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| 8-K - FORM 8-K INVESTOR PRESENTATION JUNE 2017 - SUN COMMUNITIES INC | form8-kinvestorpresentatio.htm |
INVESTOR PRESENTATION
JUNE 2017
WILDWOOD COMMUNITY – SANDWICH, IL
2
This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc. (the "Company,“ “Sun”) and from third-party
sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, expressed or implied, as to
the accuracy or completeness of such information.
This presentation contains various “forward-looking statements” within the meaning of the United States Securities Act of 1933, as amended, and the United States
Securities Exchange Act of 1934, as amended, and we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any
statements contained in this presentation 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” and similar expressions are intended to
identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect our 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
presentation. These risks and uncertainties may cause our actual results to be materially different from any future results expressed or implied by such forward-looking
statements. In addition to the risks disclosed under “Risk Factors” contained in our Annual Report on Form 10-K for the year ended December 31, 2016, and our other filings
with the Securities and Exchange Commission from time to time, such risks and uncertainties include but are not limited to:
changes in general economic conditions, the real estate industry and the markets in which we operate;
difficulties in our ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
our liquidity and refinancing demands;
our ability to obtain or refinance maturing debt;
our ability to maintain compliance with covenants contained in our debt facilities;
availability of capital;
our ability to maintain rental rates and occupancy levels;
changes in foreign currency exchange rates, specifically between the U.S. dollar and Canadian dollar;
our failure 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;
general volatility of the capital markets and the market price of shares of our capital stock;
our failure to maintain our 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 manufactured home buyers to obtain financing; and
the level of repossessions by manufactured home 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. We undertake no
obligation to publicly update or revise any forward-looking statements included in this presentation, whether as a result of new information, future events, changes in our
expectations or otherwise, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to us or persons acting on our behalf
are qualified in their entirety by these cautionary statements.
FORWARD-LOOKING STATEMENTS
81,388
21,537
16,572
38,109
57%
annual /
seasonal
43%
transient
SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 as well as Press Releases after March 31, 2017 for additional information.
4,902
1,521
682
149
1,698
25,692
3,010
1,277
916
1,156
2,913
548
2,142
698
237
672
422
1,049
475
413
976
226
2,483
473
7,704
43,000
4,614
324
5,705
344 communities
consisting of
~120,000 sites
across 29 states
and Ontario
Current Portfolio
As of June 1, 2017
manufactured
housing sites
recreational
vehicle sites
3
8% 26% 66%
29 manufactured housing and recreational vehicle communities
88 recreational vehicle only communities
227 manufactured housing only communities
DEMOGRAPHIC TRENDS DRIVING DEMAND FOR SUN
1 Source: US Census Bureau - Projections of the Population by Sex and Age for the United States: 2015 to 2060.
2 Source: National Conference of State Legislatures and the AARP Public Policy Institute, “Aging in Place: A State Survey of Livability Policies and Practices”
3 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. 4
113 age-restricted communities
231 all-age communities
33% 67%
20.0 20.5 20.6 21.1
22.7 22.5 21.7
20.4 20.2 20.8
22.3 21.8
19.1
16.1
11.5
8.1
5.8 6.3
US Population Breakdown1
in millions
Community Designation3
Sun’s main constituents for its all age and age restricted communities, Baby Boomers and Millennials, represent
the largest generation groups in the US today
88.0MM 79.3MM
MILLENNIALS BABY BOOMERS
Largest population group
1.2% growth in 15-34 age group
expected through 2060
~96% over 65 live in
noninstitutional settings and
many are especially dependent
upon the availability of affordable
housing options2
2.5% growth in 50-69 age group
expected through 2060
2017 YEAR-TO-DATE HIGHLIGHTS
5
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Refer to information regarding non-GAAP financial
measures in the attached Appendix.
