Sun Communities, Inc. Reports 2023 Fourth Quarter and Full Year Results; Provides 2024 Guidance and Increases Annual Distribution Rate for 2024
Total Revenue Increased 7.8% and 8.6% for the Quarter and Full Year Net Loss per Diluted Share of $0.65 and $1.72 for the Quarter and Full Year Core FFO per Share of $1.34 and $7.10 for the Quarter and Full Year Total Same Property NOI Increased by 9.6% and 7.3% for the Quarter and Full Year Same Property Adjusted Occupancy for MH and RV Increased by 230 Basis Points, Year-over-Year Revenue Producing Site Gains of 3,268 for the Year, Including 2,111 Transient-to-Annual RV Site Conversions Establishing Guidance for 2024 Expecting Total Same Property NOI Growth of 4.8% - 6.0% Expecting Core FFO per Share of $7.04 to $7.24 Increasing Annual Distribution by 1.1% in 2024, to $3.76 per share Southfield, MI, Feb. 20, 2024 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE:SUI) (the "Company" or "SUI"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities and marinas (collectively, the "properties"), today reported its fourth quarter and full year results for 2023. Financial Results for the Quarter and Year Ended December 31, 2023 For the quarter ended December 31, 2023, net loss attributable to common shareholders was $80.9 million, or $0.65 per diluted share, compared to net income attributable to common shareholders of $4.7 million, or $0.04 per diluted share for the same period in 2022. For the year ended December 31, 2023, net loss attributable to common shareholders was $213.3 million, or $1.72 per diluted share, compared to net income attributable to common shareholders of $242.0 million, or $2.00 per diluted share, for the same period in 2022. Non-GAAP Financial Measures Core Funds from Operations ("Core FFO") for the quarter and year ended December 31, 2023, were $1.34 per common share and dilutive convertible securities ("Share") and $7.10 per Share, respectively. Same Property Net Operating Income ("NOI") increased by 9.6% and 7.3% for the quarter and year ended December 31, 2023, respectively, as compared to the corresponding periods in 2022. "The fourth quarter culminated a year of solid real property performance. Same property NOI surpassed our expectations and highlights the resilience of our portfolio, supported by the robust demand and limited supply fundamentals of our properties," said Gary A. Shiffman, Chairman, President and CEO. "We realized solid occupancy gains in our manufactured housing and RV communities, high levels of conversion of transient to annual RV sites and continued double digit NOI increases in our marinas. In the UK, although real property performance remains strong, macro headwinds continue to impact home sales. We are focused on realizing the consistent growth our portfolio provides and delivering reliable results from our real property assets. By remaining disciplined in pursuing new acquisition and development activity, de-leveraging our balance sheet, and maximizing the efficiency of our operating platform, we are confident in our strategic positioning to re-accelerate earnings growth in the coming years." OPERATING HIGHLIGHTS North America Portfolio Occupancy MH and annual RV sites were 97.4% occupied at December 31, 2023, as compared to 96.8% at December 31, 2022. During the quarter ended December 31, 2023, the number of MH and annual RV revenue producing sites increased by 683 sites, as compared to an increase of 613 sites during the corresponding period in 2022, an 11.4% increase. During the year ended December 31, 2023, MH and annual RV revenue producing sites increased by 3,268 sites, an 11.8% increase over the 2,922 sites gained during 2022. Transient-to-annual RV site conversions totaled 296 sites during the fourth quarter of 2023 and accounted for 43.3% of the revenue producing site gains. Transient-to-annual RV site conversions totaled 2,111 and accounted for 64.6% of the revenue producing site gains for the year ended December 31, 2023. Same Property Results For the properties owned and operated by the Company since at least January 1, 2022, the following table reflects the percentage changes for the quarter and year ended December 31, 2023: Quarter Ended December 31, 2023 MH RV Marina Total Revenue 7.6 % 2.1 % 8.2 % 6.3 % Expense 4.8 % (4.7) % 0.4 % 0.3 % NOI 8.6 % 9.3 % 12.5 % 9.6 % Year Ended December 31, 2023 MH RV Marina Total Revenue 7.0 % 3.3 % 9.1 % 6.2 % Expense 7.5 % 1.4 % 3.9 % 4.2 % NOI 6.8 % 4.8 % 11.7 % 7.3 % Number of Properties 288 160 119 567 Same Property adjusted blended occupancy for MH and RV increased by 230 basis points to 98.9% at December 31, 2023, from 96.6% at December 31, 2022. INVESTMENT ACTIVITY During the quarter ended December 31, 2023, the Company expanded its existing communities by over 30 sites and delivered over 75 sites at one ground-up development property. Subsequent to the quarter, the Company acquired one land parcel zoned and entitled for MH development, located in the U.S. for an aggregate purchase price of $11.7 million. BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS As of December 31, 2023, the Company had $7.8 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.8 years. At December 31, 2023, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times. During the quarter, the Company: Entered into new mortgage term loans for $252.8 million in aggregate that mature in November 2030 and bear interest at a fixed rate of 6.49%. The proceeds were used to repay $117.8 million of mortgage term loans that matured in 2023 and pay down amounts drawn under the Company's senior credit facility. Sold its 41.8 million share position in Ingenia Communities Group (ASX: INA), generating $102.5 million of proceeds, net of underwriting and other fees, with a realized loss of $8.0 million. The net proceeds were used to pay down amounts drawn under the Company's senior credit facility. The Company continues to own a 50% interest in Sungenia, a joint venture formed between the Company and the Ingenia Communities Group in November 2018. Completed a transaction with an unrelated entity, whereby the Company received net cash proceeds of $53.4 million in exchange for relinquishing right, title and interest in certain MH installment notes receivable. Based on the transaction structure, which in the event of a borrower default allows the Company to repurchase the underlying homes collateralizing the notes, requirements for sale accounting were not met and the notes receivable continue to be recognized on the Company's consolidated balance sheets at December 31, 2023, and referred to as collateralized receivables. The proceeds were used to pay down borrowings outstanding under the Company's senior credit facility. Simplified the structure of certain of its consolidated variable interest entities, Sun NG Whitewater RV Resorts LLC, Sun NG Beaver Brook LLC, Sun NG RV Resorts and four standalone affiliates (collectively "Sun NG") in a transaction with the Company's joint venture partner in Sun NG: Sold the Company's majority equity interests in three properties for proceeds of $166.1 million, which resulted in a gain on disposition of $13.2 million; Acquired all of the joint venture partner's noncontrolling equity interests in 14 properties and a significant portion of the noncontrolling equity interests in five stand-alone joint venture properties, for $149.5 million; and Settled a total of $39.2 million of preferred equity interests, including $35.2 million of mandatorily redeemable equity interests classified as Unsecured debt, and issued Series L preferred OP units valued at $2.0 million. Sold its investment in Rezplot Systems LLC ("Rezplot"), a nonconsolidated affiliate. Rezplot is an RV reservation software technology company operating under the Campspot brand. Total proceeds of $27.5 million included the settlement of notes receivable from Rezplot with a recorded balance of $12.2 million and resulted in a gain on sale of $15.3 million. Subsequent to the quarter, the Company: Issued $500.0 million of senior unsecured notes with an interest rate of 5.5% and a five-year term, due January 15, 2029, and received net proceeds of $495.4 million, after deducting underwriters' discounts and estimated offering expenses. The majority of the net proceeds were used to pay down borrowings outstanding under the Company's senior credit facility, reducing its floating-rate debt to total debt to approximately 10%. Reached an agreement to sell two operating communities located in Florida and Arizona with 533 aggregated developed sites for total cash consideration of approximately $53.0 million. The sale is expected to close during the quarter ending March 31, 2024, with a total estimated gain of approximately $7.0 million. UK Note Receivable As previously announced, the Company completed an administration process related to three real estate assets that collateralized the majority of a note receivable extended to Royale Holdings Group HoldCo Limited ("Royale Life"). On December 28, 2023, the Company acquired the assets through a credit bid, a potential outcome that management had previously discussed. During the quarter, the Company engaged third party valuation specialists to appraise the assets in accordance with Accounting Standards Codification Topic 820 – Fair Value Measurements and Disclosures and recognized such assets at fair value totaling $263.8 million, as Investment Property on the Company's Consolidated Balance Sheets as of December 31, 2023. There was no resulting remeasurement adjustment. The Company also previously announced that the note receivable was further collateralized by a first priority security interest in three MH manufacturers in the UK and that it was continuing to work through courses of action in connection with such collateral. These assets were remeasured during the fourth quarter which resulted in an unfavorable adjustment of $102.9 million. Subsequent to quarter end, the Company completed a receivership process related to the manufacturers. The receivers sold such assets for total consideration of $10.7 million, resulting in cash proceeds to the Company of approximately $7.0 million, net of non-cash consideration and fees. The sale of these assets resulted in an incremental fair value remeasurement adjustment of $0.8 million. Sandy Bay Update As previously disclosed, the Company had agreed to sell Sandy Bay, an MH operating community in the UK. The property had been classified as held for sale on its Consolidated Balance Sheets at September 30, 2023. As of December 31, 2023, the asset was reclassified as held for use and the Company is now operating the property. Park Holidays Goodwill Impairment During year end audit procedures, the Company reviewed controls relating to the valuation of its Park Holidays business and associated goodwill. In connection with the review, the Company concluded that changes in certain triggering factors relevant to the valuation of the Park Holidays business, including financial projections and increased interest rates, should have been taken into account when preparing the Company's interim financial statements for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023. The total non-cash goodwill impairment recognized during 2023 was $369.9 million. The Company intends to restate such interim financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 2024 Distributions The Company's Board of Directors has approved setting the 2024 annual distribution rate at $3.76 per common share and unit, an increase of $0.04, or 1.1%, over the current annual dividend rate of $3.72 per common share and unit for 2023. This increase will begin with the first quarter distribution to be paid in April 2024. While the Board of Directors has adopted the new annual distribution policy, the amount of each quarterly distribution on the Company's common stock will be subject to approval by the Board of Directors. New Directors On February 15, 2024, the Company added Jerry Ehlinger and Craig A. Leupold to its Board of Directors as independent directors. Mr. Ehlinger and Mr. Leupold bring new and thoughtful real estate industry perspectives to the Company. 