Q2 2024 Sun Communities Inc Earnings Call Transcript
Key Points
- Sun Communities Inc (SUI) reported a solid second quarter with Core FFO per share of $1.86, in line with guidance.
- Manufactured housing, the largest segment, generated same-property NOI growth of 6.4%, driven by strong rental rate growth and occupancy gains.
- Marina same-property results achieved 6.1% NOI growth, in line with guidance, supported by strong demand for Safe Harbor networks.
- The UK segment saw same-property NOI growth of 9.3%, exceeding the high end of guidance, driven by lower-than-expected utility expenses.
- Sun Communities Inc (SUI) successfully sold eight properties, bringing total asset sale proceeds year-to-date to over $300 million, which helped reduce the leverage ratio to 6.0 times on a pro forma basis.
- Same-property NOI for the RV segment decreased by 4.6%, driven by weakness in the transient RV segment.
- The company experienced a 12% decrease in RV transient revenues in the second quarter, underperforming the expected 8% decline.
- Total real-property NOI is 80 basis points lower for 2024 at the midpoint of guidance, primarily reflecting recent asset sales.
- Interest expense guidance is $6.5 million lower at the midpoint after paying down debt using net proceeds from asset sales.
- UK home sales slowed in June ahead of England's elections, leading to a reduction in the UK home sales FFO contribution by $850,000 at the midpoint.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities second-quarter 2024 earnings conference call.
At this time, management would like me to inform you that certain statements made during this call, which are not historical facts, may be deemed forward-looking statements within the meanings 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 are detailed in yesterday's press release and from time to time in the company's periodic filings with the SEC.
The company undertakes no obligation to advise or update any forward-looking statements to reflect events or circumstances after the date of this release. Having said that, I'd like to introduce management with us today, Gary Shiffman, Chairman, President, and Chief Executive Officer
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