Sun Communities, Inc. (NYSE: SUI) has announced the pricing of a public offering of $500 million aggregate principal amount of 5.500% senior notes due 2029. The offering is expected to close on or about January 11, 2024. The company stated that the net proceeds from the offering will be used to repay borrowings outstanding under its senior credit facility and for working capital and general corporate purposes.
The public offering price for the notes was 99.878% of the principal amount for an effective yield to maturity of 5.528%. The notes will be senior unsecured obligations of the operating partnership, guaranteed fully and unconditionally by the company.
Jon B. Hanson, President and Chief Executive Officer, commented on the offering, "We are pleased with the pricing of our $500 million senior notes. This offering will provide us with additional flexibility to support our strategic initiatives and position us for continued growth."
Sun Communities, Inc. is a real estate investment trust that owns and operates, or has an interest in, manufactured housing and recreational vehicle communities and marinas. As of September 30, 2023, the company owned, operated, or had an interest in a portfolio of 670 developed properties comprising approximately 180,170 developed sites and approximately 48,030 wet slips and dry storage spaces in the United States, the United Kingdom, and Canada.
The full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,127 | $1,264 | $1,398 | $2,273 | $2,970 | $3,172 |
| Revenue Growth | n/a | 12.18% | 10.62% | 62.53% | 30.67% | 6.82% |
| Net Margins | 10% | 13% | 9% | 18% | 9% | 8% |
| Net Income (MM) | $107 | $162 | $132 | $414 | $264 | $249 |
| Net Interest Expense (MM) | $131 | $133 | $129 | $159 | $230 | $308 |
| Depreciation & Amort. (MM) | $287 | $328 | $377 | $523 | $605 | $641 |
| Earnings Per Share | $1.29 | $1.8 | $1.34 | $3.36 | $2.0 | $1.85 |
| EPS Growth | n/a | 39.53% | -25.56% | 150.75% | -40.48% | -7.5% |
| Diluted Shares (MM) | 82 | 89 | 98 | 115 | 123 | 124 |
| Free Cash Flow (MM) | -$26 | -$93 | $274 | $81 | -$186 | $718 |
| Current Ratio | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 |
Sun Communities has growing revenues and no capital expenditures, positive EPS growth, and irregular cash flows. Furthermore, Sun Communities has decent net margins with a stable trend.
