Sun Communities Reports Q1 2025 Financial Results with Increased Revenues and Net Loss

Sun Communities, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $470.2 million, a slight increase from $469.2 million in the same period of 2024. The company's net loss attributable to common shareholders was $42.8 million, compared to a loss of $27.4 million in the prior year. The increase in net loss was primarily driven by higher asset impairment charges and transaction costs related to the ongoing sale of its marina business, Safe Harbor, which is classified as discontinued operations.

In terms of operational performance, the company experienced a decrease in net operating income (NOI) from $243.1 million in Q1 2024 to $238.1 million in Q1 2025. This decline was attributed to a decrease in revenues from the recreational vehicle (RV) segment, which saw a drop in transient revenue. Conversely, the manufactured home (MH) segment reported an increase in NOI, reflecting a 5.2% rise in monthly base rent. The occupancy rate across the company's properties remained strong, with a blended occupancy of 97.0% as of March 31, 2025.

Strategically, Sun Communities is undergoing significant changes, including the planned sale of its marina business, which is expected to generate approximately $5.25 billion in pre-tax cash proceeds. This sale is part of a broader strategy to focus on its core MH and RV segments, enhancing financial flexibility and reducing leverage. The company has also revised its reporting structure from four segments to three, eliminating the marina segment from its operational focus.

The company’s balance sheet as of March 31, 2025, showed total assets of $16.5 billion, a slight decrease from $16.5 billion at the end of 2024. Total liabilities increased to $9.2 billion from $9.1 billion, primarily due to changes in secured borrowings and mortgage loans. Sun Communities maintained a strong liquidity position with $97.4 million in cash and cash equivalents, alongside significant borrowing capacity under its credit facility.

Looking ahead, Sun Communities anticipates continued growth in rental rates and occupancy levels, despite the challenges posed by the current macroeconomic environment. The company plans to utilize proceeds from the Safe Harbor sale to reduce debt and reinvest in its core operations, aiming for sustainable cash flow growth and enhanced shareholder value.