Group 1 - The Company declared a quarterly distribution of $1.04 per share of common stock for Q3 2025, payable on October 15, 2025, to shareholders of record on September 30, 2025 [1] - As of June 30, 2025, the Company owned, operated, or had an interest in a portfolio of 501 developed properties, comprising approximately 174,450 developed sites across the United States, Canada, and the United Kingdom [2]

Company Holdings - SUI Group Holdings holds 101795656 SUI tokens [1] - The tokens are valued at approximately $344 million [1] - The company acquired an additional 20 million tokens [1] Financial Status - SUI Group Holdings retains about $58 million in cash for future acquisitions [1] Agreements - The company has an agreement with the Sui Foundation to purchase locked SUI at a discount [1]

Group 1 - The article emphasizes that manufactured housing (MH) is considered one of the best real estate asset classes for long-term investment due to the stronger tenant relationships stemming from ownership of the underlying property [2] Group 2 - The focus of iREIT+HOYA Capital is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]

Group 1: Company Overview - Sun Communities is a leading player in mobile home parks and RV resorts, expected to benefit from the growing older population, providing a lower-cost living option [3] - Agree Realty focuses on single-tenant net-lease retail properties, with a portfolio of approximately 2,400 properties, indicating significant room for growth through acquisitions [5] Group 2: Dividend Comparison - Agree Realty offers a higher dividend yield of 4.2% compared to Sun Communities' yield of just under 3.4%, making it more attractive for income-focused investors [6] - Sun Communities has increased its dividend annually for nine consecutive years, while Agree Realty has a longer history of dividend increases since 2012, despite a switch to monthly payments [7] - Over the past decade, Sun Communities' dividend has grown at an annualized rate of roughly 4%, while Agree's has grown at approximately 5%, indicating a stronger growth rate for Agree [8] Group 3: Future Growth Potential - The net-lease retail property niche presents a larger opportunity set compared to the mobile home park sector, as it is generally easier to build retail properties than to get new mobile home parks approved [9] - Agree Realty's growth strategy is primarily driven by acquisitions, positioning it for robust long-term growth compared to Sun Communities [10]

PART I – FINANCIAL INFORMATION [Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The unaudited financial statements reflect a strategic shift following the sale of Safe Harbor Marinas, now classified as a discontinued operation [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects a significant cash influx and debt reduction following the reclassification of marina assets for sale Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$13,362.1** | **$16,549.4** | **($3,187.3)** | | Cash, cash equivalents and restricted cash | $1,463.1 | $57.1 | +$1,406.0 | | Assets held for sale and discontinued operations, net | $121.1 | $4,461.7 | ($4,340.6) | | **Total Liabilities** | **$5,570.0** | **$9,096.8** | **($3,526.8)** | | Unsecured debt | $1,785.3 | $4,089.4 | ($2,304.1) | | Mortgage loans payable | $2,451.6 | $3,212.2 | ($760.6) | | **Total Shareholders' Equity** | **$7,534.2** | **$7,192.8** | **+$341.4** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) A net loss from continuing operations was offset by substantial income from the discontinued Safe Harbor Marinas sale, resulting in high net income Q2 2025 vs. Q2 2024 Statement of Operations (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $623.5 | $596.3 | | Asset impairments | $166.1 | $10.6 | | Loss on extinguishment of debt | $102.4 | $— | | Net (Loss) / Income from Continuing Operations | ($92.2) | $32.7 | | Income from discontinued operations, net | $1,422.5 | $25.7 | | **Net Income** | **$1,330.3** | **$58.4** | | **Diluted EPS** | **$10.02** | **$0.42** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Investing activities generated a significant inflow from the Safe Harbor sale, funding large-scale debt repayments and shareholder returns Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided By Operating Activities** | **$499.9** | **$553.8** | | *Continuing Operations* | *$409.6* | *$404.2* | | *Discontinued Operations* | *$90.3* | *$149.6* | | **Net Cash Provided By / (Used For) Investing Activities** | **$5,316.5** | **($319.9)** | | *Continuing Operations* | *($44.8)* | *($187.0)* | | *Discontinued Operations* | *$5,361.3* | *($132.9)* | | **Net Cash Used For Financing Activities** | **($4,415.2)** | **($172.1)** | | *Continuing Operations* | *$1,039.1* | *($163.9)* | | *Discontinued Operations* | *($5,454.3)* | *($8.2)* | | **Net