0000912593 sui:JellystoneParkAtGardinerMember 2019-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 20182019
Commission file number 1-12616
SUN COMMUNITIES INC.
(Exact Name of Registrant as Specified in its Charter)
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| Maryland | 1-12616 | 38-2730780 |
| (State of Incorporation) | Commission file number | (I.R.S. Employer Identification No.) |
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27777 Franklin Rd.Rd, | | |
| Suite 200, | Southfield, | |
Southfield, Michigan | | 48034 |
| (Address of Principal Executive Offices) | | (Zip Code) |
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Common Stock, Par Value $0.01 per ShareTitle of each class | | New York Stock Exchange |
Securities Registered Pursuant to Section 12(b) of the ActTrading Symbol(s) | | Name of each exchange on which registered |
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Securities Registered Pursuant to Section 12(g) of the Act: 6.50% Series A-4 Cumulative Convertible PreferredCommon Stock, $0.01 par value $0.01 per Share | | SUI | | New York Stock Exchange |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X]☒ No [ ]☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes [ ] ☐ No [X]☒
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ]☒ No [ ]☐
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ X ]☒ No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ X ]☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. (Check one):
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Large accelerated filer [ X ] | Accelerated filer [ ] | Non-accelerated filer [ ] |
Smaller reporting company [ ] | Emerging growth company [ ] |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ]☐ No [X]
As of June 30, 2018,2019, the aggregate market value of the Registrant’s stock held by non-affiliates was $7,693,151,783$11,363,494,077 (computed by reference to the closing sales price of the Registrant’s common stock as of June 30, 2018)2019). For this computation, the Registrant has excluded the market value of all shares of common stock reported as beneficially owned by executive officers and directors of the Registrant; such exclusion shall not be deemed to constitute an admission that any such person is an affiliate of the Registrant.
Number of shares of common stock, $0.01 par value per share, outstanding as of February 14, 2019: 86,380,50213, 2020: 93,319,200
Documents Incorporated By Reference
Unless provided in an amendment to this Annual Report on Form 10-K, the information required by Part III is incorporated by reference to the registrant’s proxy statement to be filed pursuant to Regulation 14A, with respect to the registrant’s 20192020 annual meeting of stockholders.
Table of Contents
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| Item | Description | Page |
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| Part I. | | |
| Item 1. | Business | |
| Item 1A. | Risk Factors | |
| Item 1B. | Unresolved Staff Comments | |
| Item 2. | Properties | |
| Item 3. | Legal Proceedings | |
| Item 4. | Mine Safety Disclosures | |
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| Part II. | | |
| Item 5. | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
| Item 6. | Selected Financial Data | |
| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | |
| Item 8. | Financial Statements and Supplementary Data | |
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
| Item 9A. | Controls and Procedures | |
| Item 9B. | Other Information | |
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| Part III. | | |
| Item 10. | Directors, Executive Officers and Corporate Governance | |
| Item 11. | Executive Compensation | |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
| Item 14. | Principal Accountant Fees and Services | |
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| Part IV. | | |
| Item 15. | Exhibits and Financial Statement Schedules | |
| Item 16. | Form 10-K Summary | |
PART I
ITEM 1. BUSINESS
GENERAL
Sun Communities, Inc., a Maryland corporation, and all wholly-owned or majority-owned and controlled subsidiaries, including Sun Communities Operating Limited Partnership, a Michigan limited partnership (the “Operating Partnership”) and Sun Home Services, Inc., a Michigan corporation (“SHS”) are referred to herein as the “Company,” “us,” “we,” and “our”. We are a self-administered and self-managed real estate investment trust (“REIT”).
We are a fully integrated real estate company which, together with our affiliates and predecessors, have been in the business of acquiring, operating, developing, and expanding manufactured housing (“MH”) and recreational vehicle (“RV”) communities since 1975. We lease individual parcels of land (“sites”) with utility access for placement of manufactured homes and RVs to our customers. We are also engaged through a taxable subsidiary, SHS, in the marketing, selling, and leasing of new and pre-owned homes to current and future residents in our communities. The operations of SHS support and enhance our occupancy levels, property performance and cash flows.
We own, operate, or have an interest in a portfolio of MH and RV communities. As of December 31, 2018,2019, we owned, operated or had an interest in a portfolio of 371422 properties in 3133 states and Ontario, Canada (collectively, the “Properties” or “Communities”), including 230266 MH communities, 110122 RV communities, and 3134 Properties containing both MH and RV sites. As of December 31, 2018,2019, the Properties contained an aggregate of 128,454141,293 developed sites comprised of 84,42893,821 developed MH sites, 24,53526,056 annual RV sites (inclusive of both annual and seasonal usage rights), and 19,49121,416 transient RV sites. There are approximately 11,00010,300 additional MH and RV sites suitable for development. We also own a 50 percent interest in a joint venture formed to establish and grow a manufactured housing community development program in Australia.
Our executive and principal property management office is located at 27777 Franklin Road, Suite 200, Southfield, Michigan 48034 and our telephone number is (248) 208-2500. We have regional property management offices located in Austin, Texas; Grand Rapids, Michigan; Denver, Colorado; Ft. Myers, Florida; and Orlando, Florida; and we employed an aggregate of 2,7843,146 full and part time employees as of December 31, 2018.2019.
Our website address is www.suncommunities.com and we make available, free of charge, on or through our website all of our periodic reports, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as soon as reasonably practicable after we file such reports with the Securities and Exchange Commission (the “SEC”).
STRUCTURE OF THE COMPANY
The Operating Partnership is structured as an umbrella partnership REIT, or UPREIT. In 1993, we contributed our net assets to the Operating Partnership in exchange for the sole general partner interest in the Operating Partnership and the majority of all the Operating Partnership’s initial capital. We conduct substantially all of our operations through the Operating Partnership. The Operating Partnership owns, either directly or indirectly through other subsidiaries, all of our assets. This UPREIT structure enables us to comply with certain complex requirements under the federal tax rules and regulations applicable to REITs, and to acquire MH and RV communities in transactions that defer some or all of the sellers’ tax consequences. The financial results of the Operating Partnership and our other subsidiaries are consolidated in our Consolidated Financial Statements. The financial results include certain activities that do not necessarily qualify as REIT activities under the Internal Revenue Code of 1986, as amended (the “Code”). We have formed taxable REIT subsidiaries, as defined in the Code, to engage in such activities. We use taxable REIT subsidiaries to offer certain services to our residents and engage in activities that would not otherwise be permitted under the REIT rules if provided directly by us or by the Operating Partnership. The taxable REIT subsidiaries include our home sales business, SHS, which provides manufactured home sales, leasing, and other services to current and prospective tenants of the Properties.
Under the partnership agreement, the Operating Partnership is structured to make distributions with respect to certain of the Operating Partnership units (“OP units”) at the same time that distributions are made to our common stockholders. The Operating Partnership is structured to permit limited partners holding certain classes or series of OP units to exchange those OP units for shares of our common stock (in a taxable transaction) and achieve liquidity for their investment.
As the sole general partner of the Operating Partnership, we generally have the power to manage and have complete control over the conduct of the Operating Partnership’s affairs and all decisions or actions made or taken by us as the general partner pursuant to the partnership agreement are generally binding upon all of the partners and the Operating Partnership.
We do not own all of the OP units. As of December 31, 2018,2019, the Operating Partnership had issued and outstanding:
89,082,937 common OP units;
1,283,819 preferred OP units (“Aspen preferred OP units”);
331,941309,234 Series A-1 preferred OP units;
310,424 Series C preferred OP units;
488,958 Series D preferred OP units;
40,268 Series A-3 preferred OP units;
1,473,153 Series A-4 preferred OP units;
26,750 Series B-3 preferred OP units; and
314,438 Series C preferred95,600,640 common OP units.
As of December 31, 2018,2019, we held:
86,357,426 common OP units, or approximately 96.9 percent of the issued and outstanding common OP units;
1,062,789 Series A-4 preferred OP units, or approximately 72.1 percent of the issued and outstanding Series A-4 preferred OP units; and
no Aspen preferred OP units, Series A-1 preferred OP units, Series A-3C preferred OP units, Series B-3D preferred OP units, or Series CA-3 preferred OP units;
93,180,481 common OP units, or approximately 97.5 percent of the issued and outstanding common OP units;
In January 2019, we redeemed all 26,750 outstanding Series B-3 preferred OP units. The weighted average redemption price per unit, which included accrued and unpaid distributions, was $100.153424. In the aggregate, we paid $2.7 million to redeem all of the Series B-3 OP units.
In December 2019, we converted all outstanding shares of our 6.50 percent Series A-4 Cumulative Convertible Preferred Stock and Series A-4 preferred OP units into common stock and common OP units, respectively. All 1,031,747 shares of Series A-4 preferred stock were converted into 458,541 shares of common stock (net of fractional shares paid in cash) and all 405,656 Series A-4 preferred OP units were converted into 180,277 common OP units (net of fractional shares paid in cash).
On January 9, 2020, the Operating Partnership created a new class of OP units named Series E Preferred OP Units in conjunction with the acquisition of a MH community in East Falmouth, Massachusetts. As of February 13, 2020, 90,000 Series E Preferred OP Units were outstanding.
Ranking and Priority
The various classes and series of OP units issued by the Operating Partnership rank as follows with respect to rights to the payment of distributions and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Operating Partnership:
first, the Series A-4 preferred OP units, Aspen preferred OP units and Series A-1 preferred OP units, on parity with each other;
next, the Series C preferred OP units;
next, the Series B-3D preferred OP units;
next, the Series DE preferred OP units;
next, the Series A-3 preferred OP units; and
finally, the common OP units.
Common OP Units
Subject to certain limitations, the holder of each common OP unit at its option may convert such common OP unit at any time into one share of our common stock. Holders of common OP units are entitled to receive distributions from the Operating Partnership as and when declared by the general partner, provided that all accrued distributions payable on OP units ranking senior to the common OP units have been paid. The holders of common OP units generally receive distributions on the same dates and in amounts equal to the distributions paid to holders of our common stock.
Aspen Preferred OP Units
Subject to certain limitations, at any time prior to January 1, 2024 (or prior to January 1, 2034 with respect to the extended units discussed below), the holder of each Aspen preferred OP unit at its option may convert such Aspen preferred OP unit into: (a) if the average closing price of our common stock for the preceding ten trading days is $68.00 per share or less, 0.397 common OP units, or (b) if the average closing price of our common stock for the preceding ten trading days is greater than $68.00 per share, the number of common OP units determined by dividing (i) the sum of (A) $27.00 plus (B) 25 percent of the amount by which the average closing price of our common stock for the preceding ten trading days exceeds $68.00 per share, by (ii) the average closing price of our common stock for the preceding
ten trading days. The holders of Aspen preferred OP units are entitled to receive distributions not less than quarterly. Distributions on Aspen preferred OP units are generally paid on the same dates as distributions are paid to holders of common OP units. EachExcept for Extended Units as discussed below, each Aspen preferred OP unit is entitled to receive distributions in an amount equal to the product of (x) its original per unit issuance price of $27.00, multiplied by (y) an annual rate equal to the 10-year U.S. Treasury bond yield plus 239 basis points; provided, however, that the aggregate distribution rate shall not be less than 6.5 percent nor more than 9 percent. On January 2, 2024, (or on January 2, 2034, with respect to the Extended Units described below), we are required to redeem all Aspen preferred OP units that have not been converted to common OP units. In addition, we are required to redeem the Aspen preferred OP units of any holder thereof within five days after receipt of a written demand during the existence of certain uncured Aspen preferred OP unit defaults, including our failure to pay distributions on the Aspen preferred OP units when due and our failure to provide certain security for the payment of distributions on the Aspen preferred OP units. We may also redeem Aspen preferred OP units from time to time if we and the holder thereof agree to do so.
SUN COMMUNITIES, INC.
On January 13, 2020, at the election of certain Aspen preferred OP unit holders, the Operating Partnership extended the automatic redemption date and reduced the annual distribution rate for 270,000 of the Aspen preferred OP units (the “Extended Units”). The Extended Units may be converted at the holder’s election into common OP units at any time before January 1, 2034 using the same formula as for the other Aspen Units. All Extended Units then outstanding must be redeemed by the Operating Partnership on January 2, 2034 at the same redemption price as for the other Aspen preferred OP units. The Extended Units receive annual distributions at a rate of 3.8 percent on their original $27.00 per unit issuance price. As of February 13, 2020, 270,000 of the Extended Units and 1,013,813 other Aspen preferred OP units were outstanding.
Series A-1 Preferred OP Units
Subject to certain limitations, the holder of each Series A-1 preferred OP unit at its option may exchange such Series A-1 preferred OP unit at any time into approximately 2.4390 shares of our common stock (which exchange rate is subject to adjustment upon stock splits, recapitalizations, and similar events). The holders of Series A-1 preferred OP units are entitled to receive distributions not less than quarterly. Distributions on Series A-1 preferred OP units are generally paid on the last day of each quarter. Each Series A-1 preferred OP unit is entitled to receive distributions in an amount equal to the product of $100.00 multiplied by an annual rate equal to 6.0 percent. Series A-1 preferred OP units do not have any voting or consent rights on any matter requiring the consent or approval of the Operating Partnership’s limited partners.
Series A-3 Preferred OP Units
Subject to certain limitations, the holder of each Series A-3 preferred OP unit at its option may exchange such Series A-3 preferred OP unit at any time into approximately 1.8605 shares of our common stock (which exchange rate is subject to adjustment upon stock splits, recapitalizations, and similar events). The holders of Series A-3 preferred OP units are entitled to receive distributions not less than quarterly. Each Series A-3 preferred OP unit is entitled to receive distributions in an amount equal to the product of $100.00 multiplied by an annual rate equal to 4.5 percent. Series A-3 preferred OP units do not have any voting or consent rights on any matter requiring the consent or approval of the Operating Partnership’s limited partners.
Series A-4 Preferred OP Units
In connection with the issuance of our 6.5% Series A-4 Cumulative Convertible Preferred Stock (the “Series A-4 preferred stock”) in November 2014, the Operating Partnership created the Series A-4 preferred OP units as a new class of OP units. Series A-4 preferred OP units have economic and other rights and preferences substantially similar to those of the Series A-4 preferred stock, including rights to receive distributions at the same time and in the same amounts as distributions paid on Series A-4 preferred stock. Each Series A-4 preferred OP unit is exchangeable into approximately 0.4444 shares of common stock or common OP units (which exchange rate is subject to adjustment upon stock splits, recapitalizations, and similar events). The Operating Partnership issued Series A-4 preferred OP units to us in connection with our acquisition of a portfolio of MH communities from Green Courte Real Estate Partners, LLC and certain of their affiliated entities (collectively, the “Green Courte parties” or the “Green Courte entities”).
During the year ended December 31, 2018 and 2017, we repurchased zero and 438,448 Series A-4 preferred OP units, respectively. At December 31, 2018, we held 1,062,789 Series A-4 preferred OP units. The rights of the Series A-4 preferred OP units held by us mirror the economic rights of the Series A-4 preferred OP units issued to the Green Courte entities, but certain voting, consent, and other rights do not apply to the Series A-4 preferred OP units held by us.
If certain change of control transactions occur or if our common stock ceases to be listed or quoted on an exchange or quotation system, then at any time after November 26, 2019, we or the holders of shares of Series A-4 preferred stock and Series A-4 preferred OP units may cause all or any of those shares or units to be redeemed for cash at a redemption price equal to the sum of (i) the greater of (x) the amount that the redeemed shares of Series A-4 preferred stock and Series A-4 preferred OP units would have received in such transaction if they had been converted into shares of our common stock immediately prior to such transaction, or (y) $25.00 per share, plus (ii) any accrued and unpaid distributions thereon to, but not including, the redemption date.
Series B-3 Preferred OP Units
Series B-3 preferred OP units are not convertible. The holders of Series B-3 preferred OP units generally receive distributions on the last day of each quarter. Each Series B-3 preferred OP unit is entitled to receive distributions in an amount equal to the product of $100.00 multiplied by an annual rate equal to 8.0 percent.
Subject to certain limitations, (x) during the 90-day period beginning on each of the tenth through fifteenth anniversaries of the issue date of the applicable Series B-3 preferred OP units, (y) at any time after the fifteenth anniversary of the issue date of the applicable Series B-3 preferred OP units, or (z) after our receipt of notice of the death of the electing holder of a Series B-3 preferred OP unit, each holder of Series B-3 preferred OP units may require us to redeem such holder’s Series B-3 preferred OP units at the redemption price of $100.00 per unit. In addition, at any time after the fifteenth anniversary of the issue date of the applicable Series B-3 preferred OP units we may redeem, at our option, all of the Series B-3 preferred OP units of any holder thereof at the redemption price of $100.00 per unit. Series B-3 preferred OP units do not have any voting or consent rights on any matter requiring the consent or approval of the Operating Partnership’s limited partners.
During the year ended December 31, 2018, we redeemed a total of 41,051 Series B-3 preferred OP units. In January 2019, we redeemed the remaining 26,750 Series B-3 preferred OP units.
Series C Preferred OP Units
Subject to certain limitations, the holder of each Series C preferred OP unit at its option may exchange such Series C preferred OP unit at any time into 1.11 shares of our common stock (which exchange rate is subject to adjustment upon stock splits, recapitalizations, and similar events). The holders of Series C preferred OP units are entitled to receive distributions not less than quarterly. Each Series C preferred OP unit is entitled to receive distributions in an amount equal to the product of $100.00 multiplied by an annual rate equal to (i) 4.5 percent until April 1, 2020, and (ii) 5.0 percent after April 2, 2020. Series C preferred OP units do not have any voting or consent rights on any matter requiring the consent or approval of the Operating Partnership’s limited partners.
Series D Preferred OP Units
On January 31, 2019, the Operating Partnership created a new class of OP units named Series D preferred OP units. As of February 14, 2019, 488,958 Series D preferred units were outstanding.
Subject to certain limitations, each Series D preferred OP unit is exchangeable at any time after the first anniversary of its issuance date into 0.8 shares of the Company’s common stock (as such ratio is subject to adjustment for certain capital events). The Series D preferred OP units provide for quarterly distributions on the $100 per unit issue price of 3.75%3.75 percent per year until January 31, 2021, and 4.0%4.0 percent per year thereafter. Subject to certain limitations, the Series D preferred OP unit holders may cause the Operating Partnership to redeem all or a portion of their Series D preferred OP units for $100 per unit (plus any accrued but unpaid distributions) any time after the earlier of: (i) the fifth anniversary of the issuance of the Series D preferred OP units, or (ii) the Operating Partnership’s notice of the death of the principal of the initial holder of the Series D preferred OP units. The Series D preferred OP units have no voting rights.
Series E Preferred OP Units
Subject to certain limitations, each Series E Preferred Unit is exchangeable at any time after the first anniversary of its issuance date into that number of shares of the Company’s common stock equal to the quotient obtained by dividing $100.00 by $145.00 (which ratio is subject to adjustment for certain capital events). The Series E Preferred Units provide for quarterly distributions of 5.25 percent per year until the second anniversary of their issuance date and 5.50 percent per year thereafter. The Series E preferred OP units have no voting rights.
REAL PROPERTY OPERATIONS
Properties are designed and improved for several home options of various sizes and designs that consist of both MH communities and RV communities.
An MH community is a residential subdivision designed and improved with sites for the placement of manufactured homes, related improvements, and amenities. Manufactured homes are detached, single‑family homes which are produced off‑site by manufacturers and installed on sitessite within the community. Manufactured homes are available in a wide array of designs, providing owners with a level of customization generally unavailable in other forms of multi-family housing developments.
Modern MH communities contain improvements similar to other garden‑style residential developments, including centralized entrances, paved streets, curbs, gutters, and parkways. In addition, these communities also often provide a number of amenities, such as a clubhouse, a swimming pool, shuffleboard courts, tennis courts, and laundry facilities.
An RV community is a resort or park designed and improved with sites for the placement of RVs for varied lengths of time. Properties may also provide vacation rental homes. RV communities include a number of amenities such as restaurants, golf courses, swimming pools, tennis courts, fitness centers, planned activities, and spacious social facilities.
The owner of each home onRenters at our Properties leaseslease the site on which thea manufactured home, vacation rental home, or RV is located. We typically own the underlying land, utility connections, streets, lighting, driveways, common area amenities, and other capital improvements and are responsible for enforcement of community guidelines and maintenance. In sixeight of our 371422 communities, we do not own all of the underlying land and operate the communities pursuant to ground leases. Certain of the Properties provide water and sewer service through public or private utilities, while others provide these services to residents from on-site facilities. Each owner of a home within our Properties is responsible for the maintenance of the home and leased site. As a result, our capital expenditure needs tend to be less significant relative to multi-family rental apartment complexes.
SUN COMMUNITIES, INC.
We compete with other available MH and RV communities, and alternative forms of housing (such as on-site constructed homes, condominiums and townhouses) as they provide housing alternatives to potential tenants of MH and RV communities.
PROPERTY MANAGEMENT
Our property management strategy emphasizes intensive, hands-on management by dedicated, on-site district and community managers. We believe that this on-site focus enables us to continually monitor and address resident concerns, the performance of competitive properties, and local market conditions. As of December 31, 2018,2019, we employed 2,7843,146 full and part time employees, of which 2,3932,742 were located on-site as property managers, support staff, or maintenance personnel.
Our community managers are overseen by John B. McLaren, our President and Chief Operating Officer, who has been in the MH industry since 1995, three Senior Vice Presidents of Operations and Sales, nine10 Divisional Vice Presidents and thirty seven36 Regional Vice Presidents. Each Regional Vice President is responsible for semi-annual market surveys of competitive communities, interaction with local manufactured home dealers, regular property inspections, and oversight of property operations and sales functions, semi-annual market surveys of competitive communities, and interaction with local manufactured home dealers for sixeight to fourteenfifteen properties.
Each district or community manager performs regular inspections in order to continually monitor the Property’s physical condition and to effectively address tenant concerns. In addition to a district or community manager, each district or property has on-site maintenance personnel and management support staff. We hold mandatory training sessions for all new property management personnel to ensure that management policies and procedures are executed effectively and professionally. All of our property management personnel participate in on-going training to ensure that changes to management policies and procedures are implemented consistently. We offer approximately 350 trainings including books, online courses, webinars, and live sessions for our team members through our Sun University, which has led to increased knowledge and accountability for daily operations and policies and procedures.
HOME SALES AND RENTALS
SHS is engaged in the marketing, selling and leasing of new and pre-owned homes to current and future residents in our communities. Because tenants often purchase a home already on-site within a community, such services enhance occupancy and property performance. Additionally, because many of the homes on the Properties are sold through SHS, better control of home quality in our communities can be maintained than if sales services were conducted solely through third-party brokers.
SHS also leases homes to prospective tenants. At December 31, 2018,2019, SHS had 10,99411,325 occupied leased homes in its portfolio. New and pre-owned homes are purchased for the Rental Program. Leases associated with the Rental Program generally have a term of one year. The Rental Program requires intensive management of costs associated with repair and refurbishment of these homes as the tenants vacate and the homes are re-leased, similar to apartment rentals. We received approximately 48,00046,400 applications during 20182019 to live in our Properties, providing a significant “resident boarding” system that allows us to market the purchase of a home to the qualified applicants. Through the Rental Program we are able to demonstrate our product and lifestyle to the renters, while monitoring their payment history and converting qualified renters to owners.
Our home sales and leasing operations compete with other local and national MH dealers and MH community owners.
REGULATIONS AND INSURANCE
General
MH and RV community properties are subject to various laws, ordinances and regulations, including regulations relating to recreational facilities such as swimming pools, clubhouses, and other common areas. We believe that eachEach Property has the necessary operating permits and approvals.
Insurance
Our management believes that the Properties are covered by adequate fire, property, business interruption, general liability, and (where appropriate) flood and earthquake insurance provided by reputable companies with commercially reasonable deductibles and limits. We maintain a blanket policy that covers all of our Properties. We have obtained title insurance insuring fee title to the Properties in an aggregate amount which we believe to be adequate. Claims made to our insurance carriers that are determined to be recoverable are classified in other receivables as incurred.
SITE LEASES OR USAGE RIGHTS
Typical tenant leases for MH sites are month-to-monthyear-to-year or year-to-year,month-to-month, renewable upon the consent of both parties, or, in some instances, as provided by statute. Certain of our leases, mainly at our Florida and California properties, are tied to the consumer price index or other indices as they relate to rent increases. Generally, market rate adjustments are made on an annual basis. These leases are cancelable for non-payment of rent, violation of community rules and regulations or other specified defaults.
During the five calendar years ended December 31, 2018,2019, on average 2.2 percent of the homes in our communities have been removed by their owners and 6.26.5 percent of the homes have been sold by their owners to a new owner who then assumes rental obligations as a community resident. The average cost to move a home ranges from $4,000 to $10,000.is approximately $7,000. On average, our residents remain in our communities for approximately 12 years, while homes, which give rise to the rental stream, remain for over 4540 years.
Please see the Risk Factors in Item 1A, and our accompanying Consolidated Financial Statements and related notes thereto beginning on page F-1 of this Annual Report on Form 10-K for more detailed information.
ACQUISITIONS
For the year ended December 31, 2019, the Company acquired 47 communities, totaling over 10,000 developed sites and over 900 sites available for expansion, for a total purchase price of approximately $815.2 million.
EXPANSION / DEVELOPMENT
For the year ended December 31, 2019, the Company completed the construction of approximately 1,230 expansion sites in 16 existing communities.
For the year ended December 31, 2019, the Company completed the construction of approximately 1,100 sites at four ground-up developments and one redevelopment community.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
The persons listed below are our executive officers.
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| Name | | Age | | Title |
| Gary A. Shiffman | | 65 | | Chairman and Chief Executive Officer |
| John B. McLaren | | 49 | | President and Chief Operating Officer |
| Karen J. Dearing | | 55 | | Executive Vice President, Treasurer, Chief Financial Officer and Secretary |
| Jonathan M. Colman | | 64 | | Executive Vice President |
Gary A. Shiffman is our Chairman and Chief Executive Officer and has been a director and an executive officer since our inception in 1993. He is a member of our Executive Committee. He has been actively involved in the management, acquisition, construction and development of manufactured housing communities and has developed an extensive network of industry relationships over the past thirty years. He has overseen the acquisition, rezoning, development, expansion and marketing of numerous manufactured home communities, as well as recreational vehicle communities. Additionally, Mr. Shiffman, through his family-related interests, has had significant direct holdings in various real estate asset classes, which include office, multi-family, industrial, residential and retail.
John B. McLaren has been in the manufactured housing industry since 1995. He has served as our President since 2014 and as our Chief Operating Officer since 2008. From 2008 to 2014, he served as an Executive Vice President of the Company. From 2005 to 2008, he was Senior Vice President of SHS with overall responsibility for home sales and leasing. Mr. McLaren spent approximately three years as Vice President of Leasing & Service for SHS with responsibility for developing and leading our Rental Program and also has experience in the multi-family REIT segment and the chattel lending industry.
Karen J. Dearing has served as our Chief Financial Officer and Executive Vice President since 2008. She joined us in 1998 as the Director of Finance where she worked extensively with accounting and finance matters related to our ground-up developments and expansions. Ms. Dearing became our Corporate Controller in 2002 and Senior Vice President in 2006. She is responsible for the overall management of our information technology, accounting, tax and finance departments, and all internal and external financial reporting. Prior to working for us, Ms. Dearing had over seven years of experience as the Financial Controller of a privately-owned automotive supplier and over four years of experience as a certified public accountant with Deloitte.
Jonathan M. Colman has served as an Executive Vice President since March 2003. He joined us in 1994 as Vice President-Acquisitions and became a Senior Vice President in 1995. A certified public accountant, Mr. Colman has over thirty-five years of experience in the manufactured housing community industry. Prior to joining Sun, he was involved in the acquisition, financing and management of over 75 manufactured housing communities for two of the 10 largest manufactured housing community owners, including Uniprop, Inc. during its syndication of over $90.0 million in public limited partnerships in the late 1980s. Mr. Colman is also a Vice President of all of our corporate subsidiaries.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K 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” 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 disclosed under “Risk Factors” contained in this Annual Report on Form 10-K and our other filings with the SEC, such risks and uncertainties include, but are not limited to:
changes in general economic conditions, the real estate industry, and the markets in which we operate;
difficulties in our ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
our liquidity and refinancing demands;
our ability to obtain or refinance maturing debt;
our ability to maintain compliance with covenants contained in our debt facilities;
availability of capital;
changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar and the Australian dollar;
our ability to maintain rental rates and occupancy levels;
our failure 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 and wildfires;
general volatility of the capital markets and the market price of shares of our capital stock;
our failure to maintain our 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 manufactured home buyers to obtain financing; and
the level of repossessions by manufactured home 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. We undertake 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, and changes in our expectations or otherwise, except as required by law.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by these cautionary statements.
ITEM 1A. RISK FACTORS
Our prospects are subject to certain uncertainties and risks. Our future results could differ materially from current results, and our actual results could differ materially from those projected in forward-looking statements as a result of certain risk factors. These risk factors include, but are not limited to, those set forth below, other one-time events, and important factors disclosed previously and from time to time in our other filings with the SEC.
REAL ESTATE AND OPERATIONS RISKS
General economic conditions and the concentration of our properties in Florida, Michigan, Texas, and California may affect our ability to generate sufficient revenue.
The market and economic conditions in our current markets generally, and specifically in metropolitan areas of our current markets, may significantly affect manufactured home occupancy or rental rates. Occupancy and rental rates, in turn, may significantly affect our revenues, and if our communities do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow and ability to pay or refinance our debt obligations could be adversely affected. We derive significant amounts of our rental income from properties located in Florida, Michigan, Texas, and California.
As of December 31, 2018, 1242019, 125 properties, representing approximately 34.131.6 percent of developed sites, are located in Florida; 7072 properties, representing approximately 21.120.2 percent of developed sites, are located in Michigan; 23 properties, representing approximately 6.86.5 percent of developed sites, are located in Texas; and 3031 properties, representing approximately 6.05.6 percent of developed sites, are located in California. As a result of the geographic concentration of our Properties in Florida, Michigan, Texas and California, we are exposed to the risks of downturns in local economies or other local real estate market conditions which could adversely affect occupancy rates, rental rates, and property values in these markets.
Our revenue would also be adversely affected if tenants were unable to pay rent or if sites were unable to be rented on favorable terms. If we were unable to promptly relet or renew the leases for a significant number of the sites, or if the rental rates upon such renewal or reletting were significantly lower than expected rates, then our business and results of operations could be adversely affected. In addition, certain expenditures associated with each Property (such as real estate taxes and maintenance costs) generally are not reduced when circumstances cause a reduction in income from the Property. Furthermore, real estate investments are relatively illiquid and, therefore, will tend to limit our ability to vary our portfolio promptly in response to changes in economic or other conditions.
The following factors, among others, may adversely affect the revenues generated by our communities:
the national and local economic climate which may be adversely impacted by, among other factors, plant closings, and industry slowdowns;
local real estate market conditions such as the oversupply of MH and RV sites or a reduction in demand for MH and RV sites in an area;
changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar and Australian dollar;
the number of repossessed homes in a particular market;
the lack of an established dealer network;
the rental market which may limit the extent to which rents may be increased to meet increased expenses without decreasing occupancy rates;
the perceptions by prospective tenants of the safety, convenience and attractiveness of our Properties and the neighborhoods where they are located;
zoning or other regulatory restrictions;
competition from other available MH and RV communities and alternative forms of housing (such as apartment buildings and site-built single-family homes);
our ability to effectively manage, maintain and insure theour Properties;
increased operating costs, including insurance premiums, real estate taxes, and utilities; and
the enactment of rent control laws or laws taxing the owners of manufactured homes.
Competition affects occupancy levels and rents which could adversely affect our revenues.
Our Properties are located in developed areas that include other MH and RV community properties.communities. The number of competitive MH and RV community propertiescommunities in a particular area could have a material adverse effect on our ability to lease sites and increase rents charged at our Properties or at any newly acquired properties. We may be competing with others with greater resources and whose officers and directors have more experience than our officers and directors. In addition, other forms of multi‑family residential properties, such as private and federally funded or assisted multi-family housing projects and single‑family housing, provide housing alternatives to potential tenants of MH and RV communities.
Our ability to sell or lease manufactured homes may be affected by various factors, which may in turn adversely affect our profitability.
SHS operates in the manufactured home market offering manufactured home sales and leasing services to tenants and prospective tenants of our communities. The market for the sale and lease of manufactured homes may be adversely affected by the following factors:
downturns in economic conditions which adversely impact the housing market;
an oversupply of, or a reduced demand for, manufactured homes;
the difficulty facing potential purchasers in obtaining affordable financing as a result of heightened lending criteria; and
an increase or decrease in the rate of manufactured home repossessions which provide aggressively priced competition to new manufactured home sales.
Any of the above listed factors could adversely impact our rate of manufactured home sales and leases, which would result in a decrease in profitability.
The cyclical and seasonal nature of the MH and the RV industries may lead to fluctuations in our operating results.
The MH and RV markets can experience cycles of growth and downturn due to seasonality patterns. In the MHRV market, certain propertiesProperties maintain higher occupancy during the summer months, while certain other propertiesProperties maintain higher occupancy during the winter months. The RV market typically shows a decline in demand over the winter months, yet usually produces higher growth in the spring and summer months due to higher use by vacationers. Our results on a quarterly basis can fluctuate due to this cyclicality and seasonality.
We may not be able to integrate or finance our acquisitions and our acquisitions may not perform as expected.
We have acquired and intend to continue to selectively acquire MH and RV properties. Our acquisition activities and their success are subject to the following risks:
we may be unable to acquire a desired property because of competition from other well-capitalized real estate investors, including both publicly traded REITs and institutional investment funds;
even if we enter into an acquisition agreement for a property, it is usually subject to customary conditions to closing, including completion of due diligence investigations to our satisfaction, which may not be satisfied;
even if we are able to acquire a desired property, competition from other real estate investors may significantly increase the purchase price;
we may be unable to finance acquisitions on favorable terms;
acquired properties may fail to perform as expected;
acquired properties may be located in new markets where we face risks associated with a lack of market knowledge or understanding of the local economy, lack of business relationships in the area, and unfamiliarity with local governmental and permitting procedures; and
we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations.
If any of the above risks occur, our business and results of operations could be adversely affected.
In addition, we may acquire properties subject to liabilities and without any recourse,we may be left with no, or with only limited, recourse, with respect to unknown liabilities. As a result, if a liability werewe may have to bepay substantial sums to settle any liabilities asserted against us based upon ownership of thosenewly acquired properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.
Increases in taxes and regulatory compliance costs may reduce our results of operations.
Costs resulting from changes in real estate laws, income taxes, service or other taxes, generally are not passed through to tenants under leases and may adversely affect our results of operations and financial condition. Similarly, changes in laws increasing the potential liability for environmental conditions existing on propertiesProperties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures, which would adversely affect our business and results of operations.
We may not be able to integrate or finance our expansion and development activities.
We engage in the construction and development of new communities or expansion of existing communities and intend to continue to engage in the development and construction business in the future. Our construction and development pipeline may be exposed to the following risks which are in addition to those risks associated with the ownership and operation of established MH and RV communities:
we may not be able to obtain financing with favorable terms for community development which may make us unable to proceed with the development;
we may be unable to obtain, or face delays in obtaining, necessary zoning, building and other governmental permits and authorizations, which could result in increased costs and delays, and even require us to abandon development of the community entirely if we are unable to obtain such permits or authorizations;
we may abandon development opportunities that we have already begun to explore and as a result we may not recover expenses already incurred in connection with exploring such development opportunities;
we may be unable to complete construction and lease‑up of a community on schedule resulting in increased debt service expense and construction costs;
we may incur construction and development costs for a community which exceed our original estimates due to increased materials, labor or other costs, which could make completion of the community uneconomical and we may not be able to increase rents to compensate for the increase in development costs which may impact our profitability;
we may be unable to secure long‑term financing on completion of development resulting in increased debt service and lower profitability; and
occupancy rates and rents at a newly developed community may fluctuate depending on several factors, including market and economic conditions, which may result in the community not being profitable.
If any of the above risks occur, our business and results of operations could be adversely affected.
Rent control legislation may harm our ability to increase rents.
State and local rent control laws in certain jurisdictions may limit our ability to increase rents and to recover increases in operating expenses and the costs of capital improvements. Enactment of such laws has been considered from time to time in other jurisdictions. Certain Properties are located, and we may purchase additional properties, in markets that are either subject to rent control or in which rent-limiting legislation exists or may be enacted.
Legislative requirements can limit accessibility of affordable financing for potential manufactured home buyers.
Legislation impacting third party loan originators, consumer protection laws and lender requirements to investigate a borrower's creditworthiness may restrict access ofto affordable chattel financing to potential manufactured home buyers.
We may be subject to environmental liability.
Under various federal, state and local laws, ordinances and regulations, an owner or operator of real estate is liable for the costs of removal or remediation of certain hazardous substances at, on, under or in such property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of such hazardous substances. The presence of such substances, or the failure to properly remediate such substances, may adversely affect the owner’s ability to sell or rent the property, to borrow using the property as collateral or to develop the property. Persons who arrange for the disposal or treatment of hazardous substances also may be liable for the costs of removal or remediation of such substances at a disposal or treatment facility owned or operated by another person. In addition, certain environmental laws impose liability for the management and disposal of asbestos‑containing materials and for the release of such materials into the air. These laws may provide forpermit third parties to seek recovery from owners or operators of real properties for personal injury associated with asbestos‑containing materials. In connection with the ownership, operation, management, and development of real properties, we may be considered an owner or operator of such properties and, therefore, are potentially liable for removal or remediation costs, and also may be liable for governmental fines and injuries to persons and property. When we arrange for the treatment or disposal of hazardous substances at landfills or other facilities owned by other persons, we may be liable for the removal or remediation costs at such facilities.
All ofWe subject our Properties have been subject to a Phase I or similar environmental audit (which involves general inspections without soil sampling or ground water analysis) completed by independent environmental consultants. These environmental audits have not revealed any significant environmental liability that would have a material adverse effect on our business. These audits cannot reflect conditions arising after the studies were completed, and no assurances can be given that existing environmental studies reveal all environmental liabilities, that any prior owner or operator of a property or neighboring owner or operator did not create any material environmental condition not known to us, or that a material environmental condition does not otherwise exist as to any one or more Properties.
Cybersecurity breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
We rely intensively on information technology to account for tenant transactions, manage the privacy of tenant data, communicate internally and externally, and analyze our financial and operating results. In the ordinary course of our business, we collect and store sensitive data, including our proprietary business information and that of our tenants, clients, vendors and employees in our facilities and on our network. In addition, we engage third party service providers that may have access to such information in connection with providing necessary information technology and security and other business services to us. This information may include personally identifiable information such as social security numbers, banking information and credit card information.
We address potential breaches or disclosure of this confidential information by implementing a variety of security measures intended to protect the confidentiality and security of this information including (among others) engaging reputable, recognized firms to help us design and maintain our information technology and data security systems, including testing and verification of their proper and secure operations on a periodic basis. We also maintain cyber risk insurance to provide some coverage for certain risks arising out of data and network breaches.
Despite our security measures, our information technology and infrastructure, as well as that of our third-party vendors, may be vulnerable to attacks by hackers (including through malware, ransomware, computer viruses, and email phishing schemes) or breached due to employee error, malfeasance, fire, flood or other physical event, or other disruptions. Any such breach or disruption could compromise our or a third-party vendor’s network and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could:
result in legal claims or proceedings,
disrupt our operations, including our ability to service our tenants and our ability to analyze and report our financial and operating results,
decrease our revenues,
damage our reputation,
cause a loss of confidence,
increase our insurance premiums, or
have other material adverse effects on our business.
We are dependent on continuous access to the Internetinternet to use our cloud-based applications. Damage to, or failure toof our information technology systems, including as a result of any of the reasons described above, could adversely affect our results of operations as we may incur significant costs or data loss. We continually assess new and enhanced information technology solutions to manage the risk of system failure or interruption.
Expanding social media platforms present new challenges.
Social media outlets continue to grow and expand, which presents us with new risks. Adverse content about the Companyus and our Properties on social media platforms could result in damage to our reputation or brand. Improper posts by employees or others could result in disclosure of confidential or proprietary information regarding our operations.
Losses in excess of our insurance coverage or uninsured losses could adversely affect our operating results and cash flow.
We have a significant concentration of properties in Florida and California, where natural disasters or other catastrophic events such as hurricanes, earthquakes, floods and wildfires could negatively impact our operating results and cash flows. We maintain comprehensive liability, fire, property, business interruption, general liability, and (where appropriate) flood and earthquake insurance, provided by reputable companies with commercially reasonable deductibles and limits. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. However, certain types of losses including, but not limited to, riots or acts of war, may be either uninsurable or not economically insurable. In the event an uninsured loss occurs, we could lose both our investment in and anticipated profits and cash flow from the affected property. We would also continue to be obligated to repay any mortgage indebtedness or other obligations related to the community. If an uninsured liability to a third party were to occur, we would incur the cost of defense and settlement with, or court ordered damages to, that third party. A significant uninsured property or liability loss could have a material adverse effect on our business and our financial condition and results of operations.
Investments through joint ventures involve risks not present for Properties in which we are the sole owner.
We have invested and may continue to invest as a joint venture partner in joint ventures. These investments involve risks, including, but not limited to, the possibility the other joint venture partner may have business goals which are inconsistent with ours, possess the ability to take or force action or withhold consent contrary to our requests, fail to provide capital or fulfill its obligations, or become insolvent and require us to assume and fulfill the joint venture’s financial obligations. Conflicts arising between us and our joint venture partners may be difficult to manage or resolve and it could be difficult to manage or otherwise monitor the existing business arrangements. We and our joint venture partners may each have the right to initiate a buy-sell arrangement, which could cause us to sell our interest, or acquire a joint venture partner’s interest, at a time when we otherwise would not have entered into such a transaction. Each joint venture agreement is individually negotiated, and our ability to operate, finance, or dispose of a Property in our sole discretion may be limited to varying degrees depending on the terms of the applicable joint venture agreement.
Climate change may adversely affect our business.
To the extent that significant changes in the climate occur in areas where our Properties are located, we may experience extreme weather and changes in precipitation and temperature, all of which may result in physical damage to or a decrease in demand for properties located in these areas or affected by these conditions. Should the impact of climate change be material in nature, including significant property damage to or destruction of our Properties, or occur for lengthy periods of time, our financial condition or results of operations may be adversely affected. In addition, changes in federal, state and local legislation and regulation based on concerns about climate change could result in increased capital expenditures on our Properties (for example, to improve their energy efficiency and/or resistance to inclement weather) without a corresponding increase in revenue, resulting in adverse impacts to our net income.
FINANCING AND INVESTMENT RISKS
Our significant amount of debt could limit our operational flexibility or otherwise adversely affect our financial condition.
We have a significant amount of debt. As of December 31, 2018,2019, we had approximately $3.1$3.4 billion of total debt outstanding, consisting of approximately $2.8$3.2 billion in debt that is collateralized by mortgage liens on 185188 of the Properties, $107.7 million that is secured by collateralized receivables, $128.0$183.9 million on our lines of credit, $35.3$35.2 million of mandatorily redeemable interest, and $37.3$34.7 million that is unsecured debt.preferred OP units - mandatorily redeemable. If we fail to meet our obligations under our secured debt, the lenders would be entitled to foreclose on all or some of the collateral securing such debt which could have a material adverse effect on us and our ability to make expected distributions, and could threaten our continued viability.
We are subject to the risks normally associated with debt financing, including the following risks:
our cash flow may be insufficient to meet required debt payments, of principal and interest, or require uswe may need to dedicate a substantial portion of our cash flow to pay our debt and the interest associated with our debt rather than to other areas of our business;
our existing indebtedness may limit our operating flexibility due to financial and other restrictive covenants, including restrictions on incurring additional debt;
it may be more difficult for us to obtain additional financing in the future for our operations, working capital requirements, capital expenditures, debt service or other general requirements;
we may be more vulnerable in the event of adverse economic and industry conditions or a downturn in our business;
we may be placed at a competitive disadvantage compared to our competitors that have less debt; and
we may not be able to refinance at all or on favorable terms, as our debt matures.
If any of the above risks occurred, our financial condition and results of operations could be materially adversely affected.
We may incur substantially more debt, which would increase the risks associated with our substantial leverage.
Despite our current indebtedness levels, we may incur substantially more debt in the future. If new debt is added to our current debt levels, an even greater portion of our cash flow will be needed to satisfy our debt service obligations. As a result, the related risks that we now face could intensify and increase the risk of a default on our indebtedness.
The phase out of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate, may adversely affect interest rates.
On July 27, 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced that it would phase out LIBOR by the end of 2021. Many of our Property-level real estate loans have fixed interest rates which will not be impacted by any change in LIBOR. Certain of our other loans, including a majority of the borrowings under our $750.0 million senior credit facility, have interest rates based on LIBOR. Our senior credit facility provides that we and the administrative agent for the lenders will negotiate an interest rate to replace the current LIBOR-based rate, and if the parties do not negotiate a replacement interest rate, the new rate will be based on the prime rate. The replacement of LIBOR with an alternative rate or benchmark may adversely affect our interest rates and result in higher borrowing costs. This could materially and adversely affect our results of operations, cash flows and liquidity.
TAX RISKS
We may suffer adverse tax consequences and be unable to attract capital if we fail to qualify as a REIT.
We believe that since our taxable year ended December 31, 1994, we have been organized and operated, and intend to continue to operate, so as to qualify for taxation as a REIT under the Code. Although we believe that we have been and will continue to be organized and have operated and will continue to operate so as to qualify for taxation as a REIT, we cannot be assured that we have been or will continue to be organized or operated inqualify as a manner to so qualify or remain so qualified.REIT. Qualification as a REIT involves the satisfaction of numerous requirements (some on an annual and quarterly basis) established under highly technical and complex Code provisions for which there are only limited judicial or administrative interpretations and involves the determination of various factual matters and circumstances not entirely within our control. In addition, frequent changes occur in the area of REIT taxation, which require us to continually monitor our tax status.
If we fail to qualify as a REIT in any taxable year, our taxable income could be subject to U.S. federal income tax at regular corporate rates. Moreover, unless entitled to relief under certain statutory provisions, we also would be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost. This treatment would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability to us for the years involved. In addition, distributions to stockholders would no longer be required to be made.
Federal, state and foreign income tax laws governing REITs and related interpretations may change at any time, and any such legislative or other actions affecting REITs could have a negative effect on us.
Federal, state and foreign income tax laws governing REITs, or the administrative interpretations of those laws may be amended at any time. Federal, state, and foreign tax laws are under constant review by persons involved in the legislative process, at the Internal Revenue Service and the U.S. Department of the Treasury, and at various state and foreign tax authorities. Changes to tax laws, regulations, or administrative interpretations, which may be applied retroactively, could adversely affect us. We cannot predict whether, when, in what forms, or with what effective dates, the tax laws, regulations, and administrative interpretations applicable to us may be changed. Accordingly, we cannot assert that any such change will not significantly affect either our ability to qualify for taxation as a REIT or the income tax consequences to us.
Outside of the U.S. federal tax legislation enacted into law on December 22, 2017 informally titled theThe Tax Cut and Jobs Act (the “Tax Act”), there has been no new major changes to the taxation of individuals and businesses was enacted into law in 2018. However, theDecember 2017. The overall impact of the Tax Act is uncertain. In addition, there are a significant number of technical issues clarified with respect to the interpretation and application of the Tax Act which may or may not be clarified by future guidance. It is not possible to predict whether such clarifications will result in adverse consequences to the Company or its stockholders. Stockholders are urged to consult their tax advisors with respect to the effects of the Tax Act and any other potential amendments to relevant tax laws.
We intend for the Operating Partnership to be taxed as a partnership, but we cannot guarantee that it will qualify.
We believe that the Operating Partnership has been organized as a partnership and will qualify for treatment as such under the Code. However, if the Operating Partnership is deemed to be a “publicly traded partnership,” it will be treated as a corporation instead of a partnership for federal income tax purposes unless at least 90 percent of its income is qualifying income as defined in the Code. The income requirements applicable to REITs and the definition of “qualifying income” for purposes of this 90 percent test are similar in most respects. Qualifying income for the 90 percent test generally includes passive income, such as specified types of real property rents, dividends, and interest. We believe that the Operating Partnership has and will continue to meet this 90 percent test, but we cannot guarantee that it has or will. If the Operating Partnership were to be taxed as a regular corporation, it would incur substantial tax liabilities, we would fail to qualify as a REIT for federal income tax purposes, and our ability to raise additional capital could be significantly impaired.
Partnership tax audit rules could have a material adverse effect on us.
The Bipartisan Budget Act of 2015 changed the rules applicable to U.S. federal income tax audits of partnerships. Under the rules, effective for taxable years beginning in 2018, among other changes and subject to certain exceptions, any audit adjustment to items of income, gain, loss, deduction, or credit of a partnership (and a partner’s allocable share thereof) is determined, and taxes, interest, and penalties attributable thereto are assessed and collected, at the partnership level. Unless the partnership makes an election permitted under the new law or takes certain steps to require the partners to pay their tax on their allocable shares of the adjustment, it is possible that partnerships in which we directly or indirectly invest, including the Operating Partnership, would be required to pay additional taxes, interest and penalties as a result of an audit adjustment. We, as a direct or indirect partner of the Operating Partnership and other partnerships, could be required to bear the economic burden of those taxes, interest, and penalties even though the Company, as a REIT, may not otherwise have been required to pay additional corporate-level tax. The changes created by these rules are significant for collecting tax in partnership audits and, accordingly, there can be no assurance that these rules will not have a material adverse effect on us.
Our ability to accumulate cash may be restricted due to certain REIT distribution requirements.
In order to qualify as a REIT, we must distribute to our stockholders at least 90 percent of our REIT taxable income (calculated without any deduction for dividends paid and excluding net capital gain) and to avoid federal income taxation, our distributions must not be less than 100 percent of our REIT taxable income, including capital gains. As a result of the distribution requirements, we do not expect to accumulate significant amounts of cash. Accordingly, these distributions could significantly reduce the cash available to us in subsequent periods to fund our operations and future growth.
Our taxable REIT subsidiaries, or TRSs, are subject to special rules that may result in increased taxes.
As a REIT, we must pay a 100 percent penalty tax on certain payments that we receive if the economic arrangements between us and any of our TRSs are not comparable to similar arrangements between unrelated parties. The Internal Revenue Service may successfully assert that the economic arrangements of any of our inter-company transactions are not comparable to similar arrangements between unrelated parties. This would result in unexpected tax liability which would adversely affect our cash flows.
Dividends payable by REITs do not qualify for the reduced tax rates applicable to certain dividends.
The maximum federal tax rate for certain qualified dividends payable to domestic stockholders that are individuals, trusts and estates is 20 percent. Dividends payable by REITs, however, are generally not eligible for this reduced rate, although the new Tax Act permits a 20 percent deduction equal to the amount of qualifying REIT dividends received, thus bringing the maximum federal tax rate on qualifying REIT dividends to 29.6 percent. While this rule does not adversely affect the taxation of REITs or dividends paid by REITs, the more favorable rates applicable to regular qualified corporate dividends could cause investors who are individuals, trusts and estates to perceive investments in REITs to be relatively less competitive than investments in stock of non-REIT corporations that pay dividends, which could adversely affect the comparative value of the stock of REITs, including our common stock and preferred stock.
Prospective investors should consult their own tax advisors regarding the effect of this change on their effective tax rate with respect to REIT dividends.
Complying with REIT requirements may cause us to forego otherwise attractive opportunities.
To remain qualified as a REIT for federal income tax purposes, we must continually satisfy requirements and tests under the tax law concerning, among other things, the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and the ownership of our stock. In order to meet these tests, we may be required to forego or limit attractive business or investment opportunities and distribute all of our net earnings rather than invest in attractive opportunities or hold larger liquid reserves. Therefore, compliance with the REIT requirements may hinder our ability to operate solely to maximize profits.
Our ability to use net operating loss carryforwards to reduce future tax payments may be limited if we experience a change in ownership, or if taxable income does not reach sufficient levels.
Under Section 382 of the Code, if a corporation undergoes an “ownership change” (generally defined as a greater than 50 percent change (by value) in its equity ownership over a rolling three-year period), the corporation’s ability to use its pre-ownership-change net operating loss carryforwards to offset its post-ownership-change income may be limited. We may experience ownership changes in the future. If an ownership change were to occur, we would be limited in the portion of net operating loss carryforwards that we could use in the future to offset taxable income for U.S. federal income tax purposes.
BUSINESS RISKS
Some of our directors and officers may have conflicts of interest with respect to certain related party transactions and other business interests.
Lease of Executive Offices. Gary A. Shiffman, together with certain of his family members, indirectly owns an equity interest of approximately 28.1 percent in American Center LLC, the entity from which we lease office space for our principal executive offices. Each of Brian M. Hermelin, Ronald A. Klein and Arthur A. Weiss indirectlyowns a less than one percent interest in American Center LLC. Mr. Shiffman is our Chief Executive Officer and Chairman of the Board. Each of Mr. Hermelin, Mr. Klein and Mr. Weiss is a director of the Company. Under this agreement, we lease approximately 103,100 rentable square feet of permanent space. The initial term of the lease is until October 31, 2026, and the average gross base rent is $18.55$18.95 per square foot until October 31, 20192020 with graduated rental increases thereafter. Each of Mr. Shiffman, Mr. Hermelin, Mr. Klein and Mr. Weiss may have a conflict of interest with respect to his obligations as our officer and/or director and his ownership interest in American Center LLC.
Legal Counsel. During 2015-2018,2017-2019, Jaffe, Raitt, Heuer, & Weiss, Professional Corporation acted as our general counsel and represented us in various matters. Arthur A. Weiss is the Chairman of the Board of Directors and a shareholder of such firm. We incurred legal fees and expenses owed to Jaffe, Raitt, Heuer, & Weiss of approximately $11.1 million, $7.1 million $5.0 million and $8.0$5 million in the years ended December 31, 2019, 2018 and 2017, respectively.
Use of Airplane. Gary A. Shiffman is the beneficial owner of an airplane that we use from time to time for business purposes. During the year ended December 31, 2019, we paid $0.4 million for the use of the airplane. Mr. Shiffman may have a conflict of interest with respect to his obligations as our officer and 2016, respectively.director and his ownership interest in the airplane.
Telephone Services. Brian M. Hermelin is a principal and a beneficial owner of an entity that installs and maintains emergency telephone systems at our Properties. During the year ended December 31, 2019, we paid $0.2 million for these services. Mr. Hermelin may have a conflict of interest with respect to his obligations as our director and his position with and ownership interest in the provider of these services.
Tax Consequences Upon Sale of Properties. Gary A. Shiffman holds limited partnership interests in the Operating Partnership which were received in connection with the contribution of properties from partnerships previously affiliated with him. Prior to any redemption of these limited partnership interests for our common stock, Mr. Shiffman will have tax consequences different from those on us andthan our public stockholders upon the sale of any of these partnerships. Therefore, we and Mr. Shiffman may have different objectives regarding the appropriate pricing and timing of any sale of those properties.
We rely on key management.
We are dependent on the efforts of our executive officers, Gary A. Shiffman, John B. McLaren, Karen J. Dearing, and Jonathan M. Colman. The loss of services of one or more of these executive officers could have a temporary adverse effect on our operations. We do not currently maintain or contemplate obtaining any “key-man” life insurance on the Executive Officers.
Certain provisions in our governing documents may make it difficult for a third-party to acquire us.
9.8 percent Ownership Limit. In order to qualify and maintain our qualification as a REIT, not more than 50 percent of the outstanding shares of our capital stock may be owned, directly or indirectly, by five or fewer individuals. Thus, ownership of more than 9.8 percent, in number of shares or value, of the issued and outstanding shares of our capital stock by any single stockholder has been restricted, with certain exceptions, for the purpose of maintaining our qualification as a REIT under the Code. Such restrictions in our charter do not apply to Milton M. Shiffman, Gary A. Shiffman, and Robert B. Bayer; trustees, personal representatives and agents to the extent acting for them or their respective estates; or certain of their respective relatives.
The 9.8 percent ownership limit, as well as our ability to issue additional shares of common stock or shares of other stock (which may have rights and preferences over the common stock), may discourage a change of control of the Company and may also: (1)(a) deter tender offers for the common stock, which offers may be advantageous to stockholders; and (2)(b) limit the opportunity for stockholders to receive a premium for their common stock that might otherwise exist if an investor were attempting to assemble a block of common stock in excess of 9.8 percent of our outstanding shares or otherwise effect a change of control of the Company.
Preferred Stock. Our charter authorizes the Board of Directors to issue up to 20,000,000 shares of preferred stock, none of which is currently outstanding, and to establish the preferences and rights (including the right to vote and the right to convert into shares of common stock) of any shares issued.
Our charter designates 6,364,770 shares of preferred stock as 6.50% Series A-4 Cumulative Convertible Preferred Stock (“Series A-4 preferred stock”), $0.01 par value per share of which 1,062,789 shares were issued and outstanding as of December 31, 2018. The power to issue preferred stock could have the effect of delaying or preventing a change in control of the Company even if a change in control were in the stockholders’ interest.
Subject to certain limitations, upon written notice to us, each holder of shares of Series A-4 preferred stock at its option may convert each share of Series A-4 preferred stock held by it for that number of shares of our common stock equal to the quotient obtained by dividing $25.00 by the then-applicable conversion price. The initial conversion price is $56.25, so initially each share of Series A-4 preferred stock is convertible into approximately 0.4444 shares of common stock. The conversion price is subject to adjustment upon various events. At our option, instead of issuing the shares of common stock to the converting holder of Series A-4 preferred stock as described above, we may make a cash payment to the converting holder with respect to each share of Series A-4 preferred stock the holder desires to convert equal to the fair market value of one share of our common stock. If, at any time after November 26, 2019, the volume weighted average of the daily volume weighted average price of a share of our common stock on the New York Stock Exchange (“NYSE”) equals or exceeds 115.5 percent of the then prevailing conversion price for at least 20 trading days in a period of 30 consecutive trading days, then, within 10 days thereafter, upon written notice to the holders thereof, we may convert each outstanding share of Series A-4 preferred stock into that number of shares of common stock equal to the quotient obtained by dividing $25.00 by the then prevailing conversion price.
These features of the Series A-4 preferred stock may have the effect of inhibiting a third-party from making an acquisition proposal for the Company or of delaying, deferring or preventing a change of control of the Company under circumstances that otherwise could provide the holders of our common stock and preferred stock with the opportunity to realize a premium over the then-current market price or that stockholders may otherwise believe is in their best interests.
Certain provisions of Maryland law could inhibit changes in control, which may discourage third parties from conducting a tender offer or seeking other change of control transactions that could involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interest.
Certain provisions of the Maryland General Corporation Law (“MGCL”), may have the effect of inhibiting a third-party from making a proposal to acquire us or of impeding a change of control under circumstances that otherwise could provide the holders of shares of our capital stock with the opportunity to realize a premium over the then-prevailing market price of such shares, including:
“business combination” provisions that, subject to limitations, prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10 percent or more of the voting power of our shares or an affiliate thereof or an affiliate or associate of ours who was the beneficial owner, directly or indirectly, of 10 percent or more of the voting power of our then outstanding voting stock at any time within the two-year period immediately prior to the date in question) for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter impose fair price and/or supermajority and stockholder voting requirements on these combinations; and
“control share” provisions that provide that “control shares” of our company (defined as shares that, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of issued and outstanding “control shares”) have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares.
The provisions of the MGCL relating to business combinations do not apply, however, to business combinations that are approved or exempted by our Board of Directors prior to the time that the interested stockholder becomes an interested stockholder. As permitted by the statute, our Board of Directors has by resolution exempted Milton M. Shiffman, Robert B. Bayer, and Gary A. Shiffman, their affiliates and all persons acting in concert or as a group with the foregoing, from the business combination provisions of the MGCL and, consequently, the five-year prohibition and the supermajority vote requirements will not apply to business combinations between us and these persons.
As a result, these persons may be able to enter into business combinations with us that may not be in the best interests of our stockholders without compliance by our Companycompany with the supermajority vote requirements and the other provisions of the statute.
Also, pursuant to a provision in our bylaws, we have exempted any acquisition of our stock from the control share provisions of the MGCL. However, our Board of Directors may by amendment to our bylaws opt in tointo the control share provisions of the MGCL at any time in the future.
Additionally, Subtitle 8 of Title 3 of the MGCL permits our Board of Directors, without stockholder approval and regardless of what is currently provided in our charter or bylaws, to elect to be subject to certain provisions relating to corporate governance that may have the effect of delaying, deferring or preventing a transaction or a change of control of our company that might involve a premium to the market price of our common stock or otherwise be in our stockholders’ best interests. These provisions include a classified board; two-thirds vote to remove a director; that the number of directors may only be fixed by the Board of Directors; that vacancies on the board as a result of an increase in the size of the board or due to death, resignation or removal can only be filled by the board, and the director appointed to fill the vacancy serves for the remainder of the full term of the class of director in which the vacancy occurred; and a majority requirement for the calling by stockholders of special meetings. Other than a classified board, the filling of vacancies as a result of the removal of a director and a majority requirement for the calling by stockholders of special meetings, we are already subject to these provisions, either by provisions of our charter and bylaws unrelated to Subtitle 8 or by reason of an election to be subject to certain provisions of Subtitle 8. In the future, our Board of Directors may elect, without stockholder approval, to make us subject to the provisions of Subtitle 8 to which we are not currently subject.
Our Board of Directors has power to adopt, alter or repeal any provision of our bylaws or make new bylaws, provided, however, that our stockholders may alter or repeal any provision of our bylaws and adopt new bylaws if any such alteration, repeal or adoption is approved by the affirmative vote of a majority of all votes entitled to be cast on the matter.
Changes in our investment and financing policies may be made without stockholder approval.
Our investment and financing policies, and our policies with respect to certain other activities, including our growth, debt, capitalization, distributions, REIT status, and operating policies, are determined by our Board of Directors. Although the Board of Directors has no present intention to do so, these policies may be amended or revised from time to time at the discretion of the Board of Directors without notice to or a vote of our stockholders. Accordingly, stockholders may not have control over changes in our policies and changes in our policies may not fully serve the interests of all stockholders.
Substantial sales or issuances of our common or preferred stock could cause our stock price to fall.
The sale or issuance of substantial amounts of our common stock or preferred stock, whether directly by us or in the secondary market, the perception that such sales could occur or the availability of future issuances of shares of our common stock, preferred stock, OP units or other securities convertible into or exchangeable or exercisable for our common stock or preferred stock, could materially and adversely affect the market price of our common stock or preferred stock and our ability to raise capital through future offerings of equity or equity-related securities. In addition, we may issue capital stock that is senior to our common stock in the future for a number of reasons, including to finance our operations and business strategy, to adjust our ratio of debt to equity or for other reasons.
Based on the applicable conversion ratios then in effect, as of February 14, 2019,13, 2020, in the future we may issue to the limited partners of the Operating Partnership, up to approximately 2.74.4 million shares of our common stock in exchange for their OP units. The limited partners may sell such shares pursuant to registration rights, if available, or an available exemption from registration. As of February 14, 2019,13, 2020, options to purchase 3,0001,500 shares of our common stock were outstanding under our equity incentive plans, and we currently have the authority to issue restricted stock awards or options to purchase up to an additional 1,330,6681,041,758 shares of our common stock pursuant to our equity incentive plans. In addition, we entered into an At-the-Market Offering Sales Agreement in July 2017 to issue and sell shares of common stock. As of February 14, 2019,13, 2020, our Board of Directors had authorized us to sell an additional $286.3 million of common stock under this agreement. No prediction can be made regarding the effect that future sales of shares of our common stock or our other securities will have on the market price of shares.
An increase in interest rates may have an adverse effect on the price of our common stock.
One of the factors that may influence the price of our common stock in the public market will be the annual distributions to stockholders relative to the prevailing market price of the common stock. An increase in market interest rates may tend to make the common stock less attractive relative to other investments, which could adversely affect the market price of our common stock.
We may be adversely impacted by fluctuations in foreign currency exchange rates.
Our current and future investments in and operations of Canadian and Australian properties are or will be exposed to the effects of changes in the Canadian dollar and Australian dollar, respectively, against the U.S. dollar. Changes in foreign currency exchange rates cannot always be predicted; as a result, substantial unfavorable changes in exchange rates could have a material adverse effect on our financial condition and results of operations.
The volatility in economic conditions and the financial markets may adversely affect our industry, business and financial performance.
The U.S. interest rate environment, oil price fluctuations, uncertain tax and economic plans in the U.S. executive and legislative branches, and turmoil in emerging markets have created uncertainty and volatility in the U.S. and global economies. Continued economic uncertainty, both nationally and internationally, causes increased volatility in investor confidence thereby creating similar volatility in the availability of both debt and equity capital in the financial markets. The other risk factors presented in this Annual Report on Form 10-K discuss some of the principal risks inherent in our business, including liquidity risks, operational risks, and credit risks, among others. Turbulence in financial markets accentuates each of these risks and magnifies their potential effect on us. If such volatility is experienced in future periods, there could be an adverse impact on our access to capital, stock price and our operating results.
Our business operations may not generate the cash needed to make distributions on our capital stock or to service our indebtedness, and we may adjust our common stock distribution policy.
Our ability to make distributions on our common stock and preferred stock, and payments on our indebtedness and to fund planned capital expenditures will depend on our ability to generate cash in the future. We cannot assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available to us in an amount sufficient to enable us to make distributions on our common stock or preferred stock, to pay our indebtedness or to fund our other liquidity needs.
The decision to declare and pay distributions on shares of our common stock in the future, as well as the timing, amount and composition of any such future distributions, will be at the sole discretion of our Board of Directors in light of conditions then existing, including our earnings, financial condition, capital requirements, debt maturities, the availability of debt and equity capital, applicable REIT and legal restrictions, and the general overall economic conditions and other factors. Any change in our distribution policy could have a material adverse effect on the market price of our common stock.
Our ability to pay distributions is limited by the requirements of Maryland law.
Our ability to pay distributions on our common stock and preferred stock is limited by the laws of Maryland. Under Maryland law, a Maryland corporation generally may not make a distribution if, after giving effect to the distribution, the corporation would not be able to pay its debts as they become due in the usual course of business, or the corporation’s total assets would be less than the sum of its total liabilities plus, unless the corporation’s charter provides otherwise, the amount that would be needed, if the corporation were dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights are superior to those receiving the distribution, provided, however, that a Maryland corporation may make a distribution from: (i)(a) its net earnings for the fiscal year in which the distribution is made; (ii)(b) its net earnings for the preceding fiscal year; or (iii)(c) the sum of its net earnings for its preceding eight fiscal quarters even if, after such distribution, the corporation’s total assets would be less than its total liabilities. Accordingly, we generally may not make a distribution on our common stock or preferred stock if, after giving effect to the distribution, we would not be able to pay our debts as they become due in the usual course of business or, unless paid from one of the permitted sources of net earnings as described above, our total assets would be less than the sum of our total liabilities plus, unless the terms of such class or series of stock provide otherwise, the amount that would be needed to satisfy the preferential rights upon dissolution of the holders of shares of any class or series of stock then outstanding, if any, with preferential rights upon dissolution senior to those of our common stock or, if any, currently outstanding preferred stock.
We may not be able to pay distributions upon events of default under our financing documents.
Some of our financing documents contain restrictions on distributions upon the occurrence of events of default thereunder. If such an event of default occurs, such as our failure to pay principal at maturity or interest when due for a specified period of time, we would be prohibited from making payments on our common stock and preferred stock.
Our share price could be volatile and could decline, resulting in a substantial or complete loss on our stockholders’ investment.
The stock markets, including the NYSENew York Stock Exchange (“NYSE”), on which we list our common stock, have experienced significant price and volume fluctuations. As a result, the market price of our common stock and preferred stock could be similarly volatile, and investors in our common stock and preferred stock may experience a decrease in the value of their shares, including decreases unrelated to our operating performance or prospects. The price of our common stock and preferred stock could be subject to wide fluctuations in response to a number of factors, including:
issuances of other equity securities in the future, including new series or classes of preferred stock;
our operating performance and the performance of other similar companies;
our ability to maintain compliance with covenants contained in our debt facilities;
actual or anticipated variations in our operating results, funds from operations, cash flows or liquidity;
changes in expectations of future financial performance or changes in our earnings estimates or those of analysts;
changes in our distribution policy;
publication of research reports about us or the real estate industry generally;
increases in market interest rates that lead purchasers of our common stock and preferred stock to demand a higher dividend yield;
changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar and the Australian dollar;
changes in market valuations of similar companies;
adverse market reaction to the amount of our debt outstanding at any time, the amount of our debt maturing in the near-term and medium-term and our ability to refinance our debt, or our plans to incur additional debt in the future;
additions or departures of key management personnel;
speculation in the press or investment community;
equity issuances by us, or share resales by our stockholders or the perception that such issuances or resales may occur;
actions by institutional stockholders; and
general market and economic conditions.
Many of the factors listed above are beyond our control. Those factors may cause the market price of our common stock or preferred stock to decline significantly, regardless of our financial condition, results of operations and prospects. It is impossible to provide any assurance that the market price of our common stock or preferred stock will not fall in the future, and it may be difficult for holders to resell shares of our common stock or preferred stock at prices they find attractive, or at all. In the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management’s attention and resources.
Our Series A-4 preferred stock has not been rated.
We have not sought to obtain a rating for our Series A-4 preferred stock. No assurance can be given, however, that one or more rating agencies might not independently determine to issue such a rating or that such a rating, if issued, would not adversely affect the market price of the Series A-4 preferred stock. In addition, we may elect in the future to obtain a rating of the Series A-4 preferred stock, which could adversely affect the market price of such preferred stock. Ratings only reflect the views of the rating agency or agencies issuing the ratings and such ratings could be revised downward, placed on a watch list or withdrawn entirely at the discretion of the issuing rating agency if in its judgment circumstances so warrant. Any such downward revision, placing on a watch list or withdrawal of a rating could have an adverse effect on the market price of the Series A-4 preferred stock.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2018,2019, the Properties were located throughout the US and in Ontario, Canada and consisted of 230266 MH communities, 110122 RV communities, and 3134 properties containing both MH and RV sites. As of December 31, 2018,2019, the Properties contained an aggregate of 128,454141,293 developed sites comprised of 84,42893,821 developed manufactured home sites, 24,53526,056 annual RV sites (inclusive of both annual and seasonal usage rights), and 19,49121,416 transient RV sites. There are approximately 11,30010,300 additional MH and RV sites suitable for development. Most of the Properties include amenities oriented toward family and retirement living. Of the 371422 Properties, 182194 each have more than 300 developed sites, with the largest having 2,341 developed MH and RV sites. See “Real Estate and Accumulated Depreciation, Schedule III”, included in our Consolidated Financial Statements, for detail on Properties that are encumbered.
As of December 31, 2018,2019, the Properties had an occupancy rate of 96.196.4 percent excluding transient RV sites. Since January 1, 2018,2019, the Properties have averaged an aggregate annual turnover of homes (where the home is moved out of the community) of approximately 2.42.8 percent and an average annual turnover of residents (where the resident-owned home is sold and remains within the community, typically without interruption of rental income) of approximately 7.27.0 percent. The average renewal rate for residents in our Rental Program was 62.363.2 percent for the year ended December 31, 2018.2019.
We believe that our Properties’ high amenity levels, customer service loyalty, and customer retention program contribute to low turnover and generally high occupancy rates. All of the Properties provide residents with attractive amenities with most offering a clubhouse, a swimming pool, and laundry facilities. Many of the Properties offer additional amenities such as sauna/whirlpool spas, tennis courts, shuffleboard, basketball courts, and/or exercise rooms. Many RV communities offer incremental amenities including golf, pro shops, restaurants, zip lines, waterparks, watersports, and thematic experiences.
The Properties are principally located in the Midwestern, Southern, Northeastern, Southeastern regions of the U.S., and Ontario, Canada. We believe that geographic diversification helps to insulate the portfolio from regional economic influences. We have concentrated our properties within certain areas of the regions in order to achieve economies of scale in management and operation.
The following tables set forth certain information relating to the Properties as of December 31, 2018.2019. The occupancy percentage includes MH sites and annual RV sites and excludes transient RV sites.
