Executive Summary

Sun Communities’ latest reported quarter (Q3 2025) delivered Core FFO per share of $2.28 (vs. $2.36 in Q3 2024) on $697.2M of revenue, while GAAP diluted EPS was $0.07; management raised FY25 Core FFO guidance to $6.59–$6.67 and tightened operating outlook, setting up Q4 seasonality and FY delivery as catalysts .
North America Same Property NOI rose 5.4% in Q3, led by MH (+10.1%) with blended MH/annual RV adjusted occupancy at 99.2% (+130 bps YoY); UK Same Property NOI grew 5.4% with tighter cost control .
Balance sheet de-risked post Safe Harbor sale: total debt $4.27B at 3.4% WAC and 7.4-year WAM; Net Debt/TTM Recurring EBITDA at 3.3x; new $2.0B revolver undrawn; YTD buybacks of ~$500M support per-share accretion .
Preliminary 2026 rent growth framework (MH +5.0%, Annual RV +4.0%, UK +4.1%) and Q4 Core FFO guidance of $1.31–$1.39 underscore near-term visibility; emphasis on disciplined 1031-funded MH acquisitions and UK ground lease buyouts adds medium-term optionality .

Note: The company has not yet filed Q4 2025 results or an earnings call for the quarter ended December 31, 2025. The most recent earnings materials available are Q3 2025 (reported Oct 29–30, 2025). The recap below synthesizes Q3 performance, the Q4/FY guidance provided on Oct 29, and prior quarters for trend analysis.

What Went Well and What Went Wrong

What Went Well
- Manufactured Housing strength: NA Same Property MH NOI +10.1% in Q3; same-property MH revenue +7.3% with occupancy and rate tailwinds; blended MH/annual RV adjusted occupancy reached 99.2% (+130 bps YoY) .
- Balance sheet upgrade: Net Debt/TTM Recurring EBITDA improved to 3.3x; no borrowings on new $2.0B revolver; fixed-rate debt profile with WAM 7.4 years; investment-grade ratings reaffirmed .
- Guidance raised: FY25 Core FFO midpoint lifted by $0.04 to $6.63; NA Same Property NOI range raised to 4.6–5.6%; UK Same Property NOI raised to 3.7–4.4% .
- Management quotes: “Sun delivered strong third quarter results… exceptional performance in manufactured housing… demand fundamentals… remain intact” — CEO Charles Young .
What Went Wrong
- RV transient softness: NA Same Property RV revenue −7.8% YoY and RV Same Property NOI −1.1% in Q3 as mix shift to annual reduces transient availability; ongoing Canadian softness cited .
- Home sales down: Total home sales revenue −9.2% YoY in Q3, with lower volumes and margin compression, notably UK home sales NOI −21.2% YoY .
- Non-cash impairments: Q3 asset impairments of $165.9M (mainly six U.S. RV assets due to reduced projected cash flows); earlier Q2 impairments tied to strategic pivot away from greenfield .

Financial Results

Reported quarterly metrics (oldest → newest):

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($M)	$680.4	$470.2	$623.5	$697.2
GAAP Diluted EPS	$2.31	$(0.34)	$10.02	$0.07
Core FFO per Share	$2.36	$1.26	$1.76	$2.28
Recurring EBITDA ($M)	$382.6	$236.7	$291.3	$335.7

Segment Real Property NOI ($M):

Segment	Q3 2024	Q2 2025	Q3 2025
MH NOI	$158.3	$168.6	$171.8
RV NOI	$117.0	$72.9	$115.5
UK NOI	$28.8	$22.1	$32.9
Total	$304.1	$263.6	$320.2

Same Property performance (YoY growth):

KPI (Same Property)	Q1 2025	Q2 2025	Q3 2025
NA MH NOI YoY %	+8.9%	+7.7%	+10.1%
NA RV NOI YoY %	−9.1%	−1.1%	−1.1%
NA Total NOI YoY %	+4.6%	+4.9%	+5.4%
UK NOI YoY %	−5.4%	+10.2%	+5.4%

Q3 2025 vs S&P Global consensus estimates:

Metric	Q3 2025 Estimate	Q3 2025 Actual
Primary EPS ($)	1.12*	1.74*
Revenue ($M)	713.3*	695.7*
EBITDA ($M)	337.1*	337.1*

Values retrieved from S&P Global*. Note: SUI’s GAAP diluted EPS reported in 8‑K was $0.07 for Q3 2025 and is not directly comparable to S&P’s “Primary EPS”; investors should anchor operating performance on Core FFO per share for REIT comparability .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Core FFO per Share	FY 2025	$6.51–$6.67 (7/30)	$6.59–$6.67 (10/29)	Raised (midpoint +$0.04)
NA Same Property NOI Growth	FY 2025	3.9%–5.6% (7/30)	4.6%–5.6% (10/29)	Raised (midpoint +35–40 bps)
UK Same Property NOI Growth	FY 2025	1.3%–3.3% (7/30)	3.7%–4.4% (10/29)	Raised (midpoint higher)
Core FFO per Share	Q4 2025	—	$1.31–$1.39	New
Diluted EPS	Q4 2025	—	$0.34–$0.42	New
Preliminary Rent Increases	2026	—	MH +5.0%, Annual RV +4.0%, UK +4.1%	New framework

