Sun Communities Inc. (NYSE:SUI) Q2 2020 Earnings Conference Call - Final Transcript
Jul 23, 2020 • 11:00 am ET
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Second Quarter 2020 Earnings Conference Call.
At this time, management would like to inform you that certain statements made during this conference call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations include the effects of the COVID-19 pandemic and other detail -- others detailed in yesterday's press release and from time to time in the company's periodic filings within the SEC. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of the release.
Having said this, I'd like to introduce management with us today: Gary Shiffman, Chairman and Chief Executive Officer; John McLaren, President and Chief Operating Officer; and Karen Dearing, Chief Financial Officer. After their remarks, there'll be an opportunity to ask a question. I'll now turn the call over to Gary Shiffman, Chairman and Chief Executive Officer. Mr. Shiffman, please go ahead.
Gary A. Shiffman
Thank you, Operator. Good morning, and thank you for joining us today as we discuss our second quarter results and provide an update on how Sun is navigating the impact of COVID-19. We hope that everyone is staying healthy and managing through this challenging time. The intensity of the pandemic across the country continues to evolve, and the environment has been challenging, but I'm happy to report that all of our manufactured housing and RV properties are open for business and performing. We have worked hard to keep our residents, guests and team members safe. From a customer service perspective, we remain focused on delivering the signature service that Sun's residents and guests have come to expect across the portfolio.
We are pleased with our results for the second quarter in light of the challenges presented by the virus. The team's skilled execution of our operating and financial plans has served to mitigate the impact on our business. For the second quarter, we realized a net FFO impact of approximately $10.8 million below our original budget, which is better than our initial expectation of $15 million to $18 million provided during our first quarter release. Factors driving our performance included strong manufactured housing revenues, rental program results and expense savings and personnel costs and variable operating expenses primarily due to RV resorts that were not open. Offsets to positive contributors in the quarter were largely due to the COVID-related restrictions on our transient RV business. Despite obstacles related to the virus, our reported core FFO per share was $1.12 for the second quarter.
In addition, Sun Communities generated positive same community NOI growth of 1.4%. Adjusting for $900,000 of direct COVID-19 related expenses, NOI growth