2024 GUIDANCE The Company is establishing full year and first quarter 2024 guidance for diluted EPS and Core FFO per Share as follows: First Quarter Ending March 31, 2024 Full Year Ending December 31, 2024 Low High Low High Diluted EPS $ (0.08 ) $ (0.03 ) $ 2.08 $ 2.28 Depreciation and amortization 1.32 1.32 5.35 5.35 Gain on sale of assets (0.05 ) (0.05 ) (0.30 ) (0.30 ) Distributions on preferred OP units 0.02 0.02 0.10 0.10 Noncontrolling interest — — 0.10 0.10 Transaction costs and other non-recurring G&A expenses 0.02 0.02 0.07 0.07 Deferred tax benefit (0.02 ) (0.02 ) (0.18 ) (0.18 ) Difference in weighted average share count attributed to dilutive convertible securities — — (0.11 ) (0.11 ) Other adjustments(b) (0.07 ) (0.07 ) (0.07 ) (0.07 ) Core FFO(c) per Share $ 1.14 $ 1.19 $ 7.04 $ 7.24 (a) The diluted share counts for the quarter ending March 31, 2024 and the year ending December 31, 2024 are 129.7 million and 129.8 million, respectively. (b) Other adjustments consist primarily of remeasurement (gains) / losses, contingent legal and insurance gains and other items presented in the table that reconciles Net income / (loss) attributable to SUI common shareholders to Core FFO on page 6. (c) The Company's initial guidance translates forecasted results from operations in Canada, Australia and the UK using the relevant exchange rates in effect on December 31, 2023, as follows: Exchange Rates in Effect at: December 31, 2023 U.S. Dollar ("USD") / Pound Sterling ("GBP") 1.27 USD / Canadian Dollar ("CAD") 0.75 USD / Australian Dollar ("AUS") 0.68 The Company's guidance for the full year ending December 31, 2024 is reflected below. Note that certain prior period amounts have been reclassified to conform with current period presentation, with no effect on net income / (loss). The reclassifications more precisely align certain indirect expenses with underlying activity drivers. The Company has noted these line items in its guidance footnotes below, and has provided 2023 quarterly results that reflect these classifications in the "Definitions and Notes" section of this supplemental information package. FY 2023 Results(in millions) Expected % Change in FY 2024 Same Property Portfolio(a) North America Revenues from real property $ 1,737.3 6.4% - 6.8% Total property operating expenses $ 582.9 8.1% - 9.1% Total North America Same Property NOI $ 1,154.4 5.0% - 6.2% MH NOI $ 609.9 6.0% - 7.0% RV NOI $ 291.7 2.1% - 3.5% Marina NOI $ 252.7 6.1% - 7.5% UK Revenues from real property $ 138.9 4.8% - 5.4% Total property operating expenses $ 69.1 7.4% - 8.4% Total UK Same Property NOI $ 69.8 1.3% - 3.3% Total Same Property NOI(b)(c) $ 1,224.1 4.8% - 6.0% Average Rental Rate Increases Expected MH 5.4 % Annual RV 6.5 % Marina 5.6 % UK 7.1 % For the first quarter ending March 31, 2024, the Company's guidance range assumes Total Same Property NOI growth of 6.0% - 7.3%. Consolidated Portfolio Guidance For 2024 FY 2023 Results(in millions) ExpectedChange / Range in FY 2024 Revenues from real property $ 2,059.8 7.1% - 7.6% Total property operating expenses(d) $ 810.4 8.1% - 8.4% Total Real Property NOI $ 1,249.4 6.3% - 7.3% Service, retail, dining and entertainment NOI(d) $ 68.5 $58.4 - $63.2 Interest income $ 45.4 $17.6 - $18.6 Brokerage commissions and other, net(e)(f) $ 60.6 $44.8 - $47.2 FFO contribution from North American home sales(d) $ 17.0 $14.4 - $15.9 Income from nonconsolidated affiliates $ 16.0 $13.7 - $14.7 General and administrative expenses(d) $ 272.1 $262.2 - $267.4 Interest expense $ 325.8 $356.3 - $362.7 Current tax expense $ 14.5 $14.6 - $16.8 FY 2023 Results(in millions) Expected Range in FY 2024 UK Home Sales UK homes sales volume(g) 2,857 2,650 - 2,850 FFO contribution from UK home sales ($ in millions)(d)(g) $ 59.2 $62.3 - $69.9 Other Guidance Assumptions Expected Range in FY 2024 Increase in revenue producing sites (North America) 2,450 - 2,750 Seasonality 1Q24 2Q24 3Q24 4Q24 North America Same Property NOI: MH 25 % 25 % 25 % 25 % RV 16 % 26 % 41 % 17 % Marina 18 % 27 % 31 % 24 % Total 21 % 25 % 30 % 24 % UK Same Property NOI 13 % 26 % 41 % 20 % Home Sales FFO North America 24 % 32 % 26 % 18 % UK 18 % 30 % 33 % 19 % Total Home Sales 19 % 30 % 32 % 19 % Consolidated Service, Retail, Dining and Entertainment NOI 3 % 36 % 47 % 14 % Consolidated EBITDA 19 % 26 % 33 % 22 % Core FFO per Share 16 % 27 % 36 % 21 % Footnotes to 2024 Guidance Assumptions (a) The amounts in the Same Property Portfolio table reflect constant currency, as Canadian and Pound Sterling currency figures included within the 2023 amounts have been translated at the assumed exchange rates used for 2024 guidance. (b) Total Same Property results net $129.2 million and $133.2 million of utility revenue against the related utility expense in property operating expenses for 2023 results and 2024 guidance, respectively. (c) 2023 actual results exclude $0.4 million of expenses incurred at recently acquired properties to bring them up to the Company's standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy. (d) The table below summarizes the impacts of 2023 expense reclassification. Please refer to the "Definitions and Notes" section for quarterly data. (in millions, except for *) FY 2023 Reported FY 2023 Adjusted Consolidated portfolio property operating expenses $ (807.9 ) $ (810.4 ) Service, retail, dining and entertainment NOI $ 53.9 $ 68.5 General and administrative expenses $ (270.2 ) $ (272.1 ) North America home sales FFO contribution $ 18.2 $ 17.0 UK home sales FFO contribution $ 68.3 $ 59.2 Average NOI margin per home sold* $ 24,300 $ 21,100 (e) Brokerage commissions and other, net includes $23.4 million and $21.0 million of business interruption income in 2023 and 2024, respectively. (f) Brokerage commissions and other, net included approximately $8.5 million of lease income in 2023 that will be recognized in total real property NOI in 2024. (g) Includes UK home sales from Park Holidays and Sandy Bay. The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions, dispositions and capital markets activity completed through February 20, 2024. These estimates exclude all other prospective acquisitions, dispositions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements. EARNINGS CONFERENCE CALL A conference call to discuss fourth quarter results will be held on Wednesday February 21, 2024 at 11:00 A.M. (ET). To participate, call toll-free at (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through March 6, 2024 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13743159. The conference call will be available live on the Company's website located at www.suninc.com. The replay will also be available on the website. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this document that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements reflect the Company's 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 document, some of which are beyond the Company's control. These risks and uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in the Company's other filings with the Securities and Exchange Commission, from time to time, such risks, uncertainties and other factors include, but are not limited to: ∙ Changes in general economic conditions, including inflation, deflation and energy costs, the real estate industry and the markets within which the Company operates; ∙ Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully; ∙ The Company's liquidity and refinancing demands; ∙ The Company's ability to obtain or refinance maturing debt; ∙ The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes; ∙ Availability of capital; ∙ Outbreaks of disease and related restrictions on business operations; ∙ Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pound sterling; ∙ The Company's ability to maintain rental rates and occupancy levels; ∙ The Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures; ∙ The Company's remediation plan and its ability to remediate the material weakness in its internal control over financial reporting; ∙ Expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill; ∙ Increases in interest rates and operating costs, including insurance premiums and real estate taxes; ∙ Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts and wildfires; ∙ General volatility of the capital markets and the market price of shares of the Company's capital stock; ∙ The Company's ability to maintain its status as a REIT; ∙ Changes in real estate and zoning laws and regulations; ∙ Legislative or regulatory changes, including changes to laws governing the taxation of REITs; ∙ Litigation, judgments or settlements, including costs associated with prosecuting or defending claims and any adverse outcomes; ∙ Competitive market forces; ∙ The ability of purchasers of manufactured homes and boats to obtain financing; and ∙ The level of repossessions by manufactured home and boat lenders; Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included or incorporated by reference into this document, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on the Company's behalf are qualified in their entirety by these cautionary statements. Company Overview and Investor Information The Company Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada. For more information about the Company, please visit www.suninc.com. Company Contacts Management Investor Relations Gary A. Shiffman, Chairman, President and CEO Sara Ismail, Vice President Fernando Castro-Caratini, EVP and CFO (248) 208-2500 Bruce D. Thelen, EVP and COO investorrelations@suncommunities.com Corporate Debt Ratings Moody's S&P Baa3 | Stable BBB | Stable Equity Research Coverage Bank of America Merrill Lynch Joshua Dennerlein joshua.dennerlein@bofa.com Barclays Anthony Powell anthony.powell@barclays.com BMO Capital Markets John Kim jp.kim@bmo.com Citi Research Eric Wolfe eric.wolfe@citi.com Nicholas Joseph nicholas.joseph@citi.com Deutsche Bank Conor Peaks conor.peaks@db.com Omotayo Okusanya omotayo.okusanya@db.com Evercore ISI Samir Khanal samir.khanal@evercoreisi.com Steve Sakwa steve.sakwa@evercoreisi.com Green Street Advisors John Pawlowski jpawlowski@greenstreetadvisors.com JMP Securities Aaron Hecht ahecht@jmpsecurities.com RBC Capital Markets Brad Heffern brad.heffern@rbccm.com Robert W. Baird & Co. Wesley Golladay wgolladay@rwbaird.com Truist Securities Anthony Hau