NEWS RELEASE

July 26, 2021

Sun Communities, Inc. Reports 2021 Second Quarter Results

Southfield, MI, July 26, 2021 (GLOBE NEWSWIRE) -- 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 second quarter results for 2021.

Financial Results for the Quarter and Six Months Ended June 30, 2021

For the quarter ended June 30, 2021, total revenues increased $300.6 million, or 99.1 percent, to approximately $603.9 million compared to $303.3 million for the same period in 2020. Net income attributable to common stockholders increased $51.9 million or 88.0 percent, to approximately $110.8 million, or $0.98 per diluted common share, compared to net income attributable to common stockholders of $58.9 million, or $0.61 per diluted common share, for the same period in 2020.

For the six months ended June 30, 2021, total revenues increased $432.3 million, or 70.5 percent, to $1.0 billion compared to approximately $613.6 million for the same period in 2020. Net income attributable to common stockholders increased $92.7 million or 216.5 percent, to approximately $135.6 million, or $1.22 per diluted common share, compared to net income attributable to common stockholders of $42.8 million, or $0.45 per diluted common share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

Core Funds from Operations ("Core FFO")⁽¹⁾ for the quarter ended June 30, 2021, was $1.80 per diluted share and OP unit ("Share") as compared to $1.12 in the corresponding period in 2020, a 60.7 percent increase.
Same Community⁽²⁾ Net Operating Income ("NOI")⁽¹⁾ increased by 21.6 percent for the quarter ended June 30, 2021, as compared to the corresponding period in 2020.
Home Sales Volume increased 89.5 percent to 1,158 homes for the quarter ended June 30, 2021, as compared to 611 homes in the same period in 2020.
Acquisitions totaled $719.4 million during and subsequent to the quarter ended June 30, 2021, including 10 MH communities, two RV resorts and six marinas.

Gary Shiffman, Chief Executive Officer stated, "Sun's ongoing strong momentum continued through the second quarter, as we saw robust performance across RV, Manufactured Housing and Marinas. Our RV business is demonstrating the growing appeal of an RV vacation for consumers, marinas are in the midst of an active boating season and our results continue to track ahead of our underwriting, and in our manufactured housing business, we are benefiting from sustained demand for affordable housing. Furthermore, our RV forward bookings have continued to accelerate and we are pleased to again increase our guidance for the year."

Mr. Shiffman continued, "We have remained active in terms of new site deliveries and have more than 9,400 sites available for development, representing an attractive source of growth and value creation over time. We also deployed over $719 million in acquisitions, including six marinas as we begin to realize the meaningful consolidation opportunity we have in the marina industry. To support this ongoing growth, we are pleased to have received investment grade ratings and completed our inaugural unsecured bond issuance as we issued $600 million in senior unsecured notes. This additional financing option provides Sun enhanced financial flexibility to efficiently match fund our investment activities as we continue to realize compelling growth opportunities across all of our businesses."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.4 percent at June 30, 2021, compared to 97.3 percent at June 30, 2020, an increase of 10 basis points.

During the quarter ended June 30, 2021, MH and annual RV revenue producing sites increased by 583 sites, as compared to an increase of 851 revenue producing sites during the quarter ended June 30, 2020.

During the six months ended June 30, 2021, MH and annual RV revenue producing sites increased by 1,097 sites, as compared to an increase of 1,151 revenue producing sites during the six months ended June 30, 2020.

Same Community⁽²⁾Results

For the 405 MH and RV properties owned and operated by the Company since January 1, 2020, the following table reflects the NOI⁽¹⁾ percentage increases, in total and by segment, for the quarter and six months ended June 30, 2021:

	Quarter Ended June 30, 2021
	Total Same Community		MH		RV
Revenue	22.5	%	6.9	%	64.4	%
Expense	24.7	%	11.8	%	41.9	%
NOI	21.6	%	5.4	%	85.1	%

	Six Months Ended June 30, 2021
	Total Same Community		MH		RV
Revenue	12.8	%	6.0	%	30.2	%
Expense	15.2	%	8.7	%	24.2	%
NOI	11.8	%	5.1	%	34.8	%

Same Community adjusted occupancy⁽³⁾ increased to 98.8 percent at June 30, 2021 from 97.2 percent at June 30, 2020.

Home Sales

During the quarter ended June 30, 2021, the Company sold 1,158 homes as compared to 611 homes in the same period in 2020, an increase of 89.5 percent. The Company sold 227 and 140 new homes for the quarters ended June 30, 2021 and 2020, respectively, an increase of 62.1 percent. Pre-owned home sales were 931 in the second quarter 2021 as compared to 471 in the same period in 2020, an increase of 97.7 percent.

During the six months ended June 30, 2021, the Company sold 1,993 homes as compared to 1,374 homes in the same period in 2020, an increase of 45.1 percent. The Company sold 376 and 259 new homes for the six months ended June 30, 2021 and 2020, respectively, an increase of 45.2 percent. Pre-owned home sales were 1,617 in the six months ended June 30, 2021 as compared to 1,115 in the same period in 2020, an increase of 45.0 percent.

