Slide 1: Investor Presentation June 6, 2022
INVESTOR PRESENTATION JUNE 6, 2022 SHADOW WOOD VILLAGE – HUDSON, FL
Slide 2: Forward-looking statements disclaimer
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-party information has not been independently verified. Sun
Slide 3: Company Highlights
Leading owner and operator of manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas Favorable demand drivers combined with limited to no new supply Consistent organic growth through rental increases enhanced with embedded expansion opportunities Industry consolidat
Slide 4: Sun Communities, Inc. Overview
283 161 31 41 130 MH Communities RV Resorts Hybrid MH & RV UK Holiday Parks Marinas 646 properties across 39 states, Canada and the UK SUN COMMUNITIES, INC. OVERVIEW (NYSE: SUI) 4 Current Portfolio As of June 6, 2022 Rental Revenue Breakdown Property Count As of June 6, 2022 Source: Company informat
Slide 5: YTD Summary Performance Update
YTD SUMMARY PERFORMANCE UPDATE 5 PORTFOLIO PERFORMANCE UPDATE EXTERNAL GROWTH • Memorial Day transient RV revenue for Same Property Portfolio increased 12.5% compared to 2021 • Same Property forward bookings 4% ahead of last year for 2Q22 and 10% ahead for 2H22 • 1,024 conversions of transient sites
Slide 6: 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 CapEx light business model enables strong cash flow conversion which can self-fund growth POWERING SUN’S INTERNAL GROWTH ENG
Slide 7: We Are the Premier Marina Operator
WE ARE THE PREMIER MARINA OPERATOR 7 Unrivaled Among Competitors 128 Owned Marinas 37,000 Approximate Wet Slips 24 States & Puerto Rico 80% Marinas Located in Coastal Markets(3) 45,700 Approximate Members 7.6 Years Average Member Tenure 75% Marinas Owned Fee Simple(4) (1) 8,700 Approximate Dry Stora
Slide 8: Powering Sun's External Growth Engine
EXTERNAL LEVERS Development POWERING SUN’S EXTERNAL GROWTH ENGINE 8 Acquisitions Over $11.1bn invested in properties YTD since the start of 2010 Targeting 3 – 5 new development project starts per year Over 1,000 2021 – 2022 YTD ground-up site deliveries in 9 properties SUN OUTDOORS ROCKY MOUNTAIN –
Slide 9: 2022 Acquisition & Development Activity
2022 ACQUISITION & DEVELOPMENT ACTIVITY 9 ~$1.6bn purchase price Acquisitions YTD Ground-up & Redevelopments Expansions ~17,900 sites added in 47 properties & marinas Robust pipeline of small portfolios and single assets in underwriting $153mm invested Starting 5 new MH developments in 2022 ~3,100 s
Slide 10: Sticky Customer Base with Limited CapEx
RV Guest Trends (% of Total Residents, 3-Year Average) STICKY CUSTOMER BASE WITH LIMITED CAPEX 10 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 Uninterrupted rental income stream: average tenure of
Slide 11: Transient RV to Annual Lease Conversions Increase First Year Revenue
TRANSIENT RV TO ANNUAL LEASE CONVERSIONS INCREASE FIRST YEAR REVENUE BY 40% - 60% 11 Transient Site Site revenue limited mainly to peak season months during the winter for this resort 31.7% Occupancy $53 Avg. Daily Rate $513 Monthly Rent $6,158 Annual Rent Annual Site Conversion 100% Occupancy $26
Slide 12: Consistent and Cycle Tested Cash Flow Growth
Multi-Family REITsSun Communities CONSISTENT AND CYCLE TESTED CASH FLOW GROWTH 12 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
Slide 13: Expansions Provide Attractive Returns
13 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 Over 6,500 vacant expansion site deliveries since 2015 12 - 24 months average lease-up for 100-
Slide 14: Maximizing Value from Strategic Acquisitions
Professional Operational Management Home Sales & Rental Program Skilled Expense Management Call Center & Digital Marketing Outreach Repositioning with Additional CapEx Adding Value with Expansions MAXIMIZING VALUE FROM STRATEGIC ACQUISITIONS 14 Properties and Sites • Since 2010, Sun has acquired pro
Slide 15: Acquisition of Park Holidays UK
ACQUISITION 15 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. Refer to information regarding non-GAAP financial measures in the at
Slide 16: Strategic Balance Sheet
Balance sheet supports growth strategy Total debt maturities over the next 5 years averages 6.8% per year 80% of our outstanding debt on a proforma basis is based on a fixed interest rate Investment Grade ratings of BBB (S&P) and Baa3 (Moody’s) Net Debt / TTM EBITDA(3) 25.2% 19.0% 21.4% 18.0
Slide 17: Sun's Internal and External Operational Growth
SUN’S INTERNAL AND EXTERNAL OPERATIONAL GROWTH Total New and Pre-Owned Homes Sales Ground-Up and Expansion Site Deliveries MH Weighted Average Rental Rate Growth RV Weighted Average Rental Rate Growth Acquisition Volume Same Property NOI Growth 17 Source: Company information. Refer to Sun Communitie
Slide 18: Healthy Balance Sheet and High Returns
HEALTHY BALANCE SHEET AND HIGH RETURNS Net Debt to TTM EBITDA(2)Core FFO Per Share 18 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional informatio
Slide 19: Social Media Update
SOCIAL MEDIA UPDATE 19 420K 310K 310K 249K 220K 180K 175K 138K 124K 111K 74K 70K 27K 1K 1K 85K 31K 1K 1K Sun Outdoors Thousand Trails KOA Under Canvas 4Q21 1Q22 ~15k increase Sun continues to lead the outdoor vacation industry on all social media channels Our Instagram following is now at 420,00
Slide 20: Sun Productions – Creating Original Content
SUN PRODUCTIONS – CREATING ORIGINAL CONTENT 20 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. Refer to information regarding non-G
Slide 21: Sun Communities Virtual Home Tours
SUN COMMUNITIES VIRTUAL HOME TOURS 21 Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. Refer to information regarding non-GAAP finan
Slide 22: Sun Communities' ESG Initiatives
Environmental SUN COMMUNITIES’ ESG INITIATIVES 22 ESG Highlights(1) 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 progr
Slide 23: Strategy-Driven Outperformance
(100.0%) 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0% 433.8% 260.7% 120.6% (20.0%) (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% (12.8)% (14.0)% (21.5)% STRATEGY-DRIVEN OUTPERFORMANCE 23 Sun has significantly outperformed major REIT and broader market indices over the last ten years Sun Communit
Slide 24: Appendix
APPENDIX SARALAKE ESTATES – SARASOTA, FL
Slide 25: Non-GAAP Terms Defined
NON-GAAP TERMS DEFINED 25 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,
Slide 26: Net Income to FFO Reconciliation
NET INCOME TO FFO RECONCILIATION 26 (amounts in millions except per share data) Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. 202
Slide 27: Net Income to NOI Reconciliation
NET INCOME TO NOI RECONCILIATION 27 (amounts in millions) Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. 2022 2021 2021 2020 2019
Slide 28: Net Income to Recurring EBITDA Reconciliation
NET INCOME TO RECURRING EBITDA RECONCILIATION 2 (amounts in millions) Source: Company information. Refer to Sun Communities, Inc. Form 10-Q and Supplemental for the quarter ended March 31, 2022, as well as Press Releases and SEC Filings after March 31, 2022, for additional information. 2022 2021 202