Slide 1: Sun Communities Investor Presentation November 2024
November 2024 Sun Communities, Inc. (NYSE: SUI) Investor Presentation COUNTRY MEADOWS VILLAGE – CALDONIA, MI
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 Highlights
Sun Communities – Company Highlights LA COSTA VILLAGE – PORT ORANGE, FL Leading Owner and Operator of Manufactured Housing (“MH”) & Recreational Vehicle (“RV”) Communities, and Marinas Stable, Resilient Real Property Operations Drive Growth Compelling Supply-Demand Fundamentals & Best-in-Class Asset
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 89% $1,200 2020 $1,000 $800 2021 $600 2022 $400 2023 $200 4% 4% 3% 2024E(1) $0 MH, RV, Marina & UK Service, retail, dining and UK home sales
Slide 5: Leading Owner and Operator of MH, RV, and Marinas
Leading Owner and Operator of MH, RV, and Marinas With ~179,100 operational sites and ~48,800 wet slips and dry storage spaces, Sun is the largest publicly traded owner and operator of MH, RV and Marinas MH RV Marina UK Largest publicly traded owner / 179 best-in-class RV Largest and most di
Slide 6: Robust Fundamentals Continue to Drive Performance
Robust Fundamentals Continue to Drive Performance Steady, Organic Growth 3.6% North America Same Property NOI growth YTD through September 2024; expect 2.6% - 3.3% growth in 2024 Consistent annual rental rate increases exceed expected inflationary cost pressures o Expected average rental rate in
Slide 7: 3Q Performance and Business Update
SMITH CREEK CROSSING – GRANBY, CO 3Q Performance and Business Update Reported Core FFO per Share of $2.34 for the quarter ended September 30, 2024 • Same Property NOI growth of 0.5% in North America and decrease of (2.3)% or $(700)k in the UK • Projected 2024 Total North America Same Property NOI gr
Slide 8: Focused Priorities and Initiatives
Focused Priorities and Initiatives PRIORITIES RESULTS OF RECENT STRATEGIC INITIATIVES Non-Strategic Asset Disposition - Year-to-date dispositions of ~$350mm+, ahead of target, at a blended cap rate ~5%; exited two states completely and two additional states from MH perspective Debt Paydown - Pai
Slide 9: Acceleration of Strategic Initiatives
Acceleration of Strategic Initiatives 1 2 3 4 Realize Revenue Growth Expense Savings Experienced Further Optimize Reflecting Favorable to Maximize Leadership Capital Structure Fundamentals NOI and FFO Growth and Restructuring Strong 2025 Rental Rate Identified actionable potential YTD debt reduction
Slide 10: 2024 Guidance
2024 Guidance FY 2023 Prior FY November 6, Core FFO Prior Guidance 2024E Same Property – Expected NOI (millions) 2024E Range 2024E Update MH NOI (283 properties) $591.7 6.8% - 7.4% 5.6% - 6.2% Fourth Quarter 2024, Core FFO Per Share N/A $1.37 - $1.45 RV NOI (163 properties) $285.4 (0.7%) - 0.9% (5.3
Slide 11: 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 6% US Inventory Growth by Property Type 5% 4% 3% 2% 1% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 GULFSTREAM HARBOR – ORLANDO, FL Manufactured Housing Multif
Slide 12: 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 5.9% CAGR 46.2% 57 58 54 13.2% 48 4.8% 0.8% 6.6% 4.2% 5.4% 4.9% 42 37 39 39 35 32 -
Slide 13: 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 14: 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 Brexit and other macroeconomic structural factors create demand for domestic other urban locations vacationing throughout UK Nu
Slide 15: UK Business Model
UK Business Model 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 volume Hire o Expecti
Slide 16: Sun's Track Record of NOI Growth
Sun’s Track Record of NOI 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 sam
Slide 17: Sun's Strong Track Record
OCEAN BREEZE – JENSEN, FL Sun’s Strong Track Record Multiple Levers Drive Long-Term FFO and Cash Flow Growth Growth Levers Potential Annual Revenue Growth / Contribution Contractual Rent - 5.9% MH base rate increase for 3Q Increases - Over 90% MH sites “market rent” or tied to CPI - ~97% MH Occupa
Slide 18: Sun's Same Property Operating Expenses
Sun’s Same Property Operating Expenses 2024E Same Property Operating Expenses North America (MH, RV and Marina) BOULDER RIDGE – PFLUGERVILLE, TX Legal, local taxes & insurance Utilities 9% Payroll & 11% benefits 33% Supplies & repair 14% SUN RETREATS HOMOSASSA RIVER – HOMOSASSA SPRINGS, FL Real esta
Slide 19: Investment Grade Balance Sheet
Investment Grade Balance Sheet Upcoming Mortgage Maturities ($ in millions)(1)(2) Credit Statistics 5.9% Rate Type(1) variable rate % of Total BBB 1.9% 0.8% 10.7% 0.1% 5.0% $651 $304 $117 $51 $4 94.1% fixed rate Baa3 2024 2025 2026 2027 2028 Total Debt Outstanding ($ in millions)(1)(2) Encumbrance(1
Slide 20: 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 21: Appendix
Appendix SUN OUTDOORS OCEAN CITY – BERLIN, MD 21
Slide 22: 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 23: Net Income to FFO Reconciliation
Net Income to FFO Reconciliation Three Months Ended Nine Months Ended Year Ended September 30, September 30, September 30, September 30, (amounts in millions except per share data) 2024 2023 2024 2023 December 31, 2023 December 31, 2022 December 31, 2021 As Restated As Restated Net Income / (Loss) A
Slide 24: Net Income to NOI Reconciliation
Net Income to NOI Reconciliation Three Months Ended Nine Months Ended Year Ended September 30, September 30, September 30, September 30, (amounts in millions) 2024 2023 2024 2023 December 31, 2023 December 31, 2022 December 31, 2021 As Restated As Restated Net Income / (Loss) Attributable to SUI Com
Slide 25: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation Three Months Ended Nine Months Ended Year Ended September 30, September 30, September 30, September 30, (amounts in millions) 2024 2023 2024 2023 December 31, 2023 December 31, 2022 December 31, 2021 As Restated As Restated Net Income / (Loss) Attributab