On July 31, 2024, Sun Communities Inc (SUI, Financial) released its 8-K filing detailing its financial performance for the second quarter of 2024. Sun Communities is a residential REIT specializing in manufactured housing, residential vehicle communities, and marinas. The company owns a portfolio of 666 properties, including 351 manufactured housing communities, 179 residential vehicle communities, and 136 marina properties, with nearly 50% of its portfolio located in Florida or Michigan.
Performance Overview
Sun Communities Inc (SUI, Financial) reported net income attributable to common shareholders of $52.1 million, or $0.42 per diluted share, for the quarter ended June 30, 2024. This is a significant improvement compared to a net loss of $207.6 million, or $1.68 per diluted share, for the same period in 2023. However, the reported earnings per share (EPS) of $0.42 fell short of the analyst estimate of $0.66.
For the six months ended June 30, 2024, net income attributable to common shareholders was $24.7 million, or $0.20 per diluted share, compared to a net loss of $252.5 million, or $2.04 per diluted share, for the same period in 2023.
Core Financial Metrics
Core Funds from Operations (Core FFO) for the quarter was $1.86 per share, down from $1.96 per share in the same period last year. For the six months ended June 30, 2024, Core FFO was $3.05 per share, compared to $3.19 per share for the same period in 2023.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income per Diluted Share | $0.42 | ($1.68) |
| Core FFO per Share | $1.86 | $1.96 |
| North America Same Property NOI Growth | 3.6% | N/A |
Operational Highlights
North America Same Property Net Operating Income (NOI) increased by 3.6% for the quarter and 5.6% for the first six months of 2024 compared to the corresponding periods in 2023. The adjusted blended occupancy for manufactured housing (MH) and residential vehicle (RV) communities in North America was 98.7%, representing a 150 basis point year-over-year increase.
We are pleased to have delivered solid second quarter results, while advancing our strategy focused on delivering reliable earnings growth. In our Manufactured Housing and Marina segments we saw strong NOI growth supported by sustained demand," said Gary A. Shiffman, Chairman, President and CEO.
Investment and Capital Activities
During the quarter, Sun Communities Inc (SUI, Financial) completed several property dispositions and acquisitions. Notably, the company sold a portfolio of six MH properties for $224.6 million and used the proceeds to pay down $62.3 million of mortgage debt and $151.1 million of borrowings under its Senior Credit Facility. Additionally, the company acquired one marina property and two marina expansion assets for $12.0 million.
Balance Sheet and Debt
As of June 30, 2024, Sun Communities Inc (SUI, Financial) had $7.9 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.5 years. The company's Net Debt to trailing twelve-month Recurring EBITDA ratio was 6.2 times, which improved to 6.0 times pro forma for the post-June 30, 2024 property dispositions and debt repayments.
Guidance and Outlook
Sun Communities Inc (SUI, Financial) reaffirmed its full-year Core FFO per share guidance for 2024 in the range of $7.06 to $7.22. The company also established third-quarter 2024 Core FFO per share guidance in the range of $2.46 to $2.56.
For more detailed financial data and insights, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Sun Communities Inc for further details.
