2024-05-23 13:34:50 ET
Summary
- Sun Communities has underperformed the Vanguard Real Estate Index Fund ETF in 2024 despite continued underlying growth.
- Core FFO is expected to increase by 1% in 2024.
- Net debt accounts for 33% of enterprise value, with an average interest rate of just 4.21% and a 6.8-year average maturity.
- The market-implied cap rate is about 6.3% - quite attractive given the inflation-beating growth.
- One potential risk is the company consistently overstating Core FFO by adjusting for catastrophic event-related charges.
Introduction
Sun Communities ( SUI ) has marginally underperformed the Vanguard Real Estate Index Fund ETF ( VNQ ) so far in 2024, delivering a high single-digit decline:
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For further details see:
Sun Communities: Low Leverage, Steady Growth And Recession Resilience