Sun Communities (NYSE: SUI) cuts debt $3B, ups shareholder payouts

Rhea-AI Filing Summary

Sun Communities, Inc. reports strategic portfolio simplification and balance-sheet strengthening after asset sales in 2025. The company used proceeds to pay down more than $3 billion of debt and eliminated floating-rate debt exposure, returned capital via share repurchases, a special cash distribution and a higher quarterly dividend. The firm acquired 14 MH/RV communities within existing geographies and acquired ground leases for 32 UK properties, converting them to full freehold ownership. Leadership changes include Charles Young joining as CEO and director in Oct 2025. The virtual annual meeting is set for May 12, 2026.

Insights

Corporate Finance Strategist

Major deleveraging event: >$3.0B of debt retired and floating-rate exposure removed.

Sun's use of Safe Harbor Marinas sale proceeds to reduce leverage by more than $3 billion materially changes its capital structure, lowering interest-rate sensitivity and refinancing risk. The filing explicitly states the company fully eliminated floating-rate debt exposure.

Near-term focus will be on how repurchases, the special cash distribution, and dividend increases interact with remaining liquidity and capital allocation; subsequent filings may show precise program sizes and timing.

Real Estate Portfolio Analyst

Portfolio shift toward core MH/RV footprint and UK freehold consolidation.

The company reports acquisition of 14 manufactured-housing and annual RV communities within its existing geographies and conversion of ground leases for 32 properties in the UK to freehold, reducing lease complexity. These are explicit, discrete transactions noted in the report.

Operational impacts will depend on asset-level performance and integration; the filing does not provide projected income or acquisition prices for those assets.

Key Figures

Debt paid down: $3 billion Communities acquired: 14 communities UK ground leases converted: 32 properties +2 more

5 metrics

Debt paid down <money>$3 billion</money> Amount of debt paid down in 2025

Communities acquired 14 communities Manufactured housing and annual RV communities acquired within existing geographies in 2025

UK ground leases converted 32 properties Ground leases acquired and converted to full freehold ownership in the UK

CEO appointment Charles Young (Oct 2025) Joined as Chief Executive Officer and director in <date>Oct 2025</date>

Annual meeting May 12, 2026 Virtual annual meeting at 11:00 a.m. Eastern Daylight Time

Key Terms

Safe Harbor Marinas sale, ground leases, special cash distribution, floating-rate debt exposure

4 terms

Safe Harbor Marinas sale financial

"used the proceeds from the Safe Harbor sale to reposition our balance sheet"

ground leases regulatory

"acquired the ground leases for 32 properties, resulting in Sun owning the full freehold interest"

A ground lease is a long-term agreement where one party rents land from the owner and usually builds or operates structures on it while the landowner keeps ownership of the soil. For investors, ground leases matter because they separate ownership of land from the income-producing building: they can create steady rent payments and lower upfront cost for tenants, but also limit resale value, borrowing options, and long-term control of the property.

special cash distribution financial

"returned capital to shareholders through ... a special cash distribution"

A special cash distribution is a one-time payment made to shareholders, separate from regular dividend payments, often representing a share of profits or assets. It acts like a bonus or extra reward, giving investors immediate cash instead of reinvesting in the company. This can be important to investors because it provides quick income and may signal changes in the company's financial situation.

floating-rate debt exposure financial

"fully eliminated our floating-rate debt exposure"

2025 Annual Report And Form 10-K Lakeside Crossing - South Carolina Birchington Vale - Birchington UKForest Meadows - Oregon Panama City Beach - Florida 27777 Franklin Road, Suite 300 • Southfield, Michigan 48034 www.suninc.com • NYSE: SUI Sun Communities, Inc. Headquarters United Kingdom DOMESTIC & INTERNATIONAL PRESENCE ALABAMA ARIZONA CALIFORNIA COLORADO CONNECTICUT DELAWARE FLORIDA GEORGIA ILLINOIS INDIANA KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MISSISSIPPI MONTANA NEVADA NEW HAMPSHIRE NEW JERSEY NEW YORK NORTH CAROLINA OHIO OREGON PENNSYLVANIA SOUTH CAROLINA TENNESSEE TEXAS UTAH VIRGINIA WASHINGTON WISCONSIN ONTARIO, CANADA UNITED KINGDOM