anthony.hau@truist.com UBS Michael Goldsmith michael.goldsmith@ubs.com Wells Fargo James Feldman james.feldman@wellsfargo.com Wolfe Research Andrew Rosivach arosivach@wolferesearch.com Keegan Carl kcarl@wolferesearch.com Financial and Operating Highlights($ in millions, except Per Share amounts) Quarters Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Financial Information Basic earnings / (loss) per share (a) $ (0.65 ) $ 0.97 $ (1.67 ) $ (0.36 ) $ 0.04 Diluted earnings / (loss) per share(a) $ (0.65 ) $ 0.97 $ (1.68 ) $ (0.36 ) $ 0.04 Cash distributions declared per common share $ 0.93 $ 0.93 $ 0.93 $ 0.93 $ 0.88 FFO per Share(a)(b) $ 1.41 $ 2.55 $ 1.96 $ 1.14 $ 1.02 Core FFO per Share(b) $ 1.34 $ 2.57 $ 1.96 $ 1.23 $ 1.33 Real Property NOI MH $ 169.3 $ 182.5 $ 168.7 $ 156.9 $ 153.5 RV 51.0 128.4 76.5 45.8 46.0 Marinas 65.3 83.1 72.4 52.0 58.3 Total $ 285.6 $ 394.0 $ 317.6 $ 254.7 $ 257.8 Recurring EBITDA $ 256.0 $ 433.0 $ 339.7 $ 237.4 $ 236.3 TTM Recurring EBITDA / Interest 3.9 x 4.0 x 4.3 x 4.6 x 5.2 x Net Debt / TTM Recurring EBITDA 6.1 x 6.1 x 6.2 x 6.1 x 6.0 x Balance Sheet Total assets(a) $ 16,940.7 $ 17,246.6 $ 17,234.9 $ 17,348.1 $ 17,084.2 Total debt $ 7,777.3 $ 7,665.0 $ 7,614.0 $ 7,462.0 $ 7,197.2 Total liabilities $ 9,506.8 $ 9,465.0 $ 9,474.8 $ 9,294.8 $ 8,992.8 Operating Information Properties MH 353 353 354 354 353 RV 179 182 182 182 182 Marina 135 135 135 135 134 Total 667 670 671 671 669 Sites, Wet Slips and Dry Storage Spaces Manufactured homes 118,430 118,250 118,170 117,970 118,020 Annual RV 32,390 32,150 31,620 30,860 30,330 Transient sites 28,490 29,770 30,270 30,870 31,180 Total sites 179,310 180,170 180,060 179,700 179,530 Marina wet slips and dry storage spaces(c) 48,030 48,030 48,180 47,990 47,820 Occupancy MH occupancy (including UK) 95.5 % 95.4 % 95.3 % 95.1 % 95.0 % Annual RV occupancy 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Blended MH and annual RV occupancy 96.4 % 96.4 % 96.3 % 96.1 % 96.0 % MH and RV Revenue Producing Site Net Gains(d) (excluding UK Operations) MH leased sites, net 387 207 285 278 346 RV leased sites, net 296 537 754 524 267 Total leased sites, net 683 744 1,039 802 613 (a) .As adjusted for Park Holidays non-cash goodwill impairment. Refer to Definitions and Notes for additional information. (b) Excludes the effects of certain anti-dilutive convertible securities. (c) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability. (d) Revenue producing site net gains do not include occupied sites acquired during the year. Portfolio Overview as of December 31, 2023 MH & RV Properties Properties MH & Annual RV RV Transient Sites Total MH and RV Sites Sites for Development Location Sites Occupancy % North America Florida 129 40,650 97.7 % 3,760 44,410 3,400 Michigan 85 32,890 97.1 % 610 33,500 1,310 California 37 6,920 98.8 % 1,880 8,800 850 Texas 29 8,990 96.1 % 1,830 10,820 3,920 Ontario, Canada 16 4,700 100.0 % 480 5,180 1,450 Connecticut 16 1,920 95.0 % 80 2,000 — Maine 15 2,470 96.0 % 1,070 3,540 200 Arizona 13 4,590 94.7 % 920 5,510 — Indiana 12 3,150 97.8 % 1,030 4,180 180 New Jersey 11 2,970 100.0 % 1,070 4,040 260 Colorado 11 2,900 87.0 % 990 3,890 1,420 Virginia 10 1,500 99.9 % 1,950 3,450 750 New York 10 1,520 99.3 % 1,420 2,940 780 Other 83 17,540 98.7 % 8,200 25,740 1,010 North America Total 477 132,710 97.4 % 25,290 158,000 15,530 United Kingdom 55 18,110 89.5 % 3,200 21,310 2,450 Total 532 150,820 96.4 % 28,490 179,310 17,980 Marina Properties Wet Slips and Dry Storage Spaces Location Florida 21 5,200 Rhode Island 12 3,460 California 11 5,710 Connecticut 11 3,330 New York 9 3,020 Massachusetts 9 2,520 Maryland 9 2,480 Other 53 22,310 Total 135 48,030 Properties Sites, Wet Slips and Dry Storage Spaces Total Portfolio 667 227,340 Consolidated Balance Sheets(amounts in millions) December 31, 2023 December 31, 2022 Assets Land $ 4,278.2 $ 4,322.3 Land improvements and buildings 11,682.2 10,903.4 Rental homes and improvements 744.4 645.2 Furniture, fixtures and equipment 1,011.7 839.0 Investment property 17,716.5 16,709.9 Accumulated depreciation (3,272.9 ) (2,738.9 ) Investment property, net 14,443.6 13,971.0 Cash, cash equivalents and restricted cash 42.7 90.4 Marketable securities — 127.3 Inventory of manufactured homes 205.6 202.7 Notes and other receivables, net 421.6 617.3 Collateralized receivables, net(a) 56.2 — Goodwill 733.0 1,018.4 Other intangible assets, net 369.5 402.0 Other assets, net 668.5 655.1 Total Assets $ 16,940.7 $ 17,084.2 Liabilities Mortgage loans payable $ 3,478.9 $ 3,217.8 Secured borrowings on collateralized receivables(a) 55.8 — Unsecured debt 4,242.6 3,979.4 Distributions payable 118.2 111.3 Advanced reservation deposits and rent 344.5 352.1 Accrued expenses and accounts payable 313.7 396.3 Other liabilities 953.1 935.9 Total Liabilities 9,506.8 8,992.8 Commitments and contingencies Temporary equity 260.9 202.9 Shareholders' Equity Common stock 1.2 1.2 Additional paid-in capital 9,466.9 9,549.7 Accumulated other comprehensive income / (loss) 12.2 (9.9 ) Distributions in excess of accumulated earnings (2,397.5 ) (1,731.2 ) Total SUI shareholders' equity 7,082.8 7,809.8 Noncontrolling interests Common and preferred OP units 90.2 78.7 Total noncontrolling interests 90.2 78.7 Total Shareholders' Equity 7,173.0 7,888.5 Total Liabilities, Temporary Equity and Shareholders' Equity $ 16,940.7 $ 17,084.2 (a) Refer to "Secured borrowings on collateralized receivables" within Definitions and Notes for additional information. Consolidated Statements of Operations(amounts in millions, except for per share amounts) Quarter Ended Year Ended December 31, 2023 December 31, 2022 % Change December 31, 2023 December 31, 2022 % Change Revenues Real property (excluding transient)(a) $ 428.7 $ 390.8 9.7 % $ 1,714.2 $ 1,548.9 10.7 % Real property - transient 44.7 49.8 (10.2) % 345.6 353.3 (2.2) % Home sales 93.2 107.7 (13.5) % 419.9 465.8 (9.9) % Service, retail, dining and entertainment 140.0 108.6 28.9 % 638.9 531.6 20.2 % Interest 4.8 9.9 (51.5) % 45.4 35.2 29.0 % Brokerage commissions and other, net 15.3 7.5 104.0 % 60.6 34.9 73.6 % Total Revenues 726.7 674.3 7.8 % 3,224.6 2,969.7 8.6 % Expenses Property operating and maintenance(a) 159.8 155.4 2.8 % 690.5 624.6 10.6 % Real estate tax 28.0 27.4 2.2 % 117.4 110.6 6.1 % Home costs and selling 70.5 76.0 (7.2) % 295.4 311.2 (5.1) % Service, retail, dining and entertainment 134.6 109.4 23.0 % 585.0 472.7 23.8 % General and administrative 77.8 69.8 11.5 % 270.2 256.8 5.2 % Catastrophic event-related charges, net 6.0 5.2 15.4 % 3.8 17.5 N/M Business combinations — 0.8 (100.0) % 3.0 24.7 (87.9) % Depreciation and amortization 177.7 154.1 15.3 % 660.0 601.8 9.7 % Asset impairments — 0.7 (100.0) % 10.1 3.0 236.7 % Goodwill impairment — — N/A 369.9 — N/A Loss on extinguishment of debt — — N/A — 4.4 (100.0) % Interest 85.9 67.6 27.1 % 325.8 229.8 41.8 % Interest on mandatorily redeemable preferred OP units / equity 0.6 1.1 (45.5) % 3.3 4.2 (21.4) % Total Expenses 740.9 667.5 11.0 % 3,334.4 2,661.3 25.3 % Income / (Loss) Before Other Items (14.2 ) 6.8 N/M (109.8 ) 308.4 N/M Gain / (loss) on remeasurement of marketable securities (8.0 ) 20.6 N/M (16.0 ) (53.4 ) (70.0) % Gain / (loss) on foreign currency exchanges 6.2 (16.3 ) N/M (0.3 ) 5.4 N/M Gain / (loss) on disposition of properties 13.9 (0.3 ) N/M 11.0 12.2 (9.8) % Other expense, net(b) (2.0 ) (4.7 ) (57.4) % (7.5 ) (2.1 ) 257.1 % Loss on remeasurement of notes receivable (103.6 ) .....»»
Sun Communities, Inc. Reports 2023 Third Quarter and Year-to-Date Results
Net Earnings per Diluted Share of $1.31 for the Quarter Core FFO per Share of $2.57 for the Quarter Exceeded the High-End of Guidance Range Total Same Property NOI Grew by 6.7% for the Quarter over the 2022 Period, Exceeding the High-End of Guidance Range by 220 Basis Points Strong Demand and Effective Expense Management Continue to Drive Outperformance Same Property Adjusted Occupancy for MH and RV Increased by 170 Basis Points, Year-over-Year Transient-to-Annual RV Site Conversions of nearly 537 Sites for the Quarter and 1,815 for the Year-to-Date Revising Full-Year Core FFO per Share Guidance for 2023 to $7.05 - $7.13 Increasing Guidance Range for Full-Year Total Same Property NOI Growth to 6.0% - 6.4% Establishing Preliminary Guidance for 2024 Rental Rate Increases of 5.4% for MH, 6.5% for Annual RV, and 5.6% for Marina in North America, and 7.1% for UK Southfield, MI, Oct. 25, 2023 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE:SUI) (the "Company" or "SUI"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities and marinas (collectively, the "properties"), today reported its third quarter results for 2023. Financial Results for the Quarter and Nine Months Ended September 30, 2023 For the quarter ended September 30, 2023, net income attributable to common shareholders was $163.1 million, or $1.31 per diluted share, compared to net income attributable to common shareholders of $162.6 million, or $1.32 per diluted share for the same period in 2022. For the nine months ended September 30, 2023, net income attributable to common shareholders was $222.8 million, or $1.79 per diluted share, compared to net income attributable to common shareholders of $237.3 million, or $1.97 per diluted share, for the same period in 2022. Non-GAAP Financial Measures Core Funds from Operations ("Core FFO") for the quarter and nine months ended September 30, 2023, were $2.57 per common share and dilutive convertible securities ("Share") and $5.76 per Share, respectively. Same Property Net Operating Income ("NOI") increased by 6.7% and 6.6% for the quarter and nine months ended September 30, 2023, respectively, as compared to the corresponding periods in 2022. "In the third quarter, we again delivered strong performance in our core real property portfolio, with Same Property NOI growth and Core FFO exceeding our expectations," said Gary A. Shiffman, Chairman, President and CEO. "This strength was exhibited across Manufactured Housing, RV and Marinas, all of which demonstrate the continued favorable backdrop of high demand and limited supply. Furthermore, we are positioned for ongoing organic growth with 2024 expected rental rate increases of approximately 5.4% for MH, 6.5% for RV, and 5.6% for Marina in North America and 7.1% for UK." He continued, "Our current objectives include implementing select changes to help our best-in-class portfolio deliver the FFO per share growth Sun shareholders historically have enjoyed. These changes include selective capital recycling opportunities and using the proceeds to de-lever. With the strength of our core business, which has a positive track record throughout economic cycles, and our focus on our durable cash flow business, we remain confident in our ability to create shareholder value." OPERATING HIGHLIGHTS North America Portfolio Occupancy Total MH and annual RV occupancy was 97.2% at September 30, 2023, as compared to 97.1% at September 30, 2022. During the quarter ended September 30, 2023, the number of MH and annual RV revenue producing sites increased by 744 sites, as compared to an increase of 689 sites during the corresponding period in 2022, an 8.0% increase. Transient-to-annual RV site conversions totaled 537 sites during the third