During the quarter ended June 30, 2009, total revenues increased to $63.3 million as compared to $62.7 million in the second quarter of 2008, excluding $2.6 million in revenues from gain on sales of vacant land. Net loss for the second quarter of 2009 was $(2.3) million, or $(0.12) per diluted common share, compared with a net loss of $(7.4) million, or $(0.41) per diluted common share, for the same period in 2008. Funds from operations (FFO)(1) increased to $12.5 million, or $0.60 per diluted share/OP Unit, in the second quarter of 2009 as compared to $4.8 million, or $0.23 per diluted share/OP Unit, in the second quarter of 2008. Included in net loss for the second quarter of 2009 is equity loss from affiliate of $0.5 million from Origen Financial, Inc. ("Origen"). Included in net loss for the second quarter of 2008 is equity loss from affiliate of $7.7 million and severance charges of $0.9 million. (FFO)(1) for the second quarter of 2009 and 2008, adjusted for these items, would have been $13.0 million, or $0.62 per diluted share/OP Unit, and $13.4 million, or $0.65 per diluted share/OP Unit, respectively.

For the six months ended June 30, 2009, total revenues increased to $128.6 million, as compared to $126.7 million for the same period in 2008, excluding $3.3 million in revenues from gain on sales of vacant land. Net loss was $(1.4) million as compared to $(10.5) million for the six months ended June 30, 2009 and 2008, respectively. FFO(1) increased to $28.8 million, or $1.39 per diluted share/OP Unit, for the six months ended June 30, 2009, as compared to $15.8 million, or $0.77 per diluted share/OP Unit, for the same period in 2008. Included in net loss for the six months ended June 30, 2009 is equity loss from affiliate of $0.4 million. Included in net loss for the six months ended June 30, 2008 is equity loss from affiliate of $12.6 million and severance charges of $0.9 million. (FFO)(1) for the six months ended June 30, 2009 and 2008, adjusted for these items, would have been $29.2 million, or $1.40 per diluted share/OP Unit, and $29.2 million, or $1.43 per diluted share/OP Unit, respectively.

For 136 communities owned throughout 2009 and 2008, total revenues increased 1.5 percent for the quarter ended June 30, 2009, and total expenses increased 2.1 percent, resulting in an increase in net operating income(2) of 1.3 percent. Same property occupancy in manufactured housing sites was 82.4 percent at June 30, 2009 and June 30, 2008.

Manufactured housing and permanent recreational vehicle revenue producing sites increased by 123 for the second quarter of 2009, compared to an increase of 103 sites during the second quarter of 2008. For the six months ended June 30, 2009 and 2008, manufactured housing and permanent recreational vehicle revenue producing sites increased by 289 and 125 sites, respectively, an increase of 164 sites period over period. The Company rented an additional 82 homes in the second quarter of 2009 bringing the total number of occupied rentals to 5,780 at June 30, 2009, as reflected in the accompanying table.

During the second quarter of 2009, 270 new and pre-owned homes were sold, bringing the total of homes sold year to date to 518, an increase of 5.5 percent from the 491 homes sold during the first six months of 2008. Rental home sales, included in total new and pre-owned home sales above, totaled 178 and 346 for the three and six months ended June 30, 2009, as compared to 156 and 292 for the same periods in 2008.

"Key operating metrics are on budget as are our quarterly FFO results. The demand for affordable housing was solid in the first half of the year and is expected to continue resulting in additional growth during the second half of the year," said Gary A. Shiffman, Chairman and Chief Executive Officer. "Based on results through June 30 and our forecasted results for the remainder of the year, we affirm FFO guidance of $2.84 - $2.92 per share," Shiffman added.

During the quarter, the Company completed a secured borrowing of $18.5 million of which $11.2 million was used to repay mortgage notes that matured during the quarter. The remaining proceeds were used to pay down the Company's unsecured line of credit.

"The completion of this secured borrowing effectively meets our debt maturity requirements for the remainder of 2009 and throughout 2010," Shiffman said. "With all near term maturities covered, we are able to proactively strategize on financing alternatives for longer term maturities while continuing to focus on implementing our core operations business plan," added Shiffman.

A conference call to discuss second quarter operating results will be held on August 7, 2009, at 11:00 A.M. EDT. To participate, call toll-free 877-407-9039. Callers outside the U.S. or Canada can access the call at 201-689-8470. A replay will be available following the call through August 21, 2009, and can be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 outside the U.S. or Canada. The account number for the replay is 3055 and the ID number is 328231. The conference call will be available live on Sun Communities website http://www.suncommunities.com/. Replay will also be available on the website.

Sun Communities, Inc. is a real estate investment trust (REIT) that currently owns and operates a portfolio of 136 communities comprising approximately 47,600 developed sites.

(1) Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable operating property, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company's operating performance. Management generally considers FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not readily apparent from net income. Management believes that the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful.

Because FFO excludes significant economic components of net income including depreciation and amortization, FFO should be used as an adjunct to net income and not as an alternative to net income. The principal limitation of FFO is that it does not represent cash flow from operations as defined by GAAP and is a supplemental measure of performance that does not replace net income as a measure of performance or net cash provided by operating activities as a measure of liquidity. In addition, FFO is not intended as a measure of a REIT's ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO only provides investors with an additional performance measure. Other REITs may use different methods for calculating FFO and, accordingly, the Company's FFO may not be comparable to other REITs.

(2) Investors in and analysts following the real estate industry utilize net operating income ("NOI") as a supplemental performance measure. NOI is derived from revenues (determined in accordance with GAAP) minus property operating expenses and real estate taxes (determined in accordance with GAAP). NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income. Net income includes interest and depreciation and amortization which often have no effect on the market value of a property and therefore limit its use as a performance measure.