Sun Communities SUI Q4 2024 Earnings Transcript | The Motley Fool

Image source: The Motley Fool. Date Thursday, Feb. 27, 2025 at 5 p.m. ET Call participants Chairman and Chief Executive Officer - Gary Shiffman President - John McLaren Executive Vice President and Chief Financial Officer - Fernando Castro-Caratini Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Safe Harbor Marinas sale -- Announced signed agreement to sell Safe Harbor Marinas to Blackstone infrastructure for $5.65 billion in all cash, representing a 21x multiple on 2024 FFO and generating a $1.3 billion gain. Pro forma business mix -- Core North American manufactured housing and RV NOI is projected to increase from about two-thirds to above 90% of total company NOI post-sale, while SR D&E exposure will be reduced. Leverage profile -- Management expects net debt-to-EBITDA to fall to 2.5x-3x after closing the Safe Harbor sale, down from 6x at year-end 2024. Total dispositions -- Approximately $570 million of nonstrategic assets were disposed between 2024 and the call date, including $180 million in the fourth quarter and early 2025. Core FFO per share -- Reported $1.41 for the quarter (up 5.2% year over year) and $6.81 for the full year 2024. North American same-property NOI growth -- Increased 5.7% for the quarter and 4.1% for the year. Revenue drivers -- 5.8% revenue growth in North American properties for the quarter, led by a 5.5% rise in weighted average monthly rent and a 160 basis point occupancy gain. MH segment performance -- Manufactured housing same-property NOI grew 7.1% for the quarter and 6.8% in same-property revenues for the year, with 97.6% occupancy at Dec. 31. RV segment performance -- RV same-property NOI rose 0.4% for the quarter, with revenue supported by transient-to-annual conversions; over 2,000 conversions for the third consecutive year. UK operations -- UK portfolio achieved 12.9% same-property NOI growth during the quarter and 9% for the year, surpassing unit sales guidance with approximately 2,950 units sold. Cost-saving initiatives -- Captured around $11 million of G&A savings as part of a $15 million-$20 million restructuring plan, realized $4 million in operating expense savings in Q4, and expect an additional $3 million-$5 million savings in 2025 versus typical OpEx increases. Capital expenditures -- Nonrecurring CapEx was reduced by about $315 million (nearly 50%) from 2023 to 2024. Debt metrics -- Year-end debt totaled $7.35 billion at a weighted average interest rate of 4.1% and weighted average maturity of 6.2 years; $424 million debt reduction from year-end 2023. Floating rate debt -- Comprised 8.6% of total debt at year-end. 2025 guidance (ex-marina) -- MH and RV same-property NOI growth expected at 5% midpoint (4.2% revenue growth, 3% expense growth), with manufactured housing NOI growing 6.4% and RV NOI up 1.5% reflecting a 6% decline in transient RV revenue due to conversions and 4.7% revenue per available site growth. UK 2025 outlook -- Same-property NOI expected to rise 1.9%, with 4.9% revenue growth offset by 8.1% expense increases attributed primarily to higher minimum wage and payroll taxes. G&A expense outlook -- Excluding...

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