Sun Communities, Inc. earnings

Management highlights

• Disciplined capital allocation: Maintaining strong balance sheet, pursuing selective value-enhancing growth opportunities, having deployed over $450 million of acquisitions in late 2025 and $60 million in share repurchases in Q1 2026, with over $1.5 billion returned to shareholders since 2025. • Optimizing operating platform: North American portfolio outperformance with same-property MH and RV NOI up 6.3%, UK segment performance in line with plan, focusing on enhancing data analytics and asset management. • Targeted investment: In communities, infrastructure, and digital capabilities to enhance resident/guest and team member experience and support data-driven decision-making.

Guidance

• Raised full-year 2026 core FFO per share guidance range to 687 - 707 with a midpoint of 697, a 4 cent increase. • Within North America, expected full-year same property NOI growth of approximately 4.7% with manufactured housing at 6.2% (up from prior guidance) and RV at 0.9% growth. • Incremental uplift driven by modest improvements in interest income, lower expected interest expense, and contributions from brokerage and other income streams.

Segment performance

North American same-property MH and RV NOI increased 6.3% in Q1. In manufactured housing, same-property NOI increased 6.3% with revenues up 6.6% driven by site rent growth. RV segment same-property NOI also increased 6.3% with revenues up 4.2% and expenses increasing by 2.3%. UK same-property NOI increased 1.6% with revenues up 5.3% and expenses in line with guidance. Core FFO per share for the quarter was $1.40, exceeding expectations.

Analyst Q&A

• Q: News articles suggested selling park holidays and about $400 million of ground leases purchased at discounts, comment on UK business.

  A: Charles said UK business is high-quality, strong team, solid asset base, performing in line with expectation, near-term focus is to maximize value through execution, strengthening performance, driving growth, maintaining cost control and flexibility.

• Q: About $2.4 billion in gross assets, what's included, development land, financing opportunities?

  A: Fernando said majority is operating assets for Park Holidays, about $1.9 billion, Park Holidays is financed against corporate credit facility, acquired ground leases give strategic and financial flexibility.

• Q: Follow-up on Park Holiday buying asset, how it fits and reaction to buying?

  A: Aaron said acquired Kingfisher is complementary to existing assets, de minimis from overall investment but enhances growth opportunity, will assess value-optimizing opportunities.

• Q: Expense savings focus, how far through process?

  A: John said expense discipline is core, always looking for efficiencies in expense categories, procurement platform growing.

• Q: FFO guidance beat, why outperformance not read forward more?

  A: Brad was told first quarter has lower contribution to rest of year, being prudent with guidance increase as RV contribution higher in summer months.

• Q: GNA on income statement, comparable 1Q number and comfort hitting guide?

  A: Fernando said majority of ad back activity related to executive leadership transitions, non-recurring, 1Q GNA was about $61 million, comparable would be $51 million.

• Q: Stock buybacks, why not buy back more, stock buybacks rank in capital allocation priorities?

  A: Charles said capital allocation is to allocate where generates best long-term risk-adjusted returns, balanced approach, will use tools thoughtfully for shareholder value.

• Q: Acquisition opportunities in MH, RV, market conditions?

  A: Aaron said challenging to acquire high-quality MH and annual RV communities, focused on assets overlaying with operational platform, pipeline reasonably strong, MH opportunities in low to mid 4% cap rate range.

• Q: Focus to enhance data analytics, early wins, opportunity in MH, RV annuals, transient?

  A: Charles said focus on unified digital backbone, ERP implementation gives more real-time data, early wins, John added data unlocking better conversion of prospect funnels, RV booking platform heat maps inform revenue management.

• Q: Long-term lease termination losses, explain?

  A: Fernando said lease termination charge relates to acquiring long-term lease in UK, non-cash accounting charge, nothing to do with asset operations.

• Q: Acquisition opportunities in UK, competition, cap rate, EBITDA multiple?

  A: Aaron said highly selective, view recent acquisition as one-off, cap rates and yields in UK higher than USFMH, underwriting targets higher.

• Q: Macro challenges in UK, impact on domestic vacations, home sales?

  A: John said macro challenging, but local vacations leading to positive short-term stays, which may lead to more home sales down the road.

• Q: Revenue from real property for North America, drivers of guidance raise, occupancy vs rates?

  A: Explained raise expectations unchanged from October, MH guidance increase, RV expected to catch up, modeling occupancy gain from sites.

• Q: Expense side, guidance midpoint change, insurance market thoughts?

  A: John said expense growth in line with expectations, higher growth items due to colder winter, real estate taxes, offsets on utilities, insurance expectations embedded in full-year guidance.

• Q: Home sales in UK, tweaks to drive sales, occupancy?

  A: John said strategy to shift revenue mix to drive more real property income, occupancy dip from new expansion sites built last quarter.

• Q: CFO search update?

  A: Charles said conducting thorough search, engaged third party, moving with urgency but not rushing, strong continuity in finance organization.

• Q: RV revenue producing site net gain down, driver, offsetting pressure?

  A: John said due to timing strategy for new RV annuals in 2026, focus on retention, pace on renewals ahead of Q1 expectations.

• Q: Annual RV same-store revenue growth, driver, tailwind for rest of year?

  A: Explained additional income from fewer discounts, fee income, potential tailwind but being thoughtful about remainder of year.

• Q: Expected deceleration in North American NOI growth from 1Q to 2Q, reason?

  A: John said related to comp perspective, RV portfolio transient RV revenue decline in 1Q was better comp for 401Q, guide for 2Q expects above 4% growth with MH at 6.5% and RV at 2% decline.

• Q: Share of G&A load attributable to Park Holidays?

  A: Fernando said estimate high $30 million contribution from full-year perspective.

• Q: RV guide, comps, expected ramp in transient revenue growth?

  A: John said expectations unchanged, 1Q transient RV revenue decline, full-year guidance at midpoint 1.9% decline, second quarter expecting about 3.7% moderation.

• Q: Road to housing bill, removal of permanent chassis requirement, impact on communities, capital allocation?

  A: Charles said supportive of housing affordability, industry part of solution, John said removal of chassis requirement creates opportunities for cost savings, affordable housing, appealing designs to locals.

• Q: What's being done with UK, options on the table?

  A: Charles said continually evaluate portfolio to create long-term shareholder value, UK is high-quality business, strong team, executing well, focus on maximizing value through execution.

• Q: UK occupancy slip in quarter, visibility on second and third quarters?

  A: John said occupancy dip from new expansion sites built last year.

• Q: Northeast sites shifted from annual to transient, relation to RV renewals, forward booking trends for summer?

  A: John said encouraged by current pacing and trends but still early in year, will provide more color as things progress.

• Q: Municipality approval in Texas and Kentucky, impact on expansion/development opportunities?

  A: John said need for meaningful work between federal and local, optimistic but marginal improvement, interested in impact of chassis removal on local approvals.

• Q: Guidance increase, conservatism in rest of year?

  A: John said remaining thoughtful about relative contribution, RV contribution in first quarter only 16% of full-year, some additional expenses or performance changes for remainder of year.

• Q: Follow-up on guidance beat, offset in rest of year?

  A: John said outperformance in manufactured housing, small outperformance in RV, guidance increase for MH, RV guidance same, some outperformance in seasonally higher contribution orders.