Core Viewpoint - Sun Communities, Inc. will release its third quarter 2025 operating results on October 29, 2025, and will host a conference call to discuss these results on October 30, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for October 30, 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 November 13, 2025, with U.S. and Canada replay number (844) 512-2921 and international number (412) 317-6671, using passcode 13755683 [3]. Group 2: Company Overview - As of June 30, 2025, Sun Communities, Inc. 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 [4].

Core Insights - SUI Group Holdings Limited has launched suiUSDe, a Sui-native synthetic dollar token, in partnership with Ethena and the Sui Foundation [1] - The company also introduced USDi, a stablecoin backed by the BlackRock USD Institutional Digital Liquidity Fund [1] - Ethena is the protocol behind USDe, which is noted as the third-largest and fastest-growing USD-denominated digital asset [1]

Company Announcement - Sun Communities, Inc. announced the granting of an equity award to incoming CEO Charles D. Young, effective October 1, 2025 [1][3] - The equity award consists of shares valued at $1,000,000, fully vested upon issuance, and granted outside the Company's 2015 Equity Incentive Plan [2][3] Company Overview - As of June 30, 2025, Sun Communities, Inc. 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 [4]

Core Viewpoint - SUI Group Holdings Limited has completed a $2 million stock repurchase program and announced a new program to repurchase up to $50 million of its common stock [1] Group 1 - The company is the only publicly traded entity with an official relationship with the Sui Foundation [1] - The completion of the previous stock repurchase program indicates the company's commitment to returning value to shareholders [1] - The newly authorized stock repurchase program reflects the company's confidence in its financial position and future prospects [1]

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]

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]

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]