Sun Communities, Inc. Reports 2022 Second Quarter Results

Jul 25th, 2022 17:00 EST

Southfield, MI, July 25, 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”) communities, recreational vehicle (“RV”) resorts and marinas (collectively, the “properties”), today reported its second quarter results for 2022.

Financial Results for the Quarter and Six Months Ended June 30, 2022

For the quarter ended June 30, 2022, total revenues increased by $210.4 million, or 34.8 percent, to $814.3 million compared to $603.9 million for the same period in 2021. Net income attributable to common shareholders was $74.0 million, or $0.61 per diluted common share, compared to net income attributable to common shareholders of $110.8 million, or $0.98 per diluted common share, for the same period in 2021.

For the six months ended June 30, 2022, total revenues increased by $316.9 million, or 30.3 percent, to approximately $1.4 billion compared to approximately $1.0 billion for the same period in 2021. Net income attributable to common stockholders was $74.7 million, or $0.63 per diluted common share, compared to net income attributable to common stockholders of $135.6 million, or $1.22 per diluted common share, for the same period in 2021.

Non-GAAP Financial Measures and Portfolio Performance

  • Core Funds from Operations (“Core FFO”)(1) for the quarter ended June 30, 2022, was $2.02 per diluted share and OP unit (“Share”) as compared to $1.80 in the corresponding period in 2021, a 12.2 percent increase. Core FFO(1) for the six months ended June 30, 2022, was $3.37 per share as compared to $3.08 in the corresponding period, an increase of 9.4 percent.
  • Constant Currency Core FFO for the quarter and six months ended June 30, 2022, was $2.04 per Share and $3.39 per Share, respectively, when translating the Company’s results from the United Kingdom (“UK”), Canada and Australia at the foreign currency translation rates used in first quarter 2022 guidance.
  • Same Property(2) Net Operating Income (“NOI”)(1) for the Company’s MH and RV properties increased by 3.6 percent for the quarter ended June 30, 2022, and 5.5 percent for the six months ended June 30, 2022 as compared to the corresponding periods in 2021.
  • Same Property(2) NOI for the Company’s Marina properties increased by 7.1 percent for the quarter ended June 30, 2022, and 5.0 percent for the six months ended June 30, 2022 as compared to the corresponding periods in 2021.
  • Acquisitions totaled $1.8 billion during and subsequent to the quarter ended June 30, 2022, including 56 MH communities in the United States and the UK and three marinas in the United States.

“Sun produced solid earnings growth in the second quarter, driven by positive revenue and NOI growth across the portfolio, along with the contribution from recent acquisitions,” said Gary A. Shiffman, Chairman and CEO. “We delivered another record quarter of revenue-producing site gains which should contribute to sustained revenue growth. We are continuing to see healthy demand for attainable housing and affordable vacations, and while transient RV is coming off of record levels; the desire to be at a Sun Outdoors RV resort is evident as we convert transient guests to annual customers as vacationers make a Sun community their long-term destination. Additionally, we completed the acquisition of Park Holidays in the UK and are focused on integrating these assets into our MH portfolio and realizing their accretive value. Sun has a cycle-tested portfolio of communities, resorts and marinas that deliver durable and reliable cash flows. We continue to see very favorable supply-demand dynamics and have a differentiated and experienced platform to acquire, develop and efficiently operate properties to create shareholder value.”

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.2 percent at June 30, 2022 as compared to 97.4 percent at June 30, 2021, a decrease of 20 basis points.

During the quarter ended June 30, 2022, the number of MH and annual RV revenue producing sites increased by 950 sites as compared to an increase of 583 sites during the quarter ended June 30, 2021, a 63.0 percent increase.

During the six months ended June 30, 2022, MH and annual RV revenue producing sites increased by 1,620 sites as compared to an increase of 1,097 sites during the six months ended June 30, 2021, a 47.7 percent increase.

Same Property(2) Results – MH and RV

For the 425 MH and RV properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases, both in total, and by segment, for the quarter and six months ended June 30, 2022:

  Quarter Ended June 30, 2022
  Total MH and RV Same Property   MHSame Property   RVSame Property
Revenue         4.8         %           4.4         %           5.4         %
Expense         7.3         %           8.3         %           6.4         %
NOI         3.6         %           3.1         %           4.6         %

  Six Months Ended June 30, 2022
  Total MH and RV Same Property   MHSame Property   RVSame Property
Revenue         6.8         %           4.4         %           11.3         %
Expense         9.7         %           8.6         %           11.0         %
NOI         5.5         %           3.1         %           11.5         %

Same Property adjusted occupancy(3) increased to 98.5 percent at June 30, 2022 from 96.8 percent at June 30, 2021, an increase of 170 basis points.Same Property(2) Results – Marina

For the 101 Marina properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases for the quarter and six months ended June 30, 2022:

  Quarter Ended June 30, 2022   Six Months Ended June 30, 2022
Revenue         6.1         %           6.8         %
Expense         3.4         %           10.0         %
NOI         7.1         %           5.0         %

UK Operations Results

During the quarter ended June 30, 2022, as previously announced, the Company acquired Park Holidays, a portfolio of 40 properties and an additional two properties that are managed by the Park Holidays team. UK operations, a component of the Company’s MH segment, contributed $40.5 million of NOI in the quarter ended June 30, 2022. Refer to page 16 for additional information regarding UK operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended June 30, 2022, the Company acquired the following properties:

Property Name   Property Type   Sites,Wet Slips and Dry Storage Spaces   Development Sites   State, Province or Country   Total Purchase Price (in millions)   Month Acquired
Park Holidays(a)   MH           15,906                   1,140           UK   $         1,242.1           April
Christies Parks(b)   MH           249                   —           UK             10.1           April
Bluewater Yacht Sales   Marina           200                   —           Various states             25.0           April
Jarrett Bay Boatworks (Bluewater Yacht Sales)(b)   Marina           —                   —           Various states             17.6           April
Bodmin Holiday Park   MH           69                   —           UK             12.6           April
Kittery Point   Marina           62                   —           ME             7.9           May
Spanish Trails MHC   MH           195                   6           AZ             21.9           June
Pine Acre Trails   MH           251                   603           TX             29.7           June
Bel Air Estates & Sunrise Estates(c)   MH           379                   —           CA             40.0           June
Park Leisure(d)   MH           2,914                   391           UK             223.4           June
Subtotal               20,225                   2,140               $         1,630.3            
                         
Acquisitions subsequent to quarter end                
Gurney’s Star Island Marina & Resort   Marina           230                   —           NY   $         190.0           July
Subtotal               230                   —               $         190.0            
                         
Total acquisitions               20,455                   2,140               $         1,820.3            

(a) Includes 40 owned and two managed properties.

(b) Combined with an existing property.

(c) Includes two properties.

(d) Includes 11 communities.

During and subsequent to the six months ended June 30, 2022, the Company acquired 63 properties totaling 21,860 sites, wet slips and dry storage spaces and 2,596 sites for expansion for a total purchase price of $2.1 billion.

Development and Expansion Activities

During and subsequent to the quarter ended June 30, 2022, the Company acquired three land parcels located in the United States for the potential development of over 650 sites, for an aggregate purchase price of $10.7 million.

During the quarter and the six months ended June 30, 2022, the Company completed the construction of nearly 110 sites and over 134 sites, respectively, in one ground-up development and three expansion sites.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of June 30, 2022, the Company had $6.9 billion in debt outstanding. The weighted average interest rate was 3.4 percent and the weighted average years to maturity was 7.9 years. At June 30, 2022, the Company’s net debt to trailing twelve-month Recurring EBITDA(1) ratio was 6.3 times.

Senior Credit Facility Amendment

As previously announced, during the quarter ended June 30, 2022, in conjunction with the closing of the Park Holidays acquisition, the Company amended its senior credit facility.

The amendment increased the aggregate amount of the Company’s senior credit facility to $4.2 billion with the ability to upsize the total borrowings by an additional $800.0 million, subject to certain conditions. The increased aggregate amount under the senior credit facility consists of the following: (a) a revolving loan in the amount up to $3.05 billion and (b) a term loan facility of $1.15 billion, with the ability to draw funds from the combined facilities in U.S. dollars, Pounds sterling, Euros, Canadian dollars and Australian dollars, subject to certain limitations. The amendment extended the maturity date of the revolving loan facility to April 7, 2026. At the Company’s option, that maturity date may be extended two additional six-month periods. In addition, the amendment established the maturity date of the term loan facility under the amendment as April 7, 2025, which may not be further extended.

Senior Unsecured Notes

As previously announced, during the quarter ended June 30, 2022, the Company issued $600.0 million of senior unsecured notes with an interest rate of 4.2 percent and a 10-year term, due April 15, 2032 (the “2032 Notes”). The net proceeds from the offering were $592.3 million after deducting underwriters’ discounts and estimated offering expenses. The Company used the net proceeds from the offering to repay borrowings outstanding under its senior credit facility.

