Investing in Sun Communities: A $10,000 Journey Through a Decade

In 2014, if you had invested $10,000 in Sun Communities, Inc. (NYSE: SUI), your portfolio would have grown significantly by 2024. As a fully integrated real estate investment trust (REIT) focused on manufactured home communities, Sun Communities has offered investors a compelling opportunity for growth and income.

Sun Communities' stock price has surged over the past decade, driven by strong rental income growth and strategic acquisitions. In 2014, shares of Sun Communities traded at around $10. By 2024, the stock price had climbed to over $126, representing a remarkable 1,160% increase. This impressive performance has been fueled by the company's ability to generate steady revenue growth and increase earnings per share (EPS) consistently.

One of the key factors contributing to Sun Communities' growth has been its organic expansion. The company has consistently increased occupancy rates and raised rental rates, leading to a compound annual growth rate (CAGR) of 7% in revenue over the last decade. Additionally, Sun Communities has strategically expanded its portfolio through acquisitions, such as the $1.2 billion purchase of Carefree Communities in 2015 and the $1.1 billion acquisition of Equity LifeStyle Properties in 2020. These acquisitions have allowed Sun Communities to grow its manufactured housing community portfolio and enhance shareholder value.



Sun Communities' dividend payout and growth have also played a significant role in its stock price performance. The company has consistently raised its dividend annually for the past seven years, with a current yield of 2.92% and a CAGR of 11.3% in total return. This combination of capital appreciation and income generation has made Sun Communities an attractive investment for income-focused investors and growth seekers alike.



In conclusion, investing $10,000 in Sun Communities stock 10 years ago would have resulted in a substantial return, thanks to the company's impressive growth and dividends. Sun Communities' ability to generate steady revenue growth, increase EPS, and raise its dividend annually has made it an attractive investment option for those seeking both income and growth. As the company continues to execute on its strategic priorities, investors can expect more growth and value creation in the coming years.