Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (February 2015)
19 slides from Sun Communities's investor presentation, Feb 24, 2015
Slide 1: Investor Presentation February / March 2015
November 2014February / March 2015
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") and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, e
Slide 3: Sun Communities, Inc. (NYSE:SUI)
3 SUN COMMUNITIES, INC. (NYSE:SUI)* Leading owner, operator and developer of manufactured housing (“MH”) and recreational vehicle (“RV”) communities Sun Communities’ current portfolio includes 242 communities consisting of approximately 88,900 sites across 29 states □ 208 MH communities, 25 RV r
Slide 4: Affordability Drives Manufactured Housing: vs. Multifamily
4 Comparing Sun manufactured homes to the multifamily average, a manufactured home provides approximately 30% more space at approximately 40% less cost per square foot. AFFORDABILITY DRIVES MANUFACTURED HOUSING Sun – Manufactured Homes Apartments • Average rent ≈ $825/month or $0.63/square foot • Av
Slide 5: Affordability Drives Manufactured Housing: vs. Single Family
5 AFFORDABILITY DRIVES MANUFACTURED HOUSING Manufactured Housing vs. Single Family: • Average cost of Manufactured Housing ≈ $64,000 or roughly 1 years income • Average cost of Single Family ≈ $324,500 or roughly 5 years income The median income in the 29 states in which Sun operates is $60,000. The
Slide 6: Stability of Revenue
6 STABILITY OF REVENUE Stable and growing revenue due to: Low turnover of owner occupied sites due to high cost to move a home ($4,000-$10,000) Average tenure of our residents in our communities is 13 years Average term of home in our communities is approximately 40 years Move Outs and Re-Sale
Slide 7: Capital Expenditures
7 CAPITAL EXPENDITURES Manufactured housing is a low capex business relative to its peers as it is largely a land ownership business. Source: Company filings Data as of 12/31/2013 Capex as a % of Revenues
Slide 8: Recession Resistant
8 RECESSION RESISTANT Low annual resident turnover results in stability of income and occupancy Strong and consistent rental growth creating a stable revenue stream Occupancy gains are a function of Sun’s integrated platform, including leasing, sales, and financing Same Site NOI Growth Same Si
Slide 9: Same Site NOI
9 SAME SITE NOI Sun’s average same site NOI growth has exceeded the Industry Average by 1.5% and Apartment Average by 1.4% over a 15 year period. Source: Citi Investment research, February 2015. “REITs”- includes an index of REITs across a variety of asset classes including self storage, mixed offic
Slide 10: Same Site Indexed NOI Growth
10 Source: SNL SAME SITE INDEXED NOI GROWTH MH is the most recession resistant sector of the housing and commercial real estate sectors and has consistently outperformed multifamily in same site NOI growth since 2000.
Slide 11: Timeline: Strategic Acquisitions
11 a 2011 2012 2013 2014 2015 June 2011- 17 MH & 1 RV properties Kentland Acquisition growing the portfolio. TIMELINE : STRATEGIC ACQUISITIONS November 2012- Further strengthened the MH portfolio with the 6 community Rudgate Acquisition. December 2012- Acquired Palm Creek, an irreplaceable age restr
Slide 12: Growth Through Accretive Acquisitions
12 2012 Acquisitions (11 Communities) 2011 Acquisitions (26 Communities) GROWTH THROUGH ACCRETIVE ACQUISITIONS Since June 2011, Sun has acquired over $2.2 billion of acquisitions, increasing its number of sites and communities by 85% and 78%, respectively, diversifying from both a business segment a
Slide 13: ALL Acquisition Increases Sun's Scale and Diversification
13 Pre-Acquisition Post-Acquisition “ALL” ACQUISITION INCREASE’S SUN’s SCALE AND DIVERSIFICATION Geographic Diversification Expected NOI Growth in 2015: 4% - 5% Expected Occupancy YE 2015: 92% Capital Expenditures: $32.0 million (2 year plan) MI FL TX IN AZ Other (33%) (19%) (9%) (9%) (3%) (27%) MI
Slide 14: Berger Acquisition
14 All‐Age, 90% Age‐Restricted, 10% Demographic Diversification Pre- ALL Acquisition All‐Age, 74% Age‐ Restricted, 26% Post-Acquisition* Consideration Anticipated Closing Second quarter 2015 * Includes ALL and Berger acquisition. There can be no assurances the Berger acquisition will occur or of the
Slide 15: Growth Through Expansion Opportunities
GROWTH THROUGH EXPANSION OPPORTUNITIES 15 Inventory of over 7,600* zoned and entitled sites available for expansion at 40 communities Expanding in communities with strong demand evidenced by occupancy of ~95% Expansion lease-up is driven by sales, rental and relocation programs 800 sites exp
Slide 16: Conservative Balance Sheet
16 CONSERVATIVE BALANCE SHEET Net Debt / Enterprise Value EBITDA / Interest Net Debt / EBITDA Fixed Debt (%)
Slide 17: Experienced and Proven Leadership Team
17 EXPERIENCED AND PROVEN LEADERSHIP TEAM Key executives have a combined 80 years experience in the industry and over 65 years at the company. Senior Management team has combined experience of over 70 years at the company. Gary A. Shiffman - Chairman and Chief Executive Officer Karen J. Dearing - Ch
Slide 18: Sun Communities, Inc.
SUN COMMUNITIES, INC.
Slide 19: Performance vs. Indices
434% 264% 222% 222% 220% 206% 205% 0% 100% 200% 300% 400% 500% SUI SNL US REIT Manufactured Homes SNL US REIT Equity S&P Small‐Cap MSCI US REIT (RMS) Russell 2000 S&P 500 434% 294% 271% 264% 249% 242% 230% 220% 205% 196% 185% 0% 100% 200% 300% 400% 500% SUI Self‐Storage Shopping Malls Manufactured H
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