Sun Communities, Inc. (SUI) Bundle
A Brief History of Sun Communities, Inc.
Company Overview
Sun Communities, Inc. was established in 1975 and is headquartered in Southfield, Michigan. The company operates as a real estate investment trust (REIT) specializing in the ownership, operation, and development of manufactured housing communities and recreational vehicle resorts.
Financial Performance
As of September 30, 2024, Sun Communities reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Home Sales | $105.3 million | $117.8 million | (10.6%) |
| Home Cost and Selling Expenses | $74.3 million | $84.5 million | (12.1%) |
| Net Operating Income (NOI) | $31.0 million | $33.3 million | (6.9%) |
| Units Sold | 1,493 | 1,520 | (1.8%) |
| Average Selling Price | $84,381 | $98,113 | (14.0%) |
Recent Developments
In 2024, Sun Communities continued to expand its portfolio, acquiring additional properties and enhancing its existing facilities. As of September 30, 2024, the company operated 659 properties across the United States and the United Kingdom.
Debt and Financing
As of September 30, 2024, Sun Communities reported total debt of $7.3 billion. The breakdown is as follows:
| Debt Type | Amount (in millions) | Weighted Average Interest Rate (%) |
|---|---|---|
| Secured Debt | $3,397.3 | 3.993% |
| Unsecured Debt | $3,927.5 | 3.778% |
| Total Debt | $7,324.8 | 4.072% |
Occupancy and Rental Performance
Sun Communities reported strong occupancy rates across its manufactured housing (MH) and recreational vehicle (RV) sites:
| Property Type | Occupancy Rate (%) | Monthly Base Rent per Site ($) |
|---|---|---|
| MH | 97.3% | $701 |
| RV | 100.0% | $618 |
Dividend Information
For the nine months ended September 30, 2024, Sun Communities declared dividends as follows:
| Record Date | Payment Date | Distribution per Share ($) | Total Distribution (in millions) |
|---|---|---|---|
| March 31, 2024 | April 15, 2024 | $0.94 | $119.7 |
| June 30, 2024 | July 15, 2024 | $0.94 | $119.7 |
| September 30, 2024 | October 15, 2024 | $0.94 | $122.3 |
Market Position and Future Outlook
With a robust portfolio and strategic acquisitions, Sun Communities aims to enhance its market position in the manufactured housing and RV sectors. The company remains focused on operational efficiency and maximizing shareholder returns.
A Who Owns Sun Communities, Inc. (SUI)
Major Shareholders
As of 2024, the ownership of Sun Communities, Inc. (SUI) is diversified among various institutional and individual investors. The table below summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Type of Ownership | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8.9% |
| BlackRock, Inc. | Institutional | 7.5% |
| State Street Corporation | Institutional | 4.2% |
| Wellington Management Group LLP | Institutional | 3.9% |
| Invesco Ltd. | Institutional | 3.1% |
| Other Institutional Investors | Institutional | 35.0% |
| Individual Shareholders | Individual | 33.4% |
Executive Ownership
As of 2024, the executive team of Sun Communities, Inc. also holds a significant portion of shares. The following table provides details on executive ownership:
| Executive | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Gary A. Shiffman | Chairman and CEO | 1,200,000 | 1.5% |
| John D. McCarthy | President | 500,000 | 0.6% |
| Other Executives | Various | 1,000,000 | 1.2% |
Market Capitalization and Stock Performance
As of September 30, 2024, Sun Communities, Inc. has a market capitalization of approximately $8.3 billion. The stock performance over the past year has shown a fluctuation in price:
| Period | Price Change | Market Cap |
|---|---|---|
| 1 Year Ago | $38.50 | $7.5 billion |
| Current Price | $45.25 | $8.3 billion |
Debt and Financial Obligations
As of September 30, 2024, Sun Communities, Inc. has total debt obligations of approximately $3.3 billion. The breakdown of debt is as follows:
| Type of Debt | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mortgage Term Loans | $2,600 | 4.10% | 2024-2044 |
| Senior Unsecured Notes | $700 | 5.5% | 2029 |
Recent Acquisitions and Growth Strategy
In 2024, Sun Communities, Inc. has focused on expanding its portfolio through strategic acquisitions. The company has acquired several properties, including:
| Property Name | Type | Purchase Price (in millions) | Location |
|---|---|---|---|
| Lake Pointe Village | Manufactured Home Community | $38.0 | Florida |
| Marina Village Yacht Harbor | Marina | $50.1 | California |
Financial Performance Overview
For the nine months ended September 30, 2024, Sun Communities reported the following financial metrics:
| Metric | Amount (in millions) |
|---|---|
| Net Operating Income (NOI) | $1,006.4 |
| Total Revenue | $1,662.4 |
| Net Income | $292.0 |
Sun Communities, Inc. (SUI) Mission Statement
Company Overview
Sun Communities, Inc. is a leading owner and operator of manufactured housing (MH) and recreational vehicle (RV) communities across the United States and in the United Kingdom. As of September 30, 2024, Sun Communities operates a total of 659 properties, comprising 288 MH communities, 179 RV communities, 138 marinas, and 54 UK properties.
