Sun Communities net worth has positioned this real estate investment trust (REIT) among the top players in the industry.
With properties across North America and the UK, its financial growth is impressive.
Today, we’ll explore the key contributors to Sun Communities’ financial performance and what sets them apart.
At Ando Money, we’re here to help you dive deep into this company’s financial health.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Sun Communities |
| Full Name | Sun Communities, Inc. |
| Website | www.suninc.com |
| Industry | Real Estate Investment Trust (REIT) |
| Traded as | NYSE: SUI |
| ISIN | US8666741041 |
| Founded | 1975 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Southfield, Michigan, USA |
| Chief Executive Officer | Gary A. Shiffman |
| Number of Employees | N/A |
| Market Cap | $17.38 billion |
| Total Assets | $17.01 billion |
| Total Equity | $6.97 billion |
| Revenue | $864 million (Q2 2024) |
| Net Income | $52.1 million (Q2 2024) |
What is the Net Worth/Market Cap Of Sun Communities in 2024?
Sun Communities’ market cap in 2024 stands at $17.38 billion, reflecting its strong position within the REIT sector. This value places Sun Communities in a competitive bracket with major players in real estate.
While its growth trajectory continues, other companies in the industry also command significant market positions. Here’s a brief list of related competitors and partners:
- Equity LifeStyle Properties
- AvalonBay Communities
- Mid-America Apartment Communities
- UDR, Inc.
- Camden Property Trust
- Simon Property Group
- Ventas, Inc.
- Welltower Inc.
- Public Storage
- American Campus Communities
If you’re interested in comparing Sun Communities with the most valuable companies in the world, check out the top wealthiest businesses.
Sun Communities Financial Performance Overview
Revenue Breakdown by Property Type
Sun Communities generates substantial revenue from its diverse property portfolio.
The core contributors are manufactured housing, recreational vehicle (RV) communities, and marina properties.
The company’s manufactured housing properties alone contributed significantly to its revenue in 2024, with other segments following closely.
Contribution of Same Property NOI Growth
A key factor in Sun Communities’ revenue growth is its Same Property Net Operating Income (NOI).
In 2024, the company reported a 3.6% NOI increase for North American properties in the second quarter, driven by strong occupancy rates in manufactured housing and RV communities.
In the UK, property NOI growth reached an impressive 9.3% for the same period.
Impact of Occupancy Rates on Revenue
Occupancy rates play a vital role in Sun Communities’ financial success.
As of June 2024, the company achieved an occupancy rate of 98.7% for its North American properties.
In the UK, the occupancy rate stood at 90%, reflecting a steady demand for its residential and vacation rental offerings.
Revenue from Home Sales
Home sales are another significant revenue source.
In the second quarter of 2024, Sun Communities reported home sales revenue of $107.5 million, although this figure represented a 12.3% decrease compared to the previous year.
The sales of manufactured homes in North America and the UK continue to be a steady, though fluctuating, contributor to its total revenue.
Financial Impact of Expansion and Development
Sun Communities has been expanding its marina and RV site properties, which positively impacted its revenue.
For instance, the acquisition of several marina properties and land for future development, including a $12.0 million investment in marina assets in the second quarter of 2024, showcases its commitment to growth.
Effect of Property Dispositions on Revenue
In addition to acquisitions, Sun Communities strategically disposes of properties to optimize its portfolio.
The company sold six manufactured housing properties for $224.6 million in July 2024.
This move helped Sun Communities reduce its debt while maintaining a robust asset portfolio, ensuring long-term profitability.
Capital Expenditures and Investments
In 2024, Sun Communities continued to invest in property improvements and growth projects, allocating $143.2 million for capital expenditures in the first half of the year.
Recurring capital expenditures included maintenance and improvements across its North American and UK properties, while non-recurring investments focused on expansion projects.
Role of Dividends and FFO in Overall Revenue
A significant aspect of Sun Communities’ revenue is its dividend distributions. In 2024, the company maintained a regular dividend policy, with a cash distribution of $0.94 per share for the second quarter.
Furthermore, the company’s Core Funds from Operations (Core FFO) reached $1.86 per share, contributing to its ability to return value to shareholders.
FAQs about Sun Communities
How does Sun Communities generate most of its revenue?
It generates most of its revenue through manufactured housing and recreational vehicle communities, as well as marina properties, which together contribute to its growing revenue streams.
What was the occupancy rate for Sun Communities properties in 2024?
As of June 2024, it reported an occupancy rate of 98.7% for manufactured housing and annual RV sites in North America.
How much did Sun Communities invest in growth projects in 2024?
In the first half of 2024, the company invested $77.6 million in growth projects, including property expansions and facility upgrades.
What was Sun Communities’ Core FFO for Q2 2024?
Its Core FFO per share for Q2 2024 was $1.86, reflecting strong financial performance across its property portfolio.
Conclusion
Sun Communities continues to demonstrate robust financial health through its diverse portfolio and smart investments.
If you’re curious to learn more or want to share your thoughts, leave a comment or explore more content on Ando Money’s website.
