10-Q · April 28, 2026
Sun Communities' Q1 2026 results show operating improvement driven by rental operations: Total Real Property NOI increased to $246.9M (from $226.4M) and Same Property NOI rose $13.6M (6.3%). Core FFO per share improved…
Earnings analysis · 10-Q
SUI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Underlying North American operations improved meaningfully: Q2 total NOI increased 6.1% to $271.3 million, same-property NOI rose 6.0%, and Core FFO increased to $1.84 per share. However, the pending UK exit produced a…
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Underlying North American operations improved meaningfully: Q2 total NOI increased 6.1% to $271.3 million, same-property NOI rose 6.0%, and Core FFO increased to $1.84 per share. However, the pending UK exit produced a $1.1 billion valuation allowance and a GAAP loss of $8.08 per share, overwhelming operating progress. Liquidity and debt metrics remain strong, but the conditional Park Holidays sale, weaker RV transient revenue, and sharply lower home-sales NOI temper the outlook.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-8.08
What stood out
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Core FFO and NOI increased
Core FFO rose to $1.84 per share from $1.76 in Q2 2025, while total portfolio NOI increased $15.7 million, or 6.1%, to $271.3 million.
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MH portfolio drove organic growth
Same-property NOI grew 6.0% to $254.4 million. MH same-property NOI increased $14.8 million, or 8.8%, supported by 4.9% monthly base-rent growth and occupancy gains.
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Real-property NOI grew 8.0%
Continuing-operation real-property NOI increased $19.2 million, or 8.0%, to $260.6 million, as MH NOI reached $186.5 million and RV NOI reached $74.1 million.
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Operating cash flow strengthened
Six-month operating cash flow from continuing operations rose $75.0 million to $471.2 million, versus $396.2 million a year earlier, aided by same-property performance and favorable working-capital timing.
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Leverage profile remains strong
The company repaid $177.9 million of mortgage term loans and had no borrowings on its $2.0 billion senior credit facility at June 30, 2026; total debt carried a 3.35% weighted-average interest rate.
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Substantial available liquidity
Liquidity included $150.6 million of unrestricted cash, $2.0 billion of undrawn credit-facility capacity, and 353 unencumbered MH and RV properties at June 30, 2026.
What to watch
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UK valuation charge and impairment risk
The newly updated impairment risk factor follows a $1.1 billion non-cash valuation-allowance charge for the UK business during Q2 2026; continuing-operation asset impairments were also $17.9 million.
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GAAP earnings swung sharply negative
GAAP net loss attributable to common shareholders was $992.7 million in Q2 2026, versus net income of $1.274 billion in Q2 2025, primarily because discontinued operations recorded a $1.067 billion loss.
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Park Holidays sale remains conditional
The Park Holidays sale requires UK Financial Conduct Authority approval and is expected in the second half of 2026; failure or delay could affect realization of the strategic and liquidity benefits tied to the UK exit.
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RV transient demand pressured Q2 NOI
RV same-property NOI decreased $0.4 million, or 0.7%, in Q2 as transient revenue fell $2.9 million, or 4.8%, and supplies-and-repairs costs rose.
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Home-sales activity and margin contracted
Home-sales NOI fell $3.5 million, or 51.5%, to $3.3 million as units sold declined 32.1% to 326 and margin fell to 11.9% from 16.3%.
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Cash balance declined amid capital deployment
Cash, cash equivalents and restricted cash from continuing operations fell $441.5 million to $165.2 million at June 30, 2026 from $606.7 million at year-end, while six-month capex and related activities totaled $173.0 million.
Management's outlook
The 10-Q provides no quantitative EPS or revenue outlook. Management expects 2026 rental-rate growth to exceed headline inflation, with occupancy gains and expense management; the Park Holidays sale remains subject to UK FCA approval and is expected to close in the second half of 2026.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.