LETTER TO OUR SHAREHOLDERS Dear Fellow Shareholders, We enter 2026 positioned to build on Sun’s strong operational and cultural legacy and create value for our shareholders. In 2025, we successfully executed on our strategic objectives, simplifying our business and strengthening our balance sheet. With the closing of the Safe Harbor Marinas sale and other non-strategic assets, we sharpened our focus on our core manufactured housing (MH) and recreation vehicle (RV) segments. Importantly, we deployed the proceeds deliberately through a thoughtful capital allocation process, meaningfully enhancing our balance sheet position and financial flexibility. 2025 RESULTS Our disciplined execution of our strategic priorities was reflected in our strong 2025 results. In addition to optimizing our portfolio, we significantly enhanced our capital deployment strategy by using the proceeds from the Safe Harbor sale to reposition our balance sheet. We paid down more than $3 billion of debt and fully eliminated our floating-rate debt exposure. We also returned capital to shareholders through share repurchases, a special cash distribution, and a meaningful increase to our quarterly dividend. On the strategic investment front, we acquired fourteen MH and annual RV communities within existing Sun geographies. In the UK, we acquired the ground leases for 32 properties, resulting in Sun owning the full freehold interest across our UK portfolio, reducing lease complexity while creating meaningful financial and strategic flexibility. BOARD AND MANAGEMENT As we advanced our strategic and financial priorities, we also strengthened our leadership team and further enhanced our Board of Directors. In October 2025, Charles Young joined Sun as both our Chief Executive Officer and director. At the Board level, Mark Denien was elected to the Board in 2025 as an independent director and, after decades of distinguished and dedicated service to the Company and our shareholders, Clunet Lewis will retire from the Board this year. LOOKING AHEAD We remain committed to creating long-term value for our shareholders. Building on the successes of 2025, we expect to continue to take purposeful, measured actions to support and further strengthen our core business and seek to deliver reliable earnings growth. With a clear strategic direction, we remain focused on realizing the full potential of our portfolio and platform. Thank you for your continued support. Sincerely, GARY A. SHIFFMAN Chairman CHARLES YOUNG Chief Executive Officer MEGHAN G. BAIVIER Lead Independent Director OFFICERS AND DIRECTORS ANNUAL MEETING SEC FORM 10-K www.suninc.com TRANSFER AGENT & DIVIDEND DISBURSING AGENT INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS CORPORATE COUNSEL CORPORATE HEADQUARTERS STOCK TRADING INFORMATION CERTAIN FILINGS PERFORMANCE GRAPH

