SUN COMMUNITIES INCSUI
SUN COMMUNITIES INC Earnings Per Share Disclosure
12. Earnings / (Loss) Per Share
Earnings / (loss) per share ("EPS") is computed by dividing net earnings / (loss) by the weighted average number of common shares outstanding during the period on a basic and diluted basis. We calculate diluted EPS using the more dilutive of the treasury stock method and the two-class method for stock option and restricted common shares, the treasury stock method for forward equity sales and the if converted method for convertible units. Our potentially dilutive securities include our potential common shares related to our forward equity offerings, our unvested restricted common shares, and our Operating Partnership outstanding common and preferred OP units, which, if converted or exercised, may impact dilution.
Diluted EPS considers the impact of potentially dilutive securities except when the potential common shares have an anti-dilutive effect. Our unvested restricted stock common shares contain rights to receive non-forfeitable distributions and participate equally with common stock with respect to distributions issued or declared, and thus, are participating securities, requiring the two-class method of computing EPS. In calculating the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average number of shares outstanding during the period. The two-class method determines EPS by (1) dividing the sum of distributed earnings and undistributed earnings allocated to common shareholders by the weighted average number of shares of common stock outstanding for the period; and (2) dividing the sum of distributed earnings and undistributed earnings allocated to participating securities by the weighted average number of shares of participating securities for the period. The remaining potential dilutive common shares do not contain rights to distributions and are included in the computation of diluted EPS.
Computations of basic and diluted EPS were as follows (in millions, except per share data):
Year Ended December 31, | ||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||
| Numerator for basic EPS | ||||||||||||||||||||
Net income / (loss) from continuing operations | $ | 0.6 | $ | 32.9 | $ | (291.4) | ||||||||||||||
Preferred return to preferred OP units equity interests | (12.6) | (12.8) | (12.3) | |||||||||||||||||
(Income) / loss attributable to noncontrolling interests | (56.4) | (5.3) | 8.1 | |||||||||||||||||
Net income / (loss) from continuing operations attributable to SUI common shareholders | (68.4) | 14.8 | (295.6) | |||||||||||||||||
Less: allocation to restricted stock awards | 7.7 | 0.4 | (1.8) | |||||||||||||||||
Basic earnings - net income / (loss) from continuing operations after allocation to restricted stock awards | (76.1) | 14.4 | (293.8) | |||||||||||||||||
Basic earnings - net income from discontinued operations | 1,429.6 | 74.2 | 82.3 | |||||||||||||||||
Basic earnings - net income / (loss) attributable to common shareholders after allocation to restricted stock awards | $ | 1,353.5 | $ | 88.6 | $ | (211.5) | ||||||||||||||
Numerator for diluted EPS | ||||||||||||||||||||
Basic earnings - net income / (loss) from continuing operations after allocation to restricted stock awards | $ | (76.1) | $ | 14.4 | $ | (293.8) | ||||||||||||||
Add: allocation to common and preferred OP units dilutive effect | — | 1.2 | — | |||||||||||||||||
Add: allocation to restricted stock awards | — | — | (1.8) | |||||||||||||||||
Diluted net income / (loss) from continuing operations attributable to SUI common shareholders | (76.1) | 15.6 | (295.6) | |||||||||||||||||
Diluted net income from discontinued operations | 1,429.6 | 74.2 | 82.3 | |||||||||||||||||
Diluted earnings - net income / (loss) attributable to common shareholders after allocation to common and preferred OP units(1) | $ | 1,353.5 | $ | 89.8 | $ | (213.3) | ||||||||||||||
| Denominator | ||||||||||||||||||||
Weighted average common shares outstanding | 124.9 | 124.5 | 123.4 | |||||||||||||||||
Add: dilutive restricted stock | — | — | 0.4 | |||||||||||||||||
Add: common and preferred OP units dilutive effect | — | 2.7 | — | |||||||||||||||||
Diluted weighted average common shares and securities(1) | 124.9 | 127.2 | 123.8 | |||||||||||||||||
EPS Available to Common Shareholders After Allocation | ||||||||||||||||||||
Basic earnings / (loss) per share from continuing operations | $ | (0.61) | $ | 0.12 | $ | (2.38) | ||||||||||||||
Basic earnings per share from discontinued operations | 11.45 | 0.59 | 0.67 | |||||||||||||||||
Basic earnings / (loss) per share | $ | 10.84 | $ | 0.71 | $ | (1.71) | ||||||||||||||
Diluted earnings / (loss) per share from continuing operations | $ | (0.61) | $ | 0.12 | $ | (2.39) | ||||||||||||||
Diluted earnings per share from discontinued operations | 11.45 | 0.59 | 0.67 | |||||||||||||||||
Diluted earnings / (loss) per share(1) | $ | 10.84 | $ | 0.71 | $ | (1.72) | ||||||||||||||
(1) For the years ended December 31, 2025 and 2024, diluted earnings per share was calculated using the two-class method for RSAs as the application of this method resulted in a more diluted earnings per share during those periods. For the year ended December 31, 2023, diluted earnings per share was calculated using the treasury stock method for RSAs as the application of this method resulted in a more diluted earnings per share during this period.
We have excluded certain potentially dilutive securities from the computation of diluted EPS because the inclusion of those securities would have been anti-dilutive for the periods presented. The following table presents the outstanding securities that were excluded from the computation of diluted EPS (in thousands):
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
| Common OP units | 2,637 | — | 2,735 | ||||||||||||||
| A-1 preferred OP units | 170 | 177 | 202 | ||||||||||||||
| A-3 preferred OP units | 40 | 40 | 40 | ||||||||||||||
| Series C preferred OP units | 292 | 297 | 306 | ||||||||||||||
| Series D preferred OP units | 489 | 489 | 489 | ||||||||||||||
| Series E preferred OP units | 80 | 80 | 80 | ||||||||||||||
| Series F preferred OP units | 70 | 90 | 90 | ||||||||||||||
| Series G preferred OP units | 5 | 206 | 211 | ||||||||||||||
| Series H preferred OP units | 561 | 581 | 581 | ||||||||||||||
| Series J preferred OP units | 236 | 236 | 238 | ||||||||||||||
| Series K preferred OP units | 1,000 | 1,000 | 1,000 | ||||||||||||||
Series L preferred OP units | 20 | 20 | 20 | ||||||||||||||
| Redemption rights - Series G preferred OP units | 201 | N/A | N/A | ||||||||||||||
| Total Securities | 5,801 | 3,216 | 5,992 | ||||||||||||||
N/A = Not applicable.
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About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.