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Sun Communities, Inc. Reports 2022 Third Quarter Results

     

Diluted Earnings per Share of $1.32
Constant Currency Core FFO(1) per Diluted Share of $2.71 Exceeded Guidance

     

Strong Demand and Accretive Investments Drive Continued Solid Performance
Record Volume of Transient-to-Annual RV Conversions Propel Gains in Revenue Producing Sites

Manufactured Housing & RV Same Property(2) NOI(1) in the Quarter Increased 6.4 Percent
as Compared to Prior Year

Marina Same Property NOI(1) in the Quarter Increased 9.6 Percent as Compared to Prior Year

     

Increasing Full-Year Guidance for Constant Currency Core FFO(1)

Providing Preliminary Guidance for 2023 Rental Rate Increases for MH, Annual RV and Marina

     

Southfield, MI, Oct. 24, 2022 (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 third quarter results for 2022.

Financial Results for the Quarter and Nine Months Ended September 30, 2022

  • For the quarter ended September 30, 2022, net income attributable to common shareholders was $162.6 million, or $1.32 per diluted share, compared to net income attributable to common shareholders of $231.7 million, or $2.00 per diluted share, for the same period in 2021.

  • For the nine months ended September 30, 2022, net income attributable to common shareholders was $237.3 million, or $1.97 per diluted share, compared to net income attributable to common shareholders of $367.3 million, or $3.27 per diluted share, for the same period in 2021.

Non-GAAP Financial Measures and Portfolio Performance

  • Constant Currency Core Funds from Operations ("Constant Currency Core FFO")(1) for the quarter and nine months ended September 30, 2022, was $2.71 per common share and dilutive convertible securities ("Share") and $6.11 per Share, respectively, representing 28.4 percent and 17.5 percent increases, respectively, as compared to the corresponding periods in 2021.

  • Core Funds from Operations ("Core FFO")(1) for the quarter and nine months ended September 30, 2022, was $2.65 per Share and $6.04 per Share, respectively, representing 25.6 percent and 16.2 percent increases, respectively, as compared to the corresponding periods in 2021.

  • Same Property(2) Net Operating Income ("NOI")(1) for MH and RV properties increased by 6.4 percent and 5.8 percent for the quarter and nine months ended September 30, 2022, respectively, as compared to the corresponding periods in 2021. For the Company's Marina properties, Same Property NOI(1) increased by 9.6 percent and 6.8 percent for the quarter and nine months ended September 30, 2022, respectively, as compared to the corresponding periods in 2021.

  • Acquisitions totaled $213.9 million during the quarter ended September 30, 2022, including one MH community in the United Kingdom ("UK") and one marina in the United States.

"Our strong third quarter results highlight the sustained compelling attributes of the Sun platform, including a best-in-class portfolio of assets in high-demand locations and operational execution that is second to none," said Gary A. Shiffman, Chairman and CEO. "We delivered strong growth in each of our segments, and earnings that exceeded our expectations. With stable high occupancy in our Manufactured Housing portfolio, we are anticipating solid rental rate increases. Strong demand in RV has driven record conversions to annual sites, and over 85 percent of our marinas have wait lists to join as a member." Mr. Shiffman continued, "We have a long-term track record of execution and a business model that is positioned to perform and create value through varying economic cycles."

OPERATING HIGHLIGHTS

Portfolio Occupancy

  • Total MH and annual RV occupancy (excluding UK Operations) was 97.1 percent at September 30, 2022 as compared to 97.4 percent at September 30, 2021.

  • During the quarter ended September 30, 2022, the number of MH and annual RV revenue producing sites increased by 689 sites as compared to an increase of 576 sites during the corresponding period in 2021, a 19.6 percent increase. Transient RV site conversions to annual leases accounted for 82 percent of the increase in the quarter.

  • During the nine months ended September 30, 2022, MH and annual RV revenue producing sites increased by 2,309 sites as compared to an increase of 1,673 sites during the corresponding period in 2021, a 38.0 percent increase. Transient RV site conversions to annual leases accounted for 86 percent of the increase during the nine months ended September 30, 2022. Additionally, the 1,990 site conversions in transient RV for the nine months ended September 30, 2022 have already surpassed the record full-year volume achieved during 2021.

Same Property Results

  • MH and RV - For the 424 MH and RV properties owned and operated by the Company since at least January 1, 2021, the following table reflects the percentage increases / (decreases), both in total and by segment, for the quarter and nine months ended September 30, 2022:

 Quarter Ended September 30, 2022
 Total MH and RV
Same Property(2)
 MH
Same Property(2)
 RV
Same Property(2)
Revenue        4.7        %         4.6        %         4.8        %
Expense        1.0        %         3.7        %         (1.1)        %
NOI(1)        6.4        %         4.9        %         8.4        %


 Nine Months Ended September 30, 2022
 Total MH and RV Same Property(2) MH
Same Property(2)
 RV
Same Property(2)
Revenue        6.0        %         4.5        %         8.3        %
Expense        6.3        %         6.8        %         5.9        %
NOI(1)        5.8        %         3.7        %         9.9        %

Same Property(2) adjusted occupancy(3) increased to 98.5 percent at September 30, 2022 from 96.5 percent at September 30, 2021, an increase of 200 basis points.

  • Marina - For the 101 Marina properties owned and operated by the Company since at least January 1, 2021, the following table reflects the percentage increases for the quarter and nine months ended September 30, 2022:

 Quarter Ended September 30, 2022 Nine Months Ended September 30, 2022
Revenue        6.5        %         6.7        %
Expense        —        %         6.3        %
NOI(1)        9.6        %         6.8        %

UK Operations Results

UK Operations, a component of the Company's MH segment, contributed $64.5 million of NOI(1) in the quarter ended September 30, 2022, and contributed $105.0 million of NOI(1) in the period from date of acquisition to September 30, 2022. On a constant currency basis, UK Operations contributed $73.3 million of NOI(1) in the quarter ended September 30, 2022, and contributed $116.9 million of NOI(1) in the period from date of acquisition to September 30, 2022. Refer to page 13 for additional information regarding UK operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended September 30, 2022, the Company acquired two properties totaling 612 sites, wet slips and dry storage spaces and 1,060 sites for expansion for a total purchase price of $213.9 million. During the quarter ended September 30, 2022, the Company sold an RV community located in California with 514 sites for $15.0 million, bringing year-to-date dispositions to $44.5 million.

Refer to page 15 for additional detail on acquisitions and dispositions.

Development and Expansion Activities

During and subsequent to the quarter ended September 30, 2022, the Company acquired four land parcels located in the United States and UK for the potential development of nearly 800 sites, for an aggregate purchase price of $20.0 million. During the quarter and nine months ended September 30, 2022, the Company completed the construction of over 170 sites and over 300 sites, respectively, at two ground-up developments and six expansion properties.

Impact of Hurricane Ian

On September 28, 2022, Hurricane Ian made landfall on Florida's western coast. The storm primarily affected four properties in the Fort Myers area. Three RV properties, comprising approximately 2,500 sites, sustained significant flooding and wind damage from the hurricane, and the sea wall and certain docks at one marina were damaged. At other affected MH and RV properties, most of the damage was limited to trees, roofs, fences, skirting and carports. At other affected marina properties, docks, buildings, and landscaping sustained limited wind and water damage.

The Company recognized $29.9 million for impaired assets. The Company expects these charges to be partially offset by insurance recoveries, currently estimated at $17.7 million. The estimated net charges of $12.2 million are classified as Catastrophic event-related charges, net, in the Consolidated Statements of Operations. The Company maintains property, casualty, flood and business interruption insurance for its properties, subject to customary deductibles and limits. Expected insurance recoveries for loss of income and redevelopment costs greater than the impairment charges cannot be estimated at this time.

