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.
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