Sun Communities Inc., a real estate investment trust (REIT) that owns and operates, or has an interest in, manufactured housing (MH) communities, RV resorts and marinas, reported that total revenues during its second quarter increased by $210.4 million, or 34.8%, while YTD the company has seen total revenues increase by $316.9 million, or 30.3%, to approximately $1.4 billion.
Financial Results for the Quarter and Six Months Ended June 30
For the quarter ended June 30, total revenues increased by $210.4 million, or 34.8%, to $814.3 million compared to $603.9 million for the same period in 2021. Net income attributable to common shareholders was $74 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, total revenues increased by $316.9 million, or 30.3%, to approximately $1.4 billion compared to approximately $1 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) for the quarter ended June 30, was $2.02 per diluted share and OP unit as compared to $1.80 in the corresponding period in 2021, a 12.2% increase. Core FFO for the six months ended June 30, was $3.37 per share as compared to $3.08 in the corresponding period, an increase of 9.4%.
Constant Currency Core FFO for the quarter and six months ended June 30, was $2.04 per share and $3.39 per share, respectively, when translating the company’s results from the United Kingdom, Canada and Australia at the foreign currency translation rates used in first quarter 2022 guidance.
Same Property Net Operating Income for the company’s MH and RV properties increased by 3.6% for the quarter ended June 30, and 5.5% for the six months ended June 30, as compared to the corresponding periods in 2021.
Same Property NOI for the Company’s Marina properties increased by 7.1% for the quarter ended June 30, and 5% for the six months ended June 30, as compared to the corresponding periods in 2021.
Acquisitions totaled $1.8 billion during and subsequent to the quarter ended June 30, 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.”