The company also said it is reviewing possible property acquisitions and expects to acquire new properties worth between $25 million to $40 million. Currently Sun operates 127 communities, mostly in the Midwest and Southeast.

"We remain focused on providing high quality affordable housing opportunities and are cautiously optimistic that we can benefit from improved fundamentals in the manufactured housing industry as the year progresses," says chairman and CEO Gary Shiffman. "This year, we will complete the final stages of integrating all new software and look to capitalize on existing operating leverage and expertise as opportunities present themselves."

The company said its 2004 guidance is based on expectations for a continuing gradual industry-wide recovery in new home sales beginning in mid-2004 as the rate of newly repossessed homes recedes from annual rates in excess of 120,000 in recent years to industry estimates of approximately 60,000 in 2004.In addition to its lot rental activity in its communities, Sun said it expects to sell 660 new and pre-owned homes during 2004.