Slide 1: Sun Communities, Inc. November 2015
SUN _4 SUN COMMUNITIES, INC. NOVEMBER 2015 Photo from community: Bell Crossing - Clarksville, TN eee
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) Leading owner, operator and developer of manufactured housing (“MH”) and recreational vehicle (“RV”) communities Sun Communities’ current portfolio includes 248 communities consisting of 92,464 sites across 30 states □ 197 MH communities, 37 RV resorts, and 14 co
Slide 4: Affordability Drives Manufactured Housing
AFFORDABILITY Affordability Drives Manufactured Housing Manufactured Housing vs. Multi Family: Source: Rent.com data (1) Represents average rent for a 2 bedroom apartment in major metropolitan areas Sun operates in as of August 2015.4 Comparing Sun manufactured homes to the multifamily average, a ma
Slide 5: Affordability: Manufactured Housing vs. Single Family
The median income in the 30 states in which Sun operates is $59,000 and the average income in a MH community is roughly half the median income. The average single family home costs over 5x the price of a MH unit. * 2013 Average 2 person household income - 30 states in which SUI operates per US Censu
Slide 6: Affordability Drives Manufactured Housing: Occupancy and Mortgage Rates
76.0% 78.0% 80.0% 82.0% 84.0% 86.0% 88.0% 90.0% 92.0% 94.0% 96.0% ‐20.00% ‐15.00% ‐10.00% ‐5.00% 0.00% 5.00% 10.00% 15.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Mortgage Rates (% Change)** Mortgages (% change)** Sun Occupancy ***Data from IBISWorld is based on 30-year conventional mortg
Slide 7: Stability of Revenue
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 12 years Average term of home in our communities is approximately 50 years No loss in revenue as h
Slide 8: Capital Expenditures
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 12/31/2014 8 12.2% 8.8% 8.1% 4.7% 3.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Multi-family Student Housing Overall Average Self-S
Slide 9: Strong Internal Growth
STRONG INTERNAL GROWTH Same Site Occupancy (1) 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 9 (
Slide 10: Same Site NOI
SAME SITE NOI Source: Citi Investment research, September 2015. “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 Sun’s average same site NOI gro
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. Source: SNL 11
Slide 12: Realigning the Portfolio
REALIGNING THE PORTFOLIO Sun is reshaping its portfolio through strategic acquisitions, dispositions and expansions. Average population growth in all acquisitions and development states is ~ 9%. Over half of the acquisitions are in Southern and Western states where population growth averages 15%
Slide 13: Timeline: Strategic Acquisitions
TIMELINE : STRATEGIC ACQUISITIONS • 17 MH & 1 RV properties Kentland Acquisition growing the portfolio. 136 communities 54,811 sites Since May 2011, Sun has acquired over $2.5 billion of communities, increasing its number of sites and communities by 92% and 81%, respectively. 13 2011 173 communities
Slide 14: Growth Through Accretive Acquisitions
GROWTH THROUGH ACCRETIVE ACQUISITIONS A Look at Acquisition Performance 2011 Acquisitions (26 Communities) 2012 Acquisitions (11 Communities)* 14 $13 $16 $19 $22 $25 $28 $31 $34 $37 $40 Year 1 Year 2 Year 3 Year 4 ( i n m i l l i o n s ) Revenues NOI 90.8% 92.5% 97.6% 98.5% 90% 92% 94% 96% 98% 100%
Slide 15: RV Industry: Growth Contributors
RV INDUSTRY : GROWTH CONTRIBUTORS Contributors In the 5 years to 2020, industry revenue is expected to increase at approximately 1.6% to $6 billion Shipments reached a 7 year high in 2014 and a 6.5% year-over-year increase is projected for 2015 Adults aged 50 and over accounted for more than 4
Slide 16: Sun RV Portfolio Performance
SUN RV PORTFOLIO PERFORMANCE Strong RV Portfolio Performance **Based on 2015 guidance. Percentage of revenues from RV resorts increased from 10% in 2011 to an estimated 17% in 2015 NOI and Income Growth – 2013 Morgan acquisition (10 properties) 16 *Year 3 represents actuals through September 2015 pl
Slide 17: Growth Through Expansion Opportunities
GROWTH THROUGH EXPANSION OPPORTUNITIES Inventory of over 8,100 zoned and entitled sites available for expansion at 48 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 18: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET 18 Net Debt / Total Enterprise Value (1)(2) Net Debt / Adjusted EBITDA (3)(4) Fixed-Rate Debt (% of Total) (1) Adjusted EBITDA (3) / Interest Expense (4) 56% 50% 46% 35% 38% 20% 30% 40% 50% 60% 2011 2012 2013 2014 2015YTD 9.7x 8.4x 7.1x 7.3x 7.8x 5.0x 6.0x 7.0x 8.0x 9.0x 1
Slide 19: Limited Near-Term Debt Maturities
LIMITED NEAR-TERM DEBT MATURITIES 19 $17 mm $236 mm $138 mm $92 mm $107 mm $1,968 mm $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2015 2016 2017 2018 2019 Thereafter Lines of Credit Mortgage Loans Payable Preferred OP Units (Mandatorily Redeemable) Secured Borrowing % of Total De
Slide 20: Park Royale - Pinellas
Park Royale - Pinellas, Face Photo fro, commtun
Slide 21: Performance vs. Indices
PERFORMANCE VS. INDICES 21 Sun has outperformed all major REIT sector indices and many major market indices over the last five years. 5-year Total Returns by Index as of 9-30-2015 5-year Total Returns by REIT Sector as 9-30-2015 Source: SNL 298% 251% 193% 187% 174% 178% 176% 0% 50% 100% 150% 200% 25