SUN COMMUNITIES INCSUI
SUN COMMUNITIES INC Segments Disclosure
10. Segment Reporting
ASC Topic 280, "Segment Reporting," establishes standards for the way that business enterprises report information about operating segments in its financial statements. In 2025, following the Safe Harbor Sale, we revised our reporting structure from four segments to three segments, which consist of (i) MH communities, (ii) RV communities, and (iii) the communities in the UK. The new structure reflects how the chief operating decision maker ("CODM"), a committee comprised of our CEO, President, COO, and CFO, manages the business, makes operating decisions, allocates resources and evaluates operating performance. Beginning with the three months ended March 31, 2025, we report our financial results consistent with our realigned operating segments and have recast prior period amounts to conform to the way we internally manage our business and monitor segment performance. Certain reclassifications have been made to the prior period financial statements and related notes in order to conform to the current period presentation. There was no impact to prior period net income, shareholders' equity, or cash flows for any of the reclassifications.
Our three reportable segments are: (i) MH, (ii) RV, and (iii) UK. Each operating segment has discrete financial information evaluated regularly by our CODM in managing the business, making operating decisions, allocating resources, and evaluating operating performance.
The CODM uses NOI to allocate resources (including employees, property, and financial or capital resources) for each segment predominately in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. The CODM also uses NOI for evaluating product pricing and segment profit and in the compensation of certain employees. The CODM reviews balance sheet information at a consolidated level.
The MH segment owns, operates, develops, or has an interest in, a portfolio of MH communities in the U.S., and is in the business of acquiring, operating and developing ground-up MH communities to provide affordable housing solutions to residents. The MH segment also provides manufactured home sales and leasing services to tenants and prospective tenants of our communities.
The RV segment owns, operates, develops, or has an interest in, a portfolio of RV communities and is in the business of acquiring, operating, and developing ground-up RV communities in the U.S. and Canada. It also provides leasing services for vacation rentals within the RV communities.
The UK segment owns, operates, develops, or has an interest in, a portfolio of communities, referred to as holiday parks, and is in the business of acquiring, operating, and developing communities in the United Kingdom. It also provides home sales and associated site license activities to owners and tenants within the communities.
A presentation of our segment financial information is summarized as follows (in millions):
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MH | RV | UK | Total | MH | RV | UK | Total | MH | RV | UK | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from real property | $ | 1,012.5 | $ | 337.2 | $ | 133.3 | $ | 956.2 | $ | 318.8 | $ | 132.2 | $ | 906.1 | $ | 287.1 | $ | 114.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from real property - transient | 1.0 | 229.4 | 52.4 | 1.2 | 249.7 | 45.0 | 1.4 | 277.3 | 42.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home sales | 116.9 | 23.5 | 193.4 | 149.9 | 31.2 | 188.8 | 188.6 | 45.2 | 186.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ancillary | 7.4 | 78.5 | 48.1 | 7.6 | 81.0 | 43.9 | 8.4 | 89.2 | 40.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Operating Revenues | $ | 1,137.8 | $ | 668.6 | $ | 427.2 | $ | 2,233.6 | $ | 1,114.9 | $ | 680.7 | $ | 409.9 | $ | 2,205.5 | $ | 1,104.5 | $ | 698.8 | $ | 382.4 | $ | 2,185.7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payroll - real property | 58.6 | 90.1 | 30.7 | 57.7 | 92.4 | 29.4 | 58.9 | 96.4 | 25.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities - real property | 99.1 | 73.1 | 32.2 | 95.1 | 69.6 | 30.6 | 89.0 | 67.8 | 27.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal, taxes, and insurance - real property | 32.4 | 12.8 | 1.4 | 32.9 | 13.7 | 1.4 | 34.3 | 13.8 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplies and repairs - real property | 47.1 | 31.9 | 17.8 | 45.7 | 31.9 | 16.3 | 38.5 | 28.5 | 15.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses - real property | 10.4 | 43.9 | 14.4 | 12.9 | 41.5 | 12.9 | 10.4 | 34.7 | 14.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes - real property | 74.2 | 28.4 | 8.5 | 69.8 | 26.5 | 7.5 | 65.9 | 23.8 | 6.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home sales - Cost of sales | 123.5 | 107.5 | 107.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ancillary - Cost of goods sold | 16.8 | 15.7 | 14.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other segment items(1) | 107.5 | 70.7 | 51.3 | 133.3 | 77.6 | 47.9 | 155.1 | 93.0 | 43.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total NOI | $ | 708.5 | $ | 317.7 | $ | 130.6 | $ | 1,156.8 | $ | 667.5 | $ | 327.5 | $ | 140.7 | $ | 1,135.7 | $ | 652.4 | $ | 340.8 | $ | 127.0 | $ | 1,120.2 | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments to arrive at net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 48.5 | 20.1 | 44.