The foregoing impairment, expected insurance recovery, and net charge estimates are based on current information available, and the Company continues to assess these estimates. The actual final impairment, insurance recoveries and net charges could vary significantly from these estimates. Any changes to these estimates will be recognized in the period(s) in which they are determined.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of September 30, 2022, the Company had $6.7 billion in debt outstanding with a weighted average interest rate of 3.4 percent and a weighted average maturity of 8.8 years. At September 30, 2022, the Company's net debt to trailing twelve-month Recurring EBITDA(1) ratio was 5.7 times.

During the quarter ended September 30, 2022, the Company repaid $318.0 million of term loans collateralized by 35 properties. These loans had a weighted average interest rate of 4.8 percent and were set to mature from December 2022 through September 2024.

Additionally, the Company has negotiated fixed rate mortgages with an existing lender on certain properties with existing loans that have low loan-to-value ratios and are scheduled to mature between 2026 and 2029. The additional financings are expected to close before year-end and provide proceeds to the Company of approximately $310.0 million. The Company intends to use the proceeds to repay borrowings outstanding under its senior credit facility.

Derivative Transactions

As previously announced, during the quarter ended September 30, 2022, the Company entered into interest rate swap agreements to hedge variable rate borrowings of £400.0 million (equivalent to $445.3 million as of September 30, 2022) under its senior credit facility's term loan. The interest rate swaps locked in a total fixed rate, inclusive of spread, of 3.67 percent through the term loan's maturity date of April 2025.

Equity Transactions

During the quarter ended September 30, 2022, the Company settled all outstanding forward sale agreements with respect to 1.5 million shares of common stock under its at the market offering program. Net proceeds from the settlement of these forward sale agreements of $275.5 million were used to repay borrowings outstanding under the Company's senior credit facility.

GUIDANCE

Updating Full-Year 2022 and Establishing Fourth Quarter 2022 Guidance

The Company is updating its full-year guidance for diluted EPS and Constant Currency Core FFO(1) per Share to reflect performance through September 30, 2022 and management's expectations for the remainder of the year:

  • The Company is revising its full-year guidance for diluted EPS from the prior range of $1.91 - $2.01 to a new range of $1.96 - $2.02.
  • The Company is revising its full-year guidance for Constant Currency Core FFO(1) per Share from $7.22 - $7.32 to a new range of $7.32 - $7.38, representing an $0.08 cent increase at the midpoint.
  • The Company is establishing fourth quarter 2022 guidance for diluted EPS and Constant Currency Core FFO(1) per Share of $0.02 - $0.08 and $1.23 - $1.29, respectively.

The table below provides a reconciliation from diluted EPS to Constant Currency Core FFO(1) per Share for the full-year and fourth quarter ending December 31, 2022, as follows:

Reconciliation of Diluted EPS to Core FFO(1) per Share and Constant Currency Core FFO(1) per Share Previous Range
FY 2022E
 Revised Range
FY 2022E
 4Q 2022E
Diluted EPS $        1.91          $        2.01          $        1.96          $        2.02          $        0.02          $        0.08         
Depreciation and amortization          4.94                   4.94                   4.85                   4.85                   1.25                   1.25         
Gain on sale of assets          (0.51)          (0.51)          (0.51)          (0.51)          (0.06)          (0.06)
Business combination expense and other acquisition related costs          0.19                   0.19                   0.30                   0.30                   0.01                   0.01         
Other adjustments(a)          0.64                   0.64                   0.64                   0.64                   0.01                   0.01         
Core FFO(1) per Share $        7.17          $        7.27          $        7.24          $        7.30          $        1.23          $        1.29         
Constant currency adjustment(b)          0.05                   0.05                   0.08                   0.08                   —                   —         
Constant Currency Core FFO(1) per Share $        7.22          $        7.32          $        7.32          $        7.38          $        1.23          $        1.29         

(a) Other adjustments include the same categories presented in the table that reconciles Net income attributable to SUI common shareholders to FFO on page 7.

(b) The Company calculates the foreign currency translation impact by comparing the foreign currency exchange rate used for guidance of 1.1133 USD per GBP in effect on September 30, 2022 with the weighted average foreign currency exchange rate of 1.330 USD per GBP used to establish guidance in April 2022. The impact of fluctuations in Canadian and Australian foreign currency rates on revised or initial guidance are not material.

The Company calculates diluted EPS, Core FFO(1) per Share and Constant Currency Core FFO(1) per Share independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation.

Same Property NOI(1) Growth

The Company is updating its expectations for Same Property NOI(1) Growth for the remainder of the year as follows:

  Previous Range Revised Range Guidance Range
  FY 2022E FY 2022E 4Q 2022E
MH and RV Same Property(2) NOI(1) growth 6.0% - 6.8% 5.8% - 6.2% 6.0% - 7.2%
Marina Same Property NOI(1) growth 6.0% - 6.8% 6.4% - 6.8% 5.3% - 6.8%

UK Operations - Guidance

The Company's UK Operations are a component of its MH reporting segment. The Company is establishing NOI(1) guidance for its UK Operations for the fourth quarter ending December 31, 2022, as shown in the table below. These expectations are incorporated into the Company's Core FFO(1) per Share and Constant Currency Core FFO(1) per Share guidance and seasonality figures.

  Three Months Ending
($ in millions) December 31, 2022
UK Operations NOI(1) $23.8 - $25.0
UK Operations NOI(1) - Constant Currency(a) $28.3 - $29.8

(a) For UK operations, the Company calculates the foreign currency exchange rate translation impact by comparing the foreign currency exchange rate for guidance of 1.1133 USD per GBP in effect on September 30, 2022, with the weighted average foreign currency exchange rate of 1.330 USD per GBP used to establish guidance in April 2022.

Preliminary 2023 Rental Rate Growth Assumptions

The Company has sent notices to MH and annual RV residents and Marina members, and expects the following rental rate increases for 2023:

2023 Average Rental Rate Increases Average
Rental Increases
Manufactured Housing 6.2% - 6.4%
Annual RV 7.7% - 7.9%
Marina 7.3% - 7.6%
UK Operations 7.2% - 7.4%

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 and capital markets activity completed through October 24, 2022 and the approximately $310.0 million of debt financing in progress, referred to on page v. These estimates exclude all other prospective acquisitions 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 third quarter results will be held on Tuesday, October 25, 2022 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through November 8, 2022 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 13732466. The conference call will be available live on Sun Communities' website located at www.suncommunities.com. The replay will also be available on the website.

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 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, 2021 and in the Company's other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

  • Outbreaks of disease, including the COVID-19 pandemic, and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations;
  • Changes in general economic conditions, including inflation, deflation, and energy costs, the real estate industry and the markets in which the Company operates;
  • Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
  • The Company's liquidity and refinancing demands;
  • The Company's ability to obtain or refinance maturing debt;
  • The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes;
  • Availability of capital;
  • Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pounds 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;
  • Increases in interest rates and operating costs, including insurance premiums and real property taxes;
  • The Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
  • Increases in interest rates and operating costs, including insurance premiums and real property taxes;
  • Risks related to natural disasters such as hurricanes, earthquakes, floods, 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;
  • 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. (the "Company" or "SUI") 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 September 30, 2022, the Company owned, operated, or had an interest in a portfolio of 662 developed MH, RV and Marina properties comprising over 180,500 developed sites and over 46,100 wet slips and dry storage spaces in 39 states, the United Kingdom, Canada and Puerto Rico.

