Sun Communities, Inc. · NYSE:SUI

Sun Communities — Investor Presentation (November 2014)

21 slides from Sun Communities's investor presentation, Nov 4, 2014

  1. Slide 1: RV Resort & Campground

    - RV Resort & Campground 1) Bertin, MD SUN COMMUNITIES, INC

  2. Slide 2: Forward-looking statements disclaimer

    2 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 representation or warranty, e

  3. Slide 3: Sun Communities, Inc. (NYSE:SUI)

    3 SUN COMMUNITIES, INC. (NYSE:SUI)  Leading owner, developer and manager of manufactured housing (“MH”) and recreational vehicle (“RV”) sites  Sun Communities’ current portfolio includes 184* communities consisting of approximately 69,600* sites across 27* states □ 151* MH communities and 33* RV r

  4. Slide 4: Affordability Drives Manufactured Housing: vs. Multifamily

    4 Comparing Sun manufactured homes to the multifamily average, a manufactured home provides approximately 35% more space at approximately 40% less cost per square foot. AFFORDABILITY DRIVES MANUFACTURED HOUSING Sun – Manufactured Homes Apartments • Average rent ≈ $800/month or $0.62/square foot • Av

  5. Slide 5: Affordability Drives Manufactured Housing: vs. Single Family

    5 AFFORDABILITY DRIVES MANUFACTURED HOUSING Manufactured Housing vs. Single Family: • Average cost of Manufactured Housing ≈ $64,000 or roughly 1 years income • Average cost of Single Family ≈ $324,500 or roughly 5 years income The median income in the 27 states in which Sun operates is $65.3K. The

  6. Slide 6: Stability of Revenue

    6 STABILITY OF REVENUE 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 40 years Move Outs and Re-Sale

  7. Slide 7: Capital Expenditures

    7 CAPITAL EXPENDITURES Manufactured housing is a low capex business relative to its peers as it is largely a land ownership business. Source: Company filings Data as of 12/31/2013 Capex as a % of Revenues

  8. Slide 8: Recession Resistant

    8 RECESSION RESISTANT  Low annual resident turnover results in stability of income and occupancy  Strong and consistent rental growth creating a stable revenue stream  Occupancy gains are a function of Sun’s integrated platform, including leasing, sales, and financing $ in M ill io n s Same Site

  9. Slide 9: Same Site NOI

    9 SAME SITE NOI Sun’s average same site NOI growth has exceeded the industry and apartment average by 1.4% over a 15 year period. -9.0% -8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 1Q 9 9 2Q 9 9 3Q 9 9 4Q 9 9 1Q 0 0 2Q 0 0 3Q 0 0 4Q 0

  10. Slide 10: Same Site Indexed NOI Growth

    10 Source: SNL 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. Slide 11: Growth Through Accretive Acquisitions

    11 2012 Acquisitions (11 Communities) 2011 Acquisitions (26 Communities) 10 15 20 25 30 35 Year 1 Year 2 Year 3 $$ M ill io n s Revenues NOI 15 20 25 30 35 40 Year 1 Year 2 $$ M ill io n s Revenues NOI GROWTH THROUGH ACCRETIVE ACQUISITIONS Since June 2011, Sun has completed over $813 million of acqu

  12. Slide 12: Acquisition of the American Land Lease Portfolio from Green Courte Partners

    ACQUISITION OF THE AMERICAN LAND LEASE PORTFOLIO FROM GREEN COURTE PARTNERS 12

  13. Slide 13: Transaction Overview

    TRANSACTION OVERVIEW Transaction  Acquisition of the American Land Lease or “ALL” portfolio(1) of primarily age-restricted manufactured home communities from Green Courte Partners (“GCP”)  59 pure-play manufactured home communities  19,504 home sites ‒ 14,245 (73%) age-restricted sites ‒ 5,259 (2

  14. Slide 14: Irreplaceable Portfolio with High-Quality Assets

    Age- Restricted 73% All-Age 27% IRREPLACEABLE PORTFOLIO WITH HIGH-QUALITY ASSETS Source: Company as of 7/23/2014. 1) Excludes one additional property comprising 198 sites, which SUI has a contract to purchase for $15.8 million. Age-Restricted Properties 41 communities 14,245 sites All-Age Properties

  15. Slide 15: Acquisition Increases SUI's Scale and Diversification

    ACQUISITION INCREASE’S SUI’s SCALE AND DIVERSIFICATION Total Enterprise Value (1) $3.8 billion $1.3 billion $5.1 billion Number of Communities 184 59 (2) 243 Occupancy 92% 90% (2) 91% Number of Sites 69,677 19,504 (2) 89,181 Avg. Monthly Rent / Site $453 $454 (2) $453 Geographic Diversification ALL

  16. Slide 16: Growth Through Expansion Opportunities

    GROWTH THROUGH EXPANSION OPPORTUNITIES  Inventory of over 6,300 zoned and entitled sites available for expansion at 34 communities  Expanding in communities with strong demand evidenced by occupancy of ~95%  Expansion lease-up is driven by sales, rental and relocation programs  400 sites expecte

  17. Slide 17: Strategic Balance Sheet Management

    17 STRATEGIC BALANCE SHEET MANAGEMENT Financial flexibility has positioned Sun to de-lever substantially while expanding via acquisitions. EQUITY  Raised over $1.1 billion of common equity, primarily through five successful follow-on offerings between January 2012 and September 2014  Accessed the

  18. Slide 18: Conservative Balance Sheet

    18 CONSERVATIVE BALANCE SHEET Net Debt1 / Enterprise Value EBITDA / Interest Net Debt + Preferred Equity / EBITDA* (1) Including preferred OP units *Calculated based on trailing 12 months ended September 30, 2014 Fixed Debt (%)

  19. Slide 19: Experienced and Proven Leadership Team

    19 EXPERIENCED AND PROVEN LEADERSHIP TEAM Key executives have a combined 80 years experience in the industry and over 65 years at the company. Senior Management team has combined experience of over 70 years at the company. Gary A. Shiffman - Chairman and Chief Executive Officer Karen J. Dearing - Ch

  20. Slide 20: Pend - Sandwich, MA

    Pend - Sandwich, MA RA Lakein Wood - Lancaster, PA

  21. Slide 21: Performance vs. Indices

    340% 247% 216% 212% 210% 207% 195% 0% 100% 200% 300% 400% SUI SNL US REIT Manufactured Homes SNL US REIT Equity S&P Small-Cap MSCI US REIT (RMS) S&P 500 Russell 2000 PERFORMANCE VS. INDICES  SUI has outperformed all major REIT sector indices and many major market indices over the last five years. S

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