Mark E. Patten Appointed Chief Financial Officer, Effective January 5, 2026Southfield, MI, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (“Sun” or the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities, today announced the appointment of Mark E. Patten as Chief Financial Officer (“CFO”), effective January 5, 2026. Mr. Patten will succeed Fernando Castro-Caratini, who ...

Group 1 - Sun Communities Inc reported strong financial performance with a revenue increase of 15% year-over-year, reaching $1.2 billion [1] - Darling Ingredients Inc has expanded its production capacity, which is expected to boost its revenue by an estimated 20% in the next fiscal year [1] - Wave Life Sciences Ltd is advancing its pipeline with several new drug candidates entering clinical trials, indicating potential for significant growth in the biotech sector [1] Group 2 - The overall market sentiment remains positive, driven by strong earnings reports and optimistic forecasts from key players in the industry [1] - Analysts highlight the importance of innovation and strategic partnerships as critical factors for sustained growth in the sectors represented by these companies [1] - The investment landscape is becoming increasingly competitive, with emerging companies challenging established players, necessitating a focus on agility and adaptability [1]

Core Points - Sun Communities, Inc. declared a quarterly distribution of $1.04 per share for Q4 2025, payable on February 2, 2026, to shareholders of record on December 31, 2025 [1] Company Overview - As of September 30, 2025, Sun Communities, Inc. owned, operated, or had an interest in a portfolio of 501 developed properties, comprising approximately 174,680 developed sites across the United States, Canada, and the United Kingdom [2]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Sun Communities, Inc. [1] Group 1: Legal Investigation - The law firm is looking into whether the actions of Sun Communities' leadership have harmed shareholder interests [1] - Long-term shareholders may have options for seeking corporate governance reforms and financial incentives [2] Group 2: Shareholder Involvement - Shareholder participation is emphasized as a means to improve company policies and enhance overall shareholder value [3] Group 3: Firm's Background - Halper Sadeh LLC has a history of representing global investors affected by securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

Core Viewpoint - Sun Communities (SUI) is a REIT with a low yield of 3.3%, and it does not have a history of growth despite being priced similarly to other growing REITs [1] Group 1: Company Overview - Sun Communities is categorized as a Real Estate Investment Trust (REIT) [1] - The current portfolio of Sun Communities does not appear to be experiencing growth [1] Group 2: Investment Analysis - The analysis is based on value investing principles, focusing on an owner's mindset and a long-term investment horizon [1] - The author does not engage in writing sell articles or recommending short positions [1]

Core Viewpoint - Sun Communities (SUI) is a REIT with a low yield of 3.3%, and it does not have a history of growth despite being priced similarly to other growing REITs [1] Group 1: Company Overview - Sun Communities is categorized as a Real Estate Investment Trust (REIT) [1] - The current portfolio of Sun Communities does not appear to be experiencing growth [1] Group 2: Investment Analysis - The analysis is based on value investing principles, focusing on an owner's mindset and a long-term investment horizon [1] - The author does not engage in writing sell articles or recommending short positions [1]