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

Company Contacts 
  
Management:Investor Relations:
  • Gary A. Shiffman, Chairman and CEO
Sara Ismail, Vice President
  • John B. McLaren, President and COO
(248) 208-2500
  • Fernando Castro-Caratini, EVP and CFO
investorrelations@suncommunities.com
  • Bruce D. Thelen, EVP of Operations and Sales
 


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 Nicholas Joseph nicholas.joseph@citi.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
Wolfe Research Andrew Rosivach arosivach@wolferesearch.com
  Keegan Carl kcarl@wolferesearch.com

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

 


 Quarter Ended
 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021
Financial Information         
Basic EPS*$        1.32         $        0.61         $        0.01         $        0.11         $        2.00        
Diluted EPS*$        1.32         $        0.61         $        0.01         $        0.11         $        2.00        
          
Cash distributions declared per common share*$        0.88         $        0.88         $        0.88         $        0.83         $        0.83        
          
FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per Share*$        2.54         $        1.95         $        1.28         $        1.28         $        1.92        
Core FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per Share*$        2.65         $        2.02         $        1.34         $        1.31         $        2.11        
Constant Currency Core FFO Attributable to SUI common shareholders and dilutive convertible securities(1)(4) per Share*$        2.71         $        2.04         $        1.34         $        1.31         $        2.11        
          
Recurring EBITDA(1) $        408.1         $        328.4         $        221.0         $        208.6         $        314.5        
Recurring EBITDA(1) (TTM) / Interest5.7x 5.9x 6.2x 6.2x 6.1x
          
Balance Sheet         
Total assets$        16,484.6         $        16,397.8         $        13,914.2         $        13,494.1         $        12,583.3        
Total debt$        6,711.0         $        6,930.9         $        6,076.5         $        5,671.8         $        4,689.4        
Total liabilities$        8,354.6         $        8,566.3         $        6,980.7         $        6,474.6         $        5,488.5        


 Quarter Ended
 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021
Operating Information*         
Properties        662          661          603          602          584 
          
United States and Canada         
Manufactured home sites        99,428          99,185          98,279          98,621          98,301 
Annual RV sites        32,026          31,768          31,121          30,540          29,640 
Transient RV sites        27,945          28,682          29,267          29,847          27,922 
Total sites        159,399          159,635          158,667          159,008          155,863 
Marina wet slips and dry storage spaces(a)        46,185          45,905          45,725          45,155          43,615 
          
MH occupancy        96.2        %         96.3        %         96.7        %         96.6        %         96.6        %
Annual RV occupancy        100.0        %         100.0        %         100.0        %         100.0        %         100.0        %
Blended MH and annual RV occupancy        97.1        %         97.2        %         97.5        %         97.4        %         97.4        %
          
United Kingdom         
Manufactured home sites        17,952          17,330          616  N/A N/A
Transient RV sites        3,246          3,349          —          N/A N/A
Total sites        21,198          20,679          616          —                  —         
MH occupancy        91.7        %         91.4        %         94.8        % N/A N/A


 Quarter Ended
 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021
MH and RV Revenue Producing Site Net Gains(5)(b)*         
MH net leased sites        122         132         65                 321         144
RV net leased sites        567         818         605                 489         432
Total net leased sites        689         950         670                 810         576

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

(b) These figures do not include UK operations net leased sites.

Portfolio Overview as of September 30, 2022

 


  MH & RV Properties(6)
  Properties

 MH & Annual RV Sites RV Transient Sites

 Sites for Development(b)

 Total MH and RV Sites

Location  Sites Occupancy %(a)   
Florida         129                 41,417                 98.2        %         5,077                 1,310                 46,494        
Michigan         84                 32,465                 96.2        %         755                 1,448                 33,220        
California         37                 6,864                 98.5        %         1,936                 942                 8,800        
Texas         31                 8,665                 94.2        %         2,408                 2,266                 11,073        
Ontario, Canada         16                 4,605                 100.0        %         634                 1,486                 5,239        
Connecticut         16                 1,907                 93.1        %         98                 —                 2,005        
Maine         15                 2,300                 96.0        %         1,130                 180                 3,430        
Arizona         13                 4,453                 91.5        %         1,050                 6                 5,503        
Indiana         12                 3,186                 96.6        %         990                 177                 4,176        
New Jersey         11                 2,845                 100.0        %         1,195                 262                 4,040        
Colorado         10                 2,553                 96.1        %         987                 1,739                 3,540        
Virginia         10                 1,283                 99.7        %         2,167                 752                 3,450        
New York         10                 1,496                 98.3        %         1,645                 778                 3,141        
New Hampshire         10                 1,741                 99.8        %         655                 111                 2,396        
Ohio         9                 2,810                 97.9        %         115                 53                 2,925        
Other         64                 12,864                 97.7        %         7,103                 1,521                 19,967        
North America Total         477                 131,454                 97.1        %         27,945                 13,031                 159,399        
United Kingdom         54                 17,952                 91.7        %         3,246                 3,047                 21,198        
Total         531                 149,406                 96.5        %         31,191                 16,078                 180,597        

(a) As of September 30, 2022, total portfolio MH occupancy was 95.5 percent inclusive of the impact of over 1,600 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(b) Total sites for development were comprised of 66.5 percent for expansion, 29.1 percent for greenfield development and 4.4 percent for redevelopment.

  Marina
  Properties

  Wet Slips and Dry Storage Spaces
Location  
Florida         20                   5,139        
Rhode Island         12                   3,421        
Connecticut         11                   3,325        
California         9                   4,133        
New York         9                   3,018        
Maryland         9                   2,608        
Massachusetts         9                   2,520        
Other         52                   22,021        
Total         131                   46,185        


  Properties

   Sites, Wet Slips and Dry Storage Spaces

     
Total Portfolio         662                   226,782        

Portfolio Overview as of September 30, 2022 (continued)

The map below provides an overview of our property locations worldwide:


Consolidated Balance Sheets
(amounts in millions)

 


 (Unaudited)  
 September 30, 2022 December 31, 2021
Assets   
Land$        4,173.1          $        2,556.3         
Land improvements and buildings         10,632.6                   9,958.3         
Rental homes and improvements         604.4                   591.7         
Furniture, fixtures and equipment         813.8                   656.4         
Investment property         16,223.9                   13,762.7         
Accumulated depreciation         (2,611.8)          (2,337.2)
Investment property, net         13,612.1                   11,425.5         
Cash, cash equivalents and restricted cash         112.0                   78.2         
Marketable securities         100.4                   186.9         
Inventory of manufactured homes         153.5                   51.1         
Notes and other receivables, net         511.0                   469.6         
Goodwill         981.5                   495.4         
Other intangible assets, net         403.2                   306.8         
Other assets, net         610.9                   480.6         
Total Assets$        16,484.6          $        13,494.1         
Liabilities   
Secured debt$        3,006.0          $        3,380.7         
Unsecured debt         3,705.0                   2,291.1         
Distributions payable         111.2                   98.4         
Advanced reservation deposits and rent         294.2                   242.8         
Accrued expenses and accounts payable         392.8                   237.5         
Other liabilities         845.4                   224.1         
Total Liabilities         8,354.6                   6,474.6         
Commitments and contingencies   
Temporary equity         206.8                   288.9         
Shareholders' Equity   
Common stock         1.2                   1.2         
Additional paid-in capital         9,536.4                   8,175.6         
Accumulated other comprehensive income / (loss)         (69.9)          3.1         
Distributions in excess of accumulated earnings         (1,628.9)          (1,556.0)
Total SUI shareholders' equity         7,838.8                   6,623.9         
Noncontrolling interests   
Common and preferred OP units         83.8                   86.8         
Consolidated entities         0.6                   19.9         
Total noncontrolling interests         84.4                   106.7         
Total Shareholders' Equity         7,923.2                   6,730.6         
Total Liabilities, Temporary Equity and Shareholders' Equity$        16,484.6          $        13,494.1         