1 Source: Company Information. Diluted.
2 Source: Company Information. Total Same-community Portfolio.
Recent Acquisitions
Quarter Ended March 31,
2017 2016 % Change
Revenue $ 234.4MM $ 174.6MM 34.2%
EPS1 $ 0.29 $ 0.14 107.1%
FFO/share1 $ 1.10 $ 0.90 22.2%
NOI2 $ 94.4MM $ 88.5MM 6.7%
Base Rent/site2 $ 499 $ 483 3.3%
Homes Sales 826 765 8.0%
PETER’S POND RV RESORT – SANDWICH, MA
Purchase Price Sites Location Acquisition Date
Far Horizons 49er Village RV Resort $ 13.0MM 328 Plymouth, California March 16, 2017
Sunset Lakes RV Resort $ 8.0MM 498 Hillsdale, Illinois May 18, 2017
Arbor Woods MH Community $ 17.0MM 458 Superior Township, Michigan June 1, 2017
Land Parcel $ 6.0MM 775 Myrtle Beach, South Carolina April 20, 2017
EXPECTED
Q1 2017 Highlights
6
FOR SUSTAINABLE GROWTH
BUILDING BLOCKS POSITION SUN
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
Proven consolidator with $4.4 billion of acquisitions brought onto the Sun platform since 2011
Ability to leverage revenue opportunities while creating efficiencies for all on-boarded properties
High selectivity when analyzing new acquisition opportunities
Tried and true underwriting process lays groundwork for accretive acquisitions
ACQUISITIONS
Low-risk way to add new sites in the highest demand communities in our portfolio
Long runway of ~10,300 sites available for expansion
Expected to deliver 1,800 MH and 400 RV expansion sites in 2017
EXPANSIONS
Weighted average monthly rent has historically increased by 2-4% annually
Current MH occupancy of 94.8% with additional runway
~16,600 transient RV sites available for conversion to annual/seasonal
Growth buoyed by favorable supply-demand dynamics as well as demographic trends for MH
& RV communities
RENT &
OCCUPANCY
Premier owner and operator of manufactured home (“MH”) and recreational vehicle (“RV”)
communities
Strong and cycle-tested record of operating, expanding and acquiring MH and RV communities
dating back to 1975
Top customer service provided for our MH and RV residents
INDUSTRY-LEADING
POSITION
SUN’S FAVORABLE REVENUE DRIVERS
7
The average cost to move a home ranges
from $4K-$10K, resulting in low move-out
of homes
Tenure of homes in our communities is
44 years1
Tenure of residents in our communities is
approximately 13 years1
5.67%
2.20%
Resident Re-sales Resident Move-outs
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Refer to information regarding non-GAAP financial
measures in the attached Appendix.
1 Average since 2010.
LEISURE VILLAGE – BELMONT, MI
Three Year Average Resident Move-out Trends
$437
$445
$461
$481
$498
$507
YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017
86.7%
88.9%
93.2%
95.9%
96.6% 96.7%
YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017
5.5%
5.9%
7.7%
9.1%
7.1%
6.7%
YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017
STRONG SAME-COMMUNITY PERFORMANCE
8
Positive NOI growth for
18 consecutive years
Low-annual resident turnover
results in stability of income and
occupancy
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the period ended March 31st, 2017 and Form 10-K and Supplemental for the period ended December 31st for the
respective year for additional information. Refer to information regarding non-GAAP financial measures in the attached Appendix.
Note: Same-community pool of assets changes annually.
NOI Growth Percentage Occupancy Percentage Manufactured Home Weighted
Average Monthly Rent per Site
Strong and consistent rental rate
growth creates a stable revenue
stream that is recession-resistant
Occupancy gains are a function
of Sun’s integrated platform,
which includes: leasing, sales,
and financing
7.1%
2012 – 2016
AVERAGE
10.0%
INCREASE
9
GROWTH AND ATTRACTIVE RETURNS
EXPANSIONS PROVIDE STRONG
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
Inventory of approximately 10,300 zoned and entitled sites available for expansion at 80 properties in 20
states and Ontario
Approximately 1,800 MH sites and 400 RV sites are expected to be developed by the end of 2017
A 100 site expansion at a $35,000 cost per site, that is leased up in a year (8 sites/month), results in an