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| UNITED STATES | | | | | | | | |
| MIDWEST | | | | | | | | |
| Michigan | | | | | | | | |
| Academy / West Point | MH | Canton | MI | 441 |
| — |
| 97.5 | % | | 97.5 | % | | MH | Canton | MI | 441 |
| — |
| 98.2 | % | | 97.5 | % | |
| Allendale Meadows Mobile Village | MH | Allendale | MI | 352 |
| — |
| 94.9 | % | | 96.9 | % | | MH | Allendale | MI | 352 |
| — |
| 98.9 | % | | 94.9 | % | |
| Alpine Meadows Mobile Village | MH | Grand Rapids | MI | 403 |
| — |
| 98.0 | % | | 97.5 | % | | MH | Grand Rapids | MI | 403 |
| — |
| 98.3 | % | | 98.0 | % | |
| Apple Carr Village | MH | Muskegon | MI | 680 |
| — |
| 79.4 | % | (1) | 84.4 | % | (1) | MH | Muskegon | MI | 716 |
| — |
| 78.5 | % | (1) | 79.4 | % | (1) |
| Arbor Woods | MH | Ypsilanti | MI | 458 |
| — |
| 96.1 | % | | 75.3 | % | | MH | Ypsilanti | MI | 458 |
| — |
| 99.1 | % | | 96.1 | % | |
| Brentwood Mobile Village | MH | Kentwood | MI | 195 |
| — |
| 98.5 | % | | 97.4 | % | | MH | Kentwood | MI | 195 |
| — |
| 97.4 | % | | 98.5 | % | |
| Broadview Estates | | MH | Davison | MI | 474 |
| — |
| 82.3 | % | | 77.6 | % | |
| Brookside Village | MH | Kentwood | MI | 196 |
| — |
| 99.0 | % | | 99.0 | % | | MH | Kentwood | MI | 196 |
| — |
| 100.0 | % | | 99.0 | % | |
| Byron Center Mobile Village | MH | Byron Center | MI | 143 |
| — |
| 98.6 | % | | 100.0 | % | | MH | Kentwood | MI | 143 |
| — |
| 97.9 | % | | 98.6 | % | |
| Camelot Villa | MH | Macomb | MI | 712 |
| — |
| 98.6 | % | | 99.3 | % | | MH | Macomb | MI | 712 |
| — |
| 99.0 | % | | 98.6 | % | |
| Cider Mill Crossings | MH | Fenton | MI | 570 |
| — |
| 67.5 | % | (1) | 74.0 | % | (1) | MH | Fenton | MI | 621 |
| — |
| 74.6 | % | (1) | 67.5 | % | (1) |
| Cider Mill Village | MH | Middleville | MI | 258 |
| — |
| 98.4 | % | | 98.1 | % | | MH | Middleville | MI | 258 |
| — |
| 98.4 | % | | 98.4 | % | |
| Continental North | MH | Davison | MI | 474 |
| — |
| 77.6 | % | | 73.4 | % | | |
| Country Acres Mobile Village | MH | Cadillac | MI | 182 |
| — |
| 99.5 | % | | 98.4 | % | | MH | Cadillac | MI | 182 |
| — |
| 95.1 | % | | 99.5 | % | |
| Country Hills Village | MH | Hudsonville | MI | 239 |
| — |
| 98.3 | % | | 100.0 | % | | MH | Hudsonville | MI | 239 |
| — |
| 99.6 | % | | 98.3 | % | |
| Country Meadows Mobile Village | MH | Flat Rock | MI | 577 |
| — |
| 96.9 | % | | 95.5 | % | | MH | Flat Rock | MI | 577 |
| — |
| 97.7 | % | | 96.9 | % | |
| Country Meadows Village | MH | Caledonia | MI | 395 |
| — |
| 98.5 | % | | 91.4 | % | (1) | MH | Caledonia | MI | 395 |
| — |
| 99.5 | % | | 98.5 | % | |
| Creekwood Meadows | | MH | Burton | MI | 336 |
| — |
| 94.0 | % | | 97.6 | % | |
| Cutler Estates Mobile Village | | MH | Grand Rapids | MI | 259 |
| — |
| 98.8 | % | | 98.1 | % | |
| Dutton Mill Village | | MH | Caledonia | MI | 307 |
| — |
| 99.7 | % | | 99.0 | % | |
| East Village Estates | | MH | Washington Twp. | MI | 708 |
| — |
| 98.6 | % | | 99.4 | % | |
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| Creekwood Meadows | MH | Burton | MI | 336 |
| — |
| 97.6 | % | | 98.5 | % | | |
| Cutler Estates Mobile Village | MH | Grand Rapids | MI | 259 |
| — |
| 98.1 | % | | 98.5 | % | | |
| Dutton Mill Village | MH | Caledonia | MI | 307 |
| — |
| 99.0 | % | | 97.4 | % | | |
| East Village Estates | MH | Washington Twp | MI | 708 |
| — |
| 99.4 | % | | 99.4 | % | | |
| Egelcraft | MH | Muskegon | MI | 458 |
| — |
| 96.9 | % | | 97.6 | % | | MH | Muskegon | MI | 458 |
| — |
| 97.4 | % | | 96.9 | % | |
| Fisherman’s Cove | MH | Flint Twp. | MI | 162 |
| — |
| 95.7 | % | | 91.4 | % | | |
| Fisherman's Cove | | MH | Flint Twp. | MI | 162 |
| — |
| 97.5 | % | | 95.7 | % | |
| Frenchtown Villa / Elizabeth Woods | MH | Newport | MI | 1,140 |
| — |
| 88.9 | % | (1) | 84.7 | % | (1) | MH | Newport | MI | 1,140 |
| — |
| 94.6 | % | | 88.9 | % | (1) |
| Grand Mobile Estates | MH | Grand Rapids | MI | 219 |
| — |
| 96.3 | % | | 96.8 | % | | MH | Grand Rapids | MI | 219 |
| — |
| 96.8 | % | | 96.3 | % | |
| Hamlin | MH | Webberville | MI | 230 |
| — |
| 98.7 | % | | 95.7 | % | (1) | MH | Webberville | MI | 230 |
| — |
| 95.7 | % | | 98.7 | % | |
| Hickory Hills Village | MH | Battle Creek | MI | 283 |
| — |
| 97.5 | % | | 98.6 | % | | MH | Battle Creek | MI | 283 |
| — |
| 97.5 | % | | 97.5 | % | |
Hidden Ridge RV Resort (2) | RV | Hopkins | MI | 177 |
| 158 |
| 100.0 | % | | 100.0 | % | | RV | Hopkins | MI | 188 |
| 147 |
| 100.0 | % | | 100.0 | % | |
| Holiday West Village | MH | Holland | MI | 341 |
| — |
| 99.7 | % | | 99.7 | % | | MH | Holland | MI | 341 |
| — |
| 100.0 | % | | 99.7 | % | |
| Holly Village / Hawaiian Gardens | MH | Holly | MI | 425 |
| — |
| 94.4 | % | | 94.6 | % | | MH | Holly | MI | 425 |
| — |
| 96.2 | % | | 94.4 | % | |
| Hunters Crossing | MH | Capac | MI | 114 |
| — |
| 99.1 | % | | 99.1 | % | | MH | Capac | MI | 114 |
| — |
| 98.2 | % | | 99.1 | % | |
| Hunters Glen | MH | Wayland | MI | 396 |
| — |
| 89.9 | % | (1) | 76.5 | % | (1) | MH | Wayland | MI | 396 |
| — |
| 97.2 | % | | 89.9 | % | (1) |
| Kensington Meadows | MH | Lansing | MI | 290 |
| — |
| 96.9 | % | | 96.6 | % | | MH | Lansing | MI | 290 |
| — |
| 94.8 | % | | 96.9 | % | |
| Kimberly Estates | MH | Newport | MI | 387 |
| — |
| 98.7 | % | | 94.8 | % | | MH | Newport | MI | 387 |
| — |
| 98.4 | % | | 98.7 | % | |
| King’s Court Mobile Village | MH | Traverse City | MI | 802 |
| — |
| 84.4 | % | (1) | 78.8 | % | (1) | |
| King's Court Mobile Village | | MH | Traverse City | MI | 802 |
| — |
| 90.6 | % | | 84.4 | % | (1) |
| Knollwood Estates | MH | Allendale | MI | 161 |
| — |
| 96.9 | % | | 92.6 | % | | MH | Allendale | MI | 161 |
| — |
| 97.5 | % | | 96.9 | % | |
| Lafayette Place | MH | Warren | MI | 254 |
| — |
| 97.2 | % | | 94.9 | % | | MH | Warren | MI | 254 |
| — |
| 96.9 | % | | 97.2 | % | |
| Lakeview | MH | Ypsilanti | MI | 392 |
| — |
| 98.7 | % | | 98.2 | % | | MH | Ypsilanti | MI | 392 |
| — |
| 98.5 | % | | 98.7 | % | |
| Leisure Village | MH | Belmont | MI | 256 |
| — |
| 94.9 | % | (1) | 100.0 | % | | MH | Belmont | MI | 256 |
| — |
| 98.4 | % | | 94.9 | % | |
| Lincoln Estates | MH | Holland | MI | 191 |
| — |
| 99.0 | % | | 99.5 | % | | MH | Holland | MI | 191 |
| — |
| 99.5 | % | | 99.0 | % | |
| Meadow Lake Estates | MH | White Lake | MI | 425 |
| — |
| 99.1 | % | | 97.9 | % | | MH | White Lake | MI | 425 |
| — |
| 98.6 | % | | 99.1 | % | |
| Meadowbrook Estates | MH | Monroe | MI | 453 |
| — |
| 95.4 | % | | 96.3 | % | | MH | Monroe | MI | 453 |
| — |
| 96.5 | % | | 95.4 | % | |
| Meadowlands of Gibraltar | MH | Gibraltar | MI | 320 |
| — |
| 99.7 | % | | 96.9 | % | | MH | Gibraltar | MI | 320 |
| — |
| 100.0 | % | | 99.7 | % | |
| Northville Crossing | MH | Northville | MI | 756 |
| — |
| 99.7 | % | | 99.5 | % | | MH | Northville | MI | 756 |
| — |
| 99.1 | % | | 99.7 | % | |
| Oak Island Village | MH | East Lansing | MI | 250 |
| — |
| 98.4 | % | | 97.6 | % | | MH | East Lansing | MI | 250 |
| — |
| 97.6 | % | | 98.4 | % | |
Petoskey KOA RV Resort (2) | RV | Petoskey | MI | 51 |
| 159 |
| 100.0 | % | | N/A |
| | RV | Petoskey | MI | 48 |
| 162 |
| 100.0 | % | | 100.0 | % | |
Petoskey RV Resort (2) | RV | Petoskey | MI | — |
| 152 |
| N/A |
| | N/A |
| | RV | Petoskey | MI | 3 |
| 149 |
| N/A |
| | N/A |
| |
| Pinebrook Village | MH | Kentwood | MI | 185 |
| — |
| 100.0 | % | | 98.9 | % | | MH | Kentwood | MI | 185 |
| — |
| 97.8 | % | | 100.0 | % | |
| Presidential Estates Mobile Village | MH | Hudsonville | MI | 364 |
| — |
| 98.1 | % | | 98.9 | % | | MH | Hudsonville | MI | 364 |
| — |
| 97.8 | % | | 98.1 | % | |
| Richmond Place | MH | Richmond | MI | 117 |
| — |
| 95.7 | % | | 94.9 | % | | MH | Richmond | MI | 117 |
| — |
| 94.9 | % | | 95.7 | % | |
| River Haven Village | MH | Grand Haven | MI | 721 |
| — |
| 85.4 | % | | 78.8 | % | | MH | Grand Haven | MI | 721 |
| — |
| 90.7 | % | | 85.4 | % | |
| Rudgate Clinton | MH | Clinton Township | MI | 667 |
| — |
| 99.0 | % | | 97.3 | % | | MH | Clinton Township | MI | 667 |
| — |
| 98.4 | % | | 99.0 | % | |
| Rudgate Manor | MH | Sterling Heights | MI | 931 |
| — |
| 97.9 | % | | 97.3 | % | | MH | Sterling Heights | MI | 931 |
| — |
| 97.6 | % | | 97.9 | % | |
| Scio Farms Estates | MH | Ann Arbor | MI | 913 |
| — |
| 99.5 | % | | 98.4 | % | | MH | Ann Arbor | MI | 913 |
| — |
| 98.9 | % | | 99.5 | % | |
| Sheffield Estates | MH | Auburn Hills | MI | 228 |
| — |
| 100.0 | % | | 99.6 | % | | MH | Auburn Hills | MI | 228 |
| — |
| 98.2 | % | | 100.0 | % | |
| Shelby Forest | | MH | Shelby Twp. | MI | 664 |
| — |
| 99.1 | % | | N/A |
| (5) |
| Shelby West | | MH | Shelby Twp. | MI | 644 |
| — |
| 98.9 | % | | N/A |
| (5) |
Silver Creek RV Resort (2) | RV | Mears | MI | 159 |
| 105 |
| 100.0 | % | | N/A |
| | RV | Mears | MI | 157 |
| 107 |
| 100.0 | % | | 100.0 | % | |
| Silver Springs | MH | Clinton Township | MI | 547 |
| — |
| 99.5 | % | | 99.5 | % | | MH | Clinton Township | MI | 547 |
| — |
| 98.7 | % | | 99.5 | % | |
| Southwood Village | MH | Grand Rapids | MI | 394 |
| — |
| 98.0 | % | | 98.7 | % | | MH | Grand Rapids | MI | 394 |
| — |
| 99.0 | % | | 98.0 | % | |
| St. Clair Place | MH | St. Clair | MI | 100 |
| — |
| 97.0 | % | | 96.0 | % | | MH | St. Clair | MI | 100 |
| — |
| 90.0 | % | | 97.0 | % | |
| Sunset Ridge | MH | Portland | MI | 388 |
| — |
| 65.7 | % | (1) | 92.0 | % | (1) | MH | Portland | MI | 388 |
| — |
| 78.1 | % | (1) | 65.7 | % | (1) |
| Sycamore Village | | MH | Mason | MI | 396 |
| — |
| 98.7 | % | | 99.7 | % | |
| Tamarac Village | | MH | Ludington | MI | 301 |
| — |
| 99.7 | % | | 98.7 | % | |
Tamarac Village RV Resort (2) | | RV | Ludington | MI | 109 |
| 5 |
| 100.0 | % | | 100.0 | % | |
| Timberline Estates | | MH | Coopersville | MI | 296 |
| — |
| 96.6 | % | | 98.3 | % | |
| Town & Country Mobile Village | | MH | Traverse City | MI | 192 |
| — |
| 99.0 | % | | 99.0 | % | |
| Warren Dunes Village | | MH | Bridgman | MI | 314 |
| — |
| 89.2 | % | (1) | 87.6 | % | (1) |
| Waverly Shores Village | | MH | Holland | MI | 415 |
| — |
| 100.0 | % | | 96.4 | % | |
| West Village Estates | | MH | Romulus | MI | 628 |
| — |
| 99.0 | % | | 99.4 | % | |
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| Sycamore Village | MH | Mason | MI | 396 |
| — |
| 99.7 | % | | 98.5 | % | | |
| Tamarac Village | MH | Ludington | MI | 301 |
| — |
| 98.7 | % | | 98.7 | % | | |
Tamarac Village RV Resort (2) | RV | Ludington | MI | 112 |
| 2 |
| 100.0 | % | | 100.0 | % | | |
| Timberline Estates | MH | Coopersville | MI | 296 |
| — |
| 98.3 | % | | 98.7 | % | | |
| Town & Country Mobile Village | MH | Traverse City | MI | 192 |
| — |
| 99.0 | % | | 99.5 | % | | |
| Warren Dunes Village | MH | Bridgman | MI | 314 |
| — |
| 87.6 | % | (1) | 72.3 | % | (1) | |
| Waverly Shores Village | MH | Holland | MI | 415 |
| — |
| 96.4 | % | (1) | 78.8 | % | (1) | |
| West Village Estates | MH | Romulus | MI | 628 |
| — |
| 99.4 | % | | 99.4 | % | | |
| White Lake Mobile Home Village | MH | White Lake | MI | 315 |
| — |
| 98.4 | % | | 96.8 | % | | MH | White Lake | MI | 315 |
| — |
| 98.7 | % | | 98.4 | % | |
| Windham Hills Estates | MH | Jackson | MI | 469 |
| — |
| 88.9 | % | (1) | 85.5 | % | (1) | MH | Jackson | MI | 469 |
| — |
| 95.5 | % | | 88.9 | % | (1) |
| Windsor Woods Village | MH | Wayland | MI | 314 |
| — |
| 98.4 | % | | 98.4 | % | | MH | Wayland | MI | 314 |
| — |
| 99.7 | % | | 98.4 | % | |
| Woodhaven Place | MH | Woodhaven | MI | 220 |
| — |
| 95.5 | % | | 96.4 | % | | MH | Woodhaven | MI | 220 |
| — |
| 98.6 | % | | 95.5 | % | |
| Michigan Total | | 26,504 |
| 576 |
| 94.6 | % | | 93.3 | % | | | 27,905 |
| 570 |
| 96.0 | % | | 94.6 | % | |
| | | | | | | | | |
| Indiana | | | | | | | | |
| Brookside Mobile Home Village | MH | Goshen | IN | 570 |
| — |
| 93.0 | % | | 89.1 | % | | MH | Goshen | IN | 570 |
| — |
| 95.6 | % | | 93.0 | % | |
| Carrington Pointe | MH | Ft. Wayne | IN | 468 |
| — |
| 73.5 | % | (1) | 98.4 | % | | MH | Fort Wayne | IN | 468 |
| — |
| 93.3 | % | | 73.5 | % | (1) |
| Clear Water Mobile Village | MH | South Bend | IN | 227 |
| — |
| 97.8 | % | | 96.5 | % | | MH | South Bend | IN | 227 |
| — |
| 95.2 | % | | 97.8 | % | |
| Cobus Green Mobile Home Park | MH | Osceola | IN | 386 |
| — |
| 93.8 | % | | 96.4 | % | | MH | Osceola | IN | 386 |
| — |
| 96.6 | % | | 93.8 | % | |
| Deerfield Run | MH | Anderson | IN | 175 |
| — |
| 86.3 | % | | 91.4 | % | | MH | Anderson | IN | 175 |
| — |
| 93.7 | % | | 86.3 | % | |
| Four Seasons | MH | Elkhart | IN | 218 |
| — |
| 93.6 | % | | 95.4 | % | | MH | Elkhart | IN | 218 |
| — |
| 95.0 | % | | 93.6 | % | |
Lake Rudolph Campground & RV Resort (2) | RV | Santa Claus | IN | — |
| 519 |
| N/A |
| | N/A |
| | RV | Santa Claus | IN | — |
| 534 |
| N/A |
| | N/A |
| |
| Liberty Farm | MH | Valparaiso | IN | 220 |
| — |
| 95.9 | % | | 96.8 | % | | MH | Valparaiso | IN | 220 |
| — |
| 95.9 | % | | 95.9 | % | |
| Pebble Creek | MH | Greenwood | IN | 298 |
| — |
| 80.5 | % | (1) | 95.3 | % | | MH | Greenwood | IN | 296 |
| — |
| 93.2 | % | | 80.5 | % | (1) |
| Pine Hills | MH | Middlebury | IN | 129 |
| — |
| 93.8 | % | | 98.5 | % | | MH | Middlebury | IN | 129 |
| — |
| 98.4 | % | | 93.8 | % | |
| Roxbury Park | MH | Goshen | IN | 398 |
| — |
| 97.2 | % | | 97.7 | % | | MH | Goshen | IN | 398 |
| — |
| 98.2 | % | | 97.2 | % | |
| Indiana Total | | 3,089 |
| 519 |
| 89.7 | % | | 95.0 | % | | | 3,087 |
| 534 |
| 93.9 | % | | 89.7 | % | |
| | | | | | | | | |
| Ohio | | | | | | | | |
| Apple Creek | MH | Amelia | OH | 176 |
| — |
| 98.9 | % | | 97.7 | % | | MH | Amelia | OH | 176 |
| — |
| 98.3 | % | | 98.9 | % | |
| East Fork Crossing | MH | Batavia | OH | 350 |
| — |
| 99.1 | % | | 98.9 | % | (1) | MH | Batavia | OH | 350 |
| — |
| 99.4 | % | | 99.1 | % | |
Indian Creek RV & Camping Resort (2) | RV | Geneva on the Lake | OH | 425 |
| 150 |
| 100.0 | % | | 100.0 | % | | RV | Geneva on the Lake | OH | 425 |
| 150 |
| 100.0 | % | | 100.0 | % | |
| Oakwood Village | MH | Miamisburg | OH | 511 |
| — |
| 99.0 | % | | 98.8 | % | | MH | Miamisburg | OH | 511 |
| — |
| 98.2 | % | | 99.0 | % | |
| Orchard Lake | MH | Milford | OH | 147 |
| — |
| 95.9 | % | | 98.0 | % | | MH | Milford | OH | 147 |
| — |
| 97.3 | % | | 95.9 | % | |
| Westbrook Senior Village | MH | Toledo | OH | 112 |
| — |
| 98.2 | % | | 99.1 | % | | MH | Toledo | OH | 112 |
| — |
| 100.0 | % | | 98.2 | % | |
| Westbrook Village | MH | Toledo | OH | 344 |
| — |
| 95.6 | % | | 94.2 | % | | MH | Toledo | OH | 344 |
| — |
| 98.8 | % | | 95.6 | % | |
| Willowbrook Place | MH | Toledo | OH | 266 |
| — |
| 97.4 | % | | 94.0 | % | | MH | Toledo | OH | 266 |
| — |
| 98.1 | % | | 97.4 | % | |
| Woodside Terrace | MH | Holland | OH | 439 |
| — |
| 91.6 | % | | 93.4 | % | | MH | Holland | OH | 439 |
| — |
| 93.8 | % | | 91.6 | % | |
| Ohio Total | | 2,770 |
| 150 |
| 97.2 | % | | 97.0 | % | | | 2,770 |
| 150 |
| 98.1 | % | | 97.2 | % | |
| | | | | | | | | |
| SOUTH | | | | | | | | |
| Texas | | | | | | | | |
Austin Lone Star RV Resort (2) | RV | Austin | TX | 17 |
| 137 |
| 100.0 | % | | 100.0 | % | | RV | Austin | TX | 50 |
| 107 |
| 100.0 | % | | 100.0 | % | |
Blazing Star (2) | | RV | San Antonio | TX | 126 |
| 136 |
| 100.0 | % | | 100.0 | % | |
| Boulder Ridge | | MH | Pflugerville | TX | 1,220 |
| — |
| 78.9 | % | (1) | 80.2 | % | (1) |
| Branch Creek Estates | | MH | Austin | TX | 400 |
| — |
| 98.0 | % | | 100.0 | % | |
| Chisholm Point Estates | | MH | Pflugerville | TX | 427 |
| — |
| 97.7 | % | | 100.0 | % | |
| Comal Farms | | MH | New Braunfels | TX | 367 |
| — |
| 99.7 | % | | 99.5 | % | |
Hill Country Cottage and RV Resort (2) | | RV | New Braunfels | TX | 27 |
| 342 |
| 100.0 | % |
| 100.0 | % | |
Jellystone Park™ at Guadalupe River (2) | | RV | Kerrville | TX | — |
| 250 |
| N/A |
| | N/A |
| |
Jellystone Park™ at Hill Country (2) | | RV | Canyon Lake | TX | — |
| 175 |
| N/A |
| | N/A |
| |
La Hacienda RV Resort (2) | | RV | Austin | TX | — |
| 244 |
| N/A |
| | N/A |
| |
| Oak Crest | | MH | Austin | TX | 654 |
| — |
| 76.3 | % | (1) | 99.1 | % | |
| Pecan Branch | | MH | Georgetown | TX | 229 |
| — |
| 78.6 | % | (1) | 49.3 | % | (1) |
| Pine Trace | | MH | Houston | TX | 680 |
| — |
| 98.4 | % | | 98.8 | % | |
| River Ranch | | MH | Austin | TX | 848 |
| — |
| 98.5 | % | | 99.3 | % | |
| River Ridge Estates | | MH | Austin | TX | 515 |
| — |
| 99.4 | % | | 99.2 | % | |
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
Blazing Star (2) | RV | San Antonio | TX | 125 |
| 137 |
| 100.0 | % | | 100.0 | % | | |
| Boulder Ridge | MH | Pflugerville | TX | 896 |
| — |
| 80.2 | % | (1) | 95.4 | % | (1) | |
| Branch Creek Estates | MH | Austin | TX | 392 |
| — |
| 100.0 | % | | 100.0 | % | | |
| Chisholm Point Estates | MH | Pflugerville | TX | 417 |
| — |
| 100.0 | % | | 98.8 | % | | |
| Comal Farms | MH | New Braunfels | TX | 367 |
| — |
| 99.5 | % | | 97.0 | % | (1) | |
Hill Country Cottage and RV Resort (2) | RV | New Braunfels | TX | 17 |
| 347 |
| 100.0 | % |
| 100.0 | % | | |
Jellystone Park™ at Guadalupe River (2) | RV | Kerrville | TX | — |
| 261 |
| N/A |
| | N/A |
| | |
Jellystone Park™ at Hill Country (2) | RV | Canyon Lake | TX | — |
| 173 |
| N/A |
| | N/A |
| | |
La Hacienda RV Resort (2) | RV | Austin | TX | — |
| 244 |
| N/A |
| | N/A |
| | |
| Oak Crest | MH | Austin | TX | 433 |
| — |
| 99.1 | % | | 96.8 | % | | |
| Pecan Branch | MH | Georgetown | TX | 229 |
| — |
| 49.3 | % | (1) | 37.6 | % | (1) | |
| Pine Trace | MH | Houston | TX | 680 |
| — |
| 98.8 | % | | 98.4 | % | (1) | |
| River Ranch | MH | Austin | TX | 848 |
| — |
| 99.3 | % | | 97.3 | % | (1) | |
| River Ridge Estates | MH | Austin | TX | 515 |
| — |
| 99.2 | % | | 98.5 | % | | |
| Saddlebrook | MH | San Marcos | TX | 562 |
| — |
| 87.7 | % | (1) | 83.8 | % | (1) | MH | San Marcos | TX | 562 |
| — |
| 97.9 | % | | 87.7 | % | (1) |
| Sandy Lake | MH | Carrollton | TX | 54 |
| — |
| 100.0 | % | | 100.0 | % | | MH | Carrollton | TX | 54 |
| — |
| 98.1 | % | | 100.0 | % | |
Sandy Lake RV Resort (2) | RV | Carrollton | TX | 39 |
| 180 |
| 100.0 | % | | 100.0 | % | | RV | Carrollton | TX | 108 |
| 112 |
| 100.0 | % | | 100.0 | % | |
| Stonebridge | MH | San Antonio | TX | 335 |
| — |
| 98.8 | % | | 97.9 | % | | MH | San Antonio | TX | 335 |
| — |
| 96.7 | % | | 98.8 | % | |
| Summit Ridge | MH | Converse | TX | 446 |
| — |
| 97.3 | % | | 97.1 | % | | MH | Converse | TX | 446 |
| — |
| 96.2 | % | | 97.3 | % | |
| Sunset Ridge | MH | Kyle | TX | 171 |
| — |
| 97.7 | % | | 98.8 | % | | MH | Kyle | TX | 171 |
| — |
| 98.2 | % | | 97.7 | % | |
| Traveler’s World | MH | San Antonio | TX | 8 |
| — |
| 100.0 | % | | 100.0 | % | | |
Traveler’s World RV Resort (2) | RV | San Antonio | TX | 26 |
| 129 |
| 100.0 | % | | 100.0 | % | | |
| Travelers World | | MH | San Antonio | TX | 8 |
| — |
| 100.0 | % | | 100.0 | % | |
Travelers World RV Resort (2) | | RV | San Antonio | TX | 24 |
| 131 |
| 100.0 | % | | 100.0 | % | |
Treetops RV Resort (2) | RV | Arlington | TX | 29 |
| 144 |
| 100.0 | % | | 100.0 | % | | RV | Arlington | TX | 48 |
| 126 |
| 100.0 | % | | 100.0 | % | |
| Woodlake Trails | MH | San Antonio | TX | 316 |
| — |
| 72.2 | % | (1) | 70.9 | % | (1) | MH | San Antonio | TX | 316 |
| — |
| 82.0 | % | (1) | 72.2 | % | (1) |
| Texas Total | | 6,922 |
| 1,752 |
| 92.9 | % | | 93.2 | % | | | 7,615 |
| 1,623 |
| 92.0 | % | | 92.9 | % | |
| | | | | | | | | |
| SOUTHEAST | | | | | | | | |
| Florida | | | | | | | | |
Arbor Terrace RV Park (2) | RV | Bradenton | FL | 205 |
| 156 |
| 100.0 | % | | 100.0 | % | | RV | Brandenton | FL | 227 |
| 134 |
| 100.0 | % | | 100.0 | % | |
| Ariana Village | MH | Lakeland | FL | 207 |
| — |
| 97.1 | % | | 96.1 | % | | MH | Lakeland | FL | 207 |
| — |
| 98.6 | % | | 97.1 | % | |
| Bahia Vista Estates | MH | Sarasota | FL | 251 |
| — |
| 99.2 | % | | 98.8 | % | | MH | Sarasota | FL | 251 |
| — |
| 99.6 | % | | 99.2 | % | |
Baker Acres RV Resort (2) | RV | Zephyrhills | FL | 278 |
| 74 |
| 100.0 | % | | 100.0 | % | | |
Big Tree RV Resort (2) | RV | Arcadia | FL | 367 |
| 44 |
| 100.0 | % | | 100.0 | % | | |
| Baker Acres RV Resort | | RV | Zephyrhills | FL | 279 |
| 73 |
| 100.0 | % | | 100.0 | % | |
| Big Tree RV Resort | | RV | Arcadia | FL | 367 |
| 44 |
| 100.0 | % | | 100.0 | % | |
| Blue Heron Pines | MH | Punta Gorda | FL | 408 |
| — |
| 96.3 | % | (1) | 96.1 | % | (1) | MH | Punta Gorda | FL | 408 |
| — |
| 97.1 | % | | 96.3 | % | |
| Blue Jay | MH | Dade City | FL | 206 |
| — |
| 98.5 | % | | 99.5 | % | | MH | Dade City | FL | 206 |
| — |
| 99.5 | % | | 98.5 | % | |
Blue Jay RV Resort (2) | RV | Dade City | FL | 34 |
| 21 |
| 100.0 | % | | 100.0 | % | | RV | Dade City | FL | 32 |
| 23 |
| 100.0 | % | | 100.0 | % | |
Blueberry Hill (2) | RV | Bushnell | FL | 275 |
| 130 |
| 100.0 | % | | 100.0 | % | | RV | Bushnell | FL | 279 |
| 126 |
| 100.0 | % | | 100.0 | % | |
| Brentwood Estates | MH | Hudson | FL | 191 |
| — |
| 97.9 | % | | 96.9 | % | | MH | Hudson | FL | 191 |
| — |
| 99.0 | % | | 97.9 | % | |
| Buttonwood Bay | MH | Sebring | FL | 407 |
| — |
| 99.8 | % | | 99.8 | % | | MH | Sebring | FL | 407 |
| — |
| 99.5 | % | | 99.8 | % | |
Buttonwood Bay RV Resort (2) | RV | Sebring | FL | 365 |
| 167 |
| 100.0 | % | | 100.0 | % | | |
| Buttonwood Bay RV Resort | | RV | Sebring | FL | 365 |
| 167 |
| 100.0 | % | | 100.0 | % | |
| Candlelight Manor | MH | South Daytona | FL | 128 |
| — |
| 94.5 | % | | 90.6 | % | | MH | South Daytona | FL | 128 |
| — |
| 96.1 | % | | 94.5 | % | |
| Carriage Cove | MH | Sanford | FL | 467 |
| — |
| 99.1 | % | | 98.5 | % | (1) | MH | Sanford | FL | 467 |
| — |
| 99.6 | % | | 99.1 | % | |
| Central Park | MH | Haines City | FL | 108 |
| — |
| 92.6 | % | | 90.9 | % | | MH | Haines City | FL | 113 |
| — |
| 90.3 | % | | 92.6 | % | |
Central Park Resort RV Resort (2) | | RV | Haines City | FL | 187 |
| 178 |
| 100.0 | % | | 100.0 | % | |
Citrus Hill RV Resort (2) | | RV | Dade City | FL | 136 |
| 46 |
| 100.0 | % | | 100.0 | % | |
Club Naples (2) | | RV | Naples | FL | 234 |
| 70 |
| 100.0 | % | | 100.0 | % | |
| Club Wildwood | | MH | Hudson | FL | 478 |
| — |
| 99.8 | % | | 98.5 | % | |
| Colony in the Wood | | MH | Port Orange | FL | 383 |
| — |
| 98.4 | % | | 97.7 | % | |
Compass RV Resort (2) | | RV | St. Augustine | FL | — |
| 175 |
| N/A |
| | N/A |
| |
| Country Squire | | MH | Paisley | FL | 97 |
| — |
| 97.9 | % | | 90.7 | % | |
Country Squire RV Resort (2) | | RV | Paisley | FL | 25 |
| — |
| 100.0 | % | | 100.0 | % | |
| Cypress Greens | | MH | Lake Alfred | FL | 259 |
| — |
| 98.1 | % | | 96.5 | % | |
Daytona Beach RV Resort (2) | | RV | Port Orange | FL | 150 |
| 82 |
| 100.0 | % | | 100.0 | % | |
| Deerwood | | MH | Orlando | FL | 569 |
| — |
| 99.5 | % | | 98.9 | % | |
Dunedin RV Resort (2) | | RV | Dunedin | FL | 195 |
| 44 |
| 100.0 | % | | 100.0 | % | |
Ellenton Gardens RV Resort (2) | | RV | Ellenton | FL | 146 |
| 48 |
| 100.0 | % | | 100.0 | % | |
| Emerald Coast | | MH | Panama City Beach | FL | 42 |
| — |
| 92.9 | % | | 88.1 | % | |
Emerald Coast RV Resort (2) | | RV | Panama City Beach | FL | 4 |
| 155 |
| 100.0 | % | | 100.0 | % | |
| Fairfield Village | | MH | Ocala | FL | 293 |
| — |
| 98.6 | % | | 98.3 | % | |
| Forest View | | MH | Homosassa | FL | 300 |
| — |
| 98.7 | % | | 97.0 | % | |
| Glen Haven | | MH | Zephyrhills | FL | 52 |
| — |
| 98.1 | % | | 100.0 | % | |
Glen Haven RV Resort (2) | | RV | Zephyrhills | FL | 161 |
| 57 |
| 100.0 | % | | 100.0 | % | |
| Goldcoaster | | MH | Homestead | FL | 522 |
| — |
| 99.8 | % | | 94.9 | % | |
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
Central Park RV Resort (2) | RV | Haines City | FL | 189 |
| 180 |
| 100.0 | % | | 100.0 | % | | |
Citrus Hill RV Resort (2) | RV | Dade City | FL | 143 |
| 39 |
| 100.0 | % | | 100.0 | % | | |
Club Naples (2) | RV | Naples | FL | 220 |
| 84 |
| 100.0 | % | | 100.0 | % | | |
| Club Wildwood | MH | Hudson | FL | 478 |
| — |
| 98.5 | % | | 98.7 | % | | |
| Colony in the Wood | MH | Port Orange | FL | 383 |
| — |
| 97.7 | % | | 95.0 | % | | |
Compass RV Resort (2) | RV | St. Augustine | FL | — |
| 175 |
| N/A |
| | N/A |
| | |
| Country Squire | MH | Paisley | FL | 97 |
| — |
| 90.7 | % | | 90.7 | % | | |
Country Squire RV Resort (2) | RV | Paisley | FL | 20 |
| 5 |
| 100.0 | % | | 100.0 | % | | |
| Cypress Greens | MH | Lake Alfred | FL | 259 |
| — |
| 96.5 | % | | 95.4 | % | | |
Daytona Beach RV Resort (2) | RV | Port Orange | FL | 134 |
| 98 |
| 100.0 | % | | 100.0 | % | | |
| Deerwood | MH | Orlando | FL | 569 |
| — |
| 98.9 | % | | 98.1 | % | | |
Dunedin RV Resort (2) | RV | Dunedin | FL | 190 |
| 49 |
| 100.0 | % | | 100.0 | % | | |
Ellenton Gardens RV Resort (2) | RV | Ellenton | FL | 147 |
| 47 |
| 100.0 | % | | 100.0 | % | | |
| Emerald Coast | MH | Panama City Beach | FL | 42 |
| — |
| 88.1 | % | | 100.0 | % | | |
Emerald Coast RV Resort (2) | RV | Panama City Beach | FL | 5 |
| 154 |
| 100.0 | % | | 100.0 | % | | |
| Fairfield Village | MH | Ocala | FL | 293 |
| — |
| 98.3 | % | | 97.6 | % | | |
| Forest View | MH | Homosassa | FL | 300 |
| — |
| 97.0 | % | | 96.7 | % | | |
| Glen Haven | MH | Zephyrhills | FL | 52 |
| — |
| 100.0 | % | | 100.0 | % | | |
Glen Haven RV Resort (2) | RV | Zephyrhills | FL | 158 |
| 60 |
| 100.0 | % | | 100.0 | % | | |
| Gold Coaster | MH | Homestead | FL | 532 |
| — |
| 94.9 | % | | 98.2 | % | | |
Gold Coaster RV Resort (2) | RV | Homestead | FL | 8 |
| 5 |
| 100.0 | % | | 100.0 | % | | |
Goldcoaster RV Resort (2) | | RV | Homestead | FL | 11 |
| 12 |
| 100.0 | % | | 100.0 | % | |
| Grand Bay | MH | Dunedin | FL | 135 |
| — |
| 98.5 | % | | 96.3 | % | | MH | Dunedin | FL | 135 |
| — |
| 99.3 | % | | 98.5 | % | |
Grand Lakes RV Resort (2) | RV | Citra | FL | 305 |
| 99 |
| 100.0 | % | | 100.0 | % | | RV | Citra | FL | 319 |
| 90 |
| 100.0 | % | | 100.0 | % | |
Grove Ridge RV Resort (2) | RV | Dade City | FL | 159 |
| 87 |
| 100.0 | % | | 100.0 | % | | RV | Dade City | FL | 161 |
| 85 |
| 100.0 | % | | 100.0 | % | |
Groves RV Resort (2) | RV | Ft. Myers | FL | 223 |
| 46 |
| 100.0 | % | | 100.0 | % | | RV | Fort Myers | FL | 236 |
| 33 |
| 100.0 | % | | 100.0 | % | |
| Gulfstream Harbor | MH | Orlando | FL | 974 |
| — |
| 97.5 | % | | 95.3 | % | | MH | Orlando | FL | 974 |
| — |
| 99.2 | % | | 97.5 | % | |
| Hacienda Del Rio | | MH | Edgewater | FL | 730 |
| — |
| 98.9 | % | | N/A |
| (5) |
Hidden River RV Resort (2) | RV | Riverview | FL | 195 |
| 118 |
| 100.0 | % | | 100.0 | % | | RV | Riverview | FL | 185 |
| 128 |
| 98.6 | % | | 100.0 | % | |
| Holly Forest Estates | MH | Holly Hill | FL | 402 |
| — |
| 100.0 | % | | 99.8 | % | | MH | Holly Hill | FL | 402 |
| — |
| 100.0 | % | | 100.0 | % | |
Homosassa River RV Resort (2) | RV | Homosassa Springs | FL | 95 |
| 128 |
| 100.0 | % | | 100.0 | % | | RV | Homosassa Springs | FL | 104 |
| 120 |
| 100.0 | % | | 100.0 | % | |
Horseshoe Cove RV Resort (2) | RV | Bradenton | FL | 344 |
| 132 |
| 100.0 | % | | 100.0 | % | | RV | Bradenton | FL | 340 |
| 136 |
| 100.0 | % | | 100.0 | % | |
| Indian Creek Park | MH | Ft. Myers Beach | FL | 353 |
| — |
| 100.0 | % | | 99.7 | % | | MH | Ft. Myers Beach | FL | 353 |
| — |
| 99.7 | % | | 100.0 | % | |
Indian Creek RV Park (2) | RV | Ft. Myers Beach | FL | 973 |
| 104 |
| 100.0 | % | | 100.0 | % | | RV | Ft. Myers Beach | FL | 975 |
| 102 |
| 100.0 | % | | 100.0 | % | |
| Island Lakes | MH | Merritt Island | FL | 301 |
| — |
| 99.7 | % | | 100.0 | % | | MH | Merrit Island | FL | 301 |
| — |
| 100.0 | % | | 99.7 | % | |
| King’s Lake | MH | DeBary | FL | 245 |
| — |
| 100.0 | % | | 100.0 | % | | MH | DeBary | FL | 245 |
| — |
| 100.0 | % | | 100.0 | % | |
| Kings Manor | | MH | Lakeland | FL | 239 |
| — |
| 95.8 | % | | 92.5 | % | |
| King’s Pointe | MH | Lake Alfred | FL | 226 |
| — |
| 99.6 | % | | 100.0 | % | | MH | Lake Alfred | FL | 226 |
| — |
| 98.7 | % | | 99.6 | % | |
| Kings Manor | MH | Lakeland | FL | 239 |
| — |
| 92.5 | % | | 82.9 | % | | |
| Kissimmee Gardens | MH | Kissimmee | FL | 239 |
| — |
| 99.6 | % | | 99.2 | % | | MH | Kissimmee | FL | 239 |
| — |
| 100.0 | % | | 99.6 | % | |
| Kissimmee South | MH | Davenport | FL | 142 |
| — |
| 90.1 | % | | 90.9 | % | | MH | Davenport | FL | 142 |
| — |
| 91.5 | % | | 90.1 | % | |
Kissimmee South RV Resort (2) | RV | Davenport | FL | 102 |
| 98 |
| 100.0 | % | | 100.0 | % | | RV | Davenport | FL | 112 |
| 89 |
| 100.0 | % | | 100.0 | % | |
| La Costa Village | MH | Port Orange | FL | 658 |
| — |
| 99.8 | % | | 99.7 | % | | MH | Port Orange | FL | 658 |
| — |
| 100.0 | % | | 99.8 | % | |
Lake Josephine RV Resort (2) | RV | Sebring | FL | 112 |
| 66 |
| 100.0 | % | | 100.0 | % | | RV | Sebring | FL | 111 |
| 67 |
| 100.0 | % | | 100.0 | % | |
| Lake Juliana Landings | MH | Auburndale | FL | 274 |
| — |
| 98.2 | % | | 97.5 | % | | MH | Auburndale | FL | 274 |
| — |
| 98.2 | % | | 98.2 | % | |
| Lake Pointe Village | MH | Mulberry | FL | 362 |
| — |
| 99.2 | % | | 99.2 | % | | MH | Mulberry | FL | 362 |
| — |
| 99.4 | % | | 99.2 | % | |
Lake San Marino RV Park (2) | | RV | Naples | FL | 264 |
| 143 |
| 100.0 | % | | 100.0 | % | |
Lakeland RV Resort (2) | | RV | Lakeland | FL | 196 |
| 35 |
| 100.0 | % | | 100.0 | % | |
| Lakeshore Landings | | MH | Orlando | FL | 306 |
| — |
| 99.3 | % | | 99.3 | % | |
| Lakeshore Villas | | MH | Tampa | FL | 280 |
| — |
| 99.6 | % | | 98.6 | % | |
| Lamplighter | | MH | Port Orange | FL | 260 |
| — |
| 99.2 | % | | 96.5 | % | |
Majestic Oaks RV Resort (2) | | RV | Zephyrhills | FL | 207 |
| 47 |
| 100.0 | % | | 100.0 | % | |
Marco Naples RV Resort (2) | | RV | Naples | FL | 221 |
| 80 |
| 100.0 | % | | 100.0 | % | |
| Meadowbrook Village | | MH | Tampa | FL | 257 |
| — |
| 100.0 | % | | 100.0 | % | |
| Mill Creek | | MH | Kissimmee | FL | 34 |
| — |
| 91.2 | % | | 96.9 | % | |
Mill Creek RV Resort (2) | | RV | Kissimmee | FL | 133 |
| 23 |
| 100.0 | % | | 100.0 | % | |
Naples RV Resort (2) | | RV | Naples | FL | 108 |
| 59 |
| 100.0 | % | | 100.0 | % | |
| New Ranch | | MH | Clearwater | FL | 94 |
| — |
| 97.9 | % | | 97.9 | % | |
North Lake Estates (2) | | RV | Moor Haven | FL | 209 |
| 63 |
| 100.0 | % | | 100.0 | % | |
| Oakview Estates | | MH | Arcatia | FL | 119 |
| — |
| 100.0 | % | | 99.2 | % | |
| Ocean Breeze | | MH | Marathon | FL | 47 |
| — |
| 8.5 | % | (1) | — | % | (4) |
| Ocean Breeze RV Resort | | RV | Marathon | FL | — |
| — |
| — | % | | — | % | (4) |
| Ocean Breeze - Jensen Beach | | MH | Jensen Beach | FL | 244 |
| — |
| 76.2 | % | (1) | 64.0 | % | (1) |
Ocean Breeze - Jensen Beach RV Resort (2) | | RV | Jensen Beach | FL | 77 |
| 168 |
| 100.0 | % | | 100.0 | % | |
| Orange City | | MH | Orange City | FL | 4 |
| — |
| 100.0 | % | | 100.0 | % | |
Orange City RV Resort (2) | | RV | Orange City | FL | 345 |
| 176 |
| 100.0 | % | | 100.0 | % | |
| Orange Tree Village | | MH | Orange City | FL | 246 |
| — |
| 100.0 | % | | 99.6 | % | |
| Paddock Park South | | MH | Ocala | FL | 188 |
| — |
| 79.3 | % | | 78.7 | % | |
| Palm Key Village | | MH | Davenport | FL | 204 |
| — |
| 100.0 | % | | 99.5 | % | |
| Palm Village | | MH | Bradenton | FL | 146 |
| — |
| 100.0 | % | | 97.9 | % | |
| Park Place | | MH | Sebastian | FL | 475 |
| — |
| 94.9 | % | | 94.7 | % | |
|
| | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 |
Lake San Marino RV Park (2) | RV | Naples | FL | 253 |
| 154 |
| 100.0 | % | | 100.0 | % | |
Lakeland RV Resort (2) | RV | Lakeland | FL | 190 |
| 41 |
| 100.0 | % | | 100.0 | % | |
| Lakeshore Landings | MH | Orlando | FL | 306 |
| — |
| 99.3 | % | | 100.0 | % | |
| Lakeshore Villas | MH | Tampa | FL | 280 |
| — |
| 98.6 | % | | 97.5 | % | |
| Lamplighter | MH | Port Orange | FL | 260 |
| — |
| 96.5 | % | | 97.3 | % | |
Majestic Oaks RV Resort (2) | RV | Zephyrhills | FL | 208 |
| 45 |
| 100.0 | % | | 100.0 | % | |
Marco Naples RV Resort (2) | RV | Naples | FL | 210 |
| 82 |
| 100.0 | % | | 100.0 | % | |
| Meadowbrook Village | MH | Tampa | FL | 257 |
| — |
| 100.0 | % | | 99.2 | % | |
| Mill Creek | MH | Kissimmee | FL | 32 |
| — |
| 96.9 | % | | 100.0 | % | |
Mill Creek RV Resort (2) | RV | Kissimmee | FL | 102 |
| 54 |
| 100.0 | % | | 100.0 | % | |
Naples RV Resort (2) | RV | Naples | FL | 106 |
| 61 |
| 100.0 | % | | 100.0 | % | |
| New Ranch | MH | Clearwater | FL | 94 |
| — |
| 97.9 | % | | 97.9 | % | |
North Lake Estates (2) | RV | Moore Haven | FL | 204 |
| 68 |
| 100.0 | % | | 100.0 | % | |
| Oakview Estates | MH | Arcadia | FL | 119 |
| — |
| 99.2 | % | | 99.2 | % | |
| Ocean Breeze | MH | Marathon | FL | — |
| — |
| — | % | | — | % | (4) |
| Ocean Breeze RV Resort | RV | Marathon | FL | — |
| — |
| — | % | | — | % | (4) |
| Ocean Breeze Jensen Beach | MH | Jensen Beach | FL | 236 |
| — |
| 64.0 | % | (1) | 63.1 | % | (1) |
Ocean Breeze Jensen Beach RV Resort (2) | RV | Jensen Beach | FL | 42 |
| 211 |
| 100.0 | % | | 100.0 | % | |
| Orange City | MH | Orange City | FL | 4 |
| — |
| 100.0 | % | | 100.0 | % | |
Orange City RV Resort (2) | RV | Orange City | FL | 315 |
| 206 |
| 100.0 | % | | 100.0 | % | |
| Orange Tree Village | MH | Orange City | FL | 246 |
| — |
| 99.6 | % | | 100.0 | % | |
| Paddock Park South | MH | Ocala | FL | 188 |
| | 78.7 | % | | 76.1 | % | |
| Palm Key Village | MH | Davenport | FL | 204 |
| — |
| 99.5 | % | | 100.0 | % | |
| Palm Village | MH | Bradenton | FL | 146 |
| — |
| 97.9 | % | | 98.0 | % | |
| Park Place | MH | Sebastian | FL | 475 |
| — |
| 94.7 | % | | 93.3 | % | |
| Park Royale | MH | Pinellas Park | FL | 309 |
| — |
| 99.7 | % | | 99.7 | % | |
Pecan Park RV Resort (2) | RV | Jacksonville | FL | — |
| 183 |
| N/A |
| | N/A |
| |
| Pelican Bay | MH | Micco | FL | 216 |
| — |
| 99.5 | % | | 92.6 | % | |
Pelican RV Resort & Marina (2) | RV | Marathon | FL | 75 |
| 11 |
| 100.0 | % | | 100.0 | % | |
| Plantation Landings | MH | Haines City | FL | 394 |
| — |
| 99.2 | % | | 99.2 | % | |
Pleasant Lake RV Resort (2) | RV | Bradenton | FL | 280 |
| 61 |
| 100.0 | % | | 100.0 | % | |
| Rainbow | MH | Frostproof | FL | 37 |
| — |
| 100.0 | % | | 100.0 | % | |
Rainbow RV Resort (2) | RV | Frostproof | FL | 376 |
| 86 |
| 100.0 | % | | 100.0 | % | |
Rainbow Village of Largo (2) | RV | Largo | FL | 257 |
| 52 |
| 100.0 | % | | 100.0 | % | |
Rainbow Village of Zephyrhills (2) | RV | Zephyrhills | FL | 336 |
| 46 |
| 100.0 | % | | 100.0 | % | |
| Red Oaks | MH | Bushnell | FL | 103 |
| — |
| 92.2 | % | | 92.2 | % | |
Red Oaks RV Resort (2) | RV | Bushnell | FL | 485 |
| 432 |
| 100.0 | % | | 100.0 | % | |
| Regency Heights | MH | Clearwater | FL | 391 |
| — |
| 97.4 | % | | 95.4 | % | |
Riptide RV Resort & Marina (2) | RV | Key Largo | FL | 23 |
| 17 |
| 100.0 | % | | 100.0 | % | |
| Riverside Club | MH | Ruskin | FL | 728 |
| — |
| 82.6 | % | | 78.7 | % | |
Rock Crusher Canyon RV Resort (2) | RV | Crystal River | FL | 153 |
| 242 |
| 100.0 | % | | 100.0 | % | |
| Royal Country | MH | Miami | FL | 864 |
| — |
| 99.8 | % | | 99.9 | % | |
| Royal Palm Village | MH | Haines City | FL | 395 |
| — |
| 86.1 | % | | 82.3 | % | |
|
| | | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| Park Royale | MH | Pinellas Park | FL | 309 |
| — |
| 100.0 | % | | 99.7 | % | |
Pecan Park RV Resort (2) | RV | Jacksonville | FL | 15 |
| 226 |
| N/A |
| | N/A |
| |
| Pelican Bay | MH | Micco | FL | 216 |
| — |
| 98.6 | % | | 99.5 | % | |
Pelican RV Resort & Marina (2) | RV | Marathon | FL | 71 |
| 15 |
| 100.0 | % | | 100.0 | % | |
| Plantation Landings | MH | Haines City | FL | 394 |
| — |
| 99.2 | % | | 99.2 | % | |
Pleasant Lake RV Resort (2) | RV | Jacksonville | FL | 281 |
| 60 |
| 100.0 | % | | 100.0 | % | |
| Rainbow | MH | Frostproof | FL | 37 |
| — |
| 100.0 | % | | 100.0 | % | |
Rainbow RV Resort (2) | RV | Frostproof | FL | 396 |
| 66 |
| 100.0 | % | | 100.0 | % | |
Rainbow Village of Largo (2) | RV | Largo | FL | 267 |
| 42 |
| 100.0 | % | | 100.0 | % | |
Rainbow Village of Zephyrhills (2) | RV | Zephyrhills | FL | 334 |
| 48 |
| 100.0 | % | | 100.0 | % | |
| Red Oaks | MH | Bushnell | FL | 103 |
| — |
| 92.2 | % | | 92.2 | % | |
Red Oaks RV Resort (2) | RV | Bushnell | FL | 502 |
| 415 |
| 100.0 | % | | 100.0 | % | |
| Regency Heights | MH | Clearwater | FL | 391 |
| — |
| 98.2 | % | | 97.4 | % | |
Riptide RV Resort & Marina (2) | RV | Key Largo | FL | 23 |
| 17 |
| 100.0 | % | | 100.0 | % | |
| Riverside Club | MH | Ruskin | FL | 728 |
| — |
| 84.2 | % | | 82.6 | % | |
Rock Crusher Canyon RV Resort (2) | RV | Crystal River | FL | 169 |
| 226 |
| 100.0 | % | | 100.0 | % | |
| Royal Country | MH | Miami | FL | 864 |
| — |
| 99.9 | % | | 99.8 | % | |
| Royal Palm Village | MH | Haines City | FL | 395 |
| — |
| 84.3 | % | | 86.1 | % | |
| Saddle Oak Club | MH | Ocala | FL | 376 |
| — |
| 99.7 | % | | 99.5 | % | |
| San Pedro Marina | MH | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| San Pedro RV Resort & Marina | RV | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Saralake Estates | MH | Sarasota | FL | 202 |
| — |
| 100.0 | % | | 100.0 | % | |
| Savanna Club | MH | Port St. Lucie | FL | 1,069 |
| — |
| 98.4 | % | | 98.0 | % | |
| Seabreeze | MH | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Seabreeze RV Resort | RV | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Serendipity | MH | North Fort Myers | FL | 338 |
| — |
| 97.9 | % | | 97.0 | % | |
Settler's Rest RV Resort (2) | RV | Zephyrhills | FL | 303 |
| 75 |
| 100.0 | % | | 100.0 | % | |
| Shadow Wood Village | MH | Hudson | FL | 215 |
| — |
| 73.0 | % | (1) | 99.4 | % | |
| Shady Road Villas | MH | Ocala | FL | 130 |
| — |
| 70.0 | % | | 61.5 | % | |
| Shell Creek Marina | MH | Punta Gorda | FL | 54 |
| — |
| 98.1 | % | | 100.0 | % | |
Shell Creek RV Resort & Marina (2) | RV | Punta Gorda | FL | 154 |
| 31 |
| 100.0 | % | | 100.0 | % | |
Siesta Bay RV Park (2) | RV | Fort Myers | FL | 738 |
| 59 |
| 100.0 | % | | 100.0 | % | |
| Southern Charm | MH | Zephyrhills | FL | 1 |
| — |
| 100.0 | % | | 100.0 | % | |
| Southern Charm RV Resort | RV | Zephyrhills | FL | 403 |
| 93 |
| 100.0 | % | | 100.0 | % | |
| Southern Pines | MH | Bradenton | FL | 107 |
| — |
| 97.2 | % | | 96.3 | % | |
| Southport Springs Golf & Country Club | MH | Zephyrhills | FL | 547 |
| — |
| 98.9 | % | | 98.9 | % | |
| Spanish Main | MH | Thontosassa | FL | 56 |
| — |
| 87.5 | % | | 91.1 | % | |
Spanish Main RV Resort (2) | RV | Thontosassa | FL | 235 |
| 44 |
| 100.0 | % | | 100.0 | % | |
| Stonebrook | MH | Homosassa | FL | 215 |
| — |
| 92.1 | % | | 92.1 | % | |
Sun N Fun RV Resort (2) | RV | Sarasota | FL | 1,018 |
| 501 |
| 100.0 | % | | 100.0 | % | |
| Suncoast Gateway | MH | Port Richey | FL | 173 |
| — |
| 98.8 | % | | 98.8 | % | |
| Sundance | MH | Zephyrhills | FL | 332 |
| — |
| 100.0 | % | | 99.7 | % | |
| Sunlake Estates | MH | Grand Island | FL | 408 |
| — |
| 96.1 | % | | 94.7 | % | |
| Sunset Harbor at Cow Key Marina | MH | Key West | FL | 77 |
| — |
| 98.7 | % | | 98.7 | % | |
Sweetwater RV Resort (2) | RV | Zephyrhills | FL | 212 |
| 79 |
| 100.0 | % | | 100.0 | % | |
| Tallowwood Isle | MH | Coconut Creek | FL | 273 |
| — |
| 95.6 | % | | 95.2 | % | |
| Tampa East | MH | Dover | FL | 31 |
| — |
| 100.0 | % | | 96.8 | % | |
Tampa East RV Resort (2) | RV | Dover | FL | 434 |
| 235 |
| 100.0 | % | | 100.0 | % | |
| The Hamptons Golf & Country Club | MH | Auburndale | FL | 829 |
| — |
| 98.6 | % | | 98.4 | % | |
|
| | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 |
| Saddle Oak Club | MH | Ocala | FL | 376 |
| — |
| 99.5 | % | | 99.5 | % | |
| San Pedro Marina | MH | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| San Pedro RV Resort & Marina | RV | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Saralake Estates | MH | Sarasota | FL | 202 |
| — |
| 100.0 | % | | 100.0 | % | |
| Savanna Club | MH | Port St Lucie | FL | 1,069 |
| — |
| 98.0 | % | | 97.6 | % | (1) |
| Sea Breeze | MH | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Sea Breeze RV Resort | RV | Islamorada | FL | — |
| — |
| — | % | | — | % | (4) |
| Serendipity | MH | North Fort Myers | FL | 338 |
| — |
| 97.0 | % | | 98.5 | % | |
Settler’s Rest RV Resort (2) | RV | Zephyrhills | FL | 310 |
| 68 |
| 100.0 | % | | 100.0 | % | |
| Shadow Wood Village | MH | Hudson | FL | 157 |
| — |
| 99.4 | % | | 99.4 | % | |
| Shady Road Villas | MH | Ocala | FL | 130 |
| — |
| 61.5 | % | | 62.3 | % | |
| Shell Creek Marina | MH | Punta Gorda | FL | 54 |
| — |
| 100.0 | % | | 100.0 | % | |
Shell Creek RV Resort & Marina (2) | RV | Punta Gorda | FL | 139 |
| 46 |
| 100.0 | % | | 100.0 | % | |
Siesta Bay RV Park (2) | RV | Ft. Myers | FL | 734 |
| 63 |
| 100.0 | % | | 100.0 | % | |
| Southern Charm | MH | Zephyrhills | FL | 1 |
| — |
| 100.0 | % | | 100.0 | % | |
Southern Charm RV Resort (2) | RV | Zephyrhills | FL | 401 |
| 95 |
| 100.0 | % | | 100.0 | % | |
| Southern Pines | MH | Bradenton | FL | 107 |
| — |
| 96.3 | % | | 95.3 | % | |
| Southport Springs Golf & Country Club | MH | Zephyrhills | FL | 547 |
| — |
| 98.9 | % | | 98.4 | % | (1) |
| Spanish Main | MH | Thonotosassa | FL | 56 |
| — |
| 91.1 | % | | 91.1 | % | |
Spanish Main RV Resort (2) | RV | Thonotosassa | FL | 202 |
| 74 |
| 100.0 | % | | 100.0 | % | |
| Stonebrook | MH | Homosassa | FL | 215 |
| — |
| 92.1 | % | | 90.7 | % | |
Sun N Fun RV Resort (2) | RV | Sarasota | FL | 957 |
| 562 |
| 100.0 | % | | 100.0 | % | |
| Suncoast Gateway | MH | Port Richey | FL | 173 |
| — |
| 98.8 | % | | 98.3 | % | |
| Sundance | MH | Zephyrhills | FL | 332 |
| — |
| 99.7 | % | | 100.0 | % | |
| Sunlake Estates | MH | Grand Island | FL | 408 |
| — |
| 94.6 | % | | 93.4 | % | |
| Sunset Harbor at Cow Key Marina | MH | Key West | FL | 77 |
| — |
| 98.7 | % | | 97.4 | % | |
Sweetwater RV Resort (2) | RV | Zephyrhills | FL | 212 |
| 79 |
| 100.0 | % | | 100.0 | % | |
| Tallowwood Isle | MH | Coconut Creek | FL | 273 |
| — |
| 95.2 | % | | 95.6 | % | |
| Tampa East | MH | Dover | FL | 31 |
| — |
| 96.8 | % | | 100.0 | % | |
Tampa East RV Resort (2) | RV | Dover | FL | 324 |
| 345 |
| 100.0 | % | | 100.0 | % | |
| The Hamptons Golf & Country Club | MH | Auburndale | FL | 829 |
| — |
| 98.4 | % | | 98.8 | % | |
| The Hideaway | MH | Key West | FL | 13 |
| — |
| 92.3 | % | | 84.6 | % | |
| The Hills | MH | Apopka | FL | 97 |
| — |
| 99.0 | % | | 95.0 | % | |
| The Ridge | MH | Davenport | FL | 481 |
| — |
| 99.2 | % | | 98.3 | % | |
| The Valley | MH | Apopka | FL | 148 |
| — |
| 100.0 | % | | 99.3 | % | |
Three Lakes (2) | RV | Hudson | FL | 226 |
| 81 |
| 100.0 | % | | 100.0 | % | |
| Vista Del Lago | MH | Bradenton | FL | 136 |
| — |
| 96.3 | % | | 95.6 | % | |
Vista Del Lago RV Resort (2) | RV | Bradenton | FL | 27 |
| 13 |
| 100.0 | % | | 100.0 | % | |
| Vizcaya Lakes | MH | Port Charlotte | FL | 113 |
| — |
| 86.7 | % | | 79.7 | % | |
| Walden Woods | MH | Homosassa | FL | 213 |
| — |
| 100.0 | % | | 100.0 | % | |
| Walden Woods II | MH | Homosassa | FL | 213 |
| — |
| 99.1 | % | | 98.6 | % | |
| Water Oak Country Club Estates | MH | Lady Lake | FL | 1,317 |
| — |
| 89.5 | % | (1) | 95.3 | % | (1) |
Waters Edge RV Resort (2) | RV | Zephyrhills | FL | 144 |
| 73 |
| 100.0 | % | | 100.0 | % | |
|
| | | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| The Hideaway | MH | Key West | FL | 13 |
| — |
| 84.6 | % | | 92.3 | % | |
| The Hills | MH | Apopka | FL | 97 |
| — |
| 100.0 | % | | 99.0 | % | |
| The Ridge | MH | Davenport | FL | 481 |
| — |
| 99.0 | % | | 99.2 | % | |
| The Valley | MH | Apopka | FL | 148 |
| — |
| 100.0 | % | | 100.0 | % | |
Three Lakes (2) | RV | Hudson | FL | 237 |
| 70 |
| 100.0 | % | | 100.0 | % | |
| Vista del Lago | MH | Bradenton | FL | 136 |
| — |
| 97.8 | % | | 96.3 | % | |
Vista del Lago RV Resort (2) | RV | Bradenton | FL | 32 |
| 8 |
| 100.0 | % | | 100.0 | % | |
| Vizcaya Lakes | MH | Port Charlotte | FL | 108 |
| — |
| 91.7 | % | | 86.7 | % | |
| Walden Woods | MH | Homosassa | FL | 213 |
| — |
| 100.0 | % | | 100.0 | % | |
| Walden Woods II | MH | Homosassa | FL | 213 |
| — |
| 99.1 | % | | 99.1 | % | |
| Water Oak Country Club Estates | MH | Lady Lake | FL | 1,310 |
| — |
| 91.9 | % | (1 | ) | 89.5 | % | (1) |
Waters Edge RV Resort (2) | RV | Zephyrhills | FL | 140 |
| 77 |
| 100.0 | % | | 100.0 | % | |
| Westside Ridge | MH | Auburndale | FL | 219 |
| — |
| 99.5 | % | | 99.1 | % | |
| Windmill Village | MH | Davenport | FL | 509 |
| — |
| 99.6 | % | | 98.8 | % | |
| Woodlands at Church Lake | MH | Groveland | FL | 291 |
| — |
| 78.4 | % | | 73.9 | % | |
| Florida Total | | | | 39,230 |
| 5,465 |
| 97.7 | % | | 97.3 | % | |
| | | | | | | | | | |
| SOUTHWEST | | | | | | | | | |
| California | | | | | | | | | |
49'er Village RV Resort (2) | RV | Plymouth | CA | 51 |
| 275 |
| 100.0 | % | | 100.0 | % | |
| Alta Laguna | MH | Rancho Cucamonga | CA | 296 |
| — |
| 99.3 | % | | 99.7 | % | |
| Caliente Sands | MH | Cathedral City | CA | 118 |
| — |
| 98.3 | % | | 99.2 | % | |
Cava Robles RV Resort (2) | RV | Paso Robles | CA | — |
| 332 |
| N/A |
| | N/A |
| |
Chula Vista RV Resort (2) | RV | San Diego | CA | — |
| 237 |
| N/A |
| | N/A |
| |
| Friendly Village of La Habra | MH | La Habra | CA | 330 |
| — |
| 99.7 | % | | 99.7 | % | |
| Friendly Village of Modesto | MH | Modesto | CA | 289 |
| — |
| 98.6 | % | | 97.2 | % | |
| Friendly Village of Simi | MH | Simi Valley | CA | 222 |
| — |
| 100.0 | % | | 100.0 | % | |
| Friendly Village of West Covina | MH | West Covina | CA | 157 |
| — |
| 100.0 | % | | 100.0 | % | |
| Heritage | MH | Temecula | CA | 196 |
| — |
| 100.0 | % | | 100.0 | % | |
Indian Wells RV Resort (2) | RV | Indio | CA | 158 |
| 144 |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Tower Park (2) | RV | Lodi | CA | — |
| 360 |
| N/A |
| | N/A |
| |
| Lakefront | MH | Lakeside | CA | 295 |
| — |
| 100.0 | % | | 99.7 | % | |
| Lazy J Ranch | MH | Arcata | CA | 220 |
| — |
| 98.6 | % | | 99.1 | % | |
| Lemon Wood | MH | Ventura | CA | 231 |
| — |
| 99.6 | % | | 100.0 | % | |
| Napa Valley | MH | Napa | CA | 257 |
| — |
| 100.0 | % | | 100.0 | % | |
| Oak Creek | MH | Coarsegold | CA | 198 |
| — |
| 98.0 | % | | 97.0 | % | |
| Ocean West | MH | McKinleyville | CA | 130 |
| — |
| 99.2 | % | | 97.7 | % | |
| Palos Verdes Shores MH & Golf Community | MH | San Pedro | CA | 242 |
| — |
| 100.0 | % | | 100.0 | % | |
| Pembroke Downs | MH | Chino | CA | 163 |
| — |
| 100.0 | % | | 100.0 | % | |
Pismo Dunes RV Resort (2) | RV | Pismo Beach | CA | 330 |
| 1 |
| 100.0 | % | | 100.0 | % | |
| Rancho Alipaz | MH | San Juan Capistrano | CA | 132 |
| — |
| 100.0 | % | | 99.2 | % | |
| Rancho Caballero | MH | Riverside | CA | 303 |
| — |
| 100.0 | % | | 99.7 | % | |
| Royal Palms | MH | Cathedral City | CA | 439 |
| — |
| 95.7 | % | | 99.6 | % | |
| Royal Palms RV Resort | RV | Cathedral City | CA | 38 |
| — |
| 100.0 | % | | 100.0 | % | |
| The Colony | MH | Oxnard | CA | 150 |
| — |
| 100.0 | % | | 100.0 | % | |
The Sands RV & Golf Resort (2) | RV | Desert Hot Springs | CA | 244 |
| 270 |
| 100.0 | % | | 100.0 | % | |
| Vallecito | MH | Newbury Park | CA | 303 |
| — |
| 100.0 | % | | 100.0 | % | |
| Victor Villa | MH | Victorville | CA | 287 |
| — |
| 99.0 | % | | 99.0 | % | |
Vines RV Resort (2) | RV | Paso Robles | CA | — |
| 130 |
| N/A |
| | N/A |
| |
|
| | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 |
| Westside Ridge | MH | Auburndale | FL | 219 |
| — |
| 99.1 | % | | 99.1 | % | |
| Windmill Village | MH | Davenport | FL | 509 |
| — |
| 98.8 | % | | 99.2 | % | |
| Woodlands at Church Lake | MH | Groveland | FL | 291 |
| — |
| 73.9 | % | | 70.5 | % | |
| Florida Total | | | | 37,874 |
| 5,917 |
| 97.3 | % | | 97.1 | % | |
| | | | | | | | | | |
| SOUTHWEST | | | | | | | | | |
| California | | | | | | | | | |
49’er Village RV Resort (2) | RV | Plymouth | CA | 32 |
| 293 |
| 100.0 | % | | 100.0 | % | |
| Alta Laguna | MH | Rancho Cucamonga | CA | 295 |
| — |
| 99.7 | % | | 100.0 | % | |
| Caliente Sands | MH | Cathedral City | CA | 118 |
| — |
| 99.2 | % | | 97.5 | % | |
Cava Robles RV Resort (2) | RV | Paso Robles | CA | — |
| 331 |
| N/A |
| | N/A |
| |
| Friendly Village of La Habra | MH | La Habra | CA | 330 |
| — |
| 99.7 | % | | 100.0 | % | |
| Friendly Village of Modesto | MH | Modesto | CA | 289 |
| — |
| 97.2 | % | | 94.5 | % | |
| Friendly Village of Simi | MH | Simi Valley | CA | 222 |
| — |
| 100.0 | % | | 100.0 | % | |
| Friendly Village of West Covina | MH | West Covina | CA | 157 |
| — |
| 99.4 | % | | 99.4 | % | |
| Heritage | MH | Temecula | CA | 196 |
| — |
| 100.0 | % | | 100.0 | % | |
Indian Wells RV Resort (2) | RV | Indio | CA | 147 |
| 169 |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Tower Park (2) | RV | Lodi | CA | — |
| 359 |
| N/A |
| | N/A |
| |
| Lakefront | MH | Lakeside | CA | 295 |
| — |
| 99.7 | % | | 100.0 | % | |
| Lazy J Ranch | MH | Arcata | CA | 220 |
| — |
| 99.1 | % | | 100.0 | % | |
| Lemon Wood | MH | Ventura | CA | 231 |
| — |
| 100.0 | % | | 100.0 | % | |
| Napa Valley | MH | Napa | CA | 257 |
| — |
| 100.0 | % | | 100.0 | % | |
| Oak Creek | MH | Coarsegold | CA | 198 |
| — |
| 97.0 | % | | 95.0 | % | |
| Ocean West | MH | McKinleyville | CA | 130 |
| — |
| 97.7 | % | | 100.0 | % | |
| Palos Verdes Shores MH & Golf Community | MH | San Pedro | CA | 242 |
| — |
| 100.0 | % | | 100.0 | % | |
| Pembroke Downs | MH | Chino | CA | 163 |
| — |
| 100.0 | % | | 100.0 | % | |
| Pismo Dunes RV Resort | RV | Pismo Beach | CA | 331 |
| — |
| 100.0 | % | | 100.0 | % | |
| Rancho Alipaz | MH | San Juan Capistrano | CA | 132 |
| — |
| 99.2 | % | | 100.0 | % | |
| Rancho Caballero | MH | Riverside | CA | 303 |
| — |
| 99.7 | % | | 99.7 | % | |
| Royal Palms | MH | Cathedral City | CA | 439 |
| — |
| 99.6 | % | | 96.8 | % | |
| Royal Palms RV Resort | RV | Cathedral City | CA | 38 |
| — |
| 100.0 | % | | 100.0 | % | |
| The Colony | MH | Oxnard | CA | 150 |
| — |
| 100.0 | % | | 100.0 | % | |
The Sands RV & Golf Resort (2) | RV | Desert Hot Springs | CA | 234 |
| 280 |
| 100.0 | % | | N/A |
| |
| Vallecito | MH | Newbury Park | CA | 303 |
| — |
| 100.0 | % | | 100.0 | % | |
| Victor Villa | MH | Victorville | CA | 287 |
| — |
| 99.0 | % | | 97.2 | % | |
Vines RV Resort (2) | RV | Paso Robles | CA | — |
| 130 |
| N/A |
| | N/A |
| |
| Vista Del Lago | MH | Scotts Valley | CA | 202 |
| — |
| 100.0 | % | | 100.0 | % | |
Wine Country RV Resort (2) | RV | Paso Robles | CA | — |
| 203 |
| N/A |
| | N/A |
| |
| California Total | | | | 5,941 |
| 1,765 |
| 99.3 | % | | 99.1 | % | |
| | | | | | | | | | |
| Arizona | | | | | | | | | |
| Blue Star / Lost Dutchman | MH | Apache Junction | AZ | 169 |
| — |
| 95.9 | % | | 93.5 | % | |
Blue Star / Lost Dutchman RV Resort (2) | RV | Apache Junction | AZ | 88 |
| 118 |
| 100.0 | % | | 100.0 | % | |
|
| | | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| Vista del Lago | MH | Scotts Valley | CA | 202 |
| — |
| 100.0 | % | | 100.0 | % | |
Wine Country RV Resort (2) | RV | Paso Robles | CA | — |
| 203 |
| N/A |
| | N/A |
| |
| California Total | | | | 5,981 |
| 1,952 |
| 99.3 | % | | 99.3 | % | |
| | | | | | | | | | |
| Arizona | | | | | | | | | |
| Blue Star / Lost Dutchman | MH | Apache Junction | AZ | 175 |
| — |
| 96.6 | % | | 95.9 | % | |
Blue Star / Lost Dutchman RV Resort (2) | RV | Apache Junction | AZ | 97 |
| 103 |
| 100.0 | % | | 100.0 | % | |
| Brentwood West | MH | Mesa | AZ | 350 |
| — |
| 99.1 | % | | 98.9 | % | |
| Buena Vista | MH | Buckeye | AZ | 400 |
| — |
| 75.5 | % | | N/A |
| (5) |
| Desert Harbor | MH | Apache Junction | AZ | 205 |
| — |
| 99.5 | % | | 99.5 | % | |
| Fiesta Village | MH | Mesa | AZ | 154 |
| — |
| 85.1 | % | | 83.8 | % | |
Fiesta Village RV Resort (2) | RV | Mesa | AZ | 2 |
| 8 |
| 100.0 | % | | 100.0 | % | |
| La Casa Blanca | MH | Apache Junction | AZ | 198 |
| — |
| 100.0 | % | | 100.0 | % | |
Leaf Verde RV Resort (2) | RV | Buckeye | AZ | — |
| 377 |
| N/A |
| | N/A |
| |
| Mountain View | MH | Mesa | AZ | 170 |
| — |
| 97.6 | % | | 99.4 | % | |
| Palm Creek Golf | MH | Casa Grande | AZ | 506 |
| — |
| 60.7 | % | (1) | 57.0 | % | (1) |
Palm Creek Golf & RV Resort (2) | RV | Casa Grande | AZ | 926 |
| 909 |
| 100.0 | % | | 100.0 | % | |
| Rancho Mirage | MH | Apache Junction | AZ | 312 |
| — |
| 100.0 | % | | 100.0 | % | |
| Reserve at Fox Creek | MH | Bullhead City | AZ | 311 |
| — |
| 99.0 | % | | 97.7 | % | |
| Sun Valley | MH | Apache Junction | AZ | 268 |
| — |
| 95.9 | % | | 94.0 | % | |
| Verde Plaza | MH | Tucson | AZ | 189 |
| — |
| 87.8 | % | | 93.1 | % | |
| Arizona Total | | | | 4,263 |
| 1,397 |
| 91.3 | % | | 92.4 | % | |
| | | | | | | | | | |
| Colorado | | | | | | | | | |
| Cave Creek | MH | Evans | CO | 447 |
| — |
| 98.9 | % | | 98.7 | % | |
| Eagle Crest | MH | Firestone | CO | 441 |
| — |
| 99.5 | % | | 99.8 | % | |
Jellystone Park™ at Larkspur (2) | RV | Lakespur | CO | — |
| — |
| N/A |
| | N/A |
| |
| North Point Estates | MH | Pueblo | CO | 108 |
| — |
| 99.1 | % | | 97.2 | % | |
| River Run Ranch | MH | Granby | CO | 36 |
| — |
| 2.8 | % | (1) | — | % | |
River Run Ranch RV Resort (2) | RV | Granby | CO | — |
| 291 |
| N/A |
| | N/A |
| |
| Skyline | MH | Fort Collins | CO | 170 |
| — |
| 97.6 | % | | 100.0 | % | |
| Smith Creek Crossing | MH | Granby | CO | 52 |
| — |
| 5.8 | % | (1) | — | % | |
| Swan Meadow Village | MH | Dillon | CO | 175 |
| — |
| 100.0 | % | | 99.4 | % | |
| The Grove at Alta Ridge | MH | Thornton | CO | 409 |
| — |
| 99.5 | % | | 99.5 | % | |
| Timber Ridge | MH | Fort Collins | CO | 585 |
| — |
| 99.5 | % | | 99.7 | % | |
| Colorado Total | | | | 2,423 |
| 291 |
| 95.8 | % | | 99.4 | % | |
| | | | | | | | | | |
| OTHER | | | | | | | | | |
Pandion Ridge RV Resort (2) | RV | Orange Beach | AL | — |
| 142 |
| N/A |
| | N/A |
| |
| Beechwood | MH | Killingworth | CT | 297 |
| — |
| 98.7 | % | | N/A |
| (5) |
| Cedar Springs | MH | Southington | CT | 190 |
| — |
| 90.0 | % | | N/A |
| (5) |
| Forest Hill | MH | Southington | CT | 188 |
| — |
| 97.9 | % | | N/A |
| (5) |
| Grove Beach | MH | Westbrook | CT | 136 |
| — |
| 97.8 | % | | N/A |
| (5) |
| Hillcrest | MH | Uncasville | CT | 208 |
| — |
| 98.1 | % | | N/A |
| (5) |
| Lakeside | MH | Terryville | CT | 76 |
| — |
| 93.4 | % | | N/A |
| (5) |
| Lakeview CT | MH | Danbury | CT | 179 |
| — |
| 86.6 | % | | N/A |
| (5) |
| Laurel Heights | MH | Uncasville | CT | 49 |
| — |
| 98.0 | % | | N/A |
| (5) |
| Marina Cove | MH | Uncasville | CT | 25 |
| — |
| 80.0 | % | | N/A |
| (5) |
| Millwood | MH | Uncasville | CT | 45 |
| — |
| — | % | (1) | N/A |
| (5) |
|
| | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 |
| Brentwood West | MH | Mesa | AZ | 350 |
| — |
| 98.9 | % | | 99.1 | % | |
| Desert Harbor | MH | Apache Junction | AZ | 205 |
| — |
| 99.5 | % | | 99.0 | % | |
| Fiesta Village | MH | Mesa | AZ | 154 |
| — |
| 83.8 | % | | 79.9 | % | |
Fiesta Village RV Resort (2) | RV | Mesa | AZ | 2 |
| 8 |
| 100.0 | % | | 100.0 | % | |
| La Casa Blanca | MH | Apache Junction | AZ | 198 |
| — |
| 100.0 | % | | 100.0 | % | |
Leaf Verde RV Resort (2) | RV | Buckeye | AZ | — |
| 376 |
| N/A |
| | N/A |
| |
| Mountain View | MH | Mesa | AZ | 170 |
| — |
| 99.4 | % | | 99.4 | % | |
| Palm Creek Golf | MH | Casa Grande | AZ | 505 |
| — |
| 57.0 | % | (1) | 52.1 | % | (1) |
Palm Creek Golf & RV Resort (2) | RV | Casa Grande | AZ | 915 |
| 921 |
| 100.0 | % | | 100.0 | % | |
| Rancho Mirage | MH | Apache Junction | AZ | 312 |
| — |
| 100.0 | % | | 100.0 | % | |
| Reserve at Fox Creek | MH | Bullhead City | AZ | 311 |
| — |
| 97.7 | % | | 95.2 | % | |
| Sun Valley | MH | Apache Junction | AZ | 268 |
| — |
| 94.0 | % | | 91.8 | % | |
| Verde Plaza | MH | Tucson | AZ | 189 |
| — |
| 93.1 | % | | 90.0 | % | |
| Arizona Total | | | | 3,836 |
| 1,423 |
| 92.4 | % | | 91.0 | % | |
| | | | | | | | | | |
| Colorado | | | | | | | | | |
| Cave Creek | MH | Evans | CO | 447 |
| — |
| 98.7 | % | | 99.1 | % | |
| Eagle Crest | MH | Firestone | CO | 441 |
| — |
| 99.8 | % | | 100.0 | % | |
Jellystone Park™ at Larkspur (2) | RV | Larkspur | CO | — |
| 137 |
| N/A |
| | N/A |
| |
| North Point Estates | MH | Pueblo | CO | 108 |
| — |
| 97.2 | % | | 99.1 | % | |
| Skyline | MH | Fort Collins | CO | 170 |
| — |
| 100.0 | % | | 99.4 | % | |
| Swan Meadow Village | MH | Dillon | CO | 175 |
| — |
| 99.4 | % | | 100.0 | % | |
| The Grove at Alta Ridge | MH | Thornton | CO | 409 |
| — |
| 99.5 | % | | 99.8 | % | |
| Timber Ridge | MH | Ft. Collins | CO | 585 |
| — |
| 99.7 | % | | 99.5 | % | |
| Colorado Total | | | | 2,335 |
| 137 |
| 99.4 | % | | 99.6 | % | |
| | | | | | | | | | |
| OTHER | | | | | | | | | |
Seaport RV Resort (2) | RV | Old Mystic | CT | 44 |
| 105 |
| 100.0 | % | | 100.0 | % | |
| High Point Park | MH | Frederica | DE | 409 |
| — |
| 96.3 | % | | 96.6 | % | |
| Sea Air Village | MH | Rehoboth Beach | DE | 373 |
| — |
| 100.0 | % | | 98.4 | % | |
Sea Air Village RV Resort (2) | RV | Rehoboth Beach | DE | 120 |
| 14 |
| 100.0 | % | | 100.0 | % | |
| Countryside Village of Atlanta | MH | Lawrenceville | GA | 261 |
| — |
| 87.4 | % | (1) | 65.0 | % | (1) |
| Countryside Village of Gwinnett | MH | Buford | GA | 331 |
| — |
| 98.2 | % | | 99.1 | % | |
| Countryside Village of Lake Lanier | MH | Buford | GA | 548 |
| — |
| 99.5 | % | | 98.7 | % | |
| Autumn Ridge | MH | Ankeny | IA | 413 |
| — |
| 96.6 | % | | 97.1 | % | |
| Candlelight Village | MH | Sauk Village | IL | 309 |
| — |
| 93.2 | % | | 97.1 | % | |
| Maple Brook | MH | Matteson | IL | 441 |
| — |
| 99.5 | % | | 99.6 | % | |
| Oak Ridge | MH | Manteno | IL | 426 |
| — |
| 93.2 | % | | 93.0 | % | |
Sunset Lakes RV Resort (2) | RV | Hillsdale | IL | 225 |
| 273 |
| 100.0 | % | | 100.0 | % | |
| Wildwood Community | MH | Sandwich | IL | 476 |
| — |
| 99.2 | % | | 99.4 | % | |
Campers Haven RV Resort (2) | RV | Dennisport | MA | 230 |
| 43 |
| 100.0 | % | | 100.0 | % | |
Peter’s Pond RV Resort (2) | RV | Sandwich | MA | 329 |
| 77 |
| 100.0 | % | | 100.0 | % | |
Castaways RV Resort & Campground (2) | RV | Berlin | MD | 1 |
| 392 |
| 100.0 | % | | 100.0 | % | |
|
| | | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
| New England Village | MH | Westbrook | CT | 60 |
| — |
| 100.0 | % | | N/A |
| (5) |
| Oak Grove | MH | Plainville | CT | 45 |
| — |
| 100.0 | % | | N/A |
| (5) |
| Rolling Hills | MH | Storrs | CT | 200 |
| — |
| 79.5 | % | | N/A |
| (5) |
Seaport RV Resort (2) | RV | Old Mystic | CT | 36 |
| 113 |
| 100.0 | % | | 100.0 | % | |
| Three Gardens | MH | Southington | CT | 135 |
| — |
| 89.6 | % | | N/A |
| (5) |
| Yankee Village | MH | Old Saybrook | CT | 23 |
| — |
| 100.0 | % | | N/A |
| (5) |
| High Point Park | MH | Frederica | DE | 409 |
| — |
| 97.3 | % | | 96.3 | % | |
| Leisure Point Resort | MH | Millsboro | DE | 201 |
| — |
| 90.0 | % | | N/A |
| (5) |
Leisure Point RV Resort (2) | RV | Millsboro | DE | 277 |
| 24 |
| 100.0 | % | | — | % | |
Massey’s Landing RV Resort (2) | RV | Millsboro | DE | — |
| 291 |
| — | % | | — | % | |
| Sea Air Village | MH | Rehoboth Beach | DE | 373 |
| — |
| 99.2 | % | | 100.0 | % | |
Sea Air Village RV Resort (2) | RV | Rehoboth Beach | DE | 119 |
| 15 |
| 100.0 | % | | 100.0 | % | |
| Countryside Village of Atlanta | MH | Lawrenceville | GA | 261 |
| — |
| 100.0 | % | | 87.4 | % | (1) |
| Countryside Village of Gwinnett | MH | Buford | GA | 331 |
| — |
| 99.1 | % | | 98.2 | % | |
| Countryside Village of Lake Lanier | MH | Buford | GA | 548 |
| — |
| 99.8 | % | | 99.5 | % | |
| Wymberly | MH | Martinez | GA | 215 |
| — |
| 99.5 | % | | N/A |
| (5) |
| Autumn Ridge | MH | Ankeny | IA | 413 |
| — |
| 97.1 | % | | 96.6 | % | |
| Candlelight Village | MH | Sauk Village | IL | 309 |
| — |
| 92.2 | % | | 93.2 | % | |
| Maple Brook | MH | Matteson | IL | 441 |
| — |
| 99.3 | % | | 99.5 | % | |
| Oak Ridge | MH | Manteno | IL | 426 |
| — |
| 95.1 | % | | 93.2 | % | |
Sunset Lakes RV Resort (2) | RV | Hillsdale | IL | 225 |
| 273 |
| 100.0 | % | | 100.0 | % | |
| Wildwood Community | MH | Sandwich | IL | 476 |
| — |
| 98.7 | % | | 99.2 | % | |
Reunion Lake RV Resort (2) | RV | Ponchatoula | LA | — |
| 201 |
| — | % | | — | % | |
Campers Haven RV Resort (2) | RV | Dennisport | MA | 224 |
| 41 |
| 100.0 | % | | 100.0 | % | |
Peter's Pond RV Resort (2) | RV | Sandwich | MA | 328 |
| 78 |
| 100.0 | % | | 100.0 | % | |
Castaways RV Resort & Campground (2) | RV | Berlin | MD | 1 |
| 392 |
| 100.0 | % | | 100.0 | % | |
Fort Whaley RV Resort & Campground (2) | RV | Whaleyville | MD | — |
| 183 |
| N/A |
| | N/A |
| |
Frontier Town RV Resort & Campground (2) | RV | Berlin | MD | — |
| 685 |
| N/A |
| | N/A |
| |
| Hyde Park | MH | Easton | MD | 240 |
| — |
| 98.3 | % | | N/A |
| (5) |
Jellystone Park™ at Maryland (2) | RV | Williamsport | MD | — |
| 228 |
| N/A |
| | N/A |
| |
| Southside Landing | MH | Cambridge | MD | 96 |
| — |
| 81.3 | % | | N/A |
| (5) |
Hid'n Pines RV Resort (2) | RV | Old Orchard Beach | ME | 66 |
| 255 |
| 100.0 | % | | N/A |
| |
| Maplewood Manor | MH | Brunswick | ME | 296 |
| — |
| 98.3 | % | | 99.7 | % | |
| Merrymeeting | MH | Brunswick | ME | 43 |
| — |
| 100.0 | % | | 93.0 | % | |
Saco / Old Orchard Beach KOA (2) | RV | Saco | ME | — |
| 191 |
| N/A |
| | N/A |
| |
| Town & Country Village | MH | Lisbon | ME | 144 |
| — |
| 97.9 | % | | 95.8 | % | |
Wagon Wheel RV Resort & Campground (2) | RV | Old Orchard Beach | ME | 237 |
| 49 |
| 100.0 | % | | 100.0 | % | |
Wild Acres RV Resort & Campground (2) | RV | Old Orchard Beach | ME | 314 |
| 316 |
| 100.0 | % | | 100.0 | % | |
| Southern Hills / Northridge Place | MH | Stewartville | MN | 475 |
| — |
| 98.5 | % | | 98.1 | % | (1) |
| Pin Oak Parc | MH | O'Fallon | MO | 502 |
| — |
| 99.2 | % | | 98.0 | % | |
| Southfork | MH | Belton | MO | 474 |
| — |
| 67.7 | % | | 68.6 | % | |
| Countryside Village | MH | Great Falls | MT | 226 |
| — |
| 94.7 | % | | 97.3 | % | |
| Coastal Plantation | MH | Hampstead | NC | 101 |
| — |
| 100.0 | % | | N/A |
| (5) |
Fort Tatham RV Resort & Campground (2) | RV | Sylva | NC | 59 |
| 31 |
| 100.0 | % | | 100.0 | % | |
| Glen Laurel | MH | Concord | NC | 260 |
| — |
| 100.0 | % | | 99.2 | % | |
Jellystone Park™ at Golden Valley (2) | RV | Bostic | NC | — |
| 182 |
| N/A |
| | N/A |
| |
| Meadowbrook | MH | Charlotte | NC | 321 |
| — |
| 100.0 | % | | 99.7 | % | |
| Brook Ridge | MH | Hooksett | NH | 91 |
| — |
| 100.0 | % | | N/A |
| (5) |
| Crestwood | MH | Concord | NH | 320 |
| — |
| 98.4 | % | | N/A |
| (5) |
| | | Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
Fort Whaley RV Resort & Campground (2) | RV | Whaleyville | MD | — |
| 179 |
| N/A |
| | N/A |
| | |
Frontier Town RV Resort & Campground (2) | RV | Berlin | MD | — |
| 584 |
| N/A |
| | N/A |
| | |
Jellystone Park™ at Maryland (2) | RV | Williamsport | MD | — |
| 226 |
| N/A |
| | N/A |
| | |
| Maplewood Manor | MH | Brunswick | ME | 296 |
| — |
| 99.7 | % | | 99.3 | % | | |
| Merrymeeting | MH | Brunswick | ME | 43 |
| — |
| 93.0 | % | | 100.0 | % | | |
Saco / Old Orchard Beach KOA (2) | RV | Saco | ME | — |
| 196 |
| N/A |
| | N/A |
| | |
| Town & Country Village | MH | Lisbon | ME | 144 |
| — |
| 95.8 | % | | 99.3 | % | | |
Wagon Wheel RV Resort & Campground (2) | RV | Old Orchard Beach | ME | 231 |
| 55 |
| 100.0 | % | | 100.0 | % | | |
Wild Acres RV Resort & Campground (2) | RV | Old Orchard Beach | ME | 309 |
| 321 |
| 100.0 | % | | 100.0 | % | | |
| Southern Hills / Northridge Place | MH | Stewartville | MN | 475 |
| — |
| 98.1 | % | (1) | 92.8 | % | (1) | |
| Pin Oak Parc | MH | O’Fallon | MO | 502 |
| — |
| 98.0 | % | | 96.6 | % | | |
| Southfork | MH | Belton | MO | 474 |
| — |
| 68.6 | % | | 65.0 | % | | |
| Countryside Village | MH | Great Falls | MT | 226 |
| — |
| 97.3 | % | | 98.7 | % | | |
Fort Tatham RV Resort & Campground (2) | RV | Sylva | NC | 56 |
| 34 |
| 100.0 | % | | 100.0 | % | | |
| Glen Laurel | MH | Concord | NC | 260 |
| — |
| 99.2 | % | | 98.5 | % | | |
| Meadowbrook | MH | Charlotte | NC | 321 |
| — |
| 99.7 | % | | 100.0 | % | | |
| Farmwood Village | | MH | Dover | NH | 159 |
| — |
| 98.7 | % | | N/A |
| (5) |
Glen Ellis Family Campground (2) | | RV | Glen | NH | 40 |
| 238 |
| 100.0 | % | | N/A |
| (5) |
| Hannah Village | | MH | Lebanon | NH | 81 |
| — |
| 100.0 | % | | N/A |
| (5) |
| Hemlocks | | MH | Tilton | NH | 103 |
| — |
| 99.0 | % | | N/A |
| (5) |
Mi-Te-Jo Campground (2) | RV | Milton | NH | 106 |
| 118 |
| 100.0 | % | | N/A |
| | RV | Milton | NH | 107 |
| 117 |
| 100.0 | % | | 100.0 | % | |
| River Pines | | MH | Nashua | NH | 480 |
| — |
| 98.8 | % | | N/A |
| (5) |
| Strafford / Lake Winnipesaukee South KOA | | RV | Strafford | NH | — |
| — |
| N/A |
| | N/A |
| |
Westward Shores Cottages & RV Resort (2) | RV | West Ossipee | NH | 322 |
| 136 |
| 100.0 | % | | N/A |
| | RV | West Ossipee | NH | 386 |
| 114 |
| 100.0 | % | | 100.0 | % | |
Big Timber Lake RV Camping Resort (2) | RV | Cape May Court House | NJ | 322 |
| 206 |
| 100.0 | % | | 100.0 | % | | |
| Big Timber Lake RV Camping Resort | | RV | Cape May Court House | NJ | 325 |
| 203 |
| 100.0 | % | | 100.0 | % | |
| Cape May Crossing | MH | Cape May | NJ | 28 |
| — |
| 100.0 | % | | 100.0 | % | | MH | Cape May | NJ | 28 |
| — |
| 100.0 | % | | 100.0 | % | |
Cape May KOA (2) | RV | Cape May | NJ | 367 |
| 262 |
| 100.0 | % | | 100.0 | % | | |
| Deep Run | | MH | Cream Ridge | NJ | 243 |
| — |
| 100.0 | % | | N/A |
| (5) |
Driftwood RV Resort & Campground (2) | RV | Clermont | NJ | 621 |
| 86 |
| 100.0 | % | | 100.0 | % | | RV | Clemont | NJ | 630 |
| 77 |
| 100.0 | % | | 100.0 | % | |
| Lake Laurie RV and Camping Resort | | RV | Cape May | NJ | 374 |
| 255 |
| 100.0 | % | | 100.0 | % | |
Long Beach RV Resort & Campground (2) | RV | Barnegat | NJ | 167 |
| 47 |
| 100.0 | % | | 100.0 | % | | RV | Barnegat | NJ | 170 |
| 44 |
| 100.0 | % | | 100.0 | % | |
Seashore Campsites & RV Resort (2) | RV | Cape May | NJ | 433 |
| 243 |
| 100.0 | % | | 100.0 | % | | RV | Cape May | NJ | 434 |
| 242 |
| 100.0 | % | | 100.0 | % | |
| Shady Pines | MH | Galloway Township | NJ | 39 |
| — |
| 100.0 | % | | 97.5 | % | | MH | Galloway Twp. | NJ | 39 |
| — |
| 100.0 | % | | 100.0 | % | |
Shady Pines RV Resort (2) | RV | Galloway Township | NJ | 55 |
| 40 |
| 100.0 | % | | 100.0 | % | | RV | Galloway Twp. | NJ | 52 |
| 43 |
| 100.0 | % | | 100.0 | % | |
| Sun Villa Estates | MH | Reno | NV | 324 |
| — |
| 99.7 | % | | 99.7 | % | | MH | Reno | NV | 324 |
| — |
| 99.7 | % | | 99.7 | % | |
Adirondack Gateway RV Resort & Campground (2) | RV | Gansevoort | NY | 293 |
| 47 |
| 100.0 | % | | 100.0 | % | | RV | Gansevoort | NY | 302 |
| 40 |
| 100.0 | % | | 100.0 | % | |
| Cherrywood | | MH | Clinton | NY | 176 |
| — |
| 80.7 | % | | N/A |
| (5) |
| Jellystone Park™ at Birchwood Acres | MH | Greenfield Park | NY | 1 |
| — |
| 100.0 | % | | 100.0 | % | | MH | Greenfield Park | NY | 1 |
| — |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Birchwood Acres RV Resort (2) | RV | Greenfield Park | NY | 95 |
| 209 |
| 100.0 | % | | 100.0 | % | | RV | Greenfield Park | NY | 103 |
| 201 |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Gardiner (2) | RV | Gardiner | NY | — |
| 320 |
| N/A |
| | N/A |
| | RV | Gardiner | NY | — |
| 338 |
| N/A |
| | N/A |
| |
Jellystone Park™ of Western New York (2) | RV | North Java | NY | 10 |
| 349 |
| 100.0 | % | | 100.0 | % | | RV | North Java | NY | 15 |
| 344 |
| 100.0 | % | | 100.0 | % | |
| Parkside Village | MH | Cheektowaga | NY | 156 |
| — |
| 100.0 | % | | 100.0 | % | | MH | Cheektowaga | NY | 156 |
| — |
| 100.0 | % | | 100.0 | % | |
| Sky Harbor | MH | Cheektowaga | NY | 522 |
| — |
| 96.7 | % | | 94.8 | % | | MH | Cheektowaga | NY | 522 |
| — |
| 98.3 | % | | 96.7 | % | |
| The Villas at Calla Pointe | MH | Cheektowaga | NY | 116 |
| — |
| 98.3 | % | | 100.0 | % | | MH | Cheektowaga | NY | 116 |
| — |
| 100.0 | % | | 98.3 | % | |
| Country Village Estates | | MH | Oregon City | OR | 518 |
| — |
| 99.8 | % | | N/A |
| (5) |
| Forest Meadows | MH | Philomath | OR | 75 |
| — |
| 98.7 | % | | 100.0 | % | | MH | Philomath | OR | 75 |
| — |
| 100.0 | % | | 98.7 | % | |
Oceanside RV Resort & Campground (2) | RV | Coos Bay | OR | — |
| 88 |
| N/A |
|
| N/A |
| | RV | Coos Bay | OR | — |
| 86 |
| N/A |
| | N/A |
| |
| Woodland Park Estates | MH | Eugene | OR | 398 |
| — |
| 99.7 | % | | 100.0 | % | | MH | Eugene | OR | 398 |
| — |
| 100.0 | % | | 99.7 | % | |
| Countryside Estates | MH | Mckean | PA | 304 |
| — |
| 98.0 | % | | 98.7 | % | | MH | Mckean | PA | 304 |
| — |
| 95.4 | % | | 98.0 | % | |
Jellystone Park™ at Quarryville (2) | RV | Quarryville | PA | — |
| 243 |
| N/A |
| | N/A |
| | RV | Quarryville | PA | — |
| 256 |
| N/A |
| | N/A |
| |
Lake in Wood RV Resort (2) | RV | Narvon | PA | 278 |
| 141 |
| 100.0 | % | | 100.0 | % | | RV | Narvon | PA | 276 |
| 145 |
| 100.0 | % | | 100.0 | % | |
| Pheasant Ridge | | MH | Lancaster | PA | 553 |
| — |
| 100.0 | % | | 100.0 | % | |
Carolina Pines RV Resort (2) | | RV | Conway | SC | 75 |
| 420 |
| 100.0 | % | | — | % | |
| Country Lakes | | MH | Little River | SC | 136 |
| — |
| 95.6 | % | | N/A |
| (5) |
| Crossroads | | MH | Aiken | SC | 171 |
| — |
| 25.7 | % | | N/A |
| (5) |
Crossroads RV Resort (2) | | RV | Aiken | SC | 17 |
| 5 |
| 100.0 | % | | — | % | |
| Lakeside Crossing | | MH | Conway | SC | 688 |
| — |
| 76.6 | % | (1) | 82.7 | % | (1) |
| Ocean Pines | | MH | Garden City | SC | 579 |
| — |
| 99.5 | % | | N/A |
| (5) |
| Southern Palms | | MH | Ladson | SC | 194 |
| — |
| 100.0 | % |
| N/A |
| (5) |
| Bell Crossing | | MH | Clarksville | TN | 237 |
| — |
| 98.7 | % | | 97.5 | % | |
Jellystone Park™ at Memphis (2) | | RV | Horn Lake | TN | — |
| 155 |
| N/A |
| | N/A |
| |
River Plantation RV Resort (2) | | RV | Sevierville | TN | — |
| 308 |
| N/A |
| | N/A |
| |
Archview RV Resort & Campground (2) | | RV | Moab | UT | — |
| 113 |
| N/A |
| | N/A |
| |
Canyonlands RV Resort & Campground (2) | | RV | Moab | UT | — |
| 131 |
| N/A |
| | N/A |
| |
Moab Valley RV Resort & Campground (2) | | RV | Moab | UT | — |
| 131 |
| N/A |
| | N/A |
| |
Pony Express RV Resort & Campground (2) | | RV | North Salt Lake | UT | — |
| 185 |
| N/A |
| | N/A |
| |
|
| | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/18 | Transient RV Sites as of 12/31/18 | Occupancy as of 12/31/18 | Occupancy as of 12/31/17 |
| Pheasant Ridge | MH | Lancaster | PA | 553 |
| — |
| 100.0 | % | | 99.8 | % | |
| Lakeside Crossing | MH | Conway | SC | 588 |
| — |
| 82.7 | % | (1) | 76.0 | % | (1) |
| Bell Crossing | MH | Clarksville | TN | 237 |
| — |
| 97.5 | % | | 99.2 | % | |
Jellystone Park™ at Memphis (2) | RV | Horn Lake | TN | — |
| 155 |
| N/A |
| | N/A |
| |
Archview RV Resort & Campground (2) | RV | Moab | UT | — |
| 114 |
| N/A |
| | N/A |
| |
Canyonlands RV Resort & Campground (2) | RV | Moab | UT | — |
| 131 |
| N/A |
| | N/A |
| |
Moab Valley RV Resort & Campground (2) | RV | Moab | UT | — |
| 131 |
| N/A |
| | N/A |
| |
Pony Express RV Resort & Campground (2) | RV | North Salt Lake | UT | — |
| 186 |
| N/A |
| | N/A |
| |
Gwynn’s Island RV Resort & Campground (2) | RV | Gwynn | VA | 102 |
| 27 |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Luray (2) | RV | East Luray | VA | — |
| 255 |
| N/A |
| | N/A |
| |
New Point RV Resort (2) | RV | New Point | VA | 247 |
| 77 |
| 100.0 | % | | 100.0 | % | |
| Pine Ridge | MH | Prince George | VA | 323 |
| — |
| 82.4 | % | (1) | 90.9 | % | (1) |
Sunset Beach RV Resort (3) | RV | Cape Charles | VA | — |
| — |
| N/A |
| | N/A |
| |
| Thunderhill Estates | MH | Sturgeon Bay | WI | 266 |
| — |
| 93.6 | % | | 99.1 | % | |
Westward Ho RV Resort & Campground (2) | RV | Glenbeulah | WI | 226 |
| 96 |
| 100.0 | % | | 100.0 | % | |
| Other Total | | | | 15,847 |
| 6,206 |
| 96.7 | % | | 96.0 | % | |
| | | | | | | | | | |
| US TOTAL / AVERAGE | | | | 105,118 |
| 18,445 |
| 96.0 | % | | 95.6 | % | |
| | | | | | | | | | |
| CANADA | | | | | | | | | |
Arran Lake RV Resort & Campground (2) | RV | Allenford | ON | 149 |
| 40 |
| 100.0 | % | | 100.0 | % | |
Craigleith RV Resort & Campground (2) | RV | Clarksburg | ON | 68 |
| 43 |
| 100.0 | % | | 100.0 | % | |
Deer Lake RV Resort & Campground (2) | RV | Huntsville | ON | 168 |
| 72 |
| 100.0 | % | | 100.0 | % | |
Grand Oaks RV Resort & Campground (2) | RV | Cayuga | ON | 230 |
| 40 |
| 100.0 | % | | 100.0 | % | |
| Gulliver’s Lake RV Resort & Campground | RV | Millgrove | ON | 199 |
| — |
| 100.0 | % | | 100.0 | % | |
Hidden Valley RV Resort & Campground (2) | RV | Normandale | ON | 203 |
| 42 |
| 100.0 | % | | 100.0 | % | |
Lafontaine RV Resort & Campground (2) | RV | Tiny | ON | 187 |
| 76 |
| 100.0 | % | | 100.0 | % | |
Lake Avenue RV Resort & Campground (2) | RV | Cherry Valley | ON | 115 |
| 12 |
| 100.0 | % | | 100.0 | % | |
Pickerel Park RV Resort & Campground (2) | RV | Napanee | ON | 148 |
| 61 |
| 100.0 | % | | 100.0 | % | |
Sherkston Shores Beach Resort & Campground (2) | RV | Sherkston | ON | 1,419 |
| 296 |
| 100.0 | % | | 100.0 | % | |
Silver Birches RV Resort & Campground (2) | RV | Lambton Shores | ON | 132 |
| 30 |
| 100.0 | % | | 100.0 | % | |
Trailside RV Resort & Campground (2) | RV | Seguin | ON | 185 |
| 52 |
| 100.0 | % | | 100.0 | % | |
Willow Lake RV Resort & Campground (2) | RV | Scotland | ON | 365 |
| 8 |
| 100.0 | % | | 100.0 | % | |
Willowood RV Resort & Campground (2) | RV | Amherstburg | ON | 116 |
| 211 |
| 100.0 | % | | 100.0 | % | |
Woodland Lake RV Resort & Campground (2) | RV | Bornholm | ON | 161 |
| 63 |
| 100.0 | % | | 100.0 | % | |
| CANADA TOTAL / AVERAGE | | | | 3,845 |
| 1,046 |
| 100.0 | % | | 100.0 | % | |
| | | | | | | | | | |
| COMPANY TOTAL / AVERAGE | | | | 108,963 |
| 19,491 |
| 96.1 | % | | 95.8 | % | |
|
| | | | | | | | | | | | | | |
| Property | MH/RV | City | State | MH and Annual RV Sites as of 12/31/19 | Transient RV Sites as of 12/31/19 | Occupancy as of 12/31/19 | Occupancy as of 12/31/18 |
Slickrock RV Resort & Campground (2) | RV | Moab | UT | — |
| 193 |
| N/A |
| | N/A |
| |
Chincoteague Island KOA RV Resort (3) | RV | Chincoteague | VA | — |
| — |
| N/A |
| | N/A |
| |
Gwynn's Island RV Resort & Campground (2) | RV | Gwynn | VA | 107 |
| 22 |
| 100.0 | % | | 100.0 | % | |
Jellystone Park™ at Luray (2) | RV | East Luray | VA | — |
| 255 |
| N/A |
| | N/A |
| |
New Point RV Resort (2) | RV | New Point | VA | 277 |
| 47 |
| 100.0 | % | | 100.0 | % | |
| Pine Ridge | MH | Prince George | VA | 376 |
| — |
| 90.2 | % | (1) | 82.4 | % | (1) |
Sunset Beach RV Resort (3) | RV | Cape Charles | VA | — |
| — |
| N/A |
| | N/A |
| |
| Thunderhill Estates | MH | Sturgeon Bay | WI | 266 |
| — |
| 98.5 | % | | 93.6 | % | |
Westward Ho RV Resort & Campground (2) | RV | Glenbeulah | WI | 225 |
| 97 |
| 100.0 | % | | 100.0 | % | |
| Other Total | | | | 22,572 |
| 8,495 |
| 96.0 | % | | 96.7 | % | |
| | | | | | | | | | |
| US TOTAL / AVERAGE | | | | 115,846 |
| 20,477 |
| 96.3 | % | | 96.0 | % | |
| | | | | | | | | | |
| CANADA | | | | | | | | | |
Arran Lake RV Resort & Campground (2) | RV | Allenford | ON | 166 |
| 23 |
| 100.0 | % | | 100.0 | % | |
Craigleith RV Resort & Campground (2) | RV | Clarksburg | ON | 85 |
| 26 |
| 100.0 | % | | 100.0 | % | |
Deer Lake RV Resort & Campground (2) | RV | Huntsville | ON | 179 |
| 62 |
| 100.0 | % | | 100.0 | % | |
Grand Oaks RV Resort & Campground (2) | RV | Cayuga | ON | 234 |
| 44 |
| 100.0 | % | | 100.0 | % | |
Gulliver's Lake RV Resort & Campground (2) | RV | Millgrove | ON | 198 |
| — |
| 100.0 | % | | 100.0 | % | |
Hidden Valley RV Resort & Campground (2) | RV | Normandale | ON | 204 |
| 41 |
| 100.0 | % | | 100.0 | % | |
Lafontaine RV Resort & Campground (2) | RV | Tiny | ON | 210 |
| 53 |
| 100.0 | % | | 100.0 | % | |
Lake Avenue RV Resort & Campground (2) | RV | Cherry Valley | ON | 124 |
| 12 |
| 100.0 | % | | 100.0 | % | |
Pickerel Park RV Resort & Campground (2) | RV | Napanee | ON | 148 |
| 61 |
| 100.0 | % | | 100.0 | % | |
Sherkston Shores Beach Resort & Campground (2) | RV | Sherkston | ON | 1,454 |
| 327 |
| 100.0 | % | | 100.0 | % | |
Silver Birches RV Resort & Campground (2) | RV | Lambton Shores | ON | 133 |
| 29 |
| 100.0 | % | | 100.0 | % | |
Trailside RV Resort & Campground (2) | RV | Seguin | ON | 197 |
| 40 |
| 100.0 | % | | 100.0 | % | |
Willow Lake RV Resort & Campground (2) | RV | Scotland | ON | 371 |
| 2 |
| 100.0 | % | | 100.0 | % | |
Willowood RV Resort & Campground (2) | RV | Amherstburg | ON | 139 |
| 188 |
| 100.0 | % | | 100.0 | % | |
Woodland Lake RV Resort & Campground (2) | RV | Bornholm | ON | 189 |
| 31 |
| 100.0 | % | | 100.0 | % | |
| CANADA TOTAL / AVERAGE | | | | 4,031 |
| 939 |
| 100.0 | % | | 100.0 | % | |
| | | | | | | | | | |
| COMPANY TOTAL / AVERAGE | | | | 119,877 |
| 21,416 |
| 96.4 | % | | 96.1 | % | |
(1) Occupancy in these Properties reflects the fact that these communities are in a lease-up phase following an expansion.expansion, redevelopment or initial construction.
(2) Occupancy percentage excludes transient RV sites. Percentage calculated by dividing revenue producing sites by developed sites. A revenue producing site is defined as a site that is occupied by a paying resident or reserved by a customer with annual or seasonal usage rights. A developed site is defined as an adequate sized parcel of land that has road and utility access which is zoned and licensed (if required) for use as a home site.
(3) We have an ownership interest in Sunset Beach, Strafford, and Chincoteague Island, but do not maintain and operate the property.
(4) Occupancy in these Properties forat 12/31/20182019 reflects redevelopment following asset impairments resulting from Hurricane Irma in September 2017.
(5) No occupancy in 2018 as communities were acquired in 2019.
ITEM 3. LEGAL PROCEEDINGS
We are involved in various legal proceedings arising in the ordinary course of business. All such proceedings, taken together, are not expected to have a material adverse impact on our results of operations or financial condition.
ITEM 4. MINE SAFETY DISCLOSURES
None.
EXECUTIVE OFFICERS OF THE REGISTRANT
The persons listed below are our executive officers.
|
| | | | |
Name | | Age | | Title |
Gary A. Shiffman | | 64 | | Chairman and Chief Executive Officer |
John B. McLaren | | 48 | | President and Chief Operating Officer |
Karen J. Dearing | | 54 | | Executive Vice President, Treasurer, Chief Financial Officer and Secretary |
Jonathan M. Colman | | 63 | | Executive Vice President |
Gary A. Shiffman is our Chairman and Chief Executive Officer and has been a director and an executive officer since our inception in 1993. He is a member of our Executive Committee. He has been actively involved in the management, acquisition, construction and development of manufactured housing communities and has developed an extensive network of industry relationships over the past thirty years. He has overseen the acquisition, rezoning, development, expansion and marketing of numerous manufactured home communities, as well as recreational vehicle communities. Additionally, Mr. Shiffman, through his family-related interests, has had significant direct holdings in various real estate asset classes, which include office, multi-family, industrial, residential and retail. Mr. Shiffman is an executive officer and a director of SHS and all of our other corporate subsidiaries.
John B. McLaren has been in the manufactured housing industry since 1995. He has served as our President since 2014 and as our Chief Operating Officer since 2008. From 2008 to 2014, he served as an Executive Vice President of the Company. From 2005 to 2008, he was Senior Vice President of SHS with overall responsibility for home sales and leasing. Mr. McLaren spent approximately three years as Vice President of Leasing & Service for SHS with responsibility for developing and leading our Rental Program and also has experience in the multi-family REIT segment and the chattel lending industry.
Karen J. Dearing has served as our Chief Financial Officer and Executive Vice President since 2008. She joined us in 1998 as the Director of Finance where she worked extensively with accounting and finance matters related to our ground-up developments and expansions. Ms. Dearing became our Corporate Controller in 2002 and Senior Vice President in 2006. She is responsible for the overall management of our information technology, accounting, tax and finance departments, and all internal and external financial reporting. Prior to working for us, Ms. Dearing had 7.5 years of experience as the Financial Controller of a privately-owned automotive supplier and 4.5 years of experience as a certified public accountant with Deloitte.
Jonathan M. Colman has served as an Executive Vice President since March 2003. He joined us in 1994 as Vice President-Acquisitions and became a Senior Vice President in 1995. A certified public accountant, Mr. Colman has over thirty-five years of experience in the manufactured housing community industry. Prior to joining Sun, he was involved in the acquisition, financing and management of over 75 manufactured housing communities for two of the 10 largest manufactured housing community owners, including Uniprop, Inc. during its syndication of over $90.0 million in public limited partnerships in the late 1980s. Mr. Colman is also a Vice President of all of our corporate subsidiaries.
PART II
| |
| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Market Information
Our common stock has been listed on the NYSE since December 8, 1993, and traded under the symbol “SUI”.
On February 14, 2019,13, 2020, the closing share price of our common stock was $113.68165.97 per share on the NYSE, and there were 238283 holders of record for the 86,380,50293,319,200 outstanding shares of common stock.
On February 14, 2019,13, 2020, the following OP units of the Operating Partnership had (i) 2,720,427 common OP units issued and outstanding, not held by us, which were convertible into an equal number of shares of our common stock, (ii) 1,283,819 Aspen preferred OP units issued and outstanding which were exchangeable for 435,222 shares of our common stock, (iii) 328,991 Series A-1 preferred OP units issued and outstanding which were exchangeable for 802,417 shares of our common stock, (iv) 40,268 Series A-3 preferred OP units issued and outstanding which were exchangeable for 74,917 shares of our common stock, (v) 410,364 Series A-4 preferred OP units issued and outstanding, not held by us, which were exchangeable for 182,384 shares of our common stock, (vi) 314,438 Series C preferred OP units issued and outstanding which were exchangeable for 349,026 shares of our common stock, and (vii) 488,958 Series D preferred OP units issued and outstanding which were exchangeable for 391,166 shares of our common stock.outstanding:
|
| | | | | | |
| OP Units | | OP units issued and outstanding | | Exchangeable shares of common stock |
| Aspen preferred OP units | | 1,283,819 |
| | 399,872 |
|
| Series A-1 preferred OP units | | 307,634 |
| | 750,327 |
|
| Series C preferred OP units | | 310,424 |
| | 344,571 |
|
| Series D preferred OP units | | 488,958 |
| | 391,166 |
|
| Series E preferred OP units | | 90,000 |
| | 62,069 |
|
| Series A-3 preferred OP units | | 40,268 |
| | 74,917 |
|
| Common OP units | | 2,408,210 |
| | 2,408,210 |
|
| | | 4,929,313 |
| | 4,431,132 |
|
We have historically paid regular quarterly distributions to holders of our common stock and common OP units. In addition, we are obligated to make distributions to holders of shares of Series A-4 preferred stock, Aspen preferred OP units, Series A-1 preferred OP units, Series A-3C preferred OP units, Series A-4D preferred OP units, Series CE preferred OP units, and Series DA-3 preferred OP units. See “Structure of the Company” under Part I, Item 1 of this Annual Report on Form 10-K. Our ability to make distributions on our common stock and preferred stock and OP units, payments on our indebtedness, and to fund planned capital expenditures will depend on our ability to generate cash in the future. The decision to declare and pay distributions on shares of our common stock and common OP units in the future, as well as the timing, amount, and composition of any such future distributions, will be at the sole discretion of our Board of Directors in light of conditions then existing, including our earnings, financial condition, capital requirements, debt maturities, the availability of debt and equity capital, applicable REIT and legal restrictions, general overall economic conditions, and other factors.
Securities Authorized for Issuance Under Equity Compensation Plans
The following table reflects information about the securities authorized for issuance under our equity compensation plans as of December 31, 2018:2019:
| | | | | Number of securities to be issued upon exercise of outstanding options, warrants and rights | | Weighted-average exercise price of outstanding options, warrants and rights | | Number of shares of common stock remaining available for future issuance under equity compensation plans (excluding securities reflected in column a) | | Number of securities to be issued upon exercise of outstanding options, warrants and rights | | Weighted-average exercise price of outstanding options, warrants and rights | | Number of shares of common stock remaining available for future issuance under equity compensation plans (excluding securities reflected in column a) |
| Plan Category | | (a) | | (b) | | (c) | | (a) | | (b) | | (c) |
| Equity compensation plans approved by stockholders | | 3,000 |
| | $ | 33.45 |
| | 1,136,194 |
| | 1,500 |
| | $ | 37.35 |
| | 974,864 |
|
| Equity compensation plans not approved by stockholders | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total | | 3,000 |
| | $ | — |
| | 1,136,194 |
| | 1,500 |
| | — |
| | 974,864 |
|
Issuer Purchases of Equity Securities
In November 2004, our Board of Directors authorized us to repurchase up to 1,000,000 shares of our common stock. We have 400,000 common shares remaining in the repurchase program. No common shares were repurchased under this program during 2018 or 2017. There is no expiration date specified for the repurchase program.SUN COMMUNITIES, INC.
