Sun Communities(SUI)2025-05-05 20:58Financial Performance - Net loss per diluted share for Q1 2025 was $0.34, compared to a net loss of $0.31 per diluted share in Q1 2024[10] - Core FFO per share for Q1 2025 was $1.26, up from $1.19 in Q1 2024, representing a year-over-year increase of 5.9%[16] - Basic earnings per share from continuing operations for Q1 2025 was $(0.19), an improvement from $(1.84) in Q4 2024[48] - Total revenues for Q1 2025 were $470.2 million, a slight increase of 0.2% compared to $469.2 million in Q1 2024[51] - Net loss attributable to SUI common shareholders for Q1 2025 was $42.8 million, representing a 56.2% increase from a net loss of $27.4 million in Q1 2024[51] - Total revenues for the quarter ended March 31, 2025, were $212.7 million, an increase of 5.0% from $202.0 million in the same quarter of 2024[83] - Total expenses for the quarter were $216.3 million, up from $201.0 million in the prior year, resulting in a loss before other items of $(3.6) million compared to a profit of $1.0 million in Q1 2024[83] Occupancy and Property Performance - North America Same Property adjusted blended occupancy for MH and RV increased by 150 basis points to 99.0% as of March 31, 2025[18] - The occupancy rate for the total portfolio was 98.0% as of March 31, 2025[49] - Same Property blended occupancy for MH and RV increased to 98.1% as of March 31, 2025, up 40 basis points from 97.7% a year earlier[60] - The number of occupied sites in North America increased to 11,100 as of March 31, 2025, from 9,970 a year earlier[59] - The number of properties decreased from 529 in Q1 2024 to 502 in Q1 2025, a reduction of 5.1%[56] Debt and Financial Position - As of March 31, 2025, the company had $7.4 billion in debt outstanding with a weighted average interest rate of 4.1%[20] - Total debt remained stable at $7,348.1 million compared to $7,352.8 million in Q4 2024[48] - The company's total outstanding debt as of March 31, 2025, is $7,381.4 million, with a weighted average interest rate of 4.08%[68] - Secured debt amounts to $3,200.7 million, with a weighted average interest rate of 4.06%[68] - Unsecured debt totals $4,147.4 million, with a weighted average interest rate of 4.10%[68] - The company’s net debt to TTM recurring EBITDA ratio was 5.9x for Q1 2025, slightly improved from 6.0x in Q4 2024[48] - The total debt to total assets ratio stands at 38.5%, well within the covenant requirements[74] Guidance and Future Expectations - The company expects Core FFO per share guidance for 2025 to be between $6.43 and $6.63[10] - The Company has established guidance for Q2 2025 with diluted EPS ranging from $11.25 to $11.33 and Core FFO per Share between $1.62 and $1.70[30] - For the full year 2025, diluted EPS is projected to be between $12.62 and $12.82, while Core FFO per Share is expected to range from $6.43 to $6.63[30] - The North America Same Property NOI growth is anticipated to be between 1.7% and 4.0%, and UK Same Property NOI growth is expected to be between 3.9% and 5.9% for Q2 2025[31] Special Distributions and Transactions - A special cash distribution of $4.00 per share was announced, totaling approximately $520.0 million, payable on May 22, 2025[26] - The company completed the sale of Safe Harbor Marinas for net pre-tax cash proceeds of $5.25 billion, with an estimated book gain of approximately $1.4 billion[22] - The company has authorized a stock repurchase program of up to $1.0 billion of its outstanding common stock[28] Operational Metrics - Recurring EBITDA for Q1 2025 was $236.7 million, down from $271.5 million in Q4 2024[48] - Net Operating Income (NOI) for Q1 2025 was $238.1 million, down from $243.1 million in Q1 2024, reflecting a decrease of 2.1%[54] - Same Property Revenues for Q1 2025 totaled $321.9 million, an increase of 4.4% from $308.2 million in Q1 2024[58] - Same Property operating expenses increased by 4.0% to $105.4 million in Q1 2025 from $101.3 million in Q1 2024[58] Market and Sales Performance - North America home sales decreased by 12.5% to $28.7 million for the quarter ended March 31, 2025, compared to $32.8 million in the same period last year[62] - The average selling price of homes in North America decreased by 17.5% to $82,709 compared to $100,306 in the previous year[62] - Utility reimbursement revenues increased to $29.3 million in Q1 2025, compared to $27.5 million in Q1 2024, indicating a growth of 6.5%[92] Asset Management - The company owns, operates, or has an interest in a portfolio of 502 developed MH, RV, and UK properties, comprising approximately 174,850 developed sites[45] - The company has 13,510 sites available for development across its North American and UK properties[49] - The company recorded asset impairment charges of $20.5 million related to pre-construction development costs at seven properties[76] Accounting and Financial Metrics - The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI, and Same Property NOI is a key management tool for evaluating performance and growth[98] - FFO is defined as GAAP net income (loss) excluding gains or losses from sales of certain real estate assets, plus real estate-related depreciation and amortization[101] - Core FFO provides enhanced comparability for investor evaluations of period-over-period results, excluding certain gain and loss items unrelated to the core business[101]