Sun Communities (SUI) Q3 2025 Earnings Transcript | The Motley Fool

Image source: The Motley Fool. DATE Thursday, Oct. 30, 2025 at 2 p.m. ET CALL PARTICIPANTS Chief Executive Officer - Charles Young President and Chief Operating Officer - John McLaren Chief Financial Officer - Fernando Castro-Caratini Chief Investment Officer - Aaron Weiss Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Core FFO Per Share -- $2.28, surpassing the high end of guidance due to strong North American and U.K. same-property performance. North American Same-Property NOI Growth -- 5.4%, driven primarily by manufactured housing segment strength. Manufactured Housing Same-Property NOI Growth -- 10.1% with 98% occupancy, reflecting high portfolio demand. 2026 Rent Increase Notices (MH) -- Delivered to 50% of residents at an average increase of approximately 5%. Same-Property Annual RV Revenue -- Up 8.1%; same-property RV NOI declined 1.1% as transient RV revenue decreased 7.8% due to strategic conversion to annual contracts. 2026 Annual RV Rental Rate Increases -- Average approximately 4% per management’s update. U.K. Same-Property NOI Growth -- 5.4% supported by 4.8% revenue increase and 4% expense rise. U.K. 2026 Rent Increase Notices -- Sent to Park Holidays homeowners with an average rise of approximately 4.1%. Completed Dispositions -- Approximately $118 million of delayed consent properties and an $18 million land parcel sold in the quarter. Acquisitions -- 14 communities purchased for $457 million using 1031 exchange proceeds; 7 U.K. properties’ ground leases acquired for $124 million. U.K. Ground Lease Advancement -- 28 ground leases totaling $324 million acquired year-to-date; 5 more totaling $63 million pending by Q1 2026, bringing 49 of 53 U.K. communities to freehold ownership. Total Debt -- $4.3 billion at 3.4% weighted average interest rate and 7.4 years weighted average maturity as of September 30; pro forma net debt at $3.7 billion. Net Debt to Recurring EBITDA -- Approximately 3.6x on a trailing 12-month basis. Share Repurchases -- Approximately 4 million shares bought back for $500 million year-to-date at an average price of $125.74 per share. Full-Year 2025 Core FFO Guidance -- Raised by $0.04 at the midpoint to a new range of $6.59 to $6.67 per share. Updated NOI Guidance -- North American same-property NOI growth at 5.1% midpoint (+40 basis points); manufactured housing segment to 7.8% midpoint; RV segment revised to 1% decline midpoint; U.K. to approximately 4% midpoint. Recent Acquisitions’ Cap Rate -- Management confirmed cap rates in the low 4% range; ground lease yields are in the low to mid-4% range. Operational Cost Controls -- Ongoing expense savings result from procurement standardization, technology-driven efficiencies, and favorable bad debt trends. SUMMARY The appointment of Charles Young as CEO marked a leadership transition focused on operational excellence, capital discipline, and long-term growth. The company executed major portfolio rebalancing, advancing strategic acquisitions with a disciplined approach and completing $118 million in asset dispositions. Recent ground lease purchases in the U.K. shifted 49 out of 53 communities to freehold, improving both strategic flexibility and earnings accretion. Management communicated confidence in rate setting and RV retention strategies, as evidenced by average...

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