In connection with the 2032 Notes issuance, the Company settled four 10-year Treasury rate locks totaling $600.0 million and received a settlement payment of $35.3 million. This lowered the effective interest rate on the 2032 Notes from 4.2 percent to 3.6 percent.

Interest Rate Swap

Subsequent to the quarter ended June 30, 2022, the Company entered into interest rate swap agreements to hedge variable rate borrowings of £400.0 million under the term loan on the Senior Credit Facility. The interest rate swaps lock in a total fixed rate, inclusive of spread, of 3.67 percent through the term loan maturity date of April, 2025.Equity Transactions

Forward Share Settlements

As previously announced, during the quarter ended June 30, 2022, the Company settled forward sale agreements with respect to 1,200,000 shares of common stock under its at the market offering sales program and 4,025,000 shares of common stock in connection with its November 2021 registered forward equity offering. The aggregate net proceeds from the settlement of these forward sale agreements was $934.9 million. The Company used the net proceeds to repay borrowings outstanding under its senior credit facility.

Subsequent to the quarter ended June 30, 2022, the Company settled forward sale agreements with respect to 986,909 shares of common stock under its at the market offering sales program. The aggregate net proceeds from the settlement of these forward sale agreements was $180.7 million. The Company used the net proceeds to repay borrowings outstanding under its senior credit facility.

At the Market Offering

During the quarter ended June 30, 2022, the Company entered into forward sale agreements with respect to 290,600 shares of common stock under its at the market offering program for $50.1 million. These forward sale agreements were not settled as of June 30, 2022, but the Company expects to settle them by June 30, 2023.

The following table presents the Company’s outstanding unsettled forward sale agreements as of July 22, 2022:

Forward Equity Agreements   Shares Sold   Shares Settled   Shares Remaining   Net Proceeds Received(in millions)   Anticipated Net Proceeds Remaining (in millions)
Q3 2021 ATM Forward Agreements           107,400                   —                   107,400           $         —           $         21.4        
Q1 2022 ATM Forward Agreements           600,503                   455,500                   145,003                     80.3                     26.0        
Q2 2022 ATM Forward Agreements           290,600                   18,700                   271,900                     3.4                     46.7        
Total Unsettled Forward Equity Agreements           998,503                   474,200                   524,303           $         83.7           $         94.1        

GUIDANCE

The Company is updating its full-year guidance for Basic earnings per share and incorporating the anticipated effects from translating the Company’s results from the UK, Canada and Australia by introducing a constant currency adjustment to Core FFO (“Constant Currency Core FFO”) per fully diluted share(1)(4). The Company is revising its full-year guidance for Basic earnings per share from the prior range of $2.46 – $2.58 to a new range of $1.91 – $2.01. The Company is revising its Constant Currency Core FFO per fully diluted share(1)(4) from $7.20 – $7.32 to a new range of $7.22 – $7.32, representing a 1-cent increase at the midpoint. The Company is also establishing guidance for third quarter Basic earnings per share and Constant Currency Core FFO per fully diluted share(1)(4) of $1.25 – $1.30 and $2.56 – $2.61, respectively. Reconciliations of projected Basic earnings per share to Constant Currency Core FFO per fully diluted share(1)(4) are as follows:

Reconciliation of Basic earnings per share to Core FFO per diluted share and Constant Currency Core FFO per diluted share(1)(4)   Previous RangeFY 2022E   Revised RangeFY 2022E   3Q 2022E
Basic earnings per share   $         2.46             $         2.58             $         1.91             $         2.01             $         1.25             $         1.30          
Depreciation and amortization             4.65                       4.65                       4.94                       4.94                       1.26                       1.26          
Gain on sale of assets             (0.46 )             (0.46 )             (0.51 )             (0.51 )             (0.09 )             (0.09 )
Other adjustments(a)             0.55                       0.55                       0.83                       0.83                       0.10                       0.10          
Core FFO per fully diluted Share   $         7.20             $         7.32             $         7.17             $         7.27             $         2.52             $         2.57          
Constant currency adjustment(b)             —                       —                       0.05                       0.05                       0.04                       0.04          
Constant Currency Core FFO per fully diluted share   $         7.20             $         7.32             $         7.22             $         7.32             $         2.56             $         2.61          

(a) Other adjustments include the same categories presented in the table that reconciles the Net income attributable to SUI common shareholders to FFO on page 9.

(b) The Company calculates the foreign currency translation impact comparing the weighted average foreign currency rate for revised guidance ($1.2146 U.S. dollars (“USD”) per British pound sterling (“GBP”)) with the weighted average foreign currency rate used in April 2022 guidance ($1.330 USD per GBP). The impact of fluctuations in Canadian and Australian foreign currency rates on revised or initial guidance are not material.

Basic earnings per share, Core FFO per fully diluted share(1)(4) and Constant Currency Core FFO per fully diluted share(1)(4) are calculated independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation. Seasonality of Constant Currency Core FFO per fully diluted Share(1)(4) is based off the midpoint of full-year guidance and is expected to be as follows:

  1Q22   2Q22   3Q22   4Q22
Seasonality of Constant Currency Core FFO per fully diluted Share(1)(4) 18.5 %   28.0 %   35.5 %   18.0 %

Same Property NOI Growth: The Company is updating its expectations for Same Property NOI Growth as follows:

    Previous Range   Revised Range   Guidance
MH and RV 2022 Same Property Portfolio (428 properties):   FY 2022E   FY 2022E   3Q 2022E
MH and RV Same Property NOI(1) growth   6.5% – 7.3%   6.0% – 6.8%   6.4% – 7.2%

Within the Marina Portfolio, certain amounts have been revised to conform with current presentation, with no effect on net income. These include reclassifications of certain revenues and expenses between Real property and Service, retail, dining and entertainment within our Marina portfolio. 2021 Same Property Marina NOI is presented below reflecting these reclassifications, along with updated guidance on NOI growth the Company expects from the 2022 same property Marina portfolio:

Marina 2022 Same Property Portfolio (101 properties) (in milions):   2021 Marina Same Property NOI(1) Originally Reportedin Feb-2022 for FY 2022 Guidance   2021 Marina Same Property NOI(1) Reclassified for FY 2022 Guidance, As Revised
Marina Same Property NOI(1)   $         132.2           $         151.1        

    Original Guidance FY 2022E Provided in Feb-2022   Current Guidance
Marina 2022 Same Property Growth:     FY 2022E   3Q22E
Marina Same Property NOI(1) growth   6.0% – 7.4%   6.0% – 6.8%   7.6% – 9.0%

  1H22   3Q22   4Q22
Seasonality of Marina Same Property NOI(1) 45.2 %   31.5 %   23.3 %

UK Operations Guidance. For the third quarter ending September 30, 2022, and the six months ending December 31, 2022, the Company is establishing guidance for NOI from its UK Operations before and after the anticipated effects from currency translation. The following guidance for UK Operations is incorporated into the Company’s Core FFO per fully diluted share(1)(4) and Constant Currency Core FFO per fully diluted share(1)(4) guidance and seasonality figures provided above (in millions).

    Quarter Ending   Six Months Ending
    September 30, 2022   December 31, 2022
UK Operations NOI   $53.9 – $56.7   $72.4 – $76.2
UK Operations NOI – constant currency   $59.0 – $62.1   $79.3 – $83.5

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 the date of this release. These estimates exclude 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 second quarter results will be held on Tuesday, July 26, 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 August 9, 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 13730379. 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.

SUI is a REIT that, as of June 30, 2022, owned, operated, or had an interest in a portfolio of 661 developed MH, RV and Marina properties comprising over 180,300 developed sites and over 45,900 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

For more information about SUI, please visit www.suncommunities.com.

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 we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this filing 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 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 filing. 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 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 filing, 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.

Portfolio Overview, Research Coverage and Inquiries(As of June 30, 2022)

 

RESEARCH COVERAGE            
             
Refer to the Investor relations section of our website for research analyst coverage detail.
             
INQUIRIES            
             
The Company welcomes questions or comments from shareholders, analysts, investment managers, media or any prospective investor. Please address all inquiries to our Investor Relations department.
             
