Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (February 2016)
20 slides from Sun Communities's investor presentation, Feb 24, 2016
Slide 1: Sun Communities, Inc. February 2016
SUN COMMUNITIES, INC. FEBRUARY 2016
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc. (the "Company") and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no repr
Slide 3: Sun Communities, Inc. (NYSE:SUI)
SUN COMMUNITIES, INC. (NYSE:SUI) 3 185 manufactured housing only communities 10 combined manufactured housing and recreational vehicle communities 36 recreational vehicle only communities Source: Company Information. Refer to Sun Communities, Inc. Form 10-K for the year ended December 31, 2015 for a
Slide 4: Affordability Drives Manufactured Housing
AFFORDABILITY Affordability Drives Manufactured Housing 4 • Comparing Sun manufactured homes to the multifamily median, a manufactured home provides approximately 14% more space at approximately 45% less cost per square foot1 SUI Manufactured Homes VS. rent ~$860 per/month Multifamily Housing ~$1,10
Slide 5: Affordability Drives Manufactured Housing: vs. Single Family
The median income in the 29 states in which Sun operates is $54,900. The average single family home costs over 5x the price of a MH unit. * 2014 Average 2 person household income - 29 states in which SUI operates per US Census data. Housing data from 2015 MHI Quick Facts Manufactured Housing vs. Sin
Slide 6: Affordability Drives Manufactured Housing: Occupancy and Mortgage Rates
6 AFFORDABILITY Affordability Drives Manufactured Housing 83.0% 85.5% 88.0% 90.5% 93.0% 95.5% 98.0% -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 2009 2010 2011 2012 2013 2014 2015 SUN’s Occupancy1 Mortgage Rates2 Mortgages2 Pe rc en ta ge o f c ha ng e in m or tg ag e ra te s an d ac ce
Slide 7: Stability of Revenue
Move-outs and Resales Stable and growing revenue due to: • Low turnover of owner occupied sites due to high cost to move a home ($4,000- $10,000) • Average tenure of our residents in our communities is 13 years • Average term of home in our communities is approximately 50 years STABILITY OF REVENUE
Slide 8: Capital Expenditures
8 CAPITAL EXPENDITURES • Manufactured housing is a low capex business relative to its peers as it is largely a land ownership business Source: Company Filings 1 For the year ended December 31, 2014. Capex as a percent of revenue1 12.2% 8.8% 4.7% 3.6% Multi-family Student Housing Self-Storage Manufac
Slide 9: Recession Resistant
RECESSION RESISTANT 9 Same Site Occupancy 0.7% 3.1% 3.6% 5.5% 5.9% 7.7% 9.1% 2009 2010 2011 2012 2013 2014 2015 404 413 425 437 445 457 472 2009 2010 2011 2012 2013 2014 2015 MonthlySame Site Rent (weighted average) Same Site NOI (change %) 83.4% 84.3% 85.8% 86.7% 88.9% 93.2% 96.8% 2009 2010 2011 20
Slide 10: Same Site NOI
SAME SITE NOI Sun’s average same site NOI growth has exceeded the Industry Average by 160 bps and Apartment Average by 140 bps over a 16 year period. 10 -9.00% -8.00% -7.00% -6.00% -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 1Q 99 2Q 9
Slide 11: Same Site Indexed NOI Growth
SAME SITE INDEXED NOI GROWTH MH is the most recession resistant sector of the housing and commercial real estate sectors and has consistently outperformed multifamily in same site NOI growth since 2000. 11 Source: SNL
Slide 12: Realigning the Portfolio
REALIGNING THE PORTFOLIO 12 Comparing Sun manufactured homes to the multifamily median, Sun is reshaping its portfolio through strategic acquisitions, dispositions and expansions Geographic Diversification Demographic Profile 4% 7% 5% 27% 31% All -Age Age-Restricted 26% 74% MI FL IN TX AZ Other So
Slide 13: Timeline: Strategic Acquisitions
TIMELINE : STRATEGIC ACQUISITIONS 13 Since May 2011, Sun has acquired over $2.6 billion of communities, increasing its number of sites and communities by 84% and 69%, respectively 1 Source: Company Information. Refer to Sun Communities, Inc. Form 10-K for the year ended December 31, 2015 for addit
Slide 14: Growth Through Accretive Acquisitions
GROWTH THROUGH ACCRETIVE ACQUISITIONS A Look at Acquisition Performance 14 $12 $17 $22 $27 $32 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Revenue NOI $20 $25 $30 $35 $40 $45 $50 $55 YEAR 1 YEAR 2 YEAR 3 YEAR 4 Revenue NOI 2011 Acquisitions (26 Communities) 2012 Acquisitions (11 Communities) 91.4% 96.8% 97.1
Slide 15: Sun RV Portfolio Performance
89% 88% 82% 77% 81% 8% 8% 12% 13% 10% 2% 4% 6% 9% 9% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2011 2012 2013 2014 2015 MH Income Annual RV Income Transient RV Income $- $10 $20 $30 $40 $50 $60 $70 $80 $90 YEAR 1 YEAR 2 YEAR 3 YEAR 4 Revenue NOI SUN RV PORTFOLIO PERFORMANCE Strong RV Portfolio Performanc
Slide 16: Growth Through Expansion Opportunities
GROWTH THROUGH EXPANSION OPPORTUNITIES • Inventory of over 7,100 zoned and entitled sites available for expansion at 38 communities in 15 states • Expanding in communities with strong demand evidenced by occupancy of ~95% • Expansion lease-up is driven by sales, rental and relocation programs • Appr
Slide 17: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET Net Debt / Enterprise Value 1,2 EBITDA 3,4 / Interest 17 Net Debt / EBITDA 3,4 Fixed Debt (%) 61.5% 50.4% 45.8% 34.8% 34.0% 2011 2012 2013 2014 2015 2.4x 2.4x 2.7x 3.0x 3.1x 2011 2012 2013 2014 2015 76.9% 84.7% 76.9% 90.8% 92.0% 2011 2012 2013 2014 2015 9.7x 8.4x 7.2x 7.3x
Slide 18: Limited Near-Term Debt Maturities
18 LIMITED NEAR-TERM DEBT MATURITIES % of Total Debt 6.7% 10.0% Well-laddered debt maturities with approximately 27% of debt maturing within 5 years 10.2% 73.1% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 <= 1 year 2-3 years 4-5 years >=6 years M ill io ns Lines of Credit Mortga
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Slide 20: Performance vs. Indices
PERFORMANCE VS. INDICES 20 275% 262% 181% 177% 175% 172% 155% 0% 50% 100% 150% 200% 250% 300% SUI SNL US REIT Manufactured Homes S&P 500 SNL US REIT Equity MSCI US REIT (RMS) S&P Small-Cap Russell 2000 Sun has outperformed many major REIT sector and major market indices over the last five years So
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