unlevered return of 12% - 14%
Building in communities with strong demand evidenced by occupancies >96%
Expansion lease-up is driven by sales, rental and relocation programs
PALM CREEK GOLF & RV RESORT – CASA GRANDE, AZ
10
SUPPORTED BY RENTAL PROGRAM
EXPANSION OPPORTUNITIES
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
1 Operating expenses include repairs and refurbishment, taxes and insurance, marketing, and commissions.
Sun’s rental program is a key onboarding and conversion tool for our communities
Rental Program All-in 5 Year Unleveraged IRR
Occupied Rentals as
Percentage of Total Available Sites
$42,000 initial investment in new home
Weighted average monthly rental rate - $880 x 12 =
$10,560 (3% annual increases)
Monthly operating expenses1 + 5% vacancy factor
$250 x 12 = $3,000 (2% annual increases)
End of 5 year period sell the home and recoup
~95% of original invoice price
All-in 5 year unlevered IRR is 14% - 15%
15.7% 15.6%
13.5%
10.6% 10.6%
YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017 RENTAL: EAST VILLAGE ESTATES – WASHINGTON, MI
RENTAL: CIDER MILL CROSSING – FENTON, MI
2013
EXTRACTING VALUE FROM STRATEGIC ACQUISITIONS
11
Since May 2011, Sun has acquired communities valued in excess of $4.4 billion, increasing its number of sites
and communities by ~150%
2011
159 communities
54,811 sites
173 communities
63,697 sites
188 communities
69,789 sites
217 communities
79,554 sites
231 communities
88,612 sites
341 communities
117,376 sites
Source: Company Information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the period ended December 31st for the respective year as well as Sun Communities, Inc. Form 10-Q and Supplemental
for the period ended March 31st, 2017 for additional information.
2012 2014 2015 2016
344 communities
119,497 sites
2017
Year-end Communities and Sites
Y T D
HOME SALES/
RENTAL
PROGRAM
ADDING
VALUE WITH
EXPANSIONS
PROFESSIONAL
OPERATIONAL
MANAGEMENT
SKILLED
EXPENSE
MANAGEMENT
REPOSITIONING
WITH
ADDITIONAL
CAPEX
INCREASING
MARKET
RENT
CALL CENTER/
DIGITAL
MARKETING
OUTREACH
STRATEGIC BALANCE SHEET
12
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
1 The debt ratios are calculated using trailing 12 months EBITDA for the period ended March 31, 2017. Refer to information regarding non-GAAP financial measures in the attached Appendix.
2 Only includes Carefree Communities EBITDA from date of acquisition of June 9, 2016. Excludes significant forward EBITDA contribution from Carefree Communities.
3 Total Enterprise Value includes common shares outstanding (per Supplemental), OP Units and Preferred OP Units, as converted, outstanding at the end of each respective period.
4 Includes premium / discount on debt and financing costs.
50.4%
45.8%
34.8% 34.0% 33.8% 32.8%
2012 2013 2014 2015 2016 Q1 2017
8.4x
7.2x 7.3x
6.6x
7.5x
7.0x
2012 2013 2014 2015 2016 Q1 2017
GWYNN’S ISLAND RV RESORT – GWYNNS ISLAND, VA
Net Debt / Adj. EBITDA1 Net Debt / TEV3
2
Principal
Outstanding4
WA
Interest Rates
Quarter Ended March 31, 2017
CMBS $ 460,171 5.1%
Fannie Mae $ 1,040,433 4.3%
Life Companies $ 883,642 3.9%
Freddie Mac $ 390,399 3.9%
Total $ 2,774,645 4.3%
Mortgage Debt Financings
principal amounts in thousands
YE 2017 YE 2018 YE 2019 YE 2020 YE 2021
CMBS Fannie Mae Freddie Mac Life Companies
Mortgage Debt 5 Year Maturity Ladder
amounts in millions
$4.0
$26.2
$64.4 $58.1
$270.7
2
Balance sheet supports growth strategy
Anticipates further delevering by mid-2017 through full-year EBITDA contribution from Carefree and earnings growth
Sun’s annual mortgage maturities average 3% from 2018-2021
STRONG INTERNAL GROWTH
13
Source: : Citi Investment research, March, 2017. “REIT Industry Average” includes an index of REITs across a variety of asset classes including self storage, mixed office, regional malls, shopping centers, multifamily,
student housing, manufactured homes and specialty. Refer to information regarding non-GAAP financial measures of the attached Appendix.
