Sun Communities : Sun Communities, Inc. Announces Acquisition of Ten
Recreational Vehicle Communities, Closing of New Credit Facility and 2013
FOR FURTHER INFORMATION AT THE COMPANY:
Karen J. Dearing
Chief Financial Officer
Southfield, MI, February 13, 2013 - Sun Communities, Inc. (NYSE: SUI) (the
"Company"), a real estate investment trust ("REIT") that owns and operates
manufactured housing and recreational vehicle communities,today announced
that, on February 8, 2013, it acquired ten (10) recreational vehicle
communities, personal property and other associated intangibles from Gwynns
Island RV Resort LLC, Indian Creek RV Resort LLC, Lake Laurie RV Resort LLC,
Newpoint RV Resort LLC, Peters Pond RV Resort Inc., Seaport LLC, Virginia Tent
LLC, Wagon Wheel Maine LLC, Westward Ho RV Resort LLC and Wild Acres LLC (the
"Contributors") for an aggregate purchase price of $111,475,000 (subject to
adjustments and prorations). The purchase price was paid by cash in an amount
necessary to pay off all existing secured debt (other than the Company's
January 2, 2013 secured loan to four of the Contributors and one affiliate of
the Contributors which was assumed in the transaction) and a portion of
Contributors' mezzanine debt and the balance of which was paid by the issuance
to the Contributors of approximately $4 million of newly created Series A-3
Preferred Units of Sun Communities Operating Limited Partnership. In
connection with this transaction, the Company also purchased certain cottages
and homes located in the communities for an additional $1,321,750.
The acquired communities, three of which are located in Maine, two of which
are located in Virginia and the other communities are located in Connecticut,
Massachusetts, New Jersey, Ohio and Wisconsin, are comprised of nearly 3,700
sites of which approximately 40 percent are filled with recreational vehicles
under annual rental contracts.
"While currently under managed and in need of immediate capital improvements,
these "Class A" locations afford us a unique opportunity to enhance long-term
growth through application of our existing management expertise, superior
reservation systems and marketing programs and provide us entry into a new
geographic footprint," said Gary A. Shiffman, Chairman and Chief Executive
Officer. "The acquired portfolio provides economies of scale and cross
marketing opportunities from North to South when combined with our current
recreational vehicle holdings, and tempers seasonality of our revenues as the
majority of these communities have seasons that run from May - September
rather than the traditional October - April," Shiffman added.
The Company also announced that, on February 6, 2013, it borrowed $61.5
million from Bank of Montreal, as lender and administrative agent, secured by
first priority liens on all of the Company's equity interests in certain of
its subsidiaries that directly or indirectly own twenty (20) manufactured home
or recreational vehicle communities. This debt currently bears interest at
LIBOR plus 1.50% and matures on August 6, 2013 but, at the Company's election,
the maturity date may be extended for an additional six (6) months upon
compliance with certain conditions.
Inclusive of the acquisitions announced above, the Company expects that its
Funds from Operations will be in the range of $3.45 - $3.55 per diluted share
and OP unit for the year ending December 31, 2013. Additional information and
assumptions underlying this guidance will be further detailed in our upcoming
fourth quarter 2012 earnings release.
Sun Communities, Inc. is a REIT that currently owns and operates a portfolio
of 183 communities comprising approximately 67,381 developed sites.
For more information about Sun Communities, Inc.
visit our website at www.suncommunities.com
Forward Looking Statements
This press release contains various "forward-looking statements" within the
meaning of the Securities Act of 1933, as amended, and the Securities Exchange
Act of 1934, as amended, and the Company intends that such forward-looking
statements will be subject to the safe harbors created thereby.
Forward-looking statements can be identified by words such as "will," "may,"
"could," "expect," "anticipate," "believes," "intends," "should," "plans,"
"estimates," "approximate", "guidance" and similar expressions in this press
release that predict or indicate future events and trends and that do not
report historical matters.
These forward-looking statements reflect the Company's current views with
respect to future events and financial performance, but involve known and
unknown risks, uncertainties, and other factors, some of which are beyond our
control. These risks, uncertainties, and other factors may cause the actual
results of the Company to be materially different from any future results
expressed or implied by such forward-looking statements. Such risks and
uncertainties include national, regional and local economic climates, the
ability to maintain rental rates and occupancy levels, competitive market
forces, changes in market rates of interest, the ability of manufactured home
buyers to obtain financing, the level of repossessions by manufactured home
lenders and those risks and uncertainties referenced under the headings
entitled "Risk Factors" contained in our Form 10-K for the year ended December
31, 2011, andthe Company's other periodicfilings with the Securities and
The forward-looking statements contained in this press release speak only as
of the date hereof and the Company expressly disclaims any obligation to
provide public updates, revisions or amendments to any forward- looking
statements made herein to reflect changes in the Company's assumptions,
expectations of future events, or trends.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Sun Communities via Thomson Reuters ONE
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