Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Day (June 2022)
34 slides from Sun Communities's investor day presentation, Jun 21, 2022
Slide 1: Investor Day Presentation June 2022
INVESTOR DAY PRESENTATION JUNE 2022
Slide 2: Park Holidays – Investor Day Agenda
PARK HOLIDAYS – INVESTOR DAY AGENDA Overview and Rationale Business Overview Why Park Holidays 1 2 3 SEAVIEW – WHITSTABLE, KENT STEEPLE BAY – SOUTHMINSTER, ESSEX WOOD FARM – CHARMOUTH, DORSET 2
Slide 3: Overview and Rationale
ug it | OVERVIEW AND RATIONALE
Slide 4: Acquisition of Park Holidays UK
ACQUISITION Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. Refer to information regarding non-GAAP financial measures in the attac
Slide 5: Look and Feel Like Sun's MH and RV Properties
LOOK AND FEEL LIKE SUN'S MH AND RV PROPERTIES ALLENDALE MEADOWS – ALLENDALE, MICHIGAN SUN OUTDOORS SARASOTA – SARASOTA, FLORIDA SUN OUTDOORS ORANGE BEACH – ORANGE BEACH, ALABAMA BUENA VISTA – BUCKEYE, ARIZONA HARTS – ISLE OF SHEPPEY, KENT COGHURST HALL – HASTINGS, SUSSEX SEAWICK – NR CLACTON-ON-SEA,
Slide 6: Look and Feel Like Sun's MH and RV Properties
CIDER MILL CROSSING – FENTON, MICHIGAN Source: Company websites EAGLE CREST – FIRESTONE, COLORADO MEADOWBROOK VILLAGE – TAMPA, FLORIDA JELLYSTONE PARK – NATURAL BRIDGE STATION, VIRGINIA LOOK AND FEEL LIKE SUN'S MH AND RV PROPERTIES CARLTON MERES – SAXMUNDHAM, SUFFOLK SEAVIEW – WHISTABLE, KENTGOLDEN
Slide 7: Industry-Leading UK Holiday Park Business and Platform
Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. Refer to information regarding non-GAAP financial measures in the attached Appendix
Slide 8: Park Holidays Business Overview
2 PARK HOLIDAYS BUSINESS OVERVIEW
Slide 9: Experienced, Long-Tenured Management Team
EXPERIENCED, LONG-TENURED MANAGEMENT TEAM ## Years of relevant experience Years at Park Holidays 16+35+ Jeff Sills Chief Executive Officer Early career spent with Grand Metropolitan and Greene King where he was Managing Director of its Hungry Horse Division Led the Electra-backed acquisition of
Slide 10: Longstanding Track Record and History in the UK Holiday Park Market
LONGSTANDING TRACK RECORD AND HISTORY IN THE UK HOLIDAY PARK MARKET Disposal Acquisition 2006 2007 2008 2013 2014 2020 2021 2013: Park Holidays UK acquired by Caledonia 2006: Graphite Private Equity backed MBO 2015 20182016 2017 2019 2017: Park Holidays UK acquired by Intermediate Capital Group (2)
Slide 11: Park Holidays Business Segment Overview
PARK HOLIDAYS BUSINESS SEGMENT OVERVIEW Source: Company information (1) Percentage of Park Holidays’ gross profit calculated based on Park Holidays’ audited management accounts for the twelve months ended December 31, 2021 prepared in accordance with IFRS Vacation Package Rentals Site Rentals Holida
Slide 12: Site Rental Income Overview
8.0K 8.3K 9.2K 10.1K 12.4K 2017 2018 2019 2020 2021 SITE RENTAL INCOME OVERVIEW Reliable, Recurring Income Stream.. Increased Site Ownership and Premiumization Drive Strong Site Income Growth …with Ability to Grow Site Rental Fees Park Holidays has a track-record of site rental fee growth supporte
Slide 13: Holiday Home Ownership Options Available at Various Price Points
HOLIDAY HOME OWNERSHIP OPTIONS AVAILABLE AT VARIOUS PRICE POINTS Source: Company information; supplier marketing materials (1) Average site fee as of December 31, 2021; equal to ~$400 / month at 1.23 USD/GBP exchange ratio (as of 06/10/22); includes rates and water fees Diverse Offerings Across Unit
Slide 14: Holiday Home Sales Overview
92% 79% 4% 14% 4% 7% 2012 2021 Standard Large Lodge HOLIDAY HOME SALES OVERVIEW Holiday Home Sales Mix Evolution (%)(1) Owner Turnover, Unit Upgrades and Premiumization Support Recurring Revenue Growth Premiumization Magnifies Revenue and Margin Growth Supply of newly vacant sites, and leaving or
Slide 15: Holiday Rentals Overview
13% 14% 15% 14% 13% HOLIDAY RENTALS OVERVIEW Source: Company information (1) In 2021, including Bridge Leisure, which was acquired in 2021 (2) 36% of visitors in 2021 had previously stayed at a Park Holidays park in 2018 – 2020; excluding Bridge Leisure (3) Excludes RV and grass sites, tents and cam
Slide 16: Robust Organic Growth Through Park Expansion
Source: Company information (1) Figures per yearly capital expenditure schedules ROBUST ORGANIC GROWTH THROUGH PARK EXPANSION Robust pipeline of additional ~2,900 expansion sites Management team focused on securing additional sites and expanding footprint opportunistically 16 Low Maintenance Cap
Slide 17: External Growth – Acquiring Park Leisure
EXTERNAL GROWTH – ACQUIRING PARK LEISURE Park Holidays has agreed to acquire Park Leisure for £182mm High Quality Portfolio Strong Platform Good Growth Potential Synergies Eleven 5-star, premium holiday parks Diverse geographic locations and service offerings (coastal holiday / countryside retreat)