Marina Results

Marina NOI was $62.8 million and $94.2 million for the quarter and six months ended June 30, 2021, respectively. Refer to page 15 for additional information regarding the marina portfolio operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended June 30, 2021, the Company acquired the following communities, resorts and marinas:

Property Name

Property Type

Sites,

Wet Slips and

Dry Storage Spaces

Development Sites

State / Province

Total

Purchase Price

(in millions)

Month Acquired

ThemeWorld RV Resort

148

—

25.0

April

Sylvan Glen Estates^(a)

476

—

24.0

April

Shelter Island Boatyard

Marina

N/A

10.0

May

Lauderdale Marine Center

Marina

202

N/A

340.2

May

Apponaug Harbor^(b)

Marina

378

N/A

6.6

June

Cabrillo Isle^(c)

Marina

483

N/A

46.9

June

Marathon Marina

Marina

147

N/A

19.1

June

Subtotal

1,889

—

471.8

Acquisitions subsequent to quarter end

Allen Harbor

Marina

165

N/A

4.0

July

Cisco Grove Campground & RV

407

6.6

July

Four Leaf Portfolio^(d)

2,714

171

MI / IN

215.0

July

Harborage Yacht Club

Marina

300

N/A

22.0

July

Subtotal

3,197

578

247.6

Total acquisitions

5,086

578

719.4

^(a) In conjunction with the acquisition, the Company issued 240,000 Series J preferred OP units.

^(b) Combined with an existing adjacent marina.

^(c) Acquired in connection with Safe Harbor Marinas acquisition. Transfer of the marinas was contingent on receiving third party consent.

^(d) Contains nine MH communities.

During and subsequent to the six months ended June 30, 2021 the Company acquired 28 properties totaling 7,666 sites, wet slips and dry storage spaces, and 578 sites for development for a total purchase price of $853.4 million.

Subsequent to the quarter ended June 30, 2021, the Company sold two MH communities located in Indiana and Missouri for $67.5 million. The assets and liabilities associated with the transaction were classified as held for sale on the Consolidated Balance Sheets as of June 30, 2021.

Construction Activity

During the quarter ended June 30, 2021, the Company completed the construction of over 100 sites in two ground-up developments and over 120 expansion sites in two MH communities and one RV resort.

Year to date June 30, 2021, the Company completed the construction of over 350 sites in three ground-up development and over 230 expansion sites in three MH communities and one RV resort.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of June 30, 2021, the Company had approximately $4.3 billion in debt outstanding. The weighted average interest rate was 3.5 percent and the weighted average maturity was 10.4 years. At June 30, 2021, the Company's net debt to trailing twelve month Recurring EBITDA⁽¹⁾ ratio was 5.1 times. The Company had $103.5 million of unrestricted cash on hand.

Senior Unsecured Notes

On June 14, 2021, the Company received investment grade ratings of BBB and Baa3 with a stable outlook from S&P Global and Moody's, respectively.

On June 28, 2021, Sun Communities Operating Limited Partnership ("SCOLP"), the Company's operating partnership, issued $600.0 million of senior unsecured notes with an interest rate of 2.7 percent and a ten-year term, due 2031. The net proceeds from the offering were $592.4 million, after deducting underwriters' discount and estimated offering expenses.

Credit Agreement

On June 14, 2021, SCOLP, as borrower, and the Company, as guarantor, entered into a new credit agreement with certain lenders. The new credit agreement combines and replaces SCOLP's $750.0 million credit facility which was scheduled to mature May 21, 2023, and the $1.8 billion credit facility of the Company's marina subsidiary, Safe Harbor Marinas, LLC (the "Safe Harbor Facility") which was scheduled to mature on October 11, 2024. The Safe Harbor Facility was terminated in connection with the execution of the new credit agreement and all amounts due and outstanding were repaid on or prior to the date of the New Credit Agreement. The Company recognized a loss on extinguishment of debt in its Consolidated Statement of Operations related to the termination of these prior credit facilities of $0.2 million and $7.9 million, respectively.

Pursuant to the New Credit Agreement, SCOLP may borrow up to $2.0 billion under a revolving loan (the "New Credit Facility") to fund the business of SCOLP and all its subsidiaries. The New Credit Facility has a four-year term ending June 14, 2025. Subject to the satisfaction of certain conditions, the term may be extended for two additional six-month periods, and additional borrowings not to exceed $1.0 billion is permitted. However, the maturity date with respect to $500.0 million of available borrowing under the New Credit Facility is October 11, 2024, which may not be extended. The New Credit Facility bears interest at a floating rate based on the Adjusted Eurocurrency Rate or Australian Bank Bill Swap Bid Rate (BBSY), plus a margin which can range from 0.725 percent to 1.400 percent. As of June 30, 2021, the margin based on our credit ratings was 0.850 percent on the New Credit Facility. The Company had $190.3 million of borrowings on the New Credit Facility as of June 30, 2021.

