Year-over-year growth in North American same-property NOI: 7.9%.
U.K. same-property NOI growth: Strong start with approximately $11 million.
Same-property manufactured housing NOI increase from Q1 2023: 8%.
Same-property RV NOI growth: 8.1%.
Same-property Marina NOI increase over the prior year: 7.5%.
U.K. first-quarter home sales: More than 620 homes sold, a 5.4% increase compared to the previous year.
FFO contribution from U.K. home sales for the quarter: $10.2 million.
Future Guidance
Full year 2024 core FFO per share guidance range: $7.06 to $7.22.
Q2 2024 core FFO per share guidance range: $1.83 to $1.91.
Expected full-year total portfolio real property NOI growth: 6.5% to 7.3%.
Updated full-year same-property growth range in North America: 4.6% to 5.8%.
Manufactured housing: 6.2% to 7.1%.
RVs: -0.3% to 1.3%.
Marinas: 6.4% to 7.6%.
Full-year U.K. same-property NOI forecast range: 6% to 8%.
Trends, Market Conditions, Sentiment
Strong demand and limited supply dynamics drive robust operational performance across all business segments.
Notable performance in the same-property manufactured housing, RV, and Marina segments, driven by rental rate increases, occupancy growth, and efficient expense management.
The strategy includes a focus on converting transient RV sites to annual leases to ensure steady revenue.
Actively engaged in capital recycling strategy with asset sales and selective acquisitions to strengthen the Marina member network.
Ongoing commitment to ESG initiatives with significant improvements reported in greenhouse gas emissions inventory and team member volunteer hours.
Continued execution of the strategy to shift a larger share of U.K. business from home sales to real property rents, despite facing economic pressures in the U.K.
Asset sales process ongoing, with positive feedback on market presence and buyer interest.
Concerns over short booking windows for transient RV revenues, leading to conservative forward-looking guidance.
Notable Quotes
Gary Shiffman: “We’re pleased to report solid first quarter results underpinned by strong operational performance in each of our businesses.”
Fernando Castro-Caratini: “In the first quarter, Sun reported core FFO per diluted share of $1.19, driven by strong real property revenue growth and our continued focus on managing expenses.”
Gary Shiffman on U.K. Strategy: “There has been a strategy…we’ve indicated from the time we acquired the acquisition that we look to sacrifice a little bit of the margin on home sales to be able to create a more sticky, dependable real property income.”
Fernando Castro-Caratini on Guidance: “We’re looking to provide as much disclosure as possible to the market…so you can track almost entirely P&L.”
Gary Shiffman on U.K. Operations: “We really want to commend them on that. And it’s things like that, that are causing adjustments. But I think as we continue quarter-by-quarter, we’ll take a cadence that will feel much better.”
