Slide 1: Sun Communities, Inc. June 2015
SUN 4 SUN COMMUNITIES, INC. JUNE 2015 Photo from Lakeshore V Blue Hero Pines - Punta Gorda, FL
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc. (the "Company") and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no repr
Slide 3: Sun Communities, Inc. (NYSE:SUI)
SUN COMMUNITIES, INC. (NYSE:SUI) Leading owner, operator and developer of manufactured housing (“MH”) and recreational vehicle (“RV”) communities Sun Communities’ current portfolio includes 251 communities consisting of 93,115 sites across 30 states □ 204 MH communities, 34 RV resorts, and 13 co
Slide 4: Affordability Drives Manufactured Housing
AFFORDABILITY Affordability Drives Manufactured Housing Manufactured Housing vs. Multi Family: Sun – Manufactured Homes • Average rent ≈ $835/month or $0.64/square foot • Average square footage ≈ 1,300 square feet Apartments • Average rent ≈ $1,000/month or $1.00/square foot* • Average square footag
Slide 5: Affordability Drives Manufactured Housing: vs. Single Family
The median income in the 29 states in which Sun operates is $60,000. The average single family home costs over 5x the price of a MH unit *2013 Average household income - 29 states in which SUI operates per US Census data. Housing data from 2014 MHI Quick Facts Manufactured Housing vs. Single Family
Slide 6: Stability of Revenue
STABILITY OF REVENUE Stable and growing revenue due to: Low turnover of owner occupied sites due to high cost to move a home ($4,000- $10,000) Average tenure of our residents in our communities is 13 years Average term of home in our communities is approximately 40 years No loss in revenue as
Slide 7: Capital Expenditures
CAPITAL EXPENDITURES Manufactured housing is a low capex business relative to its peers as it is largely a land ownership business Source: Company filings Data as of 12/31/2014 7 12.2% 8.8% 8.1% 4.7% 3.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Multi-family Student Housing Overall Average Self-St
Slide 8: Recession Resistant
RECESSION RESISTANT Same Site NOI Growth Same Site OccupancySame Site Rent Growth 3.12% 3.58% 5.54% 5.87% 7.71% 7.90% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 * 84.3% 85.8% 86.7% 88.9% 93.2% 94.2% 80.0% 82.0% 84.0% 86.0% 88.0% 90.0%
Slide 9: Same Site NOI
SAME SITE NOI Source: Citi Investment research, May 2015. “REITs”- includes an index of REITs across a variety of asset classes including self storage, mixed office, regional malls, shopping centers, multifamily, student housing, manufactured homes and specialty Sun’s average same site NOI growth ha
Slide 10: Same Site Indexed NOI Growth
SAME SITE INDEXED NOI GROWTH MH is the most recession resistant sector of the housing and commercial real estate sectors and has consistently outperformed multifamily in same site NOI growth since 2000. Source: SNL 10
Slide 11: Timeline: Strategic Acquisitions
TIMELINE : STRATEGIC ACQUISITIONS • 17 MH & 1 RV properties Kentland Acquisition growing the portfolio. 136 communities Acquired 115 communities in 4 years totaling over $2.4 billion, diversifying from both a business segment and geographic perspective. 11 2011 173 communities 2012 188 communities 2
Slide 12: Growth Through Accretive Acquisitions
GROWTH THROUGH ACCRETIVE ACQUISITIONS Since June 2011, Sun has acquired over $2.4 billion of acquisitions, increasing its number of sites and communities by 91% and 95%, respectively 2011 Acquisitions (26 Communities) 90.8% 92.5% 97.6% 90% 92% 94% 96% 98% 100% Year 1 Year 2 Year 3 Occupancy 2012 Acq
Slide 13: RV Industry: Growth Contributors
RV INDUSTRY : GROWTH CONTRIBUTORS Contributors In the 5 years to 2020, industry revenue is expected to increase at approximately 1.6% to $6 billion Shipments reached a 7 year high in 2014 and a 6.5% year-over-year increase is projected for 2015 16,000 RV parks in the U.S. for 9 million RV’s
Slide 14: Sun RV Portfolio Performance
SUN RV PORTFOLIO PERFORMANCE Strong RV Portfolio Performance **Based on 2015 guidance. Percentage of revenues from RV resorts increased from 10% in 2011 to an estimated 18% in 2015 NOI and Income Growth – 2013 Morgan acquisition (10 properties) 14
Slide 15: Sun's Transformation
SUN’S TRANSFORMATION 15 All‐Age, 75% Age‐Restricted, 25% Geographic GROWTH – GEOGRAPHIC DIVERSIFICATION – STRENGTHEN RV POSITION – ENHANCED PORTFOLIO QUALITY June 2011 June 2015 Demographic Site Mix MI FL TX IN Other (37%) (20%) (10%) (12%) (21%) FL MI TX IN AZ Other (29%) (27%) (7%) (6%) (5%) (26%)
Slide 16: Growth Through Expansion Opportunities
GROWTH THROUGH EXPANSION OPPORTUNITIES Inventory of over 7,500 zoned and entitled sites available for expansion at 42 communities Expanding in communities with strong demand evidenced by occupancy of ~95% Expansion lease-up is driven by sales, rental and relocation programs 800 sites expecte
Slide 17: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET Net Debt / Enterprise Value EBITDA / Interest 17 *Calculated based on trailing 12 months ended March 31, 2015 Net Debt / EBITDA Fixed Debt (%)
Slide 18: Experienced and Proven Leadership Team
EXPERIENCED AND PROVEN LEADERSHIP TEAM Key executives have a combined 80 years experience in the industry and over 65 years at the company. Senior Management team has combined experience of over 70 years at the company Gary A. Shiffman - Chairman and Chief Executive Officer Karen J. Dearing – Execut
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Slide 20: Performance vs. Indices
PERFORMANCE VS. INDICES 20 Sun has outperformed all major REIT sector indices and many major market indices over the last five years. 368% 259% 212% 209% 209% 197% 197% 0% 50% 100% 150% 200% 250% 300% 350% 400% SUI SNL US REIT Manufactured Homes S&P Small-Cap SNL US REIT Equity MSCI US REIT (RMS) Ru