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Table of Contents                    
    

            
Summary - Earnings Press Release
Investor Information
Portfolio Overview
Financial Information
Financial and Operating Highlights
Consolidated Balance Sheets
Statements of Operations
Outstanding Securities and Capitalization
Reconciliations to Non-GAAP Financial Measures
Reconciliation of Net Income to Funds from Operations
Reconciliation of Net Income to Recurring EBITDA
Reconciliation of Net Income to Net Operating Income
Non-GAAP and Other Financial Measures
Debt Analysis
Selected Financial Information
Real Property Operations – Same Community
Home Sales Summary
Rental Program Summary
Acquisitions and Other Summary
Other Information
Property Summary
Capital Improvements, Development, and Acquisitions
Operating Statistics for Manufactured Homes and Annual RV’s
Footnotes and Definitions



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NEWS RELEASE
February 17, 2021

Sun Communities, Inc. Reports 2020 Fourth Quarter Results and 2021 Guidance

Southfield, Michigan, February 17, 2021 – Sun Communities, Inc. (NYSE: SUI) (the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas, (collectively, the “properties”), today reported its fourth quarter results for 2020.

Financial Results for the Quarter and Year Ended December 31, 2020

For the quarter ended December 31, 2020, total revenues increased $82.4 million, or 27.3 percent, to approximately $384.3 million compared to $301.8 million for the same period in 2019. Net income attributable to common stockholders was approximately $7.6 million, or $0.07 per diluted common share, for the quarter ended December 31, 2020.

For the year ended December 31, 2020, total revenues increased $134.3 million, or 10.6 percent, to approximately $1.4 billion compared to $1.3 billion for the same period in 2019. Net income attributable to common stockholders was $131.6 million, or $1.34 per diluted common share, for the year ended December 31, 2020.

Non-GAAP Financial Measures and Portfolio Performance

Core Funds from Operations (“Core FFO”)(1) for the quarter ended December 31, 2020, was $1.16 per diluted share and OP unit (“Share”) as compared to $1.10 in the corresponding period in 2019, a 5.5 percent increase. Core FFO(1) for the year ended December 31, 2020, was $5.09 per Share as compared to $4.92 in the prior year, an increase of 3.5 percent.

Same Community(2) Net Operating Income (“NOI”)(1) increased by 2.1 percent and 4.0 percent for the quarter and year ended December 31, 2020, respectively, as compared to the corresponding periods in 2019.

Acquired approximately $3.0 billion of operating properties including the $2.1 billion acquisition of Safe Harbor Marinas in 2020.

MH and Annual RV Revenue Producing Sites increased by 578 sites in the fourth quarter and 2,505 sites during the year ended December 31, 2020, bringing total portfolio occupancy to 97.3 percent.

MH and Annual RV Rent Collections for the fourth quarter were over 96.0 percent and 97.0 percent, respectively.

i


Gary Shiffman, Chief Executive Officer stated, “As we reflect on the events of 2020, we are pleased with our performance and the demonstrated resilience and stability of our business and operating platform, particularly in light of the challenging environment. We generated 4.0 percent same community NOI growth, delivered 3.5 percent year over year Core FFO(1) per Share growth, deployed $3.0 billion into accretive acquisitions and raised approximately $1.9 billion in two equity offerings with strong investor demand. We are well positioned to continue delivering industry leading growth and have a new business line that broadens our opportunity set with the addition of Safe Harbor Marinas.”

Mr. Shiffman continued, “The dedication and perseverance of our team to create value for our shareholders continues to be a key factor in our success.”

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.3 percent at December 31, 2020, compared to 96.4 percent at December 31, 2019, an increase of 90 basis points.

During the quarter ended December 31, 2020, MH and annual RV revenue producing sites increased by 578 sites, bringing full year 2020 revenue producing site gains to 2,505 sites.

Same Community(2) Results

For the 367 MH and RV properties owned and operated by the Company since January 1, 2019, NOI(1) for the quarter ended December 31, 2020 increased 2.1 percent over the same period in 2019, resulting from a 5.7 percent increase in revenues and a 13.6 percent increase in expenses. Adjusted to remove the impact of $0.3 million of direct COVID-19 related health and safety expense, Same Community NOI(1) growth was 2.4 percent for the quarter ended December 31, 2020. Payroll, utilities and supplies and repair costs were elevated during the quarter primarily due to the extended season of the Company’s northern RV resorts. Same Community occupancy(3) increased to 98.8 percent at December 31, 2020 from 97.0 percent at December 31, 2019.

For the year ended December 31, 2020, NOI(1) increased 4.0 percent over the same period in 2019, resulting from a 3.6 percent increase in revenues and a 3.0 percent increase in expenses. Adjusted to remove the impact of $2.4 million of direct COVID-19 related health and safety expense, Same Community NOI(1) growth was 4.4 percent for the year ended December 31, 2020.

Home Sales

During the quarter ended December 31, 2020, the Company sold 782 homes as compared to 808 homes in the same period in 2019. The Company sold 156 and 140 new homes for the quarters ended December 31, 2020 and 2019, respectively, an increase of 11.4 percent. Pre-owned home sales were 626 in the fourth quarter 2020 as compared to 668 in the same period in 2019. Rental home sales, which are included in total pre-owned home sales, were 269 and 281 for the quarters ended December 31, 2020 and 2019, respectively.

ii

                                        


During the year ended December 31, 2020, the Company sold 2,866 homes as compared to 3,439 homes sold during 2019. The Company sold 570 and 571 new homes during the years ended December 31, 2020 and 2019, respectively. Pre-owned home sales were 2,296 during the year ended December 31, 2020, as compared to 2,868 during 2019. Rental home sales, which are included in total pre-owned home sales, were 850 and 1,140 for the years ended December 31, 2020 and 2019, respectively.

