Sun Communities (SUI) AI Stock Analysis

• Market Cap: $16.15B
• Dividend Yield: 6.34%
• Average Volume (3M): 942.89K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.17
• Revenue Growth: -20.69%
• EPS Growth: 330.60%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.99
• Shares Outstanding: 123,184,630
• 10 Day Avg. Volume: 896,442
• 30 Day Avg. Volume: 942,889
• PEG Ratio: <0.01
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 6.71
• P/FCF Ratio: 17.91
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 7.55
• Enterprise Value/Gross Profit: 14.74
• Enterprise Value/Ebitda: 24.39
• 1Y Price Target: $143.17
• Price Target Upside: 9.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): $2.30B

• Rating: 70 Outperform
• Price Target: $150.00 ▲(14.40% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily driven by mixed financial performance (solid cash generation and improved leverage, but volatile earnings and recent revenue softness). Technical momentum and an attractive valuation (low P/E and high yield) provide meaningful support, while the earnings call was constructive but tempered by RV transient and UK cost headwinds; leadership updates are a modest positive.

Positive Factors

High recurring rental income & occupancy

A rental-driven portfolio with very high manufactured-housing occupancy creates durable, predictable cash flows and low churn. High site occupancy and rental NOI concentration support steady FFO, dividend coverage, and the ability to modestly increase rents over time, underpinning long-term resilience.

Material balance-sheet strengthening & liquidity

Substantial debt paydown, conservative leverage, ample liquidity and investment-grade ratings materially improve financial flexibility. Lower interest-rate exposure and long maturities reduce refinancing risk, enabling disciplined capital deployment, opportunistic acquisitions, and sustained shareholder distributions over the medium term.

Large, diversified portfolio and active capital recycling

Scale across MH, RV and marinas plus active portfolio optimization (dispositions and targeted acquisitions, converting ground leases to freehold) enhances pricing power, geographic diversification and asset quality. Disciplined recycling supports long-term NOI growth and return-on-capital improvement.

Negative Factors

Revenue softness and volatile earnings quality

Material swings in top-line and reliance on non-operating gains undermine the reliability of reported earnings. When core revenue and cash-backed earnings diverge, forecasting FFO and dividend sustainability becomes harder, increasing execution risk for growth investments and payout commitments over the medium term.

Persistent RV transient demand weakness

Structural softness in transient RV demand creates a drag on revenue and margins that conversion initiatives may only gradually offset. Reliance on converting transient to annual stays necessary, but slower recovery limits segment-level cash generation and restrains consolidated NOI growth until demand normalizes.

UK operating headwinds and impairment risk

Rising payroll costs and softer sales in the UK compress margins and increase the risk of further impairments. Continued review and potential write-downs would reduce asset values and future income from the region, forcing management to allocate capital defensively and potentially dent consolidated returns.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. is a REIT that, as of March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots within its manufactured housing and RV communities. Key revenue streams include rental income from long-term residents who lease lots for their manufactured homes, as well as short-term rental income from visitors to its RV parks. Additionally, the company earns revenue from property management services, sales of manufactured homes, and ancillary services such as utility billings and retail operations within its communities. Significant partnerships with home manufacturers and seasonal rental agencies also contribute to its earnings, enhancing its capacity to attract residents and visitors alike.

Sun Communities Financial Statement Overview

Summary

Stable, consistently positive operating cash flow and improved 2025 leverage are positives, but revenue has recently flattened/declined and reported profitability is highly volatile with signs of non-operating items influencing results and weaker cash-to-earnings coverage in 2025.

Income Statement

Revenue expanded strongly from 2020–2022, then flattened in 2023–2024 and declined meaningfully in 2025. Profitability is volatile: 2023 posted a loss, 2024 showed thin earnings, and 2025 shows unusually high net income and margin relative to operating profit (EBIT), suggesting results are being heavily influenced by non-operating items. Gross margin appears strong in 2025, but the sharp year-to-year swings reduce confidence in underlying earnings quality and consistency.

Balance Sheet

Leverage improved sharply in 2025 with debt-to-equity dropping well below prior years, which is a material balance-sheet positive. However, 2021–2024 reflect a more levered profile (roughly near or above 1x debt-to-equity), typical for a REIT but still a risk factor during periods of weaker growth. Returns on equity were weak/negative in 2023–2024 and rebound strongly in 2025, but the same volatility seen in earnings suggests returns may not be stable.

