Research Update: Sun Communities Inc. Rated 'BBB' On Strong Operating Performance And Improved Credit Protection Metrics; Outlook Stable

Southfield, Mich.-based Sun Communities Inc. is the leading and largest owner of manufactured housing (MH) communities, recreational vehicle (RV) resorts, and marinas across the U.S., with a gross asset base of $13.5 billion as of March 31, 2021. Over the past several years, Sun has maintained strong operating performance that highlights its core property types' sound long-term fundamentals and resiliency throughout economic cycles. At the same time, the company's recent equity raise materially improves its credit protection metrics, with projected S&P Global Ratings-adjusted debt to EBITDA in the low- to mid-5x area by year-end 2021. We assigned our 'BBB' issuer credit rating to Sun. The stable outlook reflects our expectation that Sun will continue to benefit from sound long-term fundamentals

...- Southfield, Mich.-based Sun Communities Inc. is the leading and largest owner of manufactured housing (MH) communities, recreational vehicle (RV) resorts, and marinas across the U.S., with a gross asset base of $13.5 billion as of March 31, 2021. - Over the past several years, Sun has maintained strong operating performance that highlights its core property types' sound long-term fundamentals and resiliency throughout economic cycles. At the same time, the company's recent equity raise materially improves its credit protection metrics, with projected S&P Global Ratings-adjusted debt to EBITDA in the low- to mid-5x area by year-end 2021. - We assigned our '###' issuer credit rating to Sun. - The stable outlook reflects our expectation that Sun will continue to benefit from sound long-term fundamentals across its property portfolio and exhibit solid operating metrics such as occupancy and same-property net operating income (NOI) growth. We also expect Sun to integrate its recently acquired...

Research Update