RBC likes Sun Communities marina business sale

After Sun Communities (SUI) announced it has agreed to sell its Safe Harbor Marinas business to Blackstone (BX) for $5.65B in pre-tax proceeds, RBC Capital analyst Brad Heffern said the firm likes the sale of the business at what it views as “a fair valuation” given that investors never became comfortable with the fundamentals of the marina business despite its “strong performance.” Safe Harbor was “ultimately a solid investment” given a $1.3B book value gain and the sale allows Sun to focus on its core businesses and put any leverage concerns to rest, adds the analyst, who keeps an Outperform rating and $134 price target on the shares.