Sun Communities Posts $2.35 Core FFO, 7 Cents Above Prior Guidance Midpoint

Sun Communities, Inc. posted third-quarter Core funds from operations (Core FFO) of $2.35 per share, 7 cents above its earlier company guidance midpoint, as revenue from continuing operations edged higher year over year. The quarter ended Sept. 30.

Revenue from continuing operations totaled $558.2 million, up 0.4% from $555.9 million a year earlier. Net income from continuing operations was $137.1 million, or $1.07 per diluted share. The company announced the results Oct. 26 at 4:08 p.m. ET (20:08 UTC).

Regular funds from operations (FFO) was $2.27 per share. FFO is a non-GAAP measure used by real estate investment trusts, and Sun’s Core FFO adjusts that measure for selected items the company considers unrelated to its core business. Discontinued operations contributed $0.32 per share to Core FFO and $0.29 per share to regular FFO.

Those discontinued operations included Sun’s former U.K. business, which it sold Sept. 22 for about $1.03 billion in net proceeds. The sale was completed before the quarter ended.

Same-property net operating income increased 3.6% year over year, a gain of $10.4 million. Same-property adjusted blended occupancy for manufactured housing and recreational vehicle properties was 98.8% as of Sept. 30, down 0.5 percentage point from a year earlier.

Sun updated its 2026 Core FFO guidance to $6.97 to $7.05 per share, a midpoint of $7.01. Its 2026 outlook also calls for North American same-property net operating income growth of 4.9% to 5.3%. Preliminary average rental-rate guidance for 2027 is an increase of 5.4% for manufactured housing and 4.4% for annual RV.

“We delivered another strong quarter of continued progress, with results exceeding our expectations, led by continued strength in manufactured housing,” Chief Executive Officer Charles Young said.