Rent Collections

For the fourth quarter of 2020, MH and annual RV rent collections were over 96.0 percent and 97.0 percent, respectively, after adjusting for the impact of COVID-19 related hardship deferrals and prepaid rent balances.

January 2021 rent collections were 97.0 percent for MH and 97.0 percent for annual RV.

PORTFOLIO ACTIVITY

Acquisitions

During and subsequent to the quarter ended December 31, 2020, the Company acquired the following communities and resorts:

Property NameProperty TypeSitesStateTotal Purchase Price (in millions)Month Acquired
Gig HarborRV115 WA$15.3 November
Maine MH Portfolio(a)
MH1,083 ME$81.3 November
Mouse MountainMH / RV304 FL$15.5 December
Lakeview Mobile EstatesMH296 CA$23.8 December
Shenandoah AcresRV522 VA$17.0 December
Jellystone at Barton LakeRV555 IN$24.0 December
Kittatinny Portfolio(b)
RV527 NY & PA$16.3 December
Association Island KOA
RV294 NY$15.0 January
Blue Water RV177 UT$9.0 February
Tranquility MHCMH25 FL$1.3 February
3,898 $218.5 
(a) Includes six MH communities.
(b) Includes two RV resorts.


iii


During and subsequent to the quarter ended December 31, 2020, the Company acquired the following marinas:

Property Name
Wet Slips & Dry Storage Spaces
StateTotal Purchase Price (in millions)Month Acquired
Safe Harbor Marinas(a)
37,305 Various$2,016.4 October
Hideaway Bay(b)
628 GA$32.9 November
Anacapa Isle(b)
453 CA$13.9 December
Annapolis184 MD$31.0 December
Wickford60 RI$3.5 December
Rybovich Portfolio(c)
78 FL$368.8 December
Rockland173 ME$16.0 December
Islamorada and Angler House(d)
251 FL$18.0 February
39,132 $2,500.5 
(a) Includes 99 owned marinas located in 22 states. In conjunction with the acquisition, the Company issued Series H preferred OP units. As of December 31, 2020, 581,407 Series H preferred OP units were outstanding.
(b) Acquired in connection with Safe Harbor Marinas acquisition. Transfer of the marinas was contingent on receiving third party consents.
(c) Includes two marinas. In conjunction with the acquisition, the Company issued Series I preferred OP units. As of December 31, 2020, 922,000 Series I preferred OP units were outstanding.
(d) Includes two marinas.

During the year ended December 31, 2020, the Company acquired 24 MH communities and RV resorts with 6,919 sites and 106 marinas with over 38,800 wet slips and dry rack storage spaces for a total purchase price of approximately $3.0 billion.

Construction Activity

During the quarter ended December 31, 2020, the Company completed the construction of nearly 50 sites in two ground-up developments and one redevelopment property, and over 120 expansion sites in one RV resort and one MH community. Full-year ground-up and redevelopment site deliveries were over 1,000 sites in five properties and over 300 total expansion sites in eight properties.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt Transactions

As of December 31, 2020, the Company had approximately $4.8 billion of debt outstanding. The weighted average interest rate was 3.4 percent and the weighted average maturity was 9.4 years. The Company had $83.0 million of unrestricted cash on hand. At December 31, 2020, the Company’s net debt to trailing twelve-month Recurring EBITDA(1) ratio was 6.9 times, which includes all of Safe Harbor’s debt, but only two months of its EBITDA contribution.

During the quarter ended December 31, 2020, as previously disclosed, the Company entered into a new $260.0 million term loan secured by 11 MH and RV properties. The loan has a 12-year maturity and a fixed interest rate of 2.64 percent.


iv


Equity Transactions

During the quarter ended December 31, 2020, as previously disclosed, the Company closed an underwritten registered public offering of 9,200,000 shares of common stock. Proceeds from the offering were $1.2 billion after deducting expenses related to the offering. The Company used the net proceeds of the offering to fund the cash portion of the acquisition of Safe Harbor and for working capital and general corporate purposes.

2021 Distributions

The Company’s Board of Directors has approved setting the 2021 annual distribution rate at $3.32 per common share, an increase of $0.16, or 5.1 percent, over the current $3.16 per common share for 2020. This increase will begin with the first quarter distribution to be paid in April 2021. While the Board of Directors has adopted the new annual distribution policy, the amount of each quarterly distribution on the Company's common stock will be subject to approval by the Board of Directors.