At Our Website   www.suncommunities.com        
             
By Email   [email protected]    
             
By Phone   (248) 208-2500        

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

 

  Quarter Ended
  6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
Financial Information                  
Total revenues $         814.3           $         548.5           $         542.4           $         684.3           $         603.9        
Net income $         81.3           $         1.5           $         14.8           $         250.2           $         120.8        
Net income attributable to SUI common shareholders $         74.0           $         0.7           $         12.8           $         231.8           $         110.8        
Basic earnings per share* $         0.61           $         0.01           $         0.11           $         2.00           $         0.98        
Diluted earnings per share* $         0.61           $         0.01           $         0.11           $         2.00           $         0.98        
                   
Cash distributions declared per common share* $         0.88           $         0.88           $         0.83           $         0.83           $         0.83        
                   
FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) $         246.0           $         155.3           $         152.3           $         223.1           $         198.4        
Core FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) $         254.6           $         162.8           $         155.8           $         244.5           $         209.6        
Constant Currency Core FFO Attributable to SUI Shareholders and Dilutive Convertible Securities $         256.6           N/A   N/A   N/A   N/A
FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per share – fully diluted* $         1.95           $         1.28           $         1.28           $         1.92           $         1.70        
Core FFO attributable to SUI common shareholders and dilutive convertible securities(1)(4) per share – fully diluted* $         2.02           $         1.34           $         1.31           $         2.11           $         1.80        
Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities Per Share – Fully Diluted* $         2.04           N/A   N/A   N/A   N/A
                   
Recurring EBITDA(1) $         328.4           $         221.0           $         208.6           $         314.5           $         268.1        
                   
Balance Sheet                  
Total assets $         16,397.8           $         13,914.2           $         13,494.1           $         12,583.3           $         12,041.0        
Total debt $         6,930.9           $         6,076.5           $         5,671.8           $         4,689.4           $         4,311.2        
Total liabilities $         8,566.3           $         6,980.7           $         6,474.6           $         5,488.5           $         5,099.6        

  Quarter Ended
  6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
Operating Information*                  
Properties         661             603             602             584             569  
                   
United States and Canada                  
Manufactured home sites         99,185             98,279             98,621             98,301             97,448  
Annual RV sites         31,768             31,121             30,540             29,640             28,807  
Transient RV sites         28,682             29,267             29,847             27,922             27,032  
Total sites         159,635             158,667             159,008             155,863             153,287  
Marina wet slips and dry storage spaces(a)         45,905             45,725             45,155             43,615             40,179  
                   
MH occupancy         96.3         %           96.7         %           96.6         %           96.6         %           96.7         %
Annual RV occupancy         100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Blended MH and annual RV occupancy         97.2         %           97.5         %           97.4         %           97.4         %           97.4         %
                   
United Kingdom                  
Manufactured home sites         17,330             616     N/A   N/A   N/A
Transient RV sites         3,349             —             N/A   N/A   N/A
Total sites         20,679             616             —                     —                     —          
                   
MH occupancy         91.4         %           94.8         %   N/A   N/A   N/A

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

  Quarter Ended
  6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
Revenue Producing Site Net Gains(5)*                  
MH net leased sites(i)         132           65           321                   144           226
RV net leased sites(i)         818           605           489                   432           357
Total net leased sites(i)         950           670           810                   576           583

(i) These figures do not include UK operations volumes.

Consolidated Balance Sheets(amounts in millions)

 

  June 30, 2022   December 31, 2021
Assets      
Land $         3,766.7             $         2,556.3          
Land improvements and buildings           10,867.1                       9,958.3          
Rental homes and improvements           580.6                       591.7          
Furniture, fixtures and equipment           749.9                       656.4          
Investment property           15,964.3                       13,762.7          
Accumulated depreciation           (2,554.3 )             (2,337.2 )
Investment property, net           13,410.0                       11,425.5          
Cash, cash equivalents and restricted cash           184.7                       78.2          
Marketable securities           114.6                       186.9          
Inventory of manufactured homes           108.1                       51.1          
Notes and other receivables, net           509.0                       469.6          
Goodwill           954.0                       495.4          
Other intangible assets, net           399.1                       306.8          
Other assets, net           718.3                       480.6          
Total Assets $         16,397.8             $         13,494.1          
Liabilities      
Secured debt $         3,335.7             $         3,380.7          
Unsecured debt           3,595.2                       2,291.1          
Distributions payable           109.3                       98.4          
Advanced reservation deposits and rent           385.2                       242.8          
Accrued expenses and accounts payable           361.0                       237.5          
Other liabilities           779.9                       224.1          
Total Liabilities           8,566.3                       6,474.6          
Commitments and contingencies      
Temporary equity           293.3                       288.9          
Shareholders’ Equity      
Common stock           1.2                       1.2          
Additional paid-in capital           9,159.1                       8,175.6          
Accumulated other comprehensive income / (loss)           (28.3 )             3.1          
Distributions in excess of accumulated earnings           (1,684.7 )             (1,556.0 )
Total SUI shareholders’ equity           7,447.3                       6,623.9          
Noncontrolling interests      
Common and preferred OP units           86.2                       86.8          
Consolidated entities           4.7                       19.9          
Total noncontrolling interests           90.9                       106.7          
Total Shareholders’ Equity           7,538.2                       6,730.6          
Total Liabilities, Temporary Equity and Shareholders’ Equity $         16,397.8             $         13,494.1          

Statements of Operations – Quarter to Date Comparison(In millions, except for per share amounts) (Unaudited)

 

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   Change   % Change   June 30, 2022   June 30, 2021   Change   % Change
Revenues                              
Real property (excluding transient) $         389.6             $         328.3             $         61.3                     18.7         %   $         732.8             $         626.3             $         106.5                     17.0         %
Real property – transient           98.1                       77.0                       21.1                     27.4         %             143.1                       109.5                       33.6                     30.7         %
Home sales           142.7                       81.8                       60.9                     74.4         %             207.4                       134.0                       73.4                     54.8         %
Service, retail, dining and entertainment           168.0                       107.1                       60.9                     56.9         %             248.8                       157.8                       91.0                     57.7         %
Interest           7.3                       2.8                       4.5                     160.7         %             14.1                       5.4                       8.7                     161.1         %
Brokerage commissions and other, net           8.6                       6.9                       1.7                     24.6         %             16.6                       12.9                       3.7                     28.7         %
Total Revenues           814.3                       603.9                       210.4                     34.8         %             1,362.8                       1,045.9                       316.9                     30.3         %
Expenses                              
Property operating and maintenance           155.2                       123.8                       31.4                     25.4         %             284.5                       224.4                       60.1                     26.8         %
Real estate tax           27.7                       23.2                       4.5                     19.4         %             53.8                       45.6                       8.2                     18.0         %
Home costs and selling           92.9                       58.8                       34.1                     58.0         %             138.8                       100.4                       38.4                     38.2         %
Service, retail, dining and entertainment           147.9                       84.7                       63.2                     74.6         %             218.4                       133.1                       85.3                     64.1         %
General and administrative           62.2                       45.3                       16.9                     37.3         %             117.9                       83.5                       34.4                     41.2         %
Catastrophic event-related charges, net           0.1                       0.4                       (0.3 )           (75.0)        %             0.1                       2.8                       (2.7 )           (96.4)        %
Business combinations           15.0                       (0.2 )             15.2             N/M             15.5                       1.0                       14.5             N/M
Depreciation and amortization           150.2                       127.1                       23.1                     18.2         %             298.7                       251.0                       47.7                     19.0         %
Loss on extinguishment of debt           0.1                       8.1                       (8.0 )           (98.8)        %             0.4                       8.1                       (7.7 )           (95.1)        %
Interest           55.3                       37.7                       17.6                     46.7         %             100.5                       77.2                       23.3                     30.2         %
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.0                       0.1                     10.0         %             2.1                       2.0                       0.1                     5.0         %
Total Expenses           707.7                       509.9                       197.8                     38.8         %             1,230.7                       929.1                       301.6                     32.5         %
Income Before Other Items           106.6                       94.0                       12.6                     13.4         %             132.1                       116.8                       15.3                     13.1         %
Gain / (loss) on remeasurement of marketable securities           (32.3 )             27.5                       (59.8 )   N/M             (66.8 )             31.2                       (98.0 )   N/M
Gain / (loss) on foreign currency exchanges           9.0                       (0.1 )             9.1             N/M             6.8                       (0.1 )             6.9             N/M
Gain / (loss) on dispositions of properties           (0.1 )             —                       (0.1 )   N/A             13.3                       —                       13.3             N/A
Other income / (expense), net(6)           0.4                       (0.2 )             0.6             N/M             (0.2 )             (0.7 )             0.5                     (71.4)        %
Gain on remeasurement of notes receivable           —                       0.1                       (0.1 )   N/A             0.2                       0.5                       (0.3 )           (60.0)        %
Income from nonconsolidated affiliates           0.9                       0.8                       0.1                     12.5         %             1.8                       2.0                       (0.2 )           (10.0)        %
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates           0.4                       (0.1 )             0.5             N/M             0.5                       —                       0.5             N/A
Current tax expense           (3.9 )             (1.2 )             (2.7 )           (225.0)        %             (5.2 )             (1.0 )             (4.2 )           420.0         %
Deferred tax benefit           0.3                       —                       0.3             N/A             0.3                       0.1                       0.2                     200.0         %
Net Income           81.3                       120.8                       (39.5 )           (32.7)        %             82.8                       148.8                       (66.0 )           (44.4)        %
Less: Preferred return to preferred OP units / equity interests           3.1                       3.0                       0.1                     3.3         %             6.1                       5.9                       0.2                     3.4         %
Less: Income attributable to noncontrolling interests           4.2                       7.0                       (2.8 )           (40.0)        %             2.0                       7.3                       (5.3 )           (72.6)        %
Net Income Attributable to SUI Common Shareholders $         74.0             $         110.8             $         (36.8 )           (33.2)        %   $         74.7             $         135.6             $         (60.9 )           (44.9)        %
                               
Weighted average common shares outstanding – basic           120.0                       112.1                       7.9                     7.0         %             117.6                       110.0                       7.6                     6.9         %
Weighted average common shares outstanding – diluted           120.0                       112.1                       7.9                     7.0         %             120.4                       112.6                       7.8                     6.9         %
                               
Basic earnings per share $         0.61             $         0.98             $         (0.37 )           (37.8)        %   $         0.63             $         1.22             $         (0.59 )           (48.4)        %
Diluted earnings per share $         0.61             $         0.98             $         (0.37 )           (37.8)        %   $         0.63             $         1.22             $         (0.59 )           (48.4)        %

N/M = Percentage change is not meaningful.

