Sun Communities, Inc.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Community's first quarter 2026 earnings conference call. At this time, management would like me to inform you that certain statements made during this call, which are not historical facts, may be deemed forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors of risk that could cause actual results in different materials from expectations are detailed in today's press release and from time to time in the company's periodic filings with the SEC. The company undertakes no obligation to advise or update any forward-looking statements to reflect events or circumstances after the date of this release. Having said that, I'd like to introduce management with us today. Charles Young, Chief Executive Officer. John McLaren. President and Chief Operating Officer, Fernando Castro Caratini, Chief Financial Officer, and Aaron Weiss, Executive Vice President and Chief Investment Officer. After the remarks, there will be an opportunity to ask questions. For those who would like to participate in the question and answer session, management asks that you please limit yourselves to one question so that everyone who would like to participate has ample opportunity. As a reminder, this call is being recorded. Now I'll turn the call over to Charles Young, Chief Executive Officer. Mr. Young, you may begin.

Good morning, and thank you for joining us to discuss our first quarter 2026 earnings and updated guidance. We are pleased with our performance this quarter, building on the strong momentum established in 2025. Our simplified platform, strengthened balance sheet, and clear positioning as a leading MH and RV operator continues to support our progress. Across manufactured housing and RV, our communities benefit from their affordability and limited supply dynamics, which continue to support strong demand, high occupancy, and stable recurring income. We entered the year from a position of strength and remain confident in the long-term opportunity ahead, as Sun plays an important role in addressing broader affordability needs, with manufactured housing serving as a critical housing solution and RV offering flexible value-oriented options, which together reinforces the durability of our business. Our momentum is clearly reflected in our first quarter performance, where we delivered core FFO per share of $1.40, exceeding the high end of our expectations, and by raising our full-year guidance range. By driving MH and RV outperformance, maximizing our core portfolio, and leveraging our strong financial position, this quarter highlights the durability, consistency, and underlying value proposition our platform delivers, while also reflecting execution on our three core pillar strategy. First, disciplined capital allocation, where we continue to maintain a strong and flexible balance sheet while pursuing selective value-enhancing growth opportunities. we continue to execute our investment strategy acquiring select assets that align with our portfolio and operating footprint. Over the past several quarters, we actively deployed capital into our core MH&RB platform, including the integration of over $450 million of acquisitions completed in late 2025, along with additional investments in the first quarter. At the same time, we have remained committed to returning capital to shareholders demonstrating both confidence in the business and a disciplined approach to capital allocation, with over $1.5 billion returned to shareholders since the beginning of 2025, including continued share repurchases in the first quarter of 2026. The second pillar, optimizing our operating platform, was evident in the outperformance of our North American portfolio, where same-property MH and RV NOI increased 6.3%. well ahead of our expectations, and performance in our UK segment was in line with plan. These results reflect continued progress in driving consistency, accountability, and execution across the organization, building on our strong foundation. We are laser-focused on maximizing the performance of our core platform, where we see the most attractive long-term growth, margin expansion, and capital allocation opportunities. And third, targeted investment in our communities, infrastructure, and digital capabilities, which continues to enhance the resident guest and team member experience while supporting more efficient data-driven decision-making across the platform. Importantly, these investments are focused on directly enhancing the resident value proposition, including the quality of our communities and the overall resident and guest experience. Our greatest strength remains our culture, and our people. I want to thank the team members for their continued dedication and for the role they play in driving our results. I'll now turn the call over to John and Fernando to discuss our results in more detail. John? Thank you, Charles. In the first quarter, our North American same-property MH and RV NOI increased 6.3% compared to the prior year, driven by a 5.9% increase in revenue partially offset by a 5.2% increase in expenses. same-property occupancy remains strong at over 98 percent, reflecting continued demand across our communities. Within manufactured housing, same-property NOI increased 6.3 percent with revenues up 6.6 percent, primarily driven by site rent growth. Expense growth was consistent with our expectations, reflecting ongoing progress on payroll efficiencies and procurement initiatives. This outperformance demonstrates the continued execution of our operating strategy with a strong focus on discipline expense management while driving