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

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 Change % Change September 30, 2022 September 30, 2021 Change % Change
Revenues               
Real property (excluding transient)$        425.3          $        352.0          $        73.3                  20.8        % $        1,158.1          $        978.3          $        179.8                  18.4        %
Real property - transient         160.4                   126.1                   34.3                  27.2        %          303.5                   235.6                   67.9                  28.8        %
Home sales         150.7                   81.1                   69.6                  85.8        %          358.1                   215.1                   143.0                  66.5        %
Service, retail, dining and entertainment         174.2                   113.7                   60.5                  53.2        %          423.0                   271.5                   151.5                  55.8        %
Interest         11.2                   2.6                   8.6                  330.8        %          25.3                   8.0                   17.3                  216.3        %
Brokerage commissions and other, net         10.8                   8.8                   2.0                  22.7        %          27.4                   21.7                   5.7                  26.3        %
Total Revenues         932.6                   684.3                   248.3                  36.3        %          2,295.4                   1,730.2                   565.2                  32.7        %
Expenses               
Property operating and maintenance         184.7                   150.8                   33.9                  22.5        %          469.2                   375.2                   94.0                  25.1        %
Real estate tax         29.4                   24.8                   4.6                  18.5        %          83.2                   70.4                   12.8                  18.2        %
Home costs and selling         96.4                   56.5                   39.9                  70.6        %          235.2                   156.9                   78.3                  49.9        %
Service, retail, dining and entertainment         144.9                   94.5                   50.4                  53.3        %          363.3                   227.6                   135.7                  59.6        %
General and administrative         69.1                   43.2                   25.9                  60.0        %          187.0                   126.7                   60.3                  47.6        %
Catastrophic event-related charges, net         12.2                   0.3                   11.9          N/M          12.3                   3.1                   9.2                  296.8        %
Business combinations         8.4                   —                   8.4          N/A          23.9                   1.0                   22.9          N/M
Depreciation and amortization         151.3                   127.1                   24.2                  19.0        %          450.0                   378.1                   71.9                  19.0        %
Loss on extinguishment of debt         4.0                   —                   4.0          N/A          4.4                   8.1                   (3.7)         (45.7)        %
Interest         61.7                   39.0                   22.7                  58.2        %          162.2                   116.2                   46.0                  39.6        %
Interest on mandatorily redeemable preferred OP units / equity         1.0                   1.1                   (0.1)         (9.1)        %          3.1                   3.1                   —                  —        %
Total Expenses         763.1                   537.3                   225.8                  42.0        %          1,993.8                   1,466.4                   527.4                  36.0        %
Income Before Other Items         169.5                   147.0                   22.5                  15.3        %          301.6                   263.8                   37.8                  14.3        %
Gain / (loss) on remeasurement of marketable securities         (7.2)          12.0                   (19.2) N/M          (74.0)          43.2                   (117.2) N/M
Gain / (loss) on foreign currency exchanges         14.9                   (7.0)          21.9          N/M          21.7                   (7.1)          28.8          N/M
Gain / (loss) on dispositions of properties         (0.8)          108.1                   (108.9) N/M          12.5                   108.1                   (95.6)         (88.4)        %
Other income / (expense), net(7)         2.8                   (9.3)          12.1          N/M          2.6                   (10.0)          12.6          N/M
Gain / (loss) on remeasurement of notes receivable         (0.1)          0.1                   (0.2) N/M          0.1                   0.6                   (0.5)         (83.3)        %
Income from nonconsolidated affiliates         2.0                   0.9                   1.1                  122.2        %          3.8                   2.9                   0.9                  31.0        %
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates         (0.4)          (0.1)          (0.3)         (300.0)        %          0.1                   (0.1)          0.2          N/M
Current tax expense         (7.3)          (0.4)          (6.9) N/M          (12.5)          (1.4)          (11.1) N/M
Deferred tax benefit / (expense)         3.6                   (1.2)          4.8          N/M          3.9                   (1.1)          5.0          N/M
Net Income         177.0                   250.1                   (73.1)         (29.2)        %          259.8                   398.9                   (139.1)         (34.9)        %
Less: Preferred return to preferred OP units / equity interests         2.5                   3.1                   (0.6)         (19.4)        %          8.6                   9.0                   (0.4)         (4.4)        %
Less: Income attributable to noncontrolling interests         11.9                   15.3                   (3.4)         (22.2)        %          13.9                   22.6                   (8.7)         (38.5)        %
Net Income Attributable to SUI Common Shareholders$        162.6          $        231.7          $        (69.1)         (29.8)        % $        237.3          $        367.3          $        (130.0)         (35.4)        %
                
Weighted average common shares outstanding - basic(8)         122.4                   115.1                   7.3                  6.3        %          119.2                   111.7                   7.5                  6.7        %
Weighted average common shares outstanding - diluted(4)(8)         122.8                   118.1                   4.7                  4.0        %          121.9                   114.3                   7.6                  6.6        %
                
Basic earnings per share$        1.32          $        2.00          $        (0.68)         (34.0)        % $        1.98          $        3.27          $        (1.29)         (39.4)        %
Diluted earnings per share(4)$        1.32          $        2.00          $        (0.68)         (34.0)        % $        1.97          $        3.27          $        (1.30)         (39.8)        %

N/M = Percentage change is not meaningful.

N/A = Percentage change is not applicable.

Reconciliation of Net Income Attributable to SUI Common Shareholders to FFO(1)
(amounts in millions, except for per share data)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Net Income Attributable to SUI Common Shareholders$        162.6          $        231.7          $        237.3          $        367.3         
Adjustments       
Depreciation and amortization         150.8                   126.8                   448.6                   377.4         
Depreciation on nonconsolidated affiliates         —                   —                   0.1                   0.1         
(Gain) / loss on remeasurement of marketable securities         7.2                   (12.0)          74.0                   (43.2)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         0.4                   0.1                   (0.1        )          0.1         
(Gain) / loss on remeasurement of notes receivable         0.1                   (0.1)          (0.1        )          (0.6)
(Gain) / loss on dispositions of properties         0.8                   (108.1)          (12.5        )          (108.1)
Add: Returns on preferred OP units         1.3                   0.5                   9.5                   1.5         
Add: Income attributable to noncontrolling interests         10.5                   4.6                   14.1                   13.7         
Gain on dispositions of assets, net         (11.9)          (20.4)          (44.2        )          (46.2)
FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4)$        321.8          $        223.1          $        726.7          $        562.0         
        
Adjustments       
Business combination expense and other acquisition related costs(9)         19.2                   2.5                   40.1                   6.7         
Loss on extinguishment of debt         4.0                   —                   4.4                   8.1         
Catastrophic event-related charges, net         12.2                   0.3                   12.3                   3.1         
Loss of earnings - catastrophic event-related         0.2                   0.2                   0.2                   0.4         
(Gain) / loss on foreign currency exchanges         (14.9)          7.0                   (21.7        )          7.1         
Other adjustments, net(10)         (6.5)          11.4                   (5.1        )          11.5         
Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4)$        336.0          $        244.5          $        756.9          $        598.9         
Adjustment       
Foreign currency translation impact(a)         7.3                   —                   9.3                   —         
Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4)$        343.3          $        244.5          $        766.2          $        598.9         
        