SUN’s average same community NOI growth has exceeded REIT industry average by ~180 bps and the
apartment sector’s average by ~160 bps over a 15 year period
Same-community NOI Growth Percentage
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
1Q
02
2Q
02
3Q
02
4Q
02
1Q
03
2Q
03
3Q
03
4Q
03
1Q
04
2Q
04
3Q
04
4Q
04
1Q
05
2Q
05
3Q
05
4Q
05
1Q
06
2Q
06
3Q
06
4Q
06
1Q
07
2Q
07
3Q
07
4Q
07
1Q
08
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
Sun Communities, Inc.
Apartments
Sun's Average (4.3%)
REIT Industry Average (2.5%)
Apartment Average (2.7%)
4.3%
2.5%
2.7%
-100
0
100
200
300
400
500
5-year Total Return Percentage
-50
0
50
100
150
STRATEGY-DRIVEN OUTPERFORMANCE
14
Sun has significantly outperformed major REIT and broader market indices over the last ten years
First Quarter 2017 Total Return Percentage
Source: SNL Financial as of March 31, 2017.
3-year Total Return Percentage
10-year Total Return Percentage
-30
0
30
60
90
120
+6.4%
+5.2%
+0.6%
+135.8%
+85.3%
+58.8%
+100.4%
+34.5%
+33.3%
+484.9%
+105.7%
+57.0%
Sun Communities, Inc. (SUI) MSCI US REIT (RMS) S&P 500
-4
0
4
8
12
APPENDIX
OCEAN BREEZE RV RESORT – JENSEN BEACH, FL
CONSISTENT NOI GROWTH
16
Manufactured housing is one of the most recession-resistant sectors of the housing and commercial real
estate sectors and has consistently outperformed multi-family in same community NOI growth since 2000
NOI Growth
$90
$110
$130
$150
$170
$190
$210
$230
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sun Communities
Manufactured Housing
Apartment
Industrial
Mall
Office
Strip Mall
Self-storage
Source: : Citi Investment research, March, 2017. Refer to information regarding non-GAAP financial measures of the attached Appendix.
17
MANUFACTURED HOUSING VS. MULTIFAMILY
Sun’s manufactured homes provide nearly 15% more space at over 30% less cost per square foot
Sun’s Manufactured
Homes VS.
RENT
~$890
1 per month
Multifamily
Housing
~$1,1002 per month
SQUARE FOOTAGE
PRICE
~1,2501 sq. ft. ~1,1002 sq. ft.
$0.69 per sq. ft. $1.00 per sq. ft.
1 Source: Company Information.
2 Source: The RentPath Network. Represents average rent for a 2 bedroom apartment in major metropolitan areas Sun operates in as of February 2016.
$206,560 $207,950
$223,085
$249,429 $261,172
$276,284
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Single-family Portion of purchase price attributable to land
1 Source: Manufactured Housing Institute, Quick Facts: “Trends and Information About the Manufactured Housing Industry, 2016.” Represents average 2 bedroom household in major metropolitan areas
Sun operates in as of December 2016.
2 Source: US Census Bureau - 2010-2014 American Community Survey 5-Year Estimates. $54,900 represents the median household income in major metropolitan areas Sun operates in. 18
MANUFACTURED HOUSING VS. SINGLE FAMILY
Single Family Homes Manufactured Homes
Average cost of Single Family1 is $276,284 or roughly
5 years median income
Average cost of a new Manufactured Home is
$68,000 or roughly 1 years median income
$62,800 $60,500 $62,200 $64,000 $65,300 $68,000
Manufactured
Median
Household
Income2
2010 2011 2012 2013 2014 2015
Sun’s communities offer affordable options in attractive locations
NON-GAAP TERMS DEFINED
19
We believe Net operating income (NOI) and Funds from operations (FFO) are appropriate measures given their wide use by and relevance to investors and analysts following the real estate industry. NOI
provides a measure of rental operations and does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses. FFO, reflecting the assumption that
real estate values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation/amortization of real estate assets. In addition, NOI and FFO are commonly used in various ratios,
pricing multiples/yields and returns and valuation calculations used to measure financial position, performance and value.