Equity Transactions

Public Equity Offering

In May and June 2021, the Company completed the physical settlement of the remaining 4,050,000 shares offered under the forward sale agreement pursuant to the Company's March 2021 equity offering of 8,050,000 shares. Net proceeds of $539.7 million after deducting expenses related to the offering, were used to acquire assets and pay down the Safe Harbor Facility.

At the Market Offering Sales Agreements

In June 2021, the Company entered into an At the Market Offering (ATM) Sales Agreement (the "Sales Agreement") with certain sales agents, forward sellers, pursuant to which the Company may sell, from time to time, up to an aggregate gross sales price of $500.0 million of its common stock. No shares were sold during the quarter ending June 30, 2021 under the ATM program. Upon entering into the Sales Agreement, the Company simultaneously terminated its previous ATM sales agreement entered into in July 2017.

2021 GUIDANCE

The Company is providing revised or initial 2021 guidance for the following metrics:

			Previous Range		Revised Range
			FY 2021E		FY 2021E		3Q 2021E
Basic earnings per share			$1.68 - $1.84		$2.24 - $2.36		$0.90 - $0.96
Core FFO⁽¹⁾ per fully diluted Share			$5.92 - $6.08		$6.25 - $6.37		$2.00 - $2.06

	1Q21		2Q21		3Q21		4Q21
Seasonality of Core FFO⁽¹⁾per fully diluted Share	20.0	%	28.5	%	32.1	%	19.4	%

Seasonality of Core FFO⁽¹⁾per fully diluted Share is based off of the midpoint of full year guidance.

	Previous Range	Revised Range
	FY 2021E	FY 2021E	3Q 2021E
Same Community NOI⁽¹⁾ growth	7.5% - 8.5%	9.9% - 10.7%	11.2% - 12.0%

Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions or capital markets activity.

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. 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."

EARNINGS CONFERENCE CALL

A conference call to discuss second quarter results will be held on Tuesday, July 27, 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 August 10, 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 13720116. 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 June 30, 2021, owned, operated, or had an interest in a portfolio of 569 developed MH, RV and marina properties comprising over 153,300 developed sites and nearly 41,300 wet slips and dry storage spaces 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, 2020 and in 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 and its senior unsecured notes;
availability of capital;
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 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 statements.

Investor Information

RESEARCH COVERAGE

Firm	Analyst	Phone	Email
Bank of America Merrill Lynch	Joshua Dennerlein	(646) 855-1681	joshua.dennerlein@baml.com
Berenberg Capital Markets	Keegan Carl	(646) 949-9052	keegan.carl@berenberg-us.com
BMO Capital Markets	John Kim	(212) 885-4115	johnp.kim@bmo.com
Citi Research	Michael Bilerman	(212) 816-1383	michael.bilerman@citi.com
	Nicholas Joseph	(212) 816-1909	nicholas.joseph@citi.com
Evercore ISI	Steve Sakwa	(212) 446-9462	steve.sakwa@evercoreisi.com
	Samir Khanal	(212) 888-3796	samir.khanal@evercoreisi.com
Green Street Advisors	John Pawlowski	(949) 640-8780	jpawlowski@greenstreetadvisors.com
Robert W. Baird & Co.	Wesley Golladay	(216) 737-7510	wgolladay@rwbaird.com
RBC Capital Markets	Brad Heffern	(512) 708-6311	brad.heffern@rbccm.com
UBS	Michael Goldsmith	(212) 713-2951	michael.goldsmith@ubs.com
Wells Fargo	Todd Stender	(562) 637-1371	todd.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 Website	www.suncommunities.com

By Email	investorrelations@suncommunities.com

By Phone	(248) 208-2500

Portfolio Overview

(As of June 30, 2021)

Financial and Operating Highlights

(amounts in thousands, except for *)

	Quarter Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
Financial Information
Total revenues	$	603,863	$	442,015	$	384,265	$	400,514	$	303,266
Net income	$	120,849	$	27,941	$	9,818	$	89,756	$	63,355
Net income attributable to Sun Communities Inc. common stockholders	$	110,770	$	24,782	$	7,586	$	81,204	$	58,910
Basic earnings per share*	$	0.98	$	0.23	$	0.07	$	0.83	$	0.61
Diluted earnings per share*	$	0.98	$	0.23	$	0.07	$	0.83	$	0.61

Cash distributions declared per common share*	$	0.83	$	0.83	$	0.79	$	0.79	$	0.79

Recurring EBITDA⁽¹⁾	$	268,225	$	190,830	$	168,527	$	199,321	$	148,650
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	198,017	$	135,925	$	110,849	$	165,209	$	118,092
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	209,620	$	141,036	$	124,872	$	162,624	$	110,325
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾per share - fully diluted*	$	1.70	$	1.22	$	1.03	$	1.63	$	1.20
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾ per share - fully diluted*	$	1.80	$	1.26	$	1.16	$	1.60	$	1.12

Balance Sheet
Total assets	$	12,040,990	$	11,454,209	$	11,206,586	$	8,335,717	$	8,348,659
Total debt	$	4,311,175	$	4,417,935	$	4,757,076	$	3,340,613	$	3,390,771
Total liabilities	$	5,099,563	$	5,101,512	$	5,314,879	$	3,791,922	$	3,845,308

