🧾 What This Document Is

This is Sun Communities' 2025 Annual Report to Shareholders. It's a combination of a shareholder letter and a summary of the key information found in their official SEC Form 10-K filing. Think of it as the company's annual "report card" and strategic update, designed to tell investors how they did and where they're headed.

🏢 What The Company Does

👉 In simple terms, Sun Communities is a real estate company that owns and operates communities for manufactured homes (MH) and recreation vehicles (RVs). It's a Real Estate Investment Trust (REIT). Imagine they own and lease out land and plots in specialized neighborhoods where people place their manufactured homes or park their RVs, either for short vacations or year-round living. They have a massive portfolio across 30 U.S. states, Canada, and the United Kingdom.

💰 Financial & Strategic Highlights of 2025

2025 was a transformative year focused on simplifying the business and strengthening finances.

• Major Asset Sale: They sold non-core assets, most notably Safe Harbor Marinas. This was a strategic move to sharpen focus on their core MH and RV business.
• Debt Paydown: They used the sale proceeds to pay down more than $3 billion of debt and, critically, fully eliminated their floating-rate debt exposure. This reduces risk from rising interest rates.
• Shareholder Returns: They returned capital to investors through share repurchases, a special cash distribution, and a meaningful increase to their quarterly dividend.
• Strategic Acquisitions: They bought 14 MH and RV communities in existing U.S. regions. In the UK, they acquired the ground leases for 32 properties, giving them full ownership of the land (freehold), which simplifies their operations.

👥 Leadership Changes

The company saw important shifts at the top:

• New CEO: Charles Young joined in October 2025 as Chief Executive Officer and board director.
• Board Update: Mark Denien was elected as a new independent director. Longtime board member Clunet Lewis will retire this year after decades of service.

📈 Performance vs. The Market

The report includes a required performance graph showing that from 2020 to 2025, Sun's stock return was compared against the NYSE composite and a peer group of 12 other major REITs. This helps shareholders see how their investment performed relative to the broader market and direct competitors.

🔮 What's Next

Looking ahead to 2026, the company's message is clear: they will stay the course. They plan to take "purposeful, measured actions" to further strengthen their core manufactured housing and RV business. The goal is to deliver reliable earnings growth by realizing the full potential of their now-simplified portfolio and platform.

⚖️ Big Picture

👍 Strengths:

• Sharpened strategic focus on core, stable residential (MH) and RV property segments.
• Significantly de-risked balance sheet by eliminating floating-rate debt.
• Strong operational execution and a clear path for future growth in their core areas.

⚠️ Risks:

• Performance is tied to the health of the broader housing and leisure/travel markets.
• As a REIT, it is sensitive to interest rate changes, though the recent debt actions mitigate this.
• Success depends on effective integration of new acquisitions and managing a large, geographically diverse portfolio.

🧠 The Analogy

Think of Sun Communities as a homeowner who owned their main house (MH & RV communities) and a fancy, expensive boat dock business (Safe Harbor Marinas) on the side. In 2025, they sold the boat dock, used the cash to pay down a huge chunk of their mortgage and switch to a fixed-rate loan, and then used some money to renovate their main house and buy a couple of rental properties next door. Now, they're focused entirely on being the best landlord on their street.

📇 Key Contacts & People

Officers & Directors:

• Charles D. Young, Chief Executive Officer and Director
• John B. McLaren, President and Chief Operating Officer
• Fernando Castro-Caratini, Executive Vice President, Chief Financial Officer, Treasurer and Secretary
• Marc Farrugia, Executive Vice President and Chief Administrative Officer
• Aaron Weiss, Executive Vice President and Chief Investment Officer
• Tonya Allen, Director
• Meghan G. Baivier, Lead Independent Director
• Jeff T. Blau, Director
• Mark A. Denien, Director
• Jerome W. Ehlinger, Director
• Brian M. Hermelin, Director
• Craig A. Leupold, Director
• Clunet R. Lewis, Director
• Gary A. Shiffman, Chairman of the Board

For Shareholder Inquiries:

• Investor Relations: (248) 208-2500
• Transfer Agent (Computershare): (800) 426-5523

Corporate Headquarters: Sun Communities, Inc. 27777 Franklin Road, Suite 300 Southfield, Michigan 48034 Telephone: (248) 208-2500 Website: www.suninc.com

🧩 Final Takeaway

Sun Communities used 2025 to hit the "reset" button: it sold off side businesses, paid down massive debt to become financially safer, and is now laser-focused on growing its core manufactured home and RV park business. The message to shareholders is one of stability, reduced risk, and a clear plan for reliable growth ahead.