SUI · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

SUN COMMUNITIES INC · 2026-04-28 · Importance 85 · Surprise 92

The company states it is exposed to interest rate variability from floating-rate debt and maturing debt that must be refinanced. Management attributes a year-over-year decrease in interest expense (down $43.7 million) primarily to the settlement of $3.2 billion in debt obligations in 2025 using proceeds from the Safe Harbor Sale. As of March 31, 2026, 100% of the company's total debt was fixed-rate, with a weighted average interest rate of 3.37% and a weighted average maturity of 6.8 years. Management warns that increases in interest costs or adverse market conditions could materially affect borrowing costs and refinancing options going forward.

Key facts

• Interest expense for the three months ended March 31, 2026 was $38.4 million compared to $82.1 million in 2025, a decrease of $43.7 million or 53.2%.
• As of March 31, 2026, 100% of Sun Communities' total debt was fixed rate financing.
• GTSC debt bears interest at a variable rate based on Commercial Paper or adjusted SOFR plus a margin ranging from 1.65% to 2.5% per annum and matures on December 15, 2026.
• As of March 31, 2026, Sun Communities' debt had a weighted average interest rate of 3.37% and a weighted average maturity of 6.8 years.
• Sungenia JV debt bears interest at a variable rate based on the Australian BBSY rate plus a margin ranging from 0.95% to 1.4% per annum and matures on June 30, 2027.
• The filing lists our ability to obtain or refinance maturing debt as a risk factor.
• The filing lists increases in interest rates and operating costs, including insurance premiums, real estate taxes, and utilities, as a risk factor.

Impact estimates