Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (May 2024)
27 slides from Sun Communities's investor presentation, May 7, 2024
Slide 1: Sun Communities, Inc. Investor Presentation May 2024
M ay 2 02 4 DESERT HARBOR – APACHE JUNCTION, AZ Sun Communities, Inc. (NYSE: SUI) Investor Presentation
Slide 2: Cautionary Statement Regarding Forward-looking Statements
Cautionary Statement Regarding Forward-looking Statements 2 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-p
Slide 3: Sun Communities – Company Key Topics
Sun Communities – Company Key Topics 3Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. Refer to information regarding non-GAAP finan
Slide 4: Resilient Real Property Operations Drive Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 MH, RV, Marina & UK real property NOI Service, retail, dining and entertainment NOI UK home sales NOI North America home sales NOI 2020 2021 2022 2023 2024E Real property 88% Home Sales 8% Service, retail, dining and entertainment 4% Resilient Real
Slide 5: Leading Owner / Operator of MH, RV, Marinas and UK Properties
5 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) Leading Owner / Operator of MH, RV, Marinas and UK Properties MH Largest publicly traded owner / operator of MH communities in N
Slide 6: Robust Fundamentals Continue to Drive Performance
7.7% 9.1% 7.1% 6.9% 6.7% 7.3% 4.0% 11.2% 5.8% 7.3% 4.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2.0% 2.9% 3.1% 4.2% 5.4% 6.1% 5.4% 4.8% 7.6% 8.7% 6.5% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E ¹ CPI-U 3.4% 3.4% 3.3% 3.6% 4.0% 4.2% 3.4% 3.4% 4.6% 6.4% 5.4% 2014 2015 2016
Slide 7: Strong NOI Growth and Progress Toward Simplifying the Company
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 the first quarter of 2024 For the
Slide 8: 2024 Guidance Update
2024 Guidance Update 8 Seasonality 1Q24 2Q24 3Q24 4Q24 North America Same Property NOI MH 25% 25% 25% 25% RV 17% 25% 41% 17% Marina 19% 26% 31% 24% Total North America Same Property NOI 22% 25% 30% 23% UK Same Property NOI 14% 25% 40% 21% Home Sales FFO North America 11% 40% 29% 20% UK 17% 31% 33% 1
Slide 9: Compelling Supply-Demand Fundamentals: Manufactured Housing North America
Compelling Supply-Demand Fundamentals 9 Manufactured Housing (MH) – North America Source: Company information, U.S. Bureau of Labor Statistics., Wall Street Research and Zillow. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases
Slide 10: Compelling Supply-Demand Fundamentals: RV
Compelling Supply-Demand Fundamentals 10 RV Continued Demand for Affordable Vacationing Despite Declining RV Sales Growth in annual RV shipments and historical RV revenue growth Installed base: 11.2 million households own an RV versus 1.7 million RV campsites in the U.S. From 2008-2012, RV revenue f
Slide 11: Marinas Compelling Supply-Demand Fundamentals
Marinas Compelling Supply-Demand Fundamentals 11Source: Company information, NMMA and U.S. Census Bureau. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. Refer
Slide 12: Compelling Supply-Demand Fundamentals: Manufactured Housing UK
Compelling Supply-Demand Fundamentals 12 Manufactured Housing (MH) - UK Source: Company information, Wall Street Research and Zillow. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for ad
Slide 13: UK Business Model Building Blocks
UK Business Model Building Blocks 13 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. Refer to information regarding non-GAAP financ
Slide 14: Sun's Track Record of Growth
Sun’s Track Record of Growth 14 Multifamily REITsSun Communities 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, S
Slide 15: Sun's Strong Track Record of Internal Growth
Sun’s Strong Track Record of Internal Growth 15 Multiple Levers Drive Resilient FFO and Cash Flow Growth Growth Levers Potential Annual Revenue Growth / Contribution Contractual Rent Increases - 6.4% weighted average rate increase for 2023 - Over 90% MH sites “market rent” or tied to CPI Occupancy G
Slide 16: Sun's Track Record of Growth: 2024E Same Property Operating Expenses
Payroll & benefits 33% Real estate taxes 19% Other 14% Supplies & repair 13% Utilities 11% Legal, local taxes & insurance 10% Sun’s Track Record of Growth 16 2024E Same Property Operating Expenses North America (MH, RV, and Marina) CRESTWOOD – CONCORD, NH Source: Company information. Refer to Sun Co
Slide 17: Investment Grade Balance Sheet
Investment Grade Balance Sheet 17 Unencumbered 76.8% Encumbered 23.2% 88.7% fixed rate 11.3% variable rate Credit Statistics Rate Type(1) Upcoming Mortgage Maturities ($ in millions)(1)(2) 2.1% 0.8% 10.6% 0.1% % of Total Encumbrance(1) Gross Asset Value 69.9% NOI Unencumbered(3) 76.7% Properties Une
Slide 18: Robust ESG Initiatives
Robust ESG Initiatives 18 Environmental ESG Highlights(1) 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,
Slide 19: Appendix
Appendix 19Sun Resorts & Residences Ocean Breeze Resort – Jensen Beach, FL
Slide 20: Renting – MH vs. Other Rental Options
Compelling Supply-Demand Fundamentals 20 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 Sun’s Communities RENT $1,312 per month Other Rental Options(1) $1,983 per month SQUARE FOOTAGE PRICE
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 21 Transient Site Site revenue limited mainly to peak season months during the winter for this resort 41.0% Occupancy $40 Avg. Daily Rate $5,642 Annual Rent Annual Site Conversion 100% Occupancy $22 Avg. Daily Rate $
Slide 22: Premier Owner / Operator of Marinas
11.7% 7.5% FY23 vs. FY22 1Q24 vs. 1Q23 Marina Same Property Year-Over-Year NOI Growth Premier Owner / Operator of Marinas 22 139 Marinas in 24 States ~39,100 Wet Slips ~89% Marinas with Waitlists 83% Marinas Located in Coastal Markets(2) 76% Marinas Owned Fee Simple(3) ~9,100 Dry Storage Spaces(1) 4
Slide 23: Defined Non-GAAP Terms
Defined Non-GAAP Terms 23 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 C
Slide 24: Net Income to FFO Reconciliation
Net Income to FFO Reconciliation 24 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. (amounts in millions except per share data) Mar
Slide 25: Net Income to NOI Reconciliation
Net Income to NOI Reconciliation 25 (amounts in millions) Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. March 31, 2024 March 31,
Slide 26: Net Income to Recurring EBITDA Reconciliation
Net Income to Recurring EBITDA Reconciliation 26Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2024, as well as Press Releases and SEC Filings after March 31, 2024, for additional information. March 31, 2024 March 31, 2023 Decem
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