quarter of 2023 and account for 72.2% of the revenue producing site gains. Total transient-to-annual RV site conversions totaled 1,815 for the nine months ended September 30, 2023. Same Property Results For the properties owned and operated by the Company since at least January 1, 2022, the following table reflects the percentage changes for the quarter and nine months ended September 30, 2023: Quarter Ended September 30, 2023 MH RV Marina Total Revenue 7.4 % 2.2 % 8.4 % 5.5 % Expense 5.7 % (0.8) % 7.4 % 3.0 % NOI 8.0 % 4.1 % 8.9 % 6.7 % Nine Months Ended September 30, 2023 MH RV Marina Total Revenue 6.8 % 3.6 % 9.4 % 6.2 % Expense 8.5 % 3.1 % 5.1 % 5.5 % NOI 6.2 % 3.9 % 11.5 % 6.6 % Number of Properties 288 161 119 568 Same Property adjusted blended occupancy for MH and RV increased by 170 basis points to 98.8% at September 30, 2023, from 97.1% at September 30, 2022. INVESTMENT ACTIVITY During the quarter ended September 30, 2023, the Company: Expanded its existing communities by nearly 170 sites. Delivered over 70 sites at one ground-up development property. BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS As of September 30, 2023, the Company had $7.7 billion in debt outstanding with a weighted average interest rate of 4.1% and a weighted average maturity of 6.8 years. At September 30, 2023, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times. During the quarter, the Company entered into interest rate swap contracts to hedge variable rate borrowings of $125.0 million in aggregate under its senior credit facility. The interest rate swaps lock in a weighted average SOFR rate of 4.771%, and inclusive of spread, an all-in rate of 5.681% through the maturity date of April 7, 2026. Subsequent to the quarter, the Company: Entered into an interest rate swap contract to hedge variable rate borrowings of $25.0 million under its senior credit facility. The interest rate swap lock in a weighted average SOFR rate of 4.684%, and inclusive of spread, an all-in rate of 5.594% through the term loan maturity date of April 7, 2026. Terminated one SOFR interest rate swap hedging variable rate borrowings of $50.0 million under its senior credit facility and received a cash settlement payment of $6.0 million. The net accumulated gain is included in Accumulated other comprehensive income on the Company's Consolidated Balance Sheets, and will be amortized as a reduction to Interest expense over the term of the hedged transaction. Entered into a new mortgage term loan for $252.8 million that matures in November 2030 and bears interest at a fixed rate of 6.49%. The proceeds were used to repay $117.8 million of mortgage term loans that mature in 2023 and pay down amounts drawn under the Company's senior credit facility. Sold its 41.8 million share position in Ingenia Communities Group (ASX: INA), generating $102.5 million of proceeds, net of underwriting and other estimated fees, with an estimated realized loss of $9.0 million. The proceeds were used to pay down amounts drawn under the Company's senior credit facility. UK Notes Receivable from Real Estate Operators From time to time, the Company extends loans to third party real estate developers and operators to facilitate the Company's potential acquisition and development pipeline. At September 30, 2023, the Company had a $361.1 million note receivable due from Royale Holdings Group HoldCo Limited, a real estate development owner / operator in the UK, and certain other parties (the "Note"). As of the same date, the borrowings under the Note bear interest at a weighted average rate of 12.4%. The Note is not related to the Company's manufactured housing portfolio in the UK that operates under the Park Holidays brand. Since inception, the Company has elected to measure the Note at fair value, using pricing models with the assistance of third-party valuation specialists, in accordance with Accounting Standards Codification Topic 820, "Fair Value Measurements and Disclosures." The Company has also periodically engaged third party valuation specialists to appraise the collateral in order to assess the fair value of the Note. The Note is collateralized by a first-priority security interest in three real estate properties and three MH manufacturers in the UK. The real estate collateral consists of MH development properties that comprised a significant majority of the total appraised value of all collateral securing the Note at September 30, 2023.The Note matured on July 31, 2023, and remained due at September 30, 2023. On September 29, 2023, the Company appointed receivers over the real estate collateral and is assessing courses of action with respect to the other collateral. The Company expects the receivers to start to market the real estate collateral for sale during the fourth quarter of 2023. Upon completion of the marketing process, the Company may elect to credit bid certain amounts due under the Note for the real estate collateral. If that were to occur and no third-party bid is received that exceeds the Company's credit bid, the Company may elect to receive the real estate collateral in satisfaction of related amounts due under the Note. If a third-party bid is received that exceeds the Company's bid, the Company will receive the cash proceeds of that bid up to the outstanding loan amount including interest, fees, and penalties, as applicable. UK Contemplated Asset Sale As previously disclosed, the Company had agreed to sell an operating MH community in the UK, Sandy Bay, in February 2023, which was expected to close in the third quarter. While the sale contract is no longer in effect, the asset remained classified as held for sale at September 30, 2023. 2023 GUIDANCE UPDATE The Company is updating full-year 2023 and establishing fourth quarter 2023 guidance for diluted EPS and Core FFO per Share as follows: Reconciliation of Diluted EPS to Core FFO per Share Full-Year Ending December 31, 2023 Fourth QuarterEnding December 31, 2023 Prior FY Guidance Revised FY Range Diluted EPS $ 2.11 $ 2.25 $ 1.92 $ 2.00 $ 0.12 $ 0.20 Depreciation and amortization 5.07 5.07 5.06 5.06 1.26 1.26 Distributions on preferred OP units 0.09 0.09 0.09 0.09 0.02 0.02 Noncontrolling interest 0.11 0.11 0.09 0.09 (0.01 ) (0.01 ) Gain on sale of assets (0.28 ) (0.28 ) (0.25 ) (0.25 ) (0.07 ) (0.07 ) Business combination expense and other acquisition related costs 0.09 0.09 0.12 0.12 0.01 0.01 Other adjustments(a) (0.10 ) (0.10 ) 0.02 0.02 (0.05 ) (0.05 ) Core FFO(b) per Share $ 7.09 $ 7.23 $ 7.05 $ 7.13 $ 1.28 $ 1.36 (a) Other adjustments consist primarily of deferred taxes, changes in remeasurement (gains) / losses, contingent legal and insurance gains and other items presented in the table that reconciles Net income attributable to SUI common shareholders to Core FFO on page 6. (b) The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the 2023 Guidance Assumptions table presented below. The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material. The $7.09 per Share midpoint of the revised full-year guidance range is 1.0% lower than the prior range provided in July, primarily reflecting higher interest expense related to the UK Note remaining outstanding and lower expected transient RV revenues. For the fourth quarter ending December 31, 2023, the Company's guidance ranges assume Total Same Property NOI growth of 4.4% - 5.9%. The midpoints of Same Property NOI growth for the fourth quarter ending December 31, 2023 are 5.1% for Manufactured Housing, 3.6% for RV and 6.2% for Marina. The assumptions underlying the Company's revised 2023 full-year guidance are as follows: FY 2022 Expected Change in 2023 2023 Guidance Assumptions (dollars in millions) Results Prior FY Guidance Revised FY Range Consolidated Portfolio: Total real property NOI 6.1% - 6.9% 6.9% - 7.1% Service, retail, dining and entertainment NOI $50.4 - $52.9 $51.2 - $52.2 North America home sales contribution to Core FFO(a) $18.9 - $21.7 $19.4 - $20.5 Interest income(b) N/A $44.8 - $45.1 Brokerage commissions and other, net(c) N/A $50.9 - $51.4 General and administrative expenses ($255.4) - ($249.9) ($253.6) - ($252.1) UK UK real property NOI(d) $63.6 - $65.6 $64.1 - $65.1 UK home sales NOI $65.7 - $75.4 $68.2 - $72.2 UK NOI $129.3 - $141.0 $132.3 - $137.3 Same Property Portfolio(e) MH NOI (288 properties) $ 569.2 5.2% - 5.8% 5.8% - 6.1% RV NOI (161 properties) $ 281.8 3.4% - 4.6% 3.5% - 4.2% Marina NOI (119 properties) $ 210.8 8.0% - 9.0% 10.0% - 10.3% Total Same Property Pool (568 Properties): Revenue from real property $ 1,600.4 6.2% - 6.5% 5.8% - 6.0% Property operating expenses(f)(g) $ 538.6 7.2% - 7.9% 5.2% - 5.4% Same Property NOI $ 1,061.8 5.3% - 6.1% 6.0% - 6.4% Exchange rates in effect at: December 31, 2022 June 30, 2023 September 30, 2023 U.S. Dollar ("USD") / Pound Sterling ("GBP") 1.21 1.27 1.22 USD / Canadian Dollar ("CAD") 0.74 0.75 0.74 USD / Australian Dollar ("AUS") 0.68 0.66 0.64 Footnotes to 2023 Guidance Assumptions (a) FFO from home sales in North America is net of home selling expenses and includes the gross profit from new and certain pre-owned home sales. Gross profit from pre-owned home sales of depreciated homes is excluded. (b) Interest income recognized from the UK Note during the first nine months ended September 30, 2023, totaled $27.9 million, or $0.22 per Share. No interest income from the UK Note is included in the Company's fourth quarter guidance. The following table summarizes the interest income contribution inclusive of fourth quarter guidance: Interest Income - 2023 Guidance Nine Months Ended September 30, 2023 4Q23 Guidance FY 2023 Guidance UK Note $ 27.9 $ 0.0 $ 27.9 Other 12.7 4.2 - 4.5 16.9 - 17.2 Total $ 40.6 $4.2 - $4.5 $44.8 - $45.1 (c) For the third quarter and nine months ended September 30, 2023, Brokerage commissions and other, net includes recognition of $12.9 million of business interruption proceeds, which nets against accrued 'Loss of earnings - catastrophic event-related charges, net' in the Reconciliation of Net Income Attributable to SUI Common Shareholders to Core FFO table. (d) UK Real Property NOI is included in the Total Real Property NOI forecast and the properties are excluded from the 2023 Same Property pool. (e) The amounts in the table reflect constant currency, as currency figures included within the 2022 actual amounts have been translated at the assumed exchange rate used for 2023 guidance. (f) Total Same Property results net $101.1 million of utility revenue for 2022 actual results and $109.7 million for 2023 guidance against the related utility expense in property operating expenses. (g) 2022 actual results exclude $1.3 million of expenses incurred at recently acquired properties to bring them up to the Company's standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy. Seasonality (Updated as of October 25, 2023) 1Q23 2Q23 3Q23 4Q23 Same Property NOI: MH 25 % 25 % 25 % 25 % RV 16 % 25 % 42 % 17 % Marina 20 % 27 % 30 % 23 % Total Same Property 21 % 26 % 30 % 23 % UK NOI: Real property 10 % 27 % 44 % 19 % Home sales 18 % 35 % 33 % 14 % Total NOI from UK Operations 14 % 31 % 38 % 17 % Consolidated Service, Retail, Dining and Entertainment NOI 5 % 36 % 49 % 10 % Consolidated EBITDA 19 % 27 % 34 % 20 % Core FFO per Share 17 % 28 % 36 % 19 % Preliminary 2024 Rental Rate IncreasesThe Company expects to realize the following rental rate increases, on average, during 2024: Average 2024 Rental Rate Increases Expected Manufactured Housing: North America 5.4 % UK 7.1 % Annual RV 6.5 % Marina 5.6 % The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions, dispositions and capital markets activity completed through October 25, 2023. These estimates exclude all other prospective acquisitions, dispositions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements. EARNINGS CONFERENCE CALL A conference call to discuss third quarter results will be held on Thursday, October 26, 2023 at 2:00 P.M. (ET). To participate, call toll-free at (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through November 9, 2023 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13739128. The conference call will be available live on the Company's website located at www.suncommunities.com. The replay will also be available on the website. