SUN COMMUNITIES INCSUI
SUN COMMUNITIES INC Debt Disclosure
7. Debt and Line of Credit
The following table sets forth certain information regarding debt, including premiums, discounts and deferred financing costs (in millions, except for statistical information):
| Carrying Amount at December 31, | Weighted Average Years to Maturity at December 31, | Weighted Average Interest Rates at December 31, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Secured Debt | |||||||||||||||||||||||||||||||||||
Mortgage loans payable(1) | $ | 2,429.0 | $ | 3,212.2 | 8.5 | 8.3 | 3.634 | % | 3.991 | % | |||||||||||||||||||||||||
Secured borrowings on collateralized receivables(2) | 43.2 | 51.2 | 12.3 | 13.2 | 8.538 | % | 8.575 | % | |||||||||||||||||||||||||||
| Total Secured Debt | 2,472.2 | 3,263.4 | |||||||||||||||||||||||||||||||||
| Unsecured Debt | |||||||||||||||||||||||||||||||||||
Senior unsecured notes(3) | 1,786.5 | 2,676.3 | 5.1 | 6.0 | 2.901 | % | 3.778 | % | |||||||||||||||||||||||||||
Line of credit | — | 1,413.1 | 0.0 | 1.4 | — | % | 4.744 | % | |||||||||||||||||||||||||||
| Total Unsecured Debt | 1,786.5 | 4,089.4 | |||||||||||||||||||||||||||||||||
| Total Debt | $ | 4,258.7 | $ | 7,352.8 | 7.1 | 6.2 | 3.376 | % | 4.090 | % | |||||||||||||||||||||||||
(1)Balances at December 31, 2025 and 2024 include $9.6 million and $15.2 million of deferred financing costs, respectively.
(2)Balances at December 31, 2025 and 2024 include fair value adjustments of $3.8 million and $3.9 million, respectively.
(3)Balances at December 31, 2025 and 2024 include $4.2 million and $6.3 million of net debt discount, respectively, and $9.3 million and $17.4 million of deferred financing costs, respectively. Weighted average interest rates include the impact of hedge activity.
Secured Debt
Mortgage term loans
During the years ended December 31, 2025 and 2024, we repaid the following mortgage term loans (in millions, except for statistical information, all loans were paid off on or before their respective maturity dates):
| Period | Repayment Amount | Weighted Average Interest Rate | Maturity Date | Number of Properties by which Debt was Secured | Loss on Extinguishment of Debt | |||||||||||||||||||||||||||
| Three months ended June 30, 2025 | $ | 691.8 | (1) | 5.346 | % | February 13, 2026 - September 10, 2044 | 44 | $ | 45.9 | |||||||||||||||||||||||
| Three months ended March 31, 2025 | $ | 48.4 | 4.013 | % | February 01, 2025 - March 31, 2025 | 5 | $ | — | ||||||||||||||||||||||||
| Three months ended December 31, 2024 | $ | 119.4 | 4.041 | % | December 1, 2024 - February 6, 2025 | 12 | $ | — | ||||||||||||||||||||||||
| Three months ended September 30, 2024 | $ | 93.5 | (2) | 4.096 | % | December 1, 2024 - January 15, 2044 | 7 | $ | 0.8 | |||||||||||||||||||||||
(1)We settled $737.7 million of secured mortgage debt, inclusive of $45.9 million of prepayment costs and deferred financing cost write offs, resulting in a repayment of $691.8 million of net secured mortgage debt.
(2)Includes six mortgage term loans, which included two mortgage term loan payoffs and partial pay downs on four pooled mortgage term loans, that were secured by seven properties. The repayments occurred in conjunction with the disposition of real estate assets. Refer to Note 3, "Real Estate Acquisitions and Dispositions," for additional information.
During the year ended December 31, 2025, we did not enter into any mortgage term loans.
The mortgage term loans, which total $2.4 billion as of December 31, 2025, are secured by 110 properties representing approximately $1.8 billion of net book value.
Secured Borrowings on Collateralized Receivables
Refer to Note 1, "Significant Accounting Policies," for information on secured borrowings on collateralized receivables.
Unsecured Debt
Senior Unsecured Notes
The following table sets forth certain information regarding our senior unsecured notes (in millions, except for statistical information). All senior unsecured notes include interest payments on a semi-annual basis in arrears and are recorded within the Unsecured debt line item on the Consolidated Balance Sheets.
