Sun Communities issues preferred OP units valued at $28.3 million in Oregon property acquisition
Sun Communities acquired indirect real property interests in Eugene, Oregon, through its operating partnership by issuing 283,126 Series M Preferred Units.
Key takeaways
- Sun Communities Inc. (SUI) issued 283,126 Series M Preferred Units valued at $28,312,600 on Oct. 1, 2026, to acquire real property interests in Eugene, Oregon. The preferred units carry cumulative distributions starting at 3.2% annually and include exchange rights into common stock at $174 per share.
Sun Communities Inc. (SUI) said through its operating subsidiary, Sun Communities Operating Limited Partnership, that it entered into the Thirteenth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership to create a new class of preferred operating partnership units.
The filing showed that the partnership issued 283,126 Series M Preferred Units at an issue price of $100 per unit, for a total stated value of $28,312,600, on Oct. 1, 2026. The units were issued to Saint Lucia/Rowan Oak MHC, LLC as consideration for the contribution of real property located in Eugene, Oregon, and other assets.
The Series M Preferred Units carry quarterly cumulative cash distributions based on a 365-day year. The rate is set at 3.2% per year for the 12 months ending Oct. 1, 2027, 3.4% per year for the 12 months ending Oct. 1, 2028, and 3.6% per year thereafter.
Holders can exchange the Series M Preferred Units at any time after the issuance date into common stock of Sun Communities Inc. The exchange rate is calculated by dividing $100 by the conversion price of $174 per share. Additionally, holders have the right to require the partnership to redeem all or a portion of the units for $100 per unit plus accrued and unpaid distributions on or after Oct. 1, 2027.