Research Update: Sun Communities Inc. Ratings Affirmed On Solid Operating Performance, Outlook Stable

Sun Communities Inc. continues to post solid and steady operating metrics, highlighting the resiliency and strength of its portfolio. The company's S&P Global Ratings-adjusted debt to EBITDA was slightly elevated as of the end of the first quarter, though we expect it will organically deleverage over the next 12 months. We affirmed our 'BBB' issuer credit rating on Sun Communities and our 'BBB' issue-level rating on its unsecured notes. The stable outlook reflects our expectation that the company will continue to benefit from the sound long-term fundamentals across its portfolio and post solid operating metrics, including consistently high occupancy and same-property net operating income (NOI) growth. Moreover, we expect Sun Communities will fund its growth initiatives with a combination of

...- Sun Communities Inc. continues to post solid and steady operating metrics, highlighting the resiliency and strength of its portfolio. - The company's S&P Global Ratings-adjusted debt to EBITDA was slightly elevated as of the end of the first quarter, though we expect it will organically deleverage over the next 12 months. - We affirmed our '###' issuer credit rating on Sun Communities and our '###' issue-level rating on its unsecured notes. - The stable outlook reflects our expectation that the company will continue to benefit from the sound long-term fundamentals across its portfolio and post solid operating metrics, including consistently high occupancy and same-property net operating income (NOI) growth. Moreover, we expect Sun Communities will fund its growth initiatives with a combination of free cash flow, proceeds from dispositions, debt, and common equity such that its S&P Global Ratings-adjusted debt to EBITDA declines to, and remains in, the high-5x to 6x range over the next...

Research Update