Slide 1: Sun Communities, Inc. (NYSE: SUI) Investor Presentation
May 2024 Sun Communities, Inc. (NYSE: SUI) Investor Presentation DESERT HARBOR – APACHE JUNCTION, AZ
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, Marinas and UK Properties Stable & Resilient Real Property Operations Drive Growth FOX RUN – BOYNE CITY, MI Compelling Supply-Demand Fundamentals & Best-in-Class As
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 (1) $200 4% 4% 4% 2024E $0 MH, RV, Marina & UK Service, retail, dining and UK home sale
Slide 5: Leading Owner / Operator of MH, RV, Marinas and UK Properties
Leading Owner / Operator of MH, RV, Marinas and UK Properties With ~180,100 operational sites and ~48,200 wet slips and dry storage spaces, Sun is the largest publicly traded owner / operator of MH, RV, Marinas and UK Properties(1) MH RV Marina UK Largest publicly traded owner / 179 best-in-cl
Slide 6: Robust Fundamentals Continue to Drive Performance
Robust Fundamentals Continue to Drive Performance Steady, Organic Growth 7.9% North America same property NOI growth in 1Q24; expect 4.6% - 5.8% growth in 2024 to be driven by rental rate increases and occupancy gains Consistent annual rental rate increases exceed expected inflationary cost pres
Slide 7: Strong NOI Growth and Progress Toward Simplifying the Company
OCEAN VIEW – JENSEN BEACH, FL Strong NOI Growth and Progress Toward Simplifying the Company Reported Core FFO per Share of $1.19 for the quarter ended March 31, 2024 Compared to 2023, North America Same Property NOI increased by 7.9% and UK Same Property NOI increased $3.3 million, or 44.5%, for
Slide 8: 2024 Guidance Update
2024 Guidance Update FY 2023 FY 2024E FY 2023 FY 2024E Same Property – Expected NOI (millions) Change UK Home Sales Volume Range MH NOI (291 properties) $607.9 6.2% - 7.1% UK home sales volume 2,857 2,650 – 2,850 RV NOI (165 properties) $291.7 (0.3)% - 1.3% FFO contribution from UK home sales ($ in
Slide 9: Compelling Supply-Demand Fundamentals: Manufactured Housing North America
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) – North America Supply • Virtually no new supply has been added for years US Inventory Growth by Property Type 6% 4% 2% 0% 2015 2016 2017 2018 2019 2020 2021 Manufactured Housing Multifamily RIVERSIDE CLUB – RUSKIN, FL BOWLAND FELL- YOR
Slide 10: 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 11: 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 12: Compelling Supply-Demand Fundamentals: Manufactured Housing UK
Compelling Supply-Demand Fundamentals Manufactured Housing (MH) - UK Supply Demand Irreplaceable coastal ‘destination’ locations that are short drives from London and other urban locations Brexit and other macroeconomic structural factors create demand for domestic vacationing throughout UK Nu
Slide 13: 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 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
COMAL FARMS – NEW BRAUNFELS, TX 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 sites “market r
Slide 16: Sun's Track Record of Growth: Operating Expenses
Sun’s Track Record of Growth 2024E North America same property operating expense growth is projected to be 6.0% - 7.0%, reflecting normalization of expenses in North America following active cost containment strategies in 2023 2024E Same Property Operating Expenses CRESTWOOD – CONCORD, NH North Am
Slide 17: Investment Grade Balance Sheet
Investment Grade Balance Sheet Upcoming Mortgage Maturities ($ in millions)(1)(2) Credit Statistics Rate Type(1) % of Total BBB 11.3% 2.1% 0.8% 10.6% 0.1% 4.9% variable rate $658 $304 $129 $51 $4 88.7% fixed rate Baa3 2024 2025 2026 2027 2028 Total Debt Outstanding ($ in millions)(1)(2) Encumbrance(
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 Resorts & Residences Ocean Breeze Resort – Jensen Beach, FL 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 $1.05 per sq. ft. $1.98 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 ~7,100 transient to annual RV conversions sin
Slide 22: Premier Owner / Operator of Marinas
Premier Owner / Operator of Marinas Service Offerings Increase Member Tenure Average Marina member tenure (in years) 139 ~39,100 ~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% 83% 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) March 31, 2024 March 31, 2023 December 31, 2023 December 31, 2022 December 31, 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (27.4) $ (44.9) $ (213.3) $ 242.0 $ 380.2 Adjus
Slide 25: Net Income to NOI Reconciliation
Net Income to NOI Reconciliation Three Months Ended Year Ended (amounts in millions) March 31, 2024 March 31, 2023 December 31, 2023 December 31, 2022 December 31, 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (27.4) $ (44.9) $ (213.3) $ 242.0 $ 380.2 Interest income (4.6) (11.4
Slide 26: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation Three Months Ended Year Ended (amounts in millions) March 31, 2024 March 31, 2023 December 31, 2023 December 31, 2022 December 31, 2021 Net Income / (Loss) Attributable to SUI Common Shareholders $ (27.4) $ (44.9) $ (213.3) $ 242.0 $ 380.2 Adjustments De
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