SUI · 10-Q · 2026Q1 · Full report

Credit Agreement and Covenants

SUN COMMUNITIES INC · 2026-04-28 · Importance 71 · Surprise 60

In September 2025 the company entered into a Credit Agreement providing a Senior Credit Facility with $2.0 billion capacity and an accordion for an additional $1.0 billion, maturing January 31, 2030 with two optional six‑month extensions. As of March 31, 2026 there were no borrowings under the Senior Credit Facility. Key financial covenants reported as of March 31, 2026 include maximum leverage ratio <65% (actual 18.8%), minimum fixed charge coverage ratio >1.40 (actual 4.43), and maximum secured leverage ratio <40% (actual 10.1%); related covenants for senior unsecured noteholders (e.g., total debt to total assets ≤60%) were also comfortably met. Management states it is in compliance with covenants and does not anticipate near-term covenant issues, but notes market conditions (rates, currencies, equity valuations, inflation) could affect future access to attractive financing.

Key facts

• Pursuant to the Credit Agreement entered in September 2025, Sun Communities may borrow up to $2.0 billion under the Senior Credit Facility with an additional $1.0 billion available subject to conditions.
• As of March 31, 2026, Sun Communities was in compliance with the Senior Credit Facility financial covenants including a maximum leverage ratio requirement of less than 65.0% with an actual ratio of 18.8%.
• As of March 31, 2026, Sun Communities' minimum fixed charge coverage ratio covenant requirement was greater than 1.40 and the actual ratio was 4.43.
• As of March 31, 2026, Sun Communities' maximum secured leverage ratio covenant requirement was less than 40.0% and the actual ratio was 10.1%.
• As of March 31, 2026, the total debt to total assets covenant related to the senior unsecured notes payable had a requirement of ≤60.0% and Sun Communities' actual ratio was 27.0%.
• As of March 31, 2026, the secured debt to total assets covenant requirement was ≤40.0% and Sun Communities' actual ratio was 15.6%.
• As of March 31, 2026, consolidated income available for debt service to debt service covenant requirement was ≥1.50 and Sun Communities' actual ratio was 7.14%.
• As of March 31, 2026, unencumbered total asset value to total unsecured debt covenant requirement was ≥150.0% and Sun Communities' actual ratio was 693.3%.