Sun Communities Reports $3.2 Billion Revenue and $89 Million Net Income for 2024

Sun Communities, Inc. (SUI) reported total revenues of $3.2 billion for the year ended December 31, 2024, consistent with 2023's total revenue. Net income attributable to SUI common shareholders reached $89.0 million, a significant improvement from the $213.3 million net loss reported in the previous year. This turnaround was primarily attributed to increased same-property net operating income (NOI) and gains on asset dispositions. The company achieved annual core funds from operations (FFO) of $6.81 per diluted share and OP unit.

Real property same-property NOI growth demonstrated varied performance across segments. The MH segment saw a 6.7% increase, marinas a 5.4% increase, and the UK segment a 9.0% increase compared to 2023. Conversely, the RV segment experienced a 2.8% decline in same-property NOI growth, primarily due to lower-than-anticipated transient revenues and increased expenses. Same-property adjusted blended occupancy for MH and RV properties increased by 160 basis points to 99.0%, up from 97.4% in 2023.

Strategic developments during the year included the sale of 25 properties and three development properties for a gross sales price of $476.8 million, resulting in net cash consideration of approximately $326.7 million after debt settlement. The company also acquired three marinas and three marina expansion assets for $63.8 million. Furthermore, SUI settled all outstanding forward sale agreements for 2,713,571 shares of common stock under its At the Market Offering Sales Agreement, using the net proceeds of $361.7 million to repay debt. A new offering of senior unsecured notes raised $495.4 million, primarily used to reduce floating-rate debt.

Operational highlights included a total portfolio occupancy rate of 97.0% (excluding transient RV sites) for MH and annual RV properties. The company employed 6,590 full and part-time employees as of December 31, 2024, with 1,286 on-site property managers (99.4% full-time). Home sales volume in North America totaled 2,001 units, while the UK segment reported 2,948 units sold. The company also noted that it had 16,570 additional sites suitable for future development. The company's portfolio consisted of 645 developed properties, including 288 MH communities, 166 RV communities, 138 marinas, and 53 UK communities, containing a total of 225,150 developed sites.

Looking ahead, Sun Communities anticipates rental rate growth exceeding headline inflation in 2025, with a continued focus on expense management to drive organic cash flow growth. Given the macroeconomic environment, the company plans to prioritize debt reduction using free cash flow and proceeds from equity issuances and asset sales. Future development activity will be limited to the most strategic opportunities. The company also plans to continue selectively acquiring properties and expanding its development pipeline, subject to market conditions. The company announced a definitive agreement to sell Safe Harbor Marinas for approximately $5.65 billion, subject to customary closing conditions. The closing is anticipated in the second quarter of 2025.