Sun Communities, Inc.: From Mobile Homes to Global Holiday Havens
- MMCG
- 49 minutes ago
- 16 min read
Executive Overview
Sun Communities, Inc. is a Michigan-based real estate investment trust (REIT) that has grown from a regional mobile-home park operator into a global player in manufactured housing and outdoor hospitality. Founded in 1975 and publicly listed since 1993, Sun Communities today owns or has interests in a broad portfolio of manufactured home (MH) communities, recreational vehicle (RV) resorts, and holiday parks in the United Kingdom. The company’s consolidated portfolio spans roughly 510 properties across North America and the UK, making it one of the largest owners in its niche. This expansive footprint includes approximately 285 MH communities, 165 RV resorts, and just over 50 UK holiday parks, together accounting for around 174,000 developed sites (home lots or RV spaces). Such scale gives Sun Communities a significant presence in the affordable housing and vacation sectors, backed by a workforce of about 6,600 employees and generating annual revenues of roughly $3.2 billion.
In recent years, Sun Communities has strategically refocused its business on core property types while extending its geographic reach. In 2025 the company completed a pivotal divestiture of its entire marina holdings – a business acquired in 2020 – selling 129 Safe Harbor marina properties to exit the boating sector. This move, along with targeted acquisitions, has repositioned Sun as a pure-play owner of land-leased housing communities and resorts. Leadership has also evolved: Charles D. Young has served as Chief Executive Officer since October 1, 2025, following a board-led succession process. Founder Gary A. Shiffman stepped down from the CEO role on that date and transitioned to Non‑Executive Chairman, remaining closely tied to the company while day-to-day control moved to the new chief executive.
Strategic Positioning and Market Footprint
Sun Communities’ strategy has long centered on owning and operating lifestyle-oriented communities that provide affordable housing or vacation experiences. Its manufactured housing division caters to retirees, working families, and others seeking budget-friendly home ownership (via manufactured homes) in professionally managed neighborhoods. This segment offers relatively stable, recession-resistant cash flows, as residents own their homes but pay Sun ground rents, resulting in steady occupancy and minimal maintenance responsibility for the landlord. Meanwhile, Sun’s RV resorts and UK holiday parks tap into the growing demand for outdoor recreation and domestic travel. Branded under Sun Outdoors in North America and Park Holidays UK across the Atlantic, these properties include campgrounds, cabins, and vacation rentals that appeal to seasonal campers, road-trippers, and holidaymakers. By spanning both year-round affordable housing and transient vacation segments, Sun Communities positions itself to capture multiple market tailwinds – from the shortage of affordable housing in the U.S. to the rising popularity of RV travel and “staycations” in the UK.
Geographically, Sun Communities has built a coast-to-coast footprint in the U.S. and beyond. The company’s properties stretch across dozens of states – from Florida and Arizona, where many RV parks and retirement communities capitalize on warm climates, to midwestern and northeastern states like Michigan and New York with longstanding mobile-home communities. Key domestic markets include Florida, Michigan, Texas, and Arizona, which offer large concentrations of manufactured housing estates and RV campgrounds. In Canada, Sun has expanded into Ontario, and in the UK it became a major player virtually overnight through its acquisition of Park Holidays UK. That 2022 acquisition, costing approximately £950 million (~$1.3 billion), marked Sun’s first foray into international markets and instantly gave it one of the largest holiday park platforms in Britainglobenewswire.comukparks.com. Park Holidays brought Sun a portfolio of over 40 UK parks (now grown to just over 50) situated in popular seaside and countryside destinations, from Cornwall’s coasts to Scotland’s highlands. This international diversification provides Sun a new growth avenue, albeit with currency exposure and different market dynamics compared to its U.S. base.
Sun’s strategic emphasis in recent years has shifted toward portfolio optimization. Rather than aggressive expansion at any cost, the company has balanced acquisitions with dispositions to improve portfolio quality and focus. Notably, beyond the marina sale, Sun has pruned some non-core or underperforming properties while continuing to buy communities in strong markets.
