Michigan-based Sun Communities Inc., a real estate company that owns manufactured housing and RV communities, released its third quarter results on Monday (Oct. 23).
According to a press release, for the quarter ending Sept. 30, total revenues increased $18.5 million, or 7.4%, to $268.2 million, compared to $249.7 million for the same period in 2016. Net income attributable to common stockholders was $24.1 million, or $0.31 per diluted common share, as compared to net income attributable to common stockholders of $18.9 million, or $0.27 net income per diluted common share, for the same period in 2016.
For the nine months ending Sept. 30, total revenues increased $125.4 million, or 20.4%, to $740.5 million, compared to $615.1 million for the same period in 2016. Net income attributable to common stockholders was $57.6 million, or $0.76 per diluted common share, as compared to net income attributable to common stockholders of $19.0 million, or $0.30 per diluted common share, for the same period in 2016.
Other key numbers:
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Funds from Operations, excluding certain items, was $1.13 per diluted share for both the quarter ending Sept. 30, 2017 and 2016.
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Same Community Net Operating Income (NOI) increased by 7.7% and 6.8% for the quarter and nine months ending Sept. 30, respectively, as compared to the same periods in 2016.
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Revenue producing sites increased by 394 sites for the quarter ending Sept. 30, as compared to an increase of 292 sites in the same period in 2016.
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Home sales volumes of 2,432 for the nine months ending Sept. 30Â increased from 2,410 for the same period in 2016.
“Our strength in the third quarter was driven by our continued ability to generate internal growth,” said Gary A. Shiffman, chairman and CEO. “Our same community NOI increased by 7.7% in the quarter boosted by a 160-basis point occupancy gain. We have laid the foundation for ongoing internal growth through our active expansion site development program, and we are confident in the consistent value-generation embedded in our platform.”
OPERATING HIGHLIGHTS
Community Occupancy
Total portfolio occupancy was 96.2% at both Sept. 30, 2017 and Sept. 30, 2016, including the impact of recently completed but vacant expansion sites. During the quarter ending Sep. 30, revenue producing sites increased by 394 sites, as compared to 292 revenue producing sites gained during the third quarter of 2016.
Revenue producing sites increased by 1,833 for the nine months ended Sept. 30, as compared to 1,385 revenue producing sites gained during the nine months ended Sept. 30, 2016.
Same Community Results
For the 231 communities owned since January 1, 2016, NOI for the quarter ening September 30, 2017 increased 7.7% over the same period in 2016, driven by a 6.2% increase in revenues and a 2.9% increase in operating expenses. Same Community occupancy increased to 97.2% at Sept. 30 from 95.6% at Sept. 30, 2016.
For the nine months ending September 30, 2017, total revenues increased by 5.9%, while total expenses increased by 3.5%, resulting in an increase to NOI of 6.8% over the nine months ending Sept. 30, 2016.
Home Sales
Total home sales were 805 for the quarter ending Sept. 30, as compared to 895 homes sold during the same period in 2016, a 10.1% decrease. During the nine months ending Sept. 30, the company sold 2,432 homes, compared to 2,410 homes sold for the same period ending 2016.
Rental homes sales, which are included in total home sales, were 286 for both quarters ending Sept. 30, 2017 and 2016. Rental home sales were 828 and 858 for the nine months ending Sept. 30, 2017 and 2016, respectively.
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