Sun Communities reported second-quarter 2026 results showing net income from continuing operations of $42.3 million ($0.32 diluted per share) and a consolidated net loss attributable to common shareholders of $992.7 million ($8.08 diluted per share), largely driven by a $1.1 billion non‑cash valuation allowance related to its UK business classified as held for sale. Core FFO was $1.84 per share for the quarter and the company raised its full‑year same property NOI growth guidance to 4.5%–5.3%. Sun Communities announced a board‑authorized $1.0 billion stock repurchase program and expects the Park Holidays sale to close in H2 2026 subject to regulatory approval.

Financial Highlights

  • Net income (continuing operations) for Q2 2026: $42.3 million, $0.32 diluted per share; six months: $60.7 million, $0.47 diluted per share.
  • Net loss attributable to common shareholders for Q2 2026: $992.7 million, or $8.08 diluted per share; six months net loss: $1.0 billion, or $8.10 diluted per share (includes discontinued operations).
  • Core FFO per share: $1.84 for the quarter and $3.24 for the six months ended June 30, 2026 (compared with Core FFO $1.76 and $3.02 in prior-year periods).
  • FFO per share: $1.77 for the quarter and $2.71 for the six months ended June 30, 2026 (vs. $1.36 and $2.43 prior year).
  • Balance sheet and leverage: total assets $10.868 billion; total debt $4.052 billion at a weighted average interest rate of 3.3%; Net Debt / TTM Recurring EBITDA of 3.9x; TTM Recurring EBITDA / interest 6.6x.

Business Highlights

  • Same Property NOI growth: Same Property NOI increased 6.0% for the quarter and 6.1% for the six months ended June 30, 2026, driven by strength in manufactured housing (MH) NOI growth of 8.8% in the quarter.
  • Portfolio occupancy and sites: MH and annual RV blended occupancy was 97.9% at June 30, 2026; the company reported approximately 250 net new MH and annual RV revenue producing sites during the quarter.
  • Portfolio transactions: Entered agreement to sell UK business (Park Holidays) for a base consideration of £785.7 million (~$1.04 billion); UK business presented as discontinued operations and assets held for sale; sale expected to close in H2 2026 pending regulatory approval.
  • Segment and reporting changes: Reorganized reporting into two segments — MH communities and RV communities — removing the UK business as a continuing segment following its held‑for‑sale classification.
  • Capital allocation actions: Board authorized a $1.0 billion stock repurchase program through May 27, 2027; repurchased ~0.9 million shares for $111.1 million in Q2 and an additional ~0.7 million shares for $89.0 million through July 22, 2026. Also repaid mortgage term loans in Q2 that unencumbered properties and reduced leverage.

Original SEC Filing:

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