New Director

On February 11, 2020 the Board of Directors increased the size of the board from seven to eight directors and appointed Tonya Allen to the Company’s Board of Directors as an independent director. Ms. Allen brings an expert perspective on sustainability and social issues, an important focus for the Company.

v


2021 GUIDANCE

The estimates and assumptions presented below represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions through the date of this release and exclude prospective acquisitions and capital markets activity. The estimates and assumptions are forward-looking based on the Company’s current assessment of economic and market conditions, as well as other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

Notes to 2021 guidance:
Includes contributions from recently completed acquisitions
$218.5 million of MH community and RV resort acquisitions in the fourth quarter 2020 and subsequent to year end
$437.3 million of marina acquisitions subsequent to the closing of the Safe Harbor transaction on October 30, 2020
Includes a lower transient RV revenue estimate of $8.0 - $10.0 million in the first quarter 2021 due to the extension of the Canadian border closure order and the California travel restrictions imposed through early February, 2021

Earnings and Core FFO(1)
Net Income
Weighted average common shares outstanding (in millions)106.9
First quarter 2021, basic earnings per share$0.08 - $0.12
Full year 2021, basic earnings per share$1.66 - $1.82

Core FFO(1)
Weighted average common shares outstanding, fully diluted (in millions)(i)
112.7
First quarter 2021, Core FFO(1) per Share
$1.13 - $1.17
Full year 2021, Core FFO(1) per Share
$5.79 - $5.95
(i) Certain securities that are dilutive to the computation of Core FFO(1) per fully diluted share in the table above have been excluded from the computation of net income per fully diluted share, as inclusion of these securities would have been anti-dilutive to net income per fully diluted share.

1Q212Q213Q214Q21
Seasonality of Core FFO(1)
19.6 %26.2 %32.8 %21.4 %



vi


Total MH and RV Portfolio

Number of properties: 446
2020 Actual
(in millions)
2021E
Change %
Income from real property$1,002.4 10.9% - 11.4%
Total property operating expenses367.3 13.7% - 14.4%
Net operating income$635.1 8.8% - 10.1%

1Q212Q213Q214Q21
Seasonality of total MH and RV portfolio NOI22.6 %25.0 %28.6 %23.8 %

2021E
MH weighted average monthly rental rate increase3.2 %
RV weighted average monthly rental rate increase4.3 %
Blended weighted average monthly rental rate increase3.4 %
Increase in revenue producing sites2,150 - 2,350
New home sales volume550 - 650
Pre-owned home sales volume2,400 - 2,600
Newly built ground-up and expansion sites1,200 - 1,600


General and Administrative Expenses
2021E
General and administrative expenses$163.7 - $167.3

General and administrative expenses include the impact of the Company’s entry into the marina asset class. The marina portfolio is operated as an independent wholly-owned subsidiary retaining its own senior management, property management and back office operations. As significant growth potential through the consolidation of the highly fragmented marina industry is anticipated, costs associated with scaling to effectively operate a larger portfolio are required. As a general practice, marina acquisitions are underwritten with an expected incremental general and administrative cost of 3.0 percent of revenues.

Same Community(2) Portfolio

Number of MH and RV properties: 407

Same community NOI(1) growth is expected to be between 5.6 percent and 6.6 percent for full year 2021.

Marinas

NOI(1) inclusive of the contribution from service and ancillary operations is expected to be $163.0 million - $169.0 million.

1Q212Q213Q214Q21
Seasonality of marina NOI(1)
18.0%29.0%28.6%24.4%
vii


EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter operating results will be held on Thursday, February 18, 2021 at 11:00 A.M. (ET). To participate, call toll-free 877-407-9039. Callers outside the U.S. or Canada can access the call at 201-689-8470. A replay will be available following the call through March 4, 2021 and can be accessed toll-free by calling 844-512-2921 or 412-317-6671. The Conference ID number for the call and the replay is 13713712. The conference call will be available live on Sun Communities’ website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of December 31, 2020, owned, operated, or had an interest in a portfolio of 552 developed MH, RV and marina properties comprising over 188,000 developed sites in 39 states and Ontario, Canada.

For more information about Sun Communities, Inc., please visit www.suncommunities.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as “forecasts,” “intends,” “intend,” “intended,” “goal,” “estimate,” “estimates,” “expects,” “expect,” “expected,” “project,” “projected,” “projections,” “plans,” “predicts,” “potential,” “seeks,” “anticipates,” “anticipated,” “should,” “could,” “may,” “will,” “designed to,” “foreseeable future,” “believe,” “believes,” “scheduled,” “guidance”, “target” and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the Company’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and September 30, 2020, and the Company’s other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

outbreaks of disease, including the COVID-19 pandemic, and related stay at home orders, quarantine policies and restrictions on travel, trade and business operations;
changes in general economic conditions, the real estate industry and the markets in which the Company operates;
difficulties in the Company’s ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
the Company’s liquidity and refinancing demands;
the Company’s ability to obtain or refinance maturing debt;
the Company’s ability to maintain compliance with covenants contained in its debt facilities;
availability of capital;
viii


changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;
the Company’s ability to maintain rental rates and occupancy levels;
the Company’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
increases in interest rates and operating costs, including insurance premiums and real property taxes;
risks related to natural disasters such as hurricanes, earthquakes, floods, and wildfires;
general volatility of the capital markets and the market price of shares of the Company’s capital stock;
the Company’s ability to maintain its status as a REIT;
changes in real estate and zoning laws and regulations;
legislative or regulatory changes, including changes to laws governing the taxation of REITs;
litigation, judgments or settlements;
competitive market forces;
the ability of purchasers of manufactured homes and boats to obtain financing; and
the level of repossessions by manufactured home and boat lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statement.
ix