Recent Sales of Unregistered Securities
From time to time, we may issue shares of common stock in exchange for OP units that may be tendered to the Operating Partnership for redemption in accordance with the terms and provisions of the limited partnership agreement of the Operating Partnership.
Such shares are issued based on the exchange ratios and formulas described in “Structure of the Company” under Part I, Item 1 of this Annual Report on Form 10-K. Below is the activity of conversions during 2018, 2017,for the quarter and 2016:year ended December 31, 2019:
|
| | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2018 | | Year Ended December 31, 2017 | | Year Ended December 31, 2016 |
| Series | Conversion Rate | Units / Shares | Common Stock | | Units / Shares | Common Stock | | Units/Shares | Common Stock |
| Common OP unit | 1 |
| 20,608 |
| 20,608 |
| | 36,055 |
| 36,055 |
| | 104,106 |
| 104,106 |
|
| Series A-1 preferred OP unit | 2.439 |
| 13,430 |
| 32,752 |
| | 21,919 |
| 53,456 |
| | 20,691 |
| 50,458 |
|
| Series A-4 preferred OP unit | 0.4444 |
| 13,765 |
| 6,116 |
| | 10,000 |
| 4,440 |
| | 120,906 |
| 53,733 |
|
| Series A-4 preferred stock | 0.4444 |
| 22,576 |
| 10,033 |
| | 158,036 |
| 70,238 |
| | 385,242 |
| 171,218 |
|
| Series C preferred OP unit | 1.11 |
| 1,919 |
| 2,130 |
| | 16,806 |
| 18,651 |
| | 7,043 |
| 7,815 |
|
|
| | | | | | | | | | | | |
| | | | | Three Months Ended December 31, 2019 | | Year Ended December 31, 2019 |
| OP units | | Conversion Rate | | Units / Shares | Common Stock | | Units / Shares | Common Stock |
| Common OP units | | 1.0000 | | 42,471 |
| 42,471 |
| | 485,629 |
| 485,629 |
|
| Series A-1 preferred OP units | | 2.4390 | | 6,975 |
| 17,007 |
| | 22,707 |
| 55,370 |
|
| Series A-4 preferred OP units | | 0.4444 | | — |
| — |
| | 4,708 |
| 2,092 |
|
| Series A-4 preferred stock | | 0.4444 | | 1,051,501 |
| 467,320 |
| | 1,062,789 |
| 472,366 |
|
| Series C preferred OP units | | 1.1100 | | — |
| — |
| | 4,014 |
| 4,455 |
|
In addition to the shares of common stock issued pursuant to OP unit conversions above, we issued 298,9001,972,876 shares of common stock totaling $26.4 million on July 27, 2017October 30, 2019 in connection with an acquisition.
All of the securities described above were issued in private placements in reliance on Section 4(a)(2) of the Securities Act, including Regulation D promulgated thereunder, based on certain investment representations made by the parties to whom the securities were issued. No underwriters were used in connection with any of such issuances.
Performance Graph
Set forth below is a line graph comparing the yearly percentage change in the cumulative total shareholder return on our common stock against the cumulative total return of a broad market index composed of all issuers listed on the NYSE and an industry index comprised of fourteen13 publicly traded REITs, for the five year period ending on December 31, 2018.2019. This line graph assumes a $100 investment on December 31, 2013,2014, a reinvestment of distributions and actual increase of the market value of our common stock relative to an initial investment of $100. The$100.The comparisons in this table are required by the SEC and are not intended to forecast or be indicative of possible future performance of our common stock.
Peer Group
We utilize peer group data for quantitative benchmarking against external market participants. We select our peer group based on a number of quantitative and qualitative factors including, but not limited to, revenues, total assets, market capitalization, industry, sub-industry, location, total shareholder return history, executive compensation components, and peer decisions made by other companies. From time to time, we update our peer group based on analysis of the aforementioned factors and application of judgment. During 2018,2019, we updated our peer group, as shown in the “SUI New Peer Group” caption in the table below.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Period Ending |
| Index | | 12/31/13 | | 12/31/14 | | 12/31/15 | | 12/31/16 | | 12/31/17 | | 12/31/18 |
| Sun Communities, Inc. | | $ | 100.00 |
| | $ | 149.16 |
| | $ | 175.79 |
| | $ | 203.42 |
| | $ | 254.12 |
| | $ | 286.81 |
|
| SNL U.S. REIT Residential Index | | $ | 100.00 |
| | $ | 136.85 |
| | $ | 159.22 |
| | $ | 167.16 |
| | $ | 181.83 |
| | $ | 184.77 |
|
| NYSE Composite Index | | $ | 100.00 |
| | $ | 106.75 |
| | $ | 102.38 |
| | $ | 114.61 |
| | $ | 136.07 |
| | $ | 123.89 |
|
SUI New Peer Group (1) | | $ | 100.00 |
| | $ | 138.90 |
| | $ | 159.06 |
| | $ | 163.79 |
| | $ | 167.48 |
| | $ | 163.60 |
|
SUI Old Peer Group (2) | | $ | 100.00 |
| | $ | 137.53 |
| | $ | 158.50 |
| | $ | 167.15 |
| | $ | 174.93 |
| | $ | 175.02 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended |
| Index | | December 31, 2014 | | December 31, 2015 | | December 31, 2016 | | December 31, 2017 | | December 31, 2018 | | December 31, 2019 |
| Sun Communities, Inc. | | $ | 100.00 |
| | $ | 117.89 |
| | $ | 136.51 |
| | $ | 170.55 |
| | $ | 192.54 |
| | $ | 290.57 |
|
| SNL U.S. REIT Residential Index | | $ | 100.00 |
| | $ | 116.35 |
| | $ | 122.15 |
| | $ | 132.87 |
| | $ | 135.24 |
| | $ | 172.60 |
|
| NYSE Composite Index | | $ | 100.00 |
| | $ | 95.91 |
| | $ | 107.36 |
| | $ | 127.46 |
| | $ | 116.06 |
| | $ | 145.66 |
|
SUI New Peer Group (1) | | $ | 100.00 |
| | $ | 118.97 |
| | $ | 120.98 |
| | $ | 128.53 |
| | $ | 127.38 |
| | $ | 159.20 |
|
SUI Old Peer Group (2) | | $ | 100.00 |
| | $ | 114.52 |
| | $ | 117.98 |
| | $ | 120.65 |
| | $ | 117.90 |
| | $ | 146.89 |
|
(1) SUI new peer group includes: American Campus Communities, Inc., Apartment Investment and Management Company, AvalonBay Communities, Inc., Brandywine Realty Trust, Camden Property Trust, CubeSmart, Equity Lifestyles Properties, Inc., Essex Property Trust, Inc., Mid-America Apartment Communities, Inc., Macerich Company, Kimco Realty Corp., UDR,Extra Space Storage Inc., Federal Realty Investment Trust, Invitation Homes, Inc., Mid-America Apartment Communities, Inc., The Macerich Company, and Weingarten Realty Investors.UDR, Inc.
(2) SUI old peer group included: American Campus Communities, Inc., Apartment Investment and Management Company, AvalonBay Communities, Inc., Brandywine Realty Trust, Camden Property Trust, CubeSmart, Equity Lifestyles Properties, Inc., Essex Property Trust, Inc., Federal Realty Investment Trust, Kimco Realty Corp., The Macerich Company, Mid-America Apartment Communities, Inc., Tanger Factory Outlet Centers, Inc., Taubman Centers, Inc., UDR, Inc., and Weingarten Realty Investors.
The information included under the heading “Performance Graph” is not to be treated as “soliciting material” or as “filed” with the SEC, and is not incorporated by reference into any filing by the Company under the Securities Act or the Exchange Act that is made on, before or after the date of filing of this Annual Report on Form 10-K.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial information on a historical basis. The historical financial data has been derived from our historical financial statements. The following information should be read in conjunction with the information included
in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the Consolidated Financial Statements and the Notes thereto. In addition to the results presented in accordance with GAAP below, we have provided net operating income (“NOI”) and funds from operations (“FFO”) as a supplemental performance measures.measure. Refer to Non-GAAP Financial Measures in Item 7 below for additional information.
|
| | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2018 | | 2017 (1) | | 2016 (1) | | 2015 (1) | | 2014 (1) |
| | (In thousands, except for share related data) |
| FINANCIAL INFORMATION | | | | | | | | | |
| Total revenues | $ | 1,126,825 |
| | $ | 982,570 |
| | $ | 833,778 |
| | $ | 674,731 |
| | $ | 484,259 |
|
| Net income | $ | 120,158 |
| | $ | 81,819 |
| | $ | 31,471 |
| | $ | 170,473 |
| | $ | 33,196 |
|
| Net income attributable to Sun Communities, Inc. common stockholders | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
| | $ | 137,325 |
| | $ | 22,376 |
|
| Earnings per share - basic | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.27 |
| | $ | 2.53 |
| | $ | 0.54 |
|
| Earnings per share - diluted | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.26 |
| | $ | 2.52 |
| | $ | 0.54 |
|
| | | | | | | | | | |
| Cash distributions declared per common share | $ | 2.84 |
| | $ | 2.68 |
| | $ | 2.60 |
| | $ | 2.60 |
| | $ | 2.60 |
|
| | | | | | | | | | |
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities | $ | 385,615 |
| | $ | 320,119 |
| | $ | 225,653 |
| | $ | 192,128 |
| | $ | 134,549 |
|
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities | $ | 394,369 |
| | $ | 337,384 |
| | $ | 266,131 |
| | $ | 210,559 |
| | $ | 148,356 |
|
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | $ | 4.48 |
| | $ | 3.95 |
| | $ | 3.22 |
| | $ | 3.31 |
| | $ | 3.06 |
|
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | $ | 4.58 |
| | $ | 4.17 |
| | $ | 3.79 |
| | $ | 3.63 |
| | $ | 3.37 |
|
| | | | | | | | | | |
| BALANCE SHEETS | | | | | | | | | |
| Total assets | $ | 6,710,026 |
| | $ | 6,111,957 |
| | $ | 5,870,776 |
| | $ | 4,181,799 |
| | $ | 2,925,546 |
|
| Total debt | $ | 3,124,303 |
| | $ | 3,079,238 |
| | $ | 3,110,042 |
| | $ | 2,336,297 |
| | $ | 1,819,941 |
|
| Total liabilities | $ | 3,479,112 |
| | $ | 3,405,204 |
| | $ | 3,441,605 |
| | $ | 2,562,421 |
| | $ | 1,997,540 |
|
|
| | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 (1) | | December 31, 2017 (1) | | December 31, 2016 (1) | | December 31, 2015 (1) |
| | (In thousands, except for share related data) |
| Financial Information | | | | | | | | | |
| Total revenues | $ | 1,264,037 |
| | $ | 1,126,825 |
| | $ | 982,570 |
| | $ | 833,778 |
| | $ | 674,731 |
|
| Net income | $ | 177,379 |
| | $ | 120,158 |
| | $ | 81,819 |
| | $ | 31,471 |
| | $ | 170,473 |
|
| Net Income attributable to Sun Communities Inc. common stockholders | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
| | $ | 137,325 |
|
| Basic earnings per share | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.27 |
| | $ | 2.53 |
|
| Diluted earnings per share | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.26 |
| | $ | 2.52 |
|
| | | | | | | | | | |
| Cash distributions declared per common share | $ | 3.00 |
| | $ | 2.84 |
| | $ | 2.68 |
| | $ | 2.60 |
| | $ | 2.60 |
|
| | | | | | | | | | |
| FFO common stockholders and dilutive convertible securities | $ | 440,687 |
| | $ | 385,615 |
| | $ | 320,119 |
| | $ | 225,653 |
| | $ | 192,128 |
|
| Core FFO common stockholders and dilutive convertible securities | $ | 456,932 |
| | $ | 394,369 |
| | $ | 337,384 |
| | $ | 266,131 |
| | $ | 210,559 |
|
| FFO common stockholders and dilutive convertible securities per share - fully diluted | $ | 4.75 |
| | $ | 4.48 |
| | $ | 3.95 |
| | $ | 3.22 |
| | $ | 3.31 |
|
| Core FFO common stockholders and dilutive convertible securities per share - fully diluted | $ | 4.92 |
| | $ | 4.58 |
| | $ | 4.17 |
| | $ | 3.79 |
| | $ | 3.63 |
|
| | | | | | | | | | |
| Balance Sheets | | | | | | | | | |
| Total assets | $ | 7,802,060 |
| | $ | 6,710,026 |
|
| $ | 6,111,957 |
| | $ | 5,870,776 |
| | $ | 4,181,799 |
|
| Total debt | $ | 3,434,402 |
| | $ | 3,124,303 |
|
| $ | 3,079,238 |
| | $ | 3,110,042 |
| | $ | 2,336,297 |
|
| Total liabilities | $ | 3,848,104 |
| | $ | 3,479,112 |
|
| $ | 3,405,204 |
| | $ | 3,441,605 |
| | $ | 2,562,421 |
|
(1) Financial information has been revised to reflect certain reclassifications in prior periods to conform to current period presentation.
| |
| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION |
The following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements and accompanying footnotes thereto included in this Annual Report on Form 10-K. In addition to the results presented in accordance with GAAP below, we have provided NOI and FFO as supplemental performance measures. Refer to Non-GAAP Financial Measures in this Item 7 for additional information.
OVERVIEW
We are a fully integrated, self-administered and self-managed REIT. As of December 31, 2018,2019, we owned and operated or hadheld an interest in a portfolio of 371422 developed properties located in 33 states throughout the United States and Ontario,one province in Canada, including 230266 MH communities, 110122 RV communities, and 3134 properties containing both MH and RV sites. We have been in the business of acquiring, operating, developing, and expanding MH and RV communities since 1975. We lease individual sites with utility access for placement of manufactured homes and RVs to our customers. We are also engaged through SHS in the marketing, selling, and leasing of new and pre-owned homes to current and future residents in our communities. The operations of SHS support and enhance our occupancy levels, property performance, and cash flows.
EXECUTIVE SUMMARY
2018 Accomplishments:2019 Accomplishments
Total revenues for 20182019 increased 14.712.2 percent to $1.1$1.3 billion.
Core FFO for 20182019 was $4.58$4.92 per diluted share and OP unit, an increase of 9.87.4 percent over 2017.2018.
Achieved Same Community NOI growth of 6.77.3 percent.
Gained 2,6002,674 revenue producing sites.
Reached Same Community occupancy of 98.0 percent, excluding approximately 2,100 recently completed, but vacant expansion sites.
Sold 3,629 homes, an increase of 10.6 percent over 2017.98.4 percent.
Brokered homes sales increased by 7.03.9 percent to 2,231 in 2019 as compared to 2,147 in 2018 as compared to 2,006 in 2017.2018.
Achieved 1-year, 3-year and 5-year total shareholder return of 14.250.9 percent, 66.9112.8 percent and 191.3190.2 percent, respectively, outperforming the MSCI US REIT, Russell 1000, U.S. REIT Residential, and S&P 500 indexes.
Delivered approximately 1,3001,230 expansion sites in 1316 communities.
| |
| • | Completed the construction of approximately 1,100 sites at four ground-up developments and one re-development community. |
Acquired 20the Jensen Portfolio containing 31 MH communities in desirable areas along the Atlantic Coast.
Including the Jensen Portfolio, acquired 47 communities, totaling over 10,000 sites, for a total considerationpurchase price of $349.1$815.2 million.
Entered into a strategic investment with Ingenia Communities Group (“Ingenia”) along with a development joint venture.
Property Operations:Operations
Occupancy in our Properties, as well as our ability to increase rental rates, directly affectsaffect revenues. Our revenue streams are predominantly derived from customers renting our sites on a long-term basis. Our Same Community properties continue to achieve revenue and occupancy increases which drive continued NOI growth. We continue to sell homes at a high level in our communities and expect this trend to continue.
| | | | | Year Ended December 31, | | Year Ended |
| Portfolio Information: | | 2018 | | 2017 | | 2016 | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
Occupancy % - Total Portfolio - MH and RV blended (1) | | 96.1 | % | | 95.8 | % | | 96.2 | % | | 96.4 | % | | 96.1 | % | | 95.8 | % |
Occupancy % - Same Community - MH and RV blended (1)(2)(3) | | 98.0 | % | | 97.3 | % | | 96.6 | % | | 98.4 | % | | 98.0 | % | | 97.3 | % |
| Core FFO | | $ | 4.58 |
| | $ | 4.17 |
| | $ | 3.79 |
| | $ | 4.92 |
| | $ | 4.58 |
| | $ | 4.17 |
|
NOI - Total Portfolio (in thousands) | | $ | 533,321 |
| | $ | 479,662 |
| | $ | 403,337 |
| | $ | 597,406 |
| | $ | 533,321 |
| | $ | 479,662 |
|
NOI - Same Community (in thousands) | | $ | 512,357 |
| | $ | 382,210 |
| | $ | 332,919 |
| | $ | 558,296 |
| | $ | 539,511 |
| | $ | 386,807 |
|
| Homes Sold | | 3,629 |
| | 3,282 |
| | 3,172 |
| | 3,439 |
| | 3,629 |
| | 3,282 |
|
| Number of Occupied Rental Homes | | 10,994 |
| | 11,074 |
| | 10,733 |
| | 11,325 |
| | 10,994 |
| | 11,074 |
|
(1) Occupancy percent includes annual RV sites and excludes transient RV sites.
(2) Occupancy percent excludes recently completed but vacant expansion sites.
(3) Same community is based on the as reported year end same community count for each respective year.
Acquisition Activity:Activity
During the past three years, we have completed acquisitions of over 13075 properties with over 36,000approximately 18,000 sites located in high growth areas and retirement and vacation destinations such as California, Florida, Texas, Arizona and Utah along withthe Eastern United States coastal areas and Ontario, Canada.areas.
During 2018,2019, we acquired 2047 (1) communities, as detailed below:
|
| | | | | | | | | | | | |
| Community Name | | Type | | Sites | | Development Sites | | State | | Month Acquired |
| Slickrock Campground | | RV | | 193 |
| | — |
| | UT | | December |
| Pandion Ridge | | RV | | 142 |
| | 351 |
| | AL | | November |
Jensen Portfolio (2) | | MH | | 5,230 |
| | 466 |
| | Various | | October |
| Glen Ellis | | RV | | 244 |
| | 40 |
| | NH | | September |
Leisure Point Resort (3) | | MH / RV | | 502 |
| | — |
| | DE | | September |
| Reunion Lake | | RV | | 202 |
| | 69 |
| | LA | | July |
| River Plantation | | RV | | 309 |
| | — |
| | TN | | May |
| Massey’s Landing RV | | RV | | 291 |
| | — |
| | DE | | February |
Shelby Properties (4) | | MH | | 1,308 |
| | — |
| | MI | | February |
| Buena Vista | | MH | | 400 |
| | — |
| | AZ | | February |
Country Village Estates (5) | | MH | | 518 |
| | — |
| | OR | | January |
| Hid’n Pines RV | | RV | | 321 |
| | — |
| | ME | | January |
| Hacienda del Rio | | MH (Age-Restricted) | | 730 |
| | — |
| | FL | | January |
| | | Total | | 10,390 |
| | 926 |
| | | | |
(1) Refer to Note 3, “Acquisitions” for information on the Chula Vista, Chincoteague Island KOA RV Resort, and Strafford/Lake Winnipesaukee South KOA RV Resort ground leases not included in the table below:
|
| | | | | | | | | | | | | | |
| Property/Portfolio | | State | | Type | | Total Consideration (in thousands) | | Number of sites | | Expansion Sites |
| Leaf Verde RV Resort | | Arizona | | RV | | $ | 11,647 |
| | 376 |
| | — |
|
| Archview RV Resort & Campground | | Utah | | RV | | 14,550 |
| | 114 |
| | 50 |
|
| Petoskey KOA RV Resort | | Michigan | | RV | | 9,000 |
| | 210 |
| | — |
|
| The Sands RV & Golf Resort | | California | | RV | | 14,250 |
| | 507 |
| | — |
|
Sun NG RV Resorts LLC (1)(2) | | Various | | RV | | 241,878 |
| | 2,700 |
| | 940 |
|
| Silver Creek RV Resort | | Michigan | | RV | | 7,250 |
| | 264 |
| | 176 |
|
Highway West (1) | | Utah and Oregon | | RV | | 36,500 |
| | 536 |
| | — |
|
| Compass RV Resort | | Florida | | RV | | 14,000 |
| | 175 |
| | — |
|
| Total | | | | | | $ | 349,075 |
| | 4,882 |
| | 1,166 |
|
(1) Highway West and Sun NG RV Resorts LLC are comprised of 4 RV and 10 RV resorts, respectively.above.
(2) Refer to Note 8, “Consolidated Variable Interest Entities,” Note 9, “DebtContains 31 communities located in CT, GA, MD, NH, NJ, NY, NC and LinesSC. In conjunction with the acquisition, we issued 1,972,876 shares of Credit,”common stock, net of fractional shares paid in cash.
(3) Contains 201 MH sites and Note 10, “Equity and Mezzanine Securities” in our accompanying Consolidated Financial Statements for additional information.301 RV sites.
(4) Contains two MH communities.
(5) In conjunction with the acquisition, we issued Series D Preferred OP units. As of December 31, 2019, 488,958 Series D Preferred OP units were outstanding.
In 2018, we acquired the following land for expansion / development:
|
| | | | | | | | | | | | | |
| Name | | Location | | Type | | Expansion / Development Sites | | Cost (millions) | | Month Acquired |
| Ocean West | | McKinleyville, CA | | MH | | 26 |
| | $ | 0.2 |
| | December |
| Water Oak Country Club Estates | | Lady Lake, FL | | MH | | 296 |
| | $ | 1.9 |
| | November |
| Oak Crest | | Austin, TX | | MH | | 220 |
| | $ | 4.2 |
| | October |
| Pecan Park RV Resort | | Jacksonville, FL | | RV | | 158 |
| | $ | 1.3 |
| | September |
| Smith Creek Crossing | | Granby, CO | | MH | | 310 |
| | $ | 0.9 |
| | September |
| Apple Carr | | Egelston, MI | | MH | | 121 |
| | $ | 0.2 |
| | May |
| River Run Ranch | | Granby, CO | | MH / RV | | 1,144 |
| | $ | 5.3 |
| | May |
| | | | | Total | | 2,275 |
| | $ | 14.0 |
| | |
Expansion Activity:Ground-up Developments - During the year ended December 31, 2019, we constructed nearly 1,100 sites at four ground-up development communities and one re-development located in Colorado, Florida, North Carolina and South Carolina. We expect to construct 550 - 750 sites in 2020.
Expansions - We have been focused on expansion opportunities adjacent to our existing communities, and we have developed over 3,5004,600 sites within the past three years. We have expanded approximately 1,3001,230 sites at 1316 communities in 2018. The total cost to construct the sites was $56.7 million.2019. We continue to expand our Properties utilizing our inventory of owned and entitled land (approximately 11,30010,300 sites available for development)development in 84 communities) and expect to construct over 1,6001,000 - 1,200 additional expansion sites in 2019.2020.
Markets:Markets
Our Properties are largely concentrated in Florida, Michigan, Texas and California. We have expanded our market share in Californiamultiple states through recent acquisitions and increased our property holdings in other high growth areas of the U.S. including retirement and vacation destinations.
We have also experienced strong revenue growth through recent acquisitions of RV communities. The age demographic of RV communities is attractive, as the population of retirement age baby boomers in the U.S. is growing. RV communities have become a trending vacation opportunity not only for the retiree population, but as an affordable vacation alternative for families.families and millennials.
The following table identifies our markets by total sites:
| | | | December 31, 2018 | | December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Major Market | Number of Properties | Total Sites | % of Total Sites | | Number of Properties | Total Sites | % of Total Sites | | Number of Properties | | Total Sites | | % of Total Sites | | Number of Properties | | Total Sites | | % of Total Sites |
| Florida | 124 |
| 43,791 |
| 34.1 | % | | 123 |
| 43,328 |
| 35.5 | % | | 125 |
| | 44,695 |
| | 31.6 | % | | 124 |
| | 43,791 |
| | 34.1 | % |
| Michigan | 70 |
| 27,080 |
| 21.1 | % | | 68 |
| 26,137 |
| 21.4 | % | | 72 |
| | 28,475 |
| | 20.2 | % | | 70 |
| | 27,080 |
| | 21.1 | % |
| Texas | 23 |
| 8,674 |
| 6.8 | % | | 21 |
| 7,974 |
| 6.5 | % | | 23 |
| | 9,238 |
| | 6.5 | % | | 23 |
| | 8,674 |
| | 6.8 | % |
| California | 30 |
| 7,706 |
| 6.0 | % | | 27 |
| 6,498 |
| 5.3 | % | | 31 |
| | 7,933 |
| | 5.6 | % | | 30 |
| | 7,706 |
| | 6.0 | % |
| Arizona | 12 |
| 5,259 |
| 4.1 | % | | 11 |
| 4,882 |
| 4.0 | % | | 13 |
| | 5,660 |
| | 4.0 | % | | 12 |
| | 5,259 |
| | 4.1 | % |
| Ontario, Canada | 15 |
| 4,891 |
| 3.8 | % | | 15 |
| 4,882 |
| 4.0 | % | | 15 |
| | 4,970 |
| | 3.5 | % | | 15 |
| | 4,891 |
| | 3.8 | % |
| Indiana | 11 |
| 3,608 |
| 2.8 | % | | 11 |
| 3,420 |
| 2.8 | % | | 11 |
| | 3,621 |
| | 2.6 | % | | 11 |
| | 3,608 |
| | 2.8 | % |
| New Jersey | | | 8 |
| | 3,159 |
| | 2.2 | % | | 7 |
| | 2,916 |
| | 2.3 | % |
| Ohio | 9 |
| 2,920 |
| 2.3 | % | | 9 |
| 2,904 |
| 2.4 | % | | 9 |
| | 2,920 |
| | 2.1 | % | | 9 |
| | 2,920 |
| | 2.3 | % |
| New Jersey | 7 |
| 2,916 |
| 2.3 | % | | 7 |
| 2,917 |
| 2.4 | % | |
| Colorado | 8 |
| 2,472 |
| 1.9 | % | | 8 |
| 2,481 |
| 2.0 | % | | 10 |
| | 2,714 |
| | 1.9 | % | | 8 |
| | 2,472 |
| | 1.9 | % |
| New York | | | 8 |
| | 2,314 |
| | 1.6 | % | | 7 |
| | 2,118 |
| | 1.6 | % |
| South Carolina | | | 6 |
| | 2,285 |
| | 1.6 | % | | 1 |
| | 588 |
| | 0.5 | % |
| New Hampshire | | | 10 |
| | 2,236 |
| | 1.6 | % | | 2 |
| | 682 |
| | 0.5 | % |
| Illinois | 5 |
| 2,150 |
| 1.6 | % | | 5 |
| 2,150 |
| 1.8 | % | | 5 |
| | 2,150 |
| | 1.5 | % | | 5 |
| | 2,150 |
| | 1.6 | % |
| New York | 7 |
| 2,118 |
| 1.6 | % | | 6 |
| 1,757 |
| 1.4 | % | |
| Connecticut | | | 16 |
| | 2,005 |
| | 1.4 | % | | 1 |
| | 149 |
| | 0.1 | % |
| Maine | 6 |
| 1,595 |
| 1.2 | % | | 6 |
| 1,595 |
| 1.3 | % | | 7 |
| | 1,911 |
| | 1.4 | % | | 6 |
| | 1,595 |
| | 1.2 | % |
| Maryland | | | 6 |
| | 1,825 |
| | 1.3 | % | | 4 |
| | 1,382 |
| | 1.1 | % |
| Delaware | | | 4 |
| | 1,709 |
| | 1.2 | % | | 2 |
| | 916 |
| | 0.7 | % |
| Pennsylvania | 4 |
| 1,519 |
| 1.2 | % | | 3 |
| 1,277 |
| 1.1 | % | | 4 |
| | 1,534 |
| | 1.1 | % | | 4 |
| | 1,519 |
| | 1.2 | % |
| Maryland | 4 |
| 1,382 |
| 1.1 | % | | 3 |
| 1,156 |
| 1.0 | % | |
| Georgia | 3 |
| 1,140 |
| 0.9 | % | | 3 |
| 1,139 |
| 0.9 | % | | 4 |
| | 1,355 |
| | 1.0 | % | | 3 |
| | 1,140 |
| | 0.9 | % |
| Virginia | 5 |
| 1,031 |
| 0.8 | % | | 4 |
| 718 |
| 0.6 | % | | 6 |
| | 1,084 |
| | 0.8 | % | | 5 |
| | 1,031 |
| | 0.8 | % |
| Oregon | | | 4 |
| | 1,077 |
| | 0.8 | % | | 3 |
| | 561 |
| | 0.4 | % |
| Missouri | 2 |
| 976 |
| 0.8 | % | | 2 |
| 976 |
| 0.8 | % | | 2 |
| | 976 |
| | 0.7 | % | | 2 |
| | 976 |
| | 0.8 | % |
| Delaware | 2 |
| 916 |
| 0.7 | % | | 2 |
| 916 |
| 0.8 | % | |
| New Hampshire | 2 |
| 682 |
| 0.5 | % | | — |
| — |
| — | % | |
| North Carolina | | | 5 |
| | 954 |
| | 0.7 | % | | 3 |
| | 671 |
| | 0.5 | % |
| Utah | | | 5 |
| | 753 |
| | 0.5 | % | | 4 |
| | 562 |
| | 0.4 | % |
| Tennessee | | | 3 |
| | 700 |
| | 0.5 | % | | 2 |
| | 392 |
| | 0.3 | % |
| Massachusetts | 2 |
| 679 |
| 0.5 | % | | 2 |
| 680 |
| 0.6 | % | | 2 |
| | 671 |
| | 0.5 | % | | 2 |
| | 679 |
| | 0.5 | % |
| North Carolina | 3 |
| 671 |
| 0.5 | % | | 3 |
| 672 |
| 0.6 | % | |
| South Carolina | 1 |
| 588 |
| 0.5 | % | | 1 |
| 588 |
| 0.5 | % | |
| Wisconsin | 2 |
| 588 |
| 0.5 | % | | 2 |
| 548 |
| 0.4 | % | | 2 |
| | 588 |
| | 0.4 | % | | 2 |
| | 588 |
| | 0.5 | % |
| Utah | 4 |
| 562 |
| 0.4 | % | | — |
| — |
| — | % | |
| Oregon | 3 |
| 561 |
| 0.4 | % | | 2 |
| 473 |
| 0.4 | % | |
| Minnesota | 1 |
| 475 |
| 0.4 | % | | 1 |
| 475 |
| 0.4 | % | | 1 |
| | 475 |
| | 0.3 | % | | 1 |
| | 475 |
| | 0.4 | % |
| Iowa | 1 |
| 413 |
| 0.3 | % | | 1 |
| 413 |
| 0.3 | % | | 1 |
| | 413 |
| | 0.3 | % | | 1 |
| | 413 |
| | 0.3 | % |
| Tennessee | 2 |
| 392 |
| 0.3 | % | | 1 |
| 237 |
| 0.2 | % | |
| Nevada | 1 |
| 324 |
| 0.3 | % | | 1 |
| 324 |
| 0.3 | % | | 1 |
| | 324 |
| | 0.2 | % | | 1 |
| | 324 |
| | 0.3 | % |
| Montana | 1 |
| 226 |
| 0.2 | % | | 1 |
| 226 |
| 0.2 | % | | 1 |
| | 226 |
| | 0.2 | % | | 1 |
| | 226 |
| | 0.2 | % |
| Connecticut | 1 |
| 149 |
| 0.1 | % | | 1 |
| 149 |
| 0.1 | % | |
| Louisiana | | | 1 |
| | 201 |
| | 0.1 | % | | — |
| | — |
| | — | % |
| Alabama | | | 1 |
| | 142 |
| | 0.1 | % | | — |
| | — |
| | — | % |
| | 371 |
| 128,454 |
|
|
| | 350 |
| 121,892 |
| | | 422 |
| | 141,293 |
| | | | 371 |
| | 128,454 |
| | |
NON-GAAP FINANCIAL MEASURES
In addition to the results reported in accordance with GAAP in our “Results of Operations” below, we have provided information regarding NOI and FFO as supplemental performance measures. We believe NOI and FFO are appropriate measures given their wide use by and relevance to investors and analysts following the real estate industry. NOI provides a measure of rental operations and does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses. FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation/amortization of real estate assets. In addition, NOI and FFO are commonly used in various ratios, pricing multiples/yields and returns and valuation calculations used to measure financial position, performance and value.
NOI is derived from revenues minus property operating expenses and real estate taxes. NOI does not represent cash generated fromis a non-GAAP financial measure that we believe is helpful to investors as a supplemental measure of operating activities in accordance withperformance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. We use 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 our properties rather than of the Company overall.
We believe that GAAP andnet income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) (determined in accordance with GAAP) as an indication of the Company’sour financial performance or to be an alternative toGAAP cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’sour liquidity; nor is it indicative of funds available for the Company’sour cash needs, including itsour ability to make cash distributions. The Company believes that net income (loss) is the most directly comparable GAAP measurement to NOI. 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. The Company believes that NOI is helpful to investors as a 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 management tool 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.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as GAAP net income (loss) computed in accordance with GAAP,, excluding gains or losses(or losses) from sales of depreciable operating property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company considers FFO to beis a non-GAAP financial measure that management believes is a useful supplemental measure for reviewing comparativeof our operating and financial performance because, byperformance. 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,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 that 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. FFO is computed in accordance with the Company’s interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than the Company. The CompanyWe also usesuse FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of our core business (“Core FFO”). We believe that thisCore FFO provides investors with another financial measureenhanced comparability for investor evaluations of our operating performance that is more comparable when evaluating period over periodperiod-over-period results.
We believe 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 an adjuncta supplement to GAAP net income (loss) and not as an alternative to net income (loss). The principal limitation of FFO is that it does not represent cash flow from operations as defined by GAAP and is a supplemental measure of performance that does not replace net income (loss) as a measure of performance or net cash provided by operating activities as a measure of liquidity. In addition,it. Further, 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 only provides investors with an additional performance measure that, when combined with measures computedis calculated in accordance with GAAP such as net income (loss), cash flow from operating activities, investing activities and financing activities, provide investors with an indicationour interpretation of our ability to service debt and to fund acquisitions and other expenditures. Other REITs may use different methods for calculating FFO, accordingly, our FFOstandards established by NAREIT, which may not be comparable to FFO reported by other REITs.
RESULTS OF OPERATIONS
We report operating results under two segments: Real Property Operations and Home Sales and Rentals. The Real Property Operations segment owns, operates, develops, or has an interest in, a portfolio of MH and RV communities throughout the U.S. and in Canada, and is in the business of acquiring, operating, and expanding MH and RV communities. The Home Sales and Rentals segment offers MH and RV park model sales and leasing services to tenants and prospective tenants of our communities. We evaluate segment operating performance based on NOI and gross profit. Refer to Note 12, “Segment Reporting,” in our accompanying Consolidated Financial Statements for additional information.
SUMMARY STATEMENTS OF OPERATIONSSummary Statements of Operations
The following tables reconcile the Net income attributable to Sun Communities, Inc. common stockholders to NOI and summarize our consolidated financial results for the years ended December 31, 2019, 2018, 2017, and 20162017 (in thousands):
| | | | | Years Ended | | Year Ended |
| | | 2018 | | 2017 | | 2016 | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Net income attributable to Sun Communities, Inc. common stockholders | | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
| |
| Net Income attributable to Sun Communities, Inc. common stockholders | | | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
|
| Other revenues | | (27,057 | ) | | (24,874 | ) | | (21,150 | ) | | (31,984 | ) | | (27,057 | ) | | (24,874 | ) |
| Home selling expenses | | 15,722 |
| | 12,457 |
| | 9,744 |
| | 14,690 |
| | 15,722 |
| | 12,457 |
|
| General and administrative | | 81,438 |
| | 74,232 |
| | 63,662 |
| |
| Transaction costs | | 472 |
| | 9,801 |
| | 31,914 |
| |
| General and administrative expenses | | | 93,964 |
| | 81,429 |
| | 83,973 |
|
| Catastrophic weather related charges, net | | 92 |
| | 8,352 |
| | 1,172 |
| | 1,737 |
| | 92 |
| | 8,352 |
|
| Depreciation and amortization | | 287,262 |
| | 261,536 |
| | 221,770 |
| | 328,067 |
| | 287,262 |
| | 261,536 |
|
| Loss on extinguishment of debt | | 2,657 |
| | 6,019 |
| | 1,127 |
| | 16,505 |
| | 1,190 |
| | 4,676 |
|
| Interest expense | | 132,783 |
| | 130,242 |
| | 122,315 |
| | 137,851 |
| | 134,250 |
| | 131,585 |
|
| Remeasurement of marketable securities | | 3,639 |
| | — |
| | — |
| |
| Other expense / (income), net | | 6,453 |
| | (8,982 | ) | | 4,676 |
| |
| (Gain) / loss on remeasurement of marketable securities | | | (34,240 | ) | | 3,639 |
| | — |
|
| Other (income) / expense, net | | | (3,457 | ) | | 6,453 |
| | (8,982 | ) |
| Income from nonconsolidated affiliates | | | (1,374 | ) | | (790 | ) | | — |
|
| Current tax expense | | 595 |
| | 446 |
| | 683 |
| | 1,095 |
| | 595 |
| | 446 |
|
| Deferred tax benefit | | (507 | ) | | (582 | ) | | (400 | ) | | (222 | ) | | (507 | ) | | (582 | ) |
| Income from nonconsolidated affiliates | | (646 | ) | | — |
| | (500 | ) | |
| Preferred return to preferred OP units | | 4,486 |
| | 4,581 |
| | 5,006 |
| |
| Preferred return to preferred OP units / equity | | | 6,058 |
| | 4,486 |
| | 4,581 |
|
| Amounts attributable to noncontrolling interests | | 8,443 |
| | 5,055 |
| | 150 |
| | 9,768 |
| | 8,443 |
| | 5,055 |
|
| Preferred stock distribution | | 1,736 |
| | 7,162 |
| | 8,946 |
| | 1,288 |
| | 1,736 |
| | 7,162 |
|
| NOI/Gross Profit | | $ | 623,061 |
| | $ | 550,466 |
| | $ | 466,484 |
| |
| NOI / Gross Profit | | | $ | 700,011 |
| | $ | 622,436 |
| | $ | 550,406 |
|
|
| | | | | | | | | | | | |
| | | Years Ended |
| | | 2018 | | 2017 | | 2016 |
| Real Property NOI | | $ | 533,321 |
| | $ | 479,662 |
| | $ | 403,337 |
|
| Rental Program NOI | | 96,173 |
| | 92,268 |
| | 85,019 |
|
| Home Sales NOI/Gross profit | | 42,698 |
| | 32,294 |
| | 30,087 |
|
| Ancillary NOI/Gross profit | | 16,484 |
| | 10,075 |
| | 9,641 |
|
Site rent from Rental Program (included in Real Property NOI) (1) | | (65,615 | ) | | (63,833 | ) | | (61,600 | ) |
| NOI/Gross profit | | $ | 623,061 |
| | $ | 550,466 |
| | $ | 466,484 |
|
|
| | | | | | | | | | | | |
| | | Year Ended |
| | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Real Property NOI | | $ | 597,406 |
| | $ | 533,321 |
| | $ | 479,662 |
|
| Home Sales NOI / Gross Profit | | 47,579 |
| | 42,698 |
| | 32,294 |
|
| Rental Program NOI | | 104,382 |
| | 95,968 |
| | 92,222 |
|
| Ancillary NOI / Gross Profit | | 19,449 |
| | 16,064 |
| | 10,061 |
|
Site rent from Rental Program (included in Real Property NOI) (1) | | (68,805 | ) | | (65,615 | ) | | (63,833 | ) |
| NOI / Gross Profit | | $ | 700,011 |
| | $ | 622,436 |
| | $ | 550,406 |
|
(1)The renter’s monthly payment includes the site rent and an amount attributable to the leasing of the home.home lease. The site rent is reflected in the Real Property Operations segment.Operations’ segment revenue. For purposes of management analysis, the site rent is included in the Rental Program revenue to evaluate the incremental revenue gains associated with the implementation of the Rental Program, and to assess the overall growth and performance of the Rental Program and financial impact on ourthe Company’s operations.
COMPARISON OF THE YEARS ENDED DECEMBERComparison of the Years Ended December 31, 2019, 2018 ANDand 2017
REAL PROPERTY OPERATIONS – TOTAL PORTFOLIOReal Property Operations - Total Portfolio
The following tables reflect certain financial and other information for our Total Portfolio as of and for the years ended December 31, 2019, 2018 and 2017:
| | | | | Year Ended December 31, | | | | | Year Ended | | Year Ended |
| Financial Information (in thousands) | | 2018 | | 2017 | | Change | | % Change | December 31, 2019 | | December 31, 2018 | | Change | | % Change | | December 31, 2018 | | December 31, 2017 | | Change | | % Change |
| Income from Real Property | | $ | 825,973 |
| | $ | 742,228 |
| | $ | 83,745 |
| | 11.3 | % | |
| Property operating expenses: | | | | | | | | | |
| Income from real property | | $ | 925,664 |
| | $ | 825,973 |
| | $ | 99,691 |
| | 12.1 | % | | $ | 825,973 |
| | $ | 742,228 |
| | $ | 83,745 |
| | 11.3 | % |
| Property operating expenses | | | | | | | | | | | | | | | | |
| Payroll and benefits | | 74,653 |
| | 67,075 |
| | 7,578 |
| | 11.3 | % | 88,085 |
| | 74,653 |
| | 13,432 |
| | 18.0 | % | | 74,653 |
| | 67,075 |
| | 7,578 |
| | 11.3 | % |
| Legal, taxes, and insurance | | 9,524 |
| | 7,264 |
| | 2,260 |
| | 31.1 | % | 10,778 |
| | 9,524 |
| | 1,254 |
| | 13.2 | % | | 9,524 |
| | 7,264 |
| | 2,260 |
| | 31.1 | % |
| Utilities | | 93,205 |
| | 83,550 |
| | 9,655 |
| | 11.6 | % | 101,910 |
| | 93,205 |
| | 8,705 |
| | 9.3 | % | | 93,205 |
| | 83,550 |
| | 9,655 |
| | 11.6 | % |
| Supplies and repair | | 28,594 |
| | 25,871 |
| | 2,723 |
| | 10.5 | % | |
| Supplies and repairs | | 34,663 |
| | 28,594 |
| | 6,069 |
| | 21.2 | % | | 28,594 |
| | 25,871 |
| | 2,723 |
| | 10.5 | % |
| Other | | 30,121 |
| | 26,518 |
| | 3,603 |
| | 13.6 | % | 30,942 |
| | 30,121 |
| | 821 |
| | 2.7 | % | | 30,121 |
| | 26,518 |
| | 3,603 |
| | 13.6 | % |
| Real estate taxes | | 56,555 |
| | 52,288 |
| | 4,267 |
| | 8.2 | % | 61,880 |
| | 56,555 |
| | 5,325 |
| | 9.4 | % | | 56,555 |
| | 52,288 |
| | 4,267 |
| | 8.2 | % |
| Property operating expenses | | 292,652 |
| | 262,566 |
| | 30,086 |
| | 11.5 | % | 328,258 |
| | 292,652 |
| | 35,606 |
| | 12.2 | % | | 292,652 |
| | 262,566 |
| | 30,086 |
| | 11.5 | % |
| Real Property NOI | | $ | 533,321 |
| | $ | 479,662 |
| | $ | 53,659 |
| | 11.2 | % | $ | 597,406 |
| | $ | 533,321 |
| | $ | 64,085 |
| | 12.0 | % | | $ | 533,321 |
| | $ | 479,662 |
| | $ | 53,659 |
| | 11.2 | % |
| | | | | As of December 31, | | | | | As of | | | | As of | | |
| Other Information | | 2018 | | 2017 | | Change | | | December 31, 2019 | | December 31, 2018 | | Change | | December 31, 2018 | | December 31, 2017 | | Change |
| Number of properties | | 371 |
| | 350 |
| | 21 |
| |
| | 422 |
| | 371 |
| | 51 |
| | 371 |
| | 350 |
| | 21 |
|
| | | | | | | | | | | | | | | | | | | | |
| MH occupancy | | 95.0 | % | | | | | | | 95.5 | % | | | | | |
|
| | | | |
| RV occupancy | | 100.0 | % | | | | | | | 100.0 | % | | | | | |
|
| | | | |
MH & RV blended occupancy (1) | | 96.1 | % | | 95.8 | % | | 0.3 | % | |
| | 96.4 | % | | 96.1 | % | | 0.3 | % | | 96.1 | % | | 95.8 | % | | 0.3 | % |
| | | | | | | | | | | | | | | | | | | | |
| Sites available for development | | 11,258 |
| | 9,617 |
| | 1,641 |
| |
| | 10,293 |
| | 11,258 |
| | (965 | ) | | 11,258 |
| | 9,617 |
| | 1,641 |
|
| | | | | | | | | | | | | | | | | | | | |
| Monthly base rent per site - MH | | $ | 554 |
|
| $ | 533 |
| | $ | 21 |
| |
| | $ | 571 |
| | $ | 554 |
| | $ | 17 |
| | $ | 554 |
| | $ | 533 |
| | $ | 21 |
|
Monthly base rent per site - RV (2) | | $ | 455 |
|
| $ | 435 |
| | $ | 20 |
| |
| | $ | 485 |
| | $ | 458 |
| (3) | | $ | 27 |
| | $ | 455 |
| | $ | 435 |
| (3) | | $ | 20 |
|
| Monthly base rent per site - Total | | $ | 532 |
|
| $ | 512 |
| | $ | 20 |
| |
| | $ | 551 |
| | $ | 532 |
| (3) | | $ | 19 |
| | $ | 532 |
| | $ | 512 |
| (3) | | $ | 20 |
|
(1) Overall occupancy percentage includes MH and annual RV sites and excludes transient RV sites.
(2) Monthly base rent pertains to annual RV sites and excludes transient RV sites.
(3) Canadian currency figures included within the year ended December 31, 2018 and 2017 have been translated at 2019 and 2018 average exchange rates, respectively.
The $64.1 million increase in Real Property NOI from 2018 to 2019 consists of $38.0 million from Same Communities as detailed below and $26.1 million from recently acquired properties in the year ended December 31, 2019 as compared to 2018.
The $53.7 million increase in Real Property NOI from 2017 to 2018 consists of $21.5$35.6 million from Same Communities as detailed below and $18.1 million from recently acquired properties and $32.2 million from our Same Community propertiesin the years ended December 31, 2018 as detailed below.compared to 2017.
REAL PROPERTY OPERATIONS – SAME COMMUNITYReal Property Operations - Same Communities
A key management tool used when evaluating performance and growth of our properties is a comparison of Same Communities. Same Communities consist of properties owned and operated throughout 2018 and 2017. The Same Community data may change from time-to-time depending on acquisitions, dispositions, management discretion, significant transactions, or unique situations. The Same Community data in this Form 10-K includes all properties which we have owned and operated continuously since January 1, 2017.
In order to evaluate the growth of the Same Communities, management has classified certain items differently than our GAAP statements. The reclassification difference between our GAAP statements and our Same Community portfolio is the reclassification of water and sewer revenues from income from real property to utilities. A significant portion of our utility charges are re-billed to our residents.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Year Ended |
Financial Information (in thousands) | December 31, 2019 | | December 31, 2018 | | Change | | % Change | | December 31, 2018 | | December 31, 2017 | | Change | | % Change |
Income from real property (1) | $ | 805,982 |
| | $ | 758,853 |
| | $ | 47,129 |
| | 6.2 | % | | $ | 770,470 |
| | $ | 724,196 |
| | $ | 46,274 |
| | 6.4 | % |
| Property operating expenses | | | | | | | | | | | | | | | |
| Payroll and benefits | 72,519 |
| | 68,630 |
| | 3,889 |
| | 5.7 | % | | 66,502 |
| | 65,524 |
| | 978 |
| | 1.5 | % |
| Legal, taxes, and insurance | 9,579 |
| | 9,212 |
| | 367 |
| | 4.0 | % | | 9,026 |
| | 7,152 |
| | 1,874 |
| | 26.2 | % |
| Utilities | 58,044 |
| | 57,309 |
| | 735 |
| | 1.3 | % | | 54,949 |
| | 51,480 |
| | 3,469 |
| | 6.7 | % |
Supplies and repairs (2) | 30,025 |
| | 27,158 |
| | 2,867 |
| | 10.6 | % | | 26,476 |
| | 25,347 |
| | 1,129 |
| | 4.5 | % |
| Other | 19,966 |
| | 20,535 |
| | (569 | ) | | (2.8 | )% | | 19,908 |
| | 19,091 |
| | 817 |
| | 4.3 | % |
| Real estate taxes | 57,553 |
| | 55,667 |
| | 1,886 |
| | 3.4 | % | | 54,098 |
| | 51,695 |
| | 2,403 |
| | 4.6 | % |
| Property operating expenses | 247,686 |
| | 238,511 |
| | 9,175 |
| | 3.8 | % | | 230,959 |
| | 220,289 |
| | 10,670 |
| | 4.8 | % |
| Real Property NOI | $ | 558,296 |
| | $ | 520,342 |
| | $ | 37,954 |
| | 7.3 | % | | $ | 539,511 |
| | $ | 503,907 |
| | $ | 35,604 |
| | 7.1 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of | | | | As of | | |
| Other Information | | December 31, 2019 | | December 31, 2018 | | Change | | December 31, 2018 | | December 31, 2017 | | Change |
| Number of properties | | 345 |
| | 345 |
| | — |
| | 336 |
| | 336 |
| | — |
|
| | | | | | | | | | | | | |
MH occupancy (3) | | 97.9 | % | | | | | | 97.4 | % | | | | |
RV occupancy (3) | | 100.0 | % | | | | | | 100.0 | % | | | | |
MH & RV blended occupancy (3) | | 98.4 | % | | 96.2 | % | (4) | 2.2 | % | | 98.0 | % | | 95.8 | % | (4) | 2.2 | % |
| | | | | | | | | | | | | |
| Sites available for development | | 6,314 |
| | 7,348 |
| | (1,034 | ) | | 7,348 |
| | 5,087 |
| | 2,261 |
|
| | | | | | | | | | | | | |
| Monthly base rent per site - MH | | $ | 577 |
| | $ | 554 |
| | $ | 23 |
| | $ | 554 |
| | $ | 533 |
| | $ | 21 |
|
Monthly base rent per site - RV (5) | | $ | 489 |
| | $ | 461 |
| | $ | 28 |
| | $ | 455 |
| | $ | 431 |
| | $ | 24 |
|
| Monthly base rent per site - Total | | $ | 557 |
| | $ | 533 |
| | $ | 24 |
| | $ | 532 |
| | $ | 511 |
| | $ | 21 |
|
(1) The Company adopted ASC 842, the new lease accounting standard, as of January 1, 2019 which required the reclassification of bad debt expense from Property operating expense to Income from real property. To assist with comparability within Same Community results, bad debt expense has been reclassified to be shown as a reduction of Income from real property for all periods presented.
(2) For the comparative periods December 31, 2019 and 2018, the year ended 2018 excludes $0.7 million of expenses incurred for recently acquired properties to bring the properties up to our operating standards. For the comparative periods December 31, 2018 and 2017, the year ended 2017 excludes $2.6 million of expenses incurred for recently acquired properties to bring the properties up to our operating standards. These costs did not meet the Company’s capitalization policy.
(3) The occupancy percentages include MH and annual RV sites and exclude recently completed but vacant expansion sites and transient RV sites.
(4) The occupancy percentages for 2018 and 2017 have been adjusted to reflect incremental growth period-over-period from filled MH expansion sites and the conversion of transient RV sites to annual RV sites.
(5) Monthly base rent pertains to annual RV sites and excludes transient RV sites.
Year ended December 31, 2019 and 2018
The Same Community data includes all properties which we have owned and operated continuously since January 1, 2018, exclusive of properties under construction. The amounts in the table above reflect constant currency for comparative purposes. Canadian currency figures included within the year ended December 31, 2018 have been translated at 2019 average exchange rates. We have reclassified $34.7 million and $32.7 million for the years ended December 31, 2019 and 2018, respectively, to reflect the utility expenses associated with our Same Community portfolio net of recovery.
The 7.3 percent growth in NOI is primarily due to increased Income from real property of $47.1 million, or 6.2 percent. The 6.2 percent increase is primarily attributable to a 2.2 percent increase in MH & RV blended occupancy and a 4.5 percent increase in total monthly base rent per site when compared to 2018. The increase in Income from real property was partially offset by a $9.2 million, or 3.8 percent, increase in Property operating expenses, primarily attributable to increases in payroll and benefits, supplies and repairs and real estate taxes.
Year ended December 31, 2018 and 2017
The Same Community data includes all properties which we have owned and operated continuously since January 1, 2017, exclusive of properties under construction. The amounts in the table above reflect constant currency for comparative purposes. Canadian currency figures included within the year ended December 31, 2017 have been translated at 2018 average exchange rates. We have reclassified $32.2 million and $30.6 million for the years ended December 31, 2018 and 2017, respectively, to reflect the utility expenses associated with our Same Community portfolio net of recovery.
The following tables reflect certain financial and other information for our Same Communities as of and for the years ended December 31, 2018 and 2017. The amounts in the table below reflect constant currency for comparative purposes. Canadian currency figures included within the year ended December 31, 2017 have been translated at 2018 average exchange rates:
|
| | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | | |
| Financial Information (in thousands) | | 2018 | | 2017 | | Change | | % Change | |
| Income from Real Property | | $ | 746,360 |
| | $ | 703,272 |
| | $ | 43,088 |
| | 6.1 | % | |
| Property operating expenses: | | | | | | | | | |
| Payroll and benefits | | 66,502 |
| | 65,524 |
| | 978 |
| | 1.5 | % | |
| Legal, taxes, and insurance | | 9,026 |
| | 7,152 |
| | 1,874 |
| | 26.2 | % | |
| Utilities | | 54,949 |
| | 51,480 |
| | 3,469 |
| | 6.7 | % | |
Supplies and repair(1) | | 26,476 |
| | 25,347 |
| | 1,129 |
| | 4.5 | % | |
| Other | | 22,952 |
| | 21,960 |
| | 992 |
| | 4.5 | % | |
| Real estate taxes | | 54,098 |
| | 51,695 |
| | 2,403 |
| | 4.6 | % | |
| Property operating expenses | | 234,003 |
| | 223,158 |
| | 10,845 |
| | 4.9 | % | |
| Real Property NOI | | $ | 512,357 |
| | $ | 480,114 |
| | $ | 32,243 |
| | 6.7 | % | |
|
| | | | | | | | | | | | | | | |
| | | As of December 31, | | | | | |
| Other Information | | 2018 | | 2017 | | Change | | | |
| Number of properties | | 336 |
| | 336 |
| | — |
| |
| |
| | | | | | | | | | |
MH occupancy (2) | | 97.4 | % | | | | | | | |
RV occupancy (2) | | 100.0 | % | | | | | | | |
MH & RV blended occupancy (2) | | 98.0 | % | | 95.8 | % | (3) | 2.2 | % | | | |
| | | | | | | | | | |
| Sites available for development | | 7,348 |
| | 5,087 |
| | 2,261 |
| |
| |
| | | | | | | | |
| |
| Monthly base rent per site - MH | | $ | 554 |
| | $ | 533 |
| | $ | 21 |
| |
| |
Monthly base rent per site - RV (4) | | $ | 455 |
| | $ | 431 |
| | $ | 24 |
| |
| |
| Monthly base rent per site - Total | | $ | 532 |
| | $ | 511 |
| | $ | 21 |
| |
| |
(1) Year ended December 31, 2017 excludes $2.6 million of expenses incurred for recently acquired properties to bring the properties up to Sun’s operating standards. These costs did not meet the Company’s capitalization policy.
(2) The Same Community occupancy percentage for 2018 is derived from 104,059 developed sites, of which 101,988 were occupied. The number of developed sites excludes RV transient sites and approximately 2,100 recently completed but vacant MH expansion sites.
(3) The Same Community occupancy percentage for 2017 has been adjusted to reflect incremental growth period-over-period from filled expansion sites and the conversion of transient RV sites to annual RV sites.
(4) Monthly base rent pertains to annual RV sites and excludes transient RV sites.
The 6.77.1 percent growth in NOI is primarily due to a 6.16.4 percent increase in Income from real property. The 6.16.4 percent increase in Income from real property is primarily due to a 2.2 percent increase in MH & RV blended occupancy and a 4.1 percent increase in total monthly base rent per site. The increase in Income from real property was partially offset by a 4.94.8 percent increase in Property operating expenses compared to 2017, which was primarily due to higher utilities, real estate taxes, and legal, taxes, and insurance in 2018.
HOME SALES AND RENTALSHome Sales Summary
We purchase new homes and acquire pre-owned and repossessed manufactured homes, generally located within our communities, from lenders, dealers, and former residents to lease or sell to current and prospective residents.
The following table reflects certain financial and statistical information for our Home Sales Program for the years ended December 31, 2019, 2018 and 2017 (in thousands, except for average selling prices and statistical information):
| | | | | Year Ended December 31, | | | | | Year Ended | | Year Ended |
| Financial Information | | 2018 | | 2017 | | Change | | % Change | December 31, 2019 | | December 31, 2018 | | Change | | % Change | | December 31, 2018 | | December 31, 2017 | | Change | | % Change |
| Revenue: | | | | | | | | | |
| New homes | | | | | | | | | | | | | | | | |
| New home sales | | $ | 59,578 |
| | $ | 36,915 |
| | $ | 22,663 |
| | 61.4 | % | $ | 71,760 |
| | $ | 59,578 |
| | $ | 12,182 |
| | 20.4 | % | | $ | 59,578 |
| | $ | 36,915 |
| | $ | 22,663 |
| | 61.4 | % |
| Pre-owned home sales | | 106,453 |
| | 90,493 |
| | 15,960 |
| | 17.6 | % | |
| Revenue from homes sales | | 166,031 |
| | 127,408 |
| | 38,623 |
| | 30.3 | % | |
| Expenses: | | | | | | | | | |
| New home cost of sales | | 51,913 |
| | 31,578 |
| | 20,335 |
| | 64.4 | % | 61,557 |
| | 51,913 |
| | 9,644 |
| | 18.6 | % | | 51,913 |
| | 31,578 |
| | 20,335 |
| | 64.4 | % |
| Pre-owned home cost of sales | | 71,420 |
| | 63,536 |
| | 7,884 |
| | 12.4 | % | |
| Cost of home sales | | 123,333 |
| | 95,114 |
| | 28,219 |
| | 29.7 | % | |
| NOI / Gross profit | | $ | 42,698 |
| | $ | 32,294 |
| | $ | 10,404 |
| | 32.2 | % | |
| | | | | | | | | | |
| Gross profit – new homes | | $ | 7,665 |
| | $ | 5,337 |
| | $ | 2,328 |
| | 43.6 | % | |
NOI / Gross Profit – new homes | | $ | 10,203 |
| | $ | 7,665 |
| | $ | 2,538 |
| | 33.1 | % | | $ | 7,665 |
| | $ | 5,337 |
| | $ | 2,328 |
| | 43.6 | % |
| Gross margin % – new homes | | 12.9 | % | | 14.5 | % | | (1.6 | )% | |
|
| 14.2 | % | | 12.9 | % | | 1.3 | % | | | | 12.9 | % | | 14.5 | % | | (1.6 | )% | | |
| Average selling price – new homes | | $ | 113,266 |
| | $ | 101,975 |
| | $ | 11,291 |
| | 11.1 | % | $ | 125,674 |
| | $ | 113,266 |
| | $ | 12,408 |
| | 11.0 | % | | $ | 113,266 |
| | $ | 101,975 |
| | $ | 11,291 |
| | 11.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Gross profit – pre-owned homes | | $ | 35,033 |
| | $ | 26,957 |
| | $ | 8,076 |
| | 30.0 | % | |
| Pre-owned homes | | | | | | | | | | | | | | | | |
| Pre-owned home sales | | $ | 110,176 |
| | $ | 106,453 |
| | $ | 3,723 |
| | 3.5 | % | | $ | 106,453 |
| | $ | 90,493 |
| | $ | 15,960 |
| | 17.6 | % |
| Pre-owned home cost of sales | | 72,800 |
| | 71,420 |
| | 1,380 |
| | 1.9 | % | | 71,420 |
| | 63,536 |
| | 7,884 |
| | 12.4 | % |
NOI / Gross Profit – pre-owned homes | | $ | 37,376 |
| | $ | 35,033 |
| | $ | 2,343 |
| | 6.7 | % | | $ | 35,033 |
| | $ | 26,957 |
| | $ | 8,076 |
| | 30.0 | % |
| Gross margin % – pre-owned homes | | 32.9 | % | | 29.8 | % | | 3.1 | % | |
|
| 33.9 | % | | 32.9 | % | | 1.0 | % | | | | 32.9 | % | | 29.8 | % | | 3.1 | % | | |
| Average selling price – pre-owned homes | | $ | 34,306 |
| | $ | 30,991 |
| | $ | 3,315 |
| | 10.7 | % | $ | 38,416 |
| | $ | 34,306 |
| | $ | 4,110 |
| | 12.0 | % | | $ | 34,306 |
| | $ | 30,991 |
| | $ | 3,315 |
| | 10.7 | % |
| | | | | | | | | | | | | | | | | |
| Total home sales | | | | | | | | | | | | | | | | |
| Revenue from home sales | | $ | 181,936 |
| | $ | 166,031 |
| | $ | 15,905 |
| | 9.6 | % | | $ | 166,031 |
| | $ | 127,408 |
| | $ | 38,623 |
| | 30.3 | % |
| Cost of home sales | | 134,357 |
| | 123,333 |
| | 11,024 |
| | 8.9 | % | | 123,333 |
| | 95,114 |
| | 28,219 |
| | 29.7 | % |
NOI / Gross Profit – home sales | | $ | 47,579 |
| | $ | 42,698 |
| | $ | 4,881 |
| | 11.4 | % | | $ | 42,698 |
| | $ | 32,294 |
| | $ | 10,404 |
| | 32.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Statistical Information | | | | | | | | | | | | | | | | | | | | | | | |
| New home sales volume | | 526 |
| | 362 |
| | 164 |
| | 45.3 | % | 571 |
| | 526 |
| | 45 |
| | 8.6 | % | | 526 |
| | 362 |
| | 164 |
| | 45.3 | % |
| Pre-owned home sales volume | | 3,103 |
| | 2,920 |
| | 183 |
| | 6.3 | % | 2,868 |
| | 3,103 |
| | (235 | ) | | (7.6 | )% | | 3,103 |
| | 2,920 |
| | 183 |
| | 6.3 | % |
| Total homes sold | | 3,629 |
| | 3,282 |
| | 347 |
| | 10.6 | % | |
| Total home sales volume | | 3,439 |
| | 3,629 |
| | (190 | ) | | (5.2 | )% | | 3,629 |
| | 3,282 |
| | 347 |
| | 10.6 | % |
Gross Profit - new homes - For the year ended December 31, 2019, the $2.5 million, or 33.1 percent, increase in gross profit foris primarily the result of a 8.6 percent increase in new andhome sales volume coupled with a 11.0 percent increase in the average selling price, as compared to 2018.
For the year ended December 31, 2018, the $2.3 million, or 43.6 percent, increase in gross profit is primarily the result of a 45.3 percent increase in new home sales volume coupled with a 11.1 percent increase in the average selling price, as compared to 2017.
Gross Profit - pre-owned homes - For the year ended December 31, 2019, the $2.3 million, or 6.7 percent, increase in gross profit is primarily the result of a 12.0 percent increase in the average selling price, which is partially offset by a 7.6 percent decrease in pre-owned home sales increased $2.3 million andvolume, as compared to 2018.
For the year ended December 31, 2018, the $8.1 million, respectively,or 30.0 percent, increase in gross profit is primarily the result of a 10.7 percent increase in the average selling price coupled with a 6.3 percent increase in pre-owned home sales volume as compared to 2017.
Rental Program Summary
The following table reflects certain financial and other information for our Rental Program for the years ended December 31, 2019, 2018 and 2017 (in thousands, except for statistical information):
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Year Ended |
| Financial Information | December 31, 2019 | | December 31, 2018 | | Change | | % Change | | December 31, 2018 | | December 31, 2017 | | Change | | % Change |
| Revenues | | | | | | | | | | | | | | | |
| Rental home revenue | $ | 57,572 |
| | $ | 53,657 |
| | $ | 3,915 |
| | 7.3 | % | | $ | 53,657 |
| | $ | 50,549 |
| | $ | 3,108 |
| | 6.1 | % |
Site rent from Rental Program (1) | 68,805 |
| | 65,615 |
| | 3,190 |
| | 4.9 | % | | 65,615 |
| | 63,833 |
| | 1,782 |
| | 2.8 | % |
| Rental Program revenue | 126,377 |
| | 119,272 |
| | 7,105 |
| | 6.0 | % | | 119,272 |
| | 114,382 |
| | 4,890 |
| | 4.3 | % |
| Expenses | | | | | | | | | | | | | | | |
| Repairs and refurbishment | 12,591 |
| | 10,456 |
| | 2,135 |
| | 20.4 | % | | 10,456 |
| | 9,864 |
| | 592 |
| | 6.0 | % |
| Taxes and insurance | 7,488 |
| | 6,425 |
| | 1,063 |
| | 16.5 | % | | 6,425 |
| | 6,149 |
| | 276 |
| | 4.5 | % |
| Other | 1,916 |
| | 6,423 |
| | (4,507 | ) | | (70.2 | )% | | 6,423 |
| | 6,147 |
| | 276 |
| | 4.5 | % |
| Rental Program operating and maintenance | 21,995 |
| | 23,304 |
| | (1,309 | ) | | (5.6 | )% | | 23,304 |
| | 22,160 |
| | 1,144 |
| | 5.2 | % |
| Rental Program NOI | $ | 104,382 |
| | $ | 95,968 |
| | $ | 8,414 |
| | 8.8 | % | | $ | 95,968 |
| | $ | 92,222 |
| | $ | 3,746 |
| | 4.1 | % |
| | | | | | | | | | | | | | | | |
| Other Information | | | | | | | | | | | | | | | |
| Number of sold rental homes | 1,140 |
| | 1,122 |
| | 18 |
| | 1.6 | % | | 1,122 |
| | 1,168 |
| | (46 | ) | | (3.9 | )% |
Number of occupied rentals, end of period | 11,325 |
| | 10,994 |
| | 331 |
| | 3.0 | % | | 10,994 |
| | 11,074 |
| | (80 | ) | | (0.7 | )% |
| Investment in occupied rental homes, end of period | $ | 584,771 |
| | $ | 530,006 |
| | $ | 54,765 |
| | 10.3 | % | | $ | 530,006 |
| | $ | 494,945 |
| | $ | 35,061 |
| | 7.1 | % |
| Weighted average monthly rental rate, end of period | $ | 997 |
| | $ | 949 |
| | $ | 48 |
| | 5.1 | % | | $ | 949 |
| | $ | 901 |
| | $ | 48 |
| | 5.3 | % |
(1) The renter’s monthly payment includes the site rent and an amount attributable to the home lease. The site rent is reflected in Real Property Operations’ segment revenue. For purposes of management analysis, site rent is included in Rental Program revenue to evaluate the incremental revenue gains associated with the implementation of the Rental Program, and to assess the overall growth and performance of the Rental Program and financial impact on the Company’s operations.
For the year ended December 31, 2019, Rental Program NOI increased $8.4 million, or 8.8 percent, as compared to 2018. The increase is primarily due to (a) an increase in Rental Program revenue of $7.1 million, or 6.0 percent, primarily attributable to a 5.1 percent increase in the weighted average monthly rental rate and a 3.0 percent increase in the number of occupied rentals, and (b) a decrease in Rental Program operating and maintenance expenses of $1.3 million, or 5.6 percent, resulting primarily from the capitalization of commission expenses under ASC 842 in the year ended December 31, 2019 as compared to 2018.
For the year ended December 31, 2018, Rental Program NOI increased $3.7 million, or 4.1 percent, as compared to 2017. The increases for both newincrease is primarily due to (a) an increase in Rental Program revenue of $4.9 million, or 4.3 percent, primarily attributable to a 5.3 percent increase in weighted average monthly rental rates, partially offset by (b) an increase in Rental Program operating and pre-owned home sales aremaintenance expenses of $1.1 million, or 5.2 percent, primarily the result ofdue to higher home sales volumes combined with higher average selling pricesrepairs and refurbishment expense in 2018 as compared to 2017.
The following table reflects certain financial and other information for our Rental Program asOther Items - Statements of and for the years endedOperations December 31, 2018(1) and 2017 (in thousands, except for statistical information):
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| Financial Information | | 2018 | | 2017 | | Change | | % Change |
| Revenues: | | | | | | | | |
| Rental home revenue | | $ | 53,657 |
| | $ | 50,549 |
| | $ | 3,108 |
| | 6.1 | % |
Site rent from Rental Program (1) | | 65,615 |
| | 63,833 |
| | 1,782 |
| | 2.8 | % |
| Rental Program revenue | | 119,272 |
| | 114,382 |
| | 4,890 |
| | 4.3 | % |
| | | | | | | | | |
| Expenses: | | | | | | | | |
| Commissions | | 2,291 |
| | 2,734 |
| | (443 | ) | | (16.2 | )% |
| Repairs and refurbishment | | 10,312 |
| | 9,864 |
| | 448 |
| | 4.5 | % |
| Taxes and insurance | | 6,364 |
| | 6,102 |
| | 262 |
| | 4.3 | % |
| Marketing and other | | 4,132 |
| | 3,414 |
| | 718 |
| | 21.0 | % |
| Rental Program operating and maintenance | | 23,099 |
| | 22,114 |
| | 985 |
| | 4.5 | % |
| Rental Program NOI | | $ | 96,173 |
| | $ | 92,268 |
| | $ | 3,905 |
| | 4.2 | % |
| | | | | | | | | |
| Other Information | | | | | | | | |
| Number of occupied rentals, end of period | | 10,994 |
| | 11,074 |
| | (80 | ) | | (0.7 | )% |
| Investment in occupied rental homes, end of period | | $ | 530,006 |
| | $ | 494,945 |
| | $ | 35,061 |
| | 7.1 | % |
| Number of sold rental homes | | 1,122 |
| | 1,168 |
| | (46 | ) | | (3.9 | )% |
| Weighted average monthly rental rate, end of period | | $ | 949 |
| | $ | 901 |
| | $ | 48 |
| | 5.3 | % |
(1) The renter’s monthly payment includes the site rent and an amount attributable to the rental home lease. The site rent is reflected in the Real Property Operations segment. For purposes of management analysis, the site rent is included in the Rental Program revenue to evaluate the incremental revenue gains associated with implementation of the Rental Program, and assess the overall growth and performance of Rental Program and financial impact to our operations.
Rental Program NOI increased by 4.2 percent compared to 2017. The increase is due to a 4.3 percent increase in Rental Program revenue which is primarily attributable to a 5.3 percent increase in weighted average monthly rental rates.
The 4.5 percent increase in Rental Program operating and maintenance expenses is primarily due to higher Marketing and other expenses, driven by higher utility and bad debt expenses in 2018 as compared to 2017, partially offset by the decrease in commission expenses due to a decrease in the number of sold rental homes in 2018 as compared to 2017.
OTHER INCOME STATEMENT ITEMS
The following table summarizes other income and expenses for the years ended December 31, 2019, 2018 and 2017 (amounts in thousands):
| | | | | Year Ended December 31, | | | | | Year Ended | | Year Ended |
| | | 2018 | | 2017 | | Change | | % Change | December 31, 2019 | | December 31, 2018 | | Change | | % Change | | December 31, 2018 | | December 31, 2017 | | Change | | % Change |
| Ancillary revenue, net | | $ | 16,484 |
| | $ | 10,075 |
| | $ | 6,409 |
| | 63.6 | % | |
| Ancillary revenues, net | | $ | 19,449 |
| | $ | 16,064 |
| | $ | 3,385 |
| | 21.1 | % | | $ | 16,064 |
| | $ | 10,061 |
| | $ | 6,003 |
| | 59.7 | % |
| Interest income | | $ | 20,853 |
| | $ | 21,180 |
| | $ | (327 | ) | | (1.5 | )% | $ | 17,857 |
| | $ | 20,852 |
| | $ | (2,995 | ) | | (14.4 | )% | | $ | 20,852 |
| | $ | 21,179 |
| | $ | (327 | ) | | (1.5 | )% |
| Brokerage commissions and other revenues, net | | $ | 6,204 |
| | $ | 3,694 |
| | $ | 2,510 |
| | 67.9 | % | $ | 14,127 |
| | $ | 6,205 |
| | $ | 7,922 |
| | 127.7 | % | | $ | 6,205 |
| | $ | 3,695 |
| | $ | 2,510 |
| | 67.9 | % |
| Home selling expenses | | $ | 15,722 |
| | $ | 12,457 |
| | $ | 3,265 |
| | 26.2 | % | $ | 14,690 |
| | $ | 15,722 |
| | $ | (1,032 | ) | | (6.6 | )% | | $ | 15,722 |
| | $ | 12,457 |
| | $ | 3,265 |
| | 26.2 | % |
| General and administrative expenses | | $ | 81,438 |
| | $ | 74,232 |
| | $ | 7,206 |
| | 9.7 | % | $ | 93,964 |
| | $ | 81,429 |
| | $ | 12,535 |
| | 15.4 | % | | $ | 81,429 |
| | $ | 83,973 |
| | $ | (2,544 | ) | | (3.0 | )% |
| Transaction costs | | $ | 472 |
| | $ | 9,801 |
| | $ | (9,329 | ) | | (95.2 | )% | |
| Catastrophic weather related charges, net | | $ | 92 |
| | $ | 8,352 |
| | $ | (8,260 | ) | | (98.9 | )% | $ | 1,737 |
| | $ | 92 |
| | $ | 1,645 |
| | 1,788.0 | % | | $ | 92 |
| | $ | 8,352 |
| | $ | (8,260 | ) | | (98.9 | )% |
| Depreciation and amortization | | $ | 287,262 |
| | $ | 261,536 |
| | $ | 25,726 |
| | 9.8 | % | $ | 328,067 |
| | $ | 287,262 |
| | $ | 40,805 |
| | 14.2 | % | | $ | 287,262 |
| | $ | 261,536 |
| | $ | 25,726 |
| | 9.8 | % |
| Loss on extinguishment of debt | | $ | 2,657 |
| | $ | 6,019 |
| | $ | (3,362 | ) | | (55.9 | )% | $ | 16,505 |
| | $ | 1,190 |
| | $ | 15,315 |
| | 1,287.0 | % | | $ | 1,190 |
| | $ | 4,676 |
| | $ | (3,486 | ) | | (74.6 | )% |
| Interest expense | | $ | 132,783 |
| | $ | 130,242 |
| | $ | 2,541 |
| | 2.0 | % | |
| Remeasurement of marketable securities | | $ | (3,639 | ) | | $ | — |
| | $ | (3,639 | ) | | N/A |
| |
| Other (expense) / income, net | | $ | (6,453 | ) | | $ | 8,982 |
| | $ | (15,435 | ) | | (171.8 | )% | |
Interest expense (2) | | $ | 137,851 |
| | $ | 134,250 |
| | $ | 3,601 |
| | 2.7 | % | | $ | 134,250 |
| | $ | 131,585 |
| | $ | 2,665 |
| | 2.0 | % |
| Gain / (loss) on remeasurement of marketable securities | | $ | 34,240 |
| | $ | (3,639 | ) | | $ | 37,879 |
| | (1,040.9 | )% | | $ | (3,639 | ) | | $ | — |
| | $ | (3,639 | ) | | N/A |
|
| Other income / (expense), net | | $ | 3,457 |
| | $ | (6,453 | ) | | $ | 9,910 |
| | (153.6 | )% | | $ | (6,453 | ) | | $ | 8,982 |
| | $ | (15,435 | ) | | (171.8 | )% |
| Income from nonconsolidated affiliates | | $ | 646 |
| | $ | — |
| | $ | 646 |
| | N/A |
| $ | 1,374 |
| | $ | 790 |
| | $ | 584 |
| | 73.9 | % | | $ | 790 |
| | $ | — |
| | $ | 790 |
| | N/A |
|
| Current tax expense | | $ | (595 | ) | | $ | (446 | ) | | $ | (149 | ) | | (33.4 | )% | $ | (1,095 | ) | | $ | (595 | ) | | $ | (500 | ) | | 84.0 | % | | $ | (595 | ) | | $ | (446 | ) | | $ | (149 | ) | | 33.4 | % |
| Deferred tax benefit | | $ | 507 |
| | $ | 582 |
| | $ | (75 | ) | | (12.9 | )% | $ | 222 |
| | $ | 507 |
| | $ | (285 | ) | | (56.2 | )% | | $ | 507 |
| | $ | 582 |
| | $ | (75 | ) | | (12.9 | )% |
| Preferred return to preferred OP units / equity | | $ | 6,058 |
| | $ | 4,486 |
| | $ | 1,572 |
| | 35.0 | % | | $ | 4,486 |
| | $ | 4,581 |
| | $ | (95 | ) | | (2.1 | )% |
| Amounts attributable to noncontrolling interests | | $ | 9,768 |
| | $ | 8,443 |
| | $ | 1,325 |
| | 15.7 | % | | $ | 8,443 |
| | $ | 5,055 |
| | $ | 3,388 |
| | 67.0 | % |
| Preferred stock distribution | | $ | 1,288 |
| | $ | 1,736 |
| | $ | (448 | ) | | (25.8 | )% | | $ | 1,736 |
| | $ | 7,162 |
| | $ | (5,426 | ) | | (75.8 | )% |
(1) Only items judgmentally determined by management to be material are explained.
(2) Includes interest expense and interest on mandatorily redeemable preferred OP units / equity.
Ancillary revenue,revenues, net - for the year ended December 31, 2019, increased primarily due to increases in golf course, restaurant, and resort activity revenues as compared to 2018. For the year ended December 31, 2018, the increase is primarily due to RV vacation home rental income as a result of acquisition activities, in addition to an increase in golf course, restaurant, and resort activity net profit duringas compared to 2017.
Interest income - for the year ended December 31, 20182019, decreased primarily due to lower balances on our notes receivable and derecognition of collateralized notes receivable in 2019 as comparedwe satisfied the criteria of paragraph ASC 860-10-40-5 to the same periodbe accounted for as a sale. Refer to Note 4, “Collateralized Receivables and Transfers of Financial Assets,” in 2017.our accompanying Consolidated Financial Statements for additional information.
Brokerage commissions and other revenues, net -for the year ended December 31, 2019, increased primarily due to a $3.1 million increase in brokerage commissions, and a $1.8 million increase in dividend income from our investment in marketable securities, as compared to 2018. For the year ended December 31, 2018, the increase is primarily due to a higher number of broker homes sold during the year ended December 31, 2018 as compared to the same period in 2017, in addition to a $1.9 million ininsurance proceeds from business interruption insurance proceeds related to Hurricane Irma.
Home selling expenses - increased as a result of higher commissions due to a higher volume of home sales for the year ended December 31, 2018, increased primarily due to higher commissions driven by a higher home sales volume for the year as compared to the same period in 2017.
General and administrative expenses - increased primarily due to employee related costs including salaries, incentive compensation, and deferred compensation amortization, in addition to higher software support and maintenance fees during the year ended December 31, 2018 as compared to the same period in 2017.
Transaction costs -for the year ended December 31, 2018, decreased2019, increased primarily due to an increase in wages and incentives driven by $9.3 milliongrowth in acquisitions and the Company’s performance as compared to the same period in 2017. Beginning January 2018, only direct acquisition related costs are capitalized as part of the purchase price. Acquisition costs that do not meet the criteria for capitalization are expensed as incurred.2018.
Catastrophic weather related charges, net -decreased for theyear ended December 31, 2019, increased primarily due to estimated damage losses for recent weather events. For the year ended December 31, 2018, the decrease is primarily due to a smaller impact from Hurricanes Florence and Michael for the year ended December 31, 2018 as compared to a larger impact from Hurricane Irma in the same period in 2017.
Depreciation and amortization - for the year ended December 31, 2019, increased as a result of our recent property acquisitions and our ongoing expansion and development activities. Refer to Note 3, “Real Estate Acquisitions,” inAcquisitions” of our accompanying Consolidated Financial Statements for additional information.
Loss on extinguishment of debt - decreased $3.4 millionfor the year ended December 31, 2019, increased primarily due to higher prepayment penalties related to debt and financing activity as compared to 2018. For the year ended December 31, 2018, the decrease is primarily due to lower prepayment penalties related to debt and financing activity as compared to 2017. Refer to Note 9, “Debt and Lines of Credit,” in our accompanying Consolidated Financial Statements for additional information.
SUN COMMUNITIES, INC.
Gain / (loss) on remeasurement of marketable securities - for the year ended December 31, 2019, increased primarily due to a $34.2 million gain on the remeasurement of our investment in marketable securities as compared to a $3.6 million remeasurement loss in 2018. For the year ended December 31, 2018, the decrease is primarily due to a $3.6 million loss on the remeasurement of our investment in marketable securities.
Interest expenseOther income / (expense), net - for the year ended December 31, 2018,2019, increased $2.5primarily due to a $4.5 million foreign currency translation gain as compared to a $8.4 million loss in 2018, partially offset by a $3.8 million decrease resulting from a $1.5 million loss on the same periodremeasurement of contingent liability in 2017,2019 as compared to a $2.3 million gain in 2018. For the year ended December 31, 2018, the decrease is primarily due to entering into two collateralized term loans totaling $249.7 million.an $8.4 million foreign currency translation loss as compared to a $5.9 million gain in 2017.
Preferred return to preferred OP units / equity - for the year ended December 31, 2019 increased primarily as a result of issuing 488,958 Series D Preferred OP units in conjunction with an acquisition in January 2019. Refer to Note 9, “Debt3, “Acquisitions,” and LinesNote 10, “Equity and Temporary Equity,” of Credit,” in our accompanying Consolidated Financial Statements for additional information.
Remeasurement of marketable securitiesAmounts attributable to noncontrolling interests - was $3.6 millionfor the year ended December 31, 2019 increased primarily as a result of increased performance in our Sun NG Resorts portfolio as compared to 2018. For the year ended December 31, 2018, primarilythe increase is due to the changeacquisition of our Sun NG Resorts portfolio in the fair value of exchange traded marketable securities. ReferJune 2018 as compared to Note 7, “Investment in Nonconsolidated Affiliates,” in our accompanying Consolidated Financial Statements for additional information.2017.
Other (expense) / income, netPreferred stock distributions - for the year ended December 31, 2018 was primarily comprised of foreign currency translation loss of $8.4 million, and $0.4 million in other expenses, partially offset by contingent liability remeasurement gain of $2.3 milliondistributions decreased as compared to 2017 which consisted of foreign currency translation gains of $5.9 million and a contingent liability remeasurement gain of $3.0 million.
Income from nonconsolidated affiliates - was $0.6 million in 2018, primarily due to equity earnings from our investments in GTSC and Origen Financial Services, LLC. Refer to Note 7, “Investment in Nonconsolidated Affiliates,” in our accompanying Consolidated Financial Statements for additional information.
COMPARISON OF THE YEARS ENDED DECEMBER 31, 2017 AND 2016
REAL PROPERTY OPERATIONS – TOTAL PORTFOLIO
The following tables reflect certain financial and other information for our Total Portfolio as of and for the years ended December 31, 2017 and 2016:
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| Financial Information (in thousands) | | 2017 | | 2016 | | Change | | % Change |
| Income from Real Property | | 742,228 |
| | 620,917 |
| | $ | 121,311 |
| | 19.5 | % |
| Property operating expenses: | | | | | | | | |
| Payroll and benefits | | 67,075 |
| | 56,744 |
| | 10,331 |
| | 18.2 | % |
| Legal, taxes, and insurance | | 7,264 |
| | 5,941 |
| | 1,323 |
| | 22.3 | % |
| Utilities | | 83,550 |
| | 67,495 |
| | 16,055 |
| | 23.8 | % |
| Supplies and repair | | 25,871 |
| | 20,732 |
| | 5,139 |
| | 24.8 | % |
| Other | | 26,518 |
| | 22,362 |
| | 4,156 |
| | 18.6 | % |
| Real estate taxes | | 52,288 |
| | 44,306 |
| | 7,982 |
| | 18.0 | % |
| Property operating expenses | | 262,566 |
| | 217,580 |
| | 44,986 |
| | 20.7 | % |
| Real Property NOI | | $ | 479,662 |
| | $ | 403,337 |
| | $ | 76,325 |
| | 18.9 | % |
|
| | | | | | | | | | | | | | |
| | | As of December 31, | | | | |
| Other Information | | 2017 | | 2016 | | Change | | |
| Number of properties | | 350 |
| | 341 |
| | 9 |
| |
|
| | | | | | | | | |
| MH occupancy | | 94.6 | % | | | | | | |
| RV occupancy | | 100.0 | % | | | | | | |
MH & RV blended occupancy (1) | | 95.8 | % | | 96.2 | % | | (0.4 | )% | | |
| | | | | | | | | |
| Sites available for development | | 9,617 |
| | 10,337 |
| | (720 | ) | |
|
| | | | | | | | |
|
| Monthly base rent per site - MH | | $ | 533 |
| | $ | 515 |
| | $ | 18 |
| |
|
Monthly base rent per site - RV (2) | | $ | 439 |
| | $ | 420 |
| | $ | 19 |
| |
|
| Monthly base rent per site - Total | | $ | 512 |
| | $ | 495 |
| | $ | 17 |
| |
|
(1) Overall occupancy (percentage) includes MH and annual RV sites, and excludes transient RV sites.
(2) Monthly base rent pertains to annual RV sites and excludes transient RV sites.
The $76.3 million growth in Real Property NOI consists of $51.7 million from newly acquired properties and $24.6 million from Same Community properties as detailed below.
REAL PROPERTY OPERATIONS – SAME COMMUNITY
The following tables reflect certain financial and other information for our Same Communities, which includes all properties we have owned and operated continuously since January 1, 2016 as of and for the years ended December 31, 2017 and 2016. We have reclassified $26.9 million and $25.8 million for the year ended December 31, 2017 and 2016, respectively, to reflect the utility expenses associated with our Same Community portfolio net of recovery.
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| Financial Information (in thousands) | | 2017 | | 2016 | | Change | | % Change |
| Income from Real Property | | $ | 533,942 |
| | $ | 503,770 |
| | $ | 30,172 |
| | 6.0 | % |
| Property operating expenses: | | | | | | | | |
| Payroll and benefits | | 45,240 |
| | 43,078 |
| | 2,162 |
| | 5.0 | % |
| Legal, taxes, and insurance | | 5,562 |
| | 5,174 |
| | 388 |
| | 7.5 | % |
| Utilities | | 29,726 |
| | 28,475 |
| | 1,251 |
| | 4.4 | % |
Supplies and repair (1) | | 19,109 |
| | 18,729 |
| | 380 |
| | 2.0 | % |
| Other | | 13,696 |
| | 13,988 |
| | (292 | ) | | (2.1 | )% |
| Real estate taxes | | 38,399 |
| | 36,708 |
| | 1,691 |
| | 4.6 | % |
| Property operating expenses | | 151,732 |
| | 146,152 |
| | 5,580 |
| | 3.8 | % |
| Real Property NOI | | $ | 382,210 |
| | $ | 357,618 |
| | $ | 24,592 |
| | 6.9 | % |
|
| | | | | | | | | | | | | | | |
| | | As of December 31, | | | | | |
| Other Information | | 2017 | | 2016 | | Change | | | |
| Number of properties | | 231 |
| | 231 |
| | — |
| |
| |
| | | | | | | | | | |
MH occupancy (2) | | 96.9 | % | | | | | | | |
RV occupancy (2) | | 100.0 | % | | | | | | | |
MH & RV blended occupancy (2) | | 97.3 | % | | 95.4 | % | (3) | 1.9 | % | |
| |
| | | | | | | | | | |
| Sites available for development | | 5,087 |
| | 6,263 |
| | (1,176 | ) | |
| |
| | | | | | | | | | |
| Monthly base rent per site - MH | | $ | 518 |
| | $ | 500 |
| | $ | 18 |
| | | |
Monthly base rent per site - RV (4) | | $ | 459 |
| | $ | 441 |
| | $ | 18 |
| |
| |
| Monthly base rent per site - Total | | $ | 510 |
| | $ | 492 |
| | $ | 18 |
| |
| |
(1) Year ended December 31, 2016 excludes $0.1 million of expenses incurred for recently acquired properties to bring the properties up to Sun’s operating standards. These costs did not meet the Company’s capitalization policy.
(2) The Same Community occupancy percentage for 2017 is derived from 80,407 developed sites, of which 78,257 were occupied. The number of developed sites excludes RV transient sites and approximately 1,800 recently completed by vacant MH expansion sites.
(3) The Same Community occupancy percentage for 2016 has been adjusted to reflect incremental growth period-over-period from filled expansion sites and the conversion of transient RV sites to annual RV sites.
(4) Monthly base rent pertains to annual RV sites and excludes transient RV sites.
The 6.9 percent growth in NOI is primarily due to a 6.0 percent increase in Income from real property. The 6.0 percent increase in Income from real property is primarily due to a 1.9 percent increase in MH & RV blended occupancy, a 3.6 percent increase in total monthly base rent per site, and a 0.5 percent increase in transient revenue and other revenue. The increase in Income from real property was partially offset by a 3.8 percent increase in Property operating expenses compared to 2016, which was primarily due to higher payroll and benefits, real estate taxes, and utilities in 2017.
HOME SALES AND RENTALS
The following table reflects certain financial and statistical information for our Home Sales Program for the years ended December 31, 2017 and 2016 (in thousands, except for average selling prices and statistical information):
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| Financial Information | | 2017 | | 2016 | | Change | | % Change |
| Revenue: | | | | | | | | |
| New home sales | | $ | 36,915 |
| | $ | 30,977 |
| | $ | 5,938 |
| | 19.2 | % |
| Pre-owned home sales | | 90,493 |
| | 79,530 |
| | 10,963 |
| | 13.8 | % |
| Revenue from homes sales | | 127,408 |
| | 110,507 |
| | 16,901 |
| | 15.3 | % |
| Expenses: | | | | | | | | |
| New home cost of sales | | 31,578 |
| | 26,802 |
| | 4,776 |
| | 17.8 | % |
| Pre-owned home cost of sales | | 63,536 |
| | 53,618 |
| | 9,918 |
| | 18.5 | % |
| Cost of home sales | | 95,114 |
| | 80,420 |
| | 14,694 |
| | 18.3 | % |
| NOI / Gross profit | | $ | 32,294 |
| | $ | 30,087 |
| | $ | 2,207 |
| | 7.3 | % |
| | | | | | | | | |
| Gross profit – new homes | | $ | 5,337 |
| | $ | 4,175 |
| | $ | 1,162 |
| | 27.8 | % |
| Gross margin % – new homes | | 14.5 | % | | 13.5 | % | | 1.0 | % | | |
| Average selling price – new homes | | $ | 101,975 |
| | $ | 94,156 |
| | $ | 7,819 |
| | 8.3 | % |
| | | | | | | | | |
| Gross profit – pre-owned homes | | $ | 26,957 |
| | $ | 25,912 |
| | $ | 1,045 |
| | 4.0 | % |
| Gross margin % – pre-owned homes | | 29.8 | % | | 32.6 | % | | (2.8 | )% | | |
| Average selling price – pre-owned homes | | $ | 30,991 |
| | $ | 27,974 |
| | $ | 3,017 |
| | 10.8 | % |
| | | | | | | | | |
| Statistical Information | | | | | | | | |
| New home sales volume | | 362 |
| | 329 |
| | 33 |
| | 10.0 | % |
| Pre-owned home sales volume | | 2,920 |
| | 2,843 |
| | 77 |
| | 2.7 | % |
| Total homes sold | | 3,282 |
| | 3,172 |
| | 110 |
| | 3.5 | % |
Gross profit for new and pre-owned home sales increased $1.2 million and $1.0 million, respectively, in 2017 as compared to 2016. The increases for both new and pre-owned home sales are primarily the result of higher volume of home sales combined with higher average selling prices in 2017 as compared to 2016.
The following table reflects certain financial and other information for our Rental Program as of and for the years ended December 31, 2017 and 2016 (in thousands, except for statistical information):
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| Financial Information | | 2017 | | 2016 | | Change | | % Change |
| Revenues: | | | | | | | | |
| Rental home revenue | | $ | 50,549 |
| | $ | 47,780 |
| | $ | 2,769 |
| | 5.8 | % |
Site rent from Rental Program (1) | | 63,833 |
| | 61,600 |
| | 2,233 |
| | 3.6 | % |
| Rental Program revenue | | 114,382 |
| | 109,380 |
| | 5,002 |
| | 4.6 | % |
| Expenses: | | | | | | | | |
| Commissions | | 2,734 |
| | 2,309 |
| | 425 |
| | 18.4 | % |
| Repairs and refurbishment | | 9,864 |
| | 12,825 |
| | (2,961 | ) | | (23.1 | )% |
| Taxes and insurance | | 6,102 |
| | 5,734 |
| | 368 |
| | 6.4 | % |
| Marketing and other | | 3,414 |
| | 3,493 |
| | (79 | ) | | (2.3 | )% |
| Rental Program operating and maintenance | | 22,114 |
| | 24,361 |
| | (2,247 | ) | | (9.2 | )% |
| Rental Program NOI | | $ | 92,268 |
| | $ | 85,019 |
| | $ | 7,249 |
| | 8.5 | % |
| | | | | | | | | |
| Other Information | | | | | | | | |
| Number of occupied rentals, end of period | | 11,074 |
| | 10,733 |
| | 341 |
| | 3.2 | % |
| Investment in occupied rental homes, end of period | | $ | 494,945 |
| | $ | 457,691 |
| | $ | 37,254 |
| | 8.1 | % |
| Number of sold rental homes | | 1,168 |
| | 1,089 |
| | 79 |
| | 7.3 | % |
| Weighted average monthly rental rate, end of period | | $ | 901 |
| | $ | 882 |
| | $ | 19 |
| | 2.2 | % |
(1) The renter’s monthly payment includes the site rent and an amount attributable to the rental home lease. The site rent is reflected in the Real Property Operations segment. For purposes of management analysis, the site rent is included in the Rental Program revenue to evaluate the incremental revenue gains associated with implementation of the Rental Program, and assess the overall growth and performance of Rental Program and financial impact to our operations.
