Sun Communities, Inc. (NYSE:SUI) (“Sun” or the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing (“MH”) and recreational vehicle (“RV”) communities and marinas (collectively, the “properties”), today provided an update on the following recent activities:
- The Company recently completed its North American MH and RV insurance renewal for 2024, resulting in an expected increase in insurance-related expense of approximately 15% to 20%, as compared to 2023.
- In the UK, Park Holidays completed the sale of over 2,800 homes during 2023, in line with guidance, of which 74% were pre-owned and 26% were new homes. NOI margin for the second half of 2023 was approximately $22,000, also in-line with management’s previously communicated range.
- Sun recently completed an administration process related to three real estate assets that collateralized a note receivable extended to Royale Holdings Group in the UK. Sun acquired these assets through a credit bid, a potential outcome that was previously disclosed. Ownership of the assets will be reflected on the Company’s December 31, 2023 consolidated balance sheets, and Sun continues to work through the process relating to the remaining collateral under the note receivable.
- On January 11, 2024, Sun completed a public offering of $500 million aggregate principal amount of 5.50% senior notes due 2029. The majority of the net proceeds were used to repay borrowings outstanding under its senior credit facility, thereby reducing Sun’s floating-rate debt to total debt to approximately 10%.
The Company will provide more detailed information and further updates in its upcoming earnings release and conference call. The Company’s Full Year and Fourth Quarter 2023 results will be released on Tuesday, February 20, 2024, after markets close. A conference call to discuss the results will be held on Wednesday, February 21, 2024, at 11:00 a.m. Eastern Time.
The financial information set forth above reflects the Company’s preliminary estimates with respect to such information, based on information currently available to management, and may vary from actual financial results as of and for the year ending December 31, 2023.