Investor Information                        
RESEARCH COVERAGE
Firm Analyst Phone Email
Bank of America Merrill LynchJoshua Dennerlein(646) 855-1681joshua.dennerlein@baml.com
Berenberg Capital MarketsKeegan Carl(646) 949-9052keegan.carl@berenberg-us.com
BMO Capital MarketsJohn Kim(212) 885-4115johnp.kim@bmo.com
Citi ResearchMichael Bilerman(212) 816-1383michael.bilerman@citi.com
Nicholas Joseph(212) 816-1909nicholas.joseph@citi.com
Evercore ISISteve Sakwa(212) 446-9462steve.sakwa@evercoreisi.com
Samir Khanal(212) 888-3796samir.khanal@evercoreisi.com
Green Street AdvisorsJohn Pawlowski(949) 640-8780jpawlowski@greenstreetadvisors.com
Robert W. Baird & Co.
Wesley Golladay
(216) 737-7510
wgolladay@rwbaird.com
Wells FargoTodd Stender(562) 637-1371todd.stender@wellsfargo.com
INQUIRIES
Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department.
At Our Websitewww.suncommunities.com
By Emailinvestorrelations@suncommunities.com
By Phone(248) 208-2500
4th Quarter 2020 Supplemental Information     1          Sun Communities, Inc.


Portfolio Overview                            
(As of December 31, 2020)

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4th Quarter 2020 Supplemental Information     2          Sun Communities, Inc.


Financial and Operating Highlights                                        
(amounts in thousands, except for *)
Quarter Ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Financial Information
Total revenues$384,265 $400,514 $303,266 $310,302 $301,819 
Net income / (loss)$9,818 $89,756 $63,355 $(15,478)$30,685 
Net income / (loss) attributable to Sun Communities Inc. common stockholders$7,586 $81,204 $58,910 $(16,086)$28,547 
Basic earnings / (loss) per share*$0.07 $0.83 $0.61 $(0.17)$0.31 
Diluted earnings / (loss) per share*$0.07 $0.83 $0.61 $(0.17)$0.31 
Cash distributions declared per common share*$0.79 $0.79 $0.79 $0.79 $0.75 
Recurring EBITDA(1)
$168,527 $199,321 $148,650 $156,552 $144,738 
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)
$110,849 $165,209 $118,092 $95,046 $105,533 
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)
$124,872 $162,624 $110,325 $117,267 $104,534 
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*
$1.03 $1.63 $1.20 $0.98 $1.11 
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share - fully diluted*
$1.16 $1.60 $1.12 $1.22 $1.10 
Balance Sheet
Total assets$11,206,586 $8,335,717 $8,348,659 $8,209,047 $7,802,060 
Total debt$4,757,076 $3,340,613 $3,390,771 $3,926,494 $3,434,402 
Total liabilities$5,314,879 $3,791,922 $3,845,308 $4,346,127 $3,848,104 
Quarter Ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Operating Information*
Properties552 432 426 424 422 
Manufactured home sites96,688 95,209 94,232 93,834 93,821 
Annual RV sites27,564 26,817 26,240 26,148 26,056 
Transient RV sites25,043 23,728 22,360 21,880 21,416 
Total sites149,295 145,754 142,832 141,862 141,293 
Wet slips and dry storage spaces38,881 N/AN/AN/AN/A
MH occupancy96.6 %96.4 %96.5 %95.8 %95.5 %
RV annual occupancy100.0 %100.0 %100.0 %100.0 %100.0 %
Total blended MH and annual RV occupancy97.3 %97.2 %97.3 %96.7 %96.4 %
New home sales156 155 140 119 140 
Pre-owned home sales626 555 471 644 668 
Total home sales782 710 611 763 808 
Quarter Ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Net Leased Sites(5)
MH net leased sites247 349 759 287 437 
RV net leased sites331 427 92 13 232 
Total net leased sites578 776 851 300 669 
4th Quarter 2020 Supplemental Information     3          Sun Communities, Inc.


Consolidated Balance Sheets
(amounts in thousands)
December 31, 2020December 31, 2019
Assets
Land$2,119,364 $1,414,279 
Land improvements and buildings8,480,597 6,595,272 
Rental homes and improvements637,603 627,175 
Furniture, fixtures and equipment447,039 282,874 
Investment property11,684,603 8,919,600 
Accumulated depreciation(1,968,812)(1,686,980)
Investment property, net9,715,791 7,232,620 
Cash, cash equivalents and restricted cash98,294 34,830 
Marketable securities124,726 94,727 
Inventory of manufactured homes46,643 62,061 
Notes and other receivables, net221,650 157,926 
Goodwill428,833 — 
Other intangible assets, net305,611 66,948 
Other assets, net265,038 152,948 
Total Assets$11,206,586 $7,802,060 
Liabilities
Mortgage loans payable$3,444,967 $3,180,592 
Preferred Equity - Sun NG Resorts - mandatorily redeemable35,249 35,249 
Preferred OP units - mandatorily redeemable34,663 34,663 
Lines of credit and other debt(6)
1,242,197 183,898 
Distributions payable86,988 71,704 
Advanced reservation deposits and rent187,730 133,420 
Accrued expenses and accounts payable148,435 127,289 
Other liabilities134,650 81,289 
Total Liabilities5,314,879 3,848,104 
Commitments and contingencies
Series D preferred OP units49,600 50,913 
Series F preferred OP units8,871 — 
Series G preferred OP units25,074 — 
Series H preferred OP units57,833 — 
Series I preferred OP units94,532 — 
Other redeemable noncontrolling interests
28,469 27,091 
Stockholders' Equity
Common stock1,076 932 
Additional paid-in capital7,087,658 5,213,264 
Accumulated other comprehensive loss3,178 (1,331)
Distributions in excess of accumulated earnings(1,566,636)(1,393,141)
Total Sun Communities, Inc. stockholders' equity5,525,276 3,819,724 
Noncontrolling interests
Common and preferred OP units85,968 47,686 
Consolidated variable interest entities16,084 8,542 
Total noncontrolling interests102,052 56,228 
Total Stockholders' Equity5,627,328 3,875,952 
Total Liabilities, Temporary Equity and Stockholders' Equity$11,206,586 $7,802,060 
4th Quarter 2020 Supplemental Information     4          Sun Communities, Inc.


