Sun Communities gives 2013 FFO guidance

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Associated Press

Posted on February 13, 2013 at 6:01 PM

Updated Wednesday, Feb 13 at 6:01 PM

SOUTHFIELD, Mich. (AP) — Real estate investment trust Sun Communities expects a key measure of profitability for 2013 will top analysts' expectations.

Sun Communities Inc., which owns and runs 183 manufactured housing and recreational vehicle communities, also announced that it purchased 10 recreational vehicle communities for approximately $111.5 million.

The company said Wednesday that it foresees full-year funds from operations between $3.45 and $3.55 per share.

Analysts surveyed by FactSet predict funds from operations of $3.38 per share.

Funds from operations, or FFO, adds charges including amortization and depreciation back to net income and is considered a measure of core operations for a REIT.

Sun bought the RV communities from Gwynns Island RV Resort LLC, Indian Creek RV Resort LLC, Lake Laurie RV Resort LLC, Newpoint RV Resort LLC, Peters Pond RV Resort Inc., Seaport LLC, Virginia Tent LLC, Wagon Wheel Maine LLC, Westward Ho RV Resort LLC and Wild Acres LLC.

The communities are located in Maine, Virginia, Connecticut, Massachusetts, New Jersey, Ohio and Wisconsin.

As part of the deal, Sun said it also purchased some cottages and homes in the communities for an additional $1.3 million.

The Southfield, Mich., company's stock added 42 cents to $44.63 in midday trading. Its shares have traded in a 52-week range of $36.15 to $47.84.

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