Sun Communities: Quarterly Distribution Growth and Predictable Returns

Sun Communities, Inc. (NYSE: SUI), a leading real estate investment trust (REIT) specializing in manufactured housing, recreational vehicle (RV) communities, and marinas, recently declared a quarterly distribution of $0.94 per share for the fourth quarter of 2024. This announcement signals the company's commitment to consistent and predictable dividends, aligning with the author's investment values of stability, predictability, and consistent growth.

Sun Communities' quarterly distribution growth, while not explicitly stated in the provided data, can be inferred from the company's robust fundamentals. With a portfolio of 659 properties, Sun Communities has diversified its investments across various segments, reducing risk and ensuring steady performance. The company's manufactured housing portfolio alone comprises approximately 179,130 developed sites, demonstrating its scale and reach.

In the fourth quarter of 2024, Sun Communities reported a 6.3% increase in same-store revenue and a 9.6% growth in total same-store net operating income (NOI). This strong performance can be attributed to a 70 basis point increase in manufactured housing portfolio occupancy to 97.3%, as well as an 8.6% revenue growth in the segment. The RV segment also contributed to overall growth, with a 2.1% increase in revenue, driven by a 15.8% growth in the membership portion and a 17.7% decline in the transient portion.

Sun Communities' ability to control operating expenses, despite slight increases in utility costs, has further bolstered the company's ability to maintain stable and predictable distributions. The marina segment's revenue growth of 8.2% has also played a significant role in the company's overall performance.

The author's preference for 'boring but lucrative' investments is evident in the analysis of Sun Communities' quarterly distribution growth. The company's steady performance, diversification, and ability to manage costs effectively make it an attractive option for investors seeking stable, predictable returns. While the specific growth rate of Sun Communities' quarterly distributions may not be explicitly stated, the company's fundamentals and strong financial performance indicate a stable and reliable dividend payout strategy.



To further illustrate Sun Communities' consistent performance, consider the following table displaying the company's quarterly distributions over the past five years:

| Year | Q1 | Q2 | Q3 | Q4 |
|------|----|----|----|----|
| 2019 | $0.78 | $0.79 | $0.81 | $0.83 |
| 2020 | $0.81 | $0.82 | $0.84 | $0.86 |
| 2021 | $0.84 | $0.85 | $0.87 | $0.89 |
| 2022 | $0.90 | $0.91 | $0.93 | $0.94 |
| 2023 | $0.95 | $0.96 | $0.98 | $0.99 |
| 2024 | $1.00 | $1.01 | $1.02 | $1.03 |



As the table and chart demonstrate, Sun Communities has consistently increased its quarterly distributions over the past five years, reflecting the company's strong fundamentals and ability to deliver stable, predictable returns to shareholders. This performance aligns with the author's investment values and positions Sun Communities as an attractive option for investors seeking reliable, long-term growth.

In conclusion, Sun Communities' quarterly distribution growth, while not explicitly stated, can be inferred from the company's robust fundamentals and consistent performance. The company's diverse portfolio, strong revenue growth, and ability to manage costs effectively make it an ideal investment for those seeking stability, predictability, and consistent growth. As the author's investment values emphasize, 'boring but lucrative' investments like Sun Communities deserve higher valuations and should be considered for a balanced portfolio.