Sun Communities Q2 2023 Earnings Report
Key Takeaways
Sun Communities, Inc. reported strong second quarter results for 2023, with net income attributable to common shareholders increasing by 18% year-over-year. Same Property NOI grew by 6.3%, driven by strong demand and effective expense management. The company is revising full-year Core FFO per Share guidance for 2023 to $7.09 - $7.23 and increasing guidance for Total Same Property NOI Growth to 5.3% - 6.1%.
Net Earnings per Diluted Share of $0.72 for the Quarter Increased by 18% Year-over-Year
Core FFO per Share of $1.96 for the Quarter, in line with Guidance
Same Property NOI Grew by 6.3% for the Quarter over the 2022 Period; Strong Demand and Effective Expense Management Drove Outperformance
Same Property Adjusted Occupancy for MH and RV Increased by 170 Basis Points, Year-over-Year
Sun Communities
Sun Communities
Sun Communities Revenue by Segment
Forward Guidance
The Company is updating full-year 2023 and establishing third quarter 2023 guidance for diluted EPS and Core FFO per Share.
Positive Outlook
- Total real property NOI is expected to increase 6.1% - 6.9%.
- MH NOI (289 properties) is expected to increase 5.2% - 5.8%.
- RV NOI (161 properties) is expected to increase 3.4% - 4.6%.
- Marina NOI (119 properties) is expected to increase 8.0% - 9.0%.
- Total Same Property NOI is expected to increase 5.3% - 6.1%.
Challenges Ahead
- The 2.2% downward revision to the midpoint of full-year guidance is due primarily to lower expected UK home sales NOI.
- Higher interest expense related to short-term interest rate increases since April 26, 2023.
- A modest reduction to expected Service, retail, dining and entertainment NOI as compared to prior guidance.
- Total same property NOI to increase 3.2% - 4.5% during the third quarter ending September 30, 2023
- UK home sales NOI $65.7 - $75.4 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income