The Associated Press reported that the real estate investment trust (REIT), based in Southfield, Mich., said it had funds from operations of $35.2 million, or 69 cents per share, in the period.
Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.
The company said it had a loss of $13.1 million, or 28 cents per share. The real estate investment trust posted revenue of $119.7 million in the period.
For the year, the company reported funds from operations of $148.4 million, or $3.37 per share. Revenue was reported as $471.7 million. Sun Communities expects full-year funds from operations to be $3.53 to $3.63 per share. The company’s shares have increased 13% since the beginning of the year. The stock has risen 48% in the last 12 months.
“This is our fifth consecutive year of increased annual occupancy growth,” chairman and CEO Gary Shiffman said during an earnings conference call.
During 2014 the company added 1,890 sites in the company’s manufactured housing communities and RV resorts.
“Turning for a review of our RV performance, we continue to increase the number of annual and seasonal residents in our RV communities as well as maximizing occupancies and rental rates in our transient and vacation-rental sites,” Shiffman said. Revenue growth for same-property annual and seasonal sites was 10% for the quarter and 7.2% for the year, he said.
RV site revenue overall was up 11.4% for the quarter and 10% for the year.
Their reservation call center got nearly100,000 calls in 2014, and their Internet performance grew significantly: Pageviews grew by144%, total sessions rose by 127%, users increased by just over 100%, Shiffman said. Sun saw a total year-over-year increase of 170% in revenue generated from digital-related RV activities.
The company is in a major expansion push, averaging nine sites per month. They plan to develop 800 sites at eight locations in Texas, California, Ohio and Maryland, and three of those are RV resorts, Shiffman said.
The company spent $192 million on eight RV communities in 2014, Shiffman pointed out.
For 2015, the company expects an increase of 8% in RV revenue between higher occupancies and higher site rents, Shiffman said.
The acquisition pipeline for the company is $100 million, about a half of that in RV resorts, Shiffman said.
For Sun’s earnings announcement, click here.