Rental Program NOI increased by 8.5 percent compared to 2016. The increase is due to a 4.6 percent increase in Rental Program revenue attributable to a 2.2 percent increase in weighted average monthly rental rates and a 3.2 percent increase in the number of occupied rentals, combined with an overall decrease in Rental Program operating and maintenance expenses.
The 9.2 percent decrease in Rental Program operating and maintenance expenses is primarily due to lower Repairs and refurbishment expenses in 2017 as compared to 2016.
OTHER INCOME STATEMENT ITEMS
The following table summarizes other income and expenses for the years ended December 31, 2017 and 2016 (amounts in thousands):
|
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | | | |
| | | 2017 | | 2016 | | Change | | % Change |
| Ancillary revenue, net | | $ | 10,075 |
| | $ | 9,641 |
| | $ | 434 |
| | 4.5 | % |
| Interest income | | $ | 21,180 |
| | $ | 18,113 |
| | $ | 3,067 |
| | 16.9 | % |
| Brokerage commissions and other revenues, net | | $ | 3,694 |
| | $ | 3,037 |
| | $ | 657 |
| | 21.6 | % |
| Home selling expenses | | $ | 12,457 |
| | $ | 9,744 |
| | $ | 2,713 |
| | 27.8 | % |
| General and administrative expenses | | $ | 74,232 |
| | $ | 63,662 |
| | $ | 10,570 |
| | 16.6 | % |
| Transaction costs | | $ | 9,801 |
| | $ | 31,914 |
| | $ | (22,113 | ) | | (69.3 | )% |
| Catastrophic weather related charges, net | | $ | 8,352 |
| | $ | 1,172 |
| | $ | 7,180 |
| | 612.6 | % |
| Depreciation and amortization | | $ | 261,536 |
| | $ | 221,770 |
| | $ | 39,766 |
| | 17.9 | % |
| Loss on extinguishment of debt | | $ | 6,019 |
| | $ | 1,127 |
| | $ | 4,892 |
| | 434.1 | % |
| Interest expense | | $ | 130,242 |
| | $ | 122,315 |
| | $ | 7,927 |
| | 6.5 | % |
| Other income / (expense), net | | $ | 8,982 |
| | $ | (4,676 | ) | | $ | 13,658 |
| | 292.1 | % |
| Income from nonconsolidated affiliates | | $ | — |
| | $ | 500 |
| | $ | (500 | ) | | (100.0 | )% |
| Current tax expense | | $ | (446 | ) | | $ | (683 | ) | | $ | 237 |
| | (34.7 | )% |
| Deferred tax benefit | | $ | 582 |
| | $ | 400 |
| | $ | 182 |
| | 45.5 | % |
Interest income - increased primarily due to an increase in our installment notes receivable, partially offset by a decrease in our collateralized receivables, as compared to December 31, 2016.
Brokerage commissions and other revenues, net - increased due to the sale of 2,006 brokered homes in 2017 as compared to 1,655 in 2016, a 21.2 percent increase.
Home selling expenses - increased primarily due to higher volumes and higher weighted average selling prices for both new and used homes in 2017, which resulted in higher commissions.
General and administrative expenses - increased primarily due to additional employee related costs as headcount increased in connection with our growth through acquisitions.
Transaction costs - relate to diligence and other expenses incurred in connection with our acquisitions. These costs were significantly lower in 2017 as compared to 2016, due to the acquisition of Carefree Communities, Inc. (“Carefree”) in 2016.
Catastrophic weather related charges, net - In September 2017, Hurricane Irma impacted 121 of our communities in Florida and three in Georgia. We recognized charges totaling $31.7 million comprised of $21.3 million for debris and tree removal, common area repairs, and minor flooding damage, as well as $10.4 million for impaired assets at the three Florida Keys communities. These charges were partially offset by estimated insurance recoveries of $23.7 million.
In 2016, Catastrophic weather related charges, net were primarily attributable to debris and tree removal, common area repairs, and minor flooding damage from hurricanes Hermine and Matthew.
Depreciation and amortization - increased as a result of our acquisitionthe redemption of Carefree in 2016, as well as other properties in the second half of 2016 and during 2017.
Loss on extinguishment of debt - in 2017 of $6.03.4 million was recognized in connection with defeasement or repayment of collateralized term loans totaling $61.4 million. In 2016, the loss on extinguishment of debt of $1.1 million was in connection with repayment of a total of $79.1 million of collateralized term loans. Refer to Note 9, “Debt and Lines for Credit,” in our accompanying Consolidated Financial Statements for additional information.
Interest expense - increased primarily due to 2017 including a full year of interest expense from incremental borrowings of
$338.0 million, $405.0 million, and $139.0 million in connection with our Fannie Mae Financing, NML Financing, and Freddie Mac Financing arrangements, respectively. The $338.0 million and $405.0 million borrowings were entered into in June 2016, and the $139.0 million was entered into in September 2016.
Other income / (expense), net - in 2017 consisted of foreign currency translation gains of $5.9 million and a contingent liability remeasurement gain of $3.0 million, compared to 2016 which consisted of foreign currency translation losses of $5.0 million and a contingent liability remeasurement loss of $0.2 million, partially offset by a $0.5 million gain related to the acquisition of a community.
Income from nonconsolidated affiliates - of $0.5 million in 2016 was due to the saleoutstanding shares of our entire interest7.125% Series A Cumulative Redeemable Preferred Stock in Origen Financial, Inc. Prior to the sale, the carrying value of our investment was zero.November 2017.
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO SUN COMMUNITIES, INC. COMMON STOCKHOLDERS TO FFO
The following table reconciles Net income attributable to Sun Communities, Inc. common stockholders to FFO for the years ended December 31, 2019, 2018, 2017, and 20162017 (in thousands, except per share amounts):
|
| | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2018 | | 2017 | | 2016 |
| Net income attributable to Sun Communities, Inc. common stockholders | | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
|
| Adjustments: | | | | | | |
| Depreciation and amortization | | 288,206 |
| | 262,211 |
| | 221,576 |
|
| Remeasurement of marketable securities | | 3,639 |
| | — |
| | — |
|
| Amounts attributable to noncontrolling interests | | 7,740 |
| | 4,535 |
| | (41 | ) |
| Preferred return to preferred OP units | | 2,206 |
| | 2,320 |
| | 2,462 |
|
| Preferred distribution to Series A-4 Preferred Stock | | 1,737 |
| | 2,107 |
| | — |
|
| Gain on disposition of assets, net | | (23,406 | ) | | (16,075 | ) | | (15,713 | ) |
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) | | $ | 385,615 |
| | $ | 320,119 |
| | $ | 225,653 |
|
| Adjustments: | | | | | | |
Transaction costs (2) | | — |
| | 9,801 |
| | 31,914 |
|
Other acquisition related costs (3) | | 1,001 |
| | 2,810 |
| | 3,328 |
|
| Income from nonconsolidated affiliates | | — |
| | — |
| | (500 | ) |
| Loss on extinguishment of debt | | 2,657 |
| | 6,019 |
| | 1,127 |
|
| Catastrophic weather related costs, net | | 92 |
| | 8,352 |
| | 1,172 |
|
Loss of earnings - catastrophic weather related (4) | | (292 | ) | | 292 |
| | — |
|
| Other expense / (income), net | | 6,453 |
| | (8,982 | ) | | 4,676 |
|
| Debt premium write-off | | (1,467 | ) | | (1,343 | ) | | (839 | ) |
| Ground lease intangible write-off | | 817 |
| | 898 |
| | — |
|
| Deferred tax benefit | | (507 | ) | | (582 | ) | | (400 | ) |
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) | | $ | 394,369 |
| | $ | 337,384 |
| | $ | 266,131 |
|
| | | | | | | |
| Weighted average common shares outstanding - basic: | | 81,387 |
| | 76,084 |
| | 65,856 |
|
| Add: | | | | | | |
| Common stock issuable upon conversion of stock options | | 2 |
| | 2 |
| | 8 |
|
| Restricted stock | | 651 |
| | 625 |
| | 457 |
|
| Common OP units | | 2,733 |
| | 2,756 |
| | 2,844 |
|
| Common stock issuable upon conversion of Series A-1 preferred OP units | | 821 |
| | 869 |
| | 925 |
|
| Common stock issuable upon conversion of Series A-4 preferred stock | | 472 |
| | 585 |
| | — |
|
| Common stock issuable upon conversion of Series A-3 preferred OP units | | 75 |
| | 75 |
| | 75 |
|
| Weighted average common shares outstanding - fully diluted | | 86,141 |
| | 80,996 |
| | 70,165 |
|
| | | | | | | |
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | | $ | 4.48 |
| | $ | 3.95 |
| | $ | 3.22 |
|
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | | $ | 4.58 |
| | $ | 4.17 |
| | $ | 3.79 |
|
|
| | | | | | | | | | | | |
| | | Year Ended |
| | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Net income attributable to Sun Communities, Inc. common stockholders | | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
|
| Adjustments | | | | | | |
| Depreciation and amortization | | 328,646 |
| | 288,206 |
| | 262,211 |
|
| (Gain) / loss on remeasurement of marketable securities | | (34,240 | ) | | 3,639 |
| | — |
|
| Amounts attributable to noncontrolling interests | | 8,474 |
| | 7,740 |
| | 4,535 |
|
| Preferred return to preferred OP units | | 2,610 |
| | 2,206 |
| | 2,320 |
|
| Preferred distribution to Series A-4 preferred stock | | 1,288 |
| | 1,737 |
| | 2,107 |
|
| Gain on disposition of assets, net | | (26,356 | ) | | (23,406 | ) | | (16,075 | ) |
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (4) | | $ | 440,687 |
| | $ | 385,615 |
| | $ | 320,119 |
|
| Adjustments: | | | | | | |
Transaction costs (1) | | — |
| | — |
| | 9,801 |
|
Other acquisition related costs (2) | | 1,146 |
| | 1,001 |
| | 2,810 |
|
| (Gain) / loss on extinguishment of debt | | 16,505 |
| | 1,190 |
| | 4,676 |
|
| Catastrophic weather related charges, net | | 1,737 |
| | 92 |
| | 8,352 |
|
Loss of earnings - catastrophic weather related (3) | | — |
| | (292 | ) | | 292 |
|
| Other (income) / expense, net | | (3,457 | ) | | 6,453 |
| | (8,982 | ) |
Other adjustments (4) | | 314 |
| | 310 |
| | 316 |
|
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (5) | | $ | 456,932 |
| | $ | 394,369 |
| | $ | 337,384 |
|
| | | | | | | |
| Weighted average common shares outstanding - basic | | 88,460 |
| | 81,387 |
| | 76,084 |
|
| Add | | | | | | |
| Common stock issuable upon conversion of stock options | | 1 |
| | 2 |
| | 2 |
|
| Restricted stock | | 454 |
| | 651 |
| | 625 |
|
| Common stock issuable upon conversion of Series A-4 preferred stock | | 423 |
| | 472 |
| | 585 |
|
| Common stock issuable upon conversion of Series A-4 preferred OP units | | 172 |
| | — |
| | — |
|
| Common OP units | | 2,448 |
| | 2,733 |
| | 2,756 |
|
| Common stock issuable upon conversion of Series A-3 preferred OP units | | 75 |
| | 75 |
| | 75 |
|
| Common stock issuable upon conversion of Series A-1 preferred OP units | | 784 |
| | 821 |
| | 869 |
|
| Weighted average common shares outstanding - fully diluted | | 92,817 |
| | 86,141 |
| | 80,996 |
|
| | | | | | | |
| FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | | $ | 4.75 |
| | $ | 4.48 |
| | $ | 3.95 |
|
| Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted | | $ | 4.92 |
| | $ | 4.58 |
| | $ | 4.17 |
|
(1)The effect of certain anti-dilutive convertible securities is excluded from these items.
(2) In January 2018, we adopted ASU 2017-01. Under previous guidance, substantially all of our property acquisitions were accounted for as business combinations with acquisition related costs expensed as incurred and reported as Transaction costs. Under ASU 2017-01, direct acquisition related costs are capitalized as part of the purchase price. Acquisitions costs that do not meet the criteria for capitalization are expensed as incurred.
(3)(2) These costs represent the expenses incurred to bring recently acquired properties up to our operating standards, including items such as tree trimming and painting costs that do not meet our capitalization policy.
(4)(3) During 2018, the adjustment was for the previously estimated FFO impact of the income related to the loss of earnings in excess of the applicable business interruption deductible in relation to our Florida Keys communities, impaired by Hurricane Irma, that was not recognized as income in those respective periods. The income related to the loss of earnings was recognized during the three months ended December 31, 2018 upon notification of payment by the insurance company. During 2017, the adjustment represented the related estimated loss of earnings in excess of the applicable business interruption deductible.
(4) Other adjustments include early retirement compensation expense, ground lease intangible write-off, and deferred tax benefits.
(5) The effect of certain anti-dilutive convertible securities is excluded from these items.
LIQUIDITY AND CAPITAL RESOURCES
Our principal liquidity demands have historically been, and are expected to continue to be, distributions to our stockholders and the unit holders of the Operating Partnership, capital improvement of properties, the purchase of new and pre-owned homes, property acquisitions, development and expansion of properties, and debt repayment.
Subject to market conditions, we intend to continue to identify opportunities to expand our development pipeline and acquire existing communities. We finance acquisitions through available cash, secured financing, draws on our lines of credit, the assumption of existing debt on properties, and the issuance of equity securities. We will continue to evaluate acquisition opportunities that meet our criteria. During the year ended December 31, 2018, we acquired 20 communities. Refer to Note 3, “Real“Real Estate Acquisitions”Acquisitions” in our accompanying Consolidated Financial Statements for information regarding recent community acquisitions.
We also intend to continue to strengthen our capital and liquidity positions by focusing on our core fundamentals, which are generating positive cash flows from operations, maintaining appropriate debt levels and leverage ratios, and controlling overhead costs. We intend to meet our liquidity requirements through available cash balances, cash flows generated from operations, draws on our lines of credit, and the use of debt and equity offerings under our shelf registration statement. Refer to Note 9, “Debt“Debt and Lines of Credit”Credit” and Note 10, “Equity“Equity and Mezzanine Securities”Temporary Equity” in our accompanying Consolidated Financial Statements for additional information.
Capital Expenditures
Our capital expenditures include expansion sites and ground-up development construction costs, lot modifications, recurring capital expenditures and rental home purchases.
For the years ended December 31, 20182019 and 2017,2018, expansion and development activities of $152.7$281.8 million and $88.3$152.7 million, respectively, related to costs consisting primarily of construction of sites and other costs necessary to complete home site improvements. The increase is primarily driven by the ground-up developments and redevelopment at five communities.
For the years ended December 31, 20182019 and 2017,2018, lot modification expenditures were $22.9$31.1 million and $18.1$22.9 million, respectively. These expenditures improve asset quality in our communities and are incurred when an existing home is removed and the site is prepared for a new home (more often than not, a multi-sectional home). These activities, which are mandated by strict manufacturer’s installation requirements and state building codes, include items such as new foundations, driveways, and utility upgrades.
For the years ended December 31, 20182019 and 2017,2018, recurring capital expenditures were $24.3$30.4 million and $14.2$24.3 million, respectively, related to our continued commitment to the upkeep of our properties.
We invest in the acquisition of homes intended for the Rental Program. Expenditures for these investments depend upon the condition of the markets for repossessions and new home sales, as well as rental homes. We finance certain of our new home purchases with a $12.0 million manufactured home floor plan facility. Our ability to purchase homes for sale or rent may be limited by cash received from third-party financing of our home sales, available manufactured home floor plan financing and working capital available on our lines of credit.
Cash Flow Activities
Our cash flow activities are summarized as follows (in thousands):
|
| | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2018 | | 2017 | | 2016 |
| Net Cash Provided by Operating Activities | | $ | 363,114 |
| | $ | 257,983 |
| | $ | 241,455 |
|
| Net Cash Used for Investing Activities | | $ | (733,743 | ) | | $ | (401,642 | ) | | $ | (1,614,512 | ) |
| Net Cash Provided by Financing Activities | | $ | 409,905 |
| | $ | 141,557 |
| | $ | 1,338,970 |
|
| Effect of exchange rate on cash, cash equivalents and restricted cash | | $ | (523 | ) | | $ | 298 |
| | $ | (73 | ) |
|
| | | | | | | | | | | | |
| | | Year Ended |
| | | December 31,
2019 | | December 31,
2018 | | December 31,
2017 |
| Net Cash Provided By Operating Activities | | $ | 476,734 |
| | $ | 363,114 |
| | $ | 257,983 |
|
| Net Cash Used For Investing Activities | | $ | (1,010,457 | ) | | $ | (733,743 | ) | | $ | (401,642 | ) |
| Net Cash Provided By Financing Activities | | $ | 505,880 |
| | $ | 409,905 |
| | $ | 141,557 |
|
| Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | | $ | 411 |
| | $ | (523 | ) | | $ | 298 |
|
Cash, cash equivalents, and restricted cash increaseddecreased by $38.8approximately by $27.5 million from $23.5 million as of December 31, 2017, to $62.3 million as of December 31, 2018.2018, to $34.8 million as of December 31, 2019.
Operating ActivitiesSUN COMMUNITIES, INC.
Operating Activities - Net cash provided by operating activities increased by $105.1$113.6 million from $258.0 million for the year ended December 31, 2017 to $363.1 million for the year ended December 31, 2018.
SUN COMMUNITIES, INC.
2018 to $476.7 million for the year ended December 31, 2019.
Our net cash flows provided by operating activities from continuing operations may be adversely impacted by, among other things: (a) the market and economic conditions in our current markets generally, and specifically in metropolitan areas of our current markets; (b) lower occupancy and rental rates of our properties; (c) increased operating costs, such as wage and benefit costs, insurance premiums, real estate taxes and utilities, that cannot be passed on to our tenants; (d) decreased sales of manufactured homes; and (e) current volatility in economic conditions and the financial markets. See “Risk Factors” in Part I, Item 1A in this Annual Report on Form 10-K.
Investing Activities
- Net cash used for investing activities was $1.0 billion for the year ended December 31, 2019, compared to $733.7 million for year ended December 31, 2018. Refer to Note 3, “Real Estate Acquisitions” in our accompanying Consolidated Financial Statements for additional information.
Financing Activities - Net cash provided by financing activities was $505.9 million for the year ended December 31, 2018,2019, compared to $401.6 million for the year ended December 31, 2017.
Financing Activities
Net cash provided by financing activities was $409.9 million for the year ended December 31, 2018, compared to $141.6 million for the year ended December 31, 2017.2018. Refer to Note 9, “Debt“Debt and Lines of Credit”Credit” and Note 10, “Equity“Equity and Mezzanine Securities”Temporary Equity” in our accompanying Consolidated Financial Statements for additional information.
Financial Flexibility
In July 2017, we entered into a newan at the market offering sales agreement (the(as amended, the “Sales Agreement”) with certain sales agents (collectively, the “Sales Agents”), whereby we may offer and sell shares of our common stock, having an aggregate offering price of up to $450.0 million, from time to time through the Sales Agents. The Sales Agents are entitled to compensation in an agreed amount not to exceed 2.0 percent of the gross price per share for any shares sold from time to time under the Sales Agreement. Through December 31, 2018,2019, we have sold shares of our common stock for gross proceeds of $163.8 million under the Sales Agreement. Refer to Note 10, “Equity and Temporary Equity” in our accompanying Consolidated Financial Statements for additional information.
In April 2017,October 2019, we assumed a term loan facility with Citibank N.A. (“Citibank”), in the amount of $58.0 million. The term loan has a four-year term ending October 29, 2023, and bears interest at a floating rate based on the Eurodollar rate or Prime rate. The outstanding balance was $57.0 million at December 31, 2019.
In May 2019, we amended and restated our credit agreement (the “A&R Credit Agreement”) with Citibank, N.A. (“Citibank”) and certain other lenders. Pursuant to the A&R Credit Agreement,credit agreement, we entered into a senior revolving credit facility with Citibank and certain other lenders in the amount of $650.0$750.0 million, comprised of a $550.0$650.0 million revolving loan, with the ability to use up to $100.0 million for advances in Australian dollars, and a $100.0 million term loan (the “A&R Facility”). We repaidhave until March 17, 2020 to draw on the term loan in full on September 7, 2018 and are unable to reborrowloan. As of December 31, 2019, we had not drawn any funds on the term loan. The A&R Credit Agreementcredit agreement has a four-year term ending April 25, 2021,May 21, 2023, which can be extended for two additional six-month periods, at our option, subject to the satisfaction of certain conditions as defined in the A&R Credit Agreement.credit agreement. The A&R Credit Agreementcredit agreement also provides for, subject to the satisfaction of certain conditions, additional commitments in an amount not to exceed $350.0 million. If additional borrowings are made pursuant to any such additional commitments, the aggregate borrowing limit under the A&R Facility may be increased up to $900.0 million.$1.1 billion.
The A&R Facility bears interest at a floating rate based on the Eurodollar rate or Bank Bill Swap Bid Rate plus a margin that is determined based on our leverage ratio calculated in accordance with the A&R Credit Agreement,credit agreement, which margin can range from 1.351.20 percent to 2.202.10 percent for the revolving loan and 1.20 percent to 2.05 percent for the term loan. As of December 31, 2018,2019, the margin based on our leverage ratio was 1.351.20 percent on the revolving loan and 1.20 percent on the term loan. We had $128.0$123.6 million and zero of borrowings on the revolving loan and no borrowings on the term loan, respectively, as of December 31, 2018.2019.
The A&R Facility provides us with the ability to issue letters of credit. Our issuance of letters of credit does not increase our borrowings outstanding under our line of credit, but does reduce the borrowing amount available. At December 31, 20182019 and December 31, 2017,2018, approximately $3.9$2.8 million and $1.3$3.9 million of availability was used to back standby letters of credit.
Pursuant to the terms of the A&R Facility, we are subject to various financial and other covenants. We are currently in compliance with these covenants. The most restrictive financial covenants for the A&R Facility are as follows:
|
| | | | |
| Covenant | | Requirement | | As of December 31, 20182019 |
| Maximum Leverage Ratio | | <65.0% | | 31.3%26.8% |
| Minimum Fixed Charge Coverage Ratio | | >1.40 | | 2.953.52 |
Minimum Tangible Net Worth(in thousands) | | > $2,918,046$3,257,121 | | $4,677,8345,633,050 |
| Maximum Dividend Payout Ratio | | <95.0% | | 58.7%58.0% |
We anticipate meeting our long-term liquidity requirements, such as scheduled debt maturities, large property acquisitions, constructionexpansion and development of expansion sites and ground-up development communities, and Operating Partnership unit redemptions through the issuance of certain debt or equity securities and/or the collateralization of our properties. At December 31, 2018,2019, we had 186234 unencumbered properties, of which 6165 support the borrowing base for our $650.0 million line of credit. revolving loan in our A&R Facility and 31 support the borrowing base for a term loan facility.
From time to time, we may also issue shares of our capital stock, issue equity units in our Operating Partnership, obtain debt financing, or sell selected assets. Our ability to finance our long-term liquidity requirements in such a manner will be affected by numerous economic factors affecting the MH and RV community industry at the time, including the availability and cost of mortgage debt, our financial condition, the operating history of the properties, the state of the debt and equity markets, and the general national, regional, and local economic conditions. When it becomes necessary for us to approach the credit markets, the volatility in those markets could make borrowing more difficult to secure, more expensive, or effectively unavailable. See “Risk Factors” in Part I, Item 1A inof this Annual Report on Form 10-K. If we are unable to obtain additional debt or equity financing on acceptable terms, our business, results of operations and financial condition would be adversely impacted.
As of December 31, 2019, our net debt to enterprise value was approximately 19.0 percent (assuming conversion of all common OP units, Series A-1 preferred OP units, Series A-3 preferred OP units, Series C preferred OP units and Series D preferred OP units to shares of common stock). Our debt has a weighted average maturity of approximately 11.1 years and a weighted average interest rate of 4.0 percent.
Off-Balance Sheet Arrangements
Our off-balance sheet investments include nonconsolidated affiliates. These investments all have varying ownership structures. Substantially all of our nonconsolidated affiliates are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control, over the operating and financial decisions of these joint venture arrangements. Refer to Note 7,"Investments in Nonconsolidated Affiliates" and Note 9, "Debt and Lines of Credit" in the accompanying consolidated financial statements, for additional information on our off-balance sheet investments.
Nonconsolidated Affiliate Indebtedness - During September 2019, GTSC, LLC entered into a warehouse line of credit with a maximum loan amount of $125.0 million. As of December 31, 2019, the aggregate carrying amount of debt, including both our and our partners’ share, incurred by GTSC was approximately $123.4 million (of which our proportionate share is approximately $49.4 million). The debt bears interest at a variable rate based on LIBOR plus 1.65 percent per annum and matures on September 15, 2023. Refer to Note 7,"Investments in Nonconsolidated Affiliates" for additional information on our nonconsolidated affiliates.
Contractual Cash Obligations
Our primary long-term liquidity needs are principal payments on outstanding indebtedness. As of December 31, 2018,2019, our outstanding contractual obligations, including interest expense, were as follows:
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | Payments Due By Period |
| | | | | (In thousands) |
Contractual Cash Obligations (1) | | Total Due | | <1 year | | 1-3 years | | 3-5 years | | After 5 years |
| Collateralized term loans - Life Companies | | $ | 1,262,351 |
| | $ | 27,576 |
| | $ | 75,797 |
| | $ | 62,806 |
| | $ | 1,096,172 |
|
| Collateralized term loans - FNMA | | 762,632 |
| | 16,416 |
| | 221,560 |
| | 223,628 |
| | 301,028 |
|
| Collateralized term loans - CMBS | | 405,864 |
| | 7,890 |
| | 136,570 |
| | 81,619 |
| | 179,785 |
|
| Collateralized term loans - FMCC | | 382,754 |
| | 6,281 |
| | 13,305 |
| | 131,827 |
| | 231,341 |
|
| Secured borrowings | | 107,731 |
| | 5,265 |
| | 11,917 |
| | 12,754 |
| | 77,795 |
|
| Lines of credit | | 128,000 |
| | — |
| | 128,000 |
| | — |
| | — |
|
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | | 35,277 |
| | — |
| | — |
| | 35,277 |
| | — |
|
| Preferred OP units - mandatorily redeemable | | 37,338 |
| | 2,675 |
| | — |
| | — |
| | 34,663 |
|
| Total principal payments | | $ | 3,121,947 |
| | $ | 66,103 |
| | $ | 587,149 |
| | $ | 547,911 |
| | $ | 1,920,784 |
|
| | | | | | | | | | | |
Interest expense (2) | | $ | 899,780 |
| | $ | 129,261 |
| | $ | 237,145 |
| | $ | 185,468 |
| | $ | 347,906 |
|
| Operating leases | | 64,070 |
| | 3,765 |
| | 7,530 |
| | 7,530 |
| | 45,245 |
|
| Capital lease obligation | | 4,660 |
| | 120 |
| | 240 |
| | 240 |
| | 4,060 |
|
| Total contractual cash obligations | | $ | 4,090,457 |
| | $ | 199,249 |
| | $ | 832,064 |
| | $ | 741,149 |
| | $ | 2,317,995 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | Payments Due By Period |
| | | | | (In thousands) |
Contractual Cash Obligations (1) | | Total Due | | <1 year | | 1-3 years | | 3-5 years | | After 5 years |
| Collateralized term loans - Life Companies | | $ | 1,716,587 |
| | $ | 36,319 |
| | $ | 93,232 |
| | $ | 82,444 |
| | $ | 1,504,592 |
|
| Collateralized term loans - FNMA | | 697,449 |
| | 29,623 |
| | 56,375 |
| | 78,349 |
| | 533,102 |
|
| Collateralized term loans - CMBS | | 397,963 |
| | 8,075 |
| | 189,243 |
| | 198,524 |
| | 2,121 |
|
| Collateralized term loans - FMCC | | 376,473 |
| | 6,502 |
| | 13,883 |
| | 259,317 |
| | 96,771 |
|
| Preferred Equity - Sun NG Resorts - mandatory redeemable | | 35,249 |
| | — |
| | 35,249 |
| | — |
| | — |
|
| Preferred OP units - mandatorily redeemable | | 34,663 |
| | — |
| | — |
| | 34,663 |
| | — |
|
| Lines of credit | | 183,898 |
| | 10,000 |
| | 23,293 |
| | 150,605 |
| | — |
|
| Total principal payments | | $ | 3,442,282 |
| | $ | 90,519 |
| | $ | 411,275 |
| | $ | 803,902 |
| | $ | 2,136,586 |
|
| | | | | | | | | | | |
Interest expense (2) | | $ | 1,202,326 |
| | $ | 138,025 |
| | $ | 250,970 |
| | $ | 206,271 |
| | $ | 607,060 |
|
| Operating leases | | 45,083 |
| | 2,397 |
| | 4,929 |
| | 5,465 |
| | 32,292 |
|
| Finance lease | | 4,540 |
| | 120 |
| | 240 |
| | 4,180 |
| | — |
|
| Total contractual cash obligations | | $ | 4,694,231 |
| | $ | 231,061 |
| | $ | 667,414 |
| | $ | 1,019,818 |
| | $ | 2,775,938 |
|
(1) Contractual cash obligations in this table exclude debt premiums, discounts and deferred financing costs, as applicable.
(2) Our contractual cash obligations related to interest expense are calculated based on the current debt levels, rates and maturities as of December 31, 20182019 (including capital leases and excluding secured borrowings)finance leases), and actual payments required in future periods may be different than the amounts included above. Perpetual securities include one year of interest expense in the “After 5 years” category.
As of December 31, 2018, our net debt to enterprise value approximated 25.2 percent (assuming conversion of all common OP units, Series A-1 preferred OP units, Series A-3 preferred OP units, Series A-4 preferred OP units, and Series C preferred OP units to shares of common stock). Our debt had a weighted average maturity of approximately 9.0 years and a weighted average interest rate of 4.5 percent.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses in the periods presented. We believe that the accounting estimates employed are appropriate and resulting balances are reasonable; however, due to inherent uncertainties in making estimates, actual results could differ from the original estimates, requiring adjustments to these balances in future periods.
The critical accounting estimates that affect the Consolidated Financial Statements and that use judgments and assumptions are listed below. In addition, the likelihood that materially different amounts could be reported under varied conditions and assumptions is discussed.
Refer to Note 1, “Significant“Significant Accounting Policies,” in our accompanying Consolidated Financial Statements for information regarding our critical accounting estimates.
Impact of New Accounting Standards
Refer to Note 17, “Recent“Recent Accounting Pronouncements,” in our accompanying Consolidated Financial Statements for information regarding new accounting pronouncements.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangementsNonconsolidated Affiliate Indebtedness - During September 2019, GTSC entered into a warehouse line of credit with any unconsolidated entities that we believe have or are reasonably likely to have a material effectmaximum loan amount of $125.0 million. As of December 31, 2019, the aggregate carrying amount of debt, including both our and our partners’ share, incurred by GTSC was approximately $123.4 million (of which our proportionate share is approximately $49.4 million). The debt bears interest at a variable rate based on its financial condition, results of operations, liquidity, or capital resources.LIBOR plus 1.65 percent per annum and matures on September 15, 2023.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the exposure to loss resulting from changes in market factors such as interest rates, foreign currency exchange rates, commodity prices, and equity prices.
Interest Rate Risk
Our principal market risk exposure is interest rate risk. We mitigate this risk by maintaining prudent amounts of leverage, minimizing capital costs, and interest expense while continuously evaluating all available debt and equity resources and following established risk management policies and procedures, which include the periodic use of derivatives. Our primary strategy in entering into derivative contracts is to minimize the variability that interest rate changes could have on our future cash flows. From time to time, we employ derivative instruments that effectively convert a portion of our variable rate debt to fixed rate debt. We do not enter into derivative instruments for speculative purposes.
Our variable rate debt totaled $128.0$183.9 million and $194.7$128.0 million as of December 31, 20182019 and 2017,2018, respectively, and bears interest based on Prime or various LIBOR rates. If Prime or LIBOR increased or decreased by 1.0 percent, our interest expense would have increased or decreased by approximately $2.4$2.6 million and $2.3$2.4 million for the years ended December 31, 20182019 and 2017,2018, respectively, based on the $235.9$259.4 million and $229.6$235.9 million average balances outstanding under our variable rate debt facilities, respectively.
Foreign Currency Exchange Rate Risk
Foreign currency exchange rate risk is the risk that fluctuations in currencies against the U.S. dollar will negatively impact our results of operations. We are exposed to foreign currency exchange rate risk as a result of remeasurement and translation of the assets and liabilities of our Canadian properties, and our Australian equity investment and joint venture into U.S. dollars. Fluctuations in foreign currency exchange rates can therefore create volatility in our results of operations and may adversely affect our financial condition.
At December 31, 20182019 and 2017,2018, our stockholder’s equity included $141.4$202.5 million and $91.5$141.4 million from our Canadian subsidiaries and Australian equity investments, respectively, which represented 4.65.2 percent and 3.44.6 percent of total equity, respectively. Based on our sensitivity analysis, a 10.0 percent strengthening of the U.S. dollar against the Canadian and Australian dollars would have caused a reduction of $14.1$20.2 million and $9.2$14.1 million to our total stockholder’s equity at December 31, 20182019 and 2017,2018, respectively.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Financial statements and supplementary data are filed herewith under Item 15.
| |
| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (pursuant to Rules 13a-15(e) or 15d-15(e) of the Exchange Act) at December 31, 2018.2019. Based upon this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2018.2019.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. GAAP. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, misstatements due to error or fraud may not be prevented or detected on a timely basis.
Our management performed an assessment of the effectiveness of our internal control over financial reporting at December 31, 2018,2019, utilizing the criteria discussed in the “Internal Control - Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. The objective of this assessment was to determine whether our internal control over financial reporting was effective at December 31, 2018.2019. Based on management’s assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2018.2019.
The effectiveness of our internal control over financial reporting has been audited by Grant Thornton LLP, an independent registered public accounting firm, as stated in its report which is included herein.
Changes in Internal Control Over Financial Reporting
There were no material changes in our internal control over financial reporting during the year ended December 31, 2018.2019.
ITEM 9B. OTHER INFORMATION
None.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Pursuant to instruction 3 to paragraph (b)the general instructions of Item 401 of Regulation S-K, certain information regarding our executive officers is contained in Part I of this Form 10-K. Unless provided in an amendment to this Annual Report on Form 10-K, the other information required by this Item is incorporated herein by reference to the applicable information in the proxy statement for our 20192020 annual meeting (the “Proxy Statement,”) including the information set forth under the captions “Board“Proposal No.1 Election of Directors and Corporate- Consideration of Director Nominees,” “Corporate Governance - IncumbentBoard of Directors, and Nominees,” “Management and Executive Compensation“Corporate Governance - Executive Officers,Committees of the Board of Directors,” “Section“Security Ownership Information - Section 16(a) Beneficial Ownership Reporting Compliance,” “Board of Directors and Corporate Governance“ Information About Executive Officers - Board of Directors and Committees” and “Board of Directors and Corporate Governance - Consideration of Director Nominees.Executive Officers Biography.”
ITEM 11. EXECUTIVE COMPENSATION
Unless provided in an amendment to this Annual Report on Form 10-K, the information required by this Item is incorporated by reference to the applicable information in the Proxy Statement, including the information set forth under the captions “Management and Executive Compensation,” “Board“Proposal No.1 Election of Directors and Corporate Governance - Director Compensation, Table,” “Compensation“Corporate Governance - Compensation Committee Interlocks and Insider Participation”Participation,” and “Compensation Committee Report.“Executive Compensation.” The information in the section captioned “Compensation“Executive Compensation - Compensation Committee Report” in the Proxy Statement or an amendment to this Annual Report on Form 10-K is incorporated by reference herein but shall be deemed furnished, not filed, and shall not be deemed to be incorporated by reference into any filing we make under the Securities Act or the Exchange Act.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Unless provided in an amendment to this Annual Report on Form 10-K, the information required by this Item is incorporated by reference to the applicable information in the Proxy Statement, including the information set forth under the captions “Security Ownership of Certain Beneficial Owners and Management” and “Securities Authorized for Issuance Under Equity Compensation Plans.”Information”
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Unless provided in an amendment to this Annual Report on Form 10-K, the information required by this Item is incorporated by reference to the Proxy Statement, including the information set forth under the captions “Certain Relationships and Related Transactions and Director Independence,” “Board of Directors and Corporate“Corporate Governance - Board of Directors, and Committees” and “Board” “Corporate Governance - Committees of the Board of Directors, and Corporate” “Corporate Governance - Board Leadership Structure and Independence of Non-Employee Directors.Directors,” and “Corporate Governance - Certain Relationships and Related Party Transactions.”
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Unless provided in an amendment to this Annual Report on Form 10-K, the information required by this Item is incorporated by reference to the Proxy Statement, including the information set forth under the caption “Ratification“ Proposal No.3 - Ratification of Selection of Grant Thornton LLP.”
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
The following documents are filed herewith as part of this Form 10-K:
1. Financial Statements
A list of the financial statements required to be filed as a part of this Annual Report on Form 10‑K is shown in the “Index to the Consolidated Financial Statements and Financial Statement Schedules” filed herewith.
2. Financial Schedule
The financial statement schedule required to be filed as a part of this Annual Report on Form 10‑K is shown in the “Index to the Consolidated Financial Statements and Financial Statement Schedules” filed herewith.
3. Exhibits
A list of the exhibits required by Item 601 of Regulation S‑K to be filed as a part of this Annual Report on Form 10-K is shown on the “Exhibit Index” filed herewith.
ITEM 16. FORM 10-K SUMMARY
None.
EXHIBIT INDEXEXHIBITS
|
| | |
| Exhibit Number | Description | Method of Filing |
| 2.1 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on August 22, 2019 |
| 3.1 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 10-K filed on February 22, 2018 |
| 3.2 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on May 12, 2017 |
| 4.1 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed February 12, 2013 |
4.2 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed March 22, 2016 |
4.3 | | Incorporated by reference to Sun Communities, Inc.’s Registration Statement on Form 8-A filed November 9, 2012 |
4.4 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed December 2, 2014 |
10.1 | Master Credit Facility Agreement, dated June 3, 2016, by and among Sun Apple Creek LLC; Sun Bell Crossing LLC; Sun Boulder Ridge LLC; Aspen-Brentwood Project, LLC; Sun Cave Creek LLC; Sun Countryside Lake Lanier LLC; Sun Cutler Estates LLC; Aspen-Grand Project, LLC; Sun Hamlin LLC; Sun Hawaiian Holly LLC; Holiday West Village Mobile Home Park, LLC; Sun Meadowbrook FL LLC; Sun Oakcrest LLC, Sun Pine Ridge LLC; Sun Scio Farms LLC; Sun Villa MHC LLC; Waverly Shores Village Mobile Home Park, LLC, as Borrowers, and Regions Bank, as Lender | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.2 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.3 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.4 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.5 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.6 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016 |
10.7 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 9, 2016Filed herewith |
| 10.8 | | Incorporated by reference to Sun Communities, Inc.’s Annual Report on Form 10-K for the year ended December 31, December 31, 2002, as amended |
| 10.9 | | Filed herewithIncorporated by reference to Sun Communities, Inc.’s Current Report on Form 10-K filed on February 21, 2019 |
| 10.10 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed February 5, 2019 |
| 10.11 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed July 25, 2012 |
| 10.12 | | Incorporate by reference to Exhibit A to Sun Communities, Inc.’s Definitive Proxy Statement filed on March 29, 2018 |
| 10.13 | | Incorporated by reference to Sun Communities, Inc.’s Proxy Statement dated April 29, 2015 for the Annual meeting of Stockholders held July 20, 2015 |
| 10.14 | | Incorporated by reference to Sun Communities, Inc.’s Registration Statement No. 33 69340 |
|
| | |
| 10.15 | | Incorporated by reference to Sun Communities, Inc.’s Registration Statement No. 33 80972 |
| 10.16 | | Incorporated by reference to Sun Communities, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 |
| 10.17 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed July 15, 2014 |
| 10.18 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed June 24, 2013 |
| 10.19 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed July 15, 2014 |
| 10.20 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on March 8, 2017 |
| 10.21 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed May 20, 2015 |
| 10.22 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on March 8, 2017 |
| 10.23 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed July 17, 2015 |
| 10.24 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on March 8, 2017 |
| 10.25 | | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed July 15, 2014 |
10.2610.29 | At the Market Offering Sales Agreement, dated July 28, 2017, among Sun Communities, Inc., Sun Communities Operating Limited Partnership, BMO Capital Markets Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Robert W. Baird & Co. Incorporated, Fifth Third Securities, Inc., RBC Capital Markets, LLC, BTIG, LLC, Jefferies LLC, Credit Suisse Securities (USA) LLC and Samuel A. Ramirez & Company, Inc. | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on July 28, 2017. |
10.27 | Amendment dated April 26, 2018 to the At the Market Offering Sales Agreement dated July 28, 2017, among Sun Communities, Inc., Sun Communities Operating Limited Partnership, BMO Capital Markets Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Robert W. Baird & Co. Incorporated, Fifth Third Securities, Inc., RBC Capital Markets, LLC, BTIG, LLC, Jefferies LLC, Credit Suisse Securities (USA) LLC and Samuel A. Ramirez & Company, Inc. | Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on April 26, 2018.
|
10.28 | Second Amended and Restated Credit Agreement, dated April 25, 2017 withMay 21, 2019, among Sun Communities Operating Limited Partnership, as Borrower, Citibank, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Citigroup Global MarketsCitibank, N.A., BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and BMO Capital Markets, as Joint Lead Arrangers, and Citigroup Global MarketsCitibank, N.A., BofA Securities, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Bookrunners, and Bank of America, N.A. and Bank of Montreal, as Co-Syndication Agents and Fifth Third Bank, an Ohio Banking Corporation, Regions Bank and RBC Capital Markets as Co-Documentation Agents and the other lenders, PNC Bank, National Association, U.S. Bank National Association, Credit Suisse, Associated Bank, N.A. and Flagstar Bank, FSB.
| Incorporated by reference to Sun Communities, Inc.’s Current Report on Form 8-K filed on April 27, 2017May 24, 2019
|
| 21.1 | | Filed herewith |
| 23.1 | | Filed herewith |
|
| | |
| 31.1 | | Filed herewith |
| 31.2 | | Filed herewith |
| 32.1 | | Furnished herewith |
| 101.INS | XBRL Instance Document | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
| |
| # | Management contract or compensatory plan or arrangement. |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
| | | |
| | SUN COMMUNITIES, INC. (Registrant) |
Dated: February 21, 201920, 2020 | By | /s/ | Gary A. Shiffman |
| | | | Gary A. Shiffman Chief Executive Officer
|
Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
| | | | | |
| | Name | | Capacity | | Date |
| /s/ | Gary A. Shiffman | | Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | | February 21, 201920, 2020 |
| | Gary A. Shiffman | | | | |
| /s/ | Karen J. Dearing | | Executive Vice President, Chief Financial Officer, Treasurer and Secretary (Principal Financial Officer and Principal Accounting Officer) | | February 21, 201920, 2020 |
| | Karen J. Dearing | | | | |
| /s/ | Meghan G. Baivier | | Director | | February 21, 201920, 2020 |
| | Meghan G. Baivier | | | | |
| /s/ | Stephanie W. Bergeron | | Director | | February 21, 201920, 2020 |
| | Stephanie W. Bergeron | | | | |
| /s/ | Brian M. Hermelin | | Director | | February 21, 201920, 2020 |
| | Brian M. Hermelin | | | | |
| /s/ | Ronald A. Klein | | Director | | February 21, 201920, 2020 |
| | Ronald A. Klein | | | | |
| /s/ | Clunet R. Lewis | | Director | | February 21, 201920, 2020 |
| | Clunet R. Lewis | | | | |
| /s/ | Arthur A. Weiss | | Director | | February 21, 201920, 2020 |
| | Arthur A. Weiss | | | | |
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS AND
FINANCIAL STATEMENT SCHEDULE
|
| |
| | Page |
| Reports of Independent Registered Public Accounting Firm | |
| Financial Statements: | |
Consolidated Balance Sheets as of December 31, 20182019 and 20172018 | |
Consolidated Statements of Operations for the Years Ended December 31, 2019, 2018 2017, and 20162017 | |
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2019, 2018 2017, and 2016 | |
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2018, 2017 and 2016 | |
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018 2017, and 20162017 | |
| Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2019, 2018 and 2017 | |
| Notes to Consolidated Financial Statements | |
| Real Estate and Accumulated Depreciation, Schedule III | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Sun Communities, Inc.
Opinion on the financial statements
We have audited the accompanying consolidated balance sheets of Sun Communities, Inc. (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 20182019 and 2017,2018, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2018,2019, and the related notes and the financial statement schedule Real Estate and Accumulated Depreciation, Schedule IIIincluded under Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20182019 and 2017,2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018,2019, in conformity with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2018,2019, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 21, 2019 20, 2020expressed an unqualified opinion.
Change in accounting principle
As discussed in Note 17 to the consolidated financial statements, the Company has changed its method of accounting for leases in 2019 due to the adoption of ASC Topic 842, Leases.
Basis for opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical audit matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Accounting for Acquisitions
The Company's strategy includes growth by acquisition. As described in footnote 3, during 2019, the Company completed forty-four community acquisitions for total consideration of $854 million. The principal considerations for our determination that the accounting for acquisitions is a critical audit matter is that it involves a high degree of subjectivity in evaluating the reasonableness of management's estimates and related assumptions related to the accounting for the recognition of the fair value of assets acquired and liabilities assumed. We performed the following procedures, among others, in connection with forming our overall opinion on the financial statements. We tested management’s controls over the accounting for acquisitions, such as controls over the recognition and measurement of assets acquired, liabilities assumed, and consideration paid. For each of the acquisitions, we read the purchase agreements, evaluated the significant assumptions and methods used in developing the fair value estimates and tested the recognition of the assets acquired and liabilities assumed at fair value.
More specifically, for each acquisition, we assessed, through the use of our internal valuation specialist, whether (1) the values assigned to the tangible assets appeared reasonable based on a cost or market approach for similar properties in each geographic area, (2) intangible assets were properly considered and identified, and (3) the significant assumptions used in valuing the assets and liabilities were reasonable
and (4) if applicable, the value assigned to and accounting for, equity interests in the Company or its subsidiaries that was issued as consideration in the transaction.
As described in footnote 10, the purchase consideration for the acquisition of Country Village Estate also reflected, in part, the estimated fair value of preferred equity interests. In testing the valuation of the equity interests, we considered management’s estimated amount that would be paid upon the ultimate redemption of the securities and the discount rate. We also evaluated management's classification of the equity consideration as either debt, temporary equity or equity on the consolidated balance sheet based on the characteristics of the equity instrument.
Impairment of Investment Properties
As described in footnote 1, the Company reviews the carrying value of investment properties on a quarterly basis or whenever events or changes in circumstances indicate a possible impairment. Events or circumstances that may prompt a review of the carrying value of investment properties may include a significant decrease in the anticipated market price of the investment property, an adverse change to the extent or manner in which an asset may be used, or a significant change in its physical condition or damage due to catastrophic event.
The Company reviews its investment properties for potential impairment through an analysis of net operating income trends period over period. In the event that any impairment indicators are present, the Company undertakes additional analyses utilizing expected undiscounted future cash flows and expected disposition proceeds for a given asset. Forecasting of cash flows requires management to make estimates and assumptions about such variables as the anticipated holding period, rental revenues and operating expenses during the holding period, capital expenditures and rates of return.
In 2019, the Company’s net operating income trend analysis resulted in 10 properties requiring additional analysis. No impairments were identified as a result of the quarterly analysis nor events occurring in 2019.
The principal consideration for our determination that the impairment of investment properties is a critical audit matter is that it involves a high degree of subjectivity in evaluating management's estimates used in determining the undiscounted cash flow estimates. We performed the following procedures, among others, in connection with forming our overall opinion on the financial statements. We tested management’s internal controls over the identification of potential investment property impairments, such as controls over the Company’s quarterly analysis of net operating income trends, as well management review controls to identify potential events which could indicate impairment We examine and evaluate the Company’s net operating income trend analysis and its assessment of other events, and if additional analysis is necessary, we evaluated the significant assumptions and methods used in developing the undiscounted cash flow estimates.
More specifically, when the net operating income analysis indicated that additional analysis was required, we assessed whether the significant assumptions, including estimated holding period, rental revenues and operating expenses during the holding period, capital expenditures and rates of return used in determining the future undiscounted cash flows were reasonable.
/s/ GRANT THORNTON LLP
We have served as the Company’s auditor since 2003.
Southfield, Michigan
February 21, 2019
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Sun Communities, Inc.
Opinion on internal control over financial reporting
We have audited the internal control over financial reporting of Sun Communities, Inc. (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2018,2019, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018,2019, based on criteria established in the 2013 Internal Control-Integrated Framework issued by COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2018,2019, and our report dated February 21, 201920, 2020 expressed an unqualified opinion on those financial statements.
Basis for opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ GRANT THORNTON LLP
Southfield, Michigan
February 21, 201920, 2020
SUN COMMUNITIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts) | | | | As of December 31, | As of |
| | 2018 | | 2017 | December 31, 2019 | | December 31, 2018 |
| ASSETS | | | | |
| Assets | | | | |
| Land | $ | 1,201,945 |
| | $ | 1,107,838 |
| $ | 1,414,279 |
| | $ | 1,201,945 |
|
| Land improvements and buildings | 5,586,250 |
| | 5,102,014 |
| 6,595,272 |
| | 5,586,250 |
|
| Rental homes and improvements | 571,661 |
| | 528,074 |
| 627,175 |
| | 571,661 |
|
| Furniture, fixtures and equipment | 201,090 |
| | 144,953 |
| 282,874 |
| | 201,090 |
|
| Investment property | 7,560,946 |
| | 6,882,879 |
| 8,919,600 |
| | 7,560,946 |
|
| Accumulated depreciation | (1,442,630 | ) | | (1,237,525 | ) | (1,686,980 | ) | | (1,442,630 | ) |
| Investment property, net (including $308,171 and $50,193 for consolidated variable interest entities at December 31, 2018 and December 31, 2017; see Note 8) | 6,118,316 |
| | 5,645,354 |
| |
| Cash and cash equivalents | 50,311 |
| | 10,127 |
| |
| Investment property, net (including $344,300 and $308,171 for consolidated VIEs at December 31, 2019 and December 31, 2018; see Note 8) | | 7,232,620 |
| | 6,118,316 |
|
| Cash, cash equivalents and restricted cash | | 34,830 |
| | 62,262 |
|
| Marketable securities | | 94,727 |
| | 49,037 |
|
| Inventory of manufactured homes | 49,199 |
| | 30,430 |
| 62,061 |
| | 49,199 |
|
| Notes and other receivables, net | 160,077 |
| | 163,496 |
| 157,926 |
| | 160,077 |
|
| Collateralized receivables, net | 106,924 |
| | 128,246 |
| — |
| | 106,924 |
|
| Other assets, net (including $19,809 and $1,659 for consolidated variable interest entities at December 31, 2018 and December 31, 2017; see Note 8) | 225,199 |
| | 134,304 |
| |
| TOTAL ASSETS | $ | 6,710,026 |
| | $ | 6,111,957 |
| |
| LIABILITIES |
| |
| |
| Mortgage loans payable (including $44,172 and $41,970 for consolidated variable interest entities at December 31, 2018 and December 31, 2017; see Note 8) | $ | 2,815,957 |
| | $ | 2,867,356 |
| |
| Other assets, net (including $23,894 and $19,809 for consolidated VIEs at December 31, 2019 and December 31, 2018; see Note 8) | | 219,896 |
| | 164,211 |
|
| Total Assets | | $ | 7,802,060 |
| | $ | 6,710,026 |
|
| Liabilities | | | | |
| Mortgage loans payable (including $46,993 and $44,172 for consolidated VIEs at December 31, 2019 and December 31, 2018; see Note 8) | | $ | 3,180,592 |
| | $ | 2,815,957 |
|
| Secured borrowings on collateralized receivables | 107,731 |
| | 129,182 |
| — |
| | 107,731 |
|
| Preferred Equity - Sun NG RV Resorts LLC - mandatorily redeemable (fully attributable to consolidated variable interest entities at December 31, 2018; See Note 8) | 35,277 |
| | — |
| |
| Preferred Equity - Sun NG RV Resorts LLC - mandatorily redeemable (fully attributable to consolidated VIEs; see Note 8) | | 35,249 |
| | 35,277 |
|
| Preferred OP units - mandatorily redeemable | 37,338 |
| | 41,443 |
| 34,663 |
| | 37,338 |
|
| Lines of credit | 128,000 |
| | 41,257 |
| 183,898 |
| | 128,000 |
|
| Distributions payable | 63,249 |
| | 55,225 |
| 71,704 |
| | 63,249 |
|
| Advanced reservation deposits and rent | 133,698 |
| | 132,205 |
| 133,420 |
| | 133,698 |
|
| Other liabilities (including $6,914 and $1,468 for consolidated variable interest entities at December 31, 2018 and December 31, 2017; see Note 8) | 157,862 |
| | 138,536 |
| |
| TOTAL LIABILITIES | 3,479,112 |
| | 3,405,204 |
| |
| Accrued expenses and accounts payable | | 127,289 |
| | 106,281 |
|
| Other liabilities (including $13,631 and $6,914 for consolidated VIEs at December 31, 2019 and December 31, 2018; see Note 8) | | 81,289 |
| | 51,581 |
|
| Total Liabilities | | 3,848,104 |
| | 3,479,112 |
|
| Commitments and contingencies (see Note 18) |
| |
| | | |
| Series A-4 preferred stock, $0.01 par value. Issued and outstanding: 1,063 shares at December 31, 2018 and 1,085 shares at December 31, 2017 | 31,739 |
| | 32,414 |
| |
| Series A-4 preferred stock, $0.01 par value. Issued and outstanding:1,063 December 31, 2018 | | — |
| | 31,739 |
|
| Series A-4 preferred OP units | 9,877 |
| | 10,652 |
| — |
| | 9,877 |
|
| Equity Interests - NG Sun LLC (fully attributable to consolidated variable interest entities at December 31, 2018; See Note 8) | 21,976 |
| | — |
| |
| STOCKHOLDERS' EQUITY | | | | |
| Common stock, $0.01 par value. Authorized: 180,000 shares; Issued and outstanding: 86,357 shares at December 31, 2018 and 79,679 shares at December 31, 2017 | 864 |
| | 797 |
| |
| Series D preferred OP units | | 50,913 |
| | — |
|
| Equity interests - NG Sun LLC and NG Whitewater (fully attributable to consolidated VIEs; see Note 8) | | 27,091 |
| | 21,976 |
|
| Stockholders' Equity | | | | |
| Common stock, $0.01 par value. Authorized: 180,000 shares; Issued and outstanding: 93,180 December 31, 2019 and 86,357 December 31, 2018 | | 932 |
| | 864 |
|
| Additional paid-in capital | 4,398,949 |
| | 3,758,533 |
| 5,213,264 |
| | 4,398,949 |
|
| Accumulated other comprehensive (loss) income | (4,504 | ) | | 1,102 |
| |
| Accumulated other comprehensive loss | | (1,331 | ) | | (4,504 | ) |
| Distributions in excess of accumulated earnings | (1,288,486 | ) | | (1,162,001 | ) | (1,393,141 | ) | | (1,288,486 | ) |
| Total Sun Communities, Inc. stockholders' equity | 3,106,823 |
| | 2,598,431 |
| 3,819,724 |
| | 3,106,823 |
|
| Noncontrolling interests | | | | | | |
| Common and preferred OP units | 53,354 |
| | 60,971 |
| 47,686 |
| | 53,354 |
|
| Consolidated variable interest entities | 7,145 |
| | 4,285 |
| 8,542 |
| | 7,145 |
|
| Total noncontrolling interests | 60,499 |
| | 65,256 |
| 56,228 |
| | 60,499 |
|
| TOTAL STOCKHOLDERS' EQUITY | 3,167,322 |
| | 2,663,687 |
| |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,710,026 |
| | $ | 6,111,957 |
| |
| Total Stockholders' Equity | | 3,875,952 |
| | 3,167,322 |
|
| Total Liabilities, Temporary Equity and Stockholders' Equity | | $ | 7,802,060 |
| | $ | 6,710,026 |
|
See accompanying Notes to Consolidated Financial Statements.
SUN COMMUNITIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
|
| | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2018 | | 2017 | | 2016 |
| REVENUES | | | | | | |
| Income from real property | | $ | 825,973 |
| | $ | 742,228 |
| | $ | 620,917 |
|
| Revenue from home sales | | 166,031 |
| | 127,408 |
| | 110,507 |
|
| Rental home revenue | | 53,657 |
| | 50,549 |
| | 47,780 |
|
| Ancillary revenue | | 54,107 |
| | 37,511 |
| | 33,424 |
|
| Interest | | 20,853 |
| | 21,180 |
| | 18,113 |
|
| Brokerage commissions and other revenues, net | | 6,204 |
| | 3,694 |
| | 3,037 |
|
| Total Revenues | | 1,126,825 |
| | 982,570 |
| | 833,778 |
|
| COSTS AND EXPENSES | | | | | | |
| Property operating and maintenance | | 236,097 |
| | 210,278 |
| | 173,274 |
|
| Real estate taxes | | 56,555 |
| | 52,288 |
| | 44,306 |
|
| Cost of home sales | | 123,333 |
| | 95,114 |
| | 80,420 |
|
| Rental home operating and maintenance | | 23,099 |
| | 22,114 |
| | 24,361 |
|
| Ancillary expenses | | 37,623 |
| | 27,436 |
| | 23,783 |
|
| Home selling expenses | | 15,722 |
| | 12,457 |
| | 9,744 |
|
| General and administrative | | 81,438 |
| | 74,232 |
| | 63,662 |
|
| Transaction costs | | 472 |
| | 9,801 |
| | 31,914 |
|
| Catastrophic weather related charges, net | | 92 |
| | 8,352 |
| | 1,172 |
|
| Depreciation and amortization | | 287,262 |
| | 261,536 |
| | 221,770 |
|
| Loss on extinguishment of debt | | 2,657 |
| | 6,019 |
| | 1,127 |
|
| Interest | | 129,089 |
| | 127,128 |
| | 119,163 |
|
| Interest on mandatorily redeemable preferred OP units / equity | | 3,694 |
| | 3,114 |
| | 3,152 |
|
| Total Expenses | | 997,133 |
| | 909,869 |
| | 797,848 |
|
| Income Before Other Items | | 129,692 |
| | 72,701 |
| | 35,930 |
|
| Remeasurement of marketable securities | | (3,639 | ) | | — |
| | — |
|
| Other (expense) / income, net | | (6,453 | ) | | 8,982 |
| | (4,676 | ) |
| Income from nonconsolidated affiliates | | 646 |
| | — |
| | 500 |
|
| Current tax expense | | (595 | ) | | (446 | ) | | (683 | ) |
| Deferred tax benefit | | 507 |
| | 582 |
| | 400 |
|
| Net Income | | 120,158 |
|
| 81,819 |
|
| 31,471 |
|
| Less: Preferred return to preferred OP units / equity | | (4,486 | ) | | (4,581 | ) | | (5,006 | ) |
| Less: Amounts attributable to noncontrolling interests | | (8,443 | ) | | (5,055 | ) | | (150 | ) |
| Net Income Attributable to Sun Communities, Inc. | | 107,229 |
| | 72,183 |
| | 26,315 |
|
| Less: Preferred stock distribution | | (1,736 | ) | | (7,162 | ) | | (8,946 | ) |
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
|
| | | | | | | |
| Weighted average common shares outstanding: | | | | | | |
| Basic | | 81,387 |
| | 76,084 |
| | 65,856 |
|
| Diluted | | 82,040 |
| | 76,711 |
| | 66,321 |
|
| Earnings per share (Refer to Note 14): | | | | | | |
| Basic | | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.27 |
|
| Diluted | | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.26 |
|
|
| | | | | | | | | | | | |
| | | Year Ended |
| | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Revenues | | | | | | |
| Income from real property | | $ | 925,664 |
| | $ | 825,973 |
| | $ | 742,228 |
|
| Revenue from home sales | | 181,936 |
| | 166,031 |
| | 127,408 |
|
| Rental home revenue | | 57,572 |
| | 53,657 |
| | 50,549 |
|
| Ancillary revenue | | 66,881 |
| | 54,107 |
| | 37,511 |
|
| Interest income | | 17,857 |
| | 20,852 |
| | 21,179 |
|
| Brokerage commissions and other revenues, net | | 14,127 |
| | 6,205 |
| | 3,695 |
|
| Total Revenues | | 1,264,037 |
| | 1,126,825 |
| | 982,570 |
|
| Expenses | | | | | | |
| Property operating and maintenance | | 266,378 |
| | 236,097 |
| | 210,278 |
|
| Real estate taxes | | 61,880 |
| | 56,555 |
| | 52,288 |
|
| Cost of home sales | | 134,357 |
| | 123,333 |
| | 95,114 |
|
| Rental home operating and maintenance | | 21,995 |
| | 23,304 |
| | 22,160 |
|
| Ancillary expenses | | 47,432 |
| | 38,043 |
| | 27,450 |
|
| Home selling expenses | | 14,690 |
| | 15,722 |
| | 12,457 |
|
| General and administrative expenses | | 93,964 |
| | 81,429 |
| | 83,973 |
|
| Catastrophic weather related charges, net | | 1,737 |
| | 92 |
| | 8,352 |
|
| Depreciation and amortization | | 328,067 |
| | 287,262 |
| | 261,536 |
|
| Loss on extinguishment of debt | | 16,505 |
| | 1,190 |
| | 4,676 |
|
| Interest expense | | 133,153 |
| | 130,556 |
| | 128,471 |
|
| Interest on mandatorily redeemable preferred OP units / equity | | 4,698 |
| | 3,694 |
| | 3,114 |
|
| Total Expenses | | 1,124,856 |
| | 997,277 |
| | 909,869 |
|
| Income Before Other Items | | 139,181 |
| | 129,548 |
| | 72,701 |
|
| Gain / (loss) on remeasurement of marketable securities | | 34,240 |
| | (3,639 | ) | | — |
|
| Other income / (expense), net | | 3,457 |
| | (6,453 | ) | | 8,982 |
|
| Income from nonconsolidated affiliates | | 1,374 |
| | 790 |
| | — |
|
| Current tax expense | | (1,095 | ) | | (595 | ) | | (446 | ) |
| Deferred tax benefit | | 222 |
| | 507 |
| | 582 |
|
| Net Income | | 177,379 |
| | 120,158 |
| | 81,819 |
|
| Less: Preferred return to preferred OP units / equity | | (6,058 | ) | | (4,486 | ) | | (4,581 | ) |
| Less: Amounts attributable to noncontrolling interests | | (9,768 | ) | | (8,443 | ) | | (5,055 | ) |
| Net Income attributable to Sun Communities, Inc. | | 161,553 |
| | 107,229 |
| | 72,183 |
|
| Less: Preferred stock distribution | | (1,288 | ) | | (1,736 | ) | | (7,162 | ) |
| Net Income attributable to Sun Communities, Inc. common stockholders | | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
|
| | | | | | | |
| Weighted average common shares outstanding - basic | | 88,460 |
| | 81,387 |
| | 76,084 |
|
| Weighted average common shares outstanding - diluted | | 88,915 |
| | 82,040 |
| | 76,711 |
|
| | | | | | | |
| Basic earnings per share (see Note 14) | | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
|
| Diluted earnings per share (see Note 14) | | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
|
See accompanying Notes to Consolidated Financial Statements.
SUN COMMUNITIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
|
| | | | | | | | | | | |
| | Year Ended December 31, |
| | 2018 | | 2017 | | 2016 |
| Net Income | $ | 120,158 |
| | $ | 81,819 |
| | $ | 31,471 |
|
| Foreign currency translation (loss) / gain | (5,878 | ) | | 4,527 |
| | (3,401 | ) |
| Total Comprehensive Income | 114,280 |
| | 86,346 |
| | 28,070 |
|
| Less: Comprehensive income / (loss) attributable to noncontrolling interests | 8,171 |
| | 5,299 |
| | (70 | ) |
| Comprehensive Income Attributable to Sun Communities, Inc. | $ | 106,109 |
| | $ | 81,047 |
| | $ | 28,140 |
|
|
| | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Net Income | $ | 177,379 |
| | $ | 120,158 |
| | $ | 81,819 |
|
| Foreign currency translation gain / (loss) adjustment | 3,328 |
| | (5,878 | ) | | 4,527 |
|
| Total Comprehensive Income | 180,707 |
| | 114,280 |
| | 86,346 |
|
| Less: Comprehensive Income attributable to noncontrolling interests | (9,923 | ) | | (8,171 | ) | | (5,299 | ) |
| Comprehensive Income attributable to Sun Communities, Inc. | $ | 170,784 |
| | $ | 106,109 |
| | $ | 81,047 |
|
See accompanying Notes to Consolidated Financial Statements.
SUN COMMUNITIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
| | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Operating Activities | | | | | |
| Net income | $ | 177,379 |
| | $ | 120,158 |
| | $ | 81,819 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
| Gain on disposition of assets | (11,085 | ) | | (9,376 | ) | | (9,338 | ) |
| Unrealized foreign currency translation (gain) / loss | (4,557 | ) | | 8,234 |
| | (6,146 | ) |
| Remeasurement of marketable securities | (34,240 | ) | | 3,639 |
| | — |
|
| Contingent liability remeasurement (gain) / loss | 1,503 |
| | (2,336 | ) | | (3,035 | ) |
| Asset impairment charges | — |
| | — |
| | 742 |
|
| Share-based compensation | 17,482 |
| | 15,066 |
| | 12,695 |
|
| Depreciation and amortization | 313,966 |
| | 274,432 |
| | 256,193 |
|
| Deferred tax benefit | (222 | ) | | (507 | ) | | (582 | ) |
| Amortization of below market lease | (7,442 | ) | | (7,399 | ) | | (7,402 | ) |
| Amortization of debt premium | (4,962 | ) | | (6,353 | ) | | (8,205 | ) |
| Amortization of deferred financing costs | 2,988 |
| | 3,233 |
| | 2,910 |
|
| Amortization of ground lease intangibles | 752 |
| | 1,638 |
| | 1,914 |
|
| Loss on extinguishment of debt | 16,505 |
| | 1,190 |
| | 4,676 |
|
| Income from nonconsolidated affiliates | (1,374 | ) | | (790 | ) | | — |
|
| Distributions from nonconsolidated affiliates | 3,049 |
| | — |
| | — |
|
| Change in notes receivable from financed sales of inventory homes, net of repayments | 2,988 |
| | (2,299 | ) | | (26,193 | ) |
| Change in inventory, other assets and other receivables, net | (44,322 | ) | | (39,514 | ) | | (33,031 | ) |
| Change in other liabilities | 48,326 |
| | 4,098 |
| | (9,034 | ) |
| Net Cash Provided By Operating Activities | 476,734 |
| | 363,114 |
| | 257,983 |
|
| Investing Activities | | | | | |
| Investment in properties | (569,261 | ) | | (389,399 | ) | | (288,537 | ) |
| Acquisitions of properties, net of cash acquired | (472,681 | ) | | (320,268 | ) | | (120,377 | ) |
| Proceeds from dispositions of assets and depreciated homes, net | 61,337 |
| | 55,855 |
| | 8,575 |
|
| Issuance of notes and other receivables | (18,122 | ) | | (216 | ) | | (3,918 | ) |
| Repayments of notes and other receivables | 4,542 |
| | 4,312 |
| | 2,615 |
|
| Investments in nonconsolidated affiliates | (60,742 | ) | | (84,997 | ) | | — |
|
| Distributions from nonconsolidated affiliates | 44,470 |
| | 970 |
| | — |
|
| Net Cash Used For Investing Activities | (1,010,457 | ) | | (733,743 | ) | | (401,642 | ) |
| Financing Activities | | | | | |
| Issuance of common stock, OP units, and preferred OP units, net | 440,782 |
| | 623,540 |
| | 487,677 |
|
| Redemption of Series B-3 preferred OP units | (2,675 | ) | | (4,105 | ) | | (4,460 | ) |
| Borrowings on lines of credit | 3,881,543 |
| | 1,542,677 |
| | 661,000 |
|
| Payments on lines of credit | (3,883,950 | ) | | (1,456,486 | ) | | (719,536 | ) |
| Proceeds from issuance of other debt | 923,721 |
| | 250,000 |
| | 185,153 |
|
| Payments on other debt | (552,868 | ) | | (298,754 | ) | | (124,427 | ) |
| Prepayment penalty on debt | (18,838 | ) | | (2,024 | ) | | (6,019 | ) |
| Redemption of Series A-4 cumulative convertible preferred stock | — |
| | — |
| | (85,000 | ) |
| Proceeds received from return of prepaid deferred financing costs | 1,618 |
| | — |
| | — |
|
| Redemption of Series A-4 preferred stock and OP units | — |
| | — |
| | (24,698 | ) |
| Distributions to stockholders, OP unit holders, and preferred OP unit holders | (276,697 | ) | | (242,813 | ) | | (224,483 | ) |
| Payments for deferred financing costs | (6,756 | ) | | (2,130 | ) | | (3,650 | ) |
| Net Cash Provided By Financing Activities | 505,880 |
| | 409,905 |
| | 141,557 |
|
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 411 |
| | (523 | ) | | 298 |
|
| Net change in cash, cash equivalents and restricted cash | (27,432 | ) | | 38,753 |
| | (1,804 | ) |
| Cash, cash equivalents and restricted cash, beginning of period | 62,262 |
| | 23,509 |
| | 25,313 |
|
| Cash, cash equivalents and restricted cash, end of period | $ | 34,830 |
| | $ | 62,262 |
| | $ | 23,509 |
|
|
| | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Supplemental Information | | | | | |
| Cash paid for interest (net of capitalized interest of $7,943, $4,328 and $2,755 respectively) | $ | 134,990 |
| | $ | 126,153 |
| | $ | 124,046 |
|
| Cash paid for interest on mandatorily redeemable debt | $ | 4,698 |
| | $ | 2,551 |
| | $ | 3,114 |
|
| Cash paid (refunds) for income taxes | $ | 948 |
| | $ | 461 |
| | $ | (194 | ) |
| Noncash investing and financing activities | | | | | |
| Reduction in secured borrowing balance | $ | 107,731 |
| | $ | 21,451 |
| | $ | 23,449 |
|
| Change in distributions declared and outstanding | $ | 8,452 |
| | $ | 7,889 |
| | $ | 3,267 |
|
| Conversion of common and preferred OP units | $ | 11,310 |
| | $ | 1,515 |
| | $ | 3,556 |
|
| Conversion of Series A-4 preferred stock | $ | 31,739 |
| | $ | 675 |
| | $ | 4,720 |
|
| Capital lease | $ | — |
| | $ | — |
| | $ | 4,114 |
|
| Noncash investing and financing activities at the date of acquisition | | | | | |
| Acquisitions - Common stock and OP units issued | $ | 313,391 |
| | $ | — |
| | $ | 28,410 |
|
| Acquisitions - Equity Interests - NG Sun LLC (see Note 8) | $ | — |
| | $ | 21,976 |
| | $ | — |
|
| Acquisitions - Preferred Equity - Sun NG RV Resorts LLC (see Note 8) | $ | — |
| | $ | 35,277 |
| | $ | — |
|
| Acquisitions - Debt | $ | 61,900 |
| | $ | 3,120 |
| | $ | 4,592 |
|
| Acquisitions - Series D preferred interest | $ | 51,930 |
| | $ | — |
| | $ | — |
|
| Acquisitions - Escrow | $ | 392 |
| | $ | — |
| | $ | — |
|
See accompanying Notes to Consolidated Financial Statements.
SUN COMMUNITIES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
| | | | | | Stockholders’ Equity | | | Stockholders’ Equity | | |
| | Temporary Equity | | 7.125% Series A Cumulative Redeemable Preferred Stock | | Common Stock | | Additional Paid-In Capital | | Distributions in Excess of Accumulated Earnings | | Accumulated Other Comprehensive Income / (Loss) | | Non-controlling Interests | | Total Stockholders’ Equity | Temporary Equity | | 7.125% Series A Cumulative Redeemable Preferred Stock | | Common Stock | | Additional Paid-in Capital | | Distributions in Excess of Accumulated Earnings | | Accumulated Other Comprehensive Income / (Loss) | | Non-controlling Interests | | Total Stockholders’ Equity | | Total Equity |
| Balance at December 31, 2015 | $ | 82,797 |
| | $ | 34 |
| | $ | 584 |
| | $ | 2,319,314 |
| | $ | (864,122 | ) | | $ | — |
| | $ | 80,771 |
| | $ | 1,536,581 |
| |
| Issuance of common stock from exercise of options, net | — |
| | — |
| | — |
| | 149 |
| | — |
| | — |
| | — |
| | 149 |
| |
| Issuance, conversion of OP units and associated costs of common stock, net | (3,248 | ) | | — |
| | 144 |
| | 981,174 |
| | — |
| | — |
| | (2,687 | ) | | 978,631 |
| |
| Conversion of Series A-4 preferred stock | (11,503 | ) | | — |
| | — |
| | 11,503 |
| | — |
| | — |
| | — |
| | 11,503 |
| |
| Share-based compensation - amortization and forfeitures | — |
| | — |
| | 4 |
| | 9,301 |
| | 252 |
| | — |
| | — |
| | 9,557 |
| |
| Foreign currency translation loss | — |
| | — |
| | — |
| | — |
| | — |
| | (3,181 | ) | | (220 | ) | | (3,401 | ) | |
| Net income | 90 |
| | — |
| | — |
| | — |
| | 31,321 |
| | — |
| | 60 |
| | 31,381 |
| |
| Distributions | (1,192 | ) | | — |
| | — |
| | — |
| | (190,866 | ) | | — |
| | (11,308 | ) | | (202,174 | ) | |
| Balance at December 31, 2016 | $ | 66,944 |
| | $ | 34 |
| | $ | 732 |
| | $ | 3,321,441 |
| | $ | (1,023,415 | ) | | $ | (3,181 | ) | | $ | 66,616 |
| | $ | 2,362,227 |
| $ | 66,944 |
| | $ | 34 |
| | $ | 732 |
| | $ | 3,321,441 |
| | $ | (1,023,415 | ) | | $ | (3,181 | ) | | $ | 66,616 |
| | $ | 2,362,227 |
| | $ | 2,429,171 |
|
| Issuance of common stock and common OP units, net | — |
| | — |
| | 63 |
| | 514,024 |
| | — |
| | — |
| | 2,001 |
| | 516,088 |
| — |
| | — |
| | 63 |
| | 514,024 |
| | — |
| | — |
| | 2,001 |
| | 516,088 |
| | 516,088 |
|
| Conversion of OP units | (259 | ) | | — |
| | 1 |
| | 3,556 |
| | — |
| | — |
| | (3,298 | ) | | 259 |
| (259 | ) | | — |
| | 1 |
| | 3,556 |
| | — |
| | — |
| | (3,298 | ) | | 259 |
| | — |
|
| Redemption of Series A-4 preferred stock | (13,093 | ) | | — |
| | — |
| | (3,867 | ) | | — |
| | — |
| | — |
| | (3,867 | ) | |
| Conversion of Series A-4 preferred stock | (4,720 | ) | | — |
| | 1 |
| | 4,719 |
| | — |
| | — |
| | — |
| | 4,720 |
| |
| Redemption of series A-4 preferred stock | | (13,093 | ) | | — |
| | — |
| | (3,867 | ) | | — |
| | — |
| | — |
| | (3,867 | ) | | (16,960 | ) |
| Conversion of series A-4 preferred stock | | (4,720 | ) | | — |
| | 1 |
| | 4,719 |
| | — |
| | — |
| | — |
| | 4,720 |
| | — |
|
| Redemption of Series A-4 preferred OP units | (5,166 | ) | | — |
| | — |
| | (2,571 | ) | | — |
| | — |
| | — |
| | (2,571 | ) | (5,166 | ) | | — |
| | — |
| | (2,571 | ) | | — |
| | — |
| | — |
| | (2,571 | ) | | (7,737 | ) |
| Redemption of Series A Cumulative Convertible Preferred Stock | — |
| | (34 | ) | | — |
| | (84,966 | ) | | — |
| | — |
| | — |
| | (85,000 | ) | |
| Redemption of Series A cumulative convertible preferred stock | | — |
| | (34 | ) | | — |
| | (84,966 | ) | | — |
| | — |
| | — |
| | (85,000 | ) | | (85,000 | ) |
| Share-based compensation - amortization and forfeitures | — |
| | — |
| | — |
| | 12,398 |
| | 297 |
| | — |
| | — |
| | 12,695 |
| — |
| | — |
| | — |
| | 12,398 |
| | 297 |
| | — |
| | — |
| | 12,695 |
| | 12,695 |
|
| Acquisition of noncontrolling interests | — |
| | — |
| | — |
| | (6,201 | ) | | — |
| | — |
| | 6,101 |
| | (100 | ) | |
| Acquisition of noncontrolling interest | | — |
| | — |
| | — |
| | (6,201 | ) | | — |
| | — |
| | 6,101 |
| | (100 | ) | | (100 | ) |
| Foreign currency translation gain | — |
| | — |
| | — |
| | — |
| | — |
| | 4,283 |
| | 244 |
| | 4,527 |
| — |
| | — |
| | — |
| | — |
| | — |
| | 4,283 |
| | 244 |
| | 4,527 |
| | 4,527 |
|
| Net income | 205 |
| | — |
| | — |
| | — |
| | 76,765 |
| | — |
| | 4,849 |
| | 81,614 |
| 205 |
| | — |
| | — |
| | — |
| | 76,765 |
| | — |
| | 4,849 |
| | 81,614 |
| | 81,819 |
|
| Distributions | (845 | ) | | — |
| | — |
| | — |
| | (215,648 | ) | | — |
| | (11,257 | ) | | (226,905 | ) | (845 | ) | | — |
| | — |
| | — |
| | (215,648 | ) | | — |
| | (11,257 | ) | | (226,905 | ) | | (227,750 | ) |
| Balance at December 31, 2017 | $ | 43,066 |
| | $ | — |
| | $ | 797 |
| | $ | 3,758,533 |
| | $ | (1,162,001 | ) | | $ | 1,102 |
| | $ | 65,256 |
| | $ | 2,663,687 |
| $ | 43,066 |
| | $ | — |
| | $ | 797 |
| | $ | 3,758,533 |
| | $ | (1,162,001 | ) | | $ | 1,102 |
| | $ | 65,256 |
| | $ | 2,663,687 |
| | $ | 2,706,753 |
|
| Issuance of common stock and common OP units, net | — |
| | — |
| | 66 |
| | 623,474 |
| | — |
| | — |
| | — |
| | 623,540 |
| — |
| | — |
| | 66 |
| | 623,474 |
| | — |
| | — |
| | — |
| | 623,540 |
| | 623,540 |
|
| Conversion of OP units | (342 | ) | | — |
| | 1 |
| | 1,514 |
| | — |
| | — |
| | (1,173 | ) | | 342 |
| (342 | ) | | — |
| | 1 |
| | 1,514 |
| | — |
| | — |
| | (1,173 | ) | | 342 |
| | — |
|
| Conversion of Series A-4 preferred stock | (675 | ) | | — |
| | — |
| | 675 |
| | — |
| | — |
| | — |
| | 675 |
| (675 | ) | | — |
| | — |
| | 675 |
| | — |
| | — |
| | — |
| | 675 |
| | — |
|
| Equity Interests - NG Sun LLC | | 21,976 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 21,976 |
|
| Share-based compensation - amortization and forfeitures | — |
| | — |
| | — |
| | 14,753 |
| | 313 |
| | — |
| | — |
| | 15,066 |
| — |
| | — |
| | — |
| | 14,753 |
| | 313 |
| | — |
| | — |
| | 15,066 |
| | 15,066 |
|
| Equity Interest - NG Sun LLC | 21,976 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| |
| Foreign currency translation | — |
| | — |
| | — |
| | — |
| | — |
| | (5,606 | ) | | (272 | ) | | (5,878 | ) | — |
| | — |
| | — |
| | — |
| | — |
| | (5,606 | ) | | (272 | ) | | (5,878 | ) | | (5,878 | ) |
| Net income | 241 |
| | — |
| | — |
| | — |
| | 111,715 |
| | — |
| | 8,202 |
| | 119,917 |
| 241 |
| | — |
| | — |
| | — |
| | 111,715 |
| | — |
| | 8,202 |
| | 119,917 |
| | 120,158 |
|
| Distributions | (674 | ) | | — |
| | — |
| | — |
| | (238,513 | ) | | — |
| | (11,514 | ) | | (250,027 | ) | (674 | ) | | — |
| | — |
| | — |
| | (238,513 | ) | | — |
| | (11,514 | ) | | (250,027 | ) | | (250,701 | ) |
| Balance at December 31, 2018 | $ | 63,592 |
| | $ | — |
| | $ | 864 |
| | $ | 4,398,949 |
| | $ | (1,288,486 | ) | | $ | (4,504 | ) | | $ | 60,499 |
| | $ | 3,167,322 |
| $ | 63,592 |
| | $ | — |
| | $ | 864 |
| | $ | 4,398,949 |
| | $ | (1,288,486 | ) | | $ | (4,504 | ) | | $ | 60,499 |
| | $ | 3,167,322 |
| | $ | 3,230,914 |
|
| Issuance of common stock and common OP units, net | | — |
| | — |
| | 58 |
| | 754,116 |
| | — |
| | — |
| | — |
| | 754,174 |
| | 754,174 |
|
| Conversion of OP units | | (9,652 | ) | | — |
| | 5 |
| | 11,305 |
| | — |
| | — |
| | (1,658 | ) | | 9,652 |
| | — |
|
| Conversion of Series A-4 preferred stock | | (31,739 | ) | | — |
| | 5 |
| | 31,734 |
| | — |
| | — |
| | — |
| | 31,739 |
| | — |
|
| Equity Interests - NG Sun LLC & Whitewater | | 4,451 |
| | — |
| | — |
| | — |
| | (553 | ) | | — |
| | — |
| | (553 | ) | | 3,898 |
|
| Share-based compensation - amortization and forfeitures | | — |
| | — |
| | — |
| | 17,160 |
| | 322 |
| | — |
| | — |
| | 17,482 |
| | 17,482 |
|
| Issuance of Series preferred D OP units | | 51,930 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 51,930 |
|
| Foreign currency translation | | — |
| | — |
| | — |
| | ��� |
| | — |
| | 3,173 |
| | 155 |
| | 3,328 |
| | 3,328 |
|
| Net income | | 1,599 |
| | — |
| | — |
| | — |
| | 167,611 |
| | — |
| | 8,169 |
| | 175,780 |
| | 177,379 |
|
| Distributions | | (2,177 | ) | | — |
| | — |
| | — |
| | (272,035 | ) | | — |
| | (10,937 | ) | | (282,972 | ) | | (285,149 | ) |
| Balance at December 31, 2019 | | $ | 78,004 |
| | $ | — |
| | $ | 932 |
| | $ | 5,213,264 |
| | $ | (1,393,141 | ) | | $ | (1,331 | ) | | $ | 56,228 |
| | $ | 3,875,952 |
| | $ | 3,953,956 |
|
See accompanying Notes to Consolidated Financial Statements.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF CASH FLOWS
(In thousands)
|
| | | | | | | | | | | |
| | Year Ended December 31, |
| | 2018 | | 2017 | | 2016 |
| OPERATING ACTIVITIES: | | | | | |
| Net income | $ | 120,158 |
| | $ | 81,819 |
| | $ | 31,471 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
| Gain on disposition of assets | (9,376 | ) | | (9,338 | ) | | (11,224 | ) |
| Gain on acquisition of property | — |
| | — |
| | (510 | ) |
| Unrealized foreign currency translation loss / (gain) | 8,234 |
| | (6,146 | ) | | 5,005 |
|
| Remeasurement of marketable securities | 3,639 |
| | — |
| | — |
|
| Contingent liability remeasurement (gain) / loss | (2,336 | ) | | (3,035 | ) | | 181 |
|
| Asset impairment charges | — |
| | 742 |
| | — |
|
| Share-based compensation | 15,066 |
| | 12,695 |
| | 9,557 |
|
| Depreciation and amortization | 274,432 |
| | 256,193 |
| | 218,669 |
|
| Deferred tax benefit | (507 | ) | | (582 | ) | | (400 | ) |
| Amortization of below market lease | (7,399 | ) | | (7,402 | ) | | (6,570 | ) |
| Amortization of debt premium | (7,821 | ) | | (9,548 | ) | | (10,693 | ) |
| Amortization of deferred financing costs | 3,867 |
| | 2,910 |
| | 2,160 |
|
| Amortization of ground lease intangibles | 1,638 |
| | 1,914 |
| | 600 |
|
| Loss on extinguishment of debt | 2,024 |
| | 6,019 |
| | 1,127 |
|
| Income from nonconsolidated affiliates | — |
| | — |
| | (500 | ) |
| Change in notes receivable from financed sales of inventory homes, net of repayments | (2,299 | ) | | (26,193 | ) | | (20,933 | ) |
| Change in inventory, other assets and other receivables, net | (40,304 | ) | | (33,031 | ) | | 30,880 |
|
| Change in other liabilities | 4,098 |
| | (9,034 | ) | | (7,365 | ) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 363,114 |
| | 257,983 |
| | 241,455 |
|
| INVESTING ACTIVITIES: | | | | | |
| Investment in properties | (389,399 | ) | | (288,537 | ) | | (223,429 | ) |
| Acquisitions of properties, net of cash acquired | (320,268 | ) | | (120,377 | ) | | (1,487,593 | ) |
| Proceeds from nonconsolidated affiliate transactions | — |
| | — |
| | 500 |
|
| Proceeds from dispositions of assets and depreciated homes, net | 55,855 |
| | 8,575 |
| | 4,709 |
|
| Proceeds from disposition of properties | — |
| | — |
| | 88,696 |
|
| Issuance of notes and other receivables | (216 | ) | | (3,918 | ) | | (10,633 | ) |
| Repayments of notes and other receivables | 4,312 |
| | 2,615 |
| | 13,238 |
|
| Investments in nonconsolidated affiliates | (84,027 | ) | | — |
| | — |
|
| NET CASH USED FOR INVESTING ACTIVITIES | (733,743 | ) | | (401,642 | ) | | (1,614,512 | ) |
| FINANCING ACTIVITIES: | | | | | |
| Issuance of common stock, OP units, and preferred OP units, net | 623,540 |
| | 487,677 |
| | 750,534 |
|
| Redemption of Series B-3 preferred OP units | (4,105 | ) | | (4,460 | ) | | — |
|
| Borrowings on lines of credit | 1,542,677 |
| | 661,000 |
| | 580,754 |
|
| Payments on lines of credit | (1,456,486 | ) | | (719,536 | ) | | (505,409 | ) |
| Proceeds from issuance of other debt | 250,000 |
| | 185,153 |
| | 964,252 |
|
| Payments on other debt | (298,754 | ) | | (124,427 | ) | | (230,785 | ) |
| Prepayment penalty on debt | (2,024 | ) | | (6,019 | ) | | (1,127 | ) |
| Redemption of Series A-4 preferred stock and OP units | — |
| | (24,698 | ) | | — |
|
| Redemption of Series A cumulative convertible preferred stock | — |
| | (85,000 | ) | | — |
|
| Distributions to stockholders, OP unit holders, and preferred OP unit holders | (242,813 | ) | | (224,483 | ) | | (193,740 | ) |
| Payments for deferred financing costs | (2,130 | ) | | (3,650 | ) | | (25,509 | ) |
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 409,905 |
| | 141,557 |
| | 1,338,970 |
|
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (523 | ) | | 298 |
| | (73 | ) |
| Net change in cash, cash equivalents and restricted cash | 38,753 |
| | (1,804 | ) | | (34,160 | ) |
| Cash, cash equivalents and restricted cash, beginning of period | 23,509 |
| | 25,313 |
| | 59,473 |
|
| Cash, cash equivalents and restricted cash, end of period (See Note 1 and 17) | $ | 62,262 |
| | $ | 23,509 |
| | $ | 25,313 |
|
|
| | | | | | | | | | | |
| | Year Ended December 31, |
| | 2018 | | 2017 | | 2016 |
| SUPPLEMENTAL INFORMATION: | | | | | |
| Cash paid for interest (net of capitalized interest of $4,328, $2,755 and $1,595, respectively) | $ | 126,153 |
| | $ | 124,046 |
| | $ | 121,480 |
|
| Cash paid for interest on mandatorily redeemable debt | $ | 2,551 |
| | $ | 3,114 |
| | $ | 3,152 |
|
| Cash paid (refunds) for income taxes | $ | 461 |
| | $ | (194 | ) | | $ | 452 |
|
| Noncash investing and financing activities: | | | | | |
| Reduction in secured borrowing balance | $ | 21,451 |
| | $ | 23,449 |
| | $ | 19,734 |
|
| Change in distributions declared and outstanding | $ | 7,889 |
| | $ | 3,267 |
| | $ | 9,626 |
|
| Conversion of common and preferred OP units | $ | 1,515 |
| | $ | 3,556 |
| | $ | 5,933 |
|
| Conversion of Series A-4 preferred stock | $ | 675 |
| | $ | 4,720 |
| | $ | 11,503 |
|
| Capital lease | $ | — |
| | $ | 4,114 |
| | $ | — |
|
| Noncash investing and financing activities at the date of acquisition: | | | | | |
| Acquisitions - Common stock and OP units issued | $ | — |
| | $ | 28,410 |
| | $ | 225,000 |
|
| Acquisitions - Equity Interests - NG Sun LLC (see Note 8) | $ | 21,976 |
| | $ | — |
| | $ | — |
|
| Acquisitions - Preferred Equity - Sun NG RV Resorts LLC (see Note 8) | $ | 35,277 |
| | $ | — |
| | $ | — |
|
| Acquisitions - debt assumed | $ | 3,120 |
| | $ | 4,592 |
| | $ | — |
|
| Acquisitions - contingent consideration liability | $ | — |
| | $ | — |
| | $ | 9,830 |
|
See accompanying Notes to Consolidated Financial Statements.
1. Significant Accounting Policies
Business
Sun Communities, Inc., a Maryland corporation, and all wholly-owned or majority-owned and controlled subsidiaries, including Sun Communities Operating Limited Partnership, a Michigan limited partnership (the “Operating Partnership”), and Sun Home Services, Inc., a Michigan corporation (“SHS”) are referred to herein as the “Company,” “us,” “we,” and “our”. We are a fully integrated, self-administered and self-managed real estate investment trust (“REIT”).
We own, operate, or have an interest in a portfolio, and develop manufactured housing (“MH”) and recreational vehicle (“RV”) communities throughout the United States (“U.S.”). As of December 31, 2018,2019, we owned, operated or had an interest in a portfolio of 371422 developed properties located in 3133 states and Ontario, Canada (collectively the “Properties”), including 230266 MH communities, 110122 RV communities, and 3134 communities containing both MH and RV sites. As of December 31, 2018,2019, the Properties contained an aggregate of 128,454141,293 developed sites comprised of 84,42893,821 developed MH sites, 24,53526,056 annual RV sites, and 19,49121,416 transient RV sites. There are approximately 11,30010,300 additional MH and RV sites suitable for development.
Principles of Consolidation
We consolidate our majority-owned subsidiaries in which we have the ability to control the operations of our subsidiaries and all variable interest entities with respect to which we are the primary beneficiary. We also consolidate entities in which we have a direct or indirect controlling or voting interest. All significant inter-company transactions have been eliminated. Any subsidiaries in which we have an ownership percentage equal to or greater than 50%, but less than 100%, or considered a VIE, represent subsidiaries with a noncontrolling interest. The noncontrolling interests in our subsidiaries are allocated their proportionate share of the subsidiaries’ financial results. This allocation is recorded as the noncontrolling interest in our Consolidated Financial Statements.
Certain prior period amounts have been reclassified on our Consolidated Financial Statements to conform with current year presentation.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions related to the reported amounts included in our Consolidated Financial Statements and accompanying footnotes thereto. Actual results could differ from those estimates.
Investment Property
Investment property is recorded at cost, less accumulated depreciation. We review the carrying value of long-lived assets to be held and used for impairment quarterly or whenever events or changes in circumstances indicate a possible impairment. Our primary indicator for potential impairment is based on NOI trends period over period. Circumstances that may prompt a test of recoverability may include a significant decrease in the anticipated market price, an adverse change to the extent or manner in which an asset may be used or in its physical condition or other such events that may significantly change the value of the long-lived asset. An impairment loss is recognized when a long-lived asset’s carrying value is not recoverable and exceeds estimated fair value. We estimate the fair value of our long-lived assets based on discounted future cash flows and any potential disposition proceeds for a given asset. Forecasting cash flows requires management to make estimates and assumptions about such variables as the estimated holding period, rental rates, occupancy, development, and operating expenses during the holding period, as well as disposition proceeds. Management uses its best judgment when developing these estimates and assumptions, but the development of the projected future cash flows is based on subjective variables. Future events could occur which would cause us to conclude that impairment indicators exist, and significant adverse changes in national, regional, or local market conditions or trends may cause us to change the estimates and assumptions used in our impairment analysis. The results of an impairment analysis could be material to our financial statements.
We periodically receive offers from interested parties to purchase certain of our properties. These offers may be the result of an active program initiated by us to sell the property, or from an unsolicited offer to purchase the property. The typical sale process involves a significant negotiation and due diligence period between us and the potential purchaser. As the intent of this process is to determine if there are items that would cause the purchaser to be unwilling to purchase or we would be unwilling to sell, it is not unusual for such potential offers of sale/purchase to be withdrawn as such issues arise. We classify assets as “held for sale”
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
when it is probable, in our opinion, that a sale transaction will be completed within one year. This typically occurs when all significant contingencies surrounding the closing have been resolved, which often corresponds with the closing date.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
We allocate the purchase price of properties to net tangible and identified intangible assets acquired based on their fair values. In making estimates of fair values for purposes of allocating purchase price, we utilize an independent third-party to value the net tangible and identified intangible assets in connection with the acquisition of the respective property. We provide historical and pro forma financial information obtained about each property, as well as any other information needed in order for the third-party to ascertain the fair value of the tangible and intangible assets (including in-place leases) acquired.
On January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. Upon adoption of this standard, substantially all of our property acquisitions are accounted for as asset acquisitions. ReferWe allocate the purchase price of these properties on a relative fair value basis and capitalize direct acquisition related costs as part of the purchase price. Acquisition costs that do not meet the criteria to Note 17, “Recent Accounting Pronouncements,” for additional information regarding adoptionbe capitalized are expensed as incurred and presented as General and administrative costs in our Consolidated Statements of this ASU.Operations.
Capitalized Costs
We capitalize certain costs incurred in connection with the development, redevelopment, capital enhancement and leasing of our properties. Management is required to use professional judgment in determining whether such costs meet the criteria for immediate expense or capitalization. The amounts are dependent on the volume and timing of such activities and the costs associated with such activities. Maintenance, repairs and minor improvements to properties are expensed when incurred. Renovations and improvements to properties are capitalized and depreciated over their estimated useful lives and real estate project costs related to the development of new community or expansion sites are capitalized until the property is substantially complete and available for occupancy. Costs incurred to initially renovate pre-owned and repossessed homes that we acquire for our Rental Program are capitalized and the majority of costs incurred to refurbish the homes at turnover and repair the homes while occupied are expensed, unless they extend the life of the home. Certain expenditures to dealers and residents related to obtaining lessees in our communities are capitalized and amortized based on the anticipated term of occupancy of a resident. Costs associated with implementing our computer systems are capitalized and amortized over the estimated useful lives of the related software and hardware. Costs incurred to obtain new debt financing are capitalized and amortized over the terms of the related loan agreement using the straight-line method (which approximates the effective interest method).
