Core Viewpoint - Sun Communities, Inc. has appointed Charles D. Young as the new CEO, effective October 1, 2025, succeeding Gary A. Shiffman, who will transition to Non-Executive Chairman of the Board after 40 years of leadership [1][2][5]. Company Leadership Transition - Charles D. Young brings over 25 years of experience in real estate operations, development, and investment management, having served as President of Invitation Homes Inc. since March 2023 [3][4]. - Gary A. Shiffman has led Sun Communities for 40 years, during which the company grew from a market capitalization of approximately $100 million at its IPO in 1993 to over $16.5 billion [6]. Company Growth and Performance - Under Shiffman's leadership, Sun Communities expanded its portfolio from 31 properties to over 500 manufactured housing and recreational vehicle communities across North America and the UK [6]. - The company achieved a total return of over 4,100% from its IPO through June 30, 2025, including over 150% total return for the ten years ending June 30, 2025 [6]. - Sun Communities has maintained an average annual NOI growth of 5.3% for the past 25 years without a negative year-over-year Same Property NOI quarterly performance [6]. Company Overview - As of March 31, 2025, Sun Communities owned, operated, or had an interest in a portfolio of 502 developed properties, comprising approximately 174,850 developed sites in the United States, Canada, and the United Kingdom [7].

Core Viewpoint - Sun Communities, Inc. will release its second quarter 2025 operating results on July 30, 2025, and will host a conference call to discuss these results on July 31, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for July 31, 2025, at 2:00 P.M. ET [1]. - Participants can dial in at least 5 minutes prior to the start time, with U.S. and Canada numbers being (877) 407-9039 and international number (201) 689-8470 [2]. - A replay of the conference call will be available until August 14, 2025, with U.S. and Canada replay number (844) 512-2921 and international number (412) 317-6671 [3]. Group 2: Company Overview - As of March 31, 2025, Sun Communities, Inc. owned, operated, or had an interest in a portfolio of 502 developed properties, comprising approximately 174,850 developed sites across the United States, Canada, and the United Kingdom [4].

Financial Performance & Growth - Core FFO per Share increased by 12.9% for the year ended December 31, 2022, reaching $7.35[19] - The company anticipates total same property NOI growth of 4.9% - 5.9% and Core FFO per Share of $7.22 - $7.42 for 2023[19] - Sun has generated greater FFO per share growth than Multifamily peers, with 8.6% Core FFO per share growth (10-year CAGR) and a 4.9% Core FFO per share yield[80] Revenue & NOI Composition - 53% of Real Property NOI is derived from MH (Manufactured Housing)[8] - 85% of NOI (Net Operating Income) is derived from Rental Income[10] - Average Rental Rate Increases are projected at 7.8% for North America and 7.5% for the UK in 2023[9] Portfolio & Occupancy - The total MH portfolio has a 95.9% occupancy rate[35] - Sun's MH communities provide 25% more space than multi-family and single-family rentals at ~51% less cost per square foot[35,81] - Sun is the largest publicly traded operator of MH, RV and Marinas, with ~179,700 MH and RV sites and ~48,000 wet slips and dry storage spaces[22] Expansion & Development - The company delivered over 2,000 expansion and greenfield development sites in 2022 and plans to invest ~$200 million in these activities in 2023[19] - Sun's development platform has delivered ~13,800 MH and RV expansion and development sites from 2012 – 2022[35] Marina Operations - 81% of Marinas are in coastal markets[30] - 91% of Marinas have a waitlist[30]

Group 1 - Albert Anthony is a senior analyst with over 10 years of experience in investment banking, focusing on market commentary and stock ratings using a 6-step methodology [1] - The analyst has gained over 1 thousand followers on Seeking Alpha since 2023 and writes for various financial media platforms [1] - A new book titled "The Analyst: 6 Steps To Picking Stocks For Future Growth (2025 edition)" is set to launch, aiming to reach over 1 million readers on Amazon [1] Group 2 - Albert Anthony has a background in IT analysis and transitioned to the financial sector during the remote-work era of 2020, renewing interest in home-based stock trading [1] - The analyst has earned degrees and certificates from institutions such as Drew University and the Corporate Finance Institute [1] - The brand "Albert Anthony & Company" is a privately-held enterprise registered in Austin, Texas [1]

Core Points - Sun Communities, Inc. declared a quarterly distribution of $1.04 per share for Q2 2025, payable on July 15, 2025, to shareholders of record on June 30, 2025 [1] Company Overview - As of March 31, 2025, Sun Communities, Inc. owned, operated, or had an interest in a portfolio of 502 developed properties, comprising approximately 174,850 developed sites across the United States, Canada, and the United Kingdom [2]

