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Dec 31, 2022
Sun Communities Q4 2022 Earnings Report
Sun Communities reported mixed Q4 2022 results with a decrease in net income but an increase in Core FFO. The company highlighted strong demand and strategic investments driving solid performance, along with record RV conversions.
Key Takeaways
Sun Communities reported a net income of $4.7 million, or $0.04 per diluted share, for Q4 2022, compared to $12.9 million, or $0.11 per diluted share, for the same period in 2021. Core FFO was $1.33 per share, a 1.5% increase year-over-year. The company reported strong demand and accretive investments drive continued solid performance. They are expecting total Same Property NOI growth of 4.9% - 5.9% in 2023.
Net income attributable to common shareholders was $4.7 million, or $0.04 per diluted share.
Core FFO was $1.33 per Share, representing a 1.5% increase as compared to the corresponding period in 2021.
Same Property NOI for MH and RV properties increased by 4.4%.
Record volume of transient-to-annual RV conversions propel record gains in revenue producing sites.
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.comRevenue by Geographic Location
North America Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.com Forward Guidance
The Company is establishing full-year and first quarter 2023 guidance for diluted EPS and Core FFO per Share.
Positive Outlook
- Expecting Total Same Property NOI Growth of 4.9% - 5.9% during the year ending December 31, 2023.
- Total Expected NOI from Real Property: Change in 2023 Revenues Real property (excluding transient) 9.8% - 10.2%
- Real property (transient) 0.9% - 2.1%
- Increase in revenue producing sites 2,800 - 3,100
- Vacant site additions from expansions and ground-up developments 1,000 - 1,300
Challenges Ahead
- Diluted EPS $(0.03) - $0.02 for the first quarter ending March 31, 2023
- Total property operating expenses 13.5% - 13.9%
- General and administrative expenses $256.5 - $261.6 millions
- NOI from real property and home sales(a) $155.5 - $165.1 millions
- Total Same Property NOI(1) growth during the first quarter ending March 31, 2023 is 3.3% - 4.4%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income