Sun Communities, Inc. · NYSE:SUI

Sun Communities — Investor Presentation (September 2017)

21 slides from Sun Communities's investor presentation, Sep 6, 2017

  1. Slide 1: Investor Presentation September 2017

    INVESTOR PRESENTATION SEPTEMBER 2017 WILDWOOD COMMUNITY – SANDWICH, IL

  2. 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”, “Sun”) and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warr

  3. Slide 3: Sun Communities, Inc. (NYSE: SUI) Overview

    81,475 22,324 16,104 38,428 58% annual / seasonal 42% transient SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 as well as Press Releases after June 30, 2017 for additional informati

  4. Slide 4: 2017 Year-to-Date Highlights

    2017 YEAR-TO-DATE HIGHLIGHTS 4 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information. Refer to information regarding non-GAAP financial measures in the attached Appendix. 1 Company Information. Diluted. 2

  5. Slide 5: Building Blocks Position Sun for Sustainable Growth

    5 FOR SUSTAINABLE GROWTH BUILDING BLOCKS POSITION SUN Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information.  Proven consolidator with $4.4 billion of acquisitions brought onto the Sun platform since 201

  6. Slide 6: Sun's Favorable Revenue Drivers

    SUN’S FAVORABLE REVENUE DRIVERS 6  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:

  7. Slide 7: Strong Same-Community Performance

    5.5% 5.9% 7.7% 9.1% 7.1% 6.4% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q2 2017 $437 $445 $461 $481 $498 $510 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q2 2017 86.7% 88.9% 93.2% 95.9% 96.6% 97.2% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 Q2 2017 STRONG SAME-COMMUNITY PERFORMANCE 7  Positive NOI growth fo

  8. Slide 8: Expansions Provide Strong Growth and Attractive Returns

    8 GROWTH AND ATTRACTIVE RETURNS EXPANSIONS PROVIDE STRONG Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information.  Inventory of approximately 10,400 zoned and entitled sites available for expansion at 77

  9. Slide 9: Rental Program Supported by Expansion Opportunities

    9 SUPPORTED BY RENTAL PROGRAM EXPANSION OPPORTUNITIES Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information. 1 Operating expenses include repairs and refurbishment, taxes and insurance, marketing, and com

  10. Slide 10: Extracting Value from Strategic Acquisitions

    2013 EXTRACTING VALUE FROM STRATEGIC ACQUISITIONS 10  Since May 2011, Sun has acquired communities valued in excess of $4.4 billion, increasing its number of sites and communities by ~175% 1 2011 159 communities 54,811 sites 173 communities 63,697 sites 188 communities 69,789 sites 217 communities

  11. Slide 11: Strategic Balance Sheet

    STRATEGIC BALANCE SHEET 11 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information. 1 The debt ratios are calculated using trailing 12 months EBITDA for the period ended June 30, 2017. Refer to information

  12. Slide 12: Strong Internal Growth

    STRONG INTERNAL GROWTH 12 Source: : Citi Investment research, June, 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

  13. Slide 13: Strategy-Driven Outperformance

    5-year Total Return STRATEGY-DRIVEN OUTPERFORMANCE 13  Sun has significantly outperformed major REIT and broader market indices over the last ten years 2017 Year to Date Total Return Source: SNL Financial as of June 30, 2017. 3-year Total Return 10-year Total Return Sun Communities, Inc. (SUI) MSCI

  14. Slide 14: Appendix

    APPENDIX LA COSTA VILLAGE – PORT ORANGE, FL

  15. Slide 15: Consistent NOI Growth

    CONSISTENT NOI GROWTH 15  Manufactured housing is one of the most recession-resistant sectors of the housing and commercial real estate sectors and has consistently outperformed multifamily in same community NOI growth since 2000 NOI Growth $90 $110 $130 $150 $170 $190 $210 $230 2000 2001 2002 2003

  16. Slide 16: Manufactured Housing vs. Multifamily

    16 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

  17. Slide 17: 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

  18. Slide 18: Non-GAAP Terms Defined

    NON-GAAP TERMS DEFINED 18 Investors in and analysts following the real estate industry utilize funds from operations (“FFO”), net operating income (“NOI”), and recurring earnings before interest, tax, depreciation and amortization (“Recurring EBITDA”) as supplemental performance measures. We believe

  19. Slide 19: Net Income to FFO Reconciliation

    NET INCOME TO FFO RECONCILIATION 19 (amounts in thousands except per share data) Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information. 2017 2016 2017 2016 2016 2015 2014 Net income / (loss) attributable

  20. Slide 20: Net Income / (Loss) to NOI Reconciliation

    NET INCOME / (LOSS) TO NOI RECONCILIATION 20 (amounts in thousands) Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended June 30, 2017 for additional information. 2017 2016 2017 2016 2016 2015 2014 Net income / (loss) attributable to Sun Commun

  21. Slide 21: Net Income / (Loss) to Recurring EBITDA Reconciliation

    21 NET INCOME / (LOSS) TO RECURRING EBITDA RECONCILIATION 2017 2016 2017 2016 2016 2015 2014 Net income / (loss) attributable to Sun Communities, Inc., common stockholders 12,364$ (7,803)$ 33,468$ 72$ 17,369$ 137,325$ 22,376$ Interest 32,358 28,428 63,680 54,722 119,163 107,659 73,771 Interest on ma

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