N/A = Percentage change is not applicable.

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

 

Outstanding Securities – As of June 30, 2022
                   
  Number of Units / Shares Outstanding   Conversion Rate*   If Converted(a)   Issuance Price*Per Unit   Annual Distribution Rate
Non-convertible Securities                  
Common shares         121,644           N/A   N/A   N/A   $3.52^
                   
Convertible Securities                  
Common OP units         2,565                   1.0000                   2,565           N/A   Mirrors common shares distributions
                   
Series A-1 preferred OP units         272                   2.4390                   664           $         100                   6.00         %
Series A-3 preferred OP units         40                   1.8605                   75           $         100                   4.50         %
Series C preferred OP units         306                   1.1100                   340           $         100                   5.00         %
Series D preferred OP units         489                   0.8000                   391           $         100                   4.00         %
Series E preferred OP units         85                   0.6897                   59           $         100                   5.50         %
Series F preferred OP units         90                   0.6250                   56           $         100                   3.00         %
Series G preferred OP units         241                   0.6452                   155           $         100                   3.20         %
Series H preferred OP units         581                   0.6098                   355           $         100                   3.00         %
Series I preferred OP units         922                   0.6098                   562           $         100                   3.00         %
Series J preferred OP units         240                   0.6061                   145           $         100                   2.85         %

^ 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 June 30, 2022            
             
Equity   Shares   Share Price*   Total
Common shares           121,644           $         159.36           $         19,385.2        
Common OP units           2,565           $         159.36                     408.8        
Subtotal           124,209               $         19,794.0        
             
Preferred OP units, as converted           2,802           $         159.36                     446.5        
Total diluted shares outstanding           127,011               $         20,240.5        
             
Debt            
Secured debt           $         3,335.7        
Unsecured debt                     3,595.2        
Total debt           $         6,930.9        
             
Total Capitalization           $         27,171.4        

Debt Analysis(amounts in millions, except for *)

 

  Quarter Ended
  6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
Debt Outstanding                  
Secured debt $         3,335.7             $         3,366.6             $         3,380.7             $         3,403.4             $         3,457.7          
Unsecured debt                  
Senior unsecured notes           1,778.6                       1,186.7                       1,186.4                       591.3                       591.7          
Line of credit and other debt(7)           1,746.7                       1,453.3                       1,034.8                       624.8                       191.9          
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           3,595.2                       2,709.9                       2,291.1                       1,286.0                       853.5          
Total debt $         6,930.9             $         6,076.5             $         5,671.8             $         4,689.4             $         4,311.2          
                   
% Fixed / Floating*                  
Fixed           74.9         %             76.2         %             81.8         %             86.7         %             94.7         %
Floating           25.1         %             23.8         %             18.2         %             13.3         %             5.3         %
Total           100.0         %             100.0         %             100.0         %             100.0         %             100.0         %
                   
Weighted Average Interest Rates*                  
Secured debt           3.78         %             3.78         %             3.78         %             3.78         %             3.75         %
Senior unsecured notes           3.10         %             2.55         %             2.55         %             2.70         %             2.70         %
Line of credit and other debt(7)           2.76         %             1.25         %             0.98         %             0.98         %             0.93         %
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         %             2.96         %             3.04         %             3.30         %             3.52         %
                   
Debt Ratios*                  
Net Debt / Recurring EBITDA(1) (TTM)           6.3                       5.9                       5.7                       4.9                       5.1          
Net Debt / Enterprise Value           25.0         %             21.9         %             18.0         %             17.1         %             16.8         %
Net Debt / Gross Assets           35.7         %             36.6         %             35.4         %             31.2         %             29.6         %
                   
Coverage Ratios*                  
Recurring EBITDA(1) (TTM) / Interest   5.9       6.2       6.2       6.1       5.6  
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution   5.8       6.0       6.0       6.0       5.5  

Maturities / Principal Amortization Next Five Years   2022       2023       2024       2025       2026  
Secured debt                  
Maturities $         55.1             $         185.6             $         315.4             $         50.6             $         521.6          
Principal amortization           30.6                       60.9                       57.4                       54.0                       45.9          
Line of credit and other debt(7)           3.0                       10.0                       10.0                       1,065.2                       662.0          
Preferred Equity – Sun NG Resorts – mandatorily redeemable           —                       —                       33.4                       1.8                       —          
Preferred OP units – mandatorily redeemable           —                       —                       27.4                       —                       —          
Total $         88.7             $         256.5             $         443.6             $         1,171.6             $         1,229.5          
                   
Weighted average rate of maturities*           4.65         %             4.08         %             4.47         %             4.04         %             3.75         %

Reconciliations to Non-GAAP Financial Measures

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

 

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Net Income Attributable to SUI Common Shareholders $         74.0             $         110.8             $         74.7             $         135.6          
Adjustments              
Depreciation and amortization           149.5                       126.7                       297.8                       250.5          
Depreciation on nonconsolidated affiliates           0.1                       —                       0.1                       0.1          
(Gain) / loss on remeasurement of marketable securities           32.3                       (27.5 )             66.8                       (31.2 )
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates           (0.4 )             0.1                       (0.5         )             —          
Gain on remeasurement of notes receivable           —                       (0.1 )             (0.2         )             (0.5 )
Income attributable to noncontrolling interests           4.2                       5.0                       2.0                       4.9          
Returns on preferred OP units           3.4                       1.0                       6.7                       1.9          
(Gain) / loss on dispositions of properties           0.1                       —                       (13.3         )             —          
Gain on dispositions of assets, net           (17.2 )             (17.6 )             (32.3         )             (25.8 )
FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4) $         246.0             $         198.4             $         401.8             $         335.5          
               
Adjustments              
Business combination expense and other acquisition related costs(8)           17.8                       2.3                       20.9                       4.2          
Loss on extinguishment of debt           0.1                       8.1                       0.4                       8.1          
Catastrophic event-related charges, net           0.2                       0.4                       0.2                       2.8          
Loss of earnings – catastrophic event-related           —                       —                       —                       0.2          
(Gain) / loss on foreign currency exchanges           (9.0 )             0.1                       (6.8         )             0.1          
Other adjustments, net(9)           (0.5 )             0.3                       1.4                       0.2          
Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4) $         254.6             $         209.6             $         417.9             $         351.1          
Adjustment              
Foreign currency impact(a)           2.0                       —                       2.0                       —          
Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities $         256.6             $         209.6             $         419.9             $         351.1          
               
Weighted average common shares outstanding – basic           120.0                       112.1                       117.6                       110.0          
Add              
Common shares dilutive effect from forward equity sale           —                       —                       0.2                       —          
Restricted stock           0.3                       0.6                       0.4                       0.4          
Common OP units           2.6                       2.6                       2.6                       2.6          
Common stock issuable upon conversion of certain preferred OP units           3.1                       1.1                       3.1                       1.1          
Weighted Average Common Shares Outstanding – Fully Diluted           126.0                       116.4                       123.9                       114.1          
               
FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4) Per Share – Fully Diluted $         1.95             $         1.70             $         3.24             $         2.94          
               
Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities(1)(4) Per Share – Fully Diluted $         2.02             $         1.80             $         3.37             $         3.08          
               
Constant Currency Core FFO Attributable to SUI Common Shareholders and Dilutive Convertible Securities Per Share – Fully Diluted $         2.04             $         1.80             $         3.39             $         3.08          

(a) The Company calculated the foreign currency translation impact by comparing the actual weighted average foreign currency rates of $1.2598 U.S. dollars (“USD”) per GBP, $0.7828 USD per CAD and $0.7241 USD per AUD, with the weighted average foreign currency rates used for the guidance of $1.330 USD per GBP, $0.770 USD per CAD and $0.756 USD per AUD, respectively.

