Sun Communities, Inc. (NYSE: SUI), a real estate investment trust (REIT) that owns and operates, or has an interest in, manufactured housing (MH) and recreational vehicle (RV) communities and marinas, has reported its second-quarter results for 2024.
Financial Results for the Quarter and Six Months Ended June 30
- For the quarter ended June 30, net income attributable to common shareholders was $52.1 million, or $0.42 per diluted share, compared to a net loss attributable to common shareholders of $207.6 million, or $1.68 per diluted share for the same period in 2023.
- For the six months ended June 30, net income attributable to common shareholders was $24.7 million, or $0.20 per diluted share, compared to a net loss attributable to common shareholders of $252.5 million, or $2.04 per diluted share for the same period in 2023.
Non-GAAP Financial Measures
- Core Funds from Operations for the quarter and six months ended June 30, was $1.86 per common share and dilutive convertible securities and $3.05 per share, respectively, as compared to $1.96 and $3.19 for the same periods in 2023.
Same Property Net Operating Income (“NOI”)
- North American Same Property NOI increased by $10.4 million and $29.8 million, or 3.6% and 5.6%, respectively, for the quarter and six months ended June 30, as compared to the corresponding periods in 2023.
- UK Same Property NOI increased by $1.7 million and $5.0 million, or 9.3% and 19.4%, respectively, for the quarter and six months ended June 30, as compared to the corresponding periods in 2023.
“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. “We are also seeing growth in annual RV revenues, and while transient RV is still experiencing some headwinds, we are actively managing our controllable expenses. Our UK strategy remains focused on shifting a larger proportion of our income from home sale margins to the resilient, reliable NOI generated by real property rents. Finally, we are executing on our capital recycling objectives. Year to date, we have sold over $300 million of properties and used the proceeds to pay down debt.”
OPERATING HIGHLIGHTS
North America Portfolio Occupancy
- MH and annual RV sites were 97.5% occupied on June 30, as compared to 97.1% on June 30, 2023.
- During the quarter that ended June 30, the number of MH and annual RV revenue-producing sites increased by approximately 1,230 sites, as compared to an increase of approximately 1,040 sites during the corresponding period in 2023, an 18.7% increase.
- Transient-to-annual RV site conversions totaled approximately 920 sites during the second quarter of 2024, a 22.7% increase over the second quarter of 2023.
INVESTMENT ACTIVITY
During and subsequent to the quarter ended June 30, the company completed the following dispositions:
- In July, a portfolio of six MH properties across six states for total cash consideration of $224.6 million, with an estimated gain on sale of approximately $140.0 million.
- Net proceeds were used to pay down $62.3 million of mortgage debt and $151.1 million of borrowings under the Company’s Senior Credit Facility.
- In July, one MH property was for a total cash consideration of $38.0 million.
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- Net proceeds were used to pay down $16.7 million of mortgage debt and $20.3 million of borrowings under the Company’s Senior Credit Facility.
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- In May, one Park Holidays property for total cash consideration of $5.4 million.
During the quarter ended June 30, the company acquired:
- In April, one marina property and two marina expansion assets for a total consideration of $12.0 million including the issuance of common OP units valued at $2.5 million.
- In June, a parcel of land in the UK for a total consideration of $9.6 million, will support the future expansion of an existing Park Holidays property.
To read the full report, click here.
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