Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Sun Communities, Inc. (SUI) Halal?

PASS

Sun Communities, Inc. · NYSE: SUI · Real Estate

The short answer

Sun Communities passes all three Shariah gates: it operates a permissible MH and RV community business (no haram business lines), carries $4,052.2M of interest-bearing debt (30.0% of its ~$13.49 billion market cap), and interest income of 2.1% of revenue is well under the 5% ceiling. Its UK Park Holidays business sale closed September 22, 2026, making it a pure-play North American operator.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Sun Communities, Inc., established in 1975 and publicly owned since December 1993, is a real estate investment trust headquartered in Southfield, Michigan, listed on the New York Stock Exchange under the ticker SUI (confirmed on the FY2025 Form 10-K cover). As of June 30, 2026, it owned, operated, or had an interest in a portfolio of 455 developed properties comprising approximately 156,130 developed sites in the United States and Canada, reported in two segments: manufactured housing (MH) communities and recreational vehicle (RV) communities.

Its core business is permissible: rental income from real property (site rents), manufactured home sales, and ancillary community services. The company's filings disclose no alcohol, tobacco, gambling, or pork business lines, and it is not an interest-based lender. Its interest income — from notes receivable financing tied to manufactured home sales — is captured under gate 3. On September 22, 2026, the company closed the all-cash sale of its UK Park Holidays business for net proceeds of approximately $1.03 billion, positioning Sun as a pure-play North American MH and RV owner and operator; the UK business had already been presented as a discontinued operation from the Q2 2026 10-Q. With no haram core business lines, the business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (30.04%, ceiling 33%). Per Sun Communities' Q2 2026 condensed consolidated balance sheet (June 30, 2026, published with its July 27, 2026 earnings release), interest-bearing debt totals $4,052.2 million: mortgage loans payable $2,225.3 million, secured borrowings on collateralized receivables $39.2 million, and unsecured debt $1,787.7 million. Operating lease liabilities are excluded — they are not interest-bearing debt — and the $428.9 million of liabilities held for sale tied to the discontinued UK business is also excluded. The company's own debt summary reports total debt of $4.1 billion with a 3.3% weighted average rate and 6.9-year average maturity; the maturity schedule shows $1.8 billion of senior unsecured notes and the rest in mortgage loans.

$4,052.2 million of interest-bearing debt against a market capitalization of about $13.49 billion (WallStreetZen, October 1, 2026; $110.78 per share on 121,800,957 shares outstanding) is 30.04%, under the 33% ceiling. This is a thinner margin than most screened names — the September 2026 Park Holidays proceeds were earmarked partly for debt paydown, which had not yet shown up in the June 30 balance sheet — so future leverage moves warrant attention.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (2.10%, ceiling 5%). Sun Communities separately discloses interest income as its own revenue line — not buried in 'other income.' For FY2025 (year ended December 31, 2025), the income statement reports Interest revenue of $48.5 million against total revenues of $2,306.1 million, which is 2.10%, well under the 5% ceiling. (The Q4 2025 results release's full-year figures match the FY2025 Form 10-K; its reconciliation also backs out $48.5 million of interest income in computing NOI.) This interest revenue comes mainly from notes receivable used to finance manufactured home sales at the communities.

For context, interest income in the first half of 2026 was $13.4 million — the 2026 reporting structure now presents the UK business as discontinued operations, with the continuing-operations interest line at $13.4 million for the six months ended June 30, 2026.

Key figures used

Frequently asked questions

What does Sun Communities do?

Sun Communities, Inc. (NYSE: SUI) is a real estate investment trust established in 1975 and publicly owned since December 1993, headquartered in Southfield, Michigan. As of June 30, 2026, it owned, operated, or had an interest in a portfolio of 455 developed properties comprising approximately 156,130 developed sites in the United States and Canada. It reports two segments: manufactured housing (MH) communities and recreational vehicle (RV) communities. Its revenue comes mainly from real property rents and site fees, plus manufactured home sales and ancillary services. On September 22, 2026, it closed the all-cash $1.03 billion sale of its UK Park Holidays business, making it a pure-play North American MH and RV owner and operator.

Is Sun Communities' business Shariah compliant?

Sun Communities is a landlord and community operator - it earns rental income from manufactured housing and RV sites, sells manufactured homes, and provides ancillary services. It is not an interest-based lender and its filings disclose no alcohol, tobacco, gambling, or pork business lines. The company does earn interest income from financing notes receivable tied to manufactured home sales; that income is captured under this screener's third gate at 2.1% of revenue, well under the 5% ceiling. With no haram core business lines, the business passes this screener's first gate.

How much interest-bearing debt does Sun Communities have?

Per Sun Communities' Q2 2026 condensed consolidated balance sheet (June 30, 2026, published with its July 27, 2026 earnings release), interest-bearing debt was $4,052.2 million: mortgage loans payable $2,225.3 million, secured borrowings on collateralized receivables $39.2 million, and unsecured debt $1,787.7 million. Operating lease liabilities are not part of this total, and the $428.9 million of liabilities held for sale tied to the UK discontinued business is excluded. $4,052.2 million against a market cap of about $13.49 billion is 30.04%, under the 33% ceiling - though this is a thin margin compared with most screened names, so future leverage moves warrant attention.

How much interest income does Sun Communities earn?

Sun Communities separately discloses interest income as its own revenue line: for FY2025 the income statement reports Interest revenue of $48.5 million against total revenues of $2,306.1 million, which is 2.10% - under the 5% non-compliant income ceiling. (The Q4 2025 results, whose full-year figures match the FY2025 Form 10-K for the year ended December 31, 2025, confirm both numbers.) For reference, interest income in the first half of 2026 was $13.4 million.

What do third-party Shariah screeners say about Sun Communities?

Zoya publishes a Sun Communities (SUI) page and as of September 2026 flags the stock as Shariah-compliant, but the page's FAQ text is internally contradictory about interest income, so treat its published reasoning with caution. I could not verify a Musaffa rating page for SUI or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).