Sun Communities, Inc. (NYSE: SUI) (the “Company”), 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 third-quarter results for 2021.
Financial Results for the Quarter and Nine Months Ended September 30, 2021
For the quarter ended September 30, 2021, total revenues increased $283.8 million, or 70.9 percent, to approximately $684.3 million compared to $400.5 million for the same period in 2020. Net income attributable to common stockholders increased $150.6 million, or 185.4 percent, to approximately $231.8 million, or $2.00 per diluted common share, compared to net income attributable to common stockholders of $81.2 million, or $0.83 per diluted common share, for the same period in 2020.
For the nine months ended September 30, 2021, total revenues increased $716.1 million, or 70.6 percent, to $1.7 billion compared to approximately $1.0 billion for the same period in 2020. Net income attributable to common stockholders increased $243.3 million, or 196.2 percent, to approximately $367.3 million, or $3.27 per diluted common share, compared to net income attributable to common stockholders of $124.0 million, or $1.29 per diluted common share, for the same period in 2020.
Non-GAAP Financial Measures and Portfolio Performance
Core Funds from Operations (“Core FFO”)(1) for the quarter ended September 30, 2021, was $2.11 per diluted share and OP unit (“Share”) as compared to $1.60 in the corresponding period in 2020, a 31.9 percent increase.
Same Community(2) Net Operating Income (“NOI”)(1) increased by 12.4 percent for the quarter ended September 30, 2021, as compared to the corresponding period in 2020.
Home Sales Volume increased 63.7 percent to 1,162 homes for the quarter ended September 30, 2021, as compared to 710 homes in the same period in 2020.
Acquisitions totaled $500.8 million during and subsequent to the quarter ended September 30, 2021, including 9 MH communities, 7 RV resorts and 6 marinas.
Gary Shiffman, Chief Executive Officer stated, “We are pleased with our third-quarter results which highlight successful execution across all of our growth strategies. The RV segment continues to deliver strong results producing the same community NOI growth of nearly 31 percent in the quarter, as we benefit from the demand for outdoor experiences coming from existing and new Sun customers. As the leading industry consolidator, we have completed $1.1 billion of acquisitions year-to-date, and believe our cycle-tested ability to create value through acquisitions will continue to result in accretive growth. We have remained active in the capital markets to support this growth including completing our second bond offering of the year. Our talented team will continue to execute on opportunities across operations, acquisitions, expansions, and ground-up developments, providing us with a confident outlook.”
OPERATING HIGHLIGHTS
Portfolio Occupancy
Total MH and annual RV occupancy was 97.4 percent on September 30, 2021, as compared to 97.2 percent on September 30, 2020, an increase of 20 basis points.
During the quarter ended September 30, 2021, MH and annual RV revenue producing sites increased by 576 sites as compared to an increase of 776 sites during the quarter ended September 30, 2020.
During the nine months ended September 30, 2021, MH and annual RV revenue producing sites increased by 1,673 sites as compared to an increase of 1,927 sites during the nine months ended September 30, 2020.