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Sep 30, 2022

Sun Communities Q3 2022 Earnings Report

Sun Communities reported solid third-quarter results, driven by strong demand and accretive investments, with earnings exceeding expectations and increased guidance for Constant Currency Core FFO.

Key Takeaways

Sun Communities reported a net income attributable to common shareholders of $162.6 million, or $1.32 per diluted share, for the quarter ended September 30, 2022. Constant Currency Core FFO per diluted share was $2.71, exceeding guidance. The company experienced strong growth in all segments, driven by high occupancy in the Manufactured Housing portfolio and record conversions to annual sites in the RV segment. Same Property NOI increased for both MH/RV and Marina properties.

Diluted earnings per share were $1.32.

Constant Currency Core FFO per Diluted Share of $2.71 exceeded guidance.

Manufactured Housing & RV Same Property NOI increased 6.4 percent compared to the prior year.

Marina Same Property NOI increased 9.6 percent compared to the prior year.

Total Revenue
$933M
Previous year: $353M
+164.5%
EPS
$2.65
Previous year: $2.11
+25.6%
RV Occupancy
100%
Previous year: 100%
+0.0%
Gross Profit
$466M
Previous year: $355M
+31.2%
Cash and Equivalents
$112M
Previous year: $85.6M
+30.8%
Total Assets
$16.5B
Previous year: $12.6B
+31.0%

Sun Communities

Sun Communities

Sun Communities Revenue by Segment

Sun Communities Revenue by Geographic Location

Forward Guidance

The Company is updating its full-year guidance for diluted EPS and Constant Currency Core FFO per Share to reflect performance through September 30, 2022 and management's expectations for the remainder of the year.

Positive Outlook

  • The Company is revising its full-year guidance for diluted EPS from the prior range of $1.91 - $2.01 to a new range of $1.96 - $2.02.
  • The Company is revising its full-year guidance for Constant Currency Core FFO per Share from $7.22 - $7.32 to a new range of $7.32 - $7.38, representing an $0.08 cent increase at the midpoint.
  • The Company is establishing fourth quarter 2022 guidance for diluted EPS and Constant Currency Core FFO per Share of $0.02 - $0.08 and $1.23 - $1.29, respectively.
  • The Company is updating its expectations for Same Property NOI Growth for the remainder of the year as follows: MH and RV Same Property NOI growth 6.0% - 7.2%.
  • Marina Same Property NOI growth 5.3% - 6.8%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income