Slide 1: Sun Communities, Inc. (NYSE: SUI) Investor Presentation
March 2024 Sun Communities, Inc. (NYSE: SUI) Investor Presentation CHERRYWOOD – CLINTON, NY
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 Key Topics
Sun Communities – Company Key Topics Leading Owner / Operator of Manufactured Housing (“MH”) & Recreational Vehicle (“RV”) Communities and Marinas Resilient Real Property Operations Drive Growth Compelling Supply-Demand Fundamentals & Best-in-Class Assets SYLVAN CROSSING – CHELSEA, MI Drive Strong P
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 88% $1,200 2020 $1,000 $800 2021 $600 2022 $400 2023 $200 4% 4% 4% 2024E (1) $0 MH, RV and Marina North America UK home sales NOI Service, r
Slide 5: Leading Owner / Operator of MH, RV and Marinas
Leading Owner / Operator of MH, RV and Marinas With ~178,800 MH and RV operational sites and ~48,000 wet slips and dry storage spaces, Sun is the largest publicly traded operator of MH, RV and Marinas(1) MH RV Marina Largest publicly traded owner / operator 179 best-in-class RV communities wit
Slide 6: Robust Fundamentals Continue to Drive Performance
Robust Fundamentals Continue to Drive Performance Steady, Organic Growth 7.3% same property NOI growth in 2023; expect 4.8% - 6.0% in 2024 to be driven by rental rate increases and occupancy gains Consistent annual rental rate increases exceed expected inflationary cost pressures o Expected aver
Slide 7: Strong NOI Growth and Progress Toward Simplifying the Company
HACIENDA DEL RIO – EDGEWATER, FL Strong NOI Growth and Progress Toward Simplifying the Company Reported Core FFO per Share of $1.34 and $7.10 for the quarter and year ended December 31, 2023, respectively Same Property NOI increased by 9.6% for the fourth quarter of 2023 and 7.3% for the full 20
Slide 8: 2024 Guidance
2024 Guidance FY 2023 FY 2024E FY 2023 FY 2024E Same Property – Expected NOI (millions) Change UK Home Sales Volume Range MH NOI (292 properties) $609.9 6.0% - 7.0% UK home sales volume 2,857 2,650 – 2,850 RV NOI (165 properties) $291.7 2.1% - 3.5% FFO contribution from UK home sales ($ in millions)
Slide 9: Compelling Supply-Demand Fundamentals
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) North America UK Supply Supply • Virtually no new supply has been added for years Irreplaceable coastal ‘destination’ locations that are short drives from London and US Inventory Growth by Property Type other urban locations 6% Nume
Slide 10: Compelling Supply-Demand Fundamentals: MH Residents and UK Sales
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) – North America Residents Moved into MH Communities in Record Numbers US unemployment rate and SUI same property occupancy 12% 88% 9.6% SUI Same Property Occupancy 9.3% US Unemployment Rate 8.9% 8.1% 8% 84% 5.8% 4% 80% 0% 76% 2008 2009
Slide 11: 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 volum
Slide 12: Compelling Supply-Demand Fundamentals: RV
Compelling Supply-Demand Fundamentals RV Continued Demand for Affordable Vacationing Despite Annual Active Camping Households Declining RV Sales (in mms) Growth in annual RV shipments and historical RV revenue growth 8% CAGR 57 58 46.2% 48 42 13.2% 37 39 39 4.8% 0.8% 6.6% 4.2% 5.4% 4.9% 32 35 -32.9%
Slide 13: 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 exam
Slide 14: 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 pr
Slide 15: Sun's Strong Track Record of Internal Growth
SUN OUTDOORS ORANGE BEACH – ORANGE BEACH, AL 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 si
Slide 16: Sun's Track Record of Growth: Operating Expenses
Sun’s Track Record of Growth Same property operating expense growth is projected to be 8.1% - 9.1% for North America and 7.4% - 8.4% for UK, reflecting normalization of expenses in North America following active cost containment strategies in 2023 and growth in Payroll and Utilities in the UK 2024
Slide 17: Investment Grade Balance Sheet
Investment Grade Balance Sheet Upcoming Mortgage Maturities ($ in millions)(1) Credit Statistics Rate Type(1)(2) % of Total BBB 2.3% 0.9% 11.5% 0.1% 16.4% variable rate $658 $129 $51 $4 83.6% fixed rate Baa3 2024 2025 2026 2027 Total Debt Outstanding ($ in millions)(1)(3) Encumbrance(1) As of Decemb
Slide 18: 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 tar
Slide 19: Appendix
Appendix SUN OUTDOORS PASO ROBLES – PASO ROBLES, CA 19
Slide 20: Renting – MH vs. Other Rental Options
Compelling Supply-Demand Fundamentals Renting – MH vs. Other Rental Options Manufactured homes in Sun’s communities provide 25% more space at ~50% less cost per square foot Manufactured Homes in Other Rental Sun’s Communities Options(1) PRICE $1.03 per sq. ft. $1.96 per sq. ft. SQUARE FOOTAGE 1,
Slide 21: Conversion of RV Transient-to-Annual Leases Generates Significant Uplift in Revenue
Conversion of RV Transient-to-Annual Leases Generates Significant Uplift in Revenue Transient RV site conversions to annual leases have historically increased revenue per site for the first full year after conversion and increases our annual RV sites ~2,100 transient to annual RV conversions in
Slide 22: Premier Owner / Operator of Marinas
Premier Owner / Operator of Marinas Service Offerings Increase Member Tenure Average Marina member tenure (in years) 135 ~38,900 ~9,100 9.4 8.8 8.8 Marinas in 24 States Wet Slips Dry Storage Spaces(1) 8.2 8.1 7.9 7.0 6.7 6.5 6.4 6.0 6.0 5.6 5.0 ~89% 81% 76% 2017 2018 2019 2020 2021 2022 2023 Marinas
Slide 23: 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 24: Net Income to FFO Reconciliation
Net Income to FFO Reconciliation Three Months Ended Year Ended (amounts in millions except per share data) December 31, December 31, December 31, December 31, December 31, 2023 2022 2023 2022 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (80.9) $ 4.7 $ (213.3) $ 242.0 $ 380.2 Ad
Slide 25: Net Income to NOI Reconciliation
Net Income to NOI Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, December 31, (amounts in millions) 2023 2022 2023 2022 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (80.9) $ 4.7 $ (213.3) $ 242.0 $ 380.2 Interest income (4.8) (9
Slide 26: Consolidated NOI by Segment
Consolidated NOI by Segment Consolidated Real Property NOI (amounts in millions) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22(1) 1Q22(1) MH North America $ 155.4 $ 153.5 $ 151.3 $ 150.6 $ 143.1 $ 141.6 $ 142.8 $ 143.5 UK 13.9 29.0 17.4 6.3 10.4 25.2 15.4 N/A Total MH $ 169.3 $ 182.5 $ 168.7 $ 156.9 $ 153.5 $
Slide 27: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, December 31, (amounts in millions) 2023 2022 2023 2022 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (80.9) $ 4.7 $ (213.3) $ 242.0 $ 380.2 Adjustments
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