Sun Communities, Inc. (SUI) reported fourth‑quarter and full‑year 2025 results on February 24, 2026, posting net income per diluted share of $0.99 and core funds from operations (FFO) per share of $1.40 for the quarter. Full‑year core FFO reached $6.68, driven by a 7.9% increase in North America same‑property net operating income (NOI) in Q4 and a 5.7% year‑over‑year rise for the full year.
The company completed the acquisition of 14 manufactured‑housing and recreational‑vehicle communities for $457 million during the quarter and returned more than $1.5 billion to shareholders through cash distributions and share repurchases. In addition, SUI announced a new quarterly distribution rate of $1.12 per share, an 8% increase over the prior rate of $1.04.
Management raised its 2026 full‑year core FFO guidance to a range of $6.83 to $7.03, with a midpoint of $6.93. The company projects North America same‑property NOI growth of 4.5% at the midpoint and UK same‑property NOI growth of 2.2% at the midpoint, reflecting confidence in continued demand for its affordable‑housing platform and the momentum generated by recent acquisitions.
Core FFO per share beat the consensus estimate of $1.36–$1.37, a margin of $0.03–$0.04 per share, largely due to the 7.9% NOI growth and the cost discipline achieved during the acquisition of new communities. Revenue of $515.2 million exceeded the $504.26 million estimate, driven by strong demand across the company’s portfolio. The article’s implied EPS estimate of $1.37 was incorrect; the GAAP EPS was $0.99, consistent with the company’s prior‑period loss of $1.77 per diluted share in Q4 2024 and a net income of $0.71 per diluted share for the full year 2024.
CEO Charles Young said, "Our North America Same Property NOI increased 7.9% in the fourth quarter, reflecting strong underlying fundamentals across our portfolio." He added, "During 2025, we invested more than $450 million to acquire high‑quality communities and returned over $1.5 billion to our shareholders. Our strategic transformation has created a focused platform positioned to benefit from demand for affordable housing."
Investors responded cautiously, with valuation concerns tempering enthusiasm for the strong results. The guidance upgrade signals management’s confidence in future performance, but the market’s muted reaction reflects the high valuation multiples already priced into the stock.
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