2010 Earnings Guidance
It is the Company's expectation that FFO(1) per diluted share/OP unit will be in the range of
$2.89 to $2.98
per diluted share/OP unit for 2010. Guidance is derived from the following operational assumptions:
Site rent increases
The weighted average site rental increase for 2010 is expected to be 2.5 percent.
Revenue producing sites are expected to increase by approximately 300 sites. The improvement in occupancy results for 2010 compared to 2009 is concentrated in the South, Southeast and West while the East and Midwest are expected to maintain occupancy levels.
Same property portfolio
The Company's same property portfolio of 136 communities is expected to generate growth in net operating income(2) of approximately 1.9 percent in 2010.
The Company expects to sell approximately 1,270 homes, including 750 rental homes, an increase of 13.8%.
Rental home program
Guidance includes the assumption of an increase in occupied rental units of 220 and no increase in the average monthly rental rate. The Company expects to receive over 19,000 applications to live in its communities in 2010.
FFO(1) guidance includes no contribution from Origen in 2010 as equity earnings are not reasonably estimable.
Recurring capital expenditures
The Company expects recurring capital expenditures to approximate
for 2010, or about
per diluted share/OP unit. Using the midpoint of earnings guidance, funds available for distribution will approximate
per diluted share/OP unit which equates to a 103% coverage ratio when compared to the Company's 2009 annual dividend of
per diluted share/OP unit.
General & administrative expenses-real property
General and administrative expenses–real property are expected to approximate
The Company has maturities of
of its preferred operating partnership units in 2010.
The Company assumed interest rates to approximate the rates in effect at
January 1, 2010
and included the payment of a 200 basis point facility fee on its
of variable rate debt with Fannie Mae. The Company is currently in litigation with Fannie Mae with regard to this fee.
Earnings Conference Call
A conference call to discuss fourth quarter operating results will be held on
March 11, 2010
11:00 A.M. EST
. To participate, call toll-free 877-407-9039. Callers outside the U.S. or
can access the call at 201-689-8470. A replay will be available following the call through
March 25, 2010
, and can be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 outside the U.S. or
. The account number for the replay is 3055 and the ID number is 345242. The conference call will be available live on Sun Communities website
. Replay will also be available on the website.
Sun Communities, Inc. is a real estate investment trust (REIT) that currently owns and operates a portfolio of 136 communities comprising approximately 47,600 developed sites.