Table 1 summarizes Sun’s acquisition and disposition activity in the last two years:
Table 1. Sun Communities - Portfolio Composition (Consolidated, Mid-2025)
Portfolio Segment | Properties (Count) | Developed Sites (Approx.) | Primary Geography |
Manufactured Housing Communities | ~285 | ~129,800 | United States, Canada |
RV Resorts and Campgrounds | ~165 | ~23,600 (transient + annual) | United States, Canada |
UK Holiday Parks | ~54 | ~21,700 | United Kingdom |
Total Portfolio | ~504 | ~175,100 | US, Canada, UK |
Despite completing nearly twenty property acquisitions (about $170 million in asset value) over the past two years, Sun sold a similar number of properties for roughly double that amount. This net disposition activity (including the marina exit and other sales) generated an estimated $180 million positive cash inflow. In effect, Sun has been net shedding assets in value terms, indicating a strategic curation of its portfolio. The company has concentrated on properties that fit its long-term strategy – high-occupancy communities in desirable locations – while divesting assets outside its core focus or using capital recycling to upgrade its holdings. Management has signaled that proceeds from asset sales are being redeployed into debt reduction and selective new investments (often via 1031 like-kind exchanges to defer taxes). This disciplined approach underscores Sun Communities’ strategic positioning as a sector-focused REIT, aiming to be the leader in MH and RV community ownership by scale and operational expertise, rather than a conglomerate of disparate property types.
Another element of Sun’s strategy is leveraging its operational platform and brand across its portfolio. With over 40 years in the business, Sun has honed a model of community management that emphasizes amenities, customer service, and tenant experience – whether for year-round residents in a manufactured home park or vacationing families at a campground. Many of its RV resorts have been rebranded under the “Sun Outdoors” banner, creating a national network of destinations with consistent standards. In the UK, Park Holidays continues to operate under its well-known name, benefiting from local brand equity while tapping Sun’s capital for upgrades and expansion. This unified platform allows Sun to achieve economies of scale and cross-marketing opportunities (for instance, offering U.S. snowbird customers summer options in northern states or even UK trips). It also strengthens the company’s competitive moat in a fragmented industry. In the United States, the manufactured housing and RV park sector remains highly fragmented, with many mom-and-pop owners. Sun’s estimated 11% share of the U.S. land-lease community market (by revenue) makes it a clear leader but also highlights room for further consolidation. The company’s size and access to capital position it to continue acquiring smaller operators over time, while its professional management and marketing are difficult for local competitors to replicate.
Portfolio Composition and Asset Geography
Sun Communities’ portfolio is notable for its blend of residential and resort assets spread across multiple countries. As of mid-2025, the company owned roughly 510 developed properties encompassing about 174,000 sites for housing or RV use. Table 2 provides a breakdown of the portfolio by segment and region:
Table 2. Geographic Exposure by Revenue Contribution (Estimated)
Region | Share of Consolidated Revenue | Primary Asset Type |
United States | ~78% | MH communities, RV resorts |
United Kingdom | ~19% | Holiday parks |
Canada | ~3% | RV resorts |
Total | 100% | — |
Notes:
UK revenue contribution increased materially following the Park Holidays acquisition.
Canadian exposure remains intentionally limited and opportunistic.
Neighborhoods where residents own or rent manufactured homes. These 285± communities account for roughly three-quarters of the company’s developed site count and form the backbone of its stable rental income. The RV resorts(approximately 165 properties) contribute the transient and vacation-oriented component: about 23,000 short-term campsites across the U.S. and Canada. Notably, many North American RV resorts also offer seasonal or annual leases (park models and RVs that stay year-round), which are counted among the ~129,500 “MH and annual RV” sites in Sun’s portfolio. These annual sites blur the line between traditional mobile-home communities and RV campgrounds, effectively serving as second-home or snowbird destinations with steady income profiles similar to MH communities. Finally, Sun’s UK holiday parks – 53–54 parks as of mid-2025 – contribute over 21,000 sites, divided between caravan holiday homes (often owned or seasonally rented by customers) and touring pitches for short stays. The UK parks, while fewer in number, tend to be large in size (400+ sites on average) and are a significant growth platform for the company outside North America.
