Slide 1: Sun Communities, Inc. (NYSE: SUI) Investor Presentation
Sun Communities, Inc. (NYSE: SUI) Investor Presentation COLONY IN THE WOOD – PORT ORANGE, FL
Slide 2: Cautionary Statement Regarding Forward-looking Statements
Cautionary Statement Regarding Forward-looking Statements 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-par
Slide 3: Sun Communities – Company Highlights
Sun Communities – Company Highlights Leading Owner and Operator of Manufactured Housing (“MH”) & Recreational Vehicle (“RV”) Communities, and Marinas Stable, Resilient Real Property Operations Drive Growth Compelling Supply-Demand Fundamentals & Best-in-Class Assets Drive OAK CREST – AUSTIN, TX Stro
Slide 4: Resilient Real Property Operations Drive Growth
Resilient Real Property Operations Drive Growth NOI from real property operations is largest contributor to results Growth Driver Detail (in mms) $1,600 $1,400 89% $1,200 2020 $1,000 $800 2021 $600 2022 $400 2023 (1) $200 4% 4% 3% 2024E $0 MH, RV, Marina & UK Service, retail, dining and UK home sale
Slide 5: Leading Owner and Operator of MH, RV, and Marinas
Leading Owner and Operator of MH, RV, and Marinas With ~179,300 operational sites and ~48,100 wet slips and dry storage spaces, Sun is the largest publicly traded owner and operator of MH, RV, Marinas(1) MH RV Marina UK Largest publicly traded owner / 179 best-in-class RV Largest and most diversifie
Slide 6: Robust Fundamentals Continue to Drive Performance
Robust Fundamentals Continue to Drive Performance Steady, Organic Growth 5.6% North America same property NOI growth in first six months of 2024; expect 4.7% - 5.7% growth in 2024 to be driven by rental rate increases and occupancy gains Consistent annual rental rate increases exceed expected inflat
Slide 7: Strong 2Q Performance and Business Update
BIRCH HILL ESTATES – BANGOR, ME Strong 2Q Performance and Business Update Reported Core FFO per Share of $1.86 for the quarter ended June 30, 2024 Same Property NOI growth of 3.6% in North America and 9.3% in the UK Projected 2024 Total North America Same Property NOI growth of 4.7% - 5.7%, and UK S
Slide 8: Key Strategic Priorities and Initiatives
Key Strategic Priorities and Initiatives PRIORITIES RESULTS OF RECENT STRATEGIC INITIATIVES Simplified Sun NG RV joint venture, Sold investment in Campspot for $27.5mm, Business Model and recycled $53mm of capital from MH consumer loans Simplification Targeted Disposition Program to divest non-strat
Slide 9: 2024 Guidance
2024 Guidance FY 2023 FY 2024E FY 2024E Same Property – Expected NOI Core FFO Range (millions) Change MH NOI (284 properties) $595.5 6.8% - 7.4% Third Quarter 2024, Core FFO per Share $2.46 - $2.56 RV NOI (164 properties) $287.5 (0.7)% - 0.9% Full year 2024, Core FFO per Share $7.06 - $7.22 Marina N
Slide 10: Compelling Supply-Demand Fundamentals: Manufactured Housing North America
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) – North America Supply • Virtually no new supply has been added for years US Inventory Growth by Property Type 6% 4% 2% 0% 2015 2016 2017 2018 2019 2020 2021 Manufactured Housing Multifamily HOLLY FOREST – HOLLY HILL, FL BOWLAND FELL- Y
Slide 11: Compelling Supply-Demand Fundamentals: RV
Compelling Supply-Demand Fundamentals RV Continued Demand for Affordable Vacationing Despite Annual Active Camping Households (in mms) Declining RV Sales Growth in annual RV shipments and historical RV revenue growth 5.9% CAGR 46.2% 57 58 54 13.2% 48 4.8% 0.8% 6.6% 4.2% 5.4% 4.9% 42 37 39 39 35 32 -
Slide 12: Compelling Supply-Demand Fundamentals: Marinas
Compelling Supply-Demand Fundamentals Marinas Existing base of ~12 million registered boats within the U.S. and an As boats become longer and wider, many marinas cannot keep up with estimated supply of 900K - 1 million leasable wet slips and dry storage increasing vessel size racks Recent example of
Slide 13: Compelling Supply-Demand Fundamentals: Manufactured Housing UK
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) - UK Supply Demand Irreplaceable coastal ‘destination’ locations that are short drives from London and Brexit and other macroeconomic structural factors create demand for domestic other urban locations vacationing throughout UK Numerous
Slide 14: UK Business Model Building Blocks
UK Business Model Building Blocks Real Property NOI Home Sales NOI Indicative Current Annual Strong historical and expected income growth Home Sales Volume Existing resident turnover in communities is o 10-year same property average rental rate increase of 5.2% largest driver of home sales volume Hi
Slide 15: Sun's Track Record of Growth
Sun’s Track Record of Growth 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 period, Sun has recorded positive same proper
Slide 16: Sun's Strong Track Record of Internal Growth
REGENCY HEIGHTS – CLEARWATER, FL Sun’s Strong Track Record of Internal Growth Multiple Levers Drive Resilient FFO and Cash Flow Growth Growth Levers Potential Annual Revenue Growth / Contribution Contractual Rent - 6.4% weighted average rate increase for 2023 Increases - Over 90% MH sites “market re
Slide 17: Sun's Track Record of Growth: Same Property Operating Expenses
Sun’s Track Record of Growth 2024E North America same property operating expense growth is projected to be 4.0% - 4.8%, reflecting normalization of expenses in North America following active cost containment strategies in 2023 EAST FORK CROSSING – BATAVIA, OH 2024E Same Property Operating Expenses N
Slide 18: Investment Grade Balance Sheet
Investment Grade Balance Sheet Upcoming Mortgage Maturities ($ in millions)(1)(2) Credit Statistics Rate Type(1) % of Total BBB 11.3% 2.1% 0.8% 10.7% 0.1% 4.9% variable rate $658 $304 $129 $51 $4 88.7% fixed rate Baa3 2024 2025 2026 2027 2028 Total Debt Outstanding ($ in millions)(1)(2) Encumbrance(
Slide 19: Robust ESG Initiatives
Robust ESG Initiatives 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, establishing environmental targets
Slide 20: Appendix
Appendix SUN OUTDOORS ARCHES GATEWAY – MOAB, UT 20
Slide 21: Defined Non-GAAP Terms
Defined Non-GAAP Terms 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 Comp
Slide 22: Net Income to FFO Reconciliation
Net Income to FFO Reconciliation Three Months Ended Six Months Ended Year Ended (amounts in millions except per share data) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 December 31, 2023 December 31, 2022 December 31, 2021 As Restated As Restated Net Income / (Loss) Attributable to SUI Co
Slide 23: Net Income to NOI Reconciliation
Net Income to NOI Reconciliation Three Months Ended Six Months Ended Year Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 December 31, 2023 December 31, 2022 December 31, 2021 (amounts in millions) As Restated As Restated Net Income / (Loss) Attributable to SUI Common Shareholders $ 52
Slide 24: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation Three Months Ended Six Months Ended Year Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 December 31, 2023 December 31, 2022 December 31, 2021 (amounts in millions) As Restated As Restated Net Income / (Loss) Attributable to SUI Common Shar
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