Sun Communities, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to continuing operations for the quarter ended September 30, 2026, was $137.1 million ($1.07 per diluted share), compared to a net loss of $53.1 million ($0.45 per diluted share) in the same period in 2025.
• Net income attributable to common shareholders for the quarter was $120.7 million ($1.00 per diluted share), compared to $8.5 million ($0.07 per diluted share) in 2025.
• For the nine months ended September 30, 2026, net income attributable to continuing operations was $197.8 million ($1.55 per diluted share), compared to a net loss of $104.8 million ($1.37 per diluted share) in 2025.
• Net loss attributable to common shareholders for the nine months ended September 30, 2026, was $880.7 million ($7.14 per diluted share), compared to net income of $1.2 billion ($9.81 per diluted share) in 2025.
• Funds from Operations (FFO) per share was $2.27 for the quarter and $4.98 for the nine months, compared to $2.18 and $4.60, respectively, in 2025.
• Core FFO per share was $2.35 for the quarter and $5.59 for the nine months, compared to $2.28 and $5.28, respectively, in 2025.
• Same Property Net Operating Income (NOI) increased by $10.4 million (3.6%) for the quarter and $38.4 million (5.2%) for the nine months compared to 2025.
• Total Real Property NOI was $302.6 million for the quarter and $799.6 million for the nine months ended September 30, 2026.
• Recurring EBITDAre was $327.6 million for the quarter and $787.2 million for the nine months ended September 30, 2026.
• Total debt outstanding as of September 30, 2026, was $3.8 billion with a weighted average interest rate of 3.3% and a weighted average maturity of 7.1 years.
• Net Debt to trailing twelve-month Recurring EBITDAre ratio was 3.2 times as of September 30, 2026.
• Total assets were $9.8 billion as of September 30, 2026, down from $12.5 billion as of December 31, 2025.

Guidance and Future Outlook:

• Updated full-year 2026 Core FFO per share guidance to a midpoint of $7.01.
• Updated full-year 2026 North America Same Property NOI growth guidance to 4.9% – 5.3%.
• Established preliminary 2027 full-year rental rate guidance of 5.4% for Manufactured Housing (MH) and 4.4% for Annual RV.
• Fourth quarter 2026 guidance assumes North America Same Property NOI growth of 4.0% – 5.9%.
• Full-year 2026 Diluted EPS guidance range is $6.65 to $6.57 (excluding discontinued operations adjustments).
• Full-year 2026 Core FFO per share guidance range is $6.97 to $7.05.

Business Segments and Product Lines:

• Same Property Revenue for MH increased 5.8% for the quarter and 6.2% for the nine months; RV revenue increased 0.5% for the quarter and 1.1% for the nine months.
• Same Property NOI for MH increased 6.9% for the quarter and 7.3% for the nine months; RV NOI decreased 1.3% for the quarter and increased 0.4% for the nine months.
• Portfolio occupancy for MH and annual RV sites was 98.2% as of September 30, 2026, compared to 98.4% in 2025.
• Same Property adjusted blended occupancy for MH and RV was 98.8% as of September 30, 2026, down from 99.3% in 2025.
• The number of MH and annual RV revenue-producing sites increased by approximately 100 sites during the quarter.
• The portfolio consists of 452 developed MH and RV properties comprising approximately 153,520 developed sites in the U.S. and Canada.

Market and Competitive Landscape:

• Management cited continued strength in manufactured housing and durable demand for attainable housing and affordable vacationing.
• The company noted it is entering 2027 with higher expected rental rate increases compared to 2026 levels.

Risks and Challenges:

• Risks include the final costs and net proceeds related to the completed sale of the UK business, and the ability to deploy proceeds in a timely and value-accretive manner.
• Potential risks involve liquidity and refinancing demands, ability to obtain or refinance maturing debt, and maintaining compliance with debt covenants.
• Risks include general volatility of capital markets, increases in interest rates and operating costs (insurance, taxes, utilities), and difficulties in evaluating or integrating acquisitions.
• Risks include the ability of purchasers to obtain financing for manufactured homes, the level of repossessions, and legislative or regulatory changes affecting rent increases or REIT status.
• Risks include natural disasters, litigation, and changes in economic conditions such as inflation, energy costs, and supply chain disruptions.

Management Commentary and Tone:

• Charles Young, CEO, stated the company delivered a strong quarter exceeding expectations, led by strength in manufactured housing.
• Management highlighted the completion of the UK business sale and disciplined deployment of proceeds primarily toward share repurchases.
• Management described the company as "simpler, more focused" with a "clearer path to long-term value creation."

Other Key Points:

• Completed the sale of the UK business (Park Holidays) on September 22, 2026, receiving net cash consideration of approximately $1.03 billion.
• Sold a portfolio of three RV properties in Florida for $127.0 million; these properties were impacted by Hurricane Ian in 2022.
• Repurchased approximately 2.4 million shares of common stock during the quarter for $293.3 million (average price $119.24).
• Subsequent to the quarter, repurchased approximately 0.7 million shares for $79.8 million (average price $113.24).
• Repaid three mortgage term loans totaling $266.6 million during the quarter, unencumbering 17 properties.
• Acquired two MH properties in the Pacific Northwest subsequent to quarter end for $79.5 million, including the issuance of $28.3 million in Series M preferred operating partnership units.
• No assets were acquired during the quarter ended September 30, 2026.
• The results of the former UK business are presented as discontinued operations.