In terms of geographic spread, Sun Communities’ U.S. properties are distributed widely but with concentration in certain regions. Florida is a cornerstone of the portfolio – home to dozens of Sun’s MH and RV communities – benefiting from retiree demand and year-round vacation appeal. The company also has a strong presence in Michigan, its home state, where it started and still owns numerous communities catering to both all-ages and 55+ residents. Other notable state footprints include Texas, California, Arizona, South Carolina, and North Carolina, among others, reflecting Sun’s expansion into Sunbelt markets as well as some northern locales for seasonal balance. In Canada, Sun’s few properties (largely RV resorts) are primarily in Ontario, tapping into that province’s cottage and camping culture. The UK parks are mostly in England’s coastal and countryside areas – for example, Sussex, Suffolk, Cornwall, and Yorkshire – as well as a few parks in Scotland and Wales, aligning with traditional UK holiday. This geographical mix provides Sun a degree of diversification: while a harsh winter might slow RV tourism in one region, Florida and the UK could still perform well, and the stable MH ground rents act as a ballast through economic or seasonal fluctuations.
It is worth noting that Sun’s portfolio was even more diversified by property type until recently, due to the inclusion of marinas. The Safe Harbor Marinas division (129 marinas across over 30 states) was acquired in 2020, adding a sizable boat storage and marina operating business. However, by 2025 Sun strategically exited this segment, as mentioned, by selling Safe Harbor. Those marina assets – comprising nearly 3,900 boat slips and dry storage spaces – were classified as discontinued operations prior to sale. The divestiture not only provided a cash windfall but also simplified Sun’s portfolio to focus on land-based communities. Post-sale, Sun’s asset base is more coherent, with all properties now tied to either housing or outdoor vacation stays, which arguably play to the company’s core competencies. Sun’s remaining portfolio enjoys very high utilization: occupancy in its MH and annual RV sites is routinely in the 95–99% range, reflecting strong demand and limited new supply in the manufactured housing sectorlast10k.comlast10k.com. Even the transient RV and holiday park segments see robust seasonal occupancy, driving solid rental growth when managed effectively. High occupancy, combined with ongoing expansions (adding new sites within existing parks) and rent increases, has allowed Sun Communities to grow same-property net operating income (NOI) at a healthy clip in recent years (mid-single-digit percentages annually).
Financial Performance and Capital Structure
Sun Communities’ financial performance over the last several years reflects its rapid expansion and recent portfolio reshuffling. The company’s top-line revenue has surged through both organic growth and acquisitions: from roughly $1.3 billion in 2019 to about $3.22 billion in 2023. This represents an approximately 26% compound annual growth rate – an unusually high pace for a REIT, enabled by transformative deals like the Park Holidays UK acquisition and the earlier purchase of Safe Harbor Marinas. Even stripping out acquisitions, Sun’s core property revenues have grown steadily thanks to high occupancy and rent increases (in 2024, for example, Sun achieved a 4.1% same-property NOI increase in North America despite a tough macro environment)last10k.comlast10k.com. The company’s funds from operations (FFO) – a key cash flow metric for REITs – has kept pace. In 2024, Sun generated core FFO of about $6.81 per share, only slightly down from roughly $7.10 the prior yearlast10k.comlast10k.com. This minor dip in FFO was attributable to higher interest expenses and the timing of large asset sales, but overall Sun has demonstrated the ability to consistently earn and even grow its FFO through cycles.
However, on a GAAP net income basis, Sun’s profitability has been more uneven due to heavy non-cash depreciation and some one-time charges. The REIT posted a small net loss in 2023 (largely from depreciation and amortization tied to acquisitions) before returning to a modest net profit of $89 million in 2024. Such swings are not uncommon for asset-intensive companies, and investors and management place greater weight on FFO and NOI as measures of performance. By those measures, Sun’s operations remain solid: for the full year 2024, core FFO exceeded $6.80/share and North American same-community occupancy hit 99%, an exceptionally high levellast10k.comlast10k.com.
Table 3 highlights some key financial metrics from recent years to illustrate Sun Communities’ trajectory:
Table 3. Recent Acquisition and Disposition Activity (Trailing 24 Months)
Transaction Type | Number of Assets | Estimated Gross Value (USD) | Strategic Rationale |
Acquisitions | ~19 | ~$170 million | Infill MH and RV communities in high-occupancy markets |
Dispositions | ~19 | ~$350 million | Capital recycling, marina exit, non-core pruning |
Net Activity | ~0 | +$180 million | Balance sheet deleveraging and reinvestment capacity |
Notes:
Dispositions are value-weighted higher due primarily to the Safe Harbor Marinas exit.
