Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (November 2024)
25 slides from Sun Communities's investor presentation, Nov 6, 2024
Slide 1: Sun Communities, Inc. Investor Presentation
COUNTRY MEADOWS VILLAGE – CALDONIA, MI Sun Communities, Inc. (NYSE: SUI) Investor Presentation
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements 2 This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc., referred to herein as “we,” “our,” “Sun,” and “the Company,” and from third-party sources indicated herein. Such third-p
Slide 3: Sun Communities – Company Highlights
MH 45% RV 26%Marina 21% UK 8% Sun Communities – Company Highlights 3Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information. Refer t
Slide 4: Resilient Real Property Operations Drive Growth
MH 49% RV 22% Marina 23% UK 6% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 MH, RV, Marina & UK real property NOI Service, retail, dining and entertainment NOI UK home sales NOI North America home sales NOI 2020 2021 2022 2023 2024E Resilient Real Property Operations Drive Growth 4 NOI from re
Slide 5: Leading Owner and Operator of MH, RV, and Marinas
5 With ~179,100 operational sites and ~48,800 wet slips and dry storage spaces, Sun is the largest publicly traded owner and operator of MH, RV and Marinas Leading Owner and Operator of MH, RV, and Marinas MH Largest publicly traded owner / operator of MH communities in North America: 288 MH Communi
Slide 6: Robust Fundamentals Continue to Drive Performance
7.7% 9.1% 7.1% 6.9% 6.7% 7.3% 4.0% 11.2% 5.8% 7.3% 2.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Robust Fundamentals Continue to Drive Performance 6 3.6% North America Same Property NOI growth YTD through September 2024; expect 2.6% - 3.3% growth in 2024 Consistent annual rental rate
Slide 7: 3Q Performance and Business Update
3Q Performance and Business Update Reported Core FFO per Share of $2.34 for the quarter ended September 30, 2024 • Same Property NOI growth of 0.5% in North America and decrease of (2.3)% or $(700)k in the UK • Projected 2024 Total North America Same Property NOI growth of 2.6% - 3.3%, and UK Same P
Slide 8: Focused Priorities and Initiatives
PRIORITIES Simplified Business Model and Capital Structure Maximizing Real Property Income and Same Property NOI Focused Priorities and Initiatives Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releas
Slide 9: Acceleration of Strategic Initiatives
Acceleration of Strategic Initiatives 9 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information. Refer to information regarding non-
Slide 10: 2024 Guidance Seasonality
2024 Guidance 10 Seasonality 1Q24 2Q24 3Q24 4Q24 North America Same Property NOI MH 25% 25% 25% 25% RV 18% 26% 40% 16% Marina 19% 27% 30% 24% Total North America Same Property NOI 22% 25% 30% 23% UK Same Property NOI 14% 26% 38% 22% Home Sales FFO North America 13% 53% 23% 11% UK 17% 27% 35% 21% Con
Slide 11: Compelling Supply-Demand Fundamentals: Manufactured Housing – North America
Compelling Supply-Demand Fundamentals 11 Manufactured Housing (MH) – North America Source: Company information, U.S. Bureau of Labor Statistics., Wall Street Research and Zillow. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Rele
Slide 12: Compelling Supply-Demand Fundamentals: RV
Compelling Supply-Demand Fundamentals 12 RV Continued Demand for Affordable Vacationing Despite Declining RV Sales Growth in annual RV shipments and historical RV revenue growth Installed base: 11.2 million households own an RV versus 1.7 million RV campsites in the U.S. From 2008-2012, RV revenue f
Slide 13: Marinas Compelling Supply-Demand Fundamentals
Marinas Compelling Supply-Demand Fundamentals 13Source: Company information, NMMA and U.S. Census Bureau. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information
Slide 14: Compelling Supply-Demand Fundamentals: Manufactured Housing – UK
Compelling Supply-Demand Fundamentals 14 Manufactured Housing (MH) - UK Source: Company information, Wall Street Research and Zillow. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024
Slide 15: UK Business Model
UK Business Model 15 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information. Refer to information regarding non- GAAP financial mea
Slide 16: Sun's Track Record of NOI Growth
Sun’s Track Record of NOI Growth 16 Multifamily REITsSun Communities Resilient demand, high barriers to entry, and Sun’s investment and operational platform have resulted in consistent, and cycle tested organic cash flow growth For more than 20 years, every individual year or rolling 4-quarter perio
Slide 17: Multiple Levers Drive Long-Term FFO and Cash Flow Growth
Sun’s Strong Track Record 17 Multiple Levers Drive Long-Term FFO and Cash Flow Growth Growth Levers Potential Annual Revenue Growth / Contribution Contractual Rent Increases - 5.9% MH base rate increase for 3Q - Over 90% MH sites “market rent” or tied to CPI Occupancy Gains - ~97% MH Occupancy - Ove
Slide 18: Sun's Same Property Operating Expenses
Payroll & benefits 33% Real estate taxes 19% Other 14% Supplies & repair 14% Utilities 11% Legal, local taxes & insurance 9% Sun’s Same Property Operating Expenses 18 2024E Same Property Operating Expenses North America (MH, RV and Marina) BOULDER RIDGE – PFLUGERVILLE, TX Source: Company information
Slide 19: Investment Grade Balance Sheet
Unencumbered 77.8% Encumbered 22.2% Investment Grade Balance Sheet 19 94.1% fixed rate 5.9% variable rate Credit Statistics Rate Type(1) Upcoming Mortgage Maturities ($ in millions)(1)(2) 1.9% 0.8% 10.7% 0.1% % of Total Encumbrance(1) Gross Asset Value 69.0% NOI Unencumbered(3) 77.5% Properties Unen
Slide 20: Robust ESG Initiatives
Robust ESG Initiatives 20 Environmental ESG Highlights(1) Our board and executive leadership are committed to sustainable business practices that benefit all stakeholders including the broader communities in which we operate Current initiatives to advance our ESG platform include policy enhancement,
Slide 21: Appendix
Appendix 21SUN OUTDOORS OCEAN CITY – BERLIN, MD
Slide 22: Defined Non-GAAP Terms
Defined Non-GAAP Terms 22 Investors and analysts following the real estate industry use non-GAAP supplemental performance measures, including net operating income ("NOI"), earnings before interest, tax, depreciation and amortization ("EBITDA") and funds from operations ("FFO") to assess REITs. The C
Slide 23: Net Income to FFO Reconciliation
Net Income to FFO Reconciliation 23 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information. (amounts in millions except per share d
Slide 24: Net Income to NOI and EBITDA Reconciliation
September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 December 31, 2023 December 31, 2022 December 31, 2021 As Restated As Restated Net Income / (Loss) Attributable to SUI Common Shareholders 288.7$ 120.1$ 313.4$ (132.4)$ (213.3)$ 242.0$ 380.2$ Interest income (5.5) (15.2) (15.
Slide 25: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation 25Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2024, as well as Press Releases and SEC Filings after September 30, 2024, for additional information. (amounts in millions) Septe
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