Weighted Average Common Shares Outstanding - Diluted(8)         126.7                   116.0                   125.4                   115.1         
        
FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities per Share(1)(4)$        2.54          $        1.92          $        5.80          $        4.88         
        
Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities per Share(1)(4)$        2.65          $        2.11          $        6.04          $        5.20         
        
Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities per Share(1)(4)$        2.71          $        2.11          $        6.11          $        5.20         

(a) The Company calculated the foreign currency translation impact by comparing the actual weighted average foreign currency rates with the weighted average foreign currency rates used for guidance, as follows:

 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2022
 Actual Guidance Actual Guidance
U.S. Dollars per Pounds Sterling$        1.1821         $        1.330         $        1.2116         $        1.330        
U.S. Dollars per Canadian Dollars$        0.7691         $        0.770         $        0.7769         $        0.770        
U.S. Dollars per Australian Dollars$        0.6977         $        0.756         $        0.7096         $        0.756        

Reconciliation of Net Income Attributable to SUI Common Shareholders to NOI(1)
(amounts in millions)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Net Income Attributable to SUI Common Shareholders$        162.6          $        231.7          $        237.3          $        367.3         
Interest income         (11.2)          (2.6)          (25.3)          (8.0)
Brokerage commissions and other revenues, net         (10.8)          (8.8)          (27.4)          (21.7)
General and administrative         69.1                   43.2                   187.0                   126.7         
Catastrophic event-related charges, net         12.2                   0.3                   12.3                   3.1         
Business combination expense         8.4                   —                   23.9                   1.0         
Depreciation and amortization         151.3                   127.1                   450.0                   378.1         
Loss on extinguishment of debt         4.0                   —                   4.4                   8.1         
Interest expense         61.7                   39.0                   162.2                   116.2         
Interest on mandatorily redeemable preferred OP units / equity         1.0                   1.1                   3.1                   3.1         
(Gain) / loss on remeasurement of marketable securities         7.2                   (12.0)          74.0                   (43.2)
(Gain) / loss on foreign currency exchanges         (14.9)          7.0                   (21.7)          7.1         
(Gain) / loss on disposition of properties         0.8                   (108.1)          (12.5)          (108.1)
Other (income) / expense, net(7)         (2.8)          9.3                   (2.6)          10.0         
(Gain) / loss on remeasurement of notes receivable         0.1                   (0.1)          (0.1)          (0.6)
Income from nonconsolidated affiliates         (2.0)          (0.9)          (3.8)          (2.9)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         0.4                   0.1                   (0.1)          0.1         
Current tax expense         7.3                   0.4                   12.5                   1.4         
Deferred tax expense / (benefit)         (3.6)          1.2                   (3.9)          1.1         
Preferred return to preferred OP units / equity interests         2.5                   3.1                   8.6                   9.0         
Add: Income attributable to noncontrolling interests         11.9                   15.3                   13.9                   22.6         
NOI(1)$        455.2          $        346.3          $        1,091.8          $        870.4         


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Real Property NOI(1)$        371.6         $        302.5         $        909.2         $        768.3        
Home Sales NOI(1)         54.3                  24.6                  122.9                  58.2        
Service, retail, dining and entertainment NOI(1)         29.3                  19.2                  59.7                  43.9        
NOI(1)$        455.2         $        346.3         $        1,091.8         $        870.4        

Reconciliation of Net Income Attributable to SUI Common Shareholders to Recurring EBITDA(1)
(amounts in millions)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Net Income Attributable to SUI Common Shareholders$        162.6          $        231.7          $        237.3          $        367.3         
Adjustments       
Depreciation and amortization         151.3                   127.1                   450.0                   378.1         
Loss on extinguishment of debt         4.0                   —                   4.4                   8.1         
Interest expense         61.7                   39.0                   162.2                   116.2         
Interest on mandatorily redeemable preferred OP units / equity         1.0                   1.1                   3.1                   3.1         
Current tax expense         7.3                   0.4                   12.5                   1.4         
Deferred tax (benefit) / expense         (3.6)          1.2                   (3.9)          1.1         
Income from nonconsolidated affiliates         (2.0)          (0.9)          (3.8)          (2.9)
Less: (Gain) / loss on dispositions of properties         0.8                   (108.1)          (12.5)          (108.1)
Less: Gain on dispositions of assets, net         (11.9)          (20.4)          (44.2)          (46.2)
EBITDAre(1)$        371.2          $        271.1          $        805.1          $        718.1         
Adjustments       
Catastrophic event-related charges, net         12.2                   0.3                   12.3                   3.1         
Business combination expense         8.4                   —                   23.9                   1.0         
(Gain) / loss on remeasurement of marketable securities         7.2                   (12.0)          74.0                   (43.2)
(Gain) / loss on foreign currency transactions         (14.9)          7.0                   (21.7)          7.1         
Other (income) / expense, net(7)         (2.8)          9.3                   (2.6)          10.0         
(Gain) / loss on remeasurement of notes receivable         0.1                   (0.1)          (0.1)          (0.6)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates         0.4                   0.1                   (0.1)          0.1         
Preferred return to preferred OP units / equity interests         2.5                   3.1                   8.6                   9.0         
Add: Income attributable to noncontrolling interests         11.9                   15.3                   13.9                   22.6         
Plus: Gain on dispositions of assets, net         11.9                   20.4                   44.2                   46.2         
Recurring EBITDA(1) $        408.1          $        314.5          $        957.5          $        773.4         

Same Property(2) Summary - MH / RV
(amounts in millions)

 


 Three Months Ended
 Total Same Property - MH / RV MH RV
 September 30, 2022 September 30, 2021 Change % Change(a) September 30, 2022 September 30, 2021 Change % Change(a) September 30, 2022 September 30, 2021 Change % Change(a)
Financial Information                       
Revenue                       
Real property (excluding transient)$        239.5         $        225.0         $        14.5                 6.5        % $        185.7         $        177.6         $        8.1                 4.6        % $        53.8         $        47.4         $        6.4                  13.4        %
Real property - transient         107.1                  106.5                  0.6                 0.6        %          0.2                  0.2                  —                 7.5        %          106.9                  106.3                  0.6                  0.6        %
Other         16.0                  14.9                  1.1                 7.2        %          5.1                  4.9                  0.2                 3.1        %          10.9                  10.0                  0.9                  9.2        %
Total Operating         362.6                  346.4                  16.2                 4.7        %          191.0                  182.7                  8.3                 4.6        %          171.6                  163.7                  7.9                  4.8        %
Expense                       
Property Operating(11)(12)         114.3                  113.1                  1.2                 1.0        %          52.6                  50.8                  1.8                 3.7        %          61.7                  62.3                  (0.6)         (1.1)        %
Real Property NOI(1)$        248.3         $        233.3         $        15.0                 6.4        % $        138.4         $        131.9         $        6.5                 4.9        % $        109.9         $        101.4         $        8.5                  8.4        %

(a) Percentages are calculated based on unrounded numbers.