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

 

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Net Income Attributable to SUI Common Shareholders $         74.0             $         110.8             $         74.7             $         135.6          
Interest income           (7.3 )             (2.8 )             (14.1 )             (5.4 )
Brokerage commissions and other revenues, net           (8.6 )             (6.9 )             (16.6 )             (12.9 )
General and administrative           62.2                       45.3                       117.9                       83.5          
Catastrophic event-related charges, net           0.1                       0.4                       0.1                       2.8          
Business combination expense           15.0                       (0.2 )             15.5                       1.0          
Depreciation and amortization           150.2                       127.1                       298.7                       251.0          
Loss on extinguishment of debt           0.1                       8.1                       0.4                       8.1          
Interest expense           55.3                       37.7                       100.5                       77.2          
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.0                       2.1                       2.0          
(Gain) / loss on remeasurement of marketable securities           32.3                       (27.5 )             66.8                       (31.2 )
(Gain) / loss on foreign currency exchanges           (9.0 )             0.1                       (6.8 )             0.1          
(Gain) / loss on disposition of properties           0.1                       —                       (13.3 )             —          
Other (income) / expense, net(6)           (0.4 )             0.2                       0.2                       0.7          
Gain on remeasurement of notes receivable           —                       (0.1 )             (0.2 )             (0.5 )
Income from nonconsolidated affiliates           (0.9 )             (0.8 )             (1.8 )             (2.0 )
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates           (0.4 )             0.1                       (0.5 )             —          
Current tax expense           3.9                       1.2                       5.2                       1.0          
Deferred tax benefit           (0.3 )             —                       (0.3 )             (0.1 )
Preferred return to preferred OP units / equity interests           3.1                       3.0                       6.1                       5.9          
Less: Income attributable to noncontrolling interests           4.2                       7.0                       2.0                       7.3          
NOI(1) $         374.7             $         303.7             $         636.6             $         524.1          

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Real Property NOI(1) $         304.8           $         258.3           $         537.6           $         465.8        
Home Sales NOI(1)           49.8                     23.0                     68.6                     33.6        
Service, retail, dining and entertainment NOI(1)           20.1                     22.4                     30.4                     24.7        
NOI(1) $         374.7           $         303.7           $         636.6           $         524.1        

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

 

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Net Income Attributable to SUI Common Shareholders $         74.0             $         110.8             $         74.7             $         135.6          
Adjustments              
Depreciation and amortization           150.2                       127.1                       298.7                       251.0          
Loss on extinguishment of debt           0.1                       8.1                       0.4                       8.1          
Interest expense           55.3                       37.7                       100.5                       77.2          
Interest on mandatorily redeemable preferred OP units / equity           1.1                       1.0                       2.1                       2.0          
Current tax expense           3.9                       1.2                       5.2                       1.0          
Deferred tax benefit           (0.3 )             —                       (0.3 )             (0.1 )
Income from nonconsolidated affiliates           (0.9 )             (0.8 )             (1.8 )             (2.0 )
Less: (Gain) / loss on dispositions of properties           0.1                       —                       (13.3 )             —          
Less: Gain on dispositions of assets, net           (17.2 )             (17.6 )             (32.3 )             (25.8 )
EBITDAre(1) $         266.3             $         267.5             $         433.9             $         447.0          
Adjustments              
Catastrophic event-related charges, net           0.1                       0.4                       0.1                       2.8          
Business combination expense           15.0                       (0.2 )             15.5                       1.0          
(Gain) / loss on remeasurement of marketable securities           32.3                       (27.5 )             66.8                       (31.2 )
(Gain) / loss on foreign currency transactions           (9.0 )             0.1                       (6.8 )             0.1          
Other (income) / expense, net(6)           (0.4 )             0.2                       0.2                       0.7          
Gain on remeasurement of notes receivable           —                       (0.1 )             (0.2 )             (0.5 )
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates           (0.4 )             0.1                       (0.5 )             —          
Preferred return to preferred OP units / equity interests           3.1                       3.0                       6.1                       5.9          
Less: Income attributable to noncontrolling interests           4.2                       7.0                       2.0                       7.3          
Plus: Gain on dispositions of assets, net           17.2                       17.6                       32.3                       25.8          
Recurring EBITDA(1) $         328.4             $         268.1             $         549.4             $         458.9          

Non-GAAP and Other Financial Measures

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

 

                                               
  Three Months Ended
  Total Same Property – MH / RV   MH   RV
  June 30, 2022   June 30, 2021   Change   % Change(a)   June 30, 2022   June 30, 2021   Change   % Change(a)   June 30, 2022   June 30, 2021   Change   % Change(a)
Financial Information                                              
Revenue                                              
Real property (excluding transient) $         236.4           $         223.2           $         13.2                   5.9         %   $         184.0           $         176.5           $         7.5                     4.3         %   $         52.4           $         46.7           $         5.7                   12.1         %
Real property – transient           65.5                     65.2                     0.3                   0.6         %             0.2                     0.4                     (0.2 )           (42.8)        %             65.3                     64.8                     0.5                   0.8         %
Other           12.7                     11.9                     0.8                   6.5         %             5.6                     4.9                     0.7                     12.3         %             7.1                     7.0                     0.1                   2.4         %
Total Operating           314.6                     300.3                     14.3                   4.8         %             189.8                     181.8                     8.0                     4.4         %             124.8                     118.5                     6.3                   5.4         %
Expense                                              
Property Operating(10)(11)           103.6                     96.6                     7.0                   7.3         %             49.6                     45.9                     3.7                     8.3         %             54.0                     50.7                     3.3                   6.4         %
Real Property NOI(1) $         211.0           $         203.7           $         7.3                   3.6         %   $         140.2           $         135.9           $         4.3                     3.1         %   $         70.8           $         67.8           $         3.0                   4.6         %

(a) Percentages are calculated based on unrounded numbers.

                                               
  Six Months Ended
  Total Same Community   MH   RV
  June 30, 2022   June 30, 2021   Change   % Change(a)   June 30, 2022   June 30, 2021   Change   % Change(a)   June 30, 2022   June 30, 2021   Change   % Change(a)
Financial Information                                              
Revenue                                              
Real property (excluding Transient) $         469.5           $         441.8           $         27.7                   6.3         %   $         366.5           $         351.3           $         15.2                     4.3         %   $         103.0           $         90.5           $         12.5                   13.8         %
Real property – transient           104.7                     95.5                     9.2                   9.6         %             0.7                     1.0                     (0.3 )           (30.0)        %             104.0                     94.5                     9.5                   10.1         %
Other           20.2                     19.1                     1.1                   5.8         %             10.4                     9.3                     1.1                     12.3         %             9.8                     9.8                     —                   —         %
Total Operating           594.4                     556.4                     38.0                   6.8         %             377.6                     361.6                     16.0                     4.4         %             216.8                     194.8                     22.0                   11.3         %
Expense                                              
Property Operating(10)(11)           192.5                     175.4                     17.1                   9.7         %             97.4                     89.7                     7.7                     8.6         %             95.1                     85.7                     9.4                   11.0         %
Real Property NOI(1) $         401.9           $         381.0           $         20.9                   5.5         %   $         280.2           $         271.9           $         8.3                     3.1         %   $         121.7           $         109.1           $         12.6                   11.5         %

(a) Percentages are calculated based on unrounded numbers.

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

 

  As of        
  June 30, 2022   June 30, 2021   Change   % Change
Other Information              
Number of properties           425                       425                       —              
               
MH occupancy           97.3         %            
RV occupancy           100.0         %            
MH & RV blended occupancy(3)           98.0         %            
               
Adjusted MH occupancy(3)           98.0         %            
Adjusted RV occupancy(3)           100.0         %            
Adjusted MH & RV blended occupancy(3)           98.5         %             96.8         %             1.7         %    
               
Sites available for development           8,082                       8,135                       (53         )    
               
Monthly base rent per site – MH $         625             $         600             $         25             4.1%(13)
Monthly base rent per site – RV(12) $         558             $         523             $         35             6.8%(13)
Monthly base rent per site – Total(12) $         608             $         582             $         26             4.5%(13)
               
Monthly base rent per site – MH Rental Program $         1,168             $         1,070             $         98                     9.2         %

Same Property(2) Summary – Marina(amounts in millions)

 

  Three Months Ended
  June 30, 2022   June 30, 2021   Change   % Change(a)
Financial Information              
Revenue              
Real property (excluding transient) $         57.6           $         53.7           $         3.9                     7.4         %
Real property – transient           3.7                     4.1                     (0.4 )           (9.3)        %
Other           3.3                     3.2                     0.1                     3.8         %
Total Operating           64.6                     61.0                     3.6                     6.1         %
Expense              
Property Operating(10)           17.2                     16.7                     0.5                     3.4         %
Real Property NOI(1) $         47.4           $         44.3           $         3.1                     7.1         %

(a) Percentages are calculated based on unrounded numbers.

               
  Six Months Ended
  June 30, 2022   June 30, 2021   Change   % Change(a)
Financial Information              
Revenue              
Real property (excluding Transient) $         103.4           $         97.0           $         6.4                   6.6         %
Real property – transient           5.1                     5.0                     0.1                   2.5         %
Other           5.7                     4.9                     0.8                   14.3         %
Total Operating           114.2                     106.9                     7.3                   6.8         %
Expense              
Property Operating(10)           41.6                     37.8                     3.8                   10.0         %
Real Property NOI(1) $         72.6           $         69.1           $         3.5                   5.0         %

(a) Percentages are calculated based on unrounded numbers.

