Sale of UK Business - Leaving Europe Behind

Research evidence excerpt

Sale of UK Business - Leaving Europe Behind

May 21, 2026

Transaction & Model Update Notes

Summary of today's announcement

Sun Communities announced today that it has entered into a definitive agreement to sell its UK assets, including the

Park Holidays business, to funds affiliated with Aermont Capital in an all-cash transaction valued at £768 million, or

approximately $1.03 billion. The transaction is intended to simplify the portfolio and reposition SUI as a focused North

American manufactured housing and RV platform. Management noted that, post-transaction, North American MH and

RV real property NOI is expected to represent approximately 95% of total NOI, while the transaction should also

improve financial flexibility and increase the company’s exposure to more predictable annual income streams. The

transaction remains subject to customary closing conditions, including UK Financial Conduct Authority approval, and

is expected to close in the second half of 2026.

Recap of our prior analysis and valuation framework

In our prior note here, we laid out a framework for investors to think through the potential financial impact of a full UK

disposition. We used a 5.5% cap rate on the cash NOI, generating a real property value of approximately $1.56 billion.

We also estimated approximately $51 million of UK home sales NOI, which we valued at a 12% cap rate, or an 8.5x

multiple, resulting in $434 million of additional value. Together, this would have produced a base case valuation of

roughly $2.0 billion. From an earnings perspective, our prior analysis assumed a 4.5% reinvestment rate on sale

proceeds and suggested the transaction would be manageable, with FFO dilution ranging from roughly $0.10 to $0.24

per share, or 1.5% to 3.4%, depending on the ultimate gross sale price.