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this document that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements reflect the Company's 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 document, some of which are beyond the Company's control. These risks and uncertainties and other factors may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in the Company's other filings with the Securities and Exchange Commission, from time to time, such risks, uncertainties and other factors include, but are not limited to: ∙ Outbreaks of disease and related restrictions on business operations; ∙ Changes in general economic conditions, including inflation, deflation and energy costs, the real estate industry and the markets within which the Company operates; ∙ Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully; ∙ The Company's liquidity and refinancing demands; ∙ The Company's ability to obtain or refinance maturing debt; ∙ The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes; ∙ Availability of capital; ∙ Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pound sterling; ∙ The Company's ability to maintain rental rates and occupancy levels; ∙ The Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures; ∙ Increases in interest rates and operating costs, including insurance premiums and real estate taxes; ∙ Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts and wildfires; ∙ General volatility of the capital markets and the market price of shares of the Company's capital stock; ∙ The Company's ability to maintain its status as a REIT; ∙ Changes in real estate and zoning laws and regulations; ∙ Legislative or regulatory changes, including changes to laws governing the taxation of REITs; ∙ Litigation, judgments or settlements, including costs associated with prosecuting or defending claims and any adverse outcomes; ∙ Competitive market forces; ∙ The ability of purchasers of manufactured homes and boats to obtain financing; and ∙ The level of repossessions by manufactured home and boat lenders; Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included or incorporated by reference into this document, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on the Company's behalf are qualified in their entirety by these cautionary statements. Company Overview and Investor Information The Company Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of September 30, 2023, the Company owned, operated, or had an interest in a portfolio of 670 developed MH, RV and Marina properties comprising approximately 180,170 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada. For more information about the Company, please visit www.suncommunities.com. Company Contacts Management Investor Relations Gary A. Shiffman, Chairman, President and CEO Sara Ismail, Vice President Fernando Castro-Caratini, EVP and CFO (248) 208-2500 Bruce D. Thelen, EVP and COO investorrelations@suncommunities.com Corporate Debt Ratings Moody's S&P Baa3 | Stable BBB | Stable Equity Research Coverage Bank of America Merrill Lynch Joshua Dennerlein joshua.dennerlein@bofa.com Barclays Anthony Powell anthony.powell@barclays.com BMO Capital Markets John Kim jp.kim@bmo.com Citi Research Eric Wolfe eric.wolfe@citi.com Nicholas Joseph nicholas.joseph@citi.com Evercore ISI Samir Khanal samir.khanal@evercoreisi.com Steve Sakwa steve.sakwa@evercoreisi.com Green Street Advisors John Pawlowski jpawlowski@greenstreetadvisors.com JMP Securities Aaron Hecht ahecht@jmpsecurities.com RBC Capital Markets Brad Heffern brad.heffern@rbccm.com Robert W. Baird & Co. Wesley Golladay wgolladay@rwbaird.com Truist Securities Anthony Hau anthony.hau@truist.com UBS Michael Goldsmith michael.goldsmith@ubs.com Wells Fargo James Feldman james.feldman@wellsfargo.com Wolfe Research Andrew Rosivach arosivach@wolferesearch.com Keegan Carl kcarl@wolferesearch.com Financial and Operating Highlights(amounts in millions, except for *) Quarters Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Financial Information Basic earnings / (loss) per share* $ 1.31 $ 0.72 $ (0.24 ) $ 0.04 $ 1.32 Diluted earnings / (loss) per share* $ 1.31 $ 0.72 $ (0.24 ) $ 0.04 $ 1.32 Cash distributions declared per common share* $ 0.93 $ 0.93 $ 0.93 $ 0.88 $ 0.88 FFO per Share(a)* $ 2.55 $ 1.95 $ 1.14 $ 1.02 $ 2.54 Core FFO per Share(a)* $ 2.57 $ 1.96 $ 1.23 $ 1.33 $ 2.65 Real Property NOI MH $ 182.5 $ 168.7 $ 156.9 $ 153.5 $ 166.8 RV 128.4 76.5 45.8 46.1 127.0 Marinas 83.1 72.4 52.0 58.3 77.8 Total $ 394.0 $ 317.6 $ 254.7 $ 257.9 $ 371.6 Recurring EBITDA $ 433.0 $ 339.7 $ 237.4 $ 236.3 $ 408.1 TTM Recurring EBITDA / Interest* 4.0 x 4.3 x 4.6 x 5.2 x 5.7 x Net Debt / TTM Recurring EBITDA 6.1 x 6.2 x 6.1 x 6.0 x 5.7 x Balance Sheet Total assets $ 17,605.3 $ 17,561.4 $ 17,363.8 $ 17,084.2 $ 16,484.6 Total debt $ 7,665.0 $ 7,614.0 $ 7,462.0 $ 7,197.2 $ 6,711.0 Total liabilities $ 9,465.0 $ 9,474.8 $ 9,294.8 $ 8,992.8 $ 8,354.6 Operating Information* Properties MH 353 354 354 353 350 RV 182 182 182 182 181 Marina 135 135 135 134 131 Total 670 671 671 669 662 Sites, Wet Slips and Dry Storage Spaces* Manufactured homes 118,250 118,170 117,970 118,020 116,910 Annual RV 32,150 31,620 30,860 30,330 32,030 Transient site 29,770 30,270 30,870 31,180 31,150 Total sites 180,170 180,060 179,700 179,530 180,090 Marina wet slips and dry storage spaces(b) 48,030 48,180 47,990 47,820 46,190 Occupancy* MH occupancy (including UK) 95.4 % 95.3 % 95.1 % 95.0 % 95.5 % Annual RV occupancy 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Blended MH and annual RV occupancy 96.4 % 96.3 % 96.1 % 96.0 % 96.5 % MH and RV Revenue Producing Site Net Gains(c) (excluding UK Operations)* MH leased sites, net 207 285 278 346 122 RV leased sites, net 537 754 524 267 567 Total leased sites, net 744 1,039 802 613 689 (a) Excludes the effects of certain anti-dilutive convertible securities. (b) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability. (c) Revenue producing site net gains do not include occupied sites acquired during the year.(d) Portfolio Overview as of September 30, 2023 MH & RV Properties Properties MH & Annual RV RV Transient Sites Total MH and RV Sites Sites for Development Location Sites Occupancy % North America Florida 129 40,460 97.5 % 3,950 44,410 3,400 Michigan 85 32,850 96.7 % 630 33,480 1,300 California 37 6,920 98.8 % 1,880 8,800 850 Texas 31 8,950 95.2 % 2,580 11,530 4,000 Ontario, Canada 16 4,680 100.0 % 500 5,180 1,450 Connecticut 16 1,930 94.8 % 80 2,010 — Maine 15 2,470 95.6 % 1,070 3,540 200 Arizona 13 4,570 94.4 % 940 5,510 — Indiana 12 3,160 97.2 % 1,020 4,180 180 New Jersey 11 3,000 100.0 % 1,050 4,050 260 Colorado 11 2,810 89.1 % 990 3,800 1,490 Virginia 10 1,480 99.9 % 1,970 3,450 750 New York 10 1,520 99.1 % 1,420 2,940 780 New Hampshire 10 1,740 99.9 % 680 2,420 80 Other 74 15,810 98.5 % 7,730 23,540 940 North America Total 480 132,350 97.2 % 26,490 158,840 15,680 United Kingdom 55 18,050 90.6 % 3,280 21,330 2,290 Total 535 150,400 96.4 % 29,770 180,170 17,970 Marina Properties Wet Slips and Dry Storage Spaces Location Florida 21 5,200 Rhode Island 12 3,460 California 11 5,710 Connecticut 11 3,330 New York 9 3,020 Maryland 9 2,480 Massachusetts 9 2,520 Other 53 22,310 Total 135 48,030 Properties Sites, Wet Slips and Dry Storage Spaces Total Portfolio 670 228,200 Consolidated Balance Sheets(amounts in millions) September 30, 2023 December 31, 2022 Assets Land $ 3,996.4 $ 4,322.3 Land improvements and buildings 11,418.4 10,903.4 Rental homes and improvements 725.6 645.2 Furniture, fixtures and equipment 995.1 839.0 Investment property 17,135.5 16,709.9 Accumulated depreciation (3,144.8 ) (2,738.9 ) Investment property, net 13,990.7 13,971.0 Cash, cash equivalents and restricted cash 62.0 90.4 Marketable securities 112.8 127.3 Inventory of manufactured homes 219.8 202.7 Notes and other receivables, net 832.2 617.3 Goodwill 1,084.1 1,018.4 Other intangible assets, net 374.7 402.0 Other assets, net 929.0 655.1 Total Assets $ 17,605.3 $ 17,084.2 Liabilities Secured debt $ 3,359.5 $ 3,217.8 Unsecured debt 4,305.5 3,979.4 Distributions payable 118.2 111.3 Advanced reservation deposits and rent 372.7 352.1 Accrued expenses and accounts payable 380.2 396.3 Other liabilities 928.9 935.9 Total Liabilities 9,465.0 8,992.8 Commitments and contingencies Temporary equity 304.5 202.9 Shareholders' Equity Common stock 1.2 1.2 Additional paid-in capital 9,581.6 9,549.7 Accumulated other comprehensive income / (loss) 5.2 (9.9 ) Distributions in excess of accumulated earnings (1,848.2 ) (1,731.2 ) Total SUI shareholders' equity 7,739.8 7,809.8 Noncontrolling interests Common and preferred OP units 96.0 78.7 Total noncontrolling interests 96.0 78.7 Total Shareholders' Equity 7,835.8 7,888.5 Total Liabilities, Temporary Equity and Shareholders' Equity $ 17,605.3 $ 17,084.2 Consolidated Statements of Operations(amounts in millions, except for per share amounts) Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 % Change September 30, 2023 September 30, 2022 % Change Revenues Real property (excluding transient) $ 457.2 $ 425.3 7.5 % $ 1,285.5 $ 1,158.1 11.0 % Real property - transient 161.6 160.4 0.7 % 300.9 303.5 (0.9) % Home sales 117.8 150.7 (21.8) % 326.7 358.1 (8.8) % Service, retail, dining and entertainment 205.4 174.2 17.9 % 498.9 423.0 17.9 % Interest 15.2 11.2 35.7 % 40.6 25.3 60.5 % Brokerage commissions and other, net 26.0 10.8 140.7 % 45.3 27.4 65.3 % Total Revenues 983.2 932.6 5.4 % 2,497.9 2,295.4 8.8 % Expenses Property operating and maintenance 195.5 184.7 5.8 % 530.7 469.2 13.1 % Real estate tax 29.3 29.4 (0.3) % 89.4 83.2 7.5 % Home costs and selling 80.5 96.4 (16.5) % 224.9 235.2 (4.4) % Service, retail, dining and entertainment 178.7 144.9 23.3 % 450.4 363.3 24.0 % General and administrative 66.2 69.1 (4.2) % 192.4 187.0 2.9 % Catastrophic event-related charges, net (3.1 ) 12.2 (125.4) % (2.2 ) 12.3 (117.9) % Business combinations — 8.4 (100.0) % 3.0 23.9 (87.4) % Depreciation and amortization 162.6 149.7 8.6 % 482.3 447.7 7.7 % Asset impairments 1.2 1.6 (25.0) % 10.1 2.3 N/M Loss on extinguishment of debt — 4.0 (100.0) % — 4.4 (100.0) % Interest 84.1 61.7 36.3 % 239.9 162.2 47.9 % Interest on mandatorily redeemable preferred OP units / equity 0.8 1.0 (20.0) % 2.7 3.1 (12.9) % Total Expenses 795.8 763.1 .....»»