NOI is derived from revenues minus property operating expenses and real estate taxes. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered
to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities
(determined in accordance with GAAP) as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company
believes that net income (loss) is the most directly comparable GAAP measurement to NOI. Because of the inclusion of items such as interest, depreciation, and amortization, the use of 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. The Company believes that NOI is helpful to investors as a measure of operating
performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. The Company uses NOI as a key management tool when
evaluating performance and growth of particular properties and/or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization interest expense and non-property specific
expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company
overall.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of depreciable operating
property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company considers FFO to be a useful measure for reviewing
comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, 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 net income (loss).
Management believes that the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more
meaningful. FFO is computed in accordance with the Company's interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in
accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than the Company. The Company also uses FFO excluding certain items, which excludes certain gain and
loss items that management considers unrelated to the operational and financial performance of our core business. We believe that this provides investors with another financial measure of our operating
performance that is more comparable when evaluating period over period results.
Because FFO excludes significant economic components of net income (loss) including depreciation and amortization, FFO should be used as an adjunct to net income (loss) and not as an alternative to net
income (loss). The principal limitation of FFO is that it does not represent cash flow from operations as defined by GAAP and is a supplemental measure of performance that does not replace net income (loss)
as a measure of performance or net cash provided by operating activities as a measure of liquidity. In addition, 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 only provides investors with an additional performance measure that, when combined with measures computed in accordance with GAAP such as
net income (loss), cash flow from operating activities, investing activities and financing activities, provide investors with an indication of our ability to service debt and to fund acquisitions and other
expenditures. Other REITs may use different methods for calculating FFO, accordingly, our FFO may not be comparable to other REITs.
Recurring earnings before interest, tax, depreciation and amortization (Recurring EBITDA) is defined as NOI plus other income, plus (minus) equity earnings (loss) from affiliates, minus general and
administrative expenses. EBITDA includes EBITDA from discontinued operations. Recurring EBITDA provides a further tool to evaluate ability to incur and service debt and to fund dividends and other cash
needs. Recurring EBITDA does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, including the repayment of
principal on debt and payment of dividends and distributions. Recurring EBITDA should not be considered as an alternative to net income (loss) (calculated in accordance with GAAP) for purposes of evaluating
our operating performance, or cash flows (calculated in accordance with GAAP) as a measure of liquidity. Recurring EBITDA as calculated by us may not be comparable to similarly titled, but differently
calculated, measures of other REITs.
NET INCOME TO FFO RECONCILIATION
20
Three Months Ended March 31, Year Ended December 31,
2017 2016 2016 2015 2014
Net income attributable to Sun Communities, Inc. common stockholders $ 21,104 $ 7,875 $ 17,369 $ 137,325 $ 22,376
Adjustments:
Depreciation and amortization 62,817 48,077 221,576 178,048 134,252
Amounts attributable to noncontrolling interests 900 349 (41) 9,644 1,086
Preferred return to preferred OP units 586 625 2,462 2,612 281
Preferred distribution to Series A-4 preferred stock 665 — — — 76
Asset impairment charge — — — — 837
Gain on disposition of properties, net — — — (125,376) (17,654)
Gain on disposition of assets, net (2,681) (3,656) (15,713) (10,125) (6,705)
