Maryland
|
1-12616
|
38-2730780
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
27777 Franklin Rd.
|
||
Suite 200
|
||
Southfield, Michigan
|
48034
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(248) 208-2500
|
|
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Description.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits.
|
99.1
|
Press Release issued April 28, 2011
|
SUN COMMUNITIES, INC.
|
|||
Dated: April 28, 2011
|
By:
|
/s/ Karen J. Dearing
|
|
Karen J. Dearing, Executive Vice President,
Chief Financial Officer, Secretary and Treasurer
|
EXHIBIT #
|
DESCRIPTION
|
|
99.1
|
Press Release issued April 28, 2011
|
|
Ø
|
Funds from Operations (“FFO”)(1) excluding certain items described in this release was $19.0 million compared to $17.7 million in the first quarter of 2010, an increase of 1.3 million or 7.3 percent.
|
Ø
|
Same Site Net Operating Income (“NOI”)(2) increased by 4.2 percent.
|
Ø
|
Total revenues were $69.6 million, up $2.2 million or 3.3 percent.
|
Ø
|
Home sales increased 9.8 percent, from 325 units to 357 units.
|
(1)
|
Funds from operations (“FFO”) is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (loss) (computed in accordance with generally accepted accounting principles “GAAP”), excluding gains (or losses) from sales of depreciable operating property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company’s operating performance. Management generally considers FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not readily apparent from net income. Management believes that the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful.
|
(2)
|
Investors in and analysts following the real estate industry utilize NOI as a supplemental performance measure. NOI is derived from revenues minus property operating expenses and real estate taxes. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. The Company believes that net income (loss) is the most directly comparable GAAP measurement to NOI. Net income (loss) includes interest and depreciation and amortization which often have no effect on the market value of a property and therefore limit its use as a performance measure. In addition, such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset. The Company believes that NOI is helpful to investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. The Company uses NOI as a key management tool when evaluating performance and growth of particular properties and/or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense, and non-property specific expenses such as general and administrative expenses, all of which are significant costs, and therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.
|
(Unaudited)
|
||||||||
March 31, 2011
|
December 31, 2010
|
|||||||
ASSETS
|
||||||||
Investment property, net
|
$
|
1,026,767
|
$
|
1,032,326
|
||||
Cash and cash equivalents
|
4,857
|
8,420
|
||||||
Inventory of manufactured homes
|
3,140
|
2,309
|
||||||
Notes and other receivables
|
94,448
|
88,807
|
||||||
Other assets
|
30,863
|
30,829
|
||||||
TOTAL ASSETS
|
$
|
1,160,075
|
$
|
1,162,691
|
||||
LIABILITIES
|
||||||||
Debt
|
$
|
1,172,966
|
$
|
1,163,612
|
||||
Lines of credit
|
62,889
|
94,527
|
||||||
Other liabilities
|
35,922
|
36,936
|
||||||
TOTAL LIABILITIES
|
$
|
1,271,777
|
$
|
1,295,075
|
||||
Commitments and contingencies
|
||||||||
STOCKHOLDERS’ DEFICIT
|
||||||||
Preferred stock, $0.01 par value, 10,000 shares authorized, none issued
|
$
|
-
|
$
|
-
|
||||
Common stock, $0.01 par value, 90,000 shares authorized (March 31, 2011 and December 31, 2010, 22,722 and 21,716 shares issued respectively)
|
227
|
217
|
||||||
Additional paid-in capital
|
527,437
|
495,331
|
||||||
Accumulated other comprehensive loss
|
(1,860
|
)
|
(2,226
|
)
|
||||
Distributions in excess of accumulated earnings