Cash Flow

Operating cash flow is consistently positive and relatively stable across the period, supporting the durability of the business model. Free cash flow growth is modest and turns slightly negative in 2025, but cash generation remains solid in absolute terms. A key watch item is that operating cash flow is low versus accounting earnings in 2025 (coverage meaningfully weaker than prior years), implying earnings may be less cash-backed in the most recent year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.31B	3.20B	3.18B	2.93B	2.26B
Gross Profit	213.50M	1.50B	1.49B	1.42B	1.15B
EBITDA	683.80M	1.10B	771.60M	1.11B	1.10B
Net Income	1.37B	89.00M	-213.30M	242.00M	380.20M
Balance Sheet
Total Assets	12.52B	16.55B	16.94B	17.08B	13.49B
Cash, Cash Equivalents and Short-Term Investments	636.10M	47.40M	29.20M	200.10M	252.70M
Total Debt	1.83B	7.35B	7.78B	7.13B	5.60B
Total Liabilities	5.33B	9.36B	9.77B	9.20B	6.76B
Stockholders Equity	7.07B	7.08B	7.08B	7.81B	6.62B
Cash Flow
Free Cash Flow	864.20M	888.80M	807.90M	752.20M	770.50M
Operating Cash Flow	864.20M	888.80M	807.90M	752.20M	770.50M
Investing Cash Flow	4.93B	-295.20M	-935.00M	-3.08B	-2.35B
Financing Cash Flow	-5.22B	-571.60M	78.40M	2.35B	1.57B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 131.12 is below the 20-day moving average (MA) of 134.62, above the 50-day MA of 129.91, and above the 200-day MA of 126.23, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELS	74 Outperform	$13.07B	30.17	22.12%	3.29%	0.61%	2.42%
SUI	70 Outperform	$16.15B	11.27	19.27%	6.34%	-20.69%	330.60%
ESS	69 Neutral	$16.42B	25.08	12.02%	3.98%	6.92%	53.76%
MAA	68 Neutral	$14.92B	36.36	7.64%	4.42%	0.91%	6.55%
AMH	66 Neutral	$10.24B	26.26	6.35%	3.81%	7.63%	23.16%
CPT	66 Neutral	$13.77B	19.02	8.50%	3.90%	1.41%	-21.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sun Communities Corporate Events

Sun Communities Names John McLaren Chief Operating Officer

On March 9, 2026, Sun Communities, Inc. appointed its current president, John B. McLaren, as chief operating officer, expanding his remit to direct oversight of the operations team and marking a return to a role he previously held from 2008 to 2022. The company simultaneously entered into an amended and restated three-year employment agreement with McLaren, detailing a $600,000 base salary, performance-based cash bonuses, equity-vesting protections, severance and change-in-control benefits, and a three-year non-compete, while announcing the departure of former COO Bruce D. Thelen to pursue other opportunities.

The new employment terms provide McLaren with substantial severance multiples, accelerated vesting of certain equity awards, and continued health benefits in the event of termination without cause, resignation for good reason, death, disability, or qualifying change in control. These arrangements underscore Sun Communities’ effort to secure experienced operational leadership and maintain continuity at the top of its management structure during potential strategic or ownership shifts, with implications for governance, succession planning, and long-term incentive alignment for senior executives.

The most recent analyst rating on (SUI) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Issues 2026 Outlook and Risk Update

Sun Communities, Inc., a real estate investment trust listed on the NYSE under the ticker SUI, is a leading owner and operator of manufactured housing and recreational vehicle communities, as well as UK holiday parks. As of December 31, 2025, the company controlled about 179,000 sites across 513 communities, focusing on high-occupancy, rental-driven portfolios in the U.S., Canada, the U.K. and Australia.

The business generates roughly 92% of its net operating income from rental income, with manufactured housing contributing about 65% of real property NOI, and maintains high occupancy above 97% in its core segments. It emphasizes affordable residential and destination communities, backed by a low-leverage, investment-grade balance sheet and a track record of steady same-property NOI and rental rate growth over the past decade.

Sun Communities released an investor presentation on February 25, 2026, outlining its operating performance, portfolio mix and financial guidance for 2026. The materials highlight resilient real property operations, robust long-term growth in manufactured housing and RV rental rates, and continued sensitivity to macroeconomic, capital markets and regulatory risks that could affect liquidity, refinancing, occupancy and real estate taxation.

The company underscored extensive risk factors ranging from interest rate and cost inflation to natural disasters, regulatory changes and foreign exchange swings, signaling ongoing exposure despite its strong fundamentals. It also cautioned that its financial and operational guidance for 2026 is based on current assumptions and completed transactions only, and may differ materially from actual results due to these uncertainties.

The most recent analyst rating on (SUI) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Names Interim CFO Amid Leadership Transition

On February 4, 2026, Sun Communities appointed former long-time finance executive Fernando Castro-Caratini as interim Chief Financial Officer, Executive Vice President, Secretary and Treasurer, while launching a broad search for a permanent CFO. Castro-Caratini, who previously served in the same roles and held senior finance and capital markets positions at the company and Citigroup, rejoined under a Transition Services Agreement effective February 4, 2026, that secures his services through February 28, 2027, with structured salary, performance-based bonuses, a tenure bonus, and potential severance, signaling an emphasis on leadership continuity and financial stability.

The appointment followed the same-day mutual departure of Mark E. Patten from the CFO, Executive Vice President, Secretary and Treasurer roles, with the company stating his exit did not stem from any disagreement over financial policies, accounting practices, or disclosures. In connection with his separation, Sun Communities agreed to pay Patten $3 million in separation payments, underscoring an orderly transition intended to avoid disruption in financial oversight and reassure investors and other stakeholders about the company’s governance and reporting processes.

The most recent analyst rating on (SUI) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Appoints New Chief Financial Officer

On December 16, 2025, Sun Communities announced the appointment of Mark E. Patten as Chief Financial Officer, effective January 5, 2026, succeeding Fernando Castro-Caratini, who will transition to an advisory role. Patten brings over 35 years of experience in finance leadership roles within the REIT and professional services sectors, which is expected to support Sun Communities in advancing its strategic and financial priorities, driving sustainable growth, and ensuring a smooth transition.

The most recent analyst rating on (SUI) stock is a Hold with a $138.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.