Sun Communities SUI Q2 2025 Earnings Transcript

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Tue, December 23, 2025 astatine 11:21 AM CST 33 min read

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July 31, 2025, 2 p.m. ET

• Chairman of the Board and Former Chief Executive Officer — Gary A. Shiffman

• President and Chief Operating Officer — John Bandini McLaren

• Chief Financial Officer and Executive Vice President — Fernando Castro-Caratini

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Gary A. Shiffman: Good afternoon, and convey you for joining america to reappraisal Sun Communities' 2nd 4th 2025 results and updated afloat twelvemonth outlook. This was a pivotal 4th for Sun arsenic we completed the antecedently announced merchantability of Safe Harbor Marinas and repositioned Sun arsenic a pure-play proprietor and relation of manufactured lodging and RV communities. I americium pleased with our fiscal results and operational show arsenic we execute connected our strategy to present consistent, reliable net growth. We person taken deliberate steps to streamline operations, unlock meaningful fiscal flexibility and heighten shareholder value. During the quarter, we paid down astir $3.3 cardinal of debt, inclusive of prepayment costs, materially improving our equilibrium expanse position.

And since closing connected the Safe Harbor transaction, we returned implicit $830 cardinal to shareholders done a peculiar currency organisation and stock repurchases. Additionally, we accrued our regular yearly organisation complaint by implicit 10%. We person besides made important headway identifying acquisition opportunities utilizing 1031 proceeds. We are evaluating opportunities to get manufactured lodging properties successful beardown markets with charismatic supply-demand dynamics. We proceed to marque advancement connected the delayed consent properties related to the Safe Harbor transaction. In May and June, we successfully closed connected 6 of these properties and are moving done last authorities approvals for the remaining 9. Turning to our operational performance. We are pleased with the spot of our manufactured lodging and yearly RV businesses.

Sun reported halfway FFO per stock of $1.76 for the quarter, exceeding the precocious extremity of guidance. Total North American same-property NOI grew 4.9% successful the 2nd quarter, driven chiefly by the continued maturation and stableness of our manufactured lodging portfolio arsenic good arsenic the payment of our ongoing outgo savings initiatives and greater ratio astatine the disbursal level. We judge this demonstrates the resilience of our halfway concern and the spot of our portfolio. As announced past week, Charles Young has been appointed arsenic Sun Communities' adjacent Chief Executive Officer and Board member, pursuing a thorough hunt process. Charles is simply a seasoned and highly respected person with implicit 25 years of acquisition crossed existent property operations, concern and strategy.