SUI Reclaims Key Support With Strength - Is $2.35 The Next Target?

Sun Communities Inc (SUI) has shown resilience in early 2026, with shares stabilizing after a difficult year in 2025. The stock has retested key technical levels, offering cautious optimism for investors. Analysts are now turning their attention to whether this stabilization will lead to a meaningful upward move in the near term.

The company's performance in the third quarter of 2025 was mixed. While earnings missed estimates by 93.75%, revenue came in slightly below forecasts. However, the company raised full-year FFO guidance, signaling confidence in its core operations. This guidance was supported by a core FFO per share of $1.76, exceeding its previous expectations.

Sun Communities also completed the sale of Safe Harbor Marinas, marking a strategic shift toward a pure-play focus on manufactured housing and RV communities. This move is expected to streamline operations and improve long-term profitability.

Why the Move Happened

Sun Communities' performance in Q2 2025 has raised questions about the factors behind the recent market reaction. The company's core operating metrics suggest a more stable foundation. North American same property NOI growth hit 4.9%, with manufactured housing communities leading the way at 7.7% growth.

This performance is especially significant given the broader economic environment. While the company continues to manage debt with a total debt-to-equity ratio of 62.07%, it has maintained a consistent dividend payout, including a $1.04 quarterly dividend in December 2025.

What Analysts Are Watching

Analysts are closely monitoring Sun Communities' strategic direction. The company has identified potential 1031 exchange acquisitions valued at $565 million, signaling a continued focus on growth through acquisition. This aligns with its long-term strategy of expanding its portfolio of high-demand properties.

Another key point of interest is the upcoming leadership transition. Mark Patten, the newly appointed Chief Financial Officer, brings extensive experience from CTO Realty Growth and is expected to play a pivotal role in managing the company's capital structure and growth initiatives.

Sun's recent performance also reflects the challenges inherent in its business model. The trailing twelve months return on investment remains negative at -3.90%, highlighting the need for operational improvements. Despite these challenges, the company's gross margin of 47.19% and net profit margin of 31.35% suggest strong pricing power and operational efficiency.

Investor sentiment is also influenced by the broader market context. Sun Communities operates in a sector that benefits from demographic trends and economic cycles. With nearly 50% of its portfolio located in Florida and Michigan near major water bodies, the company is well-positioned to capitalize on demand for recreational and vacation properties.

What Comes Next

The company's ability to execute on its strategic initiatives will be critical in the coming months. With a new CFO in place and a focus on high-potential 1031 exchange acquisitions, Sun Communities appears to be taking a more proactive approach to growth.

Investors will also be watching the performance of its manufactured housing communities, which have shown the strongest growth. These properties account for nearly two-thirds of Sun's portfolio, making their performance a key indicator of overall business health.

The company's long-term success will depend on its ability to maintain this momentum while managing debt and capital expenditures. With a strong balance sheet and a clear strategic direction, Sun Communities could position itself for a stronger 2026.