Sun Communities(US:SUI) Newsfilterยท2024-07-31 21:03Core Insights - Sun Communities, Inc. reported a net income of $52.1 million, or $0.42 per diluted share for Q2 2024, a significant recovery from a net loss of $207.6 million, or $1.68 per diluted share in Q2 2023 [1][18] - The company reaffirmed its full-year Core FFO per share guidance for 2024 in the range of $7.06 - $7.22, with a third-quarter guidance of $2.46 - $2.56 [1][6] - North America Same Property NOI increased by 3.6% for Q2 2024 and 5.6% for the first half of 2024 compared to the same periods in 2023 [1][3] Financial Performance - Core FFO per share for Q2 2024 was $1.86, down from $1.96 in Q2 2023, while for the first half of 2024, it was $3.05 compared to $3.19 in the same period last year [1][18] - North American Same Property NOI increased by $10.4 million for Q2 2024 and $29.8 million for the first half of 2024, representing growth rates of 3.6% and 5.6%, respectively [1][3] - UK Same Property NOI saw a notable increase of 9.3% for Q2 2024 and 19.4% for the first half of 2024 compared to the same periods in 2023 [1][3] Operational Highlights - The occupancy rate for manufactured housing (MH) and annual RV sites in North America reached 97.5% as of June 30, 2024, up from 97.1% a year earlier [2] - The company converted approximately 920 transient RV sites to annual RV sites during Q2 2024, marking a 22.7% increase from the same quarter in 2023 [2] - The Same Property adjusted blended occupancy for MH and RV increased by 150 basis points year-over-year to 98.7% as of June 30, 2024 [5] Investment Activity - In July 2024, the company sold a portfolio of six MH properties for $224.6 million, with an estimated gain of approximately $140 million, using proceeds to pay down debt [6] - The company also acquired a marina property and two marina expansion assets for $12 million in April 2024, and a parcel of land in the UK for $9.6 million in June 2024 [6] Balance Sheet and Debt Management - As of June 30, 2024, the company had $7.9 billion in debt outstanding with a weighted average interest rate of 4.2% and a weighted average maturity of 6.5 years [6] - The Net Debt to trailing twelve-month Recurring EBITDA ratio was reported at 6.2 times, improving to 6.0 times pro forma for recent property dispositions and debt repayments [6][18] Guidance and Future Outlook - The company updated its full-year guidance for Same Property NOI growth in North America to a range of 4.7% - 5.7%, maintaining a midpoint of 5.2% [6] - In the UK, the Same Property NOI growth guidance was revised upward to a range of 8.6% - 10.4% for the full year, reflecting strong annual rental income performance [6][9]