Sun Communities, a real estate investment trust specializing in manufactured housing and recreational vehicle communities, announced its financial results for the second quarter and first half of 2024.
Sun Communities reported diluted earnings per share of $0.42 for the quarter ended June 30. This represents a turnaround from the first quarter of 2024, which saw a net loss of $27.4 million, or $0.22 per diluted share.
The first six months of 2024 also reached a net income attributable to common shareholders of $24.7 million, or $0.20 per diluted share, compared to a net loss of $252.5 million, or $2.04 per diluted share, for the same period in 2023.
According to a press release, Sun Communities’ operational highlights for the second quarter of 2024. Occupancy rates for manufactured housing and annual RV sites also reached 97.5% as of June 30, up from 97.1% at the same time last year. The company added approximately 1,230 manufactured housing and annual RV revenue-producing sites during the quarter, an 18.7% increase from the 1,040 sites added in the same quarter of 2023.
Additionally, Sun Communities converted about 920 sites from transient to annual leases, a 22.7% increase over the same period in 2023.
Core Funds from operations (Core FFO), showed a slight decrease compared to the previous year. For the second quarter of 2024, Core FFO per share was $1.86, compared to $1.96 in the same quarter of 2023. For the first six months of 2024, Core FFO per share stood at $3.05, compared to $3.19 in the corresponding period of 2023.
Gary A. Shiffman, chairman, president, and CEO, indicated that the company is pleased with its “solid second-quarter results and the advancement of its strategy aimed at delivering reliable earnings growth.”
He highlighted “strong NOI growth” in the manufactured housing and Marina segments, driven by sustained demand.
Shiffman noted growth in annual RV revenues, despite some challenges in the transient RV sector, and emphasized the company’s efforts in actively managing controllable expenses.
“Our UK strategy remains focused on shifting a larger proportion of our income from home sale margins to the resilient, reliable NOI generated by real property rents. Finally, we are executing on our capital recycling objectives. Year to date, we have sold over $300 million of properties and used the proceeds to pay down debt,” Shiffman added.
For more information about the full report, visit suncommunities.com.
