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Sun Communities, Inc. Reports 2009 Fourth Quarter And Year End Results

ADOPTION OF NEW ACCOUNTING STANDARDS

The Company adopted Statement of Financial Accounting Standards (SFAS) No. 160, "Noncontrolling Interests in Consolidated Financial Statements", which is now included within the FASB Accounting Standards Codification TM ("ASC") Topic 810, Consolidation, in the first quarter of 2009 which required reclassification of prior period financial information. This updated guidance resulted in the presentation of noncontrolling interest, previously referred to as minority interest, be reported as a separate component of equity in the Company's Consolidated Financial Statements, and that losses be allocated to the noncontrolling interest even if the allocation resulted in a deficit balance.

    
    
                           SUN COMMUNITIES, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE PERIODS ENDED DECEMBER 31, 2009 AND 2008
                  (In thousands, except per share amounts)
                                (Unaudited)
     
                                 Three Months Ended     Twelve Months Ended
                                    December 31,            December 31,
                                -------------------    --------------------
                                  2009        2008       2009        2008
                                -------     -------    --------    --------
    REVENUES
      Income from Real property   $50,751    $49,658   $198,844    $195,450
      Revenue from home sales       8,609      7,273     32,721      31,477
      Rental home revenue           5,014      5,215     20,463      20,533
      Ancillary revenues, net         126        106        387         455
      Interest                      1,811      1,161      6,005       3,902
      Other income (loss), net    (1,650)      (410)    (1,811)       2,474
                                   ------     ------    -------     -------
        Total revenues             64,661     63,003    256,609     254,291
                                   ------     ------    -------     -------
    
    COSTS AND EXPENSES
      Property operating and
       maintenance                 12,535     12,389     51,176      49,246
      Real estate taxes             4,387      3,799     16,537      15,982
      Cost of home sales            6,170      5,393     23,483      24,286
      Rental home operating and
       maintenance                  3,868      4,107     16,291      15,673
      General and administrative
       - real property              4,917      3,817     17,670      16,363
      General and administrative
       - home sales and rentals     1,897      1,731      7,429       6,734
      Georgia flood damage              -          -        800           -
      Depreciation and
       amortization                17,051     16,330     65,011      64,427
      Asset impairment charge           -      9,087          -       9,087
      Interest                     15,339     15,464     59,432      60,775
      Interest on mandatorily
       redeemable debt                838        847      3,347       3,382
                                   ------     ------    -------     -------
        Total expenses             67,002     72,964    261,176     265,955
                                   ------     ------    -------     -------
    
    Loss before income taxes
     and equity loss from
     affiliates                   (2,341)    (9,961)    (4,567)    (11,664)
      Provision for state income
       taxes                         (31)      (302)      (413)       (336)
      Equity loss from affiliates   (832)    (2,462)    (2,176)    (16,498)
                                    -----    -------     ------     -------
    Loss from continuing
     operations                   (3,204)   (12,725)    (7,156)    (28,498)
    Loss from discontinued
     operations                      (72)    (4,326)      (227)     (5,111)
                                  -------   --------    -------    --------
      Net loss                    (3,276)   (17,051)    (7,383)    (33,609)
        Less: amounts
         attributable to
         noncontrolling interests   (391)      1,441    (1,081)        839
                                    -----      -----    -------        ---
      Net loss attributable to
       Sun Communities, Inc.    
       common stockholders       $(2,885)  $(18,492)   $(6,302)   $(34,448)
                                 ========  =========   =======     ========
    
    Amounts attributable to Sun
     Communities, Inc. common
     stockholders:
      Loss from continuing
       operations, net of state
       income taxes              $(2,821)  $(14,009)   $(6,099)   $(29,209)
      Loss from discontinued
       operations, net of  
       state income taxes            (64)    (4,483)      (203)     (5,239)
                                     ----    -------      -----     -------
    Loss attributable to Sun
     Communities, Inc. common
     stockholders                $(2,885)  $(18,492)   $(6,302)   $(34,448)
                                 ========  =========   =======     ========
    
    Weighted average common
     shares outstanding:
      Basic                        18,624     18,252     18,484      18,176
      Diluted                      18,624     18,252     18,484      18,176
    
