Sun Communities Q2 2025 Update
Sun Communities (SUI) is ripping higher today following a strong earnings release. SUI delivered a strong “beat and raise” quarter.
Core FFO Results
- Q2 2025 Core FFO: $1.76.
- Consensus estimate: $1.66.
- Result: Beat by $.10.
Core FFO Guidance
Core FFO guidance:
- Old midpoint: $6.53
- New midpoint: $6.59
- Change: Increased 0.92%.
This is still technically down from 2024 when they reported $6.81. However, SUI paid out a special dividend for $4.00. That was material relative to the share price. If SUI was able to spend that cash on share buybacks, it would’ve basically offset the entire decline. They could’ve repurchased about 3.2% of outstanding shares, if they were allowed to use the cash for buybacks instead of a special dividend. The special dividend was necessary to handle the large taxable gain from selling their marina segment.
The sale of the marinas was also good for leverage. That put SUI in a better position moving forward.