  As of        
  June 30, 2022   June 30, 2021   Change   % Change
Other Information              
Number of properties         101                   101                   —                     —         %
Wet slip and dry storage spaces         35,616                   35,744                   (128 )           (0.4)        %

Same Property results for the quarter and six months ended June 30, 2021, include reclassification of $8.3 million of expense, net from Real property operating expense to Service, retail, dining and entertainment expense to more precisely align certain revenues and expenses within Real property results and Service, retail, dining and entertainment results. The reclassifications had no impact on previously reported total portfolio Marina NOI.

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

 

     
    April 8, 2022toJune 30, 2022
   
Financial Information    
Revenues    
Real property (excluding transient)   $         16.9  
Real property – transient             12.9  
Other             0.6  
Total Operating             30.4  
Expenses    
Property Operating(10)             15.0  
Real Property NOI(1)             15.4  
     
Home sales    
Revenue             60.6  
Cost of home sales             32.1  
Home selling expenses             2.3  
NOI(1)             26.2  
     
Retail, dining and entertainment    
Revenue             11.5  
Expense             12.6  
Net Operating Loss             (1.1 )
     
UK Operations NOI(1)   $         40.5  
     
Statistical information    
Number of properties             53  
Developed sites             17,330  
Occupied sites             15,841  
Occupancy %             91.4         %
Sites available for development             1,987  
     
Home Sales    
New home sales volume             255  
Pre-owned home sales volume             480  
Total home sales volume             735  

Acquisitions and Other Summary – (excluding UK Operations)(14)(amounts in millions, except for statistical data)

 

       
  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2022
Financial Information      
Revenues      
Real property (excluding transient) $         30.7   $         58.5          
Real property – transient           15.9             20.4          
Other           4.2             6.2          
Total Operating           50.8             85.1          
Expenses      
Property Operating(10)           19.8             37.4          
Real Property NOI(1) $         31.0   $         47.7          
       
Other Information     June 30, 2022
Number of properties               106          
MH and RV Developed sites               23,583          
MH and RV Occupied sites               20,964          
MH and RV Occupancy %               88.9         %
Transient sites               10,850          
Wet slips and dry storage spaces               10,289          

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

 

                               
  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   Change   % Change   June 30, 2022   June 30, 2021   Change   % Change
Financial Information                              
New Homes                              
New home sales $         37.1             $         34.7             $         2.4                     6.9         %   $         63.7             $         57.7             $         6.0                     10.4         %
New home cost of sales           29.9                       28.2                       1.7                     6.0         %             51.5                       46.9                       4.6                     9.8         %
Gross profit – new homes           7.2                       6.5                       0.7                     10.8         %             12.2                       10.8                       1.4                     13.0         %
Gross margin % – new homes           19.4         %             18.7         %             0.7         %                 19.2         %             18.7         %             0.5         %    
Average selling price – new homes* $         164,159             $         153,132             $         11,027                     7.2         %   $         170,321             $         153,545             $         16,776                     10.9         %
                               
Pre-owned Homes                              
Pre-owned home sales $         45.0             $         47.1             $         (2.1         )           (4.5)        %   $         83.1             $         76.3             $         6.8                     8.9         %
Pre-owned home cost of sales           24.2                       26.0                       (1.8         )           (6.9)        %             44.0                       44.6                       (0.6         )           (1.3)        %
Gross profit – pre-owned homes           20.8                       21.1                       (0.3         )           (1.4)        %             39.1                       31.7                       7.4                     23.3         %
Gross margin % – pre-owned homes           46.2         %             44.9         %             1.3         %                 47.1         %             41.7         %             5.4         %    
Average selling price – pre-owned homes* $         59,920             $         50,577             $         9,343                     18.5         %   $         57,708             $         47,195             $         10,513                     22.3         %
                               
Total Home Sales                              
Revenue from home sales $         82.1             $         81.8             $         0.3                     0.4         %   $         146.8             $         134.0             $         12.8                     9.6         %
Cost of home sales           54.1                       54.2                       (0.1         )           (0.2)        %             95.5                       91.5                       4.0                     4.4         %
Home selling expenses           4.4                       4.6                       (0.2         )           (4.3)        %             8.9                       8.9                       —                     —         %
Home Sales NOI(1) $         23.6             $         23.0             $         0.6                     2.6         %   $         42.4             $         33.6             $         8.8                     26.2         %
                               
Other Information                              
New home sales volume*           226                       227                       (1         )           (0.4)        %             374                       376                       (2         )           (0.5)        %
Pre-owned home sales volume*           751                       931                       (180         )           (19.3)        %             1,440                       1,617                       (177         )           (10.9)        %
Total home sales volume*           977                       1,158                       (181         )           (15.6)        %             1,814                       1,993                       (179         )           (9.0)        %

Refer to the UK Operations Summary on page 16 for financial information related to our home sales in the UK.

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

 

                               
  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   Change   % Change   June 30, 2022   June 30, 2021   Change   % Change
Financial Information                              
Revenues $         32.1           $         35.8           $         (3.7 )           (10.3)        %   $         64.3           $         71.9           $         (7.6 )           (10.6)        %
Expenses           5.0                     4.6                     0.4                     8.7         %             9.9                     9.8                     0.1                     1.0         %
Rental Program NOI(1) $         27.1           $         31.2           $         (4.1 )           (13.1)        %   $         54.4           $         62.1           $         (7.7 )           (12.4)        %
                               
Other Information                              
Number of sold rental homes*           193                     281                     (88 )           (31.3)        %             370                     492                     (122 )           (24.8)        %
Number of occupied rentals, end of period*                           9,204                     10,951                     (1,747 )           (16.0)        %
Investment in occupied rental homes, end of period                 $         535.0           $         601.8           $         (66.8 )           (11.1)        %
Weighted average monthly rental rate, end of period*                 $         1,162           $         1,065           $         97                     9.1         %

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

 

                                 
    Three Months Ended   Six Months Ended
    June 30, 2022   June 30, 2021   Change   % Change   June 30, 2022   June 30, 2021   Change   % Change
Financial Information                                
Revenues                                
Real property (excluding transient)   $         82.0           $         61.9           $         20.1                   32.5         %   $         149.0           $         108.0           $         41.0                   38.0         %
Real property – transient             5.1                     4.2                     0.9                   21.4         %             7.6                     5.1                     2.5                   49.0         %
Other             4.5                     3.0                     1.5                   50.0         %             7.4                     4.6                     2.8                   60.9         %
Total Operating             91.6                     69.1                     22.5                   32.6         %             164.0                     117.7                     46.3                   39.3         %
Expenses                                
Property Operating(10)             23.8                     19.1                     4.7                   24.6         %             57.0                     42.7                     14.3                   33.5         %
Real Property NOI(1)             67.8                     50.0                     17.8                   35.6         %             107.0                     75.0                     32.0                   42.7         %
                                 
Service, retail, dining and entertainment                                
Revenue             127.3                     82.9                     44.4                   53.6         %             198.5                     127.3                     71.2                   55.9         %
Expense             113.5                     70.1                     43.4                   61.9         %             173.3                     108.1                     65.2                   60.3         %
NOI(1)             13.8                     12.8                     1.0                   7.8         %             25.2                     19.2                     6.0                   31.3         %
                                 
Marina NOI(1)   $         81.6           $         62.8           $         18.8                   29.9         %   $         132.2           $         94.2           $         38.0                   40.3         %
                                 
Statistical information                                
Number of properties                             130             114                     16                   14.0         %
Total wet slips and dry storage spaces                             45,905             40,179                     5,726                   14.3         %

Marina Property results for the quarter and six months ended June 30, 2021, include reclassification of $8.4 million of expense, net from Real property operating expense to Service, retail, dining and entertainment expense to more precisely align certain revenues and expenses within Real property results and Service, retail, dining and entertainment results. The reclassifications had no impact on previously reported total portfolio Marina NOI.

