Sun Communities Inc. Reports Operating Results (10-Q)

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Jul 28, 2011
Sun Communities Inc. (SUI, Financial) filed Quarterly Report for the period ended 2011-06-30.

Sun Communities Inc. has a market cap of $793.2 million; its shares were traded at around $37.35 with a P/E ratio of 12.9 and P/S ratio of 3. The dividend yield of Sun Communities Inc. stocks is 6.7%. Sun Communities Inc. had an annual average earning growth of 1.5% over the past 10 years.

Highlight of Business Operations:

Real Property NOI increased by $1.5 million, from $32.7 million to $34.2 million or 4.6 percent. The growth in NOI is primarily due to increased revenues of $2.3 million offset by increased expenses of $0.8 million.

Income from real property revenue consists of manufactured home and recreational vehicle site rent, and miscellaneous other property revenues. Income from real property revenues increased $2.3 million, from $49.9 million to $52.2 million, or 4.6 percent. The growth in income from real property was due to a combination of factors. Revenue from our manufactured home and recreational vehicle portfolio increased by $2.0 million due to average rental rate increases of 2.8 percent and the increased number of occupied home sites, partially offset by rent concessions offered to new residents and current residents who convert from home renters to home owners. Additionally, we had increased miscellaneous other property revenues of $0.3 million primarily due increase in water and sewer income.

Property operating expenses increased $0.8 million, from $17.3 million to $18.1 million or 4.7 percent. Payroll and benefits increased by $0.2 million due to increased wages. Utilities increased by $0.4 million primarily due to increased water and sewer usage. Other property operating expenses increased by $0.3 million due to increased advertising costs and other general office expenses, partially offset by $0.1 million in decreased real estate taxes.

Real Property NOI increased by $1.2 million, from $32.6 million to $33.8 million or 3.6 percent. The growth in NOI is primarily due to increased revenues of $1.6 million offset by increased expenses of $0.4 million.

Income from real property revenue consists of manufactured home and recreational vehicle site rent, and miscellaneous other property revenues. Income from real property revenues increased $1.6 million, from $47.2 million to $48.8 million, or 3.3 percent. The growth in income from real property was due to a combination of factors. Revenue from our manufactured home and recreational vehicle portfolio increased by $1.5 million due to average rental rate increases of 2.7 percent and the increased number of occupied home sites, partially offset by rent concessions offered to new residents and current residents who convert from home renters to home owners. Additionally, we had increased miscellaneous other property revenues of $0.1 million primarily due to revenue realized on cable television royalties.

Property operating expenses increased $0.4 million, from $14.6 million to $15.0 million, or 2.8 percent. Payroll and benefits increased by $0.2 million due to increased wages. Other property operating expenses increased by $0.2 million due to increased advertising costs and other general office expenses.

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