	Quarter Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
Operating Information*
Properties	569		562		552		432		426

Manufactured home sites	97,448		96,876		96,688		95,209		94,232
Annual RV sites	28,807		28,441		27,564		26,817		26,240
Transient RV sites	27,032		26,295		25,043		23,728		22,360
Total sites	153,287		151,612		149,295		145,754		142,832
Marina wet slips and dry storage spaces	41,275		38,753		38,152		N/A		N/A

MH occupancy	96.7	%	96.5	%	96.6	%	96.4	%	96.5	%
Annual RV occupancy	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Blended MH and annual RV occupancy	97.4	%	97.3	%	97.3	%	97.2	%	97.3	%

New home sales	227		149		156		155		140
Pre-owned home sales	931		686		626		555		471
Total home sales	1,158		835		782		710		611

	Quarter Ended
	6/30/2021	3/31/2021	12/31/2020	9/30/2020	6/30/2020
Revenue Producing Site Gains⁽⁵⁾
MH net leased sites	226	127	247	349	759
RV net leased sites	357	387	331	427	92
Total net leased sites	583	514	578	776	851

Consolidated Balance Sheets

(amounts in thousands)

	June 30, 2021			December 31, 2020
Assets
Land	$	2,412,629		$	2,119,364
Land improvements and buildings	8,995,041			8,480,597
Rental homes and improvements	622,397			637,603
Furniture, fixtures and equipment	529,549			447,039
Investment property	12,559,616			11,684,603
Accumulated depreciation	(2,165,564		)	(1,968,812		)
Investment property, net	10,394,052			9,715,791
Cash, cash equivalents and restricted cash	119,612			92,641
Marketable securities	153,049			124,726
Inventory of manufactured homes	43,686			46,643
Notes and other receivables, net	262,333			221,650
Goodwill	448,317			428,833
Other intangible assets, net	295,663			305,611
Other assets, net	324,278			270,691
Total Assets	$	12,040,990		$	11,206,586
Liabilities
Secured debt	$	3,457,734		$	3,489,983
Unsecured debt	853,441			1,267,093
Distributions payable	98,429			86,988
Advanced reservation deposits and rent	290,913			187,730
Accrued expenses and accounts payable	214,200			148,435
Other liabilities	184,846			134,650
Total Liabilities	5,099,563			5,314,879
Commitments and contingencies
Temporary equity	285,603			264,379
Stockholders' Equity
Common stock	1,159			1,076
Additional paid-in capital	8,163,095			7,087,658
Accumulated other comprehensive income	5,197			3,178
Distributions in excess of accumulated earnings	(1,614,243		)	(1,566,636		)
Total Sun Communities, Inc. stockholders' equity	6,555,208			5,525,276
Noncontrolling interests
Common and preferred OP units	82,865			85,968
Consolidated variable interest entities	17,751			16,084
Total noncontrolling interests	100,616			102,052
Total Stockholders' Equity	6,655,824			5,627,328
Total Liabilities, Temporary Equity and Stockholders' Equity	$	12,040,990		$	11,206,586

Statements of Operations - Quarter to Date and Year to Date Comparison

(In thousands, except per share amounts) (Unaudited)