change in cash** | **$1,403.3** | **$61.5** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the ~$5.65 billion Safe Harbor sale, subsequent debt reduction, capital returns, and significant asset impairments - The company agreed to sell Safe Harbor Marinas for **~$5.65 billion**, with an initial closing generating **~$5.25 billion** in pre-tax cash and a **$1.4 billion gain**; the business is now a discontinued operation[28](index=28&type=chunk)[32](index=32&type=chunk) - In Q2 2025, proceeds were used to repay **~$3.3 billion in debt**, including senior notes and mortgage loans, resulting in a **$102.4 million loss on debt extinguishment**[66](index=66&type=chunk)[70](index=70&type=chunk)[75](index=75&type=chunk) - The Board authorized a **$1.0 billion stock repurchase program**, buying back **1.6 million shares for $202.8 million**, and paid a **$4.00 per share special dividend** totaling $521.3 million[85](index=85&type=chunk)[86](index=86&type=chunk)[96](index=96&type=chunk) - Asset impairment charges of **$166.1 million** were recorded in Q2 2025, including **$132.7 million** for UK properties and **$32.2 million** for US/Canada RV properties due to strategic changes[151](index=151&type=chunk)[152](index=152&type=chunk) - Subsequent to the quarter, the company repurchased an additional **$97.4 million** of its stock and appointed Charles D. Young as the new CEO[179](index=179&type=chunk)[180](index=180&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its strategic pivot post-divestiture, focusing on debt reduction, shareholder returns, and operational performance [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Same Property NOI grew in the MH and UK segments but declined in the RV segment, while North American home sales and Core FFO per share decreased Same Property Real Property NOI Growth (Q2 2025 vs. Q2 2024) | Segment | NOI Change | Key Drivers | | :--- | :--- | :--- | | **North America MH** | **+7.7%** | 6.9% revenue growth, driven by a 5.3% increase in monthly base rent. | | **North America RV** | **-1.1%** | 6.7% decrease in transient revenue. | | **UK** | **+10.2%** | 9.5% revenue growth, driven by an 18.3% increase in transient revenue and a 5.3% rent increase. | FFO & Core FFO per Share (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO per Share | $1.36 | $1.79 | | Core FFO per Share | $1.76 | $1.86 | - North American home sales NOI **decreased by 48.5%** in Q2 2025, driven by a **23.0% decrease** in homes sold and a **6.8% decrease** in average selling price[222](index=222&type=chunk)[223](index=223&type=chunk) - UK home sales NOI **decreased by 5.7%** in Q2 2025, as a **7.2% decrease** in NOI margin offset volume and price increases[222](index=222&type=chunk)[225](index=225&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was significantly enhanced by the Safe Harbor sale proceeds, enabling substantial debt repayment, shareholder returns, and strategic reinvestment - The initial closing of the Safe Harbor Sale generated **$5.25 billion in pre-tax cash**, significantly improving the company's leverage and financial flexibility[248](index=248&type=chunk) - A capital allocation plan used proceeds for **~$3.3 billion in debt repayment**, a **$521.3 million special dividend**, a **$1.0 billion stock buyback program**, and strategic reinvestments[251](index=251&type=chunk)[253](index=253&type=chunk) - As of June 30, 2025, the company holds **$889.8 million in unrestricted cash**, has **$3.05 billion available** on its credit facility, and **100% of its debt is fixed-rate**[286](index=286&type=chunk)[271](index=271&type=chunk) Stock Repurchase Activity (Q2 2025) | Metric | Value | | :--- | :--- | | Shares Repurchased | 1.6 million | | Total Cost | $202.8 million | | Remaining Authorization | $797.2 million | [Quantitative and Qualitative Disclosures about Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk is now primarily from foreign currency and capital markets, as interest rate risk is minimal with 100% fixed-rate debt - Interest rate risk has been significantly mitigated, as **100% of outstanding debt carried a fixed interest rate** as of June 30, 2025[298](index=298&type=chunk) - The company is exposed to foreign currency risk; a hypothetical **10% strengthening of the U.S. dollar** would have reduced total shareholder's equity by **$101.9 million**[300](index=300&type=chunk) - Capital market risk remains as the company, a REIT, relies on debt and equity markets to finance its business and growth[301](index=301&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective due to a previously identified material weakness in its risk assessment process - The principal executive and financial officers concluded that **disclosure controls and procedures were not effective** as of June 30, 2025[304](index=304&type=chunk) - The