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Property Portfolio - As of September 30, 2025, the company owned and operated a portfolio of 501 developed properties, including 284 MH communities, 164 RV communities, and 53 UK communities[182]. - The total number of properties as of September 30, 2025, was 501, a decrease from 521 properties in 2024[208]. - The number of properties remained stable at 437 as of September 30, 2025, with 281 MH and 156 RV properties[216]. - The number of properties in the UK remained stable at 51 as of September 30, 2025[220]. Financial Performance - Total Net Income attributable to SUI common shareholders for the three months ended September 30, 2025, was $8.5 million, compared to $288.7 million for the same period in 2024[200]. - The company's NOI for the three months ended September 30, 2025, was $366.8 million, an increase from $353.6 million in the same period of 2024, reflecting a growth of approximately 3.6%[200]. - For the three months ended September 30, 2025, total operating revenues reached $517.7 million, a 3.5% increase from $502.2 million in the same period of 2024[208]. - For the nine months ended September 30, 2025, the company recognized aggregate Real property - transient revenue of $245.4 million, with $30.5 million in Q1, $81.4 million in Q2, and $133.5 million in Q3[203]. - The total operating revenues for the nine months ended September 30, 2025, were $1,352.3 million, compared to $1,315.3 million in the same period of 2024[208]. - Same Property operating revenues for the three months ended September 30, 2025, increased to $418.5 million, a 7.3% increase from $404.5 million in the same period of 2024[213]. - Real Property NOI for the nine months ended September 30, 2025, was $736.9 million, reflecting an 8.9% increase compared to $701.6 million in the prior year[216]. Revenue and Expenses - Real property revenues (excluding transient) for the three months ended September 30, 2025, were $320.0 million, up 7.5% from $297.6 million in the same period of 2024[213]. - Total Same Property revenues for the nine months ended September 30, 2025, reached $1,109.3 million, a 7.1% increase from $1,065.6 million in 2024[216]. - Same Property operating expenses for the nine months ended September 30, 2025, were $372.4 million, an increase of 2.3% from $364.0 million in 2024[216]. - Total Same Property operating expenses for the three months ended September 30, 2025, were $137.1 million, a slight decrease of 0.4% from $137.6 million in the same period of 2024[216]. Asset Management - The company reported asset impairments of $165.9 million for the three months ended September 30, 2025, compared to no impairments in the same period of 2024[200]. - Asset impairments for the three and nine months ended September 30, 2025, totaled $165.9 million and $356.0 million, respectively, due to impairment charges at 19 properties across the U.S., Canada, and the UK[3]. - The company disposed of 10 MH properties in 2024 for total gross sales proceeds of $349.1 million, impacting the NOI from properties outside the Same Property population[210]. Leadership Changes - Charles D. Young became the new CEO on October 1, 2025, succeeding Gary Shiffman, who retired after 40 years[187]. Capital Allocation and Debt Management - The Safe Harbor Sale generated approximately $5.25 billion in pre-tax cash proceeds, with a gain on sale of $1.4 billion, enhancing the company's financial flexibility[184]. - The company repaid approximately $3.3 billion of debt, including $1.6 billion under its senior credit facility and $956.5 million in unsecured notes[253]. - The company has implemented a balanced, tax-efficient capital allocation plan aimed at optimizing shareholder value through significantly lower leverage and greater financial flexibility[185]. - The company allocated $629.5 million into 1031 exchange escrow accounts for potential future MH and RV acquisitions[252]. - The company has authorized a stock repurchase program of up to $1.0 billion, with $499.7 million remaining available for purchase as of September 30, 2025[274][275]. Cash Flow and Liquidity - Net cash provided by operating activities increased by $91.3 million to $641.3 million for the nine months ended September 30, 2025, compared to $550.0 million for the same period in 2024, reflecting a growth of approximately 16.6%[259]. - Net cash used for investing activities was $127.9 million for the nine months ended September 30, 2025, compared to net cash provided of $22.8 million in the same period of 2024, indicating a significant shift in cash flow[262]. - Cash, cash equivalents, and restricted cash increased by $1.1 billion from $57.1 million as of December 31, 2024, to $1.2 billion as of September 30, 2025[258]. Market Conditions and Future Outlook - The company expects rental rate growth to exceed headline inflation for the remainder of 2025, focusing on expense management to drive organic cash flow growth[250]. - The company anticipates potential challenges in obtaining long-term financing due to market conditions affecting interest rates and capital availability[287]. Foreign Currency and Interest Rates - The company reported a loss of $22.6 million on foreign currency exchanges for the three months ended September 30, 2025, compared to a loss of $4.5 million in the same period of 2024[6]. - A 10% strengthening of the U.S. dollar against foreign currencies would have reduced total shareholder's equity by $103.2 million as of September 30, 2025[302]. Other Income and Gains - Other income for the three and nine months ended September 30, 2025, was $19.1 million and $56.7 million, respectively, primarily due to long-term lease termination gains from repurchasing titles to 27 UK properties[7]. - Income from nonconsolidated affiliates for the three months ended September 30, 2025, increased to $4.3 million, up from $2.1 million in the same period of 2024, attributed to improved performance of the Sungenia joint venture in Australia[8]. - Income from discontinued operations for the nine months ended September 30, 2025, was $1.4 billion, compared to $63.7 million in the same period of 2024, largely due to gains from the Safe Harbor Sale[10].

