As of June 30, 2026, we had two share-based compensation plans: the Sun Communities, Inc. 2015 Equity Incentive Plan (as amended, the "2015 Equity Incentive Plan") and the First Amended and Restated 2004 Non-Employee Director Option Plan (as amended, the "2004 Non-Employee Director Option Plan"). Outstanding awards include time-based and performance-based restricted stock awards ("RSAs") and performance-based restricted stock units ("RSUs"). We believe granting equity awards will provide certain executives, key employees, and directors additional incentives to promote our financial success and promote employee and director retention by providing an opportunity to acquire or increase the direct proprietary interest of those individuals in our operations and future. Time-based awards for directors generally vest over three years. Time-based awards for key employees and executives generally vest over three years to five years. Market and performance condition awards for executives generally vest after three years. For RSAs, award recipients receive non-forfeitable distribution payments on unvested shares. For RSUs, award recipients receive forfeitable distribution equivalents on unvested units with payment upon vesting.

During the six months ended June 30, 2026, we granted performance-based RSUs to certain executives that provide the right to receive shares of our common stock at a future date. The performance-based RSUs vest at up to 200% of the target number of units, with the ultimate number of shares to be issued based on the total shareholder return of the Company's common stock and / or operating performance metrics, measured over a three-year performance period. In accordance with ASC 718, "Compensation-Stock Compensation," the fair value of RSUs subject to a market condition was measured using a Monte Carlo valuation model and the fair value of RSUs subject to a performance condition was measured based on the expected probability that the underlying units will vest using actual results and the forecast for the respective key performance metric during the performance period.

Grant Period

Type

Plan

RSUs Granted

Weighted Average Grant Date Fair Value

Vesting Type

2026

Executive Officers

2015 Equity Incentive Plan

49,624

$148.90(1)

Market Condition

2026

Executive Officers

2015 Equity Incentive Plan

9,825

$125.17(2)

Performance Condition


Grant Period	Type	Plan	Shares Granted	Weighted Average Grant Date Fair Value	Vesting Type
2026	Key Employees	2015 Equity Incentive Plan	127,229	$135.00(1)	Time Based
2026	Executive Officers	2015 Equity Incentive Plan	63,556	$124.14(1)	Time Based
2026	Directors	2004 Non-Employee Director Option Plan	14,553	$123.68(1)	Time Based
2025	Key Employees	2015 Equity Incentive Plan	137,400	$133.39(1)	Time Based
2025	Executive Officers	2015 Equity Incentive Plan	38,000	$133.63(1)	Time Based
2025	Executive Officers	2015 Equity Incentive Plan	87,000	$106.62(2)	Market Condition
2025	Directors	2004 Non-Employee Director Option Plan	14,000	$122.78(1)	Time Based

During the three and six months ended June 30, 2026, we modified certain unvested RSAs to accelerate the vesting terms such that the respective awards vested in connection with the termination or retirement of the eligible grantees ("accelerated vestings"). We accounted for the accelerated vestings as modifications under ASC 718, "Compensation-Stock Compensation," and recognized compensation expense based on the incremental fair value of the modified awards. Accordingly, during the three months ended June 30, 2026, we recognized accelerated share-based compensation expense of $4.9 million within General and administrative expense related to 30,546 time-based RSAs and 19,200 performance-based RSAs previously subject to a market condition. During the six months ended June 30, 2026, we recognized accelerated share-based compensation expense of $13.8 million within General and administrative expense related to 88,546 time-based RSAs and 94,200 performance-based RSAs previously subject to a market condition.

The vesting requirements for 58,696 and 14,460 restricted shares granted to our executives, directors, and employees were satisfied during the three months ended June 30, 2026 and 2025, respectively. The vesting requirements for 295,985 and 188,569 restricted shares granted to our executives, directors, and employees were satisfied during the six months ended June 30, 2026 and 2025, respectively.

We recognized total share-based compensation costs within General and administrative expense on the Condensed Consolidated Statements of Operations of $12.7 million and $8.7 million during the three months ended June 30, 2026 and 2025, and $29.1 million and $17.5 million during the six months ended June 30, 2026 and 2025, respectively.