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what it is
Sun Communities rents out places to live, park RVs, and dock boats across the U.S., Canada, and the U.K.
how it gets paid
Last year Sun Commmunities made $2.3B in revenue. Manufactured housing sites was the main engine at $1.00B, or 43% of sales.
why it's growing
Revenue grew 2.0% last year. Growth was driven by rent escalators, and occupancy across the portfolio remained near full.
what just happened
Revenue hit $1.8B and EPS came in at $0.99 versus a $0.42 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
40/100 earnings predictability — expect surprises
15.5x trailing p/e — the market's not buying it — or you found a deal
3.4% dividend yield — cash in your pocket every quarter
2.0% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
Sun Communities rents out places to live, park RVs, and dock boats across the U.S., Canada, and the U.K.
This business wins by owning the boring real estate you do not casually move. A manufactured home site, RV site, or marina slip is sticky by default, and Sun controls 645 developed properties with 225,150 sites as of 12/31/24. Price stability is 85 out of 100, which is finance-speak for the stock usually acts less chaotic than the average drama machine.
How they make money
$2.3B
annual revenue · their business grew +2.0% last year
Manufactured housing sites
$1.00B
+10.1%
RV annual sites
$0.33B
+5.4%
RV transient sites
$0.25B
0.0%
Marinas
$0.50B
+5.4%
Other property and ancillary income
$0.22B
+2.0%
The products that matter
owns and operates land-leased communities
Manufactured Housing & RV Communities
$2.3B revenue · core asset base
it generated $2.3B in revenue last year, and manufactured housing occupancy held near 98% — the kind of fullness most landlords would trade for.
near-full occupancy
Key numbers
43.0%
operating margin
That is very high for real estate operations, which tells you the properties themselves are productive even if earnings look messy.
3.4%
dividend yield
You are getting paid while you wait, and that matters more when price upside is debated.
2.0%
return on capital
This is the problem number. It means a lot of assets are producing only a thin return.
$148
18-month target
That is the base upside case, or about 19% above the current $123.89 share price.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- net profit margin 9.8% — keeps 10 cents of every dollar in revenue
- return on equity 4% — $0.04 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in SUI 3 years ago → it's now worth $9,770.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $1.8B and EPS came in at $0.99 versus a $0.42 estimate.
The beat was real, with EPS ahead by 135.71% versus consensus. The weird part is the bigger picture: trailing EPS is $8.67, but forward EPS consensus drops to $2.25.
$1.8B
revenue
$0.99
eps
135.71%
surprise
the number that mattered
The 135.71% EPS surprise matters because it shows the quarter was far better than expected, even as full-year earnings still look inconsistent.
-
sun communities performed well in the recent third quarter.funds from operations (ffo) was $2.28 per share, above the high end of guidance, reflecting solid same-property results following the exit of the marina business earlier this year.
-
north american same-property net operating income (noi) increased 5.4%, led by manufactured housing, where noi rose 10.1% and occupancy remained near 98%.
-
in the rv segment, results were mixed, reflecting continued conversions of transient sites to annual leases, while expenses declined vs. prior year.
-
in the u.k., same-property noi increased at a mid-single-digit rate.
-
growth was driven by rent escalators, and occupancy across the portfolio remained near full.
source: SEC filing and consensus, latest quarter
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What could go wrong
the #1 risk is local zoning and land-use limits on manufactured housing expansion.
med
zoning can choke the growth runway
the core manufactured housing portfolio is already near 98% occupied. that's great for rent collection, but it means future growth depends on adding or redeveloping sites in markets that often resist new supply.
slower approvals would force more of the growth burden onto the existing $2.3B portfolio.
med
RV execution is still mixed
management is converting transient RV sites into annual leases. that should smooth cash flow, but it also reduces some upside if leisure demand stays strong and the segment does not regain momentum.
with total revenue up only 2.0% last year, weak RV results are harder to hide.
high
reported earnings are volatile enough to confuse the story
full-year EPS swung from $0.71 to -$1.20 even while quarterly FFO beat guidance. if investors focus on the wrong metric, the stock can stay cheap longer than the operating results deserve.
that mismatch is already visible in a 3-year outcome of $9,770 versus $13,920 for the index.
these are not side risks. they pressure growth across a $2.3B portfolio that is already relying on near-full occupancy to do most of the work.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
manufactured housing occupancy
98% occupancy is the foundation of the whole story. if that slips, the premium asset argument weakens fast.
trend
same-property NOI growth
north america grew 5.4%, and manufactured housing grew 10.1%. you want that spread to stay healthy enough to offset softer areas.
risk
RV lease conversion
mixed RV results matter because annual lease conversions trade upside for stability. watch whether the stability is worth the slower top-line feel.
calendar
next earnings report
the next print needs to show the same pattern again: solid FFO and NOI, not just cleaner accounting optics.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this can lag from here.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. this is a steadier name than the earnings line suggests.
chart momentum
average
technical score 3 — the stock is moving with the market. no big signal, no dramatic breakdown.
earnings predictability
40 / 100
the reported earnings line is harder to trust. that's why REIT investors spend more time on FFO and property-level NOI.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 240 buyers vs. 208 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$108
$188
$124
current price
$148
target midpoint · +19% from current · 3-5yr high: $185 (+50% · 13% ann'l return)
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