FFO attributable to Sun Communities, Inc. common stockholders and
dilutive convertible securities
83,391 53,270 225,653 192,128 134,549
Adjustments:
Transaction costs 2,386 2,721 31,914 17,803 18,259
Other acquisition related costs 844 — 3,328 — —
Income from affiliate transactions — — (500) (7,500) —
Foreign currency exchange — — 5,005 — —
Contingent liability re-measurement — — 181 — —
Gain on acquisition of property — — (510) — —
Hurricane related costs — — 1,172 — —
Gain on settlement — — — — (4,452)
Preferred stock redemption costs — — — 4,328 —
Extinguishment of debt 466 — 1,127 2,800 —
Other income, net (752) — — — —
Debt premium write-off (414) — (839) — —
Deferred tax (benefit)/expense (300) — (400) 1,000 —
FFO attributable to Sun Communities, Inc. common stockholders and
dilutive convertible securities excluding certain items
$ 85,621 $ 55,991 $ 266,131 $ 210,559 $ 148,356
Weighted average common shares outstanding - basic 72,677 57,736 65,856 53,686 41,337
Weighted average common shares outstanding - fully diluted 77,688 62,009 70,165 57,979 44,022
FFO attributable to Sun Communities, Inc. common stockholders and
dilutive convertible securities per share - fully diluted
$ 1.07 $ 0.86
$ 3.22 $ 3.31 $ 3.06
FFO attributable to Sun Communities, Inc. common stockholders and
dilutive convertible securities per share excluding certain items - fully diluted
$ 1.10 $ 0.90 $ 3.79 $ 3.63 $ 3.37
amounts in thousands except per share data
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
NET INCOME TO NOI RECONCILIATION
21
Three Months Ended March 31, Year Ended December 31,
2017 2016 2016 2015 2014
Net income attributable to Sun Communities, Inc., common stockholders $ 21,104 $ 7,875 $ 17,369 $ 137,325 $ 22,376
Other revenues (5,525) (4,351) (21,150) (18,157) (15,498)
Home selling expenses 3,111 2,137 9,744 7,476 5,235
General and administrative 17,932 13,792 64,087 47,455 37,387
Transaction costs 2,386 2,721 31,914 17,803 18,259
Depreciation and amortization 62,766 48,412 221,770 177,637 133,726
Asset impairment charge — — — — 837
Extinguishment of debt 466 — 1,127 2,800 —
Interest expense 32,106 27,081 122,315 110,878 76,981
Other income (expenses), net (752) — 5,848 — —
Gain on disposition of properties, net — — — (125,376) (17,654)
Gain on settlement — — — — (4,452)
Current tax expense 178 228 683 158 219
Deferred tax (benefit)/expense (300) — (400) 1,000 —
Income from affiliate transactions — — (500) (7,500) (1,200)
Preferred return to preferred OP units 1,174 1,273 5,006 4,973 2,935
Amounts attributable to noncontrolling interests 1,088 276 150 10,054 1,752
Preferred stock distributions 2,179 2,354 8,946 13,793 6,133
Preferred stock redemption costs — — — 4,328 —
NOI/Gross Profit $ 137,913 $ 101,798 $ 466,909 $ 384,647 $ 267,036
amounts in thousands
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
Three Months Ended March 31, Year Ended December 31,
2017 2016 2016 2015 2014
Real Property NOI $ 122,745 $ 88,449 $ 403,337 $ 335,567 $ 232,478
Rental Program NOI 22,956 21,050 85,086 83,232 70,232
Home Sales NOI / Gross Profit 6,380 6,553 30,087 20,787 13,398
Ancillary NOI / Gross Profit 1,551 964 9,999 7,013 5,217
Site rent from Rental Program (included in Real Property NOI) (15,719) (15,218) (61,600) (61,952) (54,289)
NOI/Gross Profit $ 137,913 $ 101,798 $ 466,909 $ 384,647 $ 267,036
22
NET INCOME TO RECURRING EBITDA RECONCILIATION
Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information.
Three Months Ended March 31, Year Ended December 31,
2017 2016 2016 2015 2014
Net income attributable to Sun Communities, Inc., common stockholders $ 21,104 $ 7,875 $ 17,369 $ 137,325 $ 22,376
Interest 31,322 26,294 119,163 107,659 73,771
Interest on mandatorily redeemable preferred OP units 784 787 3,152 3,219 3,210
Depreciation and amortization 62,766 48,412 221,770 177,637 133,726
Asset impairment charge — — — — 837
Extinguishment of debt 466 — 1,127 2,800 —
Transaction costs 2,386 2,721 31,914 17,803 18,259
Other income (expense), net (752) — 5,848 — —
Gains on disposition of properties, net — — — (125,376) (17,654)
Gain on settlement — — — — (4,452)
Current tax expense 178 228 683 158 219
Deferred tax (benefit) / expense (300) — (400) 1,000 —
Income from affiliate transactions — — (500) (7,500) (1,200)
Preferred return to preferred OP units 1,174 1,273 5,006 4,973 2,935
Amounts attributable to noncontrolling interests 1,088 276 150 10,054 1,752
Preferred stock distributions 2,179 2,354 8,946 13,793 6,133
Preferred stock redemption costs — — — 4,328 —
Recurring EBITDA $ 122,395 $ 90,220 $ 414,228 $ 347,873 $ 239,912
amounts in thousands