Sun Communities Beats FFO Guidance, Repays $3.3 B Debt and Raises Distribution
Sun Communities delivered Q4 core FFO per share of $1.40, beating the high end of guidance by $0.01, while full-year FFO reached $6.68. The company repaid $3.3 billion of debt to reach 3.4x net debt/EBITDA, raised its distribution by 8%, and guided 2026 FFO to $6.83–$7.03 with ~4.5% same-property NOI growth.
1. Q4 Financial Results
Sun Communities reported Q4 core FFO per share of $1.40, topping guidance by $0.01, and delivered full-year FFO of $6.68. North American same-property NOI rose 7.9% on 5.9% revenue growth and 2.0% expense growth, with blended occupancy above 99% and manufactured housing occupancy at 98.1%.
2. Balance Sheet Transformation
In 2025, the company repaid over $3.3 billion of total debt, reducing net debt/EBITDA to 3.4x with no floating-rate exposure. It secured a $2 billion undrawn credit facility, achieved two credit rating upgrades, and ended the year with $636 million of cash.
3. Shareholder Returns
The board approved an 8% increase to the quarterly distribution, raising it by $0.08 per share, and returned over $1.5 billion to shareholders. Sun repurchased 4.3 million shares at an average price of $125.62 ($539 million), plus 456,000 shares for $57.3 million post-year-end.
4. 2026 Guidance and Outlook
For 2026, Sun guided full-year core FFO to $6.83–$7.03 per share (midpoint $6.93) and Q1 FFO to $1.28. It expects North America same-property NOI growth of approximately 4.5% (manufactured housing 5.9%, RV 0.9%), $50 million of U.K. home sales FFO, and plans RV stabilization through booking channel expansion, digital enhancements, and 600 annual conversions.