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Acquisitions (Tables)
9 Months Ended
Sep. 30, 2011
Estimated Fair Value for the Entire Acquisition Which is Not Currently Complete and is Not Limited to Portion of Acquisition Completed

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed in the Acquisition, which we determined using level two and level three inputs (amounts in thousands). The fair value is a preliminary estimate and may be adjusted within one-year of the Acquisition in accordance with FASB ASC 805. The table includes the Company’s estimated fair value for the entire Acquisition, which is not currently complete and is not limited to the portion of the Acquisition completed during the three months ended September 30, 2011.

 

Assets

   

Land

    $ 478,000   

Manufactured homes

      26,000   

In-place leases

      75,000   

Depreciable property

      873,000   
  

 

 

  

Net investment in real estate

      1,452,000   

Notes receivable, net

      42,000   

Other assets

      9,000   
  

 

 

  

Total Assets

    $ 1,503,000   
  

 

 

  

Liabilities

   

Mortgage notes payable

    $ 549,000   

Accrued payroll and other operating expenses

      2,000   

Rents and other customer payments received in advance and security deposits

      5,000   
  

 

 

  

Total Liabilities

    $ 556,000   
  

 

 

  
Summary of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed in Acquisition

The following unaudited pro forma results of operations assumes that the Acquisition and related debt and equity issuances had occurred on January 1, 2010. The unaudited pro forma results of operations is based upon historical financial statements. The unaudited pro forma results do not purport to represent what the actual results of operations of the Company would have been, nor do they purport to predict the results of operations of future periods.

Unaudited Pro Forma Results of Operations(1)

(amounts in thousands, except per share data)

 

     Three Months Ended              Nine Months Ended  
     September 30, 2011      September 30, 2010    September 30, 2011      September 30, 2010  

Total revenues

    $ 177,413       $173,569    $      517,024       $ 508,377   

Net income available for Common Shares

    $ 22,742       $(3,889)    $      65,528       $ (14,197 ) 

Earnings per Common Share – Basic

    $ 0.59       $(0.10)    $      1.86       $ (0.37 ) 

Earnings per Common Share – Fully
Diluted(2)

    $ 0.56       $(0.10)    $      1.80       $ (0.37 ) 

 

1. The following expenses, except for f. below, are not reflected in the Unaudited Pro Forma Results of Operations as they are either short-term in nature or are not reflective of the historical results of the Company or the seller:
  a. For the Acquisition Properties the Company has closed on, the Company entered into a property management agreement with the seller for a fee of four percent of property revenues beginning on July 1, 2011 and ending on September 30, 2011.
  b. The Company entered into a loan servicing agreement, effective July 1, 2011, with respect to the Chattel Loans the Company is acquiring in the Acquisition. The loan servicing fee was $55,000 per month and expired on September 30, 2011.
  c. The Company has estimated that its annual incremental property management expenses associated with the Acquisition are approximately $5.5 million.
  d. The Company has estimated that its annual incremental general and administrative expenses associated with the Acquisition, including Chattel Loan servicing, are approximately $1.6 million.
  e. Transaction costs related to the Acquisition are not expected to have a continuing impact and therefore have been excluded from these pro forma results.
  f. For the three and nine months ended September 30, 2010, the Company has estimated the amortization expense of an intangible asset for in-place leases to be approximately $19.0 million and $57.0 million, respectively. The estimate useful life for acquired in-place leases is one year.
2. For the three and nine months ended September 30, 2010, both the Company’s weighted average approximately 4.9 million common OP Units (which were dilutive to the Company’s historical operations) and the issuance of 1,740,000 shares of Series B Preferred Stock were anti-dilutive, and therefore both were excluded from the computation of the Pro Forma Earnings per Common Share – Fully Diluted.