Sun Communities, Inc. announced the creation of a new class of preferred operating partnership units on October 1, 2026. The company, as general partner of its operating subsidiary Sun Communities Operating Limited Partnership (SCOLP), entered into the Thirteenth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of SCOLP to establish the Series M Preferred Units.
The Series M Preferred Units have an issue price of $100.00 per unit. The units provide for quarterly distributions at the following annual rates: 3.2% during the 12 months ending October 1, 2027; 3.4% during the 12 months ending October 1, 2028; and 3.6% thereafter.
Each Series M Preferred Unit is exchangeable into shares of the Company’s common stock at a conversion price of $174.00 per share. The exchange rate is calculated by dividing $100.00 by $174.00. This ratio is subject to adjustment for certain capital events.
Regarding redemption rights, holders of the Series M Preferred Units may cause SCOLP to redeem all or a portion of their units for $100.00 per unit, plus any accrued but unpaid distributions, on or after October 1, 2027.
In terms of ranking, the Series M Preferred Units are senior to SCOLP’s outstanding Common OP Units and Series A-3 Preferred Units. They are junior to all other series of SCOLP’s outstanding preferred OP Units and any other partnership units that specifically rank senior to the Series M Preferred Units.
On the same date, SCOLP issued 283,126 Series M Preferred Units at $100 per unit. These units were issued as consideration for the initial holder’s contribution of certain assets to SCOLP. The issuance was made pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.
