Sun Communities, Inc. : SUI-US: Dividend Analysis : December 29th, 2017 (record date) : By the numbers : January 1, 2018

Our analysis is based on comparing Sun Communities, Inc. with the following peers – Apartment Investment and Management Company Class A, UMH Properties, Inc., Equity LifeStyle Properties, Inc., Independence Realty Trust, Inc. and Education Realty Trust, Inc. (AIV-US, UMH-US, ELS-US, IRT-US and EDR-US).

Sun Communities, Inc.’s dividend yield is 2.89 percent and its dividend payout is 359.46 percent. This compares to a peer average dividend yield of 3.85 percent and a payout level of 213.10 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 17 out of a possible score of 100, points to unsustainability as well.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), SUI-US paid a medium quality dividend, which represents a yield of 2.87% at the current price.
  • Dividends were paid for 2 of the last five years — all of them were also of low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), SUI-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.24x), investing cash flow (coverage of -1.56x), issuance cash flow (coverage of 1.63x) and twelve-month prior cash (coverage of 0.32x), for a total dividend coverage of 1.63x.

SUI-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.36x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 0 0 4.06 3.45 2.89
Dividend Payout (%) 1400 812.9 481.48 103.17 1000 359.46

A complete list of metrics and analysis is available on the company page.

Company Profile

Sun Communities, Inc. provides real estate management services. The company operates through the following segments: Real Property Operations and Home Sales & Rentals. The Real Property Operations segment owns, operates, and develops manufacture housing communities and recreational vehicle communities throughout the United States and is in the business of acquiring, operating, and expanding manufactured housing and recreational vehicle communities. The Home Sales and Rentals segment offers manufactured home sales and leasing services to tenants and prospective tenants of its communities. The company was founded in 1975 and is headquartered in Southfield, MI.

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