Cash and Cash Equivalents
We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash and cash equivalents. At December 31, 2019 and 2018, $22.1 million and $50.3 million of Cash and Cash Equivalents, respectively, was included as a component of Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets. The maximum amount of credit risk arising from cash deposits in excess of federally insured amounts was approximately $49.5$22.9 million and $17.7$49.5 million as of December 31, 2019 and 2018, respectively.
Restricted Cash
Restricted cash consists of amounts primarily held in deposit for tax, insurance and 2017, respectively.repair escrows held by lenders in accordance with certain debt agreements. At December 31, 2019 and 2018, $12.7 million and $12.0 million of restricted cash, respectively, was included as a component of Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets
On January 1, 2018, we adopted ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash.” This update required inclusion of restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Upon adoption of this standard, changes in restricted cash are reported in our Consolidated Statements of Cash Flows as operating, investing or financing activities based on the nature of the underlying activity.
Marketable Securities
Marketable securities are recorded at fair value with changes in fair value recorded in Remeasurement of marketable securities within the Consolidated Statement of Operations. We hold a less than 10 percent ownership in Ingenia.Ingenia Communities Group. The value of marketable securities as of December 31, 20182019 was $49.0$94.7 million and is included within Other assets, netdisclosed on the Consolidated Balance Sheet.
Restricted Cash
Restricted cash consists of amounts held in deposit for tax, insurance and repair escrows held by lenders in accordance with certain debt agreements. At December 31, 2018 and 2017, $12.0 million and $13.4 million of restricted cash, respectively, was included as a component of Other assets, net on the Consolidated Balance Sheets.
Inventory
Inventory of manufactured homes is stated at lower of specific cost or market based on the specific identification method.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments in Nonconsolidated Affiliates
We apply the equity method of accounting to entities in which we do not have a direct or indirect controlling interest or for variable interest entities where we are not considered the primary beneficiary but can exercise influence over the entity with respect to its operations and major decisions. The cost method is applied when (i) the investment is minimal (typically less than 5.0%) and (ii) our investment is passive. Our exposure to losses associated with unconsolidated joint ventures is primarily limited to the
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
carrying value of these investments. Accordingly, distributions from a joint venture in excess of our carrying value are recognized in earnings. We review the carrying value of our investments in nonconsolidated affiliates for other than temporary impairment whenever events or changes in circumstances indicate a possible impairment. Financial condition, operational performance, and other economic trends are among the factors we consider when we evaluate the existence of impairment indicators. Refer to Note 7, “Investments“Investments in Nonconsolidated Affiliates,” for additional information.
Notes and Other Receivables
Notes receivable includes both installment loans for manufactured homes purchased by the Company as well as transferred loans that have not met the requirements for sale accounting which are presented herein as collateralized receivables. The notes are collateralized by the underlying manufactured home sold. For purposes of accounting policy, all notes receivable are considered one homogeneous segment, as the notes are typically underwritten using the same requirements and terms. Notes receivable are reported at their outstanding unpaid principal balance adjusted for an allowance for loan loss. Interest income is accrued based upon the unpaid principal balance of the loans.
Past due status of our notes receivable is determined based upon the contractual terms of the note. When a note receivable becomes 60 days delinquent, we stop accruing interest on the note receivable. The interest on nonaccrual loans is accounted for on the cash basis until qualifying for return to accrual. Loans are returned to accrual when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The ability to collect our notes receivable is measured based on current and historical information and events. We consider numerous factors including: length of delinquency, estimated costs to lease or sell, and repossession history. Our experience supports a high recovery rate for notes receivable; however, there is some degree of uncertainty about the recoverability of our investment in these notes receivable. We are generally able to recover our recorded investment in uncollectible notes receivable by repossessing the homes on the notes retained by us and repurchasing the homes on the collateralized receivables, and subsequently selling or leasing these homes to potential residents in our communities. We have established a loan loss reserve based on our estimated unrecoverable costs associated with repossessed/repurchased homes. We estimate our unrecoverable costs to be the repurchase price of the home collateralizing the note receivable plus repair and remarketing costs in excess of the estimated selling price of the home being repossessed. A historical average of this excess cost is calculated based on prior repossessions/repurchases and is applied to our estimated annual future repossessions to create the allowance for both installment and collateralized notes receivable.
We evaluate the collectability of a loan based on our ability to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. We generally see that if the obligor is delinquent on the loan they are also delinquent on site rent. If the scheduled payment is delinquent beyond the grace period required by law or by the loan agreement, notice is given to start the collection process. A specific allowance is estimated on the past due loans based on historical delinquency data and current delinquency levels.
Credit quality is evaluated at the inception of the receivable. Factors that are considered in order to determine the credit quality of the applicant include, but are not limited to: rental payment history; home debt to income ratio; loan value to the collateralized asset; total debt to income ratio; length of employment; previous landlord references; and FICO scores.
Other receivables are generally comprised of amounts due from residents for rent and related charges, home sale proceeds receivable from sales near year end and various other miscellaneous receivables. Accounts receivable from residents are typically due within 30 days and stated at amounts due from residents net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. We evaluate the recoverability of our receivables whenever events occur or there are changes in circumstances such that management believes it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan and lease agreements. Receivables related to community rents are reserved when we believe that collection is less than probable, which is generally after a resident balance reaches 60 to 90 days past due.
Intangible Assets
The Company amortizes identified intangible assets that are determined to have finite lives over the period the assets are expected to contribute directly or indirectly to the future cash flows of the property or business. The carrying amounts of the identified intangible assets are included in Other assets, net on our Consolidated Balance Sheets. Refer to Note 6, “Intangible“Intangible Assets,” for additional information.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Deferred Taxes
We are subject to certain state taxes that are considered to be income taxes and have certain subsidiaries that are taxed as regular corporations for U.S. (i.e., federal, state, local, etc.) and non-U.S. income tax purposes. Deferred tax assets or liabilities are recognized for temporary differences between the tax basis of assets and liabilities and their carrying amounts in the financial statements and net operating loss carryforwards in certain subsidiaries, including those domiciled in foreign jurisdictions, which may be realized in future periods if the respective subsidiary generates sufficient taxable income. Deferred tax assets and liabilities are measured using currently enacted tax rates. A valuation allowance is established if, based on the available evidence, it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Refer to Note 13, “Income“Income Taxes,” for additional information.
Deferred Financing Costs
Deferred financing costs include fees and costs incurred to obtain long-term financing. The costs are amortized over the terms of the respective loans. Unamortized deferred financing costs are written off when debt is retired before the maturity date. Upon amendment of the line of credit or refinancing of mortgage debt, unamortized deferred financing costs and discount and premium costs are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 470-50-40, “Modifications and Extinguishments.” At December 31, 2019 and 2018, $4.5 million and $4.7 million of line of credit deferred financing costs, respectively, were presented as a component of Other asset, net on the Consolidated Balance Sheets. At December 31, 2019 and 2018, $7.9 million and $2.4 million of deferred financing costs and discount and premium costs, respectively, were netted and presented as a component of Mortgage loans payable on the Consolidated Balance Sheets.
Temporary Equity
Temporary equity includes preferred securities that are redeemable for cash at the option of the holder or upon the occurrence of an event that is not solely within our control based on a fixed or determinable price. These preferred securities are not mandatorily redeemable for cash nor do they contain a fixed maturity date. Temporary equity is classified between Liabilities and Stockholders’ Equity on the Consolidated Balance Sheets.
Share-Based Compensation
Share-based compensation cost for service vesting restricted stock awards is measured based on the closing share price of our common stock on the date of grant. We measure the fair value of awards with performance conditions based on an estimate of shares expected to vest using the closing price of our common stock as of the grant date. If it is not probable that the performance conditions will be satisfied, we do not recognize compensation expense. We estimate the fair value of share-based compensation for restricted stock with market conditions using a Monte Carlo simulation. We recognize compensation cost ratably over each tranche of shares based on the fair value estimated by the model.
Share-based compensation cost for stock options is estimated at the grant date based on each option’s fair-value as calculated by the Binomial (lattice) option-pricing model. The Binomial (lattice) option-pricing model incorporates various assumptions including expected volatility, expected life, dividend yield, and interest rates. Refer to Note 11, “Share-Based Compensation”“Share-Based Compensation” for additional information.
Fair Value of Financial Instruments
Our financial instruments consist of cash, cash equivalents and restricted cash, accounts and notes receivable, marketable securities, accounts payable, debt, and contingent consideration liability. We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures, pursuant to FASB ASC 820, “Fair Value Measurements and Disclosures.” Refer to Note 16, “Fair“Fair Value of Financial Instruments,” for additional information regarding the estimates and assumptions used to estimate the fair value of each financial instrument class.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Revenue Recognition
Rental income attributable to site and home leases is recorded on a straight-line basis when earned from tenants. The majority of our leases entered into by tenants are generally for one year terms, but may range from month-to-month to two years and are renewable by mutual agreement from us and the resident, or in some cases, as provided by state statute. A small portion of tenant leases are for greater than two years. Revenue from the sale of manufactured homes is recognized upon transfer of title at the closing of the sales transaction. Interest income on notes receivable is recorded on a level yield basis over the life of the notes. We report real estate taxes collected from residents and remitted to taxing authorities in revenue. On January 1, 2018, we adopted ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” and the related updates subsequently issued by the FASB. The adoption of ASU 2014-09 did not result in any changes to our accounting policies for revenue recognition. Refer to Note 2, “Revenue Recognition,“Revenue,” for additional information.
Advertising Costs
Advertising costs are expensed as incurred. As of December 31, 2019, 2018 2017 and 2016,2017, we had advertising costs of $6.7 million, $6.2 million and $5.9 million, and $4.2 million, respectively.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Depreciation and Amortization
Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. Useful lives are thirty years for land improvements and buildings, ten years for rental homes, seven years for furniture, fixtures and equipment, four years for computer hardware and software, and twoseven years to seventy-fivetwenty years for intangible assets.
Foreign Currency
The assets and liabilities of our Australian and Canadian operations, where the functional currency is the Australian dollar and Canadian dollar, are translated into U.S. dollars using the exchange rate in effect as of the balance sheet date. Income statement amounts are translated at the average exchange rate prevailing during the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss). Foreign currency exchange gains and losses arising from fluctuations in currency exchange rates on transactions and the effects of remeasurement of monetary balances denominated in currencies other than the functional currency are recorded in earnings.
For the year ended December 31, 2018,2019, we recorded a foreign currency translation lossgain of $8.4$4.5 million within Other income / (expense), net on our Consolidated Statements of Operations, as compared to a foreign currency translation gainloss of $5.9$8.4 million, for the year ended December 31, 20172018 and $5.0$5.9 million foreign currency translation lossgain for the year ended December 31, 2016.2017.
Accounting for leases
We determine if an arrangement is a lease at inception. Our operating lease agreements are primarily for executive office spaces, ground leases at certain communities, and certain equipment leases. The ROU asset and liabilities are included within Other assets, net and Other liabilities on the Consolidated Balance Sheets.
For operating leases with a term greater than one year, the company recognizes the ROU assets and liabilities related to the lease payments on the Consolidated Balance Sheets. The lease liabilities are initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. The ROU assets represent our right to use the underlying assets for the term of the lease and the lease liabilities represent our obligation to make lease payments arising for the agreements. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The ROU asset is periodically reduced by impairment losses. As of December 31, 2019, we have not encountered any impairment losses. Variable lease payments, except for the ones that depend on index or rate, are excluded from the calculation of the ROU assets and lease liabilities and are recognized as variable lease expense in the Consolidated Statements of Operations in the period in which they are incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. The lease liability costs are amortized over the straight-line method over the term of the lease. Operating leases with a term of less than one year are recognized as a lease expense over the term of the lease, with no asset or liability recognized on the Consolidated Balance Sheets.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Finance leases where we are the lessee are included in Other assets, net and Other liabilities on our Consolidated Balance Sheets. The lease liabilities are initially measured in the same manner as operating leases and are subsequently measured at amortized cost using the effective interest method. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For finance leases the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to us, or we are reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Amortization of the ROU asset is recognized and presented separately from interest expense on the lease liability. ROU assets are periodically reduced by impairment losses. As of December 31, 2019, we have not encountered any impairment losses. Refer to Note 19, “Leases” for information regarding leasing activities.
2. Revenue
Disaggregation of Revenue
The following table disaggregates our revenue by major source (in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2018 | | Year Ended December 31, 2017 | | Year Ended December 31, 2016 |
| | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated |
| REVENUE | | | | | | | | | | | | | | | | | |
| Income from real property | $ | 825,973 |
| | $ | — |
| | $ | 825,973 |
| | $ | 742,228 |
| | $ | — |
| | $ | 742,228 |
| | $ | 620,917 |
| | $ | — |
| | $ | 620,917 |
|
| Revenue from home sales | — |
| | 166,031 |
| | 166,031 |
| | — |
| | 127,408 |
| | 127,408 |
| | — |
| | 110,507 |
| | 110,507 |
|
| Rental home revenue | — |
| | 53,657 |
| | 53,657 |
| | — |
| | 50,549 |
| | 50,549 |
| | — |
| | 47,780 |
| | 47,780 |
|
| Ancillary revenues | 54,107 |
| | — |
| | 54,107 |
| | 37,511 |
| | — |
| | 37,511 |
| | 33,424 |
| | — |
| | 33,424 |
|
| Interest | 20,853 |
| | — |
| | 20,853 |
| | 21,181 |
| | (1 | ) | | 21,180 |
| | 18,113 |
| | — |
| | 18,113 |
|
| Brokerage commissions and other revenues, net | 6,204 |
| | — |
| | 6,204 |
| | 3,694 |
| | — |
| | 3,694 |
| | 3,037 |
| | — |
| | 3,037 |
|
| Total revenue | $ | 907,137 |
| | $ | 219,688 |
| | $ | 1,126,825 |
| | $ | 804,614 |
| | $ | 177,956 |
| | $ | 982,570 |
| | $ | 675,491 |
| | $ | 158,287 |
| | $ | 833,778 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated |
| Revenues | | | | | | | | | | | | | | | | | |
Income from real property | $ | 925,664 |
| | $ | — |
| | $ | 925,664 |
| | $ | 825,973 |
| | $ | — |
| | $ | 825,973 |
| | $ | 742,228 |
| | $ | — |
| | $ | 742,228 |
|
| Revenue from home sales | — |
| | 181,936 |
| | 181,936 |
| | — |
| | 166,031 |
| | 166,031 |
| | — |
| | 127,408 |
| | 127,408 |
|
| Rental home revenue | — |
| | 57,572 |
| | 57,572 |
| | — |
| | 53,657 |
| | 53,657 |
| | — |
| | 50,549 |
| | 50,549 |
|
| Ancillary revenue | 66,881 |
| | — |
| | 66,881 |
| | 54,107 |
| | — |
| | 54,107 |
| | 37,511 |
| | — |
| | 37,511 |
|
| Interest income | 17,857 |
| | — |
| | 17,857 |
| | 20,852 |
| | — |
| | 20,852 |
| | 21,180 |
| | (1 | ) | | 21,179 |
|
| Brokerage commissions and other revenues, net | 14,127 |
| | — |
| | 14,127 |
| | 6,205 |
| | — |
| | 6,205 |
| | 3,695 |
| | — |
| | 3,695 |
|
| Total Revenues | $ | 1,024,529 |
| | $ | 239,508 |
| | $ | 1,264,037 |
| | $ | 907,137 |
| | $ | 219,688 |
| | $ | 1,126,825 |
| | $ | 804,614 |
| | $ | 177,956 |
| | $ | 982,570 |
|
Revenue Recognition Policies and Performance Obligations
On January 1, 2018, we adopted FASB Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” and the other related ASUs and amendments to the codification (collectively “ASC 606”). The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A five-step transactional analysis is required to determine how and when to recognize revenue. ASC 606 applies to all contracts with customers, except those that are within the scope of other topics in the FASB accounting standards codification.
As a real estate owner and operator, the majority of our revenue is derived from site and home leases that are accounted for pursuant to ASC 840 842 ““Leases.Leases.” For transactions in the scope of ASC 606, we recognize revenue when control of goods or services transfers to the customer, in the amount that we expect to receive for the transfer of goods or provision of services. The adoption of ASC 606 did not result in any change to our accounting policies forthe timing and pattern of revenue recognition. Accordingly, retrospective application to prior periods or a cumulative catch-up adjustment was unnecessary.
Income from real property - Residents in our communities lease the site on which their home is located, and either own or lease their home. Lease revenues for sites and homes fall under the scope of ASC 840, and are accounted for as operating leases with straight-line recognition. Resident leases are generally for one-year or month-to-month terms and are renewable by mutual agreement from us and the resident, or in some cases, as provided by jurisdictional statute. Lease revenues for sites and homes fall under the scope of ASC 842, and are accounted for as operating leases with straight-line recognition. Income from real property includes income from site leases for annual MH residents, site leases for annual recreational vehicle RV residents and site rentals to transient RV residents. Non-lease components of our site lease contracts, which are primarily provision of utility services, are accounted for with the site lease as a single lease under ASC 840.842. Additionally, we include collections of real estate taxes from residents within Income from real property.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Revenue from home sales - Our taxable REIT subsidiary, SHS, sells manufactured homes and RV park models to current and prospective residents in our communities. Prior to adoption of ASC 606, we recognized revenue for home sales pursuant to ASC 605 ““Revenue Recognition,”” as manufactured homes are tangible personal property that can be located on any land parcel. Manufactured homes are not permanent fixtures or improvements to the underlying real estate and were therefore not considered to be subject to the guidance in ASC 360-20 “Real“Real Estate Sales”Sales” by the Company. In accordance with the core principle of ASC 606, we recognize revenue from home sales at the time of closing when control of the home transfers to the customer. After closing of the sale transaction, we have no remaining performance obligation.
Rental home revenue - is comprised of rental agreements whereby we lease homes to residents in our communities. We account for these revenues under ASC 840.842.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Ancillary revenuesrevenue - areis primarily composed of proceeds from restaurant, golf, merchandise and other activities at our RV communities.communities and is included in the scope of ASC 606. Revenues are recognized at point of sale when control of the good or service transfers to the customer and our performance obligation is satisfied. In addition, leasing of short-term vacation home rentals is included within Ancillary revenue and falls within the scope of ASC 842. Sales and other taxes that we collect concurrent with revenue-producing activities are excluded from the transaction price.
Interest income - is earned primarily on our notes and collateralized receivables, which includes installment loans for manufactured homes purchased by the Company from loan originators and transferred loans that previously did not meet the requirements for sale accounting.originators. Interest income on these receivables is accrued based on the unpaid principal balances of the underlying loans on a level yield basis over the life of the loans. Interest income is not in the scope of ASC 606. Refer to notes 4, “Collateralized Receivables and Transfers of Financial Assets” andNote 5, “Notes“Notes and Other Receivables”Receivables” for additional information.
Broker commissions and other revenues, net - is primarily comprised of brokerage commissions for sales of manufactured homes, where we act as agent and arrange for a third party to transfer a manufactured home to a customer within one of our communities. Brokerage commission revenues are recognized on a net basis at closing, when the transaction is completed and our performance obligations have been fulfilled. Loan loss reserve expenses for our collateralized receivables and notes receivables are also included herein. Refer to notes 4, “Collateralized Receivables and Transfers of Financial Assets” andNote 5, “Notes“Notes and Other Receivables”Receivables” for additional information regarding our loan loss reserves.
Contract Balances
As of December 31, 20182019, and 2017,December 31, 2018, we had $16.1$20.9 million and $13.8$16.1 million, respectively, of receivables from contracts with customers. Receivables from contracts with customers are presented as a component of Notes and other receivables, net on our Consolidated Balance Sheets. These receivables represent balances owed to us for previously completed performance obligations for sales of manufactured homes. Due to the nature of our revenue from contactscontracts with customers, we do not have material contract assets or liabilities that fall under the scope of ASC 606.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Real Estate Acquisitions
2019 Acquisitions
2018 AcquisitionsCommunities
In 2018For the year ended December 31, 2019, we acquired the following communities and portfolios:
|
| | | | | | | | | | | | |
| Community Name | | Type | | Sites | | Development Sites | | State | | Month Acquired |
| Leaf Verde RV Resort | | RV | | 376 |
| | — |
| | AZ | | October |
| Archview RV Resort & Campground | | RV | | 114 |
| | 50 |
| | UT | | August |
| Petoskey KOA RV Resort | | RV | | 210 |
| | — |
| | MI | | August |
| The Sands RV & Golf Resort | | RV (Age Restricted) | | 507 |
| | — |
| | CA | | July |
Sun NG RV Resorts LLC (1)(2) | | RV | | 2,700 |
| | 940 |
| | Various | | June |
| Silver Creek RV Resort | | RV | | 264 |
| | 176 |
| | MI | | June |
Highway West (Four Resorts) (1) | | RV | | 536 |
| | — |
| | UT & OR | | June |
| Compass RV | | RV | | 175 |
| | — |
| | FL | | May |
| | | Total | | 4,882 |
| | 1,166 |
| | | | |
|
| | | | | | | | | | | | |
| Community Name | | Type | | Sites | | Development Sites | | State | | Month Acquired |
| Slickrock Campground | | RV | | 193 |
| | — |
| | UT | | December |
| Pandion Ridge | | RV | | 142 |
| | 351 |
| | AL | | November |
Jensen Portfolio (1) | | MH | | 5,230 |
| | 466 |
| | Various | | October |
| Glen Ellis | | RV | | 244 |
| | 40 |
| | NH | | September |
Leisure Point Resort (2) | | MH / RV | | 502 |
| | — |
| | DE | | September |
| Reunion Lake | | RV | | 202 |
| | 69 |
| | LA | | July |
| River Plantation | | RV | | 309 |
| | — |
| | TN | | May |
| Massey’s Landing RV | | RV | | 291 |
| | — |
| | DE | | February |
Shelby Properties (3) | | MH | | 1,308 |
| | — |
| | MI | | February |
| Buena Vista | | MH | | 400 |
| | — |
| | AZ | | February |
Country Village Estates (4) | | MH | | 518 |
| | — |
| | OR | | January |
| Hid’n Pines RV | | RV | | 321 |
| | — |
| | ME | | January |
| Hacienda del Rio | | MH (Age-Restricted) | | 730 |
| | — |
| | FL | | January |
| | | Total | | 10,390 |
| | 926 |
| | | | |
(1) Contains 31 communities located in CT, GA, MD, NH, NJ, NY, NC and SC. In conjunction with the acquisition, we issued 1,972,876 shares of common stock, net of fractional shares paid in cash.
(2) Contains 201 MH sites and 301 RV sites.
(3) Contains 2 MH communities.
(4) In conjunction with the acquisition, we issued Series D Preferred OP Units. As of December 31, 2019, 488,958 Series D Preferred OP Units were outstanding.
The following table summarizes the amounts of assets acquired net of liabilities assumed at the acquisition date and the consideration paid for the acquisitions completed for the year ended December 31, 2019 (in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At Acquisition Date | | Consideration |
| | Investment in property | | Inventory of manufactured homes | | In-place leases and other intangible assets | | Other assets (liabilities), net | | Total identifiable assets acquired net of liabilities assumed | | Cash and escrow | | Debt assumed | | Temporary and permanent equity | | Total consideration |
| Slickrock Campground | $ | 8,250 |
| | $ | — |
| | $ | — |
| | $ | 8 |
| | $ | 8,258 |
| | $ | 8,258 |
| | $ | — |
| | $ | — |
| | $ | 8,258 |
|
| Pandion Ridge | 19,070 |
| | — |
| | — |
| | (92 | ) | | $ | 18,978 |
| | 18,978 |
| | — |
| | — |
| | 18,978 |
|
| Jensen Portfolio | 374,402 |
| | 3,605 |
| | 7,752 |
| | 3,938 |
| | $ | 389,697 |
| | 18,306 |
| | 58,000 |
| | 313,391 |
| | 389,697 |
|
| Glen Ellis | 5,955 |
| | — |
| | — |
| | (79 | ) | | 5,876 |
| | 1,976 |
| | 3,900 |
| | — |
| | 5,876 |
|
| Leisure Point Resort | 43,632 |
| | 18 |
| | 850 |
| | (678 | ) | | 43,822 |
| | 43,822 |
| | — |
| | — |
| | 43,822 |
|
| Reunion Lake | 23,493 |
| | — |
| | — |
| | (1,153 | ) | | 22,340 |
| | 22,340 |
| | — |
| | — |
| | 22,340 |
|
| River Plantation | 22,589 |
| | 75 |
| | — |
| | — |
| | 22,664 |
| | 22,664 |
| | — |
| | — |
| | 22,664 |
|
| Massey's Landing | 36,250 |
| | — |
| | 220 |
| | (446 | ) | | 36,024 |
| | 36,024 |
| | — |
| | — |
| | 36,024 |
|
| Shelby Properties | 85,969 |
| | 2,011 |
| | 6,520 |
| | (1,015 | ) | | 93,485 |
| | 93,485 |
| | — |
| | — |
| | 93,485 |
|
| Buena Vista | 20,221 |
| | 439 |
| | 1,590 |
| | (93 | ) | | 22,157 |
| | 22,157 |
| | — |
| | — |
| | 22,157 |
|
| Country Village | 62,784 |
| | — |
| | 2,020 |
| | 31 |
| | 64,835 |
| | 12,905 |
| | — |
| | 51,930 |
| | 64,835 |
|
| Hid'n Pines | 10,680 |
| | — |
| | 70 |
| | (233 | ) | | 10,517 |
| | 10,517 |
| | — |
| | — |
| | 10,517 |
|
| Hacienda del Rio | 111,971 |
| | 15 |
| | 3,280 |
| | (237 | ) | | 115,029 |
| | 115,029 |
| | — |
| | — |
| | 115,029 |
|
| Total | $ | 825,266 |
| | $ | 6,163 |
| | $ | 22,302 |
| | $ | (49 | ) | | $ | 853,682 |
| | $ | 426,461 |
| | $ | 61,900 |
| | $ | 365,321 |
| | $ | 853,682 |
|
As of December 31, 2019, the Company incurred $19.3 million of transaction costs which have been capitalized and allocated among the various categories above.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Land for Expansion / Development
During the year ended December 31, 2019, the Company acquired four land parcels which are located in New Braunfels, Texas; Petoskey, Michigan; Uhland, Texas and Hudson, Florida for total consideration of $7.7 million. Two of the land parcels are adjacent to existing communities. The land acquired for expansion and development have potential to add approximately 900 usable sites once constructed.
Ground Leases
In September 2019, the Company entered into a 66-year Temporary Occupancy and Use Permit with the Port of San Diego to construct and operate a new RV resort in Chula Vista. Refer to Note 19, “ Leases” for disclosures on accounting treatment.
In August 2019, the Company acquired Chincoteague Island KOA RV Resort (“Chincoteague”), in Chincoteague Island, Virginia for total consideration of $19.5 million. The sellers of Chincoteague continue to operate the property. Refer to Note 19, “Leases” for disclosures on accounting treatment.
In April 2019, the Company acquired Strafford/Lake Winnipesaukee South KOA RV Resort ("Strafford") in Strafford, New Hampshire for total consideration of $2.7 million. The sellers of Strafford continue to operate the property. Refer to Note 19, “Leases” for disclosures on accounting treatment.
In March 2019, the Company entered into a four-year Temporary Occupancy and Use Permit with the Port of San Diego to operate a RV resort located in Chula Vista, CA until such time as the Company constructs a new RV resort in the area. Concurrent with the transaction, we purchased tangible personal property from the prior owner of the RV resort for $0.3 million. Refer to Note 19. “Leases ” for disclosures on accounting treatment.
Refer to Note 21, “Subsequent Events” for information regarding real estate acquisition activity after December 31, 2019.
The total amount of revenues and net income included in the Consolidated Statements of Operations for the year ended December 31, 2019 related to the acquisitions completed in 2019 are set forth in the following table (in thousands):
|
| | | | |
| | | Year Ended December 31, 2019 |
| | | (unaudited) |
| Total revenues | | $ | 42,715 |
|
| Net income | | $ | 10,050 |
|
The following unaudited pro forma financial information presents the results of our operations for the years ended December 31, 2019 and 2018, as if the properties acquired in 2019 had been acquired on January 1, 2018. The unaudited pro forma results reflect certain adjustments for items that are not expected to have a continuing impact, such as adjustments for transaction costs incurred, management fees, and purchase accounting.
The information presented below has been prepared for comparative purposes only and does not purport to be indicative of either future results of operations or the results of operations that would have actually occurred had the acquisition been consummated on January 1, 2018 (in thousands, except per-share data):
|
| | | | | | | | |
| | | Year Ended |
| | | (unaudited) |
| | | December 31, 2019 | | December 31, 2018 |
| Total revenues | | $ | 1,298,096 |
| | $ | 1,194,093 |
|
| Net income attributable to Sun Communities, Inc. common stockholders | | $ | 166,446 |
| | $ | 120,891 |
|
| Net income per share attributable to Sun Communities, Inc. common stockholders - basic | | $ | 1.88 |
| | $ | 1.49 |
|
| Net income per share attributable to Sun Communities, Inc. common stockholders - diluted | | $ | 1.87 |
| | $ | 1.47 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2018 Acquisitions
For the year ended December 31, 2018 we acquired the following communities:
|
| | | | | | | | | | | | |
| Community Name | | Type | | Sites | | Development Sites | | State | | Month Acquired |
| Leaf Verde RV Resort | | RV | | 376 |
| | — |
| | AZ | | October |
| Archview | | RV | | 114 |
| | 50 |
| | UT | | August |
| Petoskey KOA | | RV | | 210 |
| | — |
| | MI | | August |
| The Sands RV and Golf Resort | | RV (Age Restricted) | | 507 |
| | — |
| | CA | | July |
Sun NG RV Resorts LLC (1)(2) | | RV | | 2,700 |
| | 940 |
| | Various | | June |
| Silver Creek | | RV | | 264 |
| | 176 |
| | MI | | June |
Highway West (1) | | RV | | 536 |
| | — |
| | UT & OR | | June |
| Compass RV | | RV | | 175 |
| | — |
| | FL | | May |
| | | Total | | 4,882 |
| | 1,166 |
| | | | |
(1) Highway West and Sun NG RV Resorts LLC are comprised of 4 RV and 10 RV resorts, respectively.
(2) Refer to Note 8, “Consolidated Variable Interest Entities,” Note 9, “Debt and Lines of Credit,” and Note 10, “Equity and Mezzanine Securities”Temporary Equity” in our accompanying Consolidated Financial Statements for additional information.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the amounts of assets acquired net of liabilities assumed at the acquisition date and the consideration paid for the acquisitions completed in 2018 (in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At Acquisition Date | | Leaf Verde | | Archview | | Petoskey KOA | | Sands | | Sun NG Resorts | | Silver Creek | | Highway West | | Compass | | Total |
| Investment in property | | $ | 11,587 |
| | $ | 14,550 |
| | $ | 8,730 |
| | $ | 13,790 |
| | $ | 240,649 |
| | $ | 7,250 |
| | $ | 36,500 |
| | $ | 13,930 |
| | $ | 346,986 |
|
| In-place leases and other intangible assets | | 60 |
| | — |
| | 270 |
| | 460 |
| | 16,339 |
| | — |
| | — |
| | 70 |
| | 17,199 |
|
| Debt assumed | | — |
| | — |
| | — |
| | — |
| | (3,120 | ) | | — |
| | — |
| | — |
| | (3,120 | ) |
| Other liabilities, net | | — |
| | — |
| | — |
| | — |
| | (11,990 | ) | | — |
| | — |
| | — |
| | (11,990 | ) |
| Total identifiable assets acquired net of liabilities assumed | | $ | 11,647 |
| | $ | 14,550 |
| | $ | 9,000 |
| | $ | 14,250 |
| | $ | 241,878 |
| | $ | 7,250 |
| | $ | 36,500 |
| | $ | 14,000 |
| | $ | 349,075 |
|
| | | | | | | | | | | | | | | | | | | |
| Consideration | | | | | | | | | | | | | | | | | | |
| Cash | | $ | 11,647 |
| | $ | 14,550 |
| | $ | 9,000 |
| | $ | 14,250 |
| | $ | 184,625 |
| | $ | 7,250 |
| | $ | 36,500 |
| | $ | 14,000 |
| | $ | 291,822 |
|
| Preferred Equity - Sun NG Resorts | | — |
| | — |
| | — |
| | — |
| | 35,277 |
| | — |
| | — |
| | — |
| | 35,277 |
|
| Equity Interests - NG Sun LLC | | — |
| | — |
| | — |
| | — |
| | 21,976 |
| | — |
| | — |
| | — |
| | 21,976 |
|
| Total consideration | | $ | 11,647 |
| | $ | 14,550 |
| | $ | 9,000 |
| | $ | 14,250 |
| | $ | 241,878 |
| | $ | 7,250 |
| | $ | 36,500 |
| | $ | 14,000 |
| | $ | 349,075 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At Acquisition Date | | Consideration |
| | Investment in property | | In-place leases and other intangible assets | | Debt assumed | | Other liabilities, net | | Total identifiable assets acquired net of liabilities assumed | | Cash | | Preferred Equity - Sun NG Resorts | | Equity Interests - NG Sun LLC | | Total consideration |
| Leaf Verde | $ | 11,587 |
| | $ | 60 |
| | $ | — |
| | $ | — |
| | $ | 11,647 |
| | $ | 11,647 |
| | $ | — |
| | $ | — |
| | $ | 11,647 |
|
| Archview | 14,550 |
| | — |
| | — |
| | — |
| | 14,550 |
| | 14,550 |
| | — |
| | — |
| | 14,550 |
|
| Petoskey KOA | 8,730 |
| | 270 |
| | — |
| | — |
| | 9,000 |
| | 9,000 |
| | — |
| | — |
| | 9,000 |
|
| Sands | 13,790 |
| | 460 |
| | — |
| | — |
| | 14,250 |
| | 14,250 |
| | — |
| | — |
| | 14,250 |
|
| Sun NG Resorts | 240,649 |
| | 16,339 |
| | (3,120 | ) | | (11,990 | ) | | 241,878 |
| | 184,625 |
| | 35,277 |
| | 21,976 |
| | 241,878 |
|
| Silver Creek | 7,250 |
| | — |
| | — |
| | — |
| | 7,250 |
| | 7,250 |
| | — |
| | — |
| | 7,250 |
|
| Highway West | 36,500 |
| | — |
| | — |
| | — |
| | 36,500 |
| | 36,500 |
| | — |
| | — |
| | 36,500 |
|
| Compass | 13,930 |
| | 70 |
| | — |
| | — |
| | 14,000 |
| | 14,000 |
| | — |
| | — |
| | 14,000 |
|
| Total | $ | 346,986 |
| | $ | 17,199 |
| | $ | (3,120 | ) | | $ | (11,990 | ) | | $ | 349,075 |
| | $ | 291,822 |
| | $ | 35,277 |
| | $ | 21,976 |
| | $ | 349,075 |
|
InFor the year ended December 31, 2018, we acquired the following land for expansion / development:
| | | Name | | Location | | Type | | Expansion / Development Sites | | Cost (millions) | | Month Acquired | | Location | | Type | | Expansion / Development Sites | | Cost (millions) | | Month Acquired |
| Ocean West | | McKinleyville, CA | | MH | | 26 |
| | $ | 0.2 |
| | December | | McKinleyville, CA | | MH | | 26 |
| | $ | 0.2 |
| | December |
| Water Oak Country Club Estates | | Lady Lake, FL | | MH | | 296 |
| | $ | 1.9 |
| | November | | Lady Lake, FL | | MH | | 296 |
| | 1.9 |
| | November |
| Oak Crest | | Austin, TX | | MH | | 220 |
| | $ | 4.2 |
| | October | | Austin, TX | | MH | | 220 |
| | 4.2 |
| | October |
| Pecan Park RV Resort | | Jacksonville, FL | | RV | | 158 |
| | $ | 1.3 |
| | September | |
| Pecan Park | | | Jacksonville, FL | | RV | | 158 |
| | 1.3 |
| | September |
| Smith Creek Crossing | | Granby, CO | | MH | | 310 |
| | $ | 0.9 |
| | September | | Granby, CO | | MH | | 310 |
| | 0.9 |
| | September |
| Apple Carr | | Egelston, MI | | MH | | 121 |
| | $ | 0.2 |
| | May | | Egelston, MI | | MH | | 121 |
| | 0.2 |
| | May |
| River Run Ranch | | Granby, CO | | MH / RV | | 1,144 |
| | $ | 5.3 |
| | May | |
| River Run | | | Granby, CO | | MH / RV | | 1,144 |
| | 5.3 |
| | May |
| | | Total | | 2,275 |
| | $ | 14.0 |
| | | Total | | 2,275 |
| | $ | 14.0 |
| |
Refer to Note 20, “Subsequent Events,” for information regarding real estate acquisition activity after December 31, 2018.
The total amount of revenues and net income included in the Consolidated Statements of Operations for the year ended December 31, 2018 related to the acquisitions completed in 2018 are set forth in the following table (in thousands):
|
| | | | |
| | | Year Ended
December 31, 2018 |
| | | (unaudited) |
| Total revenues | | $ | 41,937 |
|
| Net income | | $ | 6,718 |
|
The following unaudited pro forma financial information presents the results of our operations for the years ended December 31, 2018 and 2017, as if the properties acquired in 2018 had been acquired on January 1, 2017. The unaudited pro forma results reflect certain adjustments for items that are not expected to have a continuing impact, such as adjustments for transaction costs incurred, management fees, and purchase accounting.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The information presented below has been prepared for comparative purposes only and does not purport to be indicative of either future results of operations or the results of operations that would have actually occurred had the acquisition been consummated on January 1, 2017 (in thousands, except per-share data):
|
| | | | | | | | |
| | | Year Ended December 31, |
| | | (unaudited) |
| | | 2018 | | 2017 |
| Total revenues | | $ | 1,136,581 |
| | $ | 1,028,894 |
|
| Net income attributable to Sun Communities, Inc. common stockholders | | $ | 103,308 |
| | $ | 75,607 |
|
| Net income per share attributable to Sun Communities, Inc. common stockholders - basic | | $ | 1.27 |
| | $ | 0.99 |
|
| Net income per share attributable to Sun Communities, Inc. common stockholders - diluted | | $ | 1.26 |
| | $ | 0.99 |
|
Transaction costs of $0.5 million, $9.8 million, and $31.9 million have been incurred for the years ended December 31, 2018, 2017, and 2016, respectively. These costs are presented as Transaction costs in our Consolidated Statements of Operations. Beginning January 1, 2018, substantially all of our property acquisitions are considered asset acquisitions, and direct acquisition related costs are capitalized as part of the purchase price. Acquisitions costs that do not meet the criteria for capitalization are expensed as incurred. Refer to Note 17, “Recent Accounting Pronouncements,” for additional information.
2017 Acquisitions
In 2017, we acquired the following communities:
|
| | | | | | | | | | | | |
| Community Name | | Type | | Sites | | Development Sites | | State | | Month Acquired |
| Colony in the Wood | | MH (Age Restricted) | | 383 |
| | — |
| | FL | | December |
| Emerald Coast | | MH and RV | | 201 |
| | 14 |
| | FL | | November |
| Lazy J Ranch | | MH (Age Restricted) | | 220 |
| | — |
| | CA | | September |
| Ocean West | | MH (Age Restricted) | | 130 |
| | 4 |
| | CA | | September |
| Caliente Sands | | MH (Age Restricted) | | 118 |
| | — |
| | CA | | September |
| Pismo Dunes | | RV (Age Restricted) | | 331 |
| | — |
| | CA | | July |
| Arbor Woods | | MH | | 458 |
| | — |
| | MI | | June |
| Sunset Lakes | | RV | | 498 |
| | — |
| | IL | | May |
| 49er Village | | RV | | 328 |
| | — |
| | CA | | March |
| | | Total | | 2,667 |
| | 18 |
| | | | |
The following table summarizes the amounts of assets acquired net of liabilities assumed at the acquisition date and the consideration paid for the acquisitions completed in 2017 (in thousands):
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At Acquisition Date | Colony in the Wood | Emerald Coast | Lazy J Ranch | Ocean West | Caliente Sands | Pismo Dunes | Arbor Woods | Sunset Lakes | 49er Village | Total |
| Investment in property | $ | 31,818 |
| $ | 19,400 |
| $ | 13,938 |
| $ | 9,453 |
| $ | 8,640 |
| $ | 21,260 |
| $ | 15,725 |
| $ | 7,835 |
| $ | 12,890 |
| $ | 140,959 |
|
| Notes receivable | — |
| — |
| — |
| — |
| — |
| — |
| 23 |
| — |
| — |
| 23 |
|
| Inventory of manufactured homes | — |
| — |
| 2 |
| — |
| 21 |
| — |
| 465 |
| — |
| — |
| 488 |
|
| In-place leases and other intangible assets | 660 |
| 100 |
| 360 |
| 220 |
| 210 |
| 660 |
| 730 |
| 210 |
| 110 |
| 3,260 |
|
| Total identifiable assets acquired net of liabilities assumed | $ | 32,478 |
| $ | 19,500 |
| $ | 14,300 |
| $ | 9,673 |
| $ | 8,871 |
| $ | 21,920 |
| $ | 16,943 |
| $ | 8,045 |
| $ | 13,000 |
| $ | 144,730 |
|
| | | | | | | | | | | |
| Consideration | | | | | | | | | | |
| Cash | $ | 32,478 |
| $ | 19,500 |
| $ | 14,300 |
| $ | 5,081 |
| $ | 8,871 |
| $ | — |
| $ | 14,943 |
| $ | 8,045 |
| $ | 13,000 |
| $ | 116,218 |
|
| Equity | — |
| — |
| — |
| — |
| — |
| 26,410 |
| 2,000 |
| — |
| — |
| 28,410 |
|
| Liabilities assumed | — |
| — |
| — |
| 4,592 |
| — |
| 510 |
| — |
| — |
| — |
| 5,102 |
|
| Cash proceeds from seller | — |
| — |
| — |
| — |
| — |
| (5,000 | ) | — |
| — |
| — |
| (5,000 | ) |
| Total consideration | $ | 32,478 |
| $ | 19,500 |
| $ | 14,300 |
| $ | 9,673 |
| $ | 8,871 |
| $ | 21,920 |
| $ | 16,943 |
| $ | 8,045 |
| $ | 13,000 |
| $ | 144,730 |
|
In 2017, we acquired the following land for expansion:
|
| | | | | | | | | | | | | |
| Development Name | | Location | | Type | | Development Sites | | Cost (millions) | | Month Acquired |
| Carolina Pines | | Myrtle Beach, SC | | RV | | 841 |
| | $ | 5.9 |
| | April |
| | | | | Total | | 841 |
| | | | |
4. Collateralized Receivables and Transfers of Financial Assets
We previouslyPrior to November 2019, we completed various transactions with an unrelated entity involving our notes receivable under which we received cash proceeds in exchange for relinquishing our right, title, and interest in certain notes receivable. We havehad no further obligations or rights with respect to the control, management, administration, servicing, or collection of the installment notes receivable. However, we arewere subject to certain recourse provisions requiring us to purchase the underlying homes collateralizing such notes, in the event of a note default and subsequent repossession of the home by the unrelated entity. The recourse provisions arewere considered to be a form of continuing involvement which precluded establishing legal isolation, a necessary condition for derecognition of a financial asset, and therefore these transferred loans did not meet the requirements for sale accounting. We continuecontinued to recognize these transferred loans and we also recognized the cash proceeds on our balance sheetConsolidated Balance Sheets and referreferred to them as collateralized receivables. The proceeds from the transfer have been recognizedreceivables and as a secured borrowing.
In the event of a note default and subsequent repossession of a manufactured home by the unrelated entity, the terms of the agreement require us to repurchase the manufactured home. Default is defined as the failure to repay the installment note receivable according to contractual terms. The repurchase price is calculated as a percentage of the outstanding principal balance of the collateralized receivable, plus any outstanding late fees, accrued interest, legal fees, and escrow advances associated with the installment note receivable. The percentage used to determine the repurchase price of the outstanding principal balance on the installment note receivable is based on the number of payments made on the note. In general, the repurchase price is determined as follows:
|
| | | |
Number of Payments | | Repurchase Percentage |
Fewer than or equal to 15 | | 100 | % |
Greater than 15 but fewer than 64 | | 90 | % |
Equal to or greater than 64 but fewer than 120 | | 65 | % |
120 or more | | 50 | % |
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The transferred assets have been classified as Collateralized receivables, net and the cash proceeds received from these transactions have been classified as Secured borrowings on collateralized receivables withinrespectively.
In November 2019, the Consolidated Balance Sheets.facts and circumstances regarding the recourse provisions, to which we remain subject, evolved such that the purchasers become subject to substantive economic risk. Accordingly, we reassessed the legal isolation analysis in consultation with legal counsel, and concluded that the transaction now achieved the sale accounting requirements for the transferred notes receivable. Following the derecognition guidance, we (a) derecognized the transferred financial assets, (b) applied the guidance in ASC paragraphs 860-20-25-1 and 860-20-30-1 on recognition and measurement of assets obtained and liabilities incurred in the sale, and (c) recognized in earnings a $0.6 million gain on sale.
There was no balance of collateralized receivables at December 31, 2019. The balance of the collateralized receivables was $106.9 million (net of allowance of $0.8 million) and $128.2 million (net of allowance of $0.9 million) as of December 31, 2018, and December 31, 2017, respectively.2018. The receivables havehad a weighted average interest rate and maturity of 9.9 percent and 14.1 years as of December 31, 2018, and 10.0 percent and 15.3 years2018.
There was no balance of secured borrowing as of December 31, 2017.
2019. The outstanding balance onof the secured borrowing was $107.7 million and $129.2 million as of December 31, 2018, and December 31, 2017, respectively.2018.
The collateralized receivables earn interest income, and the secured borrowings accrue interest expense at the same interest rates. The amount of interest income and expense recognized was $8.0 million, $11.2 million $13.2 million and $14.0$13.2 million for the years ended December 31, 2019, 2018, 2017, and 2016,2017, respectively.
The balances of the collateralized receivables and secured borrowings fluctuate. The balances increase as additional notes receivable are transferred and exchanged for cash proceeds. The balances are reduced as the related collateralized receivables are collected from the customers, or as the underlying collateral is repurchased. The change in the aggregate gross principal balance of the collateralized receivables is as follows (in thousands):
| | | | Year Ended | | | | | |
| | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 |
| Beginning balance | $ | 129,182 |
| | $ | 144,477 |
| $ | 107,731 |
| | $ | 129,182 |
|
| Financed sales of manufactured homes | — |
| | 8,153 |
| |
| Principal payments and payoffs from our customers | (12,577 | ) | | (12,186 | ) | (11,408 | ) | | (12,577 | ) |
| Principal reduction from repurchased homes | (8,874 | ) | | (11,262 | ) | (5,973 | ) | | (8,874 | ) |
| Derecognition of collateralized receivables | | (90,350 | ) | | — |
|
| Total activity | (21,451 | ) | | (15,295 | ) | (107,731 | ) | | (21,451 | ) |
| Ending balance | $ | 107,731 |
| | $ | 129,182 |
| $ | — |
| | $ | 107,731 |
|
The following table sets forth the allowance for the collateralized receivables (in thousands):
| | | | Year Ended | | | | | |
| | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 |
| Beginning balance | $ | (936 | ) | | $ | (607 | ) | $ | (807 | ) | | $ | (936 | ) |
| Lower of cost or market write-downs | 660 |
| | 1,024 |
| 140 |
| | 660 |
|
| Increase to reserve balance | (531 | ) | | (1,353 | ) | |
| (Increase) / decrease to reserve balance | | 80 |
| | (531 | ) |
| Gain on derecognition of collaterized receivables | | 587 |
| | — |
|
| Total activity | 129 |
| | (329 | ) | 807 |
| | 129 |
|
| Ending balance | $ | (807 | ) | | $ | (936 | ) | $ | — |
| | $ | (807 | ) |
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Notes and Other Receivables
The following table sets forth certain information regarding notes and other receivables (in thousands):
| | | | | Year Ended | | | | | |
| | | December 31, 2018 | | December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Installment notes receivable on manufactured homes, net | | $ | 112,798 |
| | $ | 115,797 |
| | $ | 95,580 |
| | $ | 112,798 |
|
| Notes receivable from real estate developers | | | 18,960 |
| | — |
|
| Other receivables, net | | 47,279 |
| | 47,699 |
| | 43,386 |
| | 47,279 |
|
| Total notes and other receivables, net | | $ | 160,077 |
| | $ | 163,496 |
| | $ | 157,926 |
| | $ | 160,077 |
|
Installment Notes Receivable on Manufactured Homes
The installment notes of $95.6 million (net of allowance of $0.6 million) and $112.8 million (net of allowance of $0.7 million) and $115.8 million (net of allowance of $0.4 million) as of December 31, 20182019 and December 31, 2017,2018, respectively, are collateralized by manufactured homes. The notes represent financing provided to purchasers of manufactured homes primarily located in our communities and require monthly principal and interest payments. The notes have a weighted average interest rate (net of servicing costs) and maturity of 8.0 percent and 15.8 years as of December 31, 2019, and 8.0 percent and 16.6 years as of December 31, 2018, and 8.2 percent and 17.2 years as of December 31, 2017.2018.
The change in the aggregate gross principal balance of the installment notes receivable is as follows (in thousands):
| | | | Year Ended | | | | | |
| | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 |
| Beginning balance | $ | 116,174 |
| | $ | 59,524 |
| $ | 113,495 |
| | $ | 116,174 |
|
| Financed sales of manufactured homes | 14,237 |
| | 66,104 |
| 341 |
| | 14,237 |
|
| Acquired notes | — |
| | 23 |
| |
| Principal payments and payoffs from our customers | (8,966 | ) | | (6,128 | ) | (8,710 | ) | | (8,966 | ) |
| Principal reduction from repossessed homes | (7,950 | ) | | (3,349 | ) | (8,901 | ) | | (7,950 | ) |
| Total activity | (2,679 | ) | | 56,650 |
| (17,270 | ) | | (2,679 | ) |
| Ending balance | $ | 113,495 |
| | $ | 116,174 |
| $ | 96,225 |
| | $ | 113,495 |
|
Allowance for Losses for Installment Notes Receivable
The following table sets forth the allowance change for the installment notes receivable (in thousands):
| | | | Year Ended | | | | | |
| | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 |
| Beginning balance | $ | (377 | ) | | $ | (205 | ) | $ | (697 | ) | | $ | (377 | ) |
| Lower of cost or market write-downs | 678 |
| | 170 |
| 203 |
| | 678 |
|
| Increase to reserve balance | (998 | ) | | (342 | ) | (151 | ) | | (998 | ) |
| Total activity | (320 | ) | | (172 | ) | 52 |
| | (320 | ) |
| Ending balance | $ | (697 | ) | | $ | (377 | ) | $ | (645 | ) | | $ | (697 | ) |
Notes Receivable from Real Estate Developers
As of December 31, 2019, the notes receivables balance of $19.0 million primarily comprise short term construction loans provided to real estate developers.
Other Receivables
As of December 31, 2019, other receivables were comprised of amounts due from: residents for rent, utility charges, fees and other pass through charges of $7.8 million (net of allowance of $2.2 million); home sale proceeds of $20.9 million; insurance receivables of $9.9 million, and other receivables of $4.8 million. As of December 31, 2018, other receivables were comprised of amounts due fromfrom: residents for rent, utility charges, fees and water and sewer usageother pass through charges of $7.1 million (net of allowance of $1.5 million),; home sale proceeds of $16.1 million,million; and insurance and other receivables of $24.1 million. As of December 31, 2017, other receivables were comprised of amounts due from residents for rent, and water and sewer usage of $7.0 million (net of allowance of $1.5 million), home sale proceeds of $13.8 million, insurance and other receivables of $26.9 million.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. Intangible Assets
Our intangible assets include below market ground leases, in-place leases, franchise agreements and other intangible assets. These intangible assets are recorded in Other assets, net on the Consolidated Balance Sheets.
In June 2018, we acquired 50 percentaccordance with FASB ASC Topic 842, below market leases are now classified as a right of a land parcel that was previously subject to a ground lease at one of our California communities for $8.0 million. As a result of the transaction, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.3 million of the related accumulated amortization. The $0.8 million net write off is included within the Property operating and maintenance expenses in our Consolidated Statements of Operations for the year ended December 31, 2018.
In December 2017, we acquired 25.0 percent of the land that was previously under a ground lease at one of our California communities for $4.0 million, and amended the ground lease agreement to include an option to purchase an additional 25.0 percent of the land. As a result of these transactions, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.2 million of accumulated amortization. The $0.9 million net write off is included within Property operating and maintenance expense in our Consolidated Statements of Operations for the year ended December 31, 2017.use asset.
The gross carrying amounts and accumulated amortization are as follows (in thousands):
| | | | | December 31, 2018 | | December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Intangible Asset | | Useful Life | | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization | | Useful Life | | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
| Below market ground leases | | 2 - 75 years | | $ | 31,060 |
| | $ | (1,942 | ) | | $ | 32,165 |
| | $ | (1,409 | ) | |
| In-place leases | | 7 years | | 103,547 |
| | (59,068 | ) | | 100,843 |
| | (45,576 | ) | | 7 years | | $ | 127,313 |
| | $ | (73,980 | ) | | $ | 103,547 |
| | $ | (59,068 | ) |
| Franchise agreements and other intangible assets | | 7 - 20 years | | 16,641 |
| | (1,942 | ) | | 1,880 |
| | (1,451 | ) | | 7 - 20 years | | 16,943 |
| | (2,760 | ) | | 16,641 |
| | (1,942 | ) |
| Total | | $ | 151,248 |
|
| $ | (62,952 | ) |
| $ | 134,888 |
| | $ | (48,436 | ) | | $ | 144,256 |
|
| $ | (76,740 | ) |
| $ | 120,188 |
| | $ | (61,010 | ) |
Total amortization expenses related to our intangible assets are as follows (in thousands):
| | | | | Year Ended December 31, | | Year Ended |
| Intangible Asset | | 2018 | | 2017 | | 2016 | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Below market ground leases | | $ | 821 |
| | $ | 809 |
| | $ | 600 |
| |
| In-place leases | | 12,913 |
| | 13,812 |
| | 11,559 |
| | $ | 14,912 |
| | $ | 12,913 |
| | $ | 13,812 |
|
| Franchise fees and other intangible assets | | 507 |
| | 301 |
| | 535 |
| | 818 |
| | 507 |
| | 301 |
|
| Total | | $ | 14,241 |
| | $ | 14,922 |
| | $ | 12,694 |
| | $ | 15,730 |
| | $ | 13,420 |
| | $ | 14,113 |
|
We anticipate amortization expense for our intangible assets to be as follows for the next five years (in thousands):
|
| | | | | | | | | | | | | | | | | | | | |
| | | Year |
| | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 |
| Estimated expense | | $ | 14,630 |
| | $ | 12,902 |
| | $ | 12,510 |
| | $ | 7,908 |
| | $ | 4,533 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 |
| Estimated expense | | $ | 15,522 |
| | $ | 15,130 |
| | $ | 10,529 |
| | $ | 7,154 |
| | $ | 4,791 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Investments in Nonconsolidated Affiliates
Investments in joint ventures that are not consolidated, nor recorded at cost, are accounted for using the equity method of accounting as prescribed in FASB ASC Topic 323, “Investments - Equity Method and Joint Ventures.” Investments in nonconsolidated affiliates are recorded within Other assets, net on the Consolidated Balance Sheets. Equity income and loss are recorded in the Income / (loss) from nonconsolidated affiliates on the Consolidated Statements of Operations.
RezPlot Systems LLC (“Rezplot”)
At December 31, 2019, the Company had a 50 percent ownership interest in RezPlot, a RV reservation software technology company, acquired in January 2019.
Sungenia JV
At December 31, 2019 and December 31, 2018, the Company had a 50 percent interest in Sungenia JV, a joint venture (“JV”) formed between the Company and Ingenia Communities Group in November 2018, to establish and grow a manufactured housing community development program in Australia.
GTSC LLC (“GTSC”)
At December 31, 2019 and December 31, 2018, the Company had a 40 percent ownership interest in GTSC, which engages in acquiring, holding and selling loans secured, directly or indirectly, by manufactured homes located in communities of Sun Communities.
Origen Financial Services, LLC (“OFS”)
At December 31, 2019 and December 31, 2018, the Company had a 22.9 percent ownership interest in OFS, an end-to-end online resident screening and document management suite.
The investment balance in each nonconsolidated affiliate is as follows (in millions):
|
| | | | | | | | |
| Investment | | December 31, 2019 | | December 31, 2018 |
| Investment in RezPlot | | $ | 4.2 |
| | $ | — |
|
| Investment in Sungenia JV | | 12.0 |
| | 0.7 |
|
Investment in GTSC (1) | | 18.5 |
| | 29.8 |
|
| Investment in OFS | | 0.1 |
| | 0.1 |
|
| Total | | $ | 34.8 |
| | $ | 30.6 |
|
(1) The decrease in investment balance is primarily due to return of capital.
The year to date Equity income / (loss) from each nonconsolidated affiliate is as follows (in thousands):
|
| | | | | | | | |
| Equity income | | December 31, 2019 | | December 31, 2018 |
| RezPlot equity loss | | $ | (1,344 | ) | | $ | — |
|
| Sungenia JV equity loss | | (290 | ) | | — |
|
| GTSC equity income | | 2,803 |
| | 604 |
|
| OFS equity income | | 205 |
| | 186 |
|
| Total equity income | | $ | 1,374 |
| | $ | 790 |
|
Investments in joint ventures in which we do not have a controlling direct or indirect voting interest, but can exercise significant influence over the entity with respect to our operations and major decisions, are accounted for using the equity method of accounting whereby the cost of an investment is adjusted for our share of the equity in net income or loss from the date of acquisition, reduced by distributions received and increased by contributions made. The income or loss of each entity is allocated in accordance with the provisions of the applicable operating agreements. The allocation provisions in these agreements may differ from the ownership interests held by each investor.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Sungenia JV8. - Consolidated Variable Interest EntitiesIn November 2018,
The Operating Partnership
We consolidate the Company and Ingenia Communities Group entered into a joint venture (“JV”) to establish and grow a manufactured housing community development program in Australia. The JV is referred to as “Sungenia JV.” We hold a 50 percent interest in the JV entity. We account for our interest in the Sungenia JVOperating Partnership under the equity method of accounting as prescribed byguidance set forth in FASB ASC Topic 323, “Investments - Equity Method and Joint Ventures,” as neither party of the Sungenia JV has individual control and we have equal exercise of significant influence. As of December 31, 2018 we had a $0.7 million investment in the Sungenia JV. During the year ended December 31, 2018, we recognized no equity gain or loss on the Consolidated Statement of Operations related to our ownership interest.
GTSC LLC (810 “GTSC”Consolidation.” ) - In February 2018, we became a noncontrolling member of GTSC. GTSC engages in acquiring, holding and selling loans secured, directly or indirectly, by manufactured homes located in our communities. At December 31, 2018, we had a 40 percent ownership interest in GTSC. The remaining 60 percent interest is owned by an unrelated third party. We account for our interest in GTSC under the equity method of accounting as prescribed by FASB ASC Topic 323 “Investments - Equity Method and Joint Ventures.”During the year ended December 31, 2018, there was $0.5 million net gain in Income from nonconsolidated affiliates on the Consolidated Statement of Operations related to our ownership interest. Our investment in GTSC as of December 31, 2018, is $29.8 million and recorded within Other assets, net on the Consolidated Balance Sheet.
Origen Financial Services, LLC (“OFS LLC”) - At December 31, 2018 and 2017, we had a 22.9 percent ownership interest in OFS LLC, an entity that specializes in resident screening services. Previously we had suspended equity method accounting as the carrying value of our investment was zero as prescribed by FASB ASC Topic 323 “Investments - Equity Method and Joint Ventures.” Subsequently in 2018, we resumed equity method accounting as our unrecorded losses were recovered. As of December 31, 2018 and 2017 our investment in OFS LLC was $0.1 million and zero, respectively and is recorded within Other assets, net on the Consolidated Balance Sheet. During the year ended December 31, 2018 and 2017, we recognized $0.2 million and zero income, respectively, in the Income from nonconsolidated affiliates on the Consolidated Statement of Operations.
8. Consolidated Variable Interest Entities
In 2016, we adopted (“ASU 2015-02”) Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 modified the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. We evaluated the application of ASU 2015-02 and concluded that no change was required to our accounting for interests in less than wholly-owned Joint ventures. However, the Operating Partnership now meets the criteria asof a VIE. Our significant asset is our investment in the Operating Partnership, and consequently, substantially all of our assets and liabilities represent those assets and liabilities of the Operating Partnership. We are the sole general partner and generally have the power to manage and have complete control over the Operating Partnership and the obligation to absorb its losses or the right to receive its benefits. Accordingly, we consolidate the Operating Partnership under this new guidance.
Effective June 1, 2018, we acquired a majority interest in Sun NG RV Resorts LLC (“Sun NG Resorts”), which is comprised of ten; Rudgate Village SPE, LLC, Rudgate Clinton SPE, LLC, and Rudgate Clinton Estates SPE, LLC (collectively, “Rudgate”); Sun NG Whitewater RV resorts and one ground up RV development with 2,700 RV sites and an additional 940 sites available for development. LLC (“Whitewater Resorts”);
We purchased an 80 percent interest inconsolidate Sun NG Resorts, for $61.6 million through Sun NG LLC; the remaining 20 percent interest of $15.4 million is held by an unrelated third party. We paid additional consideration of $123.3 million, consisting of a $1.8 million preferred equity investmentRudgate, and a $121.5 million temporary loan to Sun NG Resorts.
We consolidate Sun NGWhitewater Resorts, under the guidance set forth in FASB ASC Topic 810 “Consolidation.“Consolidation.” We concluded that Sun NG Resortseach of them is a VIE where we are the primary beneficiary, as we have the power to direct the significant activities, absorb the significant losses and receive the significant benefits from the entity. Refer to Note 3, “Real“Real Estate Acquisitions,” Note 9, “Debt“Debt and Lines of Credit,” and Note 10, “Equity“Equity and Mezzanine Securities”Temporary Equity” for additional information.
We consolidate Rudgate Village SPE, LLC; Rudgate Clinton SPE, LLC; and Rudgate Clinton Estates SPE, LLC (collectively, “Rudgate”) as a variable interest entity (“VIE”). We evaluated our arrangement with this property under the guidance set forth in FASB ASC Topic 810 “Consolidation.” We concluded that Rudgate qualified as a VIE where we are the primary beneficiary, as we have power to direct the significant activities, absorb the significant losses and receive the significant benefits from the entity.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the assets and liabilities included in our Consolidated Balance Sheets after appropriate eliminations have been made (in thousands):
| | | | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 |
| ASSETS | | | | |
| Assets | | | | |
| Investment property, net | $ | 308,171 |
| | $ | 50,193 |
| $ | 344,300 |
| | $ | 308,171 |
|
| Other assets | 19,809 |
| | 1,659 |
| 23,894 |
| | 19,809 |
|
| Total Assets | $ | 327,980 |
| | $ | 51,852 |
| $ | 368,194 |
| | $ | 327,980 |
|
| | | | | | | |
| LIABILITIES AND OTHER EQUITY | | | | |
| Liabilities and Other Equity | | | | |
| Debt | $ | 44,172 |
| | $ | 41,970 |
| $ | 46,993 |
| | $ | 44,172 |
|
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,277 |
| | — |
| 35,249 |
| | 35,277 |
|
| Other liabilities | 6,914 |
| | 1,468 |
| 13,631 |
| | 6,914 |
|
| Total Liabilities | 86,363 |
| | 43,438 |
| 95,873 |
| | 86,363 |
|
| Equity Interest - NG Sun LLC | 21,976 |
| | — |
| |
| Equity Interest - NG Sun LLC & NG Whitewater | | 27,091 |
| | 21,976 |
|
| Noncontrolling interests | 7,145 |
| | 4,285 |
| 8,542 |
| | 7,145 |
|
| Total Liabilities and Other Equity | $ | 115,484 |
| | $ | 47,723 |
| $ | 131,506 |
| | $ | 115,484 |
|
Investment property, net and other assets, net related to the consolidated VIEs, with the exception of SCOLP, comprised approximately 4.94.7 percent and 0.84.9 percent of our consolidated total assets at December 31, 20182019 and December 31, 2017,2018, respectively. Debt, Preferred Equity and other liabilities comprised approximately 2.62.5 percent and 1.22.6 percent of our consolidated total liabilities at December 31, 20182019 and December 31, 2017,2018, respectively. Equity Interests and Noncontrolling interests related to the consolidated VIEs, on an absolute basis, comprised approximately less than 1.0 percent of our consolidated total equity at December 31, 20182019 and at December 31, 2017.2018.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. Debt and Lines of Credit
The following table sets forth certain information regarding debt including premiums, discounts, and deferred financing costs (in thousands):
| | | | Carrying Amount | | Weighted Average Years to Maturity | | Weighted Average Interest Rates | Carrying Amount | | Weighted Average Years to Maturity | | Weighted Average Interest Rates |
| | December 31, 2018 | | December 31, 2017 | | December 31, 2018 | | December 31, 2017 | | December 31, 2018 | | December 31, 2017 | December 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 | | December 31, 2019 | | December 31, 2018 |
| Collateralized term loans - Life Companies | $ | 1,259,158 |
| | $ | 1,044,246 |
| | 14.4 | | 13.9 |
| | 3.9 | % | | 3.9 | % | $ | 1,710,408 |
| | $ | 1,259,158 |
| | 17.1 | | 14.4 | | 4.0 | % | | 3.9 | % |
| Collateralized term loans - FNMA | 770,417 |
| | 1,026,014 |
| | 5.1 | | 5.6 |
| | 4.4 | % | | 4.4 | % | 697,589 |
| | 770,417 |
| | 7.0 | | 5.1 | | 3.7 | % | | 4.4 | % |
| Collateralized term loans - CMBS | 405,702 |
| | 410,747 |
| | 4.1 | | 5.0 |
| | 5.1 | % | | 5.1 | % | 397,868 |
| | 405,702 |
| | 3.1 | | 4.1 | | 5.1 | % | | 5.1 | % |
| Collateralized term loans - FMCC | 380,680 |
| | 386,349 |
| | 5.9 | | 6.9 |
| | 3.9 | % | | 3.9 | % | 374,727 |
| | 380,680 |
| | 4.9 | | 5.9 | | 3.9 | % | | 3.9 | % |
| Secured borrowings | 107,731 |
| | 129,182 |
| | 14.4 | | 15.3 |
| | 9.9 | % | | 10.0 | % | — |
| | 107,731 |
| | 0.0 | | 14.4 | | — | % | | 9.9 | % |
| Preferred equity - Sun NG Resorts - mandatorily redeemable | | 35,249 |
| | 35,277 |
| | 2.8 | | 3.8 | | 6.0 | % | | 6.0 | % |
| Preferred OP units - mandatorily redeemable | | 34,663 |
| | 37,338 |
| | 4.0 | | 4.7 | | 6.5 | % | | 6.6 | % |
| Lines of credit | 128,000 |
| | 41,257 |
| | 2.3 | | 3.1 |
| | 3.8 | % | | 2.8 | % | 183,898 |
| | 128,000 |
| | 3.5 | | 2.3 | | 2.7 | % | | 3.8 | % |
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,277 |
| | — |
| | 3.8 | | — |
| | 6.0 | % | | — | % | |
| Preferred OP units - mandatorily redeemable | 37,338 |
| | 41,443 |
| | 4.7 | | 5.0 |
| | 6.6 | % | | 6.7 | % | |
| Total debt | $ | 3,124,303 |
| | $ | 3,079,238 |
| | 9.0 | | 8.9 |
| | 4.5 | % | | 4.5 | % | $ | 3,434,402 |
| | $ | 3,124,303 |
| | 11.1 | | 9.0 | | 4.0 | % | | 4.5 | % |
Collateralized Term Loans
All of our collateralized term loans are mortgage loans.
During the three monthsyears ended December 31, 2019 and 2018, we repaid athe following collateralized term loan of $10.2 million with an interest rate of 5.66 percent. The loan wasloans:
|
| | | | | | | | | | | | | | | | |
| Three months ended | | Repayment amount (in millions) | | Fixed Interest rate | | Maturity date | | (Gain) / loss on extinguishment of debt (in millions) | | Encumbered communities released |
| December 31, 2019 | | $ | 17.0 |
| | 5.62 | % | | March 1, 2020 | | $ | — |
| | — |
|
| | $ | 127.3 |
| | 5.10 | % | | November 1, 2021 | | $ | 3.2 |
| | — |
|
| | $ | 21.5 |
| (1) | 6.24 | % | (4) | March 1, 2020 April 1, 2020 | | $ | (0.2 | ) | | 3 |
|
| September 30, 2019 | | $ | 134.0 |
| | 4.3 | % | | May 1, 2023 | | $ | 12.8 |
| | — |
|
| March 31, 2019 | | $ | 186.8 |
| | 3.83 | % | | January 1, 2030 | | $ | 0.7 |
| | — |
|
| December 31, 2018 | | $ | 10.2 |
| | 5.66 | % | | February 28, 2019 | | $ | — |
| | — |
|
| September 30, 2018 | | $ | 30.5 |
| | 6.34 | % | | March 1, 2019 | | $ | 0.9 |
| | 1 |
|
June 30, 2018 (2) | | $ | 177.7 |
| | 4.53 | % | (4) | August 1, 2018 May 1, 2023 | | $ | 1.5 |
| | 11 |
|
March 31, 2018 (3) | | $ | 24.4 |
| | 6.36 | % | (4) | March 1, 2019 | | $ | 0.2 |
| | 3 |
|
(1) Includes four collateralized term loans, three due to mature on February 28,March 1, 2020 and one due to mature on April 1, 2020.
(2) Includes three collateralized term loans, one due to mature on August 1, 2018 and two due to mature on May 1, 2023.
(3) Includes four collateralized term loans, all due to mature on March 1, 2019. Concurrently,
(4) The interest rate represents the weighted average interest rate on collateralized term loans.
During the years ended December 31, 2019 and 2018, we entered into a $21.7 millionthe following collateralized term loan with a 4.10 fixed interest rateloans:
|
| | | | | | | | | | | |
| Three months ended | | Loan amount (in millions) | | Term (in years) | | Interest rate | | Maturity date |
| December 31, 2019 | | $ | 400.0 |
| (1) | 21 | | 4.026 | % | | December 15, 2039 December 15, 2041 |
| September 30, 2019 | | $ | 250.0 |
| | 10 | | 2.925 | % | | October 1, 2029 |
| March 31, 2019 | | $ | 265.0 |
| | 25 | | 4.170 | % | | January 15, 2044 |
| December 31, 2018 | | $ | 21.7 |
| | 20 | | 4.100 | % | | August 15, 2038 |
| September 30, 2018 | | $ | 228.0 |
| | 20 | | 4.100 | % | | August 15, 2038 |
(1) Includes two collateralized term loans one due to mature on December 15, 2039 and 20-year term.the other on December 1, 2041.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
During the three months ended September 30, 2018, we entered into a $228.0 million collateralized term loan with a 4.10 percent fixed interest rate and a 20-year term. During the three months ended September 30, 2018, we repaid one collateralized term loan of $30.5 million with an interest rate of 6.34 percent, releasing one encumbered community, which was due to mature March 1, 2019. We recognized a loss on extinguishment of debt of $0.3 million as a result of the repayment transaction in our Consolidated Statement of Operations.
During the three months ended June 30, 2018 we repaid three collateralized term loans totaling $177.7 million with a weighted average interest rate of 4.53 percent, releasing 11 encumbered communities. One loan was due to mature on August 1, 2018 and two loans were due to mature on May 1, 2023. We recognized a loss on extinguishment of debt of $1.5 million as a result of the repayment transaction.
During the three months ended March 31, 2018, we repaid four collateralized term loans totaling $24.4 million with a weighted average interest rate of 6.36 percent, releasing three encumbered communities. The loans were due to mature on March 1, 2019. We recognized a loss on extinguishment of debt of $0.2 million as a result of the repayment transactions.
In December 2017, we defeased a $38.6 million collateralized term loan with a 5.25 percent fixed interest rate that was due to mature on June 1, 2022. As a result of the transaction we recognized a loss on extinguishment of debt of $5.2 million in our Consolidated Statements of Operations. Concurrent with the defeasance, we entered into a new $100.0 million collateralized term loan, encumbered by the same property, with a 4.25 percent fixed rate of interest and 30-year term.
In September 2017, in connection with the Ocean West acquisition, we assumed a $4.6 million collateralized term loan with Fannie Mae, with an interest rate of 4.34 percent and a remaining term of 9.8 years.
In June 2017, we entered into a $77.0 million collateralized term loan which bears interest at a rate of 4.16 percent amortizing over a 25-year term. We also repaid a $3.9 million collateralized term loan with an interest rate of 6.54 percent that was due to mature on August 31, 2017. As a result of the repayment transaction, we recognized a loss on extinguishment of debt of $0.3 million in our Consolidated Statements of Operations.
During the first quarter of 2017, we defeased an $18.9 million collateralized term loan with an interest rate of 6.49 percent that was due to mature on August 1, 2017, releasing one encumbered community. As a result of the transaction, we recognized a loss on extinguishment of debt of $0.5 million in our Consolidated Statements of Operations. In addition, we repaid a $10.0 million collateralized term loan with an interest rate of 5.57 percent that was due to mature on May 1, 2017, releasing an additional encumbered community.
The collateralized term loans totaling $2.8$3.2 billion as of December 31, 2018,2019, are secured by 185188 properties comprised of 72,79974,170 sites representing approximately $3.2$3.3 billion of net book value.
Secured Borrowings
See Note 4, “Collateralized“Collateralized Receivables and Transfers of Financial Assets,” for information regarding our collateralized receivables and secured borrowing transactions.
Preferred OP Units - mandatorily redeemable
Preferred OP units at December 31, 20182019 and 2017December 31, 2018 include $34.7 million of Aspen preferred OP units issued by the Operating Partnership. As of December 31, 2018,2019, these units are convertible indirectly into 447,049407,190 shares of our common stock. Subject to certain limitations, at any time prior to January 1, 2024, the holder of each Aspen preferred OP unit at its option may convert such Aspen preferred OP unit into: (a) if the market price of our common stock is $68.00 per share or less, 0.397 common OP units; or (b) if the market price of our common stock is greater than $68.00 per share, the number of common OP units is determined by dividing (i) the sum of (A) $27.00 plus (B) 25 percent of the amount by which the market price of our common stock exceeds $68.00 per share, by (ii) the per-shareper share market price of our common stock. The current preferred distribution rate is 6.5 percent. On January 2, 2024, we are required to redeem all Aspen preferred OP units that have not been converted to common OP units. Refer to Note 21, “Subsequent Events,” for additional information regarding revisions to the terms of certain of the Aspen preferred OP units.
Preferred OP units also include $2.7 million and $6.7 million at December 31, 2018 and 2017, respectively, of Series B-3 preferred OP units at December 31, 2018, which are not convertible. During the year ended December 31, 2018, we redeemed 41,051 of the Series B-3 preferred OP units at an average redemption price per unit, which included accrued and unpaid distributions, of $100.065753. In the aggregate, we paid $4.1 million to redeem these units. In January 2019, we redeemed all remaining 26,750 Series B-3 preferred OP units.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The weighted average redemption price per unit, which included accrued and unpaid distributions, was $100.153425.$100.153424. In the aggregate, we paid $2.7 million to redeem the Series B-3 preferred OPthese units.
Preferred Equity - Sun NG Resorts - mandatorily redeemable
In June 2018, in connection with the investment in Sun NG Resorts, $35.3 million of mandatorily redeemable Preferred Equity (“Preferred Equity - Sun NG Resorts”) was purchased by unrelated third parties. The Preferred Equity - Sun NG Resorts carries a preferred rate of return of 6.0 percent per annum. The Preferred Equity - Sun NG Resorts has a 7-year term and can be redeemed in the fourth quarter of 2022 at the holders’ option. The Preferred Equity - Sun NG Resorts as ofbalance was $35.2 million and $35.3 million at December 31, 2018 was $35.3 million.2019 and December 31, 2018. Refer to Note 3, “Real“Real Estate Acquisitions,” Note 8, “Consolidated“Consolidated Variable Interest Entities,” and Note 10, “Equity“Equity and Mezzanine Securities”Temporary Equity” for additional information.
Lines of Credit (“LOC”)
Credit agreement - In April 2017,May 2019, we amended and restated our credit agreement (the “A&R Credit Agreement”) with Citibank N.A. (“Citibank”) and certain other lenders. Pursuant to the A&R Credit Agreement,credit agreement, we entered into a senior revolving credit facility with Citibank and certain other lenders in the amount of $650.0$750.0 million, comprised of a $550.0$650.0 million revolving loan, with the ability to use up to $100.0 million for advances in Australian dollars, and a $100.0 million term loan (the “A&R Facility”). We repaidhave until March 17, 2020 to draw on the term loan in fullloan. As of December 31, 2019, we had not drawn any funds on September 7, 2018.the term loan. The A&R Credit Agreementcredit agreement has a four-year term ending April 25, 2021,May 21, 2023, which can be extended for two additional six-month periods, at our option, subject to the satisfaction of certain conditions as defined in the credit agreement. The A&R Credit Agreementcredit agreement also provides for, subject to the satisfaction of certain conditions, additional commitments in an amount not to exceed $350.0 million. If additional borrowings are made pursuant to any such additional commitments, the aggregate borrowing limit under the A&R Facility may be increased up to $900.0 million.$1.1 billion.
The A&R Facility bears interest at a floating rate based on the Eurodollar rate or Bank Bill Swap Bid Rate plus a margin that is determined based on our leverage ratio calculated in accordance with the A&R Credit Agreement,credit agreement, which margin can range from 1.351.20 percent to 2.202.10 percent for the revolving loan and 1.20 percent to 2.05 percent for the term loan. As of December 31, 2018,2019, the margin based on our leverage ratio was 1.351.20 percent on the revolving loan and 1.20 percent on the term loan. We had $128.0$123.6 million and 0 of borrowings on the revolving loan and no borrowings on the term loan, respectively, as of December 31, 2018.2019.
The A&R Facility provides us with the ability to issue letters of credit. Our issuance of letters of credit does not increase our borrowings outstanding under our line of credit but does reduce the borrowing amount available. At December 31, 20182019 and December 31, 2017,2018, approximately $2.8 million and $3.9 million and $1.3 million, respectively, of availability was used to back standby letters of credit.
Floor plan - We have a $12.0 million manufactured home floor plan facility renewable indefinitely until our lender provides us at least a twelve month notice of their intent to terminate the agreement. The interest rate is 100 basis points over the greater of the prime rate as quoted in the Wall Street Journal on the first business day of each month or 6.0 percent. At December 31, 2018,2019, the effective interest rate was 7.0 percent. The outstanding balance was zero$3.3 million and $4.0 million0 as of December 31, 20182019 and December 31, 2017,2018, respectively.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Jensen - In October 2019, we assumed a term loan facility with Citibank N.A. (“Citibank”), in the amount of $58.0 million. The term loan has a four-year term ending October 29, 2023, and bears interest at a floating rate based on the Eurodollar rate or Prime rate. The outstanding balance was $57.0 million at December 31, 2019.
Covenants
Pursuant to the terms of the A&R Facility, we are subject to various financial and other covenants. The most restrictive of our debt agreements place limitations on secured borrowings and contain minimum fixed charge coverage, leverage, distribution, and net worth requirements. At December 31, 2018,2019, we were in compliance with all covenants.
In addition, certain of our subsidiary borrowers own properties that secure loans. These subsidiaries are consolidated within our accompanying Consolidated Financial Statements, however, each of these subsidiaries’ assets and credit are not available to satisfy the debts and other obligations of the Company, any of its other subsidiaries or any other person or entity.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Long-term Debt Maturities
As of December 31, 2018,2019, the total of maturities and amortization of our debt (excluding premiums and discounts) and lines of credit during the next five years were as follows (in thousands):
| | | | Maturities and Amortization By Year | Maturities and Amortization By Year |
| | Total Due | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | Thereafter | Total Due | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | Thereafter |
| Mortgage loans payable: | | | | | | | | | | | | | | |
| Mortgage loans payable | | | | | | | | | | | | | | |
| Maturities | $ | 2,078,926 |
| | $ | — |
| | $ | 58,078 |
| | $ | 270,680 |
| | $ | 82,155 |
| | $ | 307,465 |
| | $ | 1,360,548 |
| $ | 2,161,615 |
| | $ | 19,796 |
| | $ | 148,378 |
| | $ | 82,155 |
| | $ | 185,618 |
| | $ | 315,331 |
| | $ | 1,410,337 |
|
| Principal amortization | 734,675 |
| | 58,164 |
| | 59,630 |
| | 58,843 |
| | 56,822 |
| | 53,437 |
| | 447,779 |
| 1,026,857 |
| | 60,723 |
| | 60,873 |
| | 61,326 |
| | 60,604 |
| | 57,082 |
| | 726,249 |
|
| Secured borrowings | 107,731 |
| | 5,265 |
| | 5,746 |
| | 6,171 |
| | 6,379 |
| | 6,374 |
| | 77,796 |
| |
| Preferred Equity - Sun NG Resorts - mandatorily redeemable | 35,277 |
| | — |
| | — |
| | — |
| | 35,277 |
| | — |
| | — |
| 35,249 |
| | — |
| | — |
| | 35,249 |
| | — |
| | — |
| | — |
|
| Preferred OP units - mandatorily redeemable | 37,338 |
| | 2,675 |
| | — |
| | — |
| | — |
| | — |
| | 34,663 |
| 34,663 |
| | — |
| | — |
| | — |
| | — |
| | 34,663 |
| | — |
|
| Lines of credit | 128,000 |
| | — |
| | — |
| | 128,000 |
| | — |
| | — |
| | — |
| 183,898 |
| | 10,000 |
| | 13,293 |
| | 10,000 |
| | 150,605 |
| | — |
| | — |
|
| Total | $ | 3,121,947 |
| | $ | 66,104 |
| | $ | 123,454 |
| | $ | 463,694 |
| | $ | 180,633 |
| | $ | 367,276 |
| | $ | 1,920,786 |
| $ | 3,442,282 |
| | $ | 90,519 |
| | $ | 222,544 |
| | $ | 188,730 |
| | $ | 396,827 |
| | $ | 407,076 |
| | $ | 2,136,586 |
|
Off-Balance Sheet Arrangements - Nonconsolidated Affiliate Indebtedness
We have a 40 percent investment in GTSC, a nonconsolidated affiliate. During September 2019, GTSC entered into a warehouse line of credit with a maximum loan amount of $125.0 million. As of December 31, 2019, the aggregate carrying amount of debt, including both our and our partners’ share, incurred by GTSC was approximately $123.4 million (of which our proportionate share is approximately $49.4 million). The debt bears interest at a variable rate based on LIBOR plus 1.65 percent per annum and matures on September 15, 2023.
10. Equity and Mezzanine SecuritiesTemporary Equity
Public Equity Offerings
In September 2018,May 2019, we closed an underwritten registered public offering of 5,060,0003,737,500 shares of common stock. Proceeds from the offering were $499.9$452.1 million after deducting expenses related to the offering. We used the net proceeds of this offering to repay borrowings under the revolving loan and the term loan under our senior credit facility. The Company intends to use the remaining net proceeds of this offering to fund possible future acquisitions and for working capital and general corporate purposes.
In May 2017, we closed an underwritten registered public offering of 4,830,000 shares of common stock. Proceeds from the offering were $408.9 million after deducting expenses related to the offering, which were used to repay borrowings outstanding under the revolving loan under our A&R Facility, fund acquisitions, working capital and general corporate purposes.senior credit facility.
At the Market Offering Sales Agreement
In July 2017, we entered into a new at the market offering sales agreement (the(as amended, the “Sales Agreement”) with certain sales agents (collectively, the “Sales Agents”), whereby we may offer and sell shares of our common stock, having an aggregate offering price of up to $450.0 million, from time to time through the Sales Agents. The Sales Agents are entitled to compensation in an agreed amount not to exceed 2.0 percent of the gross price per share for any shares sold from time to time under the Sales Agreement. Through December 31, 20182019 we have sold shares of our common stock for gross proceeds of $163.8 million under the Sales Agreement.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
There was no issuance of common stock under the Sales Agreement in 2019. Issuances of common stock under the Sales Agreement through December 31, 2018, and 2017 were as follows:shown in the table below:
|
| | | | | | | | | | | |
| Quarter Ended | | Common Stock Issued | | Weighted Average Sales Price | | Net Proceeds (in Millions) |
| September 30, 2018 | | 398,516 |
| | $ | 100.19 |
| | $ | 39.4 |
|
| June 30, 2018 | | 1,008,699 |
| | $ | 92.98 |
| | $ | 92.6 |
|
| December 31, 2017 | | 321,800 |
| | $ | 93.33 |
| | $ | 29.7 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
| | | | | | | | | | | |
| Quarter Ended | | Common stock issued | | Weighted average sales price | | Net proceeds (in millions) |
| September 30, 2018 | | 398,516 |
| | $ | 100.19 |
| | $ | 39.4 |
|
| June 30, 2018 | | 1,008,699 |
| | $ | 92.98 |
| | $ | 92.6 |
|
| December 31, 2017 | | 321,800 |
| | $ | 93.33 |
| | $ | 29.7 |
|
Issuances of common stock under our previous at the market offering sales agreement during 2017 and 2016 were as follows:
| | | Quarter Ended | | Common Stock Issued | | Weighted Average Sales Price | | Net Proceeds (in Millions) | | Common stock issued | | Weighted average sales price | | Net proceeds (in millions) |
| June 30, 2017 | | 400,000 |
| | $ | 85.01 |
| | $ | 33.6 |
| | 400,000 |
| | $ | 85.01 |
| | $ | 33.6 |
|
| March 31, 2017 | | 280,502 |
| | $ | 76.47 |
| | $ | 21.2 |
| | 280,502 |
| | $ | 76.47 |
| | $ | 21.2 |
|
| December 31, 2016 | | 19,498 |
| | $ | 75.90 |
| | $ | 1.5 |
| |
| September 30, 2016 | | 620,828 |
| | $ | 76.81 |
| | $ | 47.1 |
| |
| June 30, 2016 | | 485,000 |
| | $ | 71.86 |
| | $ | 34.4 |
| |
Temporary Equity
Equity Interests - NG Sun Whitewater RV LLC - In August 2019, in connection with the investment in land at the property known as Whitewater, NG Sun Whitewater LLC purchased $2.4 million of common equity interest in Sun NG Whitewater RV LLC Resorts (referred to as “Equity Interests - NG Sun Whitewater RV LLC”). The Equity Interests - NG Sun Whitewater RV LLC do not have a fixed maturity date and can be redeemed any time after the last day of the third full year that the RV park has been operated as a recreational vehicle park, or last day of the third full year that the RV park has been operated as a recreational vehicle park after the completion of the development of phase two (the “buy-sell trigger date”). Sun NG LLC, our subsidiary, has the right to terminate the agreement after the buy-sell trigger date. If either party exercises their option, the property management agreement will be terminated, and Sun NG LLC is required to purchase the remaining interests of NG Sun Whitewater LLC and the property management agreement at fair value. Refer to Note 3, “Real Estate Acquisitions,” and Note 8, “Consolidated Variable Interest Entities,” for additional information.
Issuance of Series D Preferred OP Units - In February 2019, we issued 488,958 Series D Preferred OP Units in connection with the acquisition of Country Village Estates. The Series D preferred OP units have a stated issuance price of $100.00 per OP Unit and carry a preferred return of 3.75 percent until the second anniversary of the issuance date. Commencing with the second anniversary of the issuance date, the Series D Preferred OP Units carry a preferred return of 4.0 percent. Commencing with the first anniversary of the issuance date, each Series D Preferred OP Unit can be exchanged for 0.8 shares of our common stock at the holder’s option. The holders may require redemption in cash after the fifth anniversary of the Series D issuance date or upon the holder’s death. Refer to Note 3, “Real Estate Acquisitions” for additional information.
Equity Interests - NG Sun LLC
- In June 2018, in connection with the investment in Sun NG Resorts, unrelated third parties purchased $6.5 million of Series B preferred equity interests and $15.4 million of common equity interest in Sun NG Resorts (herein jointly referred to as “Equity Interest - NG Sun LLC”). The Series B preferred equity interests carry a preferred return at a rate that, at any time, is equal to the interest rate on Sun NG Resorts’ indebtedness at such time. The current rate of return is 5.0 percent. The Equity Interests - NG Sun LLC do not have a fixed maturity date and can be redeemed in the fourth quarter of 2022 at the holders’ option. Sun NG LLC, our subsidiary, has the right during certain periods each year, with or without cause, or for cause at any time, to elect to buy NG Sun LLC’s interest. During a limited period in 2022, NG Sun LLC has the right to put its interest to Sun NG LLC. If either party exercises their option, the property management agreement will be terminated, and the Company is required to purchase the remaining interests of NG Sun LLC and the property management agreement at fair value. Refer to Note 3, “Real“Real Estate Acquisitions,” Note 8, “Consolidated“Consolidated Variable Interest Entities,” and Note 9, “Debt“Debt and Lines of Credit”Credit” for additional information.
Series A-4 Preferred OP Units
On December 13, 2019, all outstanding shares of the Company’s 6.50% Series A-4 Cumulative Convertible Preferred Stock, and all of the Operating Partnership’s Series A-4 Preferred OP Units, were converted into common stock and common OP units, respectively. All 1,031,747 shares of Series A-4 preferred stock were converted into 458,541 shares of common stock (net of fractional shares paid in cash). All 405,656 Series A-4 preferred OP units were converted into 180,277 common OP units (net of fractional units paid in cash). The Series A-4 preferred shares and units were issued to the sellers of the American Land Lease portfolio which we acquired in 2014 and 2015.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Issuances of Common Stock and Common OP Units
In July 2017, we issued 298,900 shares of common stock totaling $26.4 millionOctober 2019, in connection with the acquisition of Pismo Dunes.
In June 2017,the Jensen Portfolio, we issued a total1,972,876 shares of 23,311 common OP units for total considerationstock, net of $2.0 millionfractional shares paid in connection with acquisition activity during the three months ended June 30, 2017.cash.
Conversions
Conversions to Common Stock - Subject to certain limitations, holders can convert certain series of stock and OP units to shares of our common stock at any time. Below is the activity of conversions during 20182019 and 2017:2018:
| | | | | | | | | | | | | | | | Year Ended |
| | | | | Year Ended December 31, 2018 | | Year Ended December 31, 2017 | | | | December 31, 2019 | | December 31, 2018 |
| Series | | Conversion Rate | | Units/Shares | Common Stock | | Units/Shares | Common Stock | | Conversion Rate | | Units/Shares | Common Stock | | Units/Shares | Common Stock |
| Common OP unit | | 1 |
| | 20,608 |
| 20,608 |
| | 36,055 |
| 36,055 |
| | 1.0000 |
| | 485,629 |
| 485,629 |
| | 20,608 |
| 20,608 |
|
| Series A-1 preferred OP unit | | 2.439 |
| | 13,430 |
| 32,752 |
| | 21,919 |
| 53,456 |
| | 2.4390 |
| | 22,707 |
| 55,370 |
| | 13,430 |
| 32,752 |
|
| Series A-4 preferred OP unit | | 0.4444 |
| | 13,765 |
| 6,116 |
| | 10,000 |
| 4,440 |
| | 0.4444 |
| | 4,708 |
| 2,092 |
| | 13,765 |
| 6,116 |
|
| Series A-4 preferred stock | | 0.4444 |
| | 22,576 |
| 10,033 |
| | 158,036 |
| 70,238 |
| | 0.4444 |
| | 1,062,789 |
| 472,366 |
| | 22,576 |
| 10,033 |
|
| Series C preferred OP unit | | 1.11 |
| | 1,919 |
| 2,130 |
| | 16,806 |
| 18,651 |
| | 1.1100 |
| | 4,014 |
| 4,455 |
| | 1,919 |
| 2,130 |
|
Conversions to Common OP Units - Subject to certain limitations, holders can convert certain series OP units to other series of OP units. There was no such conversion in 2018. Below is the activity of conversions during 2019:
|
| | | | | |
| | | Year Ended |
| | | December 31, 2019 |
| Series | | Units/Shares | Common OP units |
| Series A-4 preferred OP units | | 405,656 |
| 180,277 |
|
Dividends
Dividend distributions declared for the quarter ended December 31, 20182019 are as follows:
|
| | | | | | | | | |
| Dividend | | Record Date | Payment Date | Distribution per Share | Total Distribution (in Thousands) |
| Common Stock, Common OP units and Restricted Stock | | 12/31/2019 | 1/15/2020 | $ | 0.75 |
| $ | 71,704 |
|
|
| | | | | | | | | |
| Dividend | | Record Date | Payment Date | Distribution per Share | Total Distribution (in Thousands) |
| Common Stock, Common OP units and Restricted Stock | | 12/31/2018 | 1/15/2019 | $ | 0.71 |
| $ | 63,249 |
|
| Series A-4 Preferred Stock | | 12/14/2018 | 12/31/2018 | $ | 0.40625 |
| $ | 432 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Redemptions
If certain change of control transactions occur or if our common stock ceases to be listed or quoted on an exchange or quotation system, then at any time after November 26, 2019, we or the holders of shares of Series A-4 preferred stock and Series A-4 preferred OP units may cause all or any of those shares or units to be redeemed for cash at a redemption price equal to the sum of (i) the greater of (x) the amount that the redeemed shares of Series A-4 preferred stock and Series A-4 preferred OP units would have received in such transaction if they had been converted into shares of our common stock immediately prior to such transaction, or (y) $25.00 per share, plus (ii) any accrued and unpaid distributions thereon to, but not including, the redemption date.
In November 2017, we redeemed all of the outstanding shares of our 7.125% Series A Cumulative Redeemable Preferred Stock. Holders received a cash payment of $25.14349 per share which included accrued and unpaid dividends. In the aggregate, we paid $85.5 million to redeem all of the 3,400,000 outstanding shares.
In June 2017, we redeemed 438,448 shares of Series A-4 Preferred Stock and 200,000 shares of Series A-4 preferred OP units from Green Courte Real Estate Partners III, LLC, GCP Fund III REIT LLC and GCP Fund III Ancillary Holding, LLC (collectively, the “Green Courte Entities”) for total consideration of $24.7 million. Accrued dividends totaling $0.2 million were also paid in connection with the redemptions. The Green Courte Entities were the sellers of the American Land Lease portfolio which we acquired in 2014 and 2015.
Repurchase Program
In November 2004, our Board of Directors authorized us to repurchase up to 1,000,000 shares of our common stock. We have 400,000 common shares remaining in the repurchase program. No common shares were repurchased during 2018 or 2017. There is no expiration date specified for the repurchase program.
