Slide 1: North Lake Estates Moore Haven, FL
1 1 North Lake Estates Moore Haven, FL
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
Slide 3: Sun Communities, Inc. (NYSE: SUI) overview
3 Owns, develops and manages manufactured housing (“MH”) and recreational vehicle (“RV”) sites Sells and leases new and used manufactured homes Sun Communities’ portfolio includes 184 communities across 25 states Comprised of over 53,200 MH and 14,700 RV sites, making it the second largest p
Slide 4: Diversified Portfolio
Diversified Portfolio Bh rose a P Existing Portfolio P Acquired in last 2 years
Slide 5: Affordability Drives Our Industry: Manufactured Housing vs. Multi Family
5 Affordability Drives Our Industry Manufactured Housing vs. Multi Family: Comparing all manufactured homes to the multifamily average, a manufactured home provides approximately 50% more space at approximately 40% less cost per square foot SUI - Manufactured Homes Average rent is approximately $8
Slide 6: Affordability Drives Our Industry: Manufactured Housing vs. Single Family
6 Affordability Drives Our Industry Manufactured home prices are significantly lower than single-family prices nationally. Manufactured Housing vs. Single Family: Even with the significant drop in single family housing prices since 2007, the average single family home still costs over 4x the price
Slide 7: Steady, Predictable Revenue Streams
7 Steady, Predictable Revenue Streams MH Annual Income 88.0% RV Annual Income 7.9% RV Transient1 Income 4.1% Percentage from annual based revenue sources: 95.9% 160 manufactured home communities: 53,000 sites 24 RV resorts: 14,700 sites Annuals – 7,200 Transient – 7,500 Based on announ
Slide 8: Resilient Operating Model
8 Resilient Operating Model Low turnover for owner occupied sites results in minimal turn costs and stable and growing NOI Cost to the owner to move a house is between $4,000 to $10,000 On average, tenants reside in our communities approximately 13 years Average term of home in our communiti
Slide 9: Low Capital Expenditures
9 Low Capital Expenditures Capex as a % of Revenues Source: Company filings Minimal capex requirements as MH is largely a land ownership business: tenants typically own their own MH units Manufactured housing is a low capex business relative to its peers in consumer-sensitive real estate sectors.
Slide 10: Recession Resistant
10 Recession Resistant Recession Resistant – lost only 47 occupied sites, or less than 1% of total sites during 2008 SUI’s rent growth is among the highest and most consistent rental growth rates of all property types SUI’s low annual resident turnover results in stability of income and occupa
Slide 11: Same Site NOI
11 Same Site NOI 11 Source: Citi Investment research, February 2013. “REITs”- includes an index of REITs across a variety of asset classes including self storage, mixed office, regional malls, shopping centers, multifamily, student housing, manufactured homes and specialty.
Slide 12: Consistent and Stable Growth
12 Consistent and Stable Growth Indexed Same Store NOI Growth: MH is the most recession resistant sector of the housing and commercial real estate sectors MH has consistently outperformed multifamily in same store NOI growth since 2000 Source: Green Street Advisors, company filings. 12
Slide 13: Performance vs. Consumer REIT Peers
13 Performance vs. Consumer REIT Peers 13 Source: Green Street Advisors Implied Cap Rates The manufactured housing REITs have largely been ignored by investors in the past decade and are all at relatively large spreads to similar consumer-sensitive REITs
Slide 14: Growth Through Acquisitions
14 Growth Through Acquisitions SUI expects to capitalize on a robust and attractive pipeline due to its access to capital, strong balance sheet, and size. Completed over $600 million of acquisitions since June 2011. Established and tested legacy systems and processes allow SUI to integrate and
Slide 15: Strategic Acquisition Opportunities
15 Acquisition Date: November 2012 Acquisition Price: $132.5 Million Value Creation utilizing SUI’s IP capital: Overview Located in Michigan 23 MH /1 RV community with 9,023 sites Occupancy at acquisition vs. 3/31/2013 Rudgate-90% vs. 93% Kentland-82% vs. 93% Below market rents Implementat
Slide 16: Strategic Acquisition Opportunities: Palm Creek and Morgan
16 (1) Additional $15.0 million paid for contiguous parcel of zoned and entitled land (550 MH or 990 RV sites). Palm Creek Casa Grande, AZ Palm Creek Morgan Acquisition Date: December 2012 Acquisition Price: $70.4 (1) million - Existing Community. $2.6 million - Phase I Expansion. Estimated NOI grow
Slide 17: Expansion Strategy
17 Expansion Strategy Inventory of 7,500 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 1,100 sites planned for development thi
Slide 18: Management team
18 Gary A. Shiffman - Chairman and Chief Executive Officer Karen J. Dearing - Chief Financial Officer John B. McLaren - Chief Operating Officer Jonathan M. Colman - Executive Vice President of Acquisitions Key executives have over 80 years of collective experience in the industry and over 60 years
Slide 19: Diversified Funding Sources
19 Diversified Funding Sources Active and thoughtful balance sheet management Since 2011: $115.0 million CMBS transaction Refinanced $104.8 million of debt to 2021 $23.6 million CMBS transaction Refinanced $17.9 million of debt to 2021 Extended FNMA secured debt of $365.6 million Acc
Slide 20: Conservative Balance Sheet
20 Net Debt1 / Enterprise Value Debt + Preferred Equity / EBITDA EBITDA / Interest Conservative Balance Sheet *Calculated based on trailing 12 months ended March 31, 2013. (1) Including preferred OP units. 20
Slide 21: Q&A
21 Q&A 21 Siesta Bay Fort Meyers, FL
Slide 22: Appendices
22 22 Palm Creek Golf & RV Resort Casa Grande, AZ Appendices
Slide 23: Historical Returns by Sector
23 Historical Returns by Sector Source: SNL Manufactured homes outperformed many REIT sectors since 2008. Manufactured housing REITs have offered one of the most attractive historical returns among all REIT sectors. 5-year Total Returns as of 3-31-2013 23
Slide 24: Historical Returns
24 24 Historical Returns Sun has the highest 5-year total return of any company in the consumer- driven REIT space 5 Year Total Return as of 3-31-20131 Sector Implied Cap Rate3 Dividend Yield3 SUI 6.6% 5.1% ELS 6.3% 2.6% Self-Storage 5.6% 2.9% Multi-family 5.9% 3.5% Student Housing 5.8% 3.8% Implied
Slide 25: Summit Ridge and Blueberry Hill photos
25 Summit Ridge Converse, TX Summit Ridge Converse, TX Blueberry Hill Bushnell, FL 25
Slide 26: North Lake Estates Moore Haven, FL
26 26 North Lake Estates Moore Haven, FL
Slide 27: Community photos
27 27 Rainbow RV Resort Frostproof, FL Buttonwood Bay Sebring, FL Buttonwood Bay Sebring, FL Woodlake Trails San Antonio, TX