Sun Communities, Inc. · NYSE:SUI

Sun Communities — Investor Presentation (February 2018)

23 slides from Sun Communities's investor presentation, Feb 27, 2018

  1. Slide 1: Investor Presentation February 2018

    INVESTOR PRESENTATION FEBRUARY 2018 FRIENDLY VILLAGE OF SIMI – SIMI VALLEY, CA

  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 war

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

    SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW 3 WINE COUNTRY – PASO ROBLES, CA Wine Country RV Resort – Paso Robles, CA Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 as well as Press Releases after December 31, 2017 for addit

  4. Slide 4: 2017 Operating and Financial Highlights

    2017 OPERATING AND FINANCIAL HIGHLIGHTS 4 Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. Refer to information regarding non-GAAP financial measures in the attached Appendix. 1 Company information

  5. Slide 5: 2018 Operating and Financial Guidance

    2018 OPERATING AND FINANCIAL GUIDANCE 5 Other Considerations • New Home Sales Volume: 500 – 560 • Pre-owned Home Sales Volume: 2,650 – 2,900 • Increase in Revenue Producing Sites: 2,700 – 2,900 Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended

  6. Slide 6: Powering Sun's Growth Engine

     Sun is the premiere owner and operator of manufactured home (―MH‖) and recreational vehicle (―RV‖) communities  Strong cycle-tested record of operating, expanding and acquiring MH and RV communities dating back to 1975 6 POWERING SUN’S GROWTH ENGINE Source: Company information. Refer to Sun Commu

  7. 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 501 years  Tenure of residents in our communities is approximately 12 1 years Source: Company information. Refer to Sun Communities, I

  8. Slide 8: Strong Same Community Performance

    5.5% 5.9% 7.7% 9.1% 7.1% 6.9% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 2018E 7.0% - 7.5% 86.7% 88.9% 93.2% 95.9% 96.6% 97.3% YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 $437 $445 $461 $481 $498 $518 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 STRONG SAME COMMUNITY PERFORMANCE 8  Posi

  9. Slide 9: Consistent and Cycle Tested Internal Growth

    CONSISTENT AND CYCLE TESTED INTERNAL GROWTH 9 Source: Citi Investment research, September, 2017. “REIT Industry Average” includes an index of REITs across a variety of asset classes including: self storage; mixed office; regional malls; shopping centers; apartments; student housing; manufactured hom

  10. Slide 10: Manufactured Housing vs. Multifamily

    10 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    $917 1 per month Multifamily Housing $1,150 2 per month SQUARE FOOTAGE PRICE 1,250 1 sq. ft. 1,100 2 sq. ft. $0.73 per sq. ft

  11. Slide 11: Manufactured Housing vs. Single Family

    Source: Manufactured Housing Institute, Quick Facts: “Trends and Information About the Manufactured Housing Industry, 2017.” 1 Historical average from SUI community applications. 11 MANUFACTURED HOUSING VS. SINGLE FAMILY Single Family Homes Manufactured Homes  Average cost of Single Family is $286,

  12. Slide 12: Expansions Provide Strong Growth and Attractive Returns

    12 GROWTH AND ATTRACTIVE RETURNS EXPANSIONS PROVIDE STRONG Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information.  Approximately 2,100 sites were delivered throughout 2017  At the start of 2018, invent

  13. Slide 13: Rental Program Expansion Opportunities

    13 SUPPORTED BY RENTAL PROGRAM EXPANSION OPPORTUNITIES Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. 1 Operating expenses include repairs and refurbishment, taxes and insurance, marketing, and c

  14. Slide 14: Extracting Value from Strategic Acquisitions

    2013 EXTRACTING VALUE FROM STRATEGIC ACQUISITIONS 14  Since May 2011, Sun has acquired communities valued in excess of $4.5 billion, increasing its number of sites and communities by ~180% 1 2011 159 communities 54,811 sites 173 communities 63,697 sites 188 communities 69,789 sites 217 communities

  15. Slide 15: Case Study – Deerwood MH Community in Orlando, FL

    CASE STUDY – DEERWOOD MH COMMUNITY IN ORLANDO, FL 15 Deerwood | Orlando, FL All-age MH community acquired in 2015 as part of $1.3bn Green Courte transaction Purchase price: $43.5mm Additional investment: $1.5mm • Repaved roads • Installed new street lights and road signs • Remodeled sales office • R

  16. Slide 16: Strategic Balance Sheet

    2018 2019 2020 2021 2022 CMBS Fannie Mae Freddie Mac Life Companies $64,314 $82,544 $270,680 $58,078 STRATEGIC BALANCE SHEET 16 Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. 1 The debt ratios ar

  17. Slide 17: Appendix

    APPENDIX RIVERSIDE CLUB GOLF & MARINA – RUSKIN, FL

  18. Slide 18: Strategy-Driven Outperformance

    (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 21.8% 5.1% 24.9% (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 70.4% 38.3% 17.0% STRATEGY-DRIVEN OUTPERFORMANCE 18  Sun has significantly outperformed major REIT and broader market indices over the last ten years Source: S&P Glob

  19. Slide 19: Consistent NOI Growth

    $90 $110 $130 $150 $170 $190 $210 $230 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sun Communities Manufactured Housing Apartment Industrial Mall Office Strip Mall Self-storage $207 $147 $138 $134 $128 CONSISTENT NOI GROWTH 19  Manufactured housing is o

  20. Slide 20: Non-GAAP Terms Defined

    NON-GAAP TERMS DEFINED 20 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

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

    NET INCOME / (LOSS) TO FFO RECONCILIATION 21 (amounts in thousands except per share data) Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. 2017 2016 2017 2016 2015 Net income / (loss) attributable

  22. Slide 22: Net Income / (Loss) to NOI Reconciliation

    NET INCOME / (LOSS) TO NOI RECONCILIATION 22 (amounts in thousands) Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. 2017 2016 2017 2016 2015 Net income / (loss) attributable to Sun Communities, In

  23. Slide 23: Net Income / (Loss) to Recurring EBITDA Reconciliation

    23 NET INCOME / (LOSS) TO RECURRING EBITDA RECONCILIATION (amounts in thousands) Source: Company information. Refer to Sun Communities, Inc. Form 10-K and Supplemental for the year ended December 31, 2017 for additional information. 2017 2016 2017 2016 2015 Net income / (loss) attributable to Sun Co

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