11. Share-Based Compensation
As of December 31, 2018,2019, we had two share-based compensation plans; the Sun Communities, Inc. 2015 Equity Incentive Plan (“2015 Equity Incentive Plan”) and the First Amended and Restated 2004 Non-Employee Director Option Plan (“2004 Non-Employee Director Option Plan”). We believe granting equity awards will provide certain executives, key employees and directors additional incentives to promote our financial success and promote employee and director retention by providing an opportunity to acquire or increase the direct proprietary interest of those individuals in our operations and future.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Restricted Stock
The majority of our share-based compensation is awarded as service vesting restricted stock grants to executives and key employees. We have also awarded restricted stock to our non-employee directors. We measure the fair value associated with these awards using the closing price of our common stock as of the grant date to calculate compensation cost. Employee awards typically vest over several years and are subject to continued employment by the employee. Award recipients receive distribution payments on unvested shares of restricted stock.
2015 Equity Incentive Plan
At the Annual Meeting of Stockholders held on July 20, 2015, the stockholders approved the 2015 Equity Plan. The 2015 Equity Plan had been adopted by the Board and was effective upon approval by our stockholders. The maximum number of shares of common stock that may be issued under the 2015 Equity Plan is 1,750,000 shares of our common stock, with 1,136,194974,864 shares remaining for future issuance.
2004 Non-Employee Director Option Plan
The director plan was approved by our stockholders at the Annual Meeting of Stockholders held on July 19, 2012. The director plan amended and restated in its entirety our 2004 Non-Employee Director Stock Option Plan. At the Annual Meeting of the Stockholders held on May 17, 2018, the stockholders approved the First Amendment to Sun Communities, Inc. First Amended and Restated 2004 Non-Employee Director Option Plan to increase the number of authorized shares under the plan by 200,000 shares.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The types of awards that may be granted under the director plan are options, restricted stock and OP units. Only non-employee directors are eligible to participate in the director plan. The maximum number of options, restricted stock and OP units that may be issued under the Director Plan is 375,000 shares, with 209,774191,774 shares remaining for future issuance.
During the year ended December 31, 20182019 and 2017,2018, shares were granted as follows:
| | | Award | Type | Plan | Shares Granted | Grant Date Fair Value Per Share | | Vesting Type | Vesting Anniversary | Percentage | |
| Grant Period | | Type | Plan | Shares Granted | | Grant Date Fair Value Per Share | | Vesting Type | Vesting Anniversary | | Percentage |
| 2019 | | Executive Officers | 2015 Equity Incentive Plan | 44,000 |
| | $ | 115.39 |
| (1) | Time Based | 20.0% annually over 5 years |
| 2019 | | Executive Officers | 2015 Equity Incentive Plan | 66,000 |
| (2) | $ | 115.39 |
| (2) | Market Condition | 3rd | | 100.0 | % |
| 2019 | | Directors | 2004 Non-Employee Director Option Plan | 18,000 |
| | $ | 113.68 |
| (1) | Time Based | 3rd | | 100.0 | % |
| 2019 | | Key Employees | 2015 Equity Incentive Plan | 55,770 |
| | $ | 120.01 |
| (1) | Time Based | 20.0% annually over 5 years |
| 2019 | | Key Employees | 2015 Equity Incentive Plan | 6,250 |
| | $ | 142.48 |
| (1) | Time Based | 20.0% annually over 5 years |
| 2018 | Key Employees | 2015 Equity Incentive Plan | 16,500 |
| $ | 88.30 |
| (1) | Time Based | 2nd | 35.0 | % | Key Employees | 2015 Equity Incentive Plan | 16,500 |
| | $ | 88.30 |
| (1) | Time Based | 2nd | | 35.0 | % |
| | | | | | 3rd | 35.0 | % | | | | | | 3rd | | 35.0 | % |
| | | | | | 4th | 20.0 | % | | | | | | 4th | | 20.0 | % |
| | | | | | 5th | 5.0 | % | | | | | | 5th | | 5.0 | % |
| | | | | | 6th | 5.0 | % | | | | | | 6th | | 5.0 | % |
| 2018 | Key Employees | 2015 Equity Incentive Plan | 50,100 |
| $ | 86.97 |
| (1) | Time Based | 20% annually over 5 years | Key Employees | 2015 Equity Incentive Plan | 50,100 |
| | $ | 86.97 |
| (1) | Time Based | 20.0% annually over 5 years |
| 2018 | Executive Officers | 2015 Equity Incentive Plan | 60,000 |
| $ | 87.24 |
| (1) | Time Based | 20% annually over 5 years | Executive Officers | 2015 Equity Incentive Plan | 60,000 |
| | $ | 87.24 |
| (1) | Time Based | 20.0% annually over 5 years |
| 2018 | Executive Officers | 2015 Equity Incentive Plan | 90,000 |
| $ | 65.24 |
| (2) | Market Condition | 3rd | 100.0 | % | Executive Officers | 2015 Equity Incentive Plan | 90,000 |
| | $ | 65.24 |
| (3) | Market Condition | 3rd | | 100.0 | % |
| 2018 | Directors | 2004 Non-Employee Director Option Plan | 16,800 |
| $ | 85.28 |
| (1) | Time Based | 3rd | 100.0 | % | Directors | 2004 Non-Employee Director Option Plan | 16,800 |
| | $ | 85.28 |
| (1) | Time Based | 3rd | | 100.0 | % |
| 2017 | Key Employees | 2015 Equity Incentive Plan | 2,500 |
| $ | 84.18 |
| (1) | Time Based | 2nd | 35.0 | % | |
| | | | | | 3rd | 35.0 | % | |
| | | | | | 4th | 20.0 | % | |
| | | | | | 5th | 5.0 | % | |
| | | | | | 6th | 5.0 | % | |
| 2017 | Executive Officers | 2015 Equity Incentive Plan | 100,000 |
| $ | 79.30 |
| (1) | Time Based | 3rd | 20.0 | % | |
| | | | | | 4th | 30.0 | % | |
| | | | | | 5th | 35.0 | % | |
| | | | | | 6th | 10.0 | % | |
| | | | | | 7th | 5.0 | % | |
| 2017 | Executive Officers | 2015 Equity Incentive Plan | 100,000 |
| $ | 72.39 |
| (3) | Market & Performance Conditions | Multiple tranches through March 2022 | |
| 2017 | Directors | 2004 Non-Employee Director Option Plan | 16,900 |
| $ | 79.64 |
| (1) | Time Based | 3rd | 100.0 | % | |
(1) Grant date fair value is measured based on the closing price of our common stock on the date(s) shares are issued.
(2) Share-based compensation for restricted stock awards with market and performance conditions is measured based on an estimate of shares expected to vest. We estimate the fair value of share-based compensation for restricted stock with market conditions using a Monte Carlo simulation. At the grant date, our common stock price was $115.39. Based on the Monte Carlo simulation we expect 75.1% of the 66,000 shares to vest.
(3) Share-based compensation for restricted stock awards with market conditions is measured based on an estimate of shares expected to vest. We estimate the fair value of share-based compensation for restricted stock with market conditions using a Monte Carlo simulation. At the grant date, our common stock price was $87.24. Based on the Monte Carlo simulation we expect 74.8% of the 90,000 shares to vest.
(3) Share-based compensation for restricted stock awards with market and performance conditions is measured based on an estimate of shares expected to vest. We estimate the fair value of share-based compensation for restricted stock with market conditions using a Monte Carlo simulation. At the grant date, our common stock price was $79.30. Based on the Monte Carlo simulation we expect 91.3% of the 100,000 shares to vest.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes our restricted stock activity for the years ended December 31, 2019, 2018, 2017, and 2016:2017:
| | | | Number of Shares | | Weighted Average Grant Date Fair Value | Number of Shares | | Weighted Average Grant Date Fair Value |
| Unvested restricted shares at January 1, 2016 | 813,260 |
| | $ | 50.59 |
| |
| Granted | 227,800 |
| | $ | 69.43 |
| |
| Vested | (165,631 | ) | | $ | 45.90 |
| |
| Forfeited | (33,795 | ) | | $ | 56.49 |
| |
| Unvested restricted shares at December 31, 2016 | 841,634 |
| | $ | 56.38 |
| |
| Unvested restricted shares at January 1, 2017 | | 841,634 |
| | $ | 56.38 |
|
| Granted | 219,400 |
| | $ | 79.38 |
| 219,400 |
| | $ | 79.38 |
|
| Vested | (196,412 | ) | | $ | 47.60 |
| (196,412 | ) | | $ | 47.60 |
|
| Forfeited | (4,769 | ) | | $ | 56.43 |
| (4,769 | ) | | $ | 56.43 |
|
| Unvested restricted shares at December 31, 2017 | 859,853 |
| | $ | 64.25 |
| 859,853 |
| | $ | 64.25 |
|
| Granted | 233,400 |
| | $ | 87.12 |
| 233,400 |
| | $ | 87.12 |
|
| Vested | (214,111 | ) | | $ | 54.69 |
| (214,111 | ) | | $ | 54.69 |
|
| Forfeited | (8,025 | ) | | $ | 72.16 |
| (8,025 | ) | | $ | 72.16 |
|
| Unvested restricted shares at December 31, 2018 | 871,117 |
| | $ | 72.65 |
| 871,117 |
| | $ | 72.65 |
|
| Granted | | 190,020 |
| | $ | 117.47 |
|
| Vested | | (237,406 | ) | | $ | 64.46 |
|
| Forfeited | | (10,690 | ) | | $ | 79.58 |
|
| Unvested restricted shares at December 31, 2019 | | 813,041 |
| | $ | 85.43 |
|
Total compensation cost recognized for restricted stock was $17.5 million, $15.1 million, $12.7 million, and $9.6$12.7 million for the years ended December 31, 2019, 2018, 2017, and 2016,2017, respectively. The total fair value of shares vested was $15.3 million, $11.7 million, $9.3 million, and $7.6$9.3 million for the years ended December 31, 2019, 2018 2017 and 2016,2017, respectively.
The remaining share-based compensation cost, net related to our unvested restricted shares outstanding as of December 31, 20182019 is approximately $37.5$39.0 million. The following table summarizes our expected share-based compensation cost, net related to our unvested restricted shares, in millions:
|
| | | | | | | | | | | | | | | |
| | 2019 | | 2020 | | 2021 | | Thereafter |
| Expected share-based compensation costs, net | $ | 13.0 |
| | $ | 12.0 |
| | $ | 6.9 |
| | $ | 5.6 |
|
|
| | | | | | | | | | | | | | | |
| | 2020 | | 2021 | | 2022 | | Thereafter |
| Expected share-based compensation costs, net | $ | 16.6 |
| | $ | 11.3 |
| | $ | 7.1 |
| | $ | 4.0 |
|
Options
During 2018, there2019, 1,500 non-employee director options exercised for net proceeds of less than $0.2 million. There were no non-employee director options exercised.exercised during 2018. At December 31, 2018, 3,0002019, 1,500 fully vested non-employee director options remained outstanding with an intrinsic value of $0.2less than $0.1 million. These options had a weighted average exercise price of $33.45$37.35 and a weighted average contractual term of 2.1approximately 1.6 years. No options have been granted, and there has been no compensation expense associated with non-vested stock option awards for the years ended December 31, 2019, 2018, 2017, or 2016.2017.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12. Segment Reporting
We group our operating segments into reportable segments that provide similar products and services. Each operating segment has discrete financial information evaluated regularly by our chief operating decision maker in evaluating and assessing performance. We have two reportable segments: (i) Real Property Operations and (ii) Home Sales and Rentals. The Real Property Operations segment owns, operates, has an interest in a portfolio, and develops MH communities and RV communities and is in the business of acquiring, operating, and expanding MH and RV communities. The Home Sales and Rentals segment offers manufactured home sales and leasing services to tenants and prospective tenants of our communities.
Transactions between our segments are eliminated in consolidation. Transient RV revenue is included in the Real Property Operations segment revenues and is approximately $106.2$132.3 million for the year ended December 31, 2018.2019. In 2018,2019, transient RV revenue was recognized 20.719.8 percent in the first quarter, 20.323.1 percent in the second quarter, 42.641.0 percent in the third quarter, and 16.416.1 percent in the fourth quarter.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A presentation of our segment financial information is summarized as follows (amounts in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated |
| Revenues | $ | 992,545 |
| | $ | 239,508 |
| | $ | 1,232,053 |
| | $ | 880,080 |
| | $ | 219,688 |
| | $ | 1,099,768 |
| | $ | 779,739 |
| | $ | 177,957 |
| | $ | 957,696 |
|
| Operating expenses / Cost of sales | 375,690 |
| | 156,352 |
| | 532,042 |
| | 330,695 |
| | 146,637 |
| | 477,332 |
| | 290,016 |
| | 117,274 |
| | 407,290 |
|
| Net operating income / Gross profit | 616,855 |
| | 83,156 |
| | 700,011 |
| | 549,385 |
| | 73,051 |
| | 622,436 |
| | 489,723 |
| | 60,683 |
| | 550,406 |
|
| Adjustments to arrive at net income / (loss) | | | | | | | | | | | | | | | | | |
| Interest and other revenues, net | 31,984 |
| | — |
| | 31,984 |
| | 27,057 |
| | — |
| | 27,057 |
| | 24,875 |
| | (1 | ) | | 24,874 |
|
| Home selling expenses | — |
| | (14,690 | ) | | (14,690 | ) | | — |
| | (15,722 | ) | | (15,722 | ) | | — |
| | (12,457 | ) | | (12,457 | ) |
| General and administrative expenses | (82,320 | ) | | (11,644 | ) | | (93,964 | ) | | (70,512 | ) | | (10,917 | ) | | (81,429 | ) | | (74,548 | ) | | (9,425 | ) | | (83,973 | ) |
| Catastrophic weather related charges, net | (1,729 | ) | | (8 | ) | | (1,737 | ) | | 140 |
| | (232 | ) | | (92 | ) | | (7,856 | ) | | (496 | ) | | (8,352 | ) |
| Depreciation and amortization | (250,686 | ) | | (77,381 | ) | | (328,067 | ) | | (218,617 | ) | | (68,645 | ) | | (287,262 | ) | | (199,960 | ) | | (61,576 | ) | | (261,536 | ) |
| Loss on extinguishment of debt | (16,505 | ) | | — |
| | (16,505 | ) | | (1,190 | ) | | — |
| | (1,190 | ) | | (4,676 | ) | | — |
| | (4,676 | ) |
| Interest on mandatorily redeemable preferred OP units / equity | (4,698 | ) | | — |
| | (4,698 | ) | | (3,694 | ) | | — |
| | (3,694 | ) | | (3,114 | ) | | — |
| | (3,114 | ) |
| Interest expense | (133,125 | ) | | (28 | ) | | (133,153 | ) | | (130,535 | ) | | (21 | ) | | (130,556 | ) | | (128,456 | ) | | (15 | ) | | (128,471 | ) |
| Gain / (loss) on remeasurement of marketable securities | 34,240 |
| | — |
| | 34,240 |
| | (3,639 | ) | | — |
| | (3,639 | ) | | — |
| | — |
| | — |
|
| Other income / (expense), net | 3,604 |
| | (147 | ) | | 3,457 |
| | (6,414 | ) | | (39 | ) | | (6,453 | ) | | 8,983 |
| | (1 | ) | | 8,982 |
|
| Income from nonconsolidated affiliates | — |
| | 1,374 |
| | 1,374 |
| | — |
| | 790 |
| | 790 |
| | — |
| | — |
| | — |
|
| Current tax expense | (746 | ) | | (349 | ) | | (1,095 | ) | | (372 | ) | | (223 | ) | | (595 | ) | | (62 | ) | | (384 | ) | | (446 | ) |
| Deferred tax benefit | 222 |
| | — |
| | 222 |
| | 507 |
| | — |
| | 507 |
| | 582 |
| | — |
| | 582 |
|
| Net income / (loss) | 197,096 |
| | (19,717 | ) | | 177,379 |
| | 142,116 |
| | (21,958 | ) | | 120,158 |
| | 105,491 |
| | (23,672 | ) | | 81,819 |
|
| Less: Preferred return to preferred OP units / equity | (6,058 | ) | | — |
| | (6,058 | ) | | (4,486 | ) | | — |
| | (4,486 | ) | | (4,581 | ) | | — |
| | (4,581 | ) |
| Less: Amounts attributable to noncontrolling interests | (10,659 | ) | | 891 |
| | (9,768 | ) | | (9,512 | ) | | 1,069 |
| | (8,443 | ) | | (6,319 | ) | | 1,264 |
| | (5,055 | ) |
| Net income / (loss) attributable to Sun Communities, Inc. | 180,379 |
| | (18,826 | ) | | 161,553 |
| | 128,118 |
| | (20,889 | ) | | 107,229 |
| | 94,591 |
| | (22,408 | ) | | 72,183 |
|
| Less: Preferred stock distribution | (1,288 | ) | | — |
| | (1,288 | ) | | (1,736 | ) | | — |
| | (1,736 | ) | | (7,162 | ) | | — |
| | (7,162 | ) |
| Net income / (loss) attributable to Sun Communities, Inc. common stockholders | $ | 179,091 |
| | $ | (18,826 | ) | | $ | 160,265 |
| | $ | 126,382 |
| | $ | (20,889 | ) | | $ | 105,493 |
| | $ | 87,429 |
| | $ | (22,408 | ) | | $ | 65,021 |
|
|
| | | | | | | | | | | |
| | Year Ended December 31, 2018 |
| | Real Property Operations | | Home Sales and Home Rentals | | Consolidated |
| Revenues | $ | 880,080 |
| | $ | 219,688 |
| | $ | 1,099,768 |
|
| Operating expenses / Cost of sales | 330,275 |
| | 146,432 |
| | 476,707 |
|
| NOI / Gross profit | 549,805 |
| | 73,256 |
| | 623,061 |
|
| Adjustments to arrive at net income / (loss): | | | | | |
| Interest and other revenues, net | 27,057 |
| | — |
| | 27,057 |
|
| Home selling expense | — |
| | (15,722 | ) | | (15,722 | ) |
| General and administrative | (70,042 | ) | | (11,396 | ) | | (81,438 | ) |
| Transaction costs | (470 | ) | | (2 | ) | | (472 | ) |
| Catastrophic weather related charges, net | 140 |
| | (232 | ) | | (92 | ) |
| Depreciation and amortization | (218,617 | ) | | (68,645 | ) | | (287,262 | ) |
| Loss on extinguishment of debt | (2,657 | ) | | — |
| | (2,657 | ) |
| Interest | (129,068 | ) | | (21 | ) | | (129,089 | ) |
| Interest on mandatorily redeemable preferred OP units | (3,694 | ) | | — |
| | (3,694 | ) |
| Remeasurement of marketable securities | (3,639 | ) | | — |
| | (3,639 | ) |
| Other expense, net | (6,414 | ) | | (39 | ) | | (6,453 | ) |
| Income from nonconsolidated affiliates | — |
| | 646 |
| | 646 |
|
| Current tax expense | (372 | ) | | (223 | ) | | (595 | ) |
| Deferred tax benefit | 507 |
| | — |
| | 507 |
|
| Net income / (loss) | 142,536 |
| | (22,378 | ) | | 120,158 |
|
| Less: Preferred return to preferred OP units | 4,486 |
| | — |
| | 4,486 |
|
| Less: Amounts attributable to noncontrolling interests | 9,532 |
| | (1,089 | ) | | 8,443 |
|
| Net income / (loss) attributable to Sun Communities, Inc. | 128,518 |
| | (21,289 | ) | | 107,229 |
|
| Less: Preferred stock distributions | 1,736 |
| | — |
| | 1,736 |
|
| Net income / (loss) attributable to Sun Communities, Inc. common stockholders | $ | 126,782 |
| | $ | (21,289 | ) | | $ | 105,493 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
| | | | | | | | | | | |
| | Year Ended December 31, 2017 |
| | Real Property Operations | | Home Sales and Home Rentals | | Consolidated |
| Revenues | $ | 779,739 |
| | $ | 177,957 |
| | $ | 957,696 |
|
| Operating expenses / Cost of sales | 290,002 |
| | 117,228 |
| | 407,230 |
|
| NOI / Gross profit | 489,737 |
| | 60,729 |
| | 550,466 |
|
| Adjustments to arrive at net income / (loss): | | | | | |
| Interest and other revenues, net | 24,875 |
| | (1 | ) | | 24,874 |
|
| Home selling expenses | — |
| | (12,457 | ) | | (12,457 | ) |
| General and administrative | (64,735 | ) | | (9,497 | ) | | (74,232 | ) |
| Transaction costs | (9,812 | ) | | 11 |
| | (9,801 | ) |
| Catastrophic weather related charges, net | (7,856 | ) | | (496 | ) | | (8,352 | ) |
| Depreciation and amortization | (199,960 | ) | | (61,576 | ) | | (261,536 | ) |
| Loss on extinguishment of debt | (6,019 | ) | | — |
| | (6,019 | ) |
| Interest | (127,113 | ) | | (15 | ) | | (127,128 | ) |
| Interest on mandatorily redeemable preferred OP units | (3,114 | ) | | — |
| | (3,114 | ) |
| Other income / (expense), net | 8,983 |
| | (1 | ) | | 8,982 |
|
| Current tax expense | (62 | ) | | (384 | ) | | (446 | ) |
| Deferred tax benefit | 582 |
| | — |
| | 582 |
|
| Net income / (loss) | 105,506 |
| | (23,687 | ) | | 81,819 |
|
| Less: Preferred return to preferred OP units | 4,581 |
| | — |
| | 4,581 |
|
| Less: Amounts attributable to noncontrolling interests | 6,319 |
| | (1,264 | ) | | 5,055 |
|
| Net income / (loss) attributable to Sun Communities, Inc. | 94,606 |
| | (22,423 | ) | | 72,183 |
|
| Less: Preferred stock distribution | 7,162 |
| | — |
| | 7,162 |
|
| Net income / (loss) attributable to Sun Communities, Inc. common stockholders | $ | 87,444 |
| | $ | (22,423 | ) | | $ | 65,021 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
| | | | | | | | | | | |
| | Year Ended December 31, 2016 |
| | Real Property Operations | | Home Sales and Home Rentals | | Consolidated |
| Revenues | $ | 654,341 |
| | $ | 158,287 |
| | $ | 812,628 |
|
| Operating expenses / Cost of sales | 241,363 |
| | 104,781 |
| | 346,144 |
|
| Net operating income / Gross profit | 412,978 |
| | 53,506 |
| | 466,484 |
|
| Adjustments to arrive at net income / (loss): | | | | | |
| Interest and other revenues, net | 21,150 |
| | — |
| | 21,150 |
|
| Home selling expenses | — |
| | (9,744 | ) | | (9,744 | ) |
| General and administrative | (55,481 | ) | | (8,181 | ) | | (63,662 | ) |
| Transaction costs | (31,863 | ) | | (51 | ) | | (31,914 | ) |
| Catastrophic weather related charges, net | (1,147 | ) | | (25 | ) | | (1,172 | ) |
| Depreciation and amortization | (166,296 | ) | | (55,474 | ) | | (221,770 | ) |
| Loss on extinguishment of debt | (1,127 | ) | | — |
| | (1,127 | ) |
| Interest | (119,150 | ) | | (13 | ) | | (119,163 | ) |
| Interest on mandatorily redeemable preferred OP units | (3,152 | ) | | — |
| | (3,152 | ) |
| Other expenses, net | (4,675 | ) | | (1 | ) | | (4,676 | ) |
| Income from nonconsolidated affiliates | 500 |
| | — |
| | 500 |
|
| Current tax expense | (471 | ) | | (212 | ) | | (683 | ) |
| Deferred tax benefit | 400 |
| | — |
| | 400 |
|
| Net income / (loss) | 51,666 |
| | (20,195 | ) | | 31,471 |
|
| Less: Preferred return to preferred OP units | 5,006 |
| | — |
| | 5,006 |
|
| Less: Amounts attributable to noncontrolling interests | 1,455 |
| | (1,305 | ) | | 150 |
|
| Net income / (loss) attributable to Sun Communities, Inc. | 45,205 |
| | (18,890 | ) | | 26,315 |
|
| Less: Preferred stock distribution | 8,946 |
| | — |
| | 8,946 |
|
| Net income / (loss) attributable to Sun Communities, Inc. common stockholders | $ | 36,259 |
| | $ | (18,890 | ) | | $ | 17,369 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2018 | | December 31, 2017 |
| | Real Property Operations | | Home Sales and Home Rentals | | Consolidated | | Real Property Operations | | Home Sales and Home Rentals | | Consolidated |
| Identifiable assets: | | | | | | | | | | | |
| Investment property, net | $ | 5,586,444 |
| | $ | 531,872 |
| | $ | 6,118,316 |
| | $ | 5,172,521 |
| | $ | 472,833 |
| | $ | 5,645,354 |
|
| Cash and cash equivalents | 24,343 |
| | 25,968 |
| | 50,311 |
| | (7,649 | ) | | 17,776 |
| | 10,127 |
|
| Inventory of manufactured homes | — |
| | 49,199 |
| | 49,199 |
| | — |
| | 30,430 |
| | 30,430 |
|
| Notes and other receivables, net | 145,673 |
| | 14,404 |
| | 160,077 |
| | 149,798 |
| | 13,698 |
| | 163,496 |
|
| Collateralized receivables, net | 106,924 |
| | — |
| | 106,924 |
| | 128,246 |
| | — |
| | 128,246 |
|
| Other assets, net | 189,064 |
| | 36,135 |
| | 225,199 |
| | 130,455 |
| | 3,849 |
| | 134,304 |
|
| Total assets | $ | 6,052,448 |
| | $ | 657,578 |
| | $ | 6,710,026 |
| | $ | 5,573,371 |
| | $ | 538,586 |
| | $ | 6,111,957 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2019 | | December 31, 2018 |
| | Real Property Operations | | Home Sales and Rentals | | Consolidated | | Real Property Operations | | Home Sales and Rentals | | Consolidated |
| Identifiable assets | | | | | | | | | | | |
| Investment property, net | $ | 6,651,275 |
| | $ | 581,345 |
| | $ | 7,232,620 |
| | $ | 5,586,444 |
| | $ | 531,872 |
| | $ | 6,118,316 |
|
| Cash, cash equivalents and restricted cash | (8,346 | ) | | 43,176 |
| | 34,830 |
| | 36,294 |
| | 25,968 |
| | 62,262 |
|
| Marketable securities | 94,727 |
| | — |
| | 94,727 |
| | 49,037 |
| | — |
| | 49,037 |
|
| Inventory of manufactured homes | — |
| | 62,061 |
| | 62,061 |
| | — |
| | 49,199 |
| | 49,199 |
|
| Notes and other receivables, net | 142,509 |
| | 15,417 |
| | 157,926 |
| | 145,673 |
| | 14,404 |
| | 160,077 |
|
| Collateralized receivables, net | — |
| | — |
| | — |
| | 106,924 |
| | — |
| | 106,924 |
|
| Other assets, net | 167,804 |
| | 52,092 |
| | 219,896 |
| | 128,076 |
| | 36,135 |
| | 164,211 |
|
| Total assets | $ | 7,047,969 |
| | $ | 754,091 |
| | $ | 7,802,060 |
| | $ | 6,052,448 |
| | $ | 657,578 |
| | $ | 6,710,026 |
|
13. Income Taxes
We have elected to be taxed as a REIT pursuant to Section 856(c) of the Internal Revenue Code of 1986, as amended (“Code”). In order for us to qualify as a REIT, at least 95.0 percent of our gross income in any year must be derived from qualifying sources. In addition, a REIT must distribute annually at least 90.0 percent of its REIT taxable income (calculated without any deduction for dividends paid and excluding capital gain) to its stockholders and meet other tests.
Qualification as a REIT involves the satisfaction of numerous requirements (on an annual and quarterly basis) established under highly technical and complex Code provisions for which there are limited judicial or administrative interpretations and involves the determination of various factual matters and circumstances not entirely within our control. In addition, frequent changes occur in the area of REIT taxation, which requires us to continually monitor our tax status. We analyzed the various REIT tests and confirmed that we continued to qualify as a REIT for the year ended December 31, 2018.2019.
As a REIT, we generally will not be subject to U.S. federal income taxes at the corporate level on the ordinary taxable income we distribute to our stockholders as dividends. If we fail to qualify as a REIT in any taxable year, our taxable income could be subject to U.S. federal income tax at regular corporate rates (including any applicable alternative minimum tax (“AMT”) in 2017 as AMT is no longer applicable for years beginning after 2017). Even if we qualify as a REIT, we may be subject to certain state and local income taxes as well as U.S. federal income and excise taxes on our undistributed income. In addition, taxable income from non-REIT activities managed through taxable REIT subsidiaries (“TRSs”) is subject to federal, state and local income taxes. The Company is also subject to income taxes in Canada as a result of the acquisition of Carefree in 2016 and in Australia as a result of our investment in Ingenia Communities Group in 2018. We do not provide for withholding taxes on our undistributed earnings from our Canadian subsidiaries as they are reinvested and will continue to be reinvested indefinitely outside the United States. However, we did incur $0.2 million of withholding taxes on distributions from our investment in Ingenia Communities Group.
For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, and return of capital. For the years ended December 31, 2019, 2018, 2017, and 2016,2017, distributions paid per share were taxable as follows (unaudited / rounded):
| | | | Years Ended December 31, | Year Ended |
| | 2018 | | 2017 | | 2016 | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| | Amount | | Percentage | | Amount | | Percentage | | Amount | | Percentage | Amount | | Percentage | | Amount | | Percentage | | Amount | | Percentage |
Ordinary income (1) | $ | 1.58 |
| | 56.4 | % | | $ | 0.83 |
| | 31.2 | % | | $ | 0.81 |
| | 31.2 | % | $ | 1.66 |
| | 56.0 | % | | $ | 1.58 |
| | 56.4 | % | | $ | 0.83 |
| | 31.2 | % |
| Capital gain | 0.13 |
| | 4.8 | % | | — |
| | — | % | | 0.51 |
| | 19.6 | % | — |
| | — | % | | 0.13 |
| | 4.8 | % | | — |
| | — | % |
| Return of capital | 1.09 |
| | 38.8 | % | | 1.83 |
| | 68.8 | % | | 1.28 |
| | 49.2 | % | 1.30 |
| | 44.0 | % | | 1.09 |
| | 38.8 | % | | 1.83 |
| | 68.8 | % |
| Total distributions declared | $ | 2.80 |
| | 100.0 | % | | $ | 2.66 |
| | 100.0 | % | | $ | 2.60 |
| | 100.0 | % | $ | 2.96 |
| | 100.0 | % | | $ | 2.80 |
| | 100.0 | % | | $ | 2.66 |
| | 100.0 | % |
(1) 100%98.8276%% of the ordinary taxable dividend qualifies as Section 199A dividend for 2018.2019 and 1.1724% of the ordinary taxable dividend qualifies as a Qualified Dividend for 2019.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. Under the Tax Act, the corporate income tax rate is reduced from a maximum marginal rate of 35.0 percent to a flat 21.0 percent. In accordance with ASC 740, “Accounting for Income Taxes,” entities are required to recognizewe recognized the effect of tax law changes in the period of enactment even though the effective date of most provisions of the Tax Act was January 1, 2018. Although the Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” allows entities to record provisional amounts during a measurement period, it is our view that we have obtained the necessary information available to prepare and analyze (including computations) in reasonable detail the accounting for the change in tax law as noted below.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The components of our provision / (benefit) for income taxes attributable to continuing operations for the year ended December 31, 20182019 and 20172018 are as follows (amounts in thousands):
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| | | | | | | | Year Ended |
| | | Year Ended
December 31, 2018 | | Year Ended
December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Federal | | | | | | | | |
| Current | | $ | (102 | ) | | $ | (181 | ) | | $ | (3 | ) | | $ | (102 | ) |
| State and Local | | | | | | | | |
| Current | | 701 |
| | 675 |
| | 919 |
| | 701 |
|
| Deferred | | 11 |
| | (11 | ) | | — |
| | 11 |
|
| Foreign | | | | | | | | |
| Current | | (4 | ) | | (48 | ) | | 179 |
| | (4 | ) |
| Deferred | | (518 | ) | | (571 | ) | | (222 | ) | | (518 | ) |
| | |
|
|
| | | | |
| Total Provision / (Benefit) | | $ | 88 |
| | $ | (136 | ) | |
| Total (benefit) / provision | | | $ | 873 |
| | $ | 88 |
|
A reconciliation of the provision / (benefit) for income taxes with the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for the year ended December 31, 20182019 and 20172018 is as follows (amounts in thousands):
| | | | | | | | | | | | | Year Ended |
| | | Year Ended
December 31, 2018 | | Year Ended
December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Pre-tax loss attributable to taxable subsidiaries | | $ | (7,299 | ) | | | | $ | (17,404 | ) | | | | $ | (4,122 | ) | | | | $ | (7,299 | ) | | |
| | | | | | | | | | | | | | | | | |
| Federal provision / (benefit) at statutory tax rate | | (1,534 | ) | | 21.0 | % | | (5,918 | ) | | 34.0 | % | |
| Federal (benefit) / provision at statutory tax rate | | | (866 | ) | | 21.0 | % | | (1,534 | ) | | 21.0 | % |
| State and local taxes, net of federal benefit | | — |
| | — | % | | (3 | ) | | — | % | | 42 |
| | (1.0 | )% | | — |
| | — | % |
| Alternative minimum tax | | — |
| | — | % | | — |
| | — | % | | — |
| | — | % | | — |
| | — | % |
| Rate differential | | (112 | ) | | 1.5 | % | | 318 |
| | (1.8 | )% | | (73 | ) | | 1.8 | % | | (112 | ) | | 1.5 | % |
| Change in valuation allowance | | 2,885 |
| | (39.5 | )% | | (21,322 | ) | | 122.5 | % | | 526 |
| | (12.7 | )% | | 2,885 |
| | (39.5 | )% |
| Change in deferred tax asset | | — |
| | — | % | | 25,885 |
| | (148.7 | )% | | — |
| | — | % | | — |
| | — | % |
| Others | | (1,576 | ) | | 21.6 | % | | 360 |
| | (2.1 | )% | | 692 |
| | (16.8 | )% | | (1,576 | ) | | 21.6 | % |
| Tax (benefit) / provision - taxable subsidiaries | | (337 | ) | | 4.6 | % | | (680 | ) | | 3.9 | % | | 321 |
| | (7.7 | )% | | (337 | ) | | 4.6 | % |
| Other state taxes - flow through subsidiaries | | 425 |
| | | | 544 |
| | | | 552 |
| | | | 425 |
| | |
| Total provision / (benefit) | | $ | 88 |
| | | | $ | (136 | ) | | | |
| Total (benefit) / provision | | | $ | 873 |
| | | | $ | 88 |
| | |
Our deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Deferred tax assets are reduced, if necessary, by a valuation allowance to the amount where realization is more likely than not assured after considering all available evidence. Our temporary differences primarily relate to net operating loss carryforwards, and depreciation and basis differences between tax and U.S. GAAP.
At December 31, 2017, we re-measured the deferred tax assets and liabilities of our U.S. TRSs to reflect the effect of the enacted change in the tax rate under the Tax Act. We have also considered the new tax rate in assessing the need for and change to our existing valuation allowance and adjusted accordingly. Since we have recorded a full valuation allowance against substantially all of our deferred tax assets related to the U.S. TRSs, no material impact on the net deferred tax asset and the provision for income taxes was noted.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The deferred tax assets and liabilities included in the consolidated balance sheets are comprised of the following tax effects of temporary differences and based on the Tax Act (amounts in thousands):
| | | | As of December 31, | As of |
| | 2018 | | 2017 | December 31, 2019 | | December 31, 2018 |
| Deferred Tax Assets | | | | | | |
| NOL carryforwards | $ | 18,071 |
| | $ | 19,739 |
| $ | 18,009 |
| | $ | 18,071 |
|
| Depreciation and basis differences | 28,140 |
| | 23,523 |
| 28,787 |
| | 28,140 |
|
| Other | 784 |
| | 1,272 |
| 395 |
| | 784 |
|
| Gross deferred tax assets | 46,995 |
| | 44,534 |
| 47,191 |
| | 46,995 |
|
| Valuation allowance | (44,817 | ) | | (41,932 | ) | (45,342 | ) | | (44,817 | ) |
| Net deferred tax assets | 2,178 |
| | 2,602 |
| 1,849 |
| | 2,178 |
|
| | | | | | | |
| Deferred Tax Liabilities | | | | | | |
| Basis differences - foreign investment | (22,406 | ) | | (25,114 | ) | (22,813 | ) | | (22,406 | ) |
| Gross deferred tax liabilities | (22,406 | ) | | (25,114 | ) | (22,813 | ) | | (22,406 | ) |
| | | | | | | |
Net Deferred Tax Liability (1) | $ | (20,228 | ) | | $ | (22,512 | ) | $ | (20,964 | ) | | $ | (20,228 | ) |
(1) Net deferred tax liability is included within Other liabilities in our Consolidated Balance Sheets.
SHS hadOur U.S. TRS operating loss carryforwards of $73.6are $75.3 million, or $15.6 million after tax, including SHS loss carryforwards of $73.0 million, or $15.3 million after tax, as of December 31, 2018.2019. The loss carryforwards will begin to expire in 2023 through 2035 if not offset by future taxable income. In addition, our Canadian subsidiaries have operating loss carryforwards of $9.3$9.1 million, or $2.5$2.4 million after tax, as of December 31, 2018.2019. The loss carryforwards will begin to expire in 2033 through 2038 if not offset by future taxable income.
We had no0 unrecognized tax benefits as of December 31, 20182019 and 2017.2018. We expect no0 significant increases or decreases in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2018.2019.
We classify certain state taxes as income taxes for financial reporting purposes. We recorded a provision for state income taxes of $0.9 million for the year ended December 31, 2019, $0.7 million for the year ended December 31, 2018, and $0.7 million for the year ended December 31, 2017, and $0.4 million for the year ended December 31, 2016.2017.
As previously noted, certain of our subsidiaries are subject to income taxes in the U.S. and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require application of significant judgment. With few exceptions, we are no longer subject to U.S. federal, state and local, examinations by tax authorities for the tax years ended December 31, 2011 and prior. In addition, our Canadian subsidiaries are subject to taxes in Canada and in the province of Ontario. We are no longer subject to examination by the Canadian tax authorities for the tax years ended December 31, 2012 and prior.
Our policy is to report income tax penalties and income tax related interest expense as a component of income tax expense. No interest or penalty associated with any unrecognized income tax benefit or provision was accrued, nor was any income tax related interest or penalty recognized during the years ended December 31, 2019, 2018 2017 and 2016.2017.
In 2017, SHS underwent an audit by the Internal Revenue Service for the 2015 tax year. Upon conclusion of the audit, no adjustment was required.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. Earnings Per Share
We have outstanding stock options and unvested restricted common shares, and Series A-4 preferred stock, and ourshares. Our Operating Partnership has outstanding common OP units, Series A-1 preferred OP units, Series A-3 preferred OP units, Series A-4C preferred OP units, Series CD preferred OP units and Aspen preferred OP Units, which, if converted or exercised, may impact dilution.
Computations of basic and diluted earnings per share were as follows (in thousands, except per share data):
|
| | | | | | | | | | | | |
| | | Year Ended |
| | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Numerator | | | | | | |
| Net Income attributable to Sun Communities, Inc. common stockholders | | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
|
| Less allocation to restricted stock awards | | (1,170 | ) | | (831 | ) | | (455 | ) |
| Basic earnings - Net income attributable to common stockholders after allocation to restricted stock awards | | $ | 159,095 |
| | $ | 104,662 |
| | $ | 64,566 |
|
| Add allocation to restricted stock awards | | 1,170 |
| | 831 |
| | 455 |
|
| Diluted earnings - Net income attributable to common stockholders after allocation to restricted stock awards | | $ | 160,265 |
| | $ | 105,493 |
| | $ | 65,021 |
|
|
| | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2018 | | 2017 | | 2016 |
| Numerator | | | | | | |
| Net income attributable to common stockholders | | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
|
| Allocation to restricted stock awards | | (831 | ) | | (455 | ) | | 115 |
|
| Basic earnings: net income attributable to common stockholders after allocation | | $ | 104,662 |
| | $ | 64,566 |
| | $ | 17,484 |
|
| Allocation of income to restricted stock awards | | 831 |
| | 455 |
| | (115 | ) |
| Diluted earnings: net income attributable to common stockholders after allocation | | $ | 105,493 |
| | $ | 65,021 |
| | $ | 17,369 |
|
| Denominator | | | | | | |
| Weighted average common shares outstanding | | 81,387 |
| | 76,084 |
| | 65,856 |
|
| Add: dilutive stock options | | 2 |
| | 2 |
| | 8 |
|
| Add: dilutive restricted stock | | 651 |
| | 625 |
| | 457 |
|
| Diluted weighted average common shares and securities | | 82,040 |
| | 76,711 |
| | 66,321 |
|
| Earnings per share available to common stockholders after allocation: | | | | | | |
| Basic | | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.27 |
|
| Diluted | | $ | 1.29 |
| | $ | 0.85 |
| | $ | 0.26 |
|
|
| | | | | | | | | | | | |
| Denominator | | | | |
| | |
|
| Weighted average common shares outstanding | | 88,460 |
| | 81,387 |
| | 76,084 |
|
| Add: dilutive stock options | | 1 |
| | 2 |
| | 2 |
|
| Add: dilutive restricted stock | | 454 |
| | 651 |
| | 625 |
|
| Diluted weighted average common shares and securities | | 88,915 |
| | 82,040 |
| | 76,711 |
|
| Earnings per share available to common stockholders after allocation | | | | | | |
| Basic earnings per share | | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
|
| Diluted earnings per share | | $ | 1.80 |
| | $ | 1.29 |
| | $ | 0.85 |
|
We have excluded certain securities from the computation of diluted earnings per share because the inclusion of these securities would have been anti-dilutive for the periods presented. The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share for the years ended December 31, 2019, 2018 2017and 20162017 (amounts in thousands):
| | | | Year Ended December 31, | | Year Ended |
| | 2018 | | 2017 | | 2016 | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Common OP units | 2,726 |
| | 2,746 |
| | 2,759 |
| | 2,420 |
| | 2,726 |
| | 2,746 |
|
| Series A-1 preferred OP units | 332 |
| | 345 |
| | 367 |
| |
| Series A-3 preferred OP units | 40 |
| | 40 |
| | 40 |
| |
| Series A-4 preferred OP units | 410 |
| | 424 |
| | 634 |
| |
| Series A-4 preferred stock | 1,063 |
| | 1,085 |
| | 1,682 |
| | — |
| | 1,063 |
| | 1,085 |
|
| A-3 preferred OP units | | | 40 |
| | 40 |
| | 40 |
|
| A-1 preferred OP units | | | 309 |
| | 332 |
| | 345 |
|
| A-4 preferred OP units | | | — |
| | 410 |
| | 424 |
|
| Aspen preferred OP units | | | 1,284 |
| | 1,284 |
| | 1,284 |
|
| Series C preferred OP units | 314 |
| | 316 |
| | 333 |
| | 310 |
| | 314 |
| | 316 |
|
| Aspen preferred OP units | 1,284 |
| | 1,284 |
| | 1,284 |
| |
| Series D preferred OP units | | | 489 |
| | — |
| | — |
|
| Total securities | 6,169 |
| | 6,240 |
| | 7,099 |
| | 4,852 |
| | 6,169 |
| | 6,240 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Selected Quarterly Financial Information (Unaudited)
The following is a condensed summary of our unaudited quarterly results for years ended December 31,2019 and 2018 and 2017. Income(in thousands, except per share data):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2019 Quarters | | 2018 Quarters |
| | | March 31, 2019 | | June 30, 2019 | | September 30, 2019 | | December 31, 2019 | | March 31, 2018 | | June 30, 2018 | | September 30, 2018 | | December 31, 2018 |
| Total Revenues | | $ | 287,330 |
| | $ | 312,445 |
| | $ | 362,443 |
| | $ | 301,819 |
| | $ | 257,975 |
| | $ | 271,434 |
| | $ | 323,413 |
| | $ | 274,003 |
|
| Total Expenses | | 252,759 |
| | 272,273 |
| | 305,989 |
| | 293,835 |
| | 221,871 |
| | 245,125 |
| | 273,119 |
| | 257,162 |
|
| Income Before Other Items | | $ | 34,571 |
| | $ | 40,172 |
| | $ | 56,454 |
| | $ | 7,984 |
| | $ | 36,104 |
| | $ | 26,309 |
| | $ | 50,294 |
| | $ | 16,841 |
|
| | | | | | | | | | | | | | | | | |
| Net Income attributable to Sun Communities, Inc. common stockholders | | $ | 34,331 |
| | $ | 40,385 |
| | $ | 57,002 |
| | $ | 28,547 |
| | $ | 29,986 |
| | $ | 20,408 |
| | $ | 46,060 |
| | $ | 9,039 |
|
| | | | | | | | | | | | | | | | | |
Earnings per share (1) | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.40 |
| | $ | 0.46 |
| | $ | 0.63 |
| | $ | 0.31 |
| | $ | 0.38 |
| | $ | 0.25 |
| | $ | 0.56 |
| | $ | 0.11 |
|
| Diluted earnings per share | | $ | 0.40 |
| | $ | 0.46 |
| | $ | 0.63 |
| | $ | 0.31 |
| | $ | 0.38 |
| | $ | 0.25 |
| | $ | 0.56 |
| | $ | 0.11 |
|
(1) Earnings per share for the year may not equal the sum of the fiscal quarters’ incomeearnings per share due to changes in basic and diluted shares outstanding.
|
| | | | | | | | | | | | | | | | |
| | | Quarters |
| | | 1st | | 2nd | | 3rd | | 4th |
| | | (In thousands, except per share amounts) |
| 2018 | | | | | | | | |
| Total Revenues | | $ | 257,975 |
| | $ | 271,434 |
| | $ | 323,412 |
| | $ | 274,004 |
|
| Total Expenses | | 221,871 |
| | 245,091 |
| | 273,040 |
| | 257,131 |
|
| Income before other items | | $ | 36,104 |
| | $ | 26,343 |
| | $ | 50,372 |
| | $ | 16,873 |
|
| | | | | | | | | |
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | | $ | 29,986 |
| | $ | 20,408 |
| | $ | 46,060 |
| | $ | 9,039 |
|
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | $ | 0.38 |
| | $ | 0.25 |
| | $ | 0.56 |
| | $ | 0.11 |
|
| Diluted | | $ | 0.38 |
| | $ | 0.25 |
| | $ | 0.56 |
| | $ | 0.11 |
|
| | | | | | | | | |
| | | | | | | | | |
| 2017 | | | | | | | | |
| Total Revenues | | $ | 234,400 |
| | $ | 237,899 |
| | $ | 268,245 |
| | $ | 242,026 |
|
| Total Expenses | | 209,816 |
| | 222,452 |
| | 242,751 |
| | 234,850 |
|
| Income before other items | | $ | 24,584 |
| | $ | 15,447 |
| | $ | 25,494 |
| | $ | 7,176 |
|
| | | | | | | | | |
| Net Income Attributable to Sun Communities, Inc. Common Stockholders | | $ | 21,104 |
| | $ | 12,364 |
| | $ | 24,115 |
| | $ | 7,438 |
|
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | $ | 0.29 |
| | $ | 0.16 |
| | $ | 0.31 |
| | $ | 0.09 |
|
| Diluted | | $ | 0.29 |
| | $ | 0.16 |
| | $ | 0.31 |
| | $ | 0.09 |
|
16. Fair Value of Financial Instruments
Our financial instruments consist primarily of cash, cash equivalents and restricted cash, marketable securities, accounts and notes receivable, accounts payable, and debt.
ASC Topic 820 ““Fair Value Measurements and Disclosures,”” requires disclosure about howregarding determination of fair value is determined for assets and liabilities and establishes a hierarchy under which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumption. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:
Level 1—Quoted unadjusted prices for identical instruments in active markets;
Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following methods and assumptions were used in order to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Marketable Securities
In November 2018, we purchased marketable securities on the Australian Securities Exchange (“ASX”) for total consideration of $54 million US. The marketableMarketable securities held by us and accounted for under the ASC 321 “Investment Equity Securities” are measured at fair value. Any change in fair value is recognized in the Consolidated Statement of Operations in Remeasurement of marketable securities in accordance with ASU 2016-01 “Financial Instruments - Overall (Subtopic 825-10): Recognition and measurement of financial assets and financial liabilities.” The fair value is measured by the quoted unadjusted share price of which is readily available in active markets (Level 1).
Installment Notes Receivable on Manufactured Homes
The net carrying value of the installment notes receivable on manufactured homes estimates the fair value as the interest rates in the portfolio are comparable to current prevailing market rates (Level 2). Refer Note 5, “Notes“Notes and Other Receivables.Receivables.”
Notes Receivable from Real Estate Developers
The net carrying value of the notes receivable from real estate developers estimates the fair value as the interest rates in the portfolio are comparable to current prevailing market rates (Level 2). Refer Note 5, “Notes and Other Receivables.”
Long Term Debt and Lines of Credit
The fair value of long-term debt (excluding the secured borrowing) is based on the estimates of management and on rates currently quoted, rates currently prevailing for comparable loans, and instruments of comparable maturities (Level 2). Refer to Note 9, “Debt“Debt and Lines of Credit.Credit.”
Collateralized Receivables and Secured Borrowing
The fair value of these financial instruments offset each other as our collateralized receivables represent a transfer of financial assets and the cash proceeds received from these transactions have been classified as a secured borrowing on the Consolidated Balance Sheets. The net carrying value of the collateralized receivables estimates the fair value as the interest rates in the portfolio are comparable to current prevailing market rates (Level 2). Refer to Note 4, “Collateralized“Collateralized Receivables and Transfers of Financial Assets.Assets.”
Financial Liabilities
We estimate the fair value of our contingent consideration liability based on discounting of future cash flows using market interest rates and adjusting for non-performancenonperformance risk over the remaining term of the liability (Level 2).
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair market values due to the short-term nature of thesethose instruments.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The table below sets forth our financial assets and liabilities that required disclosure of their fair valuesvalue on a recurring basis as of December 31, 2018.2019. The table presents the carrying values and fair values of our financial instruments as of December 31, 20182019 and December 31, 20172018, that were measured using the valuation techniques described above (in thousands). The table excludes other financial instruments such as cash and cash equivalents, and restricted cash, accounts receivable, and accounts payable as the carrying values associated with these instruments approximate fair value since their maturities are less than one year.
| | | | | December 31, 2018 | | December 31, 2017 | | December 31, 2019 | | December 31, 2018 |
| Financial assets | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value |
| Marketable securities | | $ | 49,037 |
| | $ | 49,037 |
| | $ | — |
| | $ | — |
| | $ | 94,727 |
| | $ | 94,727 |
| | $ | 49,037 |
| | $ | 49,037 |
|
| Installment notes receivable on manufactured homes, net | | $ | 112,798 |
| | $ | 112,798 |
| | $ | 115,797 |
| | $ | 115,797 |
| | 95,580 |
| | 95,580 |
| | 112,798 |
| | 112,798 |
|
| Collateralized receivables, net | | $ | 106,924 |
| | $ | 106,924 |
| | $ | 128,246 |
| | $ | 128,246 |
| | — |
| | — |
| | 106,924 |
| | 106,924 |
|
| Notes receivable from real estate developers | | | 18,960 |
| | 18,960 |
| | — |
| | — |
|
| Total | | | $ | 209,267 |
| | $ | 209,267 |
| | $ | 268,759 |
| | $ | 268,759 |
|
| | | | | | | | | | |
| Financial liabilities | | | | | | | | | | | | | | | | |
| Debt (excluding secured borrowings) | | $ | 2,888,572 |
| | $ | 2,757,649 |
| | $ | 2,908,799 |
| | $ | 2,726,770 |
| | $ | 3,250,504 |
| | $ | 3,270,544 |
| | $ | 2,888,572 |
| | $ | 2,757,649 |
|
| Secured borrowings | | $ | 107,731 |
| | $ | 107,731 |
| | $ | 129,182 |
| | $ | 129,182 |
| | — |
| | — |
| | 107,731 |
| | 107,731 |
|
| Lines of credit | | $ | 128,000 |
| | $ | 128,000 |
| | $ | 41,257 |
| | $ | 41,257 |
| | 183,898 |
| | 183,898 |
| | 128,000 |
| | 128,000 |
|
| Other liabilities (contingent consideration) | | $ | 4,640 |
| | $ | 4,640 |
| | $ | 6,976 |
| | $ | 6,976 |
| | 6,134 |
| | 6,134 |
| | 4,640 |
| | 4,640 |
|
| Total | | | $ | 3,440,536 |
| | $ | 3,460,576 |
| | $ | 3,128,943 |
| | $ | 2,998,020 |
|
17. Recent Accounting Pronouncements
Recent Accounting Pronouncements - Adopted
In February 2016, the FASB issued ASC 2016-02 codified in ASC Topic 842, Leases, which amends the guidance in former ASC Topic 840, Leases. On January 1, 2018,2019, we adopted ASC 2016-02. The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases and disclose key information about leasing arrangements. As amended by ASU 2014-09 “Revenue from Contracts2018-11, comparative reporting periods are presented in accordance with Customers (Topic 606).” ReferTopic 840, while periods subsequent to Note 2, “Revenue”the effective date are presented in accordance with Topic 842. The Company elected the package of practical expedients, which permits the Company not to reassess expired or existing contracts containing a lease, the lease classification for information regardingexpired or existing contracts, initial direct costs for any existing leases. The Company elected not to allocate lease obligation between lease and non-lease components of our adoptionagreements for both leases where we are a lessor and leases where we are a lessee. The Company did not elect the hindsight practical expedient, which permits the company to use hindsight in determining the lease terms and impairment implications. The Company did not elect to use a portfolio approach in the valuation of this guidance.ROU assets and corresponding liabilities. Some ROU assets include an extension option, which is included in the ROU assets and liabilities only if we are reasonably certain to exercise.
On January 1, 2018 we adopted ASU 2017-09 “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” This update provided clarity and reduced both diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, regarding a change to the terms or conditions of a share-based payment award. There was no initial impact that resulted from adoption of this guidance; it will be applied should a modification occur.Lessor Accounting
On January 1, 2018,Our income from real property and rental home revenue streams are derived from rental agreements where we adopted ASU 2017-01 “Business Combinations (Topic 805): Clarifyingare the Definitionlessor. Our recognition of a Business.” This update clarifiedrental revenue remains mainly consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. ASC 842 limits the definition of initial direct costs to only the incremental costs of signing a business withlease. Internal sales employees’ compensation, payroll-related fringe benefits, certain legal fees rendered prior to the objectiveexecution of adding guidance to assist entities with evaluating whether transactions shoulda lease, negotiation costs, advertising and other origination effort costs no longer meet the definition of initial direct costs under the new standard, and will be accounted for as acquisitions (or disposals)general and administrative expense in our consolidated statements of assets or businesses.operations. ASC 842 permits the capitalization of direct commission costs. The definitionapplication of a business affects many areasASC 842 resulted in an immaterial impact on the statement of accounting including acquisitions, disposals, goodwill, and consolidation.consolidated operations.
Under previous guidance, substantially all of our property acquisitions were accounted forOur leases with customers are classified as business combinations with identifiable assets and liabilities measured at fair value, and acquisition related costs expensed as incurred.
With the adoption of ASU 2017-01, substantially all of our future property acquisitions are accounted for as asset acquisitions. We allocate the purchase price of these propertiesoperating leases. Lease income from tenants is recognized on a relative fair valuestraight-line basis and capitalize direct acquisition related costs as partover the terms of the purchase price. Acquisitions costs that do not meetrelevant lease agreement and is included within income from real property, rental home revenue and ancillary revenue on the criteria to be capitalized will be expensed as incurred and presented as General and administrative costs in our Consolidated Statements of Operations.
On January 1, 2018, we adopted ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash.” This update required inclusion of restricted Revenue is not recognized when collection is not reasonably assured. When collectability is not reasonably assured, the resident is placed on non-accrual status and revenue is recognized when cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.payments are received.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Lessee Accounting
We determine if an arrangement is a lease at inception. Our restricted cash consists of amountsoperating lease agreements are primarily held in deposit for tax, insuranceexecutive office spaces, ground leases at certain communities, and repair escrows held by lenders in accordance with certain debt agreements. Restricted cash isequipment leases. The ROU asset and ROU liabilities are included as a component ofwithin Other assets, net and Other liabilities on the Consolidated Balance Sheets. ChangesFor operating leases with a term greater than one year, the company recognizes the ROU assets and liabilities related to the lease payments on the Consolidated Balance Sheets. The lease liabilities are initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. The ROU assets represent our right to use the underlying assets for the term of the lease and the lease liabilities represent our obligation to make lease payments arising for the agreements. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The ROU asset is periodically reduced by impairment losses. As of December 31, 2019, we have not encountered any impairment losses. Variable lease payments, except for the ones that depend on index or rate, are excluded from the calculation of the ROU assets and lease liabilities and are recognized as variable lease expense in restricted cash are reported in ourthe Consolidated Statements of Cash Flows as operating, investing or financing activitiesOperations in the period in which they are incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the natureinformation available at commencement date in determining the present value of lease payments. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. The lease liability costs are amortized over the straight-line method over the term of the lease. Operating leases with a term of less than one year are recognized as a lease expense over the term of the lease, with no asset or liability recognized on the Consolidated Balance Sheets. Finance leases where we are the lessee are included in Other assets, net and Other liabilities on our Consolidated Balance Sheets. The lease liabilities are initially measured in the same manner as operating leases and are subsequently measured at amortized cost using the effective interest method. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received.
For finance leases the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying activity.
The following table reconciles our beginning-of-periodasset to us, or we are reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Amortization of the ROU asset is recognized and end-of-period balancespresented separately from interest expense on the lease liability. ROU assets are periodically reduced by impairment losses. As of cash, cash equivalents and restricted cashDecember 31, 2019, we have not encountered any impairment losses. Refer to Note 19, “Leases” for the periods shown (in thousands):
|
| | | | | | | | | | | | |
| | | December 31, 2018 | | December 31, 2017 | | December 31, 2016 |
| Cash and cash equivalents | | $ | 50,311 |
| | $ | 10,127 |
| | $ | 8,164 |
|
| Restricted cash | | 11,951 |
| | 13,382 |
| | 17,149 |
|
| Cash, cash equivalents and restricted cash | | $ | 62,262 |
| | $ | 23,509 |
| | $ | 25,313 |
|
Recent Accounting Pronouncements - Not Yet Adopted
In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” “CECL” This update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are evaluating how this guidance will impact our accounting policies regarding assessment of, and allowance for, loan losses.
In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” The core principle of this update is that a lessee should recognize the right of use (“ROU”) asset and corresponding liabilities in the Consolidated Balance Sheet that arise from lease agreements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We will adopt the amendment in the first quarter 2019 using the prospective approach. Our income from real property and rental home revenue streams is derived from rental agreements where we are the lessor. The new accounting standard narrowed the definition of initial direct costs which can be capitalized. The new standard defines initial direct costs as the incremental costs of signing a lease. Employee salaries, legal fees rendered prior to the execution of a lease, negotiation costs, advertising and other origination effort costs no longer meet the definition of initial direct costs and will not be capitalized. These costs will be included in general and administrative costs, or property operating and maintenance expense, in our Consolidated Statement of Operations. Certain commissions will be capitalized as initial direct costs pursuant to adoption of the standard. We are the lessee in other arrangements, primarily for our executive offices, ground leases at certain communities and certain property. For leases with a term greater than one year, a ROU asset and corresponding liabilities will be included on the Consolidated Balance Sheet. The ROU asset and corresponding liabilities are measured as the estimated present value of minimum lease payments at the commencement of the lease agreement and discounted by our incremental borrowing rate of a collateralized term loan. As of January 1, 2019,2020, we adopted the fair value option for our installment notes receivable and the notes receivable within the GTSC joint venture which resulted in fair value adjustments of $0.3 million and $0.6 million, respectively. We do not expect to recognize operating lease ROU assetsthe impact of $40.0 million to $50.0 million which will include the present valueadoption of minimum lease payments as well as certain existing below market lease intangibles associated with such leases. Also upon adoption, we expect to recognize operating lease liabilities of $15.0 million to $25.0 million. We will elect certain practical expedients allowable by the ASU, including the expedient to forego separation of lease and non-lease component of lessee contracts, resulting in a gross-up effectCECL on the balance sheet assets and liabilities. Additionally for all leases, we will elect the package of practical expedients, which permits the Company notremaining in scope financial instruments to reassess expired or existing contracts containing a lease, the lease classification for expired or existing contracts, and measurement of initial direct costs for any existing leases.be material.
In August 2018, the FASB issued ASU 2018-15 “Intangibles- Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. The amendments in this update are effective for fiscal years beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for all entities. We are currently evaluating the potential impact of adoption of this standard on our consolidated financial statements.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
18. Commitments and Contingencies
Legal Proceedings
We are involved in various legal proceedings arising in the ordinary course of business. All such proceedings, taken together, are not expected to have a material adverse impact on our results of operations or financial condition.
Catastrophic Weather
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In September 2017, our communities in Florida and Georgia sustained damages from Hurricane Irma. We maintain property, casualty, flood and business interruption insurance for our community portfolio, subject to customary deductibles and limits. The table below sets forth estimated insurance recoveries (in millions). Actual insurance recoveries could vary significantly from our estimates. Future changes to estimated insurance recoveries will be recognized in the period(s) in which they are determined.
|
| | | |
| | Year Ended December 31, 2018 |
| Total estimated insurance receivable - December 31, 2017 | $ | 23.7 |
|
| Change in estimated insurance recoveries | 9.2 |
|
| Business interruption payment receivable | 2.2 |
|
| Advances from insurer | (16.4 | ) |
| Total estimated insurance receivable - December 31, 2018 | $ | 18.7 |
|
Changes in estimated insurance recoveries for damages duringFuture minimum lease payments under non-cancellable leases as of the year ended December 31, 2019 where we are the lessee include:
|
| | | | | | | | | | | |
Maturity of lease liabilities (in thousands) | | | | | |
| | Operating Leases | | Finance Leases | | Total |
| 2020 | $ | 2,397 |
| | $ | 120 |
| | $ | 2,517 |
|
| 2021 | 2,446 |
| | 120 |
| | 2,566 |
|
| 2022 | 2,483 |
| | 120 |
| | 2,603 |
|
| 2023 | 2,572 |
| | 120 |
| | 2,692 |
|
| 2024 | 2,868 |
| | 4,060 |
| | 6,928 |
|
| Thereafter | 32,277 |
| | — |
| | 32,277 |
|
| Total lease payments | $ | 45,043 |
| | $ | 4,540 |
| | $ | 49,583 |
|
| Less: Imputed interest | (20,821 | ) | | (459 | ) | | (21,280 | ) |
| Present value of lease liabilities | $ | 24,222 |
| | $ | 4,081 |
| | $ | 28,303 |
|
ROU assets and lease liabilities for finance and operating leases as included in our Consolidated Financial Statements are as follows:
|
| | | | | | | | | | | | | | |
Lease asset and liabilities (in thousands)
| | | | | | | | | | |
| Description | | Financial Statement Classification | | December 31, 2019 | | Description | | Financial Statement Classification | | December 31, 2018 |
| Lease assets | | | | | | | | | | |
| Right-of-use asset obtained in exchange for new finance lease liabilities | | Other asset, net | | $ | 4,081 |
| | Capital lease asset | | Land | | $ | 4,098 |
|
| Right-of-use asset obtained in exchange for new operating lease liabilities | | Other asset, net | | $ | 23,751 |
| | n/a |
| Right-of-use asset obtained relative to below market operating lease | | Other asset, net | | $ | 28,366 |
| | Below market Lease intangible asset | | Other Asset, net | | $ | 29,118 |
|
| Lease liabilities | | | | | | | | | | |
| Finance lease liabilities | | Other liabilities | | $ | 4,081 |
| | Capital lease liabilities | | Other Liabilities | | $ | 4,098 |
|
| Operating lease liabilities | | Other liabilities | | $ | 24,222 |
| | n/a |
Lease expense for finance and operating leases as included in our Consolidated Financial Statements are as follows:
|
| | | | | | |
Lease expense (in thousands)
| | Year Ended |
| | | | | December 31, |
| Description | | Financial Statement Classification | | 2019 |
| Finance lease expense | | | | |
| Amortization of right-of-use assets | | Interest expense | | $ | 17 |
|
| Interest on lease liabilities | | Interest expense | | 103 |
|
| Operating lease cost | | General and administrative expense, Property operating and maintenance | | 3,474 |
|
| Variable lease cost | | Property operating and maintenance | | 1,584 |
|
| Total lease expense | | | | $ | 5,178 |
|
|
| | | | | | | | | | |
| | | Year Ended |
| Description | | Financial Statement Classification | | December 31, 2018 | | December 31, 2017 |
| Capital lease expense | | | | | | |
| Amortization of lease | | Interest expense | | $ | 16 |
| | $ | — |
|
| Interest on lease liabilities | | Interest expense | | 104 |
| | — |
|
| Operating lease expense | | General and administrative expense, Property operating and maintenance | | 3,310 |
| | 3,303 |
|
| Below market ground lease amortization expense | | Property operating and maintenance | | 821 |
| | 1,017 |
|
| Total lease expense | | | | $ | 4,251 |
| | $ | 4,320 |
|
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In June 2018, were primarily thewe acquired 50 percent of a land parcel that was previously subject to a ground lease at one of our California communities for $8.0 million. As a result of incremental invoicesthe transaction, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.3 million of the related accumulated amortization. The $0.8 million net write off is included within the Property operating and maintenance expenses in our Consolidated Statements of Operations for which the total costs exceeded the applicable deductible and confirmation of payment on the business interruption insurance claim. year ended December 31, 2018.
Lease term, discount rates and additional information for finance and operating leases are as follows:
|
| | | |
Lease term and discount rate
| | |
| | December 31, 2019 |
| Weighted-average remaining lease terms (years) | | |
| Finance lease | | 4.50 |
|
| Operating lease | | 27.15 |
|
| Weighted-average discount rate | | |
| Finance lease | | 2.50 | % |
| Operating lease | | 4.15 | % |
|
| | | | | | | | | | | | |
Other Information (in thousands) | | Year Ended |
| | | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating Cash Flow from Operating leases | | $ | 2,199 |
| | $ | 3,340 |
| | $ | 3,182 |
|
| Financing Cash Flow from Finance leases | | 120 |
| | 120 |
| | 121 |
|
| Total Cash paid on lease liabilities | | $ | 2,319 |
| | $ | 3,460 |
| | $ | 3,303 |
|
As of the year ended December 31, 2019, we have an additional executive office space operating lease for $2.9 million which will commence in January 2020 with a lease term of seven years.
Lessor Accounting
We are actively working withnot the lessor for any finance leases as of December 31, 2019. Over 95 percent of our insureroperating leases where we are the lessor are either month to month or for a time period not to exceed one year. As of the reporting date, future minimum lease payments would not exceed twelve months. Similarly, over 95 percent of our investment property, net on claims for lost earningsthe Consolidated Balance Sheets, and redevelopment costs greater thanrelated depreciation amounts relate to assets whereby we are the asset impairment charge for the three Florida Keys communities. The three impaired Florida Keys communities will require redevelopment followed by a tenant lease-up period. As such, we currently cannot estimate a date whenlessor under an operating results will be restored to pre-hurricane levels. Our business interruption insurance policy provides for up to 60 months of coverage from the date of restoration.lease.
19.20. Related Party Transactions
Lease of Executive Offices. Gary A. Shiffman, together with certain of his family members, indirectly owns an equity interest of approximately 28.1 percent in American Center LLC, the entity from which we lease office space for our principal executive offices. Each of Brian M. Hermelin, Ronald A. Klein and Arthur A. Weiss indirectly owns a less than one percent interest in American Center LLC. Mr. Shiffman is our Chief Executive Officer and Chairman of the Board. Each of Mr. Hermelin, Mr. Klein and Mr. Weiss is a director of the Company. Under this agreement, we lease approximately 103,100 rentable square feet of permanent space. The initial term of the lease is until October 31, 2026, and the average gross base rent is $18.55$18.95 per square foot until October 31, 20192020 with graduated rental increases thereafter. Each of Mr. Shiffman, Mr. Hermelin, Mr. Klein and Mr. Weiss may have a conflict of interest with respect to his obligations as our officer and/or director and his ownership interest in American Center LLC.
Use of Airplane. Gary A. Shiffman is the beneficial owner of an airplane that we use from time to time for business purposes. During the year ended December 31, 2019, we paid $0.4 million for the use of the airplane. Mr. Shiffman may have a conflict of interest with respect to his obligations as our officer and director and his ownership interest in the airplane.
Telephone Services. Brian M. Hermelin is a principal and a beneficial owner of an entity that installs and maintains emergency telephone systems at our Properties. During the year ended December 31, 2019, we paid $0.2 million for these services. Mr. Hermelin may have a conflict of interest with respect to his obligations as our director and his position with and ownership interest in the provider of these services.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Legal Counsel. During 2015-2018,2017-2019, Jaffe, Raitt, Heuer, & Weiss, Professional Corporation acted as our general counsel and represented us in various matters. Arthur A. Weiss is the Chairman of the Board of Directors and a shareholder of such firm. We incurred legal fees and expenses owed to Jaffe, Raitt, Heuer, & Weiss of approximately $11.1 million, $7.1 million $5.0 million and $8.0$5.0 million in the years ended December 31, 2019, 2018 2017 and 2016,2017, respectively.
Tax Consequences Upon Sale of Properties. Gary A. Shiffman holds limited partnership interests in the Operating Partnership which were received in connection with the contribution of properties from partnerships previously affiliated with him. Prior to any redemption of these limited partnership interests for our common stock, Mr. Shiffman will have tax consequences different from those on us and our public stockholders upon the sale of any of these partnerships. Therefore, we and Mr. Shiffman may have different objectives regarding the appropriate pricing and timing of any sale of those properties.
20.
21. Subsequent Events
Subsequent to the quarter ended December 31, 2018,2019, we acquired seven communities1 MH community located in East Falmouth, Massachusetts for $324.7$13.5 million, containing 2,956 MH sites and 612230 RV sites.
Subsequent to In conjunction with the quarter, we completed a $265.0 million twenty-five year term loan transaction which carries an interest rate of 4.17 percent. Concurrently, we repaid a $187.9 million term loan which was due to mature in January 2030.
SUN COMMUNITIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
On January 31, 2019,acquisition, the Operating Partnership created a new class of OP units named Series D PreferredE preferred OP Units in conjunction with the acquisition of a MH community in Oregon City, Oregon.units. As of February 14, 2019, 488,95813, 2020, 90,000 Series D PreferredE preferred OP Unitsunits were outstanding. The Series D PreferredE preferred OP Unitsunits provide for quarterly distributions on the $100 per unit issue price of 3.75%5.3 percent per year until January 31, 2021,9, 2022, and 4.0%5.5 percent per year thereafter. Subject to certain limitations, each Series E Preferred Unit is exchangeable at any time after the first anniversary of its issuance date into that number of shares of the Company’s common stock equal to the quotient obtained by dividing $100.00 by $145.00 (as such ratio is subject to adjustment for certain capital events).
On January 13, 2020, the Operating Partnership’s partnership agreement was amended to revise the terms of 270,000 of the operating partnership’s outstanding 1,283,819 Aspen preferred OP units. With respect to those 270,000 units, the automatic redemption date was extended to January 2, 2034 (as compared to January 2, 2024 for the other Aspen preferred OP units) and the annual distribution rate was reduced to 3.8 percent (as compared to a rate determined by a formula, currently 6.5 percent, for the other Aspen preferred OP units).
We have evaluated our Consolidated Financial Statements for subsequent events through the date that this Form 10-K was issued.