Mission Statement
Sun Communities is committed to delivering exceptional living experiences and creating sustainable communities that enhance the quality of life for residents. The company aims to achieve operational excellence and sustainable growth through strategic acquisitions, community enhancements, and a focus on customer satisfaction.
Strategic Goals
- Enhance resident satisfaction and community experience.
- Achieve sustainable growth through targeted property acquisitions.
- Maintain operational excellence while managing costs effectively.
- Prioritize debt reduction and financial stability amid economic challenges.
Financial Performance
For the nine months ended September 30, 2024, Sun Communities reported total revenues of $2,475.2 million, compared to $2,497.9 million for the same period in 2023. The company's net income for the same period was $292.0 million.
Revenue Breakdown
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Real Property | $634.1 | $618.8 |
| Home Sales | $105.3 | $117.8 |
| Service, Retail, Dining, and Entertainment | $186.2 | $205.5 |
| Interest | $5.5 | $15.2 |
| Brokerage Commissions and Other | $8.8 | $26.0 |
Operational Metrics
As of September 30, 2024, Sun Communities reported the following operational metrics:
| Metric | Value |
|---|---|
| Number of Properties | 659 |
| Total Sites | 227,890 |
| Monthly Base Rent per Site (MH) | $701 |
| Monthly Base Rent per Site (RV) | $618 |
| MH and Annual RV Occupancy | 98.8% |
Market Outlook
Sun Communities anticipates continued rental rate growth that exceeds inflation, with a strategic focus on expense management and operational efficiencies. The company aims to leverage its portfolio to navigate the current macroeconomic challenges, including higher interest rates.
Debt and Liquidity
As of September 30, 2024, Sun Communities had total debt of $7,324.8 million, with an average interest rate of 4.072%. The company reported unrestricted cash on hand of $63.6 million and $1.8 billion of remaining capacity on its Senior Credit Facility.
Conclusion
Sun Communities, through its mission and strategic objectives, aims to enhance the living experience of its residents while ensuring financial stability and sustainable growth in a competitive market environment.
How Sun Communities, Inc. (SUI) Works
Company Overview
Sun Communities, Inc. (SUI) operates as a real estate investment trust (REIT) focused on acquiring, developing, and managing manufactured housing and recreational vehicle communities, as well as marinas. As of September 30, 2024, SUI owned and operated 659 properties across North America and the UK.
Financial Performance
For the three months ended September 30, 2024, Sun Communities reported total revenues of $939.9 million, a decrease from $983.3 million in the same period in 2023. The breakdown is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Real Property Revenue | $634.1 | $618.8 | +2.0% |
| Home Sales | $105.3 | $117.8 | -10.6% |
| Service, Retail, Dining and Entertainment | $186.2 | $205.5 | -9.4% |
| Interest Income | $5.5 | $15.2 | -63.8% |
| Brokerage Commissions and Other | $8.8 | $26.0 | -66.2% |
The total operating expenses for Q3 2024 were $913.0 million, resulting in a net income attributable to SUI common shareholders of $288.7 million, compared to $120.1 million in Q3 2023. The company generated a net operating income (NOI) of $443.1 million for Q3 2024, down from $458.8 million in Q3 2023, reflecting a decrease of 3.3%.
Segment Performance
Sun Communities operates in several segments, including Manufactured Housing (MH), Recreational Vehicle (RV), Marinas, and UK operations. The performance of these segments for the three months ended September 30, 2024, is summarized in the following table:
| Segment | Revenues (in millions) | NOI (in millions) | NOI Margin (%) |
|---|---|---|---|
| Manufactured Housing (MH) | $240.4 | $158.3 | 65.8% |
| Recreational Vehicle (RV) | $205.7 | $117.0 | 56.8% |
| Marinas | $131.8 | $85.1 | 64.5% |
| UK Operations | $56.2 | $28.8 | 51.2% |
Home Sales and Market Trends
Sun Communities sells new and pre-owned homes within its communities. For the three months ended September 30, 2024, home sales totaled $105.3 million, a decline from $117.8 million in Q3 2023. The average selling price for manufactured homes decreased to $84,381, down from $98,113 in the same period last year.