                        
 Nine Months Ended
 Total Same Property - MH / RV MH RV
 September 30, 2022 September 30, 2021 Change % Change(a) September 30, 2022 September 30, 2021 Change % Change(a) September 30, 2022 September 30, 2021 Change % Change(a)
Financial Information                       
Revenue                       
Real property (excluding Transient)$        708.3         $        666.3         $        42.0                 6.3        % $        552.3         $        528.9         $        23.4                  4.4        % $        156.0         $        137.4         $        18.6                 13.6        %
Real property - transient         211.5                  201.8                  9.7                 4.8        %          0.9                  1.2                  (0.3)         (23.5)        %          210.6                  200.6                  10.0                 4.9        %
Other         36.0                  33.8                  2.2                 6.6        %          15.4                  14.2                  1.2                  8.8        %          20.6                  19.6                  1.0                 5.0        %
Total Operating         955.8                  901.9                  53.9                 6.0        %          568.6                  544.3                  24.3                  4.5        %          387.2                  357.6                  29.6                 8.3        %
Expense                       
Property Operating(11)(12)         305.9                  287.7                  18.2                 6.3        %          149.9                  140.5                  9.4                  6.8        %          156.0                  147.2                  8.8                 5.9        %
Real Property NOI(1)$        649.9         $        614.2         $        35.7                 5.8        % $        418.7         $        403.8         $        14.9                  3.7        % $        231.2         $        210.4         $        20.8                 9.9        %

(a) Percentages are calculated based on unrounded numbers.

Same Property(2) Summary - MH / RV (Continued)
(amounts in millions)

 


 As of     
 September 30, 2022 September 30, 2021 Change % Change
Other Information       
Number of properties(a)         424                   424                   —           
        
MH occupancy         97.3        %      
RV occupancy         100.0        %      
MH & RV blended occupancy(3)         97.9        %      
        
Adjusted MH occupancy(3)         98.0        %      
Adjusted RV occupancy(3)         100.0        %      
Adjusted MH & RV blended occupancy(3)         98.5        %          96.5        %          2.0        %  
        
Sites available for development         7,920                   8,081                   (161        )  
        
Monthly base rent per site - MH$        629          $        604          $        25          4.3%(14)
Monthly base rent per site - RV(13)$        560          $        524          $        36          7.0%(14)
Monthly base rent per site - Total(13)$        613          $        585          $        28          4.7%(14)
        
Monthly base rent per site - MH Rental Program$        1,198          $        1,091          $        107                  9.8        %

(a) Financial results from properties disposed of during the year have been removed from Same Property reporting

Same Property Summary - Marina
(amounts in millions)

 


 Three Months Ended
 September 30, 2022 September 30, 2021 Change % Change(a)
Financial Information       
Revenue       
Real property (excluding transient)$        64.0         $        58.6         $        5.4                  9.1        %
Real property - transient         4.4                  5.4                  (1.0)         (17.4)        %
Other         3.9                  3.9                  —                  0.3        %
Total Operating         72.3                  67.9                  4.4                  6.5        %
Expense       
Property Operating(11)         21.9                  21.9                  —                  —        %
Real Property NOI(1)$        50.4         $        46.0         $        4.4                  9.6        %

(a) Percentages are calculated based on unrounded numbers.

        
 Nine Months Ended
 September 30, 2022 September 30, 2021 Change % Change(a)
Financial Information       
Revenue       
Real property (excluding transient)$        167.3         $        155.6         $        11.7                  7.5        %
Real property - transient         9.5                  10.4                  (0.9)         (7.8)        %
Other         9.5                  8.8                  0.7                  8.0        %
Total Operating         186.3                  174.8                  11.5                  6.7        %
Expense       
Property Operating(11)         63.5                  59.6                  3.9                  6.3        %
Real Property NOI(1)$        122.8         $        115.2         $        7.6                  6.8        %

(a) Percentages are calculated based on unrounded numbers.

        
 As of     
 September 30, 2022 September 30, 2021 Change % Change
Other Information       
Number of properties        101                 101                 —                  —        %
Wet slip and dry storage spaces        35,621                 35,744                 (123)         (0.3)        %

UK Operations Summary
(amounts in millions, except for statistical data)

 


 Three Months Ended YTD Since Acquisition
September 30, 2022

 September 30, 2022 
Financial Information   
Revenues   
Real property (excluding transient)$        21.2 $        38.1 
Real property - transient         21.8          34.7 
Other         0.4          1.0 
Total Operating         43.4          73.8 
Expenses   
Property Operating(11)         18.2          33.2 
Real Property NOI(1)         25.2          40.6 
    
Home sales   
Revenue         84.1          144.7 
Cost of home sales         43.6          75.7 
Home selling expenses         1.3          3.6 
NOI(1)         39.2          65.4 
    
Retail, dining and entertainment   
Revenue         16.3          27.8 
Expense         16.2          28.8 
Net Operating Gain / (Loss)         0.1          (1.0)
    
UK Operations NOI(1)$        64.5 $        105.0 
Adjustment   
Foreign currency translation impact         8.8          11.9 
UK Operations NOI(1) - Constant Currency$        73.3 $        116.9 
    
Other information   
Number of properties           54 
Developed sites           17,952 
Occupied sites           16,463 
Occupancy %           91.7        %
Transient sites           3,246 
Sites available for development           3,047 
    
Home Sales   
New home sales volume         319          574 
Pre-owned home sales volume         566          1,046 
Total home sales volume         885          1,620 

Acquisitions and Other Summary (excluding UK Operations)(15)
(amounts in millions, except for statistical data)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2022
Financial Information   
Revenues   
Real property (excluding transient)$        35.0 $        94.4         
Real property - transient         27.1          47.8         
Other         13.1          19.3         
Total Operating         75.2          161.5         
Expenses   
Property Operating(11)         27.5          65.6         
Real Property NOI(1)$        47.7 $        95.9         
    
Other Information   September 30, 2022
Number of properties           83         
MH and RV Developed sites           6,430         
MH and RV Occupied sites           5,260         
MH and RV Occupancy %           81.8        %
Transient sites           7,438         
Wet slips and dry storage spaces           10,564         

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 Acquired
ACQUISITIONS              
Harrison Yacht Yard(a) Marina         —                 21                 —         MD $        5.8         January
Outer Banks Marina         1                 196                 —         NC          5.0         January
Jarrett Bay Boatworks Marina         1                 12                 —         NC          51.4         February
Tower Marine Marina         1                 446                 —         MI          20.0         March
Sandy Bay MH         1         730 456 UK          183.5         March
First Quarter 2022           4                 1,405                 456           $        265.7          
               
Park Holidays(b) MH         40                 15,906                 1,140         UK $        1,242.1         April
Christies Parks(a) MH         —                 249                 —         UK          10.1         April
Bluewater Marina         1                 200                 —         Multiple          25.0         April
Bluewater Yacht Sales(a) Marina         —                 —                 —         Multiple          17.6         April
Bodmin Holiday Park MH         1                 69                 —         UK          12.6         April
Kittery Point Marina         1                 62                 —         ME          7.9         May
Spanish Trails MHC MH         1                 195                 6         AZ          20.6         June
Pine Acre Trails MH         1                 251                 603         TX          29.7         June
Bel Air Estates & Sunrise Estates MH         2                 379                 —         CA          40.0         June
Park Leisure MH         11                 2,914                 391         UK          223.4         June
Second Quarter 2022           58                 20,225                 2,140           $        1,629.0          
               
Montauk Yacht Club Marina         1                 232                 —         NY $        190.0         July
Callaly Leisure(c) MH         1                 380                 1,060         UK          23.9         September
Third Quarter 2022           2                 612                 1,060           $        213.9          
               
Acquisitions to Date           64         22,242                 3,656           $        2,108.6          
               
DISPOSITIONS              
Southern Pines MH         1                 107                 —         FL $        10.0         March
New Ranch MH         1                 94                 —         FL          8.2         March
Country Squire MH / RV         1                 122                 —         FL          11.3         March
First Quarter 2022           3                 323                            $        29.5          
               
The Sands RV & Golf Course RV         1                 514                 —         CA $        15.0         September
Third Quarter 2022           1                 514                            $        15.0          
               
Dispositions to Date           4                 837                            $        44.5          

(a) Combined with an existing property.

