Sun Communities Completes UK Sale, Updates 2026 Core FFO Outlook
The REIT booked $1.00 a share of third-quarter net income and now expects Core FFO of $7.01 a share at the 2026 midpoint.
Sun Communities, Inc. (SUI), a real estate investment trust that owns manufactured housing and recreational vehicle communities, completed the sale of its United Kingdom business on September 22, 2026, receiving net cash of approximately $1.03 billion.
The company reported net income attributable to common shareholders of $120.7 million, or $1.00 a share, for the quarter ended September 30, 2026, compared with $8.5 million, or $0.07 a share, a year earlier. That figure includes a net loss from discontinued operations. Net income from continuing operations was $137.1 million, or $1.07 a share, versus a loss of $53.1 million, or $0.45 a share, in the year-ago quarter.
Cash consideration for the UK sale was approximately £772.3 million, or about $1.05 billion. Results of the former UK business through the closing date are presented as discontinued operations for all periods shown.
Core FFO was $2.35 a share in the third quarter, compared with $2.28 a year earlier. FFO was $2.27 a share, versus $2.18.
Same-property net operating income rose $10.4 million, or 3.6%, from the year-ago quarter. Manufactured housing same-property revenue increased 5.8% and same-property MH NOI rose 6.9%. RV same-property revenue rose 0.5% and RV NOI fell 1.3%. Same-property adjusted blended occupancy for MH and RV was 98.8%, down 50 basis points from 99.3% a year earlier.
Chief Executive Officer Charles Young said results exceeded the company’s expectations, led by continued strength in manufactured housing, and that the company has been disciplined in putting UK proceeds to work primarily repurchasing shares, along with other investment and balance-sheet activity.
During the quarter the company repurchased about 2.4 million shares at an average $119.24 a share for $293.3 million. It also repaid three mortgage term loans totaling $266.6 million, unencumbering 17 properties. In September it sold three Florida RV properties for $127.0 million. It acquired no assets in the quarter. Subsequent to quarter-end it bought two Pacific Northwest MH properties for $79.5 million, including $28.3 million of Series M preferred operating partnership units.
Debt outstanding was $3.8 billion at September 30, with a weighted average interest rate of 3.3% and a weighted average maturity of 7.1 years. Net debt to trailing twelve-month Recurring EBITDAre was 3.2 times. The portfolio comprised 452 properties and about 153,520 developed sites in the U.S. and Canada. MH and annual RV sites were 98.2% occupied.
The company updated full-year 2026 guidance. Core FFO per share is now expected at $6.97 to $7.05, a midpoint of $7.01. North America same-property NOI growth is expected at 4.9% to 5.3%, versus a prior full-year range of 4.5% to 5.3%. MH NOI growth is guided at 6.9% to 7.2% and RV NOI at 0.0% to 0.8%. Fourth-quarter North America same-property NOI growth is assumed at 4.0% to 5.9%.
Preliminary 2027 rental-rate guidance is 5.4% for MH and 4.4% for annual RV. Young said 2027 expected rental-rate increases are coming in above 2026 levels.
For the nine months ended September 30, 2026, net income from continuing operations was $197.8 million, or $1.55 a share, compared with a loss of $104.8 million, or $1.37 a share, a year earlier. Net loss attributable to common shareholders for the nine months was $880.7 million, or $7.14 a share, compared with net income of $1.2 billion, or $9.81 a share, in the year-ago nine months. Core FFO for the nine months was $5.59 a share, versus $5.28.
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