Net proceeds were partially used for debt reduction and 1031 exchanges.
Table 4. Selected Consolidated Financial Metrics
Metric | 2019 | 2022 | 2024 (Est.) |
Total Revenue | $1.26B | $2.97B | ~$3.30B |
Core FFO per Share | $4.82 | $7.10 | ~$6.81 |
Net Income (GAAP) | $162M | $261M | ~$89M |
Average Occupancy (MH + Annual RV) | ~96% | ~98% | ~99% |
Annual Dividend per Share | $2.84 | $3.52 | ~$3.90 |
Notes:
GAAP net income volatility reflects depreciation and one-time items.
Core FFO is the preferred performance indicator for REIT comparability.
As shown above, Sun Communities roughly doubled its revenue between 2019 and 2022, then grew it further with the UK expansion, while FFO per share also climbed in tandem (peaking around $7.10 in 2022)last10k.com. The slight pullback in 2024 FFO reflected higher interest costs as global interest rates rose, as well as the sale of income-producing assets (marinas) mid-year. Even so, Sun maintained a strong dividend, raising its regular annual dividend by over 10% in 2025 and even issuing a special distribution using part of the marina-sale proceeds. The dividend increase signals management’s confidence in future cash flows. At the same time, Sun has materially strengthened its balance sheet. The company carried a significant debt load from its acquisition spree – by 2022 its debt-to-equity ratio had risen to about 1.2×, up from 1.0× a few years prior. But in 2025, Sun used the liquidity from selling Safe Harbor to pay down roughly $3.3 billion of debt (including prepayment penalties), sharply reducing leverage. Both major credit rating agencies responded positively: in mid-2025 S&P upgraded Sun to BBB+ (stable) and Moody’s raised its rating to Baa2 (stable), affirming Sun Communities’ investment-grade credit . These ratings reflect the REIT’s improved debt metrics and the resilient cash flow of its core business. With a healthier balance sheet and an ongoing ability to access equity markets (Sun issued some stock to fund Park Holidays, for instanceglobenewswire.com), the company appears well-capitalized to pursue future growth without overstretching financially.
Another noteworthy aspect of Sun’s financial strategy is its capital recycling and investment discipline. The company has shown willingness to harvest value from mature assets – as seen in the marina sale and periodic dispositions of communities – and redeploy capital where returns are higher. For example, Sun signaled plans to use $565 million of 1031 exchange proceeds for acquiring new MH communities in strong marketsinvesting.com, effectively swapping out lower-growth or non-core assets for properties with better long-term prospects. Sun’s management also keeps a close eye on operating efficiencies. Despite inflationary pressures, the company managed to keep expense growth modest; its property operating margins remain robust (gross margin near 90% in recent years). This efficiency, combined with above-inflation rent growth (especially in hot markets like Florida and among annual RV tenants), has helped Sun expand NOI and offset higher interest costs. Overall, the financial picture for Sun Communities is one of strong underlying performance, tempered by short-term adjustments as the company refines its portfolio and navigates the higher-rate environment. The public markets have taken notice: Sun’s stock, while volatile with REIT sector swings, trades around $120 per share (late 2025) and a forward price/FFO multiple in the high-teens, reflecting investor expectations of continued growth. The stock has ranged roughly $110 to $138 over the past yearinvesting.com, underlining that while the company’s fundamentals are solid, external factors like interest rate movements can sway market sentiment on REITs.
Outlook and Strategic Risks
Looking ahead, Sun Communities faces a mix of encouraging growth prospects and notable risks. On the opportunityside, the company stands to benefit from enduring trends in its core markets. In the U.S., demand for affordable housing is outpacing supply – a dynamic that favors manufactured home communities, especially in sunbelt states where population growth is strong. Sun’s properties often have waiting lists, and barriers to new MH community development (due to zoning and high land costs) create a favorable supply-demand imbalance supporting occupancy and rent increases. Similarly, the RV resort business is buoyed by demographic and lifestyle trends: more retirees traveling in RVs, families seeking outdoors-oriented vacations, and the broader appeal of “drive-to” getaways. In the UK, Sun (via Park Holidays) can tap into a large domestic holiday park industry with thousands of independent operators, presenting ample room for expansion by acquisition or redevelopment of existing parks. Sun’s proven ability to acquire and integrate portfolios will likely serve it well as it looks to grow its UK footprint beyond the initial Park Holidays assets. Additionally, Sun’s newfound financial flexibility – having deleveraged significantly – gives it capacity to invest in upgrading properties, developing new sites within existing parks, and potentially resuming more aggressive acquisitions when market conditions permit.
