Sun Communities (SUI) Begins Offering 3.5M Common Shares

Sun Communities, Inc. (NYSE:SUI) announced the commencement of a public offering of 3.5 million common shares. The move is likely to add to the financial flexibility of this Southfield, MI-based residential real estate investment trust (REIT).

Sun Communities is engaged in owning, operating & financing manufactured housing communities concentrated in the mid-western & southeastern US. As of Mar 31, 2017, the company owned or had an interest in 342 communities comprising around 118,000 developed sites, located in 29 states and Ontario, Canada.

The company plans to utilize the net proceeds generated from the offering for repayment of outstanding borrowings under the revolving loan under its senior credit facility. Also, the company intends to use the proceeds for funding future acquisitions, meeting working capital requirements and general corporate purposes.

Shares of Sun Communities have outperformed the Zacks categorized REIT and Equity Trust – Residential industry in the last three months. Shares of the company have increased 5.1%, whereas the industry has edged up 0.6%. In the last seven days, both its second-quarter and full-year 2017 funds from operations (FFO) per share estimates moved south.



Currently, Sun Communities carries a Zacks Rank #2 (Buy).

Investors interested in the REIT space, may consider better-ranked stocks like Easterly Government Properties, Inc. (NYSE:DEA) , Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) and DiamondRock Hospitality Company (NYSE:DRH) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last 30 days, Easterly Government Properties’ FFO per share for second-quarter 2017 remained unchanged at 31 cents.

In the last 30 days, Gaming and Leisure Properties’ FFO per share for second-quarter 2017 increased 1.3% to 77 cents.

In the last 30 days, DiamondRock Hospitality Company’ FFO per share for second-quarter 2017 remained unchanged at 31 cents.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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Sun Communities, Inc. (SUI): Free Stock Analysis Report

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