MH and RV Property Summary(15) – (excluding UK Operations)            
                     
                     
    6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
FLORIDA                    
Properties           129                     129                     132                     131                     129          
MH & Annual RV Developed sites           41,076                     40,774                     40,783                     40,500                     40,171          
Occupied MH & Annual RV           40,390                     40,046                     40,019                     39,747                     39,402          
MH & Annual RV Occupancy %           98.3         %           98.2         %           98.1         %           98.1         %           98.1         %
Transient RV sites           5,347                     5,648                     5,950                     6,163                     5,895          
Sites for development           1,380                     1,243                     1,268                     1,414                     1,414          
MICHIGAN                    
Properties           84                     84                     84                     83                     75          
MH & Annual RV Developed sites           32,348                     32,318                     32,257                     31,997                     29,600          
Occupied MH & Annual RV           31,165                     31,132                     31,061                     30,782                     28,671          
MH & Annual RV Occupancy %           96.3         %           96.3         %           96.3         %           96.2         %           96.9         %
Transient RV sites           776                     806                     869                     554                     509          
Sites for development           1,450                     1,422                     1,422                     1,481                     1,182          
CALIFORNIA                    
Properties           38                     36                     36                     37                     36          
MH & Annual RV Developed sites           7,159                     6,759                     6,787                     6,760                     6,736          
Occupied MH & Annual RV           7,053                     6,691                     6,672                     6,642                     6,613          
MH & Annual RV Occupancy %           98.5         %           99.0         %           98.3         %           98.3         %           98.2         %
Transient RV sites           2,154                     2,174                     2,147                     2,410                     2,416          
Sites for development           942                     694                     534                     534                     127          
TEXAS                    
Properties           31                     30                     30                     26                     25          
MH & Annual RV Developed sites           8,611                     8,257                     8,192                     8,004                     7,947          
Occupied MH & Annual RV           8,115                     8,071                     8,006                     7,805                     7,731          
MH & Annual RV Occupancy %           94.2         %           97.7         %           97.7         %           97.5         %           97.3         %
Transient RV sites           2,447                     2,475                     2,576                     2,131                     1,835          
Sites for development           2,266                     1,184                     1,184                     1,066                     1,194          
ONTARIO, CANADA                    
Properties           16                     16                     16                     16                     16          
MH & Annual RV Developed sites           4,543                     4,410                     4,363                     4,361                     4,302          
Occupied MH & Annual RV           4,543                     4,410                     4,363                     4,361                     4,302          
MH & Annual RV Occupancy %           100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Transient RV sites           696                     827                     874                     807                     870          
Sites for development           1,486                     1,429                     1,429                     1,525                     1,525          
CONNECTICUT                    
Properties           16                     16                     16                     16                     16          
MH & Annual RV Developed sites           1,901                     1,896                     1,902                     1,901                     1,901          
Occupied MH & Annual RV           1,769                     1,756                     1,765                     1,760                     1,757          
MH & Annual RV Occupancy %           93.1         %           92.6         %           92.8         %           92.6         %           92.4         %
Transient RV sites           104                     109                     103                     104                     104          
Sites for development           —                     —                     —                     —                     —          
MAINE                    
Properties           15                     15                     15                     13                     13          
MH & Annual RV Developed sites           2,287                     2,449                     2,424                     2,220                     2,204          
Occupied MH & Annual RV           2,203                     2,365                     2,339                     2,136                     2,127          
MH & Annual RV Occupancy %           96.3         %           96.6         %           96.5         %           96.2         %           96.5         %
Transient RV sites           1,143                     981                     1,007                     776                     792          
Sites for development           180                     180                     180                     30                     30          
ARIZONA                    
Properties           13                     12                     12                     12                     14          
MH & Annual RV Developed sites           4,416                     4,184                     4,123                     4,071                     4,401          
Occupied MH & Annual RV           4,040                     3,994                     3,917                     3,853                     4,116          
MH & Annual RV Occupancy %           91.5         %           95.5         %           95.0         %           94.6         %           93.5         %
Transient RV sites           1,087                     1,124                     1,185                     1,237                     1,260          
Sites for development           6                     —                     —                     —                     —          
INDIANA                    
Properties           12                     12                     12                     12                     12          
MH & Annual RV Developed sites           3,186                     3,184                     3,174                     3,057                     3,087          
Occupied MH & Annual RV           3,068                     3,049                     3,047                     2,963                     2,970          
MH & Annual RV Occupancy %           96.3         %           95.8         %           96.0         %           96.9         %           96.2         %
Transient RV sites           990                     992                     1,002                     1,089                     1,089          
Sites for development           177                     177                     177                     204                     277          
NEW JERSEY                    
Properties           11                     11                     11                     9                     8          
MH & Annual RV Developed sites           2,801                     2,599                     2,554                     2,551                     2,396          
Occupied MH & Annual RV           2,801                     2,599                     2,554                     2,551                     2,396          
MH & Annual RV Occupancy %           100.0         %           100.0         %           100.0         %           100.0         %           100.0         %
Transient RV sites           1,239                     1,395                     1,436                     899                     762          
Sites for development           262                     262                     262                     262                     262          
COLORADO                    
Properties           10                     10                     10                     10                     10          
MH & Annual RV Developed sites           2,552                     2,552                     2,552                     2,552                     2,453          
Occupied MH & Annual RV           2,445                     2,450                     2,442                     2,431                     2,420          
MH & Annual RV Occupancy %           95.8         %           96.0         %           95.7         %           95.3         %           98.7         %
Transient RV sites           987                     987                     987                     987                     987          
Sites for development           1,740                     1,744                     1,744                     1,629                     1,225          
NEW HAMPSHIRE                    
Properties           10                     10                     10                     10                     10          
MH & Annual RV Developed sites           1,741                     1,743                     1,748                     1,777                     1,777          
Occupied MH & Annual RV           1,737                     1,736                     1,740                     1,769                     1,769          
MH & Annual RV Occupancy %           99.8         %           99.6         %           99.5         %           99.5         %           99.5         %
Transient RV sites           658                     655                     650                     602                     602          
Sites for development           111                     111                     111                     111                     151          
NEW YORK                    
Properties           10                     10                     10                     10                     10          
MH & Annual RV Developed sites           1,498                     1,495                     1,482                     1,457                     1,457          
Occupied MH & Annual RV           1,472                     1,466                     1,455                     1,432                     1,428          
MH & Annual RV Occupancy %           98.3         %           98.1         %           98.2         %           98.3         %           98.0         %
Transient RV sites           1,643                     1,646                     1,659                     1,684                     1,684          
Sites for development           778                     371                     371                     371                     371          
VIRGINIA                    
Properties           10                     10                     10                     9                     9          
MH & Annual RV Developed sites           1,274                     1,259                     1,253                     1,238                     1,198          
Occupied MH & Annual RV           1,270                     1,255                     1,251                     1,237                     1,194          
MH & Annual RV Occupancy %           99.7         %           99.7         %           99.8         %           99.9         %           99.7         %
Transient RV sites           2,165                     2,181                     2,182                     1,956                     1,996          
Sites for development           752                     367                     367                     162                     162          
OHIO                    
Properties           9                     9                     9                     9                     9          
MH & Annual RV Developed sites           2,797                     2,796                     2,796                     2,796                     2,797          
Occupied MH & Annual RV           2,746                     2,755                     2,759                     2,753                     2,770          
MH & Annual RV Occupancy %           98.2         %           98.5         %           98.7         %           98.5         %           99.0         %
Transient RV sites           128                     129                     129                     129                     128          
Sites for development           53                     22                     22                     22                     22          
OTHER STATES                    
Properties           64                     64                     64                     61                     63          
MH & Annual RV Developed sites           12,763                     12,725                     12,771                     12,699                     13,828          
Occupied MH & Annual RV           12,483                     12,412                     12,443                     12,390                     13,344          
MH & Annual RV Occupancy %           97.8         %           97.5         %           97.4         %           97.6         %           96.5         %
Transient RV sites           7,118                     7,138                     7,091                     6,394                     6,103          
Sites for development           1,611                     1,601                     1,601                     1,501                     1,501          
TOTAL – MH AND RV PORTFOLIO                    
Properties           478                     474                     477                     464                     455          
MH & Annual RV Developed sites           130,953                     129,400                     129,161                     127,941                     126,255          
Occupied MH & Annual RV           127,300                     126,187                     125,833                     124,612                     123,010          
MH & Annual RV Occupancy %           97.2         % (16)         97.5         %           97.4         %           97.4         %           97.4         %
Transient RV sites           28,682                     29,267                     29,847                     27,922                     27,032          
Sites for development(17)           13,194                     10,807                     10,672                     10,312                     9,443          
MH Communities age restricted           123                     123                     121                     121                     120          

MH and RV Property Summary – UK Operations        
         
         
    6/30/2022   3/31/2022
UNITED KINGDOM        
Properties           53                     1          
MH & Annual RV Developed sites           17,330                     616          
Occupied MH & Annual RV           15,841                     584          
MH & Annual RV Occupancy %           91.4         %           94.8         %
Transient RV sites           3,349                     —          
Sites for development           1,987                     570          

Marina Property Summary(a)                    
                     
                     
    6/30/2022   3/31/2022   12/31/2021   9/30/2021   6/30/2021
FLORIDA                    
Properties           20                   20                   20                   19                   18        
Total wet slips and dry storage spaces           5,106                   5,235                   5,233                   4,825                   4,528        
RHODE ISLAND                    
Properties           12                   12                   12                   12                   11        
Total wet slips and dry storage spaces           3,421                   3,465                   3,485                   3,485                   3,302        
CONNECTICUT                    
Properties           11                   11                   11                   11                   11        
Total wet slips and dry storage spaces           3,325                   3,307                   3,299                   3,299                   3,299        
CALIFORNIA                    
Properties           9                   9                   9                   8                   7        
Total wet slips and dry storage spaces           4,133                   4,118                   3,940                   3,527                   2,884        
MARYLAND                    
Properties           9                   9                   9                   8                   8        
Total wet slips and dry storage spaces           2,608                   2,665                   2,645                   2,409                   2,409        
MASSACHUSETTS                    
Properties           9                   9                   9                   9                   9        
Total wet slips and dry storage spaces           2,517                   2,518                   2,546                   2,546                   2,546        
NEW YORK                    
Properties           8                   8                   8                   8                   8        
Total wet slips and dry storage spaces           2,786                   2,822                   2,783                   2,783                   2,783        
OTHER STATES                    
Properties           52                   50                   47                   45                   42        
Total wet slips and dry storage spaces           22,009                   21,595                   21,224                   20,741                   18,428        
TOTAL – MARINA PORTFOLIO                    
Properties           130                   128                   125                   120                   114        
Total wet slips and dry storage spaces           45,905                   45,725                   45,155                   43,615                   40,179        

