | 67.3 | 368.7 | 503.0 | 522.5 | 2,285.1 | 3,310.6 | |||||||||||||||||||||||
| Expansion and Development | 63.0 | 4.4 | 10.2 | 77.6 | 247.4 | 26.0 | 2.9 | 276.3 | 243.8 | 13.9 | 4.1 | 261.8 | |||||||||||||||||||||||
| Total Non-Recurring Capital Expenditures | 112.3 | 115.2 | 29.8 | 257.3 | 443.7 | 295.2 | 70.2 | 809.1 | 829.3 | 607.5 | 2,289.2 | 3,726.0 | |||||||||||||||||||||||
| Total | $ | 143.2 | $ | 141.0 | $ | 36.5 | $ | 320.7 | $ | 495.5 | $ | 330.7 | $ | 70.2 | $ | 896.4 | $ | 880.3 | $ | 630.3 | $ | 2,289.2 | $ | 3,799.8 | |||||||||||
| Other Information | |||||||||||||||||||||||||||||||||||
| Recurring Capex per Site, Slip and Dry Storage Spaces(b)* | $ | 210 | $ | 538 | $ | 370 | $ | 298 | $ | 388 | $ | 867 | N/A | $ | 500 | $ | 397 | $ | 582 | N/A | $ | 441 | |||||||||||||
N/A = Not applicable.
(a) Refer to Definitions and Notes for additional information.
(b) Average based on actual number of MH and RV sites, Marina wet slips and dry storage spaces, and UK sites associated with the recurring capital expenditures in each period.
Capitalization Overview
(Shares and units in thousands, dollar amounts in millions, except for *)
| As of | |||||||||
| June 30, 2024 | |||||||||
| Equity and Enterprise Value | Common Equivalent Shares | Share Price* | Capitalization | ||||||
| Common shares | 124,653 | $ | 120.34 | $ | 15,000.7 | ||||
| Convertible securities | |||||||||
| Common OP units | 2,690 | $ | 120.34 | 323.7 | |||||
| Preferred OP units | 2,607 | $ | 120.34 | 313.7 | |||||
| Diluted shares outstanding and market capitalization(a) | 129,950 | 15,638.1 | |||||||
| Plus: Total debt, per consolidated balance sheet | 7,852.8 | ||||||||
| Total capitalization | 23,490.9 | ||||||||
| Less: Cash and cash equivalents (excluding restricted cash) | (89.1 | ) | |||||||
| Enterprise Value(b) | $ | 23,401.8 | |||||||
| Debt | Weighted Average Maturity (in years)* | Debt Outstanding | |||||||
| Mortgage loans payable | 8.7 | $ | 3,452.0 | ||||||
| Secured borrowings on collateralized receivables(c) | 13.7 | 54.3 | |||||||
| Unsecured debt | 4.7 | 4,346.5 | |||||||
| Total carrying value of debt, per consolidated balance sheet | 6.5 | 7,852.8 | |||||||
| Plus: Unamortized deferred financing costs and discounts / premiums on debt | 37.4 | ||||||||
| Total Debt | $ | 7,890.2 | |||||||
| 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 the Company's securities outstanding.
(b) Refer to "Enterprise Value" within Definitions and Notes for additional information.
(c) Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information.
Summary of Outstanding Debt
(amounts in millions, except for *)
| Quarter Ended | ||||||||
| June 30, 2024 | ||||||||
| Debt Outstanding | Weighted Average Interest Rate(a)* | Maturity Date* | ||||||
| Secured Debt: | ||||||||
| Mortgage loans payable | $ | 3,452.0 | 4.00 | % | Various | |||
| Secured borrowings on collateralized receivables(b) | 54.3 | 8.59 | % | Various | ||||
| Total Secured Debt | 3,506.3 | 4.07 | % | |||||
| Unsecured Debt: | ||||||||
| Senior Credit Facility: | ||||||||
| Revolving credit facilities (in USD)(c) | 1,671.9 | 5.19 | % | April 2026 | ||||
| Senior Unsecured Notes: | ||||||||
| 2028 senior unsecured notes | 447.1 | 2.30 | % | November 2028 | ||||
| 2029 senior unsecured notes | 495.8 | 5.55 | % | January 2029 | ||||
| 2031 senior unsecured notes | 743.0 | 2.70 | % | July 2031 | ||||
| 2032 senior unsecured notes | 592.8 | 3.59 | % | April 2032 | ||||
| 2033 senior unsecured notes | 395.9 | 5.51 | % | January 2033 | ||||
| Total Senior Unsecured Notes | 2,674.6 | 3.78 | % | |||||
| Total Unsecured Debt | 4,346.5 | 4.32 | % | |||||
| Total carrying value of debt, per consolidated balance sheets | 7,852.8 | 4.21 | % | |||||
| Plus: Unamortized deferred financing costs, discounts / premiums on debt, and fair value adjustments(a) | 37.4 | |||||||
| Total debt | $ | 7,890.2 | ||||||
(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 June 30, 2024, the Company's revolving credit facilities consisted of:
- $228.0 million borrowed on its U.S. line of credit at the Secured Overnight Financing Rate ("SOFR") plus 85 basis points margin. As of June 30, 2024, $150.0 million was swapped to a weighted average fixed SOFR rate of 4.757% for an all-in fixed rate of 5.707%.
- $1.4 billion (£1.1 billion) borrowed on its GBP and multicurrency lines of credit at the Daily Sterling Overnight Index Average ("SONIA") base rate, plus 85 basis points margin. As of June 30, 2024, $