Sun Communities, Inc. (NYSE:SUI)

CAPS Rating: 2 out of 5

A self-administered and self-managed real estate investment trust. The Company owns, operates, develops and finances manufactured housing communities concentrated in the midwestern and southeastern United States.


Player Avatar tomtuo (96.30) Submitted: 7/25/2008 3:09:12 PM : Outperform Start Price: $10.28 SUI Score: +339.25

A manufactured housing REIT!

When the market prices an equity at a 14% dividend yield, the market is telling you that it does that think that dividend is sustainable. And the manufactuered housing industry has been a bad business to be in since 2000, when much financing for manufactuered housing left the market place.

However, now there are real signs of stabilization, or even a turnaround. I think there is a bit if a counter cycliality to this business that makes it counter cyclial to the broader housing markets and the broader economic environment: 1. manufactuered housing is for poor people so there is a trade down effect there (just like how walmart does better in a recession) 2. when financing is less readily available for a regular house, some will trade down to manufactured housing.

So in short I think that dividend is sustainable. There might even be upside!

Report this Post 2 Replies
Member Avatar kiplewis (< 20) Submitted: 9/15/2008 10:28:47 PM
Recs: 0

This dividend is not going to get cut, I have collected checks on this dividend for 7 years now. This stock undervalued until the yield is at 6%. I keep collecting checks and lowering my basis. Stock just crossed over its 200 day moving average and is poised to hit 22, a nice move from 19 and a dividend will be paid soon. Fundamentals are improving and the credit crunch is rapidly improving fundamentals in the mh space as buyers cant qualify for low end single family housing anymore.Dividend is safe, stock has been hammered and has nothing but upside at this price.

Member Avatar InvestRetired (< 20) Submitted: 3/24/2010 10:26:05 PM
Recs: 0

As long as Gary Shiffman stays with SUI look for continued DIVIDENDS. Within the last year this stock has gone from just over $8.00 to about $24. Made a small investment when it was paying 30% dividends. I like the history of stable dividends and a pretty good looking debt figure. The retirement community is where investments should be headed. With so many 401K still low in value; many 62 yr. olds may downsize their retirement dreams and looks for the gated manufactured home communities instead of high rise condos'.

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