Slide 1: Investor Presentation
SUN OUTDOORS MYRTLE BEACH – CONWAY, SC INVESTOR PRESENTATION MAY 11, 2022
Slide 2: Forward-Looking Statements
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-party information has not been ind
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Leading owner and operator of manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas Favorable demand drivers combined with supply constraints Consistent organic growth enhanced with embedded expansion opportunities LAUREL HEIGHTS – UNCASVILLE, CT
Slide 4: Sun Communities, Inc. Overview (NYSE: SUI)
SUN COMMUNITIES, INC. OVERVIEW (NYSE: SUI) Current Portfolio Property Count As of May 11, 2022 As of May 11, 2022 646 properties across 39 5,237 16,840 states, Canada and the UK 780 3,430 207 233 75 (1) 1,330 3,141 2,398 / 221 Marinas(1) 475 2,822 927 / 2,518 591 33,124 3,465 3,638 1,536 2,005 / 3,2
Slide 5: 1Q22 Summary Performance Update
1Q22 SUMMARY PERFORMANCE UPDATE PORTFOLIO PERFORMANCE SAFE HARBOR CITY BOATYARD – CHARLESTON, SC • 4.2% Weighted average monthly rental rate increase • 96.7% MH occupancy and 670 RPS gains of which 90% were RV transient conversions to annual leases • Increased Full Year Core FFO per share guidance r
Slide 6: Powering Sun's Internal Growth Engine
POWERING SUN’S INTERNAL GROWTH ENGINE Sun is the premier owner and operator of MH and RV communities Strong cycle-tested record of operating, expanding and acquiring MH and RV communities dating back to 1975 INTERNAL LEVERS Contractual Rent Increases MH Occupancy Gains 96.7% 1Q 2022 MH Occupancy
Slide 7: Powering Sun's External Growth Engine
POWERING SUN’S EXTERNAL GROWTH ENGINE EXTERNAL LEVERS Acquisitions Development ~$1.6bn investment Targeting 3 – 5 in 47 properties YTD since start of 2022 new development project starts per year 4.8x increase Target 7% – 9% in properties since year end 2010 ground-up development IRRs(1) High degree
Slide 8: 2022 Acquisition & Development Activity
2022 ACQUISITION & DEVELOPMENT ACTIVITY Investment Activity Summary (1) (1) Acquisitions YTD Ground-up & Redevelopments Expansions LANDSCOVE – DEVON, UK SMITH CREEK CROSSING – GRANBY, CO SUN OUTDOORS PETOSKEY BAY HARBOR – PETOSKEY, MI ACQUIRED IN APRIL 2022 ~$1.6bn purchase price $153mm invested $84
Slide 9: Sticky Customer Base with Limited CapEx
STICKY CUSTOMER BASE WITH LIMITED CAPEX Annual home move-outs in Sun’s MH communities are less than 1% ꟷ Low turnover driven by a $6k - $10k average cost for a resident to move a home ꟷ Average tenure of residents in our MH communities is ~14 years(1) RVs stay in Sun’s resorts for ~9 years on av
Slide 10: Consistent and Cycle Tested Cash Flow Growth
CONSISTENT AND CYCLE TESTED CASH FLOW GROWTH Favorable demand drivers, high barriers to entry and Sun’s investment and operational prowess have resulted in consistent and cycle tested organic cash flow growth Over at least the past 20 years, every individual year or rolling 4-quarter period has
Slide 11: Renting – MH vs. Other Rental Options
RENTING – MH VS. OTHER RENTAL OPTIONS Manufactured homes in Sun’s communities provide 25% more space at ~52% less cost per square foot Manufactured Homes in Other Rental Sun’s Communities Options(1) PRICE $0.91 per sq. ft. $1.90 per sq. ft. SQUARE FOOTAGE 1,250 sq. ft. 1,000 sq. ft. RENT $1,13
Slide 12: Homeownership – MH vs. Single Family
HOMEOWNERSHIP – MH VS. SINGLE FAMILY Sun is the premiere provider of highly amenitized living at an affordable price ($ in thousands) Average Household Income ~$46k(1) Manufactured Homes Single Family Homes Average cost of a new Manufactured Home is Average cost of Single Family is $308,597 or
Slide 13: Expansions Provide Attractive Returns
EXPANSIONS PROVIDE ATTRACTIVE RETURNS Investment in expansion sites boosts growth in highly accretive manner Sun expands in communities and resorts with high occupancies and continued strong demand 12 - 24 months average lease-up for 100-site expansion ~8,300 sites available in expansion invento
Slide 14: Maximizing Value from Strategic Acquisitions
MAXIMIZING VALUE FROM STRATEGIC ACQUISITIONS Professional Operational Management Adding Value with Expansions Home Sales & Rental Program Call Center & Digital Marketing Outreach Skilled Expense Management Repositioning with Additional Capex Properties and Sites • Since 2010, Sun has acquired proper
Slide 15: Acquisition: Park Holidays UK
ACQUISITION Sun Acquired Park Holidays UK, the 2nd Largest UK Holiday Park Owner & Operator Owns and operates 40 communities and two managed communities, comprising ~15,900 sites High quality, mostly seaside communities throughout the affluent South of England Purchase price of £950mm, or ~$1.