Rolling Stone Boss Edited Out Child Porn Accusations After Journo-Pal Raided By FBI
Rolling Stone Boss Edited Out Child Porn Accusations After Journo-Pal Raided By FBI After the FBI conducted a raid on a journalist last April, Rolling Stone national security reporter Tatiana Siegel wrote that it was "quite possibly, the first" carried out by the Biden administration on a reporter - in this case, former ABC national security reporter James Gordon Meek, who was previously an investigator for the House Homeland Security Committee. James Gordon Meek The RS article, which casts Meek as an unimpeachable truthsayer, framed the raid as an abuse of power, NPR reports. "Meek appears to be on the wrong side of the national-security apparatus," reads the article. Siegel's sources told her that "federal agents allegedly found classified information on Meek's laptop during their raid." But what we didn't know at the time was that Rolling Stone Editor-in-hief Noah Shachtman - a friend of Meek, made the rare decision to personally edit Siegel's article to remove all mention that the raid was part of a federal investigation into child porn. As edited by Rolling Stone Editor-in-Chief Noah Shachtman, however, the article omitted a key fact that Siegel initially intended to include: Siegel had learned from her sources that Meek had been raided as part of a federal investigation into images of child sex abuse, something not publicly revealed until last month. Why did Rolling Stone suggest Meek was targeted for his coverage of national security, rather than something unrelated to his journalism? ... When Siegel detailed the seriousness of the allegations against Meek, Shachtman warned her against turning in a story that included the words "child pornography" in it. -NPR According to the report, Shachtman "considered Meek a peer with whom he was friendly," and told colleagues that the two men "travel in the same professional circles." Shortly before Shachtman joined Rolling Stone, Meek suggested on Twitter that Shachtman should pay attention to an obscure band from Niger — the location of the botched military mission that Meek helped investigate for ABC. Shachtman replied by linking to an earlier review. Meek soon emailed Shachtman to gauge interest in covering his Hulu documentary series. The new Rolling Stone editor passed the note along to colleagues; the magazine posted a glowing review some weeks later, in November 2021. -NPR Shachtman also insisted that staffers use a generic photograph instead of Meek's image. "let's not use a picture of the guy in question, james gordon meek," he requested, adding "something FBY-y please." According to NPR, citing two anonymous sources, Washington attorney Mark "I've gotten clearances for guys who had child porn issues and love hanging out at Disney World by myself" Zaid called Shachtman on Meek's behalf while Siegel was writing up the story. Attorney Mark Zaid Zaid confirmed to NPR that he called Shachtman - and admitted that Meek was a longtime friend and client who he was representing on any potential prosecution or investigation of his potential possession of classified material. Then things get even weirder According to the report, "The accounts given by the associates, colleagues and friends of the two key figures — Siegel and Shachtman — diverge here." According to what Siegel told others, Shachtman and she agreed that the article would reflect that the FBI's interest stemmed from concerns of possible criminal behavior outside the scope of Meek's work — that is, it had nothing to do with national security or journalism. Shachtman later told others that he did not believe that she had nailed down her sourcing adequately. Rolling Stone parent company Penske Media notes that authority to make such choices for Rolling Stone's coverage lies with Shachtman. "That was true in this case, as reflected in the final edits to the story," the company said in a statement to NPR. "Some material was added late in the process, other material was dropped." -NPR Aaaand it's gone As NPR reports, after Siegel had to step away from the article to care for her ailing mother, Shachtman changed Siegel's draft to remove all suggestions that the raid was about anything other than Meek's FBI reporting, just hours before it was set to go to publication - saying only that the FBI had allegedly found "classified information" on Meek's devices. The article left many readers with the distinct impression that the investigation was linked to Meek's reporting — which could lead to a clash of the government and the press. Rolling Stone's official Twitter account promoted the story this way: "Exclusive: Emmy-winning ABC News producer James Gordon Meek had his home raided by the FBI. His colleagues say they haven't seen him since." The tweet's thrust was echoed by WikiLeaks, Glenn Beck and the Freedom of the Press Foundation, which wrote, "If this was related to his work, as this @RollingStone report suggests it might be, it is a gross press freedom violation." -NPR Aaaand she's gone According to colleagues and friends, Siegel says she didn't know about the changes to her story until it appeared online, and was furious about what she considered Shachtman's interference with the independence of her reporting. Two months later, Siegel accepted a position at a sister publication. My how the wagons circle... Tyler Durden Wed, 03/22/2023 - 14:42.....»»
NY Regulates Blogs With Hateful Conduct
NY Regulates Blogs With Hateful Conduct – BUT; There’s an Easy Way for Blog Operators to Avoid the $1000/day Fines New York Passes Law To Regulate Blogs WASHINGTON, D.C. (December 19, 2022) – New York has a new law which purports to require all blog operators to have a policy dealing with so-called hateful speech […] NY Regulates Blogs With Hateful Conduct – BUT; There’s an Easy Way for Blog Operators to Avoid the $1000/day Fines New York Passes Law To Regulate Blogs WASHINGTON, D.C. (December 19, 2022) – New York has a new law which purports to require all blog operators to have a policy dealing with so-called hateful speech posted by third parties, and also to have a mechanism to respond to user complaints about such posts. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more But there seems to be an easy way for those concerned about this attempt to regulate speech to avoid the $1000-a-day fines New York's Attorney General plans to impose for violations. Law professor Eugene Volokh, a well known First Amendment advocate, has declared the law an unconstitutional restriction on protected speech, and has filed a lawsuit to nullify it, saying: "New York politicians are slapping a badge on my chest. . . By obligating me to do the state’s bidding with regard to viewpoints that New York condemns, the law violates the First Amendment. .. By challenging this law, I hope I can put down the badge and go back to my keyboard—because legislators can fight crime and respond to hate without violating the First Amendment or drafting me into the speech police." But another well known law professor who also has also won several free speech cases, John Banzhaf, says that while he fully supports Volokh's efforts, there's an easy way for blog operators to avoid the law, and the apparently unconstitutional burdens it seeks to impose on bloggers in New York State as well as elsewhere - since it apples to any "social media network that conducts business in the state." New York now has a law [N.Y. Gen. Bus. Law § 394-CCC] which purports to require those who "for profit-making purposes [e.g. permit ads] operate internet platforms that are designed to enable users to share any content with other users or to make such content available to the public" to have "a clear and concise policy . . . [about how] such social media network will respond and address the reports of incidents of hateful conduct on their platform." It also purports to require each blog operator to "provide and maintain a clear and easily accessible mechanism for individual users to report incidents of hateful conduct" and also a method to "allow the social media network to provide a direct response to any individual reporting hateful conduct informing them of how the matter is being handled." Targetting Hateful Conduct The law targets what it calls "hateful conduct" - although it is actually just the posting of speech/messages on the Internet - which it defines as "the use of a social media network to vilify, humiliate, or incite violence against a group or a class of persons on the basis of race, color, religion, ethnicity, national origin, disability, sex, sexual orientation, gender identity or gender expression." Because this very sparse description is not further defined, it might be interpreted to mean any statement which a sensitive person might find critical or not even sufficiently respectful of his identity group. But, since the law does not require any specific policy regarding what it calls "hateful conduct," Prof. Banzhaf suggests posting as a "a clear and concise policy" something like any of the following: "We won't do anything about speech defined as hateful under this law." OR "We take no action because even hate speech is protected by the First Amendment to the U.S. Constitution" OR "We permit the posting of even hateful speech, and will bring lawsuits under 42 U.S.C. § 1983 against any state official who tries to stop us for exercising our constitutional rights to do so." Interestingly, New York State has itself suggested, probably to improve its litigating position, that policies such as these would comply with the statute and be lawful because "the law is content-neutral" - although opponents dispute this characterization and maintain that it is viewpoint-based. In order to comply with the requirement for a mechanism which blog readers who are offended can use to report violations, and to receive a "direct response" "informing them of how the matter is being handled," Banzhaf suggests something like: "Thank you for your email. In accordance with our stated policy, we aren't going to do anything." OR "We will post your entire comment - including personal identifying information - on our blog" OR "In accordance with our policy, we will do nothing more than use an automatic email forwarding program to forward your email to the following New York State officials: kathleen.hochul@exec.ny.gov; stacy.lynch@exec.ny.gov; elizabeth.fine@exec.ny.gov; letitia.james@ag.ny.gov; jennifer.levy@ag.ny.gov; lawrence.schimmel@ag.ny.gov Professor Banzhaf also urges all other bloggers apparently subject to this new law to send emails to the officials noted above to explain their views regarding this new law......»»
NAI Hanson and NAI Partners Negotiate Two Leases Covering 183,125 Square Feet at Houston Multimodal Industrial Park
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, and NAI Partners, a full-service commercial real estate firm in Houston, Austin and San Antonio, announce they have negotiated a lease with JD Fields & Company, Inc. for 133,125 square feet and ZL Chemicals for 50,000 square feet of industrial space at... The post NAI Hanson and NAI Partners Negotiate Two Leases Covering 183,125 Square Feet at Houston Multimodal Industrial Park appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, and NAI Partners, a full-service commercial real estate firm in Houston, Austin and San Antonio, announce they have negotiated a lease with JD Fields & Company, Inc. for 133,125 square feet and ZL Chemicals for 50,000 square feet of industrial space at the Greens Port Industrial Park located at 1755 Federal Road in Houston, Texas. Steve Pastor of NAI James E. Hanson’s Global Supply Chain, Ports & Rail Logistics Practice along with NAI Partners’ Gray Gilbert, Chris Haro and Jack Gilbert represented the property’s owner, Watco, in the transactions and serve as exclusive leasing brokers for the property’s available space. A key piece of Port Houston’s shipping infrastructure, the 735-acre industrial park is owned by Watco, a single-source transportation and supply chain services company with locations throughout North America and Australia. The site boasts over three million square feet of warehouse space, storage for 1,600 rail cars across four rail yards as well as seven deep water and nine barge berths along the Houston Ship Channel. The multimodal property can easily handle ocean vessels, barges, trains, and trucks carrying a diverse variety of freight such as dimensional shipments including wind turbine components, vessels and machinery; plastics; liquids such as chemicals, petrochemicals, and petroleum products or crude oil refined products, and ethanol; building materials; bulk solids and steel in all forms. NAI James E. Hanson and NAI Partners are representing Watco in the marketing of a 60-acre site within the Greens Port Industrial Park that is currently available for lease. Headquartered in Houston, JD Fields & Company, Inc. is a supplier of high-quality steel products to customers around the world. Since 1985, JD Fields & Company, Inc.’s global network of manufacturing and distribution hubs have helped provide customers across the energy, water treatment and construction industries with millions of tons of steel products to bring their projects to life. Its lease at Greens Ports Industrial Park will enable the company to leverage the property’s multimodal shipping flexibility to further streamline its national and international distribution capabilities to ensure it can continue to quickly and efficiently meet the needs of its customers. For over 25 years, ZL Chemicals has been a leading polyacrylamide manufacturer whose innovative solutions have helped solve some of the oil and gas industry’s toughest challenges. Also headquartered nearby in Houston, the company recognized that Greens Port Industrial Park’s multimodal connectivity and flexible industrial spaces will make it an important component of its global supply chain network. “Unfortunately, the challenges facing companies with complex international supply chains continue to be significant and difficult to overcome,” said Pastor. “Over the past 18 months, logistics tasks as simple as offloading cargo from ship to shore have become increasingly time-consuming and expensive at many ports across the nation due to a shortage of chassis and container boxes along with rising labor costs. For this reason, Greens Port Industrial Park stands out as it offers direct access to one of the nation’s most important ports and its flexibility ensures the site can be a critical piece in ensuring the long-term viability and efficiency of companies’ supply chain networks.” The site’s unique multimodal accessibility and build-to-suit opportunities present a rare opportunity for tenants with complex shipping and fulfillment needs. With access to Watco’s robust dock infrastructure along the Houston Ship Channel, tenants at the Greens Port Industrial Park can easily transport freight to and from national and international ports. Additionally, the property offers ample connections to Union Pacific, BNSF and Kansas City Southern’s international and national rail networks. Select buildings within the Greens Port Industrial Park also offer direct freight rail loading capacity. Further accentuating Green Port’s potential, the site is located just one mile from Interstate 10 and features direct highway access to the Barbours Cut Container Terminal and the Bayport Container Terminal at Port Houston, the number one U.S. port in waterborne tonnage. Tenants at the Greens Port Industrial Park can also make use of Watco’s on-site stevedoring, drayage and material handling services to ensure operational efficiency and significant cost savings on day one in their new space. Greens Port Industrial Park currently has 208,000± square feet of space available for lease as well as 60± acres available for build-to-suit, land lease and/or outdoor storage. For more information about leasing opportunities at Greens Port Industrial Park, please contact Steve Pastor of NAI James E. Hanson’s Global Supply Chain, Ports & Rail Logistics Practice at 201-478-7376 or spastor@naihanson.com or Gray Gilbert of NAI Partners at 713-301-7252 or gray.gilbert@naipartners.com. To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), Instagram (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI Hanson and NAI Partners Negotiate Two Leases Covering 183,125 Square Feet at Houston Multimodal Industrial Park appeared first on Real Estate Weekly......»»