Statements of Operations - Quarter to Date and Year to Date Comparison
(In thousands, except per share amounts) (Unaudited)
Three Months EndedYear Ended
December 31, 2020December 31, 2019Change% ChangeDecember 31, 2020December 31, 2019Change% Change
Revenues
Income from real property (excluding transient revenue) $249,065 $205,131 $43,934 21.4 %$895,945 $793,403 $102,542 12.9 %
Transient revenue27,929 19,886 8,043 40.4 %134,691 121,504 13,187 10.9 %
Revenue from home sales48,920 45,271 3,649 8.1 %175,699 181,936 (6,237)(3.4)%
Rental home revenue16,035 14,745 1,290 8.7 %62,646 57,572 5,074 8.8 %
Ancillary revenue35,644 10,481 25,163 240.1 %102,017 77,638 24,379 31.4 %
Interest income2,510 3,368 (858)(25.5)%10,119 17,857 (7,738)(43.3)%
Brokerage commissions and other revenues, net4,162 2,937 1,225 41.7 %17,230 14,127 3,103 22.0 %
Total Revenues384,265 301,819 82,446 27.3 %1,398,347 1,264,037 134,310 10.6 %
Expenses
Property operating and maintenance88,889 63,486 25,403 40.0 %308,797 266,378 42,419 15.9 %
Real estate taxes20,265 15,425 4,840 31.4 %72,606 61,880 10,726 17.3 %
Cost of home sales36,434 34,327 2,107 6.1 %131,884 134,357 (2,473)(1.8)%
Rental home operating and maintenance6,058 5,542 516 9.3 %22,186 21,995 191 0.9 %
Ancillary expenses27,671 9,099 18,572 204.1 %63,402 47,432 15,970 33.7 %
Home selling expenses4,626 3,768 858 22.8 %15,134 14,690 444 3.0 %
General and administrative expenses31,795 25,434 6,361 25.0 %111,288 93,964 17,324 18.4 %
Catastrophic weather-related charges, net831 435 396 91.0 %885 1,737 (852)(49.1)%
Business combination expense23,008 — 23,008 N/A23,008 — 23,008 N/A
Depreciation and amortization117,423 98,826 18,597 18.8 %376,876 328,067 48,809 14.9 %
Loss on extinguishment of debt— 3,027 (3,027)N/A5,209 16,505 (11,296)(68.4)%
Interest expense35,013 33,259 1,754 5.3 %129,071 133,153 (4,082)(3.1)%
Interest on mandatorily redeemable preferred OP units / equity1,047 1,207 (160)(13.3)%4,177 4,698 (521)(11.1)%
Total Expenses393,060 293,835 99,225 33.8 %1,264,523 1,124,856 139,667 12.4 %
Income / (Loss) Before Other Items(8,795)7,984 (16,779)(210.2)%133,824 139,181 (5,357)(3.8)%
Gain on remeasurement of marketable securities8,765 17,692 (8,927)(50.5)%6,129 34,240 (28,111)(82.1)%
Gain on foreign currency translation10,480 4,522 5,958 131.8 %8,039 4,557 3,482 76.4 %
Gain on disposition of property— — — N/A5,595 — 5,595 N/A
Other income / (expense), net(7)
(390)424 (814)(192.0)%(3,768)(1,100)(2,668)242.5 %
Loss on remeasurement of notes receivable(964)— (964)N/A(3,275)— (3,275)N/A
Income / (loss) from nonconsolidated affiliates392 (6)398 N/M1,740 1,374 366 26.6 %
Loss on remeasurement of investment in nonconsolidated affiliates(103)— (103)N/A(1,608)— (1,608)N/A
Current tax expense
(328)(189)(139)73.5 %(790)(1,095)305 (27.9)%
Deferred tax benefit761 258 503 195.0 %1,565 222 1,343 605.0 %
Net Income9,818 30,685 (20,867)(68.0)%147,451 177,379 (29,928)(16.9)%
Less: Preferred return to preferred OP units / equity2,136 1,418 718 50.6 %6,935 6,058 877 14.5 %
Less: Income attributable to noncontrolling interests96 720 (624)(86.7)%8,902 9,768 (866)(8.9)%
Net Income Attributable to Sun Communities, Inc.7,586 28,547 (20,961)(73.4)%131,614 161,553 (29,939)(18.5)%
Less: Preferred stock distribution— — — N/A— 1,288 (1,288)N/A
Net Income Attributable to Sun Communities, Inc. Common Stockholders$7,586 $28,547 $(20,961)(73.4)%$131,614 $160,265 $(28,651)(17.9)%
Weighted average common shares outstanding - basic104,275 91,342 12,933 14.2 %97,521 88,460 9,061 10.2 %
Weighted average common shares outstanding - diluted104,744 91,893 12,851 14.0 %97,522 88,915 8,607 9.7 %
Basic earnings per share$0.07 $0.31 $(0.24)(77.4)%$1.34 $1.80 $(0.46)(25.6)%
Diluted earnings per share$0.07 $0.31 $(0.24)(77.4)%$1.34 $1.80 $(0.46)(25.6)%
N/M = Percentage change is not meaningful.
4th Quarter 2020 Supplemental Information     5          Sun Communities, Inc.


