Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (June 2017)
22 slides from Sun Communities's investor presentation, Jun 5, 2017
Slide 1: Investor Presentation June 2017
INVESTOR PRESENTATION JUNE 2017 WILDWOOD COMMUNITY – SANDWICH, IL
Slide 2: Disclaimer and forward-looking statements
2 This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc. (the "Company,“ “Sun”) and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warr
Slide 3: Sun Communities, Inc. (NYSE: SUI) Overview
81,388 21,537 16,572 38,109 57% annual / seasonal 43% transient SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 as well as Press Releases after March 31, 2017 for additional informa
Slide 4: Demographic Trends Driving Demand for Sun
DEMOGRAPHIC TRENDS DRIVING DEMAND FOR SUN 1 Source: US Census Bureau - Projections of the Population by Sex and Age for the United States: 2015 to 2060. 2 Source: National Conference of State Legislatures and the AARP Public Policy Institute, “Aging in Place: A State Survey of Livability Policies an
Slide 5: 2017 Year-to-Date Highlights
2017 YEAR-TO-DATE HIGHLIGHTS 5 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Refer to information regarding non-GAAP financial measures in the attached Appendix. 1 Source: Company Information. D
Slide 6: Building Blocks Position Sun for Sustainable Growth
6 FOR SUSTAINABLE GROWTH BUILDING BLOCKS POSITION SUN Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Proven consolidator with $4.4 billion of acquisitions brought onto the Sun platform since 20
Slide 7: Sun's Favorable Revenue Drivers
SUN’S FAVORABLE REVENUE DRIVERS 7 The average cost to move a home ranges from $4K-$10K, resulting in low move-out of homes Tenure of homes in our communities is 44 years1 Tenure of residents in our communities is approximately 13 years1 5.67% 2.20% Resident Re-sales Resident Move-outs Source:
Slide 8: Strong Same-Community Performance
$437 $445 $461 $481 $498 $507 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017 86.7% 88.9% 93.2% 95.9% 96.6% 96.7% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017 5.5% 5.9% 7.7% 9.1% 7.1% 6.7% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q1 2017 STRONG SAME-COMMUNITY PERFORMANCE 8 Positive NOI growth fo
Slide 9: Expansions Provide Strong Growth and Attractive Returns
9 GROWTH AND ATTRACTIVE RETURNS EXPANSIONS PROVIDE STRONG Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Inventory of approximately 10,300 zoned and entitled sites available for expansion at 80
Slide 10: Rental Program Supported by Expansion Opportunities
10 SUPPORTED BY RENTAL PROGRAM EXPANSION OPPORTUNITIES Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. 1 Operating expenses include repairs and refurbishment, taxes and insurance, marketing, and c
Slide 11: Extracting Value from Strategic Acquisitions
2013 EXTRACTING VALUE FROM STRATEGIC ACQUISITIONS 11 Since May 2011, Sun has acquired communities valued in excess of $4.4 billion, increasing its number of sites and communities by ~150% 2011 159 communities 54,811 sites 173 communities 63,697 sites 188 communities 69,789 sites 217 communities 79
Slide 12: Strategic Balance Sheet
STRATEGIC BALANCE SHEET 12 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. 1 The debt ratios are calculated using trailing 12 months EBITDA for the period ended March 31, 2017. Refer to informatio
Slide 13: Strong Internal Growth
STRONG INTERNAL GROWTH 13 Source: : Citi Investment research, March, 2017. “REIT Industry Average” 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. Refe
Slide 14: Strategy-Driven Outperformance
-100 0 100 200 300 400 500 5-year Total Return Percentage -50 0 50 100 150 STRATEGY-DRIVEN OUTPERFORMANCE 14 Sun has significantly outperformed major REIT and broader market indices over the last ten years First Quarter 2017 Total Return Percentage Source: SNL Financial as of March 31, 2017. 3-yea
Slide 15: Appendix
APPENDIX OCEAN BREEZE RV RESORT – JENSEN BEACH, FL
Slide 16: Consistent NOI Growth
CONSISTENT NOI GROWTH 16 Manufactured housing is one of the most recession-resistant sectors of the housing and commercial real estate sectors and has consistently outperformed multi-family in same community NOI growth since 2000 NOI Growth $90 $110 $130 $150 $170 $190 $210 $230 2000 2001 2002 200
Slide 17: Manufactured Housing vs. Multifamily
17 MANUFACTURED HOUSING VS. MULTIFAMILY Sun’s manufactured homes provide nearly 15% more space at over 30% less cost per square foot Sun’s Manufactured Homes VS. RENT ~$890 1 per month Multifamily Housing ~$1,1002 per month SQUARE FOOTAGE PRICE ~1,2501 sq. ft. ~1,1002 sq. ft. $0.69 per sq. f
Slide 18: Manufactured Housing vs. Single Family
$206,560 $207,950 $223,085 $249,429 $261,172 $276,284 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Single-family Portion of purchase price attributable to land 1 Source: Manufactured Housing Institute, Quick Facts: “Trends and Information About the Manu
Slide 19: Non-GAAP Terms Defined
NON-GAAP TERMS DEFINED 19 We believe Net operating income (NOI) and Funds from operations (FFO) are appropriate measures given their wide use by and relevance to investors and analysts following the real estate industry. NOI provides a measure of rental operations and does not factor in depreciation
Slide 20: Net Income to FFO Reconciliation
NET INCOME TO FFO RECONCILIATION 20 Three Months Ended March 31, Year Ended December 31, 2017 2016 2016 2015 2014 Net income attributable to Sun Communities, Inc. common stockholders $ 21,104 $ 7,875 $ 17,369 $ 137,325 $ 22,376 Adjustments: Depreciation and amortization 62,817 48,077 221,576 178,048
Slide 21: Net Income to NOI Reconciliation
NET INCOME TO NOI RECONCILIATION 21 Three Months Ended March 31, Year Ended December 31, 2017 2016 2016 2015 2014 Net income attributable to Sun Communities, Inc., common stockholders $ 21,104 $ 7,875 $ 17,369 $ 137,325 $ 22,376 Other revenues (5,525) (4,351) (21,150) (18,157) (15,498) Home selling
Slide 22: Net Income to Recurring EBITDA Reconciliation
22 NET INCOME TO RECURRING EBITDA RECONCILIATION Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2017 for additional information. Three Months Ended March 31, Year Ended December 31, 2017 2016 2016 2015 2014 Net income attributab