Credit: Shutterstock photoSun Communities Inc.SUI , the Southfield, MI-based residential real estate investment trust ("REIT"), recently reported various transaction activities, which included closure of an unsecured line of credit facility, completion of asset sale and acquisition of properties. These activities are aimed at boosting the company's liquidity position as well as enhancing the quality of its portfolio.
Notably, on Aug 19, 2015, Sun Communities inked a $450-million senior unsecured credit facility, replacing the $350-million senior secured revolving line of credit that was slated to mature on May 14, 2017. The revised and expanded credit facility includes $392 million of revolving loan and $58 million of term loan. Further, it includes an accordion feature, allowing additional borrowing capacity of up to $300 million, upon fulfillment of certain conditions. The new credit facility has a term period of four years and involves two six-month extension options. The rate of interest associated with this facility is determined on the basis of Eurodollar plus a spread that depends on the company's leverage ratio.
Sun Communities owns, operates and finances manufactured housing communities concentrated in the Midwestern & Southeastern U.S. Further, on Aug 19, the REIT closed the divestiture of three manufactured home communities located in Ohio and Michigan, as well as associated homes and notes for $32.5 million.
Moreover, on the same date, Sun Communities acquired a recreational vehicle resort, including 391 sites situated in Crystal River, FL. Prior to this, the REIT closed the acquisition of two Maryland-based recreational vehicle resorts on Jul 31, 2015.
Sun Communities currently has a Zacks Rank #2 (Buy).
Investors interested in the residential REIT industry may also consider stocks like Armada Hoffler Properties, Inc. AHH , Camden Property Trust CPT and Equity LifeStyle Properties, Inc. ELS . All these stocks hold the same Zacks Rank as Sun Communities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
