Sun Communities enters new $2 billion credit facility, terminates prior $3.05 billion agreement

Published 22/09/2025, 22:26
Sun Communities enters new $2 billion credit facility, terminates prior $3.05 billion agreement

Sun Communities, Inc. (NYSE:SUI), a prominent player in the Residential REITs industry with a market capitalization of $16.5 billion, announced Monday that it has entered into a new credit agreement, establishing a $2.0 billion revolving credit facility. According to InvestingPro data, the company maintains a strong financial position with liquid assets exceeding short-term obligations. The new agreement, signed on September 17, 2025, involves Sun Communities Operating Limited Partnership as the borrower and Sun Communities, Inc. as the parent guarantor. J.P. Morgan acts as the administrative agent, with participation from several major financial institutions.

The new facility replaces the company’s previous $3.05 billion credit agreement, which was set to mature on April 7, 2026. The prior agreement was terminated effective September 17, 2025, in connection with the execution of the new credit arrangement.

Under the new agreement, Sun Communities Operating Limited Partnership may borrow up to $2.0 billion, with the option to increase total borrowings by up to an additional $1.0 billion, subject to certain conditions and lender approval. The new credit facility has a maturity date of January 31, 2030, and includes options for two six-month extensions at the borrower’s discretion, provided certain requirements are met.

The agreement allows for borrowings in U.S. Dollars, Euros, Canadian Dollars, and Australian Dollars, with interest rates based on the company’s credit ratings. Margins range from 0.725% to 1.40% for all interest rates except alternate base rate (ABR) loans, which have a margin range of 0.000% to 0.400%. Based on current credit ratings, the margin is 0.725% for all loans other than ABR loans and 0.000% for ABR loans. As of the closing of the new facility, there were no outstanding borrowings.

The new facility includes provisions that allow the lenders to require immediate repayment in the event of a default. The information in this article is based on a press release statement and a filing with the Securities and Exchange Commission. For a comprehensive analysis of Sun Communities’ financial health, including detailed metrics and expert insights, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with in-depth analysis and actionable intelligence.

In other recent news, Sun Communities Inc. reported an outstanding second quarter for 2025, with earnings per share (EPS) hitting $10.02, far exceeding the anticipated $0.84. This resulted in an EPS surprise of 1092.86%. The company’s revenue also outperformed expectations, reaching $623.5 million compared to the forecasted $604.76 million. These impressive earnings highlight the company’s strong financial performance. Additionally, analysts have noted the significant earnings beat, although specific upgrades or downgrades were not mentioned. Investors have shown confidence in Sun Communities following these results. The company’s substantial earnings and revenue figures are central to recent developments. These financial achievements are crucial for investors keeping an eye on Sun Communities.

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