Sun Communities (SUI) Q4 2023 earnings summary

Executive summary

• Full-year revenue rose 8.6% and same-property NOI rose 7.3%; Core FFO was $7.10 per Share, while GAAP results included a $369.9 million non-cash goodwill impairment.

• MH and annual RV occupancy reached 97.4%; adjusted blended same-property occupancy rose 230 bps YoY to 98.9%.

Financial highlights

• Q4 revenue increased 7.8% YoY to $674.3 million; FY revenue increased 8.6% to $3,224.6 million.

• Q4 net loss attributable to common shareholders was $80.9 million, or $0.65 per diluted share, versus net income of $4.7 million, or $0.04, in Q4 2022.

• FY net loss attributable to common shareholders was $213.3 million, or $1.72 per diluted share, versus net income of $242.0 million, or $2.00, in 2022; Core FFO was $7.10 per Share.

• Same-property NOI increased 9.6% in Q4 and 7.3% for FY 2023, versus the corresponding 2022 periods.

Outlook and guidance

• FY 2024 Core FFO guidance is $7.04–$7.24 per Share; expected same-property NOI growth is 4.8%–6.0%.

• Q1 2024 same-property NOI growth guidance is 6.0%–7.3%; North America revenue-producing site growth is expected at 2,450–2,750 sites for FY 2024.

• 2024 annual distribution set at $3.76 per common share and unit, up 1.1% from $3.72 in 2023; first increased payment is scheduled for April 2024.

• UK home sales remain exposed to macro headwinds; FY 2024 estimates use exchange rates in effect on December 31, 2023.