Sun Communities beats its own Q3 forecast and turns UK sale proceeds into buybacks

Sun Communities said Monday that its third quarter beat its own expectations, led by manufactured housing. The REIT also used proceeds from the sale of its UK business to buy back stock.

Core funds from operations were $2.35 per share, up from $2.28 a year earlier, according to the company's earnings release filed with the SEC. Net income attributable to common shareholders was $1.00 per diluted share, compared with $0.07, and $1.07 from continuing operations.

"In September, we completed the sale of our UK business and have been disciplined in putting the proceeds to work primarily repurchasing shares, along with other investment and balance sheet activity," CEO Charles Young said in the release.

UK exit and buybacks

The UK sale brought in net cash of about $1.03 billion. During the quarter, Sun repurchased about 2.4 million shares at an average of $119.24, or $293.3 million in total. It bought back about 0.7 million more shares from Oct. 1 through Oct. 23.

Operations

Same property NOI grew 3.6% in the quarter. Adjusted blended occupancy for manufactured housing and RV sites in the same property portfolio was 98.8%. Overall, manufactured housing and annual RV sites were 98.2% occupied at Sept. 30, compared with 98.4% a year earlier.

Outlook

Sun updated its 2026 guidance. It now expects Core FFO of $7.01 per share at the midpoint and North America same property NOI growth of 4.9% to 5.3%.

It also gave a preliminary 2027 outlook for rent increases: an average of 5.4% for manufactured housing and 4.4% for annual RV sites. Young said those increases are above 2026 levels.

By the numbers

• Q3 Core FFO per share: $2.35, versus $2.28
• Q3 same property NOI growth: 3.6%
• UK sale net cash: about $1.03 billion
• Q3 buybacks: $293.3 million
• 2026 Core FFO midpoint: $7.01

Sources

1. Sun Communities, Inc., Form 8-K with third quarter 2026 earnings release, filed Oct. 26, 2026 (accession 0000912593-26-000272)

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