| Carrying Amount at December 31, | ||||||||||||||||||||
| Principal Amount | 2025 | 2024 | ||||||||||||||||||
5.5% notes, issued in January 2024 and due in January 2029 (the "2029 Notes") | $ | 500.0 | $ | — | $ | 496.2 | ||||||||||||||
5.7% notes, issued in January 2023 and due in January 2033 (the "2033 Notes") | 400.0 | — | 396.1 | |||||||||||||||||
4.2% notes, issued in April 2022 and due in April 2032 | 600.0 | 594.1 | 593.2 | |||||||||||||||||
2.3% notes, issued in October 2021 and due in November 2028 | 450.0 | 448.1 | 447.4 | |||||||||||||||||
2.7% notes, issued in June 2021 and October 2021, and due in July 2031 | 750.0 | 744.3 | 743.4 | |||||||||||||||||
| Total | $ | 2,700.0 | $ | 1,786.5 | $ | 2,676.3 | ||||||||||||||
During the three months ended June 30, 2025, we redeemed the aggregate principal amount of $900.0 million on the 2029 Notes and the 2033 Notes using cash proceeds generated from the Safe Harbor Sale. In accordance with the terms of each series of Notes, the redemption price was inclusive of a customary make-whole premium and accrued and unpaid interest. As a result, we recorded charges of $56.5 million to Loss on extinguishment of debt on the Consolidated Statements of Operations in connection with early extinguishment premiums on these note redemptions. Refer to Note 13, "Derivative Financial Instruments," for cash flow hedge activity resulting from the redemptions.
New Credit Agreement
In September 2025, we entered into a credit agreement (the "New Credit Agreement"), which replaced our previous $3.05 billion senior credit facility.
Pursuant to the New Credit Agreement, we may borrow up to $2.0 billion under a senior credit facility. The New Credit Agreement also permits, subject to the satisfaction of certain conditions, additional borrowings of $1.0 billion. The senior credit facility's maturity date is January 31, 2030, and, at our option, may be extended for two additional six-month periods subject to the satisfaction of certain conditions.
The senior credit facility offers various interest rates for borrowings under U.S. dollars (at the ABR, Term SOFR, and Daily Effective SOFR), euros (at the Adjusted EURIBOR), British pound sterling (at the Daily Simple SONIA Rate), Canadian dollars (at the Term CORRA) and the Daily Simple CORRA), and Australian dollars (at the Australian BBSY Rate) plus a margin, which can range from 0.725% to 1.40% for all interest rates except ABR loans, which can range from 0.000% to 0.400%. As of December 31, 2025, there were no borrowings under the senior credit facility.
During the three months ended September 30, 2025, we recorded charges of $1.6 million to Loss on extinguishment of debt on the Consolidated Statements of Operations related to the write off of deferred financing costs in connection with the termination of our previous senior credit facility. As of December 31, 2025, we also recorded deferred financing costs of $11.6 million in connection with the senior credit facility, which was recorded within Other assets, net on the Consolidated Balance Sheet.
The senior credit facility provides us with the ability to issue up to $100.0 million of letters of credit. We had $13.7 million of outstanding letters of credit at December 31, 2025.
Covenants
The mortgage term loans, senior unsecured notes, and our senior credit facility are subject to various financial and other covenants. At December 31, 2025, we were in compliance with all financial covenants.
In addition, certain of our subsidiary borrowers own properties that secure loans. These subsidiaries are consolidated within our accompanying Consolidated Financial Statements, however, each of these subsidiaries' assets and credit are not available to satisfy our debts and other obligations, or any of our other subsidiaries or any other person or entity.
Long-term Debt Maturities
As of December 31, 2025, the total of our secured debt (excluding premiums and deferred financing costs) and unsecured debt (excluding discounts and deferred financing costs) by year of maturity were as follows (in millions):
| Maturities and Amortization By Year | |||||||||||||||||||||||||||||||||||||||||
| Total Due | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||||||||||||||||||||||||||
| Secured Debt | |||||||||||||||||||||||||||||||||||||||||
| Mortgage loans payable | |||||||||||||||||||||||||||||||||||||||||
| Maturities | $ | 1,794.2 | $ | 492.0 | $ | — | $ | 175.7 | $ | 310.7 | $ | 7.5 | $ | 808.3 | |||||||||||||||||||||||||||
| Principal amortization | 644.4 | 40.6 | 34.9 | 38.8 | 38.2 | 37.4 | 454.5 | ||||||||||||||||||||||||||||||||||
Secured borrowings on collateralized receivables(1) | 39.4 | 2.2 | 2.4 | 2.5 | 2.7 | 3.0 | 26.6 | ||||||||||||||||||||||||||||||||||
| Total Secured Debt | 2,478.0 | 534.8 | 37.3 | 217.0 | 351.6 | 47.9 | 1,289.4 | ||||||||||||||||||||||||||||||||||
| Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||
| Senior unsecured notes | 1,800.0 | — | — | 450.0 | — | — | 1,350.0 | ||||||||||||||||||||||||||||||||||
| Total Unsecured Debt | 1,800.0 | — | — | 450.0 | — | — | 1,350.0 | ||||||||||||||||||||||||||||||||||
| Total Debt | $ | 4,278.0 | $ | 534.8 | $ | 37.3 | $ | 667.0 | $ | 351.6 | $ | 47.9 | $ | 2,639.4 | |||||||||||||||||||||||||||
(1)Balance at December 31, 2025 excludes fair value adjustments of $3.8 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 23, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.