    Basic and diluted loss
     per share:
      Continuing operations       $(0.15)    $(0.77)    $(0.33)     $(1.61)
      Discontinued operations           -     (0.24)     (0.01)      (0.29)
                                      ---     ------     ------      ------
        Basic and diluted loss
         per share                $(0.15)    $(1.01)    $(0.34)     $(1.90)
                                  =======    =======    =======     =======
    
    Cash dividends per common
     share:                         $0.63      $0.63      $2.52       $2.52
    
    
               RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS
                 FOR THE PERIODS ENDED DECEMBER 31, 2009 AND 2008
                     (In thousands, except per share data)
                                  (Unaudited)
    
                               Three Months Ended      Twelve Months Ended
                                  December 31,             December 31,
                             --------------------    -----------------------
                                2009       2008         2009          2008
                              --------  ---------     --------     ---------
     Net loss                 $(3,276)  $(17,051)     $(7,383)     $(33,609)
     Adjustments:
       Depreciation and
        amortization            17,524     16,962       66,888        66,892
       Provision (benefit)
        for state income
        taxes (3)                 (42)         3          (97)         (402)
       Loss (gain) on 
        disposition of
        assets, net                501      (542)      (3,432)       (6,380)
                               -------     ------      -------       -------
     Funds from Operations
     (FFO)(1)                  $14,707     $(628)      $55,976       $26,501
                               =======     ======      =======       =======
    
     Weighted average Common
     Shares/OP Units outstanding:
     Basic                      20,973     20,507       20,833        20,463
                                ======     ======       ======        ======
     Diluted                    20,973     20,507       20,833        20,508
                                ======     ======       ======        ======
    
    FFO per weighted average
     Common Share/OP Unit -
     Basic                       $0.70    $(0.03)        $2.69         $1.30
                                 =====    =======        =====         =====
    FFO per weighted average
     Common Share/OP Unit -
     Diluted                     $0.70    $(0.03)        $2.69         $1.29
                                 =====    =======        =====         =====
    
    
    The table below adjusts FFO to exclude certain items as detailed
    below (in thousands, except for per share/OP unit amounts).
    
    
                               Three Months Ended       Twelve Months Ended
                                   December 31,            December 31,
                             ---------------------    ----------------------
                                 2009       2008         2009          2008
                              --------  ---------     --------     ---------
     Net loss                 $(3,276)  $(17,051)     $(7,383)     $(33,609)
       Equity affiliate 
        adjustment                 443      2,420        1,654        16,470
       Asset impairment charge       -     13,171            -        13,171
       Severance charges             -          -            -           888
       Georgia flood damage          -          -          800             -
       Michigan Single Business
        Tax provision              740          -          740             -
       Origen LLC impairment
        charge                     322          -          322             -
                               -------    -------      -------       -------
     Adjusted net loss         (1,771)    (1,460)      (3,867)       (3,080)
       Depreciation and
        amortization            17,524     16,962       66,888        66,892
       Provision (benefit)
        for state income
        taxes (3)                 (42)          3         (97)         (402)
       Loss (gain) on 
        disposition of assets,
        net                        501      (542)      (3,432)       (6,380)
                               -------    -------      -------       -------
     Adjusted funds from
      operations (FFO)(1)      $16,212    $14,963      $59,492       $57,030
                               =======    =======      =======       =======
    
    Adjusted FFO per weighted
     average Common Share/OP
       Unit - Diluted            $0.77      $0.73        $2.86         $2.78
                                 =====      =====        =====         =====
    
    (3)  The tax benefit for the periods ended December 31, 2009 and 2008
    represents the reversal of a tax provision for potential taxes
    payable on the sale of company assets related to the enactment of
    the Michigan Business Tax. These taxes do not impact Funds from
    Operations and would be payable from prospective proceeds of such
    sales.
    