However, Sun Communities must navigate several strategic risks and challenges in the coming years:
Interest Rate and Financing Risk: As a REIT, Sun relies on debt and equity financing. The rapid rise in interest rates since 2022 has increased borrowing costs and made acquisitions more expensive to finance. While Sun’s balance sheet is healthier post-2025, further rate hikes or tight credit markets could constrain growth or pressure FFO (via higher interest expense)investing.cominvesting.com. The company’s ability to maintain an investment-grade rating and access capital at reasonable cost will be crucial for funding future expansions or refinancing maturing debt.
Economic Cycles and Affordability: Sun’s MH communities are generally resilient in downturns – indeed, affordable housing can see heightened demand in recessions – but a severe economic downturn could still impact occupancy and tenant collections, especially in all-age communities where residents’ incomes are variableinvesting.com. Meanwhile, the RV and holiday park businesses are more discretionary: a recession or even high fuel prices could curb families’ travel budgets, reducing transient RV bookings and vacation home sales. Sun mitigates this with a large base of annual/seasonal renters, but the transient revenue is still sensitive to consumer confidence.
Regulatory and Political Risk: Manufactured housing communities have come under political scrutiny in some areas due to steep rent increases and the vulnerability of lower-income residents. There is a risk of rent control or stricter regulations being applied to land-lease communities in certain states or municipalities. Any such measures could limit Sun’s ability to raise rents, potentially squeezing margins. Additionally, zoning or environmental regulations can impede the expansion of existing parks or development of new ones. Sun’s UK business could face regulatory shifts around holiday home ownership or park licensing as well.
Integration and Operational Execution: As Sun spreads its reach, managing a portfolio across different countries and product types becomes complex. The UK operations introduce currency risk (fluctuations in the British pound) and require understanding of a different consumer market. Effective integration of acquisitions – aligning Park Holidays’ culture and systems with Sun’s, for example – is necessary to realize expected synergies. There’s also leadership transition risk: with a new CEO taking over in 2025, there may be shifts in strategy or execution focus. Maintaining the legacy of consistent execution that Sun had under its founder will be a key test for new leadership.
Climate and Environmental Factors: Many of Sun’s communities are located in coastal or warm-weather areas that are exposed to extreme weather events – hurricanes in Florida, wildfires or droughts in the West, and flooding in low-lying UK coastal regions. These events pose risks to property and could raise insurance costs significantly. Sun has to ensure proper insurance coverage and climate-resilient infrastructure (e.g. elevating homes, reinforcing seawalls at RV parks, etc.). Environmental risks also tie into long-term sustainability expectations from investors; Sun may face pressure to invest in renewable energy, water conservation, and other sustainability initiatives across its parks.
Despite these challenges, Sun Communities’ overall outlook remains positive. The company’s 2025 guidance calls for continued growth: management raised full-year core FFO per share guidance to approximately $6.5–6.7, anticipating robust same-property NOI gains in North America (~4–5%) and a recovery in UK operations post-pandemic The successful sale of the marina business and the redeployment of capital demonstrate a nimble strategy – shedding non-core assets at high valuations and doubling down on the core MH and RV sector where Sun has competitive advantages. If Sun can execute on expanding its MH portfolio (through selective acquisitions of communities from retiring mom-and-pop owners, for instance) and optimize its UK parks (many of which have room for additional cabins or amenities), it could unlock further earnings growth. The company is also exploring ancillary income opportunities, such as renting park-owned manufactured homes, offering financing or insurance to residents, and enhancing on-site amenities to drive higher resort fees – all of which could boost revenue per site.