Portfolio Overview - As of March 31, 2025, the company owned and operated a portfolio of 502 developed properties, including 284 MH communities, 165 RV communities, and 53 UK communities[181]. Financial Performance - For the three months ended March 31, 2025, the net loss attributable to SUI common shareholders was $42.8 million, compared to a net loss of $27.4 million for the same period in 2024[198]. - Total NOI for the three months ended March 31, 2025, was $238.1 million, a decrease from $243.1 million in the same period in 2024[198]. - Real property NOI for the three months ended March 31, 2025, was $226.4 million, down from $229.0 million in the prior year[198]. - Total operating revenues for the three months ended March 31, 2025, were $384.4 million, a 1.0% increase from $380.5 million in the same period of 2024[202]. - FFO attributable to SUI common shareholders for Q1 2025 was $140.1 million, down from $143.9 million in Q1 2024, with a diluted FFO per share of $1.06 compared to $1.12[230]. - Core FFO attributable to SUI common shareholders for Q1 2025 was $166.1 million, an increase from $153.4 million in Q1 2024, with a diluted core FFO per share of $1.26 compared to $1.19[230]. - Cash provided by operating activities decreased by $27.5 million to $139.3 million in Q1 2025 from $166.8 million in Q1 2024, primarily due to reduced operating performance at RV properties[252]. Revenue and Occupancy Trends - The RV and UK segments are seasonal, with higher revenues typically recognized between April and September for RV properties and between March and October for UK vacation rental sites[199][200]. - Same Property operating revenues for MH and RV combined increased by 4.4% to $321.9 million for the three months ended March 31, 2025, compared to $308.2 million in 2024[207]. - Same Property NOI is used as a management tool to evaluate the performance of properties owned continuously since January 1, 2024, excluding certain properties[191]. - Same Property blended occupancy for MH and RV increased to 98.1% as of March 31, 2025, up from 97.7% in 2024[210]. - In the UK portfolio, Same Property revenues were $27.1 million, unchanged from the previous year, while Real Property NOI decreased by 5.4% to $10.0 million[212]. Capital Management - The Safe Harbor Sale generated approximately $5.25 billion of pre-tax cash proceeds, enhancing the company's leverage profile and financial flexibility[183][184]. - The company plans to utilize proceeds from the Safe Harbor Sale to implement a capital allocation plan aimed at optimizing shareholder value through lower leverage and greater financial flexibility[184]. - The company intends to prioritize debt reduction using free cash flow and proceeds from equity issuances, aiming to lower its leverage profile[236]. - The company plans to use $1.0 billion from the Safe Harbor Sale for potential future MH and RV acquisitions on a tax-efficient basis[237]. Debt and Liquidity - The company's net debt to enterprise value was 29.8% as of March 31, 2025, with a weighted average interest rate of 4.08% and a weighted average maturity of 5.9 years[278]. - The senior credit facility has an aggregate amount available of up to $3.05 billion, with a maturity date on April 7, 2026[268]. - As of March 31, 2025, approximately 91% of the company's total debt was fixed rate financing, which increased to 100% after debt paydown[263]. - The maximum leverage ratio requirement for the senior credit facility was 65.0%, with the company reporting a leverage ratio of 32.0% as of March 31, 2025[272]. - The company anticipates meeting long-term liquidity requirements through long-term unsecured and secured debt and the issuance of certain debt or equity securities[275]. Market and Operational Risks - The company is exposed to capital market risks, which affect its ability to raise capital through equity and debt financing, necessitating careful monitoring of market conditions[294]. - The company faces risks related to compliance with covenants in debt facilities and the ability to refinance maturing debt[287]. - The company is subject to various market risks, including interest rate fluctuations, foreign currency exchange rates, and commodity prices[289]. - The company’s liquidity and refinancing demands are critical factors influencing its financial stability and operational strategy[287]. - The company maintains a strategy to mitigate interest rate risk by using derivatives to convert variable rate debt to fixed rate debt[290]. - A 10.0% strengthening of the U.S. dollar against foreign currencies would have reduced total shareholder's equity by $104.5 million in Q1 2025, compared to $67.2 million in Q4 2024[293]. Property Sales and Investments - During Q1 2025, the company sold a portfolio of three MH properties and two RV properties for a gross sale price of approximately $120.7 million[241]. - The investment in occupied rental homes increased by 16.6% to $812.1 million as of March 31, 2025, up from $696.3 million in 2024[203]. - Total home sales decreased by $1.7 million, or 2.5%, with North America home sales down 12.5% and UK home sales up 6.6%[217]. - The average selling price in North America decreased by 17.5% to $82,709, while the UK saw a 7.9% increase to $62,704[217].