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| 49’er Village RV Resort | | Plymouth, CA | | C | | $ | — |
| | $ | 2,180 |
| | $ | 10,710 |
| | $ | — |
| | $ | 2,252 |
| | $ | 2,180 |
| | $ | 12,962 |
| | $ | 15,142 |
| | $ | (1,251 | ) | | 2017 | | (A) |
| Academy / West Point | | Canton, MI | | — | | — |
| | 1,485 |
| | 14,278 |
| | — |
| | 9,496 |
| | 1,485 |
| | 23,774 |
| | 25,259 |
| | (12,715 | ) | | 2000 | | (A) |
| Adirondack Gateway RV Resort & Campground | | Gansevoort, NY | | — | | — |
| | 620 |
| | 1,970 |
| | — |
| | 2,577 |
| | 620 |
| | 4,547 |
| | 5,167 |
| | (599 | ) | | 2016 | | (A) |
| Allendale Meadows Mobile Village | | Allendale, MI | | — | | — |
| | 366 |
| | 3,684 |
| | — |
| | 10,928 |
| | 366 |
| | 14,612 |
| | 14,978 |
| | (8,782 | ) | | 1996 | | (A) |
| Alpine Meadows Mobile Village | | Grand Rapids, MI | | A | | 10,895 |
| | 729 |
| | 6,692 |
| | — |
| | 10,072 |
| | 729 |
| | 16,764 |
| | 17,493 |
| | (10,114 | ) | | 1996 | | (A&C) |
| Alta Laguna | | Rancho Cucamonga, CA | | D | | 28,090 |
| | 23,736 |
| | 21,088 |
| | — |
| | 1,687 |
| | 23,736 |
| | 22,775 |
| | 46,511 |
| | (2,768 | ) | | 2016 | | (A) |
| Apple Carr Village | | Muskegon, MI | | — | | — |
| | 800 |
| | 6,172 |
| | 336 |
| | 18,359 |
| | 1,136 |
| | 24,531 |
| | 25,667 |
| | (5,138 | ) | | 2011 | | (A&C) |
| Apple Creek | | Amelia, OH | | B | | 7,582 |
| | 543 |
| | 5,480 |
| | — |
| | 2,901 |
| | 543 |
| | 8,381 |
| | 8,924 |
| | (4,546 | ) | | 1999 | | (A) |
| Arbor Terrace RV Park | | Bradenton, FL | | C | | — |
| | 456 |
| | 4,410 |
| | — |
| | 5,412 |
| | 456 |
| | 9,822 |
| | 10,278 |
| | (5,142 | ) | | 1996 | | (A) |
| Arbor Woods | | Ypsilanti, MI | | — | | — |
| | 3,340 |
| | 12,385 |
| | — |
| | 11,303 |
| | 3,340 |
| | 23,688 |
| | 27,028 |
| | (2,707 | ) | | 2017 | | (A) |
| Archview RV Resort & Campground | | Moab, UT | | — | | — |
| | 6,289 |
| | 8,419 |
| | 5 |
| | 305 |
| | 6,294 |
| | 8,724 |
| | 15,018 |
| | (490 | ) | | 2018 | | (A) |
| Ariana Village | | Lakeland, FL | | D | | 5,340 |
| | 240 |
| | 2,195 |
| | — |
| | 1,873 |
| | 240 |
| | 4,068 |
| | 4,308 |
| | (2,364 | ) | | 1994 | | (A) |
| Arran Lake RV Resort & Campground | | Allenford, ON | | — | | — |
| | 1,190 |
| | 1,175 |
| | (28 | ) | (1 | ) | 387 |
| | 1,162 |
| | 1,562 |
| | 2,724 |
| | (203 | ) | | 2016 | | (A) |
| Austin Lone Star RV Resort | | Austin, TX | | C | | — |
| | 630 |
| | 7,913 |
| | — |
| | 2,104 |
| | 630 |
| | 10,017 |
| | 10,647 |
| | (1,257 | ) | | 2016 | | (A) |
| Autumn Ridge | | Ankeny, IA | | D | | 24,344 |
| | 890 |
| | 8,054 |
| | (33 | ) | (3 | ) | 5,835 |
| | 857 |
| | 13,889 |
| | 14,746 |
| | (7,992 | ) | | 1996 | | (A) |
| Bahia Vista Estates | | Sarasota, FL | | — | | — |
| | 6,810 |
| | 17,650 |
| | — |
| | 1,804 |
| | 6,810 |
| | 19,454 |
| | 26,264 |
| | (2,277 | ) | | 2016 | | (A) |
| Baker Acres RV Resort | | Zephyrhills, FL | | E | | 7,218 |
| | 2,140 |
| | 11,880 |
| | — |
| | 2,520 |
| | 2,140 |
| | 14,400 |
| | 16,540 |
| | (1,743 | ) | | 2016 | | (A) |
Beechwood (4) | | Killingworth, CT | | C | | — |
| | 7,897 |
| | 18,400 |
| | — |
| | 5 |
| | 7,897 |
| | 18,405 |
| | 26,302 |
| | (307 | ) | | 2019 | | (A) |
| Bell Crossing | | Clarksville, TN | | B | | 9,425 |
| | 717 |
| | 1,916 |
| | (13 | ) | (3 | ) | 8,330 |
| | 704 |
| | 10,246 |
| | 10,950 |
| | (6,134 | ) | | 1999 | | (A&C) |
| Big Timber Lake RV Camping Resort | | Cape May Court House, NJ | | A | | 10,833 |
| | 590 |
| | 21,308 |
| | — |
| | 2,195 |
| | 590 |
| | 23,503 |
| | 24,093 |
| | (5,827 | ) | | 2013 | | (A) |
| Big Tree RV Resort | | Arcadia, FL | | — | | — |
| | 1,250 |
| | 13,534 |
| | — |
| | 2,627 |
| | 1,250 |
| | 16,161 |
| | 17,411 |
| | (1,991 | ) | | 2016 | | (A) |
| Blazing Star | | San Antonio, TX | | C | | — |
| | 750 |
| | 6,163 |
| | — |
| | 1,764 |
| | 750 |
| | 7,927 |
| | 8,677 |
| | (2,407 | ) | | 2012 | | (A) |
| Blue Heron Pines | | Punta Gorda, FL | | E | | 18,066 |
| | 410 |
| | 35,294 |
| | — |
| | 5,043 |
| | 410 |
| | 40,337 |
| | 40,747 |
| | (5,829 | ) | | 2015 | | (A&C) |
| Blue Jay MH & RV Resort | | Dade City, FL | | — | | — |
| | 2,040 |
| | 9,679 |
| | — |
| | 1,703 |
| | 2,040 |
| | 11,382 |
| | 13,422 |
| | (1,343 | ) | | 2016 | | (A) |
| Blue Star / Lost Dutchman MH & RV Resort | | Apache Junction, AZ | | E | | 6,406 |
| | 5,120 |
| | 12,720 |
| | — |
| | 5,627 |
| | 5,120 |
| | 18,347 |
| | 23,467 |
| | (3,497 | ) | | 2014 | | (A) |
| Blueberry Hill | | Bushnell, FL | | C | | — |
| | 3,830 |
| | 3,240 |
| | — |
| | 3,646 |
| | 3,830 |
| | 6,886 |
| | 10,716 |
| | (2,285 | ) | | 2012 | | (A) |
| Boulder Ridge | | Pflugerville, TX | | B | | 26,945 |
| | 1,000 |
| | 500 |
| | 3,324 |
| | 49,478 |
| | 4,324 |
| | 49,978 |
| | 54,302 |
| | (13,237 | ) | | 1998 | | (C) |
| Branch Creek Estates | | Austin, TX | | D | | 23,249 |
| | 796 |
| | 3,716 |
| | — |
| | 7,047 |
| | 796 |
| | 10,763 |
| | 11,559 |
| | (6,525 | ) | | 1995 | | (A&C) |
| Brentwood Estates | | Hudson, FL | | B | | 5,838 |
| | 1,150 |
| | 9,359 |
| | — |
| | 3,049 |
| | 1,150 |
| | 12,408 |
| | 13,558 |
| | (2,035 | ) | | 2015 | | (A) |
| Brentwood Mobile Village | | Kentwood, MI | | E | | 10,308 |
| | 385 |
| | 3,592 |
| | — |
| | 2,004 |
| | 385 |
| | 5,596 |
| | 5,981 |
| | (3,571 | ) | | 1996 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Brentwood West | | Mesa, AZ | | D | | 28,800 |
| | 13,620 |
| | 24,202 |
| | — |
| | 1,052 |
| | 13,620 |
| | 25,254 |
| | 38,874 |
| | (4,911 | ) | | 2014 | | (A) |
| Broadview Estates | | Davison, MI | | A | | 4,805 |
| | 749 |
| | 6,089 |
| | — |
| | 17,136 |
| | 749 |
| | 23,225 |
| | 23,974 |
| | (12,158 | ) | | 1996 | | (A&C) |
Brook Ridge (4) | | Hooksett, NH | | C | | — |
| | 959 |
| | 5,971 |
| | — |
| | — |
| | 959 |
| | 5,971 |
| | 6,930 |
| | (100 | ) | | 2019 | | (A) |
| Brookside Mobile Home Village | | Goshen, IN | | — | | — |
| | 260 |
| | 1,080 |
| | 386 |
| | 19,555 |
| | 646 |
| | 20,635 |
| | 21,281 |
| | (10,050 | ) | | 1985 | | (A&C) |
| Brookside Village | | Kentwood, MI | | D | | 6,886 |
| | 170 |
| | 5,564 |
| | — |
| | 392 |
| | 170 |
| | 5,956 |
| | 6,126 |
| | (1,650 | ) | | 2011 | | (A) |
Buena Vista (4) | | Buckeye, AZ | | — | | — |
| | 9,190 |
| | 14,363 |
| | — |
| | 59 |
| | 9,190 |
| | 14,422 |
| | 23,612 |
| | (313 | ) | | 2019 | | (A) |
| Buttonwood Bay MH & RV Resort | | Sebring, FL | | D | | 32,107 |
| | 1,952 |
| | 18,294 |
| | — |
| | 7,341 |
| | 1,952 |
| | 25,635 |
| | 27,587 |
| | (14,582 | ) | | 2001 | | (A) |
| Byron Center Mobile Village | | Byron Center, MI | | A | | 3,235 |
| | 253 |
| | 2,402 |
| | — |
| | 1,815 |
| | 253 |
| | 4,217 |
| | 4,470 |
| | (2,684 | ) | | 1996 | | (A) |
| Caliente Sands | | Cathedral City, CA | | — | | — |
| | 1,930 |
| | 6,710 |
| | — |
| | 640 |
| | 1,930 |
| | 7,350 |
| | 9,280 |
| | (612 | ) | | 2017 | | (A) |
| Camelot Villa | | Macomb, MI | | A | | 16,442 |
| | 910 |
| | 21,211 |
| | — |
| | 12,349 |
| | 910 |
| | 33,560 |
| | 34,470 |
| | (8,482 | ) | | 2013 | | (A) |
| Campers Haven RV Resort | | Dennisport, MA | | D | | 16,300 |
| | 14,260 |
| | 11,915 |
| | — |
| | 8,230 |
| | 14,260 |
| | 20,145 |
| | 34,405 |
| | (1,874 | ) | | 2016 | | (A) |
| Candlelight Manor | | South Daytona, FL | | — | | — |
| | 3,140 |
| | 3,867 |
| | — |
| | 2,650 |
| | 3,140 |
| | 6,517 |
| | 9,657 |
| | (708 | ) | | 2016 | | (A) |
| Candlelight Village | | Sauk Village, IL | | A | | 7,222 |
| | 600 |
| | 5,623 |
| | — |
| | 11,926 |
| | 600 |
| | 17,549 |
| | 18,149 |
| | (10,139 | ) | | 1996 | | (A) |
| Canyonlands RV Resort & Campground | | Moab, UT | | — | | — |
| | 3,661 |
| | 7,415 |
| | 1 |
| | 519 |
| | 3,662 |
| | 7,934 |
| | 11,596 |
| | (469 | ) | | 2018 | | (A) |
| Cape May Crossing | | Cape May, NJ | | — | | — |
| | 270 |
| | 1,693 |
| | — |
| | 494 |
| | 270 |
| | 2,187 |
| | 2,457 |
| | (260 | ) | | 2016 | | (A) |
| Cape May KOA | | Cape May, NJ | | C | | — |
| | 650 |
| | 7,736 |
| | — |
| | 7,950 |
| | 650 |
| | 15,686 |
| | 16,336 |
| | (4,287 | ) | | 2013 | | (A) |
| Carolina Pines RV Resort | | Longs, SC | | — | | — |
| | 5,900 |
| | — |
| | 694 |
| | — |
| | 6,594 |
| | 63,828 |
| | 70,422 |
| | (966 | ) | | 2017 | | (A) |
| Carriage Cove | | Sanford, FL | | E | | 16,716 |
| | 6,050 |
| | 21,235 |
| | — |
| | 1,977 |
| | 6,050 |
| | 23,212 |
| | 29,262 |
| | (4,426 | ) | | 2014 | | (A) |
| Carrington Pointe | | Ft. Wayne, IN | | — | | — |
| | 1,076 |
| | 3,632 |
| | (1 | ) | (3 | ) | 18,984 |
| | 1,075 |
| | 22,616 |
| | 23,691 |
| | (7,753 | ) | | 1997 | | (A&C) |
| Castaways RV Resort & Campground | | Berlin, MD | | A | | 20,607 |
| | 14,320 |
| | 22,277 |
| | — |
| | 5,150 |
| | 14,320 |
| | 27,427 |
| | 41,747 |
| | (6,131 | ) | | 2014 | | (A&C) |
| Cava Robles RV Resort | | Paso Robles, CA | | — | | — |
| | 1,396 |
| | — |
| | — |
| | — |
| | 1,396 |
| | 39,084 |
| | 40,480 |
| | (2,668 | ) | | 2014 | | (C) |
| Cave Creek | | Evans, CO | | B | | 24,811 |
| | 2,241 |
| | 15,343 |
| | — |
| | 9,338 |
| | 2,241 |
| | 24,681 |
| | 26,922 |
| | (9,921 | ) | | 2004 | | (C) |
Cedar Springs (4) | | Southington, CT | | C | | — |
| | 2,899 |
| | 10,253 |
| | — |
| | 22 |
| | 2,899 |
| | 10,275 |
| | 13,174 |
| | (171 | ) | | 2019 | | (A) |
| Central Park MH & RV Resort | | Haines City, FL | | C | | — |
| | 2,600 |
| | 10,405 |
| | — |
| | 3,507 |
| | 2,600 |
| | 13,912 |
| | 16,512 |
| | (1,525 | ) | | 2016 | | (A) |
Cherrywood (4) | | Clinton, NY | | C | | — |
| | 662 |
| | 9,629 |
| | — |
| | 57 |
| | 662 |
| | 9,686 |
| | 10,348 |
| | (160 | ) | | 2019 | | (A) |
| Chisholm Point Estates | | Pflugerville, TX | | D | | 23,200 |
| | 609 |
| | 5,286 |
| | — |
| | 6,131 |
| | 609 |
| | 11,417 |
| | 12,026 |
| | (6,327 | ) | | 1995 | | (A&C) |
Chincoteague Island KOA (2) | | Chincoteague, VA | | — | | — |
| | 5,750 |
| | 13,836 |
| | — |
| | — |
| | 5,750 |
| | 13,836 |
| | 19,586 |
| | (273 | ) | | 2019 | | (A) |
Chula Vista RV Resort (2) (4) | | Chula Vista, CA | | — | | — |
| | — |
| | — |
| | — |
| | 1,125 |
| | — |
| | 1,125 |
| | 1,125 |
| | (25 | ) | | 2019 | | (A&C) |
| Cider Mill Crossings | | Fenton, MI | | C | | — |
| | 520 |
| | 1,568 |
| | — |
| | 39,810 |
| | 520 |
| | 41,378 |
| | 41,898 |
| | (9,046 | ) | | 2011 | | (A&C) |
| Cider Mill Village | | Middleville, MI | | A | | 4,590 |
| | 250 |
| | 3,590 |
| | — |
| | 2,621 |
| | 250 |
| | 6,211 |
| | 6,461 |
| | (2,283 | ) | | 2011 | | (A) |
| Citrus Hill RV Resort | | Dade City, FL | | C | | — |
| | 1,170 |
| | 2,422 |
| | — |
| | 1,486 |
| | 1,170 |
| | 3,908 |
| | 5,078 |
| | (431 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Clear Water Mobile Village | | South Bend, IN | | B | | 12,249 |
| | 80 |
| | 1,270 |
| | 61 |
| | 6,335 |
| | 141 |
| | 7,605 |
| | 7,746 |
| | (4,378 | ) | | 1986 | | (A) |
| Club Naples | | Naples, FL | | C | | — |
| | 5,780 |
| | 4,952 |
| | — |
| | 3,139 |
| | 5,780 |
| | 8,091 |
| | 13,871 |
| | (2,694 | ) | | 2011 | | (A) |
| Club Wildwood | | Hudson, FL | | E | | 22,629 |
| | 14,206 |
| | 21,275 |
| | — |
| | 2,133 |
| | 14,206 |
| | 23,408 |
| | 37,614 |
| | (2,690 | ) | | 2016 | | (A) |
Coastal Plantation (4) | | Hampstead, NC | | C | | — |
| | 3,264 |
| | 6,469 |
| | — |
| | 223 |
| | 3,264 |
| | 6,692 |
| | 9,956 |
| | (108 | ) | | 2019 | | (A) |
Costa Vista (4) | | San Diego, CA | | — | | — |
| | — |
| | — |
| | — |
| | 4,777 |
| | — |
| | 4,777 |
| | 4,777 |
| | — |
| | 2019 | | |
| Cobus Green Mobile Home Park | | Osceola, IN | | A | | 8,864 |
| | 762 |
| | 7,037 |
| | — |
| | 8,002 |
| | 762 |
| | 15,039 |
| | 15,801 |
| | (9,274 | ) | | 1993 | | (A) |
| Colony in the Wood | | Port Orange, FL | | — | | — |
| | 5,650 |
| | 26,828 |
| | 29 |
| | 2,065 |
| | 5,679 |
| | 28,893 |
| | 34,572 |
| | (1,426 | ) | | 2017 | | (A&C) |
| Comal Farms | | New Braunfels, TX | | C | | — |
| | 1,455 |
| | 1,732 |
| | — |
| | 9,458 |
| | 1,455 |
| | 11,190 |
| | 12,645 |
| | (5,422 | ) | | 2000 | | (A&C) |
| Compass RV Resort | | St. Augustine, FL | | — | | — |
| | 4,151 |
| | 10,480 |
| | 2 |
| | 406 |
| | 4,153 |
| | 10,886 |
| | 15,039 |
| | (593 | ) | | 2018 | | (A) |
| Country Acres Mobile Village | | Cadillac, MI | | A | | 4,309 |
| | 380 |
| | 3,495 |
| | — |
| | 3,652 |
| | 380 |
| | 7,147 |
| | 7,527 |
| | (4,558 | ) | | 1996 | | (A) |
| Country Hills Village | | Hudsonville, MI | | A | | 5,971 |
| | 340 |
| | 3,861 |
| | — |
| | 543 |
| | 340 |
| | 4,404 |
| | 4,744 |
| | (1,208 | ) | | 2011 | | (A) |
Country Lakes (4) | | Little River, SC | | C | | — |
| | 1,746 |
| | 5,522 |
| | — |
| | 2 |
| | 1,746 |
| | 5,524 |
| | 7,270 |
| | (92 | ) | | 2019 | | (A) |
| Country Meadows Mobile Village | | Flat Rock, MI | | B | | 42,427 |
| | 924 |
| | 7,583 |
| | 296 |
| | 20,185 |
| | 1,220 |
| | 27,768 |
| | 28,988 |
| | (17,041 | ) | | 1994 | | (A&C) |
| Country Meadows Village | | Caledonia, MI | | C | | — |
| | 550 |
| | 5,555 |
| | — |
| | 7,440 |
| | 550 |
| | 12,995 |
| | 13,545 |
| | (2,816 | ) | | 2011 | | (A&C) |
| Country Squire MH & RV Resort | | Paisley, FL | | — | | — |
| | 520 |
| | 1,719 |
| | — |
| | 2,113 |
| | 520 |
| | 3,832 |
| | 4,352 |
| | (433 | ) | | 2016 | | (A) |
Country Village Estates (4) | | Oregon City, OR | | — | | — |
| | 22,020 |
| | 42,615 |
| | — |
| | 36 |
| | 22,020 |
| | 42,651 |
| | 64,671 |
| | (757 | ) | | 2019 | | (A) |
| Countryside Estates | | Mckean, PA | | E | | 6,648 |
| | 320 |
| | 11,610 |
| | — |
| | 1,898 |
| | 320 |
| | 13,508 |
| | 13,828 |
| | (2,524 | ) | | 2014 | | (A) |
| Countryside Village | | Great Falls, MT | | — | | — |
| | 430 |
| | 7,157 |
| | — |
| | 987 |
| | 430 |
| | 8,144 |
| | 8,574 |
| | (1,556 | ) | | 2014 | | (A) |
| Countryside Village of Atlanta | | Lawrenceville, GA | | C | | — |
| | 1,274 |
| | 10,957 |
| | — |
| | 11,931 |
| | 1,274 |
| | 22,888 |
| | 24,162 |
| | (6,998 | ) | | 2004 | | (A&C) |
| Countryside Village of Gwinnett | | Buford, GA | | A | | 9,241 |
| | 1,124 |
| | 9,539 |
| | — |
| | 1,862 |
| | 1,124 |
| | 11,401 |
| | 12,525 |
| | (5,247 | ) | | 2004 | | (A) |
| Countryside Village of Lake Lanier | | Buford, GA | | B | | 27,216 |
| | 1,916 |
| | 16,357 |
| | — |
| | 7,921 |
| | 1,916 |
| | 24,278 |
| | 26,194 |
| | (11,963 | ) | | 2004 | | (A) |
| Craigleith RV Resort & Campground | | Clarksburg, ON | | — | | — |
| | 420 |
| | 705 |
| | (10 | ) | (1 | ) | 671 |
| | 410 |
| | 1,376 |
| | 1,786 |
| | (118 | ) | | 2016 | | (A) |
Creeks Crossing (4) (5) | | Uhland, TX | | — | | — |
| | 3,484 |
| | 2 |
| | — |
| | — |
| | 3,484 |
| | 2 |
| | 3,486 |
| | — |
| | 2019 | | (C) |
| Creekwood Meadows | | Burton, MI | | A | | 3,124 |
| | 808 |
| | 2,043 |
| | 404 |
| | 14,561 |
| | 1,212 |
| | 16,604 |
| | 17,816 |
| | (9,889 | ) | | 1997 | | (C) |
Crestwood (4) | | Concord, NH | | C | | — |
| | 1,849 |
| | 22,367 |
| | — |
| | 39 |
| | 1,849 |
| | 22,406 |
| | 24,255 |
| | (373 | ) | | 2019 | | (A) |
Crossroads (4) | | Aiken, SC | | C | | — |
| | 822 |
| | 3,675 |
| | — |
| | 69 |
| | 822 |
| | 3,744 |
| | 4,566 |
| | (210 | ) | | 2019 | | (A&C) |
| Cutler Estates Mobile Village | | Grand Rapids, MI | | B | | 14,175 |
| | 749 |
| | 6,941 |
| | — |
| | 3,741 |
| | 749 |
| | 10,682 |
| | 11,431 |
| | (6,871 | ) | | 1996 | | (A) |
| Cypress Greens | | Lake Alfred, FL | | E | | 7,498 |
| | 960 |
| | 17,518 |
| | — |
| | 2,295 |
| | 960 |
| | 19,813 |
| | 20,773 |
| | (3,021 | ) | | 2015 | | (A) |
| Daytona Beach RV Resort | | Port Orange, FL | | C | | — |
| | 2,300 |
| | 7,158 |
| | — |
| | 3,930 |
| | 2,300 |
| | 11,088 |
| | 13,388 |
| | (1,266 | ) | | 2016 | | (A) |
Deep Run (4) | | Cream Ridge, NJ | | C | | — |
| | 2,020 |
| | 13,053 |
| | — |
| | 3 |
| | 2,020 |
| | 13,056 |
| | 15,076 |
| | (218 | ) | | 2019 | | (A) |
| Deer Lake RV Resort & Campground | | Huntsville, ON | | — | | — |
| | 2,830 |
| | 4,260 |
| | (67 | ) | (1 | ) | 666 |
| | 2,763 |
| | 4,926 |
| | 7,689 |
| | (590 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Deerfield Run | | Anderson, IN | | — | | — |
| | 990 |
| | 1,607 |
| | — |
| | 6,918 |
| | 990 |
| | 8,525 |
| | 9,515 |
| | (4,422 | ) | | 1999 | | (A&C) |
| Deerwood | | Orlando, FL | | D | | 38,125 |
| | 6,920 |
| | 37,593 |
| | — |
| | 5,017 |
| | 6,920 |
| | 42,610 |
| | 49,530 |
| | (6,856 | ) | | 2015 | | (A) |
| Desert Harbor | | Apache Junction, AZ | | E | | 11,222 |
| | 3,940 |
| | 14,891 |
| | — |
| | 350 |
| | 3,940 |
| | 15,241 |
| | 19,181 |
| | (2,904 | ) | | 2014 | | (A) |
| Driftwood RV Resort & Campground | | Clermont, NJ | | D | | 17,328 |
| | 1,450 |
| | 29,851 |
| | — |
| | 3,134 |
| | 1,450 |
| | 32,985 |
| | 34,435 |
| | (6,962 | ) | | 2014 | | (A) |
| Dunedin RV Resort | | Dunedin, FL | | E | | 10,051 |
| | 4,400 |
| | 16,923 |
| | — |
| | 2,782 |
| | 4,400 |
| | 19,705 |
| | 24,105 |
| | (2,396 | ) | | 2016 | | (A) |
| Dutton Mill Village | | Caledonia, MI | | A | | 9,096 |
| | 370 |
| | 8,997 |
| | — |
| | 2,035 |
| | 370 |
| | 11,032 |
| | 11,402 |
| | (3,302 | ) | | 2011 | | (A) |
| Eagle Crest | | Firestone, CO | | D | | 32,194 |
| | 2,015 |
| | 150 |
| | — |
| | 30,738 |
| | 2,015 |
| | 30,888 |
| | 32,903 |
| | (16,620 | ) | | 1998 | | (C) |
| East Fork Crossing | | Batavia, OH | | C | | — |
| | 1,280 |
| | 6,302 |
| | — |
| | 18,904 |
| | 1,280 |
| | 25,206 |
| | 26,486 |
| | (11,822 | ) | | 2000 | | (A&C) |
| East Village Estates | | Washington Twp, MI | | A | | 19,058 |
| | 1,410 |
| | 25,413 |
| | — |
| | 5,245 |
| | 1,410 |
| | 30,658 |
| | 32,068 |
| | (8,385 | ) | | 2012 | | (A) |
| Egelcraft | | Muskegon, MI | | D | | 19,195 |
| | 690 |
| | 22,596 |
| | — |
| | 2,713 |
| | 690 |
| | 25,309 |
| | 25,999 |
| | (5,026 | ) | | 2014 | | (A) |
| Ellenton Gardens RV Resort | | Ellenton, FL | | E | | 4,710 |
| | 2,130 |
| | 7,755 |
| | — |
| | 2,660 |
| | 2,130 |
| | 10,415 |
| | 12,545 |
| | (1,268 | ) | | 2016 | | (A) |
Emerald Coast MH & RV Resort (2) | | Panama City Beach, FL | | D | | 15,250 |
| | 10,330 |
| | 9,070 |
| | — |
| | 638 |
| | 10,330 |
| | 9,708 |
| | 20,038 |
| | (886 | ) | | 2017 | | (A) |
| Fairfield Village | | Ocala, FL | | B | | 10,714 |
| | 1,160 |
| | 18,673 |
| | — |
| | 749 |
| | 1,160 |
| | 19,422 |
| | 20,582 |
| | (3,002 | ) | | 2015 | | (A) |
Farmwood Village (4) | | Dover, NH | | C | | — |
| | 1,232 |
| | 12,348 |
| | — |
| | 7 |
| | 1,232 |
| | 12,355 |
| | 13,587 |
| | (206 | ) | | 2019 | | (A) |
| Fiesta Village MH & RV Resort | | Mesa, AZ | | — | | — |
| | 2,830 |
| | 4,475 |
| | — |
| | 1,523 |
| | 2,830 |
| | 5,998 |
| | 8,828 |
| | (1,128 | ) | | 2014 | | (A) |
| Fisherman’s Cove | | Flint Twp, MI | | A | | 4,784 |
| | 380 |
| | 3,438 |
| | — |
| | 4,395 |
| | 380 |
| | 7,833 |
| | 8,213 |
| | (5,276 | ) | | 1993 | | (A) |
Forest Hill (4) | | Southington, CT | | C | | — |
| | 5,170 |
| | 10,775 |
| | — |
| | 17 |
| | 5,170 |
| | 10,792 |
| | 15,962 |
| | (180 | ) | | 2019 | | (A) |
| Forest Meadows | | Philomath, OR | | A | | 2,508 |
| | 1,031 |
| | 2,050 |
| | — |
| | 754 |
| | 1,031 |
| | 2,804 |
| | 3,835 |
| | (1,519 | ) | | 1999 | | (A) |
| Forest View | | Homosassa, FL | | — | | — |
| | 1,330 |
| | 22,056 |
| | — |
| | 1,239 |
| | 1,330 |
| | 23,295 |
| | 24,625 |
| | (3,597 | ) | | 2015 | | (A) |
| Fort Tatham RV Resort & Campground | | Sylva, NC | | — | | — |
| | 110 |
| | 760 |
| | — |
| | 946 |
| | 110 |
| | 1,706 |
| | 1,816 |
| | (206 | ) | | 2016 | | (A) |
| Fort Whaley RV Resort & Campground | | Whaleyville, MD | | C | | — |
| | 510 |
| | 5,194 |
| | — |
| | 8,817 |
| | 510 |
| | 14,011 |
| | 14,521 |
| | (1,479 | ) | | 2015 | | (A) |
| Four Seasons | | Elkhart, IN | | A | | 3,984 |
| | 500 |
| | 4,811 |
| | — |
| | 3,479 |
| | 500 |
| | 8,290 |
| | 8,790 |
| | (4,263 | ) | | 2000 | | (A) |
| Frenchtown Villa / Elizabeth Woods | | Newport, MI | | E | | 29,333 |
| | 1,450 |
| | 52,327 |
| | — |
| | 28,838 |
| | 1,450 |
| | 81,165 |
| | 82,615 |
| | (14,657 | ) | | 2014 | | (A&C) |
| Friendly Village of La Habra | | La Habra, CA | | D | | 33,205 |
| | 26,956 |
| | 25,202 |
| | — |
| | 1,403 |
| | 26,956 |
| | 26,605 |
| | 53,561 |
| | (3,323 | ) | | 2016 | | (A) |
| Friendly Village of Modesto | | Modesto, CA | | D | | 17,244 |
| | 6,260 |
| | 20,885 |
| | — |
| | 1,630 |
| | 6,260 |
| | 22,515 |
| | 28,775 |
| | (2,645 | ) | | 2016 | | (A) |
| Friendly Village of Simi | | Simi Valley, CA | | D | | 16,928 |
| | 14,906 |
| | 15,986 |
| | — |
| | 975 |
| | 14,906 |
| | 16,961 |
| | 31,867 |
| | (2,062 | ) | | 2016 | | (A) |
| Friendly Village of West Covina | | West Covina, CA | | D | | 13,022 |
| | 14,520 |
| | 5,221 |
| | — |
| | 930 |
| | 14,520 |
| | 6,151 |
| | 20,671 |
| | (776 | ) | | 2016 | | (A) |
| Frontier Town RV Resort & Campground | | Berlin, MD | | C | | — |
| | 18,960 |
| | 43,166 |
| | — |
| | 28,633 |
| | 18,960 |
| | 71,799 |
| | 90,759 |
| | (8,946 | ) | | 2015 | | (A) |
Glen Ellis Family Campground (4) | | Glen, NH | | D | | 3,900 |
| | 448 |
| | 5,798 |
| | — |
| | 1,511 |
| | 448 |
| | 7,309 |
| | 7,757 |
| | (104 | ) | | 2019 | | (A) |
| Glen Haven RV Resort | | Zephyrhills, FL | | E | | 5,322 |
| | 1,980 |
| | 8,373 |
| | — |
| | 1,454 |
| | 1,980 |
| | 9,827 |
| | 11,807 |
| | (1,248 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Glen Laurel | | Concord, NC | | C | | — |
| | 1,641 |
| | 453 |
| | — |
| | 12,562 |
| | 1,641 |
| | 13,015 |
| | 14,656 |
| | (7,063 | ) | | 2001 | | (A&C) |
| Gold Coaster MH & RV Resort | | Homestead, FL | | A | | 13,427 |
| | 446 |
| | 4,234 |
| | 172 |
| | 6,658 |
| | 618 |
| | 10,892 |
| | 11,510 |
| | (5,560 | ) | | 1997 | | (A) |
| Grand Bay | | Dunedin, FL | | B | | 9,580 |
| | 3,460 |
| | 6,314 |
| | (3,086 | ) | (3 | ) | 1,466 |
| | 374 |
| | 7,780 |
| | 8,154 |
| | (4,127 | ) | | 2016 | | (A) |
| Grand Lakes RV Resort | | Citra, FL | | — | | — |
| | 5,280 |
| | 4,501 |
| | (1,820 | ) | (3 | ) | 4,923 |
| | 3,460 |
| | 9,424 |
| | 12,884 |
| | (1,313 | ) | | 2012 | | (A) |
| Grand Mobile Estates | | Grand Rapids, MI | | C | | — |
| | 374 |
| | 3,587 |
| | 4,906 |
| | 4,043 |
| | 5,280 |
| | 7,630 |
| | 12,910 |
| | (2,174 | ) | | 1996 | | (A) |
| Grand Oaks RV Resort & Campground | | Cayuga, ON | | — | | — |
| | 970 |
| | 4,220 |
| | (23 | ) | (1 | ) | 2,396 |
| | 947 |
| | 6,616 |
| | 7,563 |
| | (618 | ) | | 2016 | | (A) |
Grove Beach (4) | | Westbrook, CT | | C | | — |
| | 1,221 |
| | 10,225 |
| | — |
| | 22 |
| | 1,221 |
| | 10,247 |
| | 11,468 |
| | (170 | ) | | 2019 | | (A) |
| Grove Ridge RV Resort | | Dade City, FL | | E | | 3,331 |
| | 1,290 |
| | 5,387 |
| | — |
| | 1,926 |
| | 1,290 |
| | 7,313 |
| | 8,603 |
| | (894 | ) | | 2016 | | (A) |
| Groves RV Resort | | Ft. Myers, FL | | A | | 6,108 |
| | 249 |
| | 2,396 |
| | — |
| | 4,215 |
| | 249 |
| | 6,611 |
| | 6,860 |
| | (3,179 | ) | | 1997 | | (A) |
| Gulfstream Harbor | | Orlando, FL | | — | | — |
| | 14,510 |
| | 78,930 |
| | — |
| | 5,464 |
| | 14,510 |
| | 84,394 |
| | 98,904 |
| | (13,105 | ) | | 2015 | | (A) |
| Gulliver’s Lake RV Resort & Campground | | Millgrove, ON | | — | | — |
| | 2,950 |
| | 2,950 |
| | (70 | ) | (1 | ) | 1,044 |
| | 2,880 |
| | 3,994 |
| | 6,874 |
| | (432 | ) | | 2016 | | (A) |
| Gwynn’s Island RV Resort & Campground | | Gwynn, VA | | C | | — |
| | 760 |
| | 595 |
| | — |
| | 1,778 |
| | 760 |
| | 2,373 |
| | 3,133 |
| | (690 | ) | | 2013 | | (A) |
Hacienda Del Rio (4) | | Edgewater, FL | | — | | — |
| | 33,309 |
| | 80,310 |
| | — |
| | 437 |
| | 33,309 |
| | 80,747 |
| | 114,056 |
| | (1,411 | ) | | 2019 | | (A) |
| Hamlin | | Webberville, MI | | B | | 10,720 |
| | 125 |
| | 1,675 |
| | 536 |
| | 12,949 |
| | 661 |
| | 14,624 |
| | 15,285 |
| | (7,220 | ) | | 1984 | | (A&C) |
Hannah Village (4) | | Lebanon, NH | | C | | — |
| | 365 |
| | 4,705 |
| | — |
| | — |
| | 365 |
| | 4,705 |
| | 5,070 |
| | (78 | ) | | 2019 | | (A) |
Hemlocks (4) | | Tilton, NH | | C | | — |
| | 1,016 |
| | 7,151 |
| | — |
| | 4 |
| | 1,016 |
| | 7,155 |
| | 8,171 |
| | (119 | ) | | 2019 | | (A) |
| Heritage | | Temecula, CA | | D | | 13,208 |
| | 13,200 |
| | 7,877 |
| | — |
| | 1,090 |
| | 13,200 |
| | 8,967 |
| | 22,167 |
| | (1,115 | ) | | 2016 | | (A) |
| Hickory Hills Village | | Battle Creek, MI | | — | | — |
| | 760 |
| | 7,697 |
| | — |
| | 2,441 |
| | 760 |
| | 10,138 |
| | 10,898 |
| | (3,357 | ) | | 2011 | | (A) |
Hid'n Pines RV Resort (4) | | Old Orchard Beach, ME | | 0 | | — |
| | 1,956 |
| | 10,020 |
| | — |
| | 215 |
| | 1,956 |
| | 10,235 |
| | 12,191 |
| | (197 | ) | | 2019 | | (A) |
| Hidden Ridge RV Resort | | Hopkins, MI | | C | | — |
| | 440 |
| | 893 |
| | — |
| | 3,788 |
| | 440 |
| | 4,681 |
| | 5,121 |
| | (1,209 | ) | | 2011 | | (A) |
| Hidden River RV Resort | | Riverview, FL | | C | | — |
| | 3,950 |
| | 6,376 |
| | — |
| | 2,988 |
| | 3,950 |
| | 9,364 |
| | 13,314 |
| | (1,038 | ) | | 2016 | | (A) |
| Hidden Valley RV Resort & Campground | | Normandale, ON | | — | | — |
| | 2,610 |
| | 4,170 |
| | (62 | ) | (1 | ) | 1,763 |
| | 2,548 |
| | 5,933 |
| | 8,481 |
| | (655 | ) | | 2016 | | (A) |
| High Point Park | | Frederica, DE | | 0 | | — |
| | 898 |
| | 7,031 |
| | (42 | ) | (3 | ) | 7,715 |
| | 856 |
| | 14,746 |
| | 15,602 |
| | (7,216 | ) | | 1997 | | (A) |
| Hill Country Cottage and RV Resort | | New Braunfels, TX | | C | | — |
| | 3,790 |
| | 27,200 |
| | — |
| | 3,239 |
| | 3,790 |
| | 30,439 |
| | 34,229 |
| | (4,246 | ) | | 2016 | | (A&C) |
Hillcrest (4) | | Uncasville, CT | | C | | — |
| | 10,670 |
| | 9,607 |
| | — |
| | 4 |
| | 10,670 |
| | 9,611 |
| | 20,281 |
| | (160 | ) | | 2019 | | (A) |
| Holiday West Village | | Holland, MI | | B | | 14,109 |
| | 340 |
| | 8,067 |
| | — |
| | 556 |
| | 340 |
| | 8,623 |
| | 8,963 |
| | (2,477 | ) | | 2011 | | (A) |
| Holly Forest Estates | | Holly Hill, FL | | D | | 24,733 |
| | 920 |
| | 8,376 |
| | — |
| | 1,194 |
| | 920 |
| | 9,570 |
| | 10,490 |
| | (6,623 | ) | | 1997 | | (A) |
| Holly Village / Hawaiian Gardens | | Holly, MI | | B | | 19,865 |
| | 1,514 |
| | 13,596 |
| | — |
| | 7,455 |
| | 1,514 |
| | 21,051 |
| | 22,565 |
| | (9,310 | ) | | 2004 | | (A) |
| Homosassa River RV Resort | | Homosassa Springs, FL | | C | | — |
| | 1,520 |
| | 5,020 |
| | — |
| | 2,693 |
| | 1,520 |
| | 7,713 |
| | 9,233 |
| | (882 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Horseshoe Cove RV Resort | | Bradenton, FL | | E | | 19,880 |
| | 9,466 |
| | 32,612 |
| | — |
| | 3,387 |
| | 9,466 |
| | 35,999 |
| | 45,465 |
| | (4,464 | ) | | 2016 | | (A) |
| Hunters Crossing | | Capac, MI | | C | | — |
| | 430 |
| | 1,092 |
| | — |
| | 1,461 |
| | 430 |
| | 2,553 |
| | 2,983 |
| | (612 | ) | | 2012 | | (A) |
| Hunters Glen | | Wayland, MI | | C | | — |
| | 1,102 |
| | 11,926 |
| | — |
| | 16,790 |
| | 1,102 |
| | 28,716 |
| | 29,818 |
| | (10,020 | ) | | 2004 | | (C) |
Hyde Park (4) | | Easton, MD | | C | | — |
| | 6,585 |
| | 18,256 |
| | — |
| | 5 |
| | 6,585 |
| | 18,261 |
| | 24,846 |
| | (304 | ) | | 2019 | | (A) |
| Indian Creek Park | | Ft. Myers Beach, FL | | D | | 62,296 |
| | 3,832 |
| | 34,660 |
| | — |
| | 12,720 |
| | 3,832 |
| | 47,380 |
| | 51,212 |
| | (31,761 | ) | | 1996 | | (A) |
| Indian Creek RV & Camping Resort | | Geneva on the Lake, OH | | C | | — |
| | 420 |
| | 20,791 |
| | (5 | ) | (5 | ) | 8,738 |
| | 415 |
| | 29,529 |
| | 29,944 |
| | (6,246 | ) | | 2013 | | (A&C) |
| Indian Wells RV Resort | | Indio, CA | | D | | 11,534 |
| | 2,880 |
| | 19,470 |
| | — |
| | 4,599 |
| | 2,880 |
| | 24,069 |
| | 26,949 |
| | (2,817 | ) | | 2016 | | (A) |
| Island Lakes | | Merritt Island, FL | | D | | 11,569 |
| | 700 |
| | 6,431 |
| | — |
| | 1,020 |
| | 700 |
| | 7,451 |
| | 8,151 |
| | (5,495 | ) | | 1995 | | (A) |
| Jellystone Park™ at Birchwood Acres MH & RV Resort | | Greenfield Park, NY | | A | | 3,821 |
| | 560 |
| | 5,527 |
| | — |
| | 9,540 |
| | 560 |
| | 15,067 |
| | 15,627 |
| | (3,513 | ) | | 2013 | | (A) |
| Jellystone Park™ at Gardiner | | Gardiner, NY | | — | | — |
| | 873 |
| | 28,406 |
| | — |
| | 3,807 |
| | 873 |
| | 32,213 |
| | 33,086 |
| | (2,090 | ) | | 2018 | | (A) |
| Jellystone Park™ at Golden Valley | | Bostic, NC | | — | | — |
| | 4,829 |
| | 4,260 |
| | (9 | ) | (3 | ) | 24,740 |
| | 4,820 |
| | 29,000 |
| | 33,820 |
| | (1,107 | ) | | 2018 | | (A&C) |
| Jellystone Park™ at Guadalupe River | | Kerrville, TX | | — | | — |
| | 2,519 |
| | 23,939 |
| | (2 | ) | (3 | ) | 2,718 |
| | 2,517 |
| | 26,657 |
| | 29,174 |
| | (1,761 | ) | | 2018 | | (A) |
| Jellystone Park™ at Hill Country | | Canyon Lake, TX | | — | | — |
| | 1,991 |
| | 20,709 |
| | — |
| | 821 |
| | 1,991 |
| | 21,530 |
| | 23,521 |
| | (1,287 | ) | | 2018 | | (A) |
| Jellystone Park™ at Larkspur | | Larkspur, CO | | — | | — |
| | 1,880 |
| | 5,521 |
| | — |
| | 35,067 |
| | 1,880 |
| | 40,588 |
| | 42,468 |
| | (134 | ) | | 2016 | | (A) |
| Jellystone Park™ at Luray | | East Luray, VA | | — | | — |
| | 3,164 |
| | 29,588 |
| | (1 | ) | (3 | ) | 1,058 |
| | 3,163 |
| | 30,646 |
| | 33,809 |
| | (1,938 | ) | | 2018 | | (A) |
| Jellystone Park™ at Maryland | | Williamsport, MD | | — | | — |
| | 2,096 |
| | 23,737 |
| | — |
| | 1,486 |
| | 2,096 |
| | 25,223 |
| | 27,319 |
| | (1,655 | ) | | 2018 | | (A) |
| Jellystone Park™ at Memphis | | Horn Lake, TN | | A | | 2,830 |
| | 889 |
| | 6,846 |
| | 3 |
| | 132 |
| | 892 |
| | 6,978 |
| | 7,870 |
| | (447 | ) | | 2018 | | (A) |
| Jellystone Park™ at Quarryville | | Quarryville, PA | | — | | — |
| | 3,882 |
| | 33,781 |
| | — |
| | 1,297 |
| | 3,882 |
| | 35,078 |
| | 38,960 |
| | (2,197 | ) | | 2018 | | (A) |
| Jellystone Park™ at Tower Park | | Lodi, CA | | — | | — |
| | 2,560 |
| | 29,819 |
| | (1 | ) | (3 | ) | 6,917 |
| | 2,559 |
| | 36,736 |
| | 39,295 |
| | (2,139 | ) | | 2018 | | (A) |
| Jellystone Park™ of Western New York | | North Java, NY | | A | | 6,537 |
| | 870 |
| | 8,884 |
| | — |
| | 6,912 |
| | 870 |
| | 15,796 |
| | 16,666 |
| | (4,306 | ) | | 2013 | | (A) |
| Kensington Meadows | | Lansing, MI | | B | | 17,725 |
| | 250 |
| | 2,699 |
| | — |
| | 8,932 |
| | 250 |
| | 11,631 |
| | 11,881 |
| | (7,199 | ) | | 1995 | | (A&C) |
| Kimberly Estates | | Newport, MI | | C | | — |
| | 1,250 |
| | 6,160 |
| | — |
| | 11,017 |
| | 1,250 |
| | 17,177 |
| | 18,427 |
| | (2,788 | ) | | 2016 | | (A) |
| King’s Court Mobile Village | | Traverse City, MI | | — | | — |
| | 1,473 |
| | 13,782 |
| | 269 |
| | 17,941 |
| | 1,742 |
| | 31,723 |
| | 33,465 |
| | (13,441 | ) | | 1996 | | (A&C) |
| King’s Lake | | DeBary, FL | | D | | 8,899 |
| | 280 |
| | 2,542 |
| | — |
| | 2,943 |
| | 280 |
| | 5,485 |
| | 5,765 |
| | (3,641 | ) | | 1994 | | (A) |
| Kings Manor | | Lakeland, FL | | — | | — |
| | 2,270 |
| | 5,578 |
| | — |
| | 4,985 |
| | 2,270 |
| | 10,563 |
| | 12,833 |
| | (1,283 | ) | | 2016 | | (A) |
| King’s Pointe | | Lake Alfred, FL | | B | | 7,847 |
| | 510 |
| | 16,763 |
| | — |
| | 517 |
| | 510 |
| | 17,280 |
| | 17,790 |
| | (2,664 | ) | | 2015 | | (A) |
| Kissimmee Gardens | | Kissimmee, FL | | — | | — |
| | 3,270 |
| | 14,402 |
| | — |
| | 1,479 |
| | 3,270 |
| | 15,881 |
| | 19,151 |
| | (1,918 | ) | | 2016 | | (A) |
| Kissimmee South MH & RV Resort | | Davenport, FL | | — | | — |
| | 3,740 |
| | 6,819 |
| | — |
| | 4,329 |
| | 3,740 |
| | 11,148 |
| | 14,888 |
| | (1,195 | ) | | 2016 | | (A) |
| Knollwood Estates | | Allendale, MI | | A | | 2,418 |
| | 400 |
| | 4,061 |
| | — |
| | 3,472 |
| | 400 |
| | 7,533 |
| | 7,933 |
| | (4,115 | ) | | 2001 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| 49’er Village RV Resort | | Plymouth, CA | | — | | $ | 2,180 |
| | $ | 10,710 |
| | $ | — |
| | $ | 2,006 |
| | $ | 2,180 |
| | $ | 12,716 |
| | $ | 14,896 |
| | $ | (717 | ) | | 2017 | | (A) |
| Academy / West Point | | Canton, MI | | B | | 1,485 |
| | 14,278 |
| | — |
| | 8,768 |
| | 1,485 |
| | 23,046 |
| | 24,531 |
| | (12,046 | ) | | 2000 | | (A) |
| Adirondack Gateway RV Resort & Campground | | Gansevoort, NY | | — | | 620 |
| | 1,970 |
| | — |
| | 2,563 |
| | 620 |
| | 4,533 |
| | 5,153 |
| | (384 | ) | | 2016 | | (A) |
| Allendale Meadows Mobile Village | | Allendale, MI | | — | | 366 |
| | 3,684 |
| | — |
| | 10,892 |
| | 366 |
| | 14,576 |
| | 14,942 |
| | (8,647 | ) | | 1996 | | (A) |
| Alpine Meadows Mobile Village | | Grand Rapids, MI | | A | | 729 |
| | 6,692 |
| | — |
| | 9,893 |
| | 729 |
| | 16,585 |
| | 17,314 |
| | (9,691 | ) | | 1996 | | (A&C) |
| Alta Laguna | | Rancho Cucamonga, CA | | D | | 23,736 |
| | 21,088 |
| | — |
| | 1,405 |
| | 23,736 |
| | 22,493 |
| | 46,229 |
| | (1,953 | ) | | 2016 | | (A) |
| Apple Carr Village | | Muskegon, MI | | — | | 800 |
| | 6,172 |
| | 334 |
| | 13,629 |
| | 1,134 |
| | 19,801 |
| | 20,935 |
| | (4,090 | ) | | 2011 | | (A&C) |
| Apple Creek | | Amelia, OH | | B | | 543 |
| | 5,480 |
| | — |
| | 3,058 |
| | 543 |
| | 8,538 |
| | 9,081 |
| | (4,313 | ) | | 1999 | | (A) |
| Arbor Terrace RV Park | | Bradenton, FL | | C | | 456 |
| | 4,410 |
| | — |
| | 4,709 |
| | 456 |
| | 9,119 |
| | 9,575 |
| | (4,718 | ) | | 1996 | | (A) |
| Arbor Woods | | Ypsilanti, MI | | — | | 3,340 |
| | 12,385 |
| | — |
| | 10,778 |
| | 3,340 |
| | 23,163 |
| | 26,503 |
| | (1,346 | ) | | 2017 | | (A) |
Archview RV Resort & Campground (4) | | Moab, UT | | — | | 6,289 |
| | 8,419 |
| | — |
| | — |
| | 6,289 |
| | 8,419 |
| | 14,708 |
| | (156 | ) | | 2018 | | (A) |
| Ariana Village | | Lakeland, FL | | D | | 240 |
| | 2,195 |
| | — |
| | 1,585 |
| | 240 |
| | 3,780 |
| | 4,020 |
| | (2,224 | ) | | 1994 | | (A) |
| Arran Lake RV Resort & Campground | | Allenford, ON | | — | | 1,190 |
| | 1,175 |
| | (81 | ) | (1 | ) | 254 |
| | 1,109 |
| | 1,429 |
| | 2,538 |
| | (125 | ) | | 2016 | | (A) |
| Austin Lone Star RV Resort | | Austin, TX | | — | | 630 |
| | 7,913 |
| | — |
| | 2,075 |
| | 630 |
| | 9,988 |
| | 10,618 |
| | (870 | ) | | 2016 | | (A) |
| Autumn Ridge | | Ankeny, IA | | D | | 890 |
| | 8,054 |
| | (33 | ) | (3 | ) | 4,908 |
| | 857 |
| | 12,962 |
| | 13,819 |
| | (7,521 | ) | | 1996 | | (A) |
| Bahia Vista Estates | | Sarasota, FL | | — | | 6,810 |
| | 17,650 |
| | — |
| | 1,381 |
| | 6,810 |
| | 19,031 |
| | 25,841 |
| | (1,633 | ) | | 2016 | | (A) |
| Baker Acres RV Resort | | Zephyrhills, FL | | E | | 2,140 |
| | 11,880 |
| | — |
| | 1,939 |
| | 2,140 |
| | 13,819 |
| | 15,959 |
| | (1,216 | ) | | 2016 | | (A) |
| Bell Crossing | | Clarksville, TN | | B | | 717 |
| | 1,916 |
| | (13 | ) | (3 | ) | 8,364 |
| | 704 |
| | 10,280 |
| | 10,984 |
| | (5,798 | ) | | 1999 | | (A&C) |
| Big Timber Lake RV Camping Resort | | Cape May Court House, NJ | | A | | 590 |
| | 21,308 |
| | — |
| | 2,027 |
| | 590 |
| | 23,335 |
| | 23,925 |
| | (4,936 | ) | | 2013 | | (A) |
| Big Tree RV Resort | | Arcadia, FL | | — | | 1,250 |
| | 13,534 |
| | — |
| | 2,063 |
| | 1,250 |
| | 15,597 |
| | 16,847 |
| | (1,375 | ) | | 2016 | | (A) |
| Blazing Star | | San Antonio, TX | | C | | 750 |
| | 6,163 |
| | — |
| | 1,733 |
| | 750 |
| | 7,896 |
| | 8,646 |
| | (2,096 | ) | | 2012 | | (A) |
| Blue Heron Pines | | Punta Gorda, FL | | E | | 410 |
| | 35,294 |
| | — |
| | 4,195 |
| | 410 |
| | 39,489 |
| | 39,899 |
| | (4,447 | ) | | 2015 | | (A&C) |
| Blue Jay MH & RV Resort | | Dade City, FL | | — | | 2,040 |
| | 9,679 |
| | — |
| | 1,422 |
| | 2,040 |
| | 11,101 |
| | 13,141 |
| | (936 | ) | | 2016 | | (A) |
| Blue Star / Lost Dutchman MH & RV Resort | | Apache Junction, AZ | | E | | 5,120 |
| | 12,720 |
| | — |
| | 5,946 |
| | 5,120 |
| | 18,666 |
| | 23,786 |
| | (2,885 | ) | | 2014 | | (A) |
| Blueberry Hill | | Bushnell, FL | | C | | 3,830 |
| | 3,240 |
| | — |
| | 3,545 |
| | 3,830 |
| | 6,785 |
| | 10,615 |
| | (1,906 | ) | | 2012 | | (A) |
| Boulder Ridge | | Pflugerville, TX | | B | | 1,000 |
| | 500 |
| | 3,324 |
| | 32,283 |
| | 4,324 |
| | 32,783 |
| | 37,107 |
| | (12,231 | ) | | 1998 | | (C) |
| Branch Creek Estates | | Austin, TX | | D | | 796 |
| | 3,716 |
| | — |
| | 6,151 |
| | 796 |
| | 9,867 |
| | 10,663 |
| | (6,287 | ) | | 1995 | | (A&C) |
| Brentwood Estates | | Hudson, FL | | E | | 1,150 |
| | 9,359 |
| | — |
| | 2,593 |
| | 1,150 |
| | 11,952 |
| | 13,102 |
| | (1,490 | ) | | 2015 | | (A) |
| Brentwood Mobile Village | | Kentwood, MI | | B | | 385 |
| | 3,592 |
| | — |
| | 2,091 |
| | 385 |
| | 5,683 |
| | 6,068 |
| | (3,527 | ) | | 1996 | | (A) |
| Brentwood West | | Mesa, AZ | | — | | 13,620 |
| | 24,202 |
| | — |
| | 1,070 |
| | 13,620 |
| | 25,272 |
| | 38,892 |
| | (4,001 | ) | | 2014 | | (A) |
| Brookside Mobile Home Village | | Goshen, IN | | B | | 260 |
| | 1,080 |
| | 386 |
| | 18,380 |
| | 646 |
| | 19,460 |
| | 20,106 |
| | (9,204 | ) | | 1985 | | (A&C) |
| Brookside Village | | Kentwood, MI | | D | | 170 |
| | 5,564 |
| | — |
| | 323 |
| | 170 |
| | 5,887 |
| | 6,057 |
| | (1,496 | ) | | 2011 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| La Casa Blanca | | Apache Junction, AZ | | B | | 7,758 |
| | 4,370 |
| | 14,142 |
| | — |
| | 616 |
| | 4,370 |
| | 14,758 |
| | 19,128 |
| | (2,821 | ) | | 2014 | | (A) |
| La Costa Village | | Port Orange, FL | | D | | 51,088 |
| | 3,640 |
| | 62,315 |
| | — |
| | 2,025 |
| | 3,640 |
| | 64,340 |
| | 67,980 |
| | (9,854 | ) | | 2015 | | (A) |
| La Hacienda RV Resort | | Austin, TX | | C | | — |
| | 3,670 |
| | 22,225 |
| | — |
| | 965 |
| | 3,670 |
| | 23,190 |
| | 26,860 |
| | (4,396 | ) | | 2015 | | (A) |
| Lafayette Place | | Warren, MI | | A | | 2,069 |
| | 669 |
| | 5,979 |
| | — |
| | 7,864 |
| | 669 |
| | 13,843 |
| | 14,512 |
| | (8,178 | ) | | 1998 | | (A) |
| Lafontaine RV Resort & Campground | | Tiny, ON | | — | | — |
| | 1,290 |
| | 2,075 |
| | (31 | ) | (1 | ) | 2,561 |
| | 1,259 |
| | 4,636 |
| | 5,895 |
| | (386 | ) | | 2016 | | (A) |
| Lake Avenue RV Resort & Campground | | Cherry Valley, ON | | — | | — |
| | 670 |
| | 1,290 |
| | (16 | ) | (1 | ) | 725 |
| | 654 |
| | 2,015 |
| | 2,669 |
| | (242 | ) | | 2016 | | (A) |
| Lake in Wood RV Resort | | Narvon, PA | | A | | 10,066 |
| | 7,360 |
| | 7,097 |
| | — |
| | 2,834 |
| | 7,360 |
| | 9,931 |
| | 17,291 |
| | (2,703 | ) | | 2012 | | (A) |
| Lake Josephine RV Resort | | Sebring, FL | | C | | — |
| | 490 |
| | 2,830 |
| | — |
| | 1,025 |
| | 490 |
| | 3,855 |
| | 4,345 |
| | (310 | ) | | 2016 | | (A) |
| Lake Juliana Landings | | Auburndale, FL | | A | | 7,935 |
| | 335 |
| | 3,048 |
| | — |
| | 1,880 |
| | 335 |
| | 4,928 |
| | 5,263 |
| | (3,327 | ) | | 1994 | | (A) |
| Lake Pointe Village | | Mulberry, FL | | D | | 18,211 |
| | 480 |
| | 29,795 |
| | — |
| | 516 |
| | 480 |
| | 30,311 |
| | 30,791 |
| | (4,642 | ) | | 2015 | | (A) |
| Lake Rudolph Campground & RV Resort | | Santa Claus, IN | | A | | 16,788 |
| | 2,340 |
| | 28,113 |
| | — |
| | 9,197 |
| | 2,340 |
| | 37,310 |
| | 39,650 |
| | (9,933 | ) | | 2014 | | (A&C) |
| Lake San Marino RV Park | | Naples, FL | | A | | 9,371 |
| | 650 |
| | 5,760 |
| | — |
| | 5,134 |
| | 650 |
| | 10,894 |
| | 11,544 |
| | (6,033 | ) | | 1996 | | (A) |
| Lakefront | | Lakeside, CA | | D | | 26,751 |
| | 21,556 |
| | 17,440 |
| | — |
| | 1,078 |
| | 21,556 |
| | 18,518 |
| | 40,074 |
| | (2,273 | ) | | 2016 | | (A) |
| Lakeland RV Resort | | Lakeland, FL | | C | | — |
| | 1,730 |
| | 5,524 |
| | — |
| | 2,889 |
| | 1,730 |
| | 8,413 |
| | 10,143 |
| | (924 | ) | | 2016 | | (A) |
| Lakeshore Landings | | Orlando, FL | | D | | 13,395 |
| | 2,570 |
| | 19,481 |
| | — |
| | 1,395 |
| | 2,570 |
| | 20,876 |
| | 23,446 |
| | (3,987 | ) | | 2014 | | (A) |
| Lakeshore Villas | | Tampa, FL | | — | | — |
| | 3,080 |
| | 18,983 |
| | — |
| | 1,085 |
| | 3,080 |
| | 20,068 |
| | 23,148 |
| | (3,065 | ) | | 2015 | | (A) |
Lakeside (4) | | Terryville, CT | | C | | — |
| | 1,278 |
| | 3,445 |
| | — |
| | 13 |
| | 1,278 |
| | 3,458 |
| | 4,736 |
| | (57 | ) | | 2019 | | (A) |
| Lakeside Crossing | | Conway, SC | | D | | 13,056 |
| | 3,520 |
| | 31,615 |
| | — |
| | 13,044 |
| | 3,520 |
| | 44,659 |
| | 48,179 |
| | (5,531 | ) | | 2015 | | (A&C) |
| Lakeview | | Ypsilanti, MI | | — | | — |
| | 1,156 |
| | 10,903 |
| | (1 | ) | (3 | ) | 7,594 |
| | 1,155 |
| | 18,497 |
| | 19,652 |
| | (8,868 | ) | | 2004 | | (A) |
Lakeview CT (4) | | Danbury, CT | | C | | — |
| | 2,545 |
| | 8,884 |
| | — |
| | 34 |
| | 2,545 |
| | 8,918 |
| | 11,463 |
| | (148 | ) | | 2019 | | (A) |
| Lamplighter | | Port Orange, FL | | B | | 7,276 |
| | 1,330 |
| | 12,846 |
| | — |
| | 961 |
| | 1,330 |
| | 13,807 |
| | 15,137 |
| | (2,098 | ) | | 2015 | | (A) |
Laurel Heights (4) | | Uncasville, CT | | C | | — |
| | 1,678 |
| | 693 |
| | — |
| | — |
| | 1,678 |
| | 693 |
| | 2,371 |
| | (12 | ) | | 2019 | | (A) |
| Lazy J Ranch | | Arcata, CA | | — | | — |
| | 7,100 |
| | 6,838 |
| | — |
| | 134 |
| | 7,100 |
| | 6,972 |
| | 14,072 |
| | (628 | ) | | 2017 | | (A) |
| Leaf Verde RV Resort | | Buckeye, AZ | | — | | — |
| | 3,417 |
| | 8,437 |
| | 12 |
| | 534 |
| | 3,429 |
| | 8,971 |
| | 12,400 |
| | (475 | ) | | 2018 | | (A) |
Leisure Point Resort (4) | | Millsboro, DE | | — | | — |
| | 3,628 |
| | 41,291 |
| | — |
| | 17 |
| | 3,628 |
| | 41,308 |
| | 44,936 |
| | (713 | ) | | 2019 | | (A) |
| Leisure Village | | Belmont, MI | | — | | — |
| | 360 |
| | 8,219 |
| | 113 |
| | 2,138 |
| | 473 |
| | 10,357 |
| | 10,830 |
| | (2,593 | ) | | 2011 | | (A) |
| Lemon Wood | | Ventura, CA | | D | | 19,434 |
| | 19,540 |
| | 6,918 |
| | — |
| | 1,162 |
| | 19,540 |
| | 8,080 |
| | 27,620 |
| | (990 | ) | | 2016 | | (A) |
| Liberty Farm | | Valparaiso, IN | | C | | — |
| | 66 |
| | 1,201 |
| | 116 |
| | 4,168 |
| | 182 |
| | 5,369 |
| | 5,551 |
| | (2,936 | ) | | 1985 | | (A&C) |
| Lincoln Estates | | Holland, MI | | — | | — |
| | 455 |
| | 4,201 |
| | — |
| | 2,148 |
| | 455 |
| | 6,349 |
| | 6,804 |
| | (3,910 | ) | | 1996 | | (A) |
| Long Beach RV Resort & Campground | | Barnegat, NJ | | — | | — |
| | 710 |
| | 3,414 |
| | — |
| | 1,268 |
| | 710 |
| | 4,682 |
| | 5,392 |
| | (548 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Buttonwood Bay MH & RV Resort | | Sebring, FL | | D | | 1,952 |
| | 18,294 |
| | — |
| | 7,109 |
| | 1,952 |
| | 25,403 |
| | 27,355 |
| | (13,596 | ) | | 2001 | | (A) |
| Byron Center Mobile Village | | Byron Center, MI | | A | | 253 |
| | 2,402 |
| | — |
| | 2,002 |
| | 253 |
| | 4,404 |
| | 4,657 |
| | (2,792 | ) | | 1996 | | (A) |
| Caliente Sands | | Cathedral City, CA | | — | | 1,930 |
| | 6,710 |
| | — |
| | 221 |
| | 1,930 |
| | 6,931 |
| | 8,861 |
| | (358 | ) | | 2017 | | (A) |
| Camelot Villa | | Macomb, MI | | A | | 910 |
| | 21,211 |
| | — |
| | 11,972 |
| | 910 |
| | 33,183 |
| | 34,093 |
| | (7,307 | ) | | 2013 | | (A) |
| Campers Haven RV Resort | | Dennisport, MA | | — | | 14,260 |
| | 11,915 |
| | — |
| | 2,395 |
| | 14,260 |
| | 14,310 |
| | 28,570 |
| | (1,177 | ) | | 2016 | | (A) |
| Candlelight Manor | | South Daytona, FL | | — | | 3,140 |
| | 3,867 |
| | — |
| | 1,903 |
| | 3,140 |
| | 5,770 |
| | 8,910 |
| | (427 | ) | | 2016 | | (A) |
| Candlelight Village | | Sauk Village, IL | | A | | 600 |
| | 5,623 |
| | — |
| | 11,641 |
| | 600 |
| | 17,264 |
| | 17,864 |
| | (9,256 | ) | | 1996 | | (A) |
Canyonlands RV Resort & Campground (4) | | Moab, UT | | — | | 3,661 |
| | 7,415 |
| | — |
| | 41 |
| | 3,661 |
| | 7,456 |
| | 11,117 |
| | (148 | ) | | 2018 | | (A) |
| Cape May Crossing | | Cape May, NJ | | — | | 270 |
| | 1,693 |
| | — |
| | 476 |
| | 270 |
| | 2,169 |
| | 2,439 |
| | (185 | ) | | 2016 | | (A) |
| Cape May KOA | | Cape May, NJ | | C | | 650 |
| | 7,736 |
| | — |
| | 7,302 |
| | 650 |
| | 15,038 |
| | 15,688 |
| | (3,572 | ) | | 2013 | | (A) |
Carolina Pines RV Resort (5) | | Longs, SC | | — | | 5,900 |
| | — |
| | — |
| | 10,521 |
| | 5,900 |
| | 10,521 |
| | 16,421 |
| | — |
| | 2017 | | (A) |
| Carriage Cove | | Sanford, FL | | E | | 6,050 |
| | 21,235 |
| | — |
| | 2,341 |
| | 6,050 |
| | 23,576 |
| | 29,626 |
| | (3,752 | ) | | 2014 | | (A) |
| Carrington Pointe | | Ft. Wayne, IN | | — | | 1,076 |
| | 3,632 |
| | — |
| | 15,234 |
| | 1,076 |
| | 18,866 |
| | 19,942 |
| | (6,886 | ) | | 1997 | | (A&C) |
| Castaways RV Resort & Campground | | Berlin, MD | | A | | 14,320 |
| | 22,277 |
| | — |
| | 5,029 |
| | 14,320 |
| | 27,306 |
| | 41,626 |
| | (5,015 | ) | | 2014 | | (A&C) |
| Cava Robles RV Resort | | Paso Robles, CA | | — | | 1,396 |
| | — |
| | — |
| | 37,097 |
| | 1,396 |
| | 37,097 |
| | 38,493 |
| | (866 | ) | | 2014 | | (C) |
| Cave Creek | | Evans, CO | | B | | 2,241 |
| | 15,343 |
| | — |
| | 9,463 |
| | 2,241 |
| | 24,806 |
| | 27,047 |
| | (9,209 | ) | | 2004 | | (C) |
| Central Park MH & RV Resort | | Haines City, FL | | — | | 2,600 |
| | 10,405 |
| | — |
| | 1,482 |
| | 2,600 |
| | 11,887 |
| | 14,487 |
| | (1,040 | ) | | 2016 | | (A) |
| Chisholm Point Estates | | Pflugerville, TX | | — | | 609 |
| | 5,286 |
| | — |
| | 4,354 |
| | 609 |
| | 9,640 |
| | 10,249 |
| | (5,950 | ) | | 1995 | | (A&C) |
| Cider Mill Crossings | | Fenton, MI | | C | | 520 |
| | 1,568 |
| | — |
| | 31,130 |
| | 520 |
| | 32,698 |
| | 33,218 |
| | (6,890 | ) | | 2011 | | (A&C) |
| Cider Mill Village | | Middleville, MI | | A | | 250 |
| | 3,590 |
| | — |
| | 2,940 |
| | 250 |
| | 6,530 |
| | 6,780 |
| | (2,138 | ) | | 2011 | | (A) |
| Citrus Hill RV Resort | | Dade City, FL | | — | | 1,170 |
| | 2,422 |
| | — |
| | 1,268 |
| | 1,170 |
| | 3,690 |
| | 4,860 |
| | (297 | ) | | 2016 | | (A) |
| Clear Water Mobile Village | | South Bend, IN | | B | | 80 |
| | 1,270 |
| | 61 |
| | 6,419 |
| | 141 |
| | 7,689 |
| | 7,830 |
| | (4,222 | ) | | 1986 | | (A) |
| Club Naples | | Naples, FL | | C | | 5,780 |
| | 4,952 |
| | — |
| | 2,852 |
| | 5,780 |
| | 7,804 |
| | 13,584 |
| | (2,332 | ) | | 2011 | | (A) |
| Club Wildwood | | Hudson, FL | | E | | 14,206 |
| | 21,275 |
| | — |
| | 1,005 |
| | 14,206 |
| | 22,280 |
| | 36,486 |
| | (1,886 | ) | | 2016 | | (A) |
| Cobus Green Mobile Home Park | | Osceola, IN | | A | | 762 |
| | 7,037 |
| | — |
| | 8,264 |
| | 762 |
| | 15,301 |
| | 16,063 |
| | (8,928 | ) | | 1993 | | (A) |
| Colony in the Wood | | Port Orange, FL | | — | | 5,650 |
| | 26,828 |
| | 16 |
| | 445 |
| | 5,666 |
| | 27,273 |
| | 32,939 |
| | (466 | ) | | 2017 | | (A&C) |
| Comal Farms | | New Braunfels, TX | | C | | 1,455 |
| | 1,732 |
| | — |
| | 9,240 |
| | 1,455 |
| | 10,972 |
| | 12,427 |
| | (5,153 | ) | | 2000 | | (A&C) |
Compass RV Resort (4) | | St. Augustine, FL | | — | | 4,151 |
| | 10,480 |
| | — |
| | 37 |
| | 4,151 |
| | 10,517 |
| | 14,668 |
| | (193 | ) | | 2018 | | (A) |
| Continental North | | Davison, MI | | A | | 749 |
| | 6,089 |
| | — |
| | 16,332 |
| | 749 |
| | 22,421 |
| | 23,170 |
| | (11,407 | ) | | 1996 | | (A&C) |
| Country Acres Mobile Village | | Cadillac, MI | | A | | 380 |
| | 3,495 |
| | — |
| | 3,775 |
| | 380 |
| | 7,270 |
| | 7,650 |
| | (4,301 | ) | | 1996 | | (A) |
| Country Hills Village | | Hudsonville, MI | | A | | 340 |
| | 3,861 |
| | — |
| | 693 |
| | 340 |
| | 4,554 |
| | 4,894 |
| | (1,286 | ) | | 2011 | | (A) |
| Country Meadows Mobile Village | | Flat Rock, MI | | B | | 924 |
| | 7,583 |
| | 296 |
| | 19,467 |
| | 1,220 |
| | 27,050 |
| | 28,270 |
| | (16,314 | ) | | 1994 | | (A&C) |
| Country Meadows Village | | Caledonia, MI | | C | | 550 |
| | 5,555 |
| | — |
| | 8,218 |
| | 550 |
| | 13,773 |
| | 14,323 |
| | (2,543 | ) | | 2011 | | (A&C) |
| Country Squire MH & RV Resort | | Paisley, FL | | — | | 520 |
| | 1,719 |
| | — |
| | 1,272 |
| | 520 |
| | 2,991 |
| | 3,511 |
| | (255 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Majestic Oaks RV Resort | | Zephyrhills, FL | | E | | 4,465 |
| | 3,940 |
| | 4,725 |
| | 28 |
| | 1,972 |
| | 3,968 |
| | 6,697 |
| | 10,665 |
| | (867 | ) | | 2016 | | (A) |
| Maple Brook | | Matteson, IL | | D | | 41,935 |
| | 8,460 |
| | 48,865 |
| | — |
| | 642 |
| | 8,460 |
| | 49,507 |
| | 57,967 |
| | (9,375 | ) | | 2014 | | (A) |
| Maplewood Manor | | Brunswick, ME | | E | | 7,884 |
| | 1,770 |
| | 12,982 |
| | — |
| | 1,798 |
| | 1,770 |
| | 14,780 |
| | 16,550 |
| | (2,747 | ) | | 2014 | | (A) |
| Marco Naples RV Resort | | Naples, FL | | — | | — |
| | 2,790 |
| | 10,458 |
| | — |
| | 3,543 |
| | 2,790 |
| | 14,001 |
| | 16,791 |
| | (1,601 | ) | | 2016 | | (A) |
| Marina Cove | | Uncasville, CT | | C | | — |
| | 262 |
| | 365 |
| | — |
| | — |
| | 262 |
| | 365 |
| | 627 |
| | (6 | ) | | 2019 | | (A) |
Massey's Landing RV Resort (4) | | Millsboro, DE | | — | | — |
| | 2,755 |
| | 17,948 |
| | — |
| | 16,507 |
| | 2,755 |
| | 34,455 |
| | 37,210 |
| | (321 | ) | | 2019 | | (A) |
| Meadow Lake Estates | | White Lake, MI | | — | | — |
| | 1,188 |
| | 11,498 |
| | 127 |
| | 7,899 |
| | 1,315 |
| | 19,397 |
| | 20,712 |
| | (14,011 | ) | | 1994 | | (A) |
| Meadowbrook | | Charlotte, NC | | C | | — |
| | 1,310 |
| | 6,570 |
| | — |
| | 14,017 |
| | 1,310 |
| | 20,587 |
| | 21,897 |
| | (10,131 | ) | | 2000 | | (A&C) |
| Meadowbrook Estates | | Monroe, MI | | A | | 13,050 |
| | 431 |
| | 3,320 |
| | 379 |
| | 15,646 |
| | 810 |
| | 18,966 |
| | 19,776 |
| | (11,101 | ) | | 1986 | | (A) |
| Meadowbrook Village | | Tampa, FL | | B | | 11,738 |
| | 519 |
| | 4,728 |
| | — |
| | 1,209 |
| | 519 |
| | 5,937 |
| | 6,456 |
| | (4,499 | ) | | 1994 | | (A) |
| Meadowlands of Gibraltar | | Gibraltar, MI | | A | | 5,087 |
| | 640 |
| | 7,673 |
| | — |
| | 4,739 |
| | 640 |
| | 12,412 |
| | 13,052 |
| | (2,353 | ) | | 2015 | | (A) |
| Merrymeeting | | Brunswick, ME | | C | | — |
| | 250 |
| | 1,020 |
| | — |
| | 1,147 |
| | 250 |
| | 2,167 |
| | 2,417 |
| | (432 | ) | | 2014 | | (A) |
| Mi-Te-Jo Campground | | Milton, NH | | — | | — |
| | 1,416 |
| | 7,580 |
| | — |
| | 1,594 |
| | 1,416 |
| | 9,174 |
| | 10,590 |
| | (599 | ) | | 2018 | | (A) |
| Mill Creek MH & RV Resort | | Kissimmee, FL | | — | | — |
| | 1,400 |
| | 4,839 |
| | — |
| | 3,815 |
| | 1,400 |
| | 8,654 |
| | 10,054 |
| | (975 | ) | | 2016 | | (A) |
Millwood (4) | | Uncasville, CT | | C | | — |
| | 2,425 |
| | 8 |
| | — |
| | — |
| | 2,425 |
| | 8 |
| | 2,433 |
| | — |
| | 2019 | | (A&C) |
| Moab Valley RV Resort & Campground | | Moab, UT | | — | | — |
| | 3,693 |
| | 8,732 |
| | 1 |
| | 526 |
| | 3,694 |
| | 9,258 |
| | 12,952 |
| | (542 | ) | | 2018 | | (A) |
| Mountain View | | Mesa, AZ | | B | | 10,709 |
| | 5,490 |
| | 12,325 |
| | — |
| | 451 |
| | 5,490 |
| | 12,776 |
| | 18,266 |
| | (2,456 | ) | | 2014 | | (A) |
| Napa Valley | | Napa, CA | | D | | 19,067 |
| | 17,740 |
| | 11,675 |
| | — |
| | 1,024 |
| | 17,740 |
| | 12,699 |
| | 30,439 |
| | (1,566 | ) | | 2016 | | (A) |
| Naples RV Resort | | Naples, FL | | C | | — |
| | 3,640 |
| | 2,020 |
| | — |
| | 2,223 |
| | 3,640 |
| | 4,243 |
| | 7,883 |
| | (1,257 | ) | | 2011 | | (A) |
New England Village (4) | | Westbrook, CT | | C | | — |
| | 4,188 |
| | 1,444 |
| | — |
| | 42 |
| | 4,188 |
| | 1,486 |
| | 5,674 |
| | (24 | ) | | 2019 | | (A) |
| New Point RV Resort | | New Point, VA | | C | | — |
| | 1,550 |
| | 5,259 |
| | — |
| | 4,315 |
| | 1,550 |
| | 9,574 |
| | 11,124 |
| | (2,602 | ) | | 2013 | | (A) |
| New Ranch | | Clearwater, FL | | — | | — |
| | 2,270 |
| | 2,723 |
| | — |
| | 1,486 |
| | 2,270 |
| | 4,209 |
| | 6,479 |
| | (431 | ) | | 2016 | | (A) |
| North Lake Estates | | Moore Haven, FL | | C | | — |
| | 4,150 |
| | 3,486 |
| | — |
| | 2,014 |
| | 4,150 |
| | 5,500 |
| | 9,650 |
| | (1,880 | ) | | 2011 | | (A) |
| North Point Estates | | Pueblo, CO | | — | | — |
| | 1,582 |
| | 3,027 |
| | 1 |
| | 4,065 |
| | 1,583 |
| | 7,092 |
| | 8,675 |
| | (3,778 | ) | | 2001 | | (C) |
| Northville Crossing | | Northville, MI | | B | | 17,546 |
| | 1,236 |
| | 29,564 |
| | — |
| | 7,235 |
| | 1,236 |
| | 36,799 |
| | 38,035 |
| | (11,335 | ) | | 2012 | | (A) |
| Oak Creek | | Coarsegold, CA | | B | | 8,953 |
| | 4,760 |
| | 11,185 |
| | — |
| | 1,643 |
| | 4,760 |
| | 12,828 |
| | 17,588 |
| | (2,441 | ) | | 2014 | | (A) |
| Oak Crest | | Austin, TX | | B | | 21,917 |
| | 4,311 |
| | 12,611 |
| | 4,365 |
| | 15,949 |
| | 8,676 |
| | 28,560 |
| | 37,236 |
| | (9,158 | ) | | 2002 | | (C) |
Oak Grove (4) | | Plainville, CT | | C | | — |
| | 1,004 |
| | 1,660 |
| | — |
| | 1 |
| | 1,004 |
| | 1,661 |
| | 2,665 |
| | (28 | ) | | 2019 | | (A) |
| Oak Island Village | | East Lansing, MI | | — | | — |
| | 320 |
| | 6,843 |
| | — |
| | 3,112 |
| | 320 |
| | 9,955 |
| | 10,275 |
| | (3,061 | ) | | 2011 | | (A) |
| Oak Ridge | | Manteno, IL | | D | | 30,121 |
| | 1,090 |
| | 36,941 |
| | — |
| | 3,762 |
| | 1,090 |
| | 40,703 |
| | 41,793 |
| | (7,846 | ) | | 2014 | | (A) |
| Oakview Estates | | Arcadia, FL | | — | | — |
| | 850 |
| | 3,881 |
| | — |
| | 1,470 |
| | 850 |
| | 5,351 |
| | 6,201 |
| | (613 | ) | | 2016 | | (A) |
| Oakwood Village | | Miamisburg, OH | | B | | 31,451 |
| | 1,964 |
| | 6,401 |
| | (1 | ) | (3 | ) | 13,880 |
| | 1,963 |
| | 20,281 |
| | 22,244 |
| | (12,178 | ) | | 1998 | | (A&C) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Countryside Estates | | Mckean, PA | | E | | 320 |
| | 11,610 |
| | — |
| | 1,534 |
| | 320 |
| | 13,144 |
| | 13,464 |
| | (2,042 | ) | | 2014 | | (A) |
| Countryside Village | | Great Falls, MT | | C | | 430 |
| | 7,157 |
| | — |
| | 1,025 |
| | 430 |
| | 8,182 |
| | 8,612 |
| | (1,268 | ) | | 2014 | | (A) |
| Countryside Village of Atlanta | | Lawrenceville, GA | | C | | 1,274 |
| | 10,957 |
| | — |
| | 9,478 |
| | 1,274 |
| | 20,435 |
| | 21,709 |
| | (6,080 | ) | | 2004 | | (A&C) |
| Countryside Village of Gwinnett | | Buford, GA | | A | | 1,124 |
| | 9,539 |
| | — |
| | 2,418 |
| | 1,124 |
| | 11,957 |
| | 13,081 |
| | (5,831 | ) | | 2004 | | (A) |
| Countryside Village of Lake Lanier | | Buford, GA | | B | | 1,916 |
| | 16,357 |
| | — |
| | 8,348 |
| | 1,916 |
| | 24,705 |
| | 26,621 |
| | (11,509 | ) | | 2004 | | (A) |
| Craigleith RV Resort & Campground | | Clarksburg, ON | | — | | 420 |
| | 705 |
| | (28 | ) | (1 | ) | 458 |
| | 392 |
| | 1,163 |
| | 1,555 |
| | (74 | ) | | 2016 | | (A) |
| Creekwood Meadows | | Burton, MI | | A | | 808 |
| | 2,043 |
| | 404 |
| | 14,796 |
| | 1,212 |
| | 16,839 |
| | 18,051 |
| | (9,494 | ) | | 1997 | | (C) |
| Cutler Estates Mobile Village | | Grand Rapids, MI | | B | | 749 |
| | 6,941 |
| | — |
| | 3,795 |
| | 749 |
| | 10,736 |
| | 11,485 |
| | (6,665 | ) | | 1996 | | (A) |
| Cypress Greens | | Lake Alfred, FL | | E | | 960 |
| | 17,518 |
| | — |
| | 1,882 |
| | 960 |
| | 19,400 |
| | 20,360 |
| | (2,314 | ) | | 2015 | | (A) |
| Daytona Beach RV Resort | | Port Orange, FL | | — | | 2,300 |
| | 7,158 |
| | — |
| | 2,210 |
| | 2,300 |
| | 9,368 |
| | 11,668 |
| | (845 | ) | | 2016 | | (A) |
| Deer Lake RV Resort & Campground | | Huntsville, ON | | — | | 2,830 |
| | 4,260 |
| | (192 | ) | (1 | ) | 358 |
| | 2,638 |
| | 4,618 |
| | 7,256 |
| | (385 | ) | | 2016 | | (A) |
| Deerfield Run | | Anderson, IN | | C | | 990 |
| | 1,607 |
| | — |
| | 6,772 |
| | 990 |
| | 8,379 |
| | 9,369 |
| | (4,135 | ) | | 1999 | | (A&C) |
| Deerwood | | Orlando, FL | | B | | 6,920 |
| | 37,593 |
| | — |
| | 4,743 |
| | 6,920 |
| | 42,336 |
| | 49,256 |
| | (5,265 | ) | | 2015 | | (A) |
| Desert Harbor | | Apache Junction, AZ | | E | | 3,940 |
| | 14,891 |
| | — |
| | 314 |
| | 3,940 |
| | 15,205 |
| | 19,145 |
| | (2,367 | ) | | 2014 | | (A) |
| Driftwood RV Resort & Campground | | Clermont, NJ | | D | | 1,450 |
| | 29,851 |
| | — |
| | 2,985 |
| | 1,450 |
| | 32,836 |
| | 34,286 |
| | (5,689 | ) | | 2014 | | (A) |
| Dunedin RV Resort | | Dunedin, FL | | E | | 4,400 |
| | 16,923 |
| | — |
| | 2,370 |
| | 4,400 |
| | 19,293 |
| | 23,693 |
| | (1,657 | ) | | 2016 | | (A) |
| Dutton Mill Village | | Caledonia, MI | | A | | 370 |
| | 8,997 |
| | — |
| | 1,840 |
| | 370 |
| | 10,837 |
| | 11,207 |
| | (2,949 | ) | | 2011 | | (A) |
| Eagle Crest | | Firestone, CO | | D | | 2,015 |
| | 150 |
| | — |
| | 30,681 |
| | 2,015 |
| | 30,831 |
| | 32,846 |
| | (15,698 | ) | | 1998 | | (C) |
| East Fork Crossing | | Batavia, OH | | C | | 1,280 |
| | 6,302 |
| | — |
| | 19,369 |
| | 1,280 |
| | 25,671 |
| | 26,951 |
| | (10,734 | ) | | 2000 | | (A&C) |
| East Village Estates | | Washington Twp, MI | | A | | 1,410 |
| | 25,413 |
| | — |
| | 5,123 |
| | 1,410 |
| | 30,536 |
| | 31,946 |
| | (7,305 | ) | | 2012 | | (A) |
| Egelcraft | | Muskegon, MI | | D | | 690 |
| | 22,596 |
| | — |
| | 2,136 |
| | 690 |
| | 24,732 |
| | 25,422 |
| | (4,068 | ) | | 2014 | | (A) |
| Ellenton Gardens RV Resort | | Ellenton, FL | | E | | 2,130 |
| | 7,755 |
| | — |
| | 2,121 |
| | 2,130 |
| | 9,876 |
| | 12,006 |
| | (850 | ) | | 2016 | | (A) |
Emerald Coast MH & RV Resort (2) | | Panama City Beach, FL | | — | | 10,330 |
| | 9,070 |
| | — |
| | 531 |
| | 10,330 |
| | 9,601 |
| | 19,931 |
| | (518 | ) | | 2017 | | (A) |
| Fairfield Village | | Ocala, FL | | B | | 1,160 |
| | 18,673 |
| | — |
| | 475 |
| | 1,160 |
| | 19,148 |
| | 20,308 |
| | (2,319 | ) | | 2015 | | (A) |
| Fiesta Village MH & RV Resort | | Mesa, AZ | | — | | 2,830 |
| | 4,475 |
| | — |
| | 1,235 |
| | 2,830 |
| | 5,710 |
| | 8,540 |
| | (868 | ) | | 2014 | | (A) |
| Fisherman’s Cove | | Flint Twp, MI | | A | | 380 |
| | 3,438 |
| | — |
| | 4,369 |
| | 380 |
| | 7,807 |
| | 8,187 |
| | (4,982 | ) | | 1993 | | (A) |
| Forest Meadows | | Philomath, OR | | A | | 1,031 |
| | 2,050 |
| | — |
| | 588 |
| | 1,031 |
| | 2,638 |
| | 3,669 |
| | (1,440 | ) | | 1999 | | (A) |
| Forest View | | Homosassa, FL | | B | | 1,330 |
| | 22,056 |
| | — |
| | 735 |
| | 1,330 |
| | 22,791 |
| | 24,121 |
| | (2,748 | ) | | 2015 | | (A) |
| Fort Tatham RV Resort & Campground | | Sylva, NC | | — | | 110 |
| | 760 |
| | — |
| | 788 |
| | 110 |
| | 1,548 |
| | 1,658 |
| | (137 | ) | | 2016 | | (A) |
| Fort Whaley RV Resort & Campground | | Whaleyville, MD | | C | | 510 |
| | 5,194 |
| | — |
| | 6,219 |
| | 510 |
| | 11,413 |
| | 11,923 |
| | (1,077 | ) | | 2015 | | (A) |
| Four Seasons | | Elkhart, IN | | A | | 500 |
| | 4,811 |
| | — |
| | 3,474 |
| | 500 |
| | 8,285 |
| | 8,785 |
| | (4,194 | ) | | 2000 | | (A) |
| Frenchtown Villa / Elizabeth Woods | | Newport, MI | | E | | 1,450 |
| | 52,327 |
| | — |
| | 22,607 |
| | 1,450 |
| | 74,934 |
| | 76,384 |
| | (11,053 | ) | | 2014 | | (A&C) |
| Friendly Village of La Habra | | La Habra, CA | | D | | 26,956 |
| | 25,202 |
| | — |
| | 1,223 |
| | 26,956 |
| | 26,425 |
| | 53,381 |
| | (2,359 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Ocean Breeze Jensen Beach MH & RV Resort | | Jensen Beach, FL | | — | | — |
| | 19,026 |
| | 13,862 |
| | — |
| | 27,223 |
| | 19,026 |
| | 41,085 |
| | 60,111 |
| | (3,574 | ) | | 2016 | | (A&C) |
Ocean Breeze MH & RV Resort (6) | | Marathon, FL | | C | | — |
| | 2,330 |
| | 1,770 |
| | — |
| | 4,406 |
| | 2,330 |
| | 6,176 |
| | 8,506 |
| | (78 | ) | | 2016 | | (A) |
Ocean Pine (4) | | Garden City, SC | | C | | — |
| | 7,623 |
| | 35,333 |
| | — |
| | 1 |
| | 7,623 |
| | 35,334 |
| | 42,957 |
| | (735 | ) | | 2019 | | (A) |
| Ocean West | | McKinleyville, CA | | B | | 4,592 |
| | 5,040 |
| | 4,413 |
| | 349 |
| | 509 |
| | 5,389 |
| | 4,922 |
| | 10,311 |
| | (407 | ) | | 2017 | | (A) |
| Oceanside RV Resort & Campground | | Coos Bay, OR | | — | | — |
| | 2,718 |
| | 3,244 |
| | 1 |
| | 986 |
| | 2,719 |
| | 4,230 |
| | 6,949 |
| | (243 | ) | | 2018 | | (A) |
| Orange City MH & RV Resort | | Orange City, FL | | C | | — |
| | 920 |
| | 5,540 |
| | — |
| | 3,913 |
| | 920 |
| | 9,453 |
| | 10,373 |
| | (2,356 | ) | | 2011 | | (A) |
| Orange Tree Village | | Orange City, FL | | D | | 10,373 |
| | 283 |
| | 2,530 |
| | 15 |
| | 1,300 |
| | 298 |
| | 3,830 |
| | 4,128 |
| | (2,764 | ) | | 1994 | | (A) |
| Orchard Lake | | Milford, OH | | C | | — |
| | 395 |
| | 4,025 |
| | (15 | ) | (3 | ) | 2,544 |
| | 380 |
| | 6,569 |
| | 6,949 |
| | (3,307 | ) | | 1999 | | (A) |
| Paddock Park South | | Ocala, FL | | — | | — |
| | 630 |
| | 6,601 |
| | — |
| | 1,544 |
| | 630 |
| | 8,145 |
| | 8,775 |
| | (936 | ) | | 2016 | | (A) |
| Palm Creek Golf & RV Resort | | Casa Grande, AZ | | D | | 96,555 |
| | 11,836 |
| | 76,143 |
| | — |
| | 24,577 |
| | 11,836 |
| | 100,720 |
| | 112,556 |
| | (27,933 | ) | | 2012 | | (A&C) |
| Palm Key Village | | Davenport, FL | | D | | 15,900 |
| | 3,840 |
| | 15,661 |
| | — |
| | 811 |
| | 3,840 |
| | 16,472 |
| | 20,312 |
| | (2,602 | ) | | 2015 | | (A) |
| Palm Village | | Bradenton, FL | | — | | — |
| | 2,970 |
| | 2,849 |
| | — |
| | 1,716 |
| | 2,970 |
| | 4,565 |
| | 7,535 |
| | (485 | ) | | 2016 | | (A) |
Palos Verdes Shores MH & Golf Community (2) | | San Pedro, CA | | D | | 25,446 |
| | — |
| | 21,815 |
| | — |
| | 2,221 |
| | — |
| | 24,036 |
| | 24,036 |
| | (2,818 | ) | | 2016 | | (A) |
Pandion Ridge RV Resort (4) | | Orange Beach, AL | | — | | — |
| | 12,719 |
| | 7,515 |
| | — |
| | — |
| | 12,719 |
| | 7,515 |
| | 20,234 |
| | (146 | ) | | 2019 | | (A) |
| Park Place | | Sebastian, FL | | D | | 17,650 |
| | 1,360 |
| | 48,678 |
| | 67 |
| | 3,037 |
| | 1,427 |
| | 51,715 |
| | 53,142 |
| | (7,747 | ) | | 2015 | | (A) |
| Park Royale | | Pinellas Park, FL | | D | | 15,722 |
| | 670 |
| | 29,046 |
| | — |
| | 384 |
| | 670 |
| | 29,430 |
| | 30,100 |
| | (4,532 | ) | | 2015 | | (A) |
| Parkside Village | | Cheektowaga, NY | | — | | — |
| | 550 |
| | 10,402 |
| | — |
| | 307 |
| | 550 |
| | 10,709 |
| | 11,259 |
| | (2,021 | ) | | 2014 | | (A) |
| Pebble Creek | | Greenwood, IN | | C | | — |
| | 1,030 |
| | 5,074 |
| | — |
| | 11,486 |
| | 1,030 |
| | 16,560 |
| | 17,590 |
| | (7,161 | ) | | 2000 | | (A&C) |
| Pecan Branch | | Georgetown, TX | | C | | — |
| | 1,379 |
| | — |
| | 235 |
| | — |
| | 1,614 |
| | 18,016 |
| | 19,630 |
| | (2,970 | ) | | 1999 | | (C) |
| Pecan Park RV Resort | | Jacksonville, FL | | — | | — |
| | 2,000 |
| | 5,000 |
| | 1,420 |
| | 5,872 |
| | 3,420 |
| | 10,872 |
| | 14,292 |
| | (813 | ) | | 2016 | | (A) |
| Pelican Bay | | Micco, FL | | D | | 6,580 |
| | 470 |
| | 10,543 |
| | — |
| | 1,753 |
| | 470 |
| | 12,296 |
| | 12,766 |
| | (1,896 | ) | | 2015 | | (A) |
| Pelican RV Resort & Marina | | Marathon, FL | | C | | — |
| | 4,760 |
| | 4,742 |
| | — |
| | 1,658 |
| | 4,760 |
| | 6,400 |
| | 11,160 |
| | (877 | ) | | 2016 | | (A) |
| Pembroke Downs | | Chino, CA | | D | | 10,905 |
| | 9,560 |
| | 7,269 |
| | — |
| | 791 |
| | 9,560 |
| | 8,060 |
| | 17,620 |
| | (927 | ) | | 2016 | | (A) |
| Peter’s Pond RV Resort | | Sandwich, MA | | C | | — |
| | 4,700 |
| | 22,840 |
| | — |
| | 4,056 |
| | 4,700 |
| | 26,896 |
| | 31,596 |
| | (7,513 | ) | | 2013 | | (A) |
| Petoskey KOA RV Resort | | Petoskey, MI | | — | | — |
| | 214 |
| | 8,676 |
| | 652 |
| | 929 |
| | 866 |
| | 9,605 |
| | 10,471 |
| | (507 | ) | | 2018 | | (A) |
| Petoskey RV Resort | | Petoskey, MI | | — | | — |
| | 230 |
| | 3,270 |
| | — |
| | 4,439 |
| | 230 |
| | 7,709 |
| | 7,939 |
| | (846 | ) | | 2016 | | (A) |
| Pheasant Ridge | | Lancaster, PA | | A | | 20,833 |
| | 2,044 |
| | 19,279 |
| | — |
| | 1,083 |
| | 2,044 |
| | 20,362 |
| | 22,406 |
| | (11,475 | ) | | 2002 | | (A) |
| Pickerel Park RV Resort & Campground | | Napanee, ON | | — | | — |
| | 900 |
| | 2,125 |
| | (21 | ) | (1 | ) | 2,010 |
| | 879 |
| | 4,135 |
| | 5,014 |
| | (406 | ) | | 2016 | | (A) |
| Pin Oak Parc | | O’Fallon, MO | | — | | — |
| | 1,038 |
| | 3,250 |
| | 467 |
| | 16,211 |
| | 1,505 |
| | 19,461 |
| | 20,966 |
| | (9,676 | ) | | 1994 | | (A&C) |
| Pine Hills | | Middlebury, IN | | A | | 2,616 |
| | 72 |
| | 544 |
| | 60 |
| | 3,473 |
| | 132 |
| | 4,017 |
| | 4,149 |
| | (2,415 | ) | | 1980 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Friendly Village of Modesto | | Modesto, CA | | D | | 6,260 |
| | 20,885 |
| | — |
| | 1,370 |
| | 6,260 |
| | 22,255 |
| | 28,515 |
| | (1,870 | ) | | 2016 | | (A) |
| Friendly Village of Simi | | Simi Valley, CA | | D | | 14,906 |
| | 15,986 |
| | — |
| | 904 |
| | 14,906 |
| | 16,890 |
| | 31,796 |
| | (1,462 | ) | | 2016 | | (A) |
| Friendly Village of West Covina | | West Covina, CA | | D | | 14,520 |
| | 5,221 |
| | — |
| | 833 |
| | 14,520 |
| | 6,054 |
| | 20,574 |
| | (547 | ) | | 2016 | | (A) |
| Frontier Town RV Resort & Campground | | Berlin, MD | | C | | 18,960 |
| | 43,166 |
| | — |
| | 19,610 |
| | 18,960 |
| | 62,776 |
| | 81,736 |
| | (6,512 | ) | | 2015 | | (A) |
| Glen Haven RV Resort | | Zephyrhills, FL | | E | | 1,980 |
| | 8,373 |
| | — |
| | 1,290 |
| | 1,980 |
| | 9,663 |
| | 11,643 |
| | (874 | ) | | 2016 | | (A) |
| Glen Laurel | | Concord, NC | | C | | 1,641 |
| | 453 |
| | — |
| | 13,273 |
| | 1,641 |
| | 13,726 |
| | 15,367 |
| | (6,996 | ) | | 2001 | | (A&C) |
| Gold Coaster MH & RV Resort | | Homestead, FL | | A | | 446 |
| | 4,234 |
| | 172 |
| | 5,809 |
| | 618 |
| | 10,043 |
| | 10,661 |
| | (5,122 | ) | | 1997 | | (A) |
| Grand Bay | | Dunedin, FL | | — | | 3,460 |
| | 6,314 |
| | — |
| | 866 |
| | 3,460 |
| | 7,180 |
| | 10,640 |
| | (596 | ) | | 2016 | | (A) |
| Grand Lakes RV Resort | | Citra, FL | | C | | 5,280 |
| | 4,501 |
| | — |
| | 4,186 |
| | 5,280 |
| | 8,687 |
| | 13,967 |
| | (2,248 | ) | | 2012 | | (A) |
| Grand Mobile Estates | | Grand Rapids, MI | | B | | 374 |
| | 3,587 |
| | — |
| | 4,077 |
| | 374 |
| | 7,664 |
| | 8,038 |
| | (3,889 | ) | | 1996 | | (A) |
| Grand Oaks RV Resort & Campground | | Cayuga, ON | | — | | 970 |
| | 4,220 |
| | (66 | ) | (1 | ) | 656 |
| | 904 |
| | 4,876 |
| | 5,780 |
| | (370 | ) | | 2016 | | (A) |
| Grove Ridge RV Resort | | Dade City, FL | | E | | 1,290 |
| | 5,387 |
| | — |
| | 1,702 |
| | 1,290 |
| | 7,089 |
| | 8,379 |
| | (607 | ) | | 2016 | | (A) |
| Groves RV Resort | | Ft. Myers, FL | | A | | 249 |
| | 2,396 |
| | — |
| | 3,946 |
| | 249 |
| | 6,342 |
| | 6,591 |
| | (3,028 | ) | | 1997 | | (A) |
| Gulfstream Harbor | | Orlando, FL | | — | | 14,510 |
| | 78,930 |
| | — |
| | 5,313 |
| | 14,510 |
| | 84,243 |
| | 98,753 |
| | (10,240 | ) | | 2015 | | (A) |
| Gulliver’s Lake RV Resort & Campground | | Millgrove, ON | | — | | 2,950 |
| | 2,950 |
| | (200 | ) | (1 | ) | 286 |
| | 2,750 |
| | 3,236 |
| | 5,986 |
| | (274 | ) | | 2016 | | (A) |
| Gwynn’s Island RV Resort & Campground | | Gwynn, VA | | C | | 760 |
| | 595 |
| | — |
| | 1,801 |
| | 760 |
| | 2,396 |
| | 3,156 |
| | (613 | ) | | 2013 | | (A) |
| Hamlin | | Webberville, MI | | B | | 125 |
| | 1,675 |
| | 536 |
| | 13,227 |
| | 661 |
| | 14,902 |
| | 15,563 |
| | (6,811 | ) | | 1984 | | (A&C) |
| Heritage | | Temecula, CA | | D | | 13,200 |
| | 7,877 |
| | — |
| | 1,017 |
| | 13,200 |
| | 8,894 |
| | 22,094 |
| | (789 | ) | | 2016 | | (A) |
| Hickory Hills Village | | Battle Creek, MI | | — | | 760 |
| | 7,697 |
| | — |
| | 2,227 |
| | 760 |
| | 9,924 |
| | 10,684 |
| | (2,950 | ) | | 2011 | | (A) |
| Hidden Ridge RV Resort | | Hopkins, MI | | C | | 440 |
| | 893 |
| | — |
| | 3,397 |
| | 440 |
| | 4,290 |
| | 4,730 |
| | (1,020 | ) | | 2011 | | (A) |
| Hidden River RV Resort | | Riverview, FL | | — | | 3,950 |
| | 6,376 |
| | — |
| | 2,459 |
| | 3,950 |
| | 8,835 |
| | 12,785 |
| | (709 | ) | | 2016 | | (A) |
| Hidden Valley RV Resort & Campground | | Normandale, ON | | — | | 2,610 |
| | 4,170 |
| | (177 | ) | (1 | ) | 847 |
| | 2,433 |
| | 5,017 |
| | 7,450 |
| | (419 | ) | | 2016 | | (A) |
| High Point Park | | Frederica, DE | | — | | 898 |
| | 7,031 |
| | (42 | ) | (3 | ) | 7,433 |
| | 856 |
| | 14,464 |
| | 15,320 |
| | (6,972 | ) | | 1997 | | (A) |
| Hill Country Cottage and RV Resort | | New Braunfels, TX | | C | | 3,790 |
| | 27,200 |
| | — |
| | 2,588 |
| | 3,790 |
| | 29,788 |
| | 33,578 |
| | (3,007 | ) | | 2016 | | (A&C) |
| Holiday West Village | | Holland, MI | | B | | 340 |
| | 8,067 |
| | — |
| | 866 |
| | 340 |
| | 8,933 |
| | 9,273 |
| | (2,373 | ) | | 2011 | | (A) |
| Holly Forest Estates | | Holly Hill, FL | | D | | 920 |
| | 8,376 |
| | — |
| | 1,153 |
| | 920 |
| | 9,529 |
| | 10,449 |
| | (6,307 | ) | | 1997 | | (A) |
| Holly Village / Hawaiian Gardens | | Holly, MI | | B | | 1,514 |
| | 13,596 |
| | — |
| | 5,768 |
| | 1,514 |
| | 19,364 |
| | 20,878 |
| | (8,629 | ) | | 2004 | | (A) |
| Homosassa River RV Resort | | Homosassa Springs, FL | | — | | 1,520 |
| | 5,020 |
| | — |
| | 2,019 |
| | 1,520 |
| | 7,039 |
| | 8,559 |
| | (652 | ) | | 2016 | | (A) |
| Horseshoe Cove RV Resort | | Bradenton, FL | | E | | 9,466 |
| | 32,612 |
| | — |
| | 3,011 |
| | 9,466 |
| | 35,623 |
| | 45,089 |
| | (3,141 | ) | | 2016 | | (A) |
| Hunters Crossing | | Capac, MI | | C | | 430 |
| | 1,092 |
| | — |
| | 1,253 |
| | 430 |
| | 2,345 |
| | 2,775 |
| | (490 | ) | | 2012 | | (A) |
| Hunters Glen | | Wayland, MI | | C | | 1,102 |
| | 11,926 |
| | — |
| | 14,989 |
| | 1,102 |
| | 26,915 |
| | 28,017 |
| | (8,704 | ) | | 2004 | | (C) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Pine Ridge | | Prince George, VA | | B | | 11,802 |
| | 405 |
| | 2,397 |
| | 1 |
| | 22,207 |
| | 406 |
| | 24,604 |
| | 25,010 |
| | (5,299 | ) | | 1986 | | (A&C) |
| Pine Trace | | Houston, TX | | — | | — |
| | 2,907 |
| | 17,169 |
| | (212 | ) | (3 | ) | 15,896 |
| | 2,695 |
| | 33,065 |
| | 35,760 |
| | (14,406 | ) | | 2004 | | (A&C) |
| Pinebrook Village | | Kentwood, MI | | — | | — |
| | 130 |
| | 5,692 |
| | — |
| | 1,443 |
| | 130 |
| | 7,135 |
| | 7,265 |
| | (2,358 | ) | | 2011 | | (A) |
| Pismo Dunes RV Resort | | Pismo Beach, CA | | D | | 19,725 |
| | 11,070 |
| | 10,190 |
| | — |
| | 1,101 |
| | 11,070 |
| | 11,291 |
| | 22,361 |
| | (964 | ) | | 2017 | | (A) |
| Plantation Landings | | Haines City, FL | | D | | 12,314 |
| | 3,070 |
| | 30,973 |
| | — |
| | 2,419 |
| | 3,070 |
| | 33,392 |
| | 36,462 |
| | (5,048 | ) | | 2015 | | (A) |
| Pleasant Lake RV Resort | | Bradenton, FL | | E | | 12,625 |
| | 5,220 |
| | 20,403 |
| | — |
| | 3,592 |
| | 5,220 |
| | 23,995 |
| | 29,215 |
| | (2,898 | ) | | 2016 | | (A) |
| Pony Express RV Resort & Campground | | North Salt Lake, UT | | — | | — |
| | 3,429 |
| | 4,643 |
| | 1 |
| | 66 |
| | 3,430 |
| | 4,709 |
| | 8,139 |
| | (347 | ) | | 2018 | | (A) |
| Presidential Estates Mobile Village | | Hudsonville, MI | | B | | 23,007 |
| | 680 |
| | 6,314 |
| | — |
| | 5,755 |
| | 680 |
| | 12,069 |
| | 12,749 |
| | (7,522 | ) | | 1996 | | (A) |
| Rainbow MH & RV Resort | | Frostproof, FL | | A | | 4,508 |
| | 1,890 |
| | 5,682 |
| | — |
| | 4,461 |
| | 1,890 |
| | 10,143 |
| | 12,033 |
| | (2,905 | ) | | 2012 | | (A) |
| Rainbow Village of Largo | | Largo, FL | | E | | 9,070 |
| | 4,420 |
| | 12,529 |
| | — |
| | 3,431 |
| | 4,420 |
| | 15,960 |
| | 20,380 |
| | (2,005 | ) | | 2016 | | (A) |
| Rainbow Village of Zephyrhills | | Zephyrhills, FL | | D | | 9,200 |
| | 1,800 |
| | 9,884 |
| | — |
| | 2,179 |
| | 1,800 |
| | 12,063 |
| | 13,863 |
