NYSE$SUI

Sun Communities Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered strong results, driven by reliable real property operations and steady growth across segments.

Sun Communities, Inc. reported strong second quarter results for 2023, with net income attributable to common shareholders increasing by 18% year-over-year. Same Property NOI grew by 6.3%, driven by strong demand and effective expense management. The company is revising full-year Core FFO per Share guidance for 2023 to $7.09 - $7.23 and increasing guidance for Total Same Property NOI Growth to 5.3% - 6.1%.

  • Net Earnings per Diluted Share of $0.72 for the Quarter Increased by 18% Year-over-Year
  • Core FFO per Share of $1.96 for the Quarter, in line with Guidance
  • Same Property NOI Grew by 6.3% for the Quarter over the 2022 Period; Strong Demand and Effective Expense Management Drove Outperformance
  • Same Property Adjusted Occupancy for MH and RV Increased by 170 Basis Points, Year-over-Year

Headline financials

Total Revenue

$864M

Previous: $814M+6.0%
EPS (adj)

$1.96

Previous: $2.02-3.0%
Annual RV Occupancy

100.0%

Previous: 100.0%+0.0%
Capital Expenditures

-$565M

Previous: -$406M-39.0%
Free Cash Flow

-$475M

Previous: -$332M-42.9%
Net Income

$89.8M

Previous: $74M+21.4%
Operating Income

$353M

Previous: $331M+6.7%
Gross Profit

$604M

Previous: $566M+6.6%
Cash & Equivalents

$68.7M

Previous: $185M-62.8%
Total Assets

$17.6B

Previous: $16.4B+7.1%

Revenue & EPS history

Sun Communities · Revenue · Quarterly

$864M

Q2 2023+6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Sun Communities · $414M total across 2 segments · Q2 2023

  • MH Total Revenue
    $266M+86.5%
  • RV Total Revenue
    $148M+51.1%

Forward guidance

The Company is updating full-year 2023 and establishing third quarter 2023 guidance for diluted EPS and Core FFO per Share.

Tailwinds

  • Total real property NOI is expected to increase 6.1% - 6.9%.
  • MH NOI (289 properties) is expected to increase 5.2% - 5.8%.
  • RV NOI (161 properties) is expected to increase 3.4% - 4.6%.
  • Marina NOI (119 properties) is expected to increase 8.0% - 9.0%.
  • Total Same Property NOI is expected to increase 5.3% - 6.1%.

Headwinds

  • The 2.2% downward revision to the midpoint of full-year guidance is due primarily to lower expected UK home sales NOI.
  • Higher interest expense related to short-term interest rate increases since April 26, 2023.
  • A modest reduction to expected Service, retail, dining and entertainment NOI as compared to prior guidance.
  • Total same property NOI to increase 3.2% - 4.5% during the third quarter ending September 30, 2023
  • UK home sales NOI $65.7 - $75.4 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.1%

Avg return

30 days after

64%

41 / 64 earnings

Positive

+8.8%

Q3 2022

Best reaction

-7.5%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-0.8%-2.3%
Q4 2025+2.0%+4.5%-4.4%
Q3 2025+2.8%+4.4%+7.8%
Q1 2025-4.5%-3.8%-4.3%
Q4 2024-0.6%-1.0%-2.8%
Q3 2024-7.5%-4.6%-6.4%
Q2 2024+4.7%+2.3%+6.3%
Q1 2024-6.5%-1.5%-3.1%
Q4 2023+2.4%+1.1%+1.4%
Q3 2023+2.4%+4.4%+18.7%
Q2 2023-4.9%-6.3%-10.9%
Q1 2023-2.3%+0.3%-7.6%
Q4 2022-5.1%-6.8%-14.4%
Q3 2022+8.8%+12.1%+21.9%
Q2 2022+0.2%+2.1%-0.4%
Q1 2022-1.8%-6.0%-13.8%
Q4 2021-1.3%-0.4%-6.5%
Q3 2021-2.2%-3.1%-1.1%
Q2 2021+2.2%+4.2%+4.6%
Q1 2021+1.4%+3.5%+3.9%
Q4 2020+1.2%+1.3%-0.4%
Q3 2020-2.3%-2.3%-3.6%
Q2 2020+3.4%+4.1%+7.6%
Q1 2020+3.4%+15.8%+13.0%
Q4 2019+2.1%+1.0%-33.6%
Q3 2019+1.9%+1.9%+2.0%
Q2 2019-0.2%+1.2%+11.5%
Q1 2019+2.2%+1.7%+5.5%
Q4 2018-0.7%-1.0%+3.0%
Q3 2018+3.7%+3.2%+3.0%
Q2 2018+0.2%+0.2%+5.8%
Q1 2018+0.0%+2.9%+2.2%
Q4 2017+2.4%+4.0%+3.6%
Q3 2017+0.5%+0.7%+4.2%
Q2 2017+1.2%+1.4%+2.3%
Q1 2017+0.5%+0.2%+4.0%
Q4 2016+3.1%+2.2%-0.6%
Q3 2016-1.0%-2.3%-7.6%
Q2 2016-2.4%-3.6%-4.3%
Q1 2016-0.2%
Q4 2015+1.7%
Q3 2015-2.9%
Q2 2015+3.3%
Q1 2015+2.7%
Q4 2014-1.3%
Q3 2014+6.6%
Q2 2014+1.5%
Q1 2014+2.7%
Q4 2013-2.6%
Q3 2013+0.1%
Q2 2013-1.0%
Q1 2013+0.3%
Q4 2012+1.5%
Q3 2012-3.9%
Q2 2012+0.4%
Q1 2011+1.4%
Q1 2012+0.6%
Q1 2010+0.7%
Q4 2011+0.7%
Q3 2011-1.9%
Q3 2010-1.9%
Q2 2010+2.5%
Q2 2011+2.5%
Q4 2010+2.5%

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