	Three Months Ended												Six Months Ended
	June 30, 2021			June 30, 2020			Change			% Change			June 30, 2021			June 30, 2020			Change			% Change
Revenues
Real property (excluding transient)	$	328,907		$	225,413		$	103,494		45.9		%	$	626,984		$	453,415		$	173,569		38.3		%
Real property - transient	76,998			25,714			51,284			199.4		%	109,534			56,061			53,473			95.4		%
Home sales	81,848			38,530			43,318			112.4		%	134,047			79,117			54,930			69.4		%
Service, retail, dining and entertainment	106,452			7,700			98,752			N/M			157,064			12,803			144,261			N/M
Interest	2,719			2,635			84			3.2		%	5,350			4,985			365			7.3		%
Brokerage commissions and other, net	6,939			3,274			3,665			111.9		%	12,899			7,187			5,712			79.5		%
Total Revenues	603,863			303,266			300,597			99.1		%	1,045,878			613,568			432,310			70.5		%
Expenses
Property operating and maintenance	129,961			70,804			59,157			83.6		%	233,514			140,638			92,876			66.0		%
Real estate tax	23,202			17,723			5,479			30.9		%	45,610			34,899			10,711			30.7		%
Home costs and selling	58,763			32,051			26,712			83.3		%	100,353			66,090			34,263			51.8		%
Service, retail, dining and entertainment	78,585			7,242			71,343			N/M			124,016			13,924			110,092			N/M
General and administrative	45,127			26,527			18,600			70.1		%	83,330			51,876			31,454			60.6		%
Catastrophic event-related charges, net	355			(566		)	921			162.7		%	2,769			40			2,729			N/M
Business combination, net	(201		)	—			(201		)	N/A			1,031			—			1,031			N/A
Depreciation and amortization	126,423			87,265			39,158			44.9		%	249,727			170,954			78,773			46.1		%
Loss on extinguishment of debt	8,108			1,930			6,178			320.1		%	8,108			5,209			2,899			55.7		%
Interest	37,681			31,428			6,253			19.9		%	77,198			63,844			13,354			20.9		%
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			(1		)	(0.1	)	%	2,077			2,083			(6		)	(0.3	)	%
Total Expenses	509,045			275,446			233,599			84.8		%	927,733			549,557			378,176			68.8		%
Income Before Other Items	94,818			27,820			66,998			240.8		%	118,145			64,011			54,134			84.6		%
Gain / (loss) on remeasurement of marketable securities	27,494			24,519			2,975			12.1		%	31,155			(4,128		)	35,283			N/M
Gain / (loss) on foreign currency translation	(264		)	10,374			(10,638		)	(102.5	)	%	(239		)	(7,105		)	6,866			(96.6	)	%
Other expense, net⁽⁶⁾	(660		)	(821		)	161			19.6		%	(1,759		)	(1,793		)	34			(1.9	)	%
Gain / (loss) on remeasurement of notes receivable	93			246			(153		)	(62.2	)	%	469			(1,866		)	2,335			N/M
Income from nonconsolidated affiliates	794			92			702			N/M			1,965			144			1,821			N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates	(115		)	1,132			(1,247		)	(110.2	)	%	(11		)	(1,059		)	1,048			(99.0	)	%
Current tax expense	(1,245		)	(119		)	(1,126		)	N/M			(1,016		)	(569		)	(447		)	78.6		%
Deferred tax benefit / (expense)	(66		)	112			(178		)	N/M			81			242			(161		)	(66.5	)	%
Net Income	120,849			63,355			57,494			90.7		%	148,790			47,877			100,913			210.8		%
Less: Preferred return to preferred OP units / equity	3,035			1,584			1,451			91.6		%	5,899			3,154			2,745			87.0		%
Less: Income attributable to noncontrolling interests	7,044			2,861			4,183			146.2		%	7,339			1,899			5,440			286.5		%
Net Income Attributable to Sun Communities, Inc.	$	110,770		$	58,910		$	51,860		88.0		%	$	135,552		$	42,824		$	92,728		216.5		%

Weighted average common shares outstanding - basic	112,082			95,859			16,223			16.9		%	110,007			94,134			15,873			16.9		%
Weighted average common shares outstanding - diluted	112,082			95,860			16,222			16.9		%	112,593			94,525			18,068			19.1		%

Basic earnings per share	$	0.98		$	0.61		$	0.37		60.7		%	$	1.22		$	0.45		$	0.77		171.1		%
Diluted earnings per share	$	0.98		$	0.61		$	0.37		60.7		%	$	1.22		$	0.45		$	0.77		171.1		%

N/M = Percentage change is not meaningful.

Outstanding Securities and Capitalization

(amounts in thousands except for *)

Outstanding Securities - As of June 30, 2021

	Number of Units / Shares Outstanding	Conversion Rate*	If Converted⁽¹⁾	Issuance Price Per Unit*		Annual Distribution Rate*
Non-convertible Securities
Common shares	115,889	N/A	N/A	N/A		$3.32^

Convertible Securities
Common OP units	2,569	1.0000	2,569	N/A		Mirrors common shares distributions

Series A-1 preferred OP units	288	2.4390	703	$	100	6.00	%
Series A-3 preferred OP units	40	1.8605	75	$	100	4.50	%
Series C preferred OP units	306	1.1100	340	$	100	5.00	%
Series D preferred OP units	489	0.8000	391	$	100	4.00	%
Series E preferred OP units	90	0.6897	62	$	100	5.25	%
Series F preferred OP units	90	0.6250	56	$	100	3.00	%
Series G preferred OP units	241	0.6452	155	$	100	3.20	%
Series H preferred OP units	581	0.6098	355	$	100	3.00	%
Series I preferred OP units	922	0.6098	562	$	100	3.00	%
Series J preferred OP units	240	0.6061	145	$	100	2.85	%

^ 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 June 30, 2021

Equity	Shares	Share Price*		Total
Common shares	115,889	$	171.40	$	19,863,375
Common OP units	2,569	$	171.40	440,327
Subtotal	118,458			$	20,303,702

Preferred OP units as converted	2,844	$	171.40	487,462
Total diluted shares outstanding	121,302			$	20,791,164

Debt
Secured debt				$	3,457,734
Unsecured debt				853,441
Total debt				$	4,311,175

Total Capitalization				$	25,102,339

Reconciliations to Non-GAAP Financial Measures

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO⁽¹⁾

(amounts in thousands except for per share data)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Adjustments
Depreciation and amortization	126,227			87,296			249,303			171,048
Depreciation on nonconsolidated affiliates	31			19			61			19
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
Income attributable to noncontrolling interests	5,033			1,942			4,886			1,646
Preferred return to preferred OP units	478			—			958			1,000
Interest expense on Aspen preferred OP units	514			—			1,028			—
Gain on disposition of assets, net	(17,564		)	(4,178		)	(25,719		)	(9,740		)
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾	$	198,017		$	118,092		$	334,456		$	213,850