|
(560,335
|
)
|
(549,625
|
)
|
||||
Treasury stock, at cost (March 31, 2011 and December 31, 2010, 1,802 shares)
|
(63,600
|
)
|
(63,600
|
)
|
||||
Total Sun Communities, Inc. stockholders' deficit
|
(98,131
|
)
|
(119,903
|
)
|
||||
Noncontrolling interests
|
(13,571
|
)
|
(12,481
|
)
|
||||
TOTAL STOCKHOLDERS’ DEFICIT
|
(111,702
|
)
|
(132,384
|
)
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
1,160,075
|
$
|
1,162,691
|
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
REVENUES
|
||||||||
Income from real property
|
$
|
53,836
|
$
|
52,007
|
||||
Revenue from home sales
|
8,235
|
8,037
|
||||||
Rental home revenue
|
5,330
|
5,079
|
||||||
Ancillary revenues, net
|
294
|
226
|
||||||
Interest
|
2,068
|
1,796
|
||||||
Other (loss) income, net
|
(171
|
)
|
272
|
|||||
Total revenues
|
69,592
|
67,417
|
||||||
COSTS AND EXPENSES
|
||||||||
Property operating and maintenance
|
13,458
|
13,040
|
||||||
Real estate taxes
|
4,115
|
4,180
|
||||||
Cost of home sales
|
6,491
|
6,244
|
||||||
Rental home operating and maintenance
|
3,673
|
3,623
|
||||||
General and administrative - real property
|
4,478
|
3,490
|
||||||
General and administrative - home sales and rentals
|
1,973
|
1,933
|
||||||
Acquisition related costs
|
249
|
-
|
||||||
Depreciation and amortization
|
16,557
|
16,573
|
||||||
Interest
|
15,406
|
15,105
|
||||||
Interest on mandatorily redeemable debt
|
826
|
817
|
||||||
Total expenses
|
67,226
|
65,005
|
||||||
Income before income taxes and equity income (loss) from affiliates
|
2,366
|
2,412
|
||||||
Provision for state income taxes
|
(131
|
)
|
(132
|
)
|
||||
Equity income (loss) from affiliates
|
350
|
(819
|
)
|
|||||
Net income
|
2,585
|
1,461
|
||||||
Less: amounts attributable to noncontrolling interests
|
185
|
124
|
||||||
Net income attributable to Sun Communities, Inc. common stockholders
|
$
|
2,400
|
$
|
1,337
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
20,808
|
18,842
|
||||||
Diluted
|
22,902
|
20,984
|
||||||
Earnings per share:
|
||||||||
Basic
|
$
|
0.12
|
$
|
0.07
|
||||
Diluted
|
$
|
0.11
|
$
|
0.07
|
||||
Cash dividends per common share:
|
$
|
0.63
|
$
|
0.63
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$
|
2,585
|
$
|
1,461
|
||||
Adjustments:
|
||||||||
Depreciation and amortization
|
16,897
|
17,034
|
||||||
Gain on disposition of assets, net
|
(686
|
)
|
(849
|
)
|
||||
Funds from operations (FFO)(1)
|
$
|
18,796
|
$
|
17,646
|
||||
Weighted average Common Shares/OP Units outstanding:
|
||||||||
Basic
|
22,889
|
20,981
|
||||||
Diluted
|
22,902
|
20,984
|
||||||
FFO(1) per weighted average Common Share/OP Unit - Basic
|
$
|
0.82
|
$
|
0.84
|
||||
FFO(1) per weighted average Common Share/OP Unit - Diluted
|
$
|
0.82
|
$
|
0.84
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$
|
2,585
|
$
|
1,461
|
||||
Michigan Business tax reversal
|
-
|
(740
|
)
|
|||||
Equity affiliate adjustment (3)
|
-
|
819
|
||||||
Acquisition related costs
|
249
|
-
|
||||||
Benefit for state income taxes (4)
|
(9
|
)
|
(11
|
)
|
||||
Adjusted net income
|
2,825
|
1,529
|
||||||
Depreciation and amortization
|
16,897
|
17,034
|
||||||
Gain on disposition of assets, net
|
(686
|
)
|
(849
|
)
|
||||
Adjusted funds from operations (FFO)(1)
|
$
|
19,036
|
$
|
17,714
|
||||
Adjusted FFO(1) per weighted average Common Share/OP Unit - Diluted
|
$
|
0.83
|
$
|
0.84
|
(3)
|
This amount represents our equity loss from affiliates in 2010. Origen declared a cash dividend of $0.4 million which remains in 2011 Adjusted FFO.
|
(4)
|
The tax benefit for the periods ended March 31, 2011 and 2010 represents the reversal of the Michigan Business Tax provision previously recorded. These taxes do not impact Adjusted FFO and would be payable from prospective proceeds of such sales.