        
                                SUN COMMUNITIES, INC.
                            SELECTED BALANCE SHEET DATA
                                  (In thousands)
                                    (Unaudited)
    
                                      December 31, 2009    December 31, 2008
                                      -----------------    -----------------
     Investment property before
      accumulated depreciation               $1,565,700           $1,549,339
     Total assets                            $1,181,365           $1,206,999
     Total debt and lines of credit          $1,253,907           $1,229,571
     Total stockholders' deficit             $(111,308)            $(59,882)
    
    
                                  SUN COMMUNITIES, INC.
                     CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                    FOR THE PERIODS ENDED DECEMBER 31, 2009 AND 2008
                                     (In thousands)
                                      (Unaudited)
    
                                 Three Months Ended      Twelve Months Ended
                                   December 31,              December 31,
                                -------------------      -------------------
                                  2009        2008            2009       2008
                                ------   ---------         -------- ---------
     Net loss                 $(3,276)   $(17,051)        $(7,383)  $(33,609)
       Unrealized gain
        (loss) on interest
        rate swaps                 279     (1,931)           1,111    (1,995)
                               -------    --------         -------   --------
     Total comprehensive Loss  (2,997)    (18,982)         (6,272)   (35,604)
       Less: amounts
        attributable to
        noncontrolling
        interests                (616)       1,493           (963)        889
                                 -----       -----           -----        ---
     Comprehensive loss
      attributable to
      Sun Communities, Inc.  
      common stockholders     $(2,381)   $(20,475)        $(5,309)  $(36,493)
                              ========   =========        ========  =========
    
    
                                SUN COMMUNITIES, INC.
                               ADDITIONAL INFORMATION
                                     (Unaudited)
    
                                SAME PROPERTY RESULTS
                                ---------------------
    
    For 136 communities owned throughout both years (amounts in thousands):
    
                       Three Months Ended            Twelve Months Ended
                          December 31,                  December 31,
                   --------------------------   -----------------------------
                      2009     2008   %Change       2009       2008   %Change
                   -------  -------   -------   --------   --------   -------
    Total revenue  $48,018  $47,168      1.8%   $188,423   $185,656      1.5%
    Total expense   14,189   13,698      3.6%     57,292     55,434      3.4%
                    ------   ------             --------   --------
     Net operating                                                   
      income(2)    $33,829  $33,470      1.1%   $131,131   $130,222      0.7%
                   =======  =======             ========   ========
    
    Same property occupancy and weighted average monthly rent information
    at December 31, 2009 and 2008:
    
                                                    2009       2008
                                                  ------     ------
    Developed sites                               47,572     47,613
    Occupied sites (4)                            37,935     37,711
    Occupancy % (4)                                83.4%      83.1%
    Weighted average monthly rent per site (5)      $404       $393
    
    (4)  Occupied sites and occupancy % include manufactured housing and
    permanent recreational vehicle sites, and exclude seasonal
    recreational vehicle sites.
    (5) Average rent relates only to manufactured housing sites, and
    excludes permanent and seasonal recreational vehicle sites.
    
    
                              SUN COMMUNITIES, INC.
                       ADDITIONAL INFORMATION, CONTINUED
                                  (Unaudited)
       
                            RENTAL PROGRAM SUMMARY
                            ----------------------
              (In thousands, except for certain items marked with *)
    
    
                                     Three Months Ended   Twelve Months Ended
                                        December 31,          December 31,
                                     ------------------   -------------------
                                        2009       2008        2009      2008
                                      ------     ------     -------   -------
     Rental home revenue              $5,014     $5,215     $20,463   $20,533
     Site rent from Rental Program     6,838      6,259      26,699    24,537
                                      ------     ------      ------    ------
       Rental Program revenue         11,852     11,474      47,162    45,070
     Expenses
       Payroll and commissions           400        407       2,335     2,008
       Repairs and refurbishment       1,784      2,039       7,513     7,419
       Taxes and insurance               778        708       3,101     2,802
       Marketing and other               906        953       3,342     3,444
                                       -----      -----      ------    ------
         Rental Program operating and
          maintenance                  3,868      4,107      16,291    15,673
                                      ------     ------     -------   -------
     Net operating income(2)          $7,984     $7,367     $30,871   $29,397
                                      ======     ======     =======   =======
    
    Occupied rental homes information as of and for the years ended
    December 31, 2009 and 2008:
    
                                                          
    Other Information                               2009       2008   %Change
    -----------------                           --------   --------   -------
    Number of occupied rentals, end of period*     5,747      5,517      4.2%
    Investment in occupied rental homes         $181,206   $170,521      6.3%
    Number of sold rental homes*                     705        596     18.3%
    Weighted average monthly rental rate*           $728       $736

SOURCE Sun Communities, Inc.

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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