Slide 16: We Are the Premier Marina Operator
WE ARE THE PREMIER MARINA OPERATOR We own an irreplicable network of marinas 128 37,000 8,700 24 80% 75% 45,700 7.6 Owned Approximate Approximate States & of Marinas Located of Marinas Owned Approximate Years Average Marinas (1) Wet Slips Dry Storage Spaces(2) Puerto Rico in Coastal Markets(3) Fee
Slide 17: Marina Sector Pioneer and Consolidator
MARINA SECTOR PIONEER AND CONSOLIDATOR Marina Acquisition Pace Acquired $2,106 64% of initial 99 transaction value over past 18 months 7 4 $466 $423 6 5 4 3 $214 $132 $82 $40 Original 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Transaction JARRETT BAY BOATWORKS - BEAUFORT, NC ACQUIRED IN FEBRUARY 2022 Key Transac
Slide 18: Strategic Balance Sheet
STRATEGIC BALANCE SHEET Balance sheet supports growth strategy Total debt maturities over the next 5 years averages 6.8% per year Current Debt Outstanding(1) Mortgage Debt 5-Year Maturity Ladder principal amounts in millions amounts in millions $521.6 As of March 31, 2022 Weighted $315.3 Princip
Slide 19: Sun Communities' ESG Initiatives
SUN COMMUNITIES’ ESG INITIATIVES We are committed to sustainable business practices to benefit all stakeholders: team members, residents and guests, shareholders and the broader communities where we operate We will continue to enhance Sun’s sustainability program through the formal adoption of a
Slide 20: Strategy-Driven Outperformance
STRATEGY-DRIVEN OUTPERFORMANCE Sun has significantly outperformed major REIT and broader market indices over the last ten years 2022 YTD Total Return 3-year Total Return 5.0% 100.0% 0.0% 75.0% 57.7% (5.0%) 53.5% 50.0% (8.3%) 31.2% (10.0%) 25.0% (12.9%) (15.0%) (16.0%) 0.0% (20.0%) (25.0%) (25.0%)
Slide 21: Best Performance Among Real Estate Sectors
BEST PERFORMANCE AMONG REAL ESTATE SECTORS Sun has proven its strategy through recession resilience and consistent outperformance of multi-family in terms of same community NOI growth since 2000 Indexed Same Community NOI Growth CAGR $280 Sun Communities 5.1% $268 Self-Storage 4.8% $266 MH 4.8% $1
Slide 22: Appendix
APPENDIX SARALAKE ESTATES – SARASOTA, FL
Slide 23: Non-GAAP Terms Defined
NON-GAAP TERMS DEFINED Investors in and analysts following the real estate industry utilize funds from operations (“FFO”), net operating income (“NOI”), and earnings before interest, tax, depreciation and amortization (“EBITDA”) as supplemental performance measures. The Company believes that FFO, NO
Slide 24: Net Income to FFO Reconciliation
NET INCOME TO FFO RECONCILIATION Three Months Ended March 31, Year Ended December 31, (amounts in millions except per share data) 2022 2021 2021 2020 2019 Net Income Attributable to Sun Communities, Inc. Common Shareholders $ 0.7 $ 24.8 $ 380.2 $ 131.6 $ 160.3 Adjustments Depreciation and amortizati
Slide 25: Net Income to NOI Reconciliation
NET INCOME TO NOI RECONCILIATION Three Months Ended March 31, Year Ended December 31, (amounts in millions) 2022 2021 2021 2020 2019 Net Income Attributable to Sun Communities, Inc., Common Shareholders $ 0.7 $ 24.8 $ 380.2 $ 131.6 $ 160.3 Interest income (6.8) (2.6) (12.2) (10.1) (17.9) Brokerage c
Slide 26: Net Income to Recurring EBITDA Reconciliation
NET INCOME TO RECURRING EBITDA RECONCILIATION Three Months Ended March 31, Year Ended December 31, (amounts in millions) 2022 2021 2021 2020 2019 Net Income Attributable to Sun Communities, Inc., Common Shareholders $ 0.7 $ 24.8 $ 380.2 $ 131.6 $ 160.3 Adjustments Depreciation and amortization 148.5