ineffectiveness is due to a **material weakness** identified as of December 31, 2024, related to an ineffective risk assessment process[306](index=306&type=chunk) - A remediation plan is underway but has not operated long enough to be deemed effective[307](index=307&type=chunk)[308](index=308&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in a class action lawsuit alleging federal antitrust violations related to manufactured home lot rents - The company is a defendant in a consolidated class action complaint, In re Manufactured Home Lot Rents Antitrust Litigation, alleging **violations of federal antitrust laws**[156](index=156&type=chunk)[311](index=311&type=chunk) - Plaintiffs allege the sharing of information to maintain **artificially high site rents**; the company believes the allegations are without merit[156](index=156&type=chunk)[157](index=157&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report and Q1 2025 Quarterly Report - There have been **no material changes** to the risk factors described in the 2024 Annual Report and the Q1 2025 Form 10-Q[313](index=313&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company converted OP units into common stock and repurchased over 1.6 million shares for $202.8 million under its new buyback program - During Q2 2025, various series of OP units were converted into a total of **64,723 shares of common stock** in private placements[316](index=316&type=chunk) Common Stock Repurchases (Q2 2025) | Period | Shares Purchased | Average Price Paid | Program | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | May 2025 | 373,733 | N/A | Publicly Announced | $954.7M | | June 2025 | 1,261,334 | N/A | Publicly Announced | $797.2M | | **Total Q2** | **1,635,067** | **$114.69 (blended)** | **Publicly Announced** | **$797.2M** | [Other Information](index=74&type=section&id=Item%205.%20Other%20Information) New legislation was signed into law that permanently extends certain favorable tax provisions for REITs and their investors - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law on July 4, 2025, making **significant changes to U.S. federal income tax laws**[320](index=320&type=chunk) - Key changes include the **permanent extension of the 20% deduction for 'qualified REIT dividends'** and an increased asset test limit for taxable REIT subsidiaries[320](index=320&type=chunk) [Exhibits and Signatures](index=75&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required officer certifications and XBRL data files - Lists all exhibits filed with the report, including **officer certifications (31.1, 31.2, 32.1) and XBRL data files**[322](index=322&type=chunk)

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.76 for the quarter, exceeding the high end of guidance [7][15] - Total North American same property NOI grew 4.9% in the second quarter, driven primarily by the manufactured housing portfolio [7][11] - The company paid down approximately $3.3 billion of debt, significantly improving its balance sheet position [4][16] Business Line Data and Key Metrics Changes - Same property manufactured housing NOI increased 7.7%, with occupancy up 60 basis points to 97.6% [12][11] - Same property RV NOI declined 1.1%, with a revenue increase of 0.9% offset by a 3.1% expense increase [12] - In the UK, same property NOI increased 10.2%, with revenue up 9.5% driven by strong demand [13] Market Data and Key Metrics Changes - The company identified potential acquisitions totaling approximately $565 million from the proceeds of the Safe Harbor transaction [17] - The UK portfolio's unmatched quality and operating team allowed for commanding market share and continued momentum [13] Company Strategy and Development Direction - The company completed the sale of Safe Harbor Marinas, repositioning itself as a pure play owner and operator of manufactured housing and RV communities [4] - The company is focusing on acquiring manufactured housing properties in strong markets with attractive supply-demand dynamics [5] - The company raised its full year 2025 guidance for FFO per share to a range of $6.51 to $6.67, reflecting second quarter outperformance [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth and value creation [9][10] - The company is focused on driving top line growth while maintaining expense efficiency, achieving some of the best organic growth seen in years [14] - Management highlighted the importance of disciplined execution and the strength of the team in achieving operational results [45] Other Important Information - The company received credit rating upgrades from S&P Global and Moody's, citing deleveraging progress and balance sheet strength [17] - Charles Young has been appointed as the next CEO, effective October 1, bringing over 25 years of experience in real estate operations [8][9] Q&A Session Summary