SUI · 10-Q · 2026Q1 · Full report
Operating Expense Trends
SUN COMMUNITIES INC · 2026-04-28 · Importance 73 · Surprise 66
General and administrative expense increased to $69.5 million in Q1 2026 from $57.0 million in Q1 2025, a $12.5 million (21.9%) increase primarily due to $8.9 million of accelerated share-based compensation and $5.1 million of severance related to executive leadership transitions. Same Property operating expenses increased $5.5 million (5.2%), driven by higher payroll and benefits (+$1.2 million, 4.2%), real estate taxes (+$2.1 million, 8.7%), and supplies and repairs (+$2.3 million, 15.3%). These expense drivers partially offset revenue gains and contributed to total Same Property NOI growth of $13.6 million (6.3%).
Key facts
- Accelerated share-based compensation expense in the three months ended March 31, 2026 was $8.9 million and severance costs were $5.1 million related to executive leadership transitions.
- General and administrative expense for the three months ended March 31, 2026 was $69.5 million compared to $57.0 million in 2025, an increase of $12.5 million or 21.9%.
- Asset impairments for the three months ended March 31, 2026 were $0.3 million compared to $24.0 million in 2025, a decrease of $23.7 million or 98.8%.
- Same Property operating expenses for MH and RV combined increased $5.5 million or 5.2% to $111.5 million for the three months ended March 31, 2026 from $106.0 million in 2025.
- Depreciation and amortization for the three months ended March 31, 2026 was $132.5 million compared to $123.7 million in 2025, an increase of $8.8 million or 7.1%.
- Same Property supplies and repairs increased $2.3 million or 15.3% to $17.3 million for the three months ended March 31, 2026 from $15.0 million in 2025.
- UK Same Property operating expenses increased $1.3 million or 7.3% to $20.2 million for the three months ended March 31, 2026 from $18.9 million in 2025 on a constant currency basis.
- Same Property payroll and benefits expense increased $1.2 million or 4.2% to $31.5 million for the three months ended March 31, 2026 from $30.3 million in 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +4.7% | Asset impairments for the three months ended March 31, 2026 were $0.3 million compared to $24.0 million in 2025, a decrease of $23.7… |
| operating_income | negative | realized | -2.5% | General and administrative expense for the three months ended March 31, 2026 was $69.5 million compared to $57.0 million in 2025, an… |
| operating_income | negative | realized | -1.7% | Depreciation and amortization for the three months ended March 31, 2026 was $132.5 million compared to $123.7 million in 2025, an increase… |
| operating_income | negative | realized | -1.1% | Same Property operating expenses for MH and RV combined increased $5.5 million or 5.2% to $111.5 million for the three months ended March… |
| operating_income | negative | realized | -0.5% | Same Property supplies and repairs increased $2.3 million or 15.3% to $17.3 million for the three months ended March 31, 2026 from $15.0… |
| operating_income | negative | realized | -0.4% | Same Property real estate taxes increased $2.1 million or 8.7% to $26.3 million for the three months ended March 31, 2026 from $24.2… |
| operating_income | negative | realized | -0.3% | UK Same Property operating expenses increased $1.3 million or 7.3% to $20.2 million for the three months ended March 31, 2026 from $18.9… |
| operating_income | negative | realized | -0.2% | Same Property payroll and benefits expense increased $1.2 million or 4.2% to $31.5 million for the three months ended March 31, 2026 from… |