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RVIA Economic Impact Study

The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.

Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .

Sun Communities 2016 Revenue Increases 30 Percent

Fri Feb 24, 2017

Southfield, Michigan - Sun Communities, Inc. has reported its fourth quarter and 2016 full year results, with a revenue increase of 30 percent.

For the quarter ended Dec. 31, 2016, total revenues increased $50.4 million, or 30 percent, to $218.6 million compared to $168.2 million for the same period in 2015. Net loss attributable to Common Stockholders was $1.6 million, or $0.02 per diluted common share, as compared to net income attributable to Common Stockholders of $89.4 million, or $1.56 per diluted common share, for the same period in 2015.

For the year ended Dec. 31, 2016, total revenues increased $159.1 million, or 23.6 percent, to $833.8 million compared to $674.7 million for the same period in 2015. Net income attributable to Common Stockholders for the year ended Dec. 31, 2016 was $17.4 million, or $0.26 per diluted common share, as compared to $137.3 million, or $2.52 per diluted common share, for the same period in 2015.

For the quarter ended Dec. 31, 2016, Funds from Operations excluding certain items was $0.91 per diluted share and OP unit as compared to $0.81 in the prior year, an increase of 12.3 percent.

For the year ended Dec. 31, 2016, FFO excluding certain items was $3.79 per Share as compared to $3.63 in the prior year, an increase of 4.4 percent.

Home sales increased by 27.8 percent as compared to the year ended Dec. 31, 2015.

Revenue producing sites increased by 301 sites for the quarter bringing total portfolio occupancy to 96.2 percent, up 120 basis points from year end 2015.

For the quarter, same community Net Operating Income increased by 9.1 percent as compared to the three months ended Dec. 31, 2015.

"Sun's most recent results demonstrate the ongoing power of our platform," Chairman and CEO Gary Shiffman says. "We achieved industry leading internal growth, increased or maintained occupancy for the 20th consecutive quarter and sold a record number of homes into our communities, while integrating our largest acquisition to date. As we proceed through 2017, we are keenly focused on continuing to deliver exceptional results to our shareholders. Along with continuing to drive NOI growth from our core portfolio, we anticipate the most meaningful opportunities will come from value-add assets that we can reposition to deliver superior returns over the long term. Sun is well positioned to continue our track record of value creation."

Total portfolio occupancy increased to 96.2 percent at Dec. 31, 2016 from 95 percent at Dec. 31, 2015. During the fourth quarter of 2016, revenue producing sites increased by 301 sites, as compared to 548 revenue producing sites gained in the fourth quarter of 2015.

Revenue producing sites gained during the year ended Dec. 31, 2016 were 1,686 as compared to 1,905 revenue producing sites gained for the same period in 2015.

For the 219 communities owned throughout 2016 and 2015, fourth quarter 2016 total revenues increased 6.2 percent and total expenses decreased 0.9 percent, resulting in an increase in NOI of 9.1 percent over the fourth quarter of 2015. Same community occupancy increased to 96.6 percent at Dec. 31, 2016 from 94.7 percent at Dec. 31, 2015.

For the year ended Dec. 31, 2016, total revenues increased 6.1 percent and total expenses increased 3.7 percent, resulting in an increase in NOI of 7.1 percent over the year ended Dec. 31, 2015.

Total homes sales were 762 for the fourth quarter of 2016 as compared to 738 total homes sold during the same period in 2015.

During the year ended Dec. 31, 2016, the company sold 3,172 homes as compared to the 2,483 homes sold during the same period ending 2015, resulting in an additional 689 homes sold during 2016, or a 27.8 percent increase.

Rental homes sales, which are included in total home sales, were 231 and 297 for the three months ended and 1,089 and 908 for the year ended Dec. 31, 2016 and 2015, respectively.

During the quarter ended Dec. 31, 2016, the company completed a $58.5 million secured borrowing that bears interest at a fixed rate of 3.33 percent and has a seven-year term. The company repaid mortgage loans totaling $79.1 million in the fourth quarter and $28.9 million subsequent to year end, substantially addressing all of its 2017 maturities.

As of Dec. 31, 2016, the company had about $3.1 billion of debt outstanding. The weighted average interest rate was 4.48 percent and the weighted average maturity was 8.5 years. The company had $8.2 million of unrestricted cash on hand. At period-end the company's net debt to trailing 12-month EBITDA ratio was 7.5 times.

During the fourth quarter of 2016 and in January 2017, the company sold 300,000 shares of common stock through its At-the-Market equity sales program at a weighted average price of $76.43 per share. Net proceeds from the sales were $22.6 million.

As noted in its third quarter earnings release, the company acquired two communities shortly after Sept. 30, 2016, for total consideration of $9.8 million. These communities, located in Colorado and New York, contain 495 RV sites and have expansion potential of about 350 sites.

Additionally, during the fourth quarter, the company acquired a community adjacent to one of its existing communities in Florida, for consideration of $3.4 million. This community has 178 RV sites.

These communities are located in high demand destination locations and will undergo repositioning or expansion activities to fully realize the inherent value in the zoned and entitled land that was previously under-managed or under-utilized.

The company estimates full year 2017 FFO per Share to be in the range of $4.16 to $4.24 per Share and the first quarter 2017 to be in the range of $1.06 to $1.08 per Share. Guidance does not include prospective acquisitions or capital markets activity.