Sun Communities, Inc. (NYSE:SUI) Declares $1.04 Quarterly Dividend

Key Points

• Sun Communities, Inc. announced a quarterly dividend of $1.04 per share, with a dividend yield of 3.3%, payable on October 15th to shareholders of record as of September 30th.
• The company has a dividend payout ratio of 142.4%, indicating it relies on its balance sheet to cover dividend payments, while future earnings projections suggest a more sustainable payout ratio of 53.6%.
• Recent analyst ratings show a mix of opinions, with an average price target of $138.21 for the stock, indicating a generally cautious outlook.

Sun Communities, Inc. (NYSE:SUI - Get Free Report) announced a quarterly dividend on Wednesday, September 3rd, RTT News reports. Stockholders of record on Tuesday, September 30th will be paid a dividend of 1.04 per share by the real estate investment trust on Wednesday, October 15th. This represents a c) annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, September 30th.

Sun Communities has a payout ratio of 142.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Sun Communities to earn $7.02 per share next year, which means the company should continue to be able to cover its $3.76 annual dividend with an expected future payout ratio of 53.6%.

Sun Communities Stock Performance

Shares of NYSE:SUI traded up $0.78 during midday trading on Friday, hitting $129.69. The stock had a trading volume of 877,418 shares, compared to its average volume of 817,942. The company has a market capitalization of $16.23 billion, a PE ratio of 12.69, a P/E/G ratio of 6.65 and a beta of 0.86. The stock has a 50 day moving average price of $125.62 and a two-hundred day moving average price of $125.83. The company has a current ratio of 7.08, a quick ratio of 7.08 and a debt-to-equity ratio of 0.55. Sun Communities has a 1 year low of $109.22 and a 1 year high of $147.83.

Sun Communities (NYSE:SUI - Get Free Report) last issued its earnings results on Wednesday, July 30th. The real estate investment trust reported $1.76 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.09. The business had revenue of $623.50 million for the quarter, compared to the consensus estimate of $614.79 million. Sun Communities had a net margin of 48.86% and a negative return on equity of 0.60%. During the same quarter in the previous year, the firm earned $1.86 earnings per share. Sun Communities has set its FY 2025 guidance at 6.510-6.670 EPS. Q3 2025 guidance at 2.130-2.230 EPS. As a group, equities analysts predict that Sun Communities will post 6.77 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sun Communities

A number of institutional investors have recently modified their holdings of SUI. Mercer Global Advisors Inc. ADV raised its position in shares of Sun Communities by 112.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 8,196 shares of the real estate investment trust's stock valued at $1,008,000 after buying an additional 4,342 shares during the last quarter. Baird Financial Group Inc. grew its holdings in Sun Communities by 5.7% in the fourth quarter. Baird Financial Group Inc. now owns 4,381 shares of the real estate investment trust's stock valued at $539,000 after purchasing an additional 238 shares during the period. Captrust Financial Advisors grew its holdings in Sun Communities by 3.7% in the fourth quarter. Captrust Financial Advisors now owns 3,627 shares of the real estate investment trust's stock valued at $446,000 after purchasing an additional 128 shares during the period. Cresset Asset Management LLC grew its holdings in Sun Communities by 13.7% in the fourth quarter. Cresset Asset Management LLC now owns 3,830 shares of the real estate investment trust's stock valued at $474,000 after purchasing an additional 461 shares during the period. Finally, Deutsche Bank AG grew its holdings in Sun Communities by 398.5% in the fourth quarter. Deutsche Bank AG now owns 791,003 shares of the real estate investment trust's stock valued at $97,270,000 after purchasing an additional 632,331 shares during the period. Institutional investors and hedge funds own 99.59% of the company's stock.

About Sun Communities

Established in 1975, Sun Communities, Inc became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.