(b) Provides third-party management for two properties.

(c) Contains one development property.

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

 


  Nine Months Ended Year Ended
  September 30, 2022 December 31, 2021 December 31, 2020
  MH / RV Marina MH / RV Marina MH / RV Marina
Financial information            
Acquisitions(16) $        2,703.5         $        468.9         $        944.3         $        852.9         $        571.9         $        2,533.7        
Expansion and Development(17)          170.8                  5.9                  191.8                  9.9                  248.2                  —        
Recurring Capital Expenditures(18)          34.7                  16.0                  45.3                  19.3                  31.4                  2.1        
Lot Modifications(19)          25.9         N/A          28.8         N/A          29.4         N/A
Growth Projects(20)          23.1                  50.0                  25.6                  51.4                  28.3                  —        
Rebranding(21)          12.7         N/A          6.1         N/A N/A N/A
Total $        2,970.7         $        540.8         $        1,241.9         $        933.5         $        909.2         $        2,535.8        
             
Other Information            
Recurring Capital Expenditures Average / Site* $        270         $        408         $        371         $        491         $        265         N/A

Outstanding Securities and Capitalization
(shares and units in thousands; dollar amounts in millions, except for *)

 


Outstanding Securities - As of September 30, 2022
          
 Number of Units / Shares Outstanding Conversion Rate* If Converted(a) Issuance Price*
Per Unit
 Annual Distribution Rate
          
Common shares        123,880         N/A N/A N/A $3.52^
          
Convertible Securities         
Common OP units        2,429                 1.0000                 2,429         N/A Mirrors common share distributions
          
Preferred OP Units         
Series A-1        270                 2.4390                 659         $        100.00                 6.00        %
Series A-3        40                 1.8605                 75         $        100.00                 4.50        %
Series C        306                 1.1100                 340         $        100.00                 5.00        %
Series D        489                 0.8000                 391         $        100.00                 4.00        %
Series E        80                 0.6897                 55         $        100.00                 5.50        %
Series F        90                 0.6250                 56         $        100.00                 3.00        %
Series G        241                 0.6452                 155         $        100.00                 3.20        %
Series H        581                 0.6098                 355         $        100.00                 3.00        %
Series J        240                 0.6061                 145         $        100.00                 2.85        %
Total        2,337                   2,231            
Total convertible securities outstanding        4,766                   4,660            

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

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

Capitalization - As of September 30, 2022      
       
Equity Shares Share Price* Total
Common shares         123,880         $        135.33         $        16,764.7        
Common OP units         2,429         $        135.33                  328.7        
Subtotal         126,309           $        17,093.4        
       
Preferred OP units, as converted         2,231         $        135.33                  301.9        
Total diluted shares outstanding         128,540           $        17,395.3        
       
Debt      
Secured debt     $        3,006.0        
Unsecured debt              3,705.0        
Total debt     $        6,711.0        
       
Total Capitalization     $        24,106.3        

Debt Analysis
(amounts in millions, except for *)

 


 Quarter Ended
 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021
Debt Outstanding         
Secured debt$        3,006.0          $        3,335.7          $        3,366.6          $        3,380.7          $        3,403.4         
Unsecured debt         
Senior unsecured notes         1,779.1                   1,778.6                   1,186.7                   1,186.4                   591.3         
Line of credit and other debt(22)(a)         1,856.0                   1,746.7                   1,453.3                   1,034.8                   624.8         
Preferred Equity - Sun NG Resorts - mandatorily redeemable         35.2                   35.2                   35.2                   35.2                   35.2         
Preferred OP units - mandatorily redeemable         34.7                   34.7                   34.7                   34.7                   34.7         
Total unsecured debt         3,705.0                   3,595.2                   2,709.9                   2,291.1                   1,286.0         
Total debt$        6,711.0          $        6,930.9          $        6,076.5          $        5,671.8          $        4,689.4         
          
% Fixed / Floating(b)*         
Fixed         79.0        %          74.9        %          76.2        %          81.8        %          86.7        %
Floating         21.0        %          25.1        %          23.8        %          18.2        %          13.3        %
Total         100.0        %          100.0        %          100.0        %          100.0        %          100.0        %
          
Weighted Average Interest Rates*         
Secured debt         3.67        %          3.78        %          3.78        %          3.78        %          3.78        %
Senior unsecured notes(c)         2.90        %          2.90        %          2.55        %          2.55        %          2.70        %
Line of credit and other debt(22)(c)         3.26        %          2.28        %          1.25        %          0.98        %          0.98        %
Preferred Equity - Sun NG Resorts - mandatorily redeemable         6.00        %          6.00        %          6.00        %          6.00        %          6.00        %
Preferred OP units - mandatorily redeemable         5.93        %          5.93        %          5.93        %          5.93        %          5.93        %
Total average         3.37        %          3.20        %          2.96        %          3.04        %          3.30        %
          
Debt Ratios*         
Net Debt / Recurring EBITDA(1) (TTM)5.7x 6.3x 5.9x 5.7x 4.9x
Net Debt / Enterprise Value         27.5        %          25.0        %          21.9        %          18.0        %          17.1        %
Net Debt / Gross Assets         34.6        %          35.7        %          36.6        %          35.4        %          31.2        %
          
Coverage Ratios*         
Recurring EBITDA(1) (TTM) / Interest5.7x 5.9x 6.2x 6.2x 6.1x
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution5.6x 5.8x 6.0x 6.0x 6.0x


Maturities / Principal Amortization Next Five Years 2022   2023   2024   2025   2026 
Secured debt         
Maturities$        —          $        117.8          $        128.8          $        50.6          $        521.6         
Principal amortization         13.7                   55.6                   56.4                   54.0                   45.9         
Line of credit and other debt(22)         0.7                   10.0                   10.0                   976.4                   862.2         
Preferred Equity - Sun NG Resorts - mandatorily redeemable         —                   —                   33.4                   1.8                   —         
Preferred OP units - mandatorily redeemable         —                   —                   27.4                   —                   —         
Total$        14.4          $        183.4          $        256.0          $        1,082.8          $        1,429.7         
          
Weighted average rate of maturities*         —        %          3.54        %          4.03        %          4.04        %          3.75        %

(a) As of September 30, 2022, £400.0 million ($445.3 million) had been swapped to a fixed interest rate of 3.67 percent.

(b) Percentages include the impact of hedge activity.

(c) Weighted average interest rate includes the impact the impact of hedge activity.

