Sun Communities, Inc. Reports 2022 Second Quarter Results

Southfield, Michigan, UNITED STATES


This press release has been revised to update the information set forth under the heading "Guidance – UK Operations Guidance" on page viii to include certain recently-acquired UK properties which were omitted from the original release.

The revised release reads as follows:

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
 MH
Same Property
 RV
Same 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 MH
Same Property
 RV
Same 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 Range
FY 2022E
 Revised Range
FY 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 millions): 2021 Marina Same Property NOI(1) Originally Reported
in 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, including Park Holidays and other UK acquisitions, 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 $66.8 - $70.3 $91.8 - $96.6
UK Operations NOI - constant currency $73.2 - $77.0 $100.5 - $105.8

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 July 25, 2022. 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 investorrelations@suncommunities.com  
       
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 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)$        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, 2022
to
June 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 Brokered
Re-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 Brokered
Re-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  Resident
Re-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