Question: Expectations about 1031 acquisition volume and tax considerations - Management indicated no expected adverse tax impact from releasing funds out of the 1031 exchange accounts and is actively evaluating strategies to maximize value [27][28] Question: Trends in transient RV business - Management noted that transient RV revenue headwinds are mitigated by converting transient sites to annual sites, maintaining solid revenue and margins [30][31] Question: Update on expense savings from restructuring - Management reported savings exceeding $17 million in the first half, focusing on payroll, utilities, and procurement platform standardization [44] Question: Economics of UK ground lease purchases - The transaction creates flexibility by converting leasehold interest into freehold ownership, eliminating future rent escalations [38] Question: Future potential ground lease termination opportunities - There are about 10 additional properties still subject to ground leases in the UK, presenting small future opportunities [83]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.76 for the quarter, exceeding the high end of guidance [6][15] - Total North American same property NOI grew 4.9% in the second quarter, driven primarily by the manufactured housing portfolio [6][11] - The company paid down approximately $3.3 billion of debt, significantly improving its balance sheet position [4][15] Business Line Data and Key Metrics Changes - Same property manufactured housing NOI increased 7.7%, with occupancy up 60 basis points to 97.6% [12] - Same property RV NOI declined 1.1%, driven by a 0.9% revenue increase offset by a 3.1% expense increase [12] - In the UK, same property NOI increased 10.2%, with revenue up 9.5% [13] Market Data and Key Metrics Changes - The UK portfolio showed strong demand, with expenses up 8.8% due to a national minimum wage increase, partially mitigated by cost savings initiatives [13] - The company is evaluating acquisition opportunities in strong markets with attractive supply-demand dynamics [5][20] Company Strategy and Development Direction - The company completed the sale of Safe Harbor Marinas, repositioning itself as a pure play owner and operator of manufactured housing and RV communities [4] - The company is focusing on driving top-line growth while maintaining expense efficiency, with a disciplined approach to managing operating expenses [11][14] - The appointment of Charles Young as the new CEO is expected to guide the company through its next phase of growth [7][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong foundation and future growth potential, emphasizing the importance of operational excellence and team development [7][22] - The company raised its full-year 2025 guidance for FFO per share to a range of $6.51 to $6.67, reflecting second-quarter outperformance [19][20] Other Important Information - The company returned over $830 million to shareholders through special cash distributions and share repurchases [5][18] - The company received two credit rating upgrades during the quarter, reflecting its deleveraging progress and balance sheet strength [19] Q&A Session Summary Question: Expectations about 1031 acquisition volume and tax considerations - Management indicated no expected adverse tax impact from releasing funds out of the 1031 exchange accounts and identified approximately $565 million of potential acquisitions [25][26] Question: Trends in transient RV business - Management noted that transient RV revenue headwinds are mitigated by success in converting transient sites to annual sites, and they continue to flex operating expenses [28][30] Question: Annual membership renewals - Renewals are spread throughout the year, with peaks in early and summer seasons depending on the location [32] Question: Outlook for MH home sales - The company expects stability in long-term cash flows due to high occupancy and low resident turnover, similar to the first half of the year [34] Question: Economics of UK ground lease purchases - The acquisition of ground leases creates financial flexibility and eliminates future rent escalations, improving long-term economics [37] Question: Share repurchase program attractiveness - The share buyback program is one of several capital allocation tools, alongside strategic reinvestment and acquisitions [77] Question: Future development and expansion opportunities - The company is not pursuing new greenfield projects but is evaluating a few expansion projects that meet return hurdles [80][81]

