Sun Communities' notes under review for upgrade by Moody's.

Moody's Ratings has placed Sun Communities Operating Ltd. Partnership's ("Sun") ratings under review for a possible upgrade. This review follows Sun's announcement of a definitive agreement to sell its Safe Harbor marina business to Blackstone Infrastructure for $5.65 billion on February 24, 2025. Prior to this announcement, Sun's Baa3 issuer rating and Baa3 backed senior unsecured rating were considered stable.

The sale of the marina business is expected to be completed in the second quarter of 2025, pending regulatory approval. Sun plans to use the proceeds from the sale for debt repayment, shareholder distributions, and reinvestment in its core operations. The review reflects the potential for significant improvement in the REIT's leverage metrics if the acquisition is completed as planned, with the pro forma net debt/EBITDA ratio projected to be around 2.5-3.0x at closing, a notable decrease from over 6.0x at the end of 2024.