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Get filing alertsSun Communities creates Series M Preferred OP Units with step-up distributions and exchange rights
Filed October 2, 2026 · Period ending October 1, 2026 · ~1 min read
Key Changes
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SCOLP issued 283,126 Series M Preferred Units at $100 per unit, totaling $28.3 million, as consideration for contributed assets.
Item 3.02 verify on EDGAR → -
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The new units pay quarterly distributions at 3.2% for the first year, 3.4% for the second, and 3.6% thereafter on the $100 issue price.
Item 1.01 verify on EDGAR → -
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Each unit is exchangeable into common stock at a conversion price of $174.00 per share, or about 0.5747 shares per unit.
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Holders can require SCOLP to redeem units at $100 plus accrued distributions beginning October 1, 2027.
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The units rank senior to common OP units and Series A-3 Preferred Units, but junior to all other outstanding preferred OP units.
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Summary
Sun Communities, through its operating partnership SCOLP, created a new class of preferred operating partnership units called Series M Preferred Units. The units were issued at $100 each, with 283,126 units issued on October 1, 2026, as consideration for contributed assets, totaling approximately $28.3 million.
The units carry a stepped distribution rate: 3.2% annually for the first year, 3.4% for the second year, and 3.6% thereafter. Holders can exchange each unit for common stock at a conversion price of $174.00 per share, and beginning October 1, 2027, they can require SCOLP to redeem the units at the $100 issue price plus accrued distributions.
For retail investors, this filing signals a new capital-raising instrument that sits in the middle of the partnership's capital structure—senior to common OP units and Series A-3 Preferred Units, but junior to other outstanding preferred OP units. The step-up distribution and redemption right provide some investor protections, while the exchange feature offers potential upside if the common stock appreciates above the conversion price. The issuance was made in a private placement under Section 4(a)(2), so the units are restricted securities.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Sun Communities created Series M Preferred OP Units with a $100 issue price, step-up distributions, and exchange rights into common stock.
Added in current filing · verify on EDGAR →
The Partnership Amendment created a new class of preferred OP units named Series M Preferred Units.
Sun Communities, as general partner of its operating partnership SCOLP, established a new class of preferred operating partnership units called Series M Preferred Units. This is a new capital-raising instrument that will sit in the partnership's capital structure.
Added in current filing · verify on EDGAR →
the holders of Series M Preferred Units will have the right to cause SCOLP to redeem all or a portion of their Series M Preferred Units for $100.00 per unit (plus any accrued but unpaid distributions) at any time on or after October 1, 2027.
Beginning October 1, 2027, holders can require SCOLP to redeem their units at the $100.00 issue price plus accrued distributions. This gives investors a put option after the first year, subject to certain limitations.
Event · Item 3.02 — Unregistered Sales of Equity Securities
Item 3.02 — Unregistered Sales of Equity Securities filed; see Key Changes for terms.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The issuance by SCOLP of the Series M Preferred Units was made in reliance upon the exemption from registration afforded by Section 4(a) (2) of the Securities Act of 1933, as amended.
The issuance was made in reliance on the Section 4(a)(2) private placement exemption, meaning the units were not registered with the SEC and are restricted securities.
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 5, 2026 · How we verify