Core Insights - Sun Communities reported a revenue of $623.5 million for the quarter ended June 2025, reflecting a decrease of 27.8% year-over-year, while EPS was $1.76 compared to $0.42 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $618.9 million by 0.74%, and the EPS also surpassed the consensus estimate of $1.67 by 5.39% [1] Revenue Breakdown - Real property revenues (excluding transient) were $368.8 million, exceeding the average estimate of $350.97 million, but down 20.2% year-over-year [4] - Real property revenues (transient) reached $81.4 million, above the average estimate of $76.22 million, with an 8.6% decline compared to the previous year [4] - Brokerage commissions and other net revenues were $14.6 million, surpassing the average estimate of $10.5 million, marking a year-over-year increase of 30.4% [4] - Service, retail, dining, and entertainment revenues totaled $54.8 million, exceeding the average estimate of $43.69 million, but showing a significant decline of 70.9% year-over-year [4] - Interest revenues were $16.5 million, below the average estimate of $19.31 million, yet reflecting a substantial increase of 211.3% year-over-year [4] - Home sales revenues amounted to $100.1 million, exceeding the average estimate of $94.33 million, with a 6.9% decline compared to the year-ago quarter [4] Stock Performance - Over the past month, shares of Sun Communities have returned -6.3%, contrasting with the Zacks S&P 500 composite's increase of 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - For the quarter ended June 30, 2025, net income attributable to common shareholders was $1.3 billion, or $10.02 per diluted share, compared to $52.1 million, or $0.42 per diluted share for the same period in 2024 [7] - Core Funds from Operations (Core FFO) for the quarter was $1.76 per share, down from $1.86 in the same period of 2024 [7] - North America Same Property Net Operating Income (NOI) for manufactured housing (MH) and recreational vehicle (RV) increased by 4.9% year-over-year [7][8] Operational Highlights - North America Same Property adjusted blended occupancy for MH and RV increased by 150 basis points to 99.0% at June 30, 2025, from 97.5% at June 30, 2024 [9] - The number of MH and annual RV revenue-producing sites increased by approximately 460 sites during the quarter [8] - UK Same Property NOI increased by 10.2% for the quarter ended June 30, 2025, compared to the same period in 2024 [7] Capital Management - The company returned over $830 million to shareholders, including special cash distributions and share repurchases [7] - A one-time special cash distribution of $4.00 per common share was paid, totaling $521.3 million [14] - The company repurchased approximately 1.6 million shares at an average cost of $124.03 per share for a total of $202.8 million during the quarter [15] Strategic Developments - The company completed the sale of Safe Harbor Marinas, generating approximately $5.25 billion in pre-tax cash proceeds and a book gain of $1.4 billion [12] - The company is transitioning to a pure-play owner and operator of manufactured housing and RV communities, enhancing financial flexibility and shareholder value [5] - Charles D. Young has been appointed as the new CEO, effective October 1, 2025, succeeding Gary A. Shiffman [17] Guidance Updates - The company raised its full-year 2025 Core FFO per share guidance to a range of $6.51 to $6.67 [7] - North American Same Property NOI growth guidance has been increased to a range of 3.9% to 5.6% [7] - UK Same Property NOI growth guidance has been updated to a range of 1.3% to 3.3% [7]

[Earnings Press Release and Guidance](index=5&type=section&id=Earnings%20Press%20Release%20and%20Guidance) [Second Quarter 2025 Results and Highlights](index=5&type=section&id=Second%20Quarter%202025%20Results%20and%20Highlights) Sun Communities reported strong Q2 2025 results, driven by the Safe Harbor Marinas sale, balance sheet strengthening, and operational improvements Financial Metric | Financial Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :--- | :--- | :--- | | Net Income Attributable to Common Shareholders | $1.3 billion | $52.1 million | | Diluted EPS | $10.02 | $0.42 | | Core FFO per Share | $1.76 | $1.86 | - Completed the sale of Safe Harbor Marinas, generating approximately **$5.25 billion** in pre-tax cash proceeds and a book gain of **$1.4 billion**. This transaction repositions Sun as a pure-play owner of MH and RV communities[15](index=15&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - North America Same Property NOI for MH and RV increased by **4.9% YoY** for the quarter, and adjusted blended occupancy for MH and RV rose by **150 basis points** to **99.0%**[10](index=10&type=chunk)[19](index=19&type=chunk) - Returned over **$830 million** to shareholders, which includes a **$4.00 per share** special cash distribution (**$521.3 million** total) and significant share repurchases[10](index=10&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Appointed **Charles D. Young** as the new CEO, effective **October 1, 2025**, succeeding Gary Shiffman who is retiring after 40 years[28](index=28&type=chunk) - As