sustainable top-line growth. Building on the foundation we established last year, we are seeing the benefits of our operating discipline, accountability across the organization, and continued focus on service and execution at the property level. Turning to our RV segment, Same property NOI also increased 6.3% for the quarter, with revenues up 4.2% and expenses increasing by 2.3%. We enter the year with a strong focus on securing RV annual renewals earlier in the cycle, and the team has done an excellent job accelerating that pacing in the first quarter. This positions us well to enhance the annual and transient revenue mix as we move into peak season. On the transient side, we are encouraged by what we're seeing. Demand trends are stable and pacing is ahead of where we were at this point last year. That said, it is early in the season, and the first quarter represents a relatively small portion of transient's contribution to our full year results. So while we are pleased with transient's early 2026 performance and outlook, we remain appropriately measured in our expectations and will provide additional color as we progress through the second and third quarters. Consistent with our strategic pillar to optimize our operating platform, one key area of focus is to enhance data analytics and asset management to make better, more proactive decisions and optimize our portfolio and maximize performance across all segments of the business. Turning to the UK, we are very pleased with our team's performance this quarter and appreciate their continued focus on execution and operational excellence. Same property NOI increased 1.6%, with revenues up 5.3% and expenses in line with guidance. We are incredibly proud of the unmatched team we have across the organization, whose continued dedication and execution drove strong performance throughout 2025 and the first quarter of 2026, and I want to thank everyone for their ongoing service, hard work, and commitment to delivering for all of our stakeholders. I'll now turn the call over to Fernando to walk through our financial results and 2026 guidance updates. Fernando? Thank you, John. As Charles highlighted, 4 FFO per share for the quarter came in at $1.40, exceeding the high end of our guidance range. The outperformance was primarily driven by the continued strength in our manufactured housing fundamentals, complemented by better than expected performance in RV transient within our North America MH and RV segments. The first quarter represents a seasonally smaller portion of our full-year earnings, primarily due to RV contribution, and we remain thoughtful in how we translate this outperformance into our full-year outlook. From a capital allocation perspective, we continue to remain disciplined. During the quarter, we bought back approximately half a million shares at an average price of $126 per share for a total of $60 million repurchased. As of March 31st, Sun's debt balance stood at $4.3 billion, with a weighted average interest rate of 3.4% and a weighted average maturity of 6.8 years. Our net debt to trailing 12-month recurring EBITDA ratio was 3.7 times, and we continue to maintain a strong and flexible balance sheet with $492 million of debt maturing in 2026. Turning to guidance, As detailed in yesterday's release, we are raising our full year 2026 core FFO per share guidance range to 687 to 707 with a midpoint of 697, a four cent increase above the prior range, reflecting a strong start to the year and continued outperformance in our core manufactured housing business. At the midpoint, within North America, we now expect full year same property NOI growth of approximately 4.7%. with manufactured housing increasing to 6.2 percent, up from prior guidance, while RV remains unchanged at 0.9 percent growth. Beyond MH, the incremental uplift of guidance is driven by modest improvements in interest income, lower expected interest expense, and contributions from brokerage and other income streams. All other guidance assumptions and ranges remain unchanged. For additional details on our outlook and key assumptions, please refer to our supplemental disclosures. Our guidance reflects completed acquisitions, dispositions, and capital markets activity through April 27th. It does not assume future acquisitions, additional share purchases, or other capital markets activity, which is often reflected in analyst estimates for the year. With that, I'll turn the call back to Charles for closing remarks. Thank you, Fernando. Before opening line for questions, I want to highlight how encouraged we are by the momentum we are seeing across the business. This follows our solid 2025 results, and we are well positioned to sustain our strong performance moving through 2026. We are very excited about the opportunity in front of us, supported by the strength of our platform, the quality of our team, the flexibility of our balance sheet, and the favorable fundamentals across our business. We remain focused on our three core pillars of disciplined capital allocation, optimization of our operating platform, and strategic investment, which together position us to deliver consistent, durable growth and long-term value for our stakeholders. With that, we'll open the line for questions.

Thank you. Well, now we conduct your question and answer session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to move your question from the queue. As a reminder, management asks that you please limit yourselves to one question so everyone who would like to participate has ample opportunity. Our first question today is coming from Eric Wolf from Citi. Your line is now live.