Sun Communities, Inc. · NYSE:SUI

Sun Communities — Investor Presentation (November 2017)

21 slides from Sun Communities's investor presentation, Nov 13, 2017

  1. Slide 1: Investor Presentation November 2017

    INVESTOR PRESENTATION NOVEMBER 2017 PALM CREEK – CASA GRANDE, AZ

  2. 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”, “Sun”) and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warr

  3. Slide 3: Sun Communities, Inc. (NYSE: SUI) Overview

    SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 as well as Press Releases after September 30, 2017 for additional information. 4,882 1,595 680 149 1,757 25,756 3,009 1,277 916 1

  4. Slide 4: 2017 Year-to-Date Highlights

    Purchase Price Sites Location Acquisition Date 49er Village RV Resort $13.0mm 328 Plymouth, California March 16, 2017 Land Parcel $5.9mm 775 Myrtle Beach, South Carolina April 20, 2017 Sunset Lakes RV Resort $8.0mm 498 Hillsdale, Illinois May 18, 2017 Arbor Woods MH Community $16.9mm 458 Superior To

  5. Slide 5: Powering Sun's Growth Engine

     Sun is the premiere owner and operator of manufactured home (“MH”) and recreational vehicle (“RV”) communities  Strong cycle-tested record of operating, expanding and acquiring MH and RV communities dating back to 1975 5 POWERING SUN’S GROWTH ENGINE Source: Company Information. Refer to Sun Commu

  6. Slide 6: Sun's Favorable Revenue Drivers

    SUN’S FAVORABLE REVENUE DRIVERS 6  The average cost to move a home ranges from $4K-$10K, resulting in low move-out of homes  Tenure of homes in our communities is 44 years1  Tenure of residents in our communities is approximately 13 years1 Source: Company Information. Refer to Sun Communities, In

  7. Slide 7: Strong Same-Community Performance

    STRONG SAME-COMMUNITY PERFORMANCE 7  Positive NOI growth for 18 consecutive years  Low-annual resident turnover results in stability of income and occupancy Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the period ended September 30, 2017 and Form 10-K

  8. Slide 8: Expansions Provide Strong Growth and Attractive Returns

    8 GROWTH AND ATTRACTIVE RETURNS EXPANSIONS PROVIDE STRONG Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information.  Approximately 2,200 sites are expected to be developed by the end of 2017  At the s

  9. Slide 9: Supported by Rental Program Expansion Opportunities

    9 SUPPORTED BY RENTAL PROGRAM EXPANSION OPPORTUNITIES Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information. 1 Operating expenses include repairs and refurbishment, taxes and insurance, marketing, an

  10. Slide 10: Extracting Value from Strategic Acquisitions

    2013 EXTRACTING VALUE FROM STRATEGIC ACQUISITIONS 10  Since May 2011, Sun has acquired communities valued in excess of $4.4 billion, increasing its number of sites and communities by ~180% 1 2011 159 communities 54,811 sites 173 communities 63,697 sites 188 communities 69,789 sites 217 communities

  11. Slide 11: Strategic Balance Sheet

    STRATEGIC BALANCE SHEET 11 Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information. 1 The debt ratios are calculated using trailing 12 months EBITDA for the period ended September 30, 2017. Refer to in

  12. Slide 12: Strong Internal Growth

    -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q

  13. Slide 13: Strategy-Driven Outperformance

    5-year Total Return STRATEGY-DRIVEN OUTPERFORMANCE 13  Sun has significantly outperformed major REIT and broader market indices over the last ten years 2017 Year to Date Total Return Source: SNL Financial as of September 30, 2017. 3-year Total Return 10-year Total Return Sun Communities, Inc. (SUI)

  14. Slide 14: Appendix

    APPENDIX PETERS POND RV RESORT – SANDWICH, MA

  15. Slide 15: Consistent NOI Growth

    CONSISTENT NOI GROWTH 15  Manufactured housing is one of the most recession-resistant sectors of the housing and commercial real estate sectors and has consistently outperformed multifamily in same community NOI growth since 2000 NOI Growth Source: Citi Investment research, September, 2017. Refer t

  16. Slide 16: Manufactured Housing vs. Multifamily

    16 MANUFACTURED HOUSING VS. MULTIFAMILY  Sun’s manufactured homes provide nearly 15% more space at over 30% less cost per square foot Sun’s Manufactured Homes VS. RENT    ~$908 1 per month Multifamily Housing ~$1,1502 per month SQUARE FOOTAGE PRICE ~1,2501 sq. ft. ~1,1002 sq. ft. $0.73 per sq. f

  17. Slide 17: Manufactured Housing vs. Single Family

    Source: Manufactured Housing Institute, Quick Facts: “Trends and Information About the Manufactured Housing Industry, 2017.” 1 Historical average from SUI community applications. 17 MANUFACTURED HOUSING VS. SINGLE FAMILY Single Family Homes Manufactured Homes  Average cost of Single Family is $286,

  18. Slide 18: Non-GAAP Terms Defined

    NON-GAAP TERMS DEFINED 18 Investors in and analysts following the real estate industry utilize funds from operations (“FFO”), net operating income (“NOI”), and recurring earnings before interest, tax, depreciation and amortization (“Recurring EBITDA”) as supplemental performance measures. We believe

  19. Slide 19: Net Income to FFO Reconciliation

    NET INCOME TO FFO RECONCILIATION 19 (amounts in thousands except per share data) Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information. 2017 2016 2017 2016 2016 2015 2014 Net income attributable to S

  20. Slide 20: Net Income to NOI Reconciliation

    NET INCOME TO NOI RECONCILIATION 20 (amounts in thousands) Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information. 2017 2016 2017 2016 2016 2015 2014 Net income attributable to Sun Communities, Inc.,

  21. Slide 21: Net Income to Recurring EBITDA Reconciliation

    21 NET INCOME TO RECURRING EBITDA RECONCILIATION (amounts in thousands) Source: Company Information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended September 30, 2017 for additional information. 2017 2016 2017 2016 2016 2015 2014 Net income attributable to Sun Commun

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