Sun Communities Property Revenues Increase During Q1

SOUTHFIELD, Mich. – Sun Communities, Inc. (NYSE: SUI), 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 reported its first quarter results for 2023.

Highlights included:

  • Real Property Revenue Increased 13.8%, Year-over-Year
  • Net Loss per Diluted Share of $0.24
  • Core FFO per Share of $1.23 Exceeded Midpoint of Guidance by 4.7%
  • Total Same Property NOI Grew 6.7%, Exceeding Internal Expectations
  • Strong Demand and Effective Expense Management Drove Outperformance
  • Same Property Adjusted Occupancy for MH and RV Increased 190 Basis Points, Year-over-Year
  • Solid Transient-to-Annual RV Conversions of 524 Sites
  • Reiterating Full-Year Core FFO per Share Guidance for 2023 of $7.22 – $7.42
  • Expecting Total Same Property NOI Growth of 5.0% – 6.0%

Financial Results for the Quarter Ended March 31, 2023

  • For the quarter ended March 31, 2023, net loss attributable to common shareholders was $30.1 million, or $0.24 per diluted share, compared to net income attributable to common shareholders of $0.7 million, or $0.01 per diluted share, for the same period in 2022.

Non-GAAP Financial Measures

  • Core Funds from Operations (“Core FFO”) for the quarter ended March 31, 2023, was $1.23 per common share and dilutive convertible securities (“Share”), as compared to $1.34 for the same period in 2022.
  • Same Property Net Operating Income (“NOI”) increased by 6.7% for the quarter ended March 31, 2023, as compared to the corresponding period in 2022.

“We are pleased with the start to the year, delivering first quarter results which exceeded our expectations. The sustained demand for manufactured housing, RV vacationing and marinas is evident in the 6.7% same property NOI growth in the quarter,” said Gary A. Shiffman, Chairman, President and CEO. “During the quarter, we added over 800 revenue producing sites across our manufactured home and RV communities and delivered over 330 development and expansion sites. We also further enhanced our balance sheet by raising nearly $600 million of long-term, fixed rate debt, the proceeds from which we used to pay down variable rate borrowings. We remain focused on building a stream of long-term, durable revenue and are optimistic in our outlook for 2023.”


North America Portfolio Occupancy

  • Total MH and annual RV occupancy was 96.9% at March 31, 2023, as compared to 97.5% at March 31, 2022.
  • During the quarter ended March 31, 2023, the number of MH and annual RV revenue producing sites increased by 802 sites, as compared to an increase of 670 sites during the corresponding period in 2022, a 19.7% increase.
  • Transient-to-annual RV site conversions totaled 524 sites during the first quarter of 2023 and account for 65.3% of the revenue producing site gains.

Same Property Results

For the properties owned and operated by the company since at least January 1, 2022, the following table reflects the percentage changes, by segment and in total, for the quarter ended March 31, 2023:

Quarter Ended March 31, 2023
MH RV Marina Total
Revenue 6.4 % 6.2 % 10.9 % 7.2 %
Expense 10.4 % 8.1 % 4.3 % 8.2 %
NOI 5.0 % 4.4 % 15.1 % 6.7 %
Number of Properties 289 161 119 569

Same Property adjusted blended occupancy for MH and RV increased to 98.6% at March 31, 2023, from 96.7% at March 31, 2022, an increase of 190 basis points.



During the quarter ended March 31, 2023 the company acquired one MH community and one marina in the United States (“U.S.”) for an aggregate purchase price of $107.0 million. Refer to page 13 for additional details.

Development and Expansion Activities

During the quarter ended March 31, 2023, the company:

  • Delivered over 200 sites at three ground-up development properties.
  • Expanded our existing communities by over 130 sites.
  • Invested $34.9 million to acquire three land parcels located in the U.S. and UK for the potential development of nearly 1,250 sites.



As of March 31, 2023, the company had $7.5 billion in debt outstanding with a weighted average interest rate of 3.9% and a weighted average maturity of 7.4 years. At March 31, 2023, the company’s net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.

During the quarter ended March 31, 2023, the company completed the following financing activities:

  • Entered into a mortgage term loan of $85.0 million. The loan matures on February 13, 2026 and has a fixed interest rate of 5.0%.
  • Issued $400.0 million of senior unsecured notes with an interest rate of 5.7% and a 10-year term due January 15, 2033.
  • Entered into two additional mortgage term loans totaling $99.1 million. The loans mature on April 1, 2030 and April 1, 2033 and have a weighted average interest rate of 5.72%.

In all three instances, the company used the proceeds to repay borrowings outstanding under its senior credit facility.


A conference call to discuss first quarter results was held at 11 a.m. today. A replay will be available following the call through May 11 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13736832. The conference call will be available live on the company’s website.