Sun Communities SUI Q4 2024 Earnings Transcript

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Tue, December 23, 2025 astatine 11:21 AM CST 26 min read

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Thursday, Feb. 27, 2025 astatine 5 p.m. ET

• Chairman and Chief Executive Officer — Gary Shiffman

• President — John McLaren

• Executive Vice President and Chief Financial Officer — Fernando Castro-Caratini

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Gary Shiffman: Good afternoon, and convey you for joining america arsenic we sermon the 4th fourth and afloat twelvemonth results for 2024 and our guidance for 2025 and our precocious announced harmless harbor transaction. We had a precise productive 2024 arsenic we precocious our strategical priorities with the superior extremity of simplifying our operations, focusing connected halfway assets and improving our equilibrium expanse portion positioning Sun for dependable net growth. Throughout the year, we successfully disposed of nonstrategic assets, reduced our indebtedness and further enhanced our governance done Board refreshment. Operationally, we proceed to summation publication from existent spot and yearly income streams portion diligently implementing a wide repositioning strategy to maximize revenues and align expenses much efficiently, driving sustainable net growth.

In total, successful 2024 and done the day of this call, we disposed of astir $570 cardinal of nonstrategic assets. We besides stay highly selective with improvement projects and acquisitions and allocated our superior towards paying down debt. As of year-end 2024, we person improved our nett debt-to-EBITDA ratio to 6x. Over the past 12 months, we person added 2 caller members to our Board of Directors and person announced further planned refreshment. Additionally, the Board Search Committee is continuing the broad hunt process to place and prosecute a caller CEO.

We're excited to person meaningfully accelerated our strategical repositioning with the announcement earlier this week to merchantability Safe Harbor Marinas for an all-cash terms of $5.65 cardinal to Blackstone infrastructure. Safe Harbor was an fantabulous concern for Sun and the merchantability astatine this clip allows america to execute respective of our strategical objectives astir notably refocusing connected our halfway MH and RV segments and meaningfully improving our leverage illustration portion realizing a precise charismatic return. The merchantability terms represents an astir 21x aggregate and Safe Harbor's 2024 FFO and a $1.3 cardinal gain, which is simply a beardown instrumentality for shareholders.

We are pleased with however this transaction allows america to simplify our concern and is expected to amended our margins, net predictability and gross to escaped currency travel conversion. Pro forma for this transaction, our halfway North American manufactured lodging and RV NOI volition summation from astir 2/3 to supra 90% of full institution NOI and portion besides reducing our SR D&E exposure. In presumption of our fiscal outlook, the merchantability is expected to make proceeds that we mean to usage to meaningfully delever with an archetypal post-sale nett debt-to-EBITDA ratio expected to beryllium astir betwixt 2.5 and 3x astatine closing.