of June 30, 2025, the company's Net Debt to trailing twelve-month Recurring EBITDA ratio was significantly reduced to **2.9 times**[22](index=22&type=chunk) [2025 Guidance](index=10&type=section&id=2025%20GUIDANCE) The company raised its full-year 2025 Core FFO per share and Same Property NOI growth guidance for both North America and the UK Guidance Metric | Guidance Metric | Q3 2025 Range (per share) | Full Year 2025 Range (per share) | | :--- | :--- | :--- | | Diluted EPS | $1.21 - $1.31 | $11.34 - $11.50 | | Core FFO per Share | $2.13 - $2.23 | $6.51 - $6.67 | Same Property NOI Growth Guidance (FY 2025) | Same Property NOI Growth Guidance (FY 2025) | Prior Range (%) | Updated Range (%) | | :--- | :--- | :--- | | North America (MH and RV) | 3.5% - 5.2% | 3.9% - 5.6% | | UK | 0.9% - 2.9% | 1.3% - 3.3% | - Guidance for Q3 2025 assumes North America Same Property NOI growth of **2.4% - 5.6%** and UK Same Property NOI growth of **0.1% - 3.1%**[31](index=31&type=chunk) [Company and Portfolio Overview](index=14&type=section&id=Overview) [Company Overview and Investor Information](index=14&type=section&id=Company%20Overview%20and%20Investor%20Information) Sun Communities is a publicly traded REIT with a portfolio of 501 MH, RV, and UK properties, holding stable investment-grade credit ratings - As of June 30, 2025, the portfolio consists of **501 developed properties** with approximately **174,450 sites** across the U.S., Canada, and the U.K[44](index=44&type=chunk) Rating Agency | Rating Agency | Rating | Outlook | | :--- | :--- | :--- | | Moody's | Baa2 | Stable | | S&P | BBB+ | Stable | [Financial and Operating Highlights](index=15&type=section&id=Financial%20and%20Operating%20Highlights) Q2 2025 highlights include a diluted EPS of $10.02, Core FFO of $1.76 per share, improved Net Debt to Recurring EBITDA to 2.9x, and strong blended occupancy Metric (Q2 2025) | Metric (Q2 2025) | Value | YoY Change/Comparison | | :--- | :--- | :--- | | Diluted EPS | $10.02 | vs. $0.42 in Q2 2024 | | Core FFO per Share | $1.76 | vs. $1.86 in Q2 2024 | | Real Property NOI | $263.6M | vs. $253.6M in Q2 2024 | | Net Debt / TTM Recurring EBITDA | 2.9x | vs. 6.2x in Q2 2024 | | Blended MH & Annual RV Occupancy | 98.1% | vs. 97.5% in Q2 2024 | [Portfolio Overview](index=16&type=section&id=Portfolio%20Overview) As of June 30, 2025, the company's portfolio includes 501 properties with 174,450 sites across North America and the UK, showing strong regional occupancy rates Region | Region | Properties | Total Sites | Occupancy (Annual) (%) | | :--- | :--- | :--- | :--- | | North America | 448 | 152,920 | 98.1% | | United Kingdom | 53 | 21,530 | 90.3% | | **Total Portfolio** | **501** | **174,450** | | - The portfolio has significant geographic concentration in **Florida (124 properties, 45,250 sites)** and **Michigan (85 properties, 33,540 sites)**[49](index=49&type=chunk) [Financial Statements and Reconciliations](index=17&type=section&id=Financial%20Statements%20and%20Reconciliations%20to%20Non-GAAP%20Financial%20Measures) [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) The June 30, 2025, balance sheet reflects the Safe Harbor Marinas sale, significantly reducing total assets and liabilities while increasing cash Balance Sheet Item | Balance Sheet Item | June 30, 2025 (USD millions) | Dec 31, 2024 (USD millions) | | :--- | :--- | :--- | | Total Assets | $13,362.1 | $16,549.4 | | Cash, cash equivalents and restricted cash | $1,463.1 | $57.1 | | Assets held for sale and discontinued operations, net | $121.1 | $4,461.7 | | Total Liabilities | $5,570.0 | $9,096.8 | | Total debt | $4,283.5 | $7,352.8 | | Total Shareholders' Equity | $7,534.2 | $7,192.8 | [Consolidated Statements of Operations](index=18&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 saw a net loss from continuing operations due to impairments and debt extinguishment, but a significant gain from discontinued operations resulted in a total net income of $1.27 billion Statement of Operations | Statement of Operations | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Total Revenues | $623.5 | $596.3 | | Net (Loss) / Income from Continuing Operations | $(92.2) | $32.7 | | Income from discontinued operations, net | $1,422.5 | $25.7 | | Net Income Attributable to SUI Common Shareholders | $1,273.6 | $52.1 | - Significant expenses in Q2 2025 included a **$166.1 million** asset impairment charge and a **$102.4 million** loss on extinguishment of debt[51](index=51&type=chunk) [Reconciliation to Core FFO](index=20&type=section&id=Reconciliation%20of%20Net%20Income%20Attributable%20to%20SUI%20Common%20Shareholders%20to%20Core%20FFO) Q2 2025 FFO decreased to $1.36 per share, and Core FFO was $1.76 per share, with key adjustments including asset impairments and Safe Harbor sale-related items Per Share Data | Per