NAI James E. Hanson Negotiates Sale of 22,000 Square-Foot Auto Retail Building in Hackensack’s Redevelopment Zone
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 22,000-square-foot auto retail building located at 55 Midtown Bridge Approach in Hackensack, N.J. NAI James E Hanson’s Anthony J. Cassano represented both the buyer, 55 Bridge Management LLC,... The post NAI James E. Hanson Negotiates Sale of 22,000 Square-Foot Auto Retail Building in Hackensack’s Redevelopment Zone appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 22,000-square-foot auto retail building located at 55 Midtown Bridge Approach in Hackensack, N.J. NAI James E Hanson’s Anthony J. Cassano represented both the buyer, 55 Bridge Management LLC, and the seller, Globe Tire Services, in the transaction. Located in the heart of Hackensack’s Redevelopment Zone, 55 Midtown Bridge Approach is a freestanding auto-repair retail space sitting on 1.5 acres. Situated on a high-visibility lot between two local roads, the property’s central location allows for quick access to some of the region’s major roadways, as well as major retailers such as CVS Pharmacy, McDonald’s, and AutoZone. The building also features 30 plus parking spaces and expansive building signage, including three pylon signs offering prime exposure in the property’s high traffic area. In addition, the property is adjacent to the high-profile Print House project on the former site of the Bergen Record and nearby several other large-scale redevelopment projects that make it an exceptional opportunity to capitalize on the city’s continued population growth. As a result of NAI James E. Hanson’s marketing strategy, the buyer, a successful tenant of the building, will be utilizing the property to expand upon the existing on-site auto repair and car wash services through the addition of a full-service body paint and repair service. “This deal further underscores our team’s unique ability to construct marketing strategies that generate significant demand for retail spaces in areas of strong and fast-moving development across New Jersey,” said Cassano. “We were happy to lean on our significant experience in Hackensack to bring this transaction across the finish line and help a business expand their operations as the city continues its strong growth.” To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI James E. Hanson Negotiates Sale of 22,000 Square-Foot Auto Retail Building in Hackensack’s Redevelopment Zone appeared first on Real Estate Weekly......»»
NAI James E. Hanson Negotiates Sale of 10,400-Square-Foot Industrial Building in Sparta, N.J.
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 10,400-square-foot industrial building at 7 Aaron Way in the White Lake Commerce Park in Sparta, N.J. NAI James E. Hanson’s John Schilp represented the buyer, Timna, LLC, and... The post NAI James E. Hanson Negotiates Sale of 10,400-Square-Foot Industrial Building in Sparta, N.J. appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 10,400-square-foot industrial building at 7 Aaron Way in the White Lake Commerce Park in Sparta, N.J. NAI James E. Hanson’s John Schilp represented the buyer, Timna, LLC, and Harford Real Estate represented the seller, Harko Holdings, LLC, in the transaction. 7 Aaron Way is a 10,400-square-foot industrial flex building situated on 1.89 acres in Sparta’s newest and most successful industrial development, White Lake Commercial Park. Boasting 21’ clear ceiling height, four 14’ overhead drive-in doors, and no columns, the property is also situated in an economic development zone to provide ideal flexibility for future tenants. Recognizing their unmatched expertise and ability to act quickly for their clients, the buyer enlisted NAI James E. Hanson to utilize their market knowledge in order to meet the needs of a 1031 requirement. With a deadline approaching, Schilp provided a variety of options with 7 Aaron Way being selected by the buyer due to its location, presentation and multi-use potential. Timna, LLC has also retained Schilp to handle leasing for the property and help them capitalize on the demand for quality industrial space in Sparta area. “Finding our clients space that fits their needs is at the core of what we set out to accomplish” said Schilp. “When a 1031 requirement is involved, it creates a need for a balancing act between swift action and intelligent decision-making. Striking that balance is paramount in these situations and our understanding of local markets helps to make that possible.” The transaction also highlights Schilp’s continued role in the creation of the White Lake Commerce Park. Beginning in 2019, Schilp was retained to facilitate the sale of the 12 lots making up the White Lake Commerce Park. With the sale of the last lot closing in 2019, Schilp has now brought several developers to the White Lake Commerce Center to construct owner-occupied and spec industrial buildings ranging in size from 10,000 – 40,000 square feet. In addition, Schilp’s work has brought several high-quality tenants to the completed buildings already open at the property. To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI James E. Hanson Negotiates Sale of 10,400-Square-Foot Industrial Building in Sparta, N.J. appeared first on Real Estate Weekly......»»
NAI James E. Hanson Facilitates Sale of Mixed-Use Property in Oldwick, N.J.
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 10.78-acre mixed-use property at 152 Oldwick Road in Oldwick, N.J. NAI James E Hanson’s Sig Schorr represented the seller, Sblendorio Tewksbury Holding, LLC, and the buyer, Outdoor Digs,... The post NAI James E. Hanson Facilitates Sale of Mixed-Use Property in Oldwick, N.J. appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 10.78-acre mixed-use property at 152 Oldwick Road in Oldwick, N.J. NAI James E Hanson’s Sig Schorr represented the seller, Sblendorio Tewksbury Holding, LLC, and the buyer, Outdoor Digs, in the transaction. Located in Hunterdon County just a half of a mile from Interstate 78, 152 Oldwick Road is comprised of a 7,445-square-foot office building with two apartments on the lower level, 48 approved parking spaces and a garage on10.78 acres of land across two lots zoned for outdoor commercial storage. The property was formerly home to a high-end landscaping company. However, as the company’s clientele shifted further east and north, it looked to relocate and sell the property. The new owner, Outdoor Digs, is a rapidly growing landscape architecture, design and maintenance company servicing northern and central New Jersey. The company’s growth necessitated the acquisition of a facility with easy access to customers throughout the area that could house its landscaping equipment and service vehicles. Working closely with NAI James E. Hanson, the company was able to acquire one of the few properties in the Oldwick area that is zoned for outdoor storage. “The outdoor storage sector continues to see tremendous demand from not only e-commerce distributors but professional services companies like landscapers that require well-located, secure and adaptable storage for their equipment,” said Schorr. “Leveraging my market expertise, I was able to work with both the buyer and seller to negotiate a deal that allows each to achieve their unique business goals at this property.” To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI James E. Hanson Facilitates Sale of Mixed-Use Property in Oldwick, N.J. appeared first on Real Estate Weekly......»»
NAI James E. Hanson Negotiates Office Lease to Bring Business Management Company to New Jersey
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated a lease for 881 square feet of office space at 720 E. Palisade Avenue in Englewood Cliffs, N.J. NAI James E. Hanson’s Team Lizzack-Horning led by Darren Lizzack, MSRE, and Randy Horning, MSRE represented... The post NAI James E. Hanson Negotiates Office Lease to Bring Business Management Company to New Jersey appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated a lease for 881 square feet of office space at 720 E. Palisade Avenue in Englewood Cliffs, N.J. NAI James E. Hanson’s Team Lizzack-Horning led by Darren Lizzack, MSRE, and Randy Horning, MSRE represented the landlord, Bedrock Realty Holdings, LLC and the tenant, Behavior Supports Associates LLC. Headquartered in Brooklyn, Behavior Supports Associates LLC is a provider of turnkey business management systems for applied behavioral analysis (ABA) practices. Their business management system for ABA practices offers practitioners the most reliable way to build a solid foundation for providing superlative care, streamlining of their operations, and expanding their practices. Sitting at the corner of Sylvan Avenue (9-W) and E. Palisade Avenue, 720 E. Palisade Avenue is directly across from Exit 2 on the Palisades Interstate Parkway. The property’s strong visibility and well-maintained location features a marble lobby, 76 private parking spaces, and 24/7 key card access, making it an ideal home for a wide range of tenants. Only minutes from the George Washington Bridge, Routes 1, 4, 9, 46, 80 and 95 and Englewood’s downtown retail area, 720 E. Palisade Ave. will provide Behavior Supports Associates’ clients with increased accessibility. “We were happy to help such an important business find a new location in New Jersey,” said Lizzack. “Through leveraging our local contacts and our deep understanding of the regional office market, we are consistently able to help our clients find spaces that fit their needs while bringing unique businesses to New Jersey.” Founded in 2014, Team Lizzack-Horning is an expert brokerage team that specializes in healthcare, office, and investment property transactions. Leveraging a holistic and analytical approach to working with clients, Team Lizzack-Horning’s expertise and experience is augmented by a trusted network of real estate service providers that help clients of any size navigate an increasingly complex healthcare real estate transaction process. Together, the team has successfully closed more than 140 deals over the past eight years. To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), Instagram (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI James E. Hanson Negotiates Office Lease to Bring Business Management Company to New Jersey appeared first on Real Estate Weekly......»»
NAI James E. Hanson Helps Bring Event Management Company to Cedar Knolls, N.J. Industrial Building
NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated a lease for industrial space at 85 Horsehill Road in Cedar Knolls, N.J. NAI James E Hanson’s William Ericksen, Scott Perkins and Chris Todd represented the landlord, Horsehill Properties LLC., in the... The post NAI James E. Hanson Helps Bring Event Management Company to Cedar Knolls, N.J. Industrial Building appeared first on Real Estate Weekly. NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated a lease for industrial space at 85 Horsehill Road in Cedar Knolls, N.J. NAI James E Hanson’s William Ericksen, Scott Perkins and Chris Todd represented the landlord, Horsehill Properties LLC., in the transaction with Events Management Inc. NAI James E. Hanson serves as the exclusive leasing team for 85 Horsehill Road, a professionally managed 53,000 square feet industrial building. Centrally situated in the heart of Morris County, 85 Horsehill Road is easily accessible to and from the major roadways including Routes 10, 24, 80 and 287 and is within walking distance to newly developed retail locations for ShopRite, Walmart, Lowes, QuickChek, USPS. In addition to its prime location, the recently renovated building also offers expansive parking and heavy power capabilities, along with a multi-generational long-term ownership structure that ensures the building remains well-maintained. Operating on a nationwide scale, Events Management Inc. was in search of industrial space well-suited to house dance recital equipment for events they host throughout the country. The company’s leadership recognized that both 85 Horsehill Road’s family-owned management and proximity to their employees and staff made for a highly favorable space to house the company’s operations. “This deal further demonstrates our team’s repeated ability to construct exceptional marketing strategies to attract quality tenants, and fill vacant space for clients,” said Ericksen. “Through our unmatched market expertise, we look forward to bringing the property to full occupancy as the demand for quality industrial space remains at an all-time high.” For more information on leasing availabilities at 85 Horsehill Road, please contact NAI James E. Hanson’s William Ericksen at (973) 463-1011 x112 or wericksen@naihanson.com. To stay connected with NAI James E. Hanson and for updates on the latest transactions and news, please follow NAI Hanson on Facebook (www.facebook.com/NAIHanson), Twitter (@NAI_Hanson), and LinkedIn (www.linkedin.com/company/nai-james-e-hanson). The post NAI James E. Hanson Helps Bring Event Management Company to Cedar Knolls, N.J. Industrial Building appeared first on Real Estate Weekly......»»