Adjustments
Business combination expense and other acquisition related costs⁽⁷⁾	2,284			504			4,237			889
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Catastrophic event-related charges, net	364			(567		)	2,778			39
Loss of earnings - catastrophic event-related	—			—			200			300
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net	517			552			1,233			854
Deferred tax (benefits) / expenses	66			188			(81		)	58
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾	$	209,620		$	110,325		$	351,170		$	228,304

Weighted average common shares outstanding - basic	112,082			95,859			110,007			94,134
Add
Common stock issuable upon conversion of stock options	—			1			—			1
Restricted stock	580			305			372			390
Common OP units	2,577			2,448			2,586			2,430
Common stock issuable upon conversion of certain preferred OP units	1,174			—			1,180			815
Weighted Average Common Shares Outstanding - Fully Diluted	116,413			98,613			114,145			97,770

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾ Per Share - Fully Diluted	$	1.70		$	1.20		$	2.93		$	2.19

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾ Per Share - Fully Diluted	$	1.80		$	1.12		$	3.08		$	2.34

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to NOI⁽¹⁾

(amounts in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Interest income	(2,719		)	(2,635		)	(5,350		)	(4,985		)
Brokerage commissions and other revenues, net	(6,939		)	(3,274		)	(12,899		)	(7,187		)
General and administrative expense	45,127			26,527			83,330			51,876
Catastrophic event-related charges, net	355			(566		)	2,769			40
Business combination expense, net	(201		)	—			1,031			—
Depreciation and amortization	126,423			87,265			249,727			170,954
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Interest expense	37,681			31,428			77,198			63,844
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			2,077			2,083
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net⁽⁶⁾	660			821			1,759			1,793
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
Income from nonconsolidated affiliates	(794		)	(92		)	(1,965		)	(144		)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
Current tax expense	1,245			119			1,016			569
Deferred tax (benefit) / expense	66			(112		)	(81		)	(242		)
Preferred return to preferred OP units / equity	3,035			1,584			5,899			3,154
Income attributable to noncontrolling interests	7,044			2,861			7,339			1,899
NOI⁽¹⁾	$	303,694		$	169,537		$	524,136		$	345,845

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Real Property NOI⁽¹⁾	$	252,742	$	162,600	$	457,394	$	333,939
Home Sales NOI⁽¹⁾	23,085		6,479		33,694		13,027
Service, retail, dining and entertainment NOI⁽¹⁾	27,867		458		33,048		(1,121		)
NOI⁽¹⁾	$	303,694	$	169,537	$	524,136	$	345,845

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA⁽¹⁾

(amounts in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Adjustments
Depreciation and amortization	126,423			87,265			249,727			170,954
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Interest expense	37,681			31,428			77,198			63,844
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			2,077			2,083
Current tax expense	1,245			119			1,016			569
Deferred tax (benefit) / expense	66			(112		)	(81		)	(242		)
Income from nonconsolidated affiliates	(794		)	(92		)	(1,965		)	(144		)
Less: Gain on dispositions of assets, net	(17,564		)	(4,178		)	(25,719		)	(9,740		)
EBITDAre⁽¹⁾	$	266,976		$	176,312		$	445,913		$	275,357
Adjustments
Catastrophic event-related charges, net	355			(566		)	2,769			40
Business combination expense	(201		)	—			1,031			—
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net⁽⁶⁾	660			821			1,759			1,793
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
Preferred return to preferred OP units / equity	3,035			1,584			5,899			3,154
Income attributable to noncontrolling interests	7,044			2,861			7,339			1,899
Plus: Gain on dispositions of assets, net	17,564			4,178			25,719			9,740
Recurring EBITDA⁽¹⁾	$	268,225		$	148,919		$	459,055		$	306,141

Non-GAAP and Other Financial Measures

Debt Analysis

(amounts in thousands)

	Quarter Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Debt Outstanding
Mortgage term loans	$	3,418,097		$	3,430,420		$	3,444,967		$	3,191,380		$	3,205,507
Collateralized term loan	39,637			42,510			45,016			47,546			50,006
Total secured debt	3,457,734			3,472,930			3,489,983			3,238,926			3,255,513
Senior unsecured notes	591,688			—			—			—			—
Line of credit and other debt	191,841			875,093			1,197,181			31,775			65,346
Preferred Equity - Sun NG Resorts - mandatorily redeemable	35,249			35,249			35,249			35,249			35,249
Preferred OP units - mandatorily redeemable	34,663			34,663			34,663			34,663			34,663
Total unsecured debt	853,441			945,005			1,267,093			101,687			135,258
Total debt	$	4,311,175		$	4,417,935		$	4,757,076		$	3,340,613		$	3,390,771

