Real Estate Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Real Estate Acquisitions and Dispositions

Real Estate Acquisitions

2019 Acquisitions

Communities

For the year ended December 31, 2019, we acquired the following communities and portfolios:

Community Name	Type	Sites	Development Sites	State	Month Acquired
Slickrock Campground	RV	193	—	UT	December
Pandion Ridge	RV	142	351	AL	November
Jensen Portfolio (1)	MH	5,230	466	Various	October
Glen Ellis	RV	244	40	NH	September
Leisure Point Resort (2)	MH / RV	502	—	DE	September
Reunion Lake	RV	202	69	LA	July
River Plantation	RV	309	—	TN	May
Massey’s Landing RV	RV	291	—	DE	February
Shelby Properties (3)	MH	1,308	—	MI	February
Buena Vista	MH	400	—	AZ	February
Country Village Estates (4)	MH	518	—	OR	January
Hid’n Pines RV	RV	321	—	ME	January
Hacienda del Rio	MH (Age-Restricted)	730	—	FL	January
	Total	10,390	926

⁽¹⁾ Contains 31 communities located in CT, GA, MD, NH, NJ, NY, NC and SC. In conjunction with the acquisition, we issued 1,972,876 shares of common stock, net of fractional shares paid in cash.

⁽²⁾ Contains 201 MH sites and 301 RV sites.

⁽³⁾ Contains two MH communities.

⁽⁴⁾ In conjunction with the acquisition, we issued Series D Preferred OP Units. As of December 31, 2019, 488,958 Series D Preferred OP Units were outstanding.

The following table summarizes the amounts of assets acquired net of liabilities assumed at the acquisition date and the consideration paid for the acquisitions completed for the year ended December 31, 2019 (in thousands):

	At Acquisition Date											Consideration
	Investment in property		Inventory of manufactured homes		In-place leases and other intangible assets		Other assets (liabilities), net			Total identifiable assets acquired net of liabilities assumed		Cash and escrow		Debt assumed		Temporary and permanent equity		Total consideration
Slickrock Campground	$	8,250	$	—	$	—	$	8		$	8,258	$	8,258	$	—	$	—	$	8,258
Pandion Ridge	19,070		—		—		(92		)	$	18,978	18,978		—		—		18,978
Jensen Portfolio	374,402		3,605		7,752		3,938			$	389,697	18,306		58,000		313,391		389,697
Glen Ellis	5,955		—		—		(79		)	5,876		1,976		3,900		—		5,876
Leisure Point Resort	43,632		18		850		(678		)	43,822		43,822		—		—		43,822
Reunion Lake	23,493		—		—		(1,153		)	22,340		22,340		—		—		22,340
River Plantation	22,589		75		—		—			22,664		22,664		—		—		22,664
Massey's Landing	36,250		—		220		(446		)	36,024		36,024		—		—		36,024
Shelby Properties	85,969		2,011		6,520		(1,015		)	93,485		93,485		—		—		93,485
Buena Vista	20,221		439		1,590		(93		)	22,157		22,157		—		—		22,157
Country Village	62,784		—		2,020		31			64,835		12,905		—		51,930		64,835
Hid'n Pines	10,680		—		70		(233		)	10,517		10,517		—		—		10,517
Hacienda del Rio	111,971		15		3,280		(237		)	115,029		115,029		—		—		115,029
Total	$	825,266	$	6,163	$	22,302	$	(49	)	$	853,682	$	426,461	$	61,900	$	365,321	$	853,682

As of December 31, 2019, the Company incurred $19.3 million of transaction costs which have been capitalized and allocated among the various categories above.

Land for Expansion / Development

During the year ended December 31, 2019, the Company acquired four land parcels which are located in New Braunfels, Texas; Petoskey, Michigan; Uhland, Texas and Hudson, Florida for total consideration of $7.7 million. Two of the land parcels are adjacent to existing communities. The land acquired for expansion and development have potential to add approximately 900 usable sites once constructed.

Ground Leases

In September 2019, the Company entered into a 66-year Temporary Occupancy and Use Permit with the Port of San Diego to construct and operate a new RV resort in Chula Vista. Refer to Note 19, “ Leases” for disclosures on accounting treatment.

In August 2019, the Company acquired Chincoteague Island KOA RV Resort (“Chincoteague”), in Chincoteague Island, Virginia for total consideration of $19.5 million. The sellers of Chincoteague continue to operate the property. Refer to Note 19, “Leases” for disclosures on accounting treatment.

In April 2019, the Company acquired Strafford/Lake Winnipesaukee South KOA RV Resort ("Strafford") in Strafford, New Hampshire for total consideration of $2.7 million. The sellers of Strafford continue to operate the property. Refer to Note 19, “Leases” for disclosures on accounting treatment.

