Sun Communities(US:SUI)2026-02-25 20:40Reporting Structure and Operations - The company revised its reporting structure from four segments to three: MH communities, RV communities, and UK communities[19]. - The company acquired 11 MH and three RV properties for a total cash consideration of $457.0 million in 2025[43]. - The company sold four MH properties, three RV properties, and three development land parcels for a gross sale price of $202.6 million during the same period[43]. - The company received over 33,700 applications to live in its MH and RV properties in 2025, enhancing its resident onboarding system[36]. - The company’s Rental Program consists of over 12,510 occupied leased homes as of December 31, 2025[36]. - Approximately 34% of the total RV properties were managed by third-party managers as of December 31, 2025[32]. - The average removal rate of homes in MH communities was less than 1.0% over the five years ended December 31, 2025[39]. - The company’s UK operations are conducted through taxable REIT subsidiaries, enhancing its ability to provide services and manage properties[21]. Financial Position and Equity - As of December 31, 2025, the company owned 95.7% of the OP Units, with 126,124,022 Common OP units outstanding[23][26]. - The company has $1.0 billion in shareholder's equity from investments in the UK, Canada, and Australia, representing 14.4% of total shareholder's equity as of December 31, 2025[293]. - A 10.0% strengthening of the U.S. dollar against foreign currencies would have reduced total shareholder's equity by $101.6 million as of December 31, 2025[293]. Debt and Risk Management - All outstanding debt obligations bear interest at fixed rates, minimizing the impact of interest rate variability on operations and cash flows[290]. - The company is exposed to foreign currency exchange rate risk due to properties in the UK, Canada, and Australia, which can create volatility in results[291]. - The company has increased self-insurance exposure due to challenging insurance market conditions, resulting in higher premiums and deductibles[45]. - The company maintains a blanket insurance policy covering all properties, ensuring adequate coverage against various risks[45]. Human Capital and Employee Management - As of December 31, 2025, 50% of the workforce is female, 25% is racially or ethnically diverse, and 47% are aged 50 years and older[49]. - The company focuses on human capital management to enhance employee retention and talent development, aiming to build a competitive business[46]. - The company conducts ongoing pay equity analyses to ensure fair compensation for employees, aiming to be competitive in the real estate industry[50]. Strategic Direction - The company shifted its strategy in 2023 towards optimizing rental rate growth and operating efficiencies while pursuing select acquisitions[42]. - The company actively seeks to minimize health, safety, and environmental risks through compliance with safety laws and ongoing training[52].