% Fixed / Floating
Fixed	94.7		%	79.3		%	74.0		%	97.6		%	96.6		%
Floating	5.3		%	20.7		%	26.0		%	2.4		%	3.4		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Weighted Average Interest Rates
Mortgage term loans	3.78		%	3.78		%	3.78		%	3.88		%	3.88		%
Collateralized term loan	1.30		%	1.29		%	1.31		%	1.31		%	1.31		%
Senior unsecured notes	2.70		%	—		%	—		%	—		%	—		%
Line of credit and other debt⁽⁸⁾	0.93		%	1.77		%	2.11		%	1.34		%	2.57		%
Preferred Equity - Sun NG Resorts - mandatorily redeemable	6.00		%	6.00		%	6.00		%	6.00		%	6.00		%
Preferred OP units - mandatorily redeemable	5.93		%	5.93		%	5.93		%	5.93		%	5.93		%
Total average	3.52		%	3.39		%	3.37		%	3.86		%	3.86		%

Debt Ratios
Net Debt / Recurring EBITDA⁽¹⁾ (TTM)	5.1			6.1			6.9			5.0			4.8
Net Debt / Enterprise Value	16.8		%	19.7		%	21.4		%	18.3		%	17.8		%
Net Debt / Gross Assets	29.6		%	31.8		%	35.5		%	31.6		%	29.7		%

Coverage Ratios
Recurring EBITDA⁽¹⁾ (TTM) / Interest	5.6			5.0			4.9			4.8			4.5
Recurring EBITDA⁽¹⁾(TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	5.5			4.8			4.8			4.6			4.4

Maturities / Principal Amortization Next Five Years	2021			2022			2023			2024			2025
Mortgage term loans
Maturities	$	—		$	82,155		$	185,619		$	315,330		$	50,529
Principal amortization	30,083			61,411			60,788			57,344			53,933
Collateralized term loan	4,621			10,000			25,016			—			—
Line of credit and other debt	—			1,509			—			—			190,332
Preferred Equity - Sun NG Resorts - mandatorily redeemable	—			—			—			33,428			1,821
Preferred OP units - mandatorily redeemable	—			—			—			27,373			—
Total	$	34,704		$	155,075		$	271,423		$	433,475		$	296,615

Weighted average rate of maturities	—		%	4.46		%	4.08		%	4.47		%	4.04		%

Same Community⁽²⁾

(amounts in thousands)


	Three Months Ended
	Total Same Community								MH								RV
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding transient)	$	219,693	$	205,449	$	14,244	6.9	%	$	174,158	$	166,473	$	7,685	4.6	%	$	45,535	$	38,976	$	6,559	16.8	%
Real property - transient	51,481		21,510		29,971		139.3	%	362		173		189		109.2	%	51,119		21,337		29,782		139.6	%
Other	10,798		3,219		7,579		235.4	%	4,869		1,130		3,739		330.9	%	5,929		2,089		3,840		183.8	%
Total Operating	281,972		230,178		51,794		22.5	%	179,389		167,776		11,613		6.9	%	102,583		62,402		40,181		64.4	%
Expense
Property Operating^(9)(10)	87,459		70,159		17,300		24.7	%	44,984		40,226		4,758		11.8	%	42,475		29,933		12,542		41.9	%
Real Property NOI⁽¹⁾	$	194,513	$	160,019	$	34,494	21.6	%	$	134,405	$	127,550	$	6,855	5.4	%	$	60,108	$	32,469	$	27,639	85.1	%

	Six Months Ended
	Total Same Community								MH										RV
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change			% Change			June 30, 2021		June 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding Transient)	$	435,054	$	410,667	$	24,387	5.9	%	$	346,900	$	331,301	$	15,599		4.7		%	$	88,154	$	79,366	$	8,788	11.1	%
Real property - transient	76,883		49,869		27,014		54.2	%	962		1,101		(139		)	(12.6	)	%	75,921		48,768		27,153		55.7	%
Other	17,793		9,071		8,722		96.2	%	9,695		4,940		4,755			96.3		%	8,098		4,131		3,967		96.0	%
Total Operating	529,730		469,607		60,123		12.8	%	357,557		337,342		20,215			6.0		%	172,173		132,265		39,908		30.2	%
Expense
Property Operating^(9)(10)	159,973		138,879		21,094		15.2	%	87,989		80,911		7,078			8.7		%	71,984		57,968		14,016		24.2	%
Real Property NOI⁽¹⁾	$	369,757	$	330,728	$	39,029	11.8	%	$	269,568	$	256,431	$	13,137		5.1		%	$	100,189	$	74,297	$	25,892	34.8	%

Same Community⁽²⁾(continued)

	As of
	June 30, 2021			June 30, 2020			Change				% Change
Other Information
Number of properties	405			405			—

MH occupancy	97.4		%
RV occupancy	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		%	97.2		%	1.6			%

Sites available for development	7,246			7,553			(307		)

Monthly base rent per site - MH	$	601		$	583		$	18			3.1%⁽¹²⁾
Monthly base rent per site - RV⁽¹¹⁾	$	527		$	504		$	23			4.7%⁽¹²⁾
Monthly base rent per site - Total⁽¹¹⁾	$	584		$	565		$	19			3.3%⁽¹²⁾