In March 2019, the Company entered into a four-year Temporary Occupancy and Use Permit with the Port of San Diego to operate a RV resort located in Chula Vista, CA until such time as the Company constructs a new RV resort in the area. Concurrent with the transaction, we purchased tangible personal property from the prior owner of the RV resort for $0.3 million. Refer to Note 19. “Leases ” for disclosures on accounting treatment.

Refer to Note 21, “Subsequent Events” for information regarding real estate acquisition activity after December 31, 2019.

The total amount of revenues and net income included in the Consolidated Statements of Operations for the year ended December 31, 2019 related to the acquisitions completed in 2019 are set forth in the following table (in thousands):

	Year Ended December 31, 2019
	(unaudited)
Total revenues	$	42,715
Net income	$	10,050

The following unaudited pro forma financial information presents the results of our operations for the years ended December 31, 2019 and 2018, as if the properties acquired in 2019 had been acquired on January 1, 2018. The unaudited pro forma results reflect certain adjustments for items that are not expected to have a continuing impact, such as adjustments for transaction costs incurred, management fees, and purchase accounting.

The information presented below has been prepared for comparative purposes only and does not purport to be indicative of either future results of operations or the results of operations that would have actually occurred had the acquisition been consummated on January 1, 2018 (in thousands, except per-share data):

	Year Ended
	(unaudited)
	December 31, 2019		December 31, 2018
Total revenues	$	1,298,096	$	1,194,093
Net income attributable to Sun Communities, Inc. common stockholders	$	166,446	$	120,891
Net income per share attributable to Sun Communities, Inc. common stockholders - basic	$	1.88	$	1.49
Net income per share attributable to Sun Communities, Inc. common stockholders - diluted	$	1.87	$	1.47

2018 Acquisitions

For the year ended December 31, 2018 we acquired the following communities:

Community Name	Type	Sites	Development Sites	State	Month Acquired
Leaf Verde RV Resort	RV	376	—	AZ	October
Archview	RV	114	50	UT	August
Petoskey KOA	RV	210	—	MI	August
The Sands RV and Golf Resort	RV (Age Restricted)	507	—	CA	July
Sun NG RV Resorts LLC (1)(2)	RV	2,700	940	Various	June
Silver Creek	RV	264	176	MI	June
Highway West (1)	RV	536	—	UT & OR	June
Compass RV	RV	175	—	FL	May
	Total	4,882	1,166

⁽¹⁾ Highway West and Sun NG RV Resorts LLC are comprised of 4 RV and 10 RV resorts, respectively.

⁽²⁾ Refer to Note 8, “Consolidated Variable Interest Entities,” Note 9, “Debt and Lines of Credit,” and Note 10, “Equity and Temporary Equity” in our accompanying Consolidated Financial Statements for additional information.

The following table summarizes the amounts of assets acquired net of liabilities assumed at the acquisition date and the consideration paid for the acquisitions completed in 2018 (in thousands):

	At Acquisition Date												Consideration
	Investment in property		In-place leases and other intangible assets		Debt assumed			Other liabilities, net			Total identifiable assets acquired net of liabilities assumed		Cash		Preferred Equity - Sun NG Resorts		Equity Interests - NG Sun LLC		Total consideration
Leaf Verde	$	11,587	$	60	$	—		$	—		$	11,647	$	11,647	$	—	$	—	$	11,647
Archview	14,550		—		—			—			14,550		14,550		—		—		14,550
Petoskey KOA	8,730		270		—			—			9,000		9,000		—		—		9,000
Sands	13,790		460		—			—			14,250		14,250		—		—		14,250
Sun NG Resorts	240,649		16,339		(3,120		)	(11,990		)	241,878		184,625		35,277		21,976		241,878
Silver Creek	7,250		—		—			—			7,250		7,250		—		—		7,250
Highway West	36,500		—		—			—			36,500		36,500		—		—		36,500
Compass	13,930		70		—			—			14,000		14,000		—		—		14,000
Total	$	346,986	$	17,199	$	(3,120	)	$	(11,990	)	$	349,075	$	291,822	$	35,277	$	21,976	$	349,075

For the year ended December 31, 2018, we acquired the following land for expansion / development:

Name	Location	Type	Expansion / Development Sites	Cost (millions)		Month Acquired
Ocean West	McKinleyville, CA	MH	26	$	0.2	December
Water Oak Country Club Estates	Lady Lake, FL	MH	296	1.9		November
Oak Crest	Austin, TX	MH	220	4.2		October
Pecan Park	Jacksonville, FL	RV	158	1.3		September
Smith Creek Crossing	Granby, CO	MH	310	0.9		September
Apple Carr	Egelston, MI	MH	121	0.2		May
River Run	Granby, CO	MH / RV	1,144	5.3		May
		Total	2,275	$	14.0