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

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

 

    Six Months Ended   Year Ended
    June 30, 2022   December 31, 2021   December 31, 2020
    MH / RV   Marina   MH / RV   Marina   MH / RV   Marina
Financial information                        
Acquisitions(18)   $         2,482.6           $         220.7           $         944.3           $         852.9           $         571.9           $         2,533.7        
Expansion and Development(19)             119.4                     3.3                     191.8                     9.9                     248.2                     —        
Recurring Capital Expenditures(20)             22.9                     10.5                     45.3                     19.3                     31.4                     2.1        
Lot Modifications(21)             14.4           N/A             28.8           N/A             29.4           N/A
Growth Projects(22)             17.9                     31.6                     25.6                     51.4                     28.3                     —        
Rebranding(23)             10.7           N/A             6.1           N/A   N/A   N/A
Total   $         2,667.9           $         266.1           $         1,241.9           $         933.5           $         909.2           $         2,535.8        
                         
Other Information                        
Recurring Capital Expenditures Average / Site*   $         178           $         267           $         371           $         491           $         265           N/A

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

 

Locations   Resident Move-outs   Net Leased Sites(5)   New Home Sales   Pre-owned Home Sales   BrokeredRe-sales
Florida           1,067                   687                     98                   186                   902        
Michigan           284                   104                     35                   787                   130        
Ontario, Canada           425                   180                     43                   19                   169        
Texas           229                   109                     44                   132                   47        
Arizona           64                   123                     30                   12                   97        
Indiana           25                   21                     5                   109                   14        
Ohio           41                   (13 )           —                   58                   9        
California           81                   47                     14                   6                   73        
Colorado           2                   3                     14                   17                   28        
Connecticut           21                   4                     25                   2                   21        
New York           57                   17                     5                   4                   7        
New Hampshire           1                   (3 )           3                   1                   28        
Maine           84                   35                     10                   11                   6        
New Jersey           122                   247                     2                   1                   7        
Virginia           134                   19                     —                   5                   5        
Other states           446                   40                     46                   90                   78        
Six Months Ended June 30, 2022           3,083                   1,620                     374                   1,440                   1,621        

Total For Year Ended   Resident Move-outs   Net Leased Sites(5)   New Home Sales   Pre-owned Home Sales   BrokeredRe-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   ResidentRe-sales
2022 TTM           2.7         %           6.7         %
2021           2.7         %           8.4         %
2020           3.3         %           6.9         %

Footnotes 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 weighted average foreign currency rates used for the 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.

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 0.7835 USD per Canadian dollar.

(3)   The Same Property MH and RV blended occupancy for 2022 is derived from 124,700 developed sites, of which 122,177 were occupied. The Same Property adjusted MH and RV blended occupancy percentage is derived from 124,021 developed sites, of which 122,177 were occupied. The number of developed sites excludes RV transient sites and nearly 1,500 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 that year.

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

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Contingent consideration expense $         —           $         —             $         —             $         (0.1 )
Long term lease termination benefit           0.3                     —                       0.3                       —          
Repair reserve on repossessed homes           0.1                     (0.2 )             (0.5 )             (0.6 )
Other income / (expense), net $         0.4           $         (0.2 )   $         (0.2 )   $         (0.7 )

(7)   Line of credit and other debt includes borrowings under the Company’s $4.2 billion senior credit facility and a $24.6 million unsecured term loan which had been secured prior to July 1, 2021.

Line of credit and other debt previously included borrowings under the Company’s $2.0 billion credit facility, the debt under the Company’s $12.0 million MH floor plan facility, which was terminated in October 2021, and the unsecured term loan which had been secured prior to July 1, 2021.

(8)   Business combination expense and other acquisition related costs represent (a) nonrecurring integration expenses associated with new acquisitions deemed to be business combinations during the three and six months ended June 30, 2022 and 2021, (b) Costs associated with potential acquisitions that will not close, (c) costs associated with the termination of the bridge loan commitment during the three months ended March 31, 2022 related to the acquisition of Park Holidays and (d) expenses incurred to bring recently acquired properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy.

(9)   Other adjustments, net was as follows (in millions):

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Contingent consideration expense $         —             $         0.2           $         —             $         0.3          
Long term lease termination benefit           (0.3 )             —                     (0.3 )             —          
Deferred tax (benefit) / expense           (0.3 )             0.1                     (0.3 )             (0.1 )
RV rebranding non-recurring cost           0.3                       —                     2.2                       —          
Accelerated deferred compensation amortization           0.1                       —                     0.1                       —          
Gain on sale of investment in a non-consolidated affiliate           (0.3 )             —                     (0.3 )             —          
Other adjustments, net $         (0.5 )   $         0.3           $         1.4             $         0.2          

(10)   Same Property results for our MH, RV and Marina properties, UK Operations results, and Acquisitions and Other results, net certain utility revenue against the related utility expense in Property Operating expense as follows (in millions):

  Three Months Ended   Six Months Ended
  June 30, 2022   June 30, 2021   June 30, 2022   June 30, 2021
Same Property MH / RV $         19.0           $         17.4           $         38.6           $         34.7        
Same Property Marina           2.9                     2.9                     5.4                     5.5        
UK Operations           2.5           N/A             2.5           N/A
Acquisition and Other           2.9             1.1             5.4             2.3
Total $         27.3           $         21.4           $         51.9           $         42.5        

Marina portfolio results (page 20) nets $4.9 million and $3.7 million of utility revenue against the related utility expense in property operating and maintenance expense for the three months ended June 30, 2022 and 2021, respectively. Marina portfolio results net $9.2 million and $6.3 million of utility revenue against the related utility expense in property operating and maintenance expense for the six months ended June 30, 2022 and 2021, respectively. These amounts are included within Same Property Marina and Acquisition and Other in the table above.

(11)   Same Property supplies and repair expense for our MH and RV properties excludes $0.4 million and $0.8 million for the three and six months ended June 30, 2021, respectively, of expenses incurred for recently acquired properties to bring the properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy.

(12)   Monthly base rent per site pertains to annual RV sites and excludes transient RV sites.

(13)   Calculated using actual results without rounding.

(14)   Acquisitions and Other is comprised of recent acquisitions, recently opened ground-up development projects in stabilization and properties undergoing redevelopment.

(15)   MH and annual RV developed sites, Occupied MH and annual RV, and MH and annual RV occupancy percentage includes MH and annual RV sites, and excludes transient RV sites, as applicable.

(16)   As of June 30, 2022, total portfolio MH occupancy was 96.3 percent inclusive of the impact of nearly 1,500 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(17)   Total sites for development were comprised of 71.1 percent for expansion, 25.2 percent for greenfield development and 3.7 percent for redevelopment.

(18)   Capital expenditures related to acquisitions represent the purchase price of existing operating properties (including marinas) and land parcels to develop expansions or new properties. Expenditures consist of capital improvements identified during due diligence that are necessary to bring the communities, resorts and marinas to the Company’s operating standards. These costs for the six months ended June 30, 2022, include $40.1 million at our MH and RV properties and $83.0 million at our Marina properties. For the years ended December 31, 2021 and 2020, these costs were $75.8 million at our MH and RV properties and $100.7 million at our Marina properties, and $40.6 million at our MH and RV properties, respectively. These include items such as: upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovation including larger decks, heaters and furniture; new maintenance facilities; lot modifications; and new signage including main signs and internal road signs. These are considered acquisition costs and although identified during due diligence, often require 24 to 36 months after closing to complete.

(19)   Expansion and development expenditures consist primarily of construction costs such as roads, activities, and amenities, and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at our MH communities and RV resorts. Expenditures also include costs to rebuild after damage has been incurred at MH, RV or Marina properties, and research and development.

(20)   Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities, resorts and marinas. Recurring capital expenditures at our MH and RV properties include items such as: major road, driveway, pool improvements; clubhouse renovations; adding or replacing street lights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at our Marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.

(21)   Lot modification capital expenditures are incurred to modify the foundational structures required to set a new home after a previous home has been removed. These expenditures are necessary to create a revenue stream from a new site renter and often improve the quality of the community. Other lot modification expenditures include land improvements added to annual RV sites to aid in the conversion of transient RV guests to annual contracts.

(22)   Growth projects consist of revenue generating or expense reducing activities at MH communities, RV resorts and Marinas. This includes, but is not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.

(23)   Rebranding includes new signage at our RV resorts and costs of building an RV mobile application and updated website.

Certain financial information has been revised to reflect reclassifications in prior periods to conform to current period presentation.

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