Sun Communities, Inc. (SUI): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for the real story behind the numbers at Sun Communities, Inc., and after two decades analyzing real estate investment trusts (REITs), I can tell you their 4 P's map directly to disciplined capital deployment. Honestly, it's fascinating how they blend stable, affordable manufactured housing (MH) with the high-yield recreational vehicle (RV) vacation business, all while managing over 501 properties across three countries. We see pricing power clearly, with 5% average rent increases set for 2026 MH leases, underpinning a strong FY 2025 Core FFO guidance between $6.59 and $6.67 per share, even as they strategically shift RV sites. Stick with me below, because understanding this mix-from the 99.0% North American occupancy to the $500 million buyback program-shows exactly where the near-term opportunity lies in this pure-play strategy.

Sun Communities, Inc. (SUI) - Marketing Mix: Product

The product offering from Sun Communities, Inc. centers on providing high-quality, stabilized real estate sites across distinct, yet complementary, operating platforms. As of mid-2025, the company owned interests in 500 properties spanning the United States, Canada, and the UK. This portfolio is fundamentally structured around two core North American segments and one international segment.

The core focus is pure-play Manufactured Housing (MH) and Recreational Vehicle (RV) communities. The MH segment delivers residential ground leases, which are inherently long-term and high-occupancy in nature. For the North American MH and annual RV sites combined, occupancy reached 98.4% as of September 30, 2025. The Same Property adjusted blended occupancy for these segments was even higher, hitting 99.2% at the same date. This reflects the stability of the residential product. The total number of MH and annual RV revenue-producing sites grew by approximately 1,000 sites over the first nine months of 2025. For context, the company's rental program within MH communities included 11,214 rental homes as of December 31, 2024, with an associated investment value of $783.0 million.

The RV segment, branded Sun Outdoors, provides both transient and stable annual vacation sites. The strategic direction involves converting transient RV sites into more stable, recurring annual leases. Evidence of this conversion strategy is seen in expenditures for land improvements added to annual RV sites specifically to aid in this conversion process. The overall health of the combined MH and annual RV portfolio shows consistent strength:

• MH and annual RV sites occupied at June 30, 2025: 98.1%.
• MH and annual RV sites occupied at March 31, 2025: 98.0%.
• Quarterly site additions (Q3 2025): Approximately 520 sites.
• Nine-month site additions (through Q3 2025): Approximately 1,000 sites.

Geographic diversification is provided by the UK assets, operating under the Park Holidays brand. Sun Communities, Inc. acquired Park Holidays UK for approximately $1.3 billion, or £950 million. Park Holidays is the second-largest owner and operator of holiday parks in the UK. Its product includes renting sites for owner-occupied holiday homes on annual contracts, alongside selling holiday homes. The UK platform consists of 40 owned and operated sites and an additional two managed sites.

Here's a quick look at the key product portfolio statistics as of late 2025 reporting periods:

The product development focus includes continuous reinvestment to ensure an exceptional resident and guest experience. This includes significant upfront capital into acquired communities and ongoing year-over-year reinvestment. The company also highlights expertise in development projects, ranging from large-scale infrastructure upgrades to ground-up community and resort development.

Sun Communities, Inc. (SUI) - Marketing Mix: Place

You're looking at how Sun Communities, Inc. (SUI) gets its real estate assets-its product-into the hands of its customers, which is all about strategic location and availability. This is the Place element of the marketing mix, and for a REIT like SUI, it means owning the right land in the right spots and keeping it occupied.

The physical footprint of Sun Communities, Inc. is substantial and intentionally spread across key North American and international markets. As of September 30, 2025, the Company owned, operated, or had an interest in a portfolio spanning 501 developed Manufactured Housing (MH), Recreational Vehicle (RV), and United Kingdom (UK) properties. These properties collectively comprised approximately 174,680 developed sites.

The primary geographic markets where Sun Communities, Inc. deploys its capital and manages its portfolio are:

• The United States
• Canada
• The United Kingdom

Within the United States, the distribution isn't flat; it's concentrated where demand for affordable housing and lifestyle properties is highest. You see a significant concentration in specific, high-demand US states. For instance, Florida, Michigan, Texas, and California collectively contain 63.9% of the total MH and RV sites. That's where the management focus for site selection and reinvestment definitely lands.

Capital deployment shows this strategy in action, focusing on expanding the core portfolio. Sun Communities, Inc. was actively deploying capital into existing markets, evidenced by the October 2025 acquisition. They completed the purchase of 14 properties-specifically 11 MH properties and 3 Annual RV properties-for a total cash consideration of $457.0 million. That's a clear signal about where they see near-term growth opportunities.

Availability and accessibility are measured by occupancy, and the core North American markets are running hot. The Same-property adjusted blended occupancy for North America MH and RV reached a strong 99.0% as of June 30, 2025 (the end of Q2 2025). That 99.0% figure shows you the product is exactly where the consumer needs it, when they need it.