In summary, Sun Communities, Inc. stands at an inflection point: it has transformed itself into a transatlantic owner of lifestyle-oriented real estate, with a clear focus on manufactured housing and vacation parks. Its strategic positioning – diversified but within a specialized niche – gives it multiple levers for growth, from U.S. housing shortages to UK travel trends. Portfolio quality is high, and financial management has been prudent, evidenced by recent deleveraging and maintained dividends. While external headwinds like interest rates and economic uncertainty loom, Sun has shown adaptability and resilience. Much like the residents of its sunny communities and the campers at its RV parks, the company is aiming to weather the storms and enjoy steady growth ahead. With a strong foundation built over decades, Sun Communities faces the future with an optimistic outlook, albeit one kept in check by careful risk management and strategic focus on its core mission: providing attractive, accessible places to live and vacation, and delivering value to both residents and shareholders along the way.
December 18, 2025, by a collective of authors at MMCG Invest, LLC, RV Park feasibility study company
Sources:
MMCG Database. “Sun Communities, Inc. — Company Dossier (Corporate Summary Metrics), as of June 30, 2025.” Internal database extract (employees, revenue, and acquisition/disposition totals).
U.S. Securities and Exchange Commission (SEC), EDGAR. “Sun Communities, Inc. — Form 10‑K (Fiscal Year Ended December 31, 2024). Filing date: February 28, 2025.”
U.S. Securities and Exchange Commission (SEC), EDGAR. “Sun Communities, Inc. — Form 10‑Q (Quarter Ended June 30, 2025).”
Sun Communities, Inc. “SUN COMMUNITIES, INC. ANNOUNCES SALE OF SAFE HARBOR MARINAS TO BLACKSTONE INFRASTRUCTURE IN AN ALL‑CASH TRANSACTION FOR $5.65 BILLION.” Press release (distributed via GlobeNewswire), February 24, 2025.
Blackstone. “Blackstone Infrastructure to Acquire Safe Harbor Marinas in $5.65B Transaction.” Press release, February 24, 2025.
Blackstone. “Blackstone Infrastructure Completes Acquisition of Safe Harbor.” Press release, April 30, 2025.
Sun Communities, Inc. “Sun Communities, Inc. Announces CEO Transition.” Press release (distributed via GlobeNewswire), July 23, 2025.
Sun Communities, Inc. “Sun Communities, Inc. Closes Acquisition of Park Holidays UK.” Press release (distributed via GlobeNewswire), April 8, 2022.
Sun Communities, Inc. “Sun Communities Reports Results for the Second Quarter and First Six Months of 2025.” Press release (distributed via GlobeNewswire), July 30, 2025.
Sun Communities, Inc. “Sun Communities Reports Results for the Third Quarter of 2025.” Press release (distributed via GlobeNewswire), October 29, 2025. (Includes debt table and credit ratings disclosure: Moody’s Baa2 / S&P BBB+.)
Freddie Mac. “Housing Supply: Still Undersupplied by Millions of Units.” Research insight, November 26, 2024.
Brookings Institution. “Make it count: Measuring our housing supply shortage.” November 26, 2024.
Manufactured Housing Institute (MHI). “MHI Economic Report Signals Steady Demand.” (Shipment/production commentary).
U.S. Census Bureau. “Manufactured Housing Survey (MHS).” Program page / latest tables.
HUD User (HUD / U.S. Census Bureau). “Manufactured Housing Survey (MHS).” Dataset landing page.
Consumer Financial Protection Bureau (CFPB). “Manufactured Housing Finance: New Insights from the Home Mortgage Disclosure Act (HMDA).” Research report, May 27, 2021.
RV Industry Association (RVIA). “2025 Wholesale Shipments Expected to Align with 2024 Levels.” Industry forecast note, June 2, 2025.
RV Industry Association (RVIA). “RV Shipments Top 28,000 in August.” Shipment report, August 2025.
Office for National Statistics (ONS). “Travel trends: 2024.” Released August 26, 2025.
VisitBritain. “Domestic tourism: latest results.” Updated September 10, 2025.
UK Caravan & Camping Alliance (UKCCA). “2024 Economic Benefit Report (‘Pitching the Value’).” Released February 6, 2024.
British Holiday & Home Parks Association (BH&HPA). “A manifesto for the industry.” (Sector footprint and economic contribution framing).