Financial Data and Key Metrics Changes - The company reported core FFO per share of $2.28, exceeding the high end of guidance, driven by strong same property performance in North America and the UK [5] - North American same property NOI increased by 5.4%, with manufactured housing delivering 10.1% NOI growth and maintaining a solid 98% occupancy [5][6] - Annual RV rental rates for 2026 are being set with an estimated average annual increase of approximately 4% [7] - Total debt stood at $4.3 billion with a weighted average interest rate of 3.4% and a weighted average maturity of 7.4 years [10] - The company raised its core FFO per share expectations for 2025 to a range of $6.59 to $6.67, reflecting continued operational strength [11] Business Line Data and Key Metrics Changes - Manufactured housing same property NOI is now expected to grow by 7.8% at the midpoint, reflecting continued outperformance [11] - RV same property NOI guidance has been raised to a 1% decline at the midpoint, supported by stable third quarter results [12] - In the UK, same property NOI grew by 5.4%, supported by 4.8% revenue growth and 4% expense growth [7][12] Market Data and Key Metrics Changes - Home sale volumes in the UK are lighter compared to recent record volumes, but the company maintains elevated market share [8] - The UK team is strategically shifting the earnings mix toward recurring real property income while driving operational excellence [8] Company Strategy and Development Direction - The new CEO emphasized three key areas of focus: understanding the MH&RV business, supporting the team in delivering on strategy, and assessing opportunities for disciplined long-term growth [4] - The company is committed to operational excellence and resident satisfaction as core values [18] - The strategy includes disciplined capital allocation and a focus on enhancing long-term shareholder value through buybacks and acquisitions [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and the demand for affordable housing, noting a 98% occupancy rate [18] - The company is focused on retention and operational execution as key drivers for long-term growth, particularly in the RV space [35] - Management acknowledged macro challenges but highlighted strong execution and performance in the UK market [42] Other Important Information - The company completed the disposition of nine delayed consent properties for total proceeds of approximately $118 million [9] - The company has been active in acquiring ground leases, with 28 ground leases purchased year to date for approximately $324 million [10] Q&A Session Summary Question: Initial observations and potential improvements - The new CEO highlighted the strength of the team and the quality of communities, focusing on supporting the team to finish strong in 2025 [15][16] Question: Strategy regarding the UK market - The CEO expressed encouragement about the UK team's performance and their focus on growing recurring revenue [20][22] Question: Transaction market and pricing - The company remains disciplined in capital deployment, seeing an increase in transactional activity but focusing on high-quality assets [25][26] Question: Transient RV performance and Canadian customers - Management noted that Canadian customers represent a small percentage of the business and discussed strategies to improve retention and fill gaps [28][29] Question: Annual RV increase strategy - The company is prioritizing retention and operational execution, leading to a tempered 4% RV annual increase for 2026 [34][35] Question: UK home sales environment - Home sales in the UK are lighter than last year, but the overall performance remains strong with a focus on recurring income [41][42] Question: Use of cash and capital allocation - The company plans to maintain a disciplined approach to capital allocation, balancing growth and shareholder value [66]

Core Insights - Sun Communities reported a revenue of $697.2 million for Q3 2025, reflecting a year-over-year decline of 25.8% and an EPS of $2.28, slightly down from $2.31 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $706.57 million, resulting in a surprise of -1.33%, while the EPS exceeded expectations by 4.59% [1] Revenue Breakdown - Real property revenues (excluding transient) were $384.2 million, down 20.9% year-over-year, and above the average estimate of $360.71 million [4] - Real property revenues (transient) reached $133.5 million, a decline of 10% year-over-year, compared to the estimated $122.01 million [4] - Brokerage commissions and other net revenues were $5.8 million, significantly lower than the estimated $11.78 million, marking a 34.1% year-over-year decrease [4] - Interest revenues surged to $17.3 million, exceeding the estimate of $17.09 million, with a remarkable year-over-year increase of 214.6% [4] - Home sales revenues totaled $95.6 million, slightly below the estimated $96.4 million, representing a 9.2% decline year-over-year [4] Stock Performance - Over the past month, shares of Sun Communities have returned -5.1%, contrasting with the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]