Sun Communities, Inc. (NYSE:SUI) Announces $1.12 Quarterly Dividend

Key Points

• Sun Communities declared a quarterly dividend of $1.12 per share, payable October 15 to shareholders of record September 30. The dividend implies a 3.8% annualized yield, and the REIT has increased payouts for eight consecutive years.
• The dividend currently appears strained, with a 169.7% payout ratio based on earnings; however, analysts expect next year’s earnings to support a more sustainable projected payout ratio of 63.5%.
• Shares opened at $117.68, down 1.5%, while institutional investors own 99.59% of the company. Director Gary Shiffman recently sold 25,031 shares for approximately $3.0 million.

Sun Communities, Inc. (NYSE:SUI - Get Free Report) announced a quarterly dividend on Tuesday, September 8th. Investors of record on Wednesday, September 30th will be paid a dividend of 1.12 per share by the real estate investment trust on Thursday, October 15th. This represents a c) dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Wednesday, September 30th.

Sun Communities has raised its dividend payment by an average of 0.2%per year over the last three years and has raised its dividend annually for the last 8 consecutive years. Sun Communities has a payout ratio of 169.7% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Sun Communities to earn $7.06 per share next year, which means the company should continue to be able to cover its $4.48 annual dividend with an expected future payout ratio of 63.5%.

Sun Communities Stock Down 1.5%

NYSE SUI opened at $117.68 on Wednesday. The company has a quick ratio of 2.52, a current ratio of 2.52 and a debt-to-equity ratio of 0.70. Sun Communities has a 52 week low of $115.90 and a 52 week high of $137.85. The firm has a market capitalization of $14.33 billion, a price-to-earnings ratio of -16.60, a PEG ratio of 5.45 and a beta of 0.77. The company has a fifty day moving average of $121.39 and a two-hundred day moving average of $125.30.

Insider Buying and Selling

In other news, Director Gary Shiffman sold 25,031 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $119.96, for a total transaction of $3,002,718.76. Following the transaction, the director owned 857,761 shares of the company's stock, valued at approximately $102,897,009.56. This represents a 2.84% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 1.58% of the stock is owned by insiders.

Institutional Investors Weigh In On Sun Communities

Several large investors have recently modified their holdings of SUI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Sun Communities by 9.1% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,003 shares of the real estate investment trust's stock valued at $127,000 after purchasing an additional 84 shares in the last quarter. IFP Advisors Inc lifted its holdings in Sun Communities by 3.2% during the fourth quarter. IFP Advisors Inc now owns 2,902 shares of the real estate investment trust's stock worth $360,000 after buying an additional 89 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Sun Communities by 13.2% during the fourth quarter. EverSource Wealth Advisors LLC now owns 773 shares of the real estate investment trust's stock worth $96,000 after buying an additional 90 shares during the period. CIBC Asset Management Inc boosted its position in Sun Communities by 2.1% during the 4th quarter. CIBC Asset Management Inc now owns 5,467 shares of the real estate investment trust's stock valued at $677,000 after acquiring an additional 112 shares in the last quarter. Finally, Orion Porfolio Solutions LLC increased its holdings in shares of Sun Communities by 1.3% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 9,335 shares of the real estate investment trust's stock valued at $1,181,000 after acquiring an additional 117 shares during the period. Institutional investors own 99.59% of the company's stock.

About Sun Communities

Sun Communities, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of manufactured housing communities, recreational vehicle (RV) resorts and marinas. The company's portfolio spans more than 500 manufactured housing communities and over 160 RV resorts, offering affordable, long-term housing as well as short-stay recreational lodging. Through professional on-site management and amenity-rich community designs, Sun Communities serves a diverse customer base that includes retirees, workforce families and vacationers.

Founded in 1975 and headquartered in Southfield, Michigan, Sun Communities has grown organically and through strategic acquisitions to become one of the largest operators in its sector.

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