Sun Communities, Inc. · NYSE:SUI
Sun Communities — Investor Presentation (September 2019)
20 slides from Sun Communities's investor presentation, Sep 3, 2019
Slide 1: Investor Presentation September 2019
REUNION LAKE – PONCHATOULA, LA ACQUIRED IN JULY 2019 INVESTOR PRESENTATION SEPTEMBER 2019
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” or “Sun”) and from third- party sources indicated herein. Such third-party information has not been independently verified. The Company mak
Slide 3: Sun Communities, Inc. (NYSE: SUI) Overview
SUN COMMUNITIES, INC. (NYSE: SUI) OVERVIEW Current Portfolio as of June 30, 2019 4,972 382 communities 226 1,916 consisting of over 1,078 475 588 2,137 724 28,475 671 133,000 sites across 149 413 1,521 324 2,920 2,916 31 states and Ontario, 2,150 562 3,608 1,207 Wine Country RV Resort – Paso Robles,
Slide 4: Powering Sun's Growth Engine
POWERING SUN’S GROWTH ENGINE . Sun is the premier 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 INTERNAL EXTERNAL Contractual Rent Increases MH Oc
Slide 5: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS Financial Performance Quarter Ended June 30, YTD Ended June 30, 2019 2018 % Change 2019 2018 % Change Total Revenue $312.4mm $271.4mm 15.1% $599.8mm $529.4mm 13.3% Total NOI $171.4mm $148.0mm 15.8% $335.8mm $297.1mm 13.1% Same Community Revenue $196.3mm $184.5mm 6.
Slide 6: 2019 YTD Acquisitions & Development Activity
2019 YTD ACQUISITIONS & DEVELOPMENT ACTIVITY Investment Activity Summary Acquisitions Ground-up Developments Expansions 2 $393mm purchase price $79mm YTD spend $52mm YTD spend 1st phases delivered for Sites delivered at 7 11 communities 3 RV resorts communities YTD ~4,100 sites ~600 sites ~200 sites
Slide 7: Sun's Favorable Revenue Drivers
SUN’S FAVORABLE REVENUE DRIVERS . Yearly home move-outs in Sun’s MH communities are less than 1% . Tenure of residents in Sun’s MH communities is approximately 141 years MH Resident Move-out Trends1 6.5% 0.8% Resident Re-sales Resident Move-outs (Home stays in community) (Home leaves community) LAKE
Slide 8: Consistent and Cycle Tested Internal Growth
CONSISTENT AND CYCLE TESTED INTERNAL GROWTH . Sun’s average same community NOI growth has exceeded REIT industry average by ~190 bps and the apartment sector’s average by ~185 bps since 1998 . Since 1998, every individual year or rolling 4-quarter period has had positive same community NOI growth Sa
Slide 9: Manufactured Housing vs. Other Rental Options
MANUFACTURED HOUSING VS. OTHER RENTAL OPTIONS . Sun’s manufactured homes provide nearly 25% more space at nearly 50% less cost per square foot Sun’s Manufactured Other Rental Homes1 VS. Options2 PRICE $0.78 per sq. ft. $1.48 per sq. ft. SQUARE FOOTAGE 1,250 sq. ft. 1,000 sq. ft. RENT $975 per mo
Slide 10: Manufactured Housing vs. Single Family
MANUFACTURED HOUSING VS. SINGLE FAMILY . Sun’s communities offer affordable options in attractive locations Manufactured Homes Single Family Homes Average cost of a new Manufactured Home is Average cost of Single Family is $293,727 or $71,900 or roughly 2 years median income roughly 7 years medi
Slide 11: 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 ~200 12 – 24 months expansion sites delivered YTD average lease-up for 100-site expansion ~$52 mil
Slide 12: 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 Year-end Communities and Sites . Since 2011, Sun has acqui
Slide 13: Strategic Balance Sheet
STRATEGIC BALANCE SHEET . Balance sheet supports growth strategy . Sun’s annual mortgage maturities in the years 2019 - 2023 average 5.0% of total mortgage debt outstanding Mortgage Debt Outstanding Mortgage Debt 5-Year Maturity Ladder principal amounts in thousands amounts in thousands CMBS Fannie
Slide 14: Strategy-Driven Outperformance
STRATEGY-DRIVEN OUTPERFORMANCE . Sun has significantly outperformed major REIT and broader market indices over the last ten years YTD Total Return 3-year Total Return 35.0% 90.0% 32.7% 30.0% 80.0% 83.5% 70.0% 25.0% 20.7% 60.0% 20.0% 18.4% 50.0% 48.6% 15.0% 40.0% 10.0% 30.0% 20.0% 5.0% 12.8% 10.0% 0.
Slide 15: Consistent NOI Growth
CONSISTENT NOI GROWTH . Manufactured housing is one of the most recession-resistant sectors in real estate and has consistently outperformed multifamily and most sectors in same community NOI growth since 2000 NOI Growth Sun Communities $242 Sun Communities $240 Manufactured Housing Multifamily $233
Slide 16: Appendix
APPENDIX OCEAN BREEZE RESORT – JENSEN BEACH, FL
Slide 17: 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 18: Net Income to FFO Reconciliation
NET INCOME TO FFO RECONCILIATION (amounts in thousands except per share data) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2019 2018 2019 2018 2018 2017 2016 Net income attributable to Sun Communities, Inc. common stockholders $ 40,385 $ 20,408 $ 74,716 $ 50,394 $ 10
Slide 19: Net Income to NOI Reconciliation
NET INCOME TO NOI RECONCILIATION (amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2019 2018 2019 2018 2018 2017 2016 Net income attributable to Sun Communities, Inc., common stockholders $ 40,385 $ 20,408 $ 74,716 $ 50,394 $ 105,493 $ 65,021 $ 17,3
Slide 20: Net Income to Recurring EBITDA Reconciliation
NET INCOME TO RECURRING EBITDA RECONCILIATION (amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2019 2018 2019 2018 2018 2017 2016 Net income attributable to Sun Communities, Inc., common stockholders $ 40,385 $ 20,408 $ 74,716 $ 50,394 $ 105,493 $
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