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Jun 30, 2024
Sun Communities Q2 2024 Earnings Report
Sun Communities reported solid second quarter results, driven by strong NOI growth in Manufactured Housing and Marina segments, supported by sustained demand. The company actively managed controllable expenses and executed on capital recycling objectives, selling over $300 million of properties to pay down debt.
Key Takeaways
Sun Communities reported a net income per diluted share of $0.42 and Core FFO per Share of $1.86 for the second quarter of 2024. North America Same Property NOI increased by 3.6%, and the company has reiterated its full-year Core FFO per Share guidance of $7.06 - $7.22.
Net income per diluted share was $0.42 for the quarter.
Core FFO per Share was $1.86 for the quarter.
North America Same Property NOI increased by 3.6% for the quarter.
Same Property adjusted blended occupancy for MH and RV of 98.7% represents a 150 basis point year-over-year increase
Sun Communities
Sun Communities
Sun Communities Revenue by Segment
Sun Communities Revenue by Geographic Location
Revenue by Segment
Manufactured Housing Revenue
CapyFin.comRecreational Vehicles Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.com Forward Guidance
The Company is updating full year, and establishing third quarter 2024 guidance for diluted EPS and Core FFO per Share:
Positive Outlook
- Re-affirming Core FFO per Share guidance in the range of $7.06 - $7.22 for the year ending December 31, 2024.
- Establishing Core FFO per Share guidance for the third quarter ending September 30, 2024 in the range of $2.46 - $2.56.
- Increasing Same Property NOI growth for MH to a range of 6.8% – 7.4% for the full year.
- Increasing Same Property NOI growth to a range of 8.6% – 10.4% for the full year in the UK.
- General and administrative expenses, excluding non-recurring expenses – decreasing the midpoint by approximately $5.0 million, or 210 basis points, reflecting corporate cost rationalization.
Challenges Ahead
- Total Real Property NOI growth is 5.8% - 6.4%, 80 basis points lower at the midpoint of guidance for 2024, primarily reflecting the property dispositions and the resultant loss of income from those properties.
- Reducing Same Property NOI growth to a range of (0.7%) – 0.9% for RV.
- Reducing Same Property NOI to a range of 6.2% – 7.2% for Marinas.
- Lowering full year UK home sales FFO contribution by $850,000 or approximately 1.5% at the midpoint to reflect updated expectations.
- Interest expense guidance is $6.5 million lower at the midpoint primarily due to debt paydown with proceeds generated from the property dispositions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income