Sun Communities Reports 2025 Fourth Quarter and Full Year Results; Provides 2026 Guidance and Increases Quarterly Distribution Rate for 2026

Core Insights - Sun Communities, Inc. reported a net income of $121.9 million, or $0.99 per diluted share, for the fourth quarter of 2025, compared to a net loss of $224.4 million, or $1.77 per diluted share, in the same period of 2024 [6][30] - The company achieved a Core FFO per share of $1.40 for the fourth quarter and $6.68 for the full year of 2025, reflecting a slight decrease from $1.41 and $6.81 in the same periods of 2024 [6][30] - North America Same Property NOI increased by 7.9% for the fourth quarter and 5.7% for the full year of 2025, indicating strong operational performance [4][6] Financial Performance - For the year ended December 31, 2025, net income attributable to common shareholders was $1.4 billion, or $10.84 per diluted share, compared to $89.0 million, or $0.71 per diluted share, in 2024 [6][30] - The company distributed over $1.5 billion to shareholders in 2025, including cash distributions and share repurchases [4][6] - The company reported a total revenue increase of 5.9% for the fourth quarter and 3.7% for the full year in North America [5] Investment Activity - Sun Communities acquired 14 manufactured housing (MH) and recreational vehicle (RV) communities for $457.0 million during the fourth quarter of 2025 [4][9] - The company repurchased approximately 4.3 million shares of its common stock for a total of $539.1 million in 2025 [12][30] Guidance for 2026 - The company expects Core FFO per share for 2026 to be in the range of $6.83 to $7.03, with North American Same Property NOI growth projected at 4.5% at the midpoint [4][16] - The guidance for the first quarter of 2026 includes diluted EPS ranging from $0.14 to $0.22 [16] Operational Highlights - The occupancy rate for MH and annual RV sites was 97.9% as of December 31, 2025, slightly down from 98.0% in 2024 [7] - North America Same Property adjusted blended occupancy for MH and RV increased to 99.1% from 98.7% year-over-year [8] Balance Sheet and Capital Markets - As of December 31, 2025, the company had $4.3 billion in debt outstanding with a weighted average interest rate of 3.4% and a weighted average maturity of 7.1 years [11] - The Net Debt to trailing twelve-month Recurring EBITDA ratio was 3.4 times [11]