Sun Communities (SUI) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 27, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities First Quarter 2023 Earnings Conference Call. At this time, management would like me to inform you that certain statements made during this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Although, the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's periodic filings with the SEC. The company undertakes no obligation to advise or update any forward-looking statements to reflect events or circumstances after the date of this release.

Having said that, I would like to introduce management with us today. Gary Shiffman, Chairman, President and Chief Executive Officer; and Fernando Castro-Caratini, Chief Financial Officer. After their remarks, there will be an opportunity to ask questions. For those who would like to participate in the question-and-answer session, management asks that you limit yourself to two questions, so everyone who would like to participate has ample opportunity. As a reminder, this call is being recorded.

I'll now turn the call over to Gary Shiffman, Chairman, President and Chief Executive Officer. Mr. Shiffman, you may begin.

Gary Shiffman

Good morning, and thank you for joining us on our conference call to discuss first quarter 2023 earnings and our updated guidance. We're off to a strong start to the year as our first quarter performance extended Sun's track record of delivering reliable NOI growth, driven by our best-in-class properties, which supply is persistently constrained and demand remains resilient.

Our focus on providing an exceptional offering for residents, guests and members, backed by a 10 of customer service in our properties is a value proposition that creates loyalty and durable revenues for Sun.

Our first quarter results were stronger than we anticipated with $1.23 core FFO per share for the quarter, exceeding the high end of our guidance. Our same-property NOI increased 6.7%, surpassing the high end of our guidance by 230 basis points, driven by strong performance across all three segments.