Sun Communities beat guidance with fourth-quarter core FFO of $1.40 and full-year $6.68 (each $0.01 above the high end), driven by durable fundamentals—manufactured housing posted high occupancy (~98.1%) and strong same-property NOI gains (Q4 MH NOI up 8.8%, full-year MH NOI up 8.9%).
The company completed a balance-sheet transformation in 2025, repaying more than $3.3 billion of debt to finish at 3.4x net debt/EBITDA with no floating-rate exposure, secured a $2 billion undrawn facility and received credit upgrades, while returning over $1.5 billion to shareholders and raising the quarterly distribution ~8%.
For 2026 Sun guided core FFO to $6.83–$7.03 (midpoint $6.93) and expects North America same-property NOI growth of ~4.5% (MH 5.9%, RV 0.9%), with a focus on RV stabilization through booking-channel expansion, digital/data investments and roughly 600 annual conversions assumed.
Sun Communities (NYSE:SUI) reported fourth-quarter and full-year 2025 results that exceeded the high end of management’s guidance ranges, supported by strong manufactured housing fundamentals and improved balance sheet flexibility following portfolio actions during the year.
Chief Executive Officer Charles Young said the company delivered core FFO per share of $1.40 for the fourth quarter and $6.68 for full-year 2025, with both results coming in $0.01 above the high end of the company’s guidance. Young attributed the performance to “durable fundamentals” across Sun’s manufactured housing (MH) and recreational vehicle (RV) communities, emphasizing “recurring and predictable rental streams” and limited new supply.
Young highlighted same-property MH occupancy of 98.1% and described affordability as central to Sun’s model, positioning manufactured housing as a lower-cost alternative to traditional housing and RV communities as accessible short- and long-term vacation options. He also noted that engagement among residents and guests supports retention and stability.
President John McLaren said total North American same-property NOI increased 7.9% year-over-year in the fourth quarter, driven by 5.9% revenue growth and 2.0% expense growth, with blended occupancy over 99%.
Manufactured housing (Q4): Same-property NOI increased 8.8%, with revenue up 7.3% and operating expenses up 3.2%.
RV (Q4): Same-property NOI increased 5.0%, with revenue up 2.7% and operating expenses up 60 basis points. McLaren said transient performance was in line with expectations, and revenue benefited from higher RV contract rates.
For full-year 2025, North American same-property NOI increased 5.7%, reflecting 4.5% revenue growth and a 2.2% increase in expenses. McLaren said manufactured housing exceeded guidance, with full-year same-property NOI growth of 8.9%, while RV NOI declined 1.4%, which was within the company’s guidance range.
In the U.K., McLaren said fourth-quarter same-property NOI declined by approximately $500,000, citing macroeconomic pressures including the national minimum wage increase. For the full year, U.K. same-property NOI increased 3.5%, supported by 5.0% revenue growth, partially offset by a 6.6% increase in operating expenses. He added that U.K. home sales volumes were down 4.9% compared with 2024’s record levels.
Asked how the U.K. fits into the portfolio, Young said he views the operation as high quality with strong assets and a talented team, but acknowledged the “challenging U.K. macro.” He said the company will continue to evaluate the entire portfolio for long-term shareholder value, including the U.K., while focusing near-term on disciplined execution, cost control, and improving performance. McLaren added the company’s guidance includes a 4.1% rent increase in the U.K., which he said is running ahead of U.K. inflation, and reiterated that wage-driven cost pressure is affecting the sector broadly.
Chief Financial Officer Fernando Castro-Caratini said 2025 was “transformational” for the balance sheet. During the year, Sun repaid more than $3.3 billion of total debt and ended 2025 at 3.4x net debt to trailing 12-month recurring EBITDA, with no floating rate exposure. The company reported a weighted average interest rate of 3.4% and a 7.1-year weighted average maturity. Castro-Caratini said Sun has a “well-laddered” maturity schedule, with $492 million maturing in 2026 and no maturities until 2028.
As of Dec. 31, 2025, Sun had $636 million of cash. Castro-Caratini also noted the company closed a new $2 billion, five-year credit facility in September that was undrawn at year-end. The company received two credit rating upgrades in 2025, with S&P raising Sun to BBB+ and Moody’s upgrading it to Baa2.
Young said Sun returned over $1.5 billion of capital to shareholders in 2025 and that the board approved an approximately 8%, or $0.08 per share, increase to the quarterly distribution rate, citing confidence in cash flow, operating performance, and balance sheet strength.
On share repurchases, Castro-Caratini said the company repurchased 4.3 million shares in 2025 at an average price of $125.62, totaling approximately $539 million. After year-end through Feb. 24, the company repurchased an additional 456,000 shares for $57.3 million. Management emphasized that 2026 guidance does not assume additional acquisitions or repurchases beyond activity completed through Feb. 24.
Castro-Caratini also stated the company’s long-term leverage target is 3.5x to 4.5x net debt to EBITDA, and that under the current guidance—without assumed additional capital markets activity—leverage would end the year similar to where it began.
For 2026, Sun provided full-year core FFO per share guidance of $6.83 to $7.03, with a midpoint of $6.93. First-quarter 2026 core FFO per share guidance was $1.28 at the midpoint.
At the midpoint, the company expects:
North America same-property NOI growth: approximately 4.5%
MH same-property NOI growth:5.9%
RV same-property NOI growth:0.9%
U.K. same-property NOI growth: approximately 2.2%
FFO from U.K. home sales: approximately $50 million at the midpoint
Management discussed efforts to reduce RV volatility and improve performance, including booking channel expansions, digital booking enhancements, and better use of data. Responding to questions on data initiatives, Young said the company is building a “unified digital backbone” and is expanding from the foundation created by its NetSuite implementation, with a near-term focus on centralizing and enhancing parts of the customer journey through contact center work.
On annual RV conversions, McLaren said the company expects something similar to 2025, which he referenced as around 600 conversions. Castro-Caratini added that the 2026 midpoint assumes a 4% annual guest rental increase and approximately 600 transient-to-annual conversions, while transient revenue is expected to decline about 1.5% year-over-year—an improvement from a 9% decline in 2025. McLaren also addressed softness from Canadian guests seen in parts of 2025, noting Canada represented about 5% of the RV business previously and about 3.5% of the total RV transient and annual business currently, with domestic demand helping offset prior impacts.
Looking ahead, Young said Sun’s 2026 priorities center on disciplined capital allocation, consistent execution, and investment in MH and RV communities and infrastructure, while continuing to refine the operating platform through technology and data-driven decision-making.
Sun Communities, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of manufactured housing communities, recreational vehicle (RV) resorts and marinas. The company’s portfolio spans more than 500 manufactured housing communities and over 160 RV resorts, offering affordable, long-term housing as well as short-stay recreational lodging. Through professional on-site management and amenity-rich community designs, Sun Communities serves a diverse customer base that includes retirees, workforce families and vacationers.
Founded in 1975 and headquartered in Southfield, Michigan, Sun Communities has grown organically and through strategic acquisitions to become one of the largest operators in its sector.