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Charles D. Young Chief Executive Officer and Director John B. McLaren President and Chief Operating Officer Fernando Castro-Caratini Executive Vice President, Chief Financial Officer, Treasurer and Secretary Marc Farrugia Executive Vice President and Chief Administrative Officer Aaron Weiss Executive Vice President and Chief Investment Officer Tonya Allen Director; President of the McKnight Foundation Meghan G. Baivier Director; Chief Financial Officer of Aligned Data Centers, LLC Jeff T. Blau Director; Chief Executive Officer and Partner of Related Companies, L.P. Mark A. Denien Director, Retired Chief Financial Officer Jerome W. Ehlinger Director; Retired Real Estate Business Manager, Portfolio Manager and Chief Investment Officer Brian M. Hermelin Director; Co-Founder and Managing Partner of Rockbridge Growth Equity Management LP, Co-Founder and General Partner of Detroit Venture Partners, LLC Craig A. Leupold Director; Chief Executive Officer of GSI Capital Advisors Clunet R. Lewis Director; Retired Attorney and Businessman Gary A. Shiffman Chairman of the Board OFFICERS AND DIRECTORS ANNUAL MEETING The Annual Meeting of shareholders will be conducted in a virtual format only by visiting www.virtualshareholdermeeting.com/SUI2026 on May 12, 2026 at 11:00 a.m. Eastern Daylight Time. SEC FORM 10-K A copy of the Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2025 is available at no charge to shareholders who direct a written request to: Investor Relations Department Sun Communities, Inc. 27777 Franklin Road, Suite 300 Southfield, Michigan 48034 Telephone: (248) 208-2500 Website: www.suninc.com TRANSFER AGENT & DIVIDEND DISBURSING AGENT Computershare Trust Company, N.A. P.O. Box 43010 Providence, Rhode Island 02940-3010 Shareholder Inquiries: (800) 426-5523 INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS Deloitte & Touche, LLP 1001 Woodward, Suite 700 Detroit, MI 48226 CORPORATE COUNSEL Taft Stettinius & Hollister LLP 27777 Franklin Road, Suite 2500 Southfield, Michigan 48034 CORPORATE HEADQUARTERS Sun Communities, Inc. 27777 Franklin Road, Suite 300 Southfield, Michigan 48034 Telephone: (248) 208-2500 STOCK TRADING INFORMATION New York Stock Exchange Ticker Symbol – SUI (Common Stock) SHAREHOLDER INFORMATION Source: S&P Global Market Intelligence © 2026 In de x Va lu e CERTAIN FILINGS The Annual CEO Certification was submitted to the NYSE pursuant to NYSE rules and guidelines without qualification on May 14, 2025. Sun Communities, Inc. has filed, as exhibits to its Annual Report on Form 10-K for the year ended December 31, 2025, the required certifications regarding the quality of its public disclosure under the applicable provisions of the Sarbanes-Oxley Act of 2002. PERFORMANCE GRAPH Set forth below is a line graph comparing the yearly percentage change in the cumulative total shareholder return on our common stock against the cumulative total return of a broad market index composed of all issuers listed on the NYSE and an industry index comprised of 20 publicly traded REITs, for the five year period ending on December 31, 2025. This line graph assumes a $100.00 investment on December 31, 2020, a reinvestment of distributions and actual increase of the market value of our common stock relative to an initial investment of $100.00. The comparisons in this table are required by the SEC and are not intended to forecast or be indicative of possible future performance of our common stock. We utilize peer group data for quantitative benchmarking against external market participants. We select our peer group based on a number of quantitative and qualitative factors including, but not limited to, revenues, total assets, market capitalization, industry, sub-industry, location, total shareholder return history, executive compensation components and peer decisions made by other companies. (1) SUI Peer Group includes: AvalonBay Communities, Inc., Camden Property Trust, CubeSmart, Equity Lifestyle Properties, Inc., Equity Residential, Essex Property Trust, Inc., Extra Space Storage Inc., Federal Realty Investment Trust, Invitation Homes Inc., Mid-America Apartment Communities, Inc., UDR, Inc. and Ventas, Inc. Sun Communities, Inc. - Total Return Performance

2025 Annual Report And Form 10-K Lakeside Crossing - South Carolina Birchington Vale - Birchington UKForest Meadows - Oregon Panama City Beach - Florida 27777 Franklin Road, Suite 300 • Southfield, Michigan 48034 www.suninc.com • NYSE: SUI Sun Communities, Inc. Headquarters United Kingdom DOMESTIC & INTERNATIONAL PRESENCE ALABAMA ARIZONA CALIFORNIA COLORADO CONNECTICUT DELAWARE FLORIDA GEORGIA ILLINOIS INDIANA KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MISSISSIPPI MONTANA NEVADA NEW HAMPSHIRE NEW JERSEY NEW YORK NORTH CAROLINA OHIO OREGON PENNSYLVANIA SOUTH CAROLINA TENNESSEE TEXAS UTAH VIRGINIA WASHINGTON WISCONSIN ONTARIO, CANADA UNITED KINGDOM

FAQ

What debt reduction did Sun Communities (SUI) report for 2025?

Sun Communities states it paid down more than $3 billion of debt in 2025. The report says proceeds from the Safe Harbor Marinas sale were used to reduce leverage and fully eliminate floating-rate debt exposure.

Did Sun Communities return capital to shareholders in 2025?

Yes. Sun returned capital via share repurchases, a special cash distribution, and an increase to its quarterly dividend. The report lists these actions but does not disclose exact repurchase or distribution amounts.

What acquisitions did Sun Communities complete in 2025?

The company acquired 14 manufactured-housing and annual RV communities within existing Sun geographies and acquired ground leases for 32 UK properties, converting those holdings to full freehold ownership.

Who joined Sun Communities as CEO and when?

Charles Young joined Sun as Chief Executive Officer and director in Oct 2025. The report lists this leadership change as part of governance updates for 2025.

When and how will Sun Communities hold its 2026 annual meeting?

The annual meeting will be held virtually on May 12, 2026 at 11:00 a.m. Eastern Daylight Time at www.virtualshareholdermeeting.com/SUI2026, per the report's meeting notice.