Share Data | Q2 2025 (per share) | Q2 2024 (per share) | | :--- | :--- | :--- | | FFO per Share | $1.36 | $1.79 | | Core FFO per Share | $1.76 | $1.86 | - Major adjustments from Net Income to FFO included a **$1.445 billion** gain on disposition from discontinued operations and a **$166.1 million** asset impairment charge[52](index=52&type=chunk) - Key adjustments from FFO to Core FFO included a **$102.4 million** loss on extinguishment of debt and **$48.4 million** in transaction costs from discontinued operations (Safe Harbor Sale)[52](index=52&type=chunk) [Reconciliation to NOI](index=21&type=section&id=Reconciliation%20of%20Net%20Income%20Attributable%20to%20SUI%20Common%20Shareholders%20to%20NOI) Q2 2025 total Net Operating Income (NOI) slightly increased to $295.5 million, primarily from real property operations, home sales, and ancillary services NOI Breakdown | NOI Breakdown | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Real property NOI | $263.6 | $253.6 | | Home sales NOI | $23.3 | $30.7 | | Ancillary NOI | $8.6 | $8.4 | | **Total NOI** | **$295.5** | **$292.7** | [Reconciliation to Recurring EBITDA](index=22&type=section&id=Reconciliation%20of%20Net%20Income%20Attributable%20to%20SUI%20Common%20Shareholders%20to%20Recurring%20EBITDA) Q2 2025 Recurring EBITDA was $291.3 million, with adjustments from Net Income including property dispositions and Safe Harbor sale transaction costs EBITDA Metric | EBITDA Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Net Income Attributable to SUI Common Shareholders | $1,273.6 | $52.1 | | EBITDAre | $250.4 | $313.8 | | Recurring EBITDA | $291.3 | $335.9 | [Supplemental Disclosure: Real Property Operations](index=23&type=section&id=Supplemental%20Disclosure) [Total Portfolio](index=23&type=section&id=Real%20Property%20Operations%20-%20Total%20Portfolio) Q2 2025 total portfolio Real Property NOI increased to $263.6 million, primarily from MH and RV segments, with a slight decrease in properties due to dispositions Real Property NOI | Real Property NOI | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | MH | $168.6 | $160.7 | | RV | $72.9 | $74.2 | | UK | $22.1 | $18.7 | | **Total** | **$263.6** | **$253.6** | - As of June 30, 2025, the total portfolio had **174,450 sites** across **501 properties**, compared to 181,760 sites across 529 properties in the prior year[55](index=55&type=chunk) [North America Same Property Portfolio](index=24&type=section&id=Real%20Property%20Operations%20-%20North%20America%20Same%20Property%20Portfolio) North America Same Property portfolio showed strong Q2 2025 results with a 4.9% total NOI increase, driven by MH growth and improved blended occupancy North America Same Property (Q2 2025 vs Q2 2024) | North America Same Property (Q2 2025 vs Q2 2024) | Revenue Change (%) | Expense Change (%) | NOI Change (%) | | :--- | :--- | :--- | :--- | | MH | +6.9% | +4.7% | +7.7% | | RV | +0.9% | +3.1% | -1.1% | | **Total** | **+4.6%** | **+3.9%** | **+4.9%** | - Same Property adjusted blended occupancy for MH and RV increased by **150 basis points** to **99.0%** at June 30, 2025, from 97.5% at June 30, 2024[59](index=59&type=chunk) - Average monthly base rent per site increased by **5.3%** for MH sites (to **$730**) and **5.0%** for annual RV sites (to **$677**)[58](index=58&type=chunk) [UK Same Property Portfolio](index=26&type=section&id=Real%20Property%20Operations%20-%20UK%20Same%20Property%20Portfolio) The UK Same Property portfolio showed strong Q2 2025 performance with a 10.2% NOI increase on a constant currency basis, driven by revenue growth and improved occupancy UK Same Property (Q2 2025 vs Q2 2024) | UK Same Property (Q2 2025 vs Q2 2024) | % Change (Constant Currency) | | :--- | :--- | | Total Operating Revenues | +9.5% | | Same Property Operating Expenses | +8.8% | | **Real Property NOI** | **+10.2%** | - Average monthly base rent per site increased by **5.3%** to **$584**[60](index=60&type=chunk) [Other Operating Information](index=27&type=section&id=Other%20Operating%20Information) [Home Sales Summary](index=27&type=section&id=Home%20Sales%20Summary) Q2 2025 total home sales NOI decreased by 24.1% to $23.3 million, primarily due to a significant decline in North American sales Home Sales (Q2 2025) | Home Sales (Q2 2025) | North America | UK | Total | | :--- | :--- | :--- | :--- | | Units Sold | 480 (-23.0% YoY) | 805 (+2.3% YoY) | 1,285 (-8.9% YoY) | | Average Selling Price | $87,083 (-6.8% YoY) | $72,422 (+15.6% YoY) | - | | NOI (in millions) | $6.8 (-48.5% YoY) | $16.5 (-5.7% YoY) | $23.3 (-24.1% YoY) | [Operating Statistics for MH and Annual RVs](index=27&type=section&id=Operating%20Statistics%20for%20MH%20and%20Annual%20RVs) As of June 30, 2025, the resident move-out rate for MH and RVs slightly decreased, resulting in a net gain of 474 leased sites Metric | Metric | YTD