Slide 18: Strategic Rationale for Park Leisure Acquisition
STRATEGIC RATIONALE FOR PARK LEISURE ACQUISITION 18 High Quality Sites Complementary to Park Holidays Strengthens presence in the key Yorkshire and Cornwall markets and extends footprint into Wales Broadens the range of park styles Multiple avenues for growth Quality enhancing to existing Pa
Slide 19: Park Leisure's High Quality Portfolio Complements Park Holidays' Assets
PARK LEISURE’S HIGH QUALITY PORTFOLIO COMPLEMENTS PARK HOLIDAYS’ ASSETS 19Source: Company information
Slide 20: Park Holidays ESG Initiatives
Mattress recycling program Glass recycling program Waste Electrical and Electronic Equipment (WEEE) collection program Expanding Waste Reduction and Diversion Programs Double glazed windows and central heating in all holiday rentals accommodations by the end of 2022 Launched bio-mass boile
Slide 21: Why Park Holidays
3 WHY PARK HOLIDAYS
Slide 22: Why Park Holidays
WHY Market-Leading Platform with Recognized Brand 42 Holiday Parks with ~15,900 sites Resilient Business Has Successfully Operated Through Multiple Economic Cycles Attractive Operating Model Generates Consistent Cash Flow Favorable UK Macro & Industry Trends Proven Track Record of Growth Via Expansi
Slide 23: Market Leading Platform
MARKET LEADING PLATFORM (1) Per global consulting firm analysis (2) Assuming customer segments are evenly distributed across the regions of the UK within the over age 45 segments (3) Per the Office for National Statistics 1 ~£5bn total market value in 2021(1) 75% of the current market is within a 90
Slide 24: Attractive Operating Model Generates Consistent Cash Flow
ATTRACTIVE OPERATING MODEL GENERATES CONSISTENT CASH FLOW2 Source: Company information (1) Calculated based on Park Holidays’ audited management accounts for the twelve months ended December 31, 2021 prepared in accordance with IFRS Self-funded investment creates flywheel effect that drives demand a
Slide 25: Successfully Operated Through Multiple Economic Cycles
SUCCESSFULLY OPERATED THROUGH MULTIPLE ECONOMIC CYCLES Resilient Through Cycles Holiday Home Sales (number of units) Cycle-tested record of strong and consistent growth, despite the challenges stemming from the Global Financial Crisis, Brexit and COVID-19 pandemic Proven resilient business under
Slide 26: Favorable UK Macro & Industry Trends
42% 49% 57% 58% 51% 43% 2008-09 2012-13 2018-19 UK Abroad FAVORABLE UK MACRO & INDUSTRY TRENDS Strong Historic Growth in UK Holiday Park Market £1.7 £0.8 £0.9 £0.3 £2.1 £0.9 £1.4 £0.4 UK Holiday Park Market (£B) 2016: ~ £3.6B 2021: ~ £4.7B Holiday Home Sales Site Rentals Holiday Rentals Ancillary CA
Slide 27: Proven Track Record of Growth
PROVEN TRACK RECORD OF GROWTH Park Expansion 2017 - 2021 (Top 10 Parks) 638 500 504 483 466 430 359 265 255 94 667 582 594 562 511 456 485 346 426 128 2017 2021 27 Number of Sites Per Park 5 Multitude of Value Creation Levers Support Organic Growth Professional Sales and Marketing Optimization of Ow
Slide 28: Why Park Holidays
WHY Market-Leading Platform with Recognized Brand 42 Holiday Parks with ~15,900 sites Resilient Business Has Successfully Operated Through Multiple Economic Cycles Attractive Operating Model Generates Consistent Cash Flow Favorable UK Macro & Industry Trends Proven Track Record of Growth Via Expansi
Slide 29: Appendix
4 APPENDIX
Slide 30: Glossary of Terms
GLOSSARY OF TERMS US TERM UK EQUIVALENT Site Towable RV RV / Motorhome Manufactured Home (MH) Holiday Rentals and RV (segment) Vacationer Pitch Touring Caravan Motorhome Caravan Holiday Home (CHH) Hire and Touring (segment) Holidaymaker A tract of land inside the park that hosts or is meant to host
Slide 31: Illustrative Holiday Home Layouts
ILLUSTRATIVE HOLIDAY HOME LAYOUTS Source: Company information; supplier marketing materials 31 Standard (Single – Wide) 39 x 12 feet Large (Single – Wide) 42 x 14 feet Lodge (Double - Wide) 40 x 20 feet
Slide 32: Sun Communities, Inc. Overview
283 161 31 41 130 MH Communities RV Resorts Hybrid MH & RV UK Holiday Parks(1) Marinas 646 properties across 39 states, Canada and the UK SUN COMMUNITIES, INC. OVERVIEW (NYSE: SUI) Current Portfolio As of June 6, 2022 Rental Revenue Breakdown Property Count As of June 6, 2022 Source: Company informa
Slide 33: Management Bios
YEARS OF EXPERIENCE MANAGEMENT BIOS GARY A. SHIFFMAN Chairman and Chief Executive Officer JOHN B. MCLAREN President and Chief Operating Officer FERNANDO CASTRO-CARATINI Executive Vice President and Chief Financial Officer JEFF A. SILLS Chief Executive Officer RICHARD ULLMAN Chief Operating Officer C
Slide 34: 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. (“we”, the “Company” or “Sun”) and from third-party sources indicated herein. Such third-party information has not been ind