Sun Communities(SUI) - 2024 Q4 - Annual Results

Financial Performance - Net income attributable to common shareholders for Q4 2024 was a loss of $224.4 million, or$ (1.77) per diluted share, compared to a loss of $80.9 million, or$ (0.65) per diluted share in Q4 2023[11]. - Core FFO per share for Q4 2024 was $1.41, up from$ 1.34 in Q4 2023, while for the full year 2024, it was $6.81 compared to$ 7.10 in 2023[15]. - The company reported a loss before other items of $218.3 million in Q4 2024, compared to a loss of$ 14.2 million in Q4 2023[51]. - Basic earnings per share for the year ended December 31, 2024, was $0.71, compared to a loss of$ 1.71 in 2023[51]. - The company reported a recurring EBITDA of $271.5 million for Q4 2024, compared to$ 256.0 million in Q4 2023, reflecting a year-over-year increase of 6.5%[56]. - The company’s FFO per share for the year ended December 31, 2024, was $6.42, down from$ 7.05 in 2023[54]. - The company reported a net interest expense of $350.4 million for the year ended December 31, 2024, compared to$ 325.8 million in 2023[83]. Revenue and NOI Growth - Total revenues from real property for FY 2024 were $1,703.0 million, with an expected growth of 2.2% to 2.9% for FY 2025[31]. - The Company anticipates a total Real Property NOI of$ 1,015.2 million for FY 2024, with expected growth of 2.1% to 3.8% for FY 2025[31]. - Real property revenues (excluding transient) increased by 6.5% to $456.4 million in Q4 2024 from$ 428.7 million in Q4 2023[51]. - The total same property operating revenues for the year were $1,771.2 million, up 4.6% from$ 1,693.4 million in the previous year[59]. - The net operating income (NOI) for the same property portfolio reached $273.4 million, representing a 5.7% increase from$ 258.6 million year-over-year[59]. - Real Property NOI for the year ended December 31, 2024, was $1,305.4 million, an increase of 4.5% from$ 1,249.4 million in 2023[57]. Asset Management and Dispositions - The company disposed of approximately $570 million of non-strategic assets in 2024, including the sale of Safe Harbor Marinas, aimed at reducing leverage and focusing on core businesses[13]. - The company announced the sale of Safe Harbor Marinas for an all-cash purchase price of$ 5.65 billion, expected to close in Q2 2025, generating approximately $5.5 billion of pre-tax proceeds[23]. - Dispositions totaled$ 519.5 million to date, including a six-community MH portfolio for $224.6 million[66]. - The total number of properties decreased from 667 as of December 31, 2023, to 645 as of December 31, 2024[57]. Debt and Capitalization - As of December 31, 2024, the company had$ 7.4 billion in debt outstanding with a weighted average interest rate of 4.1% and a Net Debt to trailing twelve-month Recurring EBITDA ratio of 6.0 times[22]. - The company’s total capitalization as of December 31, 2024, was $23,697.0 million, with total debt amounting to$ 7,387.8 million[69]. - The weighted average interest rate on total debt was 4.09% as of December 31, 2024[71]. - The company reported a maximum leverage ratio of 32.0%, well below the covenant requirement of less than 65.0%[76]. Occupancy and Property Performance - North America Same Property NOI increased by 5.7% for Q4 2024 and 4.1% for the full year 2024, amounting to increases of $14.8 million and$ 45.5 million respectively[15]. - North America Same Property adjusted blended occupancy for MH and RV increased by 160 basis points to 99.0% at December 31, 2024, from 97.4% at December 31, 2023[17]. - The occupancy rate for MH properties was 97.3%, while the annual RV occupancy rate was 100.0%[47]. - The occupancy rate for the total portfolio was 97.0% as of December 31, 2024, slightly up from 96.4% in 2023[57]. Guidance and Future Expectations - The company expects North American Same Property NOI growth of 4.3% - 5.6% and UK Same Property NOI growth of 0.9% - 2.9% for 2025[8]. - The Company has established guidance for Q1 2025 with a diluted EPS range of $(0.28) to$ (0.20) and a Core FFO per Share range of $0.78 to$ 0.86, excluding marinas[29]. - For the full year 2025, the diluted EPS guidance is between $1.11 and$ 1.35, while the Core FFO per Share guidance is between $4.81 and$ 5.05, also excluding marinas[29]. Impairments and Charges - The company recorded a non-cash goodwill impairment charge of $180.8 million in the UK segment due to macroeconomic uncertainties affecting projected future cash flows[22]. - Goodwill impairment for the year was$ 180.8 million, a decrease of 51.1% compared to $369.9 million in 2023[51]. - The company recorded asset impairment charges of$ 24.1 million in the MH and RV segments and $12.1 million related to four RV properties reclassified as held for sale[79]. Capital Expenditures - Recurring capital expenditures for the year ended December 31, 2024, totaled$ 115.7 million, an increase from $87.3 million in 2023, representing a growth of 32.5%[67]. - Total non-recurring capital expenditures reached$ 576.4 million in 2024, compared to $896.4 million in 2023, indicating a decrease of 35.8%[67]. - The company incurred recurring capital expenditures necessary to maintain asset quality, including major road and pool improvements[81]. Home Sales and Rental Income - Home sales in North America decreased by 30.4% to$ 43.1 million for the quarter ended December 31, 2024, compared to $61.9 million in the same quarter of 2023[64]. - Home sales in the UK increased by 44.1% to$ 45.1 million for the quarter ended December 31, 2024, compared to $31.3 million in the same quarter of 2023[64]. - The average monthly base rent per site for manufactured housing (MH) increased by 5.5% to$ 708, compared to $671 in the previous year[61]. - The average monthly base rent per site in the UK increased by$ 42 to $544 for the quarter ended December 31, 2024[63].