Outstanding Securities and Capitalization
(amounts in thousands except for *)

Outstanding Securities - As of December 31, 2020
Number of Units / Shares OutstandingConversion Rate*
If Converted(1)
Issuance Price Per Unit*Annual Distribution Rate*
Non-convertible Securities
Common shares107,626N/AN/AN/A$3.16^
Convertible Securities
Common OP units2,6071.00002,607N/AMirrors common shares distributions
Series A-1 preferred OP units2952.4390719$1006.00%
Series A-3 preferred OP units401.860575$1004.50%
Series C preferred OP units3061.1100340$1004.50%
Series D preferred OP units4890.8000391$1003.80%
Series E preferred OP units900.689762$1005.25%
Series F preferred OP units900.625056$1003.00%
Series G preferred OP units2410.6452155$1003.20%
Series H preferred OP units5810.6098355$1003.00%
Series I preferred OP units9220.6098562$1003.00%
^ Annual distribution is based on the last quarterly distribution annualized.
(1)Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

Capitalization - As of December 31, 2020
EquitySharesShare Price*Total
Common shares107,626 $151.95 $16,353,771 
Common OP units2,607 $151.95 396,134 
Subtotal110,233 $16,749,905 
Preferred OP units as converted2,715 $151.95 $412,544 
Total diluted shares outstanding112,948 17,162,449 
Debt
Mortgage loans payable$3,444,967 
Preferred Equity - Sun NG Resorts - mandatorily redeemable35,249 
Preferred OP units - mandatorily redeemable34,663 
Lines of credit and other debt(6)
1,242,197 
Total debt$4,757,076 
Total Capitalization$21,919,525 
4th Quarter 2020 Supplemental Information     6          Sun Communities, Inc.






















Reconciliations to Non-GAAP Financial Measures
















4th Quarter 2020 Supplemental Information     7          Sun Communities, Inc.


Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO(1)    
(amounts in thousands except for per share data)
Three Months EndedYear Ended
December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Net Income Attributable To Sun Communities, Inc. Common Stockholders$7,586 $28,547 $131,614 $160,265 
Adjustments
Depreciation and amortization117,354 98,950 376,897 328,646 
Depreciation on nonconsolidated affiliates 38 — 66 — 
Gain on remeasurement of marketable securities(8,765)(17,692)(6,129)(34,240)
Loss on remeasurement of investment in nonconsolidated affiliates103 — 1,608 — 
Loss on remeasurement of notes receivable964 — 3,275 — 
Income attributable to noncontrolling interests482 7,881 8,474 
Preferred return to preferred OP units494 519 2,231 2,610 
Preferred distribution to Series A-4 preferred stock— — — 1,288 
Gain on disposition of properties— — (5,595)— 
Gain on disposition of assets, net(6,929)(5,273)(22,180)(26,356)
FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4)
$110,849 $105,533 $489,668 $440,687 
Adjustments
Business combination expense23,008 — 23,008 — 
Other acquisition related costs(8)
1,035 244 2,326 1,146 
Loss on extinguishment of debt— 3,027 5,209 16,505 
Catastrophic weather-related charges, net831 398 885 1,737 
Gain on foreign currency translation(10,480)(4,522)(8,039)(4,557)
Other (income) / expense, net(7)
390 (424)3,768 1,100 
Other adjustments(a)
(761)278 (1,265)314 
Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4)
$124,872 $104,534 $515,560 $456,932 
Weighted average common shares outstanding - basic104,275 91,342 97,521 88,460 
Add
Common stock issuable upon conversion of stock options
Restricted stock468 550 455 454 
Common OP units2,496 2,300 2,458 2,448 
Common stock issuable upon conversion of certain preferred OP units798 1,270 907 1,454 
Weighted Average Common Shares Outstanding - Fully Diluted108,038 95,463 101,342 92,817 
FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted
$1.03 $1.11 $4.83 $4.75 
Core FFO Attributable To Sun Communities, Inc. Common Stockholders And Dilutive Convertible Securities(1)(4) Per Share - Fully Diluted
$1.16 $1.10 $5.09 $4.92 
(a)Adjustments include deferred compensation amortization upon retirement and deferred tax (benefit) / expense.
4th Quarter 2020 Supplemental Information     8          Sun Communities, Inc.


Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA(1)
(amounts in thousands)
Three Months EndedYear Ended
December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Net Income Attributable to Sun Communities, Inc. Common Stockholders$7,586 $28,547 $131,614 $160,265 
Adjustments
Depreciation and amortization117,423 98,826 376,876 328,067 
Loss on extinguishment of debt— 3,027 5,209 16,505 
Interest expense35,013 33,259 129,071 133,153 
Interest on mandatorily redeemable preferred OP units / equity1,047 1,207 4,177 4,698 
Current tax expense
328 189 790 1,095 
Deferred tax benefit(761)(258)(1,565)(222)
(Income) / loss from nonconsolidated affiliates(392)(1,740)(1,374)
Less: Gain on dispositions of assets, net(6,929)(5,273)(22,180)(26,356)
Less: Gain on disposition of properties— — (5,595)— 
EBITDAre(1)
$153,315 $159,530 $616,657 $615,831 
Adjustments
Catastrophic weather related charges, net831 435 885 1,737 
Business combination expense23,008 — 23,008 — 
Gain on remeasurement of marketable securities(8,765)(17,692)(6,129)(34,240)
Gain on foreign currency translation(10,480)(4,522)(8,039)(4,557)
Other (income) / expense, net(6)
390 (424)3,768 1,100 
Loss on remeasurement of notes receivable964 — 3,275 — 
Loss on remeasurement of investment in nonconsolidated affiliates103 — 1,608 — 
Preferred return to preferred OP units / equity2,136 1,418 6,935 6,058 
Income attributable to noncontrolling interests96 720 8,902 9,768 
Preferred stock distribution— — — 1,288 
Plus: Gain on dispositions of assets, net6,929 5,273 22,180 26,356 
Recurring EBITDA(1)
$168,527 $144,738 $673,050 $623,341 

4th Quarter 2020 Supplemental Information     9          Sun Communities, Inc.


Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to NOI(1)
(amounts in thousands)
Three Months EndedYear Ended
December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Net Income Attributable to Sun Communities, Inc. Common Stockholders$7,586 $28,547 $131,614 $160,265 
Interest income(2,510)(3,368)(10,119)(17,857)
Brokerage commissions and other revenues, net(4,162)(2,937)(17,230)(14,127)
Home selling expenses4,626 3,768 15,134 14,690 
General and administrative expenses31,795 25,434 111,288 93,964 
Catastrophic weather-related charges, net831 435 885 1,737 
Business combination expense23,008 — 23,008 — 
Depreciation and amortization117,423 98,826 376,876 328,067 
Loss on extinguishment of debt— 3,027 5,209 16,505 
Interest expense35,013 33,259 129,071 133,153 
Interest on mandatorily redeemable preferred OP units / equity1,047 1,207 4,177 4,698 
Gain on remeasurement of marketable securities(8,765)(17,692)(6,129)(34,240)
Gain on foreign currency translation(10,480)(4,522)(8,039)(4,557)
Gain on disposition of property— — (5,595)— 
Other (income) / expense, net(7)
390 (424)3,768 1,100 
Loss on remeasurement of notes receivable964 — 3,275 — 
Loss / (income) from nonconsolidated affiliates(392)(1,740)(1,374)
Loss on remeasurement of investment in nonconsolidated affiliates103 — 1,608 — 
Current tax expense328 189 790 1,095 
Deferred tax benefit(761)(258)(1,565)(222)
Preferred return to preferred OP units / equity2,136 1,418 6,935 6,058 
Income attributable to noncontrolling interests96 720 8,902 9,768 
Preferred stock distribution— — — 1,288 
NOI(1) / Gross Profit
$198,276 $167,635 $772,123 $700,011 

Three Months EndedYear Ended
December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Real Property NOI(1)
$167,840 $146,106 $649,233 $586,649 
Home Sales NOI(1) / Gross Profit
12,486 10,944 43,815 47,579 
Rental Program NOI(1)
29,101 26,682 115,283 104,382 
Ancillary NOI(1) / Gross Profit
7,973 1,382 38,615 30,206 
Site rent from Rental Program (included in Real Property NOI)(1)(9)
(19,124)(17,479)(74,823)(68,805)
NOI(1) / Gross Profit
$198,276 $167,635 $772,123 $700,011 
4th Quarter 2020 Supplemental Information     10          Sun Communities, Inc.























Non-GAAP and Other Financial Measures
















4th Quarter 2020 Supplemental Information     11          Sun Communities, Inc.


Debt Analysis    
(amounts in thousands)
Quarter Ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Debt Outstanding
Mortgage loans payable$3,444,967 $3,191,380 $3,205,507 $3,273,808 $3,180,592 
Preferred Equity - Sun NG Resorts - mandatorily redeemable35,249 35,249 35,249 35,249 35,249 
Preferred OP units - mandatorily redeemable34,663 34,663 34,663 34,663 34,663 
Lines of credit and other debt(6)
1,242,197 79,321 115,352 582,774 183,898 
Total debt$4,757,076 $3,340,613 $3,390,771 $3,926,494 $3,434,402 
% Fixed / Floating
Fixed74.0 %97.6 %96.6 %85.2 %94.7 %
Floating26.0 %2.4 %3.4 %14.8 %5.3 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %
Weighted Average Interest Rates
Mortgage loans payable3.78 %3.88 %3.88 %3.91 %4.05 %
Preferred Equity - Sun NG Resorts - mandatorily redeemable6.00 %6.00 %6.00 %6.00 %6.00 %
Preferred OP units - mandatorily redeemable5.93 %5.93 %5.93 %5.93 %6.50 %
Lines of credit and other debt(6)
2.08 %1.32 %2.03 %1.85 %2.71 %
Total average3.37 %3.86 %3.86 %3.64 %4.03 %
Debt Ratios
Net Debt / Recurring EBITDA(1) (TTM)
6.9 5.0 4.8 5.6 5.5 
Net Debt / Enterprise Value21.4 %18.3 %17.8 %22.6 %19.0 %
Net Debt / Gross Assets35.5 %31.6 %29.7 %35.6 %36.0 %
Coverage Ratios
Recurring EBITDA(1) (TTM) / Interest
4.94.84.54.54.4
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution
4.84.64.44.34.2

