Sun Communities, Inc., the company that owns Sun Outdoors, has reported a strong performance for the second quarter of 2023. The company’s total revenues for the quarter increased by 6% to $863.5 million, compared to $814.3 million for the same period in 2022.
This significant growth is a testament to the company’s robust operational strategies and its ability to adapt to market trends.
The net income attributable to common stockholders for the quarter ended June 30 was $0.72 per diluted share for the second quarter of 2023, a substantial increase from $0.61 per diluted share for the same period in 2022.
Meanwhile, figures show $59.7 million ($0.48 per diluted share) for the company’s net income attributable to common stockholders for the six months ended June 30. This is in comparison to last year’s figures of $74.7 million ($0.63 per diluted share) for the same period.
The company’s total MH and annual RV occupancy was 97.1% at June 30 this year, as compared to 97.2% at June 30, 2022.
Sun Communities owns, operates, or has an interest in a portfolio of 671 developed MH, RV, and marina properties in the U.S., the UK, and Canada. The high occupancy rate is a clear indication of the company’s strong market presence and the quality of its services.
“We delivered strong second-quarter results that were in line with our expectations, driven by the reliability of our real property operations which produce steady growth through economic cycles,” said Gary A. Shiffman, chairman, president, and CEO, in a press release.
“Overall, we remain highly confident in our ability to produce solid cash flow growth and generate value throughout our exceptional MH, RV, and marina portfolios,” he added.
Sun Communities also runs Sun Outdoors, a brand that offers outdoor hospitality services. The company’s rebranding to Sun Outdoors is a strategic move aimed at redefining the outdoor travel experience. By offering an array of unique experiences, premier accommodations, and enhanced digital elements, Sun Outdoors is making camping more inclusive and accessible to a wider audience.
The company’s expansion of new properties, including top-notch manufactured home communities, RV resorts, and campgrounds, is contributing to the growth and diversification of the outdoor hospitality industry. During the quarter that ended June 30, the number of MH and annual RV revenue-producing sites increased by 1,039 sites, as compared to an increase of 950 sites during the corresponding period in 2022, a 9.4% increase.
Sun Communities’ strong operational performance and robust demand for the attainable housing and outdoor experiences that it provides have resulted in compelling organic growth. The company’s financial performance exceeded analysts’ expectations, delivering funds from operations (FFO) of $1.96 per share, beating the Zacks Consensus Estimate of $1.95 per share for the quarter ended June 2023.
The company’s ESG initiatives are also noteworthy. Sun Communities’ manufactured homes are more energy-efficient and reduce more greenhouse gas emissions and waste than conventional homes. Through its strategic partnerships, the company is making a significant contribution to environmental sustainability.
Sun Communities, Inc.’s strong performance in the second quarter of 2023 and its strategic initiatives are having a significant impact on the RV parks and outdoor hospitality industry. The company’s commitment to growth, its focus on sustainability, and its ability to deliver value to its shareholders make it a key player in the industry.
With its robust operational strategies and its ability to adapt to market trends, Sun Communities is well-positioned for continued growth in the future.
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