Sun Communities Reports 2024 Fourth Quarter and Full Year Results; Provides 2025 Guidance

Core Insights - Sun Communities, Inc. reported a net loss of $224.4 million, or$1.77 per diluted share, for Q4 2024, compared to a loss of $80.9 million, or$0.65 per diluted share, in Q4 2023 [7] - For the full year 2024, the company achieved a net income of $89.0 million, or$0.71 per diluted share, compared to a net loss of $213.3 million, or$1.72 per diluted share, in 2023 [7] - Core Funds from Operations (Core FFO) were $1.41 per share for Q4 2024 and$6.81 per share for the full year, showing slight increases from $1.34 and$7.10 in the same periods of 2023 [7] Financial Performance - North America Same Property Net Operating Income (NOI) increased by 5.7% for Q4 2024 and 4.1% for the full year compared to 2023, amounting to increases of $14.8 million and$45.5 million respectively [7][8] - UK Same Property NOI rose by 12.9% for Q4 2024 and 9.0% for the full year, translating to increases of $1.8 million and$6.2 million respectively [7] - The company expects North American Same Property NOI growth of 4.3% to 5.6% and UK Same Property NOI growth of 0.9% to 2.9% for 2025 [7][28] Operational Highlights - The occupancy rate for North America’s manufactured housing (MH) and recreational vehicle (RV) properties reached 99.0%, a 160 basis point increase year-over-year [9] - The number of revenue-producing MH and RV sites increased by approximately 710 in Q4 2024, with MH occupancy gains accounting for about 57% of total gains [8] - The company disposed of approximately $570 million in non-strategic assets in 2024, contributing to its deleveraging efforts [4] Strategic Initiatives - 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, which will allow a focus on core businesses and further reduce leverage [15][16] - A non-cash goodwill impairment charge of $180.8 million was recorded in the UK segment due to macroeconomic uncertainties affecting future cash flow projections [14] - The company is executing on strategic priorities aimed at maximizing revenue and managing expenses effectively [4] Guidance for 2025 - The company has established guidance for Q1 and full year 2025, excluding the marina portfolio, with projected diluted EPS ranging from$(0.28) to $0.78 for Q1 and$1.11 to $4.81 for the full year [22] - Core FFO per share guidance for 2025 is expected to range from$1.14 to $1.22 for Q1 and$6.82 to $7.06 for the full year [22][29] - The anticipated proceeds from the Safe Harbor Sale are expected to support debt reduction, shareholder distributions, and reinvestment in core businesses [15]