Sun Communities reported stronger third-quarter earnings, completed its $1.03 billion UK business sale, and raised its 2026 guidance as manufactured housing continued to drive growth across its North American portfolio.
The real estate investment trust reported net income from continuing operations of $137.1 million, or $1.07 per diluted share, for the quarter ended Sept. 30, compared with a loss of $53.1 million, or $0.45 per diluted share, during the same period in 2025.
Net income attributable to common shareholders reached $120.7 million, or $1.00 per diluted share, up from $8.5 million, or $0.07 per diluted share, a year earlier. Funds from operations rose to $2.27 per share from $2.18, while core funds from operations increased to $2.35 per share from $2.28.
The company also completed the previously announced sale of its United Kingdom business in September, receiving approximately $1.03 billion in net cash consideration.
According to a press release, Chief Executive Officer Charles Young said the proceeds have primarily been used for share repurchases, along with other investment and balance sheet activities.
“We delivered another strong quarter of continued progress, with results exceeding our expectations, led by continued strength in manufactured housing,” Young said.
Operating performance remained steady across the North American portfolio. Same-property net operating income increased 3.6% during the quarter, representing a $10.4 million gain from the prior year, while same-property adjusted blended occupancy for manufactured housing and recreational vehicle communities reached 98.8%.
Portfolio occupancy for manufactured housing and annual RV sites was 98.2% at the end of September, compared with 98.4% a year earlier. The company added approximately 100 revenue-producing manufactured housing and annual RV sites during the quarter.
Sun Communities increased its outlook for 2026, forecasting core funds from operations of $7.01 per share at the midpoint. It also expects North America same-property net operating income growth between 4.9% and 5.3% for the full year.
The company established preliminary 2027 rental rate guidance, projecting 5.4% increases for manufactured housing communities and 4.4% increases for annual RV sites.
For the first nine months of 2026, net income from continuing operations totaled $197.8 million, or $1.55 per diluted share, compared with a loss of $104.8 million, or $1.37 per diluted share, during the same period in 2025. Same-property net operating income increased 5.2% over the nine-month period.