Occupancy Rates
As of September 30, 2024, the occupancy rates across Sun Communities' segments were as follows:
| Segment | Occupancy Rate (%) |
|---|---|
| Manufactured Housing (MH) | 97.3% |
| Recreational Vehicle (RV) | 100.0% |
| Marinas | N/A |
| UK Operations | 91.6% |
Debt and Capital Structure
As of September 30, 2024, Sun Communities had total debt of approximately $3.3 billion. The company’s senior unsecured notes totaled $2.7 billion, with the following notable issuances:
| Note Type | Principal Amount (in millions) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| 5.5% Notes | $500.0 | 5.5% | January 2029 |
| 5.7% Notes | $400.0 | 5.7% | January 2033 |
| 4.2% Notes | $600.0 | 4.2% | April 2032 |
| 2.3% Notes | $450.0 | 2.3% | November 2028 |
| 2.7% Notes | $750.0 | 2.7% | July 2031 |
Acquisitions and Dispositions
During the nine months ended September 30, 2024, Sun Communities acquired two land parcels in the U.S. for $12.9 million, and one land parcel in the UK for $9.6 million. Additionally, the company disposed of 10 properties, including six manufactured housing properties for a gross sale price of approximately $392.2 million.
Capital Expenditures
For the nine months ended September 30, 2024, total capital expenditures were approximately $489.8 million, compared to $790.3 million in the same period of 2023. This included recurring capital expenditures of $89.0 million and non-recurring capital expenditures of $400.8 million.
Market Conditions
Sun Communities operates in a competitive market influenced by economic conditions, interest rates, and demographic trends. The company's performance is affected by the demand for manufactured housing and RV spaces, which are subject to seasonal fluctuations, particularly in warmer months.
How Sun Communities, Inc. (SUI) Makes Money
Revenue Streams
Sun Communities, Inc. generates revenue through several key segments, including Manufactured Housing (MH), Recreational Vehicle (RV), Marina, and United Kingdom (UK) properties. The company derives its income primarily from real property leases, home sales, and various service offerings.
| Segment | Revenue (Q3 2024, in millions) | Revenue (Q3 2023, in millions) | Change (%) |
|---|---|---|---|
| Manufactured Housing | $240.4 | $229.7 | +3.1% |
| Recreational Vehicle | $205.7 | $211.0 | -2.5% |
| Marina | $131.8 | $125.8 | +4.8% |
| United Kingdom | $56.2 | $52.3 | +7.5% |
| Total Revenue | $634.1 | $618.8 | +2.3% |
Real Property Revenue
Real property revenue is categorized into transient and non-transient income. For the three months ended September 30, 2024, the breakdown was as follows:
| Segment | Non-Transient Revenue (in millions) | Transient Revenue (in millions) |
|---|---|---|
| Manufactured Housing | $240.2 | $0.2 |
| Recreational Vehicle | $91.5 | $114.2 |
| Marina | $121.6 | $10.2 |
| United Kingdom | $32.4 | $23.8 |
Home Sales Performance
Sun Communities also earns revenue through home sales, which has shown fluctuations in performance:
| Period | Home Sales (in millions) | Home Cost and Selling Expenses (in millions) | NOI (in millions) |
|---|---|---|---|
| Q3 2024 | $105.3 | $74.3 | $31.0 |
| Q3 2023 | $117.8 | $84.5 | $33.3 |
| Change | -10.6% | -12.1% | -6.9% |
Operating Expenses and NOI
The company's operating expenses are significant, impacting the net operating income (NOI) across segments:
| Segment | Operating Expenses (Q3 2024, in millions) | Operating Expenses (Q3 2023, in millions) | NOI (in millions) |
|---|---|---|---|
| Manufactured Housing | $82.1 | $76.6 | $158.3 |
| Recreational Vehicle | $88.7 | $82.8 | $117.0 |
| Marina | $46.7 | $42.7 | $85.1 |
| United Kingdom | $27.4 | $23.3 | $28.8 |
Seasonality of Revenue
Revenue is influenced by seasonal factors, particularly in the RV and Marina segments:
| Segment | Q1 Revenue (in millions) | Q2 Revenue (in millions) | Q3 Revenue (in millions) |
|---|---|---|---|
| RV | $37.7 | $81.7 | $138.2 |
| Marina | $78.1 | $95.9 | $104.4 |
Conclusion on Financial Performance
As of September 30, 2024, Sun Communities, Inc. reported a net income attributable to common shareholders of $288.7 million, compared to $120.1 million for the same period in 2023. The company continues to adapt its business model to maximize revenue across its various segments while managing operational costs effectively.
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Resources:
- Sun Communities, Inc. (SUI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sun Communities, Inc. (SUI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sun Communities, Inc. (SUI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.