Sun Communities Operating Partnership Prices $400M Senior Notes at 5.7% Interest Rate

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Sun Communities ($NYSE:SUI) Inc. (NYSE: SUI) is a Real Estate Investment Trust (REIT) that owns and operates manufactured home and RV communities across the United States and Canada. On Monday, Sun Communities’ Operating Partnership priced $400 million in senior notes due 2033 at a 5.7% interest rate. The notes will bear an interest rate of 5.7% per annum and will be issued in a private placement. The aggregate principal amount of the notes will be .203% of the total outstanding principal amount of the notes. The proceeds from the offering are expected to be used by Sun Communities for general corporate purposes, including working capital and capital expenditures.

The company also plans to use the proceeds to repay existing indebtedness, including a portion of the company’s revolving credit facility. The senior notes offering is an important step for Sun Communities as it seeks to further strengthen its financial position and improve its liquidity. The company has seen a significant rise in demand for its housing communities in recent years, and it hopes that this offering will help position it for continued growth in the years ahead.

Market Price

The proceeds from the offering are expected to be used to fund a portion of the purchase price for the acquisition of a manufactured housing community portfolio and to pay related fees and expenses. The company’s common stock opened at $143.8 and closed at $143.8, up by 0.2% from its previous closing price of 143.4. The offering was made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). It also provides amenities, management and other services to its communities and homeowners. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sun Communities. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sun Communities. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sun Communities. More…

Key Ratios Snapshot

Some of the financial key ratios for Sun Communities are shown below. More…

VI Analysis

Investors interested in long-term potential may want to consider SUN COMMUNITIES as an opportunity. The company has been classified as a ‘cow’ by the VI Star Chart, which means that it has a track record of paying out consistent and sustainable dividends. This is further evidenced by its high health score of 7/10, indicating that its cashflows and debt are healthy and should be able to sustain future operations in times of crisis. In terms of fundamental analysis, SUN COMMUNITIES has strong assets, dividend, growth, and profitability. It has been consistently growing its revenue and profits, and has maintained a healthy balance sheet with manageable debt levels. This has allowed it to pay dividends at a steady rate, while also allowing it to make strategic investments in areas of its business that could further improve its long-term potential. Overall, SUN COMMUNITIES is a strong investment opportunity for those looking for a reliable and sustainable return over the long term. Its fundamentals are sound and should ensure that it is able to maintain its dividends and growth in the future. Moreover, its asset, dividend, growth, and profitability metrics should also ensure that it will continue to be a viable investment for many years to come. More…

VI Peers

The competition between Sun Communities Inc and its competitors American Homes 4 Rent, American Campus Communities Inc, Canadian Apartment Properties Real Estate Investment Trust is fierce. All four companies are vying for the top spot in the market and are constantly innovating and improving their offerings to attract and retain customers. While Sun Communities Inc may have the edge in terms of size and scale, its competitors are not far behind and are constantly challenging it.

– American Homes 4 Rent ($NYSE:AMH)

American Homes 4 Rent is a real estate investment trust that focuses on acquiring, renovating, and leasing single-family homes as rental properties. The company was founded in 2012 and is based in Agoura Hills, California. As of December 31, 2020, American Homes 4 Rent owned 53,949 single-family homes in 26 states.

– American Campus Communities Inc ($TSX:CAR.UN)

Canadian Apartment Properties Real Estate Investment Trust is a real estate investment trust that owns, operates and invests in apartment buildings in Canada. The company has a market cap of $6.83 billion as of 2022.

Summary

Sun Communities, a real estate investment trust, has recently issued $400 million of senior notes at an interest rate of 5.7%. This investment offers a potential return for investors who are looking to diversify their portfolios and take advantage of the higher yields associated with Sun Communities. This move will also enable the company to further expand its portfolio of manufactured housing, recreational vehicle, and resort communities across North America.

With this new debt offering, Sun Communities has solidified its position as a major player in the REIT industry, providing investors with an attractive yield and a secure investment. Investors should look closely at Sun Communities’ financials and business strategy to determine if this is a worthwhile investment opportunity.