Kelly® Reports Third-Quarter 2021 Earnings and Announces Dividend
Financial Highlights Q3 revenue up 15.1%; 14.5% in constant currency Q3 operating earnings of $9.0 million; up from a loss a year ago and up 25.9% on an adjusted basis Q3 earnings per share of $0.87 up from $0.42 a year ago; adjusted EPS of $0.25 compared to $0.29 TROY, Mich., Nov. 10, 2021 (GLOBE NEWSWIRE) -- Kelly® (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2021. Peter Quigley, president and chief executive officer, announced revenue for the third quarter of 2021 totaled $1.2 billion, a 15.1% increase compared to the corresponding quarter of 2020. Revenue improved year-over-year in the quarter reflecting increased customer demand compared to the COVID-19-impacted prior year period. Earnings from operations in the third quarter of 2021 totaled $9.0 million, compared to a loss of $2.4 million reported in the third quarter of 2020. Included in the third quarter of 2020 was a $9.5 million charge related to a customer dispute in Mexico. On an adjusted basis, earnings from operations improved 25.9%. Diluted earnings per share in the third quarter of 2021 were $0.87 compared to $0.42 per share in the third quarter of 2020. Included in the earnings per share is a non-cash gain per share, net of tax, on Kelly's investment in Persol Holdings common stock of $0.62 in the third quarter of 2021 and $0.29 in the third quarter of 2020. On an adjusted basis, earnings per share were $0.25 in the third quarter of 2021 compared to $0.29 in the corresponding quarter of 2020. "We're pleased that all five of our specialty operating segments delivered organic year-over-year gains in the third quarter, contributing to solid revenue and GP dollar growth for the company," said Quigley, who noted that Kelly has already begun taking actions to better leverage top-line growth heading into 2022. "Demand for our solutions is strong, and we're finding innovative ways to connect talent and clients in a tight labor market. We're confident that Kelly's specialty strategy will continue to deliver top and bottom-line growth throughout the recovery and into the post-COVID environment." Kelly also reported that on November 10, its board of directors declared a dividend of $0.05 per share. The dividend is payable on December 8, 2021, to stockholders of record as of the close of business on November 24, 2021. In conjunction with its third-quarter earnings release, Kelly has published a financial presentation on the Investor Relations page of its public website and will host a conference call at 9 a.m. ET on November 10 to review the results and answer questions. The call may be accessed in one of the following ways: Via the Internet:Kellyservices.com Via the Telephone (877) 692-8955 (toll free) or (234) 720-6979 (caller paid)Enter access code 5728672After the prompt, please enter "#" A recording of the conference call will be available after 2:30 p.m. ET on November 10, 2021, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 2025741#. The recording will also be available at kellyservices.com during this period. This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These factors include, but are not limited to, changing market and economic conditions, the recent novel coronavirus (COVID-19) outbreak, competitive market pressures including pricing and technology introductions and disruptions, disruption in the labor market and weakened demand for human capital resulting from technological advances, competition law risks, the impact of changes in laws and regulations (including federal, state and international tax laws), unexpected changes in claim trends on workers' compensation, unemployment, disability and medical benefit plans, or the risk of additional tax liabilities in excess of our estimates, our ability to achieve our business strategy, our ability to successfully develop new service offerings, material changes in demand from or loss of large corporate customers as well as changes in their buying practices, risks particular to doing business with government or government contractors, the risk of damage to our brand, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, services of licensed professionals and services connecting talent to independent work, our increasing dependency on third parties for the execution of critical functions, our ability to effectively implement and manage our information technology strategy, the risks associated with past and future acquisitions, including risk of related impairment of goodwill and intangible assets, exposure to risks associated with investments in equity affiliates including PersolKelly Pte. Ltd., risks associated with conducting business in foreign countries, including foreign currency fluctuations, the exposure to potential market and currency exchange risks relating to our investment in Persol Holdings, risks associated with violations of anti-corruption, trade protection and other laws and regulations, availability of qualified full-time employees, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, our ability to sustain critical business applications through our key data centers, risks arising from failure to preserve the privacy of information entrusted to us or to meet our obligations under global privacy laws, the risk of cyberattacks or other breaches of network or information technology security, our ability to realize value from our tax credit and net operating loss carryforwards, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Actual results may differ materially from any forward-looking statements contained herein, and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. About Kelly® Kelly Services, Inc. (NASDAQ:KELYA, KELYB)) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We're always thinking about what's next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 370,000 people around the world, and we connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2020 was $4.5 billion. Visit kellyservices.com and let us help with what's next for you. MEDIA CONTACT: ANALYST CONTACT: Jane Stehney James Polehna (248) 765-6864 (248) 244-4586 stehnja@kellyservices.com james.polehna@kellyservices.com KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020 (UNAUDITED) (In millions of dollars except per share data) % CC % 2021 2020 Change Change Change Revenue from services $ 1,195.4 $ 1,038.2 $ 157.2 15.1 % 14.5 % Cost of services 966.5 847.2 119.3 14.1 Gross profit 228.9 191.0 37.9 19.8 19.2 Selling, general and administrative expenses 219.9 193.4 26.5 13.7 13.2 Earnings (loss) from operations 9.0 (2.4 ) 11.4 NM Gain (loss) on investment in Persol Holdings 35.5 16.8 18.7 112.0 Other income (expense), net (0.3 ) (0.7 ) 0.4 50.1 Earnings (loss) before taxes and equity in net earnings (loss) of affiliate 44.2 13.7 30.5 222.8 Income tax expense (benefit) 11.1 (1.2 ) 12.3 NM Net earnings (loss) before equity in net earnings (loss) of affiliate 33.1 14.9 18.2 122.4 Equity in net earnings (loss) of affiliate 1.7 1.8 (0.1 ) (3.6 ) Net earnings (loss) $ 34.8 $ 16.7 $ 18.1 108.9 Basic earnings (loss) per share $ 0.87 $ 0.42 $ 0.45 107.1 Diluted earnings (loss) per share $ 0.87 $ 0.42 $ 0.45 107.1 STATISTICS: Permanent placement revenue (included in revenue from services) $ 19.7 $ 9.1 $ 10.6 118.0 % 116.6 % Gross profit rate 19.2 % 18.4 % 0.8 pts. Conversion rate 3.9 % (1.3 )% 5.2 pts. Adjusted EBITDA $ 17.3 $ 13.2 $ 4.1 Adjusted EBITDA margin 1.4 % 1.3 % 0.1 pts. Effective income tax rate 25.2 % (8.5 )% 33.7 pts. Average number of shares outstanding (millions): Basic 39.4 39.3 Diluted 39.5 39.4 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020 (UNAUDITED) (In millions of dollars except per share data) % CC % 2021 2020 Change Change Change Revenue from services $ 3,659.4 $ 3,274.6 $ 384.8 11.8 % 10.3 % Cost of services 2,986.2 2,671.1 315.1 11.8 Gross profit 673.2 603.5 69.7 11.5 10.1 Selling, general and administrative expenses 639.9 591.0 48.9 8.3 7.0 Goodwill impairment charge — 147.7 (147.7 ) NM Gain on sale of assets — (32.1 ) 32.1 NM Earnings (loss) from operations 33.3 (103.1 ) 136.4 NM Gain (loss) on investment in Persol Holdings 71.8 (31.4 ) 103.2 NM Other income (expense), net (4.0 ) 3.6 (7.6 ) (211.5 ) Earnings (loss) before taxes and equity in net earnings (loss) of affiliate 101.1 (130.9 ) 232.0 NM Income tax expense (benefit) 19.0 (36.5 ) 55.5 152.0 Net earnings (loss) before equity in net earnings (loss) of affiliate 82.1 (94.4 ) 176.5 NM Equity in net earnings (loss) of affiliate 2.3 (1.0 ) 3.3 NM Net earnings (loss) $ 84.4 $ (95.4 ) $ 179.8 NM Basic earnings (loss) per share $ 2.12 $ (2.43 ) $ 4.55 NM Diluted earnings (loss) per share $ 2.12 $ (2.43 ) $ 4.55 NM STATISTICS: Permanent placement revenue (included in revenue from services) $ 54.3 $ 28.9 $ 25.4 87.8 % 84.5 % Gross profit rate 18.4 % 18.4 % — pts. Conversion rate 4.9 % (17.1 )% 22.0 pts. Adjusted EBITDA $ 56.4 $ 48.6 $ 7.8 Adjusted EBITDA margin 1.5 % 1.5 % — pts. Effective income tax rate 18.8 % 27.9 % (9.1 ) pts. Average number of shares outstanding (millions): Basic 39.4 39.3 Diluted 39.5 39.3 KELLY SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (UNAUDITED) (In millions of dollars) Third Quarter % CC % 2021 2020 Change Change Professional & Industrial Revenue from services $ 452.6 $ 446.5 1.4 % 1.0 % Gross profit 76.6 77.1 (0.5 ) (0.9 ) SG&A expenses excluding restructuring charges 69.4 65.4 6.2 5.9 Restructuring charges — (0.1 ) NM NM Total SG&A expenses 69.4 65.3 6.2 5.9 Earnings (loss) from operations 7.2 11.8 (38.1 ) Earnings (loss) from operations excluding restructuring charges 7.2 11.7 (38.1 ) Gross profit rate 16.9 % 17.3 % (0.4 ) pts. Science, Engineering & Technology Revenue from services $ 306.2 $ 244.0 25.5 % 25.3 % Gross profit 68.1 50.7 34.5 34.4 SG&A expenses excluding restructuring charges 48.4 31.3 54.8 54.6 Restructuring charges — — NM NM Total SG&A expenses 48.4 31.3 54.8 54.6 Earnings (loss) from operations 19.7 19.4 1.7 Earnings (loss) from operations excluding restructuring charges 19.7 19.4 1.7 Gross profit rate 22.3 % 20.8 % 1.5 pts. Education Revenue from services $ 66.6 $ 27.5 142.1 % 142.1 % Gross profit 10.0 4.1 139.7 139.7 SG&A expenses excluding restructuring charges 17.0 11.6 45.9 45.9 Restructuring charges — — NM NM Total SG&A expenses 17.0 11.6 46.1 46.1 Earnings (loss) from operations (7.0 ) (7.5 ) 6.6 Earnings (loss) from operations excluding restructuring charges (7.0 ) (7.5 ) 6.7 Gross profit rate 15.1 % 15.2 % (0.1 ) pts. Outsourcing & Consulting Revenue from services $ 113.4 $ 87.9 29.1 % 28.6 % Gross profit 37.3 29.1 27.9 26.9 SG&A expenses excluding restructuring charges 30.7 25.4 20.5 19.8 Restructuring charges — — NM NM Total SG&A expenses 30.7 25.4 20.5 19.7 Earnings (loss) from operations .....»»