Sun Communities Inc (SUI) Reports Q3 2023 Earnings and Year-to-Date Results
Net Earnings per Diluted Share of $1.31 for the quarter
Core FFO per Share of $2.57 for the quarter, exceeding the high-end of guidance range
Total Same Property NOI grew by 6.7% for the quarter over the 2022 period
Revised Full-Year Core FFO per Share Guidance for 2023 to $7.05 - $7.13
On October 25, 2023, Sun Communities Inc (NYSE:SUI) released its earnings report for the third quarter and year-to-date results of 2023. The company reported a net income attributable to common shareholders of $163.1 million, or $1.31 per diluted share, for the quarter ended September 30, 2023. This compares to a net income of $162.6 million, or $1.32 per diluted share, for the same period in 2022.
Financial Performance
For the nine months ended September 30, 2023, the net income attributable to common shareholders was $222.8 million, or $1.79 per diluted share, compared to a net income of $237.3 million, or $1.97 per diluted share, for the same period in 2022.
The company's Core Funds from Operations (Core FFO) for the quarter and nine months ended September 30, 2023, were $2.57 per common share and dilutive convertible securities (Share) and $5.76 per Share, respectively. The Same Property Net Operating Income (NOI) increased by 6.7% and 6.6% for the quarter and nine months ended September 30, 2023, respectively, compared to the corresponding periods in 2022.
In the third quarter, we again delivered strong performance in our core real property portfolio, with Same Property NOI growth and Core FFO exceeding our expectations," said Gary A. Shiffman, Chairman, President and CEO.
Operating Highlights
Total MH and annual RV occupancy was 97.2% at September 30, 2023, compared to 97.1% at September 30, 2022. During the quarter ended September 30, 2023, the number of MH and annual RV revenue producing sites increased by 744 sites, compared to an increase of 689 sites during the corresponding period in 2022, an 8.0% increase.
Investment Activity
During the quarter ended September 30, 2023, the company expanded its existing communities by nearly 170 sites and delivered over 70 sites at one ground-up development property.
Balance Sheet and Capital Markets Activity
As of September 30, 2023, Sun Communities Inc (NYSE:SUI) had $7.7 billion in debt outstanding with a weighted average interest rate of 4.1% and a weighted average maturity of 6.8 years. At the same date, the company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.
2023 Guidance Update
The company is updating full-year 2023 and establishing fourth quarter 2023 guidance for diluted EPS and Core FFO per Share. The $7.09 per Share midpoint of the revised full-year guidance range is 1.0% lower than the prior range provided in July, primarily reflecting higher interest expense related to the UK Note remaining outstanding and lower expected transient RV revenues.
Explore the complete 8-K earnings release (here) from Sun Communities Inc for further details.
This article first appeared on GuruFocus.
