Sun Communities Q3 2023 Earnings Report
Key Takeaways
Sun Communities reported a net income of $163.1 million, or $1.31 per diluted share, for the quarter ended September 30, 2023. Core FFO per share was $2.57, exceeding the high-end of the guidance range. Same Property NOI grew by 6.7%, also exceeding expectations. The company is revising its full-year Core FFO per share guidance to $7.05 - $7.13 and increasing the guidance range for full-year Total Same Property NOI growth to 6.0% - 6.4%.
Net earnings per diluted share were $1.31 for the quarter.
Core FFO per share was $2.57 for the quarter, exceeding the high-end of the guidance range.
Total Same Property NOI grew by 6.7% for the quarter, exceeding the high-end of the guidance range by 220 basis points.
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 fourth quarter 2023 guidance for diluted EPS and Core FFO per Share.
Positive Outlook
- Full-Year Ending December 31, 2023 Fourth Quarter Ending December 31, 2023
- The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the 2023 Guidance Assumptions table
- The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material.
- The $7.09 per Share midpoint of the revised full-year guidance range is 1.0% lower than the prior range provided in July, primarily reflecting higher interest expense related to the UK Note remaining outstanding and lower expected transient RV revenues.
- For the fourth quarter ending December 31, 2023, the Company's guidance ranges assume Total Same Property NOI growth of 4.4% - 5.9%.
Challenges Ahead
- primarily reflecting higher interest expense related to the UK Note remaining outstanding
- lower expected transient RV revenues.
- Total Same Property NOI growth of 4.4% - 5.9%.
- The midpoints of Same Property NOI growth for the fourth quarter ending December 31, 2023 are 5.1% for Manufactured Housing, 3.6% for RV and 6.2% for Marina.
- These estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income