Sun Communities, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For Q3 2024, total revenues reached $939.9 million, a decrease from $983.3 million in Q3 2023. The decline was primarily driven by lower home sales revenue, which fell to $105.3 million from $117.8 million, and a decrease in service, retail, dining, and entertainment revenue, which dropped to $186.2 million from $205.5 million. In contrast, real property revenue increased to $634.1 million from $618.8 million. For the nine months ended September 30, 2024, total revenues were $2,475.2 million, slightly down from $2,497.9 million in the same period of 2023.

Despite the revenue decline, Sun Communities reported a substantial increase in net income for Q3 2024, which soared to $305.2 million, compared to $135.6 million in Q3 2023. This increase was attributed to a significant gain on property dispositions amounting to $178.7 million, contrasting with a loss of $0.7 million in the prior year. For the nine-month period, net income was $338.1 million, a recovery from a net loss of $124.9 million in 2023.

The company’s total assets grew to $17,085.1 million as of September 30, 2024, up from $16,940.7 million at the end of 2023. Notably, cash and cash equivalents increased to $81.8 million from $42.7 million, while total shareholders' equity rose to $7,576.1 million from $7,173.0 million.

Strategically, Sun Communities expanded its operational structure from three to four segments, now including UK communities. The company made several acquisitions, including three marinas and land parcels in the U.S. and the UK, totaling approximately $63.8 million. Additionally, the company sold 10 MH properties and one UK property for a gross sale price of approximately $392.2 million.

The company also faced challenges, including asset impairment charges related to Hurricane Helene and previous flooding events, totaling $3.9 million and $5.6 million, respectively. Furthermore, the company recognized a deferred tax benefit of $7.1 million for Q3 2024, reflecting improved tax timing differences.

Overall, Sun Communities demonstrated resilience in profitability despite revenue challenges, supported by strategic acquisitions and effective management of its asset portfolio.