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage commissions and other revenues, net | 24.0 | 34.9 | 53.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expense | (236.7) | (230.5) | (213.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophic event-related charges, net | (1.2) | (23.6) | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination expense, net | — | — | (3.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (507.9) | (490.5) | (494.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairments | (386.7) | (66.7) | (5.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | (180.8) | (369.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (104.0) | (1.4) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (221.0) | (350.3) | (325.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on mandatorily redeemable preferred OP units / equity | — | — | (3.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on remeasurement of marketable securities | — | — | (16.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain / (loss) on foreign currency exchanges | 26.7 | (25.8) | (0.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on dispositions of properties, net | 5.1 | 202.9 | 11.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income / (expense), net | 133.9 | (6.8) | (7.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on remeasurement of notes receivable | (1.6) | (36.4) | (106.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from nonconsolidated affiliates | 16.4 | 9.5 | 16.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates | (0.9) | 6.6 | (4.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current tax expense | (10.8) | (3.6) | (13.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax benefit | 60.0 | 39.6 | 22.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income / (Loss) from Continuing Operations | 0.6 | 32.9 | (291.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net | 1,429.6 | 74.2 | 82.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income / (Loss) | 1,430.2 | 107.1 | (209.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Preferred return to preferred OP units / equity interests | 12.6 | 12.8 | 12.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Income / (loss) attributable to noncontrolling interests | 56.4 | 5.3 | (8.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income / (Loss) Attributable to SUI Common Shareholders | $ | 1,361.2 | $ | 89.0 | $ | (213.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Other segment items for each reportable segment include:
MH and RV – costs related to home sales and ancillary, specifically payroll, utilities, legal, taxes and insurance, supplies and repairs, and other expenses.
UK – other costs related to home sales and ancillary, specifically home sales commission expense, payroll, utilities, legal, taxes, and insurance, supplies and repairs, and other expenses.
Our total assets by segment and by principal geographical area were as follows (in millions):
December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| MH | RV | UK | Consolidated | MH | RV | UK | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| Identifiable Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Investment property, net | $ | 5,279.4 | $ | 3,339.1 | $ | 2,283.2 | $ | 10,901.7 | $ | 5,114.7 | $ | 3,505.8 | $ | 2,244.6 | $ | 10,865.1 | |||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | 400.2 | 206.5 | 29.4 | 636.1 | 32.3 | 16.7 | 8.1 | 57.1 | |||||||||||||||||||||||||||||||||||||||
Inventory of manufactured homes | 65.7 | 19.0 | 58.2 | 142.9 | 52.4 | 15.3 | 62.1 | 129.8 | |||||||||||||||||||||||||||||||||||||||
Notes and other receivables, net | 199.6 | 61.0 | 71.5 | 332.1 | 233.4 | 121.4 | 75.3 | 430.1 | |||||||||||||||||||||||||||||||||||||||
Collateralized receivables, net | 43.2 | — | — | 43.2 | 51.2 | — | — | 51.2 | |||||||||||||||||||||||||||||||||||||||
Goodwill | — | 9.5 | — | 9.5 | — | 9.5 | — | 9.5 | |||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 10.6 | 26.1 | 64.8 | 101.5 | 9.5 | 26.3 | 66.7 | 102.5 | |||||||||||||||||||||||||||||||||||||||
Other assets, net | 273.3 | 35.9 | 46.7 | 355.9 | 261.1 | 37.0 | 144.3 | 442.4 | |||||||||||||||||||||||||||||||||||||||
Assets held for sale and discontinued operations, net | — | — | — | — | — | 47.2 | — | 4,461.7 | |||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 6,272.0 | $ | 3,697.1 | $ | 2,553.8 | $ | 12,522.9 | $ | 5,754.6 | $ | 3,779.2 | $ | 2,601.1 | $ | 16,549.4 | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2025 | % of Total | 2024 | % of Total | |||||||||||||||||||||||
North America(1) | $ | 9,969.1 | 79.6 | % | $ | 13,948.3 | 84.3 | % | ||||||||||||||||||
| United Kingdom | 2,553.8 | 20.4 | % | 2,601.1 | 15.7 | % | ||||||||||||||||||||
| Total Assets | $ | 12,522.9 | 100.0 | % | $ | 16,549.4 | 100.0 | % | ||||||||||||||||||
(1)Includes $0.0 million and $4.4 billion of total assets from discontinued operations as of December 31, 2025 and December 31, 2024, respectively. Refer to Note 2, "Assets Held for Sale and Discontinued Operations," for additional information.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.