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# Sun Communities Booked A $78.9 Million Tax Asset From Its UK Sale, Then Wrote All Of It Off
- URL: https://www.bullished.co/sun-communities-booked-a-78-9-million-tax-asset-from-its-uk-sale-then-wrote-all-of-it-off-16768028/
- Published: 2026-10-27T19:41:05.000Z
- Updated: 2026-10-27T19:41:05.000Z
- Description: The UK exit left tax-loss carryforwards the company has fully reserved against, while buybacks took a large share of the cash.
- Author: Matteo Parrino
- Tags: SEC Filings, SUI, Industry: Real Estate

[Sun Communities](https://www.bullished.co/tag/sui/), which owns manufactured housing communities and RV resorts, recorded a [$78.9 million deferred tax asset](https://www.sec.gov/Archives/edgar/data/0000912593/000091259326000276/sui-20260930.htm?ref=bullished.co) tied to loss carryforwards from the sale of its UK holiday-park business, then reserved against all of it, leaving a net asset of $0, according to its quarterly report filed Tuesday.

## A tax asset that nets to zero

The company said it booked the deferred tax asset within continuing operations and a matching full valuation allowance, a reserve that cancels the asset's value. The [prior quarter's report](https://www.sec.gov/Archives/edgar/data/0000912593/000091259326000234/sui-20260630.htm?ref=bullished.co) carried no such asset.

The sale to Panther Bidco Limited [closed September 22](https://www.globenewswire.com/de/news-release/2026/10/26/3388554/0/en/sun-communities-reports-results-for-the-third-quarter-of-2026.html?ref=bullished.co) for gross proceeds of $1.05 billion, or £772.3 million, and about $1.03 billion after closing and employee separation costs. Settling working capital drove most of a $50.6 million closing charge, booked as a higher valuation allowance and loss on disposal. It had already taken a non-cash charge of $1.1 billion in the second quarter to cut the business to its expected sale price.

Sun Communities said it will keep providing some IT services to Park Holidays under a transition agreement through no later than May 31, 2027.

## Where the cash went

Management's priorities for the proceeds are share repurchases, debt reduction and general corporate needs. Through September 30, the company had repurchased 3.8 million shares for $464.5 million, leaving $595.5 million on its authorization. A quarter earlier the figures were 1.4 million shares for $171.2 million and $888.9 million remaining.

It also settled $509.0 million of borrowings under its Senior Credit Facility with sale proceeds, and the facility had no borrowings at quarter end. Cash flow from financing continuing operations was a $419.6 million outflow for the nine months, which the company tied to a net capital transfer of $1.0 billion from Park Holidays.

Subsequent to quarter end, in October, it repurchased 0.7 million more shares for $79.8 million.

## A leaner company, a lower stock

Sun Communities held 513 developed properties at the end of 2025, per its annual report. After the sale it reports 452 in the U.S. and Canada, including 295 manufactured housing and 157 RV communities, and has collapsed from three reporting segments to two.

Shares traded at $115.65 in Tuesday trading, down 3.50% from the prior close of $119.84, for a market value of $14.6 billion.

The fourth-quarter report will show how much of the remaining $595.5 million buyback authorization was spent after October.

### Sources

- [10-Q Filing — Sun Communities (SUI)](https://www.sec.gov/Archives/edgar/data/0000912593/000091259326000276/sui-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Sun Communities (SUI), Q2 FY2026 filed 2026-07-28 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000912593/000091259326000234/sui-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, exhibit991pressreleaseands.htm) — Sun Communities, filed 2026-10-26](https://www.sec.gov/Archives/edgar/data/0000912593/000091259326000272/exhibit991pressreleaseands.htm?ref=bullished.co) — SEC EDGAR
- [Sun Communities Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/10/62627351/sun-communities-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Sun Communities FFO of $2.35 beats by $0.07, revenue of $558.2M misses by $16.82M (NYSE:SUI) | Seeking Alpha](https://seekingalpha.com/news/4657569-sun-communities-ffo-of-2%5F35-beats-by-0%5F07-revenue-of-558%5F2m-misses-by-16%5F82m?ref=bullished.co) — seekingalpha.com
- [Sun outlines 2026 core FFO of $6.97-$7.05 as 2027 rent increases target 5.4% in MH and 4.4% in annual RV (NYSE:SUI)](https://seekingalpha.com/news/4658226-sun-outlines-2026-core-ffo-of-6%5F97-7%5F05-as-2027-rent-increases-target-5%5F4-percent-in-mh-and?ref=bullished.co) — seekingalpha.com
- [Sun Communities Reports Results for the Third Quarter of](https://www.globenewswire.com/de/news-release/2026/10/26/3388554/0/en/sun-communities-reports-results-for-the-third-quarter-of-2026.html?ref=bullished.co) — globenewswire.com

### More on Sun Communities

- [Sun Communities Won't Say If 2027 Earnings Grow, Citing UK Sale And $10 Million Of Lost Hurricane Income](https://www.bullished.co/sun-communities-wont-say-if-2027-earnings-grow-citing-uk-sale-and-10-million-of-lost-b685d711/)
- [Sun Communities CEO Sees Rental Homes As Ripe For 'Optimization' In 2027](https://www.bullished.co/sun-communities-ceo-sees-rental-homes-as-ripe-for-optimization-in-2027-b4c2206d/)
- [Sun Communities Earns $137.1 Million From Continuing Operations After UK Sale, Raises Rent Outlook](https://www.bullished.co/sun-communities-earns-137-1-million-from-continuing-operations-after-uk-sale-raises-rent-ce6a2fb5/)

[All Sun Communities (SUI) coverage →](https://www.bullished.co/tag/sui/)