Sun Communities, Inc. (NYSE:SUI) Q1 2025 Earnings Conference Call May 6, 2025 11:00 AM ET Company Participants Gary Shiffman - Chairman & CEO John McLaren - President Fernando Castro-Caratini - EVP, CFO, Treasurer & Secretary Conference Call Participants Michael Goldsmith - UBS Jana Galan - Bank of America Eric Wolfe - Citigroup Brad Heffern - RBC Capital Markets Wes Golladay - Baird Steve Sakwa - Evercore ISI John Kim - BMO Capital Markets Anthony Hau - Truist Securities Peter Abramowitz - Jefferies David ...

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.26, representing a 5.8% increase year over year [14] - As of March 31, the company's debt balance stood at $7.4 billion with a weighted average interest rate of 4.1% [14] - The net debt to trailing twelve month recurring EBITDA ratio was 5.9 times [14] Business Line Data and Key Metrics Changes - North American same property portfolio delivered 4.6% NOI growth, driven by an 8.9% increase in manufactured housing same property NOI [9][10] - Revenue from manufactured housing grew 7.3%, supported by strong rental rate increases and a 150 basis point occupancy gain [10] - The RV segment saw a 7.8% increase in revenue year over year, but same property NOI declined by 9.1% due to softness in the transient RV business [11] Market Data and Key Metrics Changes - In the UK, total same property NOI saw a modest decrease of $600,000 compared to the prior year, primarily due to higher payroll and real estate taxes [11] - Revenue in the UK grew 0.2%, supported by higher manufactured housing income and home sales volumes [12] Company Strategy and Development Direction - The company is repositioning towards a pure play owner and operator of manufactured housing and recreational vehicle communities [5] - A new long-term net debt to EBITDA target of 3.5x to 4.5x has been established as part of the capital allocation plan [6] - The company is focused on operational excellence and disciplined execution through consistent organic growth and selective expansions [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the company's platform and long-term opportunities in the manufactured housing and RV segments [7] - The fundamentals driving demand for affordable housing remain intact, supporting a positive outlook [7] - Management acknowledged macroeconomic uncertainties affecting the transient RV business but emphasized the importance of annual revenue growth [34] Other Important Information - The company plans a one-time cash distribution of $4 per share and a planned increase to the quarterly distribution by approximately 10.6% to $1.04 per common share [16] - A $1 billion stock repurchase program has been adopted to allow for future repurchases of common shares [17] Q&A Session Summary Question: Can you walk us through the increase in manufactured housing NOI guidance? - Management noted good occupancy gains, strong renewal performance, and effective expense management as reasons for the revised guidance [24][25] Question: What is the outlook for RV guidance? - Management attributed the decline in transient RV revenue to seasonality and a shift towards shorter booking windows, particularly affecting Canadian guests [34][36] Question: What is the expected cash balance for the rest of the year? - Management confirmed that the expected cash balance is around $1.7 billion, which is embedded in guidance [40] Question: Can you discuss the types of properties targeted for acquisitions? - Management indicated a focus on high-quality single manufactured housing assets and small portfolio opportunities, emphasizing a disciplined approach [42][43] Question: What is the status of the CEO succession process? - Management stated that the search committee is actively engaged and making progress, with the possibility of an announcement before year-end [47][48] Question: What is the expected recurring CapEx for 2025? - Management expects recurring CapEx for the MH, RV, and UK portfolio to be just over $70 million for the year [99]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.26, representing a 5.8% increase year over year [13] - As of March 31, the company's debt balance stood at $7.4 billion with a weighted average interest rate of 4.1% [13] - The net debt to trailing twelve month recurring EBITDA ratio was 5.9 times [13] Business Line Data and Key Metrics Changes - The North American same property portfolio delivered 4.6% NOI growth, driven by an 8.9% increase in manufactured housing same property NOI [8][9] - Revenue from manufactured housing grew 7.3%, supported by strong rental rate increases and a 150 basis point occupancy gain [9] - The RV segment experienced a 7.8% revenue increase year over year, but same property NOI declined by 9.1% due to softness in the transient RV business [10] Market Data and Key Metrics Changes - In the UK, total same property NOI saw a modest decrease of $600,000 compared to the prior year, primarily due to higher payroll and real estate taxes [10] - The company noted that Canadian guests accounted for roughly 4% of the annual base and 5% of transient RV revenue, impacting overall performance [10] Company Strategy and Development Direction - The company is repositioning towards a pure play owner and operator of manufactured housing and recreational vehicle communities [4] - A new long-term net debt to EBITDA target of 3.5x to 4.5x has been established as part of the capital allocation plan [5] - The company is focused on operational excellence and disciplined execution through consistent organic growth and selective expansions [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the