Here's a quick look at the scale and recent activity:

The distribution strategy relies heavily on owning land in established, high-demand corridors, which helps maintain those high occupancy numbers. The active capital deployment confirms management is focused on immediately integrating accretive assets into this existing, high-performing geographic structure. It's about density in the best places, not just broad coverage.

Sun Communities, Inc. (SUI) - Marketing Mix: Promotion

Investor relations serves as a primary promotional channel for Sun Communities, Inc. (SUI), heavily emphasizing the streamlined pure-play Manufactured Housing (MH) and Recreational Vehicle (RV) narrative following the finalization of the Safe Harbor sale. The initial closing of the Safe Harbor Marinas sale to Blackstone Infrastructure yielded approximately $\mathbf{\$5.25}$ billion in pre-tax cash proceeds, with the final nine Delayed Consent Subsidiaries closing later for approximately $\mathbf{\$118}$ million. This divestiture repositions Sun Communities, Inc. (SUI) as a focused owner and operator, with the North America MH and RV portfolio expected to represent about $\mathbf{90\%}$ of the Company's Net Operating Income (NOI) post-transaction.

Market confidence is signaled through active capital deployment via the share repurchase program. Year-to-date through October 29, 2025, Sun Communities, Inc. (SUI) deployed $\mathbf{\$500.3}$ million to buy back approximately $\mathbf{4.0}$ million shares of common stock. For the third quarter of 2025 alone, the Company repurchased $\mathbf{2.3}$ million shares for a total of $\mathbf{\$297.5}$ million at an average cost of $\mathbf{\$126.92}$ per share.

The core promotional messaging to attract capital centers on stable, recurring income streams derived from long-term residents within the core portfolio. This stability is reflected in the upward revision of guidance for the core business segments. The messaging is supported by strong operational performance metrics, such as the expectation for Manufactured Housing same-property NOI growth to reach a midpoint of $\mathbf{7.8\%}$ for Fiscal Year 2025.

The overall financial outlook reinforces the stability narrative, with Same-Property Net Operating Income (NOI) growth guidance for North America being raised to $\mathbf{5.1\%}$ at the midpoint for FY 2025, which represented an increase of $\mathbf{40}$ basis points from the prior quarter's guidance. You can see a breakdown of key performance indicators that support this promotional focus below.

For the Sun Outdoors brand, the focus on digital presence aims to capture both transient and annual RV guests, aligning with a strategy to convert short-term visitors to longer-term residents. A recent partnership with Hipcamp expanded access to over $\mathbf{100}$ Sun Outdoors RV resorts, including more than $\mathbf{20}$ Jellystone Parks, specifically targeting campers seeking amenity-rich experiences. Still, the transient segment faced headwinds, with same-property transient RV revenue declining by $\mathbf{7.8\%}$ in the third quarter of 2025, which management attributed in part to the strategic conversion of transient sites to annual sites. Conversely, same-property annual RV revenue increased by $\mathbf{8.1\%}$ during the same period.

The digital engagement and RV segment performance can be summarized as follows:

• Hipcamp partnership expands access to over 100 Sun Outdoors RV resorts.
• Number of Jellystone Parks included in Hipcamp access: over 20.
• Same-property annual RV revenue growth: 8.1% in Q3 2025.
• Same-property transient RV revenue decline: 7.8% in Q3 2025.
• MH and annual RV sites occupancy: 98.4% at September 30, 2025.

Finance: review the impact of the $\mathbf{5.1\%}$ North America NOI guidance midpoint on the Q4 2025 cash flow forecast by Monday.

Sun Communities, Inc. (SUI) - Marketing Mix: Price

You're looking at the pricing structure for Sun Communities, Inc. (SUI) as we close out 2025. This isn't about setting a single sticker price; it's about the complex interplay of rental rate setting, guidance adjustments, and segment performance that dictates what customers ultimately pay across the portfolio.

The forward-looking indicators show strong pricing realization in the core business, which has led management to revise expectations upward for the full year.

Full-year 2025 Core FFO guidance was raised to a range of $6.59 to $6.67 per share. This upward revision reflects the operational strength seen through the third quarter, where Core FFO per share actually hit $2.28 for the period. That's the immediate result of effective pricing execution.

Here's a quick look at how the key forward-looking pricing and performance metrics stack up:

Pricing power is clearly evident in the Manufactured Housing (MH) segment, which is the bedrock of the recurring revenue stream. This segment is driving the overall positive revision to guidance.

• MH same-property NOI growth is robust, expected to be 7.8% at the midpoint for 2025.
• Pricing power is evident in the Manufactured Housing segment, with 2026 rent increase notices averaging approximately 5% as of the end of September.

The Recreational Vehicle (RV) segment pricing strategy reflects a deliberate shift in the customer mix, which impacts near-term NOI metrics but aims for more stable, long-term pricing power.

• Annual RV rental rates for 2026 are being set with estimated average increases of approximately 4% to prioritize retention.
• Same-property RV NOI is mixed, with a projected 1.1% decline at the midpoint, which management attributes to the ongoing transient-to-annual conversion strategy.

Finance: draft 13-week cash view by Friday.