Additional modeled components (FY25): Interest expense $221–$223M; G&A ex non-recurring $198.3–$202.0M; ancillary NOI $26.1–$27.8M .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Capital allocation post Safe Harbor	Deleveraging to 3.5–4.5x target, special $4.00 distribution, buybacks; reallocating ~$1B to 1031 MH deals	Net Debt/EBITDA 3.3x; ~$500M YTD buybacks; ~$457M 1031-funded acquisitions closed in Oct; $2.0B revolver undrawn	Balance sheet strengthened; selective external growth resuming
RV transient vs annual mix	Transient softness (seasonality, Canadian demand); strategy to convert to annual; expectation of improvement after Q1 trough	Transient revenue decline consistent; NA RV Same Property NOI −1.1%; cost controls; bookings improving at margin	Stabilizing within range; mix shift persists
UK strategy & ground leases	Focus on recurring real property income; began repurchasing ground leases (accretive ~4.25% yields)	28 titles repurchased YTD (+5 pending); accretive, enhances flexibility; UK Same Property NOI growth raised	Execution progress; stronger outlook
Development pipeline	Strategic pivot away from greenfield; Q2 impairments tied to plan change	Additional Q3 impairments on six RV properties (revised cash flow outlook)	De-emphasized development; portfolio pruning
Operating efficiency	Procurement standardization, G&A and TOM savings, bad debt improvement	Continued expense discipline; reiterated procurement and retention focus	Sustained cost control

Management Commentary

“Sun delivered strong third quarter results that surpassed our expectations, driven by exceptional performance in manufactured housing, and continued progress in our RV business.” — Charles Young, CEO .
“For 2026, annual RV rental rates are being set with an estimated average annual increase of approximately 4%” — John McLaren, President .
“Pro forma… net debt is approximately $3.7 billion, and our net debt to recurring EBITDA… is approximately 3.6 times… We continue to view buybacks as a way to enhance long-term shareholder value.” — Fernando Castro‑Caratini, CFO .
“What we did see from the transactions we executed on was cap rates in the low 4% area… we will remain selective.” — Charles Young, CEO .

Q&A Highlights

RV dynamics and Canadian exposure: Management emphasized retention and conversion to annual contracts to offset transient softness; Canadian transient share is small (≤5%), with some softness in Florida and Northeast offset by domestic demand .
Ground lease buyouts economics: UK ground lease repurchases blended low-to-mid 4% yields, accretive vs cash yields; significantly improves strategic flexibility (freehold control) .
Capital allocation: With improved leverage and liquidity, SUI is weighing selective MH acquisitions (low-4% cap rates), further UK ground lease buyouts, and opportunistic buybacks under the $1B authorization .

Estimates Context

Q4 2025 S&P Global consensus: Primary EPS $0.41*, Revenue $507.2M*, EBITDA $209.9M*. Values retrieved from S&P Global*.
FY 2025 S&P Global consensus: Primary EPS $10.26*, Revenue $2.300B*, EBITDA $1.005B*. Values retrieved from S&P Global*.
Note: SUI raised FY25 Core FFO guidance to $6.59–$6.67 and lifted NA/UK Same Property NOI ranges, implying modest positive estimate revisions for Core FFO and property-level NOI vs July levels .

Key Takeaways for Investors

Operating quality: MH remains a compounding engine (Q3 NA MH Same Property NOI +10.1%); occupancy and pricing power remain firm into Q4 seasonality .
Outer-year visibility: Preliminary 2026 rental rate increases (MH +5.0%, Annual RV +4.0%, UK +4.1%) support resilient embedded growth .
Financial flexibility: Net Debt/EBITDA at 3.3x; investment-grade profile; undrawn $2.0B revolver; share buybacks and disciplined 1031-funded MH acquisitions provide levers for per-share growth .
RV transient normalization: Expect continued mix shift toward annual with disciplined expense control; Q4 guidance embeds a 3.5–7.5% NA Same Property NOI growth range (with RV seasonality) .
UK execution: Ground lease buyouts accretive and simplify ownership, while UK Same Property NOI outlook improved; continued focus on recurring income mix .
Guidance momentum: FY25 Core FFO guidance raised; Q4 Core FFO guided to $1.31–$1.39; watch execution on Q4 NOI seasonality and acquisitions pipeline as near-term catalysts .

Additional Detail (Source Citations)

Financial highlights and reconciliations, including revenues, EPS, Core FFO per share, NOI, and Recurring EBITDA: Q3 2025 ; Q2 2025 ; Q1 2025 .
Same Property performance detail: NA and UK tables for Q1–Q3 2025 .
Balance sheet/capitalization, credit metrics, debt schedules: .
Guidance tables and currencies: ; prior (7/30) reference points .
Operating and strategic commentary from Q3 call: .

Disclaimer on estimates: Asterisked estimate and “actual” values in the estimates tables are sourced from S&P Global and may reflect differing definitions (e.g., “Primary EPS”) versus company-reported GAAP EPS and REIT operating metrics like Core FFO per share. Values retrieved from S&P Global*.

SUN COMMUNITIES INC (SUI)·Q4 2025 Earnings Summary