company's platform and long-term opportunities across the manufactured housing and RV segments [5] - The fundamentals driving demand for affordable housing remain intact, supporting a positive outlook [5] - Management acknowledged challenges in the transient RV business due to macroeconomic uncertainty and reduced Canadian guests [10] Other Important Information - The company plans a one-time cash distribution of $4 per share and a planned increase to the quarterly distribution by approximately 10.6% to $1.04 per common share [16] - A $1 billion stock repurchase program has been adopted to allow for future repurchases of common shares [17] Q&A Session Summary Question: What is driving the increase in manufactured housing NOI guidance? - Management noted good occupancy gains, strong renewal performance, and effective expense management as key factors [23][25] Question: Is the repurchase authorization opportunistic or a consistent strategy? - Management indicated that it is part of a larger thoughtful program related to the company's positioning and financial flexibility [28][30] Question: What is the reason for the revision in RV guidance? - Management attributed the revision to a shift towards shorter booking windows and challenges with Canadian guests [34][36] Question: What is the expected cash balance for the rest of the year? - The expected cash balance is around $1.7 billion, which is embedded in guidance [40][41] Question: What types of properties are being targeted for acquisitions? - The company is focused on high-quality single manufactured housing assets and small portfolio opportunities [45] Question: What is the status of the CEO search? - The search committee is actively engaged and hopes to secure a candidate by year-end [49][50] Question: What is the expected recurring CapEx for 2025? - The expected recurring CapEx for the MH, RV, and UK portfolio is just over $70 million for the year [98]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.26, representing a 5.8% increase year over year [14] - As of March 31, the company's debt balance stood at $7.4 billion with a weighted average interest rate of 4.1% [14] - The net debt to trailing twelve month recurring EBITDA ratio was 5.9 times [14] - The company established a new long-term net debt to EBITDA target of 3.5x to 4.5x [6] Business Line Data and Key Metrics Changes - North American same property portfolio delivered 4.6% NOI growth, driven by manufactured housing performance [9] - Manufactured housing same property NOI increased by 8.9% in the first quarter, with revenue growing by 7.3% [10] - RV segment revenue increased by 7.8% year over year, but same property NOI declined by 9.1% due to softness in the transient RV business [11] - In the UK, total same property NOI saw a modest decrease of $600,000 compared to the prior year [12] Market Data and Key Metrics Changes - The company noted that Canadian guests account for roughly 4% of the annual base and 5% of transient RV revenue, impacting overall performance [11] - The company experienced a shift towards shorter booking windows in the RV segment, affecting transient revenue [36] Company Strategy and Development Direction - The company is focused on a strategic repositioning toward a pure play owner and operator of manufactured housing and recreational vehicle communities [5] - A capital allocation plan was executed post-Safe Harbor transaction, emphasizing debt reduction and financial flexibility [15] - The company is underwriting high-quality single assets and small portfolio manufactured housing opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the company's platform and long-term opportunities in the manufactured housing and RV segments [7] - The fundamentals driving demand for affordable housing remain intact, supporting a positive outlook [7] - Management acknowledged macroeconomic uncertainties affecting the transient RV business but remains optimistic about future performance [36] Other Important Information - The company plans a one-time cash distribution of $4 per share and a planned increase to the quarterly distribution by approximately 10.6% [16] - A $1 billion stock repurchase program was announced, allowing for future repurchases of common shares [17] Q&A Session Summary Question: What led to the increase in manufactured housing NOI guidance? - Management indicated that the increase was due to good occupancy gains, strong renewal performance, and effective expense management [24][25] Question: Is the repurchase authorization opportunistic or a consistent strategy? - Management clarified that it is part of a larger thoughtful program related to the company's positioning and financial flexibility [28] Question: What factors contributed to the revision in RV guidance? - Management attributed the revision to a shift towards shorter booking windows and challenges with Canadian guests [34][36] Question: What is the expected cash balance for the rest of the year? - Management confirmed that the expected cash balance is around $1.7 billion, which is embedded in guidance [41] Question: What types of properties are being targeted for acquisitions? - Management is focused on high-quality single manufactured housing assets and small portfolio opportunities [44] Question: What is the status of the CEO succession process? - Management indicated that the search for a new CEO is ongoing, with a possibility of an announcement before year-end [48][49] Question: What is the expected recurring CapEx for 2025? - Management expects recurring CapEx for the MH, RV, and UK portfolio to be just over $70 million for the year [99]