SUI · 10-Q · 2026Q1 · Full report

Acquisition / Partnership / Divestiture

SUN COMMUNITIES INC · 2026-04-28 · Importance 44 · Surprise 24

In Q1 2026 the company acquired one MH property and one UK property for total cash consideration of $27.6 million, partially funded from 1031 exchange escrows. The company had $9.6 million of restricted cash allocated into 1031 exchange escrow accounts as of March 31, 2026 to fund potential future MH and RV acquisitions. Management continues to selectively pursue acquisitions that meet underwriting criteria and may finance transactions using cash, draws on the Senior Credit Facility, assumption of property debt, or issuance of debt/equity.

Key facts

• Income from nonconsolidated affiliates for the three months ended March 31, 2026 was $6.1 million compared to $3.0 million in 2025, primarily due to increased performance of the Sungenia JV.
• Through March 31, 2026, Sun Communities acquired one MH property and one UK property for total cash consideration of $27.6 million, partially sourced from 1031 exchange escrow accounts.
• Sungenia JV maintains a debt facility with maximum borrowing capacity of 54.1 million Australian dollars (converted to $37.9 million at March 31, 2026 exchange rate) and as of March 31, 2026 the aggregate carrying amount of debt was $21.9 million, of which Sun Communities' proportionate share is approximately $11.0 million.
• During 2025, the Safe Harbor Sale advanced the company's strategy and enhanced its leverage profile and financial flexibility.
• The filing lists difficulties in our ability to evaluate, finance, complete, and integrate acquisitions, developments, and expansions successfully as a risk factor.

Impact estimates