Marina Summary

(amounts in thousands except for statistical data)


	Three Months Ended		Six Months Ended
	June 30, 2021		June 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	61,914	$	108,020
Real property - transient	4,257		5,125
Other	3,671		5,319
Total Operating	69,842		118,464
Expenses
Property Operating^(a)	28,246		51,821
Real Property NOI	41,596		66,643
Service, retail, dining and entertainment
Service, retail, dining and entertainment revenue	82,238		126,592
Service, retail, dining and entertainment expense	61,017		99,026
Service, Retail, Dining and Entertainment NOI	21,221		27,566

Marina NOI	$	62,817	$	94,209

Other Information - Marinas			June 30, 2021
Number of properties^(b)			114
Total wet slips and dry storage			41,275

^(a) Marina results net $3.7 million and $6.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

^(b) Marina properties comprised of eight properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary⁽¹³⁾

(amounts in thousands except for statistical data)


	Three Months Ended		Six Months Ended
	June 30, 2021		June 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	8,522	$	15,820
Real property - transient	21,259		27,525
Other income	2,767		3,122
Total Operating	32,548		46,467
Expenses
Property Operating^(a)	15,915		25,475
Real Property NOI	$	16,633	$	20,992

Other Information - MH and RVs			June 30, 2021
Number of properties			50
Occupied sites			5,474
Developed sites			6,322
Occupancy %			86.6		%
Transient sites			8,122

^(a) MH and RV Acquisitions and Other results net $1.1 million and $2.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

Home Sales Summary

(amounts in thousands except for *)


	Three Months Ended											Six Months Ended
	June 30, 2021			June 30, 2020			Change			% Change		June 30, 2021			June 30, 2020			Change			% Change
Financial Information
New Homes
New home sales	$	34,761		$	19,206		$	15,555		81.0	%	$	57,733		$	34,802		$	22,931		65.9	%
New home cost of sales	28,269			15,707			12,562			80.0	%	46,943			28,317			18,626			65.8	%
Gross Profit – new homes	6,492			3,499			2,993			85.5	%	10,790			6,485			4,305			66.4	%
Gross margin % – new homes	18.7		%	18.2		%	0.5		%			18.7		%	18.6		%	0.1		%
Average selling price – new homes*	$	153,132		$	137,186		$	15,946		11.6	%	$	153,545		$	134,371		$	19,174		14.3	%

Pre-owned Homes
Pre-owned home sales	$	47,087		$	19,324		$	27,763		143.7	%	$	76,314		$	44,315		$	31,999		72.2	%
Pre-owned home cost of sales	25,945			13,474			12,471			92.6	%	44,529			30,896			13,633			44.1	%
Gross Profit – pre-owned homes	21,142			5,850			15,292			261.4	%	31,785			13,419			18,366			136.9	%
Gross margin % – pre-owned homes	44.9		%	30.3		%	14.6		%			41.7		%	30.3		%	11.4		%
Average selling price – pre-owned homes*	$	50,577		$	41,028		$	9,549		23.3	%	$	47,195		$	39,744		$	7,451		18.7	%

Total Home Sales
Revenue from home sales	$	81,848		$	38,530		$	43,318		112.4	%	$	134,047		$	79,117		$	54,930		69.4	%
Cost of home sales	54,214			29,181			25,033			85.8	%	91,472			59,213			32,259			54.5	%
Home selling expenses	4,549			2,870			1,679			58.5	%	8,881			6,877			2,004			29.1	%
Home Sales NOI⁽¹⁾	$	23,085		$	6,479		$	16,606		256.3	%	$	33,694		$	13,027		$	20,667		158.6	%

Statistical Information
New home sales volume*	227			140			87			62.1	%	376			259			117			45.2	%
Pre-owned home sales volume*	931			471			460			97.7	%	1,617			1,115			502			45.0	%
Total home sales volume*	1,158			611			547			89.5	%	1,993			1,374			619			45.1	%

Rental Program Summary

(amounts in thousands except for *)


	Three Months Ended								Six Months Ended
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change			% Change
Financial Information
Revenues
Home rent	$	17,060	$	14,968	$	2,092	14.0	%	$	34,082	$	30,436	$	3,646		12.0		%
Site rent	18,649		18,591		58		0.3	%	37,766		36,598		1,168			3.2		%
Total	35,709		33,559		2,150		6.4	%	71,848		67,034		4,814			7.2		%

Expenses
Rental Program operating and maintenance	4,561		4,425		136		3.1	%	9,785		9,248		537			5.8		%
Rental Program NOI⁽¹⁾	$	31,148	$	29,134	$	2,014	6.9	%	$	62,063	$	57,786	$	4,277		7.4		%

Other Information
Number of sold rental homes*	281		122		159		130.3	%	492		356		136			38.2		%
Number of occupied rentals, end of period*									10,951		11,785		(834		)	(7.1	)	%
Investment in occupied rental homes, end of period									$	601,798	$	621,327	$	(19,529	)	(3.1