Maturities / Principal Amortization Next Five Years20212022202320242025
Mortgage loans payable
Maturities$— $82,155 $185,618 $315,330 $50,528 
Principal amortization59,585 61,364 60,739 57,293 53,879 
Preferred Equity - Sun NG Resorts - mandatorily redeemable— — — 33,428 1,821 
Preferred OP units - mandatorily redeemable— — — 27,373 — 
Lines of credit and other debt(6)
10,000 14,794 65,403 1,152,000 — 
Total$69,585 $158,313 $311,760 $1,585,424 $106,228 
Weighted average rate of maturities— %4.46 %4.08 %4.47 %4.04 %
4th Quarter 2020 Supplemental Information     12          Sun Communities, Inc.


Real Property Operations – Same Community(2)                    
(amounts in thousands except for Other Information)
Three Months EndedYear Ended
December 31, 2020December 31, 2019Change% ChangeDecember 31, 2020December 31, 2019Change% Change
Financial Information
Income from real property(10)
$214,996 $203,422 $11,574 5.7 %$876,981 $846,231 $30,750 3.6 %
Property operating expenses
Payroll and benefits21,440 19,472 1,968 10.1 %81,897 82,727 (830)(1.0)%
Legal, taxes, and insurance3,170 2,919 251 8.6 %10,860 10,351 509 4.9 %
Utilities(10)
16,399 14,120 2,279 16.1 %66,214 63,410 2,804 4.4 %
Supplies and repair(11)
8,393 6,926 1,467 21.2 %33,616 33,153 463 1.4 %
Other(a)
6,309 5,462 847 15.5 %27,916 26,738 1,178 4.4 %
Real estate taxes15,786 14,039 1,747 12.4 %63,706 59,649 4,057 6.8 %
Property operating expenses71,497 62,938 8,559 13.6 %284,209 276,028 8,181 3.0 %
Real Property NOI(1)
$143,499 $140,484 $3,015 2.1 %$592,772 $570,203 $22,569 4.0 %
(a) Includes COVID-19 personal protective equipment expense of $0.3 million and $2.4 million for the quarter and year ended December 31, 2020, respectively.

As of
December 31, 2020December 31, 2019Change% Change
Other Information
Number of properties367 367 — 
MH occupancy(3)
97.4 %
RV occupancy(3)
100.0 %
MH & RV blended occupancy(3)
98.0 %
Adjusted MH occupancy(3)
98.5 %
Adjusted RV occupancy(3)
100.0 %
Adjusted MH & RV blended occupancy(3)
98.8 %97.0 %1.8 %
Sites available for development6,682 6,314 368 
Monthly base rent per site - MH$600 $580 $20 
3.4%(13)
Monthly base rent per site - RV(12)
$514 $488 $26 
5.4%(13)
Monthly base rent per site - Total(12)
$579 $558 $21 
3.8%(13)
4th Quarter 2020 Supplemental Information     13          Sun Communities, Inc.


Home Sales Summary     
(amounts in thousands except for *)
Three Months EndedYear Ended
December 31, 2020December 31, 2019Change% ChangeDecember 31, 2020December 31, 2019Change% Change
Financial Information
New Homes
New home sales$21,192 $19,900 $1,292 6.5 %$79,728 $71,760 $7,968 11.1 %
New home cost of sales17,922 16,817 1,105 6.6 %65,533 61,557 3,976 6.5 %
NOI(1) / Gross Profit new homes
3,270 3,083 187 6.1 %14,195 10,203 3,992 39.1 %
Gross margin % – new homes15.4 %15.5 %(0.1)%17.8 %14.2 %3.6 %
Average selling price – new homes*$135,846 $142,143 $(6,297)(4.4)%$139,874 $125,674 $14,200 11.3 %
Pre-owned Homes
Pre-owned home sales$27,728 $25,371 $2,357 9.3 %$95,971 $110,176 $(14,205)(12.9)%
Pre-owned home cost of sales18,512 17,510 1,002 5.7 %66,351 72,800 (6,449)(8.9)%
NOI(1) / Gross Profit – pre-owned homes
9,216 7,861 1,355 17.2 %29,620 37,376 (7,756)(20.8)%
Gross margin % – pre-owned homes33.2 %31.0 %2.2 %30.9 %33.9 %(3.0)%
Average selling price – pre-owned homes*$44,294 $37,981 $6,313 16.6 %$41,799 $38,416 $3,383 8.8 %
Total Home Sales
Revenue from home sales$48,920 $45,271 $3,649 8.1 %$175,699 $181,936 $(6,237)(3.4)%
Cost of home sales36,434 34,327 2,107 6.1 %131,884 134,357 (2,473)(1.8)%
NOI(1) / Gross Profit – home sales
$12,486 $10,944 $1,542 14.1 %$43,815 $47,579 $(3,764)(7.9)%