|
Three Months Ended March 31,
|
||||||||||||||||
2011
|
2010
|
Change
|
% Change
|
|||||||||||||
REVENUES:
|
||||||||||||||||
Income from real property
|
$
|
50,664
|
$
|
49,134
|
$
|
1,530
|
3.1
|
%
|
||||||||
PROPERTY OPERATING EXPENSES:
|
||||||||||||||||
Payroll and benefits
|
3,964
|
3,823
|
141
|
3.7
|
%
|
|||||||||||
Legal, taxes, & insurance
|
701
|
610
|
91
|
14.9
|
%
|
|||||||||||
Utilities
|
3,131
|
3,479
|
(348
|
)
|
-10.0
|
%
|
||||||||||
Supplies and repair
|
1,443
|
1,300
|
143
|
11.0
|
%
|
|||||||||||
Other
|
1,047
|
955
|
92
|
9.6
|
%
|
|||||||||||
Real estate taxes
|
4,115
|
4,180
|
(65
|
)
|
-1.6
|
%
|
||||||||||
Property operating expenses
|
14,401
|
14,347
|
54
|
0.4
|
%
|
|||||||||||
NET OPERATING INCOME ("NOI") (2)
|
$
|
36,263
|
$
|
34,787
|
$
|
1,476
|
4.2
|
%
|
As of March 31,
|
||||||||||||
2011
|
2010
|
Change
|
||||||||||
OTHER INFORMATION
|
||||||||||||
Number of properties
|
136
|
136
|
-
|
|||||||||
Developed sites
|
47,684
|
47,566
|
118
|
|||||||||
Occupied sites (5)
|
38,641
|
38,177
|
464
|
|||||||||
Occupancy % (5)
|
84.6
|
%
|
83.9
|
%
|
0.7
|
%
|
||||||
Weighted average monthly rent per site (6)
|
$
|
418
|
$
|
407
|
11
|
|||||||
Sites available for development
|
5,439
|
5,588
|
(149
|
)
|
(5)
|
Occupied sites and occupancy % include manufactured housing and permanent recreational vehicle sites, and exclude seasonal recreational vehicle sites.
|
(6)
|
Average rent relates only to manufactured housing sites, and excludes permanent and seasonal recreational vehicle sites.
|
Three Months Ended March 31,
|
||||||||||||||||
2011
|
2010
|
Change
|
% Change
|
|||||||||||||
REVENUES:
|
||||||||||||||||
Rental home revenue
|
$
|
5,330
|
$
|
5,079
|
$
|
251
|
4.9
|
%
|
||||||||
Site rent included in income from real property
|
7,572
|
7,016
|
556
|
7.9
|
%
|
|||||||||||
Rental program revenue
|
12,902
|
12,095
|
807
|
6.7
|
%
|
|||||||||||
EXPENSES:
|
||||||||||||||||
Payroll and commissions
|
472
|
500
|
(28
|
)
|
-5.6
|
%
|
||||||||||
Repairs and refurbishment
|
1,806
|
1,604
|
202
|
12.6
|
%
|
|||||||||||
Taxes and insurance
|
736
|
783
|
(47
|
)
|
-6.0
|
%
|
||||||||||
Marketing and other
|
659
|
736
|
(77
|
)
|
-10.5
|
%
|
||||||||||
Rental program operating and maintenance
|
3,673
|
3,623
|
50
|
1.4
|
%
|
|||||||||||
NET OPERATING INCOME ("NOI") (2)
|
$
|
9,229
|
$
|
8,472
|
$
|
757
|
8.9
|
%
|
||||||||
Occupied rental home information as of March 31, 2011 and 2010:
|
||||||||||||||||
Number of occupied rentals, end of period*
|
6,235
|
5,950
|
285
|
4.8
|
%
|
|||||||||||
Investment in occupied rental homes
|
$
|
203,280
|
$
|
188,737
|
$
|
14,543
|
7.7
|
%
|
||||||||
Number of sold rental homes*
|
216
|
178
|
38
|
21.3
|
%
|
|||||||||||
Weighted average monthly rental rate*
|
$
|
741
|
$
|
729
|
$
|
12
|
1.6
|
%
|
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