| | (1,464 | ) | | 2016 | | (A) |
Rancho Alipaz (2) | | San Juan Capistrano, CA | | D | | 12,915 |
| | — |
| | 2,856 |
| | 16,168 |
| | 891 |
| | 16,168 |
| | 3,747 |
| | 19,915 |
| | (443 | ) | | 2016 | | (A) |
| Rancho Caballero | | Riverside, CA | | D | | 15,626 |
| | 16,560 |
| | 12,446 |
| | — |
| | 1,213 |
| | 16,560 |
| | 13,659 |
| | 30,219 |
| | (1,588 | ) | | 2016 | | (A) |
| Rancho Mirage | | Apache Junction, AZ | | B | | 12,291 |
| | 7,510 |
| | 22,238 |
| | — |
| | 947 |
| | 7,510 |
| | 23,185 |
| | 30,695 |
| | (4,340 | ) | | 2014 | | (A) |
Red Oaks MH & RV Resort (2) | | Bushnell, FL | | — | | — |
| | 5,180 |
| | 20,499 |
| | — |
| | 5,555 |
| | 5,180 |
| | 26,054 |
| | 31,234 |
| | (3,140 | ) | | 2016 | | (A) |
| Regency Heights | | Clearwater, FL | | D | | 27,525 |
| | 11,330 |
| | 15,734 |
| | — |
| | 2,402 |
| | 11,330 |
| | 18,136 |
| | 29,466 |
| | (2,035 | ) | | 2016 | | (A) |
| Reserve at Fox Creek | | Bullhead City, AZ | | D | | 15,848 |
| | 1,950 |
| | 20,074 |
| | — |
| | 1,386 |
| | 1,950 |
| | 21,460 |
| | 23,410 |
| | (4,033 | ) | | 2014 | | (A) |
Reunion Lake RV Resort (4) | | Ponchatoula, LA | | — | | — |
| | 7,726 |
| | 16,146 |
| | — |
| | 136 |
| | 7,726 |
| | 16,282 |
| | 24,008 |
| | (302 | ) | | 2019 | | (A) |
| Richmond Place | | Richmond, MI | | A | | 1,510 |
| | 501 |
| | 2,040 |
| | (31 | ) | (3 | ) | 3,482 |
| | 470 |
| | 5,522 |
| | 5,992 |
| | (2,743 | ) | | 1998 | | (A) |
| Riptide RV Resort & Marina | | Key Largo, FL | | — | | — |
| | 2,440 |
| | 991 |
| | — |
| | 1,748 |
| | 2,440 |
| | 2,739 |
| | 5,179 |
| | (327 | ) | | 2016 | | (A) |
| River Haven Village | | Grand Haven, MI | | — | | — |
| | 1,800 |
| | 16,967 |
| | — |
| | 15,766 |
| | 1,800 |
| | 32,733 |
| | 34,533 |
| | (14,666 | ) | | 2001 | | (A) |
River Pines (4) | | Nashua, NH | | C | | — |
| | 2,739 |
| | 37,802 |
| | — |
| | 6 |
| | 2,739 |
| | 37,808 |
| | 40,547 |
| | (630 | ) | | 2019 | | (A) |
River Plantation RV Resort (4) | | Sevierville, TN | | — | | — |
| | 3,730 |
| | 19,736 |
| | — |
| | 225 |
| | 3,730 |
| | 19,961 |
| | 23,691 |
| | (366 | ) | | 2019 | | (A) |
| River Ranch | | Austin, TX | | C | | — |
| | 4,690 |
| | 843 |
| | 182 |
| | 41,585 |
| | 4,872 |
| | 42,428 |
| | 47,300 |
| | (12,285 | ) | | 2000 | | (A&C) |
| River Ridge Estates | | Austin, TX | | A | | 8,745 |
| | 3,201 |
| | 15,090 |
| | — |
| | 8,023 |
| | 3,201 |
| | 23,113 |
| | 26,314 |
| | (12,035 | ) | | 2002 | | (C) |
| River Run | | Granby, CO | | — | | — |
| | 8,642 |
| | — |
| | 130 |
| | — |
| | 8,772 |
| | 82,667 |
| | 91,439 |
| | (798 | ) | | 2018 | | (C) |
| Riverside Club | | Ruskin, FL | | D | | 39,768 |
| | 1,600 |
| | 66,207 |
| | — |
| | 7,688 |
| | 1,600 |
| | 73,895 |
| | 75,495 |
| | (10,799 | ) | | 2015 | | (A) |
| Rock Crusher Canyon RV Resort | | Crystal River, FL | | C | | — |
| | 420 |
| | 5,542 |
| | 168 |
| | 4,046 |
| | 588 |
| | 9,588 |
| | 10,176 |
| | (1,394 | ) | | 2015 | | (A) |
Rolling Hills (4) | | Storrs, CT | | C | | — |
| | 3,960 |
| | 3,755 |
| | — |
| | 8 |
| | 3,960 |
| | 3,763 |
| | 7,723 |
| | (63 | ) | | 2019 | | (A) |
| Roxbury Park | | Goshen, IN | | — | | — |
| | 1,057 |
| | 9,870 |
| | 1 |
| | 4,643 |
| | 1,058 |
| | 14,513 |
| | 15,571 |
| | (7,647 | ) | | 2001 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Indian Creek Park | | Ft. Myers Beach, FL | | D | | 3,832 |
| | 34,660 |
| | — |
| | 11,988 |
| | 3,832 |
| | 46,648 |
| | 50,480 |
| | (29,971 | ) | | 1996 | | (A) |
| Indian Creek RV & Camping Resort | | Geneva on the Lake, OH | | C | | 420 |
| | 20,791 |
| | (5 | ) | (3 | ) | 7,888 |
| | 415 |
| | 28,679 |
| | 29,094 |
| | (5,188 | ) | | 2013 | | (A&C) |
| Indian Wells RV Resort | | Indio, CA | | D | | 2,880 |
| | 19,470 |
| | — |
| | 3,213 |
| | 2,880 |
| | 22,683 |
| | 25,563 |
| | (1,969 | ) | | 2016 | | (A) |
| Island Lakes | | Merritt Island, FL | | D | | 700 |
| | 6,431 |
| | — |
| | 953 |
| | 700 |
| | 7,384 |
| | 8,084 |
| | (5,292 | ) | | 1995 | | (A) |
| Jellystone Park™ at Birchwood Acres MH & RV Resort | | Greenfield Park, NY | | A | | 560 |
| | 5,527 |
| | — |
| | 7,256 |
| | 560 |
| | 12,783 |
| | 13,343 |
| | (2,851 | ) | | 2013 | | (A) |
Jellystone Park™ at Gardiner (4) | | Gardiner, NY | | — | | 873 |
| | 28,406 |
| | — |
| | 449 |
| | 873 |
| | 28,855 |
| | 29,728 |
| | (669 | ) | | 2018 | | (A) |
Jellystone Park™ at Golden Valley (4) (5) | | Bostic, NC | | — | | 4,829 |
| | 4,260 |
| | — |
| | 9,412 |
| | 4,829 |
| | 13,672 |
| | 18,501 |
| | (119 | ) | | 2018 | | (A&C) |
Jellystone Park™ at Guadalupe River (4) | | Kerrville, TX | | — | | 2,519 |
| | 23,939 |
| | — |
| | 594 |
| | 2,519 |
| | 24,533 |
| | 27,052 |
| | (555 | ) | | 2018 | | (A) |
Jellystone Park™ at Hill Country (4) | | Canyon Lake, TX | | — | | 1,991 |
| | 20,709 |
| | — |
| | 74 |
| | 1,991 |
| | 20,783 |
| | 22,774 |
| | (428 | ) | | 2018 | | (A) |
| Jellystone Park™ at Larkspur | | Larkspur, CO | | — | | 1,880 |
| | 5,521 |
| | — |
| | 11,277 |
| | 1,880 |
| | 16,798 |
| | 18,678 |
| | (620 | ) | | 2016 | | (A) |
Jellystone Park™ at Luray(4) | | East Luray, VA | | — | | 3,164 |
| | 29,588 |
| | — |
| | 476 |
| | 3,164 |
| | 30,064 |
| | 33,228 |
| | (645 | ) | | 2018 | | (A) |
Jellystone Park™ at Maryland (4) | | Williamsport, MD | | — | | 2,096 |
| | 23,737 |
| | — |
| | 131 |
| | 2,096 |
| | 23,868 |
| | 25,964 |
| | (539 | ) | | 2018 | | (A) |
Jellystone Park™ at Memphis (4) | | Horn Lake, TN | | A | | 889 |
| | 6,846 |
| | — |
| | 16 |
| | 889 |
| | 6,862 |
| | 7,751 |
| | (151 | ) | | 2018 | | (A) |
Jellystone Park™ at Quarryville (4) | | Quarryville, PA | | — | | 3,882 |
| | 33,781 |
| | — |
| | 59 |
| | 3,882 |
| | 33,840 |
| | 37,722 |
| | (726 | ) | | 2018 | | (A) |
Jellystone Park™ at Tower Park (4) | | Lodi, CA | | — | | 2,560 |
| | 29,819 |
| | — |
| | 963 |
| | 2,560 |
| | 30,782 |
| | 33,342 |
| | (661 | ) | | 2018 | | (A) |
| Jellystone Park™ of Western New York | | North Java, NY | | A | | 870 |
| | 8,884 |
| | — |
| | 6,801 |
| | 870 |
| | 15,685 |
| | 16,555 |
| | (3,537 | ) | | 2013 | | (A) |
| Kensington Meadows | | Lansing, MI | | B | | 250 |
| | 2,699 |
| | — |
| | 8,762 |
| | 250 |
| | 11,461 |
| | 11,711 |
| | (6,971 | ) | | 1995 | | (A&C) |
| Kimberly Estates | | Newport, MI | | C | | 1,250 |
| | 6,160 |
| | — |
| | 10,017 |
| | 1,250 |
| | 16,177 |
| | 17,427 |
| | (1,772 | ) | | 2016 | | (A) |
| King’s Lake | | DeBary, FL | | D | | 280 |
| | 2,542 |
| | — |
| | 2,808 |
| | 280 |
| | 5,350 |
| | 5,630 |
| | (3,478 | ) | | 1994 | | (A) |
| King’s Pointe | | Lake Alfred, FL | | B | | 510 |
| | 16,763 |
| | — |
| | 502 |
| | 510 |
| | 17,265 |
| | 17,775 |
| | (2,069 | ) | | 2015 | | (A) |
| King’s Court Mobile Village | | Traverse City, MI | | — | | 1,473 |
| | 13,782 |
| | 269 |
| | 12,730 |
| | 1,742 |
| | 26,512 |
| | 28,254 |
| | (12,318 | ) | | 1996 | | (A&C) |
| Kings Manor | | Lakeland, FL | | — | | 2,270 |
| | 5,578 |
| | — |
| | 3,708 |
| | 2,270 |
| | 9,286 |
| | 11,556 |
| | (711 | ) | | 2016 | | (A) |
| Kissimmee Gardens | | Kissimmee, FL | | — | | 3,270 |
| | 14,402 |
| | — |
| | 1,369 |
| | 3,270 |
| | 15,771 |
| | 19,041 |
| | (1,351 | ) | | 2016 | | (A) |
| Kissimmee South MH & RV Resort | | Davenport, FL | | — | | 3,740 |
| | 6,819 |
| | — |
| | 2,763 |
| | 3,740 |
| | 9,582 |
| | 13,322 |
| | (785 | ) | | 2016 | | (A) |
| Knollwood Estates | | Allendale, MI | | A | | 400 |
| | 4,061 |
| | — |
| | 3,894 |
| | 400 |
| | 7,955 |
| | 8,355 |
| | (4,173 | ) | | 2001 | | (A) |
| La Casa Blanca | | Apache Junction, AZ | | B | | 4,370 |
| | 14,142 |
| | — |
| | 592 |
| | 4,370 |
| | 14,734 |
| | 19,104 |
| | (2,300 | ) | | 2014 | | (A) |
| La Costa Village | | Port Orange, FL | | D | | 3,640 |
| | 62,315 |
| | — |
| | 1,251 |
| | 3,640 |
| | 63,566 |
| | 67,206 |
| | (7,638 | ) | | 2015 | | (A) |
| La Hacienda RV Resort | | Austin, TX | | C | | 3,670 |
| | 22,225 |
| | — |
| | 926 |
| | 3,670 |
| | 23,151 |
| | 26,821 |
| | (3,421 | ) | | 2015 | | (A) |
| Lafayette Place | | Warren, MI | | A | | 669 |
| | 5,979 |
| | — |
| | 8,105 |
| | 669 |
| | 14,084 |
| | 14,753 |
| | (7,711 | ) | | 1998 | | (A) |
| Lafontaine RV Resort & Campground | | Tiny, ON | | — | | 1,290 |
| | 2,075 |
| | (87 | ) | (1 | ) | 1,354 |
| | 1,203 |
| | 3,429 |
| | 4,632 |
| | (236 | ) | | 2016 | | (A) |
| Lake Avenue RV Resort & Campground | | Cherry Valley, ON | | — | | 670 |
| | 1,290 |
| | (45 | ) | (1 | ) | 505 |
| | 625 |
| | 1,795 |
| | 2,420 |
| | (155 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Royal Country | | Miami, FL | | E | | 58,500 |
| | 2,290 |
| | 20,758 |
| | — |
| | 2,999 |
| | 2,290 |
| | 23,757 |
| | 26,047 |
| | (18,859 | ) | | 1994 | | (A) |
| Royal Palm Village | | Haines City, FL | | E | | 11,305 |
| | 1,730 |
| | 27,446 |
| | — |
| | 3,559 |
| | 1,730 |
| | 31,005 |
| | 32,735 |
| | (4,788 | ) | | 2015 | | (A) |
Royal Palms MH & RV Resort (2) | | Cathedral City, CA | | — | | — |
| | — |
| | 21,660 |
| | — |
| | 2,184 |
| | — |
| | 23,844 |
| | 23,844 |
| | (2,753 | ) | | 2016 | | (A) |
| Rudgate Clinton | | Clinton Township, MI | | A | | 25,221 |
| | 1,090 |
| | 23,664 |
| | — |
| | 9,213 |
| | 1,090 |
| | 32,877 |
| | 33,967 |
| | (9,065 | ) | | 2012 | | (A) |
| Rudgate Manor | | Sterling Heights, MI | | A | | 15,091 |
| | 1,440 |
| | 31,110 |
| | — |
| | 12,629 |
| | 1,440 |
| | 43,739 |
| | 45,179 |
| | (11,860 | ) | | 2012 | | (A) |
| Saco / Old Orchard Beach KOA | | Saco, ME | | C | | — |
| | 790 |
| | 3,576 |
| | — |
| | 5,404 |
| | 790 |
| | 8,980 |
| | 9,770 |
| | (2,010 | ) | | 2014 | | (A) |
| Saddle Oak Club | | Ocala, FL | | D | | 19,894 |
| | 730 |
| | 6,743 |
| | — |
| | 1,778 |
| | 730 |
| | 8,521 |
| | 9,251 |
| | (6,322 | ) | | 1995 | | (A) |
| Saddlebrook | | San Marcos, TX | | — | | — |
| | 1,703 |
| | 11,843 |
| | — |
| | 26,740 |
| | 1,703 |
| | 38,583 |
| | 40,286 |
| | (12,744 | ) | | 2002 | | (C) |
San Pedro RV Resort & Marina (6) | | Islamorada, FL | | — | | — |
| | 3,110 |
| | 2,416 |
| | — |
| | (1,146 | ) | | 3,110 |
| | 1,270 |
| | 4,380 |
| | (1 | ) | | 2016 | | (A) |
| Sandy Lake MH & RV Resort | | Carrolton, TX | | — | | — |
| | 730 |
| | 17,837 |
| | — |
| | 1,605 |
| | 730 |
| | 19,442 |
| | 20,172 |
| | (2,319 | ) | | 2016 | | (A) |
| Saralake Estates | | Sarasota, FL | | — | | — |
| | 6,540 |
| | 11,403 |
| | — |
| | 1,218 |
| | 6,540 |
| | 12,621 |
| | 19,161 |
| | (1,519 | ) | | 2016 | | (A) |
| Savanna Club | | Port St. Lucie, FL | | D | | 67,035 |
| | 12,810 |
| | 79,887 |
| | — |
| | 373 |
| | 12,810 |
| | 80,260 |
| | 93,070 |
| | (12,418 | ) | | 2015 | | (A&C) |
| Scio Farms Estates | | Ann Arbor, MI | | B | | 56,802 |
| | 2,300 |
| | 22,659 |
| | (11 | ) | (3 | ) | 15,698 |
| | 2,289 |
| | 38,357 |
| | 40,646 |
| | (25,128 | ) | | 1995 | | (A&C) |
| Sea Air Village | | Rehoboth Beach, DE | | — | | — |
| | 1,207 |
| | 10,179 |
| | — |
| | 2,586 |
| | 1,207 |
| | 12,765 |
| | 13,972 |
| | (7,032 | ) | | 1997 | | (A) |
Sea Breeze MH & RV Resort (6) | | Islamorada, FL | | — | | — |
| | 7,390 |
| | 4,616 |
| | 2,312 |
| | (2,426 | ) | | 9,702 |
| | 2,190 |
| | 11,892 |
| | (3 | ) | | 2016 | | (A) |
| Seaport RV Resort | | Old Mystic, CT | | C | | — |
| | 120 |
| | 290 |
| | — |
| | 2,497 |
| | 120 |
| | 2,787 |
| | 2,907 |
| | (1,252 | ) | | 2013 | | (A) |
| Seashore Campsites & RV Resort | | Cape May, NJ | | D | | 15,515 |
| | 1,030 |
| | 23,228 |
| | — |
| | 2,951 |
| | 1,030 |
| | 26,179 |
| | 27,209 |
| | (5,486 | ) | | 2014 | | (A) |
| Serendipity | | North Fort Myers, FL | | B | | 10,142 |
| | 1,160 |
| | 23,522 |
| | — |
| | 3,404 |
| | 1,160 |
| | 26,926 |
| | 28,086 |
| | (4,289 | ) | | 2015 | | (A) |
| Settler’s Rest RV Resort | | Zephyrhills, FL | | C | | — |
| | 1,760 |
| | 7,685 |
| | — |
| | 1,864 |
| | 1,760 |
| | 9,549 |
| | 11,309 |
| | (1,141 | ) | | 2016 | | (A) |
| Shadow Wood Village | | Hudson, FL | | — | | — |
| | 4,520 |
| | 3,898 |
| | 664 |
| | 4,103 |
| | 5,184 |
| | 8,001 |
| | 13,185 |
| | (625 | ) | | 2016 | | (A) |
| Shady Pines MH & RV Resort | | Galloway Township, NJ | | — | | — |
| | 1,060 |
| | 3,768 |
| | — |
| | 1,329 |
| | 1,060 |
| | 5,097 |
| | 6,157 |
| | (610 | ) | | 2016 | | (A) |
| Shady Road Villas | | Ocala, FL | | — | | — |
| | 450 |
| | 2,819 |
| | — |
| | 1,887 |
| | 450 |
| | 4,706 |
| | 5,156 |
| | (499 | ) | | 2016 | | (A) |
| Sheffield Estates | | Auburn Hills, MI | | C | | — |
| | 778 |
| | 7,165 |
| | — |
| | 2,204 |
| | 778 |
| | 9,369 |
| | 10,147 |
| | (4,474 | ) | | 2006 | | (A) |
Shelby Forest (4) | | Shelby Twp, MI | | — | | — |
| | 4,050 |
| | 42,362 |
| | — |
| | 87 |
| | 4,050 |
| | 42,449 |
| | 46,499 |
| | (895 | ) | | 2019 | | (A) |
Shelby West (4) | | Shelby Twp, MI | | — | | — |
| | 5,676 |
| | 38,933 |
| | — |
| | 7 |
| | 5,676 |
| | 38,940 |
| | 44,616 |
| | (714 | ) | | 2019 | | (A) |
| Shell Creek RV Resort & Marina | | Punta Gorda, FL | | E | | 6,423 |
| | 2,200 |
| | 9,662 |
| | — |
| | 2,455 |
| | 2,200 |
| | 12,117 |
| | 14,317 |
| | (1,366 | ) | | 2016 | | (A) |
| Sherkston Shores Beach Resort & Campground | | Sherkston, ON | | — | | — |
| | 22,750 |
| | 97,164 |
| | (110 | ) | (1 | ) | 8,899 |
| | 22,640 |
| | 106,063 |
| | 128,703 |
| | (12,728 | ) | | 2016 | | (A) |
| Siesta Bay RV Park | | Ft. Myers, FL | | A | | 30,733 |
| | 2,051 |
| | 18,549 |
| | 5 |
| | 5,041 |
| | 2,056 |
| | 23,590 |
| | 25,646 |
| | (16,378 | ) | | 1996 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Lake in Wood RV Resort | | Narvon, PA | | A | | 7,360 |
| | 7,097 |
| | — |
| | 2,107 |
| | 7,360 |
| | 9,204 |
| | 16,564 |
| | (2,296 | ) | | 2012 | | (A) |
| Lake Josephine RV Resort | | Sebring, FL | | — | | 490 |
| | 2,830 |
| | — |
| | 838 |
| | 490 |
| | 3,668 |
| | 4,158 |
| | (176 | ) | | 2016 | | (A) |
| Lake Juliana Landings | | Auburndale, FL | | A | | 335 |
| | 3,048 |
| | — |
| | 1,821 |
| | 335 |
| | 4,869 |
| | 5,204 |
| | (3,198 | ) | | 1994 | | (A) |
| Lake Pointe Village | | Mulberry, FL | | D | | 480 |
| | 29,795 |
| | — |
| | 444 |
| | 480 |
| | 30,239 |
| | 30,719 |
| | (3,619 | ) | | 2015 | | (A) |
| Lake Rudolph Campground & RV Resort | | Santa Claus, IN | | A | | 2,340 |
| | 28,113 |
| | — |
| | 8,092 |
| | 2,340 |
| | 36,205 |
| | 38,545 |
| | (7,922 | ) | | 2014 | | (A&C) |
| Lake San Marino RV Park | | Naples, FL | | A | | 650 |
| | 5,760 |
| | — |
| | 4,576 |
| | 650 |
| | 10,336 |
| | 10,986 |
| | (5,575 | ) | | 1996 | | (A) |
| Lakefront | | Lakeside, CA | | D | | 21,556 |
| | 17,440 |
| | — |
| | 1,050 |
| | 21,556 |
| | 18,490 |
| | 40,046 |
| | (1,608 | ) | | 2016 | | (A) |
| Lakeland RV Resort | | Lakeland, FL | | — | | 1,730 |
| | 5,524 |
| | — |
| | 1,812 |
| | 1,730 |
| | 7,336 |
| | 9,066 |
| | (607 | ) | | 2016 | | (A) |
| Lakeshore Landings | | Orlando, FL | | D | | 2,570 |
| | 19,481 |
| | — |
| | 1,351 |
| | 2,570 |
| | 20,832 |
| | 23,402 |
| | (3,222 | ) | | 2014 | | (A) |
| Lakeshore Villas | | Tampa, FL | | B | | 3,080 |
| | 18,983 |
| | — |
| | 843 |
| | 3,080 |
| | 19,826 |
| | 22,906 |
| | (2,363 | ) | | 2015 | | (A) |
| Lakeside Crossing | | Conway, SC | | D | | 3,520 |
| | 31,615 |
| | — |
| | 8,838 |
| | 3,520 |
| | 40,453 |
| | 43,973 |
| | (4,162 | ) | | 2015 | | (A&C) |
| Lakeview | | Ypsilanti, MI | | C | | 1,156 |
| | 10,903 |
| | — |
| | 7,166 |
| | 1,156 |
| | 18,069 |
| | 19,225 |
| | (8,051 | ) | | 2004 | | (A) |
| Lamplighter | | Port Orange, FL | | B | | 1,330 |
| | 12,846 |
| | — |
| | 695 |
| | 1,330 |
| | 13,541 |
| | 14,871 |
| | (1,629 | ) | | 2015 | | (A) |
| Lazy J Ranch | | Arcata, CA | | — | | 7,100 |
| | 6,838 |
| | — |
| | 84 |
| | 7,100 |
| | 6,922 |
| | 14,022 |
| | (371 | ) | | 2017 | | (A) |
Leaf Verde RV Resort (4) | | Buckeye, AZ | | — | | 3,417 |
| | 8,437 |
| | — |
| | — |
| | 3,417 |
| | 8,437 |
| | 11,854 |
| | (1 | ) | | 2018 | | (A) |
| Leisure Village | | Belmont, MI | | C | | 360 |
| | 8,219 |
| | 113 |
| | 1,612 |
| | 473 |
| | 9,831 |
| | 10,304 |
| | (2,233 | ) | | 2011 | | (A) |
| Lemon Wood | | Ventura, CA | | D | | 19,540 |
| | 6,918 |
| | — |
| | 1,068 |
| | 19,540 |
| | 7,986 |
| | 27,526 |
| | (692 | ) | | 2016 | | (A) |
| Liberty Farm | | Valparaiso, IN | | C | | 66 |
| | 1,201 |
| | 116 |
| | 3,630 |
| | 182 |
| | 4,831 |
| | 5,013 |
| | (2,829 | ) | | 1985 | | (A&C) |
| Lincoln Estates | | Holland, MI | | — | | 455 |
| | 4,201 |
| | — |
| | 2,625 |
| | 455 |
| | 6,826 |
| | 7,281 |
| | (4,150 | ) | | 1996 | | (A) |
| Long Beach RV Resort & Campground | | Barnegat, NJ | | — | | 710 |
| | 3,414 |
| | — |
| | 1,174 |
| | 710 |
| | 4,588 |
| | 5,298 |
| | (373 | ) | | 2016 | | (A) |
| Majestic Oaks RV Resort | | Zephyrhills, FL | | E | | 3,940 |
| | 4,725 |
| | 28 |
| | 1,984 |
| | 3,968 |
| | 6,709 |
| | 10,677 |
| | (571 | ) | | 2016 | | (A) |
| Maple Brook | | Matteson, IL | | D | | 8,460 |
| | 48,865 |
| | — |
| | 574 |
| | 8,460 |
| | 49,439 |
| | 57,899 |
| | (7,676 | ) | | 2014 | | (A) |
| Maplewood Manor | | Brunswick, ME | | E | | 1,770 |
| | 12,982 |
| | — |
| | 1,513 |
| | 1,770 |
| | 14,495 |
| | 16,265 |
| | (2,255 | ) | | 2014 | | (A) |
| Marco Naples RV Resort | | Naples, FL | | — | | 2,790 |
| | 10,458 |
| | — |
| | 2,308 |
| | 2,790 |
| | 12,766 |
| | 15,556 |
| | (1,104 | ) | | 2016 | | (A) |
| Meadow Lake Estates | | White Lake, MI | | — | | 1,188 |
| | 11,498 |
| | 127 |
| | 8,277 |
| | 1,315 |
| | 19,775 |
| | 21,090 |
| | (13,621 | ) | | 1994 | | (A) |
| Meadowbrook | | Charlotte, NC | | C | | 1,310 |
| | 6,570 |
| | — |
| | 14,531 |
| | 1,310 |
| | 21,101 |
| | 22,411 |
| | (9,507 | ) | | 2000 | | (A&C) |
| Meadowbrook Estates | | Monroe, MI | | A | | 431 |
| | 3,320 |
| | 379 |
| | 14,782 |
| | 810 |
| | 18,102 |
| | 18,912 |
| | (10,729 | ) | | 1986 | | (A) |
| Meadowbrook Village | | Tampa, FL | | B | | 519 |
| | 4,728 |
| | — |
| | 1,249 |
| | 519 |
| | 5,977 |
| | 6,496 |
| | (4,321 | ) | | 1994 | | (A) |
| Meadowlands of Gibraltar | | Gibraltar, MI | | A | | 640 |
| | 7,673 |
| | — |
| | 4,913 |
| | 640 |
| | 12,586 |
| | 13,226 |
| | (1,848 | ) | | 2015 | | (A) |
| Merrymeeting | | Brunswick, ME | | C | | 250 |
| | 1,020 |
| | — |
| | 881 |
| | 250 |
| | 1,901 |
| | 2,151 |
| | (342 | ) | | 2014 | | (A) |
| Mill Creek MH & RV Resort | | Kissimmee, FL | | — | | 1,400 |
| | 4,839 |
| | — |
| | 2,530 |
| | 1,400 |
| | 7,369 |
| | 8,769 |
| | (632 | ) | | 2016 | | (A) |
Mi-Te-Jo Campground (4) | | Milton, NH | | — | | 1,416 |
| | 7,580 |
| | — |
| | 482 |
| | 1,416 |
| | 8,062 |
| | 9,478 |
| | (166 | ) | | 2018 | | (A) |
Moab Valley RV Resort & Campground (4) | | Moab, UT | | — | | 3,693 |
| | 8,732 |
| | — |
| | 244 |
| | 3,693 |
| | 8,976 |
| | 12,669 |
| | (178 | ) | | 2018 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Mountain View | | Mesa, AZ | | B | | 5,490 |
| | 12,325 |
| | — |
| | 407 |
| | 5,490 |
| | 12,732 |
| | 18,222 |
| | (1,998 | ) | | 2014 | | (A) |
| Napa Valley | | Napa, CA | | D | | 17,740 |
| | 11,675 |
| | — |
| | 680 |
| | 17,740 |
| | 12,355 |
| | 30,095 |
| | (1,109 | ) | | 2016 | | (A) |
| Naples RV Resort | | Naples, FL | | C | | 3,640 |
| | 2,020 |
| | — |
| | 1,958 |
| | 3,640 |
| | 3,978 |
| | 7,618 |
| | (1,108 | ) | | 2011 | | (A) |
| New Point RV Resort | | New Point, VA | | C | | 1,550 |
| | 5,259 |
| | — |
| | 4,073 |
| | 1,550 |
| | 9,332 |
| | 10,882 |
| | (2,186 | ) | | 2013 | | (A) |
| New Ranch | | Clearwater, FL | | — | | 2,270 |
| | 2,723 |
| | — |
| | 944 |
| | 2,270 |
| | 3,667 |
| | 5,937 |
| | (293 | ) | | 2016 | | (A) |
| North Lake Estates | | Moore Haven, FL | | C | | 4,150 |
| | 3,486 |
| | — |
| | 1,801 |
| | 4,150 |
| | 5,287 |
| | 9,437 |
| | (1,631 | ) | | 2011 | | (A) |
| North Point Estates | | Pueblo, CO | | C | | 1,582 |
| | 3,027 |
| | — |
| | 4,550 |
| | 1,582 |
| | 7,577 |
| | 9,159 |
| | (3,941 | ) | | 2001 | | (C) |
| Northville Crossing | | Northville, MI | | B | | 1,236 |
| | 29,564 |
| | — |
| | 8,360 |
| | 1,236 |
| | 37,924 |
| | 39,160 |
| | (10,422 | ) | | 2012 | | (A) |
| Oak Creek | | Coarsegold, CA | | B | | 4,760 |
| | 11,185 |
| | — |
| | 1,483 |
| | 4,760 |
| | 12,668 |
| | 17,428 |
| | (1,967 | ) | | 2014 | | (A) |
| Oak Crest | | Austin, TX | | B | | 4,311 |
| | 12,611 |
| | 4,365 |
| | 8,101 |
| | 8,676 |
| | 20,712 |
| | 29,388 |
| | (8,909 | ) | | 2002 | | (C) |
| Oak Island Village | | East Lansing, MI | | — | | 320 |
| | 6,843 |
| | — |
| | 2,970 |
| | 320 |
| | 9,813 |
| | 10,133 |
| | (2,798 | ) | | 2011 | | (A) |
| Oak Ridge | | Manteno, IL | | D | | 1,090 |
| | 36,941 |
| | — |
| | 3,255 |
| | 1,090 |
| | 40,196 |
| | 41,286 |
| | (6,291 | ) | | 2014 | | (A) |
| Oakview Estates | | Arcadia, FL | | — | | 850 |
| | 3,881 |
| | — |
| | 1,221 |
| | 850 |
| | 5,102 |
| | 5,952 |
| | (415 | ) | | 2016 | | (A) |
| Oakwood Village | | Miamisburg, OH | | B | | 1,964 |
| | 6,401 |
| | — |
| | 14,183 |
| | 1,964 |
| | 20,584 |
| | 22,548 |
| | (11,699 | ) | | 1998 | | (A&C) |
| Ocean Breeze Jensen Beach MH & RV Resort | | Jensen Beach, FL | | — | | 19,026 |
| | 13,862 |
| | — |
| | 22,498 |
| | 19,026 |
| | 36,360 |
| | 55,386 |
| | (2,016 | ) | | 2016 | | (A&C) |
Ocean Breeze MH & RV Resort (6) | | Marathon, FL | | — | | 2,330 |
| | 1,770 |
| | — |
| | (150 | ) | | 2,330 |
| | 1,620 |
| | 3,950 |
| | — |
| | 2016 | | (A) |
| Ocean West | | McKinleyville, CA | | B | | 5,040 |
| | 4,413 |
| | 345 |
| | 149 |
| | 5,385 |
| | 4,562 |
| | 9,947 |
| | (239 | ) | | 2017 | | (A) |
Oceanside RV Resort & Campground (4) | | Coos Bay, OR | | — | | 2,718 |
| | 3,244 |
| | — |
| | 54 |
| | 2,718 |
| | 3,298 |
| | 6,016 |
| | (73 | ) | | 2018 | | (A) |
| Orange City MH & RV Resort | | Orange City, FL | | C | | 920 |
| | 5,540 |
| | — |
| | 2,334 |
| | 920 |
| | 7,874 |
| | 8,794 |
| | (2,002 | ) | | 2011 | | (A) |
| Orange Tree Village | | Orange City, FL | | D | | 283 |
| | 2,530 |
| | 15 |
| | 1,121 |
| | 298 |
| | 3,651 |
| | 3,949 |
| | (2,642 | ) | | 1994 | | (A) |
| Orchard Lake | | Milford, OH | | C | | 395 |
| | 4,025 |
| | (15 | ) | (3 | ) | 2,168 |
| | 380 |
| | 6,193 |
| | 6,573 |
| | (3,059 | ) | | 1999 | | (A) |
| Paddock Park South | | Ocala, FL | | — | | 630 |
| | 6,601 |
| | — |
| | 1,165 |
| | 630 |
| | 7,766 |
| | 8,396 |
| | (632 | ) | | 2016 | | (A) |
| Palm Creek Golf & RV Resort | | Casa Grande, AZ | | D | | 11,836 |
| | 76,143 |
| | — |
| | 23,627 |
| | 11,836 |
| | 99,770 |
| | 111,606 |
| | (23,840 | ) | | 2012 | | (A&C) |
| Palm Key Village | | Davenport, FL | | B | | 3,840 |
| | 15,661 |
| | — |
| | 934 |
| | 3,840 |
| | 16,595 |
| | 20,435 |
| | (2,067 | ) | | 2015 | | (A) |
| Palm Village | | Bradenton, FL | | — | | 2,970 |
| | 2,849 |
| | — |
| | 1,174 |
| | 2,970 |
| | 4,023 |
| | 6,993 |
| | (319 | ) | | 2016 | | (A) |
Palos Verdes Shores MH & Golf Community (2) | | San Pedro, CA | | D | | — |
| | 21,815 |
| | — |
| | 2,043 |
| | — |
| | 23,858 |
| | 23,858 |
| | (1,986 | ) | | 2016 | | (A) |
| Park Place | | Sebastian, FL | | D | | 1,360 |
| | 48,678 |
| | 67 |
| | 2,856 |
| | 1,427 |
| | 51,534 |
| | 52,961 |
| | (5,975 | ) | | 2015 | | (A) |
| Park Royale | | Pinellas Park, FL | | D | | 670 |
| | 29,046 |
| | — |
| | 372 |
| | 670 |
| | 29,418 |
| | 30,088 |
| | (3,540 | ) | | 2015 | | (A) |
| Parkside Village | | Cheektowaga, NY | | B | | 550 |
| | 10,402 |
| | — |
| | 292 |
| | 550 |
| | 10,694 |
| | 11,244 |
| | (1,646 | ) | | 2014 | | (A) |
| Pebble Creek | | Greenwood, IN | | C | | 1,030 |
| | 5,074 |
| | — |
| | 9,182 |
| | 1,030 |
| | 14,256 |
| | 15,286 |
| | (6,632 | ) | | 2000 | | (A&C) |
| Pecan Branch | | Georgetown, TX | | C | | 1,379 |
| | — |
| | 235 |
| | 10,234 |
| | 1,614 |
| | 10,234 |
| | 11,848 |
| | (2,267 | ) | | 1999 | | (C) |
| Pecan Park RV Resort | | Jacksonville, FL | | — | | 2,000 |
| | 5,000 |
| | 1,417 |
| | 1,051 |
| | 3,417 |
| | 6,051 |
| | 9,468 |
| | (493 | ) | | 2016 | | (A) |
| Pelican Bay | | Micco, FL | | D | | 470 |
| | 10,543 |
| | — |
| | 1,646 |
| | 470 |
| | 12,189 |
| | 12,659 |
| | (1,428 | ) | | 2015 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Silver Birches RV Resort & Campground | | Lambton Shores, ON | | — | | — |
| | 880 |
| | 1,540 |
| | (21 | ) | (1 | ) | 516 |
| | 859 |
| | 2,056 |
| | 2,915 |
| | (259 | ) | | 2016 | | (A) |
| Silver Creek RV Resort | | Mears, MI | | — | | — |
| | 605 |
| | 7,014 |
| | 3 |
| | 1,062 |
| | 608 |
| | 8,076 |
| | 8,684 |
| | (448 | ) | | 2018 | | (C) |
| Silver Springs | | Clinton Township, MI | | B | | 6,938 |
| | 861 |
| | 16,595 |
| | — |
| | 3,521 |
| | 861 |
| | 20,116 |
| | 20,977 |
| | (5,954 | ) | | 2012 | | (A) |
| Sky Harbor | | Cheektowaga, NY | | A | | 13,705 |
| | 2,318 |
| | 24,253 |
| | — |
| | 6,058 |
| | 2,318 |
| | 30,311 |
| | 32,629 |
| | (5,427 | ) | | 2014 | | (A) |
| Skyline | | Fort Collins, CO | | E | | 9,882 |
| | 2,260 |
| | 12,120 |
| | — |
| | 759 |
| | 2,260 |
| | 12,879 |
| | 15,139 |
| | (2,490 | ) | | 2014 | | (A) |
Slickrock RV Resort & Campground (4) | | Moab, UT | | — | | — |
| | — |
| | — |
| | — |
| | 8,515 |
| | — |
| | 8,515 |
| | 8,515 |
| | — |
| | 2019 | | (A) |
| Smith Creek Crossing | | Granby, CO | | — | | — |
| | 1,395 |
| | — |
| | 20 |
| | — |
| | 1,415 |
| | 11,986 |
| | 13,401 |
| | (1 | ) | | 2018 | | (C) |
| Southern Charm MH & RV Resort | | Zephyrhills, FL | | E | | 11,767 |
| | 4,940 |
| | 17,366 |
| | — |
| | 2,691 |
| | 4,940 |
| | 20,057 |
| | 24,997 |
| | (2,482 | ) | | 2016 | | (A) |
| Southern Hills / Northridge Place | | Stewartville, MN | | E | | 7,576 |
| | 360 |
| | 12,723 |
| | — |
| | 12,551 |
| | 360 |
| | 25,274 |
| | 25,634 |
| | (4,739 | ) | | 2014 | | (A&C) |
Southern Palms (4) | | Ladson, SC | | C | | — |
| | 2,351 |
| | 9,441 |
| | — |
| | 15 |
| | 2,351 |
| | 9,456 |
| | 11,807 |
| | (597 | ) | | 2019 | | (A) |
| Southern Pines | | Bradenton, FL | | — | | — |
| | 1,710 |
| | 3,337 |
| | — |
| | 1,323 |
| | 1,710 |
| | 4,660 |
| | 6,370 |
| | (570 | ) | | 2016 | | (A) |
| Southfork | | Belton, MO | | A | | 6,894 |
| | 1,000 |
| | 9,011 |
| | — |
| | 9,350 |
| | 1,000 |
| | 18,361 |
| | 19,361 |
| | (9,230 | ) | | 1997 | | (A) |
| Southport Springs Golf & Country Club | | Zephyrhills, FL | | D | | 34,500 |
| | 15,060 |
| | 17,229 |
| | — |
| | 3,551 |
| | 15,060 |
| | 20,780 |
| | 35,840 |
| | (3,110 | ) | | 2015 | | (A&C) |
Southside Landing (4) | | Cambridge, MD | | C | | — |
| | 1,004 |
| | 2,535 |
| | — |
| | 6 |
| | 1,004 |
| | 2,541 |
| | 3,545 |
| | (42 | ) | | 2019 | | (A) |
| Southwood Village | | Grand Rapids, MI | | — | | — |
| | 300 |
| | 11,517 |
| | — |
| | 1,876 |
| | 300 |
| | 13,393 |
| | 13,693 |
| | (3,870 | ) | | 2011 | | (A) |
| Spanish Main MH & RV Resort | | Thonotasassa, FL | | — | | — |
| | 2,390 |
| | 8,159 |
| | — |
| | 4,663 |
| | 2,390 |
| | 12,822 |
| | 15,212 |
| | (1,320 | ) | | 2016 | | (A) |
| St. Clair Place | | St. Clair, MI | | A | | 1,647 |
| | 501 |
| | 2,029 |
| | — |
| | 2,376 |
| | 501 |
| | 4,405 |
| | 4,906 |
| | (2,313 | ) | | 1998 | | (A) |
Strafford/Lake Winnipesaukee South KOA (2) (4) | | Strafford, NH | | — | | — |
| | — |
| | — |
| | 304 |
| | 2,943 |
| | 304 |
| | 2,943 |
| | 3,247 |
| | (52 | ) | | 2019 | | (A) |
| Stonebridge (MI) | | Richfield Twp, MI | | — | | — |
| | 2,044 |
| | — |
| | 246 |
| | — |
| | 2,290 |
| | 2,231 |
| | 4,521 |
| | (61 | ) | | 1998 | | (C) |
| Stonebridge (TX) | | San Antonio, TX | | C | | — |
| | 2,515 |
| | 2,096 |
| | (615 | ) | (3 | ) | 6,332 |
| | 1,900 |
| | 8,428 |
| | 10,328 |
| | (4,690 | ) | | 2000 | | (A&C) |
| Stonebrook | | Homosassa, FL | | — | | — |
| | 650 |
| | 14,063 |
| | — |
| | 1,006 |
| | 650 |
| | 15,069 |
| | 15,719 |
| | (2,254 | ) | | 2015 | | (A) |
| Summit Ridge | | Converse, TX | | C | | — |
| | 2,615 |
| | 2,092 |
| | (883 | ) | (3 | ) | 21,067 |
| | 1,732 |
| | 23,159 |
| | 24,891 |
| | (9,639 | ) | | 2000 | | (A&C) |
| Sun N Fun RV Resort | | Sarasota, FL | | D | | 74,567 |
| | 50,952 |
| | 117,457 |
| | (138 | ) | (3 | ) | 8,517 |
| | 50,814 |
| | 125,974 |
| | 176,788 |
| | (16,768 | ) | | 2016 | | (A) |
| Sun Valley | | Apache Junction, AZ | | D | | 12,244 |
| | 2,750 |
| | 18,408 |
| | — |
| | 1,933 |
| | 2,750 |
| | 20,341 |
| | 23,091 |
| | (3,776 | ) | | 2014 | | (A) |
| Sun Villa Estates | | Reno, NV | | B | | 24,565 |
| | 2,385 |
| | 11,773 |
| | (1,100 | ) | (3 | ) | 2,313 |
| | 1,285 |
| | 14,086 |
| | 15,371 |
| | (8,911 | ) | | 1998 | | (A) |
| Suncoast Gateway | | Port Richey, FL | | — | | — |
| | 594 |
| | 300 |
| | — |
| | 818 |
| | 594 |
| | 1,118 |
| | 1,712 |
| | (335 | ) | | 2016 | | (A) |
| Sundance | | Zephyrhills, FL | | B | | 12,700 |
| | 890 |
| | 25,306 |
| | — |
| | 1,080 |
| | 890 |
| | 26,386 |
| | 27,276 |
| | (4,056 | ) | | 2015 | | (A) |
| Sunlake Estates | | Grand Island, FL | | D | | 21,288 |
| | 6,290 |
| | 24,084 |
| | — |
| | 2,491 |
| | 6,290 |
| | 26,575 |
| | 32,865 |
| | (4,032 | ) | | 2015 | | (A) |
| Sunset Beach RV Resort | | Cape Charles, VA | | — | | — |
| | 3,800 |
| | 24,030 |
| | — |
| | — |
| | 3,800 |
| | 24,030 |
| | 27,830 |
| | (2,965 | ) | | 2016 | | (A) |
| Sunset Harbor at Cow Key Marina | | Key West, FL | | — | | — |
| | 8,570 |
| | 7,636 |
| | — |
| | 1,491 |
| | 8,570 |
| | 9,127 |
| | 17,697 |
| | (973 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Pelican RV Resort & Marina | | Marathon, FL | | — | | 4,760 |
| | 4,742 |
| | — |
| | 1,621 |
| | 4,760 |
| | 6,363 |
| | 11,123 |
| | (576 | ) | | 2016 | | (A) |
| Pembroke Downs | | Chino, CA | | D | | 9,560 |
| | 7,269 |
| | — |
| | 757 |
| | 9,560 |
| | 8,026 |
| | 17,586 |
| | (654 | ) | | 2016 | | (A) |
| Peter’s Pond RV Resort | | Sandwich, MA | | C | | 4,700 |
| | 22,840 |
| | — |
| | 3,485 |
| | 4,700 |
| | 26,325 |
| | 31,025 |
| | (6,334 | ) | | 2013 | | (A) |
Petoskey KOA RV Resort (4) | | Petoskey, MI | | — | | 214 |
| | 8,676 |
| | — |
| | 11 |
| | 214 |
| | 8,687 |
| | 8,901 |
| | (160 | ) | | 2018 | | (A) |
| Petoskey RV Resort | | Petoskey, MI | | — | | 230 |
| | 3,270 |
| | — |
| | 3,391 |
| | 230 |
| | 6,661 |
| | 6,891 |
| | (502 | ) | | 2016 | | (A) |
| Pheasant Ridge | | Lancaster, PA | | A | | 2,044 |
| | 19,279 |
| | — |
| | 878 |
| | 2,044 |
| | 20,157 |
| | 22,201 |
| | (10,794 | ) | | 2002 | | (A) |
| Pickerel Park RV Resort & Campground | | Napanee, ON | | — | | 900 |
| | 2,125 |
| | (61 | ) | (1 | ) | 1,029 |
| | 839 |
| | 3,154 |
| | 3,993 |
| | (233 | ) | | 2016 | | (A) |
| Pin Oak Parc | | O’Fallon, MO | | — | | 1,038 |
| | 3,250 |
| | 467 |
| | 15,333 |
| | 1,505 |
| | 18,583 |
| | 20,088 |
| | (8,942 | ) | | 1994 | | (A&C) |
| Pine Hills | | Middlebury, IN | | A | | 72 |
| | 544 |
| | 60 |
| | 3,394 |
| | 132 |
| | 3,938 |
| | 4,070 |
| | (2,313 | ) | | 1980 | | (A) |
| Pine Ridge | | Prince George, VA | | B | | 405 |
| | 2,397 |
| | — |
| | 13,415 |
| | 405 |
| | 15,812 |
| | 16,217 |
| | (4,460 | ) | | 1986 | | (A&C) |
| Pine Trace | | Houston, TX | | C | | 2,907 |
| | 17,169 |
| | (257 | ) | (3 | ) | 17,555 |
| | 2,650 |
| | 34,724 |
| | 37,374 |
| | (13,644 | ) | | 2004 | | (A&C) |
| Pinebrook Village | | Kentwood, MI | | C | | 130 |
| | 5,692 |
| | — |
| | 1,583 |
| | 130 |
| | 7,275 |
| | 7,405 |
| | (2,193 | ) | | 2011 | | (A) |
| Pismo Dunes RV Resort | | Pismo Beach, CA | | — | | 11,070 |
| | 10,190 |
| | — |
| | 866 |
| | 11,070 |
| | 11,056 |
| | 22,126 |
| | (564 | ) | | 2017 | | (A) |
| Plantation Landings | | Haines City, FL | | D | | 3,070 |
| | 30,973 |
| | — |
| | 2,069 |
| | 3,070 |
| | 33,042 |
| | 36,112 |
| | (3,882 | ) | | 2015 | | (A) |
| Pleasant Lake RV Resort | | Bradenton, FL | | E | | 5,220 |
| | 20,403 |
| | — |
| | 2,999 |
| | 5,220 |
| | 23,402 |
| | 28,622 |
| | (1,988 | ) | | 2016 | | (A) |
Pony Express RV Resort & Campground (4) | | North Salt Lake, UT | | — | | 3,429 |
| | 4,643 |
| | — |
| | 5 |
| | 3,429 |
| | 4,648 |
| | 8,077 |
| | (118 | ) | | 2018 | | (A) |
| Presidential Estates Mobile Village | | Hudsonville, MI | | B | | 680 |
| | 6,314 |
| | — |
| | 6,157 |
| | 680 |
| | 12,471 |
| | 13,151 |
| | (7,600 | ) | | 1996 | | (A) |
| Rainbow MH & RV Resort | | Frostproof, FL | | A | | 1,890 |
| | 5,682 |
| | — |
| | 4,210 |
| | 1,890 |
| | 9,892 |
| | 11,782 |
| | (2,449 | ) | | 2012 | | (A) |
| Rainbow Village of Largo | | Largo, FL | | E | | 4,420 |
| | 12,529 |
| | — |
| | 2,979 |
| | 4,420 |
| | 15,508 |
| | 19,928 |
| | (1,356 | ) | | 2016 | | (A) |
| Rainbow Village of Zephyrhills | | Zephyrhills, FL | | — | | 1,800 |
| | 9,884 |
| | — |
| | 1,907 |
| | 1,800 |
| | 11,791 |
| | 13,591 |
| | (1,007 | ) | | 2016 | | (A) |
Rancho Alipaz (2) | | San Juan Capistrano, CA | | D | | — |
| | 2,856 |
| | 16,165 |
| | 861 |
| | 16,165 |
| | 3,717 |
| | 19,882 |
| | (310 | ) | | 2016 | | (A) |
| Rancho Caballero | | Riverside, CA | | D | | 16,560 |
| | 12,446 |
| | — |
| | 1,168 |
| | 16,560 |
| | 13,614 |
| | 30,174 |
| | (1,120 | ) | | 2016 | | (A) |
| Rancho Mirage | | Apache Junction, AZ | | B | | 7,510 |
| | 22,238 |
| | — |
| | 921 |
| | 7,510 |
| | 23,159 |
| | 30,669 |
| | (3,528 | ) | | 2014 | | (A) |
Red Oaks MH & RV Resort (2) | | Bushnell, FL | | — | | 5,180 |
| | 20,499 |
| | — |
| | 4,089 |
| | 5,180 |
| | 24,588 |
| | 29,768 |
| | (2,134 | ) | | 2016 | | (A) |
| Regency Heights | | Clearwater, FL | | — | | 11,330 |
| | 15,734 |
| | — |
| | 1,565 |
| | 11,330 |
| | 17,299 |
| | 28,629 |
| | (1,421 | ) | | 2016 | | (A) |
| Reserve at Fox Creek | | Bullhead City, AZ | | D | | 1,950 |
| | 20,074 |
| | — |
| | 1,250 |
| | 1,950 |
| | 21,324 |
| | 23,274 |
| | (3,256 | ) | | 2014 | | (A) |
| Richmond Place | | Richmond, MI | | A | | 501 |
| | 2,040 |
| | (31 | ) | (3 | ) | 3,222 |
| | 470 |
| | 5,262 |
| | 5,732 |
| | (2,530 | ) | | 1998 | | (A) |
| Riptide RV Resort & Marina | | Key Largo, FL | | — | | 2,440 |
| | 991 |
| | — |
| | 1,724 |
| | 2,440 |
| | 2,715 |
| | 5,155 |
| | (203 | ) | | 2016 | | (A) |
| River Haven Village | | Grand Haven, MI | | C | | 1,800 |
| | 16,967 |
| | — |
| | 14,422 |
| | 1,800 |
| | 31,389 |
| | 33,189 |
| | (13,636 | ) | | 2001 | | (A) |
| River Ranch | | Austin, TX | | C | | 4,690 |
| | 843 |
| | 182 |
| | 42,959 |
| | 4,872 |
| | 43,802 |
| | 48,674 |
| | (11,408 | ) | | 2000 | | (A&C) |
| River Ridge Estates | | Austin, TX | | A | | 3,201 |
| | 15,090 |
| | — |
| | 8,941 |
| | 3,201 |
| | 24,031 |
| | 27,232 |
| | (11,751 | ) | | 2002 | | (C) |
River Run Ranch (4) (5) | | Granby, CO | | — | | 8,642 |
| | — |
| | — |
| | 9,153 |
| | 8,642 |
| | 9,153 |
| | 17,795 |
| | — |
| | 2018 | | (C) |
SUN COMMUNITIES, INC.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Riverside Club | | Ruskin, FL | | D | | 1,600 |
| | 66,207 |
| | — |
| | 5,123 |
| | 1,600 |
| | 71,330 |
| | 72,930 |
| | (8,321 | ) | | 2015 | | (A) |
| Rock Crusher Canyon RV Resort | | Crystal River, FL | | C | | 420 |
| | 5,542 |
| | 166 |
| | 3,162 |
| | 586 |
| | 8,704 |
| | 9,290 |
| | (1,234 | ) | | 2015 | | (A) |
| Roxbury Park | | Goshen, IN | | B | | 1,057 |
| | 9,870 |
| | — |
| | 4,204 |
| | 1,057 |
| | 14,074 |
| | 15,131 |
| | (7,229 | ) | | 2001 | | (A) |
| Royal Country | | Miami, FL | | E | | 2,290 |
| | 20,758 |
| | — |
| | 2,546 |
| | 2,290 |
| | 23,304 |
| | 25,594 |
| | (18,076 | ) | | 1994 | | (A) |
| Royal Palm Village | | Haines City, FL | | E | | 1,730 |
| | 27,446 |
| | — |
| | 3,248 |
| | 1,730 |
| | 30,694 |
| | 32,424 |
| | (3,666 | ) | | 2015 | | (A) |
Royal Palms MH & RV Resort (2) | | Cathedral City, CA | | — | | — |
| | 21,660 |
| | — |
| | 1,364 |
| | — |
| | 23,024 |
| | 23,024 |
| | (1,946 | ) | | 2016 | | (A) |
| Rudgate Clinton | | Clinton Township, MI | | A | | 1,090 |
| | 23,664 |
| | — |
| | 8,224 |
| | 1,090 |
| | 31,888 |
| | 32,978 |
| | (7,712 | ) | | 2012 | | (A) |
| Rudgate Manor | | Sterling Heights, MI | | A | | 1,440 |
| | 31,110 |
| | — |
| | 11,129 |
| | 1,440 |
| | 42,239 |
| | 43,679 |
| | (10,136 | ) | | 2012 | | (A) |
| Saco / Old Orchard Beach KOA | | Saco, ME | | C | | 790 |
| | 3,576 |
| | — |
| | 5,361 |
| | 790 |
| | 8,937 |
| | 9,727 |
| | (1,577 | ) | | 2014 | | (A) |
| Saddle Oak Club | | Ocala, FL | | D | | 730 |
| | 6,743 |
| | — |
| | 1,605 |
| | 730 |
| | 8,348 |
| | 9,078 |
| | (6,101 | ) | | 1995 | | (A) |
| Saddlebrook | | San Marcos, TX | | C | | 1,703 |
| | 11,843 |
| | — |
| | 23,412 |
| | 1,703 |
| | 35,255 |
| | 36,958 |
| | (11,682 | ) | | 2002 | | (C) |
San Pedro RV Resort & Marina (6) | | Islamorada, FL | | — | | 3,110 |
| | 2,416 |
| | — |
| | (1,885 | ) | | 3,110 |
| | 531 |
| | 3,641 |
| | — |
| | 2016 | | (A) |
| Sandy Lake MH & RV Resort | | Carrolton, TX | | — | | 730 |
| | 17,837 |
| | — |
| | 1,499 |
| | 730 |
| | 19,336 |
| | 20,066 |
| | (1,636 | ) | | 2016 | | (A) |
| Saralake Estates | | Sarasota, FL | | — | | 6,540 |
| | 11,403 |
| | — |
| | 1,027 |
| | 6,540 |
| | 12,430 |
| | 18,970 |
| | (1,072 | ) | | 2016 | | (A) |
| Savanna Club | | Port St. Lucie, FL | | D | | 12,810 |
| | 79,887 |
| | — |
| | 287 |
| | 12,810 |
| | 80,174 |
| | 92,984 |
| | (9,659 | ) | | 2015 | | (A&C) |
| Scio Farms Estates | | Ann Arbor, MI | | B | | 2,300 |
| | 22,659 |
| | (12 | ) | (3 | ) | 15,500 |
| | 2,288 |
| | 38,159 |
| | 40,447 |
| | (24,534 | ) | | 1995 | | (A&C) |
| Sea Air Village | | Rehoboth Beach, DE | | — | | 1,207 |
| | 10,179 |
| | — |
| | 2,492 |
| | 1,207 |
| | 12,671 |
| | 13,878 |
| | (6,626 | ) | | 1997 | | (A) |
Sea Breeze MH & RV Resort (6) | | Islamorada, FL | | — | | 7,390 |
| | 4,616 |
| | 2,311 |
| | (3,397 | ) | | 9,701 |
| | 1,219 |
| | 10,920 |
| | — |
| | 2016 | | (A) |
| Seaport RV Resort | | Old Mystic, CT | | C | | 120 |
| | 290 |
| | — |
| | 2,481 |
| | 120 |
| | 2,771 |
| | 2,891 |
| | (1,076 | ) | | 2013 | | (A) |
| Seashore Campsites & RV Resort | | Cape May, NJ | | D | | 1,030 |
| | 23,228 |
| | — |
| | 2,735 |
| | 1,030 |
| | 25,963 |
| | 26,993 |
| | (4,473 | ) | | 2014 | | (A) |
| Serendipity | | North Fort Myers, FL | | B | | 1,160 |
| | 23,522 |
| | — |
| | 3,092 |
| | 1,160 |
| | 26,614 |
| | 27,774 |
| | (3,287 | ) | | 2015 | | (A) |
| Settler’s Rest RV Resort | | Zephyrhills, FL | | — | | 1,760 |
| | 7,685 |
| | — |
| | 1,468 |
| | 1,760 |
| | 9,153 |
| | 10,913 |
| | (782 | ) | | 2016 | | (A) |
| Shadow Wood Village | | Hudson, FL | | — | | 4,520 |
| | 3,898 |
| | — |
| | 1,525 |
| | 4,520 |
| | 5,423 |
| | 9,943 |
| | (388 | ) | | 2016 | | (A) |
| Shady Pines MH & RV Resort | | Galloway Township, NJ | | — | | 1,060 |
| | 3,768 |
| | — |
| | 1,247 |
| | 1,060 |
| | 5,015 |
| | 6,075 |
| | (412 | ) | | 2016 | | (A) |
| Shady Road Villas | | Ocala, FL | | — | | 450 |
| | 2,819 |
| | — |
| | 1,051 |
| | 450 |
| | 3,870 |
| | 4,320 |
| | (304 | ) | | 2016 | | (A) |
| Sheffield Estates | | Auburn Hills, MI | | C | | 778 |
| | 7,165 |
| | — |
| | 2,196 |
| | 778 |
| | 9,361 |
| | 10,139 |
| | (4,129 | ) | | 2006 | | (A) |
| Shell Creek RV Resort & Marina | | Punta Gorda, FL | | E | | 2,200 |
| | 9,662 |
| | — |
| | 1,551 |
| | 2,200 |
| | 11,213 |
| | 13,413 |
| | (938 | ) | | 2016 | | (A) |
| Sherkston Shores Beach Resort & Campground | | Sherkston, ON | | — | | 22,750 |
| | 97,164 |
| | (1,130 | ) | (1 | ) | (2,107 | ) | | 21,620 |
| | 95,057 |
| | 116,677 |
| | (8,503 | ) | | 2016 | | (A) |
| Siesta Bay RV Park | | Ft. Myers, FL | | A | | 2,051 |
| | 18,549 |
| | 4 |
| | 4,963 |
| | 2,055 |
| | 23,512 |
| | 25,567 |
| | (15,644 | ) | | 1996 | | (A) |
| Silver Birches RV Resort & Campground | | Lambton Shores, ON | �� | — | | 880 |
| | 1,540 |
| | (60 | ) | (1 | ) | 366 |
| | 820 |
| | 1,906 |
| | 2,726 |
| | (161 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
Silver Creek RV Resort (4) | | Mears, MI | | — | | 605 |
| | 7,014 |
| | — |
| | 139 |
| | 605 |
| | 7,153 |
| | 7,758 |
| | (142 | ) | | 2018 | | (C) |
| Silver Springs | | Clinton Township, MI | | B | | 861 |
| | 16,595 |
| | — |
| | 3,590 |
| | 861 |
| | 20,185 |
| | 21,046 |
| | (5,194 | ) | | 2012 | | (A) |
| Sky Harbor | | Cheektowaga, NY | | A | | 2,318 |
| | 24,253 |
| | — |
| | 5,522 |
| | 2,318 |
| | 29,775 |
| | 32,093 |
| | (4,291 | ) | | 2014 | | (A) |
| Skyline | | Fort Collins, CO | | E | | 2,260 |
| | 12,120 |
| | — |
| | 717 |
| | 2,260 |
| | 12,837 |
| | 15,097 |
| | (2,027 | ) | | 2014 | | (A) |
Smith Creek Crossing (4) (5) | | Granby, CO | | — | | 1,395 |
| | — |
| | — |
| | 614 |
| | 1,395 |
| | 614 |
| | 2,009 |
| | — |
| | 2018 | | (C) |
| Southern Charm MH & RV Resort | | Zephyrhills, FL | | E | | 4,940 |
| | 17,366 |
| | — |
| | 2,163 |
| | 4,940 |
| | 19,529 |
| | 24,469 |
| | (1,715 | ) | | 2016 | | (A) |
| Southern Hills / Northridge Place | | Stewartville, MN | | E | | 360 |
| | 12,723 |
| | — |
| | 11,694 |
| | 360 |
| | 24,417 |
| | 24,777 |
| | (3,463 | ) | | 2014 | | (A&C) |
| Southern Pines | | Bradenton, FL | | — | | 1,710 |
| | 3,337 |
| | — |
| | 1,117 |
| | 1,710 |
| | 4,454 |
| | 6,164 |
| | (376 | ) | | 2016 | | (A) |
| Southfork | | Belton, MO | | A | | 1,000 |
| | 9,011 |
| | — |
| | 8,628 |
| | 1,000 |
| | 17,639 |
| | 18,639 |
| | (8,722 | ) | | 1997 | | (A) |
| Southport Springs Golf & Country Club | | Zephyrhills, FL | | B | | 15,060 |
| | 17,229 |
| | — |
| | 3,111 |
| | 15,060 |
| | 20,340 |
| | 35,400 |
| | (2,366 | ) | | 2015 | | (A&C) |
| Southwood Village | | Grand Rapids, MI | | — | | 300 |
| | 11,517 |
| | — |
| | 1,792 |
| | 300 |
| | 13,309 |
| | 13,609 |
| | (3,596 | ) | | 2011 | | (A) |
| Spanish Main MH & RV Resort | | Thonotasassa, FL | | — | | 2,390 |
| | 8,159 |
| | — |
| | 2,677 |
| | 2,390 |
| | 10,836 |
| | 13,226 |
| | (862 | ) | | 2016 | | (A) |
| St. Clair Place | | St. Clair, MI | | A | | 501 |
| | 2,029 |
| | — |
| | 2,321 |
| | 501 |
| | 4,350 |
| | 4,851 |
| | (2,169 | ) | | 1998 | | (A) |
Stonebridge (MI) (5) | | Richfield Twp, MI | | — | | 2,044 |
| | — |
| | 246 |
| | 2,195 |
| | 2,290 |
| | 2,195 |
| | 4,485 |
| | — |
| | 1998 | | (C) |
| Stonebridge (TX) | | San Antonio, TX | | C | | 2,515 |
| | 2,096 |
| | (615 | ) | (3 | ) | 6,657 |
| | 1,900 |
| | 8,753 |
| | 10,653 |
| | (4,727 | ) | | 2000 | | (A&C) |
| Stonebrook | | Homosassa, FL | | — | | 650 |
| | 14,063 |
| | — |
| | 790 |
| | 650 |
| | 14,853 |
| | 15,503 |
| | (1,747 | ) | | 2015 | | (A) |
| Summit Ridge | | Converse, TX | | C | | 2,615 |
| | 2,092 |
| | (883 | ) | (3 | ) | 21,225 |
| | 1,732 |
| | 23,317 |
| | 25,049 |
| | (8,743 | ) | | 2000 | | (A&C) |
| Sun N Fun RV Resort | | Sarasota, FL | | D | | 50,952 |
| | 117,457 |
| | (139 | ) | (3 | ) | 6,275 |
| | 50,813 |
| | 123,732 |
| | 174,545 |
| | (11,798 | ) | | 2016 | | (A) |
| Sun Valley | | Apache Junction, AZ | | D | | 2,750 |
| | 18,408 |
| | — |
| | 1,602 |
| | 2,750 |
| | 20,010 |
| | 22,760 |
| | (3,052 | ) | | 2014 | | (A) |
| Sun Villa Estates | | Reno, NV | | B | | 2,385 |
| | 11,773 |
| | (1,100 | ) | (3 | ) | 1,623 |
| | 1,285 |
| | 13,396 |
| | 14,681 |
| | (8,508 | ) | | 1998 | | (A) |
| Suncoast Gateway | | Port Richey, FL | | — | | 594 |
| | 300 |
| | — |
| | 788 |
| | 594 |
| | 1,088 |
| | 1,682 |
| | (286 | ) | | 2016 | | (A) |
| Sundance | | Zephyrhills, FL | | B | | 890 |
| | 25,306 |
| | — |
| | 975 |
| | 890 |
| | 26,281 |
| | 27,171 |
| | (3,144 | ) | | 2015 | | (A) |
| Sunlake Estates | | Grand Island, FL | | D | | 6,290 |
| | 24,084 |
| | — |
| | 1,743 |
| | 6,290 |
| | 25,827 |
| | 32,117 |
| | (3,079 | ) | | 2015 | | (A) |
| Sunset Beach RV Resort | | Cape Charles, VA | | — | | 3,800 |
| | 24,030 |
| | — |
| | — |
| | 3,800 |
| | 24,030 |
| | 27,830 |
| | (2,120 | ) | | 2016 | | (A) |
| Sunset Harbor at Cow Key Marina | | Key West, FL | | — | | 8,570 |
| | 7,636 |
| | — |
| | 798 |
| | 8,570 |
| | 8,434 |
| | 17,004 |
| | (672 | ) | | 2016 | | (A) |
| Sunset Lakes RV Resort | | Hillsdale, IL | | — | | 1,840 |
| | 5,995 |
| | — |
| | 2,390 |
| | 1,840 |
| | 8,385 |
| | 10,225 |
| | (442 | ) | | 2017 | | (A) |
| Sunset Ridge (MI) | | Portland, MI | | C | | 2,044 |
| | — |
| | (9 | ) | (3 | ) | 23,838 |
| | 2,035 |
| | 23,838 |
| | 25,873 |
| | (8,527 | ) | | 1998 | | (C) |
| Sunset Ridge (TX) | | Kyle, TX | | C | | 2,190 |
| | 2,775 |
| | — |
| | 6,656 |
| | 2,190 |
| | 9,431 |
| | 11,621 |
| | (4,687 | ) | | 2000 | | (A&C) |
| Swan Meadow Village | | Dillon, CO | | E | | 2,140 |
| | 19,734 |
| | — |
| | 461 |
| | 2,140 |
| | 20,195 |
| | 22,335 |
| | (2,854 | ) | | 2014 | | (A) |
| Sweetwater RV Resort | | Zephyrhills, FL | | E | | 1,340 |
| | 9,113 |
| | — |
| | 1,576 |
| | 1,340 |
| | 10,689 |
| | 12,029 |
| | (932 | ) | | 2016 | | (A) |
| Sycamore Village | | Mason, MI | | — | | 390 |
| | 13,341 |
| | — |
| | 4,213 |
| | 390 |
| | 17,554 |
| | 17,944 |
| | (5,004 | ) | | 2011 | | (A) |
| Tallowwood Isle | | Coconut Creek, FL | | — | | 13,796 |
| | 20,797 |
| | — |
| | 854 |
| | 13,796 |
| | 21,651 |
| | 35,447 |
| | (1,815 | ) | | 2016 | | (A) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Tamarac Village MH & RV Resort | | Ludington, MI | | — | | 300 |
| | 12,028 |
| | 85 |
| | 3,549 |
| | 385 |
| | 15,577 |
| | 15,962 |
| | (3,887 | ) | | 2011 | | (A) |
| Tampa East MH & RV Resort | | Dover, FL | | A | | 734 |
| | 6,310 |
| | — |
| | 5,393 |
| | 734 |
| | 11,703 |
| | 12,437 |
| | (4,949 | ) | | 2005 | | (A) |
The Colony (2) | | Oxnard, CA | | — | | — |
| | 6,437 |
| | — |
| | 922 |
| | — |
| | 7,359 |
| | 7,359 |
| | (628 | ) | | 2016 | | (A) |
| The Grove at Alta Ridge | | Thornton, CO | | E | | 5,370 |
| | 37,116 |
| | — |
| | 30 |
| | 5,370 |
| | 37,146 |
| | 42,516 |
| | (5,703 | ) | | 2014 | | (A) |
| The Hamptons Golf & Country Club | | Auburndale, FL | | B | | 15,890 |
| | 67,555 |
| | — |
| | 2,278 |
| | 15,890 |
| | 69,833 |
| | 85,723 |
| | (8,331 | ) | | 2015 | | (A) |
| The Hideaway | | Key West, FL | | — | | 2,720 |
| | 972 |
| | — |
| | 631 |
| | 2,720 |
| | 1,603 |
| | 4,323 |
| | (135 | ) | | 2016 | | (A) |
| The Hills | | Apopka, FL | | — | | 1,790 |
| | 3,869 |
| | — |
| | 1,166 |
| | 1,790 |
| | 5,035 |
| | 6,825 |
| | (419 | ) | | 2016 | | (A) |
| The Ridge | | Davenport, FL | | B | | 8,350 |
| | 35,463 |
| | — |
| | 3,019 |
| | 8,350 |
| | 38,482 |
| | 46,832 |
| | (4,718 | ) | | 2015 | | (A) |
The Sands RV & Golf Resort (4) | | Desert Hot Springs, CA | | — | | 3,071 |
| | 12,611 |
| | — |
| | 542 |
| | 3,071 |
| | 13,153 |
| | 16,224 |
| | (287 | ) | | 2018 | | (A) |
| The Valley | | Apopka, FL | | — | | 2,530 |
| | 5,660 |
| | — |
| | 1,264 |
| | 2,530 |
| | 6,924 |
| | 9,454 |
| | (552 | ) | | 2016 | | (A) |
| The Villas at Calla Pointe | | Cheektowaga, NY | | A | | 380 |
| | 11,014 |
| | — |
| | 160 |
| | 380 |
| | 11,174 |
| | 11,554 |
| | (1,709 | ) | | 2014 | | (A) |
| Three Lakes | | Hudson, FL | | C | | 5,050 |
| | 3,361 |
| | — |
| | 2,922 |
| | 5,050 |
| | 6,283 |
| | 11,333 |
| | (1,757 | ) | | 2012 | | (A) |
| Thunderhill Estates | | Sturgeon Bay, WI | | E | | 640 |
| | 9,008 |
| | 425 |
| | 1,632 |
| | 1,065 |
| | 10,640 |
| | 11,705 |
| | (1,685 | ) | | 2014 | | (A) |
| Timber Ridge | | Ft. Collins, CO | | D | | 990 |
| | 9,231 |
| | — |
| | 3,079 |
| | 990 |
| | 12,310 |
| | 13,300 |
| | (7,964 | ) | | 1996 | | (A) |
| Timberline Estates | | Coopersville, MI | | B | | 535 |
| | 4,867 |
| | — |
| | 4,685 |
| | 535 |
| | 9,552 |
| | 10,087 |
| | (6,107 | ) | | 1994 | | (A) |
| Town & Country Mobile Village | | Traverse City, MI | | A | | 406 |
| | 3,736 |
| | — |
| | 1,878 |
| | 406 |
| | 5,614 |
| | 6,020 |
| | (3,270 | ) | | 1996 | | (A) |
| Town & Country Village | | Lisbon, ME | | E | | 230 |
| | 4,539 |
| | — |
| | 1,721 |
| | 230 |
| | 6,260 |
| | 6,490 |
| | (1,058 | ) | | 2014 | | (A) |
| Trailside RV Resort & Campground | | Seguin, ON | | — | | 3,690 |
| | 3,650 |
| | (250 | ) | (1 | ) | 436 |
| | 3,440 |
| | 4,086 |
| | 7,526 |
| | (359 | ) | | 2016 | | (A) |
| Traveler’s World MH & RV Resort | | San Antonio, TX | | — | | 790 |
| | 7,952 |
| | — |
| | 1,791 |
| | 790 |
| | 9,743 |
| | 10,533 |
| | (888 | ) | | 2016 | | (A) |
| Treetops RV Resort | | Arlington, TX | | — | | 730 |
| | 9,831 |
| | — |
| | 1,629 |
| | 730 |
| | 11,460 |
| | 12,190 |
| | (992 | ) | | 2016 | | (A) |
| Vallecito | | Newbury Park, CA | | D | | 25,766 |
| | 9,814 |
| | — |
| | 1,036 |
| | 25,766 |
| | 10,850 |
| | 36,616 |
| | (893 | ) | | 2016 | | (A) |
| Verde Plaza | | Tucson, AZ | | — | | 710 |
| | 7,069 |
| | — |
| | 2,709 |
| | 710 |
| | 9,778 |
| | 10,488 |
| | (815 | ) | | 2016 | | (A) |
| Victor Villa | | Victorville, CA | | D | | 2,510 |
| | 20,408 |
| | — |
| | 1,684 |
| | 2,510 |
| | 22,092 |
| | 24,602 |
| | (1,885 | ) | | 2016 | | (A) |
| Vines RV Resort | | Paso Robles, CA | | C | | 890 |
| | 7,110 |
| | — |
| | 1,951 |
| | 890 |
| | 9,061 |
| | 9,951 |
| | (1,828 | ) | | 2013 | | (A) |
| Vista Del Lago | | Scotts Valley, CA | | D | | 17,830 |
| | 9,456 |
| | — |
| | 1,123 |
| | 17,830 |
| | 10,579 |
| | 28,409 |
| | (777 | ) | | 2016 | | (A) |
| Vista Del Lago MH & RV Resort | | Bradenton, FL | | E | | 3,630 |
| | 5,329 |
| | — |
| | 1,819 |
| | 3,630 |
| | 7,148 |
| | 10,778 |
| | (555 | ) | | 2016 | | (A) |
| Vizcaya Lakes | | Port Charlotte, FL | | C | | 670 |
| | 4,221 |
| | — |
| | 566 |
| | 670 |
| | 4,787 |
| | 5,457 |
| | (535 | ) | | 2015 | | (A) |
| Wagon Wheel RV Resort & Campground | | Old Orchard Beach, ME | | C | | 590 |
| | 7,703 |
| | — |
| | 3,080 |
| | 590 |
| | 10,783 |
| | 11,373 |
| | (2,783 | ) | | 2013 | | (A) |
| Walden Woods | | Homosassa, FL | | B / D | | 1,550 |
| | 26,375 |
| | — |
| | 1,151 |
| | 1,550 |
| | 27,526 |
| | 29,076 |
| | (3,278 | ) | | 2015 | | (A) |
| Warren Dunes Village | | Bridgman, MI | | C | | 310 |
| | 3,350 |
| | — |
| | 10,143 |
| | 310 |
| | 13,493 |
| | 13,803 |
| | (1,829 | ) | | 2011 | | (A&C) |
| Water Oak Country Club Estates | | Lady Lake, FL | | D | | 2,834 |
| | 16,706 |
| | 2,603 |
| | 28,532 |
| | 5,437 |
| | 45,238 |
| | 50,675 |
| | (21,286 | ) | | 1993 | | (A&C) |
| Waters Edge RV Resort | | Zephyrhills, FL | | E | | 1,180 |
| | 5,450 |
| | — |
| | 1,908 |
| | 1,180 |
| | 7,358 |
| | 8,538 |
| | (633 | ) | | 2016 | | (A) |
| Waverly Shores Village | | Holland, MI | | B | | 340 |
| | 7,267 |
| | 450 |
| | 7,528 |
| | 790 |
| | 14,795 |
| | 15,585 |
| | (2,110 | ) | | 2011 | | (A&C) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2018 | | | | | | |
| Property Name | | Location | | Encumbrance | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| West Village Estates | | Romulus, MI | | B | | 884 |
| | 19,765 |
| | — |
| | 4,457 |
| | 884 |
| | 24,222 |
| | 25,106 |
| | (5,730 | ) | | 2012 | | (A) |
| Westbrook Senior Village | | Toledo, OH | | D | | 355 |
| | 3,295 |
| | — |
| | 665 |
| | 355 |
| | 3,960 |
| | 4,315 |
| | (2,128 | ) | | 2001 | | (A) |
| Westbrook Village | | Toledo, OH | | B | | 1,110 |
| | 10,462 |
| | — |
| | 5,047 |
| | 1,110 |
| | 15,509 |
| | 16,619 |
| | (8,916 | ) | | 1999 | | (A) |
| Westside Ridge | | Auburndale, FL | | D | | 760 |
| | 10,714 |
| | — |
| | 734 |
| | 760 |
| | 11,448 |
| | 12,208 |
| | (1,386 | ) | | 2015 | | (A) |
| Westward Ho RV Resort & Campground | | Glenbeulah, WI | | C | | 1,050 |
| | 5,642 |
| | — |
| | 2,589 |
| | 1,050 |
| | 8,231 |
| | 9,281 |
| | (1,900 | ) | | 2013 | | (A) |
Westward Shores Cottages & RV Resort (4) | | West Ossipee, NH | | — | | 1,901 |
| | 15,326 |
| | — |
| | 1,536 |
| | 1,901 |
| | 16,862 |
| | 18,763 |
| | (299 | ) | | 2018 | | (A) |
| White Lake Mobile Home Village | | White Lake, MI | | B | | 672 |
| | 6,179 |
| | — |
| | 10,891 |
| | 672 |
| | 17,070 |
| | 17,742 |
| | (9,585 | ) | | 1997 | | (A&C) |
| Wild Acres RV Resort & Campground | | Old Orchard Beach, ME | | C | | 1,640 |
| | 26,786 |
| | — |
| | 4,425 |
| | 1,640 |
| | 31,211 |
| | 32,851 |
| | (7,989 | ) | | 2013 | | (A) |
| Wildwood Community | | Sandwich, IL | | D | | 1,890 |
| | 37,732 |
| | — |
| | 924 |
| | 1,890 |
| | 38,656 |
| | 40,546 |
| | (5,982 | ) | | 2014 | | (A) |
| Willow Lake RV Resort & Campground | | Scotland, ON | | — | | 1,260 |
| | 2,275 |
| | (85 | ) | (1 | ) | 560 |
| | 1,175 |
| | 2,835 |
| | 4,010 |
| | (206 | ) | | 2016 | | (A) |
| Willowbrook Place | | Toledo, OH | | B | | 781 |
| | 7,054 |
| | — |
| | 4,992 |
| | 781 |
| | 12,046 |
| | 12,827 |
| | (6,697 | ) | | 1997 | | (A) |
| Willowood RV Resort & Campground | | Amherstburg, ON | | — | | 1,160 |
| | 1,490 |
| | (78 | ) | (1 | ) | 409 |
| | 1,082 |
| | 1,899 |
| | 2,981 |
| | (163 | ) | | 2016 | | (A) |
| Windham Hills Estates | | Jackson, MI | | — | | 2,673 |
| | 2,364 |
| | — |
| | 20,818 |
| | 2,673 |
| | 23,182 |
| | 25,855 |
| | (11,000 | ) | | 1998 | | (A&C) |
| Windmill Village | | Davenport, FL | | B | | 7,560 |
| | 36,294 |
| | — |
| | 1,566 |
| | 7,560 |
| | 37,860 |
| | 45,420 |
| | (4,567 | ) | | 2015 | | (A) |
| Windsor Woods Village | | Wayland, MI | | C | | 270 |
| | 5,835 |
| | — |
| | 3,445 |
| | 270 |
| | 9,280 |
| | 9,550 |
| | (3,110 | ) | | 2011 | | (A) |
| Wine Country RV Resort | | Paso Robles, CA | | C | | 1,740 |
| | 11,510 |
| | — |
| | 3,757 |
| | 1,740 |
| | 15,267 |
| | 17,007 |
| | (2,659 | ) | | 2014 | | (A&C) |
| Woodhaven Place | | Woodhaven, MI | | B | | 501 |
| | 4,541 |
| | — |
| | 6,407 |
| | 501 |
| | 10,948 |
| | 11,449 |
| | (5,147 | ) | | 1998 | | (A) |
| Woodlake Trails | | San Antonio, TX | | C | | 1,186 |
| | 287 |
| | (56 | ) | (3 | ) | 15,848 |
| | 1,130 |
| | 16,135 |
| | 17,265 |
| | (4,862 | ) | | 2000 | | (A&C) |
| Woodland Lake RV Resort & Campground | | Bornholm, ON | | — | | 1,650 |
| | 2,165 |
| | (112 | ) | (1 | ) | 435 |
| | 1,538 |
| | 2,600 |
| | 4,138 |
| | (240 | ) | | 2016 | | (A) |
| Woodland Park Estates | | Eugene, OR | | — | | 1,592 |
| | 14,398 |
| | — |
| | 936 |
| | 1,592 |
| | 15,334 |
| | 16,926 |
| | (10,152 | ) | | 1998 | | (A) |
| Woodlands at Church Lake | | Groveland, FL | | — | | 2,480 |
| | 9,072 |
| | — |
| | 1,954 |
| | 2,480 |
| | 11,026 |
| | 13,506 |
| | (1,250 | ) | | 2015 | | (A) |
| Woodside Terrace | | Holland, OH | | B | | 1,063 |
| | 9,625 |
| | — |
| | 9,929 |
| | 1,063 |
| | 19,554 |
| | 20,617 |
| | (10,368 | ) | | 1997 | | (A) |
| Subtotal of Properties | | | | | | $ | 1,171,638 |
| | $ | 4,592,685 |
| | $ | 30,307 |
| | $ | 1,685,224 |
| | $ | 1,201,945 |
| | $ | 6,277,909 |
| | $ | 7,479,854 |
| | $ | (1,422,583 | ) | | | | |
Corporate Headquarters and Other (7) | | Southfield, MI | | — | | — |
| | — |
| | — |
| | 81,092 |
| | — |
| | 81,092 |
| | 81,092 |
| | (20,047 | ) | | | | |
| Total | | | | | | $ | 1,171,638 |
| | $ | 4,592,685 |
| | $ | 30,307 |
| | $ | 1,766,316 |
| | $ | 1,201,945 |
| | $ | 6,359,001 |
| | $ | 7,560,946 |
| | $ | (1,442,630 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Sunset Lakes RV Resort | | Hillsdale, IL | | — | | — |
| | 1,840 |
| | 5,995 |
| | — |
| | 2,777 |
| | 1,840 |
| | 8,772 |
| | 10,612 |
| | (799 | ) | | 2017 | | (A) |
| Sunset Ridge (MI) | | Portland, MI | | — | | — |
| | 2,044 |
| | — |
| | (9 | ) | (3 | ) | — |
| | 2,035 |
| | 28,713 |
| | 30,748 |
| | (9,623 | ) | | 1998 | | (C) |
| Sunset Ridge (TX) | | Kyle, TX | | C | | — |
| | 2,190 |
| | 2,775 |
| | — |
| | 6,987 |
| | 2,190 |
| | 9,762 |
| | 11,952 |
| | (4,981 | ) | | 2000 | | (A&C) |
| Swan Meadow Village | | Dillon, CO | | E | | 13,566 |
| | 2,140 |
| | 19,734 |
| | — |
| | 444 |
| | 2,140 |
| | 20,178 |
| | 22,318 |
| | (3,478 | ) | | 2014 | | (A) |
| Sweetwater RV Resort | | Zephyrhills, FL | | E | | 5,505 |
| | 1,340 |
| | 9,113 |
| | — |
| | 2,090 |
| | 1,340 |
| | 11,203 |
| | 12,543 |
| | (1,360 | ) | | 2016 | | (A) |
| Sycamore Village | | Mason, MI | | — | | — |
| | 390 |
| | 13,341 |
| | — |
| | 4,246 |
| | 390 |
| | 17,587 |
| | 17,977 |
| | (5,569 | ) | | 2011 | | (A) |
| Tallowwood Isle | | Coconut Creek, FL | | C | | — |
| | 13,796 |
| | 20,797 |
| | — |
| | 1,289 |
| | 13,796 |
| | 22,086 |
| | 35,882 |
| | (2,568 | ) | | 2016 | | (A) |
| Tamarac Village MH & RV Resort | | Ludington, MI | | D | | 19,125 |
| | 300 |
| | 12,028 |
| | 85 |
| | 3,809 |
| | 385 |
| | 15,837 |
| | 16,222 |
| | (4,326 | ) | | 2011 | | (A) |
| Tampa East MH & RV Resort | | Dover, FL | | A | | 8,400 |
| | 734 |
| | 6,310 |
| | — |
| | 7,486 |
| | 734 |
| | 13,796 |
| | 14,530 |
| | (5,511 | ) | | 2005 | | (A) |
The Colony (2) | | Oxnard, CA | | — | | — |
| | — |
| | 6,437 |
| | — |
| | 959 |
| | — |
| | 7,396 |
| | 7,396 |
| | (896 | ) | | 2016 | | (A) |
| The Grove at Alta Ridge | | Thornton, CO | | E | | 27,122 |
| | 5,370 |
| | 37,116 |
| | — |
| | 99 |
| | 5,370 |
| | 37,215 |
| | 42,585 |
| | (6,978 | ) | | 2014 | | (A) |
| The Hamptons Golf & Country Club | | Auburndale, FL | | D | | 69,000 |
| | 15,890 |
| | 67,555 |
| | — |
| | 3,040 |
| | 15,890 |
| | 70,595 |
| | 86,485 |
| | (10,786 | ) | | 2015 | | (A) |
| The Hideaway | | Key West, FL | | — | | — |
| | 2,720 |
| | 972 |
| | — |
| | 938 |
| | 2,720 |
| | 1,910 |
| | 4,630 |
| | (204 | ) | | 2016 | | (A) |
| The Hills | | Apopka, FL | | — | | — |
| | 1,790 |
| | 3,869 |
| | — |
| | 1,269 |
| | 1,790 |
| | 5,138 |
| | 6,928 |
| | (607 | ) | | 2016 | | (A) |
| The Ridge | | Davenport, FL | | D | | 37,350 |
| | 8,350 |
| | 35,463 |
| | — |
| | 3,121 |
| | 8,350 |
| | 38,584 |
| | 46,934 |
| | (6,188 | ) | | 2015 | | (A) |
| The Sands RV & Golf Resort | | Desert Hot Springs, CA | | — | | — |
| | 3,071 |
| | 12,611 |
| | 1 |
| | 1,915 |
| | 3,072 |
| | 14,526 |
| | 17,598 |
| | (905 | ) | | 2018 | | (A) |
| The Valley | | Apopka, FL | | — | | — |
| | 2,530 |
| | 5,660 |
| | — |
| | 1,666 |
| | 2,530 |
| | 7,326 |
| | 9,856 |
| | (808 | ) | | 2016 | | (A) |
| The Villas at Calla Pointe | | Cheektowaga, NY | | A | | 3,690 |
| | 380 |
| | 11,014 |
| | — |
| | 171 |
| | 380 |
| | 11,185 |
| | 11,565 |
| | (2,094 | ) | | 2014 | | (A) |
Three Gardens (4) | | Southington, CT | | C | | — |
| | 2,031 |
| | 6,686 |
| | — |
| | 5 |
| | 2,031 |
| | 6,691 |
| | 8,722 |
| | (111 | ) | | 2019 | | (A) |
| Three Lakes | | Hudson, FL | | C | | — |
| | 5,050 |
| | 3,361 |
| | — |
| | 3,240 |
| | 5,050 |
| | 6,601 |
| | 11,651 |
| | (2,055 | ) | | 2012 | | (A) |
| Thunderhill Estates | | Sturgeon Bay, WI | | E | | 5,469 |
| | 640 |
| | 9,008 |
| | 439 |
| | 2,568 |
| | 1,079 |
| | 11,576 |
| | 12,655 |
| | (2,147 | ) | | 2014 | | (A) |
| Timber Ridge | | Ft. Collins, CO | | D | | 39,258 |
| | 990 |
| | 9,231 |
| | — |
| | 3,388 |
| | 990 |
| | 12,619 |
| | 13,609 |
| | (8,288 | ) | | 1996 | | (A) |
| Timberline Estates | | Coopersville, MI | | B | | 18,812 |
| | 535 |
| | 4,867 |
| | 1 |
| | 4,295 |
| | 536 |
| | 9,162 |
| | 9,698 |
| | (5,913 | ) | | 1994 | | (A) |
| Town & Country Mobile Village | | Traverse City, MI | | A | | 5,294 |
| | 406 |
| | 3,736 |
| | — |
| | 1,860 |
| | 406 |
| | 5,596 |
| | 6,002 |
| | (3,412 | ) | | 1996 | | (A) |
| Town & Country Village | | Lisbon, ME | | E | | 2,557 |
| | 230 |
| | 4,539 |
| | — |
| | 1,260 |
| | 230 |
| | 5,799 |
| | 6,029 |
| | (1,132 | ) | | 2014 | | (A) |
| Trailside RV Resort & Campground | | Seguin, ON | | — | | — |
| | 3,690 |
| | 3,650 |
| | (87 | ) | (1 | ) | 853 |
| | 3,603 |
| | 4,503 |
| | 8,106 |
| | (551 | ) | | 2016 | | (A) |
| Traveler’s World MH & RV Resort | | San Antonio, TX | | — | | — |
| | 790 |
| | 7,952 |
| | — |
| | 2,008 |
| | 790 |
| | 9,960 |
| | 10,750 |
| | (1,280 | ) | | 2016 | | (A) |
| Treetops RV Resort | | Arlington, TX | | C | | — |
| | 730 |
| | 9,831 |
| | — |
| | 1,802 |
| | 730 |
| | 11,633 |
| | 12,363 |
| | (1,413 | ) | | 2016 | | (A) |
| Vallecito | | Newbury Park, CA | | D | | 22,044 |
| | 25,766 |
| | 9,814 |
| | — |
| | 1,138 |
| | 25,766 |
| | 10,952 |
| | 36,718 |
| | (1,260 | ) | | 2016 | | (A) |
| Verde Plaza | | Tucson, AZ | | — | | — |
| | 710 |
| | 7,069 |
| | — |
| | 2,971 |
| | 710 |
| | 10,040 |
| | 10,750 |
| | (1,276 | ) | | 2016 | | (A) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 2019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Victor Villa | | Victorville, CA | | D | | 11,977 |
| | 2,510 |
| | 20,408 |
| | — |
| | 2,107 |
| | 2,510 |
| | 22,515 |
| | 25,025 |
| | (2,701 | ) | | 2016 | | (A) |
| Vines RV Resort | | Paso Robles, CA | | C | | — |
| | 890 |
| | 7,110 |
| | — |
| | 2,032 |
| | 890 |
| | 9,142 |
| | 10,032 |
| | (2,250 | ) | | 2013 | | (A) |
| Vista Del Lago | | Scotts Valley, CA | | D | | 18,129 |
| | 17,830 |
| | 9,456 |
| | — |
| | 1,319 |
| | 17,830 |
| | 10,775 |
| | 28,605 |
| | (1,173 | ) | | 2016 | | (A) |
| Vista Del Lago MH & RV Resort | | Bradenton, FL | | E | | 4,221 |
| | 3,630 |
| | 5,329 |
| | — |
| | 2,007 |
| | 3,630 |
| | 7,336 |
| | 10,966 |
| | (805 | ) | | 2016 | | (A) |
| Vizcaya Lakes | | Port Charlotte, FL | | C | | — |
| | 670 |
| | 4,221 |
| | — |
| | 579 |
| | 670 |
| | 4,800 |
| | 5,470 |
| | (700 | ) | | 2015 | | (A) |
| Wagon Wheel RV Resort & Campground | | Old Orchard Beach, ME | | C | | — |
| | 590 |
| | 7,703 |
| | — |
| | 2,833 |
| | 590 |
| | 10,536 |
| | 11,126 |
| | (3,120 | ) | | 2013 | | (A) |
| Walden Woods | | Homosassa, FL | | D | | 19,206 |
| | 1,550 |
| | 26,375 |
| | — |
| | 1,410 |
| | 1,550 |
| | 27,785 |
| | 29,335 |
| | (4,243 | ) | | 2015 | | (A) |
| Warren Dunes Village | | Bridgman, MI | | C | | — |
| | 310 |
| | 3,350 |
| | — |
| | 11,275 |
| | 310 |
| | 14,625 |
| | 14,935 |
| | (2,528 | ) | | 2011 | | (A&C) |
| Water Oak Country Club Estates | | Lady Lake, FL | | D | | 46,725 |
| | 2,834 |
| | 16,706 |
| | 2,666 |
| | 34,141 |
| | 5,500 |
| | 50,847 |
| | 56,347 |
| | (22,950 | ) | | 1993 | | (A&C) |
| Waters Edge RV Resort | | Zephyrhills, FL | | E | | 3,670 |
| | 1,180 |
| | 5,450 |
| | — |
| | 2,308 |
| | 1,180 |
| | 7,758 |
| | 8,938 |
| | (937 | ) | | 2016 | | (A) |
| Waverly Shores Village | | Holland, MI | | B | | 14,660 |
| | 340 |
| | 7,267 |
| | 450 |
| | 6,508 |
| | 790 |
| | 13,775 |
| | 14,565 |
| | (2,614 | ) | | 2011 | | (A&C) |
| West Village Estates | | Romulus, MI | | B | | 5,582 |
| | 884 |
| | 19,765 |
| | — |
| | 4,154 |
| | 884 |
| | 23,919 |
| | 24,803 |
| | (6,361 | ) | | 2012 | | (A) |
| Westbrook Senior Village | | Toledo, OH | | D | | 5,852 |
| | 355 |
| | 3,295 |
| | — |
| | 694 |
| | 355 |
| | 3,989 |
| | 4,344 |
| | (2,271 | ) | | 2001 | | (A) |
| Westbrook Village | | Toledo, OH | | B | | 23,983 |
| | 1,110 |
| | 10,462 |
| | — |
| | 5,301 |
| | 1,110 |
| | 15,763 |
| | 16,873 |
| | (9,255 | ) | | 1999 | | (A) |
| Westside Ridge | | Auburndale, FL | | D | | 8,564 |
| | 760 |
| | 10,714 |
| | — |
| | 851 |
| | 760 |
| | 11,565 |
| | 12,325 |
| | (1,785 | ) | | 2015 | | (A) |
| Westward Ho RV Resort & Campground | | Glenbeulah, WI | | C | | — |
| | 1,050 |
| | 5,642 |
| | — |
| | 2,590 |
| | 1,050 |
| | 8,232 |
| | 9,282 |
| | (2,208 | ) | | 2013 | | (A) |
| Westward Shores Cottages & RV Resort | | West Ossipee, NH | | — | | — |
| | 1,901 |
| | 15,326 |
| | — |
| | 3,470 |
| | 1,901 |
| | 18,796 |
| | 20,697 |
| | (938 | ) | | 2018 | | (A) |
| White Lake Mobile Home Village | | White Lake, MI | | B | | 24,178 |
| | 672 |
| | 6,179 |
| | 1 |
| | 11,017 |
| | 673 |
| | 17,196 |
| | 17,869 |
| | (10,011 | ) | | 1997 | | (A&C) |
Whitewater RV Resort (4) (5) | | Mountain View, AR | | — | | — |
| | 5,163 |
| | — |
| | 15 |
| | 1,842 |
| | 5,178 |
| | 1,842 |
| | 7,020 |
| | — |
| | 2019 | | (C) |
| Wild Acres RV Resort & Campground | | Old Orchard Beach, ME | | C | | — |
| | 1,640 |
| | 26,786 |
| | — |
| | 4,845 |
| | 1,640 |
| | 31,631 |
| | 33,271 |
| | (9,439 | ) | | 2013 | | (A) |
| Wildwood Community | | Sandwich, IL | | D | | 24,441 |
| | 1,890 |
| | 37,732 |
| | — |
| | 1,023 |
| | 1,890 |
| | 38,755 |
| | 40,645 |
| | (7,319 | ) | | 2014 | | (A) |
| Willow Lake RV Resort & Campground | | Scotland, ON | | — | | — |
| | 1,260 |
| | 2,275 |
| | (30 | ) | (1 | ) | 824 |
| | 1,230 |
| | 3,099 |
| | 4,329 |
| | (327 | ) | | 2016 | | (A) |
| Willowbrook Place | | Toledo, OH | | B | | 17,392 |
| | 781 |
| | 7,054 |
| | 1 |
| | 5,486 |
| | 782 |
| | 12,540 |
| | 13,322 |
| | (7,005 | ) | | 1997 | | (A) |
| Willowood RV Resort & Campground | | Amherstburg, ON | | — | | — |
| | 1,160 |
| | 1,490 |
| | (27 | ) | (1 | ) | 770 |
| | 1,133 |
| | 2,260 |
| | 3,393 |
| | (278 | ) | | 2016 | | (A) |
| Windham Hills Estates | | Jackson, MI | | — | | — |
| | 2,673 |
| | 2,364 |
| | — |
| | 21,878 |
| | 2,673 |
| | 24,242 |
| | 26,915 |
| | (11,777 | ) | | 1998 | | (A&C) |
| Windmill Village | | Davenport, FL | | D | | 46,000 |
| | 7,560 |
| | 36,294 |
| | — |
| | 1,880 |
| | 7,560 |
| | 38,174 |
| | 45,734 |
| | (5,949 | ) | | 2015 | | (A) |
| Windsor Woods Village | | Wayland, MI | | C | | — |
| | 270 |
| | 5,835 |
| | — |
| | 3,260 |
| | 270 |
| | 9,095 |
| | 9,365 |
| | (3,321 | ) | | 2011 | | (A) |
| Wine Country RV Resort | | Paso Robles, CA | | C | | — |
| | 1,740 |
| | 11,510 |
| | — |
| | 3,881 |
| | 1,740 |
| | 15,391 |
| | 17,131 |
| | (3,311 | ) | | 2014 | | (A&C) |
| Woodhaven Place | | Woodhaven, MI | | B | | 13,700 |
| | 501 |
| | 4,541 |
| | — |
| | 6,648 |
| | 501 |
| | 11,189 |
| | 11,690 |
| | (5,611 | ) | | 1998 | | (A) |
| Woodlake Trails | | San Antonio, TX | | C | | — |
| | 1,186 |
| | 287 |
| | (56 | ) | (3 | ) | 18,407 |
| | 1,130 |
| | 18,694 |
| | 19,824 |
| | (5,782 | ) | | 2000 | | (A&C) |
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 2019
(amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Encumbrance | | Initial Cost to Company | | Costs Capitalized Subsequent to Acquisition (Improvements) | | Gross Amount Carried at December 31, 2019 | | | | | | |
| Property Name | | Location | | Group | | Amount | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Land | | Depreciable Assets | | Total | | Accumulated Depreciation | | Date | | Acquired (A) or Constructed (C) |
| Woodland Lake RV Resort & Campground | | Bornholm, ON | | — | | — |
| | 1,650 |
| | 2,165 |
| | (47 | ) | (1 | ) | 562 |
| | 1,603 |
| | 2,727 |
| | 4,330 |
| | (339 | ) | | 2016 | | (A) |
| Woodland Park Estates | | Eugene, OR | | — | | — |
| | 1,592 |
| | 14,398 |
| | 1 |
| | 996 |
| | 1,593 |
| | 15,394 |
| | 16,987 |
| | (10,645 | ) | | 1998 | | (A) |
| Woodlands at Church Lake | | Groveland, FL | | — | | — |
| | 2,480 |
| | 9,072 |
| | — |
| | 2,812 |
| | 2,480 |
| | 11,884 |
| | 14,364 |
| | (1,697 | ) | | 2015 | | (A) |
| Woodside Terrace | | Holland, OH | | B | | 25,076 |
| | 1,063 |
| | 9,625 |
| | — |
| | 11,438 |
| | 1,063 |
| | 21,063 |
| | 22,126 |
| | (10,972 | ) | | 1997 | | (A) |
Wymberly (4) | | Martinez, GA | | C | | — |
| | 3,058 |
| | 14,451 |
| | — |
| | 5 |
| | 3,058 |
| | 14,456 |
| | 17,514 |
| | (241 | ) | | 2019 | | (A) |
Yankee Village (4) | | Old Saybrook, CT | | C | | — |
| | 1,552 |
| | 364 |
| | — |
| | — |
| | 1,552 |
| | 364 |
| | 1,916 |
| | (6 | ) | | 2019 | | (A) |
| | | | | | | $ | 3,188,472 |
| | $ | 1,379,317 |
| | $ | 5,238,831 |
| | $ | 34,962 |
| | $ | 1,929,108 |
| | $ | 1,414,279 |
| | $ | 7,414,464 |
| | $ | 8,828,743 |
| | $ | (1,663,277 | ) | | | | |
Corporate Headquarters and Other (7) | | Southfield, MI | | — | | — |
| | — |
| | — |
| | — |
| | 91,589 |
| | — |
| | 90,857 |
| | 90,857 |
| | (23,703 | ) | | | | |
| | | | | | | $ | 3,188,472 |
| | $ | 1,379,317 |
| | $ | 5,238,831 |
| | $ | 34,962 |
| | $ | 2,020,697 |
| | $ | 1,414,279 |
| | $ | 7,505,321 |
| | $ | 8,919,600 |
| | $ | (1,686,980 | ) | | | | |
A These communities collateralize $405.9$398.0 million of secured debt.
B These communities collateralize $762.6$697.4 million of secured debt.
C These communities support the borrowing base for our secured line of credit, which had $128.0$180.6 million outstanding.
D These communities collateralize $1.3$1.7 billion of secured debt.
E These communities collateralize $382.8$376.5 million of secured debt.
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 2018
(amounts in thousands)
(1) Gross amount carried at December 31, 2018,2019, at our Canadian properties, reflects the impact of foreign currency translation.
(2) All or part of this property is subject to ground lease.
(3) Gross amount carried at December 31, 20182019 has decreased at this property due to a partial disposition of land or depreciable assets, as applicable.
(4) This property was acquired during 2018. The purchase price allocations and related values shown in the table above are preliminary and may be adjusted as final costs and valuations are determined.2019.
(5) This property was not included in our community count as of December 31, 20182019 as it was not fully developed.
(6) This property was impaired as a result of Hurricane Irma in September 2017.
(7) Corporate Headquarters and other fixed assets.
SUN COMMUNITIES, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION, SCHEDULE III
DECEMBER 31, 20182019
(amounts in thousands)
The change in investment property for the years ended December 31, 2019, 2018, 2017, and 20162017 is as follows:follows (in thousands):
| | | | Years Ended December 31, | Year Ended |
| | 2018 | | 2017 | | 2016 | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Beginning balance | $ | 6,882,879 |
| | $ | 6,496,339 |
| | $ | 4,573,522 |
| $ | 7,560,946 |
| | $ | 6,882,879 |
| | $ | 6,496,339 |
|
| Community and land acquisitions, including immediate improvements | 414,840 |
| | 204,375 |
| | 1,822,564 |
| 930,668 |
| | 414,840 |
| | 204,375 |
|
| Community expansion and development | 152,672 |
| | 88,331 |
| | 47,958 |
| 281,808 |
| | 152,672 |
| | 88,331 |
|
| Improvements | 205,006 |
| | 168,315 |
| | 113,803 |
| 233,984 |
| | 205,006 |
| | 168,315 |
|
| Asset impairment | — |
| | (10,511 | ) | | — |
| — |
| | — |
| | (10,511 | ) |
| Dispositions and other | (94,451 | ) | | (63,970 | ) | | (61,508 | ) | (87,806 | ) | | (94,451 | ) | | (63,970 | ) |
| Ending balance | $ | 7,560,946 |
| | $ | 6,882,879 |
| | $ | 6,496,339 |
| $ | 8,919,600 |
| | $ | 7,560,946 |
| | $ | 6,882,879 |
|
The change in accumulated depreciation for the years ended December 31, 2019, 2018, 2017, and 20162017 is as follows:follows (in thousands):
| | | | Years Ended December 31, | Year Ended |
| | 2018 | | 2017 | | 2016 | December 31, 2019 | | December 31, 2018 | | December 31, 2017 |
| Beginning balance | $ | 1,237,525 |
| | $ | 1,026,858 |
| | $ | 852,407 |
| $ | 1,442,630 |
| | $ | 1,237,525 |
| | $ | 1,026,858 |
|
| Depreciation for the period | 253,952 |
| | 236,422 |
| | 201,157 |
| 291,605 |
| | 253,952 |
| | 236,422 |
|
| Asset impairment | — |
| | (405 | ) | | — |
| — |
| | — |
| | (405 | ) |
| Dispositions and other | (48,847 | ) | | (25,350 | ) | | (26,706 | ) | (47,255 | ) | | (48,847 | ) | | (25,350 | ) |
| Ending balance | $ | 1,442,630 |
| | $ | 1,237,525 |
| | $ | 1,026,858 |
| $ | 1,686,980 |
| | $ | 1,442,630 |
| | $ | 1,237,525 |
|