Home Sales Summary (excluding UK home sales)
(amounts in millions, except for *)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 Change % Change September 30, 2022 September 30, 2021 Change % Change
Financial Information               
New Homes               
New home sales$        31.7          $        31.5          $        0.2                  0.6        % $        95.4          $        89.2          $        6.2                  7.0        %
New home cost of sales         26.8                   25.9                   0.9                  3.5        %          78.3                   72.8                   5.5                  7.6        %
Gross profit – new homes         4.9                   5.6                   (0.7        )         (12.5)        %          17.1                   16.4                   0.7                  4.3        %
Gross margin % – new homes         15.5        %          17.7        %         (2.2)        %            17.9        %          18.4        %         (0.5)        %  
Average selling price – new homes*$        183,237          $        151,850          $        31,387                  20.7        % $        174,406          $        152,943          $        21,463                  14.0        %
                
Pre-owned Homes               
Pre-owned home sales$        34.9          $        49.6          $        (14.7        )         (29.6)        % $        118.0          $        125.9          $        (7.9        )         (6.3)        %
Pre-owned home cost of sales         19.4                   25.8                   (6.4        )         (24.8)        %          63.4                   70.4                   (7.0        )         (9.9)        %
Gross profit – pre-owned homes         15.5                   23.8                   (8.3        )         (34.9)        %          54.6                   55.5                   (0.9        )         (1.6)        %
Gross margin % – pre-owned homes         44.4        %          48.0        %         (3.6)        %            46.3        %          44.1        %          2.2        %  
Average selling price – pre-owned homes*$        63,339          $        52,006          $        11,333                  21.8        % $        59,267          $        48,981          $        10,286                  21.0        %
                
Total Home Sales               
Revenue from home sales$        66.6          $        81.1          $        (14.5        )         (17.9)        % $        213.4          $        215.1          $        (1.7        )         (0.8)        %
Cost of home sales         46.2                   51.7                   (5.5        )         (10.6)        %          141.7                   143.2                   (1.5        )         (1.0)        %
Home selling expenses         5.3                   4.8                   0.5                  10.4        %          14.2                   13.7                   0.5                  3.6        %
Home Sales NOI(1)$        15.1          $        24.6          $        (9.5        )         (38.6)        % $        57.5          $        58.2          $        (0.7        )         (1.2)        %
                
Other Information               
New home sales volume*         173                   207                   (34        )         (16.4)        %          547                   583                   (36        )         (6.2)        %
Pre-owned home sales volume*         551                   955                   (404        )         (42.3)        %          1,991                   2,572                   (581        )         (22.6)        %
Total home sales volume*         724                   1,162                   (438        )         (37.7)        %          2,538                   3,155                   (617        )         (19.6)        %

        
Refer to the UK Operations Summary on page 13 for financial and statistical information related to our home sales in the UK.

Rental Program Summary
(amounts in millions, except for *)

 


 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 Change % Change September 30, 2022 September 30, 2021 Change % Change
Financial Information               
Revenues$        31.4         $        33.9         $        (2.5)         (7.4)        % $        95.7         $        105.8         $        (10.1)         (9.5)        %
Expenses         6.0                  5.5                  0.5                  9.1        %          15.9                  15.3                  0.6                  3.9        %
Rental Program NOI(1)$        25.4         $        28.4         $        (3.0)         (10.6)        % $        79.8         $        90.5         $        (10.7)         (11.8)        %
                
Other Information               
Number of sold rental homes*         138                  307                  (169)         (55.0)        %          508                  799                  (291)         (36.4)        %
Number of occupied rentals, end of period*                 9,126                  10,123                  (997)         (9.8)        %
Investment in occupied rental homes, end of period        $        543.8         $        559.0         $        (15.2)         (2.7)        %
Weighted average monthly rental rate, end of period*        $        1,192         $        1,085         $        107                  9.9        %

Marina Segment Summary
(amounts in millions, except for statistical data)

 


  Three Months Ended Nine Months Ended
  September 30, 2022 September 30, 2021 Change % Change September 30, 2022 September 30, 2021 Change % Change
Financial Information                
Revenues                
Real property (excluding transient) $        91.1         $        72.9         $        18.2                 25.0        % $        240.1         $        180.9         $        59.2                 32.7        %
Real property - transient          7.1                  6.3                  0.8                 12.7        %          14.7                  11.4                  3.3                 28.9        %
Other          11.9                  5.2                  6.7                 128.8        %          19.3                  9.8                  9.5                 96.9        %
Total Operating          110.1                  84.4                  25.7                 30.5        %          274.1                  202.1                  72.0                 35.6        %
Expenses                
Property Operating(11)          32.3                  26.6                  5.7                 21.4        %          89.3                  69.3                  20.0                 28.9        %
Real Property NOI(1)          77.8                  57.8                  20.0                 34.6        %          184.8                  132.8                  52.0                 39.2        %
                 
Service, retail, dining and entertainment                
Revenue          112.3                  74.7                  37.6                 50.3        %          310.9                  202.0                  108.9                 53.9        %
Expense          98.8                  68.0                  30.8                 45.3        %          272.1                  176.1                  96.0                 54.5        %
NOI(1)          13.5                  6.7                  6.8                 101.5        %          38.8                  25.9                  12.9                 49.8        %
                 
Marina NOI(1) $        91.3         $        64.5         $        26.8                 41.6        % $        223.6         $        158.7         $        64.9                 40.9        %
                 
Other information                
Number of properties                  131          120                  11                 9.2        %
Total wet slips and dry storage spaces                  46,185          43,615                  2,570                 5.9        %

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

 


Locations Resident Move-outs Net Leased Sites(6) New Home Sales Pre-owned Home Sales Brokered
Re-sales
Florida         1,605                 980                  148                 255                 1,204        
Michigan         419                 166                  52                 1,087                 211        
Ontario, Canada         459                 242                  76                 21                 291        
Texas         389                 154                  66                 174                 67        
Arizona         94                 159                  35                 27                 128        
Indiana         37                 31                  5                 150                 21        
California         105                 69                  22                 8                 113        
Colorado         3                 12                  19                 25                 44        
Connecticut         34                 11                  29                 3                 32        
New York         71                 15                  7                 7                 10        
New Hampshire         1                 (2)         4                 1                 39        
Maine         102                 40                  12                 20                 8        
New Jersey         138                 291                  2                 1                 7        
Virginia         146                 28                  —                 7                 6        
Other states         589                 113                  70                 205                 134        
Nine Months Ended September 30, 2022         4,192                 2,309                  547                 1,991                 2,315        


Total For Year Ended Resident Move-outs  Net Leased Sites(6) New Home Sales Pre-owned Home Sales Brokered
Re-sales
2021         5,276                 2,483                 732                 3,356                 3,528        
2020         5,365                 2,505                 570                 2,296                 2,557        


Percentage Trends Resident Move-outs  Resident
Re-sales
2022 TTM         2.9        %         7.1        %
2021         2.7        %         8.4        %
2020         3.3        %         6.9        %

Endnotes, Reconciliations and Definitions

 

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

  • FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles ("GAAP") depreciation and amortization of real estate assets.
  • NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.
  • EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.

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

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

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

The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating activities as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level. In addition, the Company calculates Constant Currency NOI for its UK Operations by translating the operating results at the foreign currency exchange rate used for guidance. The Company believes that NOI and Constant Currency NOI provide enhanced comparability for investor evaluations of period-over-period results.

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

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

(2)   Same Property results for our MH and RV properties reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at the 2022 average exchange rate of $0.7664 USD per Canadian dollar.

(3)   The Same Property MH and RV blended occupancy for 2022 is derived from 125,024 developed sites, of which 122,419 were occupied. The Same Property adjusted MH and RV blended occupancy percentage is derived from 124,284 developed sites, of which 122,419 were occupied. The number of developed sites excludes RV transient sites and nearly 750 recently completed but vacant MH expansion sites.

The Same Property adjusted MH and RV blended occupancy percentage for 2021 has been adjusted to reflect incremental period-over-period growth from newly occupied expansion sites and the conversion of transient RV sites to annual RV sites.

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

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

(6)   MH and annual RV developed sites and occupancy percentages include MH and annual RV sites, and exclude transient RV sites, as applicable.

(7)   Other income / (expense), net was as follows (in millions):

 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Litigation settlement$        3.4          $        —          $        3.4          $        —         
Contingent consideration benefit / (expense)$        —          $        (9.2) $        —          $        (9.3)
Long term lease termination benefit / (expense)         (0.2)          —                   0.1                   —         
Repair reserve on repossessed homes         (0.4)          (0.1)          (0.9)          (0.7)
Other income / (expense), net$        2.8          $        (9.3) $        2.6          $