June 30, 2025 | Full Year 2024 | | :--- | :--- | :--- | | Resident Move-outs (% of Total Sites) | 4.2% | 4.3% | | Leased Sites, Net Gain | 474 | 3,209 | [Investment Activity](index=28&type=section&id=Investment%20Activity) [Acquisitions and Dispositions](index=28&type=section&id=Acquisitions%20and%20Dispositions) Year-to-date disposition activity, primarily the Safe Harbor Marinas sale, generated over $5.5 billion in proceeds from various property types Disposition | Disposition | Properties | Proceeds (USD millions) | Month | | :--- | :--- | :--- | :--- | | Safe Harbor Marinas - Initial Closing | 123 | $5,250.0 | April | | Safe Harbor Marinas - Delayed Consent | 6 | $136.7 | May/June | | RV Portfolio | 2 | $92.9 | January | | MH Portfolio | 3 | $27.8 | March | | **Total Dispositions to Date** | **135** | **$5,510.9** | | [Capital Expenditures and Investments](index=29&type=section&id=Capital%20Expenditures%20and%20Investments) For the six months ended June 30, 2025, the company invested $113.0 million in capital expenditures, primarily in non-recurring expansion and development projects Capital Expenditures (Six Months Ended June 30, 2025) | Capital Expenditures (Six Months Ended June 30, 2025) | Amount (USD millions) | | :--- | :--- | | Recurring Capital Expenditures | $27.8 | | Non-Recurring Capital Expenditures | $85.2 | |     - Lot Modifications | $18.2 | |     - Growth Projects | $7.2 | |     - Acquisitions | $9.6 | |     - Expansion and Development | $49.7 | | **Total** | **$113.0** | [Capitalization](index=30&type=section&id=Capitalization) [Capitalization Overview](index=30&type=section&id=Capitalization%20Overview) As of June 30, 2025, Sun Communities reported a total market capitalization of $16.6 billion, $4.3 billion in debt, and maintained stable investment-grade credit ratings Capitalization Metric | Capitalization Metric | As of June 30, 2025 (USD millions) | | :--- | :--- | | Diluted shares outstanding and market capitalization | $16,581.2 | | Total debt, per consolidated balance sheet | $4,283.5 | | Total capitalization | $20,864.7 | | Enterprise Value | $19,970.8 | [Summary of Outstanding Debt](index=31&type=section&id=Summary%20of%20Outstanding%20Debt) As of June 30, 2025, total debt was $4.3 billion at a 3.38% weighted average interest rate, comprising secured and unsecured notes Debt Type | Debt Type | Debt Outstanding (USD millions) | Weighted Average Interest Rate (%) | | :--- | :--- | :--- | | Secured Debt | $2,498.2 | 3.73% | | Unsecured Debt | $1,785.3 | 2.90% | | **Total Debt** | **$4,283.5** | **3.38%** | [Debt Maturities](index=32&type=section&id=Debt%20Maturities) The company maintains a well-staggered debt maturity profile with minimal near-term obligations and the largest portion maturing after 2029 Year | Year | Total Debt Maturing (USD millions) | | :--- | :--- | | 2025 | $24.5 | | 2026 | $534.9 | | 2027 | $37.4 | | 2028 | $667.2 | | 2029 | $351.8 | | Thereafter | $2,689.5 | [Debt Analysis](index=33&type=section&id=Debt%20Analysis) As of June 30, 2025, the company's credit metrics significantly improved, with a Net Debt to TTM Recurring EBITDA ratio of 2.9x, ensuring compliance with all debt covenants Select Credit Ratios | Select Credit Ratios | As of June 30, 2025 | | :--- | :--- | | Net Debt / TTM Recurring EBITDA | 2.9x | | Net Debt / Enterprise Value | 17.0% | | Unencumbered Assets / Total Assets | 80.7% | | TTM Recurring EBITDA / Interest | 3.8x | - The company is in compliance with all debt covenants, with its total debt to total assets ratio at **26.0%** versus a requirement of ≤60.0%, and its debt service coverage ratio at **7.48x** versus a requirement of ≥1.50x[71](index=71&type=chunk) [Definitions and Notes](index=34&type=section&id=Definitions%20and%20Notes) [Definitions and Notes](index=34&type=section&id=Definitions%20and%20Notes_child) This section defines non-GAAP financial measures like FFO, Core FFO, NOI, and EBITDAre, and provides explanatory notes on key accounting treatments and financial statement line items - The sale of Safe Harbor Marinas is treated as a strategic shift, with its results presented as discontinued operations. The initial closing generated a gain on sale of **$1.4 billion**[74](index=74&type=chunk)[75](index=75&type=chunk) - Asset impairments of **$166.1 million** in Q2 2025 were recorded, consisting of **$132.7 million** for three UK development properties and **$32.2 million** for three US/Canada RV properties due to changes in strategic plans[73](index=73&type=chunk) Other adjustments, net - continuing operations (Q2 2025) | Other adjustments, net - continuing operations (Q2 2025) | Amount (USD millions) | | :--- | :--- | | Deferred tax benefit | $(32.1) | | Long term lease termination gains | $(25.7) | | Cash flow hedge gains from debt extinguishments | $(7.4) | | **Total** | **$(60.8)** |