Executive Summary

Q1 2026 primary documents (press release 8‑K 2.02 and earnings call transcript) were not available in our document catalog or public investor site at the time of this analysis; this recap anchors on the prior two quarters’ source documents (Q2 and Q3 2025) and S&P Global consensus for Q1 2026, and should be updated once Q1 2026 materials post .
Sun raised FY2025 Core FFO/share guidance to $6.59–$6.67 in Q3, lifted North America Same Property NOI growth to 4.6%–5.6%, and increased UK Same Property NOI growth to 3.7%–4.4%; preliminary 2026 rent increases: MH 5.0%, Annual RV 4.0%, UK 4.1% .
Q3 2025 Core FFO/share was $2.28 with 99.2% adjusted blended occupancy for NA MH/RV; MH Same Property NOI rose 10.1% YoY while RV Same Property NOI declined 1.1% as transient RV continued to normalize .
Balance sheet repositioning post Safe Harbor sale: debt ~$4.3B at 3.4% WA rate; net debt/TTM Recurring EBITDA 3.3x; $500M buybacks YTD through Oct 29 at $125.74/share; new $2.0B revolver maturing 2030 with no borrowings outstanding .
Near‑term stock catalysts into Q1 2026: direction of FY2026 guidance (rent/NOI cadence), RV transient trajectory vs seasonal comps, UK home‑sales mix vs recurring property income, and additional capital deployment/buybacks .

What Went Well and What Went Wrong

What Went Well

Manufactured Housing strength: NA Same Property MH NOI +10.1% YoY in Q3; occupancy 98.0% with 2026 rent notices averaging ~5% .
Balance sheet and capital allocation: net debt/TTM Recurring EBITDA 3.3x; $1.0B+ capital returned since Safe Harbor initial closing; $500.3M buybacks YTD at $125.74/share .
UK portfolio execution: UK Same Property NOI +5.4% YoY in Q3; ground lease buy-ins (28 YTD through Oct) enhance flexibility and are accretive .

“Looking forward, the demand fundamentals for our communities remain intact… With our thoughtful strategic and financial re‑positioning, I'm excited about the future” — CEO Charles Young .

What Went Wrong

Transient RV softness: NA Same Property RV revenue −7.8% YoY and RV Same Property NOI −1.1% in Q3; management notes softness with Canadian customers and a deliberate shift toward RV annuals .
Asset impairments: $165.9M impairments in Q3 (six U.S. RV properties), following Q2 $166.1M impairments (UK development and RV assets) .
UK home sales NOI lower: Q3 UK home sales NOI down 21.2% YoY given macro headwinds; team prioritizing recurring real property income mix .

Financial Results

Note: Q1 2026 actuals not yet available; tables show last two reported quarters and S&P Global consensus for Q1 2026 where applicable.

Headline metrics by quarter

Metric	Q2 2025	Q3 2025	Q1 2026E
Revenue ($USD Millions)	$623.5	$697.2	$506.8*
Diluted EPS (GAAP)	$10.02	$0.07	N/A
Core FFO per Share	$1.76	$2.28	N/A

Values marked with * are S&P Global consensus and will be updated upon report; Values retrieved from S&P Global.

Segment real property NOI ($USD Millions)

Segment	Q2 2025	Q3 2025
MH	$168.6	$171.8
RV	$72.9	$115.5
UK	$22.1	$32.9
Total Real Property NOI	$263.6	$320.2

KPIs and balance sheet

KPI	Q2 2025	Q3 2025
Blended MH & Annual RV Occupancy (NA)	98.1%	98.4%
Adjusted Blended Occupancy (NA MH/RV)	99.0%	99.2%
MH leased site net gains (quarter)	170	152
RV leased site net gains (quarter)	288	371
Net Debt / TTM Recurring EBITDA	2.9x	3.3x
TTM Recurring EBITDA / Interest	3.8x	4.4x
Total Debt (carrying)	$4,283.5M	$4,271.7M
WA Interest Rate / Maturity	3.38% / 7.6y	3.38% / 7.4y

Consensus vs Actual (S&P Global; historical)

Metric	Q2 2025 Estimate	Q2 2025 Actual	Q3 2025 Estimate	Q3 2025 Actual
Primary EPS	0.6959	0.8212	1.1171	1.7404
Revenue ($USD Millions)	609.6	612.7	713.3	695.7

Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Core FFO per Share	FY2025	$6.51–$6.67 (7/30/25)	$6.59–$6.67 (10/29/25)	Raised at midpoint
NA Same Property NOI growth	FY2025	3.9%–5.6% (7/30/25)	4.6%–5.6% (10/29/25)	Raised
UK Same Property NOI growth	FY2025	1.3%–3.3% (7/30/25)	3.7%–4.4% (10/29/25)	Raised
2026 Rent Increases (avg)	FY2026	—	MH 5.0%; Annual RV 4.0%; UK 4.1% (prelim)	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q2 2025)	Previous Mentions (Q-1: Q3 2025)	Current Period (Q1 2026)	Trend
Capital allocation (deleveraging, buybacks)	Safe Harbor proceeds used for ~$3.3B debt paydown, $4 special distribution, buybacks initiated	$500M buybacks YTD; $2.0B revolver; net debt/EBITDA ~3.6x pro forma	Not yet reported	Improving flexibility; continued discipline
RV transient normalization	Guidance tempered; shift to annual RV; transient comps pressured	Transient RV −7.8% YoY; annual RV +8.1%; Canadian softness noted	Not yet reported	Stabilizing off tough comps; focus on retention
UK strategy and ground leases	UK NOI +10.2% in Q2; macro cautious	Ground lease buy‑ins (28 closed YTD; accretive); UK Same Property NOI +5.4%	Not yet reported	Mix shift to recurring income; flexibility up
Pricing/rent for 2026	—	Prelim 2026 rent increases (MH 5%, RV 4%, UK 4.1%)	Not yet reported	Solid pricing power maintained
M&A pipeline/pricing	—	Single assets/small portfolios at low‑4% cap rates; selective	Not yet reported	Focused, disciplined

Management Commentary

“Core FFO per share of $2.28… driven by exceptional performance in manufactured housing, and continued progress in our RV business. 50% of our MH residents have received their 2026 rent increase notices, averaging approximately 5%” — Management remarks .
“Pro forma… net debt is approximately $3.7 billion, and our net debt to recurring EBITDA… approximately 3.6x. Under our $1 billion authorized share repurchase program, we have repurchased approximately 4 million shares for $500 million YTD” — CFO .
“Year to date, we have purchased 28 ground leases [UK]… accretive… following all of these closings, 49 of our 53 UK communities will be owned on a freehold basis” — Strategy/BD .

Q&A Highlights

Transaction market and cap rates: Acquisitions in low‑4% cap rate area; selective focus on single assets/small portfolios; residual ~$50M 1031 pipeline .
RV strategy and pricing: 2026 annual RV rent increases set at ~4% to prioritize retention; conversion pace normalized after record years; improving transient booking trends .
UK outlook: Guidance raised on better transient and expense control; ground lease buy‑ins increase earnings and strategic optionality (financing, capex, potential dispositions) .
Tax planning on Safe Harbor gains: Multi‑pillar mitigation (1031 exchanges, special distribution, loss harvesting, NOLs) underway; update expected at year‑end .

Estimates Context

S&P Global consensus entering Q1 2026:

Q1 2026 Primary EPS consensus: $0.325*; Revenue consensus: $506.8M* [Values retrieved from S&P Global].
Forward consensus: Q2 2026 EPS $0.727* / Revenue $655.1M*; Q3 2026 EPS $1.284* / Revenue $727.0M*; Q4 2026 EPS $0.555* / Revenue $546.7M*; Q1 2027 EPS $0.428* / Revenue $405.6M* [Values retrieved from S&P Global].

Implications: With NA MH pricing power intact and RV transient declines narrowing vs expectations, estimate risk skews to mix (annual vs transient), UK home‑sales cadence, and potential incremental buybacks that could support Core FFO/share relative to EPS optics .

Key Takeaways for Investors

Expect commentary on FY2026 outlook: watch how 2026 rent increases translate into Same Property NOI bridges (MH strength vs RV transient normalization) .
RV transient trajectory is a swing factor; early signs point to slight improvement, while annual RV retention remains the core driver .
UK remains a steady contributor on real property NOI; ground lease consolidation provides accretion and exit/financing flexibility if portfolio pruning resumes .
Capital returns likely remain in the toolkit alongside selective acquisitions at low‑4% cap rates; balance sheet metrics offer capacity .
Monitor any residual impairment or redevelopment decisions in RV as strategy evolves; prior charges were concentrated in a handful of assets .
If Q1 2026 delivers stable NOI and disciplined costs, street models may need to reflect higher NA Same Property growth run‑rate and modestly better RV contribution vs prior expectations .
Update this recap when Q1 2026 8‑K and call transcript are released to quantify beats/misses vs the S&P Global consensus baseline.

References:

Q3 2025 8‑K press release and supplemental (10/29/2025) .
Q2 2025 8‑K press release and supplemental (7/30/2025) .
Q3 2025 earnings call transcript (10/30/2025) .

S&P Global consensus values are marked with an asterisk (*) and will be replaced with actuals upon Q1 2026 reporting; Values retrieved from S&P Global.

SUN COMMUNITIES INC (SUI)·Q1 2026 Earnings Summary