The board of directors of real estate investment trust (REIT) Sun Communities, Inc. has announced an increase of $0.08 per common share for its 2014 target distribution rate to $2.60. While the board has adopted this new rate, it will still be subject to approval by the board each quarter for this owner/operator of manufactured home communities (MHC). The company anticipates an increase of funds from operations (FFO) of 9.7% to 12.8% for 2014, and expects to sell 2,200 homes, gross profit of $6,250 each, 14 percent more than last year, and half of which will convert 11 percent of the company renters to owners. Sun is budgeting for 770 additional occupied rental units in 2014, 54 percent of which will be in communities acquired or expanded within the last two years, but the company has no further prospective acquisitions at this time. The company expects to add 1,900 revenue-producing sites during the year, according to wsj.com, and says occupancy will hit 92 percent by Dec. 31, with a weighted site rental increase of 3.2 percent. Revenue growth of 5.9 percent is expected from the same property portfolio of 173 communities. As MHProNews knows, Sun owns 